This page contains pulp and paper industry news for October 2003

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NEWS OCTOBER 2003

Louisiana-Pacific to Relocate Headquarters to Nashville

Oct. 1, 2003 - Louisiana-Pacific Corp. yesterday said that it will relocate its corporate headquarters to Nashville, Tennessee. The transition is expected to occur over the next 12 to 15 months.

"Following our asset sales, we are a dramatically different company than we were a couple of years agoâ€”both in focus and geographic dispersion. In order to grow in the future, it is important we bring our key people together," said Mark Suwyn, LP chairman and chief executive officer. "Nashville is an excellent fit for our company as we concentrate on growing our businesses. It's closer to our mills, customers and financial shareholders, while offering an affordable, good quality of life for our employees and a positive business climate."

LP said that Nashville was one of four cities being considered for it's headquarters. The other cities under consideration were Charlotte, North Carolina; Richmond, Virginia; and Portland, Oregon, the location of LP's current headquarters.

LP stated it intends to retain a significant presence in the Portland, Oregon, area. "Our people enjoy living in Portland. While there will be various positions that will transition over time to our new headquarters in Nashville, we will retain approximately 130 positions in the Portland area and are developing plans to move approximately 15 additional positions to the Northwest as part of the overall consolidation," said Suwyn.

Additionally, LP will consolidate employees from other administrative offices to its new headquarters. In addition to the Portland metro area, LP currently has administrative offices in Hayden Lake, Idaho; Conroe, Texas; Charlotte, North Carolina; Montreal, Quebec; Schaumburg, Illinois; and Troy, Michigan.

"The impact on our various administrative offices will differ by location," said Suwyn. "Some will see minimal impact while others will consolidate in greater numbers to the new headquarters. We are in the process of communicating the extent of these changes to our employees."

SOURCE: Louisiana-Pacific Corp.

MeadWestvaco To Acquire Day Runner

STAMFORD, CONN., October 2, 2003 – MeadWestvaco Corporation (NYSE: MWV) today announced that it has executed an agreement to acquire the business of Day Runner, Inc., a designer, developer and distributor of loose-leaf, personal organizers and related products for the retail stationery market. Terms of the transaction were not disclosed. Completion of the transaction, which is subject to customary regulatory approvals, is expected to occur in the fourth quarter of 2003.

"Day Runner, with its broad line of personal organizers and planning products, perfectly complements our consumer and office products business,” said Neil A. McLachlan, president of MeadWestvaco’s Consumer and Office Products Group. “It will extend our range of products in important areas and give us another strong brand that is popular with customers and consumers.”

Day Runner is a privately-held company based in Fullerton, California, which was founded in 1980 under the name Harper House.

MeadWestvaco Corporation, headquartered in Stamford, Connecticut, is a leading global producer of packaging, coated and specialty papers, consumer and office products, and specialty chemicals. The principal markets it serves include the automotive, beverage, consumer products, healthcare, media and entertainment, and publishing industries. The company operates in 29 countries and serves customers in nearly 100 nations. Among MeadWestvaco’s highly recognized consumer and office brands are AT-A-GLANCE®, Columbian®, Five Star®, Cambridge® and Mead®. MeadWestvaco also manages strategically located forestlands according to stringent environmental standards and in conformity with the Sustainable Forestry Initiative® program.

Curtis Papers Sells Port Huron Mill to Management Team

Oct 10, 2003 - Curtis Papers Inc. yesterday said that it sold its Port Huron, Michigan paper mill to the local management team. The name of the new company is Dunn Paper, the historical name for the mill when it was founded in 1924.

Brent Earnshaw, president and CEO of Dunn Paper said, "We are all very excited about the purchase and look forward to serving our customers and growing our business. We received great support from our customers, vendors, employees, and countless other people, and we are eager to continue producing the same great products for which the mill has always been known. The mill is running and operating at planned capacity and one of our greatest assets is a loyal and productive union workforce." ï¿½

Management has restructured the company to reduce fixed costs and insure improved future financial health. Dunn Paper expects to produce 53,000 tons of paper in 2004. "The company is well capitalized by management and an investment by Meriturn Partners, with acquisition financing and ongoing working capital funding provided by Citizens First," continued Earnshaw. "We are very pleased to have the assistance of both Meriturn Partners and Citizens First. They, like we, believe in the potential of this mill and are committed to the mill's contribution to our community. Citizens First has been with us since we originally talked with them in July. They have stepped up to the plate in everyway. Without their support the deal would never have come together."

