Paper Industry News For Nov. 1999

PAPER INDUSTRY NEWS - NOV. 1999

This page contains pulp and paper industry news for Nov. 1999.

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NEWS - NOVEMBER 1999

SCA Acquires the Portuguese Tissue Company Nisa

Nov., 30, 1999 - SCA has acquired all the shares in the Portuguese tissue company Nisa, which has a market share of approximately 20%. The acquisition, which is an additional step in the expansion and acquisition plan presented earlier this year, strengthens SCA’s position in the hygiene-products segment in the Iberian Peninsula.

For complete news Go to http://www.sca.se/

Westvaco To Acquire Mebane Packaging Group

Action significantly increases Westvaco's participation in premium packaging markets

NEW YORK, NY, November 29, 1999 -- Westvaco Corporation (NYSE:W) today announced a definitive agreement to acquire Mebane Packaging Group, Inc., a leading supplier of packaging for pharmaceutical products and personal care items with more than $130 million in annual sales. Terms of the transaction were not disclosed. Subject to regulatory review, the sale is scheduled to close by the end of the calendar year.

For complete news Go to http://www.westvaco.com/news/

Mass Rally to keep Chandler Paper Mill Alive

(MONTREAL, Nov. 26, 1999) Several hundred demonstrators marched in downtown Montréal to Abitibi-Consolidated headquarters, today, with a clear message for the paper giant to re-open its Chandler paper mill.

Members of the Communications, Energy and Paperworkers Union from Québec, Ontario and New Brunswick joined other Quebec Federation of Labour affiliates, representatives from community organizations, and many others in a show of solidarity for the Chandler paperworkers who travelled 13 hours by train for the rally.

For complete news Go to http://www.newswire.ca/releases/

Valmet Supplies Wood Handling and Drying Technology for Stora Enso Kaukopää Mill in Finland

26.11.1999 Valmet Fiber Technology will supply the Stora Enso Kaukopää mill with systems for debarking and chipping of wood and for pulp drying. The mill is situated in southeast Finland. The order forms part of the modernization and expansion project currently under way in the mill.

Valmet Chemical Pulping will supply a complete pulp drying process, which enables drying of all pulp grades produced by the mill: softwood, hardwood kraft pulp and CTMP pulps. The design capacity of the pulp drying line is 1,000 tons of chemical pulp a day.

For complete news Go to http://www.valmet.com/fpt/webnews.nsf

MEAD Sells its 50 % Share of NORTHWOOD INC.

DAYTON, OH. November 24, 1999 – The Mead Corporation (NYSE: MEA) announced today that the company has sold its 50 percent ownership in Northwood Inc. to Canfor Corporation. Mead received $240 million (Canadian) in cash and convertible debentures of $77.5 million (Canadian) in the transaction. Canfor also acquired the 50 percent share of Northwood held by Nexfor Inc. and assumed Northwood’s long-term debt. Mead Pulp Sales and Northwood Panelboard Company are not included in the sale of Northwood Inc.

For complete news Go to http://www.mead.com/

Valmet and Cartiere Burgo Sign Contract for World's Largest LWC Papermaking Line

Nov. 23, 1999 Valmet has today signed a contract with Cartiere Burgo S.p.A of Italy to supply their new light-weight coated (LWC) offset paper making line, valued at appr. EUR 250 million. The contract thus confirms the letter of intent signed in August. Start-up is scheduled for year-end 2001.

With a design speed of 2,000 m/min and a wire width of 10,450 mm, permitting an annual output of appr. 400,000 tonnes, Verzuolo's PM 9 will be one of the world's largest LWC paper production lines.

For complete news Go to http://www.valmet.com/

Weyerhaeuser to Acquire TJ International for $720 Million

(FEDERAL WAY, WA. - Nov. 23, 1999) Weyerhaeuser Company (NYSE: WY), one of North America’s largest forest products companies, today announced an agreement with TJ International (NASDAQ: TJCO) that will make Weyerhaeuser the leading provider of "value added" engineered wood products.

