Clearwater Paper Corporation
Encyclopedia
Clearwater Paper Corporation is a pulp and paper
product manufacturer that was created on December 9, 2008 via a spin-off from the real estate investment trust (REIT) company Potlatch Corporation. With its headquarters in Spokane, Washington
, the new company had six facilities for the manufacture of bleached paperboard
, consumer tissue and wood products.
In late 2010, the company acquired Cellu Tissue Holdings, Inc., headquarted in Alpharetta, Georgia
, which greatly increased its tissue manufacturing presence in the eastern United States and Canada. The total number of manufacturing sites rose to fourteen, with another in construction.
Clearwater Paper is the premier supplier of privately labeled
tissue products to the major retail grocery chains. It supplies more than half of the store brand
bathroom tissue, paper towels, facial tissue and napkins to grocery stores in the United States.
on July 17, 2008, with the official date for the creation of Clearwater Paper being December 9, 2008. Before the spin-off, Clearwater Paper had been a subsidiary
of Potlatch since 2005, before which it had been directly owned by Potlatch.
According to the IRS, the spin-off was ruled to be a tax-free distribution of stock
s as Potlatch issued 1 share
of Clearwater Paper stock
for every 3.5 shares of Potlatch stock, with any fractional shares being paid in cash. The Clearwater stocks began trading
on December 17.
Gordon L. Jones, who had been a vice president
of Potlatch since July 2008, was chosen as the president
and chief executive officer
of Clearwater Paper.
At the end of the spin off, two stand-alone entities remained, both publicly traded. These were Potlatch Corporation (NYSE:PCH) and Clearwater Paper Corporation
(NYSE:CLW).
After the spin-off, Clearwater was left with an outstanding debt
of $150 million. It had inherited $100 million of debentures that had been issued by an affiliate company
of Potlatch, and the other $50 million it had drawn out on credit.
Code Section 45, for its alternative fuel mixture. Clearwater's plants derive some of their energy from the use of a fuel mixture that includes black liquor
, a byproduct of its pulp
-manufacturing process. The company receives $0.50 for every gallon of alternative fuel mixture it uses.
Thus Clearwater is registered with the IRS as an alternate fuel mixer.
Clearwater Paper also markets a number of FSC
products, including the brand Ancora, a high-end, coated
, double-side bleached white paperboard. Of the only three similar products manufactured in a full variety of sizes is the United States, it is the only one that has on-label Forest Stewardship Council (FSC) certification. Another of the company's brands is Candesce, which is sold for use in premium lines of C1S folding carton as well as paperboard for commercial printing, carded packaging and liquid packaging board. Candesce is the only brand of SBS (solid bleached sulfate
) with FSC certification across its full range of calipers.
Two of Clearwater's mills, those in Arkansas and Idaho, are also FSC-Chain of Custody certified and ISO 9001:2001
certified.
, including paper towels, napkins, bathroom tissue and facial tissue. It produces over half of the store-brand, household tissues sold in grocery stores in the United States. It also markets the brands Ancora and Candesce.
The consumer products division produces through-air-dried (TAD) paper towels, as well as premium and value brand towels. It makes napkins in ultra, two-ply and three-ply dinner napkins, plus value one-ply luncheon napkins. The bathroom tissue produced is mostly two-ply ultra, though other types are manufactured and sold. The facial tissue
s produced by the division include ultra lotion facial tissues. Clearwater primarily produces ultra and premium qualities of the tissue it produces, though it does manufacture lower grades as well.
The division uses three machines at the company's facilities in Lewiston, Idaho
, and one machine at the Las Vegas facility in Nevada.
, primarily for the packaging industry, as well as solid bleach sulfate (SBS) paperboard. SBS board is a type of paperboard that is used in the production of folding carton
s, liquid packaging
, plates, cups and some commercial printing applications.
The pulp and paperboard segment also produces softwood
market pulp, which is used as the primary raw material in the production of a wide variety of paper products, and slush pulp (excess or waste pulp), which it sends to the consumer products segment. To make pulp for the manufacture of all its products, the division uses several species of pine
and fir
trees, as well as high-quality cedar
products.
