Paper Industry News for Oct. 99

PAPER INDUSTRY NEWS- OCTOBER

This page contains pulp and paper industry news of Oct.99.

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NEWS - OCTOBER 99

Court Grants Final Approval of Merger of Weyerhaeuser and MacMillan Bloedel

(VANCOUVER, Oct. 29 /CNW/) - MacMillan Bloedel Limited announced today that the Supreme Court of British Columbia has granted final approval of the plan of arrangement of Weyerhaeuser and MacMillan Bloedel. The merger is expected to be completed on or about November 1, 1999 and is subject to customary closing conditions.

For complete news Go to http://www.newswire.ca/releases/October1999/29/c8911.html

ABITIBI-CONSOLIDATED Reports Third Quarter Net Loss of $37 Millions

CONTINUES TO LOWER COSTS AND BALANCE SUPPLY

(MONTREAL - October 28, 1999) - Abitibi-Consolidated reported a third quarter net loss today of $37 million, or 19 cents per fully diluted common share. This is $51 million, or 27 cents per fully diluted common share better than the second quarter net loss of $88 million. The current quarter's net loss is also $15 million lower than the $52 million net loss recorded in the third quarter of 1998.

For Complete News Go to http://www.abitibiconsolidated.com

CHANDLER: GASPESIA Mill to Close Permanently

(MONTREAL, Oct. 28 /CNW/) - Abitibi-Consolidated Inc. announced today that, as a result of an in-depth re-examination of the long term newsprint market, it must permanently close its Gaspesia paper mill at Chandler. The Company has concluded that excess production capacity, both in its own network and in the entire industry, requires urgent measures to re-establish a balance between supply and demand.

For complete News Go to http://www.newswire.ca/releases/October1999/28/c8493.html

DOMTAR Reports 3rd Quarter Net Earning up 150% Cmpared to1998

(MONTREAL, Oct. 28, 1999) - Domtar Inc. announced today net earnings of $50 million, or $0.27 per common share, for the quarter ended September 30, 1999, compared with $20 million, or $0.12 per common share, in the corresponding period of 1998. During the latest quarter, Domtar recorded an operating profit of $111 million, compared to $60 million for the third quarter of 1998. Sales for the latest quarter were $794 million, compared to $653 million, for the corresponding period of 1998.

For Complete news Go to http://www.domtar.com/domtar/fina/ir-0003.htm

Minerals Technologys to Build a PCC Satellite Plant at a Paper Mill in Japan

Company’s First Satellite in the World’s Second Largest Paper Market

(NEW YORK, October 27, 1999) Minerals Technologies Inc. announced today that its majority-owned joint venture, Specialty Minerals Fimatec Ltd., has signed an agreement with a major Japanese paper manufacturer for the construction of a precipitated calcium carbonate (PCC) satellite plant at a paper mill in Japan.

At the request of the paper company, their name and the location of the paper mill will not be disclosed until early next year. This will be Minerals Technologies’ first PCC satellite plant in Japan, and the company’s fifty-sixth satellite plant worldwide. The joint venture is between Mintech Japan K.K., a wholly owned subsidiary of Minerals Technologies, and Fimatec Ltd., a supplier of ground calcium carbonate to the Japanese paper industry. This joint venture was formed in 1997 to promote PCC to the Japanese paper industry.

For complete news Go to http://www.shareholder.com/minerals/news/19991027-11632.htm

Weyerhaeuser Receives Investment Canada Approval To Complete Acquisition of MacMillan Bloedel

(FEDERAL WAY, Wash.Oct. 26, 1999) The Hon. John Manley, Minister of Industry and Minister Responsible for Investment Canada, has approved the planned acquisition of MacMillan Bloedel Limited by Weyerhaeuser Company. In approving the acquisition, the Minister found the transaction provides a net benefit to Canada for purposes of the Investment Canada Act.

In approving the acquisition, the Minister found the transaction provides a net benefit to Canada for purposes of the Investment Canada Act. Weyerhaeuser has agreed to continue to actively support Canada’s three national forest technology organizations, to appoint a chief science officer with broad responsibilities who would reside in the company’s Canadian head office and to provide enhanced support to university research initiatives in Canada. Weyerhaeuser also said its Canadian head office would have significant management responsibilities for the company’s Canadian operations.

