Canfor Corporation is announcing a temporary reduction in Canadian production due to very weak market conditions. The production will be reduced through curtailments at all solid wood facilities in B.C. and Alberta. This will remove approximately 150 million board feet in December and January. The curtailments will start to be implemented on December 19, 2022 and will range from one to four weeks across its Canadian operations. The Company will continue to adjust operating rates to align with market conditions and anticipates that the majority of its BC facilities will operate below full capacity in the New Year. “Due to the significant decrease in demand for solid wood products and challenging economic conditions, we are temporarily curtailing production in Canada. We will be working to mitigate the impacts on our employees by providing support and identifying meaningful work during the downtime,” said Don Kayne, President and CEO, Canfor.
Twin Rivers Paper Company has reached a definitive agreement to sell its softwood lumber mill in Plaster Rock, New Brunswick, to eastern Canadian lumber manufacturer and North American forest products leader Groupe Lebel. Group Lebel is a longtime supplier to Twin Rivers Paper. The transaction includes a long-term supply agreement for the Plaster Rock mill to continue providing Twin Rivers Paper with by-product chips and biomass utilized by the company’s pulp and cogeneration operations in Edmundston, New Brunswick.
The ISO 9001 certificate is the world's most recognized international certification standard for a quality management system. It provides guidance for companies that aim to ensure products and services consistently meet quality requirements. As an ISO 9001:2015 certified site, Mactac Minneapolis has a systematic quality management system in place and is committed to cost and waste reduction, continuous improvement, regulatory compliance and more. ‘At Mactac, we believe quality is key to a successful business and our sustainable quality culture is at the core of everything we do,’ said Jennifer Zenar, director of quality at Mactac.
Paper Excellence is one of the industry leaders that joined the Action Declaration on Climate Policy Engagement in support of governments to address climate change. The initiative was developed by Corporate Knights and Global 100 Council COP27. The Action Declaration outlines how industry in the movement to decarbonize the economy will support ambitious action to close the say-do gap on countries’ emission reduction by: *supporting climate change actions aligned with the Paris Agreement when engaging with policymakers; *working with their major industry/trade associations to advance alignment with the Paris Agreement; and *monitoring and disclosing climate policy alignment for their companies and their major industry/trade associations.
Domtar Corporation announced that President and CEO John Williams’ retirement date will be June 30, 2023. Williams has planned to leave the company after fourteen years in his leadership role; however, he will continue as a part-time advisor regarding strategic growth opportunities. Additionally, to continue Domtar’s forward momentum, Steve Henry, currently Senior Vice President of Packaging, has been appointed to the role of Executive Vice President (EVP) and Chief Operating Officer (COO) effective immediately. As EVP and COO, Henry will lead the pulp, paper and packaging operations and commercial functions at Domtar, while Williams will continue to lead all corporate functions until his retirement. “On behalf of Domtar and the Management Committee, I want to thank John for his leadership and commitment to our employees, customers and communities over the past fourteen years,” said Henry. “He joined the company during a recession and has navigated ever-changing industry dynamics and economic fluctuations to transform Domtar into the strong pulp, paper and packaging company that it is today. I am honored to build on his legacy and continue serving our stakeholders.”
The new broke handling will be part of the production line PM9 producing high-quality wet strength paper, such as label paper in the future. ANDRITZ will deliver high-consistency (HC) pulping, high-density (HD) cleaning and deflaking for processing the special type of broke. Specific trials on pulping and deflaking of wet-strength paper were conducted at the ANDRITZ stock preparation pilot plant in Graz, Austria in advance. The trials were carried out with comparable raw material from Sappi and confirmed the pulp properties and operating characteristics required by Sappi for the future. Flavio Froehli, VP Marketing & Sales at Sappi Europe: “We are very pleased that we will also be able to produce wet-strength label paper at our Gratkorn mill in the future. This investment underscores our strategy to establish Sappi as the leader within the label sector, adding to the supply of value adding products across our entire business.”
Revenue: For the third quarter ended 30 September 2022 Lecta had revenue of €514.6 million versus €342.3 million in the third quarter ended 30 September 2021, an increase of €172.3 million or +50%. EBITDA increased by €25.9 million, from €8.9 million in 3Q2021 to €34.7 million in 3Q2022. This increase was essentially due to higher sales of paper in volume and higher sales prices, partly offset by higher production cost and higher labor and fixed costs. Revenue: For the nine months ended 30 September 2022, Lecta had revenue of €1,522.3 million versus €923.8 million in the nine months ended 30 September 2021, an increase of €598.4 million or +64.8%. EBITDA increased by €126.6 million, from €30.0 million in September 2021 YTD to €156.5 million in September 2022 YTD. This increase was the result of higher sales of paper in volume, and higher sales prices, partly offset by lower margin on variable costs, and higher fixed costs. EBITDA in September 2022 YTD includes the €38.6 m€ compensation received as a consequence of the anticipated termination and renegotiation of gas purchase agreements in Spain with the current supplier.
Total European shipments of graphic papers in September 2022 were down 11.0% vs. September 2021 and were down 10.6% year-to-date. Total European shipments of newsprint in September 2022 were down 4.9% vs. September 2021 and were down 7.2% year-to-date. Total European shipments of sc-magazine in September 2022 were down 17.1% vs. September 2021 and were down 14.5% year-to-date. Total European shipments of coated mechanical reels in September 2022 were down 13.2% vs. September 2021 and were down 19.5% year-to-date. Total European shipments of uncoated mechanical (improved & others) in September 2022 were down 11.5% vs. September 2021 and were down 13.5% year-to-date. Total European shipments of coated woodfree in September 2022 were down 11.9% vs. September 2021 and were down 2.3% year-to-date. Total European shipments of uncoated woodfree in September 2022 were down 10.4% vs. September 2021 and were down 10.2% year-to-date.
UPM Raflatac, a global supplier of innovative and sustainable labeling materials, recently expanded their Direct Thermal (DT) Opticut Linerless labels portfolio. The OptiCut products in this portfolio are customized for various applications in hospitality, retail and weigh scales, transport and warehousing, and industrial food. “We widened our OptiCut Linerless portfolio to enable brands to maximize efficiency and find solutions for each unique packaging type. The adhesive properties for each of our seven OptiCut products were designed for various application environments,” stated Brinder Gill, Director, Paper Laminates, UPM Raflatac Americas.
Domtar’s Cougar® paper brand has given life to creative ideas across North America for a half century. Featured in presidential holiday cards, the Kate Spade Brand Book and music festival posters, Cougar’s reputation for quality and consistency has set the brand apart. But it all begins at our Rothschild Mill on the east bank of the Wisconsin River. That’s where more than 320 mill employees recently celebrated 50 years of Cougar alongside senior Domtar leaders and community stakeholders. The two-day event included birthday cake, employee giveaways and mill tours. The 50th anniversary event recognized the work behind the printed page. Employees and leaders celebrated the mill’s commitment to quality and safety. Guests included representatives from the Wisconsin Paper Council and the Wausau Chamber of Commerce.
Increasing demands for electrification mean more and more batteries are needed. Societies are built around electrification. Batteries are everywhere. This is true now, but it will also be true for the years to come at an ever-increasing pace. We need to find new and smart solutions to meet the demands of the future – solutions based on renewable materials. As a renewable natural resource, wood represents a favourable alternative to fossil-based and other non-renewable materials, and as such, trees are pivotal in fighting climate change. Trees absorb CO2 from the atmosphere and that carbon stays in the fibers when they are made into products, even through recycling. Carbon storage can be increased by substituting materials from finite resources with renewable alternatives. With Lignode® by Stora Enso, we use lignin from sustainably managed Nordic forests and turn into an anode material for batteries.
Fedrigoni Group has agreed yet another buy, which will give the business a dominant presence in the worldwide market for premium papers for wine and spirits. The acquisitive Italian group has signed an agreement with Papeterie Zuber Rieder to take over the business, subject to consultation with the French firm’s works council. Papeterie Zuber Rieder was founded in 1881. It employs 130 staff and since the turn of the century has focused its offering on specialty papers for labels, packaging and perfumed cards. Its range includes food grade papers and 'ice bucket proof' labels. Fedrigoni said the buy would create “the first global player in premium papers for wines and spirits”, and Zuber Rieder would benefit from its production capabilities and international network.
The American Forest & Paper Association (AF&PA) has released its October 2022 Printing-Writing Monthly report. According to the report, total printing-writing paper shipments decreased 4% in October compared to October 2021. U.S. purchases of total printing-writing papers increased 6% in October compared to the same month last year. Total printing-writing paper inventory levels increased 1% when compared to September 2022. U.S. purchases of uncoated free sheet (UFS) papers in October increased 7% compared to last October, while the inventory level increased 1% compared to September 2022. UFS imports increased 41% while exports decreased 12% in September 2022. Coated free sheet (CFS) paper shipments increased 1% compared to October 2021 while the inventory level decreased 4% compared to September 2022. CFS imports and exports both increased compared to September 2021, up 62% and 16% respectively. U.S. purchases of coated mechanical (CM) papers in October remained essentially flat (0.1%) compared to last October while the inventory level increased 3% compared to September 2022. CM imports increased 31% while exports decreased 12% in September 2022. Uncoated mechanical (UM) paper shipments decreased 22% compared to October 2021 while the inventory level increased 33% compared to September 2022. UM imports and exports both decreased compared to September 2021, down 11% and 38% respectively.
Monadnock Paper Mills, Inc. is pleased to announce its HP Indigo Solutions Portfolio of 100% Post-Consumer Waste (PCW) paper, packaging, and environmental graphics materials. The product portfolio, complete with a comprehensive listing of available weights, sizes, and properties, is now featured in a comprehensive Stock Guide publication. Either certified or optimized for use on HP Indigo printers, all portfolio offerings are made with Forest Stewardship Council-certified 100% PCW recycled fiber, manufactured carbon neutral and made with 100% Green-e certified wind powered electricity. Additionally, the recycled paper is processed chlorine free, and the entire production process operates under third-party Certified ISO 14001 Environmental and ISO 9001 Quality Management Systems.
Stora Enso and Voodin Blade Technology GmbH have signed a partnership agreement to develop sustainable wind turbine blades from wood. Under the agreement, the two companies are committed to developing sustainable alternatives for wind turbine blades and creating a competitive and reliable supply chain. They are currently producing and installing a 20 m blade for a 0.5 MW turbine and have plans for an 80 m blade. Wind power blades are typically produced with fibreglass and carbon fibre, energy-intensive non- renewable plastics made from petrochemicals that cannot be easily recycled. Tens of thousands of ageing blades today end up in landfills. By developing blades with sustainable wood, Stora Enso and Voodin Blades can make the blades lighter and reduce the overall dependency on fossil fuel extraction.
KP Tissue Inc. and Kruger Products announced that it will shut down certain older and inefficient production assets including a Light Dry Crepe paper machine and six converting lines in early January, 2023 in Memphis, Tennessee. High quality facial tissue and premium Through Air Dry (“TAD”) products will continue to be produced at its Memphis plant by approximately 400 remaining employees. The 165 employees impacted by this decision will receive severance and employment transition support. The Memphis plant is operated by Kruger Products’ subsidiary, K.T.G. (USA) Inc. and after the asset shutdown will have a production capacity of 85,000 Metric Tonnes. “While this is a difficult decision, it is necessary to ensure the continued success, competitiveness, and growth of our Memphis plant. We have invested over $400 million (USD) at our Memphis plant since 2010 and it will continue to be an important part of our business. We would like to sincerely thank our employees for their ongoing dedication and hard work.” said Dino Bianco, CEO of Kruger Products.
Sole Source Capital LLC, an industrial-focused private equity firm, announced that its portfolio company, ID Images (“IDI”), a premier provider of product identification solutions, has acquired Lebanon, Tennessee-based Hickman Label. The acquisition marks the fifth add-on investment for IDI since it became a Sole Source Capital portfolio company in August 2021. Terms of the transactions were not disclosed. Founded in 2016, Hickman Label is a provider of highly-customized label solutions for the ondemand inkjet market. On-demand inkjet labels enable customers to print small batch, prime labels via their own desktop printers. In addition, Hickman’s robust ordering platform has the unique capability of integrating into its distribution customers’ websites utilizing a plug-in tool. The company sells to a mix of distributors and end users with more than 2,000 active customers across North America.
Lecta has decided to invest in a refuse-derived fuel (RDF) boiler for its Condat paper mill in France, which will be finished by mid-2024. This is a great energy transformation project that presents multiple environmental and economic advantages, in line with the Sustainability goals that Lecta is working on. The RDF boiler project is based on circular economy, as we will collect from local sources the waste with high biogenic content that will be used as fuel. This will help to reduce the volume of waste that currently cannot be recovered and would otherwise end up in landfills. Regarding energy, the new boiler will cover about 50% of the mill’s steam needs. This will increase the mill’s competitiveness because the generation of steam will be much less expensive than with natural gas. In addition, there will be a reduction of gas related CO2 emissions by a total of 55.000 tonnes per annum.
Mativ Third Quarter 2022 Highlights: *Sales increased 76% to $674.1 million with 12% constant currency organic sales growth, or 7% organic growth including negative currency impacts; strong sales growth in release liners, protective solutions, filtration, and paper and specialty packaging led the portfolio *GAAP EPS was $(0.43), and included significant expenses related to the Neenah merger closing and integration; Adjusted EPS was $0.74 *GAAP Operating Loss was $13.9 million; Adjusted Operating Profit was $65.5 million, up 24% on a comparable basis (see non-GAAP reconciliation) *Pricing actions across the Company driving top-line gains and offsetting raw material cost increases, with margin expansion across most categories
Third Quarter Highlights: *Net income from continuing operations of $109 million ($2.44 per diluted share) compared with $84 million ($1.89 per diluted share) in the second quarter of 2022 *Free cash flow3 (non-GAAP) of $114 million compared with $39 million in the second quarter of 2022 *Announced an agreement to acquire an uncoated freesheet mill in Nymolla, Sweden, for an attractive price of 150 million euros (approximately $150 million). Third Quarter Commercial and Operational Highlights: *Price and mix improved by $60 million versus the prior quarter, outpacing energy and input cost inflation *Operations and costs increased $3 million this quarter, while total planned maintenance outage expenses improved by $14 million *Input costs grew by $46 million versus the prior quarter, reflecting energy and input cost inflation
Financial summary for the quarter and full year: *EBITDA excluding special items - For the quarter US$391 million (Q4 FY21 US$177 million); For the year US$1,339 million (FY21 US$532 million) *Profit for the period - For the quarter US$26 million (Q4 FY21 US$35 million); For the year US$536 million (FY21 US$13 million) *EPS excluding special items - For the quarter 44 US cents (Q4 FY21 11 US cents); For the year 138 US cents (FY21 15 US cents) *Net debt US$1,163 million (FY21 US$1,946 million)
KPLP Q3 2022 Business and Financial Highlights • Revenue was $427.0 million in Q3 2022 compared to $391.4 million in Q3 2021, an increase of $35.6 million or 9.1%. • Net loss was $38.8 million in Q3 2022 compared to $9.3 million in Q3 2021, a decrease of $29.5 million. • Declared a quarterly dividend of $0.18 per share to be paid on January 16, 2023.
Third Quarter of 2022 Highlights *Third quarter 2022 (“Q3 2022”) net loss was $23.3 million or a $0.13 loss per share (diluted), compared to net earnings of $30.7 million or $0.16 per share in the second quarter of 2022 (“Q2 2022”). This quarter marked the one-year point for the Company operating its acquired forest- products assets. *Lumber continued to experience price volatility in Q3 2022, with an average selling price of $780/ mfbm compared to $1,255/mfbm in Q2 2022. Steeply rising interest rates and inflation reduced demand for lumber products from the second quarter onward, and remain a concern impacting US housing starts and homebuilders’ confidence. *On September 23, 2022, the Company entered into a credit agreement with a tier-1 Canadian bank for up to $140.0 million consisting of a term loan of $15.0 million and an asset-backed revolving credit facility of up to $125.0 million (collectively, the “Credit Facility”). This refinancing replaced a high yield secured term loan (US$87.3 million outstanding at extinguishment)and a $65.0 million asset-backed loan facility (undrawn at time of extinguishment). *On November 7, 2022, the Company announced the sale of its 203,000 acres of private forest land south of Kapuskasing, Ontario, to a third party for cash proceeds of $49.2 million.
Norske Skog Skogn and Statkraft have entered into a new long-term industrial energy agreement, which together with previous contracts, will secure large parts of the mill's energy supply on competitive terms until 2030. - This agreement will give the Skogn mill stable energy supply at predictable and acceptable prices. The agreement contributes to secure jobs and the long-term competitiveness of Skogn. At the same time, this is important for the forest sector in Central Norway, says Sven Ombudstvedt, CEO of Norske Skog and chairman of Norske Skog Skogn AS.
UPM Raflatac has received recognitions from RecyClass for multiple label products* with different adhesive technologies. The granted recognitions expand UPM Raflatac’s portfolio of RecyClass recognized PE (polyethylene) label materials and extends the portfolio to include PP (polypropylene) label materials. Both the PE and PP materials are recognized to be recycling compatible with colored HDPE (High Density Polyethylene) and PP packages. This means that the PE and PP labels can be recycled either in PP or HDPE colored recycling streams. The recognition for the PP recycling stream compatibility is first of its kind in the world. “At UPM Raflatac we are working towards a more sustainable and circular future. One big part of this is making consumer plastic packaging recyclable. We are proud that we are the first self-adhesive label company to provide RecyClass approved recycling compatible labeling solutions for PP packaging. According to extensive, independent testing done by Plastics Forming Enterprises (PFE), our unprinted labels have had limited impact on the recycling quality on both PP and HDPE colored recycling streams. This proves that our labels don’t hinder the recycling process or recyclate quality,” says Katja Kivelä, Business Director, Food and HPC, Films & Specials SBU EMEIA, UPM Raflatac.
