Glatfelter, a global supplier of specialty papers and engineered products, announced today that it will upgrade its production and process capabilities to serve the growing demand in its food and beverage segment.
Expected to be completed in the third quarter of 2008, the capital investment will be approximately $10 million. This investment will be to upgrade an inclined-wire paper machine in Gernsbach, Germany. Primarily focused on supporting the growth in tea and coffee filtration papers, the newly rebuilt production line will also enhance the Company’s ability to produce a richer mix of high-value niche products.
Commenting on the investment, Dante C. Parrini, Executive Vice President and Chief Operating Officer, said, “As a worldwide leader, we remain committed to supporting the evolving needs of our global customer base. This investment further demonstrates our ability to meet the growing demands of the market and strengthen our position as the supplier of choice.”
“The demand for tea and coffee products is growing around the world,” added Martin Rapp, Vice President & General Manager, for Glatfelter’s Composite Fibers Business Unit. "With the successful development of single serve coffee products in Europe and North America and the continuous penetration of teabag products in traditional tea drinking markets like Eastern Europe, the Middle East and certain Asian markets, the demand for filter paper is accelerating. At the same time, this enhanced machine will broaden our capabilities and provide the opportunity to produce a wider range of high-value niche products.”
Caution Concerning Forward-Looking Statements
This document includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 about Glatfelter’s capital spending activities. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Although the Company makes such statements based on assumptions that it believes to be reasonable, there can be no assurance that actual results will not differ materially from the Company’s expectations due to changes in, among others, industry conditions, demand for or pricing of its products; risks associated with integrating acquisitions; global political, economic, business, competitive and market conditions; tax legislation; growth strategies and cost reduction initiatives; successful execution of the Timberland Strategy with acceptable market conditions; and other factors. More information about these factors is contained in Glatfelter’s filings with the U.S. Securities and Exchange Commission.
About Glatfelter―Headquartered in York, PA, Glatfelter is a global manufacturer of specialty papers and engineered products. U.S. operations include facilities in Spring Grove, PA, Chillicothe and Fremont, OH, and a sales office in Pisgah Forest, NC. International operations include facilities in Germany, France, the United Kingdom and the Philippines and a representative office in China. Glatfelter’s common stock is traded on the New York Stock Exchange under the ticker symbol GLT. Additional information may be found at www.glatfelter.com.
John P. Jacunski, 717-225-2794
William T. Yanavitch, 717-225-2747