2018 and Fourth Quarter Highlights: • Reported operating income of $609 million for 2018; adjusted shareholder net income of $488 million, or $3.83 per share and a return on invested capital of 19% • Fourth quarter adjusted operating loss of $(3) million and sales of $1.03 billion; adjusted shareholder net loss of $(28) million, or $(0.23) per share • Net debt of $156 million, or 6.2% net debt to total capitalization, at December 31, 2018 • Announced acquisition of 70% of the VIDA Group of Sweden (“VIDA”) for 3,990 million Swedish Krona (approximately CAD$580 million), adding 1.1 billion board feet annual capacity of high-quality spruce and pine products • Announced phased acquisition of Elliott Sawmilling Co., Inc. (“Elliott”) over a period of two years, for US$110 million, adding 210 million board feet of high-value Southern Yellow Pine lumber annual capacity. Click read more below for additional detail.
Tomsk Region Governor Sergei Zhvachkin today in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping will sign in Moscow a memorandum on the construction of an indusrtial forest products complex that will include a pulp and paper mill (PPM), sawmill, and CHP (combined heat and power) plant in the Tomsk Region (Siberia) of Russia.
Chinese investors Xinjiang Zhongtai Group, Xinjiang Fulida Fibre, and RosKitInvest will invest about 50 billion rubles (approx. USD 983.3 million) in “Beloyarsky LPK”, according to Russian news agency RIA Tomsk.
It has been reported that the pulp mill will have the capacity to produce 500,000 tons per year of unbleached pulp from both softwood and hardwood.
Mr. Zhvachkin said, “We primarily assessed the possible impact of pulp and paper production on the environment, studied the experience of building such facilities in Oslo and other European cities. Modern technological level PPM allows the processing of raw materials and disposal of waste, nullifying the impact on the environment.”
RIA Tomsk said the project will be implemented during 2015 – 2020.