| PAPER INDUSTRY NEWS - FEBRUARY 2001 |
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This page contains pulp and paper industry news for February 2001
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NEWS FEBRUARY 2001
Westvaco Reports 34% Lower First Quarter Earnings
NEW YORK, NY, February 27, 2001 -- Westvaco Corporation (NYSE: W) today reported fiscal first quarter earnings of 33 cents per share for the period ended January 31, compared to 50 cents per share earned in the first quarter of fiscal 2000. Revenues for the first quarter total $926.1 million compared to $799.6 million during the same period a year ago.
The decline in earnings primarily reflected slower economic growth and related lower demand for coated papers and bleached paperboard. In U.S. coated paper markets, demand for magazine, advertising, catalog and label papers weakened and the strong U.S. dollar resulted in greater competition from imports. While demand was strong in the first quarter for bleached paperboard used in media packaging applications, other markets declined, most notably food packaging and food service items. Higher energy costs also contributed to the decline in earnings.
For complete news go to http://www.westvaco.com/
SGS Enters into a Business Alliance with Recycle Auction Group
Feb. 26, 20001 The SGS Group, the world's largest verification, testing and certification organization has entered into a business alliance with Recycle Auction Group, (www.RecycleAuction.com). RecycleAuction.com is the only online NO FEE open access trade exchange for the entire recycling community. The SGS Group is recognized as the global benchmark for the highest standards of expertise, quality and integrity. The SGS Group operates a network of more than 30,000 experts in over 850 offices and subsidiaries and 340 laboratories in 140 countries.
Potential buyers will have access to "SGSonSITE" from all Bid Screens and the "Products and Services" section at www.RecycleAuction.com to arrange for inspection. Together www.RecycleAuction.com and SGS will work to build trust among buyers and sellers in the eMarketplace by creating the link between the "virtual" world of the Internet to the "physical" world of trade. "SGSonSITE" provides services tailored to buyers and sellers like the vendor rating program, product specifications verification, sample and inspection services as well as SGS traditional services now available on line.
For complete news Go to www.recyleauction.com
Jacobs-Sirrine Consultants Announces New Customer Satisfaction Benchmarking Service
Feb. 26, 20001 ATLANTA, GA. – Jacobs-Sirrine Consultants, a division of Jacobs Engineering Group Inc., announces a new benchmarking service targeted at the North American pulp & paper industry. This new service measures customer satisfaction and loyalty levels for companies competing in individual product segments and will build upon the company's other service offerings relating to pulp & paper facilities and markets.
The unique new service is a result of Jacobs-Sirrine's strategic alliance with Star LLC, the developer of a proprietary data gathering survey process called RAPIDSurvey™. In combination with the company's knowledge of paper markets, Jacobs-Sirrine will utilize its partner's survey technology and expertise to track customer satisfaction and loyalty ratings for paper producers participating in specific end-use paper segments. A variety of survey methods will be utilized, including completely automated web-based surveys that summarize results in real time. The new service provides pulp & paper companies with a highly effective tool to help them develop loyal customers in their market segments and improve their competitive position.
"This tool fills an important information gap for many companies in our industry in a very effective and cost efficient manner", says Jacobs-Sirrine Vice President Frank Perkowski. "Many companies do not have the internal resources to effectively implement and regularly monitor customer satisfaction and loyalty levels within each of their target markets. And the ones that do have the necessary resources, commit significant time and expense to the effort without the assurance of obtaining consistent, complete, and accurate information over time."
By providing an ongoing tracking mechanism on a real-time, scheduled basis, the new service will allow companies to monitor their progress, better understand their competitive position, and develop more effective customer programs that improve profitability.
Jacobs-Sirrine is launching the new service, entitled the JSC CUSTOMER LOYALTY BENCHMARK™ Program in March 2001, and initially plans to cover at least 20 major product categories, with most surveys completed on an annual basis. Additional information on this new service can be obtained by logging onto the company's website at www.jacobs-sirrine.com or by calling 770-393-7390.
Jacobs-Sirrine Consultants is the leading provider of competitive cost benchmark information for the pulp & paper industry in North America. Jacobs Engineering Group Inc. is one of the world's largest providers of professional technical services with annual revenues exceeding $3 billion.
Irving Tissue Concludes Purchase Of Procter & Gamble Toronto Plant
TORONTO, Feb. 22 /CNW/ - Irving Tissue announced today that it has concluded the purchase of Procter & Gamble's Toronto tissue plant. Following an agreed transition period, Irving Tissue will also acquire the "Royale" trademark and brand name. The 900,000 square foot plant on Weston Road has 450 employees, and 90,000 tons of tissue making capacity.
