Orchids Paper Products Co. Surges 27%

Shares of Orchids Paper Products Company (TIS) soared more than 27% after the company said it acquired a “major” business award from a new customer in a new distribution channel. The name of the client and the size of the award were not disclosed.

This project is for ultra-premium products, which are expected to be produced principally in Orchid’s new plant in Barnwell, SC, and which the company believes will substantially improve capacity utilization and allow Orchids to take advantage of operating leverage.

The company expects that the volume from the new customer will rank it as one of Orchids’ top five customers when fully implemented. Shipments are expected to begin in late Q4, with full implementation in Q2, 2018, according to a Form 8-K filing with the U.S. Securities and Exchange Commission.

“We expect that this new business combined with the new business we added earlier in 2017 and the continuing prior existing volumes will equate to an annual sales run-rate of between $220 million and $240 million when fully implemented in second quarter 2018,” CEO Jeff Schoen said.

By Melissa Petros