Appvion, a Wynnchurch Capital, L.P. portfolio company, announced the addition of Nekoosa Coated Products, LLC to the platform. Headquartered in Nekoosa, Wisconsin, Nekoosa is a leading provider of specialty engineered materials for the graphics and commercial print markets in North America and Europe. Laurie Andriate, CEO of Appvion, said in a statement, “We are bringing together two great companies with complementary businesses and capabilities to accelerate growth and create additional value for our customers. I’m excited to welcome the Nekoosa team to Appvion.” “I’m excited for our teams as we move forward and write a new chapter together,” said Paul Charapata, CEO of Nekoosa. “We know each other well and will build upon our long history to proudly produce innovative products that help all our stakeholders succeed.”
Paraná exported more than one million tons of paper and pulp between January and July 2022, a growth of 21% compared to the same period in 2021. The consolidated number of 1,091,752 tons , according to data from SECEX (Special Secretariat for Foreign Trade and International Affairs), it is strongly encouraged by Klabin, which a year ago began its mega operation to transport and export the production of the Puma II Project via the port of Paranaguá, including an investment of more than R＄ 300 million at the Ortigueira Railway Terminal, in partnership with Brado and TCP, capable of transporting 125 thousand tons of pulp and paper in containers per month, connecting the Puma Unit to the port. Positioning itself today as the 5th largest exporting state of paper and cellulose in Brazil, Paraná has Klabin as the main company operating in the segment. The recent expansion of the Puma II, the result of R＄ 12.9 billion of investments, considered the largest private investment in the state, started its production and exportation in 2021, and already represents 6% of the total loads of paper and pulp shipped by the region. in the year 2022.
It is with great appreciation to their dedicated and committed volunteers that the Howe Sound Pulp & Paper Mill recently presented a $1,500 donation to the Sunshine Coast Search and Rescue (SCSAR) – a fantastic non-profit organization. The SCSAR relies on donations to maintain a state of readiness and help conduct life-saving operations within our community. Thank you for the work you do!
The company “Digibook Technology” chooses ICEWHITE IQ® from Koehler for the new edition of its promo book. Digital printing paper is ideally suited for machines developed by “Digibook Technology” for industrial book production as well as full-page printing. “Digibook Technology” is an ever-expanding medium-sized company based in Switzerland. For over 10 years, the company has been a leading provider of innovative machine program solutions for cost-effective, fully automated production of digitally printed hardcover books in short runs. “The digital printing paper from Koehler Paper impresses in this area with perfect processing properties and optimal quality for digitally printed applications,” says Jens Krüger, Sales and Partnering Manager at “Digibook Technology”.
Highlights - Three Months Ended September 30, 2022•Net sales of $3,712 million, up 9%;•GAAP Net income of $232 million, up 15%; GAAP earnings per share (EPS) of 15.5 cps, up 18%;•Adjusted EPS of 18.1 cps, up 10% on a comparable constant currency basis;•Adjusted EBIT of $392 million, up 9% on a comparable constant currency basis;• Quarterly dividend increased to 12.25 cents per share.
GreenFirst Forest Products Inc. is pleased to announce that its subsidiary, GreenFirst Forest Products (QC) Inc. has entered into an agreement to sell its interest in approximately 203,000 acres of private forest land to Perimeter Forest Limited Partnership for cash consideration totaling $49.25 million. The Property is located in the boreal forest south of Kapuskasing, Ontario. “The sale of these lands will allow Perimeter to foster long term ecosystem benefits on the Property and unlocks hidden value for GreenFirst shareholders.” Daniel Andres, Perimeter’s Chief Operating Officer noted that “GreenFirst’s legacy of good stewardship of the land combined with its attractive ecological features were value drivers for Perimeter”.
Ahlstrom perpetuates its 50-year commitment and support to the global Filtration industry by investing EUR 2 million in a new laminator at Louveira plant, Brazil. With a planned installation in 2023, the equipment is expected to be fully operational by Q1 2024. This strategic growth initiative will expand manufacturing capabilities at Louveira plant. It reinforces our ambition in local and regional filtration markets by offering customers shorter lead-times and improved local technical support.
Stora Enso invested EUR 80 million to centralise and modernise wood handling at Imatra Mills to enhance its production capabilities for premium packaging board. The investment will additionally reduce the consumption of process water and mitigate environmental impacts. The project, which started up in the first quarter of 2021, is now complete. The modernisation of Imatra Mills’ wood handling was completed on schedule. From now on, wood will be debarked and handled centrally on Kaukopää Mill’s new debarking line. The project included the installation of a third debarking line, improvements to chip handling systems, and modifications to the infrastructure of the existing wood yard. The centralised and modernised wood handling capacity will improve the stability and efficiency of the process.
Resolute Forest Products Inc. reported net income of $87 million, or $1.11 per diluted share, for the quarter ended September 30, compared to net income of $80 million, or $0.99 per diluted share, in the same period in 2021. Sales were $974 million in the quarter, an increase of $157 million from the year-ago period. Excluding special items, the company reported net income of $85 million, or $1.08 per diluted share, compared to net income of $67 million, or $0.84 per diluted share, in the third quarter of 2021. The company reported operating income of $124 million in the quarter, compared to $217 million in the second quarter. The $93 million reduction reflects lower realized prices in wood products ($185 million), partially offset by higher prices in the pulp, paper and tissue segments ($48 million), higher shipments in wood products ($40 million) and lower manufacturing costs ($12 million). The company also recorded higher selling, general and administrative expenses ($17 million), reflecting a higher share-based compensation expense and costs incurred in relation with the acquisition by the Paper Excellence Group.
THIRD QUARTER HIGHLIGHTS *Delivered strong performance in the quarter, with price realization helping offset inflation *Net sales of $539 million, up 20% compared to the third quarter of last year *Net income of $21 million, or $1.21 per diluted share *Continued to reduce net debt, with nearly $106 million reduced year to date
Seaman Paper Company is pleased to announce the acquisition of South Windsor, Connecticut-based Eagle Tissue LLC, a provider of tissue paper printing and converting services. “We believe this acquisition will greatly improve the service and production capabilities of both Seaman and Eagle, and we expect our customers to benefit from this enhancement,” said Ken Winterhalter, CEO of Seaman Paper. “Importantly, the team at Eagle Tissue shares our passion for people and the planet, and their hard work and dedication to customer relationships align perfectly with our core values at Seaman Paper.” “We are excited to join such an incredible team of like-minded people. We have grown our business and partnerships over the last 26 years, and I believe this is the perfect next step for Eagle,” added Bob Costa, CEO of Eagle Tissue.
Supremex Inc. announced the acquisition of substantially all of the assets of Royal Envelope Corporation (“Royal”), an envelope manufacturer and lithography company located in Chicago. This transaction was concluded for a total cash consideration of US$18.7 million on a cash-free and debt-free basis plus US$2.0 million for manufacturing equipment that was recently commissioned. “We are very excited with this acquisition that expands our reach in the fragmented U.S. envelope market and gives us a significant manufacturing presence in the U.S. Midwest,” said Stewart Emerson, President and CEO of Supremex. “Royal has established itself as one of the preeminent direct mail envelope manufacturers in North America, utilizing a modern fleet of envelope converting equipment, in-house lithographic printing and embellishing, targeting the financial services sector. We expect this acquisition will generate significant synergies and additional operating efficiencies throughout our network. We are pleased that John, Matt and Mike Pusatera will remain with the Supremex team.”
Interfor Corporation recorded Net earnings in Q3’22 of $3.5 million, or $0.06 per share, compared to $269.9 million, or $4.92 per share in Q2’22 and $65.6 million, or $1.05 per share in Q3’21. Adjusted net earnings in Q3’22 were $31.5 million compared to $280.2 million in Q2’22 and $46.7 million in Q3’21.
Overview • Q3 2022 reported operating income of $108.6 million; quarterly sales of $1.7 billion • Downward pressure on global lumber market fundamentals and pricing following highs earlier in the year • Reduced Western Canadian operating schedules & European seasonal downtime led to lower shipments • Strong global pulp fundamentals & improved pulp production following capital-related downtime • Shareholder net income of $87.4 million, or $0.71 per share
Overview • Q3 2022 reported operating income of $19 million; net income of $16 million, or $0.25 per share • Strong global pulp fundamentals principally led by supply shortages; significant uptick in NBSK pulp unit sales realizations • Improved pulp production following capital-related downtime earlier in the year
HIGHLIGHTS • Pulp sales of 2,797 thousand tons (+5% vs. 3Q21). • Paper sales³ of 331 thousand tons (-2% vs. 3Q21). • Average net pulp price in export market: US$821/ton (+25% vs. 3Q21). • Average net paper price3 of R$6,905/ton (+40% vs. 3Q21). • Pulp cash cost ex-downtime of R$883/ton (+24% vs. 3Q21). • Leverage ratio declines to 2.1 times in USD and 2.2 times in BRL, despite the investment cycle. • Cerrado Project completes 31% of physical progress and 24% of financial progress
Holmen and SCA have decided to initiate a pre-study to evaluate the viability of building a new, large-scale sawmill together in the northern Swedish community of Rundvik in the county of Västerbotten. The pre-study, which only concerns a production cooperation at the Rundvik Sawmill, is set to begin straight away and is expected to be completed in the spring of 2023. Holmen produces sawn and refined wood products for joinery, construction and builders’ merchants. Following the acquisition of Martinsons in 2020, Holmen also offer customised solutions in CLT and glulam for climate-smart, large-scale wood construction.
The Paper Excellence Group and Resolute Forest Products Inc. announced their intention to sell Resolute's Thunder Bay pulp and paper mill to further facilitate the regulatory review process. "Today's announcement is a clear demonstration of our commitment to timely complete the acquisition of Resolute," said Patrick Loulou, vice chair and chief strategy officer of the Paper Excellence Group. "This is a very hard thing to do, but we believe it is necessary in order to accelerate our strategic combination with the Paper Excellence Group," stated Remi G. Lalonde, Resolute's president and chief executive officer. "The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future with any company fortunate enough to have them as part of their organization."
January–September 2022 (1–9/2021) *Sales were EUR 5,239 million (4,457). *Operating result was EUR 986 million (652). Comparable operating result was EUR 966 million (694). *Result before taxes was EUR 961 million (616). Comparable result before taxes was EUR 934 million (658). *Comparable return on capital employed was 20.0% (16.4). *Net cash flow from operations was EUR 828 million (596). July–September 2022 (7–9/2021) *Sales were EUR 1,823 million (1,515). *Operating result was EUR 397 million (273). Comparable operating result was EUR 391 million (278). *Result before taxes was EUR 396 million (263). Comparable result before taxes was EUR 385 million (267). *Comparable return on capital employed was 23.5% (18.8). *Net cash flow from operations was EUR 372 million (222).
Third Quarter 2022 Financial Highlights: *Produced revenue of $895 million, an increase of 3% compared to the prior year, driven by higher TiO2, zircon and pig iron prices and higher pig iron volumes *Generated income from operations of $163 million and net income of $123 million *Delivered Adjusted EBITDA of $247 million and an Adjusted EBITDA margin of 27.6% *Invested $112 million in capital expenditures, primarily in our vertical integration and newTRON initiatives *Generated free cash flow of $25 million in the quarter *Returned $110 million to shareholders in the nine months ending September 30, 2022 in the form of share repurchases and dividends
Total European shipments of graphic papers in August 2022 were down 11.2% vs. August 2021 and were down 10.5% year-to-date. Total European shipments of newsprint in August 2022 were down 10.1% vs. August 2021 and were down 7.3% year-to-date. Total European shipments of sc-magazine in August 2022 were down 17.4% vs. August 2021 and were down 14.1% year-to-date. Total European shipments of coated mechanical reels in August 2022 were down 21.1% vs. August 2021 and were down 20.3% year-to-date. Total European shipments of uncoated mechanical (improved & others) in August 2022 were down 17.3% vs. August 2021 and were down 13.8% year-to-date. Total European shipments of coated woodfree in August 2022 were down 4.8% vs. August 2021 and were down 0.9% year-to-date. Total European shipments of uncoated woodfree in August 2022 were down 4.3% vs. August 2021 and were down 10.2% year-to-date.
Label and Graphic Materials *Reported sales increased 12% to $1.5 billion. Sales were up 20% ex. currency and 20% on an organic basis.*Reported operating margin increased 60 basis points to 14.3%. *Inflation continues to be significant in the company’s materials businesses, with it now anticipating more than 20% inflation in 2022 compared to prior year. Retail Branding and Information Solutions *Reported sales increased 17% to $623 million. Sales were up 22% ex. currency and 7% on an organic basis. *Reported operating margin increased 120 basis points to 12.2%. Industrial and Healthcare Materials *Reported sales decreased 2% to $192 million, up 5% on an organic basis. *Reported operating margin increased 100 basis points to 10.6%.
Suzano S.A. hereby informs its shareholders and the market in general the execution, on October 24th, 2022, of an Equity Purchase Agreement entered into by and between the Company, as Buyer, Kimberly-Clark Brasil Indústria e Comércio de Produtos de Higiene Ltda. (“KC Brasil”), as Seller, and KimberlyClark Worldwide, Inc. (“KC”) as guarantor, for the acquisition, by the Company, subject to certain conditions precedent, of all the quotas held by KC Brasil in a new company that will be the holder of the assets related to the business of manufacturing, marketing, distributing and/or selling of tissue products, including toilet paper, paper towels, napkins, tissues, as well as other paper products in Brazil, including ownership of the brand “NEVE”. As part of the deal, the other global brands currently used by KC Brasil will be licensed to the Company for a specific term. The main asset included in the Transaction consists on a tissue production plant, located in the municipality of Mogi das Cruzes, in the State of São Paulo, with an annual production capacity of approximately 130 thousand tons. The Transaction is aligned with the Company’slong-term strategy to “advance in the links of the value chain”, as is widely public knowledge, representing geographic complementarity and synergy gains with its current consumer goods business (tissue).
Q3 highlights *Sales increased by 36% to EUR 3,420 million (2,523 million in Q3 2021) *Comparable EBIT grew by 84% to EUR 779 million, 22.8% of sales (424 million, 16.8%) *Operating cash flow was EUR -201 million (318 million), impacted by cash flow from energy hedges. Other operating cash flows were largely as expected *The rise in energy futures prices continued, causing short-term cash outflow impact from energy hedges. Respectively, it indicates the strong earnings potential of UPM Energy *Sales prices increased in all business areas and more than offset the negative impact of higher variable costs *Cash funds and unused committed credit facilities totalled EUR 5.2 billion at the end of Q3 2022. UPM signed EUR 4.3 billion of credit facilities during Q3 *In August, EcoVadis recognised UPM on Platinum level based on the company’s sustainability performance *In September, UPM Raflatac completed the acquisition of AMC AG *In October, the new deep sea pulp terminal in the port of Montevideo in Uruguay was inaugurated
Key highlights Q3: Strong organic* and currency neutral sales growth of 20%; Record underlying EBITDA performance; Price and mix management more than offset cost inflation; Excellent cash delivery and all-time low leverage. Quarterly data Q3: Net sales increased by 82% to SEK 11,814 million (6,494), whereof Billerud North America accounted for SEK 3,718 million; Operating profit was SEK 1,536 million (639); Net profit was SEK 1,347 million (477)
Executive Summary *Third quarter 2022 net sales of $5.1 billion increased 1 percent compared to the year-ago period, including organic sales growth of 5 percent. *Diluted net income per share for the third quarter was $1.38 in 2022 and $1.39 in 2021. *Third quarter adjusted earnings per share were $1.40 in 2022, down 14 percent compared to $1.62 in 2021. Adjusted earnings per share exclude certain items described later in this news release. *The company continues to target full-year 2022 organic sales growth of 5 to 7 percent and expects adjusted earnings per share at the lower end of $5.60 to $6.00 range
Delaware-based global water technologies leader Solenis has chosen its hometown of Wilmington as the site for a $40 million research and development expansion. In response to increasing market demand for its sustainability-focused products and expertise and with an eye toward long-term growth, Solenis will expand its R&D operations with a move to the 100,000-square-foot Building 713 at Chestnut Run Innovation and Science Park (CRISP). CRISP is a former DuPont campus that MRA Group is developing into a hub for a range of life sciences and advanced chemical companies. The new CRISP facility will provide Solenis with 20,000 square feet more lab space than the company currently has at its existing R&D center on Ashland’s Wilmington campus. In addition to more space, the larger, upgraded site will allow Solenis to add up to 46 new highly skilled Delaware jobs — including lab technicians, scientists and R&D supervisors — within the next three years.
Committed to bringing to market innovative solutions that increase productivity and sustainability, Klabin announces the launch of PineFluff eXcel, a fluff pulp made from a mix of fibers (eucalyptus hardwood pulp and pine softwood pulp) targeting the hygiene products market (baby and adult diapers, sanitary pads, pet mats, etc.). A global pioneer in combining pine and eucalyptus fibers, the solution expands alternatives for innovative designs that improve aspects such as fluid retention and distribution as well as softness of the end product reaching consumers. Laboratory studies showed excellent potential for defibrated material, which enhances the perception of softness to touch and comfort during product use. The solution also brings competitive advantages for distribution logistics, packaging optimization and lower energy consumption during production.
