| PAPER INDUSTRY NEWS - JANUARY 2002 |
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This page contains pulp and paper industry news for January 2002
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NEWS JANUARY 2002
Mead and Westvaco Complete Merger Creating Strong Global Organization
MeadWestvaco Begins Trading Under the Symbol MWV Opening Bell Ceremony at New York Stock Exchange Marks Start of Trading
STAMFORD, CT - January 30, 2002 - The Mead Corporation (formerly NYSE: MEA) and Westvaco Corporation (formerly NYSE: W) today announced the completion of a merger of equals. MeadWestvaco Corporation will trade under the ticker symbol MWV on the New York Stock Exchange. The merger was announced on August 29, 2001, and was approved by the shareholders of both companies on January 28, 2002.
MeadWestvaco has approximately $8 billion in annual revenues and exceptional global platforms in the company's four core businesses - packaging, coated and specialty papers, consumer and office products, and specialty chemicals.
"With MeadWestvaco, we are creating an exceptional new company," said Jerry Tatar, Chairman. "We have leading positions in our core businesses, a value-added orientation for our business portfolio, world-class assets and a highly modern and efficient infrastructure."
For complete news Go to http://www.meadwestvaco.com
KRUGER AND SGF REXFOR INVEST ADDITIONAL $100 MILLION
TO PURCHASE A NEW COATED PAPER MACHINE FOR THE KRUGER WAYAGAMACK MILL TOTAL COST OF THE PROJECT: $493 MILLION
Trois-Rivières, Tuesday, January 29, 2002 – Today the Minister of State for the Regions and Minister of Industry and Commerce, Mr. Gilles Baril; the Chairman and C.E.O. of Kruger Inc., Mr. Joseph Kruger II; and the Chairman, President and C.E.O. of SGF, Mr. Claude Blanchet, in the presence of the Minister of Revenue and M.P. for Trois-Rivières, Mr. Guy Julien, announced an additional $100 million investment for the purchase and installation of a new ultramodern and high-production coated paper machine at the Kruger Wayagamack mill, which is 51 percent owned by Kruger Inc. and 49 percent by SGF Rexfor.
Added to the $300 million investment announced last May to revive the mill, the extra funding – which will create 110 new jobs and consolidate the 475 existing jobs – brings the total of the modernization program to some $400 million. Including the initial purchase price, interest capitalized, financing and closing costs and working capital, project costs now total $493 million.
For complete news Go to http://www.kruger.com/
WEYERHAEUSER COMPANY AND WILLAMETTE INDUSTRIES SIGN DEFINITIVE MERGER AGREEMENT
Combination Creates $19 Billion Forest Products Leader
FEDERAL WAY, Wash. and PORTLAND, Ore., January 28, 2002 -- Weyerhaeuser Company (NYSE: WY) and Willamette Industries, Inc. (NYSE: WLL) today announced that the two companies have entered into a definitive merger agreement under which Weyerhaeuser will acquire all of the outstanding shares of Willamette for $55.50 per share in cash, giving the transaction a total equity value of approximately $6.2 billion. Weyerhaeuser will also assume approximately $1.7 billion of Willamette debt.
Under the terms of the agreement, Weyerhaeuser's wholly owned subsidiary, Company Holdings, Inc., has increased the price of its tender offer to purchase all outstanding shares of Willamette common stock to $55.50 per share in cash. Willamette's Board of Directors has unanimously approved the tender offer and the merger and recommended that Willamette shareholders tender their shares into the offer. Following the completion of the tender offer, Weyerhaeuser intends to consummate a second step merger in which all remaining Willamette shares will be converted into the right to receive the same cash price paid in the tender offer.
For complete news Go to http://www.wii.com/
Kimberly-Clark Reports Fourth Quarter 2001 Results, Net Profit Down 20%
DALLAS, January 24, 2002—Kimberly-Clark Corporation (NYSE: KMB) today reported that sales for the fourth quarter of 2001 were approximately $3.7 billion, an increase of 2.0 percent compared with 2000. Excluding currency effects, sales rose about 3 percent. Diluted net income per share for the fourth quarter was 68 cents in 2001 compared with 85 cents in 2000, a decrease of 20.0 percent.
For complete results Go to http://investor.kimberly-clark.com
Norampac Completes Another US Acquisition, Purchasing Star Container Corporation of Leominster, Massachusetts
MONTREAL, Jan. 23 /CNW/ - Norampac Inc., through its wholly-owned subsidiary Norampac Holding US Inc., completed the acquisition of the corrugated products converting plant of Star Container Corporation. ("Star").
