28.10.2005
Stora Enso Moves Ahead with Chinese Joint Venture
Stora Enso said that it has signed an agreement with Chinese board producer Foshan Huaxin Packaging Co., Ltd. to form a joint venture to produce liquid packaging boards in China. The agreement is subject to final approval by Stora Enso's Board of Directors.
Stora said that it will have an 80% majority shareholding in the deal.
According to Stora, Foshan Huaxin Packaging has begun building a white lined chipboard machine with an annual production capacity of 250,000 tonnes at its board mill in Zhuhai in southeast China.. Through the joint venture company, Stora Enso plans to change the scope of the project by modifying the machine to manufacture primary-fiber-based products such as liquid packaging boards, cupstock, cigarette boards and other cartonboards, thereby becoming the first producer of liquid packaging board for aseptic end uses in China.
Final decisions on the project are expected to take place by the end of 2005, Stora said.
The new joint-venture company will be called Stora Enso Huaxin (Zhuhai) Packaging Boards Co., Ltd.
Storaenso.com
28.10.2005
BNDES approves financing for Suzano's Mucuri pulp project
Suzano Papel e Celulose, one of the largest integrated producers of paper and pulp in Latin America, announced today that BNDES (the Brazilian Development Bank) has approved financing for the Mucuri Project, on terms and conditions appropriate for such projects.
Bernardo Szpigel, CFO of Suzano Papel e Celulose, said: "This approval is of great importance for the feasibility of this project and for the growth of our company. BNDES, which always has a long-term vision, has been part of the Mucuri Mill since its initial conception, when the possibility of this expansion was already considered. The Mucuri Project will contribute to the development of the Brazilian pulp and paper industry, generation of employment in the region, structural growth in Brazilian exports and the development of the country."
He added: "The financing approved covers not only the US$1.3 billion in capital expenditures going forward, but also investments already made in forming more than 85% of the forest base for the project, and its working capital requirements. We expect BNDES to finance around 50% of the total project. The structure approved also includes the possibility of a R$ 240 million issue of convertible debentures, which is currently under study by the company and BNDES. When these studies are complete, we will provide the market with further information and details."
Suzano Papel e Celulose is one of the largest vertically integrated producers of eucalyptus pulp and paper in Latin America, with pulp production capacity of 1.1 million tons/year and paper production capacity of 820 thousand tons/year. It offers a broad range of pulp and paper products for the domestic and international markets, with leadership positions in key Brazilian markets. It has four product lines: (i) eucalyptus pulp; (ii) uncoated woodfree printing and writing paper; (iii) coated woodfree printing and writing paper; and (iv) paperboard. Suzano Papel e Celulose indirectly owns 50% of the controlling interest in Ripasa S.A Celulose e Papel, which produces pulp, printing and writing paper, specialty papers, paperboard and cardboards. Ripasa's 2004 net sales were R$ 1.4 billion, from sales of 612,000 tons of products. It has four industrial units in Sao Paulo State, and forest areas totaling 86,400 hectares.
Paperloop.com
28.10.2005
Georgia-Pacific Third Quarter Income Slips on Costs, Pricing
Georgia-Pacific Corp. today reported third quarter 2005 net income of $145 million (55 cents diluted earnings per share) compared with net income of $240 million (91 cents diluted earnings per share) in third quarter 2004.
"This was a solid quarter, with our North America consumer products and building products businesses performing well. In fact, building products had its best quarter this year," said A.D. "Pete" Correll, Georgia-Pacific's chairman and chief executive officer. "We continued to make progress toward our North America consumer products goal. Our third quarter asset restructuring announcement to move production to newer, more efficient machines represents the most recent step in our continuing execution of our consumer products strategy.
"Higher costs and lower prices continue to negatively impact both our packaging and bleached pulp and paper businesses. Raw materials and energy inflation company-wide increased our costs for the quarter by approximately $105 million versus the same period last year. Hurricane Katrina related costs amounted to approximately $15 million for the quarter while transportation costs increased approximately $35 million," said Correll.
Third quarter 2005 net income before unusual items was $200 million (76 cents diluted earnings per share). Unusual items included:
· A $43 million charge ($28 million after tax, or 10 cents diluted loss per share) primarily for the recently announced restructuring of the North America and international consumer products businesses,
· A $36 million income tax liability (14 cents diluted loss per share) related to the planned repatriation of $709 million of unremitted earnings of certain of the company's non-U.S. subsidiaries under the provisions of the American Jobs Creation Act,
· A $20 million gain ($16 million after tax, or 6 cents diluted earnings per share) related to the sales of the company's controlling interest in GP Flakeboard, Inc., and the company's Richwood, W.Va., hardwood sawmill,
· An $8 million charge ($5 million after tax, or 2 cents diluted loss per share) for environmental liabilities,
· A $7 million charge ($4 million after tax, or 2 cents diluted loss per share) for sales tax audits related to Unisource Worldwide, Inc., when it was wholly owned by Georgia-Pacific,
· A $4 million credit ($2 million after tax, or 1 cent diluted earnings per share) related to the favorable settlement of an asbestos insurance receivable.
In addition, third quarter 2005 results include a $25 million charge ($16 million after tax, or 6 cents diluted loss per share) related to the expensing of stock-based compensation versus a charge of $24 million ($15 million after tax, or 6 cents diluted loss per share) in the third quarter 2004.
Third quarter 2004 net income before unusual items was $235 million (89 cents diluted earnings per share). Unusual items totaled $5 million after taxes (2 cents diluted earnings per share) and included gains from facility sales and working capital settlements from earlier divestitures, offset in part by severance and other restructuring costs across several business units.
Note: Georgia-Pacific management believes that, because of the nature of these items, investors' understanding of the company's performance is enhanced by disclosing net income before the unusual items as a reasonable basis for comparison of the company's core ongoing results of operations. The attached Reconciliation of Earnings Before Unusual Items provides a reconciliation of net income before the unusual items to net income determined in accordance with generally accepted accounting principles.
Georgia-Pacific's net sales were $4.7 billion for the third quarter 2005, equal to the third quarter 2004.
Total debt was approximately $7.9 billion at the end of the third quarter, down $584 million versus the second quarter 2005 and down almost $1 billion compared to the same period one year ago.
For the first nine months of 2005, Georgia-Pacific reported net income of $544 million ($2.06 diluted earnings per share), compared with $607 million ($2.31 diluted earnings per share) in the same period of 2004.
For the first nine months of 2005, the company reported net income excluding unusual items of $621 million ($2.35 diluted earnings per share), compared with $637 million ($2.42 diluted earnings per share) in the same period of 2004.
Net sales for the first nine months of 2005 were $14 billion, compared with $15 billion in the same period a year ago. Excluding sales from the building products distribution business, which was sold in May 2004, net sales for the first nine months of 2005 increased $304 million, or 2 percent, compared with the first nine months of 2004.
North America Consumer Products
The North America consumer products segment includes the company's retail and commercial tissue businesses. Familiar consumer tissue brands include Angel Soft®, Quilted Northern®, Brawny®, Sparkle®, Mardi Gras® and Vanity Fair®, as well as the Dixie® brand of disposable cups, plates and cutlery.
The segment recorded third quarter 2005 operating profit of $197 million versus $206 million in third quarter 2004. Third quarter 2005 results include a $38 million charge primarily for the previously announced restructuring of commercial tissue operations. Included in the third quarter 2004 results were charges of $6 million primarily for severance and equipment relocation expenses in the Dixie business. Excluding these charges, operating profits for the segment increased $23 million or 11 percent over third quarter 2004.
Profit improvement was driven by a combination of price, higher-margin products and cost reductions that offset higher energy and chemical costs. Tissue prices increased 6 percent per ton. Shipments in tons were flat with gains in retail shipments offsetting a decline in commercial shipments driven by weaker industry conditions.
Dixie profitability increased with prices higher year over year. Realized price increases and cost reductions in this business more than offset reduced shipments and higher costs.
The North America consumer products segment continues to implement its strategy to achieve the $1.2 billion annualized operating profit goal by the end of 2006.
International Consumer Products
The international consumer products segment markets both retail and commercial products such as bathroom and facial tissue, handkerchiefs and paper towels, as well as personal care products in Europe and other locations. Market-leading brands include Lotus®, Moltonel®, Colhogar®, Tenderly®, Delica® and Demak'Up®.
The segment recorded a third quarter 2005 operating profit of $15 million, compared with $39 million during the same quarter a year ago. The third quarter 2005 results include a charge of $4 million for the previously announced restructuring of some international assets. Third quarter 2004 results include unusual items of $5 million for severance, equipment relocation and a loss from a fire at the Ivanteevka facility in Russia.
Operating profit for this business was impacted by lower prices, higher pulp and energy costs, and effects of a pulp and paper industry strike/lockout in Finland and product changes associated with a machine rebuild in the United Kingdom. These factors were partially offset by continued cost reduction and spending discipline.
Changes in the currency exchange rate between the U.S. dollar and the euro since the third quarter 2004 had no impact on this quarter.
Packaging
Georgia-Pacific's packaging segment includes four containerboard manufacturing facilities and 55 converting operations. Its Color-Box subsidiary is a leading high-graphics, litho-laminated corrugated manufacturer in North America.
The segment recorded an operating profit of $45 million in the third quarter 2005, compared with $100 million in the third quarter 2004.
Lower prices combined with higher costs for energy, transportation, wood and chemicals resulted in lower operating profit for the business. During the quarter, corrugated box shipments were up 1 percent for the company while shipments reported by the Fibre Box Association were down 1.5 percent. Near the end of the quarter the containerboard mill in Monticello, Miss., was impacted by Hurricane Katrina.
Bleached Pulp and Paper
The bleached pulp and paper segment is comprised of the company's communication papers, bleached board and kraft businesses, and its 40 percent minority ownership in Unisource Worldwide, Inc.
The segment recorded a third quarter 2005 operating loss of $5 million, compared with an operating profit of $20 million in the third quarter 2004. Third quarter 2005 results included an $8 million charge primarily for sales tax audits related to Unisource for periods that it was wholly owned by Georgia-Pacific. Third quarter 2004 results include a $2 million reduction in the gain realized on the second quarter 2004 sale of the company's interest in Aracruz Celulose S.A.
Operating profit in this business was impacted by higher costs for energy and chemicals coupled with lower uncoated free sheet prices, which were partially offset by improved performance in the bleached board and kraft businesses.
Building Products
The company's diversified building products segment includes structural panels, gypsum, lumber, industrial wood products and chemical manufacturing businesses.
In the third quarter 2005, building products' operating profit was $269 million versus $282 million in the third quarter 2004. Third quarter 2005 results include a $20 million gain from the sales of the company's controlling interest in GP Flakeboard, Inc., and the company's Richwood hardwood sawmill. The third quarter 2004 results include a gain totaling $3 million, which includes a pretax gain on the sale of three hardwood lumber mills, offset in part by asset impairment and severance costs.
Structural panels demand remained strong, driven by residential and non- residential construction, and repair and remodeling. Prices moderated from prior year levels. Lumber shipments remained strong compared with a year ago, and prices rose 12 percent. In the aftermath of Hurricane Katrina, the company restarted its idled Gloster, Miss., plywood facility and Roxie, Miss., sawmill. These facilities will serve the rebuilding efforts in the Gulf region and will be furnished in part with damaged timber salvaged in the region.
