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Consumer Packaging Segment
Consumer Packaging Segment operates an integrated system of five coated recycled mills and a bleached paperboard mill that produce paperboard for its folding carton operations and third parties. Customers use its folding cartons to package dry, frozen and perishable foods for the retail sale and quick-serve markets; beverages; paper goods; automotive products; hardware; health care and nutritional food supplement products; household goods; health and beauty aids; recreational products; apparel; take out food products, and other products. It also manufactures express mail envelopes for the overnight courier industry. It manufactures folding cartons from recycled and virgin paperboard, laminated paperboard and various substrates with specialty characteristics, such as grease masking and microwaveability. It prints, coats, die-cuts and glues the paperboard to customer specifications. It ships finished cartons to customers for assembling, filling and sealing. It manufactures bleached paperboard and market pulp. It sells its coated recycled and bleached paperboard to manufacturers of folding cartons and other paperboard products. Sales of consumer packaging products to external customers accounted for 51.6% of net sales during the fiscal year ended September 30, 2010 (fiscal 2010).
Corrugated Packaging Segment
The Company operates a system that manufactures linerboard and corrugated medium (containerboard), corrugated sheets, corrugated packaging and preprinted linerboard for sale to industrial and consumer products manufacturers and corrugated box manufacturers. It also converts corrugated sheets into corrugated products ranging from one-color protective cartons to packaging, displays and produce preprinted linerboard in North America. It provides structural design and engineering services. Sales of corrugated packaging products to external customers accounted for 25.4% of the Company’s net sales in fiscal 2010.
Merchandising Displays Segment
The Company manufactures temporary and permanent point-of-purchase displays. It designs, manufactures and in some cases pre-assembles permanent displays for the same categories of customers. It makes temporary displays from corrugated paperboard. Unlike temporary displays, permanent displays are restocked and, therefore, are constructed from metal, plastic, wood and other durable materials. It provides contract packing services, such as multi-product promotional packing and product manipulation, such as multipacks and onpacks. It manufactures lithographic laminated packaging for sale to its customers that require packaging. Sales of its merchandising display products to external customers accounted for 11.1% of the Company’s net sales in fiscal 2010.
Specialty Paperboard Products Segment
The Company operates an integrated system of five specialty recycled paperboard mills (including its Seven Hills Paperboard LLC (Seven Hills) joint venture), which produces paperboard for its fiber interior packaging converting operations and third parties, and buys and sells recycled fiber. It also converts specialty paperboard into book covers and other products. Its 65% owned subsidiary, RTS, designs and manufactures fiber and corrugated partitions and die-cut paperboard components. It manufactures and sells fiber and corrugated partitions to glass container manufacturers and producers of beer, food, wine, spirits, cosmetics and pharmaceuticals and to the automotive industry. It also manufactures specialty agricultural packaging for specific fruit and vegetable markets and sheeted separation products. It manufactures fiber interior packaging from recycled paperboard. It handles a variety of grades of recovered paper, including old corrugated containers, office paper, box clippings, newspaper and print shop scraps. Sales of specialty paperboard products to external customers accounted for 11.9% of the Company’s net sales in fiscal 2010.