| PAPER INDUSTRY NEWS - JULY 2000 |
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This page contains pulp and paper industry news for July 2000
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NEWS JULY 2000
Domtar Completes the Acquisition of Ris Paper Company, Inc.
MONTREAL, July 31 /CNW-PRN/ - Domtar Inc. is pleased to announce today that it has completed the acquisition of Ris Paper Company, Inc., one of the largest independent merchants of commercial printing and business papers in the United States. Ris sales will be consolidated with those of Domtar as of August 1st, 2000. Ris sales in 1999 were approximately US$600 million.
For complete news Go to http://www.domtar.com/
Jefferson Smurfit Acquires in Argentina
DUBLIN, July 31, 2000--Jefferson Smurfit Group plc (the ``Group'' or ``JSG''), today announced that Smurfit Argentina SA, a subsidiary of the Group, has acquired Fabrica Argentina de Carton Corrugado (``Facca''), an Argentinean corrugated producer. The total consideration for the Facca acquisition is US$ 10 million which includes assumed debt.
The operations of Facca comprise one corrugated plant with an annual production capacity of 40,000 tonnes. 2000 sales for Facca are projected to be US$ 28 million. The Argentinean corrugated market represents 470,000 tonnes per annum. JSG currently has 1 mill and 2 corrugated facilities in Argentina which produced 40,000 tonnes of containerboard and 30,000 tonnes of corrugated respectively in 1999. Following this acquisition, JSG will command a 13% market share.
Smurfit Latin America, Chairman and CEO, Dr. Alan Smurfit, said ``this acquisition effectively doubles our existing share of the Argentinean corrugated market and is consistent with the objective of developing strong market positions in each of the countries in which we operate.''
Jefferson Smurfit Group ADRs, each equal to ten ordinary shares, trade on the New York Stock Exchange under the ticker symbol JS. Jefferson Smurfit Group ordinary shares trade in Dublin and London, and information can be accessed on Bloomberg under the symbols SMFT.ID and SMFT.LN respectively and on Reuters under SMFT.I and SMFT.L. Additional information is available on Jefferson Smurfit Group's home page: http://www.smurfit.ie.
Sappi Increases EPS by 105% for 3Q
JOHANNESBURG, South Africa, July 31, 2000--With continuing strong demand for its products, global pulp and paper group Sappi doubled earnings per share before exceptional items to US cents 39 (R2.66) for the third quarter to June 30, 2000 compared to the same period last year, and by 22 percent compared to the March 2000 quarter.
For complete news Go to http://www.sappi.com/
Largest acquisition in Norway's history completed today:
Norske Skog on five continents
Friday July 28, Norske Skog has today, closed the acquisition of the New Zealand-based paper and pulp company Fletcher Challenge Paper (FCP) for NOK 21 billion. This is the largest acquisition any Norwegian company has ever made outside Norway.
-Through the acquisition of FCP we have doubled our customer base and laid the foundation for a significant increase in the company's value. This move gives Norske Skog a unique market position in the most important growth markets for newsprint and magazine paper, says CEO Jan Reinås. Norske Skog is now the largest manufacturer of newsprint in South America, Australasia and Asia, number two in Europe and number five in North America.
For complete news Go to http://www.norskeskog.com/
Abitibi-Consolidated Earning Up 20%, Donohue Acquisition Immediately Accertive
MONTREAL - July 27, 2000 - Abitibi-Consolidated reported second quarter net earnings today of $61 million, or 15 cents per fully diluted common share. This is an improvement of $10 million when compared with the first quarter of 2000 and $26 million when compared to the second quarter of 1999.
"The acquisition of Donohue has been immediately accretive to our bottom line," said President and Chief Executive Officer, John Weaver. " It has lowered our costs in a time of increasing prices for our pulp and paper products. These are the tightest newsprint markets we've seen since 1995. We've announced an additional US$50/MT newsprint price increase for September 1st. We are progressing quickly on our three biggest priorities: Integrating the two companies, realizing the $250 million in annualized synergies and closing our highest-cost capacity. The outlook for the Company's cash flows and earnings is extremely positive."
For complete news Go to http://www.abicon.com/
Stora Enso Extraordinary General Meeting on 18 August 2000
[Jul. 27, 2000] At its meeting on 26 July 2000 the Stora Enso Board of Directors resolved to call an Extraordinary General Meeting on 18 August 2000 to approve the agreement and planned merger between Stora Enso and Consolidated Papers, Inc. that would result in the acquisition of Consolidated Papers, Inc. by the Stora Enso Group.