With annual production of over 1 billion square feet and 250 employees, the plant has a well-established customer base, state-of-the-art equipment, experienced personnel and provides a wide range of products and services. The company, located in Leominster, near Boston, will operate under the name of "Star Leominster Inc".
For complete news Go to http://www.newswire.ca
Weyerhaeuser Reports Fourth Quarter Loss of US$15 Million On Net Sales of $3.4 Billion
FEDERAL WAY, WA, Jan. 23 /CNW/ - Weyerhaeuser Company (NYSE: WY) today announced a fourth-quarter loss of $15 million, or a loss of 7 cents per share. This compares with earnings of $194 million, or 88 cents per share, for the same period last year.
The 2001 fourth quarter results include a previously announced nonrecurring $20 million after-tax charge, or 9 cents per share, associated with the closure of three wood products facilities.
Net sales for the fourth quarter were $3.4 billion compared with $4.0 billion last year.
For complete news Go to http://www.newswire.ca
WILLAMETTE REACHES AGREEMENT IN PRINCIPLE FOR SALE TO WEYERHAEUSER FOR $55.50 PER SHARE IN CASH
Ends Negotiations With Georgia-Pacific
PORTLAND, ORE. -- Jan. 21, 2002 Willamette Industries (NYSE: WLL) today announced that it has reached an agreement in principal for the sale of Willamette to Weyerhaeuser (NYSE:WY) for $55.50 per share in cash, subject to negotiation of a definitive merger agreement. The Company also announced that negotiations with Georgia-Pacific Corp. (NYSE: GP) have ended. The Weyerhaeuser agreement will be considered at a Willamette Board meeting expected to be convened prior to the end of January.
Willamette Industries is an integrated forest products company with 106 plants, located in the U.S., France, Ireland and Mexico. The Company owns 1.7 million acres of forestland in the U.S. and manages it sustainably to produce building materials, composite wood panels, fine paper, office paper products, and corrugated packaging and grocery bags.
For complete news Go to http://www.wii.com/
Mead Reports 4Q Loss
01/18/2002 Mead reported a net loss of $25.9 million or 26 cents per share in the fourth quarter of 2001, compared to net earnings of $16.7 million or 17 cents per share for the same period in 2000.
Excluding the impact of special items, fourth quarter 2001 earnings were $1.0 million or 1 cent per share versus $18.7 million or 19 cents per share for the prior year quarter. Fourth quarter 2001 special items included a pretax charge of $41.7 million or 27 cents per share loss due to the previously announced sale of assets and related paper machine shutdown at the Devon Valley mill, the sale of Gilbert Paper and related mill closure, costs associated with the proposed merger with Westvaco Corporation and other charges.
For complete results Go to http://www.mead.com/
NWBC Withdraws Offer for Skeena Cellulose Inc.
VANCOUVER, Jan. 18 /CNW/ - NWBC Timber and Pulp Limited today announced that it has withdrawn its $150 million restructuring plan offer for Skeena Cellulose Inc. (SCI).
Daniel Veniez, NWBC's President and Chief Executive Officer said that the company is "satisfied that all reasonable avenues have been thoroughly explored". By renewing the exclusivity arrangement with the same party that it has been in negotiations with since last October, the Ministry of Competition, Science and Enterprise has effectively closed the door to other alternatives, the company stated.
For complete news Go to http://www.newswire.ca
Willamette 4Q Profits Drop on Weak Demand
PORTLAND, Ore., Jan. 17 /PRNewswire-FirstCall/ -- Willamette Industries (NYSE: WLL) today reported financial results for the fourth quarter and full year ended December 31, 2001.
Net earnings for the 2001 fourth quarter were $45.6 million, or $0.41 per diluted share, down from 2000 fourth quarter earnings of $86.0 million, or $0.78 per diluted share. Net earnings for the full year 2001 were $248.8 million, or $2.26 per diluted share, down from full year 2000 results of $344.9 million, or $3.12 per diluted share.
Sales for the 2001 fourth quarter were $1.1 billion, and full year 2001 sales were $4.5 billion, down slightly from full year 2000 sales of $4.7 billion.
Boise Cascade Posts $41.7M Net Loss
BOISE, Idaho, Jan. 17 /PRNewswire-FirstCall/ -- Boise Cascade Corp. (NYSE: BCC) today reported 2001 net income of $46.8 million, or 57 cents per diluted share, before nonroutine items, compared with $121.3 million, or $1.80 per diluted share, before nonroutine items, in 2000. Including nonroutine items, the company recorded a 2001 net loss of $42.5 million, or 96 cents per diluted share, compared with earnings of $178.6 million, or $2.73 per diluted share, in 2000.
