| PAPER INDUSTRY NEWS - SEPTEMBER |
This page contains main news of September 1999, from pulp and paper industry.
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Paperworkers Ratify Contract with Consolidated Papers, Inc.
(WISCONSIN RAPIDS, WI, Sept. 30, 1999) Members of five locals of the Paper, Allied-Industrial, Chemical and Energy Workers' International Union (PACE) voted today to ratify a six-year contract agreement with Consolidated Papers, Inc., averting a strike that was to have begun at 7 a.m. Friday, October 1.
Union officials informed the company at around 8 p.m. today that the new contract had been approved. The favorable vote came after months of negotiations between PACE and the company, which included rejection of a contract offer earlier this month, followed by a vote by PACE members to authorize a strike if an agreement could not be reached by October 1.
For further details go to http://www.consolidatedpapers.com/news.html
MEAD To Acquire AT-A-GLANCE Group
Nation's Leading Dated and Time Management Products Company Strengthens Mead's School & Office Products Business Broadens Product Offerings and Enhances Distribution Channels
(DAYTON, OH. Sept. 30, 1999) - The Mead Corporation (NYSE:MEA) announced today that it has agreed to acquire the AT-A-GLANCE Group of Cullman Ventures, Inc. for a purchase price of approximately $550 million in cash. Subject to regulatory approval, the acquisition is expected to close in the fourth quarter of 1999. Upon completion, AT-A-GLANCE will become a wholly owned subsidiary of The Mead Corporation.
AT-A-GLANCE is a leading producer and marketer of dated and time management products. The addition of AT-A-GLANCE, which produces, manufactures and markets wire-bound diaries and appointment books, desk and wall calendars, posters, organizers, planners and related accessories, represents another step in Mead's stated strategy of growing the company's core businesses of coated and specialty papers, packaging and paperboard, and school and office products.
For complete news Go to Mead's site at http://www.mead.com/corporateprofile/news/
Kimberly-Clark Completes Sale of Southeast Timberlands
Company Receives Proceeds of Approximately $400 Million as Deal Closes With Joshua Timberlands, LLC
(DALLAS, TX, Sept. 30) Kimberly-Clark Corporation (NYSE: KMB) today completed the sale of approximately 460,000 acres of timberland in Alabama, Mississippi and Tennessee to Joshua Timberlands, LLC for proceeds of approximately $400 million. As previously announced, the transaction completes the sale of the company's Southeast Timberlands operation, which consisted of 529,000 acres of woodlands and related operations. The sale was due to the recent closure of the company's pulp mill in Mobile, Ala.
For complete news Go to KC's site at http://www.K-C
Appleton Papers to Restructure its Operations and Sell the Harrisburg Plant
(APPLETON, WI., Sept. 29, 1999) Appleton Papers announced today that during the next 12 to 18 months, it will invest $25 million to expand carbonless coating operations at its Appleton, WI., and Roaring Spring, PA., manufacturing facilities. The company will move two coaters and related coating prep from its Harrisburg carbonless coating and distribution facility in Camp Hill, PA., and install them at the Appleton Plant. Related finishing equipment will also be moved from the Harrisburg Plant to the company's paper mill in Roaring Spring as well as to Appleton.
Appleton Papers said it will continue to operate the Harrisburg Plant with the remaining two coaters while it attempts to sell that facility. The company is also reviewing options concerning the best location for the distribution center currently operating at Harrisburg so that it can continue to provide the highest level of service to its customers in the region. The company said it will continue to have adequate production capacity and flexibility within its manufacturing and distribution network to meet the current and future needs of its customers.
Appleton Papers chief executive officer Doug Buth said declining demand for carbonless paper has created excess capacity worldwide and prompted the company to sell the Harrisburg facility. ``The market will not support the amount of production capacity available now or in the future,'' said Buth. He said moving equipment and selling the Harrisburg Plant will enable the company to consolidate its manufacturing capacity. ``We are taking action to protect our market leadership position and remain cost competitive within that market. Regrettably, that is best accomplished by selling the Harrisburg Plant,'' Buth said.
