Resolute Forest Products Announces SC Price Increase

As part of Sappi Europe's full scale decarbonisation roadmap, Gratkorn mill is expanding the share of biomass to be used as an energy source, further driving the move away from fossil fuels as part of the mill’s contribution to the European roadmap. The project follows the recent modernisation of the power plant boiler which enabled the shift from coal to a combined approach of biomass and natural gas. The mill is now embarking on a next step, enhancing its infrastructure and therefore capacity in order to handle the delivery, sorting and processing of increased biomass levels. This increased utilisation requires an improved biomass handling system at the mill as well as decentralised intermediate storage terminals within the surrounding regions.

Resolute Forest Products Inc. reported net income of $268 million for the quarter ended June 30, compared to net income of $6 million in the same period in 2020. Sales were $1,140 million in the quarter, an increase of $528 million from the year-ago period. Excluding special items, the company reported net income of $300 million, or $3.74 per diluted share, compared to a net loss of $22 million, or $0.25 per share, in the second quarter of 2020. The company reported operating income of $406 million in the second quarter, compared to operating income of $6 million in the second quarter of 2020. The improvement reflects higher selling prices ($500 million) in the wood products, pulp and paper segments, offset by the stronger Canadian dollar ($39 million), higher fiber costs ($27 million), and maintenance ($14 million). At $445 million, adjusted EBITDA in the second quarter was $408 million higher than the second quarter of 2020.

Employee consultations for UPM Communication Papers were concluded at the Jämsä River mills this week. The UPM Kaipola paper mill in Jämsä, Finland, will be closed permanently by mid-December. UPM’s second paper mill in Jämsä, UPM Jämsänkoski, will continue operations with one graphic paper machine and two specialty paper machines. The parties were not able to identify an economically viable solution for the future operation of UPM Kaipola. Consequently, Kaipola’s three paper machines will be permanently closed, affecting altogether 448 positions at the mill, of which 20 positions will be transferred to UPM Jämsänkoski’s Specialty Papers operations. Approximately 20 % of the redundancies will be retirements, with discussions pending. The closure will lead to an annual reduction of 720,000 tonnes of graphic paper capacity, thereof 450,000 tonnes of newsprint and 270,000 tonnes of coated mechanical paper. An after-care team will ensure safe conditions at the mill after the closing.