| PAPER INDUSTRY NEWS - JUNE 2009 |
This page contains pulp and paper industry news for June 2009
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NEWS JUNE 2009
Temiscaming, Quebec, June 2, 2009 – Tembec
today announced a temporary curtailment of operations at its Pine Falls,
Manitoba newsprint facility. The shutdown will be for a minimum of three weeks,
commencing June 16th, and is directly related to the ongoing challenging market
conditions for newsprint. It will affect approximately 300 employees at all
levels of the organization from the newsprint and forestry operations.
“Market and operating conditions remain challenging for North American newsprint
producers, driven by the significant decline in demand for newsprint and the
related need to manage inventory levels and working capital. As a result, this
curtailment is unavoidable,” said Chris Black, Executive Vice President and
President, Paper Group.
The curtailment is expected to result in lost production of 11,000 tonnes of
newsprint. Tembec indicated it will continue to monitor market conditions
closely and will adjust operating rates accordingly.
Employees were advised of the Company’s decision at meetings held earlier today.
Tembec is a large, diversified and integrated forest products company which
stands as the global leader in sustainable forest management practices. With
operations principally located in North America and in France, the Company
employs approximately 7,000 people. Tembec’s common shares are listed on the
Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT.
Additional information on Tembec is available on its website at www.tembec.com.
June 9, 2009 - Sodra said that it resumed production at its Tofte mill on June 2 after a two-month shutdown due to weak market conditions.
The mill has an annual capacity to produce 400,000 tons of short and long fiber pulp.
Production at the mill is expected to be back up to full capacity shortly, Sodra said.
About 250 workers who were temporarily laid off when the mill was idled are back at work, Sodra added.
Domtar announces reopening of Woodland pulp millMONTREAL, June 10, 2009 /PRNewswire-FirstCall via COMTEX/ -- Domtar Corporation (NYSE/TSX: UFS) announced today that it will be reopening its Woodland pulp mill in Baileyville, Maine. Approximately 300 employees will be called back for the restart of pulp production, which is targeted to resume the week of June 22, 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.
Domtar announced the closure of the Woodland pulp mill for an undetermined period on March 5, 2009, due to weak global pulp demand, historically high inventory levels and depressed prices. Domtar pulp inventory levels have since been substantially reduced. The timely benefits from the refundable tax credits for the production and use of alternative bio fuel mixtures, and other important conditions, such as stronger global demand, improving prices and favorable currency exchange rates have made the reopening possible. Domtar will closely monitor the mill's profitability, which is critical to maintaining operations.
Bahia Pulp Restarts Specialty Pulp Line
June 12, 2009 - Bahia Pulp on June 4 restarted its dissolving pulp line 1, which was shutdown in November 2008 due to weak demand in the market.
Pulp line 1 has an annual capacity of 115,000 tons. The restart brings the mill's capacity back up to about 500,000 tons per year.
"The market is warming up again and this is the reason for the restart up of the line 1 activities,” said Sergio Kilpp, Bahia Pulp’s director of sales and marketing.
"Asia, our main market, is buying again and has made us restart our activities completely," Kilpp added.
(All financial references are in U.S. dollars unless otherwise noted)
Toronto, ON (June 18, 2009) – Fraser Papers Inc. (“Fraser Papers” or the “Company”) (TSX:FPS) announced today that it, together with its subsidiaries, has initiated a court-supervised restructuring under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) in the Ontario Superior Court of Justice and that they will be seeking similar relief later today pursuant to Chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Pursuant to CCAA Proceeding commenced today, PricewaterhouseCoopers Inc. was appointed by the Court as Monitor to assist the Company through its restructuring process. The Company remains in control of its assets and business operations.
“The filing will provide Fraser Papers with a defined process and the necessary time to restructure its affairs in order to emerge with a sustainable and profitable specialty paper business,” said Peter Gordon, the Company’s Chief Executive Officer.
Fraser Papers has been working with employees, suppliers, customers and governments over many months in an effort to reduce costs, improve fibre access, and optimize operations in a challenging environment. The Company has determined that continued operating losses, weak demand and selling prices for pulp and lumber, impending debt repayments and significant pension funding obligations require Fraser Papers to seek this protection from creditors while it continues to pursue alternatives to restructure its operations.
“Unlike many restructurings, the court filing was not the result of excessive leverage,” said Mr. Gordon. “Our paper business remains profitable, particularly the specialty packaging and printing segments where there are opportunities to grow in a number of key segments. However, weak pulp and lumber markets have drained our limited resources, more than offsetting the progress in our paper business.”
In support of this process, CIT Business Credit Canada has agreed to continue to revolve the existing working capital facility and, in addition, Brookfield Asset Management has agreed to provide debtor in possession financing. Together these two facilities will provide up to $20 million to fund operations during the restructuring process.
The Company’s operating plans are unaffected by today’s announcement. The two paper mills in Madawaska, Maine and Gorham, New Hampshire will continue to operate without disruption, manufacturing specialty paper products for existing customers. The Company will proceed with developing a framework for a restructuring plan with the goal of making Fraser Papers more competitive and profitable.
Global Salaried Workforce Reduction of Approximately 1,600 Positions Expected to Yield Annualized Savings of About $150 Million
Charges Will Total $140 to $150 Million, or Approximately 25 Cents Per Share, Mostly Affecting Second Quarter Results; Related Savings of About 10 Cents Per Share Expected During the 2nd Half of 2009
DALLAS, June 25, 2009 - Kimberly-Clark Corporation (NYSE: KMB) today announced actions designed to improve its competitive position and become a stronger, faster, and leaner organization. The company said it will reduce its worldwide salaried workforce by approximately 1,600 positions by the end of the year.
In light of the challenging business environment, the company previously indicated it was preparing plans to streamline its organization and that it would also accelerate its cost reduction programs, particularly for sourcing and supply chain activities.
It is expected that the organizational changes announced today will generate annualized pre-tax savings of about $150 million, further strengthening Kimberly-Clark's profitability and cash flow. Anticipated savings of approximately $60 million, or 10 cents per share, will benefit the company's results during the second half of 2009. Severance and related costs to streamline the organization will be recorded during the second, third and fourth quarters of the year, totaling $140 million to $150 million pre-tax, equivalent to about 25 cents per share. Approximately $110 million of the costs will be recorded in the second quarter.
"These actions, while difficult, are necessary to help us emerge from this demanding economic environment as a stronger company," said Tom Falk, Kimberly-Clark Chairman and CEO. "Through these changes we will be a more effective organization, with faster decision-making helping to drive efficiency throughout all aspects of our operations. In addition, by increasing our cash generation, we will be in a better position to take advantage of future growth and innovation opportunities."
Reductions in the workforce will come from all regions and business segments of Kimberly-Clark's global operations and will primarily affect salaried and non-production jobs. The company does not plan to close any of its manufacturing facilities as part of these actions.
The effects of today's announcement on 2009 results were not included in the company's previous earnings guidance. Guidance will be updated in Kimberly-Clark's second quarter earnings announcement on July 23.
Albany International Announces Discontinuation of Manufacturing Capacity in Australia
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