Mercer International Inc. reported second quarter 2020 Operating EBITDA decreased to $40.5 million from $70.0 million in the second quarter of 2019 and from $57.0 million in the first quarter of 2020. In the second quarter of 2020, net loss was $8.4 million (or $0.13 per share) compared to net income of $10.3 million in the second quarter of 2019 and a net loss of $3.4 million in the first quarter of 2020. In the first half of 2020, Operating EBITDA decreased by 50% to $97.5 million from $193.8 million in the same period of 2019. In the first half of 2020, net loss was $11.8 million compared to net income of $61.9 million in the same period of 2019.

Resolute Forest Products Inc. reported net income for the quarter ended June 30, 2020, of $6 million, or $0.07 per diluted share, compared to net income of $25 million, or $0.27 per diluted share, in the same period in 2019. Sales were $612 million in the quarter, a decrease of $143 million from the year-ago period. Excluding special items, the company reported a net loss of $22 million, or $0.25 per share, compared to net income of $11 million, or $0.12 per diluted share, in the second quarter of 2019. The company reported operating income of $6 million in the second quarter. The $14 million improvement over the previous quarter reflects the favorable impact of the weaker Canadian dollar ($11 million), stronger pulp pricing ($9 million) and higher lumber shipments ($9 million), offset by lower paper and pulp shipments ($18 million) and softer quarter-over-quarter lumber pricing ($5 million), despite a late quarter increase in pricing.

January–June 2020 (​​​​1–6/2019) •Sales were EUR 2,453 million (2,809). •Operating result was EUR 163 million (232). Comparable operating result was EUR 158 million (308). •Result before taxes was EUR 139 million (202). The comparable result before taxes was EUR 134 million (279). •Comparable return on capital employed was 6.2% (12.1). •Cash flow from operations was EUR 240 million (183). April–June 2020 (4–6/2019) •Sales were EUR 1,200 million (1,372). •Operating result was EUR 102 million (49). Comparable operating result was EUR 96 million (128). •Result before taxes was EUR 93 million (36). The comparable result before taxes was EUR 86 million (115). •Comparable return on capital employed was 7.6% (10.2). •Cash flow from operations was EUR 190 million (142).

Ahlstrom-Munksjö announces a further investment in its Binzhou plant to be able to produce abrasive backing papers locally in China. Through this investment the company will further strengthen its leading position in abrasive backings globally. The investment project, involving an upgrade of an existing machine on site, will start in Q1 2021 and is expected to be completed in the second half of 2021. The construction work will not cause disruptions to the existing customers.

Mondi has developed the world’s first sustainable polycoated kraft (PCK) paper release liner, which is being launched on a global scale. Such liners are indispensable to carry and protect pressure-sensitive adhesive (PSA) products, and currently are often discarded once the PSA products are used. Mondi’s NextLiner uses a recycled base paper with a coating made from renewable resources. Using recycled fibres and renewable materials can have a positive impact on the environmental footprint of NextLiner, used in graphic arts, tapes and other industrial applications. Technical Data: *NextLiner is currently available in a 90-pound PCK grade (90# Liner), a standard graphic arts grade. Additional grades are available by adjusting the polycoating and paper weight. *NextLiner is available in a plain or structured version (as AirXLiner™). *Polycoated kraft paper has several advantages over alternative constructions, as it doesn’t tear easily and offers comparable moisture resistance properties. It has good layflatness, even when wet, and typically comes in an overall higher grammage (e.g., 90-gramm) compared to the standard, thinner options often used for labels.

Financial summary for the quarter: *Severe impact from Covid-19 on profitability *EBITDA excluding special items US$26 million (Q3 2019 US$118 million) *Loss for the period US$73 million (Q3 2019 Profit of US$8 million) *Net debt US$1,977 million (Q3 2019 US$1,728 million) *EBITDA from packaging and specialities segment increases 109%. For the quarter dissolving pulp (DP) and graphic paper sales volumes were 29% and 40% lower respectively. In response, a number of cost containment initiatives were implemented which, along with a positive currency movement, resulted in fixed costs being US$67 million less than the equivalent quarter last year. Consequently, the group generated EBITDA excluding special items of US$26 million compared to US$118 million in the equivalent quarter last year, which led to a decline in profitability and a loss of US$73 million for the quarter.