The plant's 10 production lines (making paper towel, toilet paper, facial tissue) will be utilized to support Irving Tissue's growth plans for Canada and the United States. The Toronto plant increases Irving Tissue's production capacity by 90%.
For complete news Go to http://www.newswire.ca
Start up of a new plant in Saskatoon by Norampac Inc.
MONTREAL, Feb. 22 /CNW/ - Norampac Inc. ("Norampac") is pleased to announce the start up of a new plant in Saskatoon Saskatchewan on February 22. This plant is operating with basic sheeting equipment and with a flexographic press. It will be supplied with corrugated sheets by Norampac Calgary and Norampac Winnipeg. The plant will provide all kind of products to the Saskatchewan market. The management of the plant has been entrusted to Mr. Dave Bouvier who will be supported by ten employees.
Norampac, now with its twenty-two box plants, increases its presence across Canada. It will now be implanted in each province of Western Canada.
For complete news Go to http://www.newswire.ca
Willamette sends Letters to Weyerhaeuser Board & willamette Shareholders
Reiterates Inadequacy of Weyerhaeuser Offer and Strongly Urges Willamette Shareholders Not To Support Weyerhaeuser’s Paid Nominees
PORTLAND, ORE. – February 22, 2001 – Willamette Industries (NYSE:WLL) today announced that its Board of Directors has sent a letter to Weyerhaeuser’s Board of Directors expressing its strong commitment to resisting Weyerhaeuser’s hostile takeover attempt. The Willamette Board has also sent a letter to its own shareholders, setting out the reasons why Willamette’s board continues to believe that Weyerhaeuser’s offer is inadequate and advising shareholders not to return Weyerhaeuser’s proxy card.
For complete news Go to http://www.wii.com/
Jacobs-Sirrine Consultants and Maxager Technology Form Alliance
Maximizing Profits for the Pulp and Paper Manufacturing Industry
ATLANTA, GA. and SAN RAFAEL, CA. -- February 21, 2000 -- Today Jacobs-Sirrine Consultants and Maxager Technology, Inc. announced an alliance to support pulp and paper manufacturers in maximizing profits across their operations. Jacobs-Sirrine Consultants, management consultants to the pulp, paper and allied industries, and Maxager Technology, developers of Advanced Profit Analysis software solutions, combine their expertise to offer manufacturers a competitive advantage with a time-based view of profitability.
Under the agreement, Jacobs-Sirrine Consultants will provide tactical and strategic consulting and will work with Maxager Technology to integrate Maxager® software into joint clients' operations. "We see Maxager as a perfect fit in the paper industry," said Dan Cenatempo, Managing Director, Jacobs-Sirrine Consultants. "Given the strong pricing pressure in the industry and many merger and acquisition activities, there is a strong need for utilizing capacity as effectively as possible, and wisely choosing and focusing sales efforts on profitable business segments, product lines and customers."
For complete news Go to http://www.maxager.com/
Jefferson Smurfit Profits nearly Triple
Dublin, 20 February, 2001: Jefferson Smurfit Group plc today announced preliminary results for the year ended 31 December, 2000:
Period in review:
For complete news Go to http://www.smurfit.ie/
Stora Enso to rebuild Summa Paper Machine no. 3 and Thermomechanical Pulping Plant
Feb. 20, 2001 - Stora Enso is to rebuild newsprint paper machine no. 3 and the thermomechanical pulping plant at its Summa mill in Finland. The aim is to improve quality and increase the capacity of paper machine no. 3 by 15,000 tonnes to 220,000 tonnes per year. The capacity of the thermomechanical pulping plant will be increased to 260,000 tonnes per year. The project will cost altogether about EUR 20 million. The paper machine will be rebuilt in two stages in June and December 2001. Installation work at the thermomechanical pulping plant will be undertaken in October 2001 and trial runs will begin in January 2002.
For complete news Go to http://www.storaenso.com
International Paper Announces Sale of Forestlands in Washington State
PURCHASE, N.Y., Feb. 15 /PRNewswire/ -- International Paper today announced it has reached an agreement to sell approximately 265,000 acres of forestlands in the state of Washington to Rainier Timber Company, LLC, a newly formed company managed by The Campbell Group of Portland, Ore., for more than $500 million. Proceeds will be used to reduce International Paper's outstanding debt. The forestlands to be sold are located primarily in Pierce and Klickitat counties.
