| PAPER INDUSTRY NEWS - MAY 2001 |
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This page contains pulp and paper industry news for May 2001
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NEWS MAY 2001
Abitibi-Consolidated To Permanently Close No. 1 Specialty Machine at Iroquois Falls
MONTREAL, May 31 /CNW/ - Abitibi-Consolidated announced today the permanent closure of specialty paper machine No. 1 at its Iroquois Falls, Ontario mill, representing an annual production capacity of approximately 53,000 tonnes of non-core specialty grades.
"We understand that three of the four local unions accepted the proposed restructuring program which had also been endorsed by the local and national executives of the fourth one, the Communications, Energy and Paperworkers Union (CEP) local 90. Following rejection by its membership last Tuesday, we're left with no other alternative," said Denis Jean, Senior Vice-President, Northern Newsprint Operations.
The permanent closure of paper machine No. 1, which started up in 1915,will take place on September 14th, 2001, affecting more than 200 employees and making Iroquois Falls a one-machine newsprint operation.
For Complete news Go to http://www.abicon.com
GL&V Increases Presence in the Energy Market
May 30. 2001 Its subsidiary GL&V Manufacturing Inc. lands contracts worth a total of $7.4 million to supply equipment components for nine cogeneration plants in the United States and Ontario
Groupe Laperrière & Verreault (GL&V) - Ticker Symbols: LV.A - LV.B / TSE GL&V Manufacturing Inc., a wholly-owned subsidiary of GL&V (LV.A, LV.B/TSE), is pleased to announce that, since the beginning of fiscal 2001-2002, it has received contracts worth a total of Cdn$7.4 million to manufacture some 15 turbine capacitors for nine cogeneration plants, including two in Indiana, two in New Jersey, one in North Carolina, one in Georgia, one in Texas and two in Ontario. This order was awarded by the FOSSIL POWER DIVISION of the HOLTEC INTERNATIONAL GROUP INC., a long-standing customer of GL&V Manufacturing active in the energy industry. Its Fossil Power Division specializes more specifically in the engineering and design of electricity and steam cogeneration equipment components. Michel Gélinas, Vice-President and General Manager of GL&V Manufacturing, explained that delivery of the equipment will start in November to be completed in June 2002. “Close to 80% of the revenues from these contracts will therefore be recorded in the current fiscal year ending March 31, 2002.”
For complete news Go to http://www.glv.com
UPM-Kymmene Acquires Haindl of Germany and Sells Two Haindl Paper Mills to Norske Skog
The position as the world's leading magazine paper producer will be strengthened
(Helsinki, 29 May, 2001) - UPM-Kymmene Corporation (HSE: UPM1V, NYSE: UPM) has agreed to acquire 100% of the shares of the German paper producer G. Haindl'sche Papierfabriken KGaA ("Haindl") for a total consideration of EUR 3.64 billion. In addition, UPM-Kymmene will assume Haindl's net financial liabilities of approximately EUR 210 million. The total enterprise value will be EUR 3.85 billion. As a part of the acquisition the Board of Directors of UPM-Kymmene will propose a directed share issue of 12.3 million new shares valued at EUR 419 million to certain Haindl shareholders.
In connection with this transaction, UPM-Kymmene has reached a separate, back-to-back agreement to sell two of Haindl's paper mills, Walsum and Parenco, to the Norwegian paper producer Norske Skog AS for EUR 1.1 billion. This divestiture will most likely result in certain tax costs, currently estimated at EUR 100 million for UPM-Kymmene. Accordingly, the net cash consideration of the Haindl acquisition for UPM-Kymmene will be EUR 2.2 billion.
For complete news Go to http://w3.upm-kymmene.com
Norske Skog Canada Steps up Curtailment in Response to Soft Pulp and Paper Markets
VANCOUVER, May 29 /CNW/ - Norske Skog Canada announced today it will take a further 24,000 tonnes of newsprint and 12,000 tonnes of pulp out of production by mid July to keep orders in balance with weaker demand.