Monadnock Paper Mills, Inc. announces its newest line of coated text and cover papers, Astrolite PC 100® Velvet C2S, is the only premium, coated 100-percent recycled sheet compatible with heatset web presses that is manufactured in the U.S. In independent testing, Velvet demonstrated superior performance with no defects: *On an 8-color Rotoman AC press, the 80 lb. text weight printed up to 35,000 impressions per hour (1,145 fpm) without any web breaks and resulted in excellent print quality. *The product ran to standard operating densities without any major changes to fountain keys. *Velvet offered a good operating window for paper and ink tack build and will sustain up to eight colors down on each side.

The U.S. Department of Labor put a new rule into effect that allows employee benefit plan administrators to use an electronic “notice-and-access” disclosure system, as a default method, which will make it much more difficult for millions of Americans who received critical, paper-based information about their 401k, pension and retirement plan rules. In a 2019 Pew Research Center survey, 10 percent of U.S. adults said they do not use the internet. American Forest & Paper Association (AF&PA) President and CEO Heidi Brock issued the following statement in response to the rule: “The American Forest & Paper Association is disappointed the Department of Labor’s ‘notice-and-access’ rule will result in fewer Americans receiving critical financial information to help them plan for retirement. “By creating electronic disclosures as the default, U.S. retirement plan holders must now navigate an onerous process to retrieve critical plan and benefit information that would otherwise arrive automatically and reliably by mail."

Q2/2020 compared with Q2/2019 -Net sales decreased by 16.6% to EUR 621.5 million (745.1), mainly due lower delivery volumes -Comparable EBITDA decreased by 11.7% to EUR 74.0 million (83.8), representing 11.9% (11.2) of net sales, supported by variable and fixed costs reduction actions -Operating result of EUR 25.8 million (35.0). Q1-Q2/2020 compared with Q1-Q2/2019: -Net sales decreased by 10.9% to EUR 1,339.6 million (1,502.8), negatively impacted by price, product mix and volumes -Comparable EBITDA increased by 4.4% to EUR 165.7 million (158.8), representing 12.4% (10.6) of net sales, as lower variable costs more than offset lower selling prices and deliveries -Operating result of EUR 99.6 million (52.9), including a capital gain of EUR 32.0 million from the sale of the fine art paper business

Total European shipments of graphic papers were down 35.8% in May 2020 vs. May 2019 and were down 17.4% year-to-date. Total European shipments of newsprint were down 27.6% in May 2020 vs. May 2019 and were down 14.5% year-to-date. otal European shipments of sc-magazine were down 31.3% in May 2020 vs. May 2019 and were down 19.0% year-to-date. Total European shipments of coated mechanical reels were down 41.4% in May 2020 vs. May 2019 and were down 23.3% year-to-date. Total European shipments of uncoated mechanical (improved & others) were down 20.8% in May 2020 vs. May 2019 and were down 7.6% year-to-date. Total European shipments of coated woodfree were down 49.3% in May 2020 vs. May 2019 and were down 22.5% year-to-date. Total European shipments of uncoated woodfree were down 35.8% in May 2020 vs. May 2019 and were down 13.6% year-to-date.

This past Spring, our sawmill in Ashland, Maine turned on a turbine that reduces the site's carbon footprint by 1000 tonnes of C02. The turbine is part of a $1.8 million dollar investment in the mill which also included an upgrade to the boilers and an additional control room. This energy efficient project was completed just prior to the COVID-19 outbreak, which all J.D. Irving, Limited Maine operations navigated without any cases of COVID-19 or layoffs. The turbine will allow the site to limit their purchase of electricity, by choosing a greener option. Burning bark, that is already being removed from the logs, creates steam pressure and spins the turbine, creating its own electricity. In addition, there is now sawdust that can be transported to Grand River Pellets (GRP), JDI's pellet plant. The use of site generated mill residues as fuel also reduces landfill disposal and the ash generated from the wood can be used as a soil conditioner on agricultural land. See how JDI ash from other sites is being used on farmers fields here.