The sale is part of International Paper's program to divest approximately $5 billion in assets that no longer fit the company's long-term strategy in the wake of acquiring Champion International last year and the merger with Union Camp Corporation. With the sale of the Washington forestlands, proceeds to date total more than $1.7 billion from the previously completed sales of other assets including Bush Boake Allen, Zanders Feinpapiere AG of Germany, IP's oil and gas properties, Champion Premium Papers business and the former Champion headquarters office building. Further announcements are expected in the coming months as sale processes currently ongoing come to completion.
For complete news Go to http://investor.internationalpaper.com/
Pacifica Papers Announces Strong Financial Results; Record-High Value-Added Sales, Major Cost Reductions in 2000
VANCOUVER, Feb. 14 /CNW/ - Pacifica Papers Inc. today announced net earnings of $9.6 million or $0.36 per common share for the fourth quarter ended December 31, 2000, up sharply from net earnings of $0.8 million or $0.03 per share for the comparable period in 1999, and slightly ahead of net earnings of $8.7 million or $0.33 per share for the third quarter ended September 30, 2000.
Sales for the fourth quarter of 2000 reached $233.5 million, $31.5 million above sales of $202.0 million for the fourth quarter of 1999, and $10.8 million ahead of sales of $222.7 million for the third quarter ended September 30, 2000. Paper sales were 4,000 tonnes or 1.6% higher than the third quarter of 2000 as a result of seasonal demand.
Earnings before interest, taxes, depreciation, amortization and other non- operating expenses (EBITDA) totalled $51.1 million for the latest quarter, compared to $31.4 million for the fourth quarter in 1999 and $47.0 million for the preceding quarter.
For complete news Go to http://www.newswire.ca/
Abitibi-Consolidated Settles with Canadian Competition Bureau Agrees to Sell its Port-Alfred, Québec Newsprint Mill
MONTREAL, Feb. 13 /CNW/ - Abitibi-Consolidated Inc. announced today that a final settlement has been reached with the Canadian Competition Bureau regarding its acquisition of Donohue Inc. The Bureau conducted a review of this transaction and its potential impact on the Eastern Canadian newsprint market. Following extensive negotiations, the Company has agreed to put its Port-Alfred newsprint mill up for sale.
"It wasn't our intention to sell the Port-Alfred mill but, in light of the position adopted by the Bureau and the likelihood of costly and lengthy litigation, we feel this is the best resolution for all our stakeholders," said John Weaver, President and CEO. "Moreover, selling Port-Alfred will provide us with proceeds to consider various alternatives, including other acquisitions elsewhere in North America and an acceleration of our debt reduction program," added Weaver.
For complete news Go to http://www.abicon.com/
Boise Cascade Announces Closure of Plywood, Lumber Operations in Idaho
BOISE, Idaho, Feb. 13 /PRNewswire/ -- Boise Cascade Corp. (NYSE: BCC) announced today the permanent closure of the company's plywood and lumber operations and cogeneration facility in Emmett, Idaho, and its sawmill in Cascade, Idaho. The facilities will close by midyear 2001, said George J. Harad, Boise Cascade's chairman of the board and chief executive officer, who cited the steady decline in federal timber sales as the cause of the closures.
"I am very disappointed that we are forced to take this step," Harad said. "Idaho is the corporate home of Boise Cascade. The Idaho Region of our building products business has been a profitable contributor to our company. Our mills in the region have long been a vital mainstay of rural communities in southern Idaho. However, we simply no longer have an adequate and reliable supply of timber from Idaho's federal forests with which to operate our mills. We deeply regret the hardship that this decision will create for our employees and the burden it will place on the communities in which they live."
