Rayonier Advanced Materials Inc (RYAM) News & EventsRYAMRayonier Advanced Materials Inc

Rayonier Advanced Materials Begins Construction on 70 MW Biomass Cogeneration Project

Rayonier Advanced Materials announced that construction is underway on Altamaha Green Energy, a 70 MW biomass cogeneration project adjacent to the Company's Jesup, Georgia, manufacturing facility. The project is being developed in partnership with Albioma and the Beasley Group and will generate renewable electricity under a long-term power purchase agreement with Georgia Power while providing process steam to RYAM's Jesup facility. Commercial operations are expected to begin in 2029. Through its land and prior investments in the project, RYAM expects to retain an initial 14% equity interest in AGE. Under pre-established terms, RYAM also has the option to purchase an additional equity interest that would increase its total ownership to as much as 16%. Based on current projections, the Company expects to receive approximately $8M to $10M in annual distributions from AGE once the facility is operational. This capital-light structure allows the Company to participate in the project's potential long-term value while preserving capital for its core business. AGE is also expected to provide significant strategic benefits to RYAM's Jesup operations by modernizing and strengthening critical utility infrastructure while avoiding approximately $30M in future capital expenditures that otherwise would have been required to maintain and replace legacy utility assets. The project's use of sustainably sourced regional forestry residues to generate renewable electricity and process steam is also expected to advance RYAM's sustainability objectives and further support the Company's role in promoting a more sustainable world. Together, these benefits are expected to enhance the reliability, environmental performance and long-term competitiveness of Jesup, a core manufacturing site within RYAM's High Purity Cellulose platform.

Company Board Actively Evaluates Strategic Alternatives

The company said, "The Board continues to actively evaluate a broad range of strategic alternatives with the assistance of Morgan Stanley. The review process is well underway, and the Board is actively advancing the process with urgency and discipline. The Board's appointment of a new CEO further sharpens the focus on both the business and the strategic review. No conclusions have been reached, and the appointment should not be viewed as signaling any particular outcome of the review. The Board remains committed to pursuing the path that it believes will maximize shareholder value."

Rayonier Advanced Materials Appoints Daniel Krawczyk as CEO

Rayonier Advanced Materials announced that the Board of Directors has appointed Daniel Krawczyk as CEO and President. He will also join the Company's Board of Directors. Krawczyk will be responsible for leading RYAM's operations and business activities while working closely with the Board and its external advisors as part of RYAM's exploration of strategic alternatives to maximize shareholder value. Krawczyk most recently served as President of Huber Engineered Materials. Prior to Krawczyk's appointment, the Board had formed an interim Office of the CEO, comprising current executives including Marcus Moeltner, CFO and SVP of Finance; Michael Osborne, VP of Manufacturing Operations; Christian Ribeyrolle, SVP of Biomaterials; and R. Colby Slaughter, SVP, General Counsel and Corporate Secretary. Members of the now disbanded Office of the CEO will continue in their prior roles and will work closely with Krawczyk to continue to execute RYAM's business priorities as part of the senior leadership team.