Net sales were $1.53 billion, down 14.9 percent. Sales were down 12.0 percent ex. currency, and down 13.7% on an organic basis. Reported operating margin declined 350 basis points to 8.1 percent. Adjusted EBITDA margin declined 60 basis points to 14.0 percent, while adjusted operating margin declined 140 basis points to 10.7 percent. Reported net income was $0.95 per share, compared to $1.69 per share in the prior year second quarter. Adjusted net income was $1.27 per share, down 26 percent, above the company’s expectations, reflecting a sales decline below the low end of its outlook range in April. Year-to-date free cash flow was $109 million, down 34 percent. Free cash flow in the second half of the year is expected to accelerate reflecting normal seasonality as well as higher net income and an increased focus on working capital productivity.

• Second quarter of 2020 reported operating income of $97 million, includes $81 million recovery of previous inventory write-downs in the lumber segment • Vida Group (“Vida”) announced agreement to purchase Bergs Timber Production AB (“Bergs”) sawmill assets for $43 million plus working capital, which will add 215 million board feet to Vida’s annual capacity • Completed acquisition of Elliott Sawmilling Co., LLC (“Elliott”) • Announced permanent closure of Isle Pierre sawmill, located near Prince George, British Columbia (“BC”) due to an insufficient supply of economically viable timber

The Company reported an operating loss of $6.3 million for the second quarter of 2020, down $12.4 million from operating income of $6.1 million reported for the first quarter of 2020. Reported results for the second quarter of 2020 included an $8.2 million finished pulp and raw material inventory write-down at period end. After adjusting for this, the Company’s operating income was $1.9 million for the second quarter of 2020, up $6.5 million from a similarly adjusted operating result in the previous quarter. The Company’s operating results for the second quarter of 2020 reflected direct and indirect impacts of the coronavirus outbreak on global markets, and more specifically the pulp and paper business.

H1 2020 highlights *Sales decreased by 18% to EUR 4,364 million (5,298 million in H1 2019) due to lower deliveries of graphic papers and lower pulp and paper sales prices *Comparable EBIT decreased by 33% to EUR 482 million (719 million), and was 11.0% (13.6%) of sales *UPM's transformative pulp project in Uruguay and biochemicals project in Germany are well on track with the planned start-up timeline *Operating cash flow was EUR 293 million (756 million) *Net debt decreased to EUR 301 million (366 million) *Cash funds and unused committed credit facilities totalled EUR 2.0 billion at the end of June

Sales of $4.6 billion in the second quarter of 2020 increased slightly compared to the year-ago period. Changes in foreign currency exchange rates reduced sales approximately 4 percent, while organic sales increased 4 percent. Volumes increased 2 percent and changes in net selling prices and product mix each improved 1 percent. In North America, organic sales increased 12 percent in consumer products but fell 3 percent in K-C Professional. Outside North America, organic sales rose 3 percent in developed markets but fell 3 percent in developing and emerging markets, driven by Latin America. Second quarter operating profit was $925 million in 2020 and $670 million in 2019. Results in both periods include charges related to the 2018 Global Restructuring Program. Second quarter adjusted operating profit was $1,012 million in 2020 and $789 million in 2019. Results benefited from organic sales growth, $120 million of cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program and $55 million of cost savings from the 2018 Global Restructuring Program. Input costs decreased $80 million, driven by pulp, while other manufacturing costs rose year-on-year. Advertising spending increased and general and administrative costs were also higher compared to the prior year. Foreign currency translation effects reduced operating profit by $15 million and transaction effects also negatively impacted the comparison.

