WHAT WILL YOU MAKE TODAY? Designers and printers have always turned to Mohawk when they wanted to make beautiful Print. From deep, rich, detailed tritone images on Superfine to brilliant, saturated color on Options. Or deeply etched engraved type on Strathmore. And Mohawk has always celebrated the passionate people across the industry who use print to make a difference. To market a business. For a cause. Or simply for the joy of making something beautiful. Today designers are challenged by technology that promises new ways of communicating while threatening to turn products and experiences into commodities. And while people still treasure beautifully designed artifacts and choose print to humanize their stories, they are working with compressed timelines and tight budgets. Mohawk is working to make it easier to choose print. By creating new digital pathways and by transforming our product line, we’re working to make it easier for the makers of print to access beautiful papers and advanced substrates. ABOUT MOHAWK Mohawk is a fourth-generation, family-owned company which recognizes the importance of listening to its customers. We have built a culture of innovation that is leading us into businesses and markets beyond paper manufacturing and creating new opportunities to grow, evolve, and lead. Taking a bold stance on the environment, Mohawk became the first U.S. paper mill to match 100% of its electricity with renewable wind power and the first U.S. premium paper mill to shift toward carbon neutral production. From our work with Yale University in the 1940s to perfect archival paper, to collaborating with leading digital players such as HP, Xerox, and Canon to forge new techniques in digital printing, Mohawk is always pushing the boundaries. Today we’re expanding into new areas such as online publishing, an online artists’ marketplace for photographers and designers, and an online community for people in the design, paper, and printing business. We see that in the future the demand for paper will become more tightly integrated with information technology and digital print. We’re using information technology to pursue operational excellence throughout the company. Significant investment in process analysis, ordering, and warehousing makes it easier for our customers to do business with us and ensures they get the best products in the shortest time. These are just some of the ways that Mohawk is building a sustainable business that serves the needs of all our constituents – employees, business partners, and customers. We know that people choose our products because of their quality, but they choose our company because we anticipate their needs and have answers to questions they may not have asked yet. HISTORY Mohawk was founded in 1931 in upstate New York, where the Hudson and Mohawk rivers come together. Over the past 80 years, the company has become known as a leader in the fine paper industry. Innovations include Mohawk Superfine, the benchmark archival paper, Inxwell for high-fidelity print on uncoated paper, Mohawk Options and Loop, benchmark papers for sustainable print, and i-Tone, the benchmark for digital print. In 2005, Mohawk expanded its premium paper operations with the acquisition of the Strathmore and Beckett brands from International Paper Company. This move was complemented by the subsequent acquisition of the SMART Papers brands in 2009 and the company’s decision to begin converting and distributing its own envelopes. In 2010 we acquired LabPrints, which opened up the digital photo business, followed in 2011 with the acquisition of Bravo Solutions, a leading supplier of specialty synthetic and paper substrates for digital printing. After a process of consolidation and redesign, Mohawk now offers a diverse palette of highly regarded paper brands and specialty substrates that are perfectly adapted for today’s printing applications. In 2009, Mohawk opened a warehouse in Amsterdam, reflecting the company’s growing international commitment, which includes sales offices in Asia, Europe, and Latin America. At the same time, Mohawk increased its presence in the online world with the launch of mohawkpaperstore.com, feltandwire.com, and feltandwireshop.com. This effort continued with the creation of pinholepress.com and pinholepro.com in 2010 and now our all-new mohawkconnects.com flagship site. In Germany during 2012, Mohawk made a 45% equity investment in a web-based start-up enterprise, MetaPaper, which offers the first online solution-oriented sales channel in the industry. Today, the fourth generation of the O’Connor family is guiding Mohawk, honoring its rich history while looking ahead to the future. With CEO Tom O’Connor, Jr. at the helm, the company has embraced the process of reinvention as it faces a radically changing market. While the company still manufactures premium papers on three paper machines in upstate New York, Mohawk is driving to be an essential supplier of non-paper substrates, software, and services for today’s digital printer, and to create new platforms that demonstrate the power of print and connect designers and printers to new markets. SOCIAL RESPONSIBILITY In everything we do at Mohawk, we’re committed to being part of the solution. Social responsibility and corporate stewardship are woven into the fabric of our culture and business practices. From ensuring the future of the resources we depend on to streamlining the way we work, from investing in employees and communities to creating value for our customers, we’re committed to making a positive impact wherever and whenever we can. MOHAWK AND THE ENVIRONMENT BEST PRACTICES Being part of an industry that depends heavily on energy, water, and other natural resources, Mohawk has embraced the concept of extended stewardship. We continually examine every aspect of our business with the objective of making our environmental