Appleton Papers opened the Harrisburg Plant in 1973 and has expanded it twice. The plant currently employs 450 people. During the past 25 years the plant has helped Appleton Papers grow to become the world's largest producer of carbonless paper. ``We appreciate the contributions everyone at the plant has made over the years,'' said Buth. ``Unfortunately market conditions leave us no choice but to sell the plant.'' Transfer of the coaters will begin immediately and will result in the loss of approximately 200 jobs at the Harrisburg Plant in 2000.
Appleton Papers will negotiate with the leadership of Local 1098 of the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) at the Harrisburg Plant to define separation options. Once those options are identified, employees will receive information regarding their options. Forty jobs will be created at the Appleton Plant while approximately 40 jobs will also be created at the Roaring Spring Mill. Harrisburg Plant employees interested in applying for jobs at Appleton or Roaring Spring will be given first consideration for interviews.
Earlier this year Appleton Papers launched a strategic growth initiative to identify new markets, technologies, products and customer needs. The expansion of Appleton Plant, the most diverse of the company manufacturing facilities, creates additional production flexibility to pursue growth opportunities as they are identified. Appleton Papers is the world's largest producer of carbonless paper and the sole producer of the NCR Paper* brand of carbonless paper.
The company sells its carbonless paper products directly to converters and business forms printers who print carbonless forms and to paper merchants who stock and sell carbonless paper to printers. Companies and individuals that use printed business forms are the end users of carbonless paper. Appleton Papers is a subsidiary of Arjo Wiggins Appleton p.l.c., London. Arjo Wiggins Appleton is one of the world's largest paper manufacturing and distribution groups. NCR Paper is a registered trademark licensed to Appleton Papers. SOURCE: Appleton Papers
Higher Capacity Utilization & Shipment by Canadian Newsprint Mills in Aug 99
Canadian Pulp and Paper Association - Monthly Newsprint Statistics
(MONTREAL, Sept. 28, 1999CNW)- The Canadian newsprint industry operated at 90% of its capacity in August, compared to 80% for the same month in 1998-at which time there was a strike in Eastern Canada. Total Canadian shipments are up 9.3% in comparison to the same period last year. On a regional basis, domestic deliveries expanded 1.9%, and sales to the U.S. and overseas grew 14.7% and 1.0% respectively.
At the end of August, Canadian newsprint producer inventories were unchanged from the previous the month at 453 000 tonnes. In the US, daily newspapers increased their consumption by 3.2% in comparison to the same month in 1998. Total US consumption expanded 0.9% year-over-year to reach 935 000 tonnes. For the first eight months of 1999, total US consumption grew 1.5% compared to the same period in 1998. At the end of August, US consumers held 1.394 million tonnes in inventory, down 11 000 tonnes compared to the same month in 1998. This level of stock was equivalent to 42 days of supply.
For Complete Statistics Go to http://www.newswire.ca/releases/September1999/28/c7183.htm
Simpson Explores Strategic Options for Its Tacoma Mill
(SEATTLE - BUSINESS WIRE, Sept. 28, 1999) Simpson Paper Company has announced that it has engaged Warburg Dillon Read LLC to assist the company in considering strategic options -- including possible sale -- for the Tacoma Kraft Mill, owned by its subsidiary Simpson Tacoma Kraft Company.
The mill employs 518 people in the production of linerboard, natural and bleached papers and unbleached pulp. Simpson Paper Company is a wholly owned subsidiary of Simpson Investment Company of Seattle.
For complete News Go to http://www.isa.org/journals/intech/news
Paperboard Industries International Inc. sells its 50% interest in Tartas S.A. to its partner Tembec Inc.
(Montreal (Québec), September 27, 1999) Paperboard Industries International Inc. ("Paperboard") announces the sale of its 50% interest in Tartas S.A., to its partner Tembec Inc. ("Tembec"), effective October 1st , 1999. This pulp mill, located in France, was jointly acquired by Paperboard and Tembec in 1994. The mill produces approximately 165,000 metric tonnes per year of fluff and specialty cellulose pulps.
