Ballarpur Industries to Increase
Paper Capacity in India
Oct. 2, 2006 - Ballarpur Industries Ltd (BILT) and the Maharashtra
Government in India have signed a memorandum of understanding for a capacity
expansion project at the company's paper mill at Bhigwan in Pune, India.
The proposed two-phase capacity expansion will cost Rs 1,200 crore. The
plant produces coated and uncoated papers.
In the first phase of the project, which is slated for completion by
2008, will add 100,400 tons per year to the mill's current capacity. The
second phase, to come on-line after 2008, would boost production capacity
another 100,600 tons per year.
Anil Bhargava, CEO of BILT Power Ltd, said that the company would also
build a 100 MW power plant at Bhigwan for additional power needs. The fuel
would be coal-sourced from the Indian and the Indonesian market.
The Bhigwan mill is located in Bhigwan, Maharashtra, India and produces
115,000 tons per year of coated and uncoated papers.
Ballarpur Industries Ltd. is India's largest manufacturer and exporter of
paper. The company's products include: Printing & Writing Papers, Industrial
Paper and Specialty Paper.
SOURCE: Hindu Business Line
04 October 2006
Stora Enso intends to close down its Reisholz and Berghuizer mills
Stora Enso Oyj Stock Exchange Release 4 October 2006 at 10.00 GMT
Summa and Uetersen mills are to continue operating while
further improving their financial performance
Stora Enso has announced its intention to close down Reisholz Mill in
Germany and Berghuizer Mill in the Netherlands. The planned closures are
subject to local consultation. Summa Mill in Finland and Uetersen Mill
in Germany will remain in operation while further improving their
financial performance.
These four mills have been under scrutiny since the announcement of
Stora Enso's Asset Performance Review (APR) in October 2005. During the
past year all four mills have implemented a number of actions to
increase their competitiveness. The performance of each of these mills
following these improvements has been evaluated using a range of
financial and operational measures, with long-term profitability and
strategic fit as key criteria.
Reisholz and Berghuizer mills planned to be closed due to lack
of profitability
Reisholz Mill, which is part of Stora Enso's Publication Paper division,
is planned to be closed in phases by the end of 2007. The intention to
close the mill is based on its lack of profitability. Further increasing
energy and wood prices in Germany also influenced the decision. Reisholz
Mill, which produces improved super-calendered (SC) papers, has a total
annual production capacity of 215 000 tonnes. The mill has 378
employees.
Berghuizer Mill, which is part of Stora Enso's Fine Paper division, is
planned to be closed during 2007. The intention to close the mill is
based on its lack of profitability. The annual production capacity of
Berghuizer Mill, which produces woodfree uncoated (fine) paper (e.g.
copy and printing paper), is 235 000 tonnes. The mill has 297 employees.
Stora Enso intends to supply customers of Reisholz and Berghuizer mills
from its other mills following the planned closures.
Stora Enso will record total provisions and write-downs related to the
planned closures of EUR 270 million in the third quarter of 2006.
Approximately EUR 180 million of the provisions will have a cash impact.
The cash impact will be realised as the actions occur. A significant
portion of the cash cost is expected to be offset by income from
realisable assets.
Reisholz and Berghuizer mills had combined external sales of EUR 142
million in the first six months of 2006. In the same period the combined
operating profit was slightly negative. Working capital at the end of
June 2006 was EUR 30 million.
Summa Mill has improved its financial performance through
locally agreed efficiency measures
Summa Mill, which is part of Stora Enso's Publication Paper division,
has improved its financial performance. Local agreements have been
concluded on operator maintenance and sharing maintenance resources with
other mills in Kymenlaakso, and salary and wage freezes and changes to
salary and wage structures have reduced costs. The mill has also been
gradually shifting its standard newsprint production towards
higher-value-added products such as improved newsprint, book paper and
magazine paper.
Uetersen Mill continues with combined product offering with
Oulu Mill
Uetersen Mill, which is part of Stora Enso's Fine Paper division, has in
combination with Oulu Mill in Finland an important role in the graphic
(coated fine) paper business area's product portfolio. Uetersen Mill is
centrally located close to large customer groups but has also improved
its financial performance. The measures to improve financial performance
include reduction of personnel and adjustments of local labour
agreements.
Both Summa Mill and Uetersen Mill are expected to operate without new
investments for at least the next several years.
