| PAPER INDUSTRY NEWS -FEBRUARY 2004 |
This page contains pulp and paper industry news for February 2004
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NEWS FEBRUARY 2004
Stora Enso to modernise its fine paper machine at Suzhou, China
4 February 2004 Stora Enso will upgrade and modernise the paper machine and
increase sheeting capacity at its fine paper mill in Suzhou, China. The
investments, which total EUR 38 million, will improve productivity and safeguard
market presence in the fast-growing Chinese market. The
project will be completed in September 2005.
The aim of the investment is to maintain Stora Enso's position as a quality
leader by extending the product range of the mill and increasing its annual
capacity by 75 000 tonnes to 240 000 tonnes.
The mill manufactures multicoated art papers in sheets, and nearly all of its
production is sold in the domestic market. Demand for coated fine paper in China
is expected to grow by over 7% annually up
to 2010.
Stora Enso Suzhou Mill is located in Jiangsu Province, China. The mill is one of
the largest manufacturers of coated fine paper in China. The mill started
production in 1996, and in 1998 Stora
acquired a majority shareholding. In October 2001 Stora Enso increased its
shareholding to 81%; the other shares are held by local partners.
Schweitzer-Mauduit Completes Acquisition of Indonesian Specialty Paper
ALPHARETTA, Ga., 12 February 2004 /PRNewswire-FirstCall/ -- Schweitzer-Mauduit International, Inc. (NYSE:SWM) today announced that one of its subsidiaries, Schweitzer-Mauduit France S.A.R.L, has acquired the outstanding stock of P.T. Kimsari Paper Indonesia ("Kimsari"), a specialty paper manufacturer located in Medan, Sumatra, Indonesia. Schweitzer-Mauduit France paid $8.5 million for the outstanding shares of Kimsari, funded through existing bank lines of credit. The acquisition is not expected to have a significant impact on Schweitzer-Mauduit's 2004 consolidated net income.
Kimsari was formed in 1984 and began production of cigarette paper in 1985. Schweitzer-Mauduit's French subsidiary, Papeteries de Mauduit (PDM), was involved in the design and construction of the Kimsari mill in the mid- 1980's, has provided intermittent technical support and licenses Kimsari to utilize the PDM trademark in the marketing of Kimsari's products in Indonesia. The marketing and sales of Kimsari's products will be coordinated with the efforts of Schweitzer-Mauduit's French operations in the southeast Asian market. In recognition of the affiliation with PDM and the continued use of the PDM trademark, the name of Kimsari will be changed to P.T. PDM Indonesia.
Kimsari's products include cigarette paper and conventional plug wrap for the cigarette industry. It has one paper machine, with an annual capacity of approximately 3,200 metric tons, and has approximately 200 employees. Net sales for the fiscal year ended December 31, 2003 totaled $6.7 million.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer of
Schweitzer-Mauduit commented that, "We are pleased to complete the acquisition
of Kimsari, which is consistent with our long-term strategy for operations in
Asia. The acquisition provides Schweitzer-Mauduit with a manufacturing presence
on a fourth continent and will significantly improve our ability to address the
needs of our customers in both Indonesia and the southeast Asian markets. We
hope that this is only the first step toward an increased presence in Asia,
which is both a higher growth region for our products and a low cost production
area. We expect to upgrade the capacity and quality of the
manufacturing capabilities at Kimsari to support the demand for tobacco- related
products in the region."
Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry. It also manufactures specialty papers for use in alkaline batteries, vacuum cleaner bags, overlay products, business forms and printing and packaging applications. Schweitzer-Mauduit and its subsidiaries conduct business in over 90 countries and employ 3,600 people worldwide, with operations in the United States, France, Brazil, Indonesia and Canada. For further information, please visit the Company's Web site at www.schweitzer-mauduit.com .
Certain comments contained in this news release concerning the business
outlook and anticipated financial and operating results of the Company
constitute "forward-looking statements," generally identified by phrases such as
the Company "expects" or "anticipates" or words of similar effect, within the
meaning of the Private Securities Litigation Reform Act of 1995 and are subject
to the safe
harbor created by that Act. The forward-looking statements are based on
information currently available to the Company and are based upon management's
expectations and beliefs concerning future events and factors impacting the
Company, including the impact of the Kimsari acquisition on the Company's net
income and the ability to upgrade capacity and quality capabilities in the
Indonesian operations. There can be no assurances that such factors or future
events will occur as anticipated or that the Company's results will be as
estimated. Many factors outside the control of the Company could also impact
the realization of such estimates. Such factors are discussed in more detail in
the Company's latest filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended December
31, 2002. Except as required by federal securities laws, the Company undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, changed circumstances or
any other reasons, after the date of this news release.