Under the definitive agreement, Weyerhaeuser will pay $720 million in cash, or $42 per share, to acquire all outstanding shares of TJ International, a 51 percent owner and managing partner of Trus Joist MacMillan (TJM). Weyerhaeuser currently owns 49 percent of Trus Joist MacMillan, the world’s leading manufacturer and marketer of engineered lumber products.

For complete news Go to http://www.weyerhaeuser.com/news

American Israeli Paper Mills Announces That Neusiedler AG to Acquire 50.1% of its Fine Paper Operation.

(HADERA, Israel, Nov. 22, 1999) American Israeli Paper Mills Ltd. (AIPM) (Amex: AIP; ASE) and Mr. Yaki Yerushalmi, Chairman of the Board of Directors and CEO of AIPM, have announced that Neusiedler AG of Austria and AIPM signed an agreement yesterday, pursuant to which Neusiedler AG would acquire 50.1% of the AIPM fine paper operation.

Neusiedler AG is the leading European manufacturer of high quality fine paper. Its reputation is supported by unique manufacturing technologies, especially in paper intended for use in copiers, laser and inkjet printing. The company operates four plants in Austria and Hungary, with an annual production capacity of some 520 thousand tons.

For complete news Go to http://biz.yahoo.com/prnews/991122/

Rock-Tenn Co.Announces Closure of Lynchburg, VA, Laminated Paperboard Products Plant

NORCROSS, Ga., Nov. 19 /PRNewswire/ -- Rock-Tenn Company (NYSE: RKT - news) today announced that it intends to close its Lynchburg, Virginia, laminated paperboard products converting plant and consolidate the business into its other laminated products plants. The Lynchburg converting plant primarily manufactures components for the furniture and automotive industries and a variety of industrial products.

For complete news Go to http://biz.yahoo.com/prnews/991119/ga

Beloit Reconfigures Paper Machinery Business

(MILWAUKEE, Nov. 19, 1999) Harnischfeger Industries, Inc. (NYSE: HPH - news) today announced that, in order to conserve cash, Beloit Corporation, the sole North American based producer of pulp and paper machinery and systems, is rescaling its paper machinery group to include only the aftermarket business and portions of the tissue business. Beloit has begun discussing the impact of this decision with its customers, as well as its vendors and employees. Harnischfeger indicated that Beloit is taking these actions while Harnischfeger continues to actively pursue the orderly sale of Beloit, in whole or in part.

As part of this action, Beloit has discontinued funding its operations in the United Kingdom, Italy, and Austria and accelerated previously announced closures of certain facilities in Wisconsin and Illinois. Paper machinery operations in Canada, Brazil, Poland, Michigan and Mississippi remain operational. Other business groups within Beloit, including Beloit Manhattan (rolls and roll coverings), Pulping, Woodyard, Finishing, and OASIS, are not affected by this action and continue to be marketed as ongoing businesses.

For complete news Go to http://www.harnischfeger.com/news/releases

Jensen Acquires Edwards Paper Company

(MIAMI, Nov. 19, 1999) Eduardo and Jacqueline Flores today announced their sale of Edwards Paper Company to Tonny J. Jensen, founder of LaCour International, the privately held Red Springs, NC converter and marketer of post-consumer waste sanitary paper products.

Spanning 6 years of double-digit growth in the 100% recycled fiber business, Edwards today is a fully-integrated milling-converting producer of tissues, towels, wipes and dispensing systems with sales, manufacturing and distribution facilities in Miami and Tucson. ``We have continued to see strong demand in the away-from-home market

For complete news Go to http://biz.yahoo.com/prnews/991119/fl_edward

ABB Wins $35-Million Order at Australian Pulp and Paper Mill

(Zurich, Switzerland, November 18, 1999) - ABB, the global technology company, has won an order to build a fully integrated electrical and industrial automation system for a greenfield pulp and paper mill located in Turmut, New South Wales, Australia. The contract, valued at US$ 35 million, was placed by Visy Paper PTY LTD, of Melbourne, Australia. The mill, which will have a production capacity of 250,000 tons a year of unbleached pulp and paper, is scheduled to begin operations in the first half of 2001.

