| PAPER INDUSTRY NEWS - JUNE 2001 |
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This page contains pulp and paper industry news for June2001
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NEWS JUNE 2001
Hercules Announces Cost Reduction Program and Key Management Appointments
Wilmington, DE, June 28, 2001 . . . Hercules Incorporated (NYSE: HPC) announced today a comprehensive cost reduction program to improve the Company's return on capital. Reductions are designed to lower costs in the businesses and across the corporate functional units.
Dr. William H. Joyce, Chairman and Chief Executive Officer, said, "We have identified significant cost reduction opportunities and will begin to implement our plans immediately. Our annualized and recurring cost saving target is $100 million. Approximately one-half of the cost reductions are targeted for our corporate functions and the other half for our businesses. We are committed to achieving this target by the end of the second quarter 2002.
For complete news Go to http://www.herc.com/
ForestExpress Allies with Sun Microsystems to Deliver Forest Products Industry E- Marketplace
ForestExpress Leverages Commerce One and SAPMarkets' MarketSet Solution on the Sun Platform
ATLANTA and PALO ALTO, Calif. (June 27, 2001) - ForestExpress, the leading e-commerce solution and service provider serving the entire forest products industry, has chosen to operate its e-marketplace offering on Sun systems running the Solaris(tm) Operating Environment (Solaris OE). ForestExpress is the first company serving the forest products industry to take advantage of the Commerce One and SAPMarkets MarketSet solution on the Sun platform. ForestExpress selected the combined solution for its outstanding reliability, scalability and value to its customers and suppliers - providing marketplace participants access to enterprise-class applications and a significantly improved user experience.
"ForestExpress chose Sun because it gives us the ability to deploy highly scalable e-marketplace solutions that can support billions of dollars in transactions and services," said Bob Renner, chief technology officer at ForestExpress. "Collaborating with world-class organizations such as Sun, Commerce One and SAPMarkets, provides us the opportunity to deliver a cost-effective, long-term e-commerce solution to the forest products industry."
The global forest and paper industry represents a supply chain of approximately $750 billion, with the U.S. industry shipping about $250 billion of products. Twenty-five percent of industry revenues could be transacted over the Internet by the end of 2004, with a forecast $30 billion of e-marketplace sales (12% of U.S. revenues), according to PricewaterhouseCoopers' Global Forest & Paper Practice.
For complete news Go to http://www.forestexpress.com
Alliance and Bowater Announce Alliance Shareholders Approve Acquisition
MONTREAL & GREENVILLE, S.C.--June 26, 2001--Alliance Forest Products (TSE: ALP, NYSE: PFA) and Bowater Incorporated (NYSE: BOW - news) today announced that the shareholders of Alliance have approved the previously announced Plan of Arrangement with Bowater at the annual and special meeting of Alliance held in Montreal June 26, 2001. The holders of 99.97% of Alliance's outstanding shares represented at the shareholders meeting voted in favor of the transaction.
For complete news Go to http://www.bowater.com
International Paper Announces Restructuring and Profit Improvement Plans
To Cut 3000 Jobs
STAMFORD, Conn., June 25 /PRNewswire/ -- International Paper (NYSE: IP) announced today that it will eliminate 3,000 jobs from its domestic workforce. The majority of the job reductions will occur in the next 12 months through a streamlining of the company's staff support functions, as well as by organizational changes within several of its operating businesses. The reductions represent ten percent of the company's U.S. salaried workforce, excluding its divestiture businesses. This restructuring plan will permit the company to reduce costs, and better align resources with the company's core businesses of paper, packaging and forest products.
"These decisions are difficult because they affect hard working and talented people who have dedicated themselves to making IP a great company," said John Dillon, chairman and chief executive officer. "All impacted employees will be treated fairly and with the utmost dignity and respect.