The latest measures are in addition to curtailment already taken or scheduled for the second quarter amounting to 24,000 tonnes of newsprint and 29,000 tonnes of pulp.
The company said that weaker economic conditions, particularly in key US and Asian markets, has created a supply-demand imbalance.
Russell J. Horner, president and chief executive officer, said the company is carefully managing its inventories and will continue to take downtime until market conditions correct.
For complete news Go to http://www.newswire.ca
Uniforêt Extends Downtime at its Port-Cartier Pulp Mill Until September 4, 2001
ST-LEONARD, QUEBEC, May 25 /CNW/ - Uniforêt has announced that the downtime in production at its Port-Cartier pulp mill started on February 16 is extended again until September 4, 2001. This measure is seen as necessary because of the weak conditions that persist on the pulp world market.
The extended suspension of production will further reduce the mill's output by roughly 52,700 metric tons. Altogether, the suspension will cut production by 114,600 metric tons, or 58% of the mill's estimated pulp output for 2001. Some 100 jobs are directly affected by the suspension. Port-Cartier sawmill operations will not be affected by the extended suspension of production at the pulp mill.
For complete news Go to http://www.newswire.ca
Mackenzie Pulp Mill Turnover to Pope & Talbot Delayed by Two Weeks to Complete Maintenance
VANCOUVER, May 24 /CNW/ - Norske Skog Canada and Pope & Talbot have agreed to extend the closing date of sale of the Mackenzie Pulp Mill by two weeks in order to complete a maintenance project which was delayed pending delivery of a major piece of equipment.
The delay of the close to June 15 from the original schedule of May 31 does not change any of the terms or conditions of the sale of the Norske Skog Canada pulp mill to Pope & Talbot.
For complete news Go to http://www.newswire.ca/
Pope & Talbot Announces Pulp Production Curtailment at Its Halsey, Oregon Pulp Mill
Outlook for Lower Second Quarter Earnings
PORTLAND, Ore., May 24 /PRNewswire/ -- Pope & Talbot, Inc. (NYSE: POP - news) announced today that its Halsey, Oregon pulp mill will be curtailing approximately 32,000 metric tons of pulp production during the months of July and August. Pope & Talbot will continue to maintain its long-term contract customer commitments. The majority of pulp sold during the curtailment period will come from Halsey pulp inventory, supplemented with pulp produced at the Company's Harmac pulp mill and the Mackenzie pulp mill. The recently announced Mackenzie acquisition is expected to close on June 15, 2001.
The Halsey pulp mill curtailment is the result of rapidly declining prices and weak demand for market pulp. In connection with the curtailment, the Company has entered into an agreement with PacifiCorp under which PacifiCorp will pay the Company to reduce electricity demand, which will offset a portion of the curtailment costs. During the curtailment period, the Company will conduct its regular annual maintenance, previously scheduled for September. The Halsey pulp mill, which has the capacity to produce 200,000 annual metric tons of NBSK chip and sawdust pulp, will resume full production in September.
For complete news Go to http://www.corporate-ir.net/
Alliance Forest Products Ingurates No.4 Paper Machine & New Bleach Plant at Donnacona Mill
REPRESENTING A TOTAL INVESTMENT OF $287 MILLION AND THE CONSOLIDATION OF HUNDREDS OF JOBS
Donnacona, May 24, 2001. In the presence of Quebec Prime Minister Bernard Landry and MNA for Portneuf Roger Bertrand, Alliance Forest Products Inc.’s President and Chief Executive Officer Pierre Monahan officially inaugurated the new facilities the Company has built at its Donnacona paper mill for a total investment of $287 million. A $275-million project announced in June 1998 to install a new paper machine was successfully completed, along with a second $12.5-million investment approved in May 2000 to increase the mill’s bleaching capacity.
The changes to Donnacona, which were made necessary essentially by the permanent shutdown of two outdated paper machines at the mill, will increase its annual production capacity by close to 62,000 metric tons and should lead to some $65 million in additional sales. The modernization of the Donnacona paper mill will help secure 450 direct jobs, as well as 900 indirect jobs in Quebec’s Portneuf region.