Demand remained strong in the gypsum business, which implemented price increases during the quarter for both ToughRock® and Dens® product lines. Strong prices and higher shipments more than offset higher energy costs. Overall, the Dens family of products continued to perform well in both residential and non-residential markets, including sheathing, roofing, decking, interior panels and fireproof door product lines.
Other
The company's Other segment primarily includes unallocated corporate expenses and the elimination of intersegment sales and profits.
The segment reported third quarter 2005 expenses of $104 million, compared with expenses of $122 million for the same period in 2004.
Included in third quarter 2005 results were:
· An $8 million charge for environmental liabilities, and
· A $4 million credit related to the negotiated settlement of an asbestos receivable.
Paperage.com
28.10.2005
Stora Enso to Close Four Mills, Sell Six, Cut Workforce
Stora Enso today announced that the pulp and paper industry is generally suffering from poor profitability. Stora Enso is facing several challenges in Europe, such as rising input costs, structural overcapacity and increased competition from low-cost regions. Despite its significant global presence and investment focus on new growth markets, the Group's main market remains Europe, where it is vital to secure better financial performance and long-term competitiveness.
"The two improvement programmes, Profit 2007 and Asset Performance Review (APR), will improve the competitiveness of our European platform through continued development of core assets. At the same time we are increasingly focusing investments on new growth markets," CEO Jukka Harmala explains.
Two main initiatives are:
· Profit 2007; improvement in annual pre-tax profit of EUR 300 million
· Asset Performance Review (APR) - short-term reduction of about 400,000 tonnes in annual capacity
Profit 2007 - target EUR 300 million improvement in annual pre-tax profit from mid 2007 onwards.
To be achieved by:
· Reducing production costs (EUR 160 million)
· Reducing support and administration costs (EUR 120 million)
· Improving sales and production mix (EUR 20 million)
· Reducing personnel by about 2,000
The profit improvement target of the Profit 2007 programme is based on 2005 price and cost levels and is net of implementation costs.
Production Costs
The main production cost saving measures will be reductions in raw material and maintenance costs, and a review of mill organisations. Costs will be reduced through energy-saving programmes at various mills, reduced use of chemical pulp and recipe changes, more efficient and globally co-ordinated purchasing, and further optimisation of logistics.
Support and Administration Costs
The main changes in administration and support functions will be a review of headquarter operations, reorganisation of the sales network and further development of shared services. IT platforms will be consolidated and standardised.
Planned changes include:
· Establishing Human Resources and Accounting shared services
· Integrating administration of:
- Skutskar and Norrsundet mills in Sweden
- Summa, Kotka and Anjala mills in Finland
- Veitsiluoto and Kemijarvi mills in Finland
- Kabel and Reisholz mills and Dusseldorf office in Germany
· Reorganising Financial Services (Treasury) by moving a major part of the operations from London to Helsinki
Sales and Production Mix
The main aim as regards sales and production mix is to improve overall efficiency by optimising the customer and product portfolio. The product portfolio will be reviewed with the focus on profitability.
Personnel Reductions
Personnel reductions totalling about 2,000 have been identified, half of them white-collar and half blue-collar staff. Slightly more than half of them would be in the Nordic countries and the rest elsewhere in Europe. No specific unit is especially affected. The final personnel reduction number will be determined after the local negotiations are completed. Possible outsourcing might reduce the workforce by a further 600-700 people. Provisions for the personnel-related restructuring costs as part of Profit 2007 will be made as the programme evolves.
Asset Performance Review (APR) to secure a competitive European production base
· Planned closures of four units with approximately 400,000 tonnes annual capacity
· Divestment of six production units
· About 2,300 personnel potentially affected
The units that are planned to be closed under the APR have not been achieving the Group's financial performance targets and are unlikely to do so in the future. These closures are intended to improve the viability of the remaining units. They will be individually scheduled and all will be completed during 2006.
Estimated effects of the restructuring and closures when they have all been completed (excluding the possible divestments):
· Net sales decreased by about EUR 220 million
· EBIT increased by about EUR 10 million
· Working capital released about EUR 30 million
· The Group anticipates provisions and write-downs in the fourth quarter of 2005 of approximately EUR 300 million, of which about EUR 50 million would have a cash impact
· Currently identified personnel reductions due to closures about 730
Summary of closures and divestments, which are subject to local rules and regulations
Stora Enso Publication Paper
· Planned closure of PM3 and PM4 at Corbehem Mill, France (LWC, 250,000 tonnes/year)
· Divestment of Wolfsheck Mill, Germany, which is changing from SC to other paper grades (155,000 tonnes/year)
Stora Enso Fine Paper
· Planned closure of PM1 at Varkaus Mill, Finland (WFC, 95,000 tonnes/year)
· Divestment of Grycksbo Mill, Sweden (WFC, 280,000 tonnes/year)
· Possible divestment of Celbi Mill, Portugal (short-fibre pulp, 305,000 tonnes/year)
Stora Enso Packaging Boards
· Planned closure of Hammarby Mill, Sweden (plastic coating, 35,000 tonnes/year)
· Planned closure of PM31 at Stevens Point Mill, USA (coated specialities, 25,000 tonnes/year)
· Divestment of Pankakoski Mill, Finland (FBB, WPB, SBS, 95,000 tonnes/year)
Stora Enso Forest Products
· Divestment of Veitsiluoto Sawmill, Finland (300,000 m cubed/year)
· Divestment of Linghed Sawmill, Sweden (40,000 m cubed/year)
The divestment of these units would decrease net sales by EUR 490 million. The financial effects will be determined when the divestments are finally agreed. The decision to divest these units is based on an assessment of their profit potential, strategic fit or realisable value.
Storaenso.com
26.10.2005
TimBar Packaging and Display announces acquisition of Berry Packaging
TimBar Packaging and Display announces its acquisition of Berry Packaging, Inc. located in Tampa, Florida. "We are excited about the acquisition of Berry Packaging. It will complement our Miami facility and allow us to expand our market share in Florida", stated Matt Heleva, president and CEO of TimBar. He added, "Berry Packaging has an excellent reputation for being a quality corrugated producer. This acquisition will allow us to further support them with additional capital investment and a continuous supply of sheets".
"TimBar is a strong company with 50 years experience in corrugated packaging. We look forward to what their expertise will bring to this facility and the marketplace", said Randy Johnson general manager/vice president for Berry Packaging. He further stated, "In the 18 years since we started Berry Packaging, we have grown into a major independent corrugated box manufacturer with unique, state of the art equipment. Now, with the support of TimBar and the opportunities that come with a large established company, we are excited about the added capabilities we will have to offer our customers."
TimBar Packaging and Display has corrugator plants in Miami, Florida and New Oxford, Pennsylvania in addition to four sheets plants, three fulfillment centers and a retail packaging and point-of-purchase division. TimBar is celebrating its 50th year in business this year and is one of the largest independent corrugated packaging manufacturers in the United States.
Lesprom.com
26.10.2005
Norske Skog registered increase in capital to NOK 1.9 billion
After the new issue, Norske Skog has a share capital of NOK 1 899 456 260 ($293.0 million) based on 189 945 626 shares, each with a par value of NOK 10 ($1.5). The proceeds of the new issue have now been paid to Norske Skog, and the increase in capital has been registered in the register of business enterprises. Trading in the new shares starts on Wednesday, October 26.
Norske Skog is a global supplier of publication paper with mills and sales offices on five continents. The core business is newsprint and magazine paper for some of the world's major publishing houses.
Lesprom.com
26.10.2005
UPM Finesse bulky matt for HSWO printing
UPM has broadened its volume paper offering: in addition to the range of sheet papers introduced in spring 2005, UPM Finesse bulky matt has been launched for web offset printing in September.
UPM Finesse bulky matt is a high-white matt-coated woodfree paper that combines the outstanding optical properties offered by the UPM Finesse art paper range with a higher bulk and greater rigidity. The UPM Finesse bulky matt papers have a bulk of 1.05 cm?/g in reels and 1.1 cm?/g in sheets.
"Both grades have been matched to each other in terms of optical characteristics, so that reel and sheet papers can easily be used together to achieve visually attractive combinations of for example text and cover," says Kari Ylonen, Business Manager for Graphic Reels at UPM. With their high whiteness, both papers are perfectly in line with the total UPM Finesse offering.
Whether in sheets or in reels, UPM Finesse bulky matt papers are particularly attractive to book publishers, as they give printed products with a limited number of pages more bulk without adding any extra weight. Along with the paper's high rigidity, the matt surface provides a pleasant feel while ensuring superior readability. Further advantages of the UPM Finesse bulky matt range include an excellent runnability in the printing press and versatile finishing options. These strengths combine to make the paper a perfect choice for various applications such as direct mails, advertising material and - particularly as reel stock - for the production of envelopes.
UPM Finesse bulky matt for web offset printing is produced at the Kymi mill in Finland and is available in basis weights ranging from 80 to 130 g/m? and in reel widths from 200 to 2200 mm. UPM Finesse bulky matt for sheet fed offset printing is produced by Nordland Papier in Dorpen and supplied in a basis weight range from 90 to 170 g/m?.
Upm-kymmene.com
26.10.2005
Smurfit-Stone and Weedon to launch an i2i design center in the U.K.
Smurfit-Stone Container Corporation today announced that it has entered into a joint venture agreement with Weedon psc, a corrugated point-of-sale display and packaging business. Together, the companies will launch an i2i design center in the United Kingdom called i2i Europe, which will focus on adding value to the European retail market.
This newly formed joint venture reinforces Smurfit-Stone's longstanding relationship with Weedon psc. Working together, they will provide value-added, creative, shelf-ready packaging and supply chain solutions to retailers in the U.K. The agreement further enhances Smurfit-Stone's abilities to offer complete merchandising solutions to European-based retailers as well as North American retailers operating in Europe.
"We are excited to strengthen our alliance with Weedon psc through the formation of i2i Europe," said Lane Hunter, senior vice president and general manager of Smurfit-Stone's i2i merchandising business. "This agreement underscores Smurfit-Stone's commitment to provide innovative solutions to our customers by partnering with a network of service providers as we continue to seek growth opportunities in today's evolving marketplace."
"We are delighted to have formed this joint venture with Smurfit-Stone. i2i Europe is an exciting and highly significant opportunity to add value to both European retailers and their global supplier base," said John Weedon, managing director of Weedon psc. "This unique partnership will combine retailer-focused design and supply chain solutions, supported by the Smurfit-Stone global packaging manufacturing base."
Paperloop.com
26.10.2005
European recycling rate hits new high in 2004
The European industries recycling paper and board have further highlighted their ongoing commitment to sustainability by achieving a record new recycling rate of 54.6%. This means the industries are on track to hit their target for increasing European recycling rates to 56% by the end of 2005.
Increased recycling makes an important economic as well as environmental contribution to Europe's sustainable development. Greater utilisation of recovered paper is highlighted as a main contributing factor in the increase. The latest figures were released today in 'The European Declaration on Paper Recovery Annual report'.
