| PAPER INDUSTRY NEWS - OCTOBER 2001 |
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This page contains pulp and paper industry news for October2001
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NEWS OCTOBER 2001
Sonoco Completes Purchase of Hutchinson, KS Paper Mill
HARTSVILLE, S.C., Oct. 31 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has completed its previously announced all-cash purchase of the 90,000-ton paper mill at Hutchinson, Kansas, from the privately held Republic Group LLC, it was announced today by Harris E. DeLoach, Jr., president and chief executive officer.
The mill is expected to be slightly accretive to Sonoco's earnings in the first year. The purchase price was not disclosed.
The Hutchinson mill, which had annualized sales through September 30, 2001, of approximately $30 million, has two pressure former paper machines and employs about 145 personnel. Sonoco is the mill's largest customer, purchasing paperboard for composite cans, primarily for refrigerated dough products, and for tubes.
For complete news Go to http://www.prnewswire.com
Stora Enso’s Results Improved on Previous Quarter Despite Difficult Market Conditions
Oct. 25, 2001 Stora Enso’s earnings per share excluding non-recurring items improved to EUR 0.23, compared with EUR 0.18 in the previous quarter, mainly due to lower financial costs. The profit before tax and minority interests excluding non-recurring items was EUR 287.6 million (EUR 248.3 million in previous quarter). Sales for the quarter at EUR 3 200.5 million were about 6% less than the previous quarter’s EUR 3 388.4 million. The operating profit excluding non-recurring items was EUR 339.0 million, which is 2.1% less than the previous quarter’s EUR 346.4 million and 10.6% of sales. Lower prices and decreased sales volumes were partially compensated by lower costs, mainly due to the lower average exchange rates of the Swedish krona and US dollar.
Third quarter production curtailments amounted to 706 000 tonnes, including 507 000 tonnes due to weak market demand (342 000 tonnes in the second quarter). The remainder was mainly due to machine rebuilds.
For complete news Go to http://www.storaenso.com
Bowater Announces Financial Results for the 3Q, Cut Jobs and $230 Million Timberland Sale
GREENVILLE, S.C.--(BUSINESS WIRE)--Oct. 23, 2001--Bowater Incorporated (NYSE: BOW - news) today released its financial results for the third quarter of 2001. These financial results reflect the acquisition of Alliance Forest Products Inc. on September 24, 2001. Bowater reported a net loss for the third quarter of $1.8 million, or $.04 per diluted share, on sales of $558.8 million. These results compare with net income of $50.0 million, or $.96 per diluted share, on sales of $671.8 million in the third quarter of 2000. Included in the 2001 net income is a $2.7 million, or $.05 per diluted share, gain related to asset sales, and a $9.5 million, or $.18 per diluted share, gain resulting from foreign currency changes. Before these two items, the net loss was $.27 per diluted share.
For complete news Go to http://www.bowater.com
Fine Paper North America Announces Corporate Downsizing
22 October 2001 Boston, MA – Sappi Fine Paper North America today announced the restructuring of corporate staff functions at its headquarters in Boston, Mass. and various other sales and corporate offices across the country. As part of this corporate streamlining, approximately 100 positions have been eliminated, or 10% of the salaried workforce. The corporate restructuring results from the closure of the company’s mill in
Mobile, Ala. earlier this year but also improves the competitiveness of the company in current challenging market conditions. Monte R. Haymon, President and CEO, commented, “This is a difficult but necessary decision. We must take those steps required to better position the company for long-term success and growth.“ To ease the transition for affected employees, Sappi is providing separation benefits, including outplacement support services.
Sappi Fine Paper North America is the leading manufacturer of coated woodfree paper in North America. The company is headquartered in Boston, Mass., with three paper mills located in Maine and Michigan. Sappi Fine Paper North America is part of the global company, Sappi Limited, the world’s largest producer of coated woodfree paper.
For further details Go to http://www.sappi.com/
Chetwynd Pulp Mill To Indefinitely Curtail Production
October 17, 2001 Chetwynd, British Columbia- Louisiana-Pacific Canada Ltd. today announced that it will indefinitely close its hardwood bleached-chemi-thermo-mechanical pulp (BCTMP) mill in Chetwynd, British Columbia.
