| PAPER INDUSTRY NEWS - MAY 2000 |
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This page contains pulp and paper industry news for May 2000
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NEWS MAY 2000
North American Paper Capital Spending Seen Rising 13 Percent in 2000
SAN FRANCISCO, May 31 /PRNewswire/ -- Capital expenditures by North American pulp and paper manufacturers, including expenditures for environmental compliance, are projected to increase 12.6 percent in fiscal 2000, according to an exclusive survey recently published by Pulp & Paper Project Report.
Spending estimates by 48 U.S. and Canadian-based companies show an expected increase of $1.05 billion for capital expenditures in fiscal 2000 to total nearly $9.4 billion. Total spending in fiscal 1999 declined 6.1 percent or by $546 million from 1998 to $8.32 billion.
Projected capital expenditures by 35 U.S. companies are estimated to jump 13.4 percent to just under $7.9 billion for fiscal 2000. This increase comes on the heels of three consecutive years of spending decreases, including a 9.2 percent reduction recorded for fiscal 1999 to just under $7.0 billion, Project Report reported.
Capital spending by 13 Canadian companies is expected to increase 5.1 percent in 2000 to total nearly C$2.2 billion. This projected increase follows an increase of 14.3 percent recorded for fiscal 1999 to just over C$2.0 billion.
U.S. mills still require significant expenditures for environmental projects to bring their operations into compliance with enacted and pending Cluster Rule regulations from the Environmental Protection Agency (EPA). A Project Report tally of projected capital spending necessary for Cluster Rule compliance finds that an estimated $1.75 billion to $2.6 billion will be required in 2000 and beyond to meet the stricter environmental standards. This estimate does not include spending already completed through 1999.
Pulp & Paper Project Report is the only news publication dedicated to covering capital spending programs, current and proposed mill expansion plans, modernizations and improvement projects, and capacity forecasts in the North American and global pulp and paper industry. Project Report is published by Miller Freeman Inc., the leading publisher of news and information for the pulp and paper industry.
SOURCE: Miller Freeman Inc.
SMURFIT-STONE COMPLETES THE ACQUISITION OF ST. LAURENT PAPERBOARD INC.
Chicago and Montréal, May 31, 2000 - Smurfit-Stone Container Corporation ("Smurfit-Stone"), Chicago, Illinois, (NASDAQ: SSCC), today announced that it has completed the acquisition of St. Laurent Paperboard Inc. ("St. Laurent"), Montréal, Quebec).
For complete news Go to http://www.stlaurent.com/
Quaker Chemical Corp. Sells U.S. Pulp and Paper Business
CONSHOHOCKEN, Pa., May 31 /PRNewswire/ -- Quaker Chemical Corporation (NYSE: KWR - news) announced that today Hercules Incorporated (NYSE: HPC - news) acquired Quaker Chemical's U.S. pulp and paper division for an undisclosed amount. The division supplies products and services for application in the tissue paper making and pulping processes. The transaction will not affect the Company's Mexican pulp and paper business.
Ronald J. Naples, Chairman and Chief Executive Officer of Quaker Chemical, commenting on the transaction noted, ``The pulp and paper business in the U.S. was only a small percentage of our total sales and not strategic to our overall business. We were in a position to take action on favorable economic terms, and the impact of this on our ongoing operations is not material. Most important, this divestiture is consistent with our strategy to focus on our global core steel and metalworking related businesses.''
Quaker Chemical Corporation, headquartered in Conshohocken, Pennsylvania, is a worldwide developer, producer, and marketer of custom-formulated chemical specialty products and a provider of chemical management services for manufacturers around the globe, primarily in the steel and automotive industries.
SOURCE: Quaker Chemical Corporation
Kimberly-Clark to Acquire S-K Corporation of Taiwan
Acquisition Will Boost Growth in Asia-Pacific Region
DALLAS and TAIPEI, Taiwan, May 30 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) and S-K Corporation of Taiwan today announced the signing of an agreement for Kimberly-Clark to acquire the shares of privately held S-K Corporation, which holds trademark and distribution rights in Taiwan for such Kimberly-Clark global brands as Kleenex, Huggies and Kotex. The purchase price was not disclosed.
