“ international logistics from a shipper perspective”
DESCRIPTION
S.C. International Trade Conference. “ International Logistics from a Shipper Perspective”. MAY 2006. World leader in value-added cellulose-based specialty products. Sales primarily to industrial and consumer product companies. Shipments primarily in “bale and roll” form. - PowerPoint PPT PresentationTRANSCRIPT
“ International Logistics from a Shipper Perspective”
MAY 2006
S.C. International Trade Conference
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World leader in value-added cellulose-based specialty products.
Sales primarily to industrial and consumer product companies. Shipments primarily in “bale and roll” form.
2005 Net Sales of $712.8 million
Only company in the world to manufacture cellulose-based specialty products made from both “wood and cotton” and utilizing both “wetlaid and airlaid” technologies.
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End Use Examples of Buckeye Products
Wipes
Femcare
Baby DiapersTire Cord
LCD Screens Food Casings
Ethers(Thickeners)
Filters
CurrencyPapers
Table Top
Nonwoven Specialty Fibers Materials Fluff Pulp Chemical Cellulose Customized Fibers
32% 18% 32% 18%
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Nonwovens Sites
Corporate Headquarters
Cotton Cellulose
Converting
Wood Cellulose
Intl. Sales Office
Global Presence
Brazil
Germany
SwitzerlandFlorida
North CarolinaTennessee
Canada / BC
67% of sales outside US
86% of sales denominated in US$
71% of products produced in US
North America42%
South America4% Other
6%
Asia10%
Europe38%
Based on fiscal 2005 net sales
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Market Leader in Attractive Niches
Industry Ranking
Products / Applications
#1Specialty Cotton Papers
#1Filters
#1Film for Liquid Crystal Display (LCD)
#1Rayon Industrial Cord
#1Food Casings
#1High Purity Cotton Ethers (Thickeners)Chemical Cellulose
CustomizedFibers
Source: LMC International, Lockwood-Post, Nonwovens World and Company Estimates
#1Airlaid NonwovensNonwoven Materials
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Focus on technically demanding niche markets
Develop and commercialize proprietary product innovations
Strengthen long-term alliances with customers
Provide our products at an attractive value
Business Strategy
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Growth through New Applications
Product Characteristics
– Superior finishing (no fuzz)
– Excellent crack reduction
– Automated dispensing system
– Patent protected
Commercialization Status
– Code approval for use in residential slab on grade
– National product launch January 2005
– Award for most innovative new product
– Currently establishing distribution in U.S., Asia and Europe
– Expanding technology to fiber cement for shingles and panels
Ultra Fiber 500TM - Revolutionary concrete reinforcing fiber
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Growth through New Applications High-purity Cotton Cellulose in Liquid Crystal Displays (LCDs)
Characteristics of high-end LCD market
– Used in desktop monitors, notebook computers and LCD TV’s
– Experiencing rapid growth
Advantages of triacetate films made with Buckeye’s cotton-based specialty fiber
– Preferred over petroleum-based product
– Provides excellent optical properties
Small component of total LCD cost structure
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Logistics Scope
Containers: 34,000 teus/yr
Breakbulk: 45,000 mts/yr
N.A. Rail Boxcars: 5,500 shipments /yr
N.A. Trucks: 7,000 trucks /yr
As well as: * Outside warehouses * 3PL service contracts * Outside Carrier Bill Payment Services * Rail tracking and tracing services
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Primary Container Lanes
Primary Container Trade Lanes out of the US (2005)
Pac Rim
Lat America
MED
N. Europe
OTHER
Primary US Container Ports are:
Savannah
Charleston
Jacksonville
LA/LB
Key LogisticalChallenges
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with Service Providers
FREETIMEIssues (definition/negotiation)
CARRIERSchedule Unreliability
CARRIERAccessorialProliferation
US PORT Reduction in Flexibility
CUSTOMER SERVICEDecline
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Internally and with Customers
Striving to levelout the business
volumes
Non-traditional Customers and
new service demands
ResourceReductionsCOST !