| PAPER INDUSTRY NEWS - AUGUST 2001 |
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This page contains pulp and paper industry news for August 2001
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NEWS AUGUST 2001
Westvaco Announces Strategic Realignment In Fine Papers Division - Close its Paper Mill in Tyrone, PA
NEW YORK, NY, August 31, 2001 -- Westvaco Corporation (NYSE: W) announced today that it will close its paper mill in Tyrone, PA, and move the mill's production to other, more modern manufacturing operations. The mill employs about 265 people and closing the facility will result in an estimated $26 million pretax charge against Westvaco's fiscal 2001 fourth quarter earnings.
"The mill's workforce has aggressively confronted extremely challenging market conditions, doing its best to improve product quality and manufacturing operations," said James A. Buzzard, Executive Vice President. "These efforts, however, can no longer overcome the competitive pressures caused by the economic slowdown, the strong U.S. dollar and the related sharp increase in imported paper. Today's circumstances dictate that we concentrate our production on the most efficient equipment."
For complete news Go to http://www.westvaco.com
Uniforêt Extends Downtime at its Port-Cartier Pulp Mill for an Indefinite Period of Time
ST-LEONARD, Quebec, Aug. 29 /CNW/ - Uniforêt has announced that the downtime in production at its Port-Cartier pulp mill which started on February 16 is extended again for an indefinite period of time. This measure is seen as necessary because of the weak conditions that persist on the pulp world market.
Some 120 jobs are directly affected by the suspension. Port-Cartier sawmill operations will not be affected by the extended suspension of production at the pulp mill.
For complete news Go to http://www.newswire.ca
Mead and Westvaco Agree to Combine in $10 Billion Merger
Creates Significantly Stronger Global Organization with Enhanced Growth and Cost Savings Opportunities
Dayton, OH and Stamford, CT – August 29, 2001 – The Mead Corporation (NYSE:MEA) and Westvaco Corporation (NYSE:W) announced today that they have agreed to a merger of equals creating a global company with leading positions in packaging, coated and specialty papers, consumer and office products, and specialty chemicals. The enterprise value of the combined organization is in excess of $10 billion.
The new company, which will be called MeadWestvaco Corporation, will have $8 billion in annual revenues, profitable growth platforms in the company’s four core businesses, and a strong balance sheet with substantial financial capacity. In addition to significantly enhanced growth opportunities, the companies together expect to achieve annual operating synergies of more than $325 million, in full effect by the end of the second year. The transaction is expected to be accretive to both companies.
For complete news Go to http://www.mead.com/
Norske Skog Canada Completes Purchase of Pacifica
Aug. 28, 2001 Norske Skog Canada, where Norske Skog earlier had a 50.8 % shareholding, has now completed its acquisition of the company Pacifica Papers Inc. (Pacifica). The Pacifica shareholders could choose between two options: Either 2.1 shares in Norske Skog Canada for each Pacifica share, or 1 share in Norske Skog Canada plus CAD 7.50 as cash. Shareholders representing approx. 77 % of Pacifica's share capital chose the option of 2.1 shares in Norske Skog Canada.
Norske Skog Canada will have 174.8 million shares after the acquisition of Pacifica. Norske Skog's ownership will subsequently be 36.1 %, and Norske Skog Canada will hereafter be treated as an affiliated company in the consolidated accounts.
For complete news Go to http://www.norskeskog.no
Georgia-Pacific To Streamline Its Communication Papers Business
Company to Retire Four Machines
ATLANTA, GA. August 27, 2001 -- Company to Retire Four Machines and Associated Pulp Capacity at Camas, Wash., and Increase Office Paper Converting Capabilities
Georgia-Pacific Corp. (NYSE: GP) today announced it will strategically reposition its communication papers business to focus on faster-growing paper segments by retiring four small, high-cost white paper machines and associated pulping capacity at its Camas, Wash., mill and investing in additional converting equipment at two facilities.