Paper recycling has an important and positive contribution to Europe's objectives of sustainable development and long-term, robust growth and employment. As paper recycling both stores CO2 in paper fibres and saves primary CO2 emissions in production it also helps to achieve the Climate Change targets EU has committed to. Sustainability is further reinforced by the fact that recycling creates employment and saves energy and natural resources.
The voluntary 56% target was set by the Industry in 2000 with the launch of 'The European Declaration on Paper Recovery' (see www.paperrecovery.org). Hitting that figure by end of 2005 would mean that the actual amount of paper and board recycled will be a staggering 25%, or 10 million tonnes, higher than in the base year 1998.
2004 figures show that the recycling rate has risen to 54.6% from 53.9% in 2003, or from 48.9% in 1998 (base year). This means that more than half of the paper consumed in Europe is produced from recovered paper. One of the main contributing factors to this increased rate has been the higher use of recovered paper, which is up 21.0% over the last five years. Increase in recovered paper utilisation has been much faster than growth in paper consumption during the same time, which has risen by 8.2%. In 2004 the utilisation of recovered paper summed up to 45.5 Million Tonnes.
The paper and board industries are not however complacent, recognising that each incremental increase in the recycling rate is progressively more difficult. A new and more ambitious commitment is under preparation for the period 2006 - 2010 and stakeholders continue to develop and support initiatives to promote recycling across the paper industry related chain.
Paperloop.com
26.10.2005
Stora Enso to Increase Price for Label and Flexible Packaging Papers in Europe
Stora Enso Speciality Papers announced a 5% increase in the price of its wet strength Label Papers and Flexible Packaging Papers to European customers for deliveries as of January 1, 2006.
Stora Enso said the increase is necessary due to the significant rise in cost of energy and oil based raw materials.
Storaenso.com
26.10.2005
International Paper Posts Third Quarter Profit
International Paper today reported third-quarter 2005 net earnings of $1.04 billion ($2.07 per share), compared with $77 million ($0.16 per share) in the second quarter of 2005 and a net loss of $470 million ($0.91 per share) in the 2004 third quarter.
Third quarter 2005 earnings included $278 million from discontinued operations ($0.55 per share) relating to the sale of the company's interest in Carter Holt Harvey Ltd. and $603 million ($1.19 per share) principally from a U.S. federal income tax audit agreement reached with the U.S. Internal Revenue Service. The 2004 third quarter results included a discontinued operations charge of $684 million ($1.34 per share) primarily from the sale of Weldwood of Canada Ltd. Amounts for all quarters also included certain other special items.
Earnings from continuing operations and before special items in the third quarter of 2005 were $162 million ($0.33 per share), compared with $143 million ($0.29 per share) in the second quarter of 2005 and $200 million ($0.40 per share) in the third quarter of 2004.
Third-quarter 2005 net sales were $6.0 billion, compared with $5.9 billion in the second quarter of 2005 and $6.0 billion in the third quarter of 2004. The company experienced seasonal sales increases in most businesses, with the exception of a slight decline in the industrial packaging business.
Operating profits of $489 million for the 2005 third quarter were slightly lower compared with second-quarter 2005 operating profits of $491 million, due principally to lower price realizations and higher energy costs. However, higher earnings from land and real estate sales and continued strong productivity improvements helped offset some of these negative impacts.
"Our mills ran well and continued the aggressive improvement we've been seeing all year, which helped offset some of the impact of pricing pressure and energy costs," said Chairman and Chief Executive Officer John Faraci. "This improvement at the mill level, combined with the execution of our transformation plan, is positioning International Paper for much stronger results once input costs abate."
Commenting on the fourth quarter of 2005, Faraci said, "We estimate fourth-quarter earnings from continuing operations and before special items to be lower than third quarter predominantly because of skyrocketing raw material costs, particularly energy, and higher transportation costs."
Internationalpaper.com
26.10.2005
Sunderland Paper to close
The Edward Thompson Group has announced that it is to bring papermaking to an end at its Sunderland Paper division. The move would result in around 95 redundancies out of a total work force of 490.
The Group has three main areas of business - papermaking, print and gaming supplies. Both the gaming supplies and promotional print divisions are trading well with sales 20% up this year. However, the paper division has suffered a dramatic increase in energy costs.
Chief executive Phil Cronin commented, 'The paper division's gas and electricity costs have increased by 160% in just two years and from November our annual energy bill will be ?2.5 million on paper sales of ?10 million. We have been unable to pass this cost on to customers and our sales have suffered.
'The bingo and print parts of the company are trading well and to support the long term future of the Group we are proposing to stop production of paper.'
Paperandprint.com
25.10.2005
Steelworkers meet with potential buyer for Abitibi paper mill
The United Steelworkers met Friday with a businessman interested in operating and maintaining two paper machines in Kenora, Ont. The Kenora machines are currently owned and operated by Abitibi Consolidated Inc. The company planned to mothball one of them as of Sunday (Oct. 23).
"The discussions were very fruitful," says Steelworkers-IWA Council Chair Norm Rivard. "A key obstacle is the fact that Abitibi itself, which is refusing to sell and instead is threatening to put 320 workers out on the street by shutting down its number 10 paper machine."
Rivard said talking to a potential buyer is one way to fight to maintain jobs in the community.
"If Abitibi relents and agrees to maintain production, we would have no problem with that," said Rivard. "But if the company doesn't want to be a good corporate citizen, then it should step aside allow someone else to take it on."
"This is a good, productive operation with a guaranteed market, an adequate supply of fibre and a well-trained efficient workforce. It is an attractive acquisition."
Paperloop.com
25.10.2005
Kimberly-Clark reports 3Q sales increase but profits hit by restructuring costs
Kimberly-Clark Corporation today reported that sales in the third quarter of 2005 were $4.0 billion, an increase of 5.8 percent over the prior year and a new quarterly record. The improvement was driven by volume growth of about 4 percent along with currency benefits of nearly 2 percent.
Diluted net income of 68 cents per share decreased 22 percent compared with income from continuing operations of 87 cents per share in 2004. However, excluding charges related to competitive improvement initiatives for streamlining the company's operations, earnings before unusual items in the third quarter of 2005 rose 9 percent to 95 cents per share. This was in line with the company's previous guidance (94 to 96 cents per share) despite higher-than-expected energy costs and direct expenses from Hurricane Katrina that totaled approximately $15 million before tax, or 2 cents per share.
In the third quarter of 2004, reported net income of 89 cents per share included 2 cents per share from discontinued operations, representing the results of the company's former fine paper and technical paper businesses that were part of the Neenah Paper spin-off to shareholders on November 30, 2004.
Chairman and CEO Thomas J. Falk attributed the improvement in third quarter results to continued solid execution of the company's Global Business Plan. He said, "K-C teams are focused on building and extending our brands, reducing costs and improving returns on invested capital. In combination, these strategies are enabling us to generate profitable top-line growth, deliver bottom-line results in line with our objectives and return significant amounts of cash to our shareholders. I am proud of what our teams have accomplished this quarter, particularly in light of the inflationary pressures that have impacted our businesses."
The company noted that sales for the quarter were about 7 percent above the prior year excluding sales in 2004 from the pulp operations that were also divested in the Neenah Paper spin-off. Highlights of the 4 percent increase in sales volumes included continued strength in developing and emerging markets along with double-digit growth for key personal care and consumer tissue brands in North America and for diapers in Europe. In addition to currency effects of 2 percent, higher net selling prices boosted sales by approximately 1 percent.
The top-line growth, continued successful cost and tax savings initiatives and the company's ongoing share repurchase program were key factors contributing to the 9 percent improvement in third quarter earnings per share before unusual items. In achieving these results, the company absorbed inflation in key cost components totaling approximately $90 million and funded more than $25 million of additional marketing and research spending for new and improved products.
Review of third quarter sales by segment
Sales of personal care products rose 7.5 percent in the third quarter, on the strength of a 6 percent increase in sales volumes and currency benefits of 3 percent. Net selling prices declined about 1 percent, as response to competitive activity in Europe, primarily for diapers, was partially offset by higher prices in Asia and Latin America.
Personal care sales in North America increased approximately 3 percent versus the prior year. Sales volumes advanced about 5 percent, while product mix declined 2 percent. Net selling prices were unchanged year-over-year, an improvement versus the 3 percent decline in the second quarter. Price increases for the company's infant, child and incontinence care products in the U.S. were implemented as planned during the third quarter. Leading contributors to the overall volume growth included infant care, with a solid gain of 7 percent, and incontinence care, baby wipes and toiletries, each delivering continued double-digit growth. In Europe, sales were down 1 percent. Sales volumes rose 7 percent, due mainly to a 10 percent increase for diapers stemming from the brand and product innovation strategies implemented late last year. The volume gains, however, were offset by an 8 percent decline in selling prices, as competition in the diaper category remained intense. In developing and emerging markets, personal care sales climbed 18 percent, driven by widespread volume growth and currency benefits, along with higher selling prices and improved product mix.
Sales of consumer tissue products grew 8.1 percent. Sales volumes improved approximately 4 percent, while net selling prices and currency exchange rates were both about 2 percent better.
In North America, sales of consumer tissue products advanced more than 10 percent, as net selling prices and sales volumes both increased 5 percent compared with the third quarter of 2004. Volume growth was particularly strong in bathroom tissue behind innovative new products and packaging for the Cottonelle and Scott brands. Scott bathroom tissue volumes rose at a double-digit rate for the second consecutive quarter, benefiting from the successful launch of the new Scott Extra Soft line extension. In Europe, consumer tissue sales decreased 3 percent. Sales volumes declined nearly 2 percent and net selling prices were about 1 percent lower in continued competitive market conditions. Consumer tissue sales in developing and emerging markets expanded 18 percent, with higher sales volumes, including double-digit growth in Asia, currency and product mix all contributing to the improvement.
Sales of business-to-business products decreased 5.3 percent in the quarter, but were about 3 percent greater excluding 2004 sales from pulp operations that were part of the Neenah Paper spin-off. Sales volumes were up 1 percent during the quarter, with K-C Professional and Health Care posting gains of 3 percent and 2 percent, respectively. Currency effects also positively affected sales comparisons by approximately 1 percent. Net selling prices and product mix improved slightly, driven mainly by gains in K-C Professional's North American operations. Health Care prices were down about 1 percent globally.
Other third quarter operating results
Operating profit before unusual items in the third quarter of 2005 was $633 million, approximately 3 percent greater than the prior year, as continued top-line growth and cost savings helped offset approximately $90 million of cost inflation. Having generated gross cost savings of more than $45 million for the quarter and nearly $150 million through nine months, the company is on track to meet its full year objective for savings of at least $200 million. Cost inflation in the third quarter included $50 million for raw materials other than fiber, driven by increases in the cost of polymer resins, superabsorbents and other oil-based materials, $20 million in energy costs and $25 million in distribution costs, offset by slightly lower fiber costs. The year-over-year change in operating profit was also affected by $20 million of costs in the third quarter of 2004 to improve the efficiency of the company's diaper operations.
