Displaying items by tag: pulp

Chinese Rayon Producer Buys Minority Interest in Neucel Specialty Cellulose

Zhejiang Fulida Ltd. has taken a direct minority investment in Neucel Specialty Cellulose Ltd. and signed a long-term supply agreement to procure Neucel's chemical cellulose product. Fulida is one of the leading producers of rayon in the world.

Neucel plans to use the investment to accelerate its capital plan targeted mainly at capacity expansion in addition to cost and quality improvements.

"This partnership will enable us to gain an improved market presence in China and solidify our strong position in both the viscose and specialty markets," said Bob Taylor, president and CEO of Neucel.

"Viscose rayon fibre production capacity has increased greatly in China and competition has become intense. With the relationship with Neucel, Fulida gains a smooth and stable supply of dissolving pulp materials," said Jainer Qi, CEO of Fulida.

Neucel plans to deploy the available capital immediately to keep pace with the high customer demand in the chemical cellulose market. The company notes that this capital will complement the funding provided by the Government of Canada's Pulp and Paper Green Transformation Program to further reduce its energy consumption.

The $6.5 billion in controversial black-liquor credits earned in 2009 by 21 publicly traded pulp and paper companies was far more than their total profit for the year.

Despite the government’s unintended largesse, the 21 companies had combined net income of about $3 billion, according to an exclusive Dead Tree Edition analysis of documents filed with the Securities and Exchange Commission.

Without the U.S. government subsidy, only nine of the companies would have been profitable in 2009, In fact, three recipients – Weyerhaeuser, NewPage, and Sappi – together lost $1.1 billion last year despite receiving nearly $800 million from the black-liquor program that expired on Dec. 31. AbitibiBowater, the one recipient that has not reported earnings for the 4th Quarter, almost certainly lost hundreds of millions as well.

At least one-fourth of the country’s capacity to make kraft pulp is in the hands of privately held companies that don’t have to file with the SEC. Assuming they took advantage of the “alternative fuel mixture” program in the same way that their publicly held peers did, the federal government probably shelled out between $8 and $9 billion to pay to do what they would have done anyway – use black liquor, a pulp byproduct, as a fuel source for their pulp operations.

Several of the public companies' reports state that they expect to receive no subsidies for black liquor this year. And they're right.

But don’t tell that to Congress or the news media. Obama Joins in on the Black Liquor Two-Step documented how sloppy reporting by leading news organizations had allowed Democratic Congress members to claim they were saving money by excluding black liquor from the new Cellulosic Biofuel Producer Credits (CBPC) -- a program that black liquor couldn't qualify for anyway.

In the 12 days since that was published, the black-liquor silliness in Washington has gotten even worse, with Republicans joining the shell game. Sen. Jim Bunning (R-KY) tried to play taxpayer hero this week by proposing to “pay” for a new jobs program by closing the non-existent CBPC loophole. But Democrats blocked that effort because they have already committed to using the bogus savings for healthcare reform.

Bunning's effort to exclude black liquor from CBPC "is absolutely meritorious and should be adopted whatever else Congress does," The Washington Post opined in a fact-challenged editorial. "This particular piece of corporate welfare showers paper companies with about $2.5 billion per year . . . that encourages them to generate power with 'black liquor,' an 'alternative fuel.'" Nope. Not a dime has been paid to pulp and paper companies under CBPC.

Here are the 21 publicly traded companies, listed according to the amount of credits they received. The first number is the amount of black-liquor credits reported, the second is 2009 net income:

* International Paper: $2.06 billion in black liquor credits; $2.36 billion net income
* Smurfit-Stone Container: $654 million; $8 million
* Domtar: $498 million; $310 million
* MeadWestvaco: $375 million; $225 million
* Weyerhaeuser: $344 million; $-545 million
* NewPage: $304 million; $-308 million
* AbitibiBowater: $284 million (estimated); $-801 million through 3rd Quarter
* Verso Paper: $239 million; $106 million
* Temple-Inland: $218 million; $206 million
* Boise: $208 million; $154 million
* Rayonier: $205 million; $313 million
* Kapstone Paper and Packaging: $178 million; $80 million
* Packaging Corporation of America: $176 million; $266 million
* Clearwater Paper: $171 million; $182 million
* Graphic Packaging: $147 million; $56 million
* SAPPI: $136 million; $-251 million
* Buckeye Technologies: $130 million; $154 million
* P.H. Glatfelter: $108 million; $123 million
* Rock-Tenn: $75 million; $279 million
* Appleton Papers: $18 million; $25 million
* Wausau: $14 million; $21 million

Source: Dead Tree Edition

UPM's President and CEO Jussi Pesonen stated today in the company's Annual General Meeting that demand is recovering in UPM's main markets and signs of increased investment activity are emerging.

