Highlights from Deutsche Bank Session on Paper Industry

* Highlights from Ohio investor trip
Deutsche Bank recently sponsored an Ohio investor trip. We visited a variety of public & private companies, all in the paper & packaging sector. The companies visited on our tour included: Glatfelter, Greif, NewPage and Sonoco. Summary comments are found below.

* Glatfelter – Chillicothe leverage could exceed current targetsAfter struggling during the first 9-12 months of ownership, GLT appears to be putting Chillicothe on track. While the Chilicothe complex is large and sprawling with several older buildings, the core machines are relatively large and appear well-maintained. The
mill has absorbed $550MM of invested capital since 1990. The mill is well-positioned from a fiber cost/supply standpoint.


* NewPage – Duties and currency could restructure global coated industry
NewPage has successfully pressed antidumping claims against Asian coated paper producers. NewPage will file antidumping claims against the Europeans. When coupled with FX moves, the European anti-dumping case could accelerate a restructuring of the entire global coated paper sector.