Paper Industry March 2003 News

PAPER INDUSTRY NEWS - MARCH 2003

This page contains pulp and paper industry news for March 2003

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NEWS MARCH 2003

Wausau-Mosinee Paper Acquires Assets of Laminated Papers

March 5, 2003 - Wausau-Mosinee Paper Corp. said that it has acquired the production assets and customer base of Laminated Papers, Inc., a producer of high-quality packaging materials for the paper industry. The assets will become part of Mosinee Converted Products, a division of the company's Printing & Writing Group.

Terms of the transaction were not disclosed.

Based in Holyoke, Mass., Laminated Papers has produced innovative roll-wrap products since 1953 and pioneered the blending of wax laminates to replace asphalt-laminated papers, the previous industry standard.

Wausau-Mosinee said Laminated Papers' production will be transitioned to Mosinee Converted Products' facilities in Wisconsin and Mississippi, allowing for increased equipment utilization and improved cost efficiencies.

"Laminated Papers is a welcome addition to the Wausau-Mosinee family. This acquisition will further solidify our leadership in the laminated roll-wrap market and improve our cost position when volume is relocated to our existing facilities," said Thomas J. Howatt, Wausau-Mosinee's president and chief executive officer. "Over the past two years, we've improved our earnings and balance sheet significantly; as results further improve, we will look to grow the company through bolt-on acquisitions like Laminated Papers."

Wausau-Mosinee Paper Corp. produces fine printing and writing papers, technical specialty papers, and "away-from-home" towel and tissue products.

Laminated Papers, Inc. is a producer of high- quality packaging materials to the paper industry. Primary customers include publication papers, fine papers and newsprint producers.

SOURCE: Wausau-Mosinee Paper Corp.

Kimberly-Clark Acquires Polish Tissue Business From International Paper

March 6, 2003 - Kimberly-Clark Europe said that it has purchased International Paper's Klucze tissue business in Poland.

Details of the transaction were not disclosed.

K-C said the acquisition is consistent with the company's strategy of growing its global consumer tissue business and provides the company with a strong platform to expand its market leadership in Central & Eastern Europe.

Kimberly Clark operates under the brand names ANDREX�, SCOTTEX�, PAGE�, KLEENEX� and HAKLE� in Western Europe.

Commenting on the acquisition, Roberto Berardi, President of Kimberly- Clark's Consumer Tissue business in Europe, said: "We see the purchase of Klucze as a natural extension of our tissue leadership in Poland and surrounding markets, which are some of the world's fastest-growing tissue economies. Klucze's strong local management, brand penetration and tissue manufacturing capability, combined with Kimberly-Clark's proprietary technologies and advanced customer management skills, will drive exciting opportunities for long-term development in this market."

The acquisition will allow Kimberly-Clark to offer customers and consumers in Poland a full portfolio of consumer tissue products, currently comprising a 29 percent share of the estimated US$165 million Polish consumer tissue market, including Klucze's market-leading VELVET� brand. The acquisition will, in addition, strengthen Kimberly-Clark's HUGGIES� diaper business, helping the company to meet the broader personal care needs of Polish consumers.

Kimberly-Clark Europe is part of Kimberly-Clark Corporation (NYSE: KMB - News), a $13.6 billion marketer of some of the world's most trusted and recognized brands employing nearly 64,000 people worldwide. Its tissue, personal care and health care products are manufactured in 42 countries and sold in more than 150. Kimberly-Clark Europe is home to some of the most trusted and recognized household brands including ANDREX�, SCOTTEX�, HAKLE�, and PAGE� bathroom tissue, KLEENEX� facial tissue, HUGGIES� infant and child care products, KOTEX� feminine care products and POISE� adult care products.

The Klucze business manufactures bathroom and facial tissue under its VELVET� brand and feminine care products under the SUBTELLE� brand. Klucze has a consumer tissue market share of approximately 29 per cent and within this the VELVET� brand is one of the most recognized brands in Poland with a 70 percent consumer awareness rating (Euromonitor). Klucze currently has around 500 employees.

Cascades and Dalum Papir Acquire De-Inked Pulp Mill in France

March 7, 2003 - Cascades Inc. said that "Le tribunal du Commerce de Soissons" (France) yesterday accepted the offer of Dalum Papir A/S to which Cascades had parted itself, to purchase the assets of La Soci�t� Greenfield S.A.

Greenfield, a European producer of de-inked pulp located in Ch�teau-Thierry, near Paris, France, was operating under French bankruptcy proceedings since December 4, 2002.

The deal includes the purchase of the plant and some other assets under the form of a joint venture with Dalum, a leading European producer of recycled fine paper.

Terms of the transaction were not disclosed, however the investments required to make the acquisition were not material.

According to Cascades, Greenfield, established in 1997, is the first plant in Europe producing market pulp from recovered paper. It has a capacity of approximately 150,000 metric tons of air-dried de-inked pulp, but the full potential of the mill was never achieved given technical and financial difficulties.

"The Greenfield purchase represents our first de-inked pulp venture in Europe, a market where demand traditionally outweighs supply, said Mario Plourde, President of the Speciality Products Group. "This mill is strategically located in the Paris area and will give us access to premium fiber."

"This acquisition will also allow us to avoid certain capital investments we had planned for our de-inking unit at our Blendecques (Boxboard) mill, while allowing further integration with Cascades' unit in La Rochette and with the unit of our joint venture company Norampac Inc. in Avot-Vall�e, France," Plourde said.

"The equipment [is] in good shape and the required capital expenditures will be minimal given the quality of the assets, whose initial cost amounted 150 million euros," Plourde added.

SOURCE: Cascades Inc