Introduction to Georgia-Pacific. - Fastmarkets RISI...1In 2004 Koch Industries purchases the legacy...

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Introduction to Georgia-Pacific.

Milind BalajiSupply‐Chain Manager


*According to Forbes


Flint Hills Resources: Produces and markets transportation fuels, biofuels, lube oil, asphalt and chemicals; holds equity investments in bioenergy companies.

Koch Pipeline Company: Operates more than 4,000 miles of pipelines that transport crude oil, refined petroleum products, ethanol, natural gas liquids and chemicals.

Georgia-Pacific: Manufactures and markets building products, consumer products, packaging, paper, cellulose and chemicals. Brands include Quilted Northern®, Angel Soft®, Brawny®, enMotion®, Sparkle®, Mardi Gras® and Vanity Fair®, as well as Dixie® brand of cups, plates and cutlery, Plytanium® plywood, and DensGlass® sheathing.

Koch AG & Energy Solutions: The fertilizer group produces, markets and distributes more than 13 million tons of fertilizer products annually, including AGROTAIN® stabilizer, and SUPERU™ and NEXEN® fertilizers. The energy services group markets and supplies natural gas, and owns and operates a natural gas-fired, combined-cycle electric power generation facility in Odessa, Texas.

INVISTA: Manufactures chemical intermediates, polymers and fibers, and develops technologies used in clothing, carpet, car parts and other everyday products. Brands include LYCRA®, COOLMAX®, CORDURA®, STAINMASTER®, and ANTRON®.

Koch Chemical Technology Group: Designs, manufactures, sells, installs and services process and pollution control equipment, and provides engineering services for industries and municipalities worldwide. Subsidiaries include Koch-Glitsch, John Zink Hamworthy Combustion, Koch Heat Transfer, Koch Membrane Systems, Koch Knight and Optimized Process Designs.

Molex Incorporated: Manufactures electronic, electrical and fiber optic interconnection systems, offering about 100,000 products to a number of markets, including mobile devices, infotech, consumer electronics, automotive, telecommunications, industrial, medical, military and aerospace.

Koch Supply & Trading: Trades commodities globally.

Koch Minerals: Provides dry-bulk commodity handling, marketing and trading; conducts oil and gas exploration and production, and provides oilfield services. Subsidiaries include Koch Carbon, The C. Reiss Coal Company, Koch Exploration Company and KMP Holdings.

The Matador Cattle Company: Operates three ranches: Beaverhead in Montana, Matador in Texas and Spring Creek in Kansas.


Market-Based Management®The Energy that Powers Koch Companies

MBM is rooted in the principles of a free-market economy and is designed to help employees think and act like

principled entrepreneurs as they focus on building competitive advantages for and adding value to the

businesses in which Georgia-Pacific operates.

Long-term business success comes only from creating real value for customers and society, not from the illusion of

value.

Charles Koch, describes MBM as “the framework that I credit with the enormous

success of Koch Industries”


Where does Cellulose fit into the mix?

Georgia-Pacific Business Mix

24%

42%

4%

30%

Building Products

ChemicalsGypsumOriented Strand BoardPlywood

Consumer Products

Communication PapersFoodserviceIndustrial WipesProfessional Tissue, TowelRetail Tissue, Towel and Napkins

Packaging & Cellulose

Bleached BoardCelluloseCorrugating MediumCorrugated PackagingKraft PaperLinerboard

Other


Georgia-Pacific’s Brands and Products


2016 Top US ExportersUS Foreign Trade via Ocean Container Mode

N

Koch Industries #2 U.S. exporter in 2016 container volumeGP would still rank #2 if listed individually.

Source: JOC

333900

211400186500

128600106300 92200

74800 74800 70400 69500

Volume

Shipper

Top 10 US exporters ‐ 2016

77007700


GP Cellulose Pulp MillsAlabama River

Leaf River

Brunswick Foley

Memphis

Source: GP CelluloseLeaf River

Alabama River

Brunswick

BWKJAX

MOBI

CHRWSAV

Lumberton

Memphis Foley

GP Cellulose mills are strategically located:

•Proximity to areas that provide long‐term sustainable supply of coastal slash and loblolly pines ‐ the premier fiber for fluff pulp production

•Near several large shipping ports – ideal for serving our global customers


1 In 2004 Koch Industries purchases the legacy GP Cellulose based business

2 In 2006 Koch purchases the entire company and re‐integrates Cellulose into GP

3 Since 2004 significant investments made to improve Brunswick and Leaf River mills

4 On 2010 Alabama River Pulp assets are acquired

5 In 2011 Alabama River converted from paper grade bales to fluff pulp capable

6 On 2013 Buckeye Technologies, Inc. acquisition is completed

7 Five World‐class, non‐integrated mills located in the SE U.S.

8 A global pulp supplier well represented across all geographical regions and sales offices in key areas

How GP Cellulose grew to where we are today…


End-Uses of our pulp

The material you handle goes into a wide variety of finished goods. We are deeply focused on quality because of the sensitivity of the end products below:


• Break bulk is a system of closely coordinated processes (Mill, warehouse, stevedores, vessel ops, destination warehouse) to ensure that the product is handled with the care it needs.

• The product is handled 8 times in this chain.

• As long as GP delivers the product in zero defect condition to the port, warehouse receiving, port stevedoring and vessel ops use clear standards outlined by GP to handle and repair (if needed) our product before preparing for loading.

• The stevedores who load the vessel under the direction of a Port Captain are a crucial link in the chain due to the product being most likely to be damaged during this stage in the supply-chain.

• In lieu of a knowledgeable Port Captain who is employed by the vessel owner, GP has no option but to depend on the stevedores who might not the same individuals for every ship, handle hundreds of different cargoes and have different skill and motivation levels. The risk increases.

What is crucial to make break-bulk successful?

Mill Domestic Warehouse Vessel Foreign

Warehouse Customer

GP GPVessel Carrier

Origin Port

Stevedore

1 2 3 4 75 6 8

Stevedore Origin Port

Introduction to Georgia-Pacific. - Fastmarkets RISI...1In 2004 Koch Industries purchases the legacy...

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