Dunn Paper, Inc.ï¿½is a premierï¿½manufacturer of specialty papers servingï¿½flexible packaging companies, giftwrap producers, bag manufacturers, labelers and foodservice companies.ï¿½ The company is a leading North American producer of specialty C1S (coated-one-side) and uncoated MG (machine glazed) papers.ï¿½Founded in 1924, Dunn Paper has produced paper continuously at the company's headquarters at 218 Riverview Street, Port Huron, Michigan. The company's website is www.dunnpaper.com

Schweitzer-Mauduit To Acquire Indonesian Paper Company

Oct. 24, 2003 - Schweitzer-Mauduit International, Inc. said that an agreement has been finalized whereby one of its subsidiaries will acquire P.T. Kimsari Paper Indonesia (Kimsari), a specialty paper manufacturer located in Medan, Sumatra, Indonesia.

According to Schweitzer-Mauduit, its subsidiary, Schweitzer-Mauduit France S.A.R.L., will acquire ownership of 100 percent of the stock of Kimsari for a purchase price of $8.5 million, subject to working capital adjustments.

The transaction is subject to governmental approvals and is expected to close within the next 90 days, Schweitzer-Mauduit said.

Kimsari's products include cigarette paper and conventional plug wrap for the cigarette industry. All of its sales are currently within the Indonesian market. Kimsari has one paper machine, with an annual capacity of approximately 3,200 metric tons, and has approximately 200 employees. Net sales for the fiscal year ended December 31, 2003 are expected to be approximately $6.5 million.

Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer of Schweitzer-Mauduit commented that, "The acquisition of Kimsari is consistent with our long-term strategy for operations in Asia, which is both a higher growth region for our products and a low cost production area. The acquisition will provide Schweitzer-Mauduit with a manufacturing presence on a fourth continent and will significantly improve our ability to address the needs of our customers in both Indonesia and the southeast Asian market. We plan to upgrade the capacity and quality of the manufacturing capabilities of Kimsari to support the demand for tobacco-related products in the region."

SOURCE: Schweitzer-Mauduit International, Inc.

Bunzl to acquire filters and fibres business of Baumgartner

Bunzl plc, the international distribution and outsourcing Group, today announces that it has entered into an agreement to purchase the business of Baumgartner Fibertec. Completion of the acquisition is subject to the transaction receiving clearance from the relevant competition authorities.

Fibertec, which is based in Crissier, Switzerland, is engaged in the development, manufacture and sale of cigarette filters and capillary reservoirs. The business had sales in 2002 of CHF40 million. The value of the net assets to be acquired are expected to be approximately CHF14 million.

Sonoco to close Frankfort, Indiana Plant

Hartsville, S.C. Sonoco (NYSE:SON), the global packaging company, today announced that it will close its molded plastics plant in Frankfort, Ind., and consolidate those operations into existing facilities in Detroit, Mich.; Chatham, N.Y.; Forest City, N.C.; and Union, S.C. The closing will be phased, with completion expected near the end of the first quarter 2004.

The plant, located at 2810 West State Rd. 28, has approximately 90 employees. The Company will offer outplacement assistance and in some cases will offer transfers to other Sonoco operations. The plant, which has been in operation since 1972, produces injection molded plastics products primarily for the wire and filtration markets.

This consolidation is part of the Company's previously announced plans in August to reduce further its average cost structure by approximately $60 million.

"It is always difficult to close a facility, particularly when you have people as dedicated to serving our customers as our team in Frankfort. Unfortunately, this action is necessary to reduce Sonoco's overall cost structure in light of weak general economic conditions. These consolidations will in no way adversely affect our ability to serve our markets and customers," said Bob Puechl, division vice president, Molded Plastics.

For more information on the Company, visit its web site www.sonoco.com.