The company's effective tax rate in the third quarter of 2005 was 17.4 percent. Excluding unusual items, however, the effective tax rate for the quarter was 19.7 percent versus 23.9 percent in the prior year. The lower rate was due primarily to income tax benefits from the company's ownership interest in synthetic fuel partnership activities which, net of related nonoperating expenses, improved third quarter net income by approximately $13 million in 2005 compared with about $7 million in 2004. The effective tax rate in the third quarter before the effects of the synthetic fuel activities in both years and excluding the unusual items in 2005 was 27.7 percent compared with 28.5 percent in 2004.
Kimberly-Clark's share of net income of equity companies in the third quarter rose 5 percent to $33 million, driven by higher net income at Kimberly-Clark de Mexico, S.A. de C.V. KCM achieved double digit growth in sales and operating profit for the third straight quarter, paced by continued strong results in its consumer business. Its bottom-line results, however, were negatively impacted by currency transaction losses that reduced Kimberly- Clark's share of KCM's net income by approximately $5 million.
Cash flow and balance sheet
Cash provided by operations was $553 million in the third quarter compared with $734 million in 2004. The decrease was driven primarily by the timing of income tax payments. Capital spending in the third quarter was $190 million, up from $104 million in the prior year. Capital spending of $452 million for the first nine months of 2005 was in line with the company's spending target of $650-$700 million for the full year. At September 30, 2005, total debt and preferred securities was $4.3 billion, up slightly from $4.2 billion at the end of 2004.
During the third quarter, the company repurchased 8.0 million shares of its common stock at a cost of $499 million, bringing the year-to-date total to 15.7 million shares at a cost of $1.0 billion. The company reaffirmed its target to buy back $1.5 billion worth of its stock in 2005. Share repurchases have resulted in a 4 percent reduction in the average number of outstanding shares versus the year-ago quarter, with a corresponding benefit on earnings per share comparisons.
Outlook
Commenting on the outlook, Falk said, "We are confident that we will continue to execute our Global Business Plan well and generate solid top-line growth and additional cost savings over the balance of the year. Net sales in the fourth quarter should benefit from a full quarter's worth of the price increases implemented during the third quarter for our diaper, pant and incontinence products in the U.S. as well as recent price increases for K-C Professional products in North America. At the same time, we expect business conditions will remain very challenging, as costs for resin and other oil-based materials, energy and distribution have risen following Hurricanes Katrina and Rita. In total, we expect these key cost components to increase more than $30 million versus the third quarter, a drag equivalent to approximately 5 cents per share.
"All in all, we expect earnings before unusual items in the fourth quarter will be in a range of 94 to 96 cents per share, or similar to the third quarter, despite the recent, unanticipated escalation in our costs.
"As for the year, we remain comfortable that earnings per share before unusual items in 2005 will be within the range of our previous guidance of $3.77 to $3.83, although most likely toward the lower end of that range. With this level of earnings, we will deliver improvement of 6 to 8 percent versus earnings from continuing operations of $3.55 per share in 2004, consistent with our long-term objective for growth in the mid to high single-digits."
Competitive improvement initiatives
The competitive improvement initiatives announced in July 2005 are focused on building and growing those businesses that will yield improved margins and higher returns on invested capital. During the third quarter, the company made substantial progress implementing the new strategic cost reductions that will support these targeted growth investments. As previously announced, the company plans to reduce costs by streamlining manufacturing and administrative operations primarily in North America and Europe, creating an even more competitive platform for growth and margin improvement.
Pretax charges totaling $168 million (approximately $126 million after tax) related to these cost reduction initiatives were recorded in the third quarter. Most of the pretax charges were noncash, primarily for asset impairments or write-offs and accelerated depreciation. Major components of the charges were for consolidation of the company's North Atlantic feminine and adult care operations, consolidation of health care operations within North America and cost structure improvements in Europe.
To date, employees have been notified about workforce reductions and other actions at 10 of the 15 facilities slated for sale, closure or streamlining as part of the initial phase of the cost reduction initiatives. As previously announced, the initial phase should be complete by mid-2007, with pretax charges amounting to $500 to $550 million ($355 to $390 million after tax). Including subsequent phases through the end of 2008, the company expects to incur cumulative pretax charges of $900 million to $1.1 billion ($625 to $775 million after tax) that will yield annual pretax savings of $300 to $350 million by 2009. Anticipated savings of $5 to $10 million in 2005 should increase substantially in 2006 as the initiatives are executed and more headcount reductions begin to take place.
The company will continue to report on the progress of these strategic cost reduction activities on a quarterly basis and provide information about future phases as specific projects are approved and implemented.
Year to date results
For the first nine months of 2005, sales of $11.9 billion were up about 6 percent from $11.2 billion in the prior year, driven by a 4 percent increase in sales volumes and favorable currency effects of 3 percent, offset by the divestiture of pulp operations. Operating profit before unusual items rose more than 2 percent to $1,906 million in 2005 versus $1,865 million in 2004. For the year to date, diluted earnings per share before unusual items were $2.83 in 2005 versus diluted earnings per share from continuing operations of $2.63 in 2004, an improvement of nearly 8 percent. Including unusual items in 2005 and net income from discontinued operations in 2004, diluted net income through the first nine months was $2.49 per share in 2005 and $2.70 per share in 2004.
Non-GAAP financial measures
Certain financial measures contained in this press release exclude prior year net sales of the pulp operations which were spun-off in the fourth quarter of 2004, charges related to competitive improvement initiatives for streamlining the company's operations, incremental tax expenses arising out of repatriation of earnings of foreign subsidiaries under the American Jobs Creation Act and the effects of the company's synthetic fuel activities. Financial measures which exclude those items have not been determined in accordance with generally accepted accounting principles and are therefore "non-GAAP" financial measures.
Kimberly-Clark management believes that investors' understanding of the company's performance is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of the company's ongoing results of operations. The attached Non-GAAP Reconciliation Schedules provide reconciliations of these non-GAAP financial measures to the most closely analogous measure determined in accordance with generally accepted accounting principles.
Paperloop.com
24.10.2005
New corporate identity for Warren Board
Warren Board has re-launched its corporate identity with a new contemporary image. The change is designed to reflect the company's growing development of new business sectors and its modern approach to business.
Warren's name has, for many years, been synonymous with high quality service within its core business sector - the distribution of cartonboard to carton manufacturers. In recent years, it has taken this philosophy into new business sectors, namely the graphical print and rigid box markets.
Kieran Ferguson, commercial director, explained: 'We felt the need to rebrand Warren to reflect our growing product portfolio and expanding customer base. We have been developing as a company for many years and felt that our old logo of a box did not reflect the true nature of our business. Our strength has been in supplying the general cartonboard market but we are increasingly expanding our client base across the POS, graphical and rigid box sectors.'
Paperandprint.com
24.10.2005
Weyerhaeuser announces mill closures in southwest Washington
In connection with its ongoing strategic review, Weyerhaeuser Company today announced that it is closing two operations in southwestern Washington: a specialty pulp mill in Cosmopolis and a large-log sawmill in Aberdeen. These closures are the result of poor markets, aging machinery, high operating costs and small-scale operations.
"Today's announcement is part of the ongoing effort to strengthen Weyerhaeuser's overall portfolio to enhance shareholder value," said Steven R. Rogel, chairman, president and chief executive officer. "As part of an ongoing strategic review of our businesses and against the backdrop of industry-wide market challenges, we have determined that these mills are no longer economically sustainable.
"The closure of these mills is a difficult decision, but the reality of difficult markets is compounded by the age, high cost and small scale of the mills," Rogel said. "Weyerhaeuser's employees have worked diligently to make the mills competitive, and today's announcement is a reflection of the challenging markets we face. We recognize the impact of these closures on the people of Grays Harbor County, and we will do our best to work with state and local leaders to assist in the transition."
Earlier this month Weyerhaeuser announced the indefinite closure of the Prince Albert pulp and paper facility in Saskatchewan due to fundamental challenges in the uncoated free-sheet paper and pulp markets, including excess capacity, declining demand, mounting inventories and weak prices.
The closures in Washington will affect approximately 342 hourly and salaried positions. Weyerhaeuser is supporting affected employees with transition benefits, severance pay, employment counseling and potential job opportunities at other Weyerhaeuser mills. The company also will be discussing with state and local officials ways of mitigating the effect of these closures on the community.
Affected mills
- The 140,000 tons-per-year, 50-year-old Cosmopolis mill makes specialty pulp for plastics, photographic papers and cigarette filters, employing approximately 245 hourly and salaried people. As Weyerhaeuser's only specialty pulp operation, it is not competitive with other companies in this market and is not a strategic fit for the company. The capital needs of the mill combined with increasing operating costs -- particularly for energy and chemicals - erode the mill's competitive position. The date operations will cease will be determined in 2006, based on customer contracts.
- The 81-year-old Aberdeen large log lumber mill produces approximately 125 million board feet per year of softwood lumber used in residential and commercial construction and appearance-grade millwork. The mill employs approximately 97 hourly and salaried people. The shutdown was made necessary by its age, declining demand and prices and competitive position.
- Weyerhaeuser will continue to operate the 185-million-board-feet-per-year Aberdeen small log mill with 140 employees.
"We recognize the impact of today's announcement for our employees, contractors, local communities and customers and we are committed to working constructively in the months ahead to prepare for the transition," Rogel concluded. "In a world of weakening markets and tightening economics we reached the point where we have no alternative."
Paperloop.com
20.10.2005
Romec Print Solutions accredited to the ISO14001
Registration to the ISO14001 environmental standard has been gained by Romec's print and mail operation in Swindon.
'Working in print we are acutely aware that there are lots of ways in which we can help create a better environment,' said Print Solutions manager, Peter Mendham. 'Everything from sourcing paper, inks and packaging from responsible suppliers, controlling the use of materials during the print process and disposal and recycling of waste, have all been put under the spotlight.'
As well as ensuring paper and board used is from sustainable sources, Print Solutions also ensures the chemicals and inks used - including silver and aluminium - are collected and disposed of responsibly.
Mr Mendham added, 'We find that we are able to advise customers on how to create high quality printed material such as business stationery, brochures, leaflets and direct mail material, while still being environmentally responsible.'
Romec already holds the ISO 9001 quality standard, OHSAS 18001 health and safety standard and Investors in People.
Paperandprint.com
20.10.2005
Sonoco Posts Increase in Third Quarter Income
Sonoco, the global packaging company, today reported earnings of $.46 per diluted share for the third quarter of 2005, compared with $.41 per diluted share for the same period in 2004, it was announced by Harris E. DeLoach, Jr., chairman, president and chief executive officer.
Earnings for the third quarter of 2005 were negatively impacted by after- tax restructuring costs of $2.5 million ($.02 per diluted share) related to previously announced restructuring actions. In the third quarter of 2004, earnings were negatively impacted by after-tax charges of $1.9 million ($.02 per diluted share) related to restructuring actions and a $3.6 million after- tax charge ($.04 per diluted share) related to the cost of replacing certain executive life insurance benefits. Excluding the impact of restructuring and executive life insurance charges, base earnings totaled $.48 per share for the third quarter of 2005, compared with $.47 per share for the third quarter of 2004.
