Pulp and Paper Canada

News
News (August 01, 2004)


August 1, 2004
By Pulp & Paper Canada

SAFETY…

SAFETY

KRUGER MILL OHSAS CERTIFIED

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MONTREAL, QC — The Kruger Place Turcot mill is the first pulp and paper mill in Canada to obtain registration under the OHSAS 18 001 health and safety standard.

The standard stipulates the mill must submit to audits of every workstation to evaluate potential health and safety hazards. Every activity is then examined and related hazards are analyzed and rated in terms of predetermined criteria. An action plan addressing every high-risk component is then developed to establish a control procedure to prevent accidents.

Kruger has been the recipient of several industry awards for innovation and energy conservation.

NEW MILL

PANASIA INCREASES STAKES IN HEBEI PROJECT

LYSAKER, NORWAY — PanAsia Paper has increased its ownership in the Hebei project to 80% from 65%. Norske Skog owns 50% of PanAsia Paper.

The Hebei project comprises the building of a new newsprint mill in Shiiazhuang in the Hebei province, located southwest of Beijing. The mill will have an annual capacity of 330,000 tonnes. Start up is planned for the second half of 2005.

LOAN

GEORGIA-PACIFIC SECURES LOAN

ATLANTA, GA — Georgia-Pacific has entered a $2.5 billion, five-year senior unsecured credit facility that includes a $500 million non-amortizing loan. Funded by a group of financial institutions led by Bank of America N.A. and JPMorgan Chase Bank, the new facility replaces a $2.25 billion five-year facility scheduled for maturation in November 2005.

The loan will be used to actualize price reductions and to provide the company with financial flexibility in its endeavors.

DONATION

BOWATER DONATES WOODLANDS

CALHOUN, TN — It may be the 50th birthday of its Calhoun operations, but Bowater is doing the gift-giving. The company is donating more than 3,700 acres of woodlands to the state of Tennessee’s Cumberland Trail State Park. Bowater is donating an additional 610 acres on the Cumberland Plateau and permanent conservation protection on 3,122 acres in the company’s Pocket Wilderness system.

The lands will be used primarily for the recreational and economic benefit of local communities.

ACQUISITION

INTERNATIONAL PAPER BUYS BOX USA

STAMFORD, CT — International Paper has acquired Box USA. The company intends to commence integrating Box USA’s packaging converting facilities and containerboard mill into its industrial packaging business effective immediately.

The transaction is on par with International Paper’s intention to evolve its three core businesses of paper, packaging and forest products.

AWARD

DOMTAR WINS AWARDS

MONTREAL, QC — Domtar is the recipient of three awards. The company scooped up the accolades at the Vision Awards Annual Report Competition of the League of American Communication Professionals for its 2003 annual report.

More than 1200 companies from 10 countries submitted their reports to the competition. Domtar ranked 15th out of the 1200 participants, earning the gold award for its annual report. It also won a second-place gold award in the manufacturing/mining category and a third-place silver for its report narrative.

AWARD

KRUGER WINS SIXTH YEAR RUNNING

MONTREAL, QC — For the sixth consecutive year, Kruger’s publication papers division has won the gold award from Dow Jones & Company. The publishing company annually gives the award to its best newsprint supplier. Senior vice president of sales and marketing of Kruger’s publication papers division Terrance Pendleton feels the award was well deserved. “Dow Jones expects us to perform, and six years of awards proves that we do.”

SALE

DOMAN SELLS PORT ALICE PULP MILL

DUNCAN, BC — Doman Industries has announced the Supreme Court of British Columbia has issued an order approving the sale of the Port Alice Mill to Port Alice Specialty Cellulose Inc, an affiliate of LaPointe Partners Inc. The duo will collaborate to reposition pulp and paper manufacturing facilities.

Terms of the agreement indicate Cellulose acquired the bulk of the mill’s assets including adjusted working capital valued at $2.73 million in consideration for one dollar and the assumption of outstanding obligations relating to the mill including employee and pension liabilities. All existing Port Alice employees will be offered employment by the purchaser as this was a condition of the transaction.

ACQUISITION

STORA ENSO BUYS SCALDIA PAPER

HELSINKI, FINLAND — Stora Enso has signed an agreement to acquire Scaldia Paper B.V. from International Paper. With 180 employees and a net sales of E109 million in 2003, Scaldia Paper will become part of Stora Enso Merchants division. The value of the transaction has been determined to be E30 million and is debt free. Subject to approval by regulatory authorities, the acquisition is anticipated to close at the end of the month.