Web site: http://www.schweitzer-mauduit.com/
Norampac Inc. Sells its Mexican Plant
13 February 2004 Montreal, Québec, – Norampac Inc. announces the sale of its corrugated product plant in Monterrey, Mexico, known under the name of Norampac Monterrey Division S.A. de C.V.
The plant, which started up in 2001, was sold to its current management team.
In 2003, the plant’s total net sales represented only 0.5% of Norampac’s
total net sales of corrugated products. Norampac owns eight containerboard
mills and twenty-four corrugated products plants in the United States, Canada
and France. With an annual production capacity of more than 1.6 million short
tons, Norampac is the largest containerboard producer in Canada and the seventh
largest in North America. Norampac, which is also a major Canadian manufacturer
of corrugated products, is a joint venture company owned by Domtar Inc. (symbol:
DTC-TSE) and Cascades Inc. (symbol: CAS-TSE).
Viisnurk SA to close wood division
Helsinki--16 February 2004 Following the restructuring plan announced on February 22, 2004, (sic) the Supervisory and Management Boards of Viisnurk AS have decided to close the company's Wood Division on 16 April 2004. This decision follows the decisions to divest the Building Materials and Sporting Goods divisions. Those decisions were taken in order to restore the sustainable profitabilty of the company and to focus on its core business activity, furniture business.
The Wood Division of Viisnurk AS comprises a sawmill, a complex of kilns and the Wood Panel Factory. The competitiveness of the Wood Division has been low since the commencement of its activities in 2000 due to the on-going market slump and high production costs. The net sales of the Wood Division for the first nine months of 2003 totalled EEK 49 million and the loss from operations amounted to EEK 13.1 million.
Due to closing, appr. 190 people will be given
a notice of dismissal; however, up to 15% of the employees will be offered a job in other divisions of Viisnurk AS. The sale and/or lease of the factories' assets are currently under consideration.
The total cost of redundancies are estimated to be around EEK 3.5 million;
the company will apply to the Estonian Unemployment Insurance Fund for partial
reimbursement thereof. 2003 profit figures will be affected by provisions
related to restructuring and will be lower than previously forecast.
Nexfor Acquires Meadwestvaco
Interest in Northwood Panelboard Company
STAMFORD, CONN., February 19, 2004 - Nexfor Inc. (TSX: NF) and MeadWestvaco Corporation (NYSE: MWV) announced today that Nexfor has agreed to acquire MeadWestvaco’s 50% partnership interest in Northwood Panelboard Company, subject to regulatory approval. Northwood Panelboard, owned jointly by Nexfor and MeadWestvaco, operates an oriented strand board plant (OSB) in Bemidji, Minnesota. Cost of the acquisition is US $30 million, plus long-term debt of US $6 million.
“Acquiring 100% of the Bemidji mill is consistent with Nexfor’s strategy to continue growing its presence in OSB,” said Dominic Gammiero, Nexfor’s president and chief executive officer. “It also reflects our commitment and confidence in the Bemidji operation.”
The Bemidji mill has an annual production capacity of 440 million square feet (3/8'') and serves key markets in the North Central United States. With approximately 150 employees, the mill has long been considered one of the industry’s most cost effective OSB plants.
Nexfor is one of the world’s largest producers of wood panels, and the second largest producer of OSB in the United States. Its 10 OSB mills produce nearly four billion square feet (3/8'') of OSB a year.
MeadWestvaco Corporation, headquartered in Stamford, Conn., is a leading global producer of packaging, coated and specialty papers, consumer and office products, and specialty chemicals. Among the principal markets it serves are the automotive, beverage, consumer products, healthcare, media and entertainment, and publishing industries. The company operates in 29 countries and serves customers in nearly 100 nations. Its highly recognized consumer and office brands include AT-A-GLANCE®, Cambridge®, Columbian®, Five Star®, and Mead®. MeadWestvaco manages strategically located forestlands according to stringent environmental standards and in conformity with the Sustainable Forestry Initiative® program.
Kimberly-Clark to Evaluate Spin-Off of Paper and Canadian Pulp Operations
DALLAS, 25 February 2004 /PRNewswire-FirstCall/ -- Kimberly-Clark Corporation
(NYSE:KMB)
announced today that its board of directors has authorized management to
evaluate a potential tax-free spin-off of the company's Neenah Paper and
Technical Paper businesses along with its pulp and timber assets in Pictou, Nova
Scotia, and Terrace Bay, Ontario.
A spin-off would create a publicly traded pulp and paper company with
approximately $650 million in annual sales. The new company would produce a
range of premium and specialty paper lines and more than 700,000 metric tons of
pulp. It would have leading positions in many of its markets, about 2,100
employees and access to 5.9 million acres of Canadian timberlands.