The pulp and paperboard division operates one facility in Idaho and one in Arkansas.
lumber
products. Its cedar products include appearance grade boards, siding and trim, and the dimensional lumber it produces include both glued and profile lumber, used for two-inch dimensional framing, industrial timbers and railroad ties.
The wood products division operates one lumber facility in Lewiston, Idaho
.
Clearwater's headquarters are located in Spokane, Washington
, at 601 West Riverside Avenue.
Tissue Mill
Tissue Converting Facility
Pulp Mill
Bleached Paperboard Mill
Sawmill
All three divisions share the 880 acres (3.6 km²) site in Lewiston, Idaho
, which was opened in 1927. The facility has warehouse space totaling 475000 square feet (44,128.9 m²) for the storage of finished goods, raw materials and parent rolls.
The consumer products segment operates three conventional tissue machines at the site, which all run 24 hours a day, 7 days a week.
The pulp and paperboard segment established a mill at the site in 1950, which underwent rebuilds throughout the 1980s and 1990s. The excess and waste pulp from the mill is either sent to the consumer products machines for use as slush pulp, or it is turned into baled pulp and sold.
The wood products segment built the original facility, and was operating a mill there since the site opened in 1927.
Tissue Converting Facility
The site in Las Vegas, Nevada
, was built by the consumer products segment, and was intended to allow servicing of the south-western United States. It was completed in 1994. The facility originally had 100000 square feet (9,290.3 m²) of warehouse storage space for finished goods, and now has two more warehouses with 500000 square feet (46,451.5 m²) of space for the storage of finished goods, raw materials and parent rolls. One of these warehouses is leased by Clearwater, and provides the facility will rail access. This facility also operates 24/7
.
In 2004, a machine for the manufacture of through-air-dried (TAD) paper towels began operation at the site.
Bleach Paperboard Mill
The pulp and paperboard segment built a mill in Arkansas in 1977, making it the newest SBS mill in North America.
The Illinois facility is leased (though all the machines at the facility are owned by Clearwater), making it the only one of those operated by Clearwater that is not owned. It also operates 24/7, and it services mostly the Midwest and Eastern United States. It is located in Elwood, Illinois
.
The facility is operated by the consumer products segment and has 400000 square feet (37,161.2 m²) of warehouse storage for finished goods, raw materials and parent rolls.
Two distribution centers are operated by the consumer products division, one in Fort Worth, Texas
, the other in Tracy, California
.
Pulp and Paper
Pulp and Paper is the name of the largest United States-based trade magazine for the pulp and paper industry. See also: Paper engineering, Pulp and Paper Merit Badge...
product manufacturer that was created on December 9, 2008 via a spin-off from the real estate investment trust (REIT) company Potlatch Corporation. With its headquarters in Spokane, Washington
Spokane, Washington
Spokane is a city located in the Northwestern United States in the state of Washington. It is the largest city of Spokane County of which it is also the county seat, and the metropolitan center of the Inland Northwest region...
, the new company had six facilities for the manufacture of bleached paperboard
Paperboard
Paperboard is a thick paper based material. While there is no rigid differentiation between paper and paperboard, paperboard is generally thicker than paper. According to ISO standards, paperboard is a paper with a basis weight above 224 g/m2, but there are exceptions. Paperboard can be single...
, consumer tissue and wood products.
In late 2010, the company acquired Cellu Tissue Holdings, Inc., headquarted in Alpharetta, Georgia
Alpharetta, Georgia
-Demographics:As of the census of 2000, there were 34,854 people, 13,911 households, and 8,916 families residing in the city. The population density was 1,631.6 people per square mile . There were 14,670 housing units at an average density of 686.7 per square mile...
, which greatly increased its tissue manufacturing presence in the eastern United States and Canada. The total number of manufacturing sites rose to fourteen, with another in construction.
Clearwater Paper is the premier supplier of privately labeled
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
tissue products to the major retail grocery chains. It supplies more than half of the store brand
Store brand
Store brands are a line of products sold by a retailer under a single marketing identity. They bear a similarity to the concept of House brands, Private label brands in the United States, own brands in the UK, and home brands in Australia and generic brands...
bathroom tissue, paper towels, facial tissue and napkins to grocery stores in the United States.