In addition, at the EGM the Board of Directors will propose that the EGM approve the subscription of new shares for the acquisition of Consolidated Papers, Inc. and authorize the Board of Directors to grant option rights to the personnel of Consolidated Papers, Inc. to replace the current option schemes of Consolidated Papers, Inc. for its personnel.
For complete news Go to http://www.storaenso.com/
Cascades Inc. Doubles its Net Earnings
Kingsey Falls (Quebec), July 27, 2000 --- Cascades Inc. (CAS, TSE) announces that it has doubled its net earnings for the second quarter 2000 principally due to the strong performance of its core business of packaging products. Net earnings totalled $24 million, or $0.36 per share, compared with $12 million, or $0.20 per share, for the corresponding quarter in 1999. Net earnings for the second quarter were more than twice those recorded during the first quarter 2000, at $11 million, or $0.16 per share. Net sales increased by 13%, from $635 million during the second quarter of 1999 to $717 million during the same period in 2000. Net earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $89 million for the quarter ended June 30, 2000, compared with $80 million one year ago.
For full details Go to http://www.cascades.com/
Crown Vantage Enters Into Letter of Intent To Sell Substatially All Of Its Assets
July 26, 2000 -- and its wholly owned subsidiary Crown Paper Co. announced today that Crown Paper has signed a Letter of Intent with Crown Acquisition Corporation ("CAC") for the sale to CAC or its designee (the "Purchaser") of substantially all of the assets of Crown Paper.
The consideration for the acquisition of the assets to be purchased is $375.9 million in cash, the assumption of approximately $39 million of industrial development bonds, an option to purchase at the closing 10% of the equity of the Purchaser at the same price and on terms consistent with that being paid by CAC’s co-investors in the Purchaser, and seven year warrants to purchase 5% of the equity of the Purchaser at an exercise price of three times the price being paid by such co-investors. In addition, if the Purchaser subsequently sells certain assets above a threshold level, under certain specific conditions, Crown Paper will be entitled to share in the proceeds of any such sale. The Purchaser has also agreed to assume certain liabilities of Crown Paper arising after the filing of the Chapter 11 case.
For complete news Go to http://www.crownvantage.com/
Productivity Improvement at Paperboard Industries International
Montréal (Québec), July 25, 2000 --- Paperboard Industries International inc. (" Paperboard ") has benefited from its continuous improvement plan by establishing higher productivity levels for premium quality boxboard in the majority of its plants during the second quarter of 2000. Combined with an important turnaround at the FjordCell kraft pulp mill as well as the posting of a $3M, gain before non-controlling interests, representing part of the conditional amounts to be received following the sale of its 50% interest in the Tartas.S.A. pulp mill, Paperboard reduced its net loss of $7.8M or $0.17 per share for the first quarter of 2000 to $1.5M or $0.04 per share for the second quarter of 2000. It also represents an improvement of $1.2M over the net loss of $2.6M or $0.06 per share recorded during the second quarter of 1999. The positive effects resulting from the gradual increases in boxboard selling prices have been counterbalanced by a significant rise in the cost of recycled fibres and market pulp, particularly in Europe.
For complete news Go to http://207.253.165.185
Rising Sales and Operating Margin Boosted Kimberly-Clark's Second Quarter Earnings From Operations to a Record 81 Cents Per Share, an Increase Of 12.5 Percent Compared With 1999
Sales Jumped 10 Percent on the Strength of Double-Digit Volume Growth; EPS From Operations Grew at Double-Digit Rate for Eighth Consecutive Quarter
DALLAS, July 25 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today reported that new and improved products and global expansion of its core businesses lifted sales in the second quarter of 2000 to $3.5 billion, an increase of 10.0 percent compared with 1999. Driven by the sales gain and continuing success in reducing costs, the company's operating margin, before unusual items, improved to 18.7 percent. Second quarter earnings from operations of 81 cents per share rose 12.5 percent from 72 cents per share in 1999, setting an all-time quarterly record.
For complete news Go to http://www.prnewswire.com
Rayonier Reports Higher Second Quarter 2000 Earnings
JACKSONVILLE, Fla.--(BUSINESS WIRE)--July 24, 2000--Rayonier (NYSE:RYN - news) today reported second quarter 2000 net income of $17.4 million, or 63 cents per share, compared to second quarter 1999 earnings of $17.1 million, or 60 cents per share. The improvement was primarily due to stronger fluff pulp pricing and volume and higher U.S. Northwest timber prices which more than offset increased interest expense associated with the company's October 1999 Smurfit timberlands acquisition.
