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Fortress Global Enterprises Inc - Class A FTPLF

Fortress Global Enterprises Inc produces paper pulp, security papers, and other security-related products. The company through its segments produces dissolving pulp which is primarily used for viscose/rayon manufacturers in Asia. Its business is spread across Asia where it generates most of its revenues, Europe, Canada, and International.


GREY:FTPLF - Post by User

Comment by OptsyEagleon May 16, 2012 5:18pm
166 Views
Post# 19917972

RE: vague quarter

RE: vague quarter

The problem isn't really vagueness but more the fact that currently they are right in the middle of it. 

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Converting an NBSK plant to dissolving pulp is going to have a few hiccups in the initial few months.  As they said, some days are good and some days are bad.  As they learn from the good and bad days, more of the days will become good and less of the days will be bad.  Anyone who has worked in an engineering capacity will know exactly how this works.  You can have problems up to your eyeballs on any given day, but know that none of them are going to be insurmountable.  What you may not know is exactly how long it will take to surmount them (but will probably have a pretty good estimate).

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Currently, however, when they are having their bad day, their production numbers will be down and when their production numbers are down, their costs per tonne are higher (only because of the less tonnes amortizing the fixed costs).  So you see, once they get the production consistently ramped up they automatically fix the cost of production.

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Since they cannot tell exactly within hours when they will be at full production, they cannot tell you when their costs will be on target.  Since we all want to know, you get that feeling of vagueness.  Can't be helped.  We knew there would be a ramp up and probably should have known it wouldn't go exactly to plan.  That's why production plants have engineers.  They never fire them, even when they get it right.  There will always be a bad day.

 

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