| PAPER INDUSTRY NEWS - AUGUST 2000 |
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This page contains pulp and paper industry news for August 2000
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NEWS AUGUST 2000
Stora Enso Acquisition of Consolidated Papers Completed
[Aug. 31, 2000] The merger of Stora Enso Oyj and Consolidated Papers, Inc. has been consummated, completing Stora Enso’s acquisition of Consolidated Papers effective 31 August 2000. Stora Enso’s ADSs will begin regular trading on the New York Stock Exchange 13 September 2000 under the trading symbol SEO.
Dexter Announces Closing of Sale of Nonwovens Business To Ahlstrom Paper Group
WINDSOR LOCKS, Conn., Aug. 31 /PRNewswire/ -- Dexter Corporation (NYSE: DEX - news) today announced the completion of its previously announced sale of Dexter Nonwoven Materials to Ahlstrom Paper Group Oy. In the transaction Ahlstrom paid Dexter $275 million in cash.
Closing of the sale to Ahlstrom was one of the conditions to consummation of the previously announced merger of Dexter and Invitrogen Corporation (Nasdaq: IVGN - news) and the previously announced merger of Dexter's 75% owned subsidiary, Life Technologies, Inc. (OTC Bulletin Board: LTEK - news), with Invitrogen. The two mergers with Invitrogen are subject to, among other things, the approval of the Invitrogen mergers by the Invitrogen, Dexter and Life Technologies stockholders at meetings to be held on September 14, 2000.
For complete news Go to http://www.dexternonwovens.com/
Perkins Papers Ltd. to Acquire Wyant Corporation
Candiac (Quebec) August 30, 2000 -- Perkins Papers Ltd. (TSE, symbol: PKN), a subsidiary of Cascades Inc. (TSE, symbol: CAS) and Wyant Corporation (NASDAQ Small Cap, Symbol: WYNT) announced today that they have entered into a definitive agreement whereby Perkins Acquisition Corp., a wholly-owned subsidiary of Perkins, will make a tender offer for all of the issued and outstanding shares of common stock of Wyant for US$4.00 per share in cash. Pursuant to this agreement, and promptly following the tender offer, Perkins Acquisition Corp. will merge with Wyant resulting in Wyant becoming a wholly-owned subsidiary of Perkins.
For complete news Go to 207.253.165.188/perkin
SCA Modernizing it’s SC Paper Mill in Laakirchen, Austria
Aug. 30, 2000 In an effort to capitalize on a unique opportunity for continued value appreciation of the operations in the paper mill at Laakirchen, a modernization project will be implemented. An older paper machine (40 years), with a capacity of 90,000 tonnes, will be shut down and replaced by a new machine with an annual capacity of 240,000 tonnes, also fully intended for production of high-quality, so-called SC-A paper. Since the mill’s infrastructure for pulp supply and other functions is also sufficient for the increased capacity of 150,000 tonnes, the investment cost can be limited to EUR 225 M, or about EUR 900 per installed tonne of annual capacity. This is about half of the investment level made by the industry in the area in recent years.
For complete news Go to www.sca.se/
UPM-Kymmene to Acquire Repap
(August 29, 2000), Helsinki, Finland and Stamford, Connecticut, – UPM-Kymmene Corporation (Helsinki Stock Exchange: UPM1V; NYSE:UPM) and Repap Enterprises Inc. (TSE:RPP) today announced that they have signed an acquisition agreement under which UPM-Kymmene will acquire Repap in a transaction to be affected by way of an amalgamation. Pursuant to the agreement, Repap's shareholders will receive CAD 0.20 per common share, which represents a premium of approximately 100% over the recent trading price of Repap common shares on The Toronto Stock Exchange. The transaction values Repap's equity at approximately CAD 160 million (EUR 120 million), implying a total enterprise value for Repap of approximately CAD 1.35 billion (EUR 1.01 billion). The transaction will result in a goodwill value of approximately CAD 400 million (EUR 300 million). With respect to Repap's outstanding debt securities, UPM-Kymmene is considering its options, which may include purchases of such securities in negoatiated transactions, a redemption of all or a portion of such securities after consummation of the transaction and/or leaving such securities outstanding.