For complete news Go to http://206.105.0.64/ray
Abitibi-Consolidated Announces Another Step in Capacity Rationalization Program
MONTREAL, July 21 /CNW/ - Abitibi-Consolidated Inc. announced today the closure of its 130,000 tonne West Tacoma, Washington newsprint mill at year-end. In addition, the Company announced the planned closure of its 50,000 tonne value-added paper machine number 1 at its Wayagamack mill in Trois-Rivières, Québec at the beginning of 2001.
"We are moving quickly to accomplish all of the objectives announced with the acquisition of Donohue - synergy achievement, low-cost structure and capacity rationalization," said President and Chief Executive Officer, John Weaver. "The permanent closure of West Tacoma will remove 130,000 tonnes of high-cost newsprint capacity, bringing us one-third of the way towards the permanent removal of our stated goal of 400,000 tonnes of high-cost newsprint capacity."
For complete news Go to http://www.abicon.com
Willamette Reaches Settlement in Air Emission Issues
PORTLAND, Ore., July 20 /PRNewswire/ -- Willamette Industries (NYSE: WLL) today announced that it has reached an agreement with the U.S. Department of Justice resolving Clean Air Act issues relating to some of Willamette's composite panel and plywood plants.
"We have been cooperating with federal agency representatives for the past two years to resolve certain historic air permit questions," said Duane McDougall, Willamette's chief executive officer. "As part of the settlement agreement we will install air emission controls that are well beyond what is required and are the best available today. Our goal has always been to minimize our impact on the environment and this agreement is consistent with that goal, positioning us well to meet future air quality requirements."
For complete news Go to http://www.prnewswire.com
Abitibi-Consolidated Signs Letter of Intent to Sell its Chandler, Québec Mill
MONTREAL, July 19 /CNW/ - Abitibi-Consolidated Inc. announced today that the Company has signed a letter of intent with a consortium comprised of SNC-Lavalin Inc., le Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Clermont Lévasseur to sell its Chandler, Québec mill for $35 million before taxes.
For complete news Go to http://www.abicon.com/
Consolidated Papers, Inc. to Reduce Workforce Approximately 10% as Part of Previously Announced Cost-Reduction Initiative
WISCONSIN RAPIDS, Wis. July 19, 2000– Consolidated Papers, Inc. (NYSE: CDP) today announced that it will reduce its total workforce by approximately 10%, or about 700 employees companywide. The reduction, which has already begun, is anticipated to be about equally divided between hourly and salaried employees companywide.
The workforce reduction is part of a two-year, more than $100 million cost-reduction initiative begun in 1999 to make Consolidated Papers more competitive in the global paper industry. To date, Consolidated Papers has already achieved more than $60 million in savings through more efficient use of raw materials, productivity, quality gains and reduction in personnel costs. The workforce reduction announced today, combined with additional productivity improvements, supply-chain management activities and customer service initiatives, will reduce the company's costs at least $40 million by year's end.
For complete news Go to http://www.consolidatedpapers.com
American Israeli Paper Mills and Vivendy Group Company Complete Purchase of Tamam
HADERA, Israel, July 19 /PRNewswire/ -- Yaacov Yerushalmi, Chairman and CEO of American Israeli Paper Mills Ltd. (Amex: AIP - news; AIPM), announced today that the transaction between AIPM and CGEAI (a company within the Vivendy Group of France), the shareholders of Amnir Industries and Environmental Services Ltd. (Amnir) with Tamam Integrated Recycling Industries Ltd. (Tamam) and its controlling shareholders was completed.
According to the agreement between the parties, AIPM and CGEAI purchased, through a joint company, Barthelemi Holdings Ltd., 62.5% of the shares of Tamam from its controlling shareholders in return for a payment of $15.85 million.
In addition, according to the agreement, a merger between Amnir and Tamam took place through the issuance of 35.3% of the shares of the merged company (Amnir and Tamam) to Amnir's shareholders.
The holdings of CGEAI and AIPM, directly and indirectly, in Tamam as a result of the transaction is 75.7%
The equity ratio is 51% to CGEAI and 49% to AIPM.
