Roger Spitz: Got it. And just to be clear, I was asking on High-Yield Pulp and I think you were answering that, but you said high purity.
De Lyle Bloomquist: I’m sorry. I meant high purity. Yes, high purity. I’m still new.
Roger Spitz: Okay. And I was asking High-Yield Pulp. How do you see High-Yield Pulp EBITDA in 2023 where you lower pricing?
De Lyle Bloomquist: And that’s what I was talking to you, High-Yield Pulp should be equivalent to what we saw in 2022 right around that $15 million, $16 million level.
Roger Spitz: Okay.
Marcus Moeltner: And Roger, as you’re following the market, high yield, think of, if you look at it year-over-year, right, given where we are in the pricing cycle, it will probably be the reverse of last year, where it’s a stronger first half and then everybody is seeing pricing is coming off over time for that product.
Roger Spitz: Got it. And then in the press release, you talked about the strength in acetate CS. Now is that — are you looking at filter tow there? Or you’re looking at the — whatever it is 20%, 25% of the specialty — I call it specialty acetate CS the non-filter tow demand that you were pointing to?
Marcus Moeltner: So Roger, just to reiterate your question, you’re saying, are we seeing strength in acetate in the tow and other applications, right? Plastics, you’re saying.
Roger Spitz: Right, which areas — which applications in acetate CS did the press release referred to when I talked about strength in 2023 in acetate?
De Lyle Bloomquist : Yes. Really, we’re seeing it both in tow and plastics. Tow’s being driven — we’re seeing significant growth in the heat not burn applications with — and products that are being sold outside the United States, which require 2x the amount of tow that is used in a typical cigarette. And that’s, I think, largely mitigated the decline in smoking in much of the developed world. I would say that tow applications or the use — demand in China has been pretty darn steady. So — and then on the plastic side, things continue to be very strong.
Roger Spitz: Great. And then last one, and I want to talk about the three to five-year target EBITDA margins going to 13% to 15%. You laid out on Slide, I guess, 13, a number of projects, and I presume that’s one or one component of that. Is that the main component of that increase in the EBITDA margin? Or are there other big picture things, whether it be pricing or volumes or cost savings that you’re also looking to get that EBITDA margin up to 13% to 15% in three to five years?
De Lyle Bloomquist : I want to use all the levers, Roger. So just be the strategic projects, which, at the end of the day, is an important component of it. We see that there’s significant value to be had in terms of becoming much more efficient and productive. And some of that’s going to take some capital. But we also see that there’s an opportunity to continue to capture additional value for our products. And I call it fair value, get the pricing up to a point that would reward us to reinvest into new capacity as demand grows. And finally, the issues around just better efficiencies on logistics and maybe even some cost deflation sometime in the near future.
Roger Spitz: Got it. Thank you very much.
Operator: Thank you. At this time, we’ve reached the end of our question-and-answer session. I’ll turn the floor back to De Lyle Bloomquist for closing remarks.
De Lyle Bloomquist: Well, again, thank you all for your time today. I’m very proud of the accomplishments that we have made and very confident that we will continue to execute on our initiatives to improve the profitability of the business, reduce our debt and improve our leverage. And I look forward to our next update in the next few — in the next couple of months. So if you have any questions or anything that we can help you out with, please feel free to reach out to us.