For complete news Go to www.upm-kymmene.com/
Stora Enso Receives Approval of New York Stock Exchange Listing
Acquisition of Consolidated Papers to close August 31, 2000
[Aug. 28, 2000] Stora Enso Oyj’s acquisition of Consolidated Papers, Inc. will close on August 31, 2000 if Consolidated’s shareholders approve the acquisition at the meeting on August 30. The New York Stock Exchange approved the listing of Stora Enso’s American Depositary Shares (ADSs) by notice on August 25, satisfying one of the last conditions to the merger.
In the merger, holders of Consolidated Papers shares have the right to elect to receive either $44.00 in cash or 3.621 Stora Enso ADSs, each representing one Stora Enso Series R share, for each Consolidated Papers share. Shareholder elections are subject to proration as described in the Proxy Statement/Prospectus, dated July 26, 2000, mailed to Consolidated shareholders in connection with the shareholder meeting scheduled for August 30, 2000.
For complete news Go to www.storaenso.com/
Kvaerner Secures US$105 Million Pulp and Paper Contracts on Three Continents
25 Aug 2000
Kvaerner, the Anglo-Norwegian engineering and construction Group, today announced that it had secured pulp and paper contracts in Belgium, Sweden, Brazil and South Africa, worth a combined total of more than US$105 million.
Speaking about the award of these contracts, Roland Martin-Löf, Executive Vice President of Kvaerner, said: “The market for pulp machinery equipment has been slow to recover. Now though, there is a clearly positive trend – as our customers in the pulp industry are increasing their levels of activity – backed by good profitability in the sector.”
The largest of the contracts, worth US$55 million, is for Burgo Ardennes S.A. Kvaerner will supply a recovery boiler and other associated equipment for the Burgo Ardennes pulp and paper mill at Virton in north-west Belgium. The customer is replacing its old recovery boiler, and at the same time, increasing the mill’s capacity. The start-up of the new equipment is scheduled for the end of 2001.
In addition, Kvaerner has secured contracts worth more than US$50 million for customers in Brazil, Sweden and South Africa.
For further details Go to www.kvaerner.com/other/pulp/
Consolidated Papers to Sell its Interest in Wisconsin River Power Company
August 25, 2000, WISCONSIN RAPIDS, Wis. – Consolidated Papers, Inc. (NYSE: CDP) and Stora Enso Oyj announced today that Consolidated Papers has entered into an agreement to sell its one-third interest in Wisconsin River Power Company to Wisconsin Public Service Corporation. Wisconsin River Power Company is an electric utility jointly owned by Consolidated Water Power Company, a subsidiary of Consolidated Papers; Wisconsin Public Service Corporation; and Alliant Energy. Pending completion of the sale, Consolidated has undertaken not to vote its shares in Wisconsin River Power Company.
For complete news Go to http://www.consolidatedpapers.com/
International Paper Enters Discussions With Metsa-Serla Regarding German Subsidiary Zanders Feinpapiere AG
BRUSSELS, Belgium, Aug. 24 /PRNewswire/ -- International Paper today announced it has entered into an exclusive period of negotiations with Metsa-Serla of Finland regarding the sale of International Paper's interest in Zanders Feinpapiere AG. A final agreement is expected by the end of September 2000.
For complete news Go to http://www.corporate-ir.net/
UPM-Kymmene will Become a Sole Owner of Changshu Fine Paper Mill in China
23 Aug. 2000, UPM-Kymmene Corporation, The APRIL Group (Asia Pacific Resources International Holdings Ltd.) and APRIL's majority shareholder have today signed a definite Share Purchase Agreement to sell APRIL's 51% interest in the Changshu paper mill to UPM-Kymmene. The value of the transaction is USD 150 million. After the agreement UPM-Kymmene owns 100 per cent of the Changshu paper mill. The fine paper company's converting plant in Suzhou will be transferred to APRIL. The agreement requires approval from the relevant authorities.
For complete news Go to http://www.upm-kymmene.com/
Crown Vantage Halting Production at Michigan Plant; Layoffs Announced
CINCINNATI, Aug. 22 /PRNewswire/ -- Crown Vantage Inc. (OTC Bulletin Board: CVANQ - news) today announced it will be idling its entire Parchment, Mich., paper production operation indefinitely. This action will result in the permanent layoff of 249 salaried and hourly employees effective October 21 through November 3, 2000.