Abitibi-Consolidated and Eureka Recycling Join Forces in Saint Paul, Minnesota

SAINT PAUL, Minnesota, Oct. 23 /CNW Telbec/ - Abitibi-Consolidated Inc.
(NYSE: ABY, TSX: A) and Eureka Recycling announced a ten-year agreement today whereby a majority of recycled newspapers in Saint Paul will be sold to Abitibi-Consolidated. This private/non-profit partnership guarantees Eureka Recycling, the nonprofit recycler that manages Saint Paul's recycling program, a long-term, stable end-market for collected newspapers. In exchange, Abitibi-Consolidated, which recycles over three million tons of paper each year, will receive a steady flow of quality materials for their paper
recycling mills throughout North America.

"Through our partnership with Abitibi-Consolidated's Recycling Division, we are demonstrating that recycling is a viable, environmentally beneficial enterprise. Our common dedication to the wise use of our resources is resulting in the highest environmental and economic benefit possible for newspaper recycling in Saint Paul," explained Susan Hubbard, CEO, Eureka
Recycling. "We see this partnership as a way to ensure that recycling remains sustainable, and profitable," added Tim Brownell, COO, Eureka Recycling.

Schweitzer-Mauduit To Acquire Indonesian Paper Company

ALPHARETTA, Ga., Oct. 24 /PRNewswire-FirstCall/ -- Schweitzer-Mauduit International, Inc. (NYSE: SWM) today announced an agreement has been finalized whereby one of its subsidiaries will acquire P.T. Kimsari Paper Indonesia ("Kimsari"), a specialty paper manufacturer located in Medan, Sumatra, Indonesia. Schweitzer-Mauduit France S.A.R.L. will acquire ownership of 100 percent of the stock of Kimsari for a purchase price of $8.5 million, subject to working capital adjustments. The transaction is subject to governmental approvals and is expected to close within the next 90 days. The acquisition is not expected to have a material impact on Schweitzer-Mauduit's 2004 consolidated net income.

Kimsari was formed in 1984 and began production of cigarette paper in 1985. Schweitzer-Mauduit's French subsidiary, Papeteries de Mauduit (PDM), was involved in the design and construction of the Kimsari mill in the mid 1980's, has provided intermittent technical support and currently licenses Kimsari to utilize the PDM trademark in the marketing of Kimsari's products in Indonesia. Kimsari's products include cigarette paper and conventional plug wrap for the cigarette industry. All of its sales are currently within the Indonesian market. Kimsari has one paper machine, with an annual capacity of approximately 3,200 metric tons, and has approximately 200 employees. Net sales for the fiscal year ended December 31, 2003 are expected to be approximately $6.5 million.

Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry. It also manufactures specialty papers for use in alkaline batteries, vacuum cleaner bags, overlay products, business forms and printing and packaging applications. Schweitzer-Mauduit and its subsidiaries conduct business in over 90 countries and employ 3,400 people worldwide, with operations in the United States, France, Brazil and Canada. For further information, please visit the Company's Web site at www.schweitzer-mauduit.com .

Pactiv Completes Purchase Of Packaging Assets Of Rock-Tenn Company

LAKE FOREST, Ill. – October 28, 2003 – Pactiv Corporation (NYSE: PTV) today announced it completed the acquisition of the packaging assets of Rock-Tenn Company. The purchase price of $60 million is approximately equal to the replacement cost of the assets, and the acquisition is expected to be accretive to 2004 earnings.

The purchased assets are related to the manufacture of amorphous polyethylene terephthalate (APET) and polypropylene products for food packaging. The acquired assets will provide capacity to support Pactiv’s rapid growth in these markets and will enable Pactiv to expand its position in the case ready market.

This press release includes certain “forward-looking statements” such as “is expected to be accretive to 2004 earnings” and “will enable Pactiv to expand its position.” These statements are based on management’s current reasonable and good faith expectations. A variety of factors may cause actual results to differ materially from these expectations including slowdown in economic growth, changes in the competitive market, increased cost of raw materials, and changes in the regulatory environment. More detailed information about these and other factors is contained in the Company’s Annual Report on Form 10-K at page 52 filed with the Securities and Exchange Commission as revised and updated by Forms 10-Q and 8-K as filed with the Commission.