Net sales for the third quarter of 2005 were $881 million, compared with $811 million for the same period in 2004. The increase in net sales for the third quarter of 2005 was due primarily to higher average prices for rigid paper and plastic containers and easy-open closures; increased volume in packaging services, flexible packaging and wire and cable reels; and the formation of the joint venture between the European engineered carriers and coreboard operations of Sonoco and Ahlstrom Corporation, which was completed during the fourth quarter of 2004.
Net income for the third quarter of 2005 was $45.9 million, compared with $40.9 million for the third quarter of 2004. Excluding the impact of the previously discussed restructuring and executive life insurance charges, base earnings totaled $48.4 million for the third quarter of 2005, compared with $46.4 million for the same period in 2004. "The increase in year-over-year base earnings was primarily due to increased volumes in the Consumer Packaging and Packaging Services segments, and productivity initiatives throughout the Company," said DeLoach. "Despite year- over-year raw material cost increases, the Company has maintained a positive price/cost relationship in the third quarter and on a year-to-date basis," added DeLoach.
DeLoach stated that the third quarter 2005 earnings were negatively impacted by weaker demand for engineered carriers and paper in most geographies; higher energy, freight and labor costs; continued difficult business conditions in Europe; and continued, though improved, startup costs associated with Sonoco's new rigid plastic container plant in Wisconsin.
DeLoach said that Companywide sales volumes during the third quarter of 2005 were up approximately five percent, including those from Sonoco-Alcore, the European joint venture with Ahlstrom. Excluding volumes from Sonoco- Alcore, third quarter Companywide sales volumes were up approximately two percent, compared with the same period in 2004.
Cash generated from operations for the third quarter of 2005 was $92 million, compared with $83 million for the same period in 2004. Cash generated from operations was used to fund capital expenditures of approximately $32.8 million, to pay dividends of approximately $22.8 million and to reduce debt by approximately $27.6 million.
For the first nine months of 2005, net sales were $2.6 billion, compared with $2.3 billion for the same period in 2004. Net income for the first nine months of 2005 was $123.1 million, compared with $116.2 million in the same period last year. Net income for the first nine months of 2005 was negatively impacted by after-tax restructuring costs of $11.2 million ($.11 per diluted share) related to previously announced restructuring actions. Earnings for the first nine months of 2004 were positively impacted by $9.3 million ($.09 per diluted share) due to the recognition of certain tax benefits. Net income for the first nine months of 2004 was negatively impacted by after-tax restructuring charges of approximately $6.5 million ($.06 per diluted share), after-tax charges of approximately $3.6 million ($.03 per diluted share) related to the establishment of reserves for claims against the Company as a result of a legal judgment, and by a $3.6 million after-tax charge ($.04 per diluted share) related to the cost of replacing certain executive life insurance policies.
Excluding the impact of previously discussed favorable tax adjustments, restructuring and other charges, base earnings totaled $134.3 million for the first nine months of 2005, compared with $120.6 million for the first nine months of 2004. The increase in base earnings for the first nine months of 2005 was due to the acquisition of CorrFlex Graphics, LLC, as well as reduced costs resulting from ongoing productivity and purchasing initiatives. These increases were partially offset by costs associated with integration of the Sonoco-Alcore joint venture, weaker demand for engineered carriers and paper in most geographies, the national paper strike in Finland, which concluded at the beginning of the third quarter, continued difficult business conditions in Europe, higher energy, freight and labor costs, and startup costs associated with the Company's new rigid plastic container plant in Wisconsin.
Cash generated from operations for the first nine months of 2005 was $161 million, compared with $137 million for the same period in 2004. Cash generated from operations in the first nine months was used to fund capital expenditures of $92.2 million and to pay dividends of $67.3 million. Cash generated from operations for the first nine months of 2005 included the impact of $11.5 million for funding benefit plans, compared with approximately $16 million in the same period of 2004. The Company will evaluate its pension funding strategy during the fourth quarter to determine if additional contributions will be made during the year.
"Overall, our results for the third quarter were in line with expectations as we continued to see improvement in our businesses serving consumer product customers," said DeLoach. "We are closely watching general economic trends for any possible negative impact on our markets resulting from higher energy and raw material costs, higher interest rates and reported declines in consumer confidence. Meanwhile, we are aggressively passing through higher energy and raw material costs when possible, and continuing to focus on other margin-enhancing initiatives such as operational efficiency, cost reduction, new product development and on providing consumer product companies with the industry's largest offering of packaging products and services needed to meet our customers' packaging supply chain needs," DeLoach added.
Assuming no significant change in Companywide volumes or in current raw material prices, Sonoco expects fourth quarter 2005 earnings to be in the range of $.44 to $.48 per diluted share, excluding restructuring charges and taxes associated with any repatriated foreign earnings related to the American Jobs Creation Act, which cannot be estimated at this time," DeLoach added.
SEGMENT REVIEW
Consumer Packaging
The Consumer Packaging segment includes the following products: round and shaped rigid packaging, both composite and plastic; printed flexible packaging; and metal and plastic ends and closures.
Third quarter 2005 sales for the Consumer Packaging segment were $315 million, compared with $291 million for the same period in 2004. Operating profit for this segment was $24.9 million in the third quarter of 2005, compared with $21 million in the third quarter of 2004.
Sales in the Consumer Packaging segment were up year-over-year in the third quarter of 2005, reflecting increased prices in flexible packaging, composite cans, closures and rigid plastic containers, increased volumes in flexible packaging and the favorable impact of foreign exchange translation. Operating profit for the third quarter 2005 increased due to higher volumes and productivity improvements, partially offset by a slightly negative price/cost relationship and rising costs for raw materials, energy, freight and labor.
Engineered Carriers and Paper
The Engineered Carriers and Paper segment includes the following products: high-performance paper and composite engineered carriers; fiber-based construction tubes and forms, paperboard and recovered paper.
Third quarter 2005 sales for the Engineered Carriers and Paper segment were $368 million, compared with $343 million for the same period in 2004. Operating profit for the Engineered Carriers and Paper segment for the third quarter of 2005 was $32 million, compared with $31.2 million in the third quarter of 2004.
Third quarter 2005 sales in this segment were up primarily due to the formation of the Sonoco-Alcore joint venture, higher selling prices of domestic engineered carriers and paperboard and the favorable impact of foreign exchange translation, partially offset by lower volumes in North America. Operating profit in the segment increased slightly year-over-year as productivity improvements and higher selling prices of domestic engineered carriers and paperboard were largely offset by lower volume and higher raw material, energy and freight costs.
Packaging Services
The Packaging Services segment includes the following services: packaging fulfillment, product handling, brand management and supply chain management. This segment also includes the production of folding cartons.
Third quarter 2005 sales for the Packaging Services segment were $115 million, compared with $98 million for the third quarter of 2004. Operating profit for this segment for the third quarter of 2005 was $11.9 million, compared with $8.8 million for the same period in 2004.
Sales for this segment were up year-over-year primarily due to increased volume. Operating profit for this segment increased due to increased volume and productivity improvements.
All Other Sonoco
All Other Sonoco includes the following products: wooden, metal and composite reels for wire and cable packaging; molded plastics; custom-designed protective packaging; adhesives; machinery manufacturing; and specialty packaging.
Third quarter 2005 sales for All Other Sonoco were $83 million, compared with $79 million for the third quarter of 2004. Operating profit for All Other Sonoco was $9.3 million for the third quarter of 2005, compared with $7.5 million for the third quarter of 2004.
Third quarter 2005 net sales in All Other Sonoco increased over the same period in 2004 primarily due to increased volume in wire and cable reels and higher prices in molded plastics, which resulted from the pass through of increased resin costs. Operating profit for All Other Sonoco in the third quarter of 2005 increased primarily because of the increased volume in wire and cable reels along with productivity improvements, partially offset by increased costs for energy and freight.
Paperage.com
18.10.2005
UPM to Restructure Worldwide IT Operations
UPM said it will restructure its information technology (IT) operations in an effort to create a more cost-efficient, integrated global IT organization. About 140 workers will be affected by the process.
The restructuring will be discussed in consultation with the employee representatives in several countries, UPM said.
Talks will focus on reorganization of IT work, a significant decrease in the number of IT locations, as well as a partial outsourcing and nearshoring of global IT services to eastern Central Europe.
UPM said negotiations are expected to last until the beginning of December.
Currently, UPM's IT segment employes 690 persons.
The restructuring will begin immediately following negotiations and will be completed by mid 2006, UPM said.
Upm-kymmene.com
18.10.2005
Grace Paper brings new tissue PM on stream in Indonesia
PT Graha Cemerlang Paper Utama (Grace Paper), a subsidiary of Gramedia Group, has brought its first brand-new tissue machine on stream at its greenfield mill located in Cikampek, 80 km from Jakarta, Indonesia. Trial runs began at the end of last month and as a result the first paper on reel appeared on 29th September at 21.00. The company expects to begin commercial production shortly.
So far Grace Paper is a business development plan / program of PT. Graha Kerindo Utama (GKU) that has been active in the converting area. After gaining the position of one of the key supplier of tissue goods in Indonesia through selling Tessa brand, GKU decided to implement its development plan and go one step further through installing its own tissue technological line.
PMPoland S.A., a member of PMP Group, supplied a 3.65 m wide crescent former Intelli-Tissue machine with a maximum capacity of 150 tonnes/day (51,750 tonnes/year) of the maximum operating speed 1,800 mpm and the design speed of 2,000 mpm. PMP's scope of supply covered the delivery of the entire machine from Approach Flow System to Shaft Puller including auxiliary systems like dust & mist elimination, lubrication, steam & condensate and vacuum system. The start-up was executed with PMPleadership.
The PM produces tissue in a basis weight range of 13-35 gsm for conversion into toilet rolls, facial tissue and towels from 100% virgin pulp both hardwood and softwood.
Paperloop.com
18.10.2005
Stora Enso shares converted and North American stock options exercised
During the 1 - 30 September 2005 conversion period there was one conversion and a total of 10 000 A shares were converted into R shares. The shares were recorded in the Finnish trade register today, 17 October 2005, and trading in the new R shares will start on 18 October 2005.
Stora Enso North America Option Programme
Following the acquisition of Consolidated Papers, Inc. the Board of Directors decided to convert the Consolidated Papers' share option plans into Stora Enso share option plans. During September 2005 a total of 869 R shares were subscribed against North American stock options. These R shares were previously held by the Company.
Storaenso.com
17.10.2005
Fraser Papers Sells Some Paperboard Assets to Cascades
Fraser Papers Inc. said that it has sold certain assets of its paperboard operations located in Edmundston, New Brunswick to Cascades Inc. for $5 million. Cascades will be relocating the purchased assets to its facilities. Fraser Papers will record a charge of approximately $9 million relating to this sale.
"The sale of our paperboard operations is consistent with our strategy to reposition Fraser Papers as a pulp integrated, technical specialty and high value printing & writing paper business," commented Dominic Gammiero, president and CEO of Fraser Papers.
Eric Laflamme, president and COO of Cascades Boxboard Group, North America, said, "We are pleased to announce this transaction and we will spare no efforts to satisfy the needs of our new customers and in particular, allow them to benefit from our expertise in the manufacturing of boxboard in North America and in Europe. Furthermore, we intend to service Fraser's customers from our existing facilities, which will enable us to improve our capacity utilization rate at our mills in East Angus and Toronto."