Paper Excellence on 10/21/2022 announced that one of the unions at its Crofton mill, the Public and Private Workers of Canada (PPWC) local 2, has given 72-hour strike notice, putting the union in a strike position on Saturday October 22, 2022. Since July 2022, the company has been negotiating with PPWC local 2, which represents 370 of the 575 employees that work at the site. Those discussions have recently hit an impasse, and the company’s mediation request was rejected by the union. The negotiations committee will continue to meet as they try to resolve the situation. To protect the health and safety of employees, the integrity of the local environment, and preserve the company’s assets at Crofton, Paper Excellence has begun a controlled and orderly shutdown of the kraft pulp mill and mechanical paper operations.
Q3/2022 (year-on-year) *Sales increased by 15% to EUR 2,963 (2,577) million. *Operating profit (IFRS) increased to EUR 511 (386) million. *EPS was EUR 0.47 (0.38) and EPS excl. fair valuations (FV) was EUR 0.47 (0.37). *Cash flow from operations amounted to EUR 639 (485) million. Cash flow after investing activities was EUR 489 (347) million. Q1-Q3/2022 (year-on-year) *Sales were EUR 8,816 (7,445) million. *Operational EBIT was EUR 1,536 (1,102) million.
Smurfit Kappa’s Townsend Hook paper mill in the UK has introduced a new state-of-the art drying process innovation to reduce energy consumption and CO2 emissions. Traditionally, paper drying is one of the most energy-intensive aspects of the manufacturing process. The innovative new processes implemented have resulted in a 6% reduction in steam energy consumption and a 5% reduction in total CO2 emissions from the Kent-based paper mill. A ‘digital twin’ approach was used in the project to create a virtual representation of the drying system to simulate how it would perform. An early example of digital twin technology usage was during the rescue mission of the Apollo 13 spacecraft in 1970 when computer models were used to determine flight characteristics far from earth.
Interfor Corporation announced plans to reduce its lumber production output in the fourth quarter of 2022 by approximately 200 million board feet, or 17% of quarterly capacity, as current economic conditions and market uncertainty have led to reduced lumber demand. This temporary reduction in output is expected to be spread across each of the Company’s operating regions, primarily timed around U.S. Thanksgiving and Christmas holiday periods, and used to accelerate ongoing capital and maintenance projects. The Company’s lumber inventories are currently within normal volume parameters, and these plans are expected to maintain the balance between production and market demand through the remainder of 2022. The Company currently expects to resume its normal operating schedule in January 2023, but will closely monitor market conditions and adjust its production plans accordingly.
BIXOLON has certified the blue Blue4est® thermal paper for use in its premium SRP-380 thermal receipt printer. BIXOLON’s SRP-380 printer delivers perfect printing results every time on the blue thermal paper thanks to the smart media function, a special Blue4est® setting. The blue receipt is continuing its ascent as more and more companies put a premium on sustainability as they respond to their customers’ demand for more environmentally conscious products and services. Consumers can easily recognize that the receipts are environmentally friendly given the paper’s blue color. This is a result of the novel way in which the paper works: Koehler’s Innovation & Technology division developed a process which completely eliminates the need for color developers, meaning the Blue4est® till receipt is fully recyclable and can be disposed of as wastepaper.
Norske Skog’s EBITDA in the third quarter of 2022 was NOK 508 million, a decrease from NOK 905 million in the second quarter of 2022. The third quarter EBITDA was impacted negatively by reduced volumes and higher fixed costs per tonnes following the closure for conversion of PM3 to containerboard production at Norske Skog Bruck, reduced CO2 compensation in Norway and significant increases in energy and raw materials, which more than offset the increase in sales prices for all grades. The containerboard conversion projects are progressing as planned. “Despite the turbulence in the energy and raw material markets, we have been able to sustain satisfactory margins on our publication paper products. Our conversion projects at Bruck and Golbey are progressing as planned, and will contribute to a long-term sustainable industrial platform,” says Sven Ombudstvedt, CEO of Norske Skog.
*Operating profit for January–September 2022 was SEK 5 905 million (January–September 2021: 2 725). Excluding the item affecting comparability, operating profit increased by SEK 2 764 million to SEK 5 640 due to higher selling prices, while cost inflation was limited by our high level of wood and energy self-sufficiency. *Compared with the second quarter, operating profit for the third quarter decreased by SEK 180 million to SEK 1 921 million. A weaker wood products market had an adverse impact, but this was largely offset by higher earnings in other business areas. *Profit after tax for January–September amounted to SEK 4 606 million (2 136), which corresponds to earnings per share of SEK 28.5 (13.2).
UPM Communication Papers is collaborating with HP Inc to pilot a new generation of digital printing papers specifically designed for high-speed inkjet printing technology. The new portfolio includes four treated, coated grades, that provide productive and smooth printing, excellent image production and ease of use for customers. The ColorPRO papers are compatible with all existing HP Inkjet presses, as well as the newest generation that will be unveiled at PRINTING United Expo in Las Vegas (October 19th-21st, 2022).
Canfor Pulp Products Inc. is announcing a temporary curtailment of its Intercontinental Pulp Mill due to the lack of available economic fibre. Following its annual turnaround maintenance that began on September 24, 2022 and lasted for two weeks, the facility has implemented a two-week curtailment. Regular operations are expected to resume on October 24, 2022. In total the four weeks of downtime is reducing Canfor Pulp's production output by approximately 28,000 tonnes of market kraft pulp. "Despite strong global pulp markets, we are experiencing a shortfall of economic fibre in British Columbia. The fibre for pulp mills is increasingly constrained due to the impacts of the decreasing allowable annual cut, the end of the Mountain Pine Beetle epidemic, wildfires and reduced sawmill capacity in the province," said Kevin Edgson, President & CEO, Canfor Pulp. "We regret the impact of the downtime on our employees and are working to support them through this time."
In accordance with the terms of his service contract, UPM’s President and CEO Jussi Pesonen has announced that he will exercise his right to retire from UPM during 2024. "In 2024 I will have served UPM as President and CEO for 20 years and spent a total of 37 years with the company. The announced timetable aims to secure the success of the strategic growth initiatives as well as business performance over the coming few years. However, it is also time to start planning for the next stage,” says Jussi Pesonen. The schedule also allows UPM’s Board of Directors sufficient time for implementing the succession planning process.
Drytac is delighted to announce the global availability of its improved ViziPrint Impress Clear UVL film. ViziPrint Impress Clear UVL is an optically clear gloss PET printable film designed for trouble-free installation of graphics onto glass and other smooth, flat surfaces. It incorporates Drytac’s low tack hybrid adhesive technology, creating a strong bond in both high and low temperatures without leaving residue behind when removed. Drytac has now incorporated a new thinner face film, which makes the media easier to work with. Compatible with UV and Latex printing, ViziPrint Impress Clear UVL uses a mechanical bond to gently adhere images to surfaces and can be repositioned and reapplied multiple times. Drytac’s unique adhesion technology eliminates bubbling and ensures the product is unaffected by moisture.
BillerudKorsnäs is simplifying its name to Billerud to cater to its international customers. As a leading supplier of virgin fiber-based paper and packaging materials, the name change is fully in line with the company’s strategy to expand into North America and continue driving sustainable growth in global markets. It is simply easier to say Billerud. ”We are now ready to meet the challenges of the future as one company: Billerud. One year ago, a clear strategic plan was drawn up with the aim of achieving profitable and sustainable sales growth until the year 2030 and to grow in North America. Today we change name to Billerud. The name change is a natural step on our strategic journey”, says Christoph Michalski, President and CEO at Billerud.
Underlying EBITDA from continuing operations (Group excluding the Russian operations) for the third quarter was €450 million, up 55% compared to the prior year period (Q3 2021: €290 million). Higher average selling prices and overall volume growth more than offset significant cost pressures. Corrugated Packaging benefitted from higher average selling prices compared to the prior year period, leveraging our innovative product portfolio and strong customer proposition. Corrugated Solutions box volumes were lower in the quarter driven by generally softer demand when compared with the strong volume growth delivered in the prior year. Flexible Packaging performed well, with resilient demand during the period. Price increases across our range of kraft papers and packaging products were implemented during the quarter, where not fixed by annual or semi-annual contracts. Uncoated Fine Paper achieved higher average selling prices and grew pulp volumes in the quarter while uncoated fine paper volumes were lower. The non-cash forestry fair value gain was higher.
The Norwegian National Budget for 2023 proposes a reduction of the CO2 compensation to Norwegian industry of approximately NOK 2.7 billion annually. Norske Skog expects a reduction in the CO2 compensation payment to be received from 2023 and onwards of approximately NOK 140 million annually. Yesterday, 6 October 2022, the Norwegian government presented its National Budget proposal for 2023. The budget proposes to reduce the CO2 compensation to Norwegian industry. The CO2 compensation is an EU initiative, which can be implemented at the discretion of each individual member country, designed to mitigate the impact of high CO2 allowance (EUA) prices on electricity costs. The overall ambition is to avoid transfer of energy intensive industries to countries with less strict climate policies outside the EU, this has been termed Carbon Leakage.
Billerud Americas Corporation, a leading producer of pressure sensitive (PS) face paper and release liner in North America, announced it will investigate a relaunch of its OptiLabel™ HB product made at its Quinnesec Mill on the No. 41 paper machine. "We launched OptiLabel™ HB made at our Quinnesec Mill in 2020 during the peak of the COVID pandemic to support demand in the PS marketplace, so, we have already successfully made a significant volume of this product," said Senior Vice President of Marketing Aaron Haas. "By making OptiLabel™ HB at Quinnesec, we hope to provide an additional domestic supply source for PS paper. We already make a great deal of OptiLabel™ HB and UniSil™ release liner on our No. 3 paper machine at our Escanaba Mill, and this additional machine will give us more manufacturing flexibility to support the PS marketplace for both release liner and face paper supply."
Sylvamo is announcing it reached an agreement and completed the sale of its Russian operations to Pulp Invest Limited Liability Company for $420 million. After foreign currency exchange rates and transaction fees, Sylvamo received approximately $390 million in cash proceeds. "We made a principle-based decision to exit Russia and believe Pulp Invest is the best option for our Russian colleagues and assets," said Jean-Michel Ribiéras, chairman and chief executive officer. "We intend to use $325 million of the proceeds to repay debt."
Paper Excellence announced the indefinite curtailment of its paper operations at the Catalyst Crofton facility starting in early December 2022. Paper markets in China served by the mill have significantly weakened while there have been substantial cost escalations for chemicals, energy and wood fibre used at Crofton. The intersection of these pressures has materially impacted the financial viability of the paper operation. We expect to operate Crofton’s paper machines for 60 days following this announcement. We will be working closely with both unions as this decision affects about 80 Unifor employees and 70 PPWC employees. We recognize the hardship this will have on both our employees and the Cowichan Valley. We hope to minimize these impacts through union discussions that will consider secondments, utilization of earned time off and employment insurance. The mill’s pulp operations will continue production during the paper curtailment. Paper Excellence is working with both Provincial and Federal Governments while it conducts studies at the Crofton facility to consider accelerating its conversion into natural food and packaging grades.
Stora Enso’s new production site for cross-laminated timber (CLT) in Ždírec, the Czech Republic, was inaugurated today. Following a EUR 79 million investment, the new CLT site is one of the most modern in the world, supporting Stora Enso’s strategy of growth within wooden building solutions. With the new site, Stora Enso’s CLT production capacity will grow substantially to meet the increasing demand for sustainable, cost-effective and renewable building materials. The project proceeded according to plan from the investment decision made in September 2020 to the start of production in the third quarter of 2022, when the first panel was manufactured. CLT represents a modern and sustainable building material that allows construction with great precision and speed. The estimated annual production capacity will be approximately 120,000 m³ after ramp-up.
This month marks a new milestone for paper production for Willamette Falls Paper Company (WFPC). On October 1, WFPC expanded its capacity on a third paper machine to manufacture additional coated freesheet paper. Previously only running at 50% capacity, this paper machine is now operating at 100% capacity to meet customer demand. This has increased our ability to produce additional tons of 60# and 70# text, as well as a new higher yield 75# Sonoma® coated grade.
The current market environment is characterised by very high production costs, in particular energy costs, and weaker demand primarily due to destocking in the value chain. Therefore, Lecta has decided to take temporary downtime at several of its paper mills. Downtime will be scheduled in such a way that high service levels for customers will be maintained. The company remains confident in its financial outlook for Q4.
Pixelle Specialty Solutions LLC has announced plans to restart a paper machine in the Chillicothe, Ohio facility. The company is investing $21 million to upgrade and restart the #24 paper machine (PM24) and plans to hire 52 full-time employees to operate and maintain it. “The current supply-demand balance in the market and our Ohio facility’s competitive, integrated cost structure has afforded us the opportunity to restart paper machine #24 (PM24) at the Chillicothe mill. This rebuilt machine will add 75,000 tons per year of capacity to serve our customers in the food packaging, commercial inkjet and other specialty paper segments. These are growing attractive markets where Pixelle has leading positions,” said Timothy R. Hess, Pixelle’s President and CEO. Several upgrades in the current rebuild will enable Pixelle to produce an attractive product mix for its customers. Pixelle expects the machine to be fully online shipping quality specialty papers in early first quarter 2023.
UPM inaugurates today its new pulp terminal in the port of Montevideo, Uruguay. This investment of approximately USD 280 million is a fundamental part of UPM’s USD 3.47 billion growth investment in Uruguay that includes a state-of-the-art pulp mill in Paso de los Toros, new eucalyptus tree nursery as well as local community investments in Paso de los Toros. “This is a significant milestone in our growth project in Uruguay. The new pulp terminal with direct connections from the new pulp mill and to the global markets plays a key role in the growth and competitiveness of UPM’s pulp business,” says UPM President and CEO Jussi Pesonen. “The public infrastructure investments to the deep sea port and railway improve the competitiveness of all export sectors in Uruguay.”
Paper Excellence announced that the company’s Prince Albert Pulp Inc mill restart project has submitted its environmental impact statement (EIS) to the Saskatchewan Ministry of Environment. The EIS is a critical part of the environmental permitting process and marks another significant step in the process towards restarting the dormant pulp mill, which has been down since 2006. “Submitting our environmental impact statement is a critical step forward for the project,” said Carlo Dal Monte, Project Operations Director for the Prince Albert Pulp Inc. restart. “We look forward to the Ministry of Environment’s thorough and timely review of our EIS.” Paper Excellence recently commissioned public opinion polling that showed 93 percent of Saskatchewan residents support the restart of the pulp mill.
International technology group ANDRITZ has received an order from Bracell SP Celulose Ltda. to supply four PrimeLineTM W 2000 tissue production lines to its mill located in Lençóis Paulista, São Paulo. Start-up is scheduled for 2024. The four tissue machines are of the type PrimeLineTM W 2000, with a design speed of 2,100 m/min and a working width of 5.68 m. They are equipped with fully cantilevered shoe presses for gentle dewatering and easy maintenance and 18 ft. steel Yankees with steam-heated hoods for energy-efficient drying. The new tissue mill will be self-sufficient in steam and electricity consumption for the drying process, making it one of the tissue mills with the smallest CO2 footprint in the world.
The new state-of-the-art pine sawmill in Rauma in Finland, owned by Metsä Fibre, part of Metsä Group, has moved from production test run to continuous sawn timber production. The sawmill is operating continuously in three shifts. “The Rauma sawmill implements Metsä Group’s strategic goals of increasing the value of Finnish forests, growing profitably with our customers, enabling fossil free production and increasing the production of products that store carbon for a long time. The role of the mechanical forest industry is very important for our whole value chain, and I’m happy that new ways to significantly improve performance have been found also there,” says Ilkka Hämälä, President and CEO of Metsä Group.
Interfor Corporation announced that it has reached an agreement with an affiliate of the Kilmer Group to acquire 100% of the equity interests in the entities comprising Chaleur Forest Products. Chaleur owns two modern and well-capitalized sawmill operations located in Belledune and Bathurst, New Brunswick, with a combined annual lumber production capacity of 350 million board feet. Chaleur also operates a woodlands management division based out of Miramichi that manages approximately 30% of the total Crown forest in New Brunswick. This division provides a secure source of fibre supply for the sawmill operations as well as a stable, long-term stream of cash flow from third-party log sales, licence management fees and silviculture activities.
Solenis and Kolb Distribution Ltd. have announced that Solenis has entered into a definitive agreement to acquire the latter’s paper process chemicals business. The deal includes a long-term supply agreement, in which the KLK Kolb Group will manufacture paper process chemicals exclusively for Solenis. KLK Kolb Group offers a broad portfolio of paper process chemicals, including deposit control, cleaning and foam control agents primarily for the EMEA pulp and paper markets. Its wide range of manufacturing process technologies, including alkoxylation, esterification and dispersion, enables KLK Kolb Group to offer a broad range of products, as well as offer customized solutions for its customers.
In October 2021, Mohawk Fine Papers, Inc., North America’s largest privately owned manufacturer of fine papers and envelopes, introduced Paper With a Plan: A new attribute-driven approach to specifying paper. Mohawk refined and reorganized its paper portfolio into 5 distinct Collections that help make choosing paper by its properties and attributes easier. Mohawk’s paper grades are now grouped into the Beautiful, Sustainable, Expressive, Elevated, and Practical Collections. Mohawk recognizes that sustainability has never been more important to brand storytelling. As sustainability stories have become more sophisticated, so have the material inputs used that drive their narratives. Experience Mohawk’s Sustainable papers as they were intended with the release of the “The Material is the Message” inspiration piece.