For complete news Go to http://www.alliance-forest.com
Abitibi-Consolidated to Permanently Close a Further 180,000 Tonnes of Newsprint Capacity
Additional Market-Related Downtime Also Announced
MONTREAL, May 22 /CNW/ - Abitibi-Consolidated announced today that, as of June 15, 2001, one of its three newsprint machines (PM no.8) at its Kenora, Ontario mill will shut down permanently and the two others will be idled (PM no.9 and PM no.10) at least until fall. Prompted by market conditions and high energy costs, these shutdowns will permanently reduce the Company's newsprint capacity by 180,000 tonnes annually.
"We will be working to find economic ways to convert machine no.9 to produce value-added paper instead of newsprint. Machine no.10 will only restart when market conditions for newsprint improve," said Denis Jean, Senior Vice-President, Northern Newsprint Operations.
These closures complete the commitment made at the time the Donohue acquisition was announced in February 2000, to remove 400,000 tonnes of high- cost, excess newsprint capacity.
For complete news Go to http://www.abicon.com/
Abitibi-Consolidated Increases its Ownership in Pan Asia Paper to 50%
MONTREAL, May 20 /CNW/ - Following a decision by Hansol Paper of South Korea to divest of its one-third interest in Pan Asia Paper Co. Pte Ltd., Abitibi-Consolidated Inc. announced today that it has entered into an agreement with Hansol and the other partner, Norske Skog of Norway. The agreement will see Abitibi-Consolidated and Norske jointly purchase Hansol's stake in Pan Asia for US$350 million, thereby making the Singapore-based newsprint manufacturer a 50-50 joint venture. The agreement also provides for the possibility of a US$10 million earn-out payable to Hansol under certain circumstances.
"We believe that increasing our position in one of the world's fastest growing markets will provide a strategic advantage and be immediately accretive to our bottom line," said President and Chief Executive Officer, John Weaver. "This is a unique opportunity to strengthen our investment in Asia and enhance our market leadership position with some of the most modern and lowest-cost assets in the world."
For complete news Go to http://www.abicon.com/
Chesapeake Completes Sale of Corrugated Packaging Operations
(Richmond, Va.) May 18, 2001 --Chesapeake Corporation (NYSE:CSK) today announced it has completed the sale of its corrugated containers businesses, Chesapeake Packaging and Capitol Packaging. These former wholly owned Chesapeake subsidiaries, which consist of 10 corrugated container plants in seven states, become part of Inland Paperboard and Packaging, Inc., a subsidiary of Temple-Inland Inc. (NYSE:TIN).
Chesapeake Chairman, President and Chief Executive Officer Thomas H. Johnson said, "We are pleased to complete the sale of Chesapeake Packaging and Capitol Packaging. We believe the sale creates exciting opportunities for the employees going to Inland. This sale is one more step in our plan to become a more focused specialty packaging company, with an emphasis on markets that provide opportunities to differentiate our products and services through distinct competitive advantages."
For complete news Go to http://www.shareholder.com/
AssiDoman Completed Sale to Kappa
The sale of AssiDomän Corrugated & Containerboard to Kappa Holdings is now completed. The deal has been closed following last week’s approval of the sale by the EU Commission.
The purchase price amounts to MSEK 10,410 on a debt-free basis, of which tax debts account for MSEK 350 and interest-bearing liabilities for MSEK 4,680. The deal is expected to provide AssiDomän with a capital gain of MSEK 1,570. In addition, there will be positive tax effects of approximately MSEK 300. The transaction is expected to have a positive impact on earnings as per January 1, 2001 of approximately MSEK 1,870, corresponding to SEK 19.70 per share. The capital gain does not include the effect of translation differences on the sold units’ shareholders’ equity during the holding period.