For complete news Go to http://www.prnewswire.com/cgi-bin/
Paper Giants Unveil Name of Net Marketplace
May 30, 2000 The Internet marketplace being formed by three of the world's largest paper and forest products companies will be called ForestExpress.com, according to an executive involved with the venture.
Georgia-Pacific Corp. (GP), Weyerhaeuser Co. (WY) and International Paper (IP) announced in late March their intent to form the business-to-business Net marketplace. Since then, executives from all three companies have been meeting four days a week, every week, in a Denver conference facility to hash out the details.
For complete news Go to http://www.upside.com
PaperExchange Faces Cash Crunch
May 30, 2000 PaperExchange.com has a hefty competitor on the horizon -- ForestExpress, the newly named marketplace being formed by three paper giants -- but a looming cash crunch could become a bigger worry.
The Boston-based Net market, which connects buyers and sellers in the pulp and paper industry, has only $18 million in cash and cash equivalents in its bank account as of March 31, according to an amended registration statement filed April 21.
PaperExchange is seeking to raise $115 million through an initial public offering, which it filed March 10, but the offering has been delayed by hostile market conditions, especially for business-to-business companies
For complete news Go to http://www.upside.com/Ebiz/
Superior Court of Quebec Grants Approval of Smurfit-Stone Corp. and St. Laurent Paperboards Inc. Arrangement
Montreal, May 30, 2000 - St. Laurent Paperboard Inc. ("St. Laurent") Montreal, Quebec, (TSE: SPI; NYSE: SLW) announced today that the Superior Court of Quebec has granted final approval of the plan of arrangement involving Smurfit-Stone Container Corporation ("Smurfit-Stone"), Chicago, Illinois, (NASDAQ: SSCC) and St. Laurent. The arrangement is expected to be completed on or about May 31, 2000 and is subject to customary closing conditions.
For complete news Go to http://www.stlaurent.com
Valmet to Supply a New Kind of On-line Coating Line to Metsa-Serla
29.05.2000 Valmet will supply a new type of on-line paper coating line to Metsä-Serla's Kangas Paper Mill in Jyväskylä, Finland. No similar method of integrating blade coating and multi-nip calendering with the papermaking line is currently operational anywhere in the world. The production line to be started up in March 2001 will produce coated fine paper.
For complete news Go to http://www.valmet.com
Security Holders of St. Laurent Paperboard Inc. Approve Acquisition by Smurfit-Stone Container Corp.
MONTRÉAL AND CHICAGO, May 26, 2000 - St. Laurent Paperboard Inc. ("St. Laurent"), Montreal, Quebec, (TSE: SPI; NYSE: SLW) and Smurfit-Stone Container Corporation ("Smurfit-Stone"), Chicago, Illinois, (NASDAQ: SSCC) today jointly announced the approval by holders of St. Laurent's securities of the acquisition of St. Laurent by Smurfit-Stone as outlined in the management information circular and proxy statement of St. Laurent dated April 14, 2000.
For complete news Go to http://www.stlaurent.com/
Westvaco Reports Sharply Higher Second Quarter 2000 Earnings
Strategic actions and stronger markets bolster performance
NEW YORK, NY, May 25, 2000 -- Westvaco Corporation (NYSE: W) today announced second quarter earnings of $61.4 million, or 61 cents per share, for the period ended April 30, a 125 percent increase compared to earnings of $27.3 million, or 27 cents per share, in the second quarter of fiscal 1999. Earnings for the quarter include a gain of 7 cents per share due to an asset sale and a charge of 9 cents per share due to early redemption of higher coupon debt.
For complete news Go to http://www.westvaco.com/
Fort James, DNR and EPA Reach Agreement to Complete Fox River Dredging Project
DEERFIELD, Ill., May 25 /PRNewswire/ -- The Wisconsin Department of Natural Resources (DNR), the U.S. Environmental Protection Agency and Fort James Corporation have agreed to complete a dredging project designed to remove sediments containing PCBs from a portion of the Fox River.
