| PAPER INDUSTRY NEWS - OCTOBER 2002 |
This page contains pulp and paper industry news for October 2002
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NEWS OCTOBER 2002
Weyerhaeuser to Close Sturgeon Falls Containerboard Mill
Oct. 8, 2002 - Weyerhaeuser Co. said that it is permanently closing its Canadian containerboard mill located in Sturgeon Falls, Ontario.
The company said the closure of the 100-year-old facility will be effective on or about December 6, 2002 and will eliminate 100,000 tons of capacity off of the company's manufacturing network and affect 140 positions. About six people will be retained to operate and maintain the hydroelectric power dam on the property.
Weyerhaeuser said the decision to close the plant is "part of a larger program aimed at making the company more efficient and competitive on a global basis."
Source: Weyerhaeuser Co.
Tembec Buys Chetwynd Pulp Mill From Louisiana-Pacific
Oct. 8, 2002 - Tembec Inc. said that it has acquired the assets of the Chetwynd High Yield pulp mill from Louisiana-Pacific Canada Pulp Co. and Louisiana-Pacific Ltd. for a nominal amount.
The mill, located in northern British Columbia, Canada, has a rated capacity of 160,000 tons per year, but has been idled since April 2001.
Tembec said it will spend about $20 million in process and equipment modifications and expects to restart the mill by January 2003.
The company said employees have shown their support by recently ratifying a new seven-year collective agreement.
"This mill is an excellent fit with our existing high yield pulp assets and will provide significant synergies with our Temiscaming and Matane operations," said Terrence P. Kavanagh, President of Tembec's Pulp & Paper Group.
"The acquisition confirms Tembec as the global leader in the growing high yield hardwood market pulp sector with more than 700,000 tons of capacity," concluded Kavanagh.
The acquisition will raise total capacity to approximately 2.4 million tons including 300,000 tons produced via joint ventures, Tembec said.
Source: Tembec Inc.
West Fraser acquires Daishowa's interest in Quesnel River Pulp
Oct. 16, 2002 - West Fraser Timber Co. Ltd. and Daishowa Canada Co. Ltd., a subsidiary of Daishowa Paper Manufacturing Co., Ltd. said yesterday that they have reached an agreement whereby West Fraser, subject to certain conditions, will acquire Daishowa's interest in Quesnel River Pulp Company.
The terms of the agreement are not disclosed. The transaction is expected to close on October 31, 2002.
Quesnel River Pulp Company is a 50/50 joint venture established in 1979 by West Fraser and Daishowa to build and operate a mechanical pulp mill in Quesnel BC. Quesnel River Pulp has the capacity to produce approximately 950 tonnes per day of bleached chemi-thermomechanical pulp (BCTMP) and thermomechanical pulp (TMP).
With this acquisition West Fraser's annual capacity of BCTMP and TMP increases to approximately 525,000 tonnes.
The agreement provides that Daishowa will continue to purchase a certain volume of BCTMP and TMP from Quesnel River Pulp. This pulp will be used internally by Daishowa and sold to a number of existing Daishowa customers in Japan.
Daishowa Paper Manufacturing Co., Ltd. is a wholly owned subsidiary of Nippon Unipac Holding of Japan that was created by the integration of Nippon Paper Industries Co., Ltd. and Daishowa Paper Manufacturing Co., Ltd. The Nippon Unipac Holding Group has diversified into a variety of areas beyond the scope of paper and paperboard products. Business lines include uniboard, paper cartons, chemical products and foreign lumber trading businesses among others.
West Fraser Timber Co. Ltd., a Canadian company headquartered in British Columbia, is one of Canada's largest integrated forest products companies with manufacturing operations in British Columbia, Alberta and the southern United States producing dimension lumber and related solid wood products, fibreboard, pulp, linerboard, kraft paper and newsprint.
Source: West Fraser Timber Co. Ltd
Oji Paper to Buy P&G Mill in China
Oct 28, 2002 - Oji Paper Co Ltd. said it would buy a paper plant in China owned by Procter & Gamble Co as part of its plans to expand in the fast-growing Chinese market.
Oji said it would acquire the plant through a transfer of all shares of P&G's B&C International Co Ltd, an overseas holding company of the plant, to Oji. Oji did not disclose the value of the deal, which is slated for completion in November.
The plant is located in Suzhou, Jiangsu Province. It currently employs 145 people and has an annual production capacity of 15,600 tonnes, mainly making paper rolls and tissues.
As part of the deal, Oji said it would manufacture P&G's "Tempo" brand of tissues under an original equipment manufacturer (OEM) agreement. Oji will also produce its own "Nepia" brand.
ABB Sells Pulp and Paper Drying Business
Oct. 29, 2002 – ABB said that it has sold its pulp and paper drying business to Andritz AG in Graz, Austria. The sale includes pulp dryers and drying lines for wood pulp, and drying hoods for papermaking.
"Pulp and paper is one of our most important industries, and we are the leading supplier of power and automation to this industry," said Dinesh Paliwal, ABB executive vice president and head of Automation Technologies division.
"Delivering pulp and paper drying systems is core for process line suppliers such as Andritz, but no longer core for ABB. This divestment helps us focus on our core power and automation business," added Paliwal.
"Andritz is a leading supplier of plants, systems, processes and services for pulp production, stock preparation and tissue making," said Wolfgang Leitner, President and CEO of Andritz. "This acquisition further develops the integrated scope our customers expect from us."
The divestment is subject to customary regulatory approvals.
Source: ABB
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