For complete news Go to http://www.weyerhaeuser.com/news/1999/102699.htm

Canadian Newsprint Industry's Capacity Utilization and Shipment Up in Sept. 99

MONTREAL, Oct. 26 /CNW/ - The Canadian newsprint industry operated at 90% of its capacity in September compared to 80% for the same month in 1998-at which time there was a strike in Eastern Canada. Total Canadian shipments are up 22.5% in comparison to the same period last year.

On a regional basis, domestic deliveries expanded 12.1%, and sales to the U.S. and overseas grew 17% and 44% respectively. At the end of September, Canadian newsprint producers held 392 000 tonnes in inventory, down 62 000 tonnes from the previous month.

For complete monthly Statistics Go to http://www.newswire.ca/releases/October1999/26/c7444.html

Norampac Registers a Sharp Rise in its Results

(Montreal (Quebec) October 26, 1999) Norampac Inc. (“Norampac”) announces net earnings of $14M for the third quarter of 1999, compared with $2M for the corresponding quarter in 1998 and with $8M for the second quarter of 1999. Net sales were $249M for the quarter ended September 30, 1999, compared with $236M for the corresponding quarter in 1998 and with $225M for the second quarter of 1999.

Third quarter net earnings increased by $12M compared with the corresponding quarter in 1998. This increase is explained by a decrease in operating costs, the optimization of manufacturing mills and converting plants as well as an increase in the average selling price for our products.

For complete news Go to http://www.cascades.com/english/04_setup.htm

Repap Enterprises Inc. Reports 1999 Third Quarter Results

(STAMFORD, CT, Oct. 21 /CNW/) Repap Enterprises Inc. today reported results for the third quarter ended September 30, 1999. Repap recorded a loss for the quarter of $13.8 million ($0.02 per share) compared with a net loss of $12.2 million ($0.02 per share) in the third quarter of 1998.

Revenues from operations for the third quarter of 1999 were $160.4 million, down $12.3 million or 7% from revenues of $172.7 million in the third quarter of 1998. Revenues from coated paper were $139.8 million, down $16.5 million from the third quarter of 1998, reflecting mainly the impact of an 11% reduction in average coated paper prices due to weaker paper markets. Pulp revenues for the third quarter of 1999 were $15.9 million, up $4.9 million from the third quarter of 1998, reflecting mainly the impact of increased shipments.

For complete news Go to http://www.newswire.ca/releases/October1999/21/c5756.html

Georgia-Pacific Group Reports Strongs Third Quarter Eearning

(ATLANTA, GA, Oct. 21, 1999), the pulp, paper and building products business of Georgia-Pacific Corp., today reported net income of $230 million ($1.31 diluted earnings per share) for the three months ended Oct. 2, 1999, compared with net income of $39 million (22 cents diluted earnings per share) for the 1998 third quarter.

Quarterly results for 1999 were highlighted by a third-quarter earnings record in building products manufacturing, improvements in the group's pulp and paper businesses, and solid operating profits from the newly acquired paper distribution subsidiary, Unisource Worldwide. Results from Unisource were included for the entire quarter.

For complete news Go to http://www.gp.com/center/gpnews/c-1555.html

Albany International Announces Plant Consolidation

(ALBANY, N.Y., Oct 21 /PRNewswire/) Albany International (NYSE: AIN - news) announced today plans to close its Simpsonville, South Carolina, press and dryer fabrics manufacturing facility. Most manufacturing operations will be transferred to the Company's Wangner Systems Corporation (``WSC'') subsidiary, which was acquired in August as part of the Geschmay Group.

WSC's facility in Greenville, South Carolina, which will become one of the largest paper machine clothing operations in the world, currently manufactures products similar to those made at Albany's Simpsonville facility. In January, Albany initiated a global restructuring plan that began with an early retirement program as well as rationalization of operations in the U.S. and Europe. This consolidation at Greenville, South Carolina, is the continuation of this rationalization of our plants following the recent acquisition. Many Simpsonville employees will be offered the opportunity to transfer to WSC or to other Albany operations.