Metsä Tissue's renewed tissue paper machine at the Mänttä mill has moved from the trial run phase to continuous production. The renewed paper machine will be used to produce fresh fibre-based tissue paper products especially for the Finnish market. The upgrade will increase the production capacity of the tissue paper machine by 15 per cent, as well as improve product quality and energy and production efficiency. The renewal is an investment in increasing the production and improving the quality properties of Lambi, Serla and Katrin tissue paper products manufactured locally in Mänttä. The first products were trialled in June and the softness and strength of the paper have further improved. The new technology also enables tissue paper to be produced more energy-efficiently than before. The main machine supplier for the renewal was Valmet.
Sappi Limited announced today that it has concluded an agreement with AURELIUS Investment Lux One S.à.r.l. regarding the divesture of its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany and its Kirkniemi Mill in Finland. Steve Binnie, CEO of Sappi Limited commented: “We are very happy to have reached agreement with AURELIUS to take ownership of the three mills. Although they no longer fit in Sappi’s portfolio, they are strong assets with good people." The mills included in the sale: Sappi Maastricht Mill produces 260,000 ton per annum (tpa) of coated woodfree paper and paperboard mainly sold to printers and packaging converters globally Sappi Stockstadt Mill is an integrated pulp and paper mill located in Germany, producing 145,000 tpa of pulp which is used to produce 220,000 tpa of coated and uncoated woodfree paper mainly sold into the European print market. Sappi Kirkniemi Mill is an integrated pulp and paper mill located in Finland, producing 300,000 tpa of bleached mechanical pulp which is used to produce approximately 750 000 tpa of a variety of coated mechanical paper grades used in the print publication industry globally.
Total European shipments of graphic papers for July 2022 were down 12.0% vs. July 2021 and were down 10.5% year-to-date. Total European shipments of newsprint for July 2022 were down 11.0% vs. July 2021 and were down 7.4% year-to-date. Total European shipments of sc-magazine for July 2022 were down 27.5% vs. July 2021 and were down 13.6% year-to-date. Total European shipments of coated mechanical reels for July 2022 were down 14.8% vs. July 2021 and were down 20.2% year-to-date. Total European shipments of uncoated mechanical (improved & others) for July 2022 were down 19.7% vs. July 2021 and were down 13.3% year-to-date. Total European shipments of coated woodfree for July 2022 were down 5.7% vs. July 2021 and were down 0.3% year-to-date. Total European shipments of uncoated woodfree for July 2022 were down 5.8% vs. July 2021 and were down 11.0% year-to-date.
Modernisation of the power plant boiler at Sappi’ s production site in Gratkorn, Austria, is finally completed. As of now, more sustainable fuels will be used instead of coal to power the paper machines at the company’s largest mill in Europe. During a transitional phase, the new state-of-the-art boiler will run on natural gas and biomass. In the future, predominantly biomass will be used. “Our ultimate goal is to use only sustainable and renewable fuels. This will make us more independent in the future, especially in times of gas shortages and uncertainty on the energy market,” explains Sappi Gratkorn Managing Director Max Oberhumer. By entirely phasing out coal, the Gratkorn plant is making an important contribution to climate protection and reducing its greenhouse gas emissions by roughly 30 per cent. The project is a top priority on Sappi Europe’s sustainability agenda. The 35 million euro investment represents a clear commitment to the Gratkorn site and shows that climate and environmental protection are deemed pivotal in the paper industry. More information on the shift from coal to renewable resources at Sappi’s Gratkorn mill is available at: www.sappi.com/co-creating-a-shift-from-coal-to-renewables-at-gratkorn-mill
UK paper making has been dealt a further blow after Arjowiggins Group’s UK operations – including the historic mills at Stoneywood and Chartham – were placed into administration after the business became unsustainable in the face of spiralling costs for energy and raw materials. Administrators Blair Nimmo and Alistair McAlinden from Interpath Advisory were appointed joint administrators at ten Arjowiggins Group UK subsidiary companies on the afternoon of 22 September 2022. An MBO team acquired the business and assets of the Arjowiggins Fine Papers and Arjowiggins Chartham businesses in September 2019, just a few months before the Covid-19 pandemic struck. The deal came about after a complex saga involving the insolvency of its former French parent group and was supported by Scottish Enterprise, which provided £7m of funding. The Stoneywood mill has been making paper since 1770 and specialises in fine papers, while Chartham has been in operation since 1738 and makes translucent papers. Stoneywood’s brands for graphics and packaging include Conqueror, Curious Collection, Keaykolour and Delos. It had also diversified into making casting papers, security papers and smart papers for printed electronics.
The Fedrigoni Group and Mohawk Fine Papers, Inc. have entered into a manufacturing agreement to expand the reach of their specialty papers globally. Shared core values of craftsmanship, innovation, and sustainability make this a natural and valuable opportunity for both organizations. The Fedrigoni Group is the first global player in the manufacture of high added value specialty papers for luxury packaging and other creative applications and world leader in premium labels and self-adhesive materials. Mohawk, founded in 1931, is family owned and operated, manufacturing some of the world's most recognized specialty papers for designers, consumer brands, and printers. Mohawk's early innovation in digital printing and sustainability secured its leadership position in these two significant growth sectors. “The agreement with Mohawk is a further element in our growth strategy in a market with excellent prospects such as specialty papers, especially for luxury packaging, where we intend to consolidate our global primacy. Many synergistic opportunities are also present for our selfadhesive materials division, which will expand its leading position in premium labels for the wine market in the US", comments Marco Nespolo, CEO of Fedrigoni Group. "This is an important step forward to reinforce our geographical penetration in the United States, where we will directly produce and distribute high value-added papers, leveraging all possible industrial and commercial synergies with our Group. We will also better support the ESG strategies of our clients, especially those in the luxury sector by giving them the option of moving to near shoring rather than global purchasing”.
Pixelle Specialty Solutions LLC has announced the mill located in Jay, ME will close in the first quarter of 2023. The mill employs approximately 230 people who will be affected by the closure. The mill produces specialty label and release papers, as well as industrial and packaging solutions for eCommerce and food service. Its two paper machines have a capacity of 230,000 tons annually. The mill has endured significant business and financial challenges that were compounded by the April 2020 rupture of one of its pulp digesters and catastrophic damage impacting the continued operability of the entire pulp mill. No one was injured in the event, and the mill subsequently transitioned into higher margin specialty products and invested capital to increase operational efficiencies while operating on purchased pulp. The company intends to work with its customers where possible to transition their products to other Pixelle mills or to plan for volumes of orders in the limited production leading up to mill closure.
Canfor Corporation is announcing a temporary reduction in production in British Columbia (BC) due to challenging market conditions. The production capacity will be reduced through a two-week curtailment beginning September 26, 2022 at the majority of solid wood facilities in BC and will be followed by the resumption of reduced operating schedules until the end of 2022. This is expected to result in a reduction of approximately 200 million board feet of production capacity. “We are temporarily curtailing production in BC due to reduced market demand. We will leverage our global operating platform to prioritize the requirements of our customers,” said Don Kayne, President and CEO, Canfor. To limit the impact on employees, they will have the opportunity to work during the downtime to complete maintenance projects and other site activities.
Stora Enso has signed an agreement to divest its Nymölla paper production site in Sweden, and all related assets to Sylvamo, a US-based global producer of uncoated paper. The enterprise value is EUR 150 million. Closing is expected in the beginning of 2023, subject to regulatory approvals. The Nymölla site’s capacity is 485,000 metric tonnes of woodfree uncoated office papers, with Multicopy as the leading paper brand. Based on the 2021 figures, the divestment is expected to reduce Stora Enso’s annual sales by approximately EUR 290 million. Stora Enso will, at closing, book a one-time disposal loss of approximately EUR 20 million in its IFRS operating profit, as an item affecting comparability, subject to closing date adjustments.
UPM Raflatac has completed the acquisition of AMC AG (Advanced Methods of Coating). The acquisition announced in May 2022 was closed on 15 September 2022 after regulatory clearances. AMC AG employs more than 300 people and has two production sites in Northern Germany, in Kaltenkirchen and in Hagenow. UPM Raflatac expects to realize significant synergies through the acquisition. By joining forces with AMC AG UPM Raflatac will accelerate its growth and expand its product portfolio. New product areas include Viscom/Graphics materials which are currently sold under the Intercoat brand, and removable self-adhesive stationary products under the brand names Global Notes and Print Inform. Furthermore, the transaction will strengthen UPM Raflatac’s position in Central Europe.
Sappi Europe is set to extend its capacity at its mill in Gratkorn, Austria, enabling the mill to also manufacture wet-strength label papers. The double-digit million-euro investment in a state-of-the-art technical infrastructure will drive expansion of the site – and establish Sappi as a leader in the label sector for the long term. • Innovation through investment: expansion of the Gratkorn mill’s technical infrastructure • Increased demand for high-quality label papers • Guaranteed production and delivery reliability
Stora Enso has signed an agreement to divest its Maxau paper production site in Germany, and all related assets to Schwarz Produktion, part of Schwarz Group, one of the top retailers in the world. The enterprise value is approximately EUR 210 million. Closing is expected in the beginning of 2023, at the latest, subject to regulatory approvals. This transaction is part of the earlier announced plan to divest four of Stora Enso’s five paper production sites. In line with its strategy, Stora Enso’s focus is on long-term growth potential for its renewable products in packaging, building solutions and biomaterials innovations. Schwarz Produktion is expected to assume ownership for the Maxau site in the beginning of 2023. Schwarz’s plan is to continue paper production at the site, and the 440 employees belonging to the mill organisation at Maxau will be part of the transaction. Stora Enso will continue to operate the Maxau site and serve its supercalendered paper (SC) customers until the closing of the transaction.
As of September 1st, Technicote, a North-American company specializing in self-adhesive solutions, is the latest addition to Beontag’s growing family of international companies. The acquisition marks Beontag’s entry to the North American market, and is another step in its global expansion and internationalization strategy initiated in 2020. Besides the United States, Beontag has operations in other countries, such as Argentina, Uruguay, France, Italy, Sweden, Finland, among others. This acquisition is more than Beontag wanting to enter a new market. It was also motivated because of the broad network of customers that Technicote has had for more than four decades and the diversity of products they offer in the segments of graphic and self-adhesive materials. Their portfolio offers a wide range of self-adhesive rolls and sheets, as well as solutions in silicone coated release liners and is a perfect fit for Beontag’s expanding international portfolio of products. Technicote will also be integrating many of those products into their North American range.
Along with members of the community, provincial and federal elected representatives, staff at Meadow Lake Mechanical Pulp mill (MLMP) and Paper Excellence Canada today celebrated 30 years of the pulp mill being in operation. The mill is located just east of Meadow Lake and has been operational since 1992. MLMP was the first mill Paper Excellence Canada acquired in 2007. The mill employs over 200 full-time employees, creates approximately 1,300 direct and indirect jobs, and creates approximately $470 million in economic activity annually. MLMP produces approximately 400,000 tonnes of bleached chemi-thermal mechanical pulp (BCTMP) annually. BCTMP is used to make a variety of products from tissue and paper towel to food and board packaging.
The world’s first autonomously operated logyard cranes have been successfully lifted up at Metsä Fibre’s bioproduct mill in Kemi, Finland. Supplied by international technology group ANDRITZ, the delivery includes two 2 x 25-ton cranes on a 540 m long runway with a storage capacity of approximately 120,000 m3. The cranes will handle approximately 7.6 million m3 wood/year shipped on trucks and trains as well as handling log storage and wood feeding to the pulping process. The cranes feature the latest in Artificial Intelligence, thus optimizing log handling, minimizing wood losses and securing environmentally friendly and cost-effective operation when compared to traditional log-handling solutions. The fully autonomous logyard cranes featuring Artificial Intelligence are part of the comprehensive ANDRITZ portfolio of sustainable solutions and products that help customers reaching their goals with regard to environmental protection and sustainability
365 days of operation and a trajectory that stands out for its excellent performance. One year after the start of activities for the first paper machine (PM) of the Puma II Project - the biggest investment in Klabin's history, which includes the construction of two paper machines with integrated pulp production -, the MP27 surpassed the mark of 330 thousand tons of Eukaliner® and Eukaliner White® produced and sold to the domestic and foreign markets, reinforcing the Company's vocation for the development of sustainable and innovative solutions in paper and paper packaging in Brazil. The machine, which has the capacity to produce 450,000 tons per year, surpassed the learning curve expected for the period. Developed and patented by Klabin, the Eukaliner® product range, produced at MP27, is the first in the world with kraftliner paper made 100% from eucalyptus fiber, which guarantees advantages such as the optimization of the forest area necessary for its production. (less resource for manufacturing the same volume of paper), in addition to properties such as a more robust structure, which allows for a reduction in the weight of corrugated cardboard packaging with increased resistance and better printing quality.
Suzano S.A. informs its shareholders and the public that, regarding the project “Partial retrofit of the pulp production plant located in Aracruz involving the replacement of parts in the recovery boiler and installation of a crystallization system”, as disclosed in the Material Fact notice dated December 19, 2019, the following is planned during its implementation phase in the fourth quarter of 2022: • Temporary downtime of the A line production for around 45 days due to interventions in the recovery boiler; • No adjustments to the Company’s original operating plan for 2022, which will ensure that clients’ needs are fully met without any changes to the commercial strategy. The project’s capital investments amount to R$298 million, of which R$188 million was already invested by July 2022, with the remaining amount considered in the capex estimate for the year disclosed by the Company on July 27, 2022.
Canfor Corporation is announcing reduced operating schedules effective September 12, 2022 at its Swedish facilities due to a decrease in market demand. The reduced operating schedules will result in a 15% decrease in production capacity and are anticipated to be in effect through the fourth quarter. “Rising inflation and mortgage rates in Europe, which are expected to persist into the fall, is impacting demand for lumber and as a result we are reducing production capacity. We are committed to continuing to meet the needs of our customers,” said Don Kayne, President and CEO, Canfor. The decrease in production capacity will be achieved through reduced shifts. The Company will continue to assess and make adjustments to operating schedules based on changes in market demand.
For the second quarter ended 30 June 2022 Lecta had revenue of €529.4 million versus €310.7 million in the second quarter ended 30 June 2021, an increase of €218.7 million or +70%. The costs of raw materials and consumables used increased by €75.7 million, or +18.6%, from €155.9 million in 2Q2021 to €231.6 million in 2Q2022, and as a percentage of revenue they decreased from 50.2% in 2Q2021 to 43.7% in 2Q2022. The absolute increase was mainly attributable to higher produced and purchased volumes, and to an increase in the average consumption price of pulp of 193€/t of paper. Labor costs increased by €5.2 million, or +11.9%, from €43.4 million in 2Q2021 to €48.5 million in 2Q2022, and as percentage of revenue they decreased from 14.0% in 2Q2021 to 9.2% in 2Q2022. EBITDA increased by €35.9 million, from €11.6 million in 2Q2021 to €47.5 million in 2Q2022. This increase was essentially due to higher sales of paper in volume and higher sales prices, partly offset by higher production cost and higher labor and fixed costs.
Solenis, a leading global producer of specialty chemicals, will implement an energy surcharge on all products and product lines of up to 20% on all orders shipped on or after September 1, 2022, for all customers across Europe, the Middle East, and Africa (EMEA). The continued impact of limited availability of gas from Russia has resulted in extremely high and volatile gas prices in Europe. As a result, higher costs are being experienced by our manufacturing plants in addition to price escalations in key raw materials from our suppliers.
Total European shipments of graphic papers in June 2022 were down 16.4% vs. 2021 and are down 10.2% year-to-date. Total European shipments of newsprint in June 2022 were down 10.7% vs. 2021 and are down 6.9% year-to-date. Total European shipments of sc-magazine in June 2022 were down 20.2% vs. 2021 and are down 11.2% year-to-date. Total European shipments of coated mechanical reels in June 2022 were down 28.1% vs. 2021 and are down 21.0% year-to-date. Total European shipments of uncoated mechanical (improved & others) in June 2022 were down 22.2% vs. 2021 and are down 12.3% year-to-date. Total European shipments of coated woodfree in June 2022 were down 8.8% vs. 2021 and are UP 0.6% year-to-date. Total European shipments of uncoated woodfree in June 2022 were down 14.8% vs. 2021 and are down 11.8% year-to-date.
Drytac, the leading international manufacturer of self-adhesive materials for the large-format print and signage markets, is delighted to announce the appointment of Daniel Farias as Technical Engineer with immediate effect. Based at Drytac’s specialist factory facility in North America, Daniel’s new role is to support the business with technical sales support and product management. He will also take a lead role in all aspects of quality assurance including continual improvements, technical data sheets, external audits and quality implementation. Daniel brings with him a wealth of experience and knowledge, having previously worked in a quality assurance position within the tapes and adhesives sector. In this role, Daniel implemented various new systems to improve production and workflow across the business.
According to the report, total printing-writing paper shipments decreased 1% in July compared to July 2021. U.S. purchases of total printing-writing papers increased 3% in July compared to the same month last year. Total printing-writing paper inventory levels increased 2% when compared to June 2022. • Uncoated free sheet (UFS) paper shipments decreased 1% compared to July 2021 while the inventory level increased 5% compared to June 2022. UFS imports increased 8% while exports decreased 25% in June 2022. • U.S. purchases of coated free sheet (CFS) papers in July increased 2% compared to last July while the inventory level decreased 1% compared to June 2022. CFS imports and exports both increased compared to June 2021, up 32% and 6% respectively. • Coated mechanical (CM) paper shipments decreased 18% compared to July 2021 while the inventory level increased 2% compared to June 2022. CM imports increased 48% while exports decreased 41% in June 2022. • U.S. purchases of uncoated mechanical (UM) papers in July increased 16% compared to last July while the inventory level decreased 13% compared to June 2022. UM imports increased 9% while exports decreased 10% in June 2022.
