Paper Industry May 2003 News

PAPER INDUSTRY NEWS - MAY 2003

This page contains pulp and paper industry news for May 2003

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NEWS MAY 2003

Appleton Acquires Two Packaging Companies

May 1, 2003 - Appleton yesterday said that it has acquired two privately-held companies, C&H Packaging Company, Inc., based in Merrill, Wisconsin, and American Plastics Company, Inc., located in Rhinelander, Wisconsin.

C&H Packaging prints and converts flexible plastic packaging materials for companies in the food processing, household and industrial product, and medical device industries. American Plastics produces high-quality, custom multilayered films and commercial packaging. The terms of the acquisitions were not disclosed.

Appleton purchased C&H Packaging and American Plastics as part of its strategy to acquire technology that will enable Appleton to leverage its expertise in coating applications and microencapsulation.

"Producing substrates for the performance packaging industry is one of the markets in which we feel there are multiple opportunities for us to compete and to grow," said Doug Buth, Appleton's chief executive officer. He added American Plastics' knowledge of films and barrier technology and C&H Packaging's portfolio of products should complement Appleton's expertise in coating and microencapsulation.

Buth said that C&H Packaging and American Plastics are two successful and well-managed companies that have built strong customer relationships and solid reputations that have contributed to years of consistent growth. "We intend to provide the resources to enable both companies to accelerate their growth plans while continuing to operate independently of each other," Buth said.

To accommodate the growth of its existing paper businesses as well as further expansion into new markets such as packaging, brand protection, digital products, and labels, Appleton Papers changed its trade name and logo to Appleton in January. It was a move that anticipates growth from the company's new product development efforts and through acquisitions.

About C&H Packaging and American Plastics
C&H Packaging Company, Inc. was founded in 1986 and employs 100 people. American Plastics Company, Inc. was established in 1992 and employs 45 people. In 2002, C&H Packaging and American Plastics generated approximately $40 million in net sales. Each company will operate as a subsidiary of Appleton.

About Appleton
Appleton (formerly known as Appleton Papers) creates product solutions through its development and use of coating formulations and applications and encapsulation technology. The company produces carbonless, thermal, security, digital and other coated products. Appleton is headquartered in Appleton, Wisconsin, and has manufacturing operations in Wisconsin, Ohio and Pennsylvania, employs approximately 2,500 people, and is 100 percent employee-owned. For more information visit www.appletonideas.com.

SOURCE: Appleton

Kemira to Buy Pulp and Paper Chemicals Business
from Vulcan

May 19, 2003 - Finnish chemical company Kemira said that it has agreed to buy the pulp and paper chemicals business from Vulcan Materials Company for $44 million to further increase its presence in North America.

The acquisition will be done through Kemira's wholly owned subsidiary Kemira Chemicals, Inc.

Included in the deal are plants in Columbus, Georgia; Shreveport, Louisiana and in Canada, Vancouver, British Columbia. The R&D Center in Columbus, GA is also part of the transaction. The product lines manufactured at these plants include emulsion polymers, defoamers, wet and dry strength resins and a variety of custom manufactured products.

Juhani Lindholm, Executive Vice President for the Pulp and Paper Chemicals of Kemira, sees this acquisition as a significant step in growing Kemira's pulp and paper chemicals business and significantly enhances Kemira's ability to serve the pulp and paper industry globally. "Customers will have greater flexibility in sourcing chemicals and technology for process and functional chemicals applications. The combination of this acquired business with our present North American business strengthens our resources on the North American market and brings new technologies for our customers globally." "This acquisition is consistent with Kemira's strategic intention to focus on pulp and paper," he explains.

"This acquisition should be excellent news for our customers and employees," says Seth Spurlock, the president and CEO of Kemira Chemicals, Inc. "It builds upon our core paper, mineral slurries and water treatment businesses by enhancing our production capabilities, adding new technology and expanding our R&D efforts. This enables us to expand and improve upon the value we offer our customers in all the North American markets we serve. Customers want to work with the basic producers who have the ability to better control the cost, quality and development of new chemistries. Employees benefit through enhanced personal opportunities by participating in an organization that is committed to growth globally."

The number of Kemira personnel will increase by approximately 200 people.

The deal was signed May 17, 2003 with closing expected within the next four to six weeks.

SOURCE: Kemira

Oji Paper Plans to Build Integrated Mill in China

May 26, 2003 - Japan's 2nd largest paper maker, Oji Paper Co. Ltd., said that it has plans to build a large-scale integrated paper-manufacturing plant in China.

The Nihon Keizai Shimbun, Japan's financial newspaper, reported that the Japanese paper maker plans to invest about Y70 billion to build a plant near Shanghai. Details of the project have not yet been disclosed.

A spokesman from Oji Paper told the Nihon Keizai Shimbun, "We do have a plan to build a plant in China. But the details are still undecided, including location, capital expenditure and production capacity."