A fire broke out on Friday evening at Hallsta Paper Mill in Hallstavik, outside Norrtälje, Sweden. No-one was injured, but production has been stopped. The fire took place in the pulp factory in the north of the factory site. It was put out by the emergency services, and clean-up efforts began immediately at Friday night. The two paper machines at the mill were not affected or damaged by the fire. Paper production has been halted until activities in the fire-damaged pulp factory can be resumed. The current assessment is that it will be possible to start up the pulp factory again, in any case partially, within two to three weeks.
RISI reports that Lecta and Burgo are separately raising prices by 6% to 7% on CWF and UWF grades effective with deliveries from July 2018 onward.
Verso Corporation (OTCPink: VRSZQ) announced today that the bankruptcy court presiding over Verso's Chapter 11 bankruptcy proceeding yesterday authorized Verso to reject a specialty paper supply contract with Expera Specialty Solutions. The contract with Expera, which was an element of the sale by International Paper Company of its industrial papers business to Thilmany, LLC in 2005, had a 12-year term expiring in 2017. The contract required Verso, as the assignee of International Paper, to manufacture specialty paper on the A5 paper machine at its Androscoggin mill in Jay, Maine, for sale to Expera, as the successor to Thilmany, at a price essentially equivalent to Verso's cost of producing the paper. By virtue of the bankruptcy court's order, the Expera contract now is rejected, which is essentially a termination of the contract that is authorized by federal bankruptcy law.
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced the filing of a Notice of Arbitration under the North American Free Trade Agreement (NAFTA) with regards to measures taken by the former provincial NDP Government in Nova Scotia and the former Conservative Government of Canada in support of the Port Hawkesbury paper mill. Resolute contends those measures discriminated in favor of Port Hawkesbury and resulted, among other damages, in the closing of Resolute's Laurentide mill in October 2014, depriving Resolute of its investment in that mill, and the value of other investments, in violation of the Company's rights under NAFTA as a U.S. investor in Canada. The Company is seeking damages for direct losses of approximately $70 million, consequential damages, and additional costs and relief deemed just and appropriate by an arbitral tribunal. Under NAFTA and applicable principles of international law, Canada is responsible for Nova Scotia's acts.