Mark Sutton: Mike, I’ll take the first part because I’m the one who said we didn’t have any permanent closures on the horizon. I think what I said was we look at permanent closures around secular declines and we don’t believe we have that. I think what’s changed is the depth and duration of this downturn. It’s not like anything we’ve seen since we built the industrial packaging business starting in the mid-2000s. And we also, and Jay mentioned this. We also have a long-term plan for that business and the kinds of containerboard we need to make for the future, in some cases, is different than the containerboard we make today. We invested in high-quality whitetop at our Riverdale Mill. That’s a future-looking product that makes a bleached pulp container board, not using recycled.
So high quality, we’ve got basis weight and high performance, lightweight needs that our system can’t address today for the future. So I think part of what allowed us to make this decision is the depth of this downturn and the duration and the fact that we need, over time, to change our product offering that we make boxes out of. So we’re taking this opportunity to do a reset and then we have to get the timing of any future investment right. But that’s what’s changed. We still believe in the long-term fundamentals, as Jay said, about growth. Two quarters ago, I would not have thought we were still in this type of demand environment taking this type of economic downtime.
Mike Roxland: Got it. And then, Mark, I appreciate the color. Just on my second part of that question, in terms of additional opportunities you may have or similar opportunities in the portfolio, similar Orange that you can rationalize, where does that stand?
Jay Royalty: Hey, Mike. This is Jay. We’ve made this announcement. We came to it through a very thorough and extensive evaluation of both the commercial side as well as our fleet and capabilities. We’re very comfortable with the decision that we’ve made and how it sets us up for the future. We still have room to grow and we’re in this business to win and to grow, and the system that we will have moved forward will enable us to do that.
Mike Roxland: Got it. Okay. And just one quick follow-up. Mark, can you help us understand the company’s approach just going forward with respect to cost takeout and driving efficiencies? Obviously, kudos to you and the entire team for doing a terrific job with building a better IP initiative. But how do you ensure that you and the team were making laser focused on cost removal and improving efficiency, particularly as the cycle starts to inflect and demand gets to more notably improved?
Mark Sutton: That’s a great question, Mike. As part of the cost takeout is something that no one’s really had to do before, meaning we had four year high inflation that’s gotten stuck into a lot of our inputs. So that becomes a, not just using less, but that becomes a real commercial challenge just like with our customers on the sales side. In our global sourcing world, no one wants to give back any of the pricing they were going to get through ‘21, ‘22 and early ‘23. So positioning ourselves as a large buyer of all of these inputs and to some extent having to play hardball and getting some of that cost out, we put everybody in the company on clear directions around what our EBITDA per ton needs to be to get the kind of margins that drive the kind of returns on invested capital.
