| PAPER INDUSTRY NEWS - SEPTEMBER 2001 |
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This page contains pulp and paper industry news for September2001
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NEWS SEPTEMBER 2001
Temple-Inland Inc. to Acquire Gaylord Container Corporation
Austin, Texas (September 27, 2001) - Temple-Inland Inc. ("Temple-Inland") and Gaylord Container Corporation ("Gaylord") today announced the signing of a definitive merger agreement by which Temple-Inland will acquire Gaylord. Pursuant to the terms of the agreement, Temple-Inland will begin cross-conditional tender offers for all of Gaylord's outstanding shares and outstanding 9-3/8% Senior Notes due 2007 (the "9-3/8% Senior Notes"), 9-3/4% Senior Notes due 2007 (the "9-3/4% Senior Notes"), and 9-7/8% Senior Subordinated Notes due 2008 (the "9-7/8% Senior Subordinated Notes" and, collectively with the 9-3/8% Senior Notes and the 9-3/4% Senior Notes, the "Notes"). Certain outstanding bank debt and other senior secured debt obligations of Gaylord will be paid or otherwise satisfied. Assuming that all shares and all Notes are tendered, the total consideration for the transaction is approximately $786 million, consisting of $1.80 per share, or approximately $100 million, to purchase the outstanding shares of Gaylord, and approximately $686 million to acquire all the Notes and to satisfy the bank debt and other senior secured debt obligations.
For complete news Go to http://www.iccnet.com/
Bowater Announces Additional Newsprint Production Curtailment
GREENVILLE, S.C.--(BUSINESS WIRE)--Sept. 25, 2001--Bowater Incorporated (NYSE: BOW - news) reported today that its third quarter newsprint production curtailments will exceed previously announced levels by approximately 40,000 metric tons, for a total of 120,000 metric tons for the quarter. As a result, Bowater expects a loss for the third quarter of approximately $.22 - $.32 per share before the effect of currency changes. This estimate does not include the impact of the acquisition of Alliance Forest Products Inc.
For complete news Go to http://www.bowater.com
Bowater Completes Alliance Acquisition
GREENVILLE, S.C.--(BUSINESS WIRE)--Sept. 24, 2001--Bowater Incorporated (NYSE: BOW - news) announced today that it has completed the acquisition of Alliance Forest Products Inc.
The acquisition adds two modern, low cost supercalendered and specialty paper mills in Quebec and enables Bowater to offer a full spectrum of groundwood paper grades. Also, a strategically located mill in Alabama, which is being modernized to produce 100% recycled newsprint, enhances Bowater's customer service capabilities. Alliance's extensive sawmill system and strong fiber base will support Bowater's expanded operations.
For complete news Go to http://www.bowater.com
NorskeCanada Announces Further Curtailment for BC Mills
VANCOUVER, Sept. 21 /CNW/ - NorskeCanada, the company recently formed from the merger of Norske Skog Canada Limited and Pacifica Papers Inc., announced new curtailment today for its now combined BC pulp and paper operations.
The company said it will curtail paper production by 28,000 tonnes (including 17,000 tonnes of newsprint) and trim pulp production by 17,000 tonnes during the months of September and October in order to balance its order books.
The latest downtime is in addition to curtailment taken by Norske Skog Canada and Pacifica prior to the formation of NorskeCanada in late August.
For complete news Go to http://www.newswire.ca
Eastern Pulp & Paper: Aggressive Use of Oxygen in Pulpmaking Yields Major Environmental Advances
Maine Gov. King today gives company pollution prevention award.
LINCOLN, Maine--(BUSINESS WIRE)--Sept. 21, 2001-- Company's patent-pending oxygen bleaching technology eliminates chlorine, substantially cuts dependence on other chemicals and eliminates detectable dioxin.
Eastern Pulp & Paper Co. said it has generated significant, well-documented environmental advances--at reduced operating costs--from a unique and custom-developed oxygen bleaching process at its manufacturing facility here. In Augusta today, Maine Gov. Angus King presented the company with an environmental excellence award for its accomplishments in pollution prevention.
For complete news Go to http://www.easternpaper.com/
Bowater Prepares to Acquire Alliance
GREENVILLE, South Carolina and MONTREAL, Sept. 18 - Bowater Incorporated (NYSE: BOW - news) and Alliance Forest Products Inc. (TSE: ALP, NYSE: PFA) today announced that the Antitrust Division of the United States Department of Justice has advised the two companies that the Department of Justice will not oppose the previously announced acquisition of Alliance by Bowater. Accordingly, the transaction is anticipated to close on September 24, 2001.
Bowater Incorporated, headquartered in Greenville, SC, is a global leader in newsprint. In addition, the company makes coated and uncoated groundwood papers bleached kraft pulp and lumber products. With Bowater's pending acquisition of Alliance Forest Products Inc., the company will have 12 pulp and paper mills in the United States, Canada and South Korea and 13 North American sawmills that produce softwood and hardwood lumber. Bowater also operates a facility that converts a newsprint base sheet to coated products. Bowater's operations when combined with Alliance will be supported by approximately 1.8 million acres of timberlands owned or leased in the United States and Canada and 32 million acres of timber cutting rights in Canada. Bowater is one of the world's largest consumers of recycled newspapers and magazines. Bowater common stock is listed on the New York Stock Exchange, U.S. regional exchanges and the London Stock Exchange. A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange.