For complete news Go to http://www.asdo.se/
Kruger Invests $45 Million in its Trois-Rivières Mill - Paper Operations Improvement Program
TROIS-RIVIERES, May 17 /CNW/ - This morning during a scrum, Montréal- based Kruger Inc. announced the completion of a $45-million capital-spending program at its Trois-Rivières Newsprint and Coated Paper Mill, resulting in an overall production capacity increase of 28 000 tonnes per year at the Royal Boulevard mill. Major production and quality improvements have already been made to Paper Machines No. 1 and 4, base stock machines, and No. 7 and No. 10 newsprint machines. The work was carried out between November 2000 and June 2001 and required a 12 000 metric tonne production decrease.
"The mill has undergone almost continuous modernization since it was acquired by Kruger twenty seven years ago. To date, over 1 billion 200 million dollars have been invested in the Trois-Rivières mill, making it one of the largest production facilities in eastern Canada," said Gilles Dontigny, General Manager of the Trois-Rivières mill. "The $45 million capital-spending program, involving major production and quality improvements in paper operations, will allow us to meet the ever increasing requirements of our customers," added Mr. Dontigny.
For complete news Go to http://www.newswire.ca/
P. H. Glatfelter Company Announces Agreement to Sell its North Carolina Tobacco Papers Business
York, PA, Wednesday, May 16, 2001 – P. H. Glatfelter Company (NYSE: GLT) today announced that it had reached a definitive agreement to sell its Ecusta Division to RFS (US) Inc., a subsidiary of privately-held PURICO (IOM) Limited of the United Kingdom, for approximately $39 million in cash, plus the assumption of certain liabilities related to the business.
PURICO (IOM) Limited is a closely-held firm associated with the United Kingdom’s Melton Medes Group, whose founder and Chairman is businessman Nat Puri. The Group’s Robert Fletcher Company is a leader in the production of tobacco papers in the United Kingdom and China.
The transaction involves the sale of the assets of P. H. Glatfelter Company’s Ecusta mill, which produces tobacco papers and lightweight printing papers, together with the stock of the Ecusta operating subsidiaries in Australia and Canada and certain Company receivables. The Ecusta Division had approximately $170 million and $42 million in net sales for the year 2000 and the first quarter of 2001, respectively. The Company indicated that the transaction will be modestly dilutive to earnings per share. The transaction will also result in a one-time, after-tax charge against earnings of approximately $25 million, or $.59 per share, in the second quarter of 2001, when the transaction is expected to be completed. The transaction is subject to normal closing conditions.
For complete news Go to http://www.glatfelter.com
Asia Pulp & Paper Announces Completion of Sale of Indian Subsidiary
Singapore, May 11, 2001 - Asia Pulp & Paper Company Ltd. (“APP”) (NYSE: PAP) announced today the completion of the sale of Sinar Mas Pulp & Paper India Limited by Sinar Mas Mauritius Limited, a wholly-owned subsidiary of APP, to Bilt Paper Holdings Limited for a purchase price of US$62.5 million. Bilt Paper Holdings Limited is a privately held company of the BILT Group with investments and assets in the paper industry. The BILT Group is the largest paper and paperboard manufacturer in India and is controlled by the LM Tharpar Group.
Hendrik Tee, APP's Chief Financial Officer, said “We are pleased to have completed the sale of our Indian unit. This is the first sale of a non-core unit that we have completed. As we have previously announced, we plan to continue to pursue the sale of our non-core assets in China and in Indonesia.”
Mr. Tee also said “In addition to the sale proceeds of US$62.5 million, members of the APP Group also received net payments of an additional approximately US$22 million in the settlement of intercompany accounts. We plan to use these proceeds primarily to fund our working capital needs.”
For complete news Go to http://www.asiapulppaper.com/
Abitibi-Consolidated Completes Sale of Wayagamack Mill
MONTREAL, May 9 /CNW/ - Abitibi-Consolidated Inc. announced today that the Company has completed the sale of its Wayagamack mill in Trois-Rivières, Québec to Kruger Wayagamack Inc., a subsidiary of Kruger Inc., for $58 million, plus working capital, except trade receivables. The mill has an annual capacity of 180,000 metric tonnes of value-added papers and employs close to 500.
