Schweitzer-Mauduit International, Inc. manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. The company and its subsidiaries conduct business in over 90 countries and employs over 3100 people worldwide, with operations in the United States, France, Brazil, the Philippines, Indonesia, Canada, and a joint venture in China.
Tobacco industry products, which comprise approximately 95% of the company's net sales, include cigarette, plug wrap and tipping papers used to wrap various parts of a cigarette, reconstituted tobacco leaf for use as filler in cigarettes and cigars and reconstituted tobacco wrapper and binder for cigars. These products are sold directly to the major tobacco companies or their designated converters. Non-tobacco industry products are a diverse mix of products, certain of which represent commodity paper grades produced to maximize machine operations.
Schweitzer-Mauduit is the leading producer of tobacco-related papers in the world and is the premier manufacturer of high porosity papers which are used in manufacturing ventilated cigarettes as well as banded paper used in producing lower ignition propensity cigarettes, or LIP. The company is also the leading independent producer of reconstituted tobacco leaf used in producing blended cigarettes. Consumption of cigarettes that are ventilated or blended is growing worldwide due to a desire to reduce tar and nicotine delivery while consumption of LIP cigarettes is expected to continue to increase as the US market implements essentially 100% lower ignition propensity regulation by January 2010.
In 2009, the company announced restructuring activities in France which are expected to improve its competitiveness and profitability. In 2008, the company acquired the 28 percent minority share of LTR Industries, S.A. for 35 million euro.
