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Glatfelter comments on mill fire in Gatineau, Canada

August 13, 2013

One of two airlaid lines was damaged.

Glatfelter has completed a preliminary assessment of the damage resulting from an August 7, 2013 fire at its facility in Gatineau, Canada. The fire partially damaged one of the two airlaid lines at the facility. There were no injuries or environmental impact. The damaged airlaid line is expected to be down approximately two to four weeks.

The company says the finishing and shipping operations were not impacted by the incident and shipment of customer orders resumed within 24 hours. Due to capacity available at Glatfelter’s other airlaid facility in Germany, the company says this incident will have a modest impact on third quarter shipments reducing them by approximately 600 to 1,000 metric tons.

An assessment of the costs for the impact of inventory loss, equipment damage, and clean up is underway. Based on its preliminary assessment, the Glatfelter expects no significant financial impact from this incident as it is expected to be covered by insurance, subject to a deductible of $750,000. However, there may be an impact on third quarter results due to lower shipments and the timing of recognizing the business interruption portion of the insurance recovery under the applicable accounting standards.

The Gatineau mill produces absorbent nonwoven materials on two airlaid machines for the feminine hygiene and specialty wipes markets.

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