With an annual production capacity of about 52,000 metric tonnes, the assets of Fraser's paperboard operations generate annual sales of approximately $40 million.
Fraser Papers is an integrated specialty paper company which produces a broad range of technical, and printing & writing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec.
Cascades produces and converts packaging products, tissue paper and fine papers, composed mainly of recycled fibers.
Paperage.com
17.10.2005
Georgia-Pacific's Pete Correll named 2005 CEO of the Year
Paperloop today announced that Georgia-Pacific's chairman and chief executive officer, A.D. "Pete" Correll has been selected as the 2005 CEO of the Year. Correll will be presented with the award on October 17 via satellite at the 20th RISI North American Forest Products Conference in San Diego, Calif.
Correll was nominated CEO of the Year in an annual Paperloop survey of investment analysts and portfolio managers that includes such criteria as leadership, vision and strategic accomplishment.
Will Mies, Paperloop Editorial Director-News Services, said the award recognizes Correll's role in the major transformation of Georgia-Pacific over the past five years.
"Under his watch, Georgia-Pacific changed from a cyclical forest products producer into a more consumer-oriented company, which obtains half of its profits from tissue manufacturing, with an increasing focus on selling products -- whether tissue, building materials, or office papers -- through mass retail channels," said Mies.
The key to the transformation was Georgia-Pacific's acquisition of Fort James Corp. in 2000, which significantly expanded the company's existing tissue business and vaulted it into the ranks of the world's top tissue producers. This was followed by the spin-off of the company's 4.7 million acres in timberlands, a half dozen major pulp and paper mills, and two major distribution businesses. No wonder Correll likes to say the company is "no longer your father's Georgia-Pacific."
Analysts praised Correll's vision in moving the company away from cyclical and declining commodity pulp and paper markets into the more stable and higher margin tissue business as well as his determination in reducing debt despite difficult market conditions in the years following the Fort James acquisition.
Correll has worked 40 years in the paper and forest products industry. He has been chairman and chief executive officer of Georgia-Pacific since 1993. He joined the company in 1988 as a senior vice president for pulp and paper and was elected president and chief operating officer in 1991. Prior to joining Georgia-Pacific, Correll had held management positions at Mead, Westvaco and Weyerhaeuser.
A native of Brunswick, Ga., Correll holds a bachelor degree in business administration from The University of Georgia and master's degrees in pulp and paper technology, and chemical engineering from University of Maine.
Correll serves as an outside director for such corporations as Norfolk Southern Corp. and SunTrust Banks Inc. and serves on board of various nonprofit organizations including The Nature Conservancy, Institute of Paper Science and Technology, the Business Council, Grocery Manufacturers of America, The Carter Center, and The University of Georgia Foundation.
Past recipients of the Paperloop CEO of the Year award include Paul Stecko of Packaging Corp. of America (2004), Raymond Royer of Domtar Inc. (2003), Steve Rogel of Weyerhaeuser Co. (2002 and 2001), John Dillon of International Paper Co. (2000), and Michael Smurfit of Jefferson Smurfit Group (1999).
Paperloop.com
17.10.2005
Myllykoski has confirmed that the site of its ?272m (EUR400m) paper mill project will be in the Czech Republic
The mill, which will be built in Opatovice, and scheduled for start-up in 2007. Its main product will be uncoated supercalendered paper for magazines. It will also produce improved newsprint and have a total capacity of 380,000 tonnes per year.
The Finnish paper producer announced in August that it was looking to build a 400,000-tonnes-per-year mill, with Opatovice a likely site.
Myllykoski president and chief executive Sverre Norrgard said the decision to build the mill in the Czech Republic had been made in response to customers' requests.
The paper mill is the first large-scale forest industry project to be undertaken by a Finnish company in Eastern Europe.
The firm has indicated that once full production at the site is reached, it may look to rationalise its current operations.
Printweek.com
17.10.2005
Ahlstrom announces price increases for flexible packaging and label papers
Ahlstrom, a leading global supplier of release base papers and specialty papers for flexible packaging, wet-glue and self-adhesive labeling, today announced that it will increase prices of its paper grades as a consequence of continuing cost escalation.
Oil prices have been rising rapidly for over two years, especially during last summer. This has adversely impacted many cost components in the highly energy intensive manufacturing of specialty papers. Additionally, prices of transportation and oil-based chemicals and raw materials have also risen.
These effects have significantly exceeded what can be considered normal inflation, for which the company strives to compensate with continuous efficiency improvements and cost-cutting programs. Several cellulose suppliers are also raising their prices. It is therefore inevitable that Ahlstrom should revise its price lists. Increases between 5% and 12% will be applied not later than December 1st, depending on different products and regions, and unless differently provided by existing contracts.
Ahlstrom sales personnel are contacting their customers in order to discuss the details with them over the coming weeks.
Paperloop.com
13.10.2005
Voith Paper Automation Inks Deal with Rockwell
Voith Paper Automation [yesterday] announced a global OEM alliance with Rockwell Automation Inc. This alliance includes coordination, support and joint development activities focused on applying the Rockwell Automation Integrated Architecture to Voith's paper machines and process solutions.
"Working with Rockwell Automation helps us deliver a complete array of technology and services to the paper industry," said John Adeimy, Voith Paper Automation vice president of sales and marketing, Americas. "Through alliances like this, we can develop advanced and integrated paper processes that will help papermakers improve their machine efficiency and increase production."
Using sophisticated control, networking, visualization and software development technologies, the Rockwell Automation Integrated Architecture addresses a full range of automation application needs, including sequential, motion, process, drive and safetycontrol, as well as information integration. Voith Paper Automation is leveraging this architecture to help papermakers increase their productivity by streamlining and integrating communications throughout the enterprise, allowing customers to reduce machine engineering, integration and maintenance requirements. Expected to reduce end users' total cost of ownership for process solutions of Voith machines, the Integrated Architecture also increases Voith Paper Automation's flexibility in offering the right system to any customer and market worldwide.
"A majority of Voith Paper customers in the Americas already use Allen-Bradley products from Rockwell Automation," said John Lewis, Rockwell Automation director of strategic alliances. "Familiarity of products makes mills easier to maintain. Also, the open architecture ensures a high degree of connectivity within the plant."
The OEM alliance will cover all pulp and paper applications including machine (MCS) and drive controls, standard (DCS) and advanced process controls (APC), quality controls (QCS) and paper production information services (IS). Application development is expected to be completed by the first quarter of 2006. Other milestones of the alliance are expected to include:
· First Voith machines using the Rockwell Automation Integrated Architecture to be available in the second quarter of 2006
· Implementation of an entire paper line with the new architecture to be completed by the third quarter of 2006
· Fully integrated Voith paper machine and process line solutions to be using the new architecture by the end of 2006.
Paperage.com
13.10.2005
New 'Look & Experience' brochure for Zanders
M-real has launched 'Look & Experience', a new sample brochure for Zanders' premium paper ranges. The brochure gives users the opportunity to compare different finishing techniques of the paper ranges. The same illustrations and finishing techniques are
applied to different ranges and grammages of paper, so that you can find the ideal paper for every project.
'Look & Experience' features Chromolux, ikono, medley, Spectral, T 2000, Zeta, Efalin and Elfantenhaut. Finishing techniques, including silk screen printing, hot foil blocking and blind embossing are applied to each page.
Paperandprint.com
13.10.2005
Neenah Paper announces a quarterly cash dividend of $0.10 per share
Neenah Paper, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share on its common stock. The dividend is payable on December 2, 2005 to stockholders of record as of close of business on November 4, 2005.
About Neenah Paper, Inc.
Neenah Paper manufactures and distributes a wide range of premium and specialty paper grades, with well-known brands such as CLASSIC(R), ENVIRONMENT(R), KIMDURA(R) and MUNISING LP(R). The company also produces and sells bleached pulp, primarily for use in the manufacture of tissue and writing papers. Neenah Paper is based in Alpharetta, Georgia, and has manufacturing operations in Wisconsin, Michigan and in the Canadian provinces of Ontario and Nova Scotia.
Lesprom.com
13.10.2005
UPM leads the way at IfraExpo 2005
UPM, one of the world's leading producers of printing papers, exhibits its full spectrum of products for printed communications at IfraExpo 2005 in Leipzig from 17-20 October. In addition to newsprint, the comprehensive range of MFS, SC, MFC, LWC and woodfree papers tailored to suit all the different end-uses and printing methods will be on show. UPM Paper Services will also be presented - highlighting service development into new areas in the near future. The present offer covers technical and environmental service, logistics, e-business, information and stock management.
The promotion of reading to young people is in UPM's interests as well as for the whole printing industry. This motivated the company to produce two real newspapers through a project involving young people from Germany and Finland. Two editions of 'News Planet' will be printed digitally at IfraExpo on October 18 and 19 by Oce, using UPM Digi Brite 52 g/m? paper from UPM's Schongau paper mill.
UPM's theme this year is 'Meet the people', which highlights UPM's aim to get closer to customers through listening and understanding customers and their end uses better than ever before. "We at UPM see the challenges of our customers as our own and make great efforts in developing tailor-made and individually matched solutions. The company's know-how and use of advanced technology, combined with the desire to find the best solution for each customer, will naturally create new and superior ideas," says Hartmut Wurster, President of the company's Newsprint Division.
UPM signed a partnership agreement with the International Newspaper Marketing Association (INMA) in February 2005. "The partnership with INMA underlines our effort to reach a new level of communication with newspaper publishers and this is part of our customer integration process," says Hartmut Wurster. The two-year partnership supports various activities between UPM and INMA, mainly in Europe. The two organisations will also co-operate in specialized publications and projects that will make significant contributions to the newspaper industry.
This Spring, UPM also renewed its commitment to the Shaping the Future of the Newspaper project run by the World Association of Newspapers (WAN). This is a significant four-year investment in the SFN project, which seeks to identify, analyse and publicise all important strategic and operational breakthroughs and opportunities that can benefit newspapers all over the world. "Understanding international markets, exploring new technologies and investing in enhancing readership among the world's youth are key to the successful future of global newspaper markets for everyone," concludes Wurster.
UPM is an active member of PrintCity. "Through this membership, we gain access to a great network of professionals working in the industry. As a result, we understand the challenges of our customers better," says Erik Ohls, Director, UPM Paper Services. PrintCity has conducted a major industry-wide investigation about the impact of large paper roll diameters with technical expertise drawn from PrintCity member companies. The study covers the whole value chain to include papermaking, logistics, press room and the press itself. "This initiative will assist web offset printers across the globe in their plans to invest in new equipment or modernise existing presses. Through the strength of our partnerships and co-operation, we can offer advice and potential solutions across the whole chain", says Erik Ohls. The report 'Watch the next step to larger roll diameters' is available from UPM's stand.
Upm-kymmene.com
12.10.2005
International Paper announced a regular quarterly dividend of $0.25 per share
International Paper (NYSE:IP) announced a regular quarterly dividend of $0.25 per share for the period of Oct. 1, 2005, to Dec. 31, 2005, inclusive. The dividend on the common stock of the company is payable on Dec. 15, 2005, to holders of record at the close of business on Nov. 18, 2005.