A scheduled maintenance outage is a critical part of any mill’s operation. The downtime gives employees an opportunity to complete necessary maintenance that isn’t possible during normal operations, and it ensures the mill continues to run safely and efficiently. It’s also important to the community. Vendors and contractors who travel to the site to assist with the outage support the local economy by staying in hotels, eating in restaurants and shopping at local businesses. Then the COVID-19 pandemic started, and Dryden Mill Manager Marie Cyr and her team had some tough decisions to make. With support from Domtar’s corporate leadership, the team decided to proceed with the maintenance outage, but it designed a reduced work scope that focused only on tasks deemed essential for the mill’s safe and efficient operation. More work would be performed by mill employees, reducing the need for outside service providers by 80 percent. In addition, the majority of the 100 outside providers who were required would come from within Northwestern Ontario, eliminating the need for travel from outside the region. The change in scope also meant the outage would take 21 days instead of 9 days.

Q2/2020 (compared with Q2/2019) *Sales decreased by 18.9% to EUR 2 114 (2 608) million, due to lower deliveries and prices, as a result of the impact of the Covid-19 pandemic. *Operational EBIT decreased to EUR 178 (299) million. The impact of lower sales was partly offset by good cost management. *Operational EBIT margin was 8.4% (11.5%). *Operating profit (IFRS) was EUR 226 (142) million. *Strong liquidity at EUR 2.1 billion, including cash and committed credit facilities and good access to funding sources. *Operational ROCE was 6.8% (11.8%), below the strategic target of over 13%.

In June UPM announced plans to permanently close its Jyväskylä plywood mill. The employee consultation processes regarding the plan have now been completed. UPM Jyväskylä plywood mill will be permanently closed on 31.07.2020. The reduction of personnel is 147 people. The planned actions will strengthen UPM Plywood’s overall competitiveness and performance in the long run. UPM will recognise restructuring charges of approximately EUR 22 million as items affecting comparability in its Q2 2020 results. The planned actions would result in annual savings of approximately EUR 11 million.

Mactac® Distributor Products announces its latest innovation in indoor floor graphics, IMAGin® M-Dot Floor. A ‘print and stick’ indoor floor graphic material, IMAGin M-Dot Floor (MD128FW54L82) is extremely easy to print and apply. It consists of a 7.9-mil matte white PVC film that is directly printable with latex, UV and solvent-based inkjet printing methods, requires no lamination, and is coated on one side with Mactac’s specially formulated semi-sphere structured clear removable pressure-sensitive adhesive. It is supplied with a 74# white Kraft release liner.

Sappi Europe is very happy to report that its Alfeld site PM 3 is operational again as of the 20th of July, significantly ahead of the planned restart date. As previously reported the largest area of reconstruction focused on the machine hall with limited damage to the machine. The repair work was carried out by an excellent team of internal and external workers and our thanks go out to them for their efficiency and most importantly for their safe and pragmatic approach. Our teams at our Carmignano mill are also to be thanked for offering a back up solution which was quickly put in place while our repairs were conducted.

JANUARY 1 – JUNE 30, 2020 (compared with January 1 – June 30, 2019): *Net sales declined 8% to SEK 9,480m (10,304). The lower sales were mainly related to lower selling prices. *EBITDA amounted to SEK 2,031m (2,900), a decrease primarily due to lower selling prices *Operating cash flow was SEK 614m, (1,245). Earnings for the second quarter of 2020 were in line with the preceding quarter, but declined year on year.

Our Sawmills Division has recently completed a $4.9 million investment at the Kedgwick Sawmill. The modernization has meant work for nearly 60 contractors from other small communities from Bathurst to Edmundston. "This modernization will make our mill more efficient; processing the same logs and achieving more lumber and improved quality for our customers. Continued investment is what helps sustain over 100 good paying jobs in the community," says Jean-Sebastien Roy, Mill Manager at the Kedgwick Sawmill. The additional production by the new sawline will allow us to increase the volume of Premium Lumber, which is produced for North America's leading home improvement stores. Wood chips that are a by-product of the sawmill go to New Brunswick pulp and paper mills to help make paper and tissue products.