The mill, which has curtailed production since April 2001 due to prolonged weak market conditions, will remain down until a new owner can be found. The company will maintain, winterize and secure the mill, while actively continuing efforts to sell it.
All of the Chetwynd mill's 192 employees will be affected by the curtailment. A fourth quarter charge to earnings of approximately $5 to $10 million US for severance and other related closure liabilities is anticipated. Another 90 contract loggers and industry-related jobs will be impacted as well.
The Chetwynd mill annually produces 160,000 air-dried metric tonnes of bleached-chemi-thermo-mechanical pulp. Louisiana-Pacific Canada Ltd. is owned by Louisiana-Pacific Corporation.
For complete news Go to http://www.lpcorp.com
Mead and Westvaco Clear Hart-Scott-Rodino Waiting Period
Dayton, OH and Stamford, CT. October 16, 2001 -- The Mead Corporation (NYSE:MEA) and Westvaco Corporation (NYSE:W) announced today that the statutory Hart-Scott-Rodino review related to the proposed merger of the two companies has terminated. Clearing this step was required to complete the merger.
The closing of the transaction is also subject to completion of foreign regulatory review as well as shareholder approval. The companies expect to close the transaction in the fourth quarter of 2001.
As announced on August 29, Mead and Westvaco have agreed to a merger of equals creating a global company with leading positions in packaging, coated and specialty papers, consumer and office products, and specialty chemicals. The new company, which will be called MeadWestvaco Corporation, will have $8 billion in annual revenues, profitable growth platforms in the company’s four core businesses, and a strong balance sheet with substantial financial capacity.
For complete news Go to http://www.mead.com
Powell River Kraft Mill to Close Permanently;
$30 M Program to Help Employees Retire, Relocate to Other Jobs
10/15/2001 NorskeCanada announced today it will permanently close its kraft pulp mill operation at Powell River in late November, a move the company says will strengthen the economic future of its other two pulp mills by removing the least viable operation.
Citing an "overwhelming" business case for the decision, NorskeCanada said the Powell River pulp mill is currently cash negative and would be a drain on the company’s earnings if it continued to operate. Closure of the pulp mill is expected to improve the company’s net earnings by an estimated $15 million next year and by an average $25 million annually in future years.
The company said that as a result of its recent acquisition of Pacifica Papers Inc., it now has much more pulp than it needs to supply its paper operations or that it can sell economically on the open market.
For complete news Go to http://www.norskecanada.com
Sonoco Announces Purchase of Hutchinson, KS Paper Mill From Republic Group LLC
HARTSVILLE, S.C., Oct. 12 /PRNewswire/ -- Sonoco (NYSE: SON) today announced that it has signed a definitive agreement to purchase the 90,000-ton paper mill at Hutchinson, Kansas from Republic Group LLC, a privately-owned investment group, according to Harris E. DeLoach, Jr., president and chief executive officer. The mill is expected to be slightly accretive to Sonoco's earnings in the first year.
The purchase price was not disclosed. The Hutchinson mill, which has two pressure former paper machines and employs approximately 145, had annualized sales through September 30, 2001 of approximately $30 million. Sonoco is the mill's largest customer, purchasing paperboard for composite cans, primarily for refrigerated dough products, and for tubes.
"The acquisition of the Hutchinson mill will further strengthen Sonoco's position in the less cyclical consumer driven tissue and towel core market," said DeLoach. "The Hutchinson mill, combined with our recent acquisitions of U.S. Paper Mills Corp., will make Sonoco the market leader in tissue and towel coreboard, and will provide Sonoco with needed additional lightweight capacity for outerplies of tubes and composite cans, particularly to supply our midwestern and western markets," stated DeLoach.
For complete news Go to http://www.prnewswire.com/
SAPPI Announces Intention to Exit Non-Core Carbonless Paper Market
-Transcript carbonless paper mill in Scotland to close
09 October 2001 Johannesburg - Sappi announced today that it is proposing to end its presence in the carbonless paper market by closing its Transcript mill in Scotland early next year.