*Operating profit for January-June 2022 was SEK 3 984 million (January-June 2021: 1 747). Excluding the item affecting comparability of SEK +266 million, operating profit increased by SEK 1 972 million to SEK 3 719 million. This was due to price increases in every product area, while cost inflation was limited by our high level of wood and energy self-sufficiency. *Profit after tax for January-June amounted to SEK 3 125 million (1 373), which corresponds to earnings per share of SEK 19.3 (8.5). *A total of SEK 1 862 million of ordinary and extraordinary dividends was paid in April. Thanks to strong cash flow, net debt has decreased by roughly SEK 300 million since year-end.
UPM and Dongsung Chemical announce a development partnership that will accelerate the introduction of renewable, sustainable forest-sourced materials into the Asian market and reduce fossil resource consumption. Dongsung Chemical, headquartered in South Korea and UPM Biochemicals, headquartered in Germany have agreed to form a strategic partnership to develop renewable products using bio-based raw materials, initially for footwear materials. Dongsung Chemical has signed a Letter of Intent for this strategic partnership to develop a renewable polyurethane product based on UPM Biochemicals’ biobased mono-ethylene glycols (MEG), UPM BioPura™. UPM is investing 750 million Euros to build the world’s first industry scale biorefinery at Leuna in Saxony-Anhalt, Germany, to convert sustainably sourced, certified woody biomass into next generation biochemicals. The facility aims to produce 220,000 tonnes annually in total. Bio-MEG is one of the outputs. UPM targets the start-up for end 2023.
Monadnock Paper Mills, Inc., the oldest continuously operating paper mill in the United States, is pleased to announce that it has earned a gold rating in the EcoVadis Corporate Social Responsibility (CSR) assessment. This achievement places the company in the top eight percent of the 90,000 companies ranked by EcoVadis. The company has achieved a 30% increase in its performance level since earning a silver rating in its assessment in 2015. Monadnock is FSC® (Forest Stewardship Council®) certified (FSC C018866) ensuring that the fiber it sources comes from responsibly managed forests and recycling facilities that meet the highest environmental and social standards. Its products are manufactured carbon neutral, and they use 100% renewable Green-e certified wind-powered electricity, all under a third-party certified ISO 14001 Environmental Management System.
International technology group ANDRITZ and Paracel S.A., Paraguay, have signed a contract under which ANDRITZ is to supply all process equipment and energy-efficient and environmentally friendly pulp production equipment for Paracel’s 1.8 million ton/year pulp mill to be built in Concepción, Paraguay. ANDRITZ will supply all equipment on an EPC basis. The order value for ANDRITZ will be more than 1.5 billon US dollars. The contract is expected to be booked during 2023.
Following an extensive and long-term strategic analysis, Rottneros' Board of Directors has decided to discontinue the production of groundwood pulp in Rottneros Mill as there are no prospects for long-term sustainable profitability. The decision means that about 40 people will be made redundant. The cost of the closure is expected to amount to approximately 60 MSEK. Production is expected to cease at the end of 2022, following the conclusion of trade union negotiations which are now beginning. The Group plans to invest 160 - 200 MSEK to significantly increase capacity and production in the mill's CTMP line. In 2021, the Group's production of groundwood pulp amounted to 64 000 tons, corresponding to 16 percent of Rottneros' total production of 395 300 tons. During the same year, the groundwood line's share of the Group's net sales amounted to just over 10 percent, while the contribution, including electricity hedges, to the Group's net profit was marginal. The costs for the closure, approximately 60 MSEK, consist mainly of redundancy costs and will be charged in the Group's earnings for the third quarter. Only a minor part is write-downs of fixed assets.
Mondi plc has agreed to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of €40 million. The mill currently operates one paper machine producing lightweight coated mechanical paper. Mondi plans to convert this paper machine to produce around 420,000 tonnes per annum of high-quality recycled containerboard for an estimated investment of around €200 million. Close to two important export harbours, Duino is ideally located to supply the Group’s Corrugated Solutions plants in Central Europe and Turkey as well as to serve the growing local Italian market. The containerboard machine will strengthen backward integration in Corrugated Packaging and provide us with security of supply to better serve our customers.
Second Quarter of 2022 Highlights *Second quarter 2022 (“Q2 2022”) net earnings were $29.5 million or $0.15 per share (diluted), compared to $34.0 million or $ 0.18 per share in the first quarter of 2022 (“Q1 2022”). This was the Company’s third full quarter operating its acquired forest-products assets. *Lumber pricing remained strong in Q2 2022, with an average selling price of $1,255/mfbm compared to $1,325/mfbm in Q1 2022. Rising interest rates and inflation headwinds, coupled with macro supply tightening and the risk of disruptions to lumber supply underlies our expectation of continued volatility in lumber prices. *The Company made a voluntary repayment of US$8.9 million on its outstanding term debt during the second quarter of 2022. *Asset-backed revolving loan facility of $65.0 million was undrawn at quarter end and has remained undrawn at August 10, 2022. Strong operating cash flow continues to fund working capital needs. Cash and equivalents ended Q2 2022 with a balance of $74.2 million.
Koehler Paper in Oberkirch is taking advantage of the summer period to carry out necessary work on its three paper machines, its power plant, and its infrastructure. In addition to maintenance tasks, it is also planning a number of improvements so that when the machines are started up again in mid-August it will be able to continue producing premium paper for the international market. "It is not possible to carry out major works on these complex machines during production. As these machines normally run in continuous operation, these types of stoppages are necessary to ensure that our technology is always up to date,” says Hartmut Felsch, Mill Director at the Koehler Paper site in Oberkirch.
Mondi plc announces that it has entered into an agreement to sell its most significant facility in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities to Augment Investments Limited for a consideration of RUB 95 billion, payable in cash on completion. The proposed Disposal follows Mondi’s announcement on 4 May 2022 that, having assessed all options for the Group’s interests in Russia, it had decided to divest its Russian assets. Accordingly, Mondi launched a competitive auction process to find a suitable new owner for Syktyvkar. Syktyvkar is a wholly owned integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar (Komi Republic). The Business employs approximately 4,500 people and it is a leading provider of uncoated fine paper and containerboard to the domestic Russian market.
"We saw increasing earnings and operating margins in the second quarter after a successful first quarter. We are also raising our adjusted EBITDA and free cash flow full-year guidance based on our first half of the year performance and our second half outlook," said Jean-Michel Ribiéras. "We remain committed to reducing debt, investing in high-return projects and returning cash to shareowners as we continue delivering on our investment thesis." Second Quarter Highlights *Net income from continuing operations of $84 million ($1.89 per diluted share) compared with $55 million ($1.25 per diluted share) in the first quarter of 2022 *Repaid $48 million of debt, achieving a gross debt-to-adjusted EBITDA ratio of 2.2x. Second Quarter Commercial and Operational Highlights *Price and mix improved by $73 million versus the prior quarter, mainly due to prior price increases implemented in all regions *Operations improved by $2 million and total planned maintenance outage expenses rose by $17 million in North America *Input costs grew by $16 million versus the prior quarter, reflecting higher chemical, energy, fiber and transportation costs.
KPLP Q2 2022 Business and Financial Highlights • Revenue was $397.5 million in Q2 2022 compared to $339.3 million in Q2 2021, an increase of $58.2 million or 17.1%. • Net loss was $35.5 million in Q2 2022 compared to net income of $2.2 million in Q2 2021, a decrease of $37.7 million. “We delivered another strong quarter of double-digit revenue growth in Q2 2022, but the depth, breadth and speed of inflation severely impacted our operating results and lowered profitability,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “We expect a partial recovery in the third quarter as successive pricing increases begin catching up with the inflationary curve, productivity gains are felt at our Memphis operations, and extensive cost management initiatives take effect. By the end of the fourth quarter, we anticipate a full recovery based on peaked pulp prices and reduced freight rates along with additional pricing adjustments. Consequently, we are highly confident about returning to a normalized margin in the near term.”
Polar® Transit Air - With excellent opaque characteristics, the 3.2 mil (80μ) premium, matte white polymeric self-adhesive PVC Polar® Transit Air is suitable for smooth, flat or simple curve surfaces such as sports arena boards, commercial vehicles and indoor and outdoor display signage. As well as incorporating Drytac’s bubble-free technology for an easy install, it has a removable pressure-sensitive adhesive that allows for field installation in cold weather without the need for wet application techniques. Polar® Smooth 150 Air - This 6-mil (150μ), self-adhesive white polymeric printable matte PVC film with removable bubble-free air egress adhesive technology is designed for graphics that need to be easily installed and removed without the need for lamination. It is suitable for numerous applications such as temporary construction hoardings, point of sale applications, interior décor applications – including the installation of graphics onto windows, walls, melamine and glass – as well as most other flat or simple curve surfaces. Dimensionally stable, Polar® Smooth 150 Air is phthalate-free, can be applied without stretching or tearing, and is cleanly removable. It is coated with a pressure-sensitive, removable aqueous acrylic adhesive protected by a 90# PE coated kraft bubble free release paper.
Mativ Second Quarter 2022 Highlights (reflects legacy SWM results) •Sales increased 13% to $426.4 million; organic sales growth of 11% with strong demand and pricing actions across the business driving top-line gains and offsetting cost increases •GAAP EPS of $0.36, up from $0.06; Adjusted EPS of $0.86, down 4%; Adjusted EBITDA up 1% year-over-year and up 5% sequentially. Neenah Second Quarter 2022 Highlights (not included in Mativ results) •Net sales increased 14% to $306.8 million; organic sales growth was 17%, driven by release liners, water filtration, and industrials and broad strength across the paper and packaging portfolio •GAAP operating income was $17.0 million; Adjusted EBITDA increased 14% to $36.2 million; price increases more than offset higher input costs
Resolute Forest Products Inc. reported net income for the quarter ended June 30 of $256 million, compared to net income of $268 million, in the same period in 2021. Sales were $1,058 million in the quarter, a decrease of $82 million from the year-ago period. Excluding special items, the company reported net income of $155 million, compared to net income of $300 million, in the second quarter of 2021. The company reported operating income of $217 million in the quarter, compared to $235 million in the first quarter. The $18 million variation mainly reflects higher shipments ($47 million) across all segments, more than offset by higher manufacturing costs ($55 million), mainly related to fiber ($25 million) and maintenance ($19 million) costs, as well as energy prices ($7 million).
Notable items in the quarter: • Record Lumber Production and Shipments o Lumber production totaled a record 1.0 billion board feet, representing an increase of 99 million board feet quarter-over-quarter and the fifth consecutive quarter of record production. • Moderating Lumber Prices o Interfor’s average selling price was $1,104 per mfbm, down $306 per mfbm versus Q1’22. • Strong Free Cash Flow Generation o Interfor generated $218.2 million of cash flow from operations before changes in working capital, or $3.98 per share. • Strong results from Eastern Canada Operations o The Eastern Canada Operations contributed $115.7 million of Adjusted EBITDA to Interfor’s second quarter results, which is net of $17.3 million recorded in production costs related to fair value adjustments recognized at the acquisition date.
Rayonier Advanced Materials Inc. reported a net loss of $23 million or $(0.36) per diluted share for the quarter ended June 25, 2022, compared to net income of $122 million or $1.89 per diluted share for the same prior year quarter. The net loss from continuing operations for the quarter ended June 25, 2022, was $25 million or $(0.39) per diluted share, compared to net income from continuing operations of $8 million or $0.13 per diluted share for the same prior year quarter. Net income from continuing operations in the prior year quarter included a $25 million tax benefit resulting from remeasuring the Company’s Canadian deferred tax assets at a higher tax rate following the announcement of the disposal. Unless otherwise stated, information in this press release relates to continuing operations.
Today the Norway’s Prime minister Jonas Gahr Støre and the Minister of Trade and Industry Jan Christian Vestre visited Viken Skog’s Follum mill in Hønefoss. The plan of BillerudKorsnäs and the Norwegian forest owner group Viken Skog to establish production of bleached chemi-thermomechanical pulp (BCTMP) in Norway attracts large interest. Through a long-term partnership with Viken Skog, BillerudKorsnäs will secure both tailormade BCTMP and wood supply supporting the strategy for sustainable and profitable growth in paperboard. The Follum mill already has much of the infrastructure needed to establish such a production line and is in an area with competitive and sustainable wood supply and good transports to BillerudKorsnäs’ board mills. The ongoing feasibility study is expected to be completed during the first half of 2023. BillerudKorsnäs strategy has a clear goal - to deliver sustainable growth in packaging materials. To get the opportunity to develop the new mill in Follum as a state of the art sustainable operation is in line with our strategy. We aim for negative CO2 footprint in production with bio gas and carbon capture, says Christoph Michalski, President and CEO at BillerudKorsnäs.
*Record quarterly net sales of $5.5 billion increased 14.6% year-over-year *Net income of $378 million increased $128 million year-over-year, or 51.1%. Adjusted Net Income of $396 million increased $128 million year-over-year, growing 47.6% *Record Consolidated Adjusted EBITDA of $1.006 billion increased 24.0% year-over-year *Earned $1.47 per diluted share (“EPS”) and Adjusted EPS of $1.54, compared year-over-year to $0.93 and $1.00, respectively, increasing 58.1% and 54.0%, respectively *Net leverage ratio within targeted range
Highlights • Strong performance across the business ◦ Margin expansion in all continuing businesses, supported by good selling price realisation and solid operating performance in challenging conditions ◦ Key capital investments contributing to performance ◦ Total EBITDA including discontinued Russian operations (prior to special items) of €1,170 million, up 65% yearon-year • Around €1 billion of expansionary projects underway, approved or under advanced evaluation – capturing growth in our packaging markets, building on our leading market positions and adding to our strong track record of disciplined capital allocation • Completed sale of the Personal Care Components business for an enterprise value of €615 million, delivering greater focus
The packaging and speciality papers segment reached another record level of profitability despite flat year-on-year sales volumes, which were constrained by available capacity and low inventory levels in North America and South Africa. Demand remained robust and further selling price increases lifted margins for the segment. Graphic paper sales volumes were 4% higher than the prior year. The segment benefited from tight market conditions which supported selling price increases and drove margin growth. These favourable market conditions enabled all assets to run at full operating rates during the quarter. A substantial improvement in profitability of the European business was a result of favourable market conditions, which facilitated selling price increases in the paper segments and enabled the region to offset higher costs across all input categories. Profitability of the North American business continued its upwards trajectory with the region recording yet another record quarterly EBITDA of US$118 million.
German papermaker Feldmuehle is switching fuel from gas to light heating oil at short notice due to the gas supply crisis, while paper federation Cepi has warned about possible disruption to paper and packaging supplies if mandatory consumption cuts are enforced in the EU. Feldmuehle said it was taking rapid action to switch to light heating oil as fuel for steam generation at its Uetersen mill, which makes paper for labels and packaging. CEPI said that the pulp and paper industry had a fundamental role as a provider of critical products, and called on member states to consider entire value chains when responding to the crisis. “As its manufacturing partly depends on gas, possible disruptions in the industry’s gas supply would affect the entire logistics of the EU, availability of paper packaging for food and pharmaceuticals, as well as essential hygiene products,” CEPI stated.
For the first six months of 2022, Clearwater Paper reported net sales of $1 billion, a 22% increase compared to net sales of $832 million for the first six months of 2021. Net income for the first six months of 2022 was $31 million, or $1.83 per diluted share, compared to net loss for the first six months of 2021 of $40 million, or $2.37 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the first six months of 2022 of $36 million, or $2.13 per diluted share, compared to first six months of 2021 adjusted net loss of $6 million, or $0.37 per diluted share. Adjusted EBITDA for the first six months was $122 million, compared to the first six months of 2021 Adjusted EBITDA of $69 million. Net sales in the Pulp and Paperboard Products segment were $562 million for the first six months of 2022, up 26% compared to net sales of $447 million in the first six months of 2021. Segment operating income for the first six months of 2022 was $102 million, compared to $38 million for the first six months of 2021.
Ahlstrom-Munksjö is investing in new technology and converting its existing boilers at its Mosinee and Rhinelander plants in Wisconsin, United States, to reduce its carbon emissions and landfill waste. These investments at the Mosinee production plant will enable a reduction in its carbon footprint by an estimated 20%, and a reduction of landfill waste by more than 10%. The project is estimated to be completed at the end of the second quarter in 2023. In addition, the Rhinelander production plant is expected to reduce CO2 emissions by an estimated 14% and landfill waste by more than 50%. A new energy center and associated buildings at Rhinelander will consolidate and simplify energy operations, enabling the plant to house a future boiler and a heat recovery steam generator. The project will commence immediately and is estimated to be completed in the third quarter of 2023.
Canfor Corporation is pleased to announce it will invest approximately $210 million USD to build a new, state-of-the-art sawmill complex in southern Alabama. Using leading technology, the new sawmill will have an annual production capacity of 250 million board feet on a two-shift basis and will provide a new, modern work environment for the approximately 130 people who will be employed directly, in addition to supporting significant indirect jobs. In alignment with our sustainability goals and decarbonization targets, the facility design includes investment in a biomass-fueled lumber drying system. Startup of the facility is anticipated in the third quarter of 2024. “Building on Canfor’s proud operating history in Alabama, we are excited to invest in a new world-class facility that will ensure our long-term ability to operate competitively. In addition, the facility’s versatility and flexibility will enhance our ability to more closely align our production of high-quality products with market demand,” said Don Kayne, President and CEO, Canfor.