The selling price for Paperboard’s share is $35 million, plus a conditional amount that could reach $10 million, depending on the mill’s profitability over the next three years. Paperboard’s decision to sell its interest in Tartas to Tembec is fully in line with its strategic goal to focus on core activities — the manufacturing of boxboard and the conversion into folding cartons — while reducing its debt. All proceeds from the Tartas sale will therefore be applied towards reducing Paperboard’s long-term debt. Paperboard will realize a net gain from the sale since the selling price is higher than the book value.
For complete news release Go to Tembec site
Consolidated Papers Prepares for Strike
(WISCONSIN RAPIDS, WI, September 24, 1999) Consolidated Papers, Inc. has announced that five Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) locals have given notice of termination of the PACE labor agreement effective October 1, 1999. These locals represent approximately 2,800 employees in central Wisconsin. In the event of a strike, employees represented by craft and office clerical unions at these facilities may also honor the picket line. The company is interested and available to negotiate with PACE in an effort to reach agreement prior to the strike deadline. Both sides have agreed to assistance from the Federal Mediation and Conciliation Service. The company is preparing to operate most of its facilities using management employees. The company believes it can supplement its production and fulfill contractual commitments to its customers by shipping existing inventories, shifting production to unaffected manufacturing facilities in Niagara and Kimberly, Wisconsin, and if necessary, procuring finished products from alternative sources.
For further details go to http://www.consolidatedpapers.com/news.html
Jacobs Receives Major Mill Modernization Project from Donohue Inc.
(GREENVILLE, S.C, BUSINESS WIRE, Sept. 23, 1999) Jacobs Engineering Group Inc. (NYSE:JEC - news) announced today that it received an engineering, procurement, and construction services contract from Donohue Industries Inc. for a $210-million modernization project at Donohue's newsprint mill in Lufkin, Texas. The scheduled completion date is December 2000.
Donohue purchased the Lufkin facility along with another Texas newsprint mill in 1998, and announced plans to spend more than $300 million to upgrade its Texas facilities. The Lufkin project consists of retiring three of the mill's four existing machines and replacing them with a single, more modern machine capable of producing 250,000 metric tons of uncoated supercalendered specialty paper (SC-B) annually.
The facility's kraft pulp mill will also be improved to comply with the stricter environmental standards set by the new Federal Cluster Rule in the United States. In making this announcement, Jacobs Group Vice President Steve Fritschle stated, "With the earlier award of the Donohue-Sheldon de-inking plant expansion, we're especially excited about being selected for this second opportunity to help Donohue achieve its strategic goals at its recently acquired Texas facilities. Our project team looks forward to delivering the Best Value to Donohue and its shareholders on this challenging and important project.''
Jacobs is currently providing engineering, procurement, and construction services for Donohue's $70-million de-inking plant expansion at their newsprint mill in Sheldon, Texas.
Donohue Inc. is a major integrated forest products company and the third largest newsprint producer in North America. The company engages in forest management and timber harvesting as well as the manufacture and sale of newsprint, market pulp, and wood products.
Kimberly-Clark Completes Acquisition of Ballard Medical Products
Acquisition Further Strengthens Kimberly-Clark's Professional Health Care Business
(DALLAS, Sept. 23, 1999) Kimberly-Clark Corporation (NYSE: KMB) today completed the acquisition of Ballard Medical Products (NYSE: BMP), a leading maker of disposable medical devices for respiratory care, gastroenterology and cardiology. The transaction, which involves a tax-free exchange of stock valued at approximately $774 million and will be accounted for as a purchase, took place after Ballard's shareholders approved the deal at a meeting in Draper, Utah. Under the agreement, Ballard shareholders will receive $25 for each share of Ballard Medical common stock, payable in shares of Kimberly-Clark common stock.