"We made several attempts to turn the Parchment facility around over the years; however, we now believe that idling this plant is the most appropriate action and will provide a greater benefit to our remaining employees, customers and stakeholders in the long run,'' said Bob Olah, chief executive officer. ``Halting production at our Parchment facility is the latest in a series of strategic moves to improve overall operating performance. This, and other initiatives, which have included a comprehensive product line/price rationalization, recent management restructuring and a headquarters move with corporate-staff reductions, are intended to return the business to a more profitable base from which to grow.''
Management said that capacity available in the company's active mills is expected to absorb the production no longer being scheduled on the Parchment machines.
Valmet to Strengthen its Service Operations in Brazil
21.08.2000, Valmet will expand its service operations in Brazil. Valmet has signed a letter of intent to acquire the majority of the assets of a factory owned by Beloit Industrial Ltda., a company located in Campinas in the State of Sao Paulo, Brazil. The deal includes the site, buildings, and machinery and equipment. It is planned that certain of the factory's personnel will transfer to Valmet's employment later this year. The agreed price of the deal is USD 7.2 million.
For complete news Go to http://www.valmet.com/
Crown Pacific Decides Against sate at this Time, will Explore other Strategic Options
PORTLAND, August 21, 2000-Crown Pacific Partners, L.P. (NYSE:CRO) , a leading integrated forest products company, announced today that its Board is no longer pursuing the sale of the company because of current market conditions. However, the board has authorized active exploration of other strategic options, including the sale of selected non-strategic assets and the conversion of the company to a real estate investment trust
For complete news Go to http://www.crownpacificpartners.com/
Stora Enso Extraordinary General Meeting Approves Merger Plan with Consolidated
18 August 2000, The Stora Enso Extraordinary General Meeting on 18 August 2000 approved the merger and merger plan between Stora Enso and Consolidated Papers, Inc., which will result in the acquisition of Consolidated Papers, Inc. by the Stora Enso Group.
The Meeting also approved the issuance of up to 200 million new R shares to the Consolidated Papers’ shareholders for the acquisition of Consolidated Papers, Inc. and authorized the Board of Directors to grant option rights to replace the current option schemes of Consolidated Papers, Inc. for its personnel.
The maximum number of the members of the Board was changed to eleven (11) ordinary members. George W. Mead, Chairman of Consolidated Papers, Inc. was elected as the eleventh member of the Board effective at the closing of the acquisition.
Mead To Close Two Consumer & Office Products Facilities
Production and Distribution Being Transferred from Kalamazoo, Michigan, to Mead Sites in Pennsylvania and Missouri Consolidation of Indianapolis Facility Is Key Step in AT-A-GLANCE Integration
DAYTON, OH – August 16, 2000 — The Mead Corporation (NYSE:MEA) has announced plans to close the Mead Consumer & Office Products (MCOP) facilities located in Kalamazoo, Michigan, and Indianapolis, Indiana. After these closures, the division will operate ten manufacturing plants and nine distribution centers in North America.
Mead expects to close the Kalamazoo facility by December 31, 2000. The site’s manufacturing and distribution capabilities will cease effective August 31 and will be transferred to similar Mead facilities in Alexandria, Pennsylvania, and St. Joseph, Missouri.
For complete news Go to http://www.mead.com/
Bowater Named Among World's Best Managed Companies
16 Aug. 2000, Greenville, S.C. Bowater Incorporated (NYSE: BOW - news) today announced its selection as one of the World's 100 Best-Managed Companies by IndustryWeek magazine. It is the third time since 1997 that Bowater has received the honor and the only forest products company selected in 1999 and 2000.
Bowater was selected by a panel of more than 90 business leaders, analysts, and academicians on the basis of the company's financial performance, environmental, safety and social practices. Candidates for the magazines 100 Best-Managed Companies were taken from the IndustryWeek 1000, a list of the world's largest publicly held manufacturing companies based on revenues.
For complete news Go to http://www.bowater.com
Valmet to Deliver Two Complete Tissue Machines to Procter & Gamble
16.08.2000, Valmet has received an order from Procter & Gamble for two complete tissue machines. The first machine will start up in July 2001, adding 75 000 tons of capacity. The start-up timing for the second machine is still to be determined. The orders are part of the company's USD 350 million expansion in Mehoopany, Pennsylvania.
For complete news Go to http://www.valmet.com/
American Pad and Paper Signs Definitive Agreement for sale of Williamhouse Div.
DALLAS, Texas, August 15, 2000, -- American Pad & Paper Company (OTCBB:AMPPQ) (AP&P) announced today that it has signed a definitive sale agreement with Saratoga Partners for the assets of its Williamhouse division. This agreement follows the Letter of Intent signed with Saratoga on July 17. The sale is subject to a number of conditions including bankruptcy court approval.