"Chemical pulp market and prices have been stronger than anticipated. Demand for pulp in China has been on a good level already for some time and the consequences of the natural catastrophe in Chile are further impacting the market situation."

"The prices for fine and speciality papers have increased due to good demand and increased cost of pulp. However, the significant decline in newsprint and magazine grade prices materialised."

"The stevedores' strike in Finland caused significant costs and loss of revenue, the main impact of which will affect March and April 2010. The estimated direct daily costs will remain below EUR 3 million, as we were able to have part of our production running throughout the strike. For example our pulp mills and speciality paper machines remained operating."

Pesonen said in the Annual General Meeting that UPM is moving on to a new development phase. "Our productivity has undergone vital increase during the last five years. Our production units and operating processes are now efficient and modern. We cannot identify needs for major structural changes in the company in the foreseeable future. Continuous improvement and cost efficiency continue to be part of our everyday operations but strategic initiatives and building on UPM's strengths will be clearly more our focus."

The CEO’s presentation in the AGM is available on ONE.UPM and at www.upm.com > Investor Relations.

Södra’s PulpLabs website, which presents selected research projects in a public and creative manner, received the prestigious Site of the Day award on 14 March.

The award was made by inspirational internet portal FWA – Favourite Website Awards – which highlights an unusually creative and innovative website on a daily basis, and has done so since the site was founded in 2000.

Södra’s website www.sodrapulplabs.com was developed in conjunction with the Garbergs advertising agency in Sweden. Since its launch in April 2009 more than 10,000 visitors from 100 different countries have visited the website. Visitors can follow three challenges from the research stage via tests and collaboration through to finished product.

>> Click here to go to PulpLabs.

Read more about FWA www.thefwa.com

For further information, please contact:
Södra, Thérèse Thelin, +46 470 85725
Garbergs, Carl Bock, +46 8 651 5151

Due to the significantly rising raw material costs during the last months, particularly pulp and logistic costs, M-real Zanders increases prices for carbonless papers for deliveries from 19 April 2010 up to 10 per cent.

For any further questions:

Heikki Husso, Senior Vice President, Speciality Papers
Tel: +49 2202 15 2000
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Helga Disimino, Vice President, Sales & Marketing Merchant Business, Speciality Papers
Tel: +49 2202 15 6300
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Domtar Corporation (NYSE/TSX: UFS) announced today that it will permanently close its coated groundwood paper mill in Columbus, Mississippi. The Domtar coated groundwood paper mill has an annual production capacity of 238,000 tons of coated groundwood and 70,000 metric tons of thermo-mechanical pulp. The mill currently has 219 employees. Operations are expected to cease by the end of April 2010.

"Market conditions for coated groundwood paper are challenging and despite the best efforts of our employees - and these efforts have been commendable - the mill continues to suffer from a weak cost position," said John D. Williams, President and Chief Executive Officer of Domtar. "With this permanent closure, Domtar is exiting the coated groundwood paper business."

Domtar also announced the sale of its Choctaw(R), Saturn(R) and Jupiter(TM) coated groundwood product lines and trademarks to NewPage Corporation. The sale to NewPage also includes the mill's paper inventory and book of business. Domtar intends to dismantle and dispose of remaining assets as deemed appropriate.

Domtar will take measures to assist employees affected by these decisions in accordance with its policies.

The government of Brazil this week released the final retaliation list on U.S. goods in its dispute over U.S. cotton subsidies, and the final list does not include pulp, paper or wood products.

The World Trade Organization (WTO) authorized Brazil to retaliate against the U.S. for non-compliance with its ruling in a dispute on cotton subsidies.  A preliminary retaliation list issued by Brazil’s government last November included several pulp and paper products with a value of about $120 million, which if included on the final list could have been subject to 100 percent tariffs.

“We support free and fair trade and are especially pleased that pulp and paper products were removed from the final retaliation list by the Brazilian government,” said American Forest & Paper (AF&PA) President and CEO Donna Harman.

For More Information:
Carlton Carroll
(202) 463-2587
This email address is being protected from spambots. You need JavaScript enabled to view it.

The ZELLCHEMING General Meeting and Expo as the leading annual meeting of the pulp and paper industry in Europe takes place from June 29 until July 1, 2010 in the Rhein-Main-Halls in Wiesbaden. Congress und Expo offer a platform for branch experts and specialists of industry, research and development.

The technical lectures at the 105th ZELLCHEMING General Meeting provides an excellent programme for further training, networking and exchange of experiences.