footprint as small as possible. This means doing more with less and taking decisive actions to minimize or eliminate negative impacts. From simple activities like desk-side recycling to complex decisions about manufacturing techniques, energy choices and vendor selection, nothing is left unexamined. In short, we accept our responsibility to protect the natural resources and processes that sustain our business and our lives, and convey that commitment to all of our stakeholders. We believe that business and industry have the creative capital and financial incentive to find innovative solutions to the most pressing environmental issues of our day: climate change, depletion of natural resources, and dependence on fossil fuels. We accept our responsibility to create a sustainable business, and commit ourselves to a leadership role in reducing the environmental impact of our business practices. Mohawk does not own forest lands. Instead, we purchase a variety of postconsumer and virgin hardwood and softwood fiber pulps. As one of the largest consumers of market pulp in the U.S., Mohawk can drive compliance through its supply chain. We source FSC-certified fiber where possible and have notified our fiber suppliers that we will not accept fiber harvested from high conservation-value old growth forests. We require documentation demonstrating sound environmental practices and responsible forestry management, which is enforced by regular surveys. Using high amounts of postconsumer waste fiber is an important way to reduce pressure on forest lands and Mohawk is a leading producer of recycled paper. We were the first paper manufacturer in the U.S. to receive Green Seal certification. We used over 23,000 tons of postconsumer fiber in 2010, which essentially eliminated the harvest of 552,000 trees. EMPLOYEE INITIATIVES Our employees are active in the community – not just the local towns they live in but the larger community we’re all a part of. Each year they volunteer their time for local charitable events, and contribute time and money to local and national organizations such as United Way, Walk for a Cure, JDRF, cancer research, Relay for Life, and the regional food bank. Mohawk supports employee initiatives and leadership by providing volunteer time and matching grants. CORPORATE INITIATIVES In addition to supporting our employees, Mohawk sponsors and takes an active leadership role in diverse organizations such as AIGA, Boston College Center for Corporate Citizenship, United States EPA Climate Leaders, and FSC North America Economic Council. We also support nonprofits such as Design Ignites Change and charity: water. In programs such as these we have one simple goal: to be a positive catalyst for change. Every Mohawk grade carries the “Mohawk windpower” designation which means 100% of the electricity used in Mohawk’s operations is matched with RECs from Green-e certified windpower projects. Today Mohawk purchases enough RECs to match 100% of the electricity we purchase from renewable energy market leaders. In 2013, Mohawk signed the Renewable Energy Markets Association 5-year pledge to help increase renewable energy generation in the U.S. by voluntarily purchasing green power. Mohawk offers a number of products that are made carbon neutral within our production processes. After purchasing RECs to match 100% of the electricity used in our operations, the thermal energy used to manufacture these papers is offset with Verified Emissions Reduction credits (VERs) that fund renewable, emission-free energy projects. Through this process, Mohawk is seeking to manufacture these papers with a net zero climate impact. In addition to supporting renewable energy, Mohawk commits significant resources to minimize harmful emissions from our mills. State-of-the-art steam plants have been installed to greatly reduce the amount of air pollutants, and air emissions have been capped at a level that will remain set regardless of production increases. We also conserve energy throughout our organization and participate in state-sponsored energy research and conservation programs. The results of these savings have been dramatic reductions in greenhouse gas emissions that have earned Mohawk a reputation for environmental leadership. BUSINESS AND MARKETS Like all successful companies that grow and evolve, Mohawk is diversifying into adjacent markets where the investment aligns with our mission. Today Mohawk is a global business that serves a broad market, from individual consumers to the Fortune 500, on every continent, across a range of services that include manufacturing, publishing, communication, and design. PAPER AND SUBSTRATES Mohawk makes high-performance papers and envelopes for the professional design and print communities. Products are developed to support the full range of printing platforms – from letterpress to offset to toner and ink jet. In 2011 we began selling non-paper digital substrates and pre-converted dimensional products for digital presses. PHOTO PUBLISHING In 2010 Mohawk launched an online photo boutique, Pinhole Press, offering beautifully designed and personalized photo products that are easy to create and fun to give. Pinhole Press gained media recognition as a consumer “lifestyle brand” from industry experts at Martha Stewart Living, Real Simple, and the New York Times and was sold in 2012 to Livebooks. In addition, Mohawk’s premium digital papers are the first choice of leading photo publishing brands, such as Blurb, Minted, and Moo. MARKETPLACE Featured in the Wall Street Journal, Felt and Wire is an online magazine and marketplace for designers and print enthusiasts. It offers inspiration, networking, and a place for individuals interested in paper and design. MANUFACTURING Mohawk operates three paper machines in Cohoes and Waterford, NY; two worldclass specialty converting centers in New York and