For complete news Go to http://www.prnewswire.com/
Fraser Papers Consolidates Midwest Paper Operations
Feb 13, 2001 Stamford, CT—February 13, 2001--Fraser Papers Inc., a subsidiary of Toronto-based Nexfor Inc., announced today the consolidation of its mid-west U.S. paper operations. Fraser will manufacture its premium text, cover, and commercial papers; trade book papers and specialty grades at its Park Falls Operations in Wisconsin. Fraser will permanently close its West Carrollton, Ohio mill on March 9, 2001. The rationalization of the company’s Midwest paper business will result in the elimination of 105,000 tons of annual production and the loss of 305 jobs at West Carrollton. According to Bert Martin, President of Fraser Papers, the restructuring is part of a series of aggressive margin improvements aimed at eliminating unprofitable commodity paper grades in an oversupplied market. “Sizing our Midwest paper manufacturing capacity according to market demand is essential to running a profitable business,”
Mr. Martin said. “While we regret having to close a paper mill, we are convinced that this will make our Midwest Operations stronger for the long term.” The Fraser Park Falls Operations are highly integrated with an on-site sulfite pulp mill and de-inking facility. Recently, Fraser invested $4 million to improve the pulp mill and manufacture higher-brightness paper grades. The paper mill has an annual production capacity of 130,000 tons. Fraser Customer Service Operations supporting its Midwest Operations will be relocated from West Carrollton, Ohio to the Fraser International Distribution Center (IDC) in West Chicago, Illinois. In addition, Fraser is consolidating all sheeting to the IDC to ensure expedited service to customers. “We have a transition team in place and a detailed plan for this consolidation,” stated John Pettit, Vice President of Merchant Distribution Sales. “Our Park Falls Operations have proven capable of making every paper grade previously manufactured at the West Carrollton mill. During the transition period, we are confident about maintaining our high standards of quality and customer service.” Fraser’s Eastern pulp and paper operations at Thurso, Quebec; Edmundston, NB and Madawaska, Maine are not affected by the restructuring. These operations are focused on producing highly specialized paper grades for publishers, high-volume printers and specialty paper and packaging converters. Fraser Papers is a leading manufacturer of printing, publishing and converting papers based in Stamford, Connecticut.
The company operates 12 paper machines at three mills in New Brunswick, Maine, Wisconsin and its International Distribution Center in Illinois. Fraser also manufactures specialty pulp at its mill in Thurso, Quebec. A highly integrated paper company, Fraser owns or manages more than two million acres of forest land. Fraser operates an advanced tree nursery in New Brunswick, sawmill operations in Canada and Maine, and virgin and/or de-ink pulp facilities at all paper mill locations. Fraser Papers is widely known for light and ultra-lightweight publishing grade; text, cover and commercial papers; and a wide range of highly specialized converting grades.
For other news Go to http://www.fraserpapers.com
Asia Pulp & Paper's Parent Fails To Pay a $23.4 Million Bank Claim
JAKARTA, Indonesia -- Sinar Mas Group, the parent company of Asia Pulp & Paper Co., failed to pay an interbank claim due Friday to its former group-owned Indonesian bank, adding to concerns over its short-term liquidity crunch.
An official at the Indonesian Bank Restructuring Agency, which has taken a controlling stake in the bank, said Sinar Mas Group had asked for more time to pay the 220 billion rupiah ($23.4 million) claim. The interbank claim is in addition to the 11.282 trillion rupiah in loans owed by Sinar Mas to PT Bank International Indonesia , which IBRA agreed to guarantee.
For complete news Go to http://public.wsj.com/
International Paper Announces Permanent Closure of Two Lumber Mills
COSTIGAN, Maine, Feb. 8 /PRNewswire/ -- International Paper's Lumber Products business today announced the permanent closure of its Passadumkeag and Costigan, Maine, Lumber operations, with a chipper operation to continue at the Costigan site for an indefinite period of time. This action is being taken due to market conditions characterized by prices at their lowest level in more than a decade and the impact of lumber imports. Also, the facilities cannot be operated profitably long-term without major investment. The formal closure of the two lumber operations is expected to occur in mid-April, 2001.
"This was an extremely difficult decision because it affects 263 of our team members. The closures are in no way a reflection of their hard work and dedication over the years and we will be doing all we can to help them through this transition," said Art McGowen, IP's vice president of Lumber Products. "We will be assisting employees on how to obtain unemployment and other benefits. Also, personal and family counseling will be available through our Employee Assistance Program."
For complete news Go to http://investor.internationalpaper.com
Uniforêt Announces Downtime at its Port-Cartier Pulp Mill
SAINT-LEONARD, Québec, Feb. 6 /CNW/ - Uniforêt has announced that production at its Port-Cartier pulp mill will be suspended from February 16 until March 12, 2001. This measure is necessary because of the temporary slowdown in demand for commercial pulp on the worldwide market. The 25- day halt will reduce production by some 14,000 metric tonnes, which is 7% of the pulp mill's total estimated output for 2001.
Uniforêt Inc. is an integrated forest products company that manufactures softwood lumber and bleached chemi-thermomechanical pulp (BCTMP). The company operates in Quebec through its subsidiaries located in Port-Cartier (pulp mill and sawmill) and in the Péribonka region (sawmill). Uniforêt Class A Subordinate Voting shares are listed on the Montreal and Toronto stock exchanges under the symbol UNF.A, along with Series A Debentures under the symbol UNF.DB.