The company also declared a regular quarterly dividend of $1 per share for the period of Oct. 1, 2005, to Dec. 31, 2005, inclusive, on the preferred stock of the company, payable on Dec. 15, 2005, to holders of record at the close of business on Nov. 18, 2005.
Headquartered in the United States, International Paper is the world's largest paper and forest products company. Businesses include paper, packaging, and forest products. As one of the largest private forest landowners in the world, the company manages its forests under the principles of the Sustainable Forestry Initiative(R) (SFI) program, a system that ensures the continual planting, growing and harvesting of trees while protecting wildlife, plants, soil, air and water quality.
Lesprom.com
11.10.2005
Ust-Ilimsky timber company increased total pulp production by 6.3% to 517.7 thousand tonnes in January-September 2005
Ust-Ilimsky timber company, Irkutsk region, Russia, belonging to Ilim Pulp Corporation has increased total pulp production by 6.3% to 517.9 thousand tonnes in January-Septenber 2005 compared to the same period of the last year, company reported.
Market pulp production output rose by 6.6% to 475.9 thousand tonnes.
In September 2005 market pulp production output increased by 7.8% to 55.3 thousand tonnes, total pulp production was up by 7.7% to 60.1 thousand tonnes compared to the September 2004.
Lesprom.com
11.10.2005
Weyerhaeuser named to two new Dow Jones Sustainability Indexes
Weyerhaeuser Company (NYSE: WY) announced it has been named to two new Dow Jones Sustainability Indexes that track companies in terms of their economic, environmental and social performance.
The only forest products company listed in the category of Basic Resources: Forestry & Paper, Weyerhaeuser is one of 111 firms - 93 in the United States and 18 in Canada - listed in the Dow Jones Sustainability North American Index. The DJSI United States is the U.S. subset of the DJSI North America.
"Sustainability is a core value at Weyerhaeuser," said Steven R. Rogel, chairman, president, and chief executive officer. "In all we do, from renewing our forests, to reducing the environmental footprint of our wood and paper manufacturing operations, to recovering paper for recycling, Weyerhaeuser strives to act sustainably."
Launched in 1999, the Dow Jones Sustainability indexes track the market performance of sustainability-driven companies worldwide. Selection of index components is based on an assessment of general and industry-specific criteria, and the analysis is externally audited. Weyerhaeuser was invited to take part in the DJSI review process by submitting an application and providing publicly available information.
"We're gratified to be a member of the Dow Jones Sustainability Index," Rogel said. "Third-party validation of our sustainability practices is important confirmation for our customers, employees, communities and shareholders that we are doing the right thing."
Weyerhaeuser Company (NYSE: WY), one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.
The Dow Jones Sustainability Indexes track the financial performance of the leading sustainability-driven companies worldwide. Based on the cooperation of Dow Jones Indexes, STOXX Limited and SAM Group, the indexes provide asset managers with reliable and objective benchmarks to manage sustainability portfolios. The indexes cover companies in terms of economic, environmental and social criteria.
Lesprom.com
11.10.2005
UPM's non-recurring items in July - September 2005
UPM will book non-recurring income of approximately EUR 8 million net in the third quarter of 2005. The amount includes a capital gain of approximately EUR 25 million on the sale of Loparex Group. In addition, UPM will book approximately EUR 17 million pension costs relating to the new labour agreement at Miramichi paper mill in Canada.
Upm-kymmene.com
10.10.2005
Gould Paper Corporation appoints Arthur Smith as sales representative, Metro Division
Harry E. Gould, Jr., Chairman and President of Gould Paper Corporation, New York City, announced the appointment of Arthur Smith as Sales Representative for Gould's Metro Division. In his new position, Arthur will be reporting to Vincent Eugenio, Vice President Sales, Gould Metro Division. The Gould Metro Division has extensive operations throughout New York and New Jersey. Gould has sales offices in New York City and sales/warehouse operations in Edison and Cherry Hill, New Jersey as well as a converting operation, Siclare Converting, which recently relocated to expanded facilities in East Brunswick, New Jersey.
Dean Marabeti, President Metro Division, stated," Arthur joins Gould from Milton Paper Co., Inc. and has 30 years' experience in the merchant sales business. We are delighted to have him in this position and believe this appointment to be further acknowledgement of Gould's increasing commitment to the New York metro marketplace."
Vinnie Eugenio, Vice President Sales, Metro Division, further stated, "We are pleased that Arthur has joined the Gould family. He has extensive paper industry experience and many long-standing relationships in the New York market, which will be invaluable to us as we continue to grow our business. Arthur will be working out of our New York sales office. He and his family reside in Bergen County, New Jersey."
Founded in 1924 and headquartered in New York City, Gould Paper Corporation has revenues in excess of $1 billion and is a member of the "quartet" that comprises North America's largest distributors of printing and business papers. Gould has operations throughout the United States and internationally in the United Kingdom; Paris, France; Helsinki, Finland; Dubai; Singapore; Auckland, New Zealand; Melbourne, Australia; Hong Kong and Shanghai, China.
Lesprom.ru
10.10.2005
Wermland Paper announces price hike on sack and kraft paper
Wermland Paper has decided to increase prices on sack and kraft paper by Euro 50/ton from November 1, 2005 in Europe and overseas.
The main reason for the price increase is due to rising costs for energy, raw material and transportation.
Paperloop.com
10.10.2005
Two more death knells for broadsheet format
Two national newspapers have today revealed further plans to drop the broadsheet size, driving a further nail into the coffin of the format.
The Independent on Sunday announced this morning that it will become the UK's first quality compact Sunday newspaper from Sunday 16 October.
The switch comes more than two years after its weekly sister title The Independent started the quality newspapers trend for all things compact with the launch of its first tabloid edition in September 2003.
Independent News & Media chairman Ivan Fallon said: "In many ways, our latest move is a natural development for the company. We had always intended to turn the Sunday into a compact newspaper, and conditions are now favourable to do so."
The launch next week also means that the paper will steal a march in the Sunday market on arch rival The Observer, which will move to the Berliner format early next year.
Meanwhile, The Daily Telegraph unveiled plans to downsize its sports section to the tabloid format and publish a separate business section.
From Monday the paper will publish a 24-page compact sports section, while editor Martin Newland has said that he also wants to sex-up the newly demerged business pages.
"I want business to read like the sports section, to report deals like you would report a Liverpool versus Chelsea match," he said. "It's a business section with a bit of GQ."
The launch is a u-turn for the Barclay brothers-owned paper, which has repeatedly stated its plans to make a virtue out of maintaining the broadsheet format as its unique selling point.
The 2m poinds investment in the relaunch is also the first response from the title to the recent upheavals in the quality newspaper market.
Printweek.com
10.10.2005
Carter Holt Harvey Limited today announced further changes to its Board of Directors
Following the change of control from International Paper to Rank Group Investments Limited and the consequent restructuring of the Board, the Company has received the resignations of Mr Kerry McDonald and Dr Helen Nugent to take effect at the close of the offer period.
"Change is inevitable following the transition to a new majority shareholder", Carter Holt Harvey chairman John Maasland said. "The Company has been fortunate to have directors of the calibre of Kerry McDonald and Helen Nugent on its Board, and has benefited from their significant depth of experience and expertise. We wish them every success in their future endeavours."
Lesprom.ru
7.10.2005
Stora Enso's FSC group certification pilot project finalised
Stora Enso's pilot project to test FSC group certification (Forest Stewardship Council) in Finland was finalised in September. A group of three forest owners received FSC forest management certificates for a 10 000 hectare area located in southern Finland. The pilot project was unique in Finland: it was the first FSC group certification, the first extensive FSC certification and the first certification applying the national draft FSC standard.
Currently, over 95% of Finnish forests are certified according to PEFC (Programme for the Endorsement of Forest Certification Schemes), which is also supported by Stora Enso. Stora Enso sees that the current PEFC certification is well suited to Finnish family forestry. The Group also supports FSC certification in Finland according to its forest certification principles. Stora Enso has joined in the Finnish FSC Association to create better balance between ecological, social and economic aspects of FSC certification and to promote dialogue between forest certification systems.
tora Enso initiated the pilot project to obtain information on the applicability, costs and development needs of FSC group certification and the Finnish draft FSC standard. One of the targets was also to promote dialogue between forest certification systems through double certification. In the long run, Stora Enso hopes to have one national standard in Finland, which both FSC and PEFC could endorse.
The forest owners involved in the pilot project are: private forest owner Elsa Fromond, Ferraria Oy Ab (a Fiskars Oyj Abp subsidiary) and the City of Lahti. Stora Enso Wood Supply administrates the group. In order to create more options in forest certification, Stora Enso will continue to improve the FSC know-how of its employees and forest owners through training. Stora Enso is also ready to invite other Finnish forest owners to join the FSC group certification, when expedient.
"The first comparisons showed that implementing FSC certification does not usually require changes in forest management principles compared to current forest certification practises. However, the requirement to set aside 5% of a forest regardless of conservation values is a clear difference to PEFC certification", describes Kare Pihlstrom, Forest Manager of Fiskars.
In the pilot project, the costs of FSC certification were high compared to the current forest certification system. In addition to improving cost effectiveness, development needs were also identified in improving applicability at a practical level, as well as in balancing ecological, social and economic aspects. At the moment, the Finnish FSC draft standard emphasizes ecological and social criteria.
"WWF is delighted that the FSC alternative has arrived in Finnish forestry", says Harri Karjalainen from WWF Finland. "FSC improves the biodiversity in commercial forests by securing even better than before the valuable habitats and by softening the logging practises", Karjalainen continues. "Stora Enso's membership in the Finnish FSC Association and the pilot project are very welcomed steps towards co-operation that is beneficial for all parties", comments Professor Tari Haahtela, Chairman of the Finnish FSC Association.
Storaenso.com
7.10.2005
North American Newsprint Production Down in August
The Pulp and Paper Products Council said that North American newsprint mills ran at 94% of their capacity in August, as production slowed down 2.8% compared to the same month last year. So far in 2005, mills have cut their newsprint production by 4.4%.
In August, total shipments slid 1.6% due to a 6.4% drop in sales to the U.S., whereas deliveries to Canada and overseas increased 2.5% and 18%, respectively. In the first eight months of the year, total shipments by North American producers decreased 4%, PPPC said.
By the end of August, North American mill stocks increased by 8,000 tonnes, to stand at 354,000 tonnes.
Paperage.com
7.10.2005
New recycled Era Silk
A new silk coated paper developed by M-real - Era Silk - provides the whiteness and performance of a non-recycled paper with an environmental footprint.
Era Silk uses only waste collected from UK sources. It is now available nationwide from Antalis and James McNaughton.
David Adams, Paper Product Manager for WRAP (the Waste & Resources Action Programme), welcomes the new product: 'We are excited to see another recycled content coated paper launched in the UK. WRAP's advice to business and the wider public sector is to specify coated papers with a minimum of 50% recycled content and Era Silk joins an impressive group of recycled content papers that meet this requirement whilst matching virgin paper quality and performance. Demand for recycled content papers is growing rapidly and their purchase provides significant environmental benefits particularly by reducing the landfilling of office paper waste.'
