Q&A: South Florida Tissue Paper

MARCAL MERGER WITH NITTANY ‘PATHWAY’ TO SAVING BRAND AFTER DEVASTATING FIRE

At the start of 2020, Marcal Paper announced it had returned to regular papermaking operations in New Jersey, America, less than one year after a 10-alarm fire destroyed its iconic manufacturing facilities and caused the immediate shutdown of the business.

The fire had substantially destroyed sixteen acres of property, including twentyone paper converting lines. Here, Focus Report interviewed chief executive Rob Baron to get the latest on the company’s development.

Q/1: Following the fire, what do the next few months hold for you?

“We are beginning by turning on one paper machine in New Jersey, welcoming back dozens of good people into full-time jobs, and working to restore customer confidence.

“That is a significant set of tasks given how much was lost in the fire, but we are confident. We are beginning the long journey of creating a company from the ground up once again.”

Q/2: You've just finalised the merger with Nittany Paper. What does that mean for the company?

“Nittany Paper is a converting operation in Pennsylvania. Merging with Nittany ensured that the paper rolls manufactured in New Jersey can be converted into final products for sale. The fire substantially destroyed sixteen acres of property, including twenty-one paper converting lines.

“By merging with Nittany, we have secured the only viable pathway to restarting operations in Elmwood Park now, and saving the brand, while leaving open future opportunities for growth or redevelopment at our location in New Jersey, as well.”

Q/3: What trends are you seeing in America's tissue market?

“Following the devastating fire that destroyed our converting lines at our Elmwood Park, New Jersey facility, Marcal now concentrates on the AfH market, manufacturing tissue products for commercial office buildings, hotels, restaurants, hospitals, schools and operators of public facilities rather than private label or At-Home products.”

Q/4: What are the main opportunities in 2020?

“We had our fair share of challenges in 2019 and are excited to close that chapter in this new year. We’re looking forward to getting back to work. Our focus is to return to normalcy and restore regular papermaking operations in New Jersey. One opportunity we see is the chance to partner with great customers who want to be part of the rebirth of a great recycled brand. Marcal was – and is now again – the only recycled tissue manufacturer in the State of New Jersey. We can meet the needs of many different types of customers and partners, including those who are facing severe challenges with waste removal, for example. So, we’re excited about the prospects for 2020 and beyond.”

Q/5: And the main challenges?

“Starting any business over after the devastating losses we suffered is a challenge, to be sure, and that’s the main one. That said, we believe we have identified a winning pathway for the company. We did not want to just start up some machines and fail. From day one, we wanted to give ourselves a fighting chance to hire back as many people as we could, as fast as we could, while ensuring we had a viable, sustainable roadmap to thrive – in a very challenging market. Marcal has been producing recycled tissue products since 1932. We want our future to be as strong as our history.”

Q/6: How is the American economy impacting the local tissue market?

“Simply put, people view tissue as a necessity rather than a luxury good. Marcal stands at-the-ready to fulfil this fundamental hygiene need for our commercial customers, distributors and wholesalers that require tissue products to service their properties.”