Orchids Paper Products Co. Enters Strategic Alliance

Staff

Pryor, Oklahoma, USA 05 May 2014 -- Orchids Paper Products Company announced a strategic alliance with Fabrica de Papel San Francisco, S.A. de C.V. to support the growth of Orchids' U.S. West Coast sales. Fabrica, which is based in Mexicali, Baja California, Mexico, is a recognized low cost manufacturer of high-quality tissue paper products.

Orchids expects this alliance will allow it to effectively and efficiently service customers in the western United States and support Orchids' vision to become a national supplier of high-quality consumer tissue products in the value, premium and ultra-premium tier markets.

Fabrica is a privately owned business which started as a tissue converter in 1958 and has grown to 150,000 metric tons of capacity, one of the largest tissue manufacturers by capacity in Mexico. In 2013, Fabrica started up the world's first NTT paper machine.

As part of this alliance, Orchids will acquire Fabrica's current U.S. business, including certain manufacturing assets and access to 18,000 metric tons of capacity each year. Products will be produced at Fabrica's facility in Mexicali, Mexico and shipped directly to Orchids' U.S. customers.