For complete news Go to http://www.d-press.com
Republic Group to be Acquired by Premier Construction Products Statutory Trust
Hutchinson, Kan., Aug. 14, 2000—Republic Group Incorporated (NYSE:RGC) has announced that it has entered into a definitive merger agreement to be acquired by Premier Construction Products Statutory Trust ("Premier"), a private statutory trust which is an affiliate of Integrated Capital Associates, Inc. of San Francisco, California.
The transaction is valued at approximately $410 million (including debt). Under terms of the merger agreement, stockholders of the Company will receive cash in the amount of $19.00 per share for all outstanding shares at closing. The Premier merger agreement provides for a liquidated damages payment of $12.0 million by Premier if it fails to complete its financing arrangements and close the merger. In addition, it provides for a $10.0 million break-up fee payable by the Company under certain circumstances. Premier’s obligations will be backed by a letter of credit in the amount of $12 million.
For complete news Go to http://www.republic-group.com
Mercer International Inc. Reports 2000 Second Quarter Results
Pulp Revenues Increase 143% Year Over Year and 17% Sequentially
ZURICH, Switzerland, Aug. 14, 2000--Mercer International Inc. (Nasdaq:MERCS, Easdaq:MERC GR) today reported results for the second quarter ended June 30, 2000.
For the 2000 second quarter, the Company reported net income of $9.0 million, or $0.52 per diluted share compared with a net loss of $2.8 million or $0.17 per diluted share, in the second quarter of 1999. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2000 were $18.8 million, compared to an EBITDA of $0.9 million a year ago. Second quarter 2000 revenues were $63.7 million, compared with $35.0 million in the year ago period. The Company noted that the increase in interest expense from year-ago levels reflects costs related to the conversion of its Rosenthal pulp facility from sulphite to sulphate (kraft) pulp production.
For complete news Go to http://www.mercerinternational.com
AssiDoman's Sale of Sack Operation to Frantschach Completed
The sale to Frantschach of AssiDomän’s sack operations, Dynäs and Sepap paper mills and the Barrier Coating business area, which was agreed in May, was completed today. The deal was given an unconditional go-ahead by the EU Commission at the start of August.
The units that have been sold accounted for around 20% of Group sales and 21% of Group operating profit in the first six months of 2000. The sale is an important step in the Group’s strategy of concentrating operations on the sectors where AssiDomän has a competitive structure.
The purchase price is around SEK 4,500 million (between 550 and 565 million euros, depending on the profit performance of the sold units). Overall, the sale is expected to have a net positive effect after tax of around SEK 665 million in 2000. This corresponds to around SEK 5.60 per share. As previously announced, the intention is to transfer the major part of the proceeds of SEK 4,500 million to AssiDomän’s shareholders.
Metso Corporation's Interim Review January - June 2000: Order Intake Remained Strong and Profitability Improved Significantly
Metso's net sales for January-June were EUR 1,825 million (EUR 1,583 million in January-June, 1999). * The operating profit was EUR 69 million (EUR 1 million). * The income before extraordinary items and income taxes was EUR 58 million (EUR 5 million). Earnings per share were EUR 0.30 (EUR 0.02) * New orders worth EUR 2,525 million were received (EUR 1,705 million). The order backlog at the end of June was EUR 2,225 million (EUR 1,586 million on Dec. 31, 1999).
HELSINKI, Finland, Aug. 9 /PRNewswire/ -- Due to the improved market situation in the first half of the year, the demand for Metso's products was significantly better than in the corresponding period last year, with new orders for January-June being 48 percent higher. The value of orders received by fiber and paper technology increased by 85 percent, mainly due to orders for new panelboard lines, paper machine rebuilds and paper finishing systems. Service operations also grew steadily. The value of new orders received by automation and control technology grew by 13 percent due to the market situation and the launch of new automation and control solutions. The orders received by the machinery business area grew by 11 percent. The demand for mobile products supplied to contractors and quarrying customers by the rock and mineral processing group grew particularly strongly. At the end of June, Metso's order backlog was 40 percent higher than at the end of last year.
For complete news Go to http://www.metsocorporation.com
Valmet Converting Announces a Large Order in-take at Drupa
Aug. 09, 2000 Valmet Converting has confirmed orders received at Drupa 2000 in excess of EUR 15.5 million - and there is confirmation to follow on another sale which could boost the final total to almost 20 million Euros.