Overview • Q2 2022 reported operating income of $532 million; quarterly sales of $2.2 billion • Downward pressure on North American lumber market fundamentals; significant decline in US-dollar lumber benchmark pricing; uptick in European market pricing largely tied to traditional quarterly lag • Improved lumber & pulp shipments despite ongoing transportation challenges • Shareholder net income of $374 million, or $3.02 per share
GP Cellulose is investing about $80 million to add fluff capacity at its GP Cellulose Alabama River mill near Monroeville, Alabama. The project is being implemented in phases and will increase the mill’s ability to produce fluff pulp upon completion. The Alabama River mill operates two lines, one currently producing only paper pulp bales. This investment upgrades production by adding the ability for this line to also produce fluff pulp rolls. The mill’s second line was upgraded to produce both paper pulp bales and fluff pulp rolls in 2011. “This investment will enable GP Cellulose to address the increasing fluff pulp needs of our customers worldwide,” said Munir Abdallah, President – GP Cellulose. “The completion of this project will add capability and flexibility to our system to meet a wider range of needs and position us to grow with our customers.”
January–June 2022 (1–6/2021) *Sales were EUR 3,416 million (2,942). *Operating result was EUR 589 million (379). Comparable operating result was EUR 574 million (416). *Result before taxes was EUR 564 million (354). Comparable result before taxes was EUR 550 million (391). *Comparable return on capital employed was 18.3% (15.0). *Net cash flow from operations was EUR 456 million (374). April–June 2022 (4–6/2021) *Sales were EUR 1,822 million (1,542). *Operating result was EUR 248 million (243). Comparable operating result was EUR 330 million (242). *Result before taxes was EUR 235 million (232). Comparable result before taxes was EUR 317 million (231). *Comparable return on capital employed was 20.5% (17.2). *Net cash flow from operations was EUR 321 million (279).
HIGHLIGHTS • Pulp sales of 2,663 thousand tons (+5% vs. 2Q21). • Paper sales3 of 324 thousand tons (+10% vs. 2Q21). • Average net pulp price in export market: US$732/ton (+15% vs. 2Q21). • Average net paper price3 of R$6,200/ton (+31% vs. 2Q21). • Pulp cash cost ex-downtime of R$854/ton (+26% vs. 2Q21). • Leverage ratio in USD declines to 2.3 times and stable net debt in USD, despite the investment cycle. • Cerrado Project achieves 21% of physical progress and 15% of financial progress.
Heinzel Holding GmbH and Paracel S.A. jointly announce that Heinzel has entered into an investment agreement to become the strategic equity investor in Paracel, an afforestation and pulp mill project in Paraguay, South America. Paracel has now received equity commitments from a group of Paraguayan and European business families, with Heinzel's investment completing the needed strategic equity for the project. Heinzel will hold 25% of Paracel's shares at project completion. Paracel is planning to produce 1.8 million metric tons of eucalyptus pulp per year in Concepción in northern Paraguay, with forestry assets of more than 180,000 hectares of land owned by the company. Since the start of the project in late 2018, the pioneering project has passed important milestones: Paracel has already planted more than16,000 hectares of forestry, completed the design of the pulp mill, received the construction permit and completed the required environmental and social impact assessments. It has started significant groundworks on the mill site and kicked off social programs and conservation projects for native forests. As one of the world's major afforestation projects it has also completed documentation for the carbon sequestration effect of planting more than one hundred million trees.
Label and Graphic Materials - Reported sales increased 8% to $1.5 billion. Sales were up 14% ex. currency and 15% on an organic basis. Retail Branding and Information Solutions - Reported sales increased 24% to $658 million. Sales were up 27% ex. currency and 5% on an organic basis. Industrial and Healthcare Materials - Reported sales increased 1% to $198 million. Sales were up 5% ex. currency and 7% on an organic basis reflecting a mid-single digit increase in industrial categories and a high teens increase in healthcare categories.
Designed for both graphic applications and luxury packaging. Raw materials, functionality and printing techniques are fundamental factors when choosing a type of packaging. With more than 80% of purchasing decisions made at the point of sale, product presentation is key to brand recognition. This is why Lecta has created a versatile range of SBS graphic paperboard with a silk finish: Diva Art (1-side coated) and Diva Art Duo (2-side coated), for creative, sustainable projects. Both stand out for their excellent machining characteristics, providing for high on-machine performance throughout production. With consistent smoothness and whiteness, and rich color reproduction, this unique range is suitable for most finishing processes such as screen printing, stamping, flocking or dry embossing. Diva Art and Diva Art Duo were developed for offset, flexo and digital printing, and they offer excellent finishing and handling performance. Their outstanding print quality for both text and color images make them ideal for creative graphics, communications and packaging projects, including book covers, folders, labels, postcards and greeting cards, or packaging for cosmetics, perfumes and premium beverages.
Second Quarter 2022 Financial Highlights: *Produced revenue of $945 million, an increase of 2% compared to the prior year, driven by higher revenue from TiO2 *Generated income from operations of $190 million and net income of $375 million, inclusive of a reversal of a portion of the valuation allowance in Australia relating to deferred tax assets resulting in a non-cash benefit of $262 million *Achieved GAAP diluted EPS of $2.37; adjusted diluted EPS of $0.84 (non-GAAP) primarily due to the exclusion of the Australian valuation allowance reversal of $1.65 *Invested $99 million in capital expenditures, primarily in our newTRON and vertical integration initiatives *Repurchased $25 million or approximately 1.5 million shares during the second quarter; total share repurchases of $50 million year-to-date
Total European shipments of graphic papers in May were down 9.1% vs. 2021 and are down 9.0% year-to-date. Total European shipments of newsprint in May were down 7.6% vs. 2021 and are down 6.4% year-to-date. Total European shipments of sc-magazine in May were down 8.0% vs. 2021 and are down 9.3% year-to-date. Total European shipments of coated mechanical reels in May were down 22.0% vs. 2021 and are down 19.4% year-to-date. Total European shipments of uncoated mechanical (improved & others) in May were down 10.6% vs. 2021 and are down 10.2% year-to-date. Total European shipments of coated woodfree in May were UP 3.6% vs. 2021 and are UP 2.6% year-to-date. Total European shipments of uncoated woodfree in May were down 9.9% vs. 2021 and are down 11.2% year-to-date.
Sales of $5.1 billion in the second quarter of 2022 increased 7 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales 2 percent. Organic sales increased 9 percent as net selling prices rose 9 percent, product mix increased sales 1 percent and volumes declined 1 percent. In North America, organic sales increased 11 percent in consumer products and increased 8 percent in K-C Professional. Outside North America, organic sales rose 8 percent in developing and emerging (D&E) markets and 9 percent in developed markets. Second quarter operating profit was $621 million in 2022 and $613 million in 2021. Excluding the charges related to the 2018 Global Restructuring Program, 2021 adjusted operating profit was $676 million.
Resolute Forest Products Inc. announces the ratification of a four-year labor agreement with the Unifor union covering 1,000 employees working in eight of the company's Quebec sawmills, following an agreement-in-principle reached on July 15. "We are pleased to have renewed the labor agreement with employees of this important business segment," said Remi G. Lalonde, president and chief executive officer. "The collective agreement underscores their contribution to the company's success and provides stability for our customers, communities and other partners." The collective agreements ratified on July 22 cover hourly employees represented by Unifor at Resolute's Comtois, Girardville, La Doré, Maniwaki, Mistassini, Normandin, Outardes and Saint-Thomas facilities.
The Navigator Company and Hamburg-based developer P2X-Europe have decided, subject to the approval of the relevant anti-trust authorities, to create a unique and powerful joint venture, P2XPortugal, to develop a world-class production facility for industrial-scale production of non-fossil jet fuels or e-SAFs (e-Sustainable Aviation Fuels) – carbon-neutral synthetic kerosene, based on green hydrogen and biogenic CO2. This project leverages on Portugal's highly competitive renewable energy sources and on biogenic CO2 generated by Navigator's biorefineries using sustainable forests, which together constitute the two critical elements for the successful production of net-zero synthetic feedstocks for the chemical industry and jet fuels on an industrial scale, fostering the decarbonization of the aviation industry. The JV is tapping into the extensive know-how of P2X-Europe, a global pioneer in PtL (Power-to-Liquids) project development and technology configuration and its parent companies’ H&R Group and Mabanaft market expertise in waxes for the chemical-pharmaceutical industry and in liquid fuels.
Mercer International Inc. announced that it has entered into an agreement to acquire all of the outstanding shares of the parent company of HIT for consideration of €270 million, inclusive of forecasted net working capital of approximately €43 million. HIT owns, among other things, 100% of a timber processing and value-add pallet production facility in Torgau, Germany (the “HIT Facility“) and a wood processing facility in Dahlen, Germany that produces garden products.
Stora Enso and Northvolt are joining forces to create sustainable batteries using lignin-based hard carbon produced with renewable wood from the Nordic forests. The aim is to develop the world’s first industrialised battery featuring anode sourced entirely from European raw materials, lowering both the carbon footprint and the cost. The companies have entered into a Joint Development Agreement to create a sustainable battery featuring anode produced from renewable raw materials sourced sustainably and locally in the Nordic countries. “The joint battery development with Northvolt marks a step on our journey to serve the fast-growing battery market with renewable anode materials made from trees. Our lignin-based hard carbon, Lignode® by Stora Enso, will secure the strategic European supply of anode raw material, serving the sustainable battery needs for applications from mobility to stationary energy storage,” says Johanna Hagelberg, Executive Vice President for Biomaterials at Stora Enso.
Q2/2022 (year-on-year) • Sales increased by 18% to EUR 3,054 (2,592) million. • Operational EBIT increased by 39% to EUR 505 (364) million. • Operational EBIT margin increased to 16.5% (14.0%). • Operating profit (IFRS) increased to EUR 399 (182) million. • Cash flow from operations amounted to EUR 404 (463) million. Cash flow after investing activities was EUR 247 (339) million. • Operational ROCE excluding the Forest division increased to 22.8% (18.1%), the target being >13%. Q1-Q2/2022 (year-on-year) • Sales were EUR 5,852 (4,868) million. • Operational EBIT was EUR 1,008 (692) million.
January–June 2022 compared with January–June 2021 *Net sales amounted to SEK 10,914m (8,982). The increase was mainly attributable to high demand for SCA’s products, higher selling prices and increased sales to core markets. Through its own logistics company, SCA has a unique control over logistics from the forest to the customer, which has benefited delivery reliability in a turbulent period. *EBITDA improved 58% to SEK 5,729m (3,619). The increase was mainly attributable to higher selling prices in all product areas while a high degree of self-sufficiency in wood, energy and logistics enabled good cost control. EBITDA margin increased to 52.5% (40.3). *Valuation of SCA’s forest assets increased to SEK 87.9bn compared to SEK 84.5bn at year-end previous year due to further increased prices on forest assets in Northern Sweden *Operating profit increased to SEK 4,958m (2,927) *Operating cash flow strengthened to SEK 3,085m (1,581) and thereby continued to finance ongoing strategic investments
Q2 2022 highlights *Sales increased by 7% to EUR 2,562 million (2,384 million in Q2 2021) *Comparable EBIT grew by 26% to EUR 387 million, 15.1% of sales (307 million, 12.9%) *Operating cash flow was EUR -879 million (308 million), impacted by cash flows from energy hedges. Other operating cash flows were largely as expected *Sales prices increased in all business areas and more than offset the negative impact of higher variable costs *Transformative growth projects in Uruguay and in Germany proceed well *In May, UPM announced the acquisition of AMC AG to accelerate growth and enter new product segments in UPM Raflatac *In June, UPM announced the sale of the Steyrermühl site in Austria to secure competitiveness and adapt newsprint production to the long-term market development. H1 2022 highlights *Sales increased by 10% to EUR 5,069 million (4,618 million in H1 2021) *Operating cash flow was EUR -867 million (526 million), impacted by cash flows from energy hedges in the highly exceptional energy markets
Total printing-writing paper inventory levels decreased 2% when compared to May 2022. U.S. purchases of uncoated free sheet (UFS) papers in June increased 2% compared to last June while the inventory level decreased 2% compared to May 2022. UFS imports increased 18% while exports decreased 20% in May 2022. Coated free sheet (CFS) paper shipments increased 2% compared to June 2021 while the inventory level decreased 1% compared to May 2022. CFS imports increased 10% while exports decreased 1% in May 2022. U.S. purchases of coated mechanical (CM) papers in June decreased 16% compared to last June while the inventory level decreased 8% compared to May 2022. CM imports and exports both decreased compared to May 2021, down 16% and 19% respectively. Uncoated mechanical (UM) paper shipments increased 28% compared to June 2021 while the inventory level decreased 4% compared to May 2022. UM imports increased 8% while exports decreased 30% in May 2022.
KEY HIGHLIGHTS *All-time high sales, EBITDA and operating cash flow *First quarter where Verso was included – net sales growth 75% *Strong organic growth, both in Europe 17% and North America 19% *Price and mix improvements more than offset the cost inflation *Excellent cash delivery and strong balance sheet position. QUARTERLY DATA *Net sales grew by 75% to SEK 11 408 million (6 504), whereof Billerud North America accounted for SEK 3 738 million *Operating profit was SEK 1 609 million (404) *Net profit was SEK 1 419 million (311)
The report illuminates how the Company is advancing its environmental and sustainability ambitions and aligns with the standards and recommendations of the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD) reporting frameworks. In addition, the report introduces the Company’s 2030 target to reduce its Scope 1 GHG emission intensity by 35%, as validated by the Science Based Targets Initiative. “The production of sustainable, renewable, bio-based products has always been a core element of our business. This inaugural Sustainability Report highlights our sustainability aspirations, the initiatives we are advancing to improve our operations, and the progress we are making each year,” said Juan Carlos Bueno, President and CEO of Mercer International. “We are proud of our work to date and look forward to preparing ourselves further for a low-carbon and circular future driven by renewable natural resources.”
Robert Harvey joined Twin Rivers as the company’s Chief Operations Officer in February. A native of Maine, Harvey recently relocated to the company’s flagship operation and headquarters office in Madawaska, Maine. Tyler Rajeski was named Vice President of Finance in April 2022, leading the company’s finance, accounting, treasury and tax functions. “Rob and Tyler are great additions to our executive team, bringing a high level of expertise to their respective roles,” stated Chief Executive Officer Debarata ‘Deba’ Mukherjee. “The deep papermaking and continuous improvement experience Rob brings to the business has already resulted in operational improvements. Tyler was working closely with our team and creating value via his role with Atlas Holdings, enabling a fast and seamless transition.”
As Kimberly-Clark celebrates 150 years of providing Better Care for a Better World, the Kimberly-Clark Foundation announced that it will honor this milestone anniversary by awarding three $150,000 grants to global nonprofit organizations that are working to improve the well-being of people around the world. Kimberly-Clark employees selected the grant recipients via online voting from a list of nonprofit organizations that focus their work on the priority areas of the company's brands and the Kimberly-Clark Foundation. The awardees are: *Water.org has positively transformed more than 45 million lives around the world with access to safe water or sanitation; *She's the First has worked with grassroots organizations to make sure girls everywhere are educated, respected and heard; and *Project HOPE has provided nurses and midwives with the skills they need to save the lives of women and babies around the world.
Norske Skog’s EBITDA in the second quarter of 2022 was NOK 905 million, an increase from NOK 610 million in the first quarter of 2022. Sales prices for all grades increased in the quarter as a consequence of high energy costs in Europe and a tight publication paper market. The containerboard conversions and energy projects are progressing as planned. Cash flow from operations was NOK 473 million in the quarter compared to NOK 196 million in the previous quarter, positively impacted by the improved operating margins, but negatively impacted by change in working capital, being mainly an increase in inventories, and trade and other receivables. Operating earnings in the second quarter of 2022 were NOK 1 195 million compared to operating earnings in the first quarter of 2022 of NOK 593 million. The quarter was positively affected by non-cash changes in fair value of energy contracts in Norway amounting to NOK 419 million. Net profit in the quarter was NOK 935 million compared to a net profit of NOK 583 million in the previous quarter. Net interest-bearing debt was NOK 1 012 million at the end of the second quarter, with an equity ratio of 42%.
The Paper Excellence Group, Domtar’s owner, announced it has entered an agreement to purchase Resolute Forest Products through Domtar. Under the agreement, Domtar will acquire all outstanding shares of Resolute common stock. The transaction is expected to close in the first half of 2023. With this addition to its family of companies, the Paper Excellence Group will further build out its forest products portfolio in North America following the successful acquisition of Domtar last year. Resolute will be a wholly owned subsidiary of Domtar, under the auspices of the Paper Excellence Group. Domtar and Resolute will continue to operate independently under their own names.
Paper Excellence today announced it has once again been voted one of Canada’s 2022 Best 50 corporate citizens by Corporate Knights. This is the fifteenth time that the company has achieved the Best 50 Award with Corporate Knights. Paper Excellence operates six pulp and paper facilities in British Columbia and Saskatchewan. The Best 50 award is judged using key performance indicators that relate to the organization’s raw resource use, emissions profile, social performance, safety performance, and percentage of revenue from clean sources.
Flexible packaging is the fastest growing plastic packaging category. Because it is predominanty single-use, with very low recycling and high leakage rates, it is also by far the most challenging market segment to address on the journey towards a circular economy. Koehler Paper played an important part in the latest project of the international charity “Ellen MacArthur Foundation”, to point out options for a circular economy in flexible packaging. The Ellen MacArthur Foundation, an international charity, was launched in 2010 with the aim of accelerating the transition to the circular economy. They create evidence-based original research on the benefits of a circular economy, and how it can contribute to solving global challenges like climate change and biodiversity loss.