"We believe that a spin-off will provide greater value for Kimberly-Clark
shareholders as it will further enhance our position as a highly focused and
innovative health and hygiene company, allowing us to concentrate our management
and financial resources on our core businesses and to improve our capital
effectiveness," said Thomas J. Falk, chairman and chief executive officer.
"Moreover, a spin-off of this unique set of premium paper, technical paper, pulp
and timber assets would provide shareholders with a direct stake in a new,
high-quality pulp and paper company with its own opportunities for additional
value creation."
The businesses being evaluated for spin-off are all part of Kimberly-Clark's
Business-to-Business segment. Although the businesses on a stand-alone basis
would have approximately $650 million in annual sales, they represent less than
3 percent of K-C's annual net sales. It is expected that Kimberly-Clark would
become one of the new company's largest customers through a pulp supply
agreement. Following a spin-off, Kimberly-Clark would produce about 10 percent
of its worldwide virgin fiber requirements, which is consistent with its
previously stated plan of reducing its pulp integration.
Sean T. Erwin, the current president of Kimberly-Clark's Pulp and Paper Sector,
would become head of the new company. Mr. Erwin, 52, joined Kimberly-Clark in
1978 and has held numerous management positions in the company's pulp and paper
businesses, as well as its consumer products and nonwovens operations.
Management is expected to complete its evaluation and present recommendations to
the board of directors during the second quarter. If the board ultimately
approves a spin-off, a transaction would likely be completed during the second
half of 2004, subject to market, regulatory and other conditions. Goldman,
Sachs & Co. has been retained to assist management in the evaluation process.
Additional Details about the Operations
Neenah Paper has long been recognized as a leading manufacturer of world-class
premium writing, text, cover and watermark papers used in corporate annual
reports, corporate identity packages, invitations, personal stationery and
high-end packaging. Neenah Paper markets some of the most recognized and
preferred premium papers in North America, with distinguished brands including
UV/ULTRA, CLASSIC, ENVIRONMENT and NEENAH. In 2003, Neenah Paper had net sales
of more than $200 million. The operation employs approximately 500 people and
has manufacturing facilities in Neenah and Whiting, Wis. Kimberly-Clark
acquired Neenah Paper in 1956.
Technical Paper is a leading producer of durable, saturated and coated base
papers for a variety of end uses, including tapes, labels, abrasives, medical
packaging and heat transfer products. With commercial customers in 35 countries
worldwide, Technical Paper had net sales in excess of $100 million in 2003. It
employs approximately 350 people and has a manufacturing facility in Munising,
Mich. Kimberly-Clark acquired Technical Paper in 1952.
Pictou began production in 1967 and includes a pulp mill, as well as timberlands
encompassing approximately 1.2 million acres of owned, licensed or managed land
in Nova Scotia. The operation produces softwood and hardwood pulp and is
capable of providing various softwood/hardwood blends to meet customer needs.
In 2003, the Pictou mill produced nearly 260,000 metric tons of bleached kraft
pulp, about 90 percent of which was used to make Kimberly- Clark products. The
Pictou operation employs approximately 350 people and is located in New Glasgow,
Nova Scotia, near three ocean ports-Pictou, Mulgrave and Sheet Harbour-and a
container port in Halifax. Kimberly-Clark acquired this business in 1995 as a
result of its merger with Scott Paper Company.
Terrace Bay has been a leading Canadian pulp mill since it first began
production in 1948, supplying pulp to both the U.S. and Canada. Built by
Kimberly-Clark, Terrace Bay manufactures both softwood and hardwood pulp and
includes a woodlands operation. Terrace Bay holds the rights to harvest
approximately 4.7 million acres of Crown land under a sustainable forest
license. It produces approximately 470,000 metric tons of pulp per year, 85
percent of which is consumed within Kimberly-Clark. The operation employs
approximately 900 people and is located on the north shore of Lake Superior in
Ontario.
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an indispensable part of
life for people in more than 150 countries. Every day, one in four people
around the world trust K-C's brands to enhance their health, hygiene and well
being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend,
Kimberly-Clark holds the No. 1 or No. 2 brand position in more than 80
countries. To keep up with the latest K-C news and to learn more about the
company's 132-year history of innovation, visit
www.kimberly-clark.com
.
Certain matters contained in this news release concerning the business outlook,
including new product introductions, cost savings and acquisitions, anticipated
financial and operating results, strategies, contingencies and anticipated
transactions of the company constitute forward-looking statements and are based
upon management's expectations and beliefs concerning future events impacting
the company. There can be no assurance that these future events will occur as
anticipated or that the company's results will be as estimated. For a
description of certain factors that could cause the company's future results to
differ materially from those expressed in any such forward- looking statements,
see the section of Part I, Item 1 of the company's Annual Report on Form 10-K
for the year ended December 31, 2002 entitled "Factors That May Affect Future
Results".