For complete news Go to http://biz.yahoo.com/prnews/991021/ny_albany__1.html

Rolland Pursues the Optimization of its Investments

Quarterly Results Continue to Improve

(ST-JEROME, Quebec, Oct. 20 /CNW/ )- Rolland Inc. (``Rolland'') announces net earnings of $4.3M, or $0.18 per share for the third quarter of 1999, compared with $4.1M, or $0.17 per share for the corresponding quarter of 1998.

The Corporation registered net sales of $179M for the quarter ended September 30, 1999, an increase of 5% on net sales for the corresponding quarter of 1998. For the nine-month period ended September 30, 1999, the Corporation registered net earnings of $10M, or $0.43 per share on net sales of $514M, compared with record net earnings of $15.7M, or $0.68 per share on net sales of $506M for the nine-month period ended September 30, 1998.

For complete news Go to http://www.newswire.ca/releases/October1999/20/c5501.html

Jacobs Receives Multiyear Contract from Louisiana-Pacific

(HOUSTON--(BUSINESS WIRE)--Oct. 19, 1999--Jacobs Engineering Group Inc. (NYSE:JEC - news) announced today that it has received a multiyear contract from Louisiana-Pacific Corporation (NYSE:LPX - news) to provide engineering services for several of Louisiana-Pacific's manufacturing locations. The contract value was not disclosed. Louisiana-Pacific is undertaking an aggressive program to increase return on capital and improve manufacturing operations. A key element of this program includes creation of a multiyear Capital Project Alliance with Jacobs. The Alliance will manage and execute capital projects at many of Louisiana-Pacific's 90 North American manufacturing locations. This group's initial task will be to complete multiple projects currently planned and valued at more than $100 million.

For complete news Go to http://biz.yahoo.com/bw/991019/tx_jacobs__1.html

PaperExchange.com and Verticlenet.com in Partnership

Companies Enter Exclusive Multi-year Agreement to Combine Products, Services and Content to Deliver Value Across the Full Range of Buyers and Sellers

BOSTON and HORSHAM, Penn.--(BUSINESS WIRE)--Oct. 18, 1999-- PaperExchange.com, the largest marketplace for the pulp and paper industry, and VerticalNet, Inc. (Nasdaq:VERT - news), the Internet leader and first mover in business-to-business vertical communities of commerce, today announced a strategic alliance designed to leverage the complementary strengths of the industry's two pre-eminent online paper communities. This relationship will allow both companies to optimize resources and to jointly drive and reap the benefits of new e-commerce opportunities.

For complete news Go to http://biz.yahoo.com/bw/991018/ma_paperex_1.html

CEP Workers Occupy Thorold Mill

(TORONTO, Oct. 18 /CNW/ )- Early this morning CEP workers and Mike Lambert National Representative and Chief Negotiator have occupied the former Gallaher Thorold Paper Mill.

On October 15 a reasonable cash bid for the assets of the Mill was rejected by the receiver (Ernst & Young) and The Toronto Dominion Bank. lt is the CEP belief that this group has the financial resources to complete the purchase and operate the mill. Regrettably we were informed on Friday evening by the Receiver and TD Bank that there recovery in liquidation slightly exceeds the cash offer. Lambert states ``The decision to liquidate is first and for most morally reprehensible and a poor business decision''. Operating the mill will save approximately 1200 local jobs and give the TD Bank an opportunity to recover their investment. Lambert says ``That the occupation will continue until the TD bank accepts the cash bid!''.

Canadian Chemical Market Pulp Production up 14% in Sept. 99

Canadian Pulp and Paper Association - MONTHLY MARKET PULP STATISTICS

(MONTREAL, Oct. 15th, /CNW/) - The Canadian chemical market pulp industry produced 759 000 tonnes in September, up 95 000 tonnes, or 14 percent, over September 1998. The industry shipped 827 000 tonnes, which was 11 percent higher than the same period last year. Producer stocks ended the month at 568 000 tonnes, down 69 000 tonnes from August. For the month, domestic shipments totaled 66 000 tonnes, 3 percent higher than September of 1998; deliveries to the United States, at 263 000 tonnes, were up 6 percent over the same period last year; shipments to the Asia/Africa region were 179 000 tonnes, an increase of 36% between September 1999 and September 1998. At current shipping rates, it is estimated that Canadian producers held 22 days of supply at the end of September, four days less than at the end of August.