Sappi is pleased to announce that all three of its manufacturing regions – Europe, North America and Southern Africa – have once again achieved the highest possible rating, Platinum, in the annual EcoVadis Corporate Social Responsibility (CSR) ratings. This achievement places the regions individually and Sappi collectively in the top 1% of all companies reviewed. EcoVadis is the world’s most trusted provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Over 90,000 companies from over 160 countries across more than 200 purchasing categories have been assessed. Companies are evaluated for their performance in terms of a total of 21 criteria, which in turn are divided into four general areas: environment, labour and human rights, ethics and sustainable procurement.
UPM Raflatac, a global supplier of innovative and sustainable labeling materials, is strengthening its position and service capabilities in the Americas market with a new state-of-the-art two-meter slitter and increased production automation in its Mills River factory over the next two years. “We are excited about the ability to provide better service to our customers through improved capacity, capabilities and productivity. We are continually advancing our production sites to increase our output in the Americas and exceed quality benchmarks,” stated Tim Kirchen, Senior Vice President, UPM Raflatac, Americas.
International technology group ANDRITZ has established a new inline Wetlace™ CP pilot line with an original design at its center of competence in Montbonnot, France. From now on, ANDRITZ partners will be able to conduct trials and test all options available for wipes production – from carded staple fibers to pulp and various combinations thereof – thanks to the new inline Wetlace™ CP line. Customers will benefit from the expertise of the ANDRITZ specialists with this fully engineered process, combining both spunlace and wetlaid technologies, so that they can move forward to more sustainable options while maintaining a high level of product quality, in particular by achieving high CD strength and good linting properties. Over the past few decades, ANDRITZ has continued to innovate with various nonwoven processes, like spunlace, WetlaceTM and Wetlace™ CP, with the aim of optimizing the use of raw materials and focusing on sustainability by reducing the synthetic fiber content.
Total European shipments of graphic papers in April 2022 were down 14.8% vs. April 2021 and year-to-date shipments were down 8.8%. Total European shipments of newsprint in April 2022 were down 10.5% vs. April 2021 and year-to-date shipments were down 5.4%. Total European shipments of sc-magazine in April 2022 were down 16.5% vs. April 2021 and year-to-date shipments were down 9.6%. Total European shipments of coated mechanical reels in April 2022 were down 27.6% vs. April 2021 and year-to-date shipments were down 18.8%. Total European shipments of uncoated mechanical (improved & others) in April 2022 were down 14.1% vs. April 2021 and year-to-date shipments were down 10.0%. Total European shipments of coated woodfree in April 2022 were down 1.6% vs. April 2021 and year-to-date shipments were UP 2.4%. Total European shipments of uncoated woodfree in April 2022 were down 17.3% vs. April 2021 and year-to-date shipments were down 11.5%.
Domtar’s sustainability journey begins in the forest, but our work as an industry leader in sustainable forestry continues with our focus on verified fiber sourcing in our sustainability agenda moving toward 2030. “Our sustainable forestry principles have guided our practices for many years,” says Paige Goff, Domtar’s vice president for sustainability. “We now have advanced technology and other tools to help us be even more effective in applying those principles to our supply chain.” Building on a long history of responsibility in the forest, Domtar has set two significant goals in the area of verified fiber sourcing: *We’ll source 100 percent of our fiber from responsibly managed forests. *We’ll increase our use of recycled fiber and improve the recyclability of our products and packaging.
Kati ter Horst, Executive Vice President, Paper Division and a member of the Group Leadership Team, has decided to leave Stora Enso as of 1 July 2022. After more than 25 years with the Company, she will now pursue career opportunities outside of Stora Enso. Kati ter Horst joined Stora Enso in 1996 and has been leading the Company’s Paper division since 2014. “As a highly valued member of our Group Leadership Team, Kati has been instrumental in driving Stora Enso’s transformation journey into a renewable materials company by contributing to strategy development. She has showed strong leadership and has played a key role in the extensive restructuring process of our paper business. I want to express my gratitude to Kati for her significant contributions to Stora Enso, while wishing her all the best in her future endeavours,” says Annica Bresky, President and CEO at Stora Enso.
UPM BioMotion™ Renewable Functional Fillers (RFF), recently acknowledged as the most important sustainability project in the elastomer and rubber industry will go live at the Nuremberg International Rubber Conference DKT from 27-30 June. After a postponement due to Covid, the expert community of the rubber and plastics industry is finally meeting in person at the leading trade fair for the sector. It's the perfect time to introduce UPM's new product – the next best thing to transform the rubber industry. UPM BioMotion™ RFF were initially launched in late 2021. These fillers are more than just a product; they mark a solution for urgent industry needs. Renewable Functional Fillers can be a real game-changer, as they will enable a radical step forward in the sustainability performance of rubber and plastic products in various end-uses. The two materials that RFF can replace best are carbon black and precipitated silica. Both are highly CO2-intensive in production, non-renewable and challenging to recycle.
Schweitzer-Mauduit International, Inc. and Neenah, Inc. announced the future name of the combined company upon completing the pending all-stock merger of equals. Each company’s shareholders are scheduled to vote on the transaction on June 29, 2022. The transaction is expected to close on or around July 1, 2022, subject to Neenah and SWM shareholder approval, approval by antitrust authorities in Poland, and other customary closing conditions. Upon close, the new company name will be Mativ, Inc. (“Mativ”) and its shares will begin trading on the NYSE under the ticker symbol "MATV." The "SWM" and "NP" ticker symbols will be deactivated.
Monadnock Paper Mills, Inc. is pleased to announce additional product offerings for Astrolite PC 100, the luxurious and sustainable fine papers crafted with 100% post-consumer waste (PCW) recycled fiber. Created with a high-fidelity six-color printing process (CMYKOG), the new Astrolite PC 100 swatchbook results in a stunning visual that demonstrates the possibilities when printing on highly crafted recycled papers. These grades are perfect for annual reports, CSR reports, fashion lookbooks, catalogs, product brochures, newsletters, presentation kits, portfolios, pocket folders, corporate stationery, and premium packaging. In addition to the featured print demonstrations, the new Astrolite PC 100 swatchbook features the recently expanded full slate of its three separate product lines: Astrolite PC 100 Velvet, Astrolite PC 100 Smooth, and Astrolite PC 100 Digital+, including a wider range of sheet sizes certified for HP Indigo.
The 2021 Sustainability Report brings our goals to the forefront. This year, Sappi North America has aligned with the United Nations Sustainable Development Goals that were most relevant to our work. We continue to meet these targets by reducing our water consumption, increasing our renewable energy usage, and minimizing our carbon footprint. Our sustainability practice also includes giving our employees the tools to advance their careers and become leaders in their fields. We hope you’ll see how important it is that we not only care for the planet and our people, but also create lasting prosperity.
UPM has signed an agreement to sell 100% of the shares of its Austrian subsidiary UPM Kymmene-Austria GmbH to the HEINZEL GROUP, a leading pulp, packaging and paper producer and trader in Central and Eastern Europe. The transaction comprises the UPM Steyrermühl site with approx. 400 employees, including the newsprint paper machine with an annual capacity of 320,000 tonnes and the Steyrermühl sawmill operations with an annual timber capacity of 370,000 cubic meters. The parties have agreed not to disclose the value of the deal. Closing of the transaction and end of newsprint production at UPM Steyrermühl are planned for the end of 2023. HEINZEL is planning to take over responsibility for the mill after closing. Until then, all operations continue as is. HEINZEL plans to operate the UPM Steyrermühl site outside of graphic papers as an integrate together with its Laakirchen mill, which is located in the same communicaty. HEINZEL is considering the production of packaging materials to complement their existing product portfolio.
Kruger Products officially inaugurated its Sherbrooke Tissue Plant, which was commissioned in 2021, and also broke ground at its expansion project where another tissue plant will be built on a site adjacent to the Sherbrooke Plant by 2024. This second project, which represents further investments of $351.5 million, will deliver on the Company’s vision to make Sherbrooke a major premium-quality tissue product manufacturing hub in North America, featuring Canada’s most advanced and best-performing TAD tissue machine. In total, the Company will have invested nearly $1 billion in the Estrie Region since 2018. The Sherbrooke Plant’s inauguration and the ground breaking of the expansion project took place in the presence of Mr. Joseph Kruger II, Chairman of the Board and Chief Executive Officer, Kruger Inc.; François Legault, Premier of Québec; Pierre Fitzgibbon, Québec Minister of Economy and Innovation; Geneviève Hébert, Member for Saint-François and Deputy Government Whip; Évelyne Beaudin, Mayor of Sherbrooke; Dino Bianco, Chief Executive Officer, Kruger Products L.P.; and Patrice Bégin, General Manager, Kruger Products Sherbrooke Plant.
Stora Enso is leasing the former paper machinery hall at its Veitsiluoto site in Finland to the textile technology company Infinited Fiber Company, which plans to build a commercial-scale factory to produce regenerated textile fiber from textile waste. Earlier this month Stora Enso sold its district heating business at Veitsiluoto to utility infrastructure company Nevel, a provider of advanced industrial and municipal infrastructure solutions. “We always want to find sustainable and financially robust long-term solutions to ensure a viable future for our former sites. I am pleased with our rapid progress in signing a lease with companies that can take advantage of the Veitsiluoto infrastructure and bring new business to the area. Our work at Veitsiluoto continues in order to bring more activity and jobs to the site," says Seppo Parvi, Stora Enso's CFO and Country Manager for Finland.
Koehler has joined the World BioEconomy Circle, a communication platform for stakeholders who have dedicated themselves to the subject of the bioeconomy. The objective of the BioEconomy Circle is to enable discussion of and improve on the latest developments, ideas, and visions in the circular bioeconomy, and to facilitate mutual learning. The BioEconomy Circle has grown substantially since it was introduced by the World BioEconomy Forum™, which was founded in 2018 by Jukka Kantola. The forum brings together a global community of stakeholders, who can use the platform to find out about a broad range of events and other activities in the field of the bioeconomy. It was set up in response to the increasing importance of this field.
Headquartered in Nova Scotia, Port Hawkesbury Paper (PHP) is the leading producer of supercalendered papers in North America, manufacturing SCA+ and SCA++ products for use in catalogs, magazines and retail inserts, as well as specialty papers. The company’s paper production capacity includes three thermomechanical (TMP) pulp lines that supply high-quality fiber to the papermaking process. PHP ships its products to customers throughout North America and around the world. “Port Hawkesbury Paper is pleased to support Two Sides North America because we share similar objectives when it comes to the long-term sustainability of our company, our industry and the resources that supply us,” says Port Hawkesbury Co-Manager Bevan Lock. “Our aim is to provide long-term ecological, social and cultural sustainability while managing and maintaining a sustainable wood supply and economic viability for our company, local wood suppliers and sawmills.”
The company will continue to successfully manage a broad portfolio of attractive niche businesses, supported by a tailored operating model. Effective as of July 1, 2022, the Group will serve five growing and distinctive end markets, also forming the basis for five divisions, allowing for significant organic and inorganic growth. The divisions will be supported by global functions and centers of excellence for scale, synergies, and excellence. The five end-markets and corresponding divisions are: Filtration – Mission-critical air and liquid filtration applications. Food & Consumer Packaging – Solutions for improved food safety, product preservation, and bacteria prevention, helping extend product life and protect human health. Healthcare – Technologies serving essential societal uses in medical, laboratory, and life science settings including diagnostics, bioprocessing, and medical performance barriers. Building Materials – Highly engineered building material applications for every face of the building. Market growth is driven by urbanization and increasing demand for sustainable building materials. Technical Materials – Highly technical applications including protective materials such as insulation, precision coating, tape, and others.
The new Adestor line includes our latest exclusive labeling products, designed and printed with various finishes that highlight the versatility, elegance and quality of our premium self-adhesive products. The new Adestor catalog is further evidence of Lecta's commitment to sustainability, featuring innovations aimed at reducing the environmental impact and promoting a circular economy: Essence Nature DfE 90 WS, 100% recycled material with textured finish; Stonepaper® 144 DfE, certified Cradle to Cradle Silver made from mineral powder; and Cold Ice White 110 HWS with HWS technology, which allows the commonly used film laminate to be eliminated, replacing it with a natural high wet strength layer, resulting in a plastic-free label. The entire Adestor range is manufactured in accordance with the ISO 14001 and EMAS environmental standards, the ISO 50001 energy management standard, the ISO 9001 quality standard, and the ISO 45001 occupational health and safety standard. Products are available with PEFC™ Chain of Custody or FSC® C011032 forest certification upon request.
The Green Valley Energie (GVE) joint venture, in which Norske Skog is a 10% minority equity holder, is ready to commence construction of a biomass boiler at the mill site of Norske Skog Golbey, France, following recent completion of debt financing. GVE is a biomass energy plant, which will produce electricity and heat from waste and residue materials. Electricity sale from GVE is ensured through a feed-in tariff contract, while steam will be used for Norske Skog's Golbey mill. "This energy project is one more milestone in the on-going transition of Norske Skog towards new growth markets and sustainable energy. The biomass boiler will ensure a stable, long-term supply of cost-competitive and 100 percent renewable steam as an alternative to fossil energy sources like natural gas, shielding us from increasingly volatile energy markets," says Sven Ombudstvedt, CEO of Norske Skog.
Stora Enso introduced NaturaFluff Eco to the market in 2021. This lower carbon footprint fluff pulp has now fulfilled the requirements and qualified for the Asthma Allergy Nordic label. Consumers are increasingly looking for products which are natural, safe to use and have a low environmental footprint. NaturaFluff Eco is an oxygen-delignified fluff pulp, which means that no bleaching chemicals are used in its production. As a result, the fluff pulp has a warm, natural beige colour and a more than 30% lower carbon footprint in comparison to traditional fluff pulp, without compromising on product performance. NaturaFluff Eco is perfectly suited for use in absorbent hygiene products, such as baby diapers, feminine hygiene, adult incontinence products, as well as in air-laid nonwoven materials such as napkins, table-tops and various pads.
Starting from May 2022, the lignin-based WISA® BioBond bonding technology is being used in all UPM’s WISA spruce plywood products. WISA BioBond is UPM Plywood’s proprietary bonding technology in which at least 50% of fossil-based phenol in the glue is replaced with wood’s own natural bonding agent, lignin. UPM is the first plywood manufacturer in the world to adopt such a lignin-based solution in its entire range of spruce products. More than just a new type of glue, WISA BioBond is a comprehensive technology that helps further reduce WISA products’ already low fossil CO2 emissions over their lifecycle. The technology has been used in UPM’s birch plywood mills since 2017. By making it the standard in the WISA spruce range, UPM is helping constructors and builders meet their own sustainability targets. “WISA plywood is a material with excellent sustainable qualities already. It is made from renewable raw material and acts as a carbon storage throughout its lifetime. With WISA BioBond, we develop our plywood products and take their environmental performance one step further. This brings the material closer to the UPM vision of a future beyond fossils,” says Susanna Rinne, VP, Strategy and Business Development at UPM Plywood.
After many years of advocacy by Domtar, our industry partners, customers and consumers, Congress passed legislation in favor of U.S. postal reform in March. In early April, President Joe Biden signed the Postal Service Reform Act of 2022. The bipartisan legislation will help the United States Postal Service (USPS) become more financially sound, and it codifies important services, such as six-day delivery. “Because nearly a third of the product we make at our mills travels through the mail each day, Domtar views the U.S. Postal Service as a business partner,” says Kathy Wholley, vice president of communications and public affairs. “For years we have been advocating for substantive legislative proposals that make needed reforms to the postal service. These changes will help the partnership between us, our customers and the postal service remain strong, as well as benefit American consumers.” Much more at: https://newsroom.domtar.com/us-postal-reform-2022/
Paper Excellence is pleased to have received $4.5 million from the Investments in Forest Industry Transformation (IFIT) program. This funding will help support an important transformation project taking place at our Catalyst Port Alberni mill. The $4.5 million will be invested at Catalyst Port Alberni to expand the mill’s production capacity for food packaging papers. Traditionally, this mill produced printing and writing grades; however, demand for these products has been in steady decline. Transitioning to food grade papers means meeting growing market demand, providing sustainable alternatives to single-use plastic serving containers, and advancing BC’s circular economy. The new grades will be produced using unique pulping capabilities developed at the Catalyst Port Alberni mill that net a higher yield in fiber use. As a result, the mill will be able to increase the amount of food packaging materials it produces but will use less residual wood fibre to do so.
The release papers are produced at Condat, Lecta's mill in France. After the launch several months ago of its new range of Linerset release liners with Linerset CCK (Clay Coated Kraft) release paper, Lecta now presents Linerset Glassine, a supercalendered paper for siliconization with very good lay-flatness, caliper, transparency and high resistance. Available in yellow and white, respectively, Linerset Glassine Y (Yellow) and Linerset Glassine W (White) are produced in substances from 45 to 78 g/m² for application on self-adhesive labels. Introducing these new release liners, Lecta advances in its transformation and diversification project at its Condat mill in France. With an investment of more than 80 million euros, Lecta has transformed its Line 8 paper machine at Condat with the aim of manufacturing release liners for siliconization. Lecta also has acquired a new supercalender, making Condat one of the most modern, efficient and environment-friendly factories in Europe.
