Catalyst Applauds Government’s Decision to Eliminate Provincial Sales Tax on Electricity

The changes include the shutdown of Paper Machine 24 (“PM24”) at the Company’s Chillicothe, OH facility, the elimination of approximately 50 affected hourly positions at the facility, and a reduction of 70 salaried positions across the business unit. The PM24 shutdown will remove approximately 80,000 tons, or 10%, of capacity from the Specialty Papers Business Unit and reduce the Chillicothe facility’s exposure to purchased pulp. The Company plans for production to be absorbed by the remaining seven paper machines in the business unit. “The supply-demand imbalance in the printing and writing markets continues to put pressure on industry operating rates and selling prices. In light of the challenging market conditions, we must aggressively manage costs by eliminating capacity without impacting our ability to service our customers. While these are difficult decisions, we must take the actions necessary to strengthen our Specialty Papers business and position Glatfelter for long-term success,” said Dante C. Parrini, Chairman and Chief Executive Officer. Click Read More below for additional details.

Net sales for the three months ended December 31, 2020 declined by $273 million or 47% compared to the three months ended December 31, 2019 as a result of significant declines in sales volume and unfavorable price/mix. Operating loss was $118 million for the three months ended December 31, 2020, a decrease of $128 million when compared to operating income of $10 million for the three months ended December 31, 2019. Net sales for the twelve months ended December 31, 2020 declined by $1,085 million or 44% compared to the twelve months ended December 31, 2019 as a result of significant declines in sales volume and unfavorable price/mix. Operating loss was $128 million for the twelve months ended December 31, 2020, a decrease of $91 million when compared to operating loss of $37 million for the twelve months ended December 31, 2019.

UPM is replacing the use of fossil fuels with electric boilers in heat and steam production at its mills in Finland and Germany. A total of eight boilers will be installed, mainly to replace the use of natural gas. With the introduction of the electric boilers, the company will take a step towards its 2030 target of reducing CO2 emissions from the fuels and purchased electricity by 65%. In Finland, new electric boilers can reduce CO2 emissions from the use of fossil fuels by about 50,000 tonnes per year. In Germany, electric boilers will improve security of supply for heat and steam generation and achieve even greater emission reductions. "In addition to improved security of supply and emission reduction, electric boilers will significantly increase the mills’ ability to provide demand side flexibility to the electricity system and markets," says Petri Hyyryläinen, Energy Director at UPM Communication Papers.