Spin-off from Potlatch
The company's spin-off from Potlatch Corporation was announced by its board of directorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
on July 17, 2008, with the official date for the creation of Clearwater Paper being December 9, 2008. Before the spin-off, Clearwater Paper had been a subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of Potlatch since 2005, before which it had been directly owned by Potlatch.
According to the IRS, the spin-off was ruled to be a tax-free distribution of stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
s as Potlatch issued 1 share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
of Clearwater Paper stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
for every 3.5 shares of Potlatch stock, with any fractional shares being paid in cash. The Clearwater stocks began trading
Trade (financial instrument)
In finance, a trade is an exchange of a security for "cash", typically a short-dated promise to pay in the currency of the country where the 'exchange' is located...
on December 17.
Gordon L. Jones, who had been a vice president
Vice president
A vice president is an officer in government or business who is below a president in rank. The name comes from the Latin vice meaning 'in place of'. In some countries, the vice president is called the deputy president...
of Potlatch since July 2008, was chosen as the president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
and chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Clearwater Paper.
At the end of the spin off, two stand-alone entities remained, both publicly traded. These were Potlatch Corporation (NYSE:PCH) and Clearwater Paper Corporation
(NYSE:CLW).
After the spin-off, Clearwater was left with an outstanding debt
Consumer debt
In economics, consumer debt is outstanding debt of consumers, as opposed to businesses or governments. In macroeconomic terms, it is debt which is used to fund consumption rather than investment...
of $150 million. It had inherited $100 million of debentures that had been issued by an affiliate company
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of Potlatch, and the other $50 million it had drawn out on credit.
Environmental Policies
In the second quarter of 2009, Clearwater received a total of $76.4 million worth of refundable tax credits under the Internal Revenue ServiceInternal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
Code Section 45, for its alternative fuel mixture. Clearwater's plants derive some of their energy from the use of a fuel mixture that includes black liquor
Black liquor
Black liquor is the spent cooking liquor from the kraft process when digesting pulpwood into paper pulp removing lignin, hemicelluloses and other extractives from the wood to free the cellulose fibers....
, a byproduct of its pulp
Pulp (paper)
Pulp is a lignocellulosic fibrous material prepared by chemically or mechanically separating cellulose fibres from wood, fibre crops or waste paper. Wood pulp is the most common raw material in papermaking.-History:...
-manufacturing process. The company receives $0.50 for every gallon of alternative fuel mixture it uses.
Clearwater Paper also markets a number of FSC
Forest Stewardship Council
The Forest Stewardship Council is an international not-for-profit, multi-stakeholder organization established in 1993 to promote responsible management of the world’s forests. Its main tools for achieving this are standard setting, independent certification and labeling of forest products...
products, including the brand Ancora, a high-end, coated
Coated paper
Coated paper is paper which has been coated by a compound to impart certain qualities to the paper, including weight, surface gloss, smoothness or reduced ink absorbency. Kaolinite or calcium carbonate are used to coat paper for high quality printing used in packaging industry and in magazines...
, double-side bleached white paperboard. Of the only three similar products manufactured in a full variety of sizes is the United States, it is the only one that has on-label Forest Stewardship Council (FSC) certification. Another of the company's brands is Candesce, which is sold for use in premium lines of C1S folding carton as well as paperboard for commercial printing, carded packaging and liquid packaging board. Candesce is the only brand of SBS (solid bleached sulfate
Solid bleached board
Solid Bleached Board or Solid bleached sulphate is a virgin fibre grade of paperboard.This grade is made purely from bleached chemical pulp and usually has a mineral or synthetic pigment coated top surface in one or more layers as well as a coated reverse side...
) with FSC certification across its full range of calipers.
Two of Clearwater's mills, those in Arkansas and Idaho, are also FSC-Chain of Custody certified and ISO 9001:2001
ISO 9000
The ISO 9000 family of standards relates to quality management systems and is designed to help organizations ensure they meet the needs of customers and other stakeholders . The standards are published by ISO, the International Organization for Standardization, and available through National...
certified.
Manufacturing Divisions
Clearwater's six facilities in the United States serve three separate divisions within the company.Consumer Products
The consumer products segment manufactures and sells household tissuesTissue paper
Tissue paper is a lightweight paper or, light crêpe paper. Tissue can be made both from virgin and recycled paper pulp.-Properties:Key properties are: strength, absorbency, basis weight, thickness , brightness, stretch, appearance and comfort....
