Solenis to Increase Prices on Wet Strength Product Lines Across Europe, Middle East and Africa (EMEA)

Solenis, a leading global producer of specialty chemicals for water-intensive industries, will invest $193 million to expand its operation in the City of Suffolk, Virginia. The company will build a new 80,000-square-foot production facility, packaging facility and tank farm, and add a new rail spur to accommodate production of polyvinylamine (PVAm) polymer products, which are used in paper and cardboard manufacturing. This new facility will be used to grow the existing polymer product line and add additional capacity of this critical monomer to the existing supplier. The project will create 34 new jobs. “Solenis is a global leader in the specialty chemical industry with a 40-year history in the City of Suffolk, and this major investment and expansion demonstrates that manufacturing is thriving in the Commonwealth of Virginia,” said Virginia Governor Glenn Youngkin. “Hampton Roads has the skilled workforce, business climate, and logistics advantages, including our world-class port, to enable Solenis to add significant capacity to supply the international paper manufacturing market.”

Net sales for the three months ended June 30, 2021 increased $61 million, or 23%, compared to the three months ended June 30, 2020, driven by increases in volume and favorable price/mix as the economy began to open, partially offset by $30 million, or 11%, attributable to our idled Duluth and Wisconsin Rapids mills. Total company sales volume was up from 346 thousand tons during the three months ended June 30, 2020, to 369 thousand tons during the same period of the current year. Of the 23 thousand ton volume increase, 82 thousand tons were attributable to an increase in volume, partially offset by 59 thousand tons attributable to our idled Duluth and Wisconsin Rapids mills. Operating income was $11 million for the three months ended June 30, 2021, an increase of $53 million when compared to operating loss of $42 million for the three months ended June 30, 2020.

Part of innovating means pushing boundaries and taking risks to bring new and exciting products to the market. Mohawk Renewal launched in April 2020 as a groundbreaking line of papers made with recycled cotton textiles and alternative fibers, including straw. To make Mohawk Renewal possible, we had to forge together an unprecedented supply chain with strategic partners. One of these partners, Columbia Pulp — the only North American supplier responsible for processing wheat straw into pulp to make Mohawk Renewal Straw — announced in February 2022 that they were ceasing operations. We have exhausted every avenue in Columbia Pulp's absence, but without a supplier, we cannot continue to support this industry-disrupting product and will have to discontinue Straw from the Mohawk Renewal portfolio effective immediately. We will sell the remaining inventory of Mohawk Renewal Straw to depletion without replenishment.