"The work that has been done in Summa and Uetersen mills recently has
resulted in improved profitability, but further profit improvement is
still needed," comments Stora Enso's CEO Jukka Härmälä. "The analysis of
the alignment of the Group's strategy and its product and production
asset portfolio continues. We are committed to further enhancing profits
to achieve our return on capital target by continuing to monitor closely
the performance of not only these two mills but all our assets."
Stora Enso's second half 2006 results and non-recurring items
for third quarter 2006
The Group's reported operating profit for the third quarter is expected
to be negatively impacted by relatively high maintenance stoppage costs,
necessary market-related curtailments in the coated magazine paper
business area and costs related to a labour dispute as a consequence of
machine closures at Corbehem Mill. In the fourth quarter the impact of
market-related curtailments and costs related to a labour dispute at
Corbehem Mill continues, in addition to the negative impact of the
gradual start-up of the Port Hawkesbury Mill.
Stora Enso will record the following non-recurring items in its
operating result for the third quarter 2006:
- a capital gain of about EUR 186 million, including an
additional dividend, on the divestment of Celbi Pulp Mill in Portugal,
which was finalised in August.
- impairment and restructuring provisions of EUR 47 million on
the divestment of Wolfsheck Mill in Germany, which was finalised in
September.
- an additional restructuring provision of EUR 7 million
relating to the social plans at Corbehem Mill in France and previously
announced machine closures.
- impairments of EUR 21 million and restructuring provisions of
EUR 3 million relating to Stora Enso Timber's fixed asset impairments in
Germany and Estonia, and to restructuring of Stora Enso Timber's sales
network.
- a provision of approximately CAD 20 million (EUR 14 million)
relating to post-employment benefits at Port Hawkesbury Mill in Canada
as a result of the new labour agreement and decision to restart the
mill.
- provisions and write-down of EUR 270 million relating to the
planned closures of Berghuizer and Reisholz mills.
International Paper and Ilim Pulp to
Pursue Joint Venture in Russia
MOSCOW, Oct. 25 /PRNewswire-FirstCall/ -- International Paper (NYSE: IP)
and Ilim Pulp, the largest forest products enterprise in Russia, have signed
a letter of intent to establish a 50-50 joint venture, the largest foreign-
domestic alliance in the Russian forest sector.
The joint venture would be created through International Paper purchasing
a 50-percent equity interest in Ilim Holding. The total valuation of Ilim
Holding in the joint venture is approximately $1.3 billion. The joint
venture's board of directors would include equal representation from
International Paper and Ilim Pulp and would be headquartered in St.
Petersburg.
Ilim Pulp operates four pulp and paper mills located in the European and
Siberian regions of Russia, and produces approximately 2.5 million tons
annually of market pulp, uncoated papers and packaging. Ilim Holding is in
the process of consolidating ownership of the individual mills into a single
Russian open joint-stock company, Ilim Group, a subsidiary of Ilim Holding.
A key element of the proposed joint venture strategy is a long-term
investment program in which the joint venture would finance and invest
approximately $1.2 billion in the four mills over approximately five years.
This unprecedented investment in the Russian pulp and paper industry would
be used to upgrade equipment, increase production capacity by approximately
1 million tons (40 percent), and allow for new high-value product
development.
"This joint venture would be attractive to both International Paper and
Ilim Pulp because it would unite the unique capabilities of both companies
and enable us to create more value together than we could individually,"
International Paper Chairman and Chief Executive Officer John Faraci said.
"Beyond that, a joint venture should benefit Russia by significantly
propelling the development of a globally competitive sustainable forest
products industry in Russia."
He added, "International Paper has been a committed part of the Russian
forest-products industry for seven years, through the ownership of our
Svetogorsk Mill, and we look forward to continuing to encourage the
strategic development of the industry."
Ilim Pulp Chairman Zakhar Smushkin said, "This alliance between the
Russian and the global industry leaders would align strategies that create
unprecedented opportunities for both parties and for the entire Russian
forest-products industry. Our joint success would provide Russia a
competitive edge over other emerging markets in attracting needed capital to
the industry."
The parties plan to finalize the agreement in the first quarter of next
year, pending completion of due diligence, receipt of required regulatory
approvals and approval by their respective boards.