For complete news Go to http://www.shareholder.com/fort
Valmet Converts Kymi's PM 8 to Coated Woodfree Papers
23.05.2000 Valmet is to rebuild Kymi's PM 8 at Kuusankoski, Finland. Originally supplied by Valmet and started up in 1983, the line will be converted from uncoated woodfree to coated paper production. The value of the Valmet order is about EUR 150 million and the modernized line will start up in autumn 2001.
For complete news Go to http://www.valmet.com/
Paxar Completes Acquisition of Bornemann & Bick Group
WHITE PLAINS, N.Y., May 22 /PRNewswire/ -- Paxar Corporation (NYSE: PXR - news) has completed the acquisition of the Bornemann & Bick (``B&B'') group of companies in an all-cash transaction for $57 million plus the assumption of approximately $4 million of indebtedness.
For complete news Go to http://www.corporate-ir.net/
Potlatch Board of Directors Approves Reduction In Force
Spokane, May 19, 2000 Potlatch Corporation's (NYSE:PCH) Board of Directors today approved a plan to reduce the company?s workforce as part of an effort to reduce costs and improve efficiency across the company. The workforce reduction will require a one-time write-off to cover program costs in the second quarter of 2000. Details of the plan, including the cost and number of jobs and employees affected, will be announced once the plan has been implemented, according to L. Pendleton Siegel, chairman and chief executive officer.
Cascades to Build a New Manufacturing Plant in the United States
Kingsey Falls, May 18, 2000 In order to boost its activities in the specialty packaging sector and establish a closer presence to its American customers, Cascades Inc. will build a plant in Warrenton, Missouri to manufacture polystyrene foam trays for the food industry. Establishing this facility will require an investment of US$5.5M (CAN$8M) and result in the creation of about 50 jobs.
For complete news Go to http://www.cascades.com/
Final Agreement between AssiDomän and Frantschach
AssiDomän AB and Frantschach AG have signed an agreement on the sale of AssiDomän’s sack operations, the Sepap and Dynäs paper mills, and the Barrier Coating business unit. Frantschach will take over these operations with effect from 1 January 2000. The deal is subject to approval by the EU competition authorities and is expected to be finalised by payment of the purchase price in the second half of this year.
For complete news Go to http://www.asdo.se/english
Neles Automation and Aspen Technology Form Partnership for Information Management Solutions for the Pulp & Paper Industry
HELSINKI, Finland, and CAMBRIDGE, Mass - May 16, 2000 Neles Automation Inc. and Aspen Technology, Inc. (NASDAQ: AZPN), today announced a partnership to embed AspenTech's Aspen Manufacturing Suite within Neles Automation's nelesDNA product to create a powerful new process automation solution for the Pulp and Paper industry. By integrating the technologies of the two companies, customers will be able to deploy a comprehensive solution for the Pulp and Paper industry that will deliver improved performance and a faster return on investment.
For complete news Go to http://www.nelescontrols.com/
International Paper Succeeds in Acquiring Champion
PURCHASE, N.Y., May 12 /PRNewswire/ -- International Paper (NYSE: IP) today reached a definitive merger agreement with Champion International (NYSE: CHA) after UPM-Kymmene withdrew from the bidding. IP will purchase Champion for $75 per share in cash and stock.
For complete news Go to http://www.internationalpaper.com/
Valmet's Acquisition of Beloit's Paper Machine Service Assets Completed
12.05.2000 The acquisition by Valmet Corporation of the service and aftermarket assets of the American paper manufacturer Beloit has been closed. The price has been paid as agreed, on the closing date, May 11, 2000 as the businesses were transferred to Valmet Corporation.
Valmet is the world's leading supplier of technology, systems and equipment for the pulp, paper, converting and panelboard industries. In 1999, Valmet's net sales was EUR 1.7 billion and it had a personnel of 10,600.