Ashtabula, Ohio; and warehouses in New York, Ohio, California, Washington, and the Netherlands. SPECIALTY CONVERTING SERVICES We offer complete finishing and custom converting services including exceptional turn around time. Our specialty converting centers feature humidity and temperature controls, integrated process controls, and an experienced staff of paper manufacturers. Services include folio, cut-size, and roll converting as well as packaging, laminating, embossing, quality assurance, and logistics support. ENVELOPE CONVERTING In 2010 Mohawk launched its world class converting facility in Saybrook, Ohio, with a converting capacity of 2.5 million envelopes per day. Between Mohawk’s in-house capabilities and our converting partners, we can provide almost any envelope configuration, including flexo printing, preprinted litho conversion, windows, pressure sensitive, foil lining, special enclosures, and special packaging. INTERNATIONAL Mohawk’s export sales are growing rapidly and represent about 12% of total premium paper sales. We have a welldeveloped supply chain network to support the global paper needs of multinational corporations. In addition, our commitment to people and logistics has made us a viable partner for printers and designers around the world who are producing print for local markets. We distribute to 60 countries outside North America with sales offices in Asia, Europe, and Latin America. With a dedicated warehouse in the Netherlands, merchant inventory in every country, and a local sales force, we support the entire European Union. OPERATIONAL EXCELLENCE “Making it easy to do business with us” is an ever-present goal at Mohawk. That means our services and systems must be optimized to perform as efficiently as possible. To achieve that goal, we’ve made substantial investments in technology, from improving process analysis and warehousing to expedite the fulfillment process to building a new website that makes it easier for customers to order, find information, and engage with us. It’s designed to ensure we’re serving our customers on their terms and exceeding their expectations. Operational excellence is one reason Mohawk has been named a winner of the Annual Progressive Manufacturing 100 Awards for the fourth year in a row. “Mohawk has demonstrated an ability to rethink their business model and apply advanced technologies in innovative ways that manufacturers everywhere would be well served to emulate,” said David R. Brousell, editor-in-chief of Manufacturing Enterprise Communications. But this achievement goes beyond our manufacturing processes. Operational excellence is a core value at the company that informs everything we do. Operational excellence is behind our decision to purchase 116 million kWh of wind RECs (renewable energy certificates), more than enough green power to meet the company’s annual electricity use and placing Mohawk on the US Environmental Protection Agency’s Top 50 Green Power Partners. It’s behind our decision to join the SmartWay Transport Partnership, another step to lessen Mohawk’s impact on the environment. Perhaps the most important impact of operational excellence is the safety of our employees. Through August 2011, our Cohoes, NY and Ashtabula, Ohio plants have logged 7 million hours over 7 years without lost time due to an accident. It’s an achievement we’re especially proud of. And it’s reflected in Mohawk being ranked fourth of 46 companies in safety by AF&PA in 2011, and COO Kevin Richard receiving an Executive Eagle Award from Pulp & Paper Safety Association in 2008. Our focus on operational excellence, combined with an entrepreneurial, hard-working culture, leadership in information technology, and a strong creative drive have also enabled us to achieve significant growth over our history and expand into new markets. It’s about doing the best job we can at running our company, so that our customers – both new and old – want to do business with us. BOARD OF DIRECTORS The Mohawk Board of Directors includes business leaders with executive experience at other publicly owned corporations and privately held firms. — Thomas D. O’Connor, Jr. Walter A. Duignan Jack F. Haren Kevin P. Richard Arthur J. Douville Charles H. Greiner, Jr. Frances Hardart Anthony F. Kahn John J. McNally Andy Patrick James E. Rogers Charles W. Schmidt Annabel Strife Peter H. Vogel, Jr. George W. Wurtz, III MANAGEMENT Mohawk’s management team provides industry expertise, strategic direction, and financial discipline to ensure that the company is well-positioned to grow, innovate, and lead our industry. — — Thomas D. O’Connor, Jr., Chairman and Chief Executive Officer Gavin L. Gaynor, Vice President, Research and Development Jack F. Haren, President and Chief Financial Officer Kevin P. Richard, Executive Vice President, Operations and Chief Operating Officer Paul J. Biesiadecki, Executive Vice President, Sales and Marketing — George W. Milner, Senior Vice President, Energy, Environmental and Governmental Affairs — Printed on Mohawk Superfine Smooth Ultrawhite Digital with i-Tone 100 text/148gsm and 100 cover/270gsm. Printed on an HP Indigo 7600. Christopher M. Harrold, Vice President, Business Development, Digital Technologies Harold Cropsey, Corporate Controller John P. Macy, Vice President and Treasurer Michael J. Madura, Jr., Vice President, Digital Media F. Joseph O’Connor, Senior Vice President, International Sales Edward G. O’Connor, Vice President, Sales John B. O’Connor, Senior Vice President, Administration Bart M. Robinson, Vice President, Marketing Craig E. Slemp, Senior Vice President, Strategic Planning and Direct Sales Robert W. Scammell, Vice President, Manufacturing Paul J. Stamas, Vice President, Information Technology 465 Saratoga Street Cohoes, NY 12047 800 THE MILL 800 843 6455 March 2013 76-708640013
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