Rayonier Advanced Materials Announces $146 (€133) per ton Cost Surcharge

Rhea-AI Summary

Rayonier Advanced Materials Inc. (NYSE: RYAM) announced a cost surcharge of USD 146 per metric ton for its cellulose specialties and viscose-grade products, effective April 1, 2022. This surcharge is a response to escalating inflation and rising costs in energy, logistics, chemicals, and wood. The company aims to maintain its product and service quality amid these challenges. Senior VP Joshua Hicks emphasized the need for this surcharge due to ongoing cost increases while assuring continued communication with customers.

Positive

• Implementation of a cost surcharge may help offset rising costs impacting profitability.
• Company remains committed to maintaining quality products and services.

Negative

• Surcharge indicates significant cost pressures on the company's operations.
• Inflationary pressures could lead to further challenges in cost management.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company "), a global leader of high purity cellulose, announced today a cost surcharge of USD 146 (EUR 133) per metric ton applicable to all shipments of its cellulose specialties and viscose-grade products.

This surcharge is necessitated by the impacts of rapidly escalating inflation and directly correlates to the significant increase in the Company’s costs for energy, logistics, chemicals, and wood.

“In this dynamic environment, RYAM continues to work diligently to mitigate and absorb significantly elevated costs. However, as the increases have continued, it is necessary to implement a cost surcharge to ensure we maintain our commitment to provide market-leading products and services to our valued customers,” said Joshua Hicks, Senior Vice President, High Purity Cellulose. “We will continue to monitor market conditions and communicate regularly with our valued customer partners.

The surcharge is effective immediately and will be applied to all shipments April 1, 2022, or later.

About Rayonier Advanced Materials

Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the U.S., Canada and France, Rayonier Advanced Materials employs just over 2,500 people and generates approximately $1.4 billion of revenues. More information is available at www.rayonieram.com.

Forward-Looking Statements

Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Rayonier Advanced Materials’ or future or expected events, developments or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "expect," "estimate," "believe," "intend," "anticipate" and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.

Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220320005052/en/

Media

Ryan Houck

904-357-9134

Investors

Mickey Walsh

904-357-9162

Source: Rayonier Advanced Materials Inc.

FAQ

What is the new cost surcharge announced by Rayonier Advanced Materials (RYAM)?

Rayonier Advanced Materials announced a cost surcharge of USD 146 per metric ton for its cellulose specialties and viscose-grade products.

When will the cost surcharge take effect for Rayonier Advanced Materials (RYAM)?

The surcharge will be effective for all shipments starting April 1, 2022.

Why is Rayonier Advanced Materials (RYAM) implementing a cost surcharge?

The surcharge is due to rapidly increasing costs for energy, logistics, chemicals, and wood driven by inflation.

Who commented on the cost surcharge at Rayonier Advanced Materials (RYAM)?

Joshua Hicks, Senior Vice President of High Purity Cellulose, commented on the necessity of the cost surcharge.

How does the cost surcharge affect customers of Rayonier Advanced Materials (RYAM)?

The cost surcharge is intended to help the company maintain the quality of products and services for its customers amidst rising costs.