SCA and Johnson & Johnson will Initiate Cooperation in the North American and Nordic Consumer Product Markets
SCA and Johnson & Johnson signed agreements today covering the consumer product sectors in the North American and Nordic markets.
SCA is acquiring Johnson & Johnson’s adult absorbable incontinence product brand in the U.S. and Canada. The products are sold under the SERENITY brand name in the United States, with sales currently amounting to approximately USD 50 M per year, mainly through retail outlets.
For complete news Go to http://www.sca.se/
International Paper's Bid for Champion Declared 'Superior'
PURCHASE, N.Y., May 10 /PRNewswire/ -- International Paper (NYSE: IP) announced today that the Board of Directors of Champion International (NYSE: CHA) has declared IP's revised bid for Champion as superior to that submitted by UPM-Kymmene. International Paper submitted a revised bid of $75 per share in cash and stock on Tuesday evening after being informed that UPM-Kymmene had substantially revised its original offer for Champion.
For complete news Go to http://www.corporate-ir.net/
Kodak Japan & Mitsubishi Paper Mills Announce Photo Industry Joint Venture
TOKYO--(BUSINESS WIRE)--May 9, 2000--Kodak Japan Ltd., a subsidiary of Eastman Kodak Company, and Mitsubishi Paper Mills Ltd. today announced plans to form a joint venture to serve the market for photographic goods and photoprocessing in Japan.
According to Yoshikazu Hori, president of Kodak Japan and Yoshihiro Onda, president of Mitsubishi Paper Mills, the combined entity will have the number two share position for color photographic paper in Japan, the world's second largest market for photographic products.
"The joining together of these two well-known brands in Japan will bring significant benefits to consumers and the Japan photographic market,'' Hori and Onda said in a joint statement. ``Each partner also expects to achieve improved operating efficiencies as well as strategic and financial benefits through the JV.'' The move accelerates Kodak's growing position in Japan and enables Mitsubishi to concentrate on its core business.
Under terms of the agreement:
- Kodak Japan will contribute to the joint venture from its
Consumer
Imaging business, including Kodak Imagex Ltd., its photofinishing
and sales service subsidiary in Japan. - Mitsubishi will
contribute the photographic product segment of its
Diamic sales subsidiary to the joint venture.
Kodak will have majority equity share and the joint venture will initially source products from both parent companies. It is also anticipated that the companies will cooperate in areas other than sales, such as procurement of raw materials and the supply of intermediate goods.
Board representation and management structures will be announced in the future. The joint venture should be operational by year-end.
Cascades Inc. Triples its Earnings Per Share during the 1Q
Kingsey Falls (Quebec) May 8, 2000 -- Cascades Inc. (“Cascades”) announces net earnings of $11 million, or $0.16 per share for the first quarter of 2000, compared with $4 million, or $0.05 per share, for the corresponding quarter of 1999. Net sales increased by 13%, from $624 million for the quarter ended March 31, 1999, to $707 million for the first quarter 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $71 million for the quarter ended March 31, 2000, compared with $60 million for the corresponding quarter last year.
For complete news Go to http://www.cascades.com
Sappi Increases Earnings Per Share by 88%
JOHANNESBURG, South Africa--(BUSINESS WIRE)--May 8, 2000--The continued strengthening of global pulp and paper markets and improved efficiencies in the group enabled Sappi to more than double earnings per share before exceptional items for the second quarter ended March 31 compared to last year. Earnings before exceptional items (headline earnings) per share at US cents 32 was up 88 percent on the same quarter last year and 23 percent up on the prior quarter.
For complete news Go to http://www.sappi.com/
Stora Enso Inaugurates New Research Centre in Mönchengladbach
May. 05, 2000, Stora Enso has today inaugurated a new Research Centre in Mönchengladbach, Germany. This new site replaces the former Viersen Research Centre. The Mönchengladbach Research Centre has both a regional and global role within Stora Enso. It has group-wide responsibility for research in the areas of process analysis and efficiency, and recycling. The investment in a modern four-colour high performance sheet-fed offset press will provide new services for Stora Enso mills and the market.
