| PAPER INDUSTRY NEWS - DECEMBER 2001 |
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This page contains pulp and paper industry news for December 2001
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NEWS DECEMBER 2001
FiberMark Widens Loss Estimate, to Sell Plant
BRATTLEBORO, VERMONT-December 28, 2001- FiberMark, Inc. (NYSE:FMK) today announced that fourth quarter 2001 results are likely to range between a loss of $.95 and $1.05 per share. The company had previously indicated that results were likely to be similar to the third quarter 2001, when a loss of $.65 per share was reported.
"Factors contributing to the current outlook include additional production trial activity, the impact of further inventory reductions, and costs associated with facility closures," said Chief Executive Officer Alex Kwader. "While sales strengthened in October, they weakened again in November and further softened in December. With more than anticipated paper machine downtime in December, we also shifted forward some maintenance spending."
For complete news Go to http://www.fibermark.com
Pope & Talbot Announces Halsey Pulp Mill Sale-Leaseback
PORTLAND, Ore., Dec. 27 , 2001 Pope & Talbot today announced that it has entered into a $36 million sale-leaseback of the Halsey, Oregon pulp mill chlorine dioxide facility. Participants in the transaction, each acting in independent capacities, included KeyBank National Association, Wells Fargo and Company, and Boeing Capital Corporation.
Michael Flannery, Chairman and Chief Executive Officer stated, ``I am very pleased with the low cost, long-term financing achieved through the transaction. The proceeds will create additional liquidity for the Company through repayment of bank lines of credit and other indebtedness.''
For complete news Go to http://www.corporate-ir.net/
Norampac Inc. to Further Focus on Core Packaging Operations Selling its Paper Recovery Plants
MONTREAL, Dec. 21 /CNW/ - Norampac Inc. ("Norampac") announces that it has entered into an agreement to sell all of the assets of its Paper Recovery Division to Metro Waste Paper Recovery Inc. ("Metro Waste").
The assets, which Norampac acquired earlier this year from Crown Packaging Ltd., along with a containerboard mill located in Burnaby, British Columbia, are comprised of eight paper recovery plants located in British Columbia, Alberta and Manitoba. They will complement Metro Waste's existing facilities in Ontario and the US Northeast.
For complete news Go to http://www.newswire.ca
Analysts all wrapped up Sell side has paper covered, cuts outlook
Dec. 21, 2001 NEW YORK (CBS.MW) -- Techs, financials, airlines -- some sectors get all the attention, especially when it comes to year-end outlooks. But most just turn the page when it comes to paper and forest products.
J.P. Morgan and Goldman Sachs, however, had the group covered Friday. Unfortunately, the outlook for the sector is not all that good and while most of the market rallied, the PHLX Forest & Paper Products Index ended the day down 1.3 percent.
For more info Go to http://www.marketwatch.com/
U.S. Forest Products Industry Shows Signs of Getting Out of the Woods in Late 2002, in an Advisory by Industrialinfo.com
HOUSTON--(BUSINESS WIRE)--Dec. 20, 2001--The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc; Houston). The year ahead will be challenging for America's forest products industry, much like 2001. Weak demand for some products combined with a sluggish economy will continue to plague the industry through most of 2002. Getting out of the ``woods'' will be determined by how well manufacturers match production to demand, more industry consolidation and by limiting capital spending.
Capacity expansion is mostly non-existent and growth will be less than 1%, as plants will still have to contend with production curtailments through the first half of 2002. Producers have indicated that machines will no longer run outright, but instead run closer to demand. By the third quarter of next year, producers expect to see a significant reduction in high inventories that could trigger long awaited price increases.
Industry consolidation has become necessary for growth as well as a way to survive in a global marketplace. More mergers and acquisitions are in line for the industry next year. In the midst of shuffling manufacturing assets, business groups and marketing strategies, more of the country's plants will close permanently. Additionally, consolidation will lead to some U.S. plants falling into the hands of foreign companies. For some plants, new ownership could mean an injection of much needed capital investments.
For more info Go to www.Industrialinfo.com
Gaspesia Mill to Reopen
CHANDLER, Dec. 17 /CNW/ - The reopening of the Gaspesia mill in Chandler, Gaspé was announced today, in the presence of Bernard Landry, Premier of Quebec, Gilles Baril, Minister of State for the Regions and Minister of Industry and Trade, and a number of dignitaries. The consortium involved, which includes Tembec, the Fonds de solidarité FTQ and SGF-Rexfor, agreed to reopen the mill in early 2004, with construction to begin in the spring of 2002. When the project is completed, some 260 jobs will be created in the Gaspé region.
The project, estimated at $465 million, is designed to shift the former Abitibi-Consolidated mill's production to the manufacture of high-gloss coated paper. The Quebec government's contribution will be made under its FAIRE and Emploi-Québec programs. Furthermore, the INNO-PAP agency is contributing financially to the project. The federal government has yet to confirm participation.
