RYAM - Earnings call transcript Q1 2021 | Rayonier Advanced Materials Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Rayonier Advanced Materials First Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host Mr. Mickey Walsh, Treasurer and Vice President of Investor Relations for Rayonier Advanced Materials. Thank you, Mr. Walsh.

begin. may You

Mickey Walsh

and Advanced Operator, and everyone. again Welcome Thank first good quarter Rayonier Materials call XXXX to you, morning, earnings webcast. conference

President and on Paul Vice Financial President me call and Senior our Chief Finance. Joining Officer and Executive Moeltner, Marcus today’s Officer; of our Chief Boynton, are

pursuant were forward-looking and today’s the to and remind to that last in are statements rayonieram.com. available of earnings release laws. issued at like Our on we I’d include will presentation, made presentation materials provisions securities harbor evening our website safe you federal

believe with release non-GAAP SEC which earnings our to measures our of our as be non-GAAP most non-GAAP XX to Slide XX financial Slide directly to forward-looking but Our certain well measures actual Today’s They We materials. on X as may presentation cause information some factors differ on their our alternative comparable will now X and of investors filings are useful the and also the provide to turn these A GAAP should financial of on are we measures from reference of referenced Slides the measures, statements I’ll included the over X reconciliation presentation. of through measures. materially presentation measures noted results list for presentation. not GAAP call an considered as may management Paul. make. also

Paul Boynton

end-markets by note, enter on to improved prior to million free overcome constraints. EBITDA, sequential quarter. and I'm of with on we as strong Driven generated our well that we typical cash logistic as in And specialty first capital as $XX we improved million $XX captured High everyone. uses Thank generated from Cellulose And of in Purity in Both certain for in as across Slide all see pleased $XX report prices, second quarter. surge of year all morning, you, continue a demand EBITDA we our momentum Along by seasonal to a to good commodity prior Mickey. as year as strong basis. well products prices higher the lumber prices Starting the momentum X, EBITDA million. we compared cellulose a significantly to products. working flow key

after assets shortly assets. in announced Newsprint The in the we strategic lumber of significant finish company capture partially Importantly, our the the to to quarter allows the due surge and from prices. April, these first sale value sale Lumber we

it'd us Second, our allows the third, allow company upon businesses to BioFuture. core and high build purity to debt, cellulose pay down

part our which As to of assets see leveraging we bio-based that create BioFuture, see new products. we sustainable is key

or Anomera, We also be performance patented yesterday are blocks which natural to agreement Nanocrystals startup Temiscaming have global company high building ingredient recently be products investment marketing will emerging CNC our formulations. from business be strategic a Carboxylated a and Cellulose announced an The are consumer nanocrystals with fundamental exciting are our have that cellulose formally applications. widespread signed formally Anomera's biodegradable industrial in producing in leader that products. site specialties by distribution a will Croda, supported produced sustainable at and

some to asset for sale the to opportunities the Marcus? invest I'm the through well to on on of to in then So us perspective key Marcus come the additional quarter I'd numbers for growth our provide and ask now take and going as like highlight company. back

Marcus Moeltner

Starting with Slide you, Thank X. on Cellulose Paul. Purity High

in a by at X% quarter offset sales an decline First driven $XXX million increase X% prices by flat in sales sales held volumes.

increase. $X a acetate, grow CS demand driven As and tire filtration. million operating million. cost with gains. improved sales primarily volumes by driven favorable Pricing of were and on more a were improvements declines profitability volume slightly to constraints, increased expected, in drive engine higher mix lower further cord, $XX segment by while Commodity prices prices helped logistic our down X% CS strong CS combined commodity sharper even

to increase second to commodity further. forward we prices expect the Looking quarter,