For complete news Go to http://www.storaenso.com/
Metso and V.I.B Systems Establish Joint Venture Company In Paper Machine Technology
HELSINKI, Finland, May 5 /PRNewswire/ -- Metso Corporation's (NYSE: MX; HEX: MEO) fiber and paper technology area Valmet, its automation and control technology area Neles Automation and the German V.I.B Systems GmbH have received the approval of the competition authorities in Finland and Germany for their letter of intent signed in March to set up a joint venture to develop moisture profile products used in the manufacture of paper. Metso's automation and control technology will own 51 per cent and V.I.B Systems 49 per cent of the new joint venture company.
The new company will combine paper technology know-how and process knowledge in paper machine automation with specialization in moisture profile products, creating a platform for developing next-generation sheet conditioning solutions. These will enable embedding of measurement, control and actuation directly into the papermaking process, allowing closer control over final product quality and cost-efficiency of the process. The new joint venture company, called V V N Solutions GmbH, will be based in Frankfurt.
V.I.B Systems is a world leader in sheet conditioning systems used in the papermaking process. It is located in Frankfurt, Germany and in Atlanta, Georgia, USA.
Metso Corporation is a global supplier of process industry machinery and systems. Metso's business areas are fiber and paper technology, automation and control technology and machinery. The net sales of Metso Corporation was EUR 3.4 billion in 1999 and personnel totaled approximately 23,000. Metso Corporation is listed on the Helsinki Exchanges and New York Stock Exchange.
Major Investment of 22 million $ - Kruger Inc. Modernizes No.2 Newsprint Machine at the Bromptonville Mill in the Eastern Townships
MONTREAL, May 4 /CNW/ - Montréal-based Kruger Inc. resumes production on its newsprint machine No.2 at the Bromptonville mill in the Eastern Townships, after a 21-day stop for modernization.
Major renovations on the No. 2 Newsprint Machine allowed a significant improvement in quality and an 18,000-metric tonne per year increase in production. ``We will now be in a position to offer newsprint with superior characteristics of printability and runability,'' said Daniel Archambault, manager of the Bromptonville mill. The No. 2 Paper Machine project is part of a global investment of $51 million announced last September 9 for the Bromptonville mill and realized with the financial assistance of Investment Québec's FAIRE program.
For complete news Go to http://www.newswire.ca/releases
Weyerhaeuser Announces Amalgamation of Canadian Subsidiaries
VANCOUVER, British Columbia — Weyerhaeuser Company today announced the amalgamation on May 1 of its wholly owned indirect Canadian subsidiaries, Weyerhaeuser Company Limited, Weyerhaeuser Canada Ltd. and Green Forest Lumber Limited. The name of the amalgamated Canadian company is Weyerhaeuser Company Limited.
For complete news Go to http://www.weyerhaeuser.com
Valmet will Deliver a Large Fine Paper Machine to Willamette in USA
May 2, 2000 Valmet has received an order for a large fine paper machine from Willamette Industries for its paper mill in Kingsport, Tennessee, USA. The delivery will take place in spring 2001, and the start-up will be in June 2002. The order includes some parts manufactured for the delayed delivery to the Indonesian APRIL Group and the uncertainty related to the inventory value of this delayed delivery has now been removed.
For complete news Go to http://www.valmet.com/
IMERYS Awarded PCC Plant at Great Northern Paper In Millinocket, Maine
ATLANTA--(BUSINESS WIRE)--May 1, 2000--IMERYS (Paris Bourse:IME) announced today that they have been chosen by Great Northern Paper to construct a satellite precipitated calcium carbonate (PCC) plant at their mill site in Millinocket, Maine. IMERYS will supply their Opti-Cal(TM) Neutrally Buffered PCC and Opti-Cal(TM) coating PCC to the Great Northern Mill. The PCC plant will begin operation in the 2nd Quarter of 2001.
For complete news Go to http://www.imerys-paper.com/
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