Profile: Schweitzer Mauduit International Inc (SWM.N)
22 May 2013
Schweitzer-Mauduit International, Inc., incorporated on August 21, 1995, is a diversified producer of specialty papers. It operates in two segments: Paper and Reconstituted Tobacco. It manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. The primary products in the group include cigarette, plug wrap and base tipping papers, or cigarette papers, used to wrap various parts of a cigarette and reconstituted tobacco leaf (RTL), which is used as a blend with virgin tobacco in cigarettes, reconstituted tobacco wrappers and binders for cigars. Paper segment primarily produces Cigarette Papers, such as cigarette (including LIP), plug wrap and base tipping papers used to wrap various parts of a cigarette for sale to cigarette manufacturers. The Reconstituted Tobacco segment produces RTL and wrapper and binder products for sale to cigarette and cigar manufacturers.
The Company is a manufacturer of lightweight specialty papers, which are used in manufacturing ventilated cigarettes, banded papers for the production of lower ignition propensity (LIP), cigarettes and an independent producer of RTL used in producing blended cigarettes. The Company conducts business in over 90 countries and will operates nine production locations worldwide, with mills in the United States, Canada, France, Brazil and Poland after closing its paper mill in the Philippines and selling its paper mill in Indonesia. The Company also has a 50% interest in two joint ventures in China. The first produces cigarette and porous plug wrap papers and the second, which is under construction, will produce reconstituted tobacco leaf.
The Paper segment also includes commercial and industrial products, such as lightweight printing and writing papers, battery separator paper, drinking straw wrap, filter paper and other specialized papers. These non-tobacco industry products are generally sold directly to converters and other end-users or brokers. The Reconstituted Tobacco segment produces RTL and wrapper and binder products for sale to cigarette and cigar manufacturers.There are three principal types of Cigarette Papers: cigarette, plug wrap and tipping papers. Reconstituted tobacco is used by manufacturers of cigarettes and other tobacco products as a means of recycling their tobacco by-products and to achieve product performance attributes.
The Company produces reconstituted tobacco in two forms: leaf, or RTL, in France, which is manufactured by LTR Industries S.A.S (LTRI), and wrapper and binder in the United States. RTL is used by cigarette manufacturers primarily to blend with virgin tobacco as a design aid to achieve certain attributes of finished cigarettes, such as taste characteristics and reduced deliveries of tobacco-related smoke constituents, and to utilize tobacco leaf waste by-products. Wrapper and binder are reconstituted tobacco products used by manufacturers of machine-made cigars. Binder is used to hold the tobacco leaves in a cylindrical shape during the production process. Wrapper is used to cover the outside of the cigar, providing a uniform, finished appearance.
Commercial and industrial products include lightweight printing and writing papers, battery separator paper, drinking straw wrap, filter papers and other specialized papers primarily for the western European, North American, Asian and Brazilian markets. Like porous plug wrap, certain of these non-tobacco industry products use a fiber blend consisting of long-fibers. These products are generally sold directly to converters and other end-users in North America and Western Europe and through brokers in Brazil. The non-tobacco industry products are a diverse mix that includes low volume, high-value engineered papers as well as commodity paper grades produced to maximize machine utilization.
The Company competes with delfortgroup AG (Delfort), Miquel y Costas & Miquel S.A. (Miquel y Costas), Julius Glatz GmbH, Philip Morris-USA, R.J. Reynolds Tobacco Company, Elets, and STMA (China).
Schweitzer Mauduit International Inc
Suite 600, 100 North Point Cente
ALPHARETTA GA 30022