For complete news Go to http://www.prnewswire.com
Albany International Announces Restructuring of Italian Facilities
ALBANY, N.Y., Jan. 7-- Albany International Corp. (NYSE: AIN; PSE) announced today the intention of its affiliate Albany International Italia S.p.A. (formerly known as Feltrificio Veneto S.p.A.) to discontinue production of Paper Machine Clothing (PMC), Felts for Fiber Cement machines and Engineered Fabrics at locations in Marghera and Pieve Fissiraga, Italy. Production of certain fabrics for use outside of the paper industry will continue.
This restructuring follows similar steps taken by the Company and its affiliates in North America, and is part of a global effort to match capacity to the consolidating global paper manufacturing industry.
For complete news Go to http://www.shareholder.com
Gaylord Confirms Temple-Inland Deal is Dead
DEERFIELD, Ill., Jan 9 - Brown paper packaging firm Gaylord Container Corp. on Wednesday confirmed that Temple-Inland Inc. had pulled out of a proposed merger between the two companies because not enough shares were tendered.
On Tuesday Temple-Inland said it had pulled out of its proposed $841 million bid for Gaylord, which included $70 million in cash and $771 million in assumed debt, after some shareholders had failed to accept the offer.
International Paper to Eliminate 100,000 Tons of Containerboard Capacity and 350 Jobs
STAMFORD, Conn., Jan 7, 2002 /PRNewswire via COMTEX/ -- International Paper (NYSE: IP) today announced that as part of on-going optimization efforts, the company's Industrial Packaging Group will eliminate 350 jobs and reduce its containerboard capacity by 100,000 tons.
The Oswego, N.Y., containerboard mill will be shut down by the end of January 2002, eliminating 102 jobs and 100,000 tons of linerboard, medium and kraft papers capacity. All of these tons will be transferred to other company locations within the Industrial Packaging mill system.
In addition, 250 jobs will be eliminated across the other mills as processes are being modified to take advantage of new technologies and facility rationalizations. The majority of those reductions will occur at the Savannah, Ga., mill, where 150 people will be affected by the reconfiguration of facility assets.
For complete news Go to http://investor.internationalpaper.com/
Willamette Boards Rejects Weyerhaeuser Offer, but Authorize Continued Discussion with G-P.
PORTLAND, ORE. -- Willamette Industries (NYSE: WLL) today announced that, following an evaluation of its strategic alternatives, its Board has determined to continue negotiations with Georgia-Pacific Corp. (NYSE: GP) regarding a combination of both companies’ building materials businesses. The Board also announced that it would reject the $55 per share offer by Weyerhaeuser Company (NYSE: WY) as inadequate and terminate discussions with Weyerhaeuser regarding its offer. The Board strongly urges Willamette shareholders not to tender any shares to Weyerhaeuser.
Chairman of the Board, William Swindells, said, "Following close examination of our options, the Board has decided that a transaction with Georgia-Pacific will deliver significant value to Willamette and is in the best interests of our shareholders. During our discussions with Weyerhaeuser and its advisors, we made a good faith effort at establishing a constructive dialogue and provided information regarding synergies, which we estimate to be in excess of $400 million. However, it became clear to us that Weyerhaeuser would not consider our new information and were not willing to increase their offer, which we continue to believe is inadequate."
For complete news Go to http://www.wii.com
Bowater Combines Canadian Subsidiaries
GREENVILLE, S.C.--(BUSINESS WIRE)--Jan. 2, 2002--Bowater Incorporated (NYSE:BOW - news) today announced that on January 1, 2002, it combined the operations of two of its wholly-owned subsidiaries, Bowater Pulp and Paper Canada Inc. and Bowater Canadian Forest Products Inc. (formerly Alliance Forest Products Inc.) in an amalgamation to achieve certain business and tax efficiencies. The combined company will be called ``Bowater Canadian Forest Products Inc.
'' 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 12 pulp and paper mills in the United States, Canada and South Korea and 13 North American sawmills that produce softwood and hardwood lumber. Bowater also operates a facility that converts a groundwood base sheet to coated products. After the sale of the Southeast timberlands this quarter, Bowater's operations will be supported by approximately 1.5 million acres of timberlands owned or leased in the United States and Canada and 32 million acres of timber cutting rights in Canada. Bowater 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.
For further information Go to http://www.bowater.com
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