For Complete Statistic Go to http://www.newswire.ca/releases/October1999/15/c3982.html

SNC-LAVALIN Signed an Accord with Morocco to Build a Pulp and Paper

SNC-LAVALIN, Montreal, QC, signed an accord with Morocco to build a Pulp and Paper plant worth up to US$ 250 million. The city of Jerada was selected as the facility's location; operations are scheduled to begin in 2003. Five hundred direct jobs are expected to be created, as are 10,000 indirect jobs.

Pope & Talbot Reports Improved third Quarter Earnings

(PORTLAND, OR., Oct. 14, 1999) Strong lumber markets and improving pulp markets resulted in profits of $7.2 million, or $.53 per share, for the third quarter of 1999. This is a dramatic improvement over the prior quarter's earnings of $2.9 million, or $.22 per share. Net income for the nine months ended September 30, 1999 was $7.8 million, or $.58 per share. Revenues were $127.7 million for the quarter and $357.2 million year-to-date. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $24.7 million for the third quarter and $44.3 million year-to-date.

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

Boise Cascade Reports Increased Third-Quarter Earnings

(BOISE, ID, Oct. 14, 1999, PRNewswire) The following was issued by Boise Cascade Corporation: Boise Cascade Corp. (NYSE: BCC - news) today reported third quarter 1999 net income of $49.0 million, or 74 cents per diluted share. By comparison, net income in the third quarter of 1998 was $12.4 million, or 14 cents per diluted share, before nonroutine items, and $47.1 million, or 72 cents per diluted share, including a net gain of $34.7 million, or 58 cents per diluted share, from an insurance settlement.

Net income in the second quarter of 1999 was $34.4 million, or 52 cents per diluted share, before nonroutine items, and $59.1 million, or 92 cents per diluted share, when including a pretax $40.7 million reversal of restructuring reserves established in 1998.

For complete news Go to http://www.prnewswire.com/gh/cnoc/comp/109525.html

Champion International Corp. Reports Significantly Improved 3 Q Earnings

(Stamford, CT, October 14, 1999) – Champion International Corporation (NYSE:CHA) today reported third quarter net income of $75 million or 78 cents per share. This includes an extraordinary charge of $2.3 million or two cents per share for the early retirement of debt. Earnings per share increased 144% over the third quarter of last year and 90% over last quarter. Third quarter 1999 results compare to net income of $39 million or 41 cents per share in the second quarter of 1999 and net income of $31 million or 32 cents per share in the third quarter of last year.

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

Republic Group Announces Record Earnings -Up 93%

AND RECORD SALES—UP 40% FOR THE SEPTEMBER QUARTER

(Hutchinson, KS, Oct. 13, 1999--Republic Group Incorporated (NYSE:RGC) announced today new all-time quarterly records for both consolidated net income and net sales for the quarter ended September 30, 1999. Consolidated net income increased 93% to $6,341,000 or $0.53 per diluted share from $3,285,000 or $0.28 per diluted share posted in the September 1998 quarter. For the September 1999 quarter, net sales increased 40% to $46,488,000 compared to $33,185,000 recorded in the September 1998 quarter. This was the Company’s second consecutive quarter of record earnings and sales.

For complete news Go to Company site at http://www.republic-group.com/pr-oct1399.htm

International Paper Reports Strong Improvement in Operating Earnings for Third Quarter

(Purchase, N.Y., Oct. 12, 1999 ) International Paper reported third-quarter 1999 earnings of $192 million ($.46 per share) before special and extraordinary items. This is an increase of $92 million ($.22 per share) over second-quarter 1999 net earnings, which were $100 million ($.24 per share). Third-quarter 1998 earnings before extraordinary items were $81 million ($.20 per share). Third-quarter 1999 net sales were $6.3 billion, up $300 million from the previous quarter and the year-earlier period.