, including paper towels, napkins, bathroom tissue and facial tissue. It produces over half of the store-brand, household tissues sold in grocery stores in the United States. It also markets the brands Ancora and Candesce.
The consumer products division produces through-air-dried (TAD) paper towels, as well as premium and value brand towels. It makes napkins in ultra, two-ply and three-ply dinner napkins, plus value one-ply luncheon napkins. The bathroom tissue produced is mostly two-ply ultra, though other types are manufactured and sold. The facial tissue
Facial tissue
Facial tissue and paper handkerchief refers to a class of soft, absorbent, disposable papers that is suitable for use on the face. They are disposable alternatives for cloth handkerchiefs...
s produced by the division include ultra lotion facial tissues. Clearwater primarily produces ultra and premium qualities of the tissue it produces, though it does manufacture lower grades as well.
The division uses three machines at the company's facilities in Lewiston, Idaho
Lewiston, Idaho
Lewiston is a city in and also the county seat of Nez Perce County in the Pacific Northwest state of Idaho. It is the second-largest city in the northern Idaho region, behind Coeur d'Alene and ninth-largest in the state. Lewiston is the principal city of the Lewiston, ID - Clarkston, WA...
, and one machine at the Las Vegas facility in Nevada.
Pulp and Paperboard
The company's pulp and paperboard segment manufactures bleached paperboardPaperboard
Paperboard is a thick paper based material. While there is no rigid differentiation between paper and paperboard, paperboard is generally thicker than paper. According to ISO standards, paperboard is a paper with a basis weight above 224 g/m2, but there are exceptions. Paperboard can be single...
, primarily for the packaging industry, as well as solid bleach sulfate (SBS) paperboard. SBS board is a type of paperboard that is used in the production of folding carton
Folding carton
The folding carton created the packaging industry as it is known today, beginning in the late 19th century. Basically, a folding carton is made of paperboard, and is cut, folded, laminated and printed for transport to manufacturers. The cartons are shipped flat to a manufacturer, which has its own...
s, liquid packaging
Liquid packaging board
Liquid packaging board is a multi-ply paperboard with high stiffness, strong wet sizing and a high barrier coating. Only virgin paper fibers are used. The barrier coating must hold the liquid and prevent migration of air and flavors through the paperboard....
, plates, cups and some commercial printing applications.
The pulp and paperboard segment also produces softwood
Softwood
The term softwood is used to describe wood from trees that are known as gymnosperms.Conifers are an example. It may also be used to describe trees, which tend to be evergreen, notable exceptions being bald cypress and the larches....
market pulp, which is used as the primary raw material in the production of a wide variety of paper products, and slush pulp (excess or waste pulp), which it sends to the consumer products segment. To make pulp for the manufacture of all its products, the division uses several species of pine
Pine
Pines are trees in the genus Pinus ,in the family Pinaceae. They make up the monotypic subfamily Pinoideae. There are about 115 species of pine, although different authorities accept between 105 and 125 species.-Etymology:...
and fir
Fir
Firs are a genus of 48–55 species of evergreen conifers in the family Pinaceae. They are found through much of North and Central America, Europe, Asia, and North Africa, occurring in mountains over most of the range...
trees, as well as high-quality cedar
Cedar wood
Cedar wood comes from several different trees that grow in different parts of the world, and may have different uses.* California incense-cedar, from Calocedrus decurrens, is the primary type of wood used for making pencils...
products.
The pulp and paperboard division operates one facility in Idaho and one in Arkansas.
Wood Products
The wood products segment mainly manufactures appearance grade cedar and dimensional framingFraming (construction)
Framing, in construction known as light-frame construction, is a building technique based around structural members, usually called studs, which provide a stable frame to which interior and exterior wall coverings are attached, and covered by a roof comprising horizontal ceiling joists and sloping...
lumber
Lumber
Lumber or timber is wood in any of its stages from felling through readiness for use as structural material for construction, or wood pulp for paper production....
products. Its cedar products include appearance grade boards, siding and trim, and the dimensional lumber it produces include both glued and profile lumber, used for two-inch dimensional framing, industrial timbers and railroad ties.
