| PAPER INDUSTRY NEWS - JULY 2005 |
This page contains pulp and paper industry news for July 2005
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NEWS JULY 2005
Schweitzer-Mauduit Acquires Assets
to Make Tobacco Paper in Phillipines
Alpharetta, Georgia, USA, 01 July 2005/PRNewswire/ -- Schweitzer-Mauduit
International, Inc. (NYSE: SWM) today announced the completion of the
acquisition of the tobacco-related paper manufacturing assets of KCPI, a
Philippines company. The assets acquired include buildings, production equipment
and related utilities, and support assets. The total acquisition cost was USD
12.1 million, including a working capital adjustment, funded through existing
bank lines of credit. The acquisition is not expected to have a significant
impact on Schweitzer-Mauduit's 2005 financial results.
The tobacco-related paper manufacturing assets were acquired by PDM Philippines Industries, Inc., a wholly-owned indirect subsidiary of Schweitzer-Mauduit. The marketing and sales of the new operation will be coordinated with the efforts of Schweitzer-Mauduit's French operations in the Southeast Asian market.
The production equipment acquired includes two paper machines, with annual production capacity of approximately 8500 metric tons, and related converting equipment. Product produced at the mill includes cigarette paper, conventional plug wrap, and both base and printed tipping paper. The assets were acquired from KCPI, which had manufactured tobacco-related paper products for the Philippines cigarette industry since 1967 and had an estimated 60% market share of the Philippines cigarette paper market.
Wayne H. Deitrich, chairman of the board and chief executive officer of Schweitzer-Mauduit commented that, "The acquisition of the tobacco-related paper manufacturing assets in the Philippines is consistent with our long-term strategy for expanded operations in Asia. It follows the acquisition of P.T. PDM Indonesia, a specialty paper manufacturer that was acquired in February 2004. The acquisition in the Philippines will strengthen Schweitzer-Mauduit's manufacturing presence in Asia and will improve our ability to address the needs of our customers while increasing our production capabilities in lower cost production areas. We plan to upgrade the capacity and quality of our manufacturing capabilities in the Philippines to better support the demand for tobacco-related papers in the region."
Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry. It also manufactures specialty papers for use in alkaline batteries, vacuum cleaner bags, overlay products, business forms, and printing and packaging applications. Schweitzer-Mauduit and its subsidiaries conduct business in more than 90 countries and employ 3800 people worldwide, with operations in the United States, France, Brazil, Indonesia, the Philippines, and Canada. For further information, visit the company's Web site at www.schweitzer-mauduit.com.
Schweitzer-Mauduit Announces China
Joint Venture
Alpharetta, Georgia, USA, 22 July 2005/PRNewswire/ -- Schweitzer-Mauduit
International, Inc. (NYSE: SWM) today announced execution of an agreement to
form a joint venture to produce tobacco-related papers in China. The joint
venture would produce cigarette paper and porous plug wrap in partnership with
the China National Tobacco Corporation (CNTC), which is the principal operating
company under China's State Tobacco Monopoly Administration (STMA). CNTC and a
wholly-owned subsidiary of Schweitzer-Mauduit would each own 50% of the joint
venture. The joint venture is subject to obtaining project financing and various
governmental approvals.
The joint venture would build a new state-of-the-art paper mill, with two paper machines having total annual production capacity of approximately 18,000 metric tons. The new mill would be located near Jiangmen, Guangdong province, with construction expected to take approximately two years following receipt of governmental approvals. Project spending, including capital expenditures and working capital requirements, is expected to total approximately USD 100 million. Papeteries de Mauduit (PDM), a French subsidiary of Schweitzer- Mauduit, would provide technical support and project management.
Schweitzer-Mauduit, through PDM, has been selling tobacco-related papers in China for approximately 20 years. The joint venture demonstrates Schweitzer-Mauduit's increased commitment to service the Chinese cigarette market, which represents roughly 30% of the world's cigarette consumption. The new production facility would focus on high quality cigarette paper and porous plug wrap, which would support STMA's move to lower tar delivery levels in cigarettes for the Chinese market.
Wayne H. Deitrich, chairman of the board and chief executive officer of Schweitzer-Mauduit commented that, "We are very pleased and honored to embark upon this exciting opportunity with CNTC and STMA. The new mill is expected to quickly establish its position as a premier supplier of papers to the Chinese tobacco industry. The joint venture is also consistent with Schweitzer-Mauduit's strategy to increase its manufacturing presence in Asia and follows the establishment of paper manufacturing operations by Schweitzer-Mauduit in Indonesia in February 2004 and in the Philippines in June 2005."
Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry. It also manufactures specialty papers for use in alkaline batteries, vacuum cleaner bags, overlay products, saturating base papers, business forms and printing and packaging applications. Schweitzer- Mauduit and its subsidiaries conduct business in more than 90 countries and employ 3800 people worldwide, with operations in the United States, France, Brazil, Indonesia, the Philippines, and Canada. For further information, please visit the Company's Web site at www.schweitzer-mauduit.com.
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