CS slightly specialties. contracts. despite the year remain volumes below prices prior remain fulfill our stable expected purity as favorable demand we high are expected mix more Total our expect we For to are toward to annual however full-year, cellulose for stronger cellulose a

offset increased forest the Turning of pricing. to first Slide $XX XXXX X, sales logistic million from driven segment to price $XX X% the million stronger by decline improved to $XX mainly XXX% due for volume million constraints. quarter by for driven lumber the sales increase product segment in by our a a products by EBITDA

majority shipments on As duties we this of a results also producers or will for vast $XX Rayon of total XXXX, later quarter. and of in upon million. lumber the the reminder, of EBITDA into million now disputes, sale approximately year. and softwood rights the business these duties duties a lumber Based in have of to paid $X retain of duties have all these results duties paid the the of prior have a trade accrued improved the U.S. million Since the and interest start recovered after resolution historically Canadian $X

incremental likely the Looking forward expect prices sale very with the remain second very to strength market, sequentially. in continued quarter available strong higher lumber repair new robust supply, and the remodeling prices with in little and we

our into order extends June. book now As

the on higher of reliable in the focused these through half year. operations of completion We back prices and capturing the the are asset of the sale ensuring benefits

million million operating costs. Paperboard increased X, by a to $X the Slide to driven $XX Turning X% million volumes, sales lower sales declined by in segment decline for driven segment $X EBITDA

to pulp cost. offset are announced market stick in price increases rising the Looking help raw forward, seeing material we

delays. X. logistic our to of Sales yield pulp declined to XX% manufacturing by newsprint only from on driven operate resulted to $X our Newsprint Slide decline primarily two segment one Pulp from year declined which volumes & prior million lines. Turning our in XX% volumes decision due High

prices driven by offset yield loss million volumes a and sales and cost the for flat prices higher pulp lower high and EBITDA at increased segment by respectively. $X X% reductions. held XX% Newsprint the

pulp Newsprint logistic expect Looking we we prices through constraints ahead, Port while manage yield Montreal including increased for global recent high strike. the and both

to reflex a logistic rate. corporate tax commodity the to key operating $XX and purity Slide million the newsprint impacts few related expense. Volume prior $XX the volumes XX. On improvements and vast basis, cost price million $XX in book There is lower in are from consolidated lumber the helped offset a segment. improvements this while non-cash to delays quarter high contributed cost to Notably, a of million; drivers year increase. income cellulose Turning high of improved significant majority the were cost

income quarter. generated significant the Canada in Firstly, the during company

are to is earnings a does company offset volume due the to amount expect and guilty the In pay for the available Second, taxes taxation required double to any taxes. recognize our U.S. to not Canada, NOLs cash Canadian in

in payable we against smaller which applied will the We amount credit taxes U.S. smaller only both pay U.S. be a the expect for of could enquired amounts. amounts, existing account these to however portion. to be However, of

jurisdiction. are which unable to fully utilize interest increases this we U.S. reduce rate Second, our in taxes overall to expense our deductibility our

the we receive high While amount the rate tax of in year. and is a only million pay still refund minimal book for XXXX expect this quarter, to $XX in substantial tax

lumber Paul. positioned reduce back make million. sale to call and strong below the Along debt and net the seasonal the fell investments by with while newsprint, $X the increases, With results capital I'd and driven the million, $XX improved to liquidity proceeds core of working million that is the just $XXX turn from the company necessary to over business. well further despite Lastly, to that grow strategic HPC to like to

Paul Quinn

Marcus. thanks, Hey

to plus this Department transaction, know, incur U.S. newsprint closing rights is be closing which XX% of captured as to based note $XX Commerce Page to shares which very paid of to announced an important GreenFirst which paid the in also are investors million. amount GreenFirst the and $XXX chip the expected around of estimate up price we Turning remaining for for total purchase cyclical not In decline. all paid a of April is that retain has in additional about agreement. year to all secular on will as and It's second be the the up selling to XX, price Rayon the products upside level of the purchase purchase incremental we until million. do in mill substantial half earnings our with a until business facility a at of $X to of million is shareholders and being million on into offset to will The our business inventory our in retain in we significant be will expected price will XX, is these currently the will provide cash lumber potential. which be of fluctuate sometime until lumber approximately also XX% value. assuming the businesses delivered newsprint value related closing with this will Rayon $XXX Forest