For complete News go to K-C Web site
Caraustar Industries, Inc. and Carolina Converting, Inc. Announce Merger
(ATLANTA, Sept. 21, 1999)-- Caraustar Industries, Inc. and Carolina Converting, Inc. today announced the completion of their merger agreement. Carolina Converting, Inc. has become a wholly-owned subsidiary of Caraustar Industries, Inc. Carolina Converting, Inc. is the largest contract manufacturer of jigsaw puzzles and coin folders in the United States and also produces boxed games, inlay puzzles, slates, gameboards, game cards, and other packaged products.The company also provides specialty packaging capabilities utilizing rigid boxes, folding cartons, custom lamination, displays, custom diecutting, blister packaging, shrinkwrapping, foil stamping, and contract packaging.
The Carolina Converting, Inc. transaction is a continuation of Caraustar's expansion into specialized, growth niche markets that support the objective of maintaining Caraustar's leadership position in the recycled paperboard and packaging industry. (Source Company Press Release). Visit Company web site for further details.
Fletcher Challenge Canada Shareholders' Meeting Set
(VANCOUVER, BC, Sept. 21, 1999) An extraordinary general meeting of Fletcher Challenge Canada shareholders has been set for November 2, 1999 to consider the company's proposed acquisition of the Paper Division of its majority shareholder, Fletcher Challenge Limited of New Zealand.
The proposed acquisition must be approved by at least three-quarters of the votes cast at the meeting. It must also be approved by a simple majority of the votes cast other than the votes in respect of the common shares controlled by Fletcher Challenge Limited. It is expected that Fletcher Challenge Canada's proxy circular, which will contain a detailed description of the proposed acquisition, will be distributed to shareholders commencing October 5, 1999. (Source Canada News Wire)
P. H. Glatfelter Company Announces Tobacco Papers Price Increases
(YORK, PA Sept. 20, 1999) P. H. Glatfelter Co., a global manufacturer of engineered papers and specialized printing papers, today announced, it has notified its major tobacco paper customers that prices will be increased for certain tobacco paper products effective January 1, 2000.
These price increases are necessary for us to remain a viable, high-quality supplier to our customers. "We recognize this step creates near-term uncertainty regarding the level of sales for our company's tobacco paper products. While it is too early to speculate on our customers' reaction, we have contingency plans which will be implemented if a reduction in demand occurs, including potentially shutting down capacity and further reducing costs,'' Mr. Glatfelter said. The company said that if it becomes necessary to reduce capacity and costs due to lower demand for tobacco paper, it believes it can re-deploy some assets over time into some of its other paper markets. P. H. Glatfelter
In addition to tobacco papers, the company holds a leading market share in book publishing papers and tea bag papers. (Source Business Wire/Yahoo News)
Fort James Anticipates Lower Earning in Second Half of 1999
(DEERFIELD, IL. –September 17, 1999) – Fort James Corporation today announced that based on current margin trends, it anticipates diluted earnings per share from continuing operations in the second half of 1999 will be approximately 20% below the prior year's $1.27, excluding non-comparable items. For the third quarter, the company expects diluted earnings per share from continuing operations to be approximately 25% below last year's $.66 per share, on the same basis. These amounts exclude a non-recurring gain on the August sale of the Packaging business and other non-recurring items.
The current year has been complicated by significant systems and workflow changes undertaken in the course of merging our two predecessor companies. Increased distribution and warehousing costs, which affected earnings in the first half of the year, continue to negatively impact second half results. Additionally, accelerating pulp costs in Europe and significant recent increases in wastepaper costs are squeezing margins in the North American away-from-home and European tissue businesses. Promotional costs in the retail tissue industry have also intensified as the year progressed, resulting in additional pressure on margins. (Source Company Press Release). Visit Company web site for further details
Efiber.Com Launches New Paper/Fiber Auction Website (Site is under construction as on Sept. 19)
NEW HAVEN, Conn -Sept. 16, 1999--Efibre.com has launched the first auction site designed to connect buyers and sellers of papermaking fibers. The site will provide a central, easy-to-use, neutral and cost-effective means to buy and sell market pulp, off-grade pulp and pulp-substitutes. Over 30 million tons of market pulp are traded annually worldwide.