Whether in store, online or at the doorstep, every detail in the cost umer journey matters. To help brands better connect with consumers, Neenah has released its newest Idea Shop by Neenah promotion. Designed in collaboration with the world renowned Design Army the promo highlights the power of attention grabbing packaging, point of purchase, and other uniquely branded samples that transcend the screen and engage the senses across each carefully branded consumer touchpoint. The cleverly packaged Idea Shop branded promotion pulls out all the stops, starting with a gorgeous deep black soft touch folding board box accented with black foil for a premium, sophisticated look and feel. Upon opening, lucky recipients are greeted with a personalized welcome, setting the stage for the layers of elegantly designed, distinctively printed goodies beneath. Everything that follows is a masterclass in creating sensory intrigue, welcoming a second touch, and leaving an impression.
UPM Raflatac is the first company in the world to invest in Ocean Bound Plastics (OBP) waste as label raw material in their new Ocean Action labels. The Ocean Action labels are made from ocean bound plastic using mass balance approach. Ocean bound plastic is abandoned plastic waste recovered from areas up to 50km inland from waterways, defined as “at risk of ending up in the ocean” by OBPCert. The new innovative label material is made possible by close collaboration with multiple partners in the product’s value chain. ”The new innovative Ocean Action label material is the latest step in our beyond fossils journey. It does not only help prevent the plastic waste from ending up in the oceans but also offers brand owners the possibility to meet their recycled content targets for packaging. The Ocean Action label material is an easy-to-use drop-in solution created especially for food and cosmetics end-uses as it has exactly the same performance as the current fossil-based labels,” says Eliisa Laurikainen, Business Development Manager from UPM Raflatac.
Stora Enso has started a feasibility study at its paper production site in Langerbrugge, Belgium, for the conversion of one of the two paper lines into a high-volume recycled containerboard line. Aligned with Stora Enso’s strategic focus on renewable materials, the investment would support the growth opportunity created by the increasing demand for recycled packaging board. Stora Enso’s Langerbrugge site currently has two paper lines in production, one for newsprint and one for supercalendared (SC) magazine paper. The feasibility study will focus on the conversion of the site’s newsprint paper line. The conversion would enable Stora Enso to further grow its recycled and recyclable packaging materials capacity and to meet the growing demand in end-use segments such as industrials, e-commerce, furniture and electronics. The feasibility study is expected to be finalised in the first half of 2023.
Today we are all experiencing the serious impact of climate change. Sappi Europe, as a global company, is committed to pursuing a stringent decarbonisation plan to reduce detrimental effects on the environment. As part of its long-term global commitment to climate protection and sustainable production, the company has successfully converted many of its production sites to renewable energy. At its Kirkniemi Mill in Lohja, Finland, Sappi Europe has invested an amount in the double-digit millions which will enable the full conversion of its energy supply to renewable bioenergy. This investment will reduce the mill’s direct fossil greenhouse gas emissions by roughly 90 per cent, equivalent to 230 000 tonnes of carbon dioxide per year. “This is just one of many measures we are taking on our journey towards greater sustainability. We are committed to being part of the solution and are rigorously focusing on our decarbonisation plan,” confirms Marco Eikelenboom, CEO of Sappi Europe. Visitors to the PulPaper event in Helsinki will have an opportunity to find out more about how the company is achieving its goals to become sustainable and future-proof.
Paper Excellence is pleased to welcome Doug Routley, MLA for Nanaimo – North Cowichan and Parliamentary Secretary for Forests to its Catalyst Crofton mill today to see how the recently awarded $5.85 million of CleanBC funding will impact the operation. Catalyst Crofton’s GHG emission reduction project is a combination of three process improvements that will result in a significant reduction in total steam energy demand, resulting in decreased natural gas usage at the mill. The three areas of focus for this project are: 1. Re-engineering an unused diffusion washer with state-of-the-art diffusion washing technology to maximize the black liquor fuel quality while using less steam energy. 2. Investing in fibre filter equipment to remove valuable wood fibre from the black liquor fuel and increase the efficiency of the evaporation process. 3. Automate the cleaning process of Evaporator #3 to improve steam efficiency through reduced evaporator downtime.
Kruger is pleased to announce that its affiliate Kruger Specialty Papers Holding L.P. today completed the acquisition of Domtar’s pulp mill in Kamloops, British Columbia. The Kamloops facility, which manufactures northern bleached softwood kraft pulp (NBSK) and unbleached softwood kraft pulp, will continue to operate as usual, honouring all existing volume commitments and agreements with customers and suppliers. The Mill’s 320 jobs will be maintained. In addition, Kruger intends to maintain ongoing initiatives to continue modernizing the Mill. This acquisition will also enable Kruger to secure the supply of high-quality pulp for some of its paper mills, including those in Quebec, where the Company is investing about $1 billion for the construction of two state-of-the-art tissue plants.
Building Strong Relationships reviews 2021 and looks at both our achievements and our opportunities to do better. In particular, it highlights the work we did in building relationships with the Indigenous communities in whose traditional territories we operate and our corporate giving campaign which had a greatly increased budget in 2021. The report also looks at our environmental and economic impacts nationally and on a mill-by-mill basis. From an environmental standpoint, 85% of our total energy use was renewable in 2021 and we have continued to reduce our greenhouse gas emissions—now down by 66% since 1990. From an economic perspective, the total economic activity created by Paper Excellence Canada operations was $4.8 billion. “Paper Excellence Canada’s spent this last year putting our words into action and I’m proud of what we have achieved,” said Graham Kissack, Vice President, Environment, Health & Safety and Corporate Communications. “Our vision is to be a profitable, sustainable, and globally competitive fibre products provider that is environmentally and economically beneficial to all stakeholders and this year’s achievements have supported us in that aim.”
Rayonier Advanced Materials Inc. announced that De Lyle W. Bloomquist has been appointed President and Chief Executive Officer of the Company, effective immediately. Mr. Bloomquist succeeds Vito J. Consiglio, who has stepped down as President and Chief Executive Officer of the Company, and as a member of the Company’s Board of Directors (the “Board”), with the mutual agreement of the Board. In connection with Mr. Bloomquist’s appointment, the Board named Lisa M. Palumbo as Non-Executive Chair of the Board. Mr. Bloomquist has served on the Company’s Board since 2014 and was named Non-Executive Chair of the Board in May 2020. He has decades of domestic and international leadership experience in the chemicals, minerals and materials industries, including in finance, sales, logistics, operations, IT, strategy and business development capacities. Mr. Bloomquist most recently served as a partner at Windrunner Management Advisors LLC, a management advisory services business, and prior to that served as the President, Global Chemical Business of Tata Chemicals Limited, and President, CEO and Director of Tata Chemicals North America Inc.
UPM Raflatac has signed an agreement to acquire AMC AG, a Germany-based company. This acquisition accelerates growth and expands the product offering of UPM Raflatac. Both parties have agreed not to disclose the purchase price or other transaction details. The transaction is expected to be closed latest in Q3, 2022. The closing of the acquisition is subject to regulatory approvals. With this acquisition, UPM continues in its strategic path, adding to the organic growth in the attractive specialty packaging material value chain and strengthens the company’s transformation and long-term value creation in one of its three spearheads of growth. AMC AG, founded in 1996 with roots going back to 1959 is a private company with long-term private owners. The company has two production sites Kaltenkirchen and Hagenow in Northern Germany. AMC’s business includes coating of pressure sensitive filmic labelstock and Viscom/Graphics materials under the Intercoat brand, and removable self-adhesive stationary products under the brand names Global Notes and Print Inform. The company employs more than 300 people and the latest financial year sales of AMC AG was EUR 110 million. UPM Raflatac expects to accelerate AMC’s growth and realize significant synergies.
Canfor Corporation is announcing the continuation of reduced operating schedules at its Western Canadian sawmills due to the ongoing global supply chain challenges. The Company has been operating at approximately 80% of production capacity since late March 2022. In addition, the Company will be implementing two weeks of rotating downtime across its primary sawmills in July and August, which will help align production capacity with the sustainable timber supply and transportation availability. The Company will use this downtime to complete maintenance projects and other site activities to help mitigate the impact on employees. These capacity reductions are expected to result in an incremental impact of approximately 275 million board feet by the end of August, in addition to the 100 million board feet reduction previously announced on March 30th.
The American Forest & Paper Association (AF&PA) released its April 2022 Printing-Writing Monthly report. According to the report, total printing-writing paper shipments remained essentially flat (+0.3 percent) in April compared to April 2021. Total printing-writing paper inventory levels increased one percent when compared to March 2022. U.S. purchases of uncoated free sheet (UFS) papers in April increased one percent compared to last April while the inventory level increased one percent compared to March 2022. UFS imports increased 12 percent while exports decreased 26 percent in March 2022. Coated free sheet (CFS) paper shipments increased five percent compared to April 2021 while the inventory level increased two percent compared to March 2022. CFS imports increased 16 percent while exports decreased ten percent in March 2022. U.S. purchases of coated mechanical (CM) papers in April decreased 21 percent compared to last April while the inventory level increased six percent compared to March 2022. CM imports and exports both decreased compared to March 2021, down 21 percent and nine percent respectively. Uncoated mechanical (UM) paper shipments increased 15 percent compared to April 2021 while the inventory level increased one percent compared to March 2022. UM imports increased 13 percent while exports remained essentially flat (-0.1 percent) in March 2022.
Carol Hoffman Schoedinger has joined Monadnock Paper Mills, Inc. as Senior Sales Manager. Ms. Schoedinger will have responsibility for selling Monadnock’s full suite of sustainable printing, packaging and technical/specialty papers in the U.S. Midwest. Prior to joining Monadnock, Ms. Schoedinger held a range of sales and business development roles with WestRock, Evergreen Packaging and Appleton Coated. She has a breadth of experience in the paper industry and a strong understanding of the needs of the print design community. Her strengths include developing long standing partnerships and exceeding customer expectations through creative graphic solutions.
Solenis, a leading global producer of specialty chemicals, closed on the acquisition of Neu Kimya Anonim Şirketi on May 26, 2022. Located in Istanbul, Turkey, Neu Kimya serves the heavy/light water treatment and oil and gas markets in Turkey, Southeast Europe and the Middle East. The acquisition of Neu Kimya fits well with Solenis’ direct-to-market strategy and will offer customers in the region improved product and service offerings. "This new acquisition adds to our strategic growth plan following our recent ownership change to Platinum Equity," said John Panichella, CEO, Solenis. "With the ongoing support from the Platinum Equity team, we continue to proactively seek other opportunities for similar acquisitions that enhance our ability to serve customers."
Total European shipments of graphic papers in March 2022 were down 11.1% vs. March 2021 and are down 7.0% year-to-date. Total European shipments of newsprint in March 2022 were down 11.1% vs. March 2021 and are down 4.5% year-to-date. Total European shipments of sc-magazine in March 2022 were down 12.0% vs. March 2021 and are down 7.2% year-to-date. Total European shipments of coated mechanical reels in March 2022 were down 18.8% vs. March 2021 and are down 15.7% year-to-date. Total European shipments of uncoated mechanical (improved & others) in March 2022 were down 11.9% vs. March 2021 and are down 8.6% year-to-date. Total European shipments of coated woodfree in March 2022 were down 4.6% vs. March 2021 and are UP 3.2% year-to-date. Total European shipments of uncoated woodfree in March 2022 were down 10.0% vs. March 2021 and are down 9.6% year-to-date.
We appreciate your trust in Monadnock as your partner and supplier and want to thank you for your patience and understanding as we navigate all of the unprecedented challenges relative to fulfilling your paper needs. Nothing could fully prepare any of us for the appearance and consequences of COVID-19 in 2020, nor did anyone comprehend the domino effect that would ensue relative to the availability of essential raw materials – specialty chemicals, fiber and adhesives, available converting capacity, logistics and transportation issues, and labor shortages. We are actively managing the challenges we face, providing transparency, and continuing to deliver results for all of our customers. Despite facing longer manufacturing lead times, we are leveraging our long-standing supply chain relationships to deliver what you need.
Stora Enso and wood technology company Modvion are partnering to establish wood as the material of choice for wind turbine towers. The collaboration’s purpose is to demonstrate the vast possibilities in using wood in demanding constructions. Modvion builds wind turbine towers with laminated veneer lumber (LVL), which proportionate to its weight is stronger than steel. Stora Enso is a leading supplier of mass timber products, including LVL. The towers are built in lightweight modules, enabling taller towers and easy transportation on public roads without permits or road reconstructions. Taller towers reach stronger winds, leading to more cost-efficient energy production.
Global consumer brands are facing increasing pressure from governments and consumers to improve their sustainability. Reducing the footprint of packaging and labelling is one critical area where sustainability can be improved. Compensating for today’s unavoidable emissions, UPM Raflatac has announced that RAFNXT+ is the world’s first CarbonNeutral® certified label material. Sustainable packaging and carbon neutral labelling, clearly explaining both the packaging and the labelling’s sustainable components, are increasingly seen as an important step to encourage consumers to purchase more sustainable products. To help their many customers take positive climate action, in 2019, UPM Raflatac announced that RAFNXT+ was the world’s first label material verified by the Carbon Trust to reduce its carbon footprint and help mitigate climate change. Now, the company has taken a step further and has introduced its RAFNXT+, the world’s first CarbonNeutral® label material certified as a CarbonNeutral® product by Natural Capital Partners.
Ahlstrom-Munksjö Holding 3 Oy’s Board of Directors has agreed an ownership reorganization plan under which the production assets, debts, and liabilities relating to its Decor business will be transferred from Ahlstrom-Munksjö Holding 3 Oy, without liquidation, to a newly formed company that will be named Munksjö. In the ownership reorganization, Ahlstrom-Munksjö Holding 3 Oy will divest the majority share of and remain with a minority share in the new Munksjö company to Ahlström Capital BV (wholly owned subsidiary of Ahlström Capital Oy) and Nidoco AB, both of which are affiliates of the current minority owners of Ahlstrom-Munksjö Holding 3 Oy. The planned reorganization is subject to customary closing conditions and is expected to be completed by the end of the third quarter of 2022, following which Ahlstrom-Munksjö Holding 3 Oy will start preparing plans for changing its business name to Ahlstrom.
Resolute Forest Products Inc. announced ratification of a four-year collective agreement by Unifor union members at seven of the company's pulp and paper mills in Canada, following an agreement-in-principle reached on May 15, 2022. "We are pleased with the result of the vote, which is a testament to the hard work and collaborative efforts of both the company and the union in recent years to address the challenges we are facing and to ensure the competitiveness of the business," said Remi G. Lalonde, president and chief executive officer. "Thanks to the support of our employees, we continue to pursue our vision to operate a model manufacturing company, built with the strongest business values, the highest respect for sustainability and the calling to serve our people and communities."
Stora Enso has launched a comprehensive biodiversity programme and related targets for its land holdings in Sweden. The programme, which covers the Company’s forest land in Sweden, has five focus areas, each with specific actions and measurable targets for 2030. Combined with the ongoing biodiversity work, the new biodiversity programme with more than 30 actions will lead to increased nature values and strengthened biodiversity across Stora Enso’s land holdings in Sweden. Some examples of activities from the programme’s focus areas and main targets for 2030: • Deadwood: Over 40% of red-listed forest species depend on deadwood. Stora Enso aims to increase the amount of dead wood on its land holdings by 40%. • Broadleaved trees: Broadleaved trees provide critical habitats for many species. Stora Enso will double the number of broadleaved trees in young forests and plant 700,000 birch trees annually. • Water: Watercourses and wetlands are often rich in biodiversity since many species depend on water for different life stages. Stora Enso will identify four major water landscapes for restoration and remove migration barriers in all identified valuable watercourses. • Species and habitats: An umbrella species is an animal or plant that lives in an area with many other endangered species. The new biodiversity programme focuses on protecting four umbrella species, which in turn benefit hundreds of other red-listed species. • Active biodiversity management: actions in this focus area include increasing annual prescribed burning by 20% on average in the protection areas over a five-year period.
Over the years, the definition of sustainability has evolved, and now customers are the driving force behind companies’ sustainability practices. Committing to environmental stewardship in product innovation and manufacturing processes will benefit the community, employees, and customers for generations to come. Encapsulating this philosophy, Sustana is elevating the principle of sustainability to a core corporate level and assimilating it as an integral part of their everyday business practice. The leading manufacturer of sustainably produced premium recycled fiber and paper solutions is committed to sustainable manufacturing and being good stewards of valuable resources such as energy and water. To read the full article in Manufacturing Technology Insights, go to: https://www.manufacturingtechnologyinsights.com/sustana
Sylvamo's board of directors authorized a share repurchase program to acquire up to $150 million of the company's common stock. "Our strong free cash flow enables us to begin returning cash to shareowners," said Jean-Michel Ribiéras, chairman and chief executive officer. "We also expect to continue paying down debt and will repurchase shares opportunistically to further increase our equity value.”
Ahlstrom-Munksjö has pledged to create sustainable, fiber-based solutions. PurposeSeal™ is pushing the boundaries of fiber-based end-use applications. PurposeSeal™ is a heat-sealed paper carefully constructed to ensure quality and protection for end-use packaging solutions. It boasts additional sustainability benefits when applied to Cristal™ Transparent Packaging Papers or trulyNatural™ unbleached papers. Ahlstrom-Munksjö recently received recyclability certification for the Cristal™ transparent paper product family, including PurposeSeal™ technology. These products have passed the SBS Equivalency (WMU SBS-E) testing protocol certifying these innovative papers recyclable from Western Michigan University. Additionally, Cristal™ and PurposeSeal™ have obtained 3rd party certification from Centre technique du papier, certifying Cristal™ heal seal coating is recyclable to the European Union’s EN13430 standards.