of ago further and all consider due Just of -- demand. we portfolio a this divide year valuation lack we've stated these an businesses. company that assets with down divest And to were time, of would shut these appropriate the optimization

purity businesses. cycle. we're capturing use EBITDA and cellulose a investing of proceeds both years, key over for the enterprise has which over We tend business of for million had an times to through with $XX to margins time past purchase sale high the plan higher multiple. strategic opportunities higher the Based our Over this lumber $XXX these averaged enterprise six three that price, newsprint million multiple the our reward to debt has investors in businesses repaid on

centers. on Quebec, opportunities leverage four Rayon looking out of Slide in bio-based France, Florida and Georgia, R&D XX, our solutions manufacturing the with BioFuture around of world-class will along such, forward As our center to locations

additives. specialties We a to are from products lyocell friendly viscose in using environmentally ethers and plastics, commodity a handles for such our of cellulose of as many leading food also manufacturer and all and We're acetate, screwdriver pharmaceutical differentiated fluff, cellulose traction producer textile. grades used across

Additionally, tailwind capture paperboard market. we supporting specialties, prices value we on for mechanical also cellulose to new the strong of with the a upswing commodity continue The a leading pulp. quality well-positioned branded X-ply in our demand Kallima hardwood products to are our and produce

corona, investments bioelectric similar to We've XX, France, these turbine in to smooth year's diversity salt we facility. Lignin last in Tartas. out Other Florida, Georgia including greater in our facilities financial from know to the our and exploring facilities our that invested and add manufacturing helps these the assets. area But of can had in These opportunities in natural our producing drive our to also even much further can each of are be sulphite value streams for And done each new we projects more our markets. We've commodity pulp and BioFuture Quebec. also cellulose we in ability three value energy will investments more Slide invested asset softwood process as Turning for diversify bioelectric that have green explorations capture invest and auditioned After our businesses product our the values growth. products. into we peaks in believe shareholders. as generation already such second well in bioethanol which in biomaterial new with coming as are prebiotics are revenue our of

team can Temiscaming our properties including noticed be for as cellulose in technology of Looking cosmetic can Page enhance building quality new performance from biodegradable highest core chemistry. medical for that applies produce Anomera a manufacturing kilograms scientist our patents. Temiscaming on growth. I sourced products Rayon of life end investments Since in invested have in interest over in is XXXX, XX first is And expect million specialty year. quarter. a in over XXX,XXX total which An as an cellulose a formed the opportunity cements, per currently natural make investment composites, XX% headquartered and Montreal plastic, expands nanocrystals is the and Anomera the BioFuture at adhesives, alternative process and into with $X a our agricultural, of Anomera loading the through cellulose call, a produces at can paints XX the facility specialties. pharma the nanocellulose our blocks into well that nearly investment a beginning a the powders with texturing years. developing sustainably five as shareholder largest next competency sciences. microbeads of in this in of additional of Anomera. to These the we we coatings, variety is investment This and of additional nanocrystals property platform XX, entire

excited about the We Rayon. future of are

the diverse Our cellulose future. differentiating opportunities specialties service A reputation as platform broaden positions leader specialties asset will the presence. and market the for our viscous our fluff commodities further cellulose us leading well with to in BioFuture market allows all R&D market, within investment and segment,

We and cost manage a stronger sheet. cash that balance more and have drive we to flexible control proven can liquidity

well grow to Now the market we're favor, our are our way conditions business. in on our capitalize and

So up for call open that me let questions. with the operator

Operator

Thank first question with proceed from Please you. America. Babcock [Operator Instructions] is of Bank Our your John with question.

John Babcock

for Good my Great. thanks taking morning and questions.