Supporting the General Meeting, the Expo presents machines and accessories for the entire process chain: from product development and production to service and consulting.

In spite of the economic crisis, about 200 exhibitors have already registered for the ZELLCHEMING-Expo 2010. This underlines the importance of the event for the branch even in difficult times. In 2009, ZELLCHEMING-Expo could welcome 278 exhibitors and about 3,000 visitors. The event is organised by the GzF Expo Team.

The ZELLCHEMING General Meeting and Expo establish not only the biggest yearly event for the pulp and paper industry in Europe, but offer also a central and easy-reachable venue with the city of Wiesbaden. You have direct connections by plane and train as well as by car. The event will be accompanied by a comprehensive supporting programme.

More information for the ZELLCHEMING General Meeting and Expo are available on www.zellcheming.com and www.zellcheming-expo.de.

Your contact persons:

ZELLCHEMING
Verein der Zellstoff- und Papier-Chemiker und -Ingenieure e.V
Mrs. Patricia Vorbach
Emilstrasse 21
64293 Darmstadt/Germany
Phone             +49(0)6151-332 64
Fax                  +49(0)6151-31 10 76
Email:             This email address is being protected from spambots. You need JavaScript enabled to view it.

Gesellschaft zur Förderung des Maschinenbaues mbH (GzF)
- Expo Management –
Mrs. Jennifer Höhn
Lyoner Strasse 18
60528 Frankfurt am Main/Germany
Phone             +49(0)69-6603 1982
Fax                  +49(0)69-6603 2284
Email:             This email address is being protected from spambots. You need JavaScript enabled to view it.

Canfor's Prince George Pulp and Paper mill is moving a maintenance shutdown previously planned for April to this month, in order to coincide with unplanned maintenance requiring the shutdown of the recovery boiler. It was discovered that the recovery boiler had a leak which needed to be repaired.

The total duration of the shutdown of the boiler is expected to be approximately 20 days and the total reduced pulp production in the first quarter is expected to be approximately 15,000 tonnes, including the 4 days and 3,600 tonnes previously scheduled for the April outage. Operation of the paper machine during part of the shut down period is expected to mitigate the financial impact of these outages.

Canfor Pulp operates three pulp mills in Prince George which employ more than 1,100 people. Canfor Pulp, an income trust, was spun out from Canfor Corp. several years ago.

The Forest Products Association of Canada (FPAC) has released a comprehensive, first-of-its-kind study that examines a wide range of options for renewal of the Canadian forest products industry.

"The study, The Future Bio-pathways Project, focuses on the triple bottom line: clean energy, high employment, and economic recovery. The results are clear - integrating the production of bio-products and bio-energy into the existing industry is a winner on all fronts," says Avrim Lazar, president and CEO of FPAC.
The Future Bio-pathways Project is one of the first and most exhaustive studies in the world on this topic. The project involved more than 65 top Canadian experts in fields as diverse as bio-technology, investment banking, and carbon pricing.

"This study produced a blueprint for change that is both surprising and welcome," says Lazar. "It places traditional products, especially lumber and pulp, at the heart of a new, green business model that has the potential to make the forest products industry a pivotal force in Canada's effort to become a clean energy super-power. If we follow this new model we will be able to produce power on the scale of nine nuclear reactors, enough to meet the energy needs of 2.5 million homes, or one out of every five homes across Canada."

On the employment front the research shows that an integrated mill - one that produces wood, pulp or paper as well as bio-energy and bio-materials -- provides five times as many jobs as a stand-alone bio-operation. It also shows that the industry's 270,000 jobs will be best sustained by following this integrated road to recovery.

"Years of intensive research and development have produced technologies that open up a world of possibility for the forest products industry in Canada. We can now rapidly convert wood fibre into a wide variety of high-value products such as bio-fuels to heat homes or power vehicles as well as bio-chemicals to make cosmetics, solvents, food additives and renewable plastics," says Pierre Lapointe, president and CEO, FPInnovations.

FPAC notes that by integrating the production of bio-products into existing forestry operations, they will be subject to the same high and increasingly stringent environmental standards that have made Canada a world leader in sustainable forest management.

"This new integrated model will cause investors to take a fresh and more optimistic look at the economic potential of Canada's forest products industry. That is why governments should follow this study's roadmap as it best defines where investors will want to put their money," says Don Roberts, Managing Director, CIBC World Markets and leader of the FPAC study.

"Our research shows this new bio-pathway is the business model for the future of Canada's forest products industry. With 300 Canadian communities depending on the health of the forest products industry for their survival, we must embrace the opportunities it presents," says Lazar.