Neenah Paper Announces Corporate Name Change to Neenah, Inc. Effective January 1

Pennsylvania-based Pixelle Specialty Solutions, a leading provider of specialty papers, announced that it has secured significant new financing, positioning the company with ample liquidity for continued future growth. The recent financing, which includes new capital investment and amendments to the Company’s credit facilities, was completed in collaboration with the Company’s existing lenders and has substantially bolstered the Company's cash liquidity position. This strategic transaction provides a significant injection of fresh capital to invest in the Company’s manufacturing capabilities and to drive improved operational performance at the Company’s three paper mills going forward.

Underlying EBITDA from continuing operations (Group excluding the Russian operations) for the third quarter was €450 million, up 55% compared to the prior year period (Q3 2021: €290 million). Higher average selling prices and overall volume growth more than offset significant cost pressures. Corrugated Packaging benefitted from higher average selling prices compared to the prior year period, leveraging our innovative product portfolio and strong customer proposition. Corrugated Solutions box volumes were lower in the quarter driven by generally softer demand when compared with the strong volume growth delivered in the prior year. Flexible Packaging performed well, with resilient demand during the period. Price increases across our range of kraft papers and packaging products were implemented during the quarter, where not fixed by annual or semi-annual contracts. Uncoated Fine Paper achieved higher average selling prices and grew pulp volumes in the quarter while uncoated fine paper volumes were lower. The non-cash forestry fair value gain was higher.

After a successful year of transformation in 2019, Zanders Paper posted a strong first quarter of 2020; then the coronavirus pandemic hit the global economy and led to a significant decline in sales of specialty papers for consumables. The various effects of this challenging situation could not be compensated completely by the German company despite the increased operating profitability and the fundamentally good set-up and positioning. Taking these circumstances into account, the Zanders Paper management has decided to carry out the continuation of the long-term restructuring of the company within the framework of insolvency proceedings and today filed an application to this effect with the competent district court in Cologne. This is done to protect the interests of all stakeholders including but not limited to the employees, creditors, customers and the City of Bergisch Gladbach. This gives Zanders Paper a breathing room to further rebuild and shape the company for the future. During the opening insolvency proceedings, which are expected to last two to three months, business operations will be continued by the insolvency administrator.