Orchids Paper Products hopes to leave its end users smelling like a rose. The company makes bulk tissue paper and converts it into bathroom tissue, paper napkins, and paper towels for the consumer market. Most of the company's products are sold as private-label items by discount retailers; Orchids Paper products also are sold under the company's Colortex and Velvet brands. Dollar General is Orchids Paper's largest customer; other big customers include Family Dollar and Wal-Mart. Orchids Paper sells most of its products within a 900-mile radius of its manufacturing plant in northeastern Oklahoma.
Orchids has been focused on increasing efficiency, and in 2007 it began producing its own parent rolls, which is the material processed into its other products, such as tissue. The move was a successful effort to limit the the company's reliance on outside sources for parent rolls and the subsequent price fluctuations that have characterized that market in recent years.
Going forward, the company plans to maximize production with its older equipment in a strategic move that deviates from typical paper product makers that have been shutting down older equipment. Orchids has also invested in new equipment. The result of these efforts will be an increase in capacity that the company hopes to sell through new channels, namely grocery and drug store chains. – less
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