The wood products division operates one lumber facility in Lewiston, Idaho
Lewiston, Idaho
Lewiston is a city in and also the county seat of Nez Perce County in the Pacific Northwest state of Idaho. It is the second-largest city in the northern Idaho region, behind Coeur d'Alene and ninth-largest in the state. Lewiston is the principal city of the Lewiston, ID - Clarkston, WA...
.
Facilities
Prior to the acquisition of Cellu Tissue in 2010, Clearwater operated six facilities in the United States, which were previously owned by Potlatch until the spin-off.Washington
HeadquartersClearwater's headquarters are located in Spokane, Washington
Spokane, Washington
Spokane is a city located in the Northwestern United States in the state of Washington. It is the largest city of Spokane County of which it is also the county seat, and the metropolitan center of the Inland Northwest region...
, at 601 West Riverside Avenue.
Idaho
Tissue Mill
- Capacity = 183,000 tons
Tissue Converting Facility
- Capacity = 100,000 tons
Pulp Mill
- Capacity = 545,000 tons
Bleached Paperboard Mill
- Capacity = 435,000 tons
Sawmill
- Capacity = 205,000 mbf (million board feet)
All three divisions share the 880 acres (3.6 km²) site in Lewiston, Idaho
Lewiston, Idaho
Lewiston is a city in and also the county seat of Nez Perce County in the Pacific Northwest state of Idaho. It is the second-largest city in the northern Idaho region, behind Coeur d'Alene and ninth-largest in the state. Lewiston is the principal city of the Lewiston, ID - Clarkston, WA...
, which was opened in 1927. The facility has warehouse space totaling 475000 square feet (44,128.9 m²) for the storage of finished goods, raw materials and parent rolls.
The consumer products segment operates three conventional tissue machines at the site, which all run 24 hours a day, 7 days a week.
The pulp and paperboard segment established a mill at the site in 1950, which underwent rebuilds throughout the 1980s and 1990s. The excess and waste pulp from the mill is either sent to the consumer products machines for use as slush pulp, or it is turned into baled pulp and sold.
The wood products segment built the original facility, and was operating a mill there since the site opened in 1927.
Nevada
Tissue Mill- Capacity = 35,000 tons
Tissue Converting Facility
- Capacity = 50,000 tons
The site in Las Vegas, Nevada
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
, was built by the consumer products segment, and was intended to allow servicing of the south-western United States. It was completed in 1994. The facility originally had 100000 square feet (9,290.3 m²) of warehouse storage space for finished goods, and now has two more warehouses with 500000 square feet (46,451.5 m²) of space for the storage of finished goods, raw materials and parent rolls. One of these warehouses is leased by Clearwater, and provides the facility will rail access. This facility also operates 24/7
24/7
24/7 is an abbreviation which stands for "24 hours a day, 7 days a week", usually referring to a business or service available at all times without interruption...
.
In 2004, a machine for the manufacture of through-air-dried (TAD) paper towels began operation at the site.
Arkansas
Pulp Mill- Capacity = 305,000 tons
Bleach Paperboard Mill
- Capacity = 330,000 tons
The pulp and paperboard segment built a mill in Arkansas in 1977, making it the newest SBS mill in North America.
Illinois
Tissue Converting Facility- Capacity = 49,000 tons
The Illinois facility is leased (though all the machines at the facility are owned by Clearwater), making it the only one of those operated by Clearwater that is not owned. It also operates 24/7, and it services mostly the Midwest and Eastern United States. It is located in Elwood, Illinois
Elwood, Illinois
Elwood is a village in Will County, Illinois, United States. The population was 2,300 at the 2006 population estimation.-Geography:Elwood is located at . The nearest major highways are Interstate 80 to the north and Interstate 55 to the west. The former Route 66 highway passes through the...
.
The facility is operated by the consumer products segment and has 400000 square feet (37,161.2 m²) of warehouse storage for finished goods, raw materials and parent rolls.
California and Texas
Distribution CentersTwo distribution centers are operated by the consumer products division, one in Fort Worth, Texas
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
, the other in Tracy, California
Tracy, California
Tracy is the second most populated city in San Joaquin County, California, United States and an exurb of the San Francisco Bay Area. The population was 82,922 at the 2010 census.-History:...
.