CARAUSTAR INDUSTRIES INC

CARAUSTAR INDUSTRIES INC

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Company Overview
Caraustar Industries Inc is an American-based recycled packaging company. It is engaged in the manufacture of 100 percent recycled paperboard and converted paperboard products. The company was established in Charlotte, North Carolina in 1938 by Ross Puette and a group of investors. It has its registered office address in Austell, Georgia, USA.
Caraustar is one of the world’s largest integrated manufacturers of converted recycled paperboard and is dedicated to providing customers with outstanding value through innovative products and services. It aims to be the first choice for recycled paperboard and packaging solutions.
Caraustar manufactures products primarily from recovered fiber, which is derived from recycled paper. The company operates into three groups: Mill Group, Recovered Fiber Group, and Converted Products Group. Mill Group’s activities and products are recycled paperboard manufacturing, gypsum facing paper, and laminated paperboard products. Recovered Fiber Group’s activities are recovered fiber processing, recovered fiber brokerage, mill fiber procurement, and contract baling. Converted Products Group is divided into two segments: consumer packaging segment (produces folding cartons, composite containers, and rigid set-up boxes) and industrial packaging segment (produces tube and core, edge protectors, plastics, adhesives, and paragon plastics).
Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products. The company serves the four principal recycled boxboard product end-use markets: tubes, cores and composite cans; folding cartons; gypsum facing paper and other specialty paperboard products.
Business Summary
Caraustar Industries, Inc. (Caraustar) is a manufacturer of 100% recycled paperboard and converted paperboard products. The Company manufactures products primarily from recovered fiber, which is derived from recycled paper. Caraustar operates in four business segments: paperboard, recovered fiber, tube and core, and folding carton. The Company operated its business through 22 subsidiaries across the United States and Canada. On January 1, 2008, Caraustar acquired Canada-based Mayers Fibre Tube & Core, a manufacturer of construction tubes, waxed void tubes, paper cores, plastic test cyclinder molds, paper mailing tubes and metal end containers. On July 24, 2008, it sold its 50% membership interest in Premier Boxboard LLC. On May 31, 2009, the Company and its domestic subsidiaries filed their voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Georgia. In August 2009, the Company emerged from Chapter 11 bankruptcy filing.
Description and history
Caraustar Industries, Inc. (Caraustar) is a manufacturer of 100% recycled paperboard and converted paperboard products. The Company manufactures products primarily from recovered fiber, which is derived from recycled paper. Caraustar operates in four business segments: paperboard, recovered fiber, tube and core, and folding carton. The Company operated its business through 22 subsidiaries across the United States and Canada. On January 1, 2008, Caraustar acquired Canada-based Mayers Fibre Tube & Core, a manufacturer of construction tubes, waxed void tubes, paper cores, plastic test cyclinder molds, paper mailing tubes and metal end containers. On July 24, 2008, the Company sold its 50% membership interest in Premier Boxboard LLC (PBL), to its joint venture partner, Temple- Inland Inc. On May 31, 2009, the Company and its domestic subsidiaries filed their voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Georgia. In August 2009, the Company emerged from Chapter 11 bankruptcy filing.

Paperboard

The Company’s principal manufacturing activity is the production of uncoated recycled paperboard. Caraustar has one manufacturing facility that is used solely for the production of clay-coated recycled paperboard. In this manufacturing process, Caraustar reduces recovered fiber to pulp, clean and refine it and then process it into various grades of paperboard for internal consumption by its converting facilities or external sale in four end use markets: tube and core, folding cartons, gypsum wallboard facing paper, and specialty paperboard products.

Caraustar operates a total of eight paperboard mills. These mills are located in, Georgia, Indiana, Iowa, North Carolina, Ohio, South Carolina, Washington.

Recovered Fiber

The Company operates eight stand-alone recovered fiber recycling and brokerage facilities that collect, sell and broker recovered fiber to external customers and to its own mills. Caraustar’s recovered fiber recycling and processing facilities sort and bale recovered fiber and then either transfer it to its mills for processing or sell it to third parties. Sales of recovered fiber to external customers accounted for 12% of Caraustar’s sales during the year ended December 31, 2008.

Tube and Core

Caraustar’s largest integrated converting operation is the production of tubes and cores. The principal applications of these products are textile cores, paper mill cores, yarn carriers, carpet cores and film, foil and metal cores. The Company’s 30 tube and core converting plants obtain approximately 90% of their paperboard needs from its paperboard mills and the remaining 10% from other manufacturers. Paper tubes are designed to provide specific physical strength properties, resistance to moisture and abrasion, and resistance to delamination at high rotational speeds.

Folding Carton

The Company manufactures folding cartons and rigid set-up boxes at nine plants. During 2008, these plants obtained approximately 14% of their paperboard needs from Caraustar’s paperboard mills and the remaining 86% from other manufacturers. The paperboard purchased from other manufacturers is primarily paperboard grades not manufactured by the Company’s mill system. Caraustar’s folding cartons and rigid set-up boxes are used principally as containers for candy, frozen foods, paper goods, hardware, sporting goods, dry food, film and various other industrial applications, including textile and apparel. Folding carton sales accounted for 28% of the Company’s sales in 2008.

Caraustar competes with Sonoco Products Company, Graphic Packaging Inc., the Rock-Tenn Company, USG Corporation , National Gypsum Company and The Newark Group, Inc.

Established in Charlotte, North Carolina by Ross Puette and a group of investors

Business Line
Manufacture of 100 percent recycled paperboard and converted paperboard products
Subsidiary
AUSTELL HOLDING COMPANY LLC
Advisor
DELOITTE & TOUCHE LLP
IPO date
10/1992
US SIC Code
2631
Company Address
Suite 300
5000, Austell-Powder Springs Road
City province or state postal code
30106, AUSTELL, GA
Phone: +1 770 948 3101
Fax: +1 770 732 3401
Country address: UNITED STATES OF AMERICA
Website url: www.caraustar.com