December 22, 2005
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FROM THE WIRE
EDITOR'S NOTE:
Over the Wire will not be published next week. Happy Holidays!
AMERICAN CAPITAL STRATEGIES LTD., Bethesda, Maryland, USA stated it has invested US$ 284 million in the buyout of Ranpak Corp. from First Atlantic Capital Ltd. Ranpak is a leading manufacturer and marketer of paper-based "in-the-box" protective packaging systems and materials in North America, Europe, and the Pacific Rim. American Capital's investment takes the form of senior and junior subordinated debt and redeemable preferred and common equity. A syndicate led by GE Antares Capital, a unit of GE Commercial Finance, is investing in a senior term B loan and also providing a revolving credit facility. Rankpak's management team is also investing in the equity. Post close, American Capital owns approximately 85% of Ranpak, on a fully diluted basis.
"Ranpak is a very successful company, with a steady stream of recurring revenues and attractive cash flows, making it a great addition to our growing portfolio of approximately 150 middle market companies," said American Capital Chief Operating Officer Ira Wagner. "We are backing a strong management team, which has done an excellent job driving results."
American Capital has invested approximately US$ 3.7 billion in the last twelve months, approximately US$ 3.2 billion year-to-date and US$ 1 billion quarter-to-date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital.
BONG LJUNGDAHL AB, Kristianstad, Skane, Sweden has signed an agreement to acquire RCT Kuvert, Hilden, Nordrhein-Westfalen, Germany. RCT Kuvert is one of Europe's ten largest envelope makers, with annual sales of around EUR 27 million (US$ 32 million) and annual volume of approximately three billion envelopes. Envelope production is based in Hilden, where Bong has its largest production facility. RCT's envelopes are sold by its own German sales organization and through a wholly owned subsidiary in the Netherlands that is responsible for all exports, which go primarily to the Benelux countries and the UK. The transaction is expected to be complete in January 2006. The final price of the shares will be determined by RCT's financial position on the transaction date, and is preliminarily estimated at around EUR 2.5 million (US$ 3 million). Financing of the acquisition has been arranged and will consist entirely of new bank loans.
CENTRAL LEWMAR, LLC, Newark, New Jersey, USA, an affiliate of 5Star Acquisition Corp. and Chrysalis Capital Partners, LP, has acquired Central Lewmar LP and Strategic Paper Group, LLC. The new company, with more than US$ 800 million in combined revenue, is among the largest privately owned distributors of commercial writing and printing papers in the United States, according to Central Lewmar LLC. Leslie F. Stern, 5Star's principal, will be president and CEO of the new company. Several members of existing management will continue to be part of the combined company's senior management team. These include Central Lewmar executives David Berkowitz, Donald Berkowitz, Jeffrey Ostroff, and Ken Englander, while Donald Heller and Al Gralnick will continue to lead the Strategic Paper Group team.
Central Lewmar LP, which traces its roots back to 1899, is a fine paper merchant and distributor of packaging materials and equipment, with over 600 employees, 13 operating divisions, nine retail paper outlets, and seven warehouses servicing the seven-state Mid-Atlantic region. Its independent affiliate Strategic Paper Group LLC has seven offices in the United States, providing a creative, focused and cost-effective resource for the catalog, book, brochure, direct mail, documentation, insert, and magazine publishing segments, and their paper sourcing needs.
The new company has announced its intention to move ahead with a US$ 2 million investment into its Newark, New Jersey automated distribution center. New marketing and informational materials will be developed and distributed immediately.
THE FORMER DURANGO PAPER MILL, St. Mary's Georgia, USA was sold, with final approval coming from United State Bankruptcy Judge Lamar W. Davis, Jr. The mill, held by the Bankruptcy Estate of Durango Georgia Paper Co., was sold for US$ 36,450,000 to the LandMar Group, LLC, Jacksonville, Florida. The Judge also approved separate sales of the paper mill equipment, and other properties. The auction conducted by the trustee produced a total of US$ 42,086,000 for the creditors' estate. The ruling paves the way for the transformation of the abandoned paper mill and adjacent land into a multi-use residential community.
INSTITUTE OF PAPER TECHNOLOGY AT GEORGIA TECH, Atlanta, Georgia, USA said that its researcher, Scott Sinquefield, received notification today that his proposal to the U.S. Department of Energy will be funded. The research project will receive approximately $100,000 to examine new techniques for eliminating the energy intensive lime kiln from the pulping process. Jim Frederick, Director of IPST said, "Normally a grant of this size would not be big news, however, in this case it is! The Department of Energy originally announced that it would fund ten University research projects. Then after some budget cuts it became clear that only two of the projects would be funded. We are very proud that Scott Sinquefield's project was deemed to be of significant value to the industry."
The total awarded was $2.2 million in research and development grants for projects to save energy in the pulp and paper industry. The research will focus on removing water from pulp in the paper making process and determining the technical and commercial feasibility of next generation manufacturing concepts.
