Kadant Receives Order for More Than $7 Million from Major Linerboard Producer in China
ACTON, Mass.--(BUSINESS WIRE)--Jan. 17, 2006--Kadant Inc. (NYSE:KAI) has received an order for a stock-preparation system worth in excess of $7 million from Zhejiang Jingxing Paper Joint Stock Co., Ltd., of Pinghu City, in China's Zhejiang Province. The system, to be supplied by the company's Kadant Black Clawson Inc. subsidiary, will recover usable fiber from recycled corrugated containers for the production of linerboard used in packaging.
"We are extremely pleased that our stock preparation equipment was selected for this major capacity expansion project," said William A. Rainville, chairman and chief executive officer of Kadant. "This is the largest single order Kadant has booked in the past eight years, and the largest ever received by Kadant Black Clawson. Zhejiang Jingxing Paper, one of China's leading producers, has been a loyal customer of ours and we are pleased to provide them with the latest technologies for high-quality recycled paper production."
Kadant Black Clawson Inc., based in Mason, Ohio, is a leading fiberline process equipment supplier that designs, manufactures, and services equipment used in paper recycling, chemical pulping, and paper machine approach-flow applications.
Kadant Inc. is a leading supplier to the global pulp and paper industry, with a range of products and services for improving efficiency and quality in pulp and paper production, including paper machine accessories, and systems for stock preparation, fluid handling, and water management. Our fluid-handling products are also used to optimize production in the steel, rubber, plastics, food, and textile industries. In addition, we produce granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Acton, Massachusetts, and, with the addition of Kadant Johnson in May 2005, has annual revenues of approximately $270 million and approximately 1,500 employees worldwide. For more information, visit www.kadant.com.
The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements regarding demand for our products and technologies in China. Important factors that could cause actual results to differ materially from those indicated by such statements are set forth under the heading "Risk Factors" in Kadant's quarterly report on Form 10-Q for the period ended October 1, 2005. These include risks and uncertainties relating to our dependence on the pulp and paper industry; international sales and operations; competition; increase in our debt; restrictions in our credit agreement; our ability to successfully integrate Kadant Johnson; our acquisition strategy; our ability to complete the restructuring of our French subsidiary; retention of liabilities and warranty claims associated with composite building products manufactured prior to the sale of the business; availability of raw materials and exposure to commodity price fluctuations related to the manufacture of fiber-based products; protection of patents and proprietary rights; fluctuations in quarterly operating results; and anti-takeover provisions. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT: Kadant Inc.
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Thomas M. O'Brien, 978-776-2000
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SOURCE: Kadant Inc.