Features Research & Innovation
News (September 01, 2004)

AGREEMENT

BREAKING BARRIERS

CRANBROOK, BC — Tembec and the Ktunaxa Nation have signed a working protocol, consultation and accommodation agreement. Intended to facilitate a positive and sustainable working relationship between the two parties, the agreement will attempt to govern activities carried out by Tembec on Ktunaxa traditional territory. The document also contains provisions that define a process for consultation and means to accommodate Ktunaxa interests.

“The signing of this agreement is a huge accomplishment for the Ktunaxa Nation in that Tembec recognizes and respects the Ktunaxa’s historic and ongoing use and occupancy of lands and resources within Ktunaxa traditional territory,” said Kathryn Teneese, administrator for the Ktunaxa Nation.

REVIEW

STORA ENSO’S OUTLOOK IMPROVING

HELSINKI, FINLAND — Stora Enso’s CEO Jukka Hrml is pleased with his company’s second quarter results. “In Europe the economic outlook is more positive than in the first quarter. The economic recovery is still moderate; nevertheless, paper demand, especially in fine paper grades, is improving. Price increases are expected in fine paper grades during the second half of the year,” he said.

Sales were up 2.8% at X3,102.9 million, up from the previous quarter’s X3,017.9 million. Operating profit was X58.5 million, X44.9 million less than in the previous quarter. Cash flow from ongoing operations was X138.5 million and cash flow after investing activities was -X186.7 million. Cash earnings per share were X0.43. Net financial items were -X26.2 or -0.02 per share. Market-relates production curtailments totaled 98,000 tonnes.

UPDATE

NA MECHANICAL PRINTING PAPER CAPACITY FORECAST

MONTREAL, QC — According to the Pulp and Paper Products Council, from the previous forecast issued in February, newsprint figures have been revised downwards by 405,000 tonnes in 2003 and 555,000 tonnes per year in 2004-2006. The bulk of the revisions result from the removal of three paper machines. Changes in the product mix at numerous mills are also a contributing factor.

AWARD

BOISE WINS INNOVATIVE EXCELLENCE AWARD

ITASCA, IL — Its new paper delivery system has won Boise the Graphic Arts Technical Foundation 2004 InterTech Technology Award. The award is bestowed upon a company that achieved excellence in the development of new technology predicted to have a major impact on graphic communications industries. Boise was recognized for its SPLOX speed-loading box design, developed with the intention to reduce strain on the spine by up to 51% when lifting boxes of paper.

“When we set out to design the SPLOX paper delivery system, we were convinced there was a better way to manage work flow for high-volume paper users,” explained Vince Phelan, director of product development and marketing communications with Boise Paper Solutions. “Not only can SPLOX products vastly reduce workplace injuries and fatigue, but they can also provide a boost to productivity for workers and employers.”

SPLOX was one of 13 products selected for the award.

CONTRACT

PORT ALICE NAMES IFP SALES AGENT

PORT ALICE, BC — International Forest Products Corporation of Foxboro, MA has been selected worldwide sales agent for Port Alice Specialty Cellulose Inc.

“We see strong demand in established markets and we are developing additional opportunities with new customers,” confirmed managing director of IFP’s BC-based subsidiary, Nairne Gray.

Port Alice executive vice president of operations and mill manager Steve Hagan is pleased with the relationship, crediting IFP’s expertise with the mill’s ability to return to full operation. The mill is now running on a full-time basis and employs 340 people. “We look forward to working with IFP to develop these unique global markets,” he said.

STATISTICS

WORLD CHEMICAL MARKET PULP INDUSTRY STATISTICS

MONTREAL, QC — According to statistics released by the Pulp and Paper Products Council, producer inventories declined by 14 000 tonnes compared to the previous month. At current shipping rates, it is estimated that producers held 33 days of supply at the end of May, one day more than the previous month. Pulp producers operated at 94% capacity, 6 percentage points more than May of 2003. Market pulp shipments were up 16.2% year-over-year and were 7% higher on a year-to-date basis.

PACKAGING

PACKAGING INDUSTRY ON THE UP AND UP

MONTREAL, QC — The month of June proved positive for the North American packaging industry. Containerboard demand increased 5.0% from the corresponding month last year. Production was up by 144,000 tons, or 5.3% compared to June 2003. North American mills operated at 97% capacity, a substantial increase from last year’s 91%. Inventories held at North American mills decreased by 42,000 tons over the previous month.

Boxboard demand also improved, up 1.6% compared to June 2003. North American kraft paper demand was also higher, up 8.3% from the same month last year. Although production of kraft paper was up by an impressive 18.6%, the low levels recorded in June 2003 were largely due to a strike at a major Canadian producer.

AWARD

LOOKING AHEAD

VANCOUVER, BC — Where will the pulp and paper industry be in ten years? From May 29-June 3, 2005, that’s exactly what a group of industry leaders will be trying to figure out. Summit 2005: The Future of the Global Forest and Paper Industry will see the convening of government policy makers, analysts, suppliers, customers and company executives in an effort to address the challenges anticipated to affect the industry within the next decade.