Weyerhaeuser Second Quarter Net Earnings Increase 24 Percent From Last Year to $203 Million on Net Sales of $4.2 Billion
FEDERAL WAY, Wash. — Weyerhaeuser Company (NYSE: WY) today reported that net earnings for the second quarter of 2000 increased 24 percent to $203 million, or 89 cents per share, from $164 million, or 82 cents per share, for the same period last year.
For complete news Go to http://www.weyerhaeuser.com/
American Pad & Paper Signs LOI for Sale of Williamhouse Div.
DALLAS, Texas, July 17, 2000, -- American Pad & Paper Company (OTCBB:AMPPQ) (AP&P) announced today that it has signed a Letter of Intent with Saratoga Partners for the sale of the assets of its Williamhouse division. The sale is subject to a number of conditions including execution of a definitive sale agreement and bankruptcy court approval.
For complete news Go to http://www.d-press.com/
Georgia-Pacific To Acquire Fort James, Become World’s Largest Tissue Maker; Other Key Portfolio Actions To Transform Georgia-Pacific
ATLANTA, Georgia. July 17, 2000 -- Georgia-Pacific Corp. and Fort James Corp. (NYSE: FJ) announced today that the boards of directors of both companies have signed a definitive merger agreement for Georgia-Pacific to acquire all outstanding shares of Fort James in a transaction valued at approximately $11 billion.
Georgia-Pacific said the announcement continues a series of major strategic actions aimed at strengthening its position as a high value-added paper and building products company. Georgia-Pacific Group (NYSE: GP) will be the world’s leading manufacturer of tissue products when the transaction is completed.
For complete news Go to http://www.gp.com/
Bowater to Purchase Newsprint South Paper Mill
14 July 2000, Greenville, S.C. Bowater Incorporated (NYSE:BOW - news) announced today that it has agreed to acquire the Newsprint South, Inc. paper mill, located in Grenada, Mississippi, from GE Capital Structured Finance Group (SFG) and shareholders. The Newsprint South mill has an annual production capacity of approximately 250,000 metric tons of newsprint. Built in 1989, the mill has one of the lowest operating costs of any newsprint mill in the United States. The mill complements Bowater's strong presence in the Southeastern U.S. and will allow the company to expand in the Southwest. The agreement provides for a cash purchase price of $370 million and the assumption of $8.9 million in debt.
For complete news Go to http://www.bowater.com/
Enron to Buy Garden State Paper, Add Products to Existing Online Pulp & Paper Business
Thursday, July 13, 2000 HOUSTON -- Enron North America Corp., a wholly owned subsidiary of Enron Corp., announced today that it has reached an agreement, subject to government approvals and other conditions, to purchase Garden State Paper Company, Inc. for $72 million. Garden State Paper, a subsidiary of Media General, is a recycled newsprint mill located in Garfield, N.J.
For complete news Go to http://www4.enron.com/
Willamette Announces Improved Second Quarter Earnings
PORTLAND, Ore., July 13 /PRNewswire/ -- Willamette Industries (NYSE: WLL) today announced net earnings of $90.2 million or $.82 per diluted share, including charges against earnings for the closure of its Dallas, Oregon, plywood plant and an estimate of the final cost of settlement for federal Clean Air Act allegations involving Willamette's building material operations. The total amount of charges was $5.1 million before taxes. Results were up 44% from second quarter 1999 net earnings of $63.3 million, or $.57 per diluted share and up 8% from first quarter 2000 net earnings of $.76 per diluted share.
For complete news Go to http://www.prnewswire.com/
Consolidated Papers' Second Quarter Earnings Up 227% Compared with the Same Quarter in 1999; Results Lifted by Record Shipments and Improved Selling Prices
July 12, 2000 , WISCONSIN RAPIDS, Wis. – Consolidated Papers, Inc. (NYSE: CDP) today reported that record total shipments and improved selling prices for its paper resulted in second quarter 2000 earnings of $32,983,000, or 36 cents per share. Second quarter earnings were adversely impacted by approximately four cents per share due primarily to a LIFO provision related to pulp cost increases and provisions for legal matters. This compares with second quarter 1999 earnings of $10,080,000, or 12 cents per share, and first quarter 2000 earnings of $25,271,000, or 28 cents per share.