UNION

NEW ZEALAND UNION FUMING

KAWERAU, NZ — The Engineering, Printing & Manufacturing Union of New Zealand is not happy. The union says news that a group of workers who are to lose their jobs at the Kawerau pulp and paper mill is indicative of the company’s lack of commitment to the country.

“It’s just more cost-cutting and even with the hefty proceeds from the sale of CHH Tissue, there is no new investment in New Zealand manufacturing,” he said.

When CHH bought the pulp operation from mill owner Norske Skog, it agreed to contract certain services from the Norwegian company. It has since reneged on the deal, compelling Norske Skog to lay off maintenance and other workers in its wood preparation operation and garage.

Adding fuel to the fire is the decision to fork over $240 million to buy a paper mill in China, and CHH’s announcement that $480 million from the sale of its New Zealand tissue operation will be placed in the pockets of shareholders, half of it to International Paper.

“We think that at least the loose change should be invested in New Zealand to add to the much needed timber processing capacity in this country,” Little said.

RECOGNITION

UNIVERSAL FOREST PRODUCTS IN TOP 50

GRAND RAPIDS, MI — Universal Forest Products has been included in the list of the “Top 50 U.S. Manufacturers,” compiled by Industry Week magazine. Selected for inclusion two years in a row, Universal and all other 49 manufacturers were evaluated in terms of financial performance during the past three years in areas of revenue growth, return on equity, profit margin, asset turnover, inventory turnover and return on assets.

SERVICES

PAPRICAN OFFERS QUALITY ASSURED TESTING

MONTREAL, QC — Paprican has integrated a variety of its measurement services into one, all-encompassing group. Previously offered separately, Paprican’s Quality Assurance Services for testing have been characterized into five groups including standardized aluminum foil, standard reference pulp, pulp, paper and board monitor programs, Canadian standard freeness calibration and optical calibrations.

Benefits of the services include the potential for a lab to validate its own test results, being able to minimize product variability and to calibrate automated and on-line testing equipment.

Alan Davis of NorskeCanada, Powell River has found the monitoring system to be highly effective. “I have found that the Paprican Monitor Program for paper testing provides me with a valuable and comfortable verification of the accuracy of our testing equipment, calibrations and procedures.”

ACQUISITION

WEST FRASER BUYS WELDWOOD

VANCOUVER, BC — In a transaction that will see the combining of Canada’s two leading integrated forest product companies, West Fraser Timber Co. has bought Weldwood of Canada Limited from International Paper Company. The deal didn’t come cheap, West Fraser doled out $1.26 billion in cash for the acquisition, securing its spot as North America’s third largest lumber producer. The transaction is expected to close in the fourth quarter.

STUDY

VISA LIMIT TO HURT INDUSTRY

PORTLAND, ME — A cutback in the issuing of visas to foreigners, including Canadians, could devastate
Maine’s wood and paper industries. A study completed in the state concluded that a failure to bring in Canadian loggers could potentially cut into Maine’s production by more than 25%. The study further indicated the loss of production fueled by high wood prices could lead to temporary mill shutdowns and layoffs. Of the 3000 loggers employed in Maine, Canadians account for approximately 700 of them.

PAPERCLIPS

ANY COLOUR YOU WANT…AS LONG AS IT’S PAPER

With the trend moving increasingly towards gas-guzzling, monstrous SUV’s, it’s difficult to imagine a car made out of paper ever dominated the roads. However, such was the case in socialist East Germany prior to its reunification. Affectionately dubbed the “people’s car,” the Trabant, the first automobile made from recycled waste materials rolled out of production lines in 1958.

The Trabant dates back to 1935. Originally designed as a motorbike, the body was fabricated from phenolic resins reinforced with paper, wood chips and other fibres.

Although production of the Trabant stopped in 1994, the paper car remains popular. It is estimated that nearly 50% of the three million made continue to be used in Central and Eastern Europe. In fact, the Trabant has inspired modern European car manufacturers such as Audi, Mercedes and BMW to use natural fibre composites in their construction.

EU legislation has dictated that by the year 2015, cars must be made from 95% recyclable material. Nevertheless, it’s unlikely that North Americans will be handing over their Pathfinder keys in exchange for a car made out of paper materials any time soon.


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