For complete news Go to http://www.bowater.com
Cascades Finalizes the Acquisition of Two Tissue Mills in the United States
Kingsey Falls, Québec, September 18, 2001 Cascades Inc. has just completed, through its subsidiary Perkins Papers Ltd., the acquisition of two tissue mills from the American company Plainwell Inc., for US $57.4 million ; $13.2 million of this amount will be allocated to working capital.
These mills have a combined annual capacity of 110,000 short tons. They manufacture and market an extensive range of tissue paper in the form of bathroom tissue, paper towels, paper napkins and facial tissues, mainly under private labels for the American retail market. The mills are located in Eau Claire, Wisconsin and Ransom, Pennsylvania, and will operate under the names of Cascades Tissue Group Wisconsin Inc. and Cascades Tissue Group Pennsylvania Inc.
For complete news Go to http://www.cascades.com
Sonoco Completes Purchase of Phoenix Packaging
HARTSVILLE, S.C., Sept. 17 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has completed the previously announced purchase of Phoenix Packaging Corporation, a privately-held company headquartered in North Canton, Ohio, it was announced today by Harris E. DeLoach, Jr., president and chief executive officer. The all-cash purchase price was not disclosed.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19991006/SNCLOGO )
Phoenix had 2000 sales of approximately $70 million, with 2001 sales estimated at approximately $80 million. The acquisition is expected to be immediately accretive, adding approximately $.04 to $.05 per share in earnings by the end of the first 12 months.
For complete news Go to http://www.prnewswire.com/
FIBERMARK ANNOUNCES SALE OF SELECTED NORTH AMERICAN FILTER VOLUME AND ASSETS
September 17, 2001 BRATTLEBORO, VERMONT-September 17, 2001- FiberMark, Inc. (NYSE:FMK) today announced that it has agreed to sell the balance of its U.S. engine filter media volume currently manufactured at its Rochester, MI, facility, together with some production equipment, to Ahlstrom Corporation. This purchase represents approximately $20 million in annual sales revenue. The company plans to cease operations in its Rochester facility by year-end.
The sales price of $13.3 million will be largely offset by the asset write down and facility closure expenses, including approximately $1.0 million in cash expenses. On an ongoing basis, the earnings impact is expected to be neutral, with lower volume balanced by reduced fixed costs and lower interest expense. Industrial filter media and all filter media manufactured in Germany by FiberMark Gessner were excluded from the sale. Industrial filter media will be transferred to our New Jersey operations, while FiberMark Gessner will continue to serve its worldwide markets with filter media and tape and abrasive-backing materials.
For complete news Go to http://www.fibermark.com/
Cascades Inc. - St-Louis-de-France Recovery Plant Burns Down
KINGSEY FALLS, Quebec, Sept. 12 /CNW/ - Cascades Recovery Division's plant, St- Louis-de-France, located in the vicinity of Cap-de-la-Madeleine was completely destroyed by fire during the night of September 10 to 11. Since the plant was closed, no one was hurt in this fire which was accidental. The material loss is estimated to around 3 million dollars.
This plant, which served both industrial and institutional clients, shredded both carton and paper received in bulk from various companies in the area. The shredded material was then bundled, forwarded and used in Cascades' plants in Quebec as recycled fibers. The plant produced 14,000 tonnes annually.
For complete news Go to http://www.newswire.ca
Sonoco to Purchase Hayes Manufacturing
HARTSVILLE, S.C., Sept. 11 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has signed a definitive agreement to purchase Hayes Manufacturing Group Inc., a privately held manufacturer of paper-based tubes, cores and composite cans headquartered in Neenah, Wisconsin, it was announced today by Harris E. DeLoach, Jr., president and chief executive officer. The purchase price was not revealed.
The all-cash purchase is expected to be accretive to earnings by approximately $.03 to $.04 per share in the first year. Completion of the purchase, which is subject to regulatory approval, is expected in the fourth quarter. Hayes Manufacturing had 2000 sales of approximately $56 million. Hayes produces paper-based tubes and cores serving the paper, plastic, foil/metal, paper converters, tape/label and construction industries. This sector accounts for approximately 80% of total sales. The composite can business provides approximately 20% of total sales and serves such industries as dairy, spices/seasonings, other food, household, pet care and others.
For complete news Go to http://www.prnewswire.com
Potlatch Corporation Shuts Down One Paperboard Machine At Lewiston, Idaho, For 7-10 Days
Spokane – Potlatch Corporation (NYSE: PCH) will shut down one of its two paperboard machines in Lewiston, Idaho, for 7 to ten days due to weak market conditions.
As many as 36 employees could be affected by the temporary curtailment, which is scheduled to begin on Thursday, September 13, 2001.
