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Gorham Paper and Tissue LLC White Mountain Tissue LLC 2016 New Hampshire Energy Summit October 3, 2016 Dick Arnold, CEO

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Page 1: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Gorham Paper and Tissue LLC White Mountain Tissue LLC

2016 New Hampshire Energy Summit

October 3, 2016

Dick Arnold, CEO

Page 2: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Introduction ~ Who we are…

2 2016 New Hampshire Energy Summit

• Who we are…120 employees with 70,000 tons of production capacity • Gorham Paper and Tissue started in May of 2011 when it re-started the

former Fraser Papers facility. The legacy of Gorham is extensive, dating back to 1852 when the operation opened as a saw mill.

• White Mountain Tissue began as a joint venture between the Gorham facility and the Old Town pulp mill, and launched with an investment of $35 million to install a state-of-the-art tissue machine. We are one of North America’s only independent parent roll tissue suppliers.

Page 3: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Introduction ~ What we do….

3 2016 New Hampshire Energy Summit

• What we do…produce tissue & towel products • North American Market is about 9.2 MM tons • Growing annually at a rate of 1-1/2 to 2% • Historically, we have manufactured Parents Rolls for independent

converters • Today…we have expanded our capabilities, White Mountain Tissue offers

Consumer Paper Products

Page 4: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Our Business

4 2016 New Hampshire Energy Summit

o Inputs ~ Controlling fiber, energy & people

The winters of 2013 & 14 were disastrous for the business

due to gas volatility forcing us to curtail operations

Customers looked elsewhere due to our erratic operations

o Outputs ~ Parent Rolls, Consumer Products & Waste

Responsiveness to our customer base/market

Efficient Operations

Spend lots of time rebuilding relationships following 2014

o Attributes ~ Quality, Service/Performance & Value

Customer confidence

Stability & Reliability

Competitiveness (new facilities south of Mason-Dixon line)

Responsible Sourcing & Sustainability practices

Page 5: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

MysticTM

Luxury Products • Ultra-Soft Bath Tissue with Aloe-E • Extra Soft/Strong Kitchen Towel • Facial ~ Aloe-E or anti-viral

White Mountain Summit Products • Ultra-Soft and Strong Bath Tissue 2-ply • Premium Bath Tissue 2-ply • 1000 count 1-ply • Kitchen Towels (1-ply, 2-ply & recycled) • Napkin

White Mountain Professional Products • Hard wound & center-pull • Multi-fold and C-fold • JRT and Standard Roll • Kitchen Towel • Kraft, Natural & White

Private Label

Our Product Line

Page 6: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Our Energy Platform

6 2016 New Hampshire Energy Summit

o Energy ~ NG & LFG, Hydro & Public Service Power, Water & Heat (steam)

Gas ~ annualized at 700,000 DT

Invested $6 MM in 2011

Direct connection to PNGTS pipeline

Methane Gas pipeline from District Landfill

Power ~ annualized at 80,000 MW’s

95% is hydropower

Interconnect agreement Gorham, Brookfield and Eversource

Gorham could not compete with a public service supply only

Page 7: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Concerns….

7 2016 New Hampshire Energy Summit

o From an Energy Perspective,

Oil back-up is inefficient…but partially mitigates risk

New tissue machine dependent on NG

Higher energy consumption during winter months ~ 3000 DT/day

Impact of NG volatility

Historically, increased energy costs during winter months have negated our

margins; but eventually

Impacts our long-term viability and jobs……….

At the end-of-the-day, we need stability in our gas supply to remain competitive

with those south of us………

Also, there may be growth opportunities with a stable NG supply, i.e. small-scale

CHP units, expansion, converting, etc.

Page 8: Gorham Paper and Tissue LLC White Mountain Tissue LLCdupontgroup.com/.../09/...Gorham-Paper-and-Tissue.pdf• Gorham Paper and Tissue started in May of 2011 when it re-started the

Thank You

8 2016 New Hampshire Energy Summit