Svetogorsk Mill May Curtail or Temporarily Shut Down Production

Rhea-AI Summary

Sylvamo (NYSE: SLVM) is facing supply chain challenges that may lead to curtailing or temporarily shutting down operations at its Svetogorsk mill in Russia due to inadequate raw material supplies. This mill, which employs around 1,700 people, produces uncoated freesheet, coated paperboard, and pulp, relying on imports from Europe. Despite these challenges, Sylvamo reports strong momentum in Latin America and North America, and Russian operations accounted for roughly 15% of total revenue in 2021. The company continues to monitor the situation in Ukraine.

Positive

• Strong operational momentum in Latin America and North America remains unaffected.
• Russian operations contributed approximately 15% to total revenue in 2021.

Negative

• Potential curtailment or shutdown of production at Svetogorsk mill due to raw material supply issues.
• Dependence on European imports may risk future operational stability.

MEMPHIS, Tenn.--(BUSINESS WIRE)-- Facing inadequate supplies of critical raw materials, Sylvamo (NYSE: SLVM) may curtail or temporarily shut down pulp and paper production at its Svetogorsk, Russia, mill later this week. The mill is currently operating while the company takes steps to mitigate the supply chain issues and continue production.

The Svetogorsk mill, located at the border with Finland, employs approximately 1,700 people and produces uncoated freesheet, coated paperboard and pulp. The mill relies on raw materials and other critical supplies and services imported from Europe.

The mill is also the primary water, electricity and water treatment provider for the Svetogorsk community. The company is committed to continuing to provide those critical services.

The Svetogorsk mill has an annual capacity of 720,000 short tons of pulp, paper and paperboard. Russian operations accounted for roughly 15% of Sylvamo’s 2021 total revenue. Strong momentum in the Latin America and North America regions is unaffected.

Sylvamo continues to monitor the rapidly evolving crisis in Ukraine.

“We hope for an immediate cease-fire agreement and swift diplomatic resolution,” said Jean-Michel Ribiéras, chairman and chief executive officer. “Our thoughts are with the citizens of Ukraine.”

Earnings Guidance

On Feb. 11, 2022, Sylvamo provided earnings guidance for the first quarter of 2022. The estimates included in such guidance were current as of the date given and are not being updated or reaffirmed by this news release.

About Sylvamo

Sylvamo (NYSE: SLVM) is the world’s paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 7,500 colleagues. Net sales for 2021 were $3.5 billion. For more information, please visit Sylvamo.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005401/en/

Adam Ghassemi

901-419-4436

adam.ghassemi@sylvamo.com

Source: Sylvamo

FAQ

What challenges is Sylvamo (SLVM) facing at its Svetogorsk mill?

Sylvamo is facing supply chain challenges due to inadequate raw material supplies, which may lead to curtailing or shutting down operations at the Svetogorsk mill.

How does the situation in Ukraine affect Sylvamo's operations?

Sylvamo is monitoring the evolving crisis in Ukraine, as it may impact supply chains and operational capabilities.

What percentage of Sylvamo's revenue comes from Russian operations?

Russian operations accounted for approximately 15% of Sylvamo's total revenue in 2021.

What is the capacity of the Svetogorsk mill?

The Svetogorsk mill has an annual capacity of 720,000 short tons of pulp, paper, and paperboard.