Potlatch is a diversified forest products company with timberlands in Arkansas, Idaho and Minnesota.
For complete news Go to http://www.potlatchcorp.com
American Tissue Inc. and Its Subsidiaries Seek Chapter 11 Protection
HAUPPAUGE, N.Y., Sept. 10 -- American Tissue Inc. and its domestic subsidiaries, listed below, today filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The company and its subsidiaries made the filings in the U.S. Bankruptcy Court for the District of Delaware in Wilmington, Delaware.
Mr. Mehdi Gabayzadeh, the company's President and Chief Executive Officer cited the overall slowdown in the U.S. economy and its effect on the pulp and paper industry, including decreased prices for pulp and paper products, the company's overburdened debt structure, lack of liquidity and recently discovered financial inaccuracies as factors contributing to the filings. Mr. Gabayzadeh stated: ``Filing for Chapter 11 reorganization is necessary to enable us to immediately address our liquidity and debt restructuring problems.''
For complete news Go to http://www.americantissue.com
Westvaco To Close Packaging Plants
NEW YORK, NY, September 6, 2001 -- Westvaco Corporation (NYSE: W) announced today that it will close packaging plants in Richmond, VA, and Memphis, TN, by mid-November. The company will further streamline its Richmond packaging operations by relocating equipment to other company facilities to gain efficiencies and to support the company's growth in targeted markets.
The Richmond and Memphis plants produce packaging for a wide variety of consumer products. The products and services at these plants will continue to be produced at other Westvaco locations. The company's actions will affect approximately 350 employees in Richmond and 80 in Memphis.
For complete news Go to http://www.westvaco.com
Kruger has Invested $145 M to Improve Productivity at its Mills and the Quality of its Paper.
Pshutdowns related to these investments and market conditions have resulted in a reduction of over 45 roduction 000 tonnes of newsprint on the market since the beginning of the year metric
Montréal, September 5th, 2001 – Since the beginning of January, 2001, the Kruger company has invested 145 million dollars in its newsprint mills in Trois-Rivières and Bromptonville in Québec, and in that of Corner Brook Pulp and Paper Limited, its affiliate company in Newfoundland. Various upgrading and expansion projects have been carried out at these facilities in order to improve the quality of newsprint as well as the machine productivity.
For complete news Go to http://www.kruger.com
Hercules Announces Initial Steps in Cost Reduction Program
Wilmington, DE, September 5, 2001 ...Hercules Incorporated (NYSE: HPC) announced today the first steps in its comprehensive cost reduction plan. This includes an overall restructuring of the organization to lower operating costs and better align resources with the current needs of its businesses and customers.
The restructuring will result in an initial reduction in the Company’s workforce of 300 employees, excluding Europe, as well as the release of non-critical outside contractors by September 30, 2001.
It is also anticipated reductions in headcount will be decided and implemented in Europe following appropriate communication and consultation with employees and their representatives.
For complete news Go to http://www.herc.com/
Mead to Close Atlanta Consumer & Office Products Facility
DAYTON, Ohio. September 4, 2001 -- The Mead Corporation (NYSE:MEA) today announced plans to close the Mead Consumer & Office Products facility located in Atlanta, Georgia. Mead expects to close the facility on November 5, 2001 and to transfer its production and distribution equipment to other Mead facilities.
"Today's challenging business environment requires us to reduce costs to remain competitive," said Neil A. McLachlan, president of the Mead Consumer & Office Products division. "Consolidating the Atlanta facility will allow us to continue meeting the needs of our customers while reducing overhead costs at the same time."
For complete news Go to http://www.mead.com/
Sonoco to Expand China Operations
HARTSVILLE, S.C., Sept. 4 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has acquired a paper-based textile tube converting facility in Kaiping, China, it was announced today by Harris E. DeLoach, Jr., president and chief executive officer.
"This is Sonoco's first expansion outside Shanghai, where the Company acquired a paper mill in 1996 and subsequently commenced a paper tube converting operation," said DeLoach.
"The new facility, where we are leasing the equipment and building, has current sales of approximately $2 million. Sonoco will retain local management. Most importantly, it provides a base from which to expand our operations into southern China. Our plans are to also serve the paper and film markets as well as the textile industry in South China," stated DeLoach.
For complete news Go to http://www.prnewswire.com
International Paper Completes Sale of Masonite
STAMFORD, Conn., Sep 4, 2001 /PRNewswire/ -- International Paper (NYSE: IP) today announced the completion of the sale of its Masonite business to Premdor Inc. (NYSE: PI; TSE: PDI).
The sale of the Masonite business is in conjunction with International Paper's plans to divest businesses that no longer fit its long-term strategy. "We are pleased that our divestiture program is well underway," said John Faraci, executive vice president and chief financial officer of International Paper.
"With the sale of Masonite, we have divested more than $2.5 billion in non-core assets, allowing us to concentrate our focus on paper, packaging and forest products."
For complete news Go to http://investor.internationalpaper.com/
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