Company has started up new tissue capacity in Kentucky.
, a Mosinee, Wis.-based paper company, has started a process to identify alternatives for its paper segment. According to Wausau, the change will position the company to focus its management efforts on continuing the growth of its tissue business.
In early 2012, Wausau exited its print and color business, narrowing the focus of its paper segment to specialty products. Since then the company retained financial advisors to assist its board of directors in evaluating alternatives for the remainder of its paper segment.
To accomplish this, the company recently began the start-up phase of a $220 million tissue capacity investment at its Harrodsburg, Ky., paper mill site. According to Wausau Paper, the tissue project will accelerate growth of its tissue segment and establish its position in the away-from-home tissue markets through improved product performance and the introduction of new-to-the-market premium recycled products.
“Our tissue segment has demonstrated strong profitability and exceptional growth over the last decade,” Wausau president and CEO Hank Newell, says. “We believe our shareholders’ interests will be best served through a singular focus on successfully marketing the capacity and capability of our new tissue machine and sustaining the historically strong growth and profit performance of our tissue business.”