The target market for Efibre is the off-grade, or spot market where pulp is sold on a transaction-by-transaction basis rather than long-term contract. Sellers will be able to post products for sale directly to the site by registering as a Seller. Buyers can view offered products and make bids in a live, dynamic pricing environment. Efibre will make it easier, faster and more cost effective for sellers to find buyers for their off-grade product. Buyers will see a wider choice of products in less time than traditional methods. In addition, registered members will have access to current industry news items, stock quotes, pulp futures prices as well as links to other paper industry related websites. Efibre.com was developed by pulp industry veteran, Bob Davidson. Visit efibre.com or call toll free 1-877-897-2995 for further information.(Source Business Wire/Yahoo News)
GL&V Closes Acquisition of Dorr-Oliver
Trois-Rivières, Quebec, September 15, 1999 - GROUPE LAPERRIERE & VERREAULT INC. (GL&V) announces that it has closed the largest acquisition in its history by purchasing all the shares of DORR-OLIVER group of companies, a world leader in technological solutions for liquid-solid separation for various industrial markets (environment, pulp and paper, minerals, foods and chemicals). The acquisition was financed through bank debt.
GL&V President Laurent Verreault said that in addition to boosting the Company's annual sales over the $300-million mark, the integration plan for Dorr-Oliver provides for synergetic savings of some $12 million annually. "On the strength of our past experience in the acquisition and profitable integration of businesses, especially Celleco last year, we are confident that we can rapidly optimize the excellent growth and synergy potential provided by Dorr-Oliver on a world scale.(Source Company Press Release). Visit Company web site for further details
Weyerhaeuser Recycling Facility Wins Prominent Safety Award
(Sept. 15, 1999) Weyerhaeuser recycling facility in Portland has won a prominent company safety award for achieving five years without a lost-time accident. The Portland plant, known as a Quality Sort Center, is the company's first recycling facility to win the award in 1999.
This facility has reached five years without a lost-time accident because everyone has focused on making sure our employees go home injury free every day,'' says Barb Disser, operations manager at the plant. 'Our employees' safety is of paramount importance. We try to recognize all safety milestones big and small; every day our employees go home injury-free is cause enough to celebrate.'' (Source Business Wire/Yahoo News)
Fibermark Announces Acquisition of Papierfabrik Lahnstein
(September 15, 1999) FiberMark, Inc. today announced its acquisition of Papierfabrik Lahnstein GmbH, a leading European specialty fiber-based materials manufacturer headquartered near Frankfurt, Germany, with annual revenues of approximately DM68.0 million ($36.0 million). FiberMark assumes ownership effective August 1,1999.
"This German acquisition further positions us as a global leader in specialty fiber-based materials, with expanded capabilities in nonwoven and synthetic materials," said Alex Kwader, president and chief executive officer. "It augments our core offerings in selected markets and it will offer immediate earnings accretion as a successful, stand-alone operation. With our existing international sales force, we also expect to broaden the reach of Lahnstein beyond its current European base, and foresee additional cross-selling opportunities in the U.S. and worldwide," Kwader said. (Source Company Press Release).
Louisiana-Pacific Corp. Completes Acquisition of Le Groupe Forex
(Sept. 15, 1999) Louisiana-Pacific Corp. announced today that it has completed the acquisition of Le Groupe Forex , broadening the company's platform to expand its most important product segment, structural panels, which includes oriented strand board (OSB).
"We are very enthusiastic about the opportunity to work with Forex's talented management and employees in growing the company together," said Mark A. Suwyn, Louisiana-Pacific Chairman and CEO. "We expect customers, especially those in the Northern U.S. and Eastern Canada, will be better served as we leverage each others' knowledge to provide high quality commodity and value-added specialty products."
Forex's assets, which include three modern oriented strand board facilities and two sawmills, will become the Quebec Region of Louisiana-Pacific Canada, Ltd., a wholly owned subsidiary of Louisiana-Pacific.(Source Company Press Release).
