Kimberly-Clark to Invest $130M+ in Mobile Facility Expansion

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.

American paper companies have imposed a 20% duty on coated paper from the Port Hawkesbury Mill in Nova Scotia, while Irving Paper in New Brunswick and Catalyst Paper of Britsh Columbia have had a 18% tariff imposed. North Pacific Papers of Washington State has also filed for countervailing duties on Canadian uncoated groundwood paper from Canada. The Hawkesbury mill won on appeal in its first round with the NAFTA panel. The U.S. has until mid-summer to appeal that decision, while other cases are being appealed by both the Canadian Federal and Provincial governments. During a recent rally in Phoenix Arizona, U.S. President Donald Trump said the U.S. will “probably” terminate NAFTA because he doesn’t think a deal can be made. His comments come about a week after re-negotiation talks began. The U.S. has also formally demanded that the Chapter 19 dispute resolution panels favoured by Canada be scrapped. In the past, the majority of its decisions have been won by Canada. Ottawa has promised to walk away from the talks before it accepts a NAFTA without these panels. The first round of NAFTA talks held recently failed to bridge the differences between Canada, the USA and Mexico, and left little signs of any real compromises. Next month, Mexico will host the second round of talks from September 1-5. Talks will then move to Canada later in September and return to the United States in October.

After thorough analysis of the persistent shortage of economically available timber and challenging operating conditions in northern British Columbia, Canfor Corporation announced the permanent closure of its Polar sawmill in Bear Lake, BC and the suspension of its planned reinvestment in Houston, BC. This follows the announcement by our subsidiary company, Canfor Pulp, that one line of production will be indefinitely curtailed at the Northwood Pulp Mill. The Polar sawmill, with a production capacity of about 300 million board feet annually, has been curtailed since January 2024. The permanent closure will impact approximately 180 employees.