All previous periods have been restated to include Union Camp Corporation. "Our markets have been improving all year and the results we announced today clearly show that," noted John Dillon, chairman and chief executive officer. "In each month of the quarter, our earnings increased and we believe the improved quarterly earnings trend will continue for the next year."

For complete news Go to Company site at http://www.internationalpaper.com/ca/page/pr101299.html

Weyerhaeuser Third Quarter Earnings Increase 115 Percent

Company Announces New Initiative to Streamline Support Services

(FEDERAL WAY, WA, Oct. 12, 1999) Weyerhaeuser Company (NYSE: WY) today reported third-quarter net earnings of $237 million, or $1.18 per common share. This is an increase of 115 percent from $110 million, or 56 cents per common share, for the same period last year.

Net sales for third quarter 1999 were $3.1 billion, compared with $2.7 billion for the same quarter last year.

For complete news Go to Company site at http://www.weyerhaeuser.com/news/1999/101299.htm

Minerals Technologies Secures Agreement to Supply PCC for a New 400,000 TPA Paper Machine for SOPORCEL in Portugal

(NEW YORK, Oct. 08, 1999 ) Minerals Technologies Inc. (NYSE: MTX) announced today that its majority-owned subsidiary, Specialty Minerals (Portugal) S.A., has secured a long-term contract to supply precipitated calcium carbonate (PCC) to a new paper machine now under construction at Figueira da Foz, Portugal.

The 400,000 ton-per-year paper machine is owned by Soporcel Sociedade Portuguesa de Papel, S.A. The new PCC facility, which will be in operation by the end of the second quarter of 2000, will be equal to three satellite units. A unit produces between 25,000 and 35,000 tons of PCC per year, which means this facility will be able to produce between 75,000 and 105,000 tons of PCC yearly. This facility will be adjacent to the present two-satellite unit plant Minerals Technologies now operates to provide filler-grade PCC to the paper company. Minerals Technologies has supplied PCC to Soporcel's existing machine at Figueira da Foz since 1996.

For complete news Go to http://www.shareholder.com/minerals/news/19991008-11277.htm

Harnischfeger Considering Sale of Beloit

(MILWAUKEE WI, Oct. 8, 1999) Harnischfeger Industries, Inc. today announced it is actively considering the sale of Beloit Corporation, the sole North American based producer of pulp and paper machinery and systems.

The company believes an expeditious sale of Beloit, either as a whole or as separate business units, offers the best opportunity at this time to maximize the value of the Beloit business to its creditors and other stakeholders. Robert N. Dangremond, Chief Restructuring Officer of the company, will direct this process. The company indicated it has recently received several unsolicited indications of interest in all or parts of Beloit.

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

Metso's Automation and Control Technology Combines its North American Operations

(HELSINKI, Finland, Oct. 7, 1999) Metso Corporation's Automation and Control technology business area, Neles Automation, will combine its Shrewsbury site operations with its other business units in the USA.

This is part of Neles Automation's long-term strategy to enhance profitability by improving the cost efficiency as well as customer support and service in its key business areas. Valve manufacturing in Shrewsbury, Massachusetts, will be moved to Chihuahua where Neles Automation's Jamesbury Division manufactures valves. This relocation concerns approximately 100 employees. The resulting annual savings are estimated to reach USD 5 million.

For complete news Go to http://www.nelescontrols.com/act/index.nsf

Rayonier Selects Jacksonville for New Corporate HQ

(STAMFORD, CT, October 6, 1999) Rayonier said today that it has selected Jacksonville, FL to be the site of its new corporate headquarters and will relocate from Stamford, CT early next year. The company had announced in August its intention to relocate to the Southeast to reduce costs and be nearer to most of its operations.

Rayonier said that a headquarters in Jacksonville would provide cost savings along with administrative and operational synergies. The company said its decision was based in part on an economic incentive package offered by Jacksonville and the State of Florida.