According to Mr. Bill Sheffield, CEO of Sappi Fine Paper, "The decision on Transcript is in line with Sappi`s proposal to dispose of non-core, under-performing operations in order to focus on its well-invested coated woodfree asset base".
During the last number of years the carbonless market has been affected by new technologies, which have replaced the need for multipart documentation systems. This has lead to a substantial decrease in demand and over-capacity in the carbonless market.
For complete news Go to http://www.sappi.com/
Stora Enso to Form a New Business
Oct. 08, 2001, Group Stora Enso has formed a Specialty Papers Business Group within the Packaging Boards Division. The new Business Group consists of the Stevens Point mill (USA), the Uetersen paper machine No. 1 (Germany) and the Imatra paper machine No. 6 (Finland). In addition, it will market the specialty papers of the Kimberly mill paper machine No. 95 (USA). The annual production capacity of the new Business Group will be about 330 000 tonnes. Specialty papers had previously been part of the Fine Paper Division.
For complete news Go to http://www.storaenso.com
Chesapeake Corporation Announces Restructuring Plan
Oct. 03, 2001 (Richmond, Va.)--Chesapeake Corporation (NYSE:CSK) today announced a restructuring program consistent with the Company's intention to reduce corporate overhead and rationalize its manufacturing network after undertaking a series of acquisitions in Europe over the past two years.
Chesapeake's Chairman, President and Chief Executive Officer Thomas H. Johnson explained, "These actions are consistent with our intention to reduce costs while we continue to optimize our manufacturing network. The savings from our planned restructuring will significantly enhance the competitiveness and productivity of Chesapeake's operations."
The restructuring actions will result in a non-recurring, after-tax charge of approximately $4.8 million (approximately $.32 per diluted share) in the third quarter of 2001 and an additional, not yet determined, charge in the fourth quarter of 2001.
For complete news Go to http://www.shareholder.com/
LP Announces Major Cost Reduction Plan;
Substantial Reductions in Overhead Costs Designed to Strengthen Company in the Face of Slowing Economy
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 2, 2001--Louisiana-Pacific Corp. (NYSE:LPX) announced today a range of cost cutting measures designed to reduce corporate overhead expenses by 16 percent, or approximately $30 million annually.
The actions -- which include job eliminations, a nine-month salary and wage freeze, cancellation of executive bonuses, and the sale of some assets -- will immediately cut operating costs and enhance the company's ability to manage effectively through a slowing economy. In addition to these overhead cuts, aggressive efforts are underway at each LP facility to improve productivity and cut operating costs further.
"These actions are absolutely essential given the uncertainties of the building products markets," said Mark A. Suwyn, LP chairman and CEO. "Fortunately, we have invested heavily in systems and training that permits us to reduce support functions. With a better trained workforce, we are able to consolidate or, in some cases, eliminate a significant portion of our functional costs. Today's reductions are in addition to the 20 percent reduction we have already made over the past 18 months.
For complete news Go to http://www.corporate-ir.net
Fox River Paper To Acquire Mead's Gilbert Paper
10/01/2001 DAYTON, Ohio & APPLETON, Wis. October 1, 2001 -- The Mead Corporation (NYSE:MEA) and Fox River Paper Company announced today that Fox River Paper will acquire the Gilbert Paper Company business and selected assets from Mead. With this acquisition, Fox River Paper Company will produce and sell all of the Gilbert Paper Company products as part of a separate branding strategy. As a result of this sale, Mead will have a 20 percent interest in the combined company. The acquisition is expected to be completed by Nov. 30, 2001. With this combination, Fox River Paper Company will become the leading supplier of premium text, cover and writing papers to the U.S. marketplace.
“This is an acquisition that makes sense for Fox River Paper,” said Robert C. Buchanan, the company’s chairman. “Gilbert Paper’s geographic location, the skills of its employees, its existing customer base and its reputation in the marketplace all make it an ideal purchase for Fox River Paper Company.”
For complete news Go to http://www.mead.com
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