For complete news Go to http://www.newswire.ca/
GL&V Among the 50 Best Managed Companies in Canada
Dec. 13, 2001 GL&V announces that it has just been designated as one of Canada’s 50 best managed companies by Andersen, the National Post, CIBC and the Queen’s School of Business. “This acknowledgment by the Canadian business community is a great honour for GL&V, which has evolved within a few years from a regional business to rank among the world leaders in its industry today,” said Laurent Verreault, President and Chief Executive Officer. “We share it with 1,300 employees, present in 40 countries on five continents. It is through their commitment to our objectives of quality, service and efficiency that GL&V successfully stands apart by providing an international client base with innovative and competitive technological solutions while creating added value for its shareholders.”
For complete news Go to http://www.glv.com
Sonoco to Purchase Smurfit Tubes Activities in United Kingdom
HARTSVILLE, S.C., Dec. 12 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, today announced that it has purchased the United Kingdom- based core and tube converting business from Smurfit UK Limited, part of the Jefferson Smurfit Group, headquartered in Dublin, Republic of Ireland, according to Harris E. DeLoach, Jr., president and chief executive officer. The acquisition is expected to be slightly accretive to Sonoco's earnings in the first year. The purchase price was not revealed.
The Smurfit core and tube business consists of three converting facilities in the United Kingdom (UK) located at Slough, Leek and Jarrow. The business had 2000 annual sales of approximately $16 million, most of which was paper- based tubes and cores for the paper, plastics, paper converting and packaging industries. Sonoco currently has four tube and core facilities in the UK: Coleford and Milnrow, England; Lurgan, Northern Ireland; and Brechin, Scotland. The company also has a paper mill in Stainland, England.
For complete news Go to http://www.prnewswire.com
Eastman to Consolidate Pulp Business
KINGSPORT, Tenn., Dec. 12, 2001 - Eastman Chemical Company (NYSE:EMN) today announced plans for an expansion of its crude tall oil fractionation unit in Franklin, Va., and the shutdown of the company's fractionation and rosin ester units in Savannah, Ga.
Eastman Chemical Resins, Inc., a wholly owned subsidiary of Eastman Chemical Company, owns these two manufacturing units that were acquired from Hercules Incorporated earlier this year. The fractionation process separates tall oil, a byproduct of the wood pulping process, into products used in adhesives, inks, coatings, paper size and other industrial applications.
For complete news Go to http://www.eastman.com
Graphic Packaging to Close High-Cost Plant, Move Production to Lower-Cost Facilities
GOLDEN, Colo., Dec. 11 /PRNewswire/ -- Graphic Packaging International Corporation (NYSE: GPK) today announced that it plans to close its Newnan, Georgia folding carton plant by the end of 2002. Production and equipment will be moved to more cost-effective facilities among the Company's remaining 17 carton plants. This closure will result in a restructuring charge of approximately $6 million in the fourth quarter 2001, including non-cash items of $3.5 million, and operating charges of about $2.8 million in 2002 to move production and equipment. Cost savings are estimated to be up to $5 million annually, some of which will be realized in 2002. Approximately 200 people will be affected by the shutdown.
This closure is the fourth in two years as the Company focuses on lowering costs and improving operating efficiency. During this period, the Company has increased sales by about 10% while it has rebalanced its plant network. At the same time, quality and customer service has improved. Significant cost and efficiency savings have been realized from the previous closures.
For complete news Go to http://www.prnewswire.com
WILLAMETTE BOARD AUTHORIZES DISCUSSIONS FOR POSSIBLE COMBINATION WITH GEORGIA-PACIFIC'S BUILDING PRODUCTS BUSINESS
PORTLAND, ORE. -- Willamette Industries (NYSE:WLL) today announced that its Board of Directors has authorized Willamette's management team to commence negotiations with Georgia-Pacific Corp. (NYSE: GP) regarding a possible business combination involving Georgia-Pacific's building products business. There can be no assurances as to when or if a transaction will be finalized.
Were a transaction to occur, Willamette would enhance its position as one of North America's leading producers of structural wood panels, composite panels and lumber, and give it a strong presence in distribution, gypsum and wood adhesive resins. The Georgia-Pacific building products business had revenues of approximately $7 billion in 2000.
For complete news Go to http://www.wii.com/
American Paper Corporation Announces an Addition of a Tissue Mill
HAUPPAUGE, N.Y., Dec. 4 2001 American Paper Corporation announced today that it has added the Tissue Mill in Memphis, Tennessee, formerly owned by Kimberly Clark, to its Memphis Division.
In addition to the Tissue Mill, the Company's Memphis Division operates the mill previously owned by Shelby Tissue and a pulp facility previously owned by Ponderosa Fibers.
American Paper produces over 150,000 tons of tissue paper annually on five paper machines and manufactures and markets a total of approximately 14 million cases of paper napkins, paper towels, and bathroom and facial tissues a year.
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