According to the report, total printing-writing paper shipments decreased 25 percent in June compared to June 2019. U.S. purchases of total printing-writing papers decreased 25 percent in June compared to the same month last year. Total printing-writing paper inventory levels decreased six percent when compared to May 2020. U.S. purchases of uncoated free sheet (UFS) papers in June decreased 28 percent compared to last June while the inventory level decreased eight percent compared to May 2020. UFS imports and exports both decreased compared to May 2019, down 26 percent and 44 percent respectively. Coated free sheet (CFS) paper shipments decreased 13 percent compared to June 2019 while the inventory level decreased two percent compared to May 2020. CFS imports increased two percent while exports decreased 42 percent in May 2020. click read more for additional statistics

Appvion Operations, Inc., launches an industry leading antimicrobial coating technology for a variety of substrates called SafeShield™! SafeShield technology prevents the replication of DNA and new cell formation! Independent lab tests demonstrate up to 99.99% reduction in non-pathogenic bacteria on the paper’s surface even after printing and post processing. To ensure the efficacy of SafeShield, the antimicrobial coating is formulated with components that have gone through the United States Environmental Protection Agency (EPA) review and registration processes.

Net sales for the second quarter declined by 2% to SEK 6 156 million (6 293). Higher sales volumes were primarily offset by significantly lower sales prices compared to last year in Division Paper. Net sales for the quarter were positively impacted by currency effects by 1%. Adjusted EBITDA increased to SEK 774 million (539), mainly as a result of lower maintenance costs compared with last year, lower fibre costs, reduced KM7 start-up impact and cost savings.

Holmen signed an agreement to acquire Martinsons, one of Sweden's leading players in sawn and processed wood products. The purchase price is SEK 1.0 billion for 100 per cent of the shares. The acquisition will almost double Holmen's sales of wood products to over SEK 3 billion, while also advancing positions in wood construction and providing Holmen with the capacity to process the majority of the raw material from its own forests in its own industry. Martinsons consists of two well-invested sawmills in northern Sweden with extensive processing of wood products for Scandinavian wood construction, as well as a project operation for construction of complete frames made of cross-laminated timber (CLT) and glulam beams for purposes such as offices, sports centres and apartment buildings. The company has 470 employees, most of whom work in processing.

Rayonier Advanced Materials Inc. announced preliminary second quarter results which were impacted by COVID-19 market-related conditions. The Company expects earnings and Adjusted EBITDA for the quarter to be slightly below prior year, driven by an approximately 12 percent decline in revenues. Compared to the prior year period, results for the second quarter were aided by improvements in Forest Products and Paperboard segments driven by increased prices for lumber and lower raw material costs for paperboard, respectively. These benefits were offset by COVID-related impact on: 1) global demand for High Yield Pulp and Newsprint; 2) sales volumes in High Purity Cellulose due to softer demand in textile, automotive and construction end markets; and 3) logistics delays impacting High Purity Cellulose volumes. Corporate costs increased modestly from prior year, primarily due to an increase in non-cash charges. With a focus on working capital and capital expenditures, liquidity improved $19 million in the quarter to $164 million, including $49 million of cash.

UPM will permanently cease production at its Chapelle newsprint mill in Grand-Couronne, France today. The consultation process with employee representatives was completed on June 15th, 2020 according to French legislation and approved by French authorities on July 15th, 2020. The closure impacts 228 people. UPM offers support to employees in order to alleviate the effects caused by staff reductions in relation to the closing of the mill. With the closure of the mill UPM will reduce a total of 240.000 tonnes of its newsprint paper capacity.