For complete news Go to http://www.abb.com/

Bowater Completes Sale of Timberlands in North and South Carolina

(GREENVILLE, S.C-Nov. 17, 1999) Bowater Incorporated (NYSE: BOW - news) today announced that Calhoun Newsprint Company, a majority-owned subsidiary of Bowater, has completed the previously announced sale of approximately 133,000 acres of timberlands in North and South Carolina to investors of Wachovia Timberland Investment Management, a business unit of Wachovia Bank, N.A., for approximately $162 million, consisting of cash and notes. The investor group includes a wholly-owned subsidiary of Teachers Insurance and Annuity Association of America, the world's largest pension system.

For complete news Go to http://biz.yahoo.com/bw/991117/

Kimberly-Clark to Acquire Safeskin in Tax-Free Transaction

Addition of Safeskin's Disposable Glove Business Gives Kimberly-Clark Complete Line of Disposable Protective Apparel in Professional Health Care

(DALLAS and SAN DIEGO, Nov. 17, 1999) Kimberly-Clark Corporation (NYSE: KMB) and Safeskin Corporation (Nasdaq: SFSK) today announced the signing of a definitive agreement for Kimberly-Clark to acquire Safeskin, a leading maker of high-quality, disposable gloves for the health care, high- technology and scientific industries.

For complete news Go to http://www.prnewswire.com/

TEMBEC Reports Record Sales and Operating Earnings

(Cranbrook, November 16, 1999) Tembec reports financial results for its fourth quarter ended September 30, 1999. Consolidated gross sales for the three months ended September 30, 1999 reached a record $568.6 million, a 23% increase from $462.1 million in the comparable period last year. Operating earnings were a record high of $84.4 million, a significant improvement over operating earnings of $68.4 million a year ago and up from $54.7 million in the previous quarter. The Company generated net income applicable to common shareholders of $28.2 million ($0.39 per share) compared to $28.0 million ($0.40 per share) in the corresponding quarter ended September 30, 1998, and $10.2 million ($0.15 per share) in the previous quarter. Free cash flow totalled $33.4 million in the quarter.

For complete news Go to http://www.tembec.ca/indexe.htm

James Cropper PLC Specialist Paper Makers Profit up 116%

(LONDON, Nov. 15, 1999) The following was released today by James Cropper PLC:

"The Group has had a much better opening half-year than last year with all three businesses trading profitably."

The Directors have decided to increase the interim dividend from 1.4p to 1.8p to rebalance the interim and final dividend. No assumption should be made as to the amount of the final dividend. ``The second half-year will be more challenging for the Papermaking Division as pulp prices are presently moving up rapidly and there will be a lag between the announcement of the increases and the resultant extra costs being reflected in paper prices.

For complete news Go to http://biz.yahoo.com/prnews/991115/james

Canadian Pulp and Paper Association - MONTHLY MARKET PULP STATISTICS

(MONTREAL, Nov. 12, 1999) - The Canadian chemical market pulp industry produced 718 000 tonnes in October, down 1 000 tonnes, or 0.1 percent, over October 1998. The industry shipped 763 000 tonnes, which was 1.8 percent lower than the same period last year. Producer stocks ended the month at 524 000 tonnes, down 44 000 tonnes from September. For the month, domestic shipments totaled 67 000 tonnes, the same level as during September of 1998; deliveries to the United States, at 282 000 tonnes, were up 9.7 percent over the same period last year; shipments to the Asia/Africa region were 120 000 tonnes, a decrease of 20 percent between October 1999 and October 1998. At current shipping rates, it is estimated that Canadian producers held 21 days of supply at the end of October, one day less than at the end of September.

For complete statistics Go to http://www.newswire.ca/releases/Nov

Southeast Paper becomes SP Newsprint

(November 12, 1999) - SOUTHEAST PAPER MANUFACTURING CO. changed its name to SP NEWSPRINT CO. Corporate offices for the company, in Atlanta, GA, will be restructured into four operating groups.

Consolidated Announces $106 Million Capital Investment Program

(WISCONSIN RAPIDS, WI, Nov. 11, 1999) The board of directors of Consolidated Papers, Inc. (NYSE: CDP) recently authorized company management to initiate capital improvements in the year 2000 estimated to cost $106 million by the time of completion.