For complete news Go to http://investor.internationalpaper
Domtar to Take Market Downtime at its Lebel-sur-Quévillon Pulp Mill
Montreal, June 21, 2001 -- In order to ensure the balance between supply and demand, Domtar Inc. announced today that it will be taking market downtime at its Lebel-sur-Quévillon pulp mill from July 2nd to July 16th, 2001.
Once the transaction with Georgia-Pacific is completed during the third quarter 2001, the annual net sales of the new Domtar should reach $CDN 6 billion, of which approximately 75% will be in the United States. With a team of approximately 12,500 employees across North America, the new Domtar will be the second largest producer of uncoated freesheet in North America and the third largest in the world. Domtar will become a leading manufacturer of business, printing, specialty and technical papers. Domtar manages close to 36 million acres of forest land in Canada and in the United States and its forest management practices on all of these lands have or will be certified ISO 14001 or according to the standards of the Forest Stewardship Council by the end of the year. Domtar is also a significant supplier of lumber in eastern North America. Finally, Domtar owns 50% of Norampac Inc., the largest Canadian producer of containerboard and corrugated containers.
For complete news Go to http://www.domtar.com
Metso Paper to launch OptiConcept Rebuild for Coated Board
20.06.2001 As the result of years of intensive development work and customer co-operation, Metso Paper is now ready to introduce a new manufacturing method for high quality coated board. The method is applicable both for new machines and as a rebuild. The concept is particularly attractive as a rebuild alternative, because it can increase the capacity of existing lines proportionally to the market growth.
For complete news Go to http://www.metsopaper.com/
Tembec Acquires Paper Mill in St. Francisville, Louisiana
TEMISCAMING, Quebec, June 19 /CNW/ - Tembec Inc. announced today that it has successfully completed its acquisition of a pulp and paper mill located in St. Francisville, Louisiana from Crown Paper Co. The purchase price of approximately US$184.3 million includes working capital of approximately US$25.5 million. The purchase price was satisfied as to US$140 million in cash and US$44.3 million in Tembec common shares (5.5 million shares).
The St. Francisville mill is a fully integrated pulp and paper facility with an annual production capacity of 310,000 short tons of coated groundwood papers and 118,000 short tons of speciality papers. The acquisition will increase Tembec's total paper and paperboard capacity to more than 1.1 million metric tonnes.
For complete news Go to http://www.tembec.ca
Pope & Talbot Closes Mackenzie Pulp Mill Acquisition From Norske Skog Canada
PORTLAND, Ore., June 15, 2001 Pope & Talbot, Inc. (NYSE: POP - news) announced today that it has completed the acquisition of the Mackenzie pulp mill from Norske Skog Canada for Canadian $163 million or approximately US $104 million (Canadian $123 million or US $78 million cash and 1,750,000 shares of Pope & Talbot, Inc. common stock).
"The Mackenzie pulp mill, which has a manufacturing capacity of 230,000 metric tons of Northern Bleached Softwood Kraft (NBSK) chip and sawdust pulp, is a great strategic fit for Pope & Talbot, Inc.'' stated Michael Flannery, Chairman and Chief Executive Officer. He went on to state, ``Mackenzie's products, customers and operations are complementary to Pope & Talbot's existing pulp mills in British Columbia and Oregon. The acquisition is an important step as we continue to grow in the pulp and wood products businesses.''
For complete news Go to http://www.corporate-ir.net/
Abitibi-Consolidated Announces Newsprint Price Adjustment and Further Downtime
MONTREAL, June 15 /CNW/ - Abitibi-Consolidated Inc. announced today that, given the continued pressure on the economy, the price for standard newsprint will be reduced by US$25 per metric tonne, effective July 1st.
The Company anticipates that it will continue to take approximately 50,000 tonnes of market-related downtime per month in the third quarter, over and above the already-announced permanent shutdowns.
Abitibi-Consolidated is a global leader in newsprint, uncoated groundwood papers and lumber with ownership interests in 26 paper mills in Canada, the U.S., the U.K. and Asia (including its interest in Pan Asia Paper) and in 22 sawmills, 2 remanufacturing facilities, a market pulp mill and 8 recycling centres. Abitibi-Consolidated employs approximately 18,000 people and supplies products in nearly 100 countries.