Following a very successful exhibition for the Group's first Drupa, Rotomec, world-leading Italian manufacturer of flexo and gravure printing presses and coating & laminating equipment, took the most orders in terms of monetary value for a single business unit. This included 2 of the new Rotopak 3000-5 rotogravure presses, one 8 colour press to India and one 10 colour press to the USA. The third gravure press was an 8 colour Rotopak 3000-3R, sold to a customer in Argentina, with a laminator and a Titan SR6 slitter rewinder.
For complete news Go to http://www.valmet.com/
METSÄ-SERLA´S Acquisition of MODO Paper Approved by EU
Aug. 07, 2000 EU commission has today approved the purchase of Modo Paper AB by Metsä-Serla. The closing of the transaction will be announced separately in the coming days. As part of the EU approval, Metsä-Serla has undertaken to divest its shareholding in the Swedish paper merchant Grafisk Papper AB. Grafisk Papper´s turnover was in 1999 15 million Euros, and it employed 20 persons.
Westvaco Continues Expansion of its Global Packaging Business
IMPAC Europe acquires leading supplier of DVD packaging
NEW YORK, NY - August 8, 2000 -- IMPAC Europe Limited, a Westvaco Corporation (NYSE: W) subsidiary, today announced the acquisition of privately held DuBOIS Holdings Limited, global licenser and European manufacturer of the Amaray® DVD pack, the world's top-selling DVD package. IMPAC Europe is Europe's premier supplier of printed material and packaging to music and multimedia markets. With DuBOIS, IMPAC Europe enhances its participation in entertainment packaging, including the rapidly expanding interactive computer game segment.
For complete news Go to http://www.westvaco.com/
American Eco Seeks Bankruptcy Court Protection
HOUSTON, Aug. 4 /CNW/ - AMERICAN ECO CORPORATION (NASD-OTC: ECGOE, TSE: ECX) announced that it has filed for protection in the courts in Delaware and Ontario under the relevant bankruptcy laws.
In the United States, American Eco Holding Corp. has applied for protection under Chapter 11 of the United States Bankruptcy Code along with its affiliates Chempower, Inc. of Canton, Ohio; The Turner Group, Inc. of Port Arthur, Texas; United Eco Systems, Inc. of High Point, North Carolina; Separation & Recovery Systems, Inc. of Irvine, California; MidAtlantic Recycling Technologies, Inc. of New Jersey; Specialty Management Group, Inc. of Dallas, Texas; NUS, Inc. of Portland, Oregon; Lake Charles Construction Corporation of Lake Charles, Louisiana; Cambridge Construction Service Corp. of Dallas, Texas; and AEC Funding Corp. of Houston, Texas, and their respective subsidiaries.
For complete news Go to http://www.newswire.ca/
Gilbert Paper Named "Employer of the Year"
The National Epilepsy Foundation has named Gilbert Paper "2000 Employer of the Year"
DAYTON, Ohio. August 2, 2000 – Gilbert Paper, a division of The Mead Corporation, is being recognized by The National Epilepsy Foundation as the “2000 Employer of the Year.” The award will be presented at the National Epilepsy Foundation's national conference in Atlanta, Georgia, on August 12. Only one company is chosen for this honor each year.
For complete news Go to http://www.mead.com/
Bowater Completes Newsprint South Acquisition
01 Aug. 2000, Greenville, SC Bowater Incorporated (NYSE: BOW - news) announced today that it has completed the previously announced acquisition of the Newsprint South, Inc. paper mill in Grenada, Mississippi from GE Capital Structured Finance Group and shareholders.
Bowater Incorporated, headquartered in Greenville, SC, is a global leader in newsprint. In addition, the company makes coated and uncoated groundwood papers, bleached kraft pulp and lumber products. The company has nine pulp and paper mills in the United States, Canada and South Korea. The company also owns and operates a coating operation and three sawmills that produce softwood dimension lumber. These operations are supported by 1.8 million acres of timberlands owned or leased in the United States and Canada and over 14 million acres of timber cutting rights in Canada. The company is one of the world's largest consumers of recycled newspapers and magazines. Bowater common stock is listed on the New York Stock Exchange, U.S. regional exchanges and the London Stock Exchange. A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange (TSE: BWX - news).
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