Kruger has indicated plans to convert the mill over time to produce a full range of lightweight coated papers.
"As part of our ongoing effort to divest our non-core assets, this sale supports our strategy of creating a portfolio that is low-cost and high- quality," said John Weaver, President and CEO. "We are pleased with the outcome and believe the sale delivers the best value to all our stakeholders and allows the mill's full potential to be developed."
For complete news Go to http://www.abicon.com/
Capacity Boost for LignoTech South Africa
09 May 2001 Johannesburg - Borregaard of Norway and Sappi Saiccor of South Africa today announced that they plan to expand capacity at LignoTech South Africa, its lignosulphonate plant in Umkomaas, South Africa, through the introduction of a new production line. A feasibility study is currently being undertaken. Production will be boosted from a current 55,000 tons up to 150-200,000 tons and the investment of the expansion will amount to US$20-30 million.
LignoTech SA is a 50/50 joint venture between the two companies and the present plant, which opened in March 1999, has already exceeded its original design capacity. LignoTech SA produces lignosulphonate, which is based on the binding agent of wood, and a co-product of pulp production. Lignin based products are used as dispersing agents in concrete, textile dyes, pesticides, ceramics and as binding agents in briquetting, animal feed and dust suppression.
For complete news Go to http://www.sappi.com
Willamette Rejects Weyerhaeuser's $50 per Share Offer
Sends Letter To Weyerhaeuser Board
PORTLAND, ORE. – May 9, 2001 – Willamette Industries (NYSE:WLL) today announced that its Board of Directors has unanimously voted to reject Weyerhaeuser Company’s (NYSE:WY) revised $50 per share offer as inadequate and not in the best interests of Willamette shareholders. The Board is strongly recommending that shareholders not tender their shares and withdraw any shares that they may have previously tendered.
Willamette also announced that its Board sent the following letter to Weyerhaeuser’s Board informing them of its unanimous recommendation:
For complete news Go to http://www.wii.com
International Paper Announces Purchase Agreement for Flexible Packaging Business
PURCHASE, N.Y., May 8 /PRNewswire/ -- International Paper (NYSE: IP) announced today the signing of a purchase agreement to sell its Flexible Packaging Business on May 7, 2001 to a company sponsored by The Sterling Group, L.P., a Houston, Texas, based private equity firm. Details of the deal were not disclosed. This transaction, which is expected to close at the end of June, is subject to customary closing conditions.
"We are pleased that Sterling will maintain Flexible Packaging's leadership in this industry and provide the focus the Flexible Packaging Business needs to grow and serve its customers better," said Tom Gestrich, senior vice president, Consumer Packaging.
For complete news Go to http://www.internationaal.com
Kimberly-Clark Increases Stake in Australian Joint Venture
DALLAS, May 7, 2001 -- Kimberly-Clark Corporation (NYSE: KMB) announced today it is purchasing an additional 5 percent stake in its current 50/50 Australian joint venture, Kimberly-Clark Australia, for A$77.5 million (approximately US$39 million). The company and its joint venture partner since 1963, Amcor Limited (AU: AMC; Nasdaq: AMCR), will exchange options for the purchase by Kimberly-Clark of the remaining 45 percent stake for A$697.5 million (approximately US$355 million) within the next four years.
K-C Australia is a leading manufacturer of tissue, personal care and health care products in Australia and New Zealand. The company holds the No. 1 position in most of its product categories. With six manufacturing facilities and nearly 1,900 employees, the joint venture achieved 2000 sales of A$856 million (approximately US$500 million), an increase of 12 percent from the previous year.
