Operator: And we have a follow-up from George Staphos with Bank of America. Please go ahead.
George Staphos : Hi, thanks for taking my question. I know it’s a little difficult to talk about this sort of thing live, Mike. But some of the other producers in North America have either scaled back and/or we’ve heard from our trade contacts, had some operating issues in the first quarter where they had outages perhaps not planned. Has that been a material driver of your business? And if so, should we be — to the extent possible, maybe trying to build in some cushion should that business leave that entered earlier in the year, leave you later in the year and into 2025. How would you have us think about that conceptually? And then a second question I had and then I’ll turn it over. I know you’re not guiding on third quarter yet. We do know what the maintenance guide is. Are there any other significant bridge items that you would have us at least conceptually think about as we think about 2Q to 3Q? Thank you.
Jean-Michel Ribiéras: George, if you don’t mind, I’ll ask you to repeat your first question because I think I didn’t get the first question. I can answer the second question. On a high level. So the main thing is the [indiscernible] as you said. The other thing as we always say is the second half is a much better seasonality in Latin America than the first half. So if I had to guide on two things, which may be is important are [boost too] (ph). And then, of course, the continuation of the improvement that we’ve seen in the first half, first quarter of this year. So the momentum, Lat Am and outage is probably a good way to look at it. And I’m sure –.
George Staphos : Momentum, Lat Am and what was the other thing you said?
Jean-Michel Ribiéras: Momentum in general in the [few] (ph) region. And the outage — and the outages that I mentioned.
George Staphos : No. My first point, we had heard some of the other freesheet producers had some operating issues in the first portion of the year. I think there was one that was in the press with an, I think, an unplanned outage. Did any of that business accrue to you? And if it did, does it go away once those producers are back running more normally, I guess, is the substance of the question.
Jean-Michel Ribiéras: Yes, we heard about it too. And we just saw the first estimate of operating rate for the month of April and statistics is saying it was 96%, which is very high. But I don’t think, we can — we can put a direct relation between our order book and what happens to our competitors. I think those two are independent.
George Staphos : Okay. Thank you.
Operator: And we go back to a follow-up with Matthew McKellar with RBC Capital Markets. Please go ahead.
Matthew McKellar: Hi, thanks. I think you talked about upward pressure on the cost of your wood fiber in Sweden in 2023. And I think you also mentioned expecting continued headwinds on the cost of fiber in Latin America, at least in the near term here. Can you talk about what the latest trends are in each country and maybe talk about whether you expect any moderation in wood fiber cost as ’24 progresses?
John Sims: Yes, Matt, it’s — the situation in Sweden, the wood cost continues to be elevated. Remember, we said that the reason for that is higher demand for wood, for bioenergy and also the Russian situation and a lack of exports of wood. It has stabilized. But it stabilized at the higher levels. So we are not seeing increases in Sweden. But we’re not seeing — nor we are seeing decreases. So it’s pretty much stabilized there. And same thing in Brazil, Brazil where prices have certainly increased on the open market side. And that also is stabilized but it was at the higher rate.
Matthew McKellar: Thanks. That’s helpful. And if I could sneak one more in. Are you seeing new opportunities in Mexico that you could serve from either the US or Brazil with Mexico imposing import duties on uncoated freesheet from China and Indonesia?
Jean-Michel Ribiéras: So the Mexico side is a balance for us because we had some export from Brazil, which is going to be taxed and it is created opportunity from North America. So net-net, I think it is — when we looked at it – it is more opportunities than anything. But it is been a balance between the two. But yes, you are correct. That is probably an opportunity which we are seeing to export more from North America to Mexico.
Matthew McKellar: Okay, thanks for the color. I’ll turn it back.
Operator: We do have another follow-up from George Staphos. Please go ahead.
George Staphos : Hi, everyone. Just last one for me. Just number one, if possible could you give us a quick snapshot on capacities by region? Paper versus pulp? And if it is in the deck or in the coming Q, we’ll wait and-or look. But if you had that quickly, that would be great. And then what did you say the head count reduction is with Horizon for this year in total? I recognize a third is already done from what you said, but what was the number that you cited for the year? Thank you guys.
John Sims: George — I’ll answer the Horizon question first. 150 positions and that is the cost globally. On the capacity perspective, what we have it by region is for uncoated. So I will give these numbers to you. So for uncoated papers in Europe, it is $765,000 per market. Both in Europe, it’s $130,000. And Latin America it’s $1.1 million for uncoated freesheet and $165,000 for market pulp. And in North America, for our facilities it is $975,000 for uncoated freesheet and $115,000 for market pulp. But remember we have a supply agreement with international paper. So with the supply agreements for both Georgetown and Riverdale it’s $655,000 of uncoated freesheet. And that is in the appendix.