For complete news Go to http://www.abicon.com
Georgia-Pacific Announces Reductions In Gypsum Wallboard Production
ATLANTA, Georgia. June 13, 2001 -- Georgia-Pacific Corp. (NYSE: GP) today announced plant closures and indefinite curtailments equaling approximately 45 percent of the company’s gypsum wallboard production capacity in the United States and Canada.
“Current market conditions for wallboard are forcing us to take action now to close these facilities and reduce our overall production,” said A.D. “Pete” Correll, chairman and chief executive of Georgia-Pacific. “These steps are critical for the long-term viability of our wallboard business. Current capacity and pricing levels in the wallboard business are unsustainable and operating our plants at full production is unprofitable for Georgia-Pacific.”
Based on analysis of its gypsum wallboard production capacity, Georgia-Pacific will close wallboard plants at Savannah, Ga.; Long Beach, Calif.; and Winnipeg, Manitoba, Canada. The company also will indefinitely idle commodity wallboard production lines at Acme, Texas; Sigurd, Utah; and Blue Rapids, Kan.; and reduce operations at its remaining 13 wallboard production facilities to a maximum five-day work schedule for as long as current market conditions exist.
In addition, Georgia-Pacific will offer for sale its recycled paperboard plant at Delair, N.J., due to the decreased need for face paper used on the company’s wallboard.
“These types of decisions are difficult to make, particularly in light of the more than 500 employees who will be impacted, but we cannot continue at the current level of production given the weak market conditions, surplus capacity and increased energy costs, especially in California,” said David Fleiner, president of G-P Gypsum, the corporation’s gypsum products subsidiary. “This capacity reduction allows G-P Gypsum to meet commitments for our new ToughRock™ wallboard product line, as well as our Dens-Glass® portfolio of products and our industrial plaster and door components businesses, while maintaining our market presence across North America. Given the current economic forecasts, we do not foresee altering the limited production schedule in the near future.”
For complete news Go to http://www.gp.com/
Georgia-Pacific and Chesapeake Corporation Reach an Agreement on Color-Box Joint Venture
RICHMOND - Georgia-Pacific Corp. (NYSE:GP) and Chesapeake Corporation (NYSE:CSK) have reached an agreement for Georgia-Pacific to purchase from Chesapeake an additional 27 percent interest in Color-Box, LLC for $35 million. The transaction is expected to close in early July.
Color-Box, LLC, a joint venture between G-P and Chesapeake, designs and manufactures litho-laminated corrugated graphic packaging. Color-Box includes packaging facilities at Madera (Coralure) and Visalia, Calif.; Richmond, Ind.; Dubuque and Monticello, Iowa; and Pelahatchie, Miss. G-P will own 81 percent of the joint venture after the transaction. As part of this agreement, in early 2002, Chesapeake has the option to sell to G-P, and G-P has the option to buy from Chesapeake, Chesapeake's remaining 19 percent interest in Color-Box, LLC, for $25 million.
For complete news Go to http://www.shareholder.com/
GL&V Exceeds Financial Analysts’ Expectations with a 123% Growth in Net Earnings
Net earnings rise to $15.2 million or $1.60 per share
June 07, 2001 : For the fiscal year ended March 31, 2001, GL&V (LV.A, LV.B / TSE) achieved revenues of $407.5 million, compared with $235.4 million in 1999-2000. This 73% increase is mainly attributable to the efficient integration of the business units acquired the previous year from Beloit and Dorr-Oliver. Earnings before interest, taxes, depreciation and amortization ( EBITDA) rose 67% from $20.9 million to $34.8 million. Net earnings jumped 123% to an all-time high of $15.2 million or $1.60 per share ($1.47 fully diluted), compared with $6.8 million or $0.82 per share ($0.69 fully diluted) last year. For the fourth quarter, GL&V posted revenues of $106.5 million, up 28% over the same period last year. Net earnings rose 57% to $4.7 million or $0.49 per share ($0.45 fully diluted), despite the pressures exerted on its profit margins by difficult economic conditions. GL&V thereby completed a 12th consecutive quarter of growth.