The paper is manufactured from 50% waste pulp, with the balance of pulps from certified forests. It is available in popular sheet sizes in a range of weights from 100 to 350 g/m2, and in reels in weights up to 190 g/m2. It is suitable for single colour or multi-colour print, and heatset web offset.
Keith Livermore, business development manager for M-real UK, commented: 'By recycling genuine waste paper collected mostly from a 100 mile radius of the mill, we minimise road transport distances. By removing and recycling 180 000 tonnes of waste paper a year for use in Era Silk and our other recycled papers, we are helping reduce the pressure on UK landfill sites.
'The market size for recycled coated papers is set to expand rapidly. Industry experts expect the market to grow to 10% of the total coated sheet market in four to five years. The use of recycled coated paper has been hampered predominantly by two factors - lack of quality genuine recycled fibre, and the subsequent products produced. With Era Silk, we believe M-real has addressed both these issues.'
Paperandprint.com
6.10.2005
Metso Paper agrees with Myllykoski to supply paper making line in the Czech Republic
Metso Paper has agreed with Myllykoski Corporation to supply a large paper making line, to be located in the Czech Republic. As the investment is still subject to e.g. local authority approvals, a dissolution clause is included. Project engineering has been started on separate terms, in anticipation of the final confirmation. Myllykoski is scheduling the line to come on stream in early 2007. The delivery will be valued at well over EUR 200 million.
The 380,000 tpy production line will produce a full range of uncoated publication papers. Metso's scope of supply contains woodhandling and PGW plants; stock preparation; a 2000 m/min, 11.3-m-wide paper machine with on-machine calendering; winders; and roll finishing systems. Metso Automation will supply a large automation system package.
Myllykoski Corporation is a family-owned international paper industry group operating mainly in Europe and North America. The Group's products - wood-containing and recycled fiber-based uncoated and coated publication papers, as well as newsprint - are sold to publishers, printers and catalogers worldwide. Myllykoski operates nine paper mills with a total annual capacity of 2.8 million tons. The Group companies employ approximately 3,800 persons.
Metsopaper.com
6.10.2005
Sonoco raising prices for flexible packaging
Sonoco will raise prices for its flexible packaging products, effective November 1, 2005, it was announced today by Charles L. Sullivan, executive vice president. The amount of increase will vary by product but is expected to average in the range of seven to nine percent.
"Every effort has been made to offset the need for price increases with productivity improvements and other cost reduction initiatives. However, with higher costs for raw materials and other operating costs such as energy and freight, exacerbated by recent events on the Gulf Coast, we cannot afford to absorb these increases without recovery," said Sullivan.
He noted that the Company will continue to closely monitor such costs for any future increases and, if necessary, will implement additional price changes.
"We know that the current operating environment is unusual. Sonoco will continue to work closely with customers to identify and initiate opportunities to improve productivity and to effect other cost-reduction actions," concluded Sullivan.
Paperloop.com
6.10.2005
Stora Enso appoints John Gillen as Region Manager North America
John Gillen, 46, has been appointed Region Manager North America and President of Stora Enso North America Corporation, effective from 1 January 2006. He has also been invited to become a member of the Stora Enso Management Group. Lars Bengtsson, currently Senior Executive Vice President of Stora Enso's North American operations and member of the Stora Enso Executive Management Group will retire on 31 December 2005.
John Gillen is currently Senior Vice President, Coated Mechanical Papers at Stora Enso's North American operations, a position he has held since 2002. In his role as President of Stora Enso North America Corporation and Region Manager, he will report to CEO Jukka Harmala. In addition to his new duties, he will continue to oversee coated mechanical operations at the Biron, Niagara and Whiting mills in Wisconsin. In that capacity he will report to Bernd Rettig, Senior Executive Vice President, Stora Enso Publication Paper.
The North American business areas became part of the Stora Enso global product divisions on 1 September 2005.
Storaenso.com
6.10.2005
More countries PEFC certified
The Programme for the Endorsement of Forest Certification Schemes (PEFC) Council has announced the international endorsement of the forest certification systems from Luxembourg and the Slovak Republic. Timber and wood based products from PEFC certified forests in the two countries will now be accepted in the PEFC system and may bear the PEFC logo, as evidence of being sourced from sustainable and well managed forests. So far, 20 national certification systems on four continents have successfully gained PEFC endorsement.
'Over half of all certified forests globally are now sustainably managed through PEFC endorsed certification systems, delivering hundreds of millions of tonnes of certified timber to trading and processing companies that are committed to the responsible sourcing of raw materials,' said Mr Ben Gunneberg, secretary general of the PEFC Council.
Paperandprint.com
6.10.2005
Antalis sponsors paper for Tate Britain youth event
The Wembley branch of Antalis donated a large quantity of paper to a new and inspirational event recently held at Tate Britain's Main Gallery in London.
The event saw the collaboration of 1000 young people from Inner City London and superstar DJ's such as Asher D, DJ Wonder and DJ Cameo from BBC 1Xtra working alongside each other to produce a 100 page magazine exploring their own personal stories and political views.
The magazine is to become one of four that will be produced, with parallel events being run in the Bronx in Harlem, New York City, Compton in Los Angeles and finally in Hunt's Point in San Francisco. Once the four magazines are complete, they will be published as a book so the world can see what young people have to say on important issues.
Antalis supplied the London Event with 2000 sheets of Chromika Tints, a high quality tinted paper.
Paperandprint.com
6.10.2005
UPM's chain of custody now certified to both FSC and PEFC
UPM's Pietarsaari pulp mill and Rauma paper mill in Finland as well as the German Nordland Papier paper mill have now received FSC chain of custody certificates. The mills also have PEFC chain of custody. UPM's Caledonian Paper mill in Scotland has had both FSC and PEFC chain of custody certificates since autumn 2004.
"We want to offer our customers the chance to use the chain of custody certificate of their choice. Therefore we have applied for both certificates as part of our generic chain of custody model. Our aim is to increase the amount of certified wood at all of our mills and ensure credible control of the origin of wood through the whole chain from the forest to the customer," says Jaakko Sarantola, Vice President, Forestry and Wood Sourcing.
The majority of wood used at UPM's mills is purchased from private forest owners. The forest owner decides on the certification of his forests and which certification scheme is used. The dual certification of UPM's generic chain of custody makes it possible to report the amount of both FSC and PEFC certified fibre in the products to customers, where this fibre is available. For the time being the global availability of certified wood is limited, and varies from region to region.
UPM started building its generic chain of custody model in February 2005. In the future, the model will be rolled out and applied to all of UPM's wood sourcing and mill activities worldwide.
Upm-kymmene.com
5.10.2005
International Paper completes acquisition of a majority share of Compagnie Marocaine des Cartons et des Papiers
International Paper has completed the acquisition of a majority share of Compagnie Marocaine des Cartons et des Papiers (CMCP), a leading Moroccan corrugated packaging company. On Sept. 16, the company announced it had signed an agreement to acquire approximately 65% of CMCP, for approximately $80 million cash plus assumed debt of approximately $40 million.
The acquisition of the CMCP shares supports International Paper's strategy to grow its corrugated box business globally, and will further strengthen the company's position in the fruit and vegetable segment. International Paper and CMCP remain dedicated to providing top quality products, excellent services and superior value-added solutions to their customers.
International Paper will immediately begin the process of integrating CMCP's four box plants and one recycled containerboard mill into its European Container Division, which comprises 25 box plants and two corrugated containerboard mills in France, Ireland, Italy, Spain, the United Kingdom, and through a joint venture in Turkey.
Headquartered in the United States, International Paper is the world's largest paper and forest products company. Businesses include paper, packaging, and forest products. As one of the largest private forest landowners in the world, the company manages its forests under the principles of the Sustainable Forestry Initiative(R) (SFI) program, a system that ensures the continual planting, growing and harvesting of trees while protecting wildlife, plants, soil, air and water quality.
Internationalpaper.com
5.10.2005
Weyerhaeuser to close Prince Albert Pulp & Paper mill in Saskatchewan
As a result of poor market conditions, the Prince Albert pulp and paper mill in Saskatchewan faces indefinite closure, Weyerhaeuser Company (NYSE:WY) announced.
"Today's announcement is an important step in strengthening Weyerhaeuser's overall portfolio to enhance shareholder value," said Steven R. Rogel, chairman, president and chief executive officer. "As part of a strategic review of our businesses operating in structurally challenged segments of the industry, we have determined the Prince Albert mill is no longer a strategic fit for Weyerhaeuser. We will continue to seek additional opportunities to unlock the value of our portfolio."
The uncoated free-sheet paper and pulp markets face fundamental challenges, including excess capacity, declining demand, mounting inventories and weak prices. Weyerhaeuser made its determination regarding the Saskatchewan operation as a result of these market conditions.
The company intends to explore all options with respect to the future of the mill, including identification of potential purchasers. Pursuant to Saskatchewan legislation, the company has given 90 days' notice to begin workforce reduction.
Prince Albert operations will commence a phased, indefinite closure starting Jan. 3, 2006. Paper operations will cease production on or about Jan. 2. The pulp mill will continue operating until spring to minimize risk of damage caused by cold winter weather.
"We fully understand the major impact of these changes for our employees, contractors, the community and customers, and we will work constructively in the weeks and months ahead to prepare for the transition," said Craig Neeser, senior vice president, Canada. "Unfortunately, market conditions have reached a point where we have no alternative."
The Prince Albert facility has an annual capacity of 280,000 tons of uncoated paper and 130,000 tons of market pulp. It employs 690 hourly and salaried employees.
Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.
Lesprom.ru
4.10.2005
Shareholders approve NorskeCanada name change to Catalyst Paper
NorskeCanada changed its name to Catalyst Paper Corporation following a shareholder meeting today. Shareholders voted 99% in favour of the change.
The company will begin using the new name immediately and on October 6, it will trade under a new ticker symbol - CTL - on the Toronto Stock Exchange.
"We are an independent company and it's time we had a name that is uniquely our own," said president and chief executive officer Russell J. Horner. "Catalyst is a good description of the way we operate and is a recognized trademark as the product brand we used to successfully market our directory papers around the world."
The company gave notice of the proposal to change its name change in late July following a decision in June to dissolve a joint venture North American specialty marketing arrangement between NorskeCanada and Norske Skog ASA effective October 1.
Catalyst Paper will leverage regional energy, fibre and freight advantages as it continues to focus on production of paper grades favoured by publishing, printing, packaging and retail advertising markets. Specialty paper grades accounted for 50 per cent of the company's production capacity and 55 per cent of the company's total revenues in 2004.
Catalyst is a leading producer of mechanical printing papers in North America. The company also produces market kraft pulp. With five mills employing 3,800 people at sites within 160 kilometres of each other on the south coast of British Columbia, Catalyst has a combined annual capacity of 2.5 million tonnes of product. As part of the name change, the company's website can now be found at www.catalystpaper.com. The company is headquartered in Vancouver, B.C.
Paperloop.com
4.10.2005
Rock-Tenn to increase bleached paperboard price
Rock-Tenn Company's Paperboard Division announced today a $40 per ton price increase on bleached paperboard, effective October 24, 2005.
Rock-Tenn's Paperboard Division has distributed notices of the price increase to its customers.
Paperloop.com
