Norske Skog's gross operating earnings (EBITDA) in the fourth quarter of 2014 were NOK 190 million, down from 208 million in the third quarter. Operationally, the EBITDA was flat with a weak magazine paper market in Europe offset by completion of the Boyer ramp-up. The depreciation of NOK occurred late in the quarter and had limited impact on the quarterly result. Gross operating earnings for the full year 2014 were NOK 801 million, a reduction of NOK 61 million compared to 2013, mainly reflecting a prolonged ramp-up of the new magazine paper machine at Boyer in Australia and lower sales volumes due to loss of capacity at Singburi, Pisa and Walsum. The net loss of NOK 1.2 billion in the fourth quarter of 2014 was significantly impacted by a negative foreign exchange effect on foreign denominated long-term debt and negative changes (with no cash impact) in the value of energy contracts.
Domtar Corporation (NYSE: UFS) (TSX: UFS) today entered into an asset purchase agreement with Appvion Operations, Inc. to acquire Appvion’s Point of Sale (POS) paper business. The agreement includes the coater and related equipment located only at the West Carrollton, Ohio, facility as well as a license for all corresponding intellectual property. The transaction is expected to close in the second quarter of 2020.
“The combination of Domtar’s world-class paper-making capabilities with the West Carrollton coater’s significant scale will make a globally competitive point of sale paper business and provide new options for our future growth,” Domtar President & Chief Executive Officer John Williams said.
“Appvion and Domtar have enjoyed a strong mutually beneficial relationship over the last several years as part of our long term supply agreement,” Graeme Hodson, president of Appvion’s Paper division said. “The West Carrollton asset sale builds on that relationship and provides an opportunity for our POS business employees to become a part of a large integrated pulp and paper producer with the capability to leverage the coating asset to its maximum potential. Appvion will work closely with Domtar to enable a smooth transition of the business and ensure our POS customers continue to receive the exemplary customer service and high quality products they have come to expect.”
Appvion will continue its focus and development efforts on its broad range of products servicing its customers in the Tag, Label & Entertainment markets, the Carbonless & Specialty paper markets, as well as the newly formed Packaging & Specialty Coating Division.