The company will install new cut-size converting equipment in its mills at Port Hudson, La., and Camas to increase production of office papers.
For complete news Go to http://www.gp.com
Domtar Temporarily Suspends Hardwood Pulp Production at its Espanola mill
ESPANOLA, Aug. 24 /CNW/ - In order to ensure balance between supply and customer demand, Domtar Inc. announced today that it will be taking market downtime and suspending production of hardwood pulp at its Espanola Ontario pulp mill from August 26 to September 11, 2001. This is an additional 8 days from the original maintenance shutdown and will reduce production output by 10,000 tonnes. A combination of holidays, special assignments and maintenance projects will provide continuity of earnings for permanent employees.
For complete news Go to http://www.newswire.ca/
Sonoco Completes Purchase of U.S. Paper Mills Corp.
HARTSVILLE, S.C., Aug. 24 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has completed its previously announced all-cash purchase of privately held U.S. Paper Mills Corp., DePere, Wisconsin, it was announced today by Harris E. DeLoach, Jr., president and chief executive officer.
The purchase price was not revealed. The purchase of U.S. Paper Mills, which had 2000 sales of approximately $70 million, is expected to be slightly accretive to earnings in the first year.
U.S. Paper Mills' principal businesses are the production and sale of lightweight paperboard for conversion into cores, composite cans and tubes, and the production of paper tissue and towel cores. U.S. Paper Mills is the North American market leader in the production of lightweight tissue and towel coreboard.
For complete news Go to http://www.prnewswire.com/
Stora Enso's and IP Merger Talks ?
Crown Pacific to Close Two Mills, Sell Third
Portland, Ore.- Louisiana-Pacific Corporation (NYSE: LPX) announced today that it has reached a definitive agreement with Crown Pacific Partners, L.P. (NYSE: CRO) to purchase its sawmill in Bonners Ferry, Idaho. The agreement includes the assumption of an equipment lease and a long-term log supply arrangement from Crown Pacific's timberland holdings. Closing is expected in late-August, pending completion of due diligence.
"The Bonners Ferry mill will solidify our presence in northern Idaho and LP's position as a top producer of narrow dimension and stud lumber in North America," stated Walter Wirfs, LP's vice president of lumber and plywood.
Wirfs continued, "We have had a long standing relationship with Crown Pacific in northern Idaho. The ownership transition of this mill and the associated log supply agreement strategically complements our other mills in the area, allowing for more efficient use of resources and enhancing our ability to serve our customers needs."
For complete news Go to http://www.lpcorp.com/
Abitibi-Consolidated Increases its Ownership in Pan Asia Paper to 50%
MONTREAL, Aug. 16 /CNW/ - Abitibi-Consolidated Inc. announced today that, as first communicated on May 20, 2001, it has now concluded the transaction whereby it has increased its stake in Pan Asia Paper Company Pte Ltd. from 33.3% to 50%.
Pan Asia Paper is Asia's leading newsprint manufacturer producing some 1.4 million tonnes of newsprint and groundwood paper annually. It employs approximately 2,200 people at some of the world's most technologically advanced facilities located in Shanghai, China; Singburi, Thailand; and at Chonju and Chongwon, South Korea.
For complete news Go to http://www.abicon.com
Weyerhaeuser Will Curtail B.C. Cedar Production
Aug. 16, 2001 FEDERAL WAY, Wash.—Weyerhaeuser Company announced today that because of market uncertainty surrounding the U.S. Department of Commerce’s decision last week to invoke a 19.3 percent countervailing duty on Canadian wood imports, it will curtail production at three cedar mills in coastal British Columbia, Canada.
The Canadian White Pine mill in Vancouver and the Somass mill in Port Alberni on Vancouver Island will be down for a minimum of two weeks starting Monday, Aug. 20. The New Westminster mill in the Vancouver area will also be down for a minimum of two weeks effective Monday, Aug. 27. The action affects some 1,000 employees. The three mills have an annual capacity of 275 million board feet. Between 70 and 80 percent of the wood produced by these mills is imported by the United States.