“We had set two major financial objectives for fiscal 2000-2001: optimize the profitably of our recent acquisitions, and reduce our debt. We not only kept our word, but even surpassed financial analysts’ forecasts in terms of profitability, while reducing our net indebtedness by almost one third,” stated Laurent Verreault, President and Chief Executive Officer. “Thereby, we demonstrated our determination to create value for our shareholders by delivering a 25% return on equity, not to mention the dividend of $0.10 per share paid last year. What’s more, the price of our Class A share increased by 23% in the last fiscal year.” The President said that the companies acquired during the previous fiscal year were rapidly turned around, making a major contribution to GL&V’s profits while also bringing the Company an impressive base of installed equipment and great visibility worldwide. “I also wish to point out that all of our subsidiaries grew their profits, in both North America and Europe.”
For complete news Go to http://www.glv.com
Bowater/Alliance Acquisition Reviewed
Justice Department Will Review Bowater's Acquisition of Alliance for Antitrust Issues
GREENVILLE, S.C. (AP) June 07, 2001 -- Bowater Inc.'s (NYSE:BOW - news) purchase of Alliance Forest Products has been put on hold until the Justice Department has a chance to review the filing for antitrust issues. Bowater, the nation's second-largest newsprint maker, said Thursday it expects to close the transaction in early July.
For complete news Go to http://www.bowater.com
Kruger Invest $78 M in its Bromptonville Mill with the Participation of the Quebec Govt.
Bromptonville, Tuesday, June 5, 2001 – Madam Pauline Marois, Deputy Première of Québec and Minister of Finance and Economy, and the Kruger company, represented by Bernard Routhier, Vice-President – Operations, today announced an investment of 78 million dollars at its Bromptonville mill to improve the quality of paper and reduce production costs. This project was accomplished with a $7.5 million loan from Investissement Québec. The investment will also serve to consolidate the 470 jobs at the mill.
Mr. Gille Baril, Minister of State for the Regions and Minister of Industry and Commerce, Mr. Claude Boucher, Secretary of State for Municipal Infrastructures and Regional Deputy for the Eastern Townships, Mr. Clément Nault, Mayor of Bromptonville, and many other guests attended the event.
For complete news Go to http://www.kruger.com
G-P Reaches Definitive Agreement To Sell Paper Manufacturing Assets In Arkansas, Maine And Wisconsin To Domtar
ATLANTA, Georgia. June 04, 2001 -- Georgia-Pacific Corp. (NYSE: GP) and Domtar Inc. (TSE and NYSE: DTC) have completed a definitive agreement for Domtar to acquire a portion of Georgia-Pacific’s pulp and paper assets for $1.65 billion in cash. Georgia-Pacific will use proceeds from the sale to repay debt.
The sale, which is subject to customary approvals, is expected to be completed early in the third quarter 2001.
The assets involved are Georgia-Pacific’s stand-alone uncoated fine paper mills at Ashdown, Ark.; Nekoosa and Port Edwards, Wis.; and Woodland, Maine, as well as associated pulp facilities. This sale is the largest divestiture of assets in Georgia-Pacific’s history.
Georgia-Pacific will continue to own and operate white paper mills at Camas, Wash.; Crossett, Ark.; Port Hudson, La.; and Wauna, Ore. These facilities will focus on production of the company’s broad line of branded imaging, printing, publishing, converting and specialty papers, including the Eureka! and Spectrum office paper brands as well as Eclipse and Geocycle recycled papers. In addition, Georgia-Pacific’s Unisource subsidiary remains the sole national distributor of Xerox branded papers and supplies, and one of North America’s largest distributors of printing and office paper.
For complete news Go to http://www.gp.com/
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