The pulp and paper mill that International Paper currently owns and
operates in Svetogorsk, in the Leningrad region, would remain separate from
the joint venture. Similarly, Ilim Pulp's wood-products enterprises would
not be integrated into the joint venture and instead, Ilim plans to combine
these entities to create the country's largest timber-processing holding
company.
About International Paper
Headquartered in the United States, International Paper has been a leader
in the forest-products industry for more than 100 years. The company is
currently transforming its operations to focus on its global uncoated papers
and packaging businesses, which operate and serve customers in the U.S.,
Europe, South America, Asia, Russia and North Africa. These businesses are
complemented by an extensive North American merchant distribution system.
International Paper is committed to environmental, economic and social
sustainability, and has a long-standing policy of using no wood from
endangered forests. To learn more, visit www.internationalpaper.com.
About Ilim Pulp
Ilim Pulp (Saint Petersburg, Russia) was incorporated in 1992. The
corporation is among the world's top ten companies in output of market pulp
and ranks sixth internationally in timber reserves and logging volumes. Ilim
Pulp's production assets have been organized by product business units in
accordance with its core activities: solid wood products, pulp and
containerboard, and packaging. Ilim Pulp employs a total of 42,000 people
and produces 60 percent of market pulp and 50 percent of boxboard
manufactured in Russia.
This release contains forward-looking statements. These statements
reflect the current views of management of International Paper and Ilim Pulp
and are subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied in these statements.
Factors which could cause actual results to differ relate to: (i) the
ability of International Paper Company and Ilim Pulp to agree on final terms
of the joint venture and the long term investment plan; (ii) pulp and paper
industry conditions, including changes in the cost or availability of raw
materials and energy, changes in transportation costs, competition, changes
in product mix and demand and pricing for either Company's products; (iii)
supply and demand conditions and other economic factors affecting Russia,
Eastern Europe and Asia, including changes in political conditions, changes
in currency exchange rates and natural disasters; and (iv) compliance costs
related to environmental and other governmental regulations and the
uncertainty of the costs. International Paper Company and Ilim Pulp
undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Investors -
Brian McDonald, +1-901-419-4957, all for International Paper
Media-
Elena Konnova, +7-812-908-83-63
Artem Savko, +7-812-905-88-85, both for Ilim Pulp
Oct. 30, 2006
Metso Paper to supply another paper
machine rebuild to ITC Bhadrachalam, India
Photo
caption: Metso's previous deliveries to the ITC Bhadrachalam mill include e.g., a
complete fiber line, which will soon be upgraded with an ozone bleaching
stage. During 2007 Metso will also deliver a second fiber line to the mill
as well as a board machine rebuild.
Metso Paper will supply ITC Limited Paperboards & Specialty Papers Division
in India with a paper machine rebuild. The pre-owned machine will be
imported and relocated at ITC's Bhadrachalam mill in Andhra Pradesh state.
The "Calypso PM 6" fine paper machine, which will increase the mill's
production capacity with 100,000 t/y, is scheduled to start up during the
first half of 2008. The value of the Metso order is in the range of EUR 15
million.
The modernization will consist of a SymFormer MB unit, a new SymPress B
press section, dryer section runnability components and new surface
treatment equipment for finalizing the paper quality.
The 5.3-m-wide PM 6 will produce uncoated and coated woodfree printing and
writing grades. Machinery upgrades will have a design speed of up to 1,000
m/min.
Using appropriate technology, ITC and Metso have worked closely together to
develop the Bhadrachalam mill's production capacity to a new level. The
latest co-operation projects include an ozone bleaching stage to the
existing Metso-supplied fiber line, as well as a totally new fiber line.
Both projects are due to start up in fall 2007. In addition, Metso will
supply a modernization and a new reel for the Bhadrachalam PM 4 board
machine in spring 2007.
ITC Limited is one of India's foremost private sector companies with a
turnover of USD 3.5 billion. The company's Paperboards & Specialty Papers
Division is one of the largest manufacturers of packaging and graphic boards
in South Asia. The Bhadrachalam mill, which is the country's largest single
location mill, produces close to 280,000 t/y of paper and board.
Metso is a global engineering corporation with 2005 net sales of
approximately EUR 4.2 billion. Metso's 22,000 employees in more than 50
countries serve customers in the pulp and paper industry, rock and minerals
processing, the energy industry and select other industries.
www.metso.com.