Fuyang City to Shut 76 "Obsolete" Paper Machines

March 3, 2006 - Fuyang City, in China's Zhejiang Province, has plans to shut down 76 small paper machines that the city considers either obsolete or fail to meet environmental standards.

According to a report on China Paper Online, Fuyang City will spend RMB20 million to have the machines shut down by June of this year.

The machine closures will result in a paper capacity reduction of about 270,000 metric tons per year and will substantially reduce wastewater discharge, the report said.

SOURCE: China Paper Online

Fraser Papers Announces Closure of Berlin Pulp Mill; Exposure to Market Pulp Reduced

TORONTO, ONTARIO--(CCNMatthews - March 7, 2006) -

(All financial references are in US dollars unless otherwise noted)

Fraser Papers Inc. ("Fraser Papers") (TSX:FPS) announced today the permanent closure of its pulp mill located in Berlin, New Hampshire. The mill, which has an annual capacity of 230,000 tonnes of NBHK pulp, will continue production until May 6, after which time shutdown activities will commence. This closure will affect 250 employees.

"Rising costs of wood, energy and chemicals over the past three years have led to a significant deterioration in the financial results at our pulp mill in Berlin despite the efforts of our employees and the State of New Hampshire to improve the sustainability of the operations," said Dominic Gammiero, President and Chief Executive Officer of Fraser Papers. "We considered the short and long term market outlook for hardwood fibre costs, other rising input costs and capital requirements, and determined that it was appropriate to reduce our exposure to market pulp. We are planning to operate the adjacent Gorham paper mill on purchased fibre. The change in fibre supply options will better position the Gorham paper machines for specialty paper grades. We will also be evaluating the potential market-related shutdown of one of the five paper machines at the Gorham paper mill."

In 2005, over 55% or 130,000 tonnes of the total pulp produced at the Berlin pulp mill was surplus to the requirements of the Gorham paper mill and was sold to other paper mills, including Fraser Papers' mill located in Madawaska, Maine. This action will allow Fraser to reposition its market pulp business at the company's pulp mill located in Thurso, Quebec, which produces a variety of high quality maple and other NBHK specialty pulps.

Preliminary estimates indicate that the closure of the Berlin mill will result in a cash restructuring charge in the first quarter of $3 million, plus an additional pre-tax, non-cash charge related to fixed assets and working capital that will be dependent on the final determination of asset recoveries, particularly as they relate to the co-gen facility. The carrying value of the Berlin pulp mill and related assets was $48 million at December 31, 2005.

Fraser Papers is an integrated specialty paper company which produces a broad range of technical, and printing & writing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is listed on the Toronto Stock Exchange under the symbol: FPS. For more information, visit the Fraser Papers web site at www.fraserpapers.com.

Cascades Tissue Group Rationalizes Its Operations in Ontario

Candiac, (Québec) March 9, 2006 – As part of its ongoing rationalization process of its activities and in an effort to optimize its effectiveness and profitability, Cascades Tissue Group has decided to close its conversion plant in Pickering, Ontario. Approximately 66 employees will be affected by this closure.

This plant converts paper towels and bathroom tissue for the commercial and industrial market. The equipment will be redeployed in different Cascades Tissue Group plants and mills in the United States and Canada so that the production capacity of the Group will not be reduced by this closure. Customers serviced by this plant will in no way be affected and will continue to benefit from the same level of service.

This closure takes place in the global reorganization plan which is to improve the Group’s overall profitability while ensuring quality products and an improved service. Unlike the other closures recently announced by Cascades, this one does not result from operational problems related to a non performing plant nor from bad market conditions; the paper tissue market is doing well. The costs resulting from this closure are not material and will be fully offset by the yearly savings that will be generated.

AF&PA Releases 46th Annual Survey of Paper, Paperboard and Pulp Capacity

March 10, 2006 WASHINGTON, DC – The American Forest & Paper Association (AF&PA) released its 46th Annual Survey of Paper, Paperboard and Pulp Capacity today in New York, NY. The Survey indicates that U.S. paper and paperboard capacity continued to edge lower in 2005, declining 0.8% to 99.3 million short tons. U.S. paper and paperboard capacity contracted 4.4% between 2000 and 2005 or at an average annual rate of 0.9%. The Survey indicates that paper and paperboard capacity will decline another 2.0% in 2006 and then expand slightly during the subsequent two years – rising 0.2% in 2007 and 0.4% in 2008.


The Survey covers U.S. industry capacity for the years 2005 through 2008 for all pulp, paper and paperboard grades. Industry total capacity by grade for all U.S. mills is included in the report.

The complete Survey with detailed tables may be purchased through AF&PA’s website www.afandpa.org for $750, or by contacting Jared Davis at AF&PA (ph: 202-463-2738, email: Jared_Davis@afandpa.org).
 

Georgia-Pacific to Shut Old Town, ME MIll

March 22, 2006 - The Bangor Daily News reported that Georgia-Pacific is shutting down its Old Town pulp mill in Old Town, Maine. The mill employs about 400 workers.

Maine Gov. John Baldacci said his administration and GP would make a joint effort to sell the mill.

GP said it will cease pulp and tissue manufacturing and associated tissue shipping operations at the mill immediately.

The company said it will keep the mill in working order for 60 days while a buyer is sought.

Also affected: four woodchip mills that supply raw material to Old Town. They are in Costigan, Milo, Portage and Houlton. Combined, they employ about 30 people.

Ted Sapoznik, president - Paper for GP, said in a statement that the Atlanta-based company is working with the state to find a new buyer. "While the Old Town mill may not fit into the future plans for [GP], we have been working to make a transition. We are anticipating finding a buyer who is ready to work with us and expand this business in Old Town."

GP is owned by Wichita, Kansas-based Koch Industries Inc.