Contents

1Presentation of the groupPresentation of SequanaProduction and converting facilitiesDivision Number of sites Europe Americas AsiaGraphic 7Coated US 1Creative Papers 6Security 8FranceBessé-sur-Braye, Château-Thierry,Le Bourray, Palalda, WizernesCzech RepublicBrnoFranceCharavines, Neuilly-en-ThelleUnited KingdomChartham, StoneywoodSpainGelidaFranceCrèvecœur, RivesThe NetherlandsApeldoornItalyArzanoUnited KingdomClacton, IvybridgeUnited StatesCharlestonUnited StatesCombined LocksBrazilSaltoUnited StatesCharlotteChinaQuzhouDiversified sales channels and customersArjowiggins sells primarily to the B2B (Business-to-Business)market and its customer base is fairly concentrated in each ofits segments. Arjowiggins’ customers are paper distributors,converters, printers, corporate customers, government authoritiesand central banks. Arjowiggins sells paper and solutions inFrance, the UK, and the rest of Europe, Asia and North Americathrough three different channels:■■sales to distributors, mainly paper distributors and brokers,which then sell to end users;■■sales to converters and printers; and■■direct sales to end users such as large companies, governmentauthorities and central banks.Strict procurement requirementsThe raw materials used to make Arjowiggins’ products are mostly:■■pulp, waste paper and cotton;■■minerals and chemical products;■■energy and water.The cost of supplies depends on the price of these raw materials.Due to pressure from competitors, the price of Arjowiggins’products is not always correlated with movements in the cost ofraw materials.Pulp, waste paper and cottonPulp is the main raw material required to produce paper. Thereare two types of chemical pulp:■■long-fibre chemical pulp made of spruce or pine and used tomake highly resistant paper;■■short-fibre chemical pulp made of birch, beech or eucalyptus,used to improve the surface properties of the paper.Arjowiggins uses both short- and long-fibre chemical pulpdepending on the requirements of each type of paper. The companyhas long-standing relationships with different suppliers foreach grade of pulp, and the raw material represents the bulk ofits costs. It protects itself against a rise in pulp prices by enteringinto hedging contracts.Arjowiggins also produces recycled pulp using an industrial processin which printing ink is separated from waste paper fibres.This process combines mechanical methods and chemical processesto produce deinked pulp which is then used to manufacturepaper. Arjowiggins purchases waste paper from key strategicsuppliers and from some local collection initiatives.Arjowiggins Security uses cotton fibres to produce banknotepapers which have to meet the highest standards of wear resistanceand durability.32 | Sequana | 2012 Document de référence (English version)