For complete news Go to http://www.newswire.ca
Eastman, Hercules Reach Agreement on Resins Business Transaction
Kingsport, Tenn., Feb. 5, 2001--Eastman Chemical Company (NYSE:EMN) and Hercules Incorporated (NYSE:HPC) today announced they have reached agreement related to Eastman's acquisition of Hercules' hydrocarbon resins business and select portions of its rosins resins business.
Company officials said they expect to complete negotiation of customary agreements and to close the transaction by the end of the first quarter. The terms and definitive acquisition agreement will be subject to approval by the boards of directors of both companies. Financial terms are not being disclosed.
For complete news Go to http://www.eastman.com
Eastman Chemical Company to Become 2 Independent Companies
To Enhance Shareholder Value
Each Company with Specific Strategies For Faster Growth, Greater Business Focus
Kingsport, Tenn., February 5, 2001--Eastman Chemical Company (NYSE: EMN), a leading manufacturer and marketer of chemicals, fibers and plastics, announced today that its Board of Directors has authorized management to pursue a plan that would result in the company becoming two independent public companies.
· The "Specialty Chemicals and Plastics" company will be a world leader in specialty chemicals and plastics, with a strong focus on providing customer solutions. It would include Eastman's presence in coatings, adhesives, inks, specialty polymers and plastics, and intermediates products. Eastman's digital business ventures, including ShipChem, Inc., as well as the investment in Genencor International, would be part of this new entity.
For complete news Go to http://www.eastman.com
Recycle Website Goes to Free Auctions
Neither Buyers Or Sellers Will Be Required To Pay Commission Fees
February 1, 2001, RecycleAuction.com, which premiered in November 2000, has become the exclusive commission free, no fee trade exchange for the entire recycling industry. After a successful three-month testing period resulting in over 10,000 unique users per month, the President of RecycleAuction.com, Clifford Salm, announced that the enormous response to the website has triggered the redevelopment of RecycleAuction.com’s income structure. Salm, a third generation recycler, says that the idea of dropping the auction commission fees was part of the original concept. However, following the tremendous response of member registration and consistent monthly growth of web statistics, the change over from fee based to banner advertising endorsements is being moved forward, faster than anticipated. "We have been approached by members for ad space ever since our initial startup," Salm stated, "but our business plan called for limited ads for the first 12 months, until our statistics could justify advertiser investment."
RecycleAuction.com predicts a three to four fold increase in traffic, since many entities such as municipalities, large corporations and charities were unable to work around the parameters of fee based auctions. By removing commission fees and limited access between buyers and sellers, the auction site will become a wide open trade exchange. Buyers will now be able to directly contact sellers for samples, pre-inspections or additional information prior to bidding. Other changes to the website have included automatic email notification of newly created auctions and the ability of the buyer to counter bid for materials which they believe exceed current market price.
Avery Dennison Acquires Dunsirn Industries
Leading supplier of customized label materials will provide growth opportunities in new markets for Company's Fasson Roll Division
PASADENA, Calif. - February 1, 2001 - Avery Dennison Corporation (NYSE/PCX:AVY) announced today that it has acquired Dunsirn Industries, Inc., a privately held company based in Neenah, Wisconsin, which is a leading provider of non-pressure-sensitive materials to the narrow web printing industry, as well as customized slitting and distribution services for roll materials manufacturers.
"The acquisition of Dunsirn Industries provides an excellent strategic growth opportunity for our roll materials business," said Philip M. Neal, chairman and chief executive officer of Avery Dennison. "As we look to expand our label materials business into markets beyond pressure-sensitive applications, Dunsirn's core competencies are a powerful complement to our capabilities."
Dunsirn Industries provides high-quality, contract slitting and distribution services for paper, film, textile, nonwoven and specialty roll materials. The company also is a leading provider of materials used by narrow web printers for production of non-pressure-sensitive tags and labels.
In 2001, Avery Dennison expects to generate approximately $60 million in net reported sales from this acquisition.
For complete news Go to http://www.averydennison.com
Abitibi-Consolidated earns $147 Million in the fourth quarter and $367 million for the year
- Revenues of $5.7 billion in 2000
- EBITDA margins of 26.7% in 2000
- Operating profit of over $1 billion in 2000
- Net earnings of $367 million in 2000
- Earnings per share of $0.96 in 2000
- Annualized synergy run rate of $168 million achieved at year
end
For complete news Go to http://www.newswire.ca/
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