Displaying items by tag: Fortress Paper

Fortress Paper Ltd. reported 2015 second quarter EBITDA of $4.1 million, an increase of $6.6 million and $10.1 million over the previous quarter and prior year comparative period, respectively. The Dissolving Pulp Segment generated EBITDA of $2.1 million and the Security Paper Products Segment generated EBITDA of $3.4 million. Corporate costs contributed EBITDA loss of $1.4 million to EBITDA.

EBITDA of $2.1 million for the Dissolving Pulp Segment for the quarter ended June 30, 2015 was an improvement of $5.4 million when compared to the first quarter of 2015 EBITDA loss of $3.3 million. The operational challenges in the chemical preparation area and limited capacity of the turbine experienced during the fourth quarter of 2014 impacted the results of the first quarter of 2015. The results for the quarter ended June 30, 2015 were favorably impacted mainly by improved productivity and cash production cost over the prior quarter, increased power generation under the additional power supply agreement with Hydro Québec, and improved pricing. EBITDA results for the second quarter of 2015 improved by $6.3 million compared to the second quarter of 2014.  The results of the second quarter of 2014 reflect restart procedures in early March 2014 and  the  mill  producing  northern  bleached  hardwood  kraft  pulp  through  late  April  when production was switched back to dissolving pulp.

The Company sold 39,664 air dried metric tonnes (“ADMT”) of dissolving pulp in the second quarter of 2015 compared to 38,957 ADMT of dissolving pulp in the first quarter of 2015. Although market conditions remain challenging, the second quarter of 2015 saw slightly improved pricing and industry conditions. However, the Dissolving Pulp Segment continues to be affected by the antidumping duty imposed by China’s Ministry of Commerce in April 2014. The Company continues to have success in diversifying its geographic sales mix and intends to further reduce its dissolving pulp shipments to China by approximately 20% over the balance of the year.

The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. EBITDA of $3.4 million for the Security Paper Products Segment for the quarter ended June 30, 2015 was $1.1 million higher when compared to the first quarter of 2015, and $3.8 million higher when compared to results in the second quarter of 2014. The Landqart mill sold 2,745 tonnes of security paper in the second quarter of 2015, compared to 2,715 tonnes of security paper in the first quarter of 2015. More efficient production and better waste rates positively impacted the results relative to the prior year comparative period.

The Landqart mill is exposed to foreign currency exchange fluctuations, as a material amount of its sales are denominated in euros and its major costs, excluding raw materials, are denominated in Swiss francs as compared to some competitors whose manufacturing costs are primarily denominated in euros.  In response to the significant appreciation of the Swiss franc against the euro in the first quarter of 2015, management continues to  implement their foreign exchange counter measure program (“FECM”), which includes mitigating foreign exchange and reducing other costs in areas such as procurement and logistics, to mitigate the negative financial impact in the short and mid-term.

For a summary of significant developments please refer to the Management’s Discussion and Analysis for the three and six month periods ended June 30, 2015 available on SEDAR at www.sedar.com

A presentation to complement our second quarter earnings conference call is available under the “Investor Relations” section at www.fortresspaper.com

Fortress Paper Ltd. ("Fortress Paper" or the "Company") (TSX:FTP) is pleased to announce that it and its wholly owned subsidiary, Fortress Security Papers AG ("FSP"), have entered into a share purchase agreement (the "Share Purchase Agreement") with Glatfelter Gernsbach GmbH & Co. KG ("Glatfelter Gernsbach") and its parent, P.H. Glatfelter Co. ("Glatfelter"), pursuant to which FSP has agreed to sell all of the shares of its wholly owned subsidiary, Dresden Papier GmbH ("Dresden"), to Glatfelter Gernsbach for an aggregate purchase price of €160,000,000 (CDN$213 million), subject to working capital adjustment. The transaction is expected to close within the second quarter of 2013, but no later than June 30, 2013, and is subject to certain customary conditions, including governmental anti-trust approvals in Germany and the Ukraine.

Pursuant to the terms of the Share Purchase Agreement, the Company has agreed to guarantee