For complete news Go to Company web site http://206.105.0.64/ray_news_06oct99.htm

Valmet Fibertech´s Acquisition of Kvaerner Panel Systems now Approved

(SUNDSVALL (Sweden), 99-10-06) - The earlier announced Letter of Intent covering the acquisition by Valmet Fibertech (former Sunds Defibrator), Sweden, of the technology, machine program and know-how of Kvaerner Panel Systems GmbH, Germany, has now received the necessary government and board approvals.

As a result, Kvaerner Panel Systems GmbH, including its Belgian subsidiary, De Mets N.V., is part of the Valmet Panelboard business line as of October 1, 1999. With this acquisition, combined with the acquisition of Küsters Press Division in July this year, Valmet Fibertech confirms its long-term commitment to the panelboard industry and further strengthens its ability to serve the industry, especially within the particleboard area.

For complete news Go to Company web site http://www.valmet.com/fpt/webnews.nsf/homepage?Openview&Count=6

BC Approves Change-in-Control to Weyerhaeuser for Forest Tenures

(FEDERAL WAY, WA/VANCOUVER, Oct. 5, 1999)- Weyerhaeuser Company and MacMillan Bloedel Limited (MB) announced that British Columbia Minister of Forests, Hon. David Zirnhelt, has offered approval in principle to the change of control of forest tenures and permits to Weyerhaeuser Company from MacMillan Bloedel.

The license areas include more than 800,000 hectares of public forest land (more than 2 million acres) located in B.C.'s coastal region, with an annual harvest volume of 5.6 million cubic meters (196.5 million cubic feet). The approval process included public hearings in nine communities.

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

Westvaco To Acquire Temple-Inland's Bleached Paperboard Mill

$575 Million Deal Will Be Accretive In First Year

(NEW YORK, NY, October 4, 1999) Westvaco Corporation (NYSE:W) today announced a definitive agreement to acquire Temple-Inland Inc.'s bleached paperboard mill in Evadale, TX, for $575 million for the fixed assets and approximately $50 million in working capital. The cash transaction also includes a long-term contract with Temple-Inland for the supply of wood fiber to the mill. The boards of directors of both companies have unanimously approved the transaction, which is scheduled to close in December, pending the necessary government approvals and other customary conditions.

For complete news Go to Company web site http://www.westvaco.com/news/newslink3.htm

GEORGIA-PACIFIC, CHESAPEAKE Finalize Joint Venture

(ATLANTA, GA. and RICHMOND, VA - Oct. 04, 1999). - Georgia-Pacific Corp. (NYSE: GP) and Chesapeake Corporation (NYSE: CSK) today completed a previously announced agreement to create Georgia-Pacific Tissue, a joint venture in which the two companies have combined their away-from-home tissue businesses.

"This agreement establishes Georgia-Pacific Tissue as a significant, competitive player in the commercial tissue business in North America," said A.D. "Pete" Correll, chairman and chief executive officer of Georgia-Pacific. Thomas H. Johnson, president and chief executive officer of Chesapeake, said, "This agreement allows our joint tissue operations to be more competitive. It also provides Chesapeake Corporation with the financial flexibility to pursue meaningful growth opportunities as we continue to focus on strengthening our overall capabilities in specialty packaging and merchandising services."

For complete news Go to Company web site http://www.gp.com/center/gpnews/c-1549.html

Westvaco Announces Restructuring Plan

Company Expects $35 Million In Annual Pretax Savings

(NEW YORK, NY, October 4, 1999) -- Westvaco Corporation (NYSE:W) today announced a series of actions to improve the company's performance and a related pretax charge against fiscal fourth quarter 1999 earnings that is expected to total about $85 million. The charge is primarily a noncash write-down of assets. "The actions that we are announcing today are a result of our strategic review process and are principally intended to enhance the strength and focus of our packaging-related businesses," said John A. Luke, Jr., Chairman and CEO. "We expect to obtain about $35 million in pretax annual savings from both operational efficiencies and from scaling back operations that no longer meet our financial or strategic objectives."

For complete news Go to Company web site http://www.westvaco.com/news/newslink2.htm