Approximately $2 million in research funds has been awarded to Voith Paper of Appleton, Wis., to design and build a new press technology to reduce the need for energy during paper drying by 30 percent. Voith Paper will contribute a 50 percent cost share to this research. North Carolina State University (NCSU) in Raleigh, N.C. will receive approximately $100,000 which will define a next generation pulping process that has the potential of achieving higher yields and reduced energy consumption. NCSU will contribute a 44 percent cost share to this research project. IPST at Georgia Tech in Atlanta, Ga., will receive approximately $100,000 to examine new techniques for eliminating the energy intensive lime kiln from the pulping process. Georgia Tech will contribute a 20 percent cost share to this research project.
KOCH INDUSTRIES INC., Wichita, Kansas said it has completed its acquisition of the stock of Atlanta-based forest products company Georgia-Pacific Corp., the Green Bay area's largest employer. Wichita, Kan.-based Koch acquired 237,793,992 shares of Georgia-Pacific stock at $48 a share, or about $11.4 billion, before its tender offer expired at 5 p.m. on Dec. 19. That represents more than 89 percent of Georgia-Pacific's outstanding shares. Koch said it will purchase newly issued shares to ensure its ownership reaches 90 percent. The company launched its planned $13.2 billion acquisition of Georgia-Pacific Nov. 14.
IN OTHER KOCH NEWS, the company announced today that Joseph W. Moeller will become president and chief executive officer of Georgia-Pacific Corp. after completion of Koch Forest Products, Inc.'s $21 billion merger with and into Georgia-Pacific. The parties currently expect to complete the merger on Friday. Joining Moeller will be Bill Caffey, who will become Georgia-Pacific's executive vice president, operations excellence and compliance.
THE LANXESS GROUP, Leverkusen, Germany will sell its Paper Business Unit to the Finnish chemicals group Kemira Oyj, Helsinki. The transaction requires the approval of the antitrust authorities, which means that a closing of the agreement is not to be expected until next year. In the 2004 fiscal year, the Paper Business Unit achieved sales of about EUR 240 million. The purchase price will be EUR 88 million. The Paper Business Unit employs 375 people at its production sites in Leverkusen and Bushy Park, South Carolina, USA. The business unit produces dyes, fluorescent whitening agents, sizing agents, strength agents and retention aids.
LEE & MAN PAPER CO., Kwun Tong, Kowloon, Hong Kong ordered a kraftliner board machine for its mill in Changshu, China from Metso Paper, Helsinki, Finland. The machine will have an annual capacity of 400,000 metric tons and is scheduled to start up in December 2006. It will have a wire width of 7250 mm and a design speed of 1150 meters/min. Total value of the single-supplier delivery order is approximately EUR 40 million (US$ 48 million). The order includes Metso Automation's metsoDNA machine control systems.
POTLATCH CORP., Spokane, Washington, USA announced that its Board of Directors has approved the final steps necessary for the company to begin operating as a real estate investment trust (REIT) on January 1, 2006. No other Board or regulatory actions are necessary for the conversion of Potlatch Corporation to a REIT.
"We plan to set a record date for a stockholder meeting for a vote that will have the effect of increasing the number of authorized shares," noted Chairman and Chief Executive Officer L. Pendleton Siegel. He added that increasing the authorized shares to 100 million from the current 40 million will provide the company with shares that can be used for acquiring additional timberland assets, future stock splits, or equity offerings to raise capital for acquisitions or other corporate purposes and, if necessary, for a portion of the company's taxable distribution of accumulated earnings and profits (E&P). The special E&P distribution is expected to occur in the first quarter of 2006, as originally announced.
Stockholders will have the opportunity to elect to receive this special E&P distribution of between $440 and $480 million in cash, stock or a combination of both, with the aggregate cash payment by the company to be capped at 20 percent. Siegel noted that more information and instructions on how stockholders may elect to receive their distribution will be available following the announcement of the record date for the special taxable E&P distribution. The company expects to pay its first regular quarterly distribution as a REIT at the end of February 2006. The distribution amount expected to be paid in the first quarter, $0.65 per share based on the current number of shares outstanding (or $2.60 per share annually), will be adjusted downward after the first quarter to reflect the additional shares that will be issued in conjunction with the stock portion of the E&P distribution.
SCA, Stockholm, Sweden, said that in order to further strengthen its position in the Iberian peninsula, it will invest approximately SEK 490 million in a new tissue machine and expanded converting capacity in Valls, Spain. The new machine is scheduled to go into operation in April 2007 and has an annual production of approximately 60,000 metric tons. SCA will by that continue to develop Valls as one of its important centers for tissue.
The Iberian tissue market is among the fastest growing in Europe with annual growth of approximately 4%. SCA is the largest player in consumer tissue with approximately one-third of the market. SCA's strategy is to provide the fast-growing national retailers with products for their own brands. In the Spanish market, for example, several of the national retailers are showing very strong growth with 10 - 20%. A first machine in Valls has been in production since summer 2005. The plant has quickly reached the required capacity and efficiency utilization. The new investment will allow SCA to take advantage of the opportunities for continued positive growth in the Iberian peninsula by ensuring capacity and thus continuing to be a long-term player. The investment will also lower production cost significantly.
IN OTHER SCA NEWS, Michael Bertorp, Executive Vice President with responsibility for amongst other things Business Group SCA Americas, will leave his position. "We have had too different views in decisive questions which has led to an agreement that Mr. Bertorp is to leave his position as Executive Vice President in SCA. We are in agreement that Mr. Bertorp will stay at SCA's disposal for special assignment," says Jan Åström, CEO and President in SCA. Thomas Wulkan, at present responsible for M/A and business development issues in SCA, will take over responsibility for Business Group SCA Americas.
SCHWEITZER-MAUDUIT INTERNATIONAL, INC., Alpharetta, Georgia, USA announced that it has reached agreement with Philip Morris USA Inc. to continue their strategic supply agreement for fine papers. The term of the agreement is from January 1, 2006 to December 31, 2008. The strategic supply agreement continues Schweitzer-Mauduit's ongoing supply of tobacco-related papers to Philip Morris USA Inc. The two companies have been operating under a strategic supply agreement since January 1, 1993.
STORA ENSO, Helsinki, Finland announced it plans to upgrade and modernize Board Machine Number 2 at its Fors Mill in Sweden to improve quality and efficiency, and increase production flexibility. One of the boilers will also be modified to enhance the mill's energy supply by replacing oil with biofuel. The annual folding boxboard production capacity of the machine will increase slightly, by 13,000 metric tons. Capital expenditure on the project, which is scheduled to start in 2006 and be completed in 2007, will amount to EUR 35 million (US$ 42 million).
IN OTHER STORA ENSO NEWS: Stora Enso's Fors Mill was presented with the Swedish Quality Award by King Carl XVI Gustaf of Sweden. Stora Enso's Fors Mill received the award in recognition of its sustainable and determined work over a long period. The award confirms that Stora Enso has successfully built up a corporate culture of continuous development and its operations are world class.
STORA ENSO NORTH AMERICA (SENA) will lay off 37 employees in April when it shuts down a paper machine at its mill in Stevens Point, Wisconsin, USA according to a report by the Milwaukee Business Journal. SENA said it plans to shut down the machine on March 31, 2006. The shutdown will be permanent, it said in a notice filed with the Wisconsin Department of Workforce Development. The company said that the layoff will affect a total of 34 union employees and three non-union employees, according to the report. SENA expects the layoffs to be permanent, but some bumping rights exist for certain union employees.
WESTERN FOREST PRODUCTS, Duncan, British Columbia, Canada announced the closure of its pulp mill located in Squamish, British Columbia, Canada effective March 9, 2006. The mill, which has an annual capacity of 275,000 metric tons of NBSK pulp, will continue production until the week of January 23, 2006 after which time shutdown activities would commence. The closure affects 323 employees in various locations. Preliminary estimates indicate the closure of the Squamish pulp mill will result in a pre-tax restructuring charge in the fourth quarter of approximately C$ 80 million (US$ 69 million), including a non-cash charge of approximately C$ 46 million (US$ 40 million) relating to the write-down of fixed assets and supplies inventories.
WEYERHAEUSER CO., Federal Way, Washington, USA has announced a number of sales and closures in its containerboard, packaging, and paper bag businesses. The company said the closures will result in a fourth-quarter pre-tax charge of US$ 115 million to US$ 135 million.
The Weyerhaeuser announcement confirms the permanent closure of the 350,000-ton/yr containerboard machine in Plymouth, North Carolina. On November 29, 2005 Weyerhaeuser announced plans for an indefinite curtailment of production at the facility after concluding that the containerboard machine no longer is economically sustainable. Approximately 200 employees are affected by the decision.
The following packaging facilities will be closed during the next few months:
Weyerhaeuser also announced the permanent closures of two paper machines, which, it says, will result in a pre-tax charge of US$ 380 million to US$ 385 million in the fourth quarter. The closures include:
AMERICAN CAPITAL STRATEGIES LTD., Bethesda, Maryland, USA stated it has invested US$ 284 million in the buyout of Ranpak Corp. from First Atlantic Capital Ltd. Ranpak is a leading manufacturer and marketer of paper-based "in-the-box" protective packaging systems and materials in North America, Europe, and the Pacific Rim. American Capital's investment takes the form of senior and junior subordinated debt and redeemable preferred and common equity. A syndicate led by GE Antares Capital, a unit of GE Commercial Finance, is investing in a senior term B loan and also providing a revolving credit facility. Rankpak's management team is also investing in the equity. Post close, American Capital owns approximately 85% of Ranpak, on a fully diluted basis.
"Ranpak is a very successful company, with a steady stream of recurring revenues and attractive cash flows, making it a great addition to our growing portfolio of approximately 150 middle market companies," said American Capital Chief Operating Officer Ira Wagner. "We are backing a strong management team, which has done an excellent job driving results."
American Capital has invested approximately US$ 3.7 billion in the last twelve months, approximately US$ 3.2 billion year-to-date and US$ 1 billion quarter-to-date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital.
BONG LJUNGDAHL AB, Kristianstad, Skane, Sweden has signed an agreement to acquire RCT Kuvert, Hilden, Nordrhein-Westfalen, Germany. RCT Kuvert is one of Europe's ten largest envelope makers, with annual sales of around EUR 27 million (US$ 32 million) and annual volume of approximately three billion envelopes. Envelope production is based in Hilden, where Bong has its largest production facility. RCT's envelopes are sold by its own German sales organization and through a wholly owned subsidiary in the Netherlands that is responsible for all exports, which go primarily to the Benelux countries and the UK. The transaction is expected to be complete in January 2006. The final price of the shares will be determined by RCT's financial position on the transaction date, and is preliminarily estimated at around EUR 2.5 million (US$ 3 million). Financing of the acquisition has been arranged and will consist entirely of new bank loans.
CENTRAL LEWMAR, LLC, Newark, New Jersey, USA, an affiliate of 5Star Acquisition Corp. and Chrysalis Capital Partners, LP, has acquired Central Lewmar LP and Strategic Paper Group, LLC. The new company, with more than US$ 800 million in combined revenue, is among the largest privately owned distributors of commercial writing and printing papers in the United States, according to Central Lewmar LLC. Leslie F. Stern, 5Star's principal, will be president and CEO of the new company. Several members of existing management will continue to be part of the combined company's senior management team. These include Central Lewmar executives David Berkowitz, Donald Berkowitz, Jeffrey Ostroff, and Ken Englander, while Donald Heller and Al Gralnick will continue to lead the Strategic Paper Group team.
Central Lewmar LP, which traces its roots back to 1899, is a fine paper merchant and distributor of packaging materials and equipment, with over 600 employees, 13 operating divisions, nine retail paper outlets, and seven warehouses servicing the seven-state Mid-Atlantic region. Its independent affiliate Strategic Paper Group LLC has seven offices in the United States, providing a creative, focused and cost-effective resource for the catalog, book, brochure, direct mail, documentation, insert, and magazine publishing segments, and their paper sourcing needs.
The new company has announced its intention to move ahead with a US$ 2 million investment into its Newark, New Jersey automated distribution center. New marketing and informational materials will be developed and distributed immediately.
THE FORMER DURANGO PAPER MILL, St. Mary's Georgia, USA was sold, with final approval coming from United State Bankruptcy Judge Lamar W. Davis, Jr. The mill, held by the Bankruptcy Estate of Durango Georgia Paper Co., was sold for US$ 36,450,000 to the LandMar Group, LLC, Jacksonville, Florida. The Judge also approved separate sales of the paper mill equipment, and other properties. The auction conducted by the trustee produced a total of US$ 42,086,000 for the creditors' estate. The ruling paves the way for the transformation of the abandoned paper mill and adjacent land into a multi-use residential community.
INSTITUTE OF PAPER TECHNOLOGY AT GEORGIA TECH, Atlanta, Georgia, USA said that its researcher, Scott Sinquefield, received notification today that his proposal to the U.S. Department of Energy will be funded. The research project will receive approximately $100,000 to examine new techniques for eliminating the energy intensive lime kiln from the pulping process. Jim Frederick, Director of IPST said, "Normally a grant of this size would not be big news, however, in this case it is! The Department of Energy originally announced that it would fund ten University research projects. Then after some budget cuts it became clear that only two of the projects would be funded. We are very proud that Scott Sinquefield's project was deemed to be of significant value to the industry."
The total awarded was $2.2 million in research and development grants for projects to save energy in the pulp and paper industry. The research will focus on removing water from pulp in the paper making process and determining the technical and commercial feasibility of next generation manufacturing concepts.
Approximately $2 million in research funds has been awarded to Voith Paper of Appleton, Wis., to design and build a new press technology to reduce the need for energy during paper drying by 30 percent. Voith Paper will contribute a 50 percent cost share to this research. North Carolina State University (NCSU) in Raleigh, N.C. will receive approximately $100,000 which will define a next generation pulping process that has the potential of achieving higher yields and reduced energy consumption. NCSU will contribute a 44 percent cost share to this research project. IPST at Georgia Tech in Atlanta, Ga., will receive approximately $100,000 to examine new techniques for eliminating the energy intensive lime kiln from the pulping process. Georgia Tech will contribute a 20 percent cost share to this research project.
KOCH INDUSTRIES INC., Wichita, Kansas said it has completed its acquisition of the stock of Atlanta-based forest products company Georgia-Pacific Corp., the Green Bay area's largest employer. Wichita, Kan.-based Koch acquired 237,793,992 shares of Georgia-Pacific stock at $48 a share, or about $11.4 billion, before its tender offer expired at 5 p.m. on Dec. 19. That represents more than 89 percent of Georgia-Pacific's outstanding shares. Koch said it will purchase newly issued shares to ensure its ownership reaches 90 percent. The company launched its planned $13.2 billion acquisition of Georgia-Pacific Nov. 14.
IN OTHER KOCH NEWS, the company announced today that Joseph W. Moeller will become president and chief executive officer of Georgia-Pacific Corp. after completion of Koch Forest Products, Inc.'s $21 billion merger with and into Georgia-Pacific. The parties currently expect to complete the merger on Friday. Joining Moeller will be Bill Caffey, who will become Georgia-Pacific's executive vice president, operations excellence and compliance.
THE LANXESS GROUP, Leverkusen, Germany will sell its Paper Business Unit to the Finnish chemicals group Kemira Oyj, Helsinki. The transaction requires the approval of the antitrust authorities, which means that a closing of the agreement is not to be expected until next year. In the 2004 fiscal year, the Paper Business Unit achieved sales of about EUR 240 million. The purchase price will be EUR 88 million. The Paper Business Unit employs 375 people at its production sites in Leverkusen and Bushy Park, South Carolina, USA. The business unit produces dyes, fluorescent whitening agents, sizing agents, strength agents and retention aids.
LEE & MAN PAPER CO., Kwun Tong, Kowloon, Hong Kong ordered a kraftliner board machine for its mill in Changshu, China from Metso Paper, Helsinki, Finland. The machine will have an annual capacity of 400,000 metric tons and is scheduled to start up in December 2006. It will have a wire width of 7250 mm and a design speed of 1150 meters/min. Total value of the single-supplier delivery order is approximately EUR 40 million (US$ 48 million). The order includes Metso Automation's metsoDNA machine control systems.
POTLATCH CORP., Spokane, Washington, USA announced that its Board of Directors has approved the final steps necessary for the company to begin operating as a real estate investment trust (REIT) on January 1, 2006. No other Board or regulatory actions are necessary for the conversion of Potlatch Corporation to a REIT.
"We plan to set a record date for a stockholder meeting for a vote that will have the effect of increasing the number of authorized shares," noted Chairman and Chief Executive Officer L. Pendleton Siegel. He added that increasing the authorized shares to 100 million from the current 40 million will provide the company with shares that can be used for acquiring additional timberland assets, future stock splits, or equity offerings to raise capital for acquisitions or other corporate purposes and, if necessary, for a portion of the company's taxable distribution of accumulated earnings and profits (E&P). The special E&P distribution is expected to occur in the first quarter of 2006, as originally announced.
Stockholders will have the opportunity to elect to receive this special E&P distribution of between $440 and $480 million in cash, stock or a combination of both, with the aggregate cash payment by the company to be capped at 20 percent. Siegel noted that more information and instructions on how stockholders may elect to receive their distribution will be available following the announcement of the record date for the special taxable E&P distribution. The company expects to pay its first regular quarterly distribution as a REIT at the end of February 2006. The distribution amount expected to be paid in the first quarter, $0.65 per share based on the current number of shares outstanding (or $2.60 per share annually), will be adjusted downward after the first quarter to reflect the additional shares that will be issued in conjunction with the stock portion of the E&P distribution.
SCA, Stockholm, Sweden, said that in order to further strengthen its position in the Iberian peninsula, it will invest approximately SEK 490 million in a new tissue machine and expanded converting capacity in Valls, Spain. The new machine is scheduled to go into operation in April 2007 and has an annual production of approximately 60,000 metric tons. SCA will by that continue to develop Valls as one of its important centers for tissue.
The Iberian tissue market is among the fastest growing in Europe with annual growth of approximately 4%. SCA is the largest player in consumer tissue with approximately one-third of the market. SCA's strategy is to provide the fast-growing national retailers with products for their own brands. In the Spanish market, for example, several of the national retailers are showing very strong growth with 10 - 20%. A first machine in Valls has been in production since summer 2005. The plant has quickly reached the required capacity and efficiency utilization. The new investment will allow SCA to take advantage of the opportunities for continued positive growth in the Iberian peninsula by ensuring capacity and thus continuing to be a long-term player. The investment will also lower production cost significantly.
IN OTHER SCA NEWS, Michael Bertorp, Executive Vice President with responsibility for amongst other things Business Group SCA Americas, will leave his position. "We have had too different views in decisive questions which has led to an agreement that Mr. Bertorp is to leave his position as Executive Vice President in SCA. We are in agreement that Mr. Bertorp will stay at SCA's disposal for special assignment," says Jan Åström, CEO and President in SCA. Thomas Wulkan, at present responsible for M/A and business development issues in SCA, will take over responsibility for Business Group SCA Americas.
SCHWEITZER-MAUDUIT INTERNATIONAL, INC., Alpharetta, Georgia, USA announced that it has reached agreement with Philip Morris USA Inc. to continue their strategic supply agreement for fine papers. The term of the agreement is from January 1, 2006 to December 31, 2008. The strategic supply agreement continues Schweitzer-Mauduit's ongoing supply of tobacco-related papers to Philip Morris USA Inc. The two companies have been operating under a strategic supply agreement since January 1, 1993.
STORA ENSO, Helsinki, Finland announced it plans to upgrade and modernize Board Machine Number 2 at its Fors Mill in Sweden to improve quality and efficiency, and increase production flexibility. One of the boilers will also be modified to enhance the mill's energy supply by replacing oil with biofuel. The annual folding boxboard production capacity of the machine will increase slightly, by 13,000 metric tons. Capital expenditure on the project, which is scheduled to start in 2006 and be completed in 2007, will amount to EUR 35 million (US$ 42 million).
IN OTHER STORA ENSO NEWS: Stora Enso's Fors Mill was presented with the Swedish Quality Award by King Carl XVI Gustaf of Sweden. Stora Enso's Fors Mill received the award in recognition of its sustainable and determined work over a long period. The award confirms that Stora Enso has successfully built up a corporate culture of continuous development and its operations are world class.
STORA ENSO NORTH AMERICA (SENA) will lay off 37 employees in April when it shuts down a paper machine at its mill in Stevens Point, Wisconsin, USA according to a report by the Milwaukee Business Journal. SENA said it plans to shut down the machine on March 31, 2006. The shutdown will be permanent, it said in a notice filed with the Wisconsin Department of Workforce Development. The company said that the layoff will affect a total of 34 union employees and three non-union employees, according to the report. SENA expects the layoffs to be permanent, but some bumping rights exist for certain union employees.
WESTERN FOREST PRODUCTS, Duncan, British Columbia, Canada announced the closure of its pulp mill located in Squamish, British Columbia, Canada effective March 9, 2006. The mill, which has an annual capacity of 275,000 metric tons of NBSK pulp, will continue production until the week of January 23, 2006 after which time shutdown activities would commence. The closure affects 323 employees in various locations. Preliminary estimates indicate the closure of the Squamish pulp mill will result in a pre-tax restructuring charge in the fourth quarter of approximately C$ 80 million (US$ 69 million), including a non-cash charge of approximately C$ 46 million (US$ 40 million) relating to the write-down of fixed assets and supplies inventories.
WEYERHAEUSER CO., Federal Way, Washington, USA has announced a number of sales and closures in its containerboard, packaging, and paper bag businesses. The company said the closures will result in a fourth-quarter pre-tax charge of US$ 115 million to US$ 135 million.
The Weyerhaeuser announcement confirms the permanent closure of the 350,000-ton/yr containerboard machine in Plymouth, North Carolina. On November 29, 2005 Weyerhaeuser announced plans for an indefinite curtailment of production at the facility after concluding that the containerboard machine no longer is economically sustainable. Approximately 200 employees are affected by the decision.
The following packaging facilities will be closed during the next few months:
- Corrugated packaging plants in four locations: Bedford Heights, Ohio; Elmira Heights, New York; Little Rock, Arkansas; and Matthews, North Carolina
- Corrugated sheet feeder plants in Pulaski, Tennessee and Waco, Texas
- A retail paper bag plant in Kansas City, Missouri.
Weyerhaeuser also announced the permanent closures of two paper machines, which, it says, will result in a pre-tax charge of US$ 380 million to US$ 385 million in the fourth quarter. The closures include:
- One of two paper machines at the Dryden Pulp and Paper mill in Ontario on April 1, 2006, removing 155,000 tons of uncoated free sheet capacity. Dryden will continue producing about 332,000 tons of white paper. The closure affects approximately 80 of the mill's 795 employees. Dryden's bleached market pulp mill and converting sheeters will continue to operate.
- The Prince Albert pulp and paper mill in Saskatchewan, announced in October as an indefinite closure. The paper mill will cease production at year's end. The pulp mill, which is being offered for sale, will continue operating until spring to minimize risk of damage caused by cold winter weather. The Prince Albert facility has an annual capacity of 280,000 tons of uncoated paper and 130,000 metric tons of market pulp. It employs 690 hourly and salaried employees.
PUBLISHED PRICE INCREASES
DUPONT TITANIUM TECHNOLOGIES, Wilmington, Delaware, USA announced a price increase for all DuPont™ Ti-Pure® Titanium Dioxide grades sold in Latin America. Effective January 1, 2006, or as permitted by contract, prices for all Ti- Pure® grades in Latin America will increase $100 U.S. per metric ton. This increase will be effective in Mexico, Central America, Caribbean and South America.
The company also announced a price increase in Europe and Middle East for all DuPont titanium dioxide grades. Effective January 1, 2006, or as permitted by contract, prices for all titanium dioxide grades in Europe will increase 130 Euros per metric ton and 150 US dollars per metric ton in the Middle East.
NALCO HOLDING COMPANY, Naperville, Illinois, USA announced a freight surcharge for the European Paper Industry ranging from one to three Euro cents per kilogram of product delivered. This surcharge applies to both contract and non-contract clients and will be adjusted or removed subject to market conditions affecting fuel costs and freight rates. The freight surcharge is effective Jan. 1.
SONOCO-ALCORE S.A.R.L., Brussels, Belgium will raise prices for core board by a total of EUR 55 (US 65.97) per ton, in two steps. The first increase, January 15, 2006, will be EUR 35 (US$ 41.98) per metric ton; the second, February 24, 2006, is a EUR 20 (US$ 23.99) per metric ton increase.
The company also announced a price increase in Europe and Middle East for all DuPont titanium dioxide grades. Effective January 1, 2006, or as permitted by contract, prices for all titanium dioxide grades in Europe will increase 130 Euros per metric ton and 150 US dollars per metric ton in the Middle East.
NALCO HOLDING COMPANY, Naperville, Illinois, USA announced a freight surcharge for the European Paper Industry ranging from one to three Euro cents per kilogram of product delivered. This surcharge applies to both contract and non-contract clients and will be adjusted or removed subject to market conditions affecting fuel costs and freight rates. The freight surcharge is effective Jan. 1.
SONOCO-ALCORE S.A.R.L., Brussels, Belgium will raise prices for core board by a total of EUR 55 (US 65.97) per ton, in two steps. The first increase, January 15, 2006, will be EUR 35 (US$ 41.98) per metric ton; the second, February 24, 2006, is a EUR 20 (US$ 23.99) per metric ton increase.
NIP IMPRESSIONS®: BY JIM THOMPSON
A far-fetched pulping idea…
Not one to fear putting forth the perceived crazy idea, I offer the following to the general discussion today about pulping and extraction of valuable other products from trees. What if we could develop a system to pulp in situ, meaning pulp in the forest at the source of the cellulose (trees)?
The agricultural community has moved this way in the last 150 years in the harvesting of nuts, seeds and so forth, starting with McCormick's reaper, which automated the cutting process. After that, for another 80 - 100 years, the gathered stalks with seeds were taken to a central place to have the grain removed. Then in the 1930s, the idea of combining all of these processes into one portable machine took hold-called, appropriately, the combine.
In pulping, we are still stuck at the McCormick reaper stage. The feller-buncher is the equivalent of the reaper, but we still haul the tree, and a bunch of things we don't want (such as dirt imbedded in the bark), to the pulp mill for further processing.
You purists will tell me that I am mixing metaphors, for in grain harvesting, we extract seeds and nuts, not the stalks. And, after all, you will continue, our sugar manufacturing cohorts, who want material in the stem, still haul everything to the sugar mill to extract the juice. All of this is true, but that should not keep us from trying.
Think, if like some science fiction movie, we could approach a tree identified for harvest, insert some sort of probe, and extract everything we want in a process akin to letting the air out of a balloon. Whether we then stored the extractives as a liquid slurry to be further processed elsewhere or continued the process with more components on the same mobile unit, we would have accomplished the first portion of the process with less fuss and muss (read: less labor, energy and environmental effects) than we do now.
What keeps us from doing this? I certainly do not have all the answers-but I have an answer to the first part, and that is dare to dream we can do things another way. Once that barrier is broken, we can move to solving the other problems, which are relatively simple because they have scientific solutions-not psychological ones.
Look at cotton picking. Long after seed extraction was mechanized, cotton picking was still a hand chore. After World War II, some scientists and engineers dared to dream, and developed the cotton picker. The modern cotton picker does the work of eighty people picking cotton by hand, yet until a mere 60 years ago, it was universally accepted that this process could not be mechanized. The same has happened with the harvesting of fruits and vegetables to a lesser extent.
So, if you researchers want something really exciting to work on, leap frog the current incremental ideas and move on to some truly innovative ways to take our industry to the next level. Otherwise, we will have to wait for our great, great grandchildren to do these things.
This is our last column before the holidays are upon us (Chanukah, Christmas, Kwanzaa, New Year's and perhaps some others) so may I caution you regarding safety around presents and so forth. There are plenty of holidays that personally turn tragic with improper, inexperienced or excited use of new motorbikes, guns and other gifts. Be careful, I selfishly want to keep you as readers and contributors to our great and wonderful industry in 2006!
The opinions expressed in this column are those of the author only, not TAPPI. “Nip Impressions®” is a registered trademark of Talo Analytic International, Inc.
The agricultural community has moved this way in the last 150 years in the harvesting of nuts, seeds and so forth, starting with McCormick's reaper, which automated the cutting process. After that, for another 80 - 100 years, the gathered stalks with seeds were taken to a central place to have the grain removed. Then in the 1930s, the idea of combining all of these processes into one portable machine took hold-called, appropriately, the combine.
In pulping, we are still stuck at the McCormick reaper stage. The feller-buncher is the equivalent of the reaper, but we still haul the tree, and a bunch of things we don't want (such as dirt imbedded in the bark), to the pulp mill for further processing.
You purists will tell me that I am mixing metaphors, for in grain harvesting, we extract seeds and nuts, not the stalks. And, after all, you will continue, our sugar manufacturing cohorts, who want material in the stem, still haul everything to the sugar mill to extract the juice. All of this is true, but that should not keep us from trying.
Think, if like some science fiction movie, we could approach a tree identified for harvest, insert some sort of probe, and extract everything we want in a process akin to letting the air out of a balloon. Whether we then stored the extractives as a liquid slurry to be further processed elsewhere or continued the process with more components on the same mobile unit, we would have accomplished the first portion of the process with less fuss and muss (read: less labor, energy and environmental effects) than we do now.
What keeps us from doing this? I certainly do not have all the answers-but I have an answer to the first part, and that is dare to dream we can do things another way. Once that barrier is broken, we can move to solving the other problems, which are relatively simple because they have scientific solutions-not psychological ones.
Look at cotton picking. Long after seed extraction was mechanized, cotton picking was still a hand chore. After World War II, some scientists and engineers dared to dream, and developed the cotton picker. The modern cotton picker does the work of eighty people picking cotton by hand, yet until a mere 60 years ago, it was universally accepted that this process could not be mechanized. The same has happened with the harvesting of fruits and vegetables to a lesser extent.
So, if you researchers want something really exciting to work on, leap frog the current incremental ideas and move on to some truly innovative ways to take our industry to the next level. Otherwise, we will have to wait for our great, great grandchildren to do these things.
This is our last column before the holidays are upon us (Chanukah, Christmas, Kwanzaa, New Year's and perhaps some others) so may I caution you regarding safety around presents and so forth. There are plenty of holidays that personally turn tragic with improper, inexperienced or excited use of new motorbikes, guns and other gifts. Be careful, I selfishly want to keep you as readers and contributors to our great and wonderful industry in 2006!
The opinions expressed in this column are those of the author only, not TAPPI. “Nip Impressions®” is a registered trademark of Talo Analytic International, Inc.
Don't miss out on two great TAPPI courses designed for manufacturers of web products
Web
Handling and Converting March 20-21, and Winding
Operations March 22-23, 2006. Participants will expand their technical
knowledge and be able to immediately apply newly acquired problem-solving
skills to positively impact company bottom lines. The courses will take
place at the Perdido Beach Hotel in Orange Beach, Alabama. Participants
should register before February 17, 2006 to take advantage of the Early
Bird registration savings. This course is sponsored by Metso Paper.
Test Methods News
The Standards Advisory Review Group (SARG) will meet on Tuesday, January 17, 2006, at 2:00 pm Eastern time, at TAPPI Headquarters in Norcross, GA. This is the group responsible for making final approvals of new or revised TAPPI Test Methods. The agenda and the drafts that are up for approval may be viewed online.
The meeting is open to anyone to attend in person or by conference call. If you would like to attend by conference call, please contact Charles Bohanan (cbohanan@tappi.org) no later than January 13, 2006, to obtain the dial-in number.
TAPPI Coating and Graphic Arts Conference Will Focus on Practical Coating Applications
Mark your calendar now for the TAPPI 2006 Coating and Graphic Arts Conference April 24-27 in Atlanta, Georgia. The conference will focus on providing immediately useful information for coated paper and paperboard producers. Take home practical ideas and solutions you can implement right away to improve your ROI. Plus discover new ways to maximize mill assets by using current coating technology. And, learn even more when you attend sessions of the TAPPI Papermakers Conference at no extra charge.
Enhance Your Knowledge and Skills at the TAPPI 2006 Papermakers Conference
Mark your calendar now for the TAPPI 2006 Papermakers Conference, April 24-27 in Atlanta, Georgia. The conference theme is Optimizing Energy, Efficiency, and Leadership. Enhance your knowledge and skills by attending dozens of thought-provoking sessions on the latest hot topics from all aspects of paper manufacturing including production, process control, quality control, and more. Plus, Learn even more when you attend sessions of the TAPPI Coating and Graphic Arts Conference at no extra charge.
North Carolina State University and TAPPI Present Laboratory-Based Course
North Carolina State University and TAPPI are co-sponsoring the Hands-on Workshop for Pulp and Paper Basics, March 7-11, 2006 in Raleigh, North Carolina. Taught by the Pulp & Paper Faculty of North Carolina State University, the course combines instructional presentations with hands-on laboratory and pilot-plant exercises. This course is appropriate for both technical and non-technical individual who want a laboratory focused course that covers the basics of pulping, bleaching, recovery, recycling, papermaking, and converting operations.
Web
Handling and Converting March 20-21, and Winding
Operations March 22-23, 2006. Participants will expand their technical
knowledge and be able to immediately apply newly acquired problem-solving
skills to positively impact company bottom lines. The courses will take
place at the Perdido Beach Hotel in Orange Beach, Alabama. Participants
should register before February 17, 2006 to take advantage of the Early
Bird registration savings. This course is sponsored by Metso Paper.Test Methods News
The Standards Advisory Review Group (SARG) will meet on Tuesday, January 17, 2006, at 2:00 pm Eastern time, at TAPPI Headquarters in Norcross, GA. This is the group responsible for making final approvals of new or revised TAPPI Test Methods. The agenda and the drafts that are up for approval may be viewed online.
The meeting is open to anyone to attend in person or by conference call. If you would like to attend by conference call, please contact Charles Bohanan (cbohanan@tappi.org) no later than January 13, 2006, to obtain the dial-in number.
TAPPI Coating and Graphic Arts Conference Will Focus on Practical Coating Applications
Mark your calendar now for the TAPPI 2006 Coating and Graphic Arts Conference April 24-27 in Atlanta, Georgia. The conference will focus on providing immediately useful information for coated paper and paperboard producers. Take home practical ideas and solutions you can implement right away to improve your ROI. Plus discover new ways to maximize mill assets by using current coating technology. And, learn even more when you attend sessions of the TAPPI Papermakers Conference at no extra charge.
Enhance Your Knowledge and Skills at the TAPPI 2006 Papermakers Conference
Mark your calendar now for the TAPPI 2006 Papermakers Conference, April 24-27 in Atlanta, Georgia. The conference theme is Optimizing Energy, Efficiency, and Leadership. Enhance your knowledge and skills by attending dozens of thought-provoking sessions on the latest hot topics from all aspects of paper manufacturing including production, process control, quality control, and more. Plus, Learn even more when you attend sessions of the TAPPI Coating and Graphic Arts Conference at no extra charge.
North Carolina State University and TAPPI Present Laboratory-Based Course
North Carolina State University and TAPPI are co-sponsoring the Hands-on Workshop for Pulp and Paper Basics, March 7-11, 2006 in Raleigh, North Carolina. Taught by the Pulp & Paper Faculty of North Carolina State University, the course combines instructional presentations with hands-on laboratory and pilot-plant exercises. This course is appropriate for both technical and non-technical individual who want a laboratory focused course that covers the basics of pulping, bleaching, recovery, recycling, papermaking, and converting operations.
TAPPI is the leading technical association for the worldwide pulp, paper, and converting industry.
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