FORESTRY

DOMTAR GIVES THE GIFT OF GREEN

MONTREAL, QC — In a benchmarking move, Domtar and Nature Conservancy have transferred 4,044 hectares of Domtar land in the heart of the Sutton Mountain range in Quebec. The move will ensure the protection of nearly two-thirds of the Sutton Mountains, making it the largest private protected natural area east of Alberta. Domtar has also elected to certify all its forests and mills according to Forest Stewardship Council standards. “It is essential to preserve the wealth of our natural resources for future generations. That is why Domtar adopted a management philosophy that promotes sustainable growth,” explained Raymond Royer, Domtar president and CEO. “In this way we are helping to conserve our forests by encouraging the creation of protected areas while ensuring that our activities are sustainable,” he added.

POLLUTION

WEYERHAEUSER CLEARS THE AIR

FEDERAL WAY, WA — Despite its failure to admit liability, Weyerhaeuser has agreed to pay $900,000 US to settle alleged violations of federal and state air pollution laws at its pulp and paper plant in northwestern Pennsylvania. The company only acquired the plant after the violation notice had been issued. However, it also agreed to improve air pollution controls at its kraft pulp and paper mill in Johnsonburg, Pennsylvania.

The allegations purported that Weyerhaeuser made modifications to and operated two coal fired power boilers without the required upgrades to air pollution control equipment. Further complaints alleged the company didn’t obtain necessary state permits limiting sulfur dioxide emissions and violated the Clean Air Act standards for fossil fuel steam generating units.

RESTRUCTURE

PAPRICAN RESTRUCTURES

POINTE CLAIRE, QC — Despite recent downsizing, Paprican has undergone major reconfigurations of its Quebec and Vancouver offices in an effort to maximize its resources and energies. “The objective of the restructuring is to better position and strengthen Paprican’s role in the industry’s challenging environment. A leaner and more focused, creative and entrepreneurial Paprican will be better positioned to address the environmental and economic issues facing our industry,” said Frank Dottori, president and CEO of Tembec and chairman of Paprican’s board of directors.

The restructuring will focus on serving member companies in a more flexible way, reprioritizing core activities and expanding on research and serv
ice areas. The creation of new industry revenue sources and further developing partnerships with university researchers is also high on the priority list. “We are confident that we will be successful,” Dottori said.

Paprican president Joseph Wright is confident the changes will prove beneficial to all involved. “Paprican has preserved the essence of its strategic research program and maintains its critical core competencies absorbing the changes we have made. The new structure will allow Paprican to focus aggressively on what we deliver nationally and internationally,” he confirmed.

PAPERCLIPS

DOG DAYS OF LONDON

Kimberly-Clark’s products aren’t only available on grocery and convenience store shelves anymore. They’ve made the move into museums.

The Labrador puppy, featured on the company’s packaging of its toilet tissue products is the first fictional advertising character to adorn a spot in Madame Tussauds, the London waxwork museum.

The puppy’s star status kicked off more than three decades ago when he became the ‘spokespuppy’ for the Andrex brand in the United Kingdom. According to a recent poll conducted by Madame Tussauds, the yellow lab has won a place in the hearts of people in the United Kingdom, making it the favorite fictional television character of the U.K. It is estimated that more than one in 10 U.K. homes, or four million households, has a soft toy version of the little yellow puppy-that-could.

COMMUNITY

WEYERHAEUSER’S GOLDEN RULE

ARCADIA, LA — Employees of Weyerhaeuser Company’s Arcadia Oriented Strandboard operation joined community members in volunteering their time to help Crawford Elementary and Arcadia High School’s band. The undertaking is part of the Weyerhaeuser Company Foundation’s ‘Making Waves’ (Weyerhaeuser active volunteer employees) program.

Employees, in collaboration with parents and children facilitated the building of a playground project at Crawford Elementary this spring. Weyerhaeuser donated $2,500 to the project. Through the program, non-profit groups are able to benefit from both labour and financial donations from the company.

AWARD

IP HAMMERS IT HOME

MEMPHIS, TN — For the first time in 26 years, a forest products company has won the Graphic Arts Technical Foundation InterTech award. International Paper, recognized for its Hammermill Color Copy Gloss paper, is the first forest products company to take home the achievement in the two and a half decades of the competition.

“Forest product companies do not get enough recognition for their innovation and technology,” claimed Ned Spangler, brand manager of Imaging Papers. “But International Paper is a technology powerhouse and this InterTech award is a testament to the outstanding work being done by our employees,” he added.

The result of nearly ten years of work, Hammermill was designed to provide commercial printers with an option for digital printing and photocopying on glossy stock that acts like uncoated paper in electrophotographic equipment. The company was selected from a list of 33 submissions.