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ENVIRONMENT

ABITIBI PROTECTS NEWFOUNDLAND WILDERNESS

ST. JOHN’S, NF — The Nature Conservancy of Canada and Abitibi-Consolidated Inc. announce the creation of a new protected area at Lloyd’s River Escarpment in central Newfoundland.

The 768-hectare (1,897-acre) gift of wilderness property boasts pristine forests and wetlands, providing critical habitat for the endangered Newfoundland Pine Marten.

The Lloyd’s River Escarpment Natural Area is NCC’s most ambitious land conservation project in Newfoundland and Labrador to date. The donation from Abitibi will become Newfoundland and Labrador’s first ecological gift under the federal Ecological Gifts Program.

It is currently undergoing the federal review process. The Lloyd’s River donation is dominated by 58% spruce-fir productive forest and 24% non-commercial forest, with smaller areas of barren, wetland and water systems.

MILL

ABITIBI CONVERTS ALMA

ALMA, QC — Abitibi-Consolidated Inc. converts PM 14 at Alma, Quebec, from newsprint to coated groundwood.

The performance of similar equipment at other Ab-Con mills was a significant factor in the decision.

The rebuild will target sections from the former to the reel. The present Bel-Form former will be rebuilt into a modern DuoFormer D, allowing for maximum flexibility for optimum product quality. The press section will be a new Voith Centri NipcoFlex +3rd press for maximum press dryness and two-sidedness control. The main dryer section will also be rebuilt and will include DuoStablizers and VentiStablilizers for sheet stability.

The coater will be a Transfer Roll Coater from Voith-IHI. This coater will provide uniform Design speed is 1100 mpm and start-up of the rebuilt 8360 mm wide machine is scheduled for May 2004.

REFERENDUM

71% VOTED YES FOR NEW SKEENA

VANCOUVER, BC — A referendum was held in Prince Rupert, BC, on July 5 where 71% of people voted yes to the proposition that the city invest $20 million in New Skeena.

New Skeena has been troubled the past few months due to the change in management. Last year, the present management set out to transform the old Skeena Cellulose into a low cost producer. New Skeena Forest Products is now a completely different company and is poised to benefit from the $35 million that has been invested by NWBC Timber and Pulp Limited over the past 15 months in a comprehensive restructuring and reorganization effort.

Previous reports said New Skeena CEO Dan Veniez offered a 3% share to the city and a seat on New Skeena’s board of directors, as well as an interest rate of prime plus 5% for the $20 million loan, so that the town would be paid in full within two years.

However, if New Skeena fails to repay the money, the city would end up owning the Terrace sawmill, which would likely end up as security to the lender.

CAPITAL SPENDING

SMURFIT-MBI EXPANDS

MILTON, ON — Smurfit-MBI expands its production capacity through the addition of a new high performance corrugated container plant in Milton, ON.

The new greenfield facility will cost an estimated $60 million to build. Construction is scheduled to begin in August 2003. The plant should be fully operational by the third quarter of 2004.

Smurfit-MBI will initially employ approximately 100 workers at this new 255,000 square foot facility. The plant will be equipped with a new BHS corrugator. Not only will this state-of-the-art piece of equipment provide increased scheduling flexibility and consistent high quality board but it will also be capable of rapidly producing several types of fluting with very short cycle times. This highly automated plant will be able to produce an estimated 2 billion square feet of converted boxes annually.

EXPANSION

CASCADES TO BUILD NEW IT CENTRE

KINGSEY FALLS, QC — Cascades Inc. will have a new Information Technology Centre as of December 2003. The 23,000 sq. ft. building will regroup Cascades’ in-house software development for its operations worldwide.

The new facility will be built at an estimated cost of $3 million and will be located in Kingsey Falls. The building will house over 125 work stations, 12 meeting rooms, 3 training facilities and a data center. Construction is scheduled to start this week and Cascades has mandated the firm of Morin Lemay Ct, Architects, to design of this centre.

ENVIRONMENT

MILL FINED FOR RELEASING SILT INTO STREAM

KAPUSKASING, ON — Tembec Spruce Falls was fined $30,000, plus a victim fine surcharge, and pleaded guilty to two charges related to the discharge of silt into a stream.

The mill’s Woodlands Division built a 9 km logging road in Griffin township in 2001 to access timber. But improper road construction methods allowed significant amount of silt to enter into a stream leading to the Groundhog River in July 2001.

The company reported the discharge to the Ministry of Natural Resources but failed to notify the Ministry of Environment.

CLOSURE

NEWARK GROUP CLOSES BOXBOARD MILL

CRANFORD, NJ — The Newark Group closed the Newark Boxboard Mill in Newark, NJ.

The mill has operated since 1912 and was the first mill to be acquired by the present ownership of The Newark Group. The mill was a true pioneer in the recycled paperboard industry, and had the distinction of holding one of the original patents for using old newspapers in the manufacture of boxboard.

All paperboard produced at Newark Boxboard will be made available to our customers from alternate Newark Mills.

BANKRUPTY COURT APPROVAL

CROWN PACIFIC RECEIVES $40M DIP FINANCING AGREEMENT

PORTLAND, OR — Crown Pacific Partners, L.P., an integrated forest products company, announced that it and its affiliates have received an interim order from the Bankruptcy Court approving the implementation of a $40 million debtor-in- possession (DIP) loan facility previously arranged with The CIT Group/Business Credit, Inc., a unit of CIT Group.

With the implementation of the DIP facility, the Partnership should have adequate liquidity to pay its vendors for goods and services delivered to the Partnership after the filing of Chapter 11 petitions on behalf of the Partnership and its affiliates on June 29, 2003. During the reorganization process vendors who deliver goods and provide services to the Partnership receive priority payment protection under the bankruptcy law for such goods and services.

OSB MILL

LP TO RESTART CHAMBORD

PORTLAND, OR — Louisiana-Pacific Corporation announced it will restart its Chambord, QC, oriented strand board (OSB) mill. The mill, idled for 13 months due to an employee work stoppage, is expected to resume production within three to four weeks.

Through the assistance of a government-appointed conciliator, LP reached an agreement with the members of the Syndicat Canadien des Communications, de l’energie et du papier, section locale 502Q, on a new seven-year contract.

PULP

MARKET PULP INVENTORIES UP

MONTREAL, QC — World chemical market pulp producer inventories increased by 119,000 tonnes in June, compared to the previous month.

At current shipping rates, it is estimated that producers held 36 days of supply at the end of June. Pulp producers operated at 90% of capacity. Market pulp shipments were down 7% year-over-year, but were 2% higher on a year-to-date basis.

PAPERCLIPS: PAPER SIZE — IT MATTERS! INDUSTRY NEWS

Even before the First World War, many industrialized countries thought about standardizing paper sizes to make it easier for the post offices to handle mail.

In 1690, the Dutch invented the two-sheet mold. The average maximum stretch of an experienced vatman’s arms was 44″. Many molds at that time were around 17″ front to back because the laid lines and watermarks had to run from left to right. To maximize the efficiency of papermaking, a sheet this big was made, and then quartered, forming four 8.5″ x 11″ pieces.

In early 20th century, the United States held a joint meeting between manufacturers, distributors and users and drafted the Simplified Practice Recommendation R22, which became effective on June 15, 1933. This
formalized the existing sizes that were frequently used and did not add new ones.

Sources: Institute of Paper Science & Technology

American Forest & Paper Association#text2#