Norske Skog’s EBITDA in the second quarter of 2020 was NOK 138 million, a decrease from NOK 379 million in the first quarter of 2020, mainly due to national restrictions on movement of goods and people following the outbreak of the corona pandemic. The restrictions had severe negative impact on operations due to a sudden and considerable drop in demand for publication paper. Operating earnings in the second quarter of 2020 were NOK -122 million compared to operating earnings of NOK 90 million in the first quarter of 2020 impacted by impairment recognized in the quarter. Net loss in the quarter was NOK 59 million compared to a net loss of NOK 374 million in the previous quarter. The previous quarter was impacted by unrealised currency loss that was only partially reversed in the second quarter as NOK was stronger at the quarter end. Cash flow from operations was NOK -109 million in the quarter compared to NOK 470 million in the previous quarter.

Only a few weeks after start-up, the 5.6 m wide PrimeLineTM W6 tissue machine that was delivered by ANDRITZ to Arkhbum Tissue Group LLC in Vorsino (Kaluga region), Russia, reached a speed of 2,000 m/min with a grammage of 16 g/m² and is now producing high-quality facial, toilet, napkin, and kitchen towel grades made of 100% virgin pulp (bleached hardwood and softwood pulp). Irina Galakhova, Chairman of the Board of Directors, Arkhbum Tissue Group LLC, says: “We are extremely satisfied with our products – and so are our customers. We appreciate the high quality and softness. In addition, we achieve remarkable cost savings compared to systems with conventional presses and Yankees.”

As people grow weary of online entertainment and digital communication in the age of COVID-19, industry analysts have noticed some interesting paper trends, particularly when it comes to books, education, entertainment and communication. There’s no question that the coronavirus pandemic has changed many things about our daily lives, from the way we work and learn to the way we shop and play. The buying and consuming habits that have emerged over the past several months will keep sociologists and scientists busy for years as they study the effect of isolation on modern human behavior. But as the novelty of working and learning from home wears off, only to be replaced by digital overload and Zoom fatigue, people have started turning off their electronics and embracing analog alternatives, if only for a few hours at a time. The resulting paper trends have created some bright spots for our industry. click read more below for details...

Matt Spence, Vice-President Biomaterials at Sappi Biotech explains: “Valida is a highly fibrillated cellulose manufactured by Sappi. Derived from woodfibre, it is a 100% natural, biodegradable and sustainable material. Valida can successfully perform as an opacifier and thickener in sanitising gels, providing a natural alternative for acrylate-based polymers while providing some unique additional benefits, including: *replacing microplastics with a natural ingredient *sustainable and biodegradable *moisturising the skin *imparting a superior skin feel *unique texture *having passed cosmetics ingredient safety studies covering: - skin irritation - skin sensitisation - skin blockage, and - skin penetration.

Headquartered in Mexico City, Mexico, Poliquímicos is a leading producer and supplier of specialized chemical solutions for water-intensive industries, including the pulp and paper markets in Mexico. The business will be integrated into Solenis as part of its direct-to-market strategy. “The acquisition of Poliquímicos will enhance Solenis’ direct sales channel in the Mexican market and improve our production capabilities in the region,” said John Panichella, CEO, Solenis. “With more than 46 years of history in Mexico, we are thrilled to welcome the Poliquímicos team and are excited to provide them with the full suite of Solenis products to better serve our customers.”

The American Forest & Paper Association released new industry guidance that aims to clear up consumer confusion regarding the recyclability of pizza boxes. The guidance resulted from a study conducted by WestRock – an AF&PA member company – that found the presence of grease and cheese at levels typically found on pizza boxes does not impact manufacturing in a negative way. “Corrugated pizza boxes are successfully recycled every day at paper mills throughout the country, yet consumers remain confused by mixed messages suggesting that some boxes should not be put in the recycle bin,” said AF&PA President and CEO Heidi Brock. “So, let’s be clear: pizza boxes are recyclable. Consumers should not be concerned about grease or cheese – simply remove any leftover pizza and place the box in the recycle bin. We encourage communities to update their residential recycling programs guidelines to explicitly accept pizza boxes that are free of food.”

