Pulp and Paper Canada

EXPANSION: Norampac Expands Its Product Base

September 1, 2001  By Pulp & Paper Canada

MONTREAL, QC — Norampac announced the start-up of a new corrugated converting plant in Fort Worth, TX, known as Norampac Dallas-Fort Worth L.P. Norampac invested over US$4.5 million, mainly in equipm…

MONTREAL, QC — Norampac announced the start-up of a new corrugated converting plant in Fort Worth, TX, known as Norampac Dallas-Fort Worth L.P. Norampac invested over US$4.5 million, mainly in equipment, in this plant which specializes in the production and design of high graphic quality corrugated packaging.

Norampac has also entered into an agreement with Norseman Allfoam Inc. to purchase the assets and the business of its division of Mexico: Norseman, S.A. de C. V., which specializes in the manufacturing of polyethylene for protective packaging. This acquisition allows Norampac to compliment the activities of its recently inaugurated division of Monterrey, Mexico, and offer a one-stop shopping option for both corrugated and protective packaging.


ADDED DUTIES: Softwood Lumber Ruling

MONTREAL, QC — Opinion is divided about the recent preliminary ruling from US Department of Commerce concerning the market value of Canadian softwood lumber. The US lumber industry (sawmills, employees and owners) has hailed the recognition of what it refers to as the massive Canadian subsidies which, in its opinion, create an unfair trade practice. Under international trade laws, this would give the US a right to off-setting duties, set at 19.3%.

However, according to some credit-rating institutions, the Canadian lumber industry has dealt with such duties in the past, for example, the taxes on shipments to the US over certain quota limits. The weak economic market might make the consequences more difficult for the consumer who ultimately pays for that part of the additional cost not absorbed by the Canadian producers.

Home builders in the US have stated that the decision is counterproductive in that it will hurt the nation’s housing consumers by raising the cost of housing.

The final determination by the Department of Commerce is scheduled for the end of October, 2001. Since lumber exports from Canada have surged since the initial investigation, a preliminary determination into a dumping charge will be made on September 24, 2001.

Stating that the preliminary determination contained a number of errors, International Trade Minister Pierre Pettigrew called the imposition of duties “unwarranted and punitive”. The minister has requested accelerated World Trade Organization consultations with the US to review the actions taken by the American government.

CSA PROGRAM: Forest Products Marking Program Launched

TORONTO, ON — CSA International announced the launch of its Forest Products Marking Program in response to the growing marketplace demand for products from well-managed forests. The new CSA program tracks the product from the forest through the phases of ownership, transportation and transformation prior to reaching the consumer. Qualified forest products will be identified by the CSA Sustainable Forest Management (SFM) Mark.


Norske Skog Canada will take a further 15 400 tonnes of market pulp and 5 500 tonnes of newsprint out of production during the third quarter to keep inventory levels in line. This will bring total maintenance and market-related pulp curtailment to 31 000 tonnes for the third quarter and 99 000 tonnes for the three fiscal quarters in 2001.

Corner Brook Pulp and Paper Woodlands received a Certificate of Registration for the ISO 14001 Environmental Management System in Corner Brook. Similar to the Quality Management System implemented for ISO 9001, the ISO14001 requires implementation of an Environmental Management System in accordance with defined internationally recognized standards.

Weyerhaeuser Company’s Forestlands operations in the Okanagan and Boundary Timber Supply Areas have been certified to the Canadian Standards Association’s Sustainable Forest Management system standard. The certification covers approximately 324,200 hectares (810 500 acres) of Crown and private forests that Weyerhaeuser manages or owns in the Vernon, Penticton and Boundary Forest Districts.

PRODUCTION: Abitibi-Consolidated Continues Operating Iroquois Falls #1 Machine

MONTREAL, QC — Abitibi-Consolidated reported that it has managed to hold second quarter newsprint prices steady but the soft market in the US and the economic slowdown will have an inevitable impact in the near future.

The company also announced that, following an agreement with the four unions representing employees of its Iroquois Falls, ON, division, the 50 000 tonne #1 specialty machine will remain in operation. As part of the agreement, approximately 40 people will be laid off before the end of the year and another 75 positions will be eliminated over the next three years, mainly through early retirements.

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