Question-and-Answer Session
Operator
(Operator Instructions)
Our first question comes from [Hamza Mazari] with Credit Suisse. Please go ahead.
Hamza Mazari - Credit Suisse
Yes. Good morning. Can you hear me okay?
George Glatfelter
We can.
Hamza Mazari - Credit Suisse
Great. Just a couple of questions. Can you talk about the competitive situation in your uncoated free-sheet business? We know that a lot of the big players are trying to push more into specialties. How much of that are you seeing in your business?
George Glatfelter
I can comment on that. Over the years, we've adopted a strategy of specializing the Glatfelter business, both by virtue of the products that we produce and the manner in which we go to market. We've actually benefited from the consolidation that has transpired within the industry during that period, as larger, more commodity oriented producers find it more difficult and less lucrative to serve the high value niche markets that Glatfelter today operates in.
On the other side of the spectrum, has been the closure of a number of smaller specialty mills that has enabled our company to grow our specialized business principally in North America as a result of their demise. Getting to the question that you asked, we frankly at this point have seen little incursion from commodity producers into the markets in which we participate. We believe that there are barriers to entry to many or most of those markets that are reflective either in the complexity of the products we produce or the service requirements required to sell the products and keep them sold. But that is really the heart of the Glatfelter business model.
Hamza Mazari - Credit Suisse
Great. Just one or two more questions. In your book paper business, how is that business holding up, any secular changes there or any changes in the approach of your competitors, we saw Boise get into that business a few years ago. And any kind of color you can give us on how that business is doing?
George Glatfelter
Yes. The book business is basically served by Glatfelter and one or two other competitors today. The most notable change affecting the book business has been the acquisition of the Weyerhaeuser White Paper assets by Domtar that happened towards the end of last year. We've been able to grow that business over the year in 2007. We believe that we've got a very solid value proposition.
- To read the full transcript on Seeking Alpha, click here »
