Clearwater Paper to Build New Tissue Plant in Shelby, NC

June 11, 2010 - Clearwater Paper said that it has decided on Shelby, North Carolina as the location to build a new tissue facility.

In mid-May, Clearwater announced that its Board of Directors had approved plans to build a new tissue plant and was in the process of finalizing a location in the Southeastern U.S.

The new plant will include a Through-Air-Dried (TAD) paper machine and seven converting lines capable of producing ultra grades of private label tissue products.

"After nearly a year of analysis — looking at important aspects such as current customer base and growth opportunities, logistics and transportation infrastructure, available workforce skills and abilities, tax structure, incentives and quality of life, and subject to local and state incentives being granted — Clearwater Paper has chosen Shelby to be the home of our newest tissue facility," said Gordon Jones, chairman, president and CEO of Clearwater Paper.

"From the Governor to the Department of Commerce to Cleveland County’s economic development team, we found North Carolina to be not only very responsive to our company’s business needs, but endowed with a dedicated, positive group of people who are a pleasure to work with," Jones added.

Clearwater said that it intends to move forward as soon as possible with construction of the facility and has estimated the project will cost $260 to $280 million.

"The Shelby facility will increase our ultra and premium offerings to our existing Southern and East Coast customers," said Bob DeVleming, vice president, consumer products division. "We believe it will also create new opportunities to expand our private label consumer tissue business to other retail grocery chains in the region, and we are very pleased with the initial work by North Carolina officials. We are ready to get started."

The company expects to break ground during the third quarter of this year.

Build-out and start-up for the converting lines will come in phases, with the first two lines expected to begin production during the second half of 2011, Clearwater said.

The paper machine is expected to take two years to build from completion of engineering, and the company anticipates beginning production on the machine in the second half of 2012.

At full production capacity the facility will produce approximately 10 million cases or 70,000 tons of bathroom tissue and household towels annually.

SOURCE: Clearwater Paper Corp.

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