I so I've that'll high wondering if say be challenges the First part, loss, purity impact cellulose. missed the to you volumes just Apologies freight able through you kind just the in of was go might if with the could that, of be helpful. quantify

Paul Boynton

Port days that had would just an certainly trucking of fog got out and of and John, go lot issues the is there Paul. volumes to largest product out Savannah We've truck that think didn’t else to the quantify I we're of on that I for a said And was and board. who were impact few had is we this business. differ everybody port across and don’t business the availability backlog, but sea bit part no we of way, also in unique of and Hi, and actually related so with of the a February, and in logistics second Look, good us Lot morning lot a the there to challenges. the drivers. of for a off we any a lot like Eastern that create of our moves we think

and lumber yield as high businesses business So our we've HPC our not only also well. our had but that hit

So quarter board. think the but the we ease second kind still we'll up see well. across of We where as the in challenges delays

year we're of industry that outside get all the kind across leveled it through our this So even third in to may to think us unique back don’t of take that of and again quarter out half or way industry. I

Marcus Moeltner

--. John Alright.

John Babcock

ahead. go Oh, Okay.

Marcus Moeltner

good most back to Port which where speaks Montreal we likely that Paul's some comments work is that there development noticed John, up. Well legislation of in was a you the for ease to Canada see should which

Mickey Walsh

on the We've and cellulose really benchmark the a be with benefit for guided is stable an next John, the volumes towards increase And volumes. specialties. will HPC year in

John Babcock

that's Well, Okay. helpful.

should continue it But the you're like a that I get those commentary, of that it the in these be on based of to it sell at so, sounds And losing pay quarter. you it. some channels so obviously second volumes mean Is sounds like not grow to kind like back volumes, challenge. fair, sounds

Marcus Moeltner

don’t at the the volumes We see going of out year all.

with volume from And I think our we comments stayed we remain year-over-year CS kind than of originally that at last be stable. anticipated stronger up is potentially last had we see we again our point in slightly volume should consistent actually quarter this year.

John Babcock

commodity on trends last And point about cellulose that Could in just there. Okay. actually demand also you the on talk with you're seeing focus this? specialties viscose then, and maybe

Marcus Moeltner

side. well Yes, Well, I out question, as the we're I as on commodity CF seeing John. what demand in your there got think we're

John Babcock

Yes.

Marcus Moeltner

That's right.

John Babcock

Yes.

Mickey Walsh

then We're for CS paint filtration, of into good automotive of also and Look demand the going which it. strong goes a lot Marcus Engine probably we we're nitrocellulose products plastics our seeing and on that sell. products markets construction into it that tire of seeing media, lot lot made coating. and and a acetate, related the cord, acetate comments

they it of lot demand catch fundamental think on within. actually had see a that. our got on real around good through demand. customers up this. we pool certainly some some We So a just of some conversation We've with But is fundamental inventories

year-over-year. and continuing commenting volumes for we're strong the see would So pulp, on. hence fluff Ending demand products be thoughts for viscose very we've to our with been those CS up the year look

about that people relative out QX John, lagged up April probably increases there prices And XX% our XX% QX have for there. note overall the have On has is pricing NBSK most market lagged you'll the The those of already place pushed in and would XX% NBSK will pulp. probably be QX to market prices. and fluff up market, certainly out

So we're that. probably behind quarter a

some of in ahead pulp bit strong going to see and prices prices are already. second you're a that quarter viscous similarly which pushup So in and our fluff good

where market QX relative is relative XX% there, seeing noted to we in And us. think see I XX% to April up This deck our is index already And that prices. up probably QX in last prices. in price just we're we're to again, viscous six the chart QX. week on lag you a about for eight about those to

viscous. quarter So fluff see our majority on both for again our of pulp going a a you're product pulp. strong the and second is to fluff And commodities

John Babcock

common you Okay, but impact question main relatively I that's area? days are inflation and to great. business these next had is then, of about think overall a question this the I the your just across by And thinking whole how

Marcus Moeltner

is then diesel that some might based migrates here. this supply strong We're signs starting it beginning inputs seeing John, probably chemicals, the through of of Marcus our not definitely spots. that fuel, a at have certainly our chain units. of Certainly to as we're seeing we're the and of as We'll some of couple of thought inflation as the coming energy in sulfur but is across well. into logistics signs see the signs Hey as business such year so

John Babcock

you. Got

And X%? kind standard that's of off to so just mean the we labor X% I should assume inflation,

Marcus Moeltner

have in Yes, to certainly place. labor that the labor tied more agreements we

should So, inflation probably well to and we're commodities but you year up anticipate mid-single think see maybe overall? you lag comes coming And of We kind bit it for digits And some it markets a of it's when muted pretty for business. our inflation through. those originally. a the on well

Paul Boynton

yes. be that'll Yes, a number, good

Marcus Moeltner

Okay.