Pactiv Corporation, a $2.9 billion company, is a leading provider of advanced packaging solutions for the consumer, foodservice/food packaging and protective/flexible packaging markets. The specialty packaging leader currently operates 73 facilities in 14 countries around the world. For more information about Pactiv, visit the company’s web site at www.pactiv.com.

Gannett acquires Clipper Magazine, Inc.

MCLEAN, Va.--(BUSINESS WIRE)--Oct. 31, 2003--Gannett Co., Inc. (NYSE:GCI) today announced the acquisition of Clipper Magazine, Inc. of Lancaster, Pa., one of the nation's largest independent direct-mail advertising magazine companies.

The acquisition also includes several affiliated operations: Spencer Advertising and Marketing, a full service advertising agency; Loyal Customer Club, an e-mail customer retention service, My New Home, a direct mail service to new movers; and MyClipper.com, the companion web site for the core direct mail advertising offerings.

Terms of the deal were not disclosed

"We are truly excited and expect great results as Clipper continues to grow throughout the country. Clipper will be a strong and welcome addition to Gannett," said Doug McCorkindale, chairman, president and CEO of Gannett.

Tembec to Purchase a Weyerhaeuser Sawmill in Ontario
[Note: The following release was issued jointly by Tembec Inc. and Weyerhaeuser.]

Chapleau, Ontario, October 31, 2003 —

Tembec and Weyerhaeuser announced today that they have reached an agreement in principle regarding the sale to Tembec of the Weyerhaeuser sawmill assets located at Chapleau, Ontario, for $C25.5 million including working capital. The transaction is expected to close in the fourth calendar quarter of 2003 and is subject to certain conditions being met as well as government and other required approvals.

“This proposed transaction, and the recently announced transaction with Nexfor, are part of our strategy to effect much needed consolidation in the softwood lumber industry in North America,” said Frank Dottori, Tembec President and CEO. “The acquisition of the Weyerhaeuser sawmill in Chapleau will provide a secure long-term fibre base for the Marathon pulp manufacturing joint venture in this area and allow us to generate additional synergies with our nine existing sawmills in the region, particularly in forest resource management,” added Mr. Dottori.

The Chapleau sawmill has a softwood allocation of approximately 524,000 cubic metres of wood per year, has a production capacity of 100 million board feet of lumber annually and employs close to 140 people. The acquisition will boost Tembec’s annual lumber capacity to over 1.8 billion board feet, including the two Nexfor sawmills located in Northwestern Quebec that Tembec intends to acquire by the end of 2003.

“We are pleased to have reached an agreement with Tembec,” said Norm Bush, Vice President, Ontario, for Weyerhaeuser. “We believe the sale will benefit both companies as well as the employees and the community of Chapleau. Although Weyerhaeuser remains committed to maintaining and strategically developing a strong presence within the forest industry in Ontario, we think that the Chapleau sawmill offers strategic benefits to Tembec that are not available to Weyerhaeuser’s operations,” he added. “Moreover, employees at Chapleau are skilled, valuable and productive people who have contributed significantly to the operation. They have earned our appreciation and gratitude and will be treated with dignity and respect throughout the transition process.”

Weyerhaeuser acquired the Chapleau sawmill in 1999 as part of its purchase of MacMillan Bloedel Ltd. The sawmill is one of two that Weyerhaeuser operates in Ontario. Weyerhaeuser also operates a pulp and paper mill at Dryden, a sawmill at Ear Falls, an oriented strand board mill at Wawa, and the recently-opened Trus JoistTM TimberStrand® plant in Kenora, Ontario, as well as several sales and customer service centres.

Tembec is an integrated Canadian forest products company principally involved in the production of wood products, market pulp and papers. The Company has sales of approximately $4 billion, with over 55 manufacturing sites in the Canadian provinces of New Brunswick, Quebec, Ontario, Manitoba, Alberta and British Columbia, as well as in France, the United States and Chile. Tembec’s Common Shares are listed on The Toronto Stock Exchange under the symbol TBC. Additional information on Tembec is available on its website at www.tembec.com.