For complete news Go to http://www.consolidatedpapers.com/
International Paper Reports 25 Percent Increase in Earnings Per Share
PURCHASE, N.Y., July 11 /PRNewswire/ -- International Paper today reported improved second-quarter 2000 earnings of $315 million ($.75 per share) before special items. Second-quarter results represent an increase of 25 percent or $.15 per share (or $66 million) compared to first-quarter net earnings of $.60 per share (or $249 million) before special and extraordinary items.
Second-quarter 2000 earnings represent more than three times the earnings ($.24 a share, or $99 million, before special and extraordinary items) reported in the comparable quarter a year earlier.
For complete news Go to http://investor.internationalpaper.com/
Westvaco Completes Acquisition of IMPAC Group, Inc.
NEW YORK, NY, July 11, 2000 -- Westvaco Corporation (NYSE: W) today completed its previously announced acquisition of IMPAC Group, Inc., a leading global supplier of innovative packaging and printing solutions to consumer markets including entertainment, cosmetics and health and beauty aids.
For complete news Go to http://www.westvaco.com/
Cascades Inc. Proposes to Restructure Paperboard, Perkins and Rolland
Kingsey Falls, Quebec, July 10th, 2000 - Cascades Inc. ("Cascades"; symbol CAS) and its subsidiaries Paperboard Industries International Inc. ("Paperboard"; symbol PI), Perkins Papers Ltd. ("Perkins"; symbol PKN) and Rolland Inc. ("Rolland"; symbol RL) announce that Cascades is proposing to restructure the Cascades Group for the purpose of achieving a better valuation of the Group as a whole and to create a vehicle for growth better adapted to today's financial markets.
For complete news Go to http://www.cascades.com
Domtar Inc. to Acquire Ris Paper Company, Inc.
Montréal, July 10, 2000 -- Domtar Inc. is pleased to announce that it has reached an agreement to acquire Ris Paper Company, Inc. The transaction is expected to close by the end of July 2000 and is subject to regulatory approval.
Ris is one of the largest independent merchants of commercial printing and business papers in the United States. Its head office is in Florence, Kentucky. With its 680 employees, Ris operates 19 distribution branches in some of the most active printer markets in the U.S. Ris sales were approximately US$600 million in 1999.
For complete news Go to http://www.domtar.com
Valmet Establishes Own Sales Company in South Africa
07.07.2000, Valmet has established its own sales company in Durban, South Africa, to sell the complete range of Valmet products in the area. Valmet South Africa (Pty) Ltd. started its operations on 1 May 2000.
At the same time Valmet has acquired its former agent in the area, NDK Teknik (Pty) Ltd. The new sales company continues to operate in the same location, with the personnel that has earlier served Valmet. Mr.
George Kerr, the main owner and president of NDK Teknik, has been appointed President of Valmet South Africa (Pty) Ltd.
Xerox Teams Up with G-P on Paper Deal to Increase Distribution Channels, Expand Market Reach
ROCHESTER, N.Y., and ATLANTA, July 6, 2000 -- Xerox Corporation (NYSE: XRX) and Georgia-Pacific Corp. (NYSE: GP) today announced an agreement through which Georgia-Pacific has acquired the exclusive license for the Xerox brand of commodity multipurpose papers sold in the United States and Canada, along with related assets. These popular papers are used for digital printing, copying, faxing and everyday business applications.
For complete news Go to http://www.xerox.com/
Kimberly-Clark Completes Acquisition of S-K Corporation of Taiwan
Acquisition to Boost Growth in Asia-Pacific Region
DALLAS and TAIPEI, Taiwan, July 5 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today completed the previously announced acquisition of majority shares in S-K Corporation of Taiwan. S-K Corporation holds trademark and distribution rights in Taiwan for such Kimberly-Clark global brands as Kleenex, Huggies and Kotex. The purchase price was not disclosed. With the transaction, Kimberly-Clark now owns more than 99 percent of S-K Corporation.
The acquisition took place following agreement by the majority shareholders, approval by the Taiwan Investment Commission and clearance by the Fair Trade Commission. Kimberly-Clark also owns 67 percent of Taiwan Scott, the leading manufacturer of tissue products in Taiwan.
For complete news Go to http://www.prnewswire.com/
Neles Automation and Endress+Hauser Announce an Alliance
07/03/2000 , REINACH, Switzerland and HELSINKI, Finland Endress+Hauser International Holding AG and Neles Automation Inc. today announced the intention to form an alliance for joint technology development and sales activities. These new activities will employ approximately 100 persons.
For complete news Go to http://www.nelescontrols.com/
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