For complete news Go to http://www.weyerhaeuser.com/
GL&V Wins Contracts Worth Cdn $4.5M in China and Japan
Aug. 15, 200 - GL&V announces that its subsidiary GL&V Pulp Group Inc. (Nashua, New Hampshire) has been awarded Cdn$4.5 million in orders for the sale of equipment and provision of services to Asian pulp and paper companies.
Between now and January 2002, GL&V is scheduled to deliver CleanPacTM cleaners, FibersaversTM and CORU-DEXTM washers to the FuYu Paper Mill, located in HeiLongJiang Province in China. It will also provide HI-QTM knotters, HI-QTM rejects separators, HI-QTM fine screens and compaction baffle filter for the Daio Paper, Mishima Mill in Japan. These contracts include training, installation and equipment start-up services.
For complete news Go to http://www.glv.com
Norske Skog Canada: Expected Timing for Completion of Merger with Pacifica Papers : Aug. 27
Aug. 13, 2001, Norske Skog Canada, where Norske Skog owns 50.8 % of the shares, announced yesterday that it expects to complete the previously announced merger with Pacifica Papers on Monday, August 27. Payment of a special contribution of CAD 12 per share is expected to happen on Tuesday, August 28.
If the merger is completed as planned, Norske Skog Canada will be treated as an affiliated company in Norske Skog's consolidated accounts as from August 27.
For complete news Go to http://www.norskeskog.no
Sonoco to Purchase Phoenix Packaging Corporation
HARTSVILLE, S.C., Aug. 8 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has signed a definitive agreement to purchase Phoenix Packaging Corporation, a privately-held company headquartered in North Canton, Ohio, it was announced today by Harris E. DeLoach, Jr., president and chief executive officer. The purchase price was not disclosed.
The all-cash purchase, which is subject to regulatory approval, is expected to close by the fourth quarter of this year. Phoenix had 2000 sales of approximately $70 million, with 2001 sales estimated at approximately $80 million. The acquisition is expected to be immediately accretive, adding approximately $.04 to $.05 per share in earnings by the end of the first 12 months.
For complete news Go to www.sonoco.com
P. H. Glatfelter Company Completes Sale of its N. C. Tobacco Papers Business
York, PA, Thursday, August 9, 2001 – P. H. Glatfelter Company (NYSE: GLT) today announced the completion of the previously announced sale of its Ecusta Division to privately-held PURICO (IOM) Limited, an Isle of Man Company, and certain of its affiliates.
"This is an important milestone for the Company in transforming our business to realize our long-term strategic Vision," said George H. Glatfelter II, Chairman and Chief Executive Officer of P. H. Glatfelter Company. "With the sale of our tobacco papers business completed, we are now focused on pursuing opportunities in new areas of specialty papers and engineered products in order to contribute to revenue growth and increased returns for our shareholders," Mr. Glatfelter said.
For complete news Go to http://www.glatfelter.com
Buckeye Announces Startup of World's Largest Airlaid Nonwovens Machine and Airlaid Contracts
MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 8, 2001--Buckeye Technologies Inc. (NYSE:BKI) announced today the successful startup of the world's largest airlaid nonwovens machine. First quality product was produced on the second day of operation and shipped to a customer. Buckeye's Chairman, Robert E. Cannon stated "We believe this machine represents a step-change in the industry and will allow Buckeye to deliver sophisticated airlaid products to its customers at very competitive prices."
The new machine is designed to manufacture a variety of advanced absorbent products developed by Buckeye's research and development group. These products will be used in feminine hygiene pads, disposable diapers, adult incontinence products, baby wipes, moist tissues, and household cleaning products. This $100 million facility, located in Gaston County, North Carolina, will be capable of producing about 50,000 tons of airlaid nonwoven products annually.
