Glatfelter to Upgrade Composite Fibers Paper Machine in Germany


York, Pennsylvania, USA, 08 July 2008 – Glatfelter Company (NYSE:GLT), a global supplier of specialty papers and engineered products, today announced that it will upgrade a paper machine at its composite fibers facility in Gernsbach, Germany.

The upgrade will enable Glatfelter to enhance its specialty paper capabilities and increase production and processing capacity to better meet the growing demand in the food and beverage marketplace. It will also enhance the quality of products supplied to the overlay and battery pasting paper markets. The upgrade will convert a conventional flat wire paper machine to a specialized inclined wire paper machine, which is required to manufacture tea and coffee filter papers and other technical specialties and composite laminates.

During the upgrade, Glatfelter will install state-of-the-art inclined wire and through air-drying technology. Upon completion of the upgrade, Glatfelter will have enhanced its overall capacity for the business unit by more than 4% over 2008 projected capacity levels and will have increased its tea and coffee filter paper capacity by 18% over 2008 projected capacity levels.

Dante C. Parrini, executive vice president and chief operating officer of Glatfelter, said, “This investment reflects our commitment to providing superior service and technical capabilities that differentiate our company and support Glatfelter‟s leading position in high-growth markets. We will continue to look for opportunities to optimize our assets so that we best serve our customers and drive growth for our shareholders,” he said. 

“The worldwide demand for beverage filter paper is strong,” added Martin Rapp, vice president and general manager, for Glatfelter‟s Composite Fibers Business Unit. “Demand for single-serve coffee products is increasing rapidly in North America. In northern Europe 'coffee pods' are estimated to now account for approximately one in three of all coffees consumed. At the same time, market data indicates that consumers continue to switch from loose tea to teabag products in many key markets. The increased capacity resulting from this upgrade will help us meet these demands as well as enhance our offering in the growing overlay and battery pasting paper markets.”

The upgrade is expected to be completed in the fourth quarter of 2009 and the resulting additional capacity fully available in 2010. Based on current pricing and exchange rates, Glatfelter expects the increased capacity enabled by the upgrade to generate a run-rate of USD 40 million in additional revenues beginning in 2010.

Headquartered in York, Pennsylvania, Glatfelter is a global manufacturer of specialty papers and engineered products, offering more than a century of experience, technical expertise, and world-class service. U.S. operations include facilities in Spring Grove, Pennsylvania, and Chillicothe and Fremont, Ohio. International operations include facilities in Germany, France, the United Kingdom, and the Philippines, and a representative office in China. Glatfelter‟s sales exceed USD 1 billion annually and its common stock is traded on the New York Stock Exchange under the ticker symbol GLT. Additional information may be found at www.glatfelter.com.