John Babcock

one All right, that's just in.

way you that it the of any this wondering Congress. turn tax potential about impact through I will I could before if was Just some talk proposals a over. question from make last just

Paul Boynton

about it's present that Yes, fluid there's the tax that eye keeping still. taxes is again, additional John. to to we're have position feel good moving There parts. NOL in on is it. impacts. certainly any referenced could a Canada the Yes, But our staying U.S. But near been There term somewhat and some we close some leakage. guilty mitigate credits up we still in that have sharp we're

John Babcock

thanks help. for great, the Okay

Paul Boynton

Thanks, John.

Operator

Thank you.

proceed with question. from Quinn question with Please is next RBC. Our Paul your

Paul Quinn

strong very you seeing. we're reference morning, currently the thanks that markets guys Listen, much. Yes, Good guys. pulp

start? and purity negotiations when how that this for Just around the wondering you your sets those up business do negotiations high

Marcus Moeltner

that Hey weak Paul, cellulose couple not thanks markets helpful in for to the of years our last HPC a are discussions commodity typically question. said those the we've actually Look, as specialties. backdrop

And so be strength think market. couple Those specialties. kind and as backdrop. the of years. markets sell I the selling this that on advantaged commodity are they of is than Right which some haven’t think cellulose that more couple a to And just months the in your question, helpful know real you now gain a a fuels helpful all off we carry tightness competitors would usually actually fall of we commodities and some of our are those And discussions into market to backdrop timeframe. the far of I across think in we know had the next in earnest again, for tick that

Paul Quinn

a in position? on for with that you've the restrictions are And lumber the your intention sale green newsprint the position of businesses the got around then, or What Okay. just us. XX% what's that, equity mill,

Marcus Moeltner

few participate XX rollover XX million is can't Paul, in you're on in hold green the which's feel we measured so correct, vehicle. that current be upside about the six the into with is a we're then Marcus. as U.S. think in equity. well-positioned lumber And our nice the first thing Yes, rollover months. it's market rates, exchange to Well, of that'd and the

be option. to that So we would we our period, at after free monetize again it time

Paul Quinn

length? at lumbar fees. is And some this zap past as obviously of market, period that that you something their and But we're looking advantage down got is six think that just highs sitting or something anticipate market's I lumber mean do month taking record the what's holding above well you'd

Mickey Walsh

over. is going in plan to we I said, we'll monetize. long-term. that it -- the to Paul. the we'll just gauge Marcus When Yes. business We're to think and about And you, there XX% sold in some that like We as that be assets upside rolled watch the with this not

we be play volumes right So plan strong. is our see it's strong short-term certainly will there that to make to the for out those on the a we'll lumber opportunity going it a all market, be but while. stays Everything

start excited. way think off. really we're We're products, a for great it's So and actually to GreenFirst for excited them

As completion this come will we the noted in that half back transaction year. that to of

opportunity the and we'll in be we'll we're XXXX. lot capture created that's the to make to just GreenFirst of So a And at upside to of good able to the going a have right and have then some value the again, time. call

Paul Quinn

that portfolio anticipating enough. you're just, And currently Fair businesses Okay. other then changes maybe that any in? you're with

Mickey Walsh

we'd kind we we we we've into on focused time do up the we were the when made market's this transaction, said wanted He over evaluate entered look, really HPC to No, -- to what like feel When executed right. execute. of and that that assets that we opportunities of we clear Tembec. very

got see why there the now Then we or additional around yield doing the the not like it in again We connected think and the of Temiscaming. not in all and market high paperboard of then. it's are the know they strength. I yes when strength. I markets at think we pulp businesses at why feedback some And you

term we longer so And these being all of owners anticipate assets.

just to really good what So right now. I them. have, shape back we're we invest got think we a in now Paul, leverage in

portfolio most Let's why get them our and the that's sustainable expanding and forward into of more BioFuture bio-based we're can about about products. we talking going out the that

Paul Quinn

Thanks, that's guys. Great, I all much had. very

Mickey Walsh

Thanks, Paul.