Blue Ridge Paper to Close Texas
Converting Plant
Blue Ridge Paper Products Inc., 25 February 2004, Canton, North Carolina, USA will close its liquid packaging production facility in Ft. Worth, Texas by mid-2004. A total of approximately 120 jobs at the Ft. Worth plant, of which approximately 100 are represented by the Paper, Allied-Industrial, Chemical & Energy Workers (PACE) International Union will be eliminated.
Affected employees will receive previously negotiated severance benefits, which include seniority-based wages, and be eligible for continuation of Company-provided medical benefits, as well as assistance to the employees in locating alternate employment.
Blue Ridge Paper Products Inc. operations consist of a pulp and paper mill in Canton, N.C., an extrusion coating facility in Waynesville, N.C., and packaging converting plants in Olmsted Falls, Ohio; Clinton, Iowa; Athens, Georgia; and Richmond, Virginia; in addition to the Ft. Worth facility. Blue Ridge, the nation’s second largest producer of liquid packaging, is headquartered in Canton, North Carolina.
GP & Koch reach definitive agreement
ATLANTA - 26 February 2004 - Georgia-Pacific Corp. (NYSE: GP) and Koch Cellulose, LLC, a wholly owned subsidiary of Koch Industries, Inc., today announced they have reached a definitive agreement on the previously announced sale of Georgia-Pacific's non-integrated fluff and market pulp operations to the Koch subsidiary for $610 million.
Georgia-Pacific expects the transaction to result in debt reduction of $535
million, which includes cash and $73 million of debt to be assumed by Koch
Cellulose. The sale, consisting of assets and the stock of Georgia-Pacific's
Brunswick Pulp & Paper subsidiary, will generate net after-tax proceeds to
Georgia-Pacific equivalent to an all-asset sale at approximately $735 million.
Georgia-Pacific expects to record an after-tax expense of approximately $20
million upon closing.
Closing of the transaction is subject to regulatory approvals and satisfaction of customary closing conditions. Included in the sale, which is expected to close early in the second quarter, are Georgia-Pacific's pulp mills at Brunswick, Ga., and New Augusta, Miss., a short-line railroad servicing the New Augusta mill and the assets of two international sales offices.
W. Wes Jones, currently president - pulp for Georgia-Pacific, has accepted
the position of president of Koch Cellulose, pending completion of the sale.
Jones joined Georgia-Pacific in 1988 as pulping and woodyard superintendent of
the Crossett, Ark., operations. He moved to Brunswick in 1991 as production
manager and became general manager of the mill in 1993. Jones was named vice
president - Brunswick operations, in 1994 before becoming president - pulp in
2000. He holds
a bachelor's degree from the University of Florida.
The headquarters for Koch Cellulose will be located in Brunswick.
Annual fluff pulp capacity at the Brunswick mill is 826,000 tons. Fluff pulp
is predominantly used in products such as disposable diapers, baby wipes and
sanitary products. In 2002, the New Augusta mill had annual market pulp capacity
of 628,000 tons. Goods commonly produced from market pulp include fine papers,
postage stamps, tissue products and coffee filters. During 2003, New Augusta
began production of fluff pulp to meet growing market demands. Combined, the
facilities being sold employ approximately 1,100 people.
Headquartered at Atlanta, Georgia-Pacific is one of the world's leading
manufacturers and marketers of tissue, packaging, paper, building products, pulp
and related chemicals. With 2003 annual sales of more than $20 billion, the
company employs approximately 61,000 people at 400 locations in North America
and Europe. Its familiar consumer tissue brands include Quilted Northern(R),
Angel Soft(R), Brawny(R), Sparkle(R), Soft 'n Gentle(R), Mardi Gras(R), So-Dri(R),
Green Forest(R) and Vanity Fair(R), as well as the Dixie(R) brand of disposable
cups, plates and cutlery. Georgia-Pacific's building products business has long
been among the nation's leading suppliers of building products
to lumber and building materials dealers and large do-it-yourself warehouse
retailers. For more information, visit www.gp.com.
Koch Cellulose, LLC is a stand-alone company and a wholly owned subsidiary of Koch Industries, Inc. Koch Industries, based in Wichita, Kan., owns a diverse group of companies engaged in trading, operations and investments worldwide.
Certain statements contained in the press release, including statements
regarding the transaction with Koch Industries, are forward-looking statements
(as such term is defined under the federal securities laws), are based on
current expectations and assumptions and are subject to risks and uncertainties,
many of which are outside the control of Georgia-Pacific. Actual results could
differ materially as a result of many factors, including, but not limited to,
the inability of the parties to secure any required approvals or consents or
otherwise to complete the transaction in a timely manner, and other factors
listed in Georgia-Pacific Corporation's Securities and Exchange Commission
filings, including its report on 10-K for the fiscal year ended January 3, 2004.
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