Orchids Paper has boosted its presence in the west coast of America after it announced a strategic alliance with Fabrica de Papel San Francisco (Fabrica).
Based in Mexicali, Mexico, Fabrica is a privately-owned business that produces high-quality tissue paper products.
It was established as a tissue converter in 1958 and has grown to 150,000 metric tonnes of capacity, and it is now one of the largest tissue manufacturers by capacity in Mexico.
In 2013, the company started up the world’s first NTT paper machine.
Orchids said the alliance supports its vision “to become a national supplier of high-quality consumer tissue products in the value, premium and ultra-premium tier markets”.
As part of the alliance, Orchids will acquire Fabrica’s current US business, including certain manufacturing assets and access to 18,000 metric tonnes of capacity each year to support the value, premium and ultra-premium requirements of the US market, with an option to purchase an additional 7,000 metric tonnes in each of the first two years.
Products will be produced at Fabrica’s facility in Mexicali, Mexico and shipped directly to Orchids’ US customers.
Jeffrey Schoen, president and chief executive of Orchids, said: “We believe our alliance with Fabrica will allow us to cost effectively provide high-quality products and superior customer service to a portion of the market that was previously difficult to access due to cost challenges.
“We look forward to pursuing additional opportunities with Fabrica.”
Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the at home private label consumer market.
From its operations in northeast Oklahoma, it produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through premium quality market segments.