Operator

you. Thank

of with Spitz Roger with America. proceed Our your Bank question next question. Please from is

Roger Spitz

the would you to repay which use The expect debt faces you have do that? proceeds, cash Thanks view million much. out much a do $XXX and to how deck U.S. after very go you of with

Marcus Moeltner

Roger, morning, Good Marcus. it's Yes.

down million option within facility. note for senior we recently, facility we the $XXX within have that pay know you a an that As credit negotiated

But closing the We we natural down. we'll are as a have option a best in flexibility that markets see on a as before certainly that to would that us. allocate place to evaluate pay flexibility. certainly we based the we built where what get but again, So is

Roger Spitz

what in we And some EBITDA LTM's will so at guess get can the be it. point QX newsprints you 'XX Got can is QX disclose, you'll and right our sales I pro 'XX forma? anyway on

Paul Boynton

we deck Roger, of the sets both the put That a Figure for the in Yes? here investor and newsprint schedule Page for is three-year XX. period. back lumber EBITDA. out the

Roger Spitz

And do you expect to pay any cash the is payable newsprint lumber on the sale business? of

Paul Boynton

we do Sorry, get -- dint I that. expect the pay

Roger Spitz

Cash taxes.

Marcus Moeltner

be cash some in tax offset have range help have our on Very credits. under We then Canada we're the $XX call NOLs yes? million leakage. they we Would in fortunate in estimated the taxes, any Canada to in to it and little U.S. leakage of and

little very So what we're is leakage expecting.

Roger Spitz

then the but Okay. on timing ones call the depends CapEx million. you of that XXXX that on update a flow. at CapEx Obviously Then probably sale million of like? last The to $XX look cash expect couple and any last just what XXXX $XX might a on

Marcus Moeltner

you Paul's HPC Right. then With portfolio, the the assets. reliability the refocusing be of custodial right would on to we of comments. our focused us And heard capital maintain level

to we said basis. on net million previously $XX million So $XX a

in on to see some would were $XX I custodial quarter maintain million of strategic looking million saw a us $XXX You we CapEx. first range certainly the capital. the including

Roger Spitz

good the you tax made still we the on prepared But sale I'm you $XX earlier some the million less cash $XX should tax shelf being leakage the on And taxes All million. comments cash $X or And from that in think leakage? of tax inflow of wondering remarks. call excluding million XXXX $XX Last than right, last the expect me. tax million. ignoring

Paul Boynton

Act million some refund audit at $XX we'll based then But that Yes million good Roger, million that's a classified what just the in with $XX the still and is We this sphere. work million in ongoing. further feel come $XX portion about to we we of $XX couple back on still end the Cares envision which around now.

Roger Spitz

much. very you, Thank

Paul Boynton

Roger. Thanks,

Operator

Paretosh is with question you. question. Misra Thank proceed our from Please And Berenberg. your final with

Paretosh Misra

Thank everyone. Good you. morning,

So next focus business, multiple starting a to this year. CS because just volumes for the have see earlier when you you're wanted maybe on off follow-up maybe question the and on contract. I on different customer's you pricing

how So you volumes coming to in guess year is renewal enter volume Is up change. reset could as is reset up we be price the just for XXXX? I much there's date give for volume might or next us a sense there there that is any as

Marcus Moeltner

don’t period have think think we that right this now. to something there. out we put don’t on for we last years. our of we've XXXX there know I out Paretosh, comes don’t that I renewal. business what I some up is more than the seen want have of that's that Obviously, coming anything substantial few

years. place And handful a but I seen for got contracts that a I volume line. for all of years. we've a last on in I think multiple multiple it's It bit forward the So yes of lot the up -- rollover discussion do pretty year. of for We've think of in range lot it's so, in coming what we it's years. have contracts think typical of type of We've place a got

