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“ International Logistics from a Shipper Perspective”

S.C. International Trade Conference. “ International Logistics from a Shipper Perspective”. MAY 2006. World leader in value-added cellulose-based specialty products. Sales primarily to industrial and consumer product companies. Shipments primarily in “bale and roll” form.

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“ International Logistics from a Shipper Perspective”

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  1. S.C. International Trade Conference “ International Logistics from a Shipper Perspective” MAY 2006

  2. World leader in value-added cellulose-based specialty products.Sales primarily to industrial and consumer product companies. Shipments primarily in “bale and roll” form. 2005 Net Sales of $712.8 million Only company in the world to manufacture cellulose-based specialty products made from both “wood and cotton” and utilizing both “wetlaid and airlaid” technologies.

  3. Nonwoven Specialty Fibers Materials Fluff Pulp Chemical Cellulose Customized Fibers 32% 18% 32% 18% End Use Examples of Buckeye Products Filters Wipes Ethers(Thickeners) Tire Cord Baby Diapers CurrencyPapers LCD Screens Femcare Food Casings Table Top

  4. Nonwovens Sites Corporate Headquarters Cotton Cellulose Converting Wood Cellulose Intl. Sales Office Global Presence Germany Tennessee North Carolina Switzerland Florida Europe38% Canada / BC Asia10% North America42% South America4% Other6% Brazil • 67% of sales outside US • 86% of sales denominated in US$ • 71% of products produced in US Based on fiscal 2005 net sales

  5. High Purity Cotton Ethers (Thickeners) #1 Airlaid Nonwovens #1 Food Casings #1 Rayon Industrial Cord #1 Film for Liquid Crystal Display (LCD) #1 Filters #1 Specialty Cotton Papers #1 Market Leader in Attractive Niches Products / Applications Industry Ranking Nonwoven Materials Chemical Cellulose CustomizedFibers Source: LMC International, Lockwood-Post, Nonwovens World and Company Estimates

  6. Business Strategy • Focus on technically demanding niche markets • Develop and commercialize proprietary product innovations • Strengthen long-term alliances with customers • Provide our products at an attractive value

  7. Growth through New Applications • Ultra Fiber500TM - Revolutionary concrete reinforcing fiber • Product Characteristics • Superior finishing (no fuzz) • Excellent crack reduction • Automated dispensing system • Patent protected • Commercialization Status • Code approval for use in residential slab on grade • National product launch January 2005 • Award for most innovative new product • Currently establishing distribution in U.S., Asia and Europe • Expanding technology to fiber cement for shingles and panels

  8. Growth through New Applications • High-purity Cotton Cellulose in Liquid Crystal Displays (LCDs) • Characteristics of high-end LCD market • Used in desktop monitors, notebook computers and LCD TV’s • Experiencing rapid growth • Advantages of triacetate films made with Buckeye’s cotton-based specialty fiber • Preferred over petroleum-based product • Provides excellent optical properties • Small component of total LCD cost structure

  9. Logistics Scope Containers: 34,000 teus/yrBreakbulk: 45,000 mts/yrN.A. Rail Boxcars: 5,500 shipments /yrN.A. Trucks: 7,000 trucks /yrAs well as: * Outside warehouses * 3PL service contracts * Outside Carrier Bill Payment Services * Rail tracking and tracing services

  10. Primary Container Lanes Primary US Container Ports are: Savannah Charleston Jacksonville LA/LB

  11. Key LogisticalChallenges

  12. with Service Providers FREETIMEIssues (definition/negotiation) CARRIERAccessorialProliferation CARRIERSchedule Unreliability US PORT Reduction in Flexibility CUSTOMER SERVICEDecline

  13. Internally and with Customers COST ! Striving to levelout the business volumes Non-traditional Customers and new service demands ResourceReductions

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