As part of the Paper and Paper Products industry, Buckeye Technologies Inc. (BKI) is a manufacturer and marketer of specialty fibers and nonwoven materials. Headquartered in Memphis, Tennessee, they trade on the New York Stock Exchange (NYSE). They are specialists in polymer chemistry and fiber science, making cellulose-based specialty products.
Buckeye Technologies Inc. operates facilities in the United States, Germany, Canada, and Brazil. They sell their products globally to makers of consumer and industrial goods. Sixty-eight percent of their sales are outside the United States. However, they produce seventy-four percent of their products in the United States.
The company offers cellulose-based specialty products made from both cotton and wood. They utilize airlaid and wetlaid processing technologies. They focus on niche specialty cellulose markets, as specialty cellulose normally commands higher prices. In addition, demand for specialty cellulose is less cyclical than commodity cellulose.
Buckeye began in the early 1900’s when Proctor and Gamble started the Buckeye Cottonseed Oil Company to provide a source of vegetable oil. In 1993, Buckeye became an independent enterprise due to a management buyout. In 1995, Buckeye went public. Today, the company operates in a $7B market.
The company has more than 65 research development scientists and technicians. Buckeye Technologies Inc. produces nonwoven materials such as feminine hygiene products, baby wipes, and specialty mops and wipes. This accounts for 32 percent of their products. They produce fluff and pulp products including disposal diapers, which account for 18 percent of their product lines. Their chemical cellulose category, which accounts for 32 percent of their line-up, includes products like food casings, ethers, rayon filaments, and acetates. Accounting for eighteen percent of their products are customized fibers. These include filters, personal stationary, premium letterhead, and currency bills.
Buckeye Technologies Inc. continues to innovate with fiber and nonwoven materials. Their desire is to produce the quality products that their customers need daily. With their cellulose-based specialty products, they also desire to give value to their shareholders on a consistent basis.
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