Sunday, January 22, 2006
By MIKE TOMPKINS Columbian forecaster

Through a process Georgia-Pacific calls "footprinting" we've identified what the mill does best and focused on those segments of the consumer products and fine paper businesses. This could be a year in which efforts pay off for realigning the Camas mill to optimize production.

G-P Camas' contribution to the company's commercial business is significant, as we are a leader in producing the extremely popular enMotion towel, as well as other high-demand commercial brands such as SofPull, Cormatic and Preference

In the retail consumer business we have brought in the high growth Angel Soft in addition to our Soft 'n Gentle brand and will continue to grow it in 2006. The big news in the communication papers business is that we lead the way in our customer transition to high-brightness paper. All products including our Spectrum brand now are significantly brighter and aesthetically more pleasing.

We look forward to continuing to operate as Georgia-Pacific Camas, a fully-integrated pulp and paper mill, producing pulp for Camas and other mills in the company's Northwest system, making commercial and retail towel and tissue, and fine copy and printing paper, under new ownership by Koch Industries, a privately held company headquartered in Wichita, Kan.

As we make the transition to new ownership, Camas employees will stay focused on manufacturing excellence, elements of safety, community and environmental stewardship, quality and operational excellence, and developing our team, which are all core values and competencies of our new owner.

In 2005, Camas management and the Association of Western Pulp &Paper Workers Local 5 signed a four-year labor contract agreement, and are working as a team to meet our future challenges.

After a rocky start, Camas employees dramatically improved the mill's safety record. Through great focus on safety by our joint union-management central safety committee and efforts by each employee, we earned corporate safety awards for our strong safety performance.

Capital investment

The $35 million investment in Camas operations begun in 2000 is complete. And by upgrading technology, the mill has enhanced environmental performance through reduced emissions to air and water, and improved operational performance. The investment also has enabled us to reduce energy consumption and water use. We were recognized for the team's accomplishments in 2005 by Georgia-Pacific Chairman Pete Correll when we were awarded the Chairman's Award for Environmental Excellence.

We will remain dedicated to environmental and community outreach in 2006. Mill employees, under the leadership of our union environmental representative Wilson Cady, are becoming ever more involved in community environmental projects such as wildlife habitat enhancement, riparian area restoration, and Washington state's Adopt-a-Highway program. The union environmental program has been recognized through awards for its excellence by many businesses and environmental organizations, such as the Association of Washington Business, and the Lower Columbia River Estuary Partnership.

We also will continue our partnerships with others in the community for special events and sponsorships. G-P Camas' sponsorship for developing the new William Clark Park assures enjoyment and education for park visitors in 2006, 2026 and beyond.

Camas is an essential part of the Georgia-Pacific consumer products business and the Camas community, and we will continue to position the mill for long-term growth.

Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of tissue, packaging, paper, building products, pulp and related chemicals with annual sales of more than $20 billion. The company employs approximately 55,000 people.

The outlook for 2006

* Georgia-Pacific's Camas mill will continue to be a fully-integrated pulp and paper operation. This is expected to be the year the mill shows greater profitability based on recent capital investments and product market alignments.

* As Georgia-Pacific makes the transition to new ownership by Koch Industries, the Camas mill is expected to continue operations unchanged.

* The mill leads the market in producing higher-brightness communications papers.

PAPER: What might happen 20 years from now

Both external and internal factors will be key to the sustainability of manufacturing operations at the Camas mill, which employs 950 workers.

Here's a list of key internal drivers:

* Hold the line on energy costs through reduction and alternative fuel uses, including pet coke for steam generation and additional electrical sourcing from regional nuclear power generation.

* Reduction in air and water emissions, which carry a waste energy component with them.

* Manufacturing automation at much higher levels to offset high-cost payrolls. Increased work force skills in math, science, reliability and lean manufacturing will be emphasized to keep pace with technological advancements and customer demands.

* Lean manufacturing practices will demand higher level continued focus to strive for waste-free manufacturing.

Key external drivers will affect product mix:

* Continued offshore pressure on the U.S. fiber basket, including wood and waste paper.

* Continued domestic growth of low-fiber density towel and tissue products to meet demands of North American population growth.

* Continued domestic decline of high-fiber density communication paper products due to ever-growing electronic communication technology.