For complete news Go to http://www.corporate-ir.net
Domtar Completes Purchase of Four Paper Mills in the US
Montreal, August 7th, 2001 - Domtar Inc. announced today that it has completed its previously announced acquisition of four paper mills and their related business and assets from Georgia-Pacific Corporation. The mills are located in Ashdown (Arkansas), Nekoosa and Port Edwards (Wisconsin) and Woodland (Maine). The total purchase price was $US 1.65 billion, which included $US 200 million for working capital.
"This is an exciting day for Domtar. This acquisition will allow us to offer one stop shopping to customers and, as a result, more effectively meet their ever-changing needs. We now all look forward to working with our new colleagues and sharing best practices in order to make Domtar the preferred supplier of customers", said Raymond Royer, President and Chief Executive Officer of Domtar.
For complete news Go to http://www.domtar.com
HERCULES Reporte Higher 2Q 2001 Results
Wilmington, DE, August 2, 2001 . . . Hercules Incorporated (NYSE: HPC) today reported earnings for the second quarter ending June 30, 2001 of $.21 per diluted share compared to earnings of $.15 per diluted share for the same period in 2000. On a recurring basis, the Company recorded a loss of $.01 per diluted share in the second quarter 2001 compared to earnings of $.24 per diluted share in the second quarter 2000.
Earnings during the quarter include a non-cash loss of $.01 per diluted share from the Company’s equity interest in CP Kelco.
Non-recurring gains in the second quarter 2001 totaled $67 million on a pre-tax basis. The gains include proceeds from the sale of the hydrocarbon resins and select portions of the rosin resins business to Eastman Chemical Company and proceeds from the sale of the peroxy chemicals business to GEO Specialty Chemicals, Inc.
GL&V Grows its Net Earnings by 9.4% and Fully Diluted Earnings per Share by 12.5%
Aug. 02, 2001 For the three-month period ended June 30, 2001, GL&V (ticker symbols LV.A, LV.B/TSE) achieved a thirteenth consecutive quarter of growth in net earnings over the corresponding periods of the previous years. Net earnings for the first quarter increased 9.4% to $3,643,000, compared with $3,330,000 for the corresponding quarter of the previous fiscal year. Earnings per share amounted to $0.38 on a weighted average of 9.5 million shares outstanding, up from $0.37 on 9.0 million shares last year. Fully diluted earnings per share rose 12.5%, from $0.32 to $0.36.
The Company recorded consolidated revenues of $95.7 million, compared with $104.2 million for the first quarter of fiscal 2000-2001. Laurent Verreault, President and Chief Executive Officer, explained that this decline in sales can be attributed to the difficult market conditions currently faced by the Pulp and Paper Group in North America and Europe. The Process Group, for its part, maintained its business volume while GL&V Manufacturing Inc. grew its sales. “Despite the slowdown in capital spending by pulp and paper manufacturers, our revenues from spare parts and other aftermarket services are on the rise. In fact, the larger proportion of these higher profit operations, which represented close to 55% of our sales mix in the first quarter, contributed to increase our gross profit margin from 22.9% last year to 26.1% this year.”
For complete news Go to http://www.glv.com
Fibermark Reports 2Q Earning & Announces Facility Consolidation Plans
August 1, 2001 BRATTLEBORO, VERMONT-August 1, 2001- FiberMark, Inc. (NYSE:FMK) today reported that net earnings per share for the second quarter ended June 30, 2001, were $.05 on net income of $.3 million versus $.55 on net income of $3.8 million for the comparable 2000 quarter. Excluded from second quarter results were non-recurring after-tax charges totaling $8.0 million, or $1.14 per share, related to a planned facility closure. Also excluded was an extraordinary charge of $0.7 million, or $.10 per share, related to early retirement of debt.
The April 18 acquisition of Rexam Decorative Specialties International, Inc. (DSI) boosted net sales 11.7% for the second quarter of 2001 to $102.1 million from $91.4 million for the same period last year. Excluding FiberMark DSI sales of $26.2 million, quarterly sales were off 17%.
For complete news Go to http://www.fibermark.com
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