Gorton M. Evans, president and chief executive officer, noted that, "given conditions across the paper industry, this capital budget is substantially lower than previous years, however, it continues Consolidated's long-standing practice of targeted reinvestment in its existing facilities, and it will enable Consolidated to maintain outstanding product quality while enhancing productivity."

For complete news Go to http://www.consolidatedpapers.com/news.html

Donohue and SGF Rexfor Agree to Sell Matane Pulp Mill to Tembec

(MONTRÉAL, Québec, November 10, 1999) - Donohue Inc., SGF Rexfor and Investissement Québec inc. announce that they have signed an agreement with Tembec Inc., by which the latter proposes to purchase all of the issued and outstanding shares of Donohue Matane Inc.

The agreement is conditional on formal approval by the boards of directors of all four parties, as well as on a due diligence investigation by Tembec. The deal is expected to close at the end of November.

For complete news Go to http://www.donohue.ca/

Valmet will open a Technology Center in China

(Nov. 09,1999) Valmet will open a new Technology Center in the People's Republic of China. Total value of the investment is EUR 11 million. The Technology Center will strengthen the business area's market position and service capabilities in the Chinese pulp and paper industry. The Center is scheduled to be opened in spring 2001 and it will be starting with 50 employees. The Chinese pulp and paper industry will upgrade and rebuild heavily its machinery over the next few years to meet the rapid growth in demand for paper, board and tissue. The new Technology Center will be situated in the Jiangsu province near Shanghai. It will bring Valmet's fiber and paper technology know-how to the core of Chinese pulp and paper industry's growth center.

For complete news Go to http://www.valmet.com/fpt/webnews.nsf/

Pope & Talbot Announces Completion of Acquisition of Harmac Pacific Minority Interest

(PORTLAND, Ore., Nov. 8, 1999) Pope & Talbot, Inc. (P&T) (NYSE: POP - news) and Harmac Pacific Inc. (Harmac) (Toronto: HRC - news) are pleased to announce the completion of P&T's acquisition of the 40 percent of Harmac it did not already own under a plan of arrangement approved by Harmac minority shareholders in October 1999. Under the terms of the arrangement, Harmac shareholders (other than P&T) received a total of approximately C$30 million and approximately 1.5 million P&T common shares. Payment for Harmac shares tendered will be made by Montreal Trust Company of Canada, as depository agent. In conjunction with the transaction, Harmac today redeemed its 8% convertible unsecured subordinated debentures.

For complete news Go to http://www.poptal.com/lnews.htm

American Israeli Paper Mills in Negotiations with Neusiedler AG to Establish Joint Venture

(Hadera, Israel, Nov. 8, 1999) American Israeli Paper Mills Ltd. (ASE:AIP), announced that negotiations with the Austrian paper company, Neusiedler AG, regarding the establishment of a joint venture and strategic cooperation in fine paper, are at an advanced stage towards reaching a final agreement.

It is anticipated that the establishment of the joint venture will allow doubling of the production capacity in Israel, while relying on the marketing system of Neusiedler AG for exporting about 50 to 80 thousands tons per year of fine paper to the European market.

For complete news Go to http://www.aipm.co.il/ag.html

fibermarket.com Announces Initial Release of the Fiber Management Marketplace

Unique tool for the pulp and recycled paper industry unites buyers, suppliers and brokers

(ATLANTA Nov. 5, 1999) fibermarket.com, a leader in business-to-business e-commerce solutions for the pulp and recovered fiber industry, today announced the initial release of the Fiber Management Marketplace.

Developed in conjunction with industry leaders, the Fiber Management Marketplace is a tool that connects buyers, suppliers and brokers of pulp and recovered fiber in one common marketplace. fibermarket.com is conducting a controlled pilot program during which participants are able to utilize the Fiber Management Marketplace to buy and sell materials vital to the production process, track orders and plan their transactions. Throughout the pilot, users will provide their feedback to fibermarket.com, who will use the comments to further enhance the Marketplace. The Fiber Management Marketplace will be available to the entire pulp and recovered fiber industry in January 2000.