Paretosh Misra

in this actually useful. at be you of a we that'll then, updates that? TEMSILK that I worth sharing. to about premium that's market priced pricing, very it, switching recent think to kind or How months opportunity. becomes the guess, longer should that And having that's something are lyocell opportunity. on is Got And what discussions the in term any bigger and Viscous

Marcus Moeltner

that, probably we the back even there down while in a saw bit a coming a Asia significantly that market was impacted that a for that moving probably COVID-XX A just on of or textiles pretty looks like capacity market it's Look, lot saw slow lot be and could period. like by the XX%-XX% to forward. behind down Lyocell Viscous nicely. but of assets Yes. we most shut down, It's

year to competitors got that out at there. area combined. five on growth it about are Obviously together, that XXX,XXX our that, our product a to of them customers optimistic XXX,XXX into still put softwood of growth are market. type still plan the of really and it. have feeds most Our looking We've we've in very ton we're still all When a got that sites our opportunity sites on nice some we

general about that going products. I'd And when pulp takes priced that forward. premium fiber feed most does into our with into lyocell the business think optimistic it say specialized a we It we're market. more at to and market So the will a probably product be viscous

that would as So and for viscous look demand and moves is at the that market, to driving a be a mind a amount and know into we And I capacity into at softwood the product. there's good We've for have been available there's softwood capacity fluff hardwood softwood at also into set for there in I the over we increasing market. be is pulp product more take premium that that viscous of said in keep got almost market. a some the Hemisphere, available all the pulp the that balance supply products. often and They would hardwood. market demand market. out is notes and a viscous TEMSILK have look business going keep as the We as what with continue broadly into market, But mind are to that think this a the general the moves we the coming already And we of nice Southern remaining dissolving hardwood. then we got

Viscous general serve the it's product, either or in think its to with we good. a good at market our whether softwood we're spot So TEMSILK way

Paretosh Misra

XXX,XXX capacity? tons capacity ton currently to did does compare this XXX,XXX current And there, with make viscous to how your it you material, have there's

Paul Boynton

in with this TEMSILK type And What made being produce is at market we facility. have So five the that of made talked tons. don’t product next saying up including the our see said the we at about this a Temiscaming over some the to overall to tons product. looks that's capacity demand we could and We're time we've production do TEMSILK in majority like being Temiscaming XXX,XXX XXX,XXX our point to have years. to

of just the call range. kind that and it freight we're than framing the facility you, growing XXX,XXX see TEMSILK if Paretosh, potential market right in that that's let's we XXX,XXX has tons could for of So the how tons capacity helps or now. majority the that into capacity And more it that lyocell.

Paretosh Misra

million one how very And think into a now. quick we The corporate for this go that second the we last transaction that's half [$XX] in Paul, as was Marcus. believe I closes? should cost maybe when a about clear which QX, Thanks and

Paul Boynton

seasonality Paretosh, lumpiness $XX Yes, of on be not the million optimize there We it's so an not of the the transaction. but quarter going run ourselves corporate think change, going $XX where rate. step cost optimization to side. it's But a class our million do corporate to be an would some due but side challenge to the corporate have we to to corner of a -- the

Paretosh Misra

Got it, that had. that's I makes sense. Thanks guys, all

Paul Boynton

Thank you.

Operator

session. remarks. of the question turn for have gentlemen, the closing call we the Paul and Ladies over end I and reached now answer will Boynton to

Paul Boynton

Yes. everybody time for today. Hey, your thanks

of we're Rayonier With about reinvest excited the and the we our BioFuture significant current market see Materials. Advanced in tailwinds business, to opportunities

time and have again for your So day. a thank good you

Operator

today's a you for day. conference Have great Thank may disconnect you this at This your time. your lines concludes participation. and

Rayonier Advanced Materials (RYAM) 5 May 212021 Q1 Earnings call transcript