Orchids Paper Products Company announced the startup of its new state-of-the-art 100% QRT Paper Machine in Barnwell, South Carolina, USA. The new paper machine has a production capacity of 35,000 tons per year. The paper machine has been already started up in optimization mode and is expected to be producing at 70% of production capacity in the third quarter of 2017, 85% in Q4 and 100% by January 1, 2018.
According to the announcement, the QRT Paper Machine was developed by Valmet. It is capable to manufacture both ultra-premium and premium tissue, towel, facial, and napkin paper at a lower manufacturing cost compared to traditional ultra-premium machines. This paper is an integral part of Orchids strategy to penetrate the ultra-premium tissue and towel market, which is growing at a rate of 3-5% compared to a 1% overall tissue market growth rate.
The machine is also expected to provide flexibility to produce premium products which will give our retail customers more choices in product selection within the premium and ultra-premium product segments.
Jeff Schoen, Orchids Paper Products CEO, commented:
“QRT technology is a quantum step forward in terms of quality, capacity, and opportunity for Orchids. The new paper machine provides the flexibility to manufacture the highest quality products at a competitive cost advantage, and increases our ability to diversify our business.”
Earlier Orchids Paper announced that its Board suspended the quarterly dividend to preserve financial flexibility and ensure the capital allocation to further the success of the business.
The company is a customer-focused, national supplier of high-quality consumer tissue products primarily serving the at home private label consumer market. It produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through ultra-premium quality market segments from its operations in northeast Oklahoma and Mexicali, Mexico. The Company provides these products primarily to retail chains throughout the United States.