For complete news Go to http://www.fibermarket.com

Lumber Prices Lose Steam, OSB Still Hot, Pulp Prices Move Up

(EDMONTON, Nov. 4 /CNW/ )- What a difference a quarter makes, especially when it comes to lumber prices. Second quarter 1999 statistics released today by the Alberta Forest Products Association show that lumber prices were continuing on an upward trend, a trend that has since reversed. While lumber shipments by AFPA members in the second quarter were up by 96.2 million board feet, or 14 per cent, from the previous quarter, overall value was up $68.9 million or 20 per cent.

In fact, at the end of June, lumber prices for 2x4 standard and better were at US $385 per thousand board feet. Since July, lumber prices have shifted into a downward spiral, dropping below US $300 per thousand board feet by the end of October.

For complete news Go to http://www.newswire.ca/releases/November1999

FCCL Announces Major Changes to Governance, Management, Operations and Financing

(VANCOUVER, Nov. 4 /CNW/) Fletcher Challenge Canada Limited (FCCL) is today announcing a series of initiatives to lift the performance of its operations in light of the vote by minority shareholders against its proposal to merge with the Paper Division of Fletcher Challenge Limited. Fletcher Challenge Limited has informed the Board of FCCL that given the views expressed by its shareholders, it does not believe there is an equitable basis on which the proposal could be renegotiated. Accordingly, neither Board will attempt to do so.

For complete news Go to http://www.newswire.ca/releases/November1999

FCCL Minority Shareholders Reject Proposal to Acquire FCL Assets

(VANCOUVER, Nov. 2 /CNW/ -) Fletcher Challenge Canada Limited's minority shareholders voting at an extraordinary general meeting in Vancouver today turned down a proposal that would have seen the company acquire the paper division assets of its 50.8 per cent owner, Fletcher Challenge Limited (FCL), of New Zealand.

An independent committee of directors led by FCCL chairman Robert T. Stewart recommended the proposal to minority shareholders. The transaction required the support of a majority of the minority shareholders of FCCL. The proposal was also recommended to the shareholders of FCL by its board of directors, and received approval by shareholders in FCL and its paper division, Fletcher Challenge Paper, at a meeting held in New Zealand on November 1.

For complete news Go to http://www.newswire.ca/releases/Nov

MEAD ACQUIRES AT-A-GLANCE

(DAYTON, OH. November 2, 1999) The Mead Corporation (NYSE:MEA) announced today that it has completed the acquisition of the AT-A-GLANCE Group of Cullman Ventures, Inc.

AT-A-GLANCE is joining the Mead School & Office Products division, a leading manufacturer and distributor of school supplies and a provider of stationery products and computer accessories for home and office use in the U.S. and Canada. AT-A-GLANCE, with 1,800 employees, manufactures and markets calendars, diaries, appointment books, organizers and related time management and information products for the office products channel and coloring products, decorative calendars, posters and other print media products for retail distribution. AT-A-GLANCE’s products are marketed under the widely recognized AT-A-GLANCE brand. Its sub-brands Day Minder, Standard Diary, Timeline, Landmark, Day Dream and Hometown are promoted under the AT-A-GLANCE umbrella to specific markets.

For complete news Go to http://www.mead.com/corporateprofile/news

SCA Expands Packaging Operations, Acquires Danisco Pack in Denmark

(STOCKHOLM, Sweden, Nov. 1, 1999) SCA has reached an agreement covering acquisition of the Danish packaging company Danisco Pack, with operations in Denmark, Germany and Norway. At the request of SCA, units in the UK were not included in the acquisition. The acquired operations include four corrugated board plants, two converting units, special units for production of plastic inserts (EPS) and cartons, as well as a testliner mill in Grena. These include a corrugated board plant and converting unit in Germany. Annual production of corrugated board amounts to 172 million sq. m. and paper to 200,000 tons. Danisco holds a 27% market share in Denmark, which means that SCA's total market share in Denmark will amount to 44%. The acquisition complements SCA well, geographically as well as in terms of customer structure. The testliner mill, which is characterized by very high efficiency, is Scandinavia's largest mill based on recovered paper, where 90% of production is sold in the Scandinavian market. The potential for synergy gains is created through coordination of the converting operations, significantly increased paper integration and reduced investment requirements.

For complete news Go to http://www.sca.se/