GREY:FTPLF - Post by User
Comment by
algroveon Oct 15, 2013 1:21pm
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Post# 21817098
RE:RE:Back of the envelop calculation
RE:RE:Back of the envelop calculationI assume you meant the "FGC" mill, because the Swiss mill is a specialiazed security paper mill, not a DP mill.
I am speaking from memory here and, therefore, I could be wrong. However, if my memory serves me correct, the sale agreemnt of the FGC plant prevents them from producing pulp in it for 10 years. A stipulation placed by the previous owners, who I guess do not want competition.
Also, per their NR, this ability to switch production in the plant between DP and pulp is "unique" to the FSC mill, due to its configuration, and thus not cheaply replicated.
My guess is that they would Joint Venture the FGC plant with a Chinese consumer of DP, with the latter paying a disproportionate share of the conversion cost, thus not straining FTP's B/S.