Appvion, Inc. announced that it has received approval from the United States Bankruptcy Court for the District of Delaware of all of the first day motions related to its Chapter 11 filing. Collectively, the orders issued by the Bankruptcy Court will help ensure that the Company continues operating its business in the ordinary course during its restructuring process. “We remain focused on operating our business as usual and serving our customers’ needs as we continue constructive discussions with our lenders on an expedited restructuring and emergence,” said Kevin Gilligan, Chief Executive Officer of Appvion. “The approval of our first day motions transitions us smoothly into our restructuring process, from which we expect to emerge with a sustainable capital structure, well positioned to compete, and primed to further invest in the innovation that has made Appvion a market leader in coated paper.” Click Read More below for additional detail.
Stora Enso has started a feasibility study and an environmental impact assessment (EIA) for a possible investment in Oulu. The feasibility study and the EIA evaluate a potential conversion of the Oulu paper mill into packaging board production. The feasibility study is expected to be concluded by the end of 2018, and the EIA process is expected to take a minimum of 6 months.
Currently, Oulu Mill has a production capacity of 360 000 tons of chemical softwood pulp and 1 080 000 tons of woodfree coated papers on two paper machines. The potential investment would include a new chemi-thermomechanical pulp (CTMP) plant, a brown-based cartonboard line with a capacity of 450 000 t/a and a kraftliner line with a capacity of 400 000 t/a.
The potential conversion of Oulu Mill would enable Stora Enso to further improve its position in the growing consumer board and packaging solutions businesses and take a major step in its transformation. The other option is to continue the current fine paper production.
Capital expenditure for the potential conversion is estimated to be approximately EUR 700 million during years 2019–2021. This would fall within the Group’s long-term capital expenditure policy of keeping capital expenditure into fixed assets approximately at the level of depreciation. The production on the potential new lines would start during 2020. Paper production at Oulu Mill will continue at least until early 2020.