Escanaba Mill
NewPage Organization Overview Headquartered in Miamisburg, Ohio $4.7 billion in pro forma net sales (year ended 12/31/07) Approximately 8,000 employees Broadest line of printing papers 4.5 million tons of capacity: 3.3 million tons of coated paper 900,000 tons of uncoated paper 300,000 tons of specialty paper Operations in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada
2008 Ranking of NA Coated Paper Manufacturers Short Tons (000s) CFS CGW Total Share NewPage * 1,900 1,400 3,300 35.0% Verso 595 1,043 1,638 17.4% SAPPI 1,270-1,270 13.5% Bowater 30 751 781 8.3% Kruger - 498 498 5.3% UPM - 393 393 4.2% Appleton 335-335 3.5% Catalyst Paper - 255 255 2.7% Domtar - 237 237 2.5% West Linn Paper 234-234 2.5% Other 115 383 498 5.3% Total 4,479 4,960 9,439 100.0% Source: RISI World Capacity Report as of August 2007- UPM numbers exclude Miramichi Note: Excludes imports into North America and exclude bristols *Figures for NewPage are internal estimates for coated & specialty after effect of Kimberly, Rumford and Niagara closures
Manufacturing Operations 10 Mill Locations: Michigan Maine Maryland Kentucky Wisconsin (Biron, Stevens Point, Whiting, Wisconsin Rapids) Minnesota Canada (Port Hawkesbury, Nova Scotia) Two Converting Locations: Luke, Maryland Wisconsin Rapids, Wisconsin Flexible manufacturing platform High reinvestment rate for future product development and innovation Highly respected products and services
NewPage: Strategically Located Mills 1 Escanaba, MI 2 Luke, MD 3 Rumford, ME 4 Wickliffe, KY 5 Biron, WI 6 Duluth, MN 7 Kimberly, WI 8 Port Hawkesbury, NS, Canada 9 Stevens Point, WI 10 Whiting, WI 11 Wisconsin Rapids, WI
NewPage Escanaba Operations
Escanaba, Michigan Mill Historical Overview: Operating since 1920 Started up as a 2 paper machine groundwood mill as a means to use excess electrical power produced by local hydroelectric plants Major expansions; 1) 1969-1972 with E3 paper machine, kraft pulp mill, No s 7 & 8 turbine generator and bark boiler 2) 1980-1982 with E4 paper machine, RMP pulp mill, No. 11 power boiler and No. 9 turbine generator. Considered by many as one of the top paper-making facilities in North America
Escanaba, Michigan Mill Mill Overview: Approx.1140 highly skilled employees Largest employer in region Manufactures premium coated two-side (C2S) sheet fed and web offset products Supports both Coated Freesheet and Coated Groundwood products in the top four grade lines. Capacity 760,000 TPY or 2,100 TPD Full integrated facility with: 3 paper machine systems 1 pulp dryer 2 pulp mills (Kraft and RMP) 100 MWs of electrical generation capability Acid free and ECF Post consumer recycled available Certifications: FSC, SFI, PEFC
Escanaba, Michigan Mill Pulp Mills Overview: Kraft Pulp Mill Single line chemical pulp mill built in 1972 to produc 600 TPD Today producing 1,140 TPD Hardwood & Softwood pulp Refiner Mechanical Pulp (RMP) Mill Two line mechanical pulp mill built in 1981, upgraded 2002 280 TPD capacity Uses Aspen chips Process approximately: 5,600 tons per day wood 1,400 tons per day chips 1,000 tons per day bark
Escanaba, Michigan Mill E1 - Built 1920 as part of original Mill Produces 540 tpd of product, all double coated Produces No. 2 s and 3 s 70-100 lb. text Equipment Key Operating Rate Drivers 3,000 fpm paper machine, 144 saleable deckle 3,500 fpm 4 station coater Major investment in 1995 $80 million Increased paper machine operating rate, added double coating capability, improved paper quality significantly
Escanaba, Michigan Mill E3 - Built 1969 during the first major mill expansion Produces 720 tpd of product Primarily produces our No. 2 and No. 3 web grades 45 70 lb. web grades Primary manufacturer of text book grades Equipment Key Operating Rate Drivers 3,600 fpm paper machine, 262 saleable deckle 4,000 fpm coater
Escanaba, Michigan Mill E4 - Built 1982 during the second major mill expansion Produces 840 tpd of product Primarily produces our No. 4 groundwood containing grades, such as Northcote RMP Capable of producing 40-60 lb. web offset grades, both No. 3 and No. 4 grade lines Most productive machine in NewPage Coated Mills Equipment Key Operating Rate Drives 4,000 fpm paper machine, 297 saleable deckle 5,000 fpm coater
Escanaba Paper Production Paper Production Tons Per Day 2200 2100 2000 1900 1800 1902 1914 1990 2067 2074 2099 2157 2155 2001 2002 2003 2004 2005 2006 2007 2008 TPD
Escanaba Powerhouse 105MW
1.0% heavy oil 1.0% waste plant sludge. 1.1% soap from liquor 3.5% Natural gas Fuels 2008 YDT 14.2% self generated bark 14.7% purchased woodwaste 21.7% coal 42.8% liquor 73.8% carbon neutral fuels.