Mondi has commissioned a crude tall oil plant (CTO-plant) at its Syktyvkar pulp and paper mill. The new equipment allows processing of all sulphate soap generated as a by-product of the pulp production process in the mill. As a result of this investment, the mill will be able to produce up to around 40,000 tonnes of crude tall oil annually. The new CTO-plant produces softwood and hardwood tall oil obtained through sulphuric acid treatment of sulphate soap which is a by-product of the pulp cooking process. Softwood tall oil is used at Mondi Syktyvkar to mitigate pitch deposits at the digesters, while hardwood tall oil is sold to external companies dealing in petrochemical, road construction, paint and coating. In recent years, tall oil has been intensively used for biodiesel fuel production primarily in Scandinavian countries.

Sappi announces the closure of Paper Machine 2 at its Stockstadt Mill in Germany as well as Paper Machine 9 and the energy complex at its Westbrook Mill in the USA. Following an exhaustive consultation process an agreement was reached with mill employee representatives to permanently close PM2, which has a Coated Woodfree paper production capacity of 240 000 tons per annum. Stockstadt will now focus on its strong and growing uncoated woodfree offering. Approximately 170 employees will leave the company with production expected to cease on 30 September 2020. After a period of review, Sappi North America has decided to permanently shut PM9 and the majority of the energy complex at its Westbrook Mill in the State of Maine. Approximately 75 employees will be impacted. The impacted assets are expected to close by end of calendar year 2020.

American Forest & Paper Association (AF&PA) President and CEO Heidi Brock issued the following statement regarding the Environmental Protection Agency’s (EPA) Boiler Maximum Achievable Control Technology (MACT) proposed rule: “AF&PA is pleased the EPA has moved forward in proposing an achievable Boiler Maximum Achievable Control Technology (MACT) rule. This is the result of more than two decades of work that gives the forest products industry regulatory certainty while encouraging the use of renewable, carbon-neutral fuel. “While limits for several boiler types have become more stringent, we believe they are feasible and affordable. Already, to date, our industry has invested $1 billion in controls to meet Boiler MACT obligations.

The Company is pleased to announce that all necessary conditions precedent required for the implementation of Recapitalisation have been obtained and it is expected that the Recapitalisation Effective Date will be 16 July 2020. The Company welcomes this positive development and is confident that following the Recapitalisation the Company will emerge with a solid liquidity position and healthy balance sheet. In particular, the Company considers that the Recapitalisation will significantly improve the Group’s liquidity profile, reduce the Group’s net leverage and increase the Group’s flexibility.

Sugar pulp can be applied as a sustainable substitute for wood fibre to produce paper on an industrial scale. Crown Van Gelder recently signed a Letter of Intent with Cosun Beet Company for the joint development of innovative solutions for sustainable paper and packaging materials.

To coincide with World Environment Day and South Africa’s Environment Month, on 04 June 2020, Sappi Limited committed to set science-based targets through the Science Based Targets initiative (SBTi). The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). Through heightening our focus and ambition on climate action, we look to increase our contribution to building a resilient, thriving world. Within the context of Sappi’s 2025 sustainability targets, we have established a global specific greenhouse gas (GHG) emissions target of 17% reduction in combined Scope 1 & 2 emissions under the United Nations Sustainable Development Goal (SDG) 13: Climate Action. By region this translates to a 2025 GHG reduction target of: • Europe: 25% reduction from FY19 baseline • South Africa: 20% reduction from FY19 baseline • North America: 5% reduction from FY19 baseline

Genera, a US manufacturer of domestically sourced and produced ag-based pulp and molded fiber products, has named Timothy Watkins and Tyler Winston to two top engineering positions at the company's East Tennessee facility. The announcement marks continued progress toward full production of Genera's innovative Earthable® line of sustainable, ag-based fiber products later in 2020. Genera will manufacture molded fiber food service products like plates, bowls, and takeout containers. These products will be fully biodegradable and compostable.