For complete news Go to http://investor.kimberly-clark.com/
Hercules Reports 1Q 2001 Results
CONTINUES PROCESS TO SELL OR MERGE COMPANY
WILMINGTON, DE, MAY 7, 2001 . . . Hercules Incorporated (NYSE: HPC) today reported sales for the first-quarter ending March 31, 2001 of $702 million, down 4% on a comparable basis from the prior year. The company recorded a loss of $.09 per diluted share in the quarter on a reported and recurring basis. This compares to diluted earnings per share in the first quarter 2000 of $.34 on a reported basis and $.35 on a recurring basis.
Earnings during the quarter included a non-cash loss of $.03 per diluted share from the company’s equity interest in C.P. Kelco.
The company reported recurring profit from operations of $63 million, 34% lower than the same period last year on the same business basis. This reflects the impact of challenging conditions in the chemical industry as well as soft demand in key markets. A number of factors including higher energy, freight and raw material costs, as well as unfavorable foreign currency exchange translation further reduced results.
For complete news Go to http://www.herc.com
The Quebec Govt. & Kruger Participate in the Re-Launching of the Wayagamack Mill
A 300 Million Dollar Investment and Conservation of 475 Jobs in Trois-Rivières
Trois-Rivières, May 4, 2001 – Québec Premier, Bernard Landry, and Mr. Joseph Kruger II, Chairman and Chief Executive Officer of Kruger Inc., today announced the conclusion of a partnership agreement that will permit the re-launching of the Wayagamack Mill in Trois-Rivières. In addition, the Québec government—through SGF Rexfor, an affiliate of the Société générale de financement (SGF)—and Kruger Inc. will be partners in a significant modernization project that will generate an investment of over 300 million dollars and save 475 jobs in the Mauricie region.
Mr. Landry and Mr. Kruger were accompanied by Mr. Gilles Baril, Minister of State for the Regions, Minister of Industry and Commerce and Minister of Sports and Recreation; Mr. Jacques Brassard, Minister of Natural Resources; Mr. Guy Julien, Member for Trois-Rivières and Minister of Revenue, as well as Mr. Claude Blanchet, Chairman, President and Chief Executive Officer of SGF.
For complete news Go to http://www.kruger.com
American Tissue Inc Affiliate Purchases the Assets of Ponderosa Fibres
HAUPPAUGE, N.Y., May 3 -- American Tissue Inc., the fourth largest tissue manufacturer in the United States, announced today that an affiliate of the Company has entered into a definitive agreement to purchase the assets of Ponderosa Fibres of America, Inc., located in Memphis, Tennessee; Oshkosh, Wisconsin; and Augusta, Georgia. The acquisition is subject to bankruptcy court approval.
Mehdi Gabayzadeh, President and Chief Executive Officer of the Company, said that this source of fibre in close proximity to our mills will enable us to better control quality and cellulose raw material pricing. Additionally, our affiliated group of companies are now net users of over 1 million tons annually of secondary fibers. The affiliated group produces tissue, printing and writing papers, and woodpulp. Through our affiliates, American Pad & Paper and American Forms, we maintain premier positions in the USA stationery and continuous forms businesses.
For complete news Go to http://www.americantissue.com
Hercules Completes Resins Sale to Eastman
WILMINGTON, Del.May 1, 2001--Hercules Incorporated (NYSE:HPC - news) today announced that it has completed the sale of its hydrocarbon resins and select portions of the rosins resins businesses to Eastman Chemical Company (NYSE:EMN - news). Gross proceeds from the divested businesses are approximately $244 million. In addition, Hercules will retain net working capital of approximately $22 million. The proceeds from the divestiture will be used by Hercules to reduce debt.
About 700 Hercules employees will become Eastman employees. Hercules facilities included in the divestiture are in Jefferson, Pennsylvania; Middelburg, The Netherlands; Stonehouse, England; and Uruapan, Mexico.
Additionally, unit operations were acquired, and will be operated under contract by Hercules, at shared facilities in Savannah, Georgia, and Franklin, Virginia. Products are being made for Eastman at four resin operations sites that remain with Hercules. They are at Hattiesburg, Mississippi; Brunswick, Georgia; Tampere, Finland; and Sobernheim, Germany.
For complete news Go to http://www.herc.com/
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