Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
My Profile
Orchids Paper Products Company Announces Converting Automation Project
Pryor, Oklahoma, USA, 11 March 2008 -- /PRNewswire/ -- Orchids Paper Products Company (AMEX:TIS) today announced that its board of directors has approved a capital project to automate certain processes in its converting operations totaling approximately USD 4.75 million in fiscal year 2008. In conjunction with this project, the company has amended its credit facility to increase capital expenditures allowable in 2008 under the facility and to increase the limit of the revolving credit facility.

The converting automation project will involve the purchase and installation of case packers, conveyors, and case unitizing equipment, which will reduce the amount of manual labor required in the operation. Equipment installation will begin in the second quarter. The project is expected to be completed by the fourth quarter of 2008. The company will finance the project with a combination of cash generated from operations and borrowings under the revolving credit facility.

In connection with the converting automation project, the company amended its credit facility, effective 06 March 2008, by:

-- increasing the capital expenditures limit for fiscal year 2008 from
USD 1.5 million to USD 6.25 million, returning to USD 1.5 million per year
thereafter, and

-- increasing the limit of the revolving credit facility from USD 6.0
million to USD 8.0 million.

Commenting on the project, Robert Snyder, president and chief executive officer, stated, "We are excited to announce this automation project in our converting operations. This project will allow us to improve our competitive cost position. Our industry faces constant cost pressures. As such, we must continually seek out ways to reduce our operating costs. We expect this project to be a major contributor to our continuous improvement and cost reduction efforts in 2008."

Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the private label consumer market. The company produces a full line of tissue products, including paper towels, bathroom tissue, and paper napkins. From its operations in Pryor, Oklahoma, Orchids Paper Products Company uses recycled waste paper to produce finished tissue products, which it provides to retail chains throughout the central United States. For more information on the company and its products, visit http://www.orchidspaper.com/.

Source: Orchids Paper Products Company

Web site: http://www.orchidspaper.com/

Related Articles:

Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: