June 2016 - Midland Paper

Royal Mail MarketReach report dispels DM engagement myths

The report categorised people into seven life stages: fledglings; sharers; couples; young families; older families; empty nesters; and older retirees. The results found that far from being disinterested in DM, young people living at home with their parents - fledglings - were 18% more likely than any other group to be receptive to mailings. The study showed 23% had bought or ordered something as a result of receiving direct mail in the last 12 months. Only the retiree group scored higher with 32%. Additionally a third of fledglings had kept a piece of direct mail for future reference, while 17% - more than any other category - had passed it on to others. "There is a myth in the market that only older people engage and respond to direct mail, but we found through this research that there is a much deeper picture and from the fledgling point of view it's quite surprising," said Emma Springham, head of marketing at MarketReach.

International Paper Completes the Sale of Its Asian Corrugated Packaging Business

International Paper today announced that it has completed two previously disclosed transactions – the sale of its corrugated packaging business in China and Southeast Asia to Xiamen Bridge Hexing Equity Investment Partnership Enterprise; and the acquisition of the Holmen Paper Madrid Mill in Spain. The Company plans to convert the newsprint machine to produce recycled containerboard during the second half of 2017.

APP Signs Partnership to Support Green Development in West Kalimantan

Programs have been started by APP in the province of West Kalimantan in cooperation with the Belantara Foundation and IDH Sustainable Trade Initiatives, also involving several forest plantation companies on multi-stakeholder-based, responsible landscape management on the production forest in the Kubu-Ketapang landscape. In addition, in an effort to prevent peatland forest fires, APP and its suppliers have built more than 5,000 dams on the perimeter canals around its suppliers' plantation area in Indonesia. Of these, 500 dams which were built in West Kalimantan. In addition to the signing of the Memorandum of Understanding, APP outlined its support for an initiative by the Governor of West Kalimantan in developing renewable energy using the Kemiri Sunan plant (Reutealis trisperma (Blanco) Airy Shaw). Kemiri Sunan crop can be used as biodiesel and is a key part of the Government's efforts to reduce the dependence of Indonesia against imports of fuel. This pilot project will take the form of collaboration between West Kalimantan Forestry, APP, Tanjungpura University, and Belantara Foundation.

WTI Crude Oil Channels Higher

June 30, 2016
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WTI Crude Oil (CFD: US OIL) prices are currently channeling higher, after bouncing from monthly lows at $41.84. Much of today’s advance in Crude Oil has been predicated on a tightening in oil supply, as well as a general rebound in international markets. As prices rise, traders should be mindful that Crude Oil has still not recovered completely from Friday’s decline. For this reason, it will remain important to monitor short-term momentum and key values of support and resistance.

Sale of newsprint mill in Spain completed

The buyer, International Paper, will convert the mill into recycled containerboard production. International Paper will continue to produce newsprint at the mill until the second half of 2017 when it is scheduled to be converted into recycled containerboard. During this period, Holmen will sell the newsprint produced at the mill and continue to serve its customers. During this period we will maintain our service and deliveries of todays products. Our customers will not be affected, says Nils Ringborg, CEO Holmen Paper. Included in the transaction is also the recycled paper collector Cartón y Papel Reciclado S.A. (Carpa) and Holmen´s 50 per cent shareholding in the energy producer Peninsular Cogeneración S.A.

Klabin Inaugurates its New Pulp Mill in Parana State

Klabin inaugurated today its new pulp mill located in Ortigueira, Paraná.The Puma Unit represents an important mark in the company’s new growth cycle.With the new mill, Klabin becomes a fiber solutions company by being the only one in Brazil to produce, at the same plant, bleached pulp from hardwood fibers, bleached pulp from softwood fibers and fluff pulp. “It’s imperative for a country of continental dimensions, like Brazil, to have a solid and competitive industrial sector.And Klabin shares this vision.It’s at the core of our corporate DNA,” said Galvão during the inauguration ceremony.According to Israel Klabin, who also sits on the company’s board, “the project that most inspires us is the one to develop sustainably.The one to create an environment of stability that allows us to think further ahead and benefit a greater number of stakeholders.” The highest private-sector investment ever made in the state of Paraná, the project required total investment of R$8.5 billion, including infrastructure and recoverable taxes, and construction was completed in 24 months and within the initial budget.The Puma Unit will have annual production capacity of 1.5 million tons of pulp, with 1.1 million tons of bleached hardwood pulp (eucalyptus) and 400,000 tons of bleached softwood pulp (pine), a portion of which will be converted into fluff pulp.With power generation capacity of 270 MWavg and 150 MW of surplus power, which is sufficient to supply a city with a population of 500,000, the new operation further improves Klabin’s electricity self-sufficiency.

Canada Post Strike Would Hit SMB Ecommerce Shippers

Primarily smaller merchants doing business in Canada are scrambling to get product out the door and set up contingency plans as workers for Canada Post may be on strike as of July 2, according to various media reports. On that date, Canada Post workers will be in a legal position to walk off the job, or be locked out by the government-run company, the Toronto Sun reported. Canada Post and the Canadian Union of Postal Workers have been locked in contract negotiations since January, but have failed to come to an agreement. Jerry Hempstead, principal of Hempstead Consulting, said there is a different set of rules in Canada vs. the U.S. Postal Service when it comes to collective bargaining, “so it’s possible there will be a real work disruption.” Hempstead added there is a robust set of alternatives to Canada Post because the vast majority of Canadian citizens live in a select set of metropolitan areas.

New Lignin Operation in Florida in Final Phase of Approval

Borregaard (BRG) and Rayonier Advanced Materials (RYAM) have concluded a market, technical and engineering analysis regarding a new lignin operation at RYAM's Fernandina Beach site in Florida to serve the growing demand for natural lignin-based products. The final review of the investment by the companies' boards of directors is anticipated during the second half of 2016 upon receipt of final permits and incentives from government entities. If the companies elect to proceed, operations are expected to commence approximately 18 months later. Cost of construction of the lignin plant is expected to be $135 million over two phases of the project. Phase one, which will have a lignin capacity of 100,000 metric tons, is estimated to cost $110 million. An estimated incremental $25 million will be required in phase two to increase the total capacity to 150,000 metric tons. LignoTech Florida intends to access the debt markets to fund a portion of the capital requirements.

France seeks PEFC re-endorsement: public consultation open

Stakeholders globally are invited to provide feedback on its compliance with PEFC International's Sustainability Benchmarks by 23 August 2016. France first achieved PEFC endorsement of its national system back in 2000, and now becomes the latest country to have submitted a system for re-endorsement for a third time. The country is home to over 8 million hectares of certified forest, and with over 2000 Chain of Custody certificates, France is the world leader in PEFC Chain of Custody certified companies. PEFC International ensures that national systems are revised regularly in multi-stakeholder processes by limiting the validity of endorsements to five years, after which they can apply for re-endorsement to continue benefitting from PEFC recognition. As part of the endorsement process, PEFC seeks comments and feedback from all interested parties to ensure full compliance of the national systems with PEFC's Sustainability Benchmark during a 60-day global public consultation.

Pier 1 Imports, Inc. Reports First Quarter Fiscal 2017 Financial Results

Net sales for the first quarter decreased 4.2% (a 3.9% decrease on a constant currency basis after adjusting for a 30 basis point impact attributable to the year-over-year decline in the value of the Canadian Dollar relative to the U.S. Dollar) to $418.4 million, compared to $436.9 million in the same period last year. Company comparable sales decreased 2.5% (a 2.2% decrease on a constant currency basis). E-Commerce represented approximately 19% of net sales in the first quarter, as compared to approximately 17% of net sales in the first quarter of fiscal 2016. Gross profit in the first quarter totaled $149.0 million, or 35.6% of net sales, compared to $169.5 million, or 38.8% of net sales, in the first quarter of fiscal 2016. First quarter merchandise margin (the result of adding back delivery and fulfillment net costs and store occupancy costs to gross profit) totaled $232.5 million, or 55.6% of net sales, compared to $252.8 million, or 57.9% of net sales, in the first quarter of fiscal 2016. The year-over-year decline in merchandise margin is primarily attributable to elevated clearance and planned incremental promotional activity. For the three months ended May 28, 2016, contribution from operations (gross profit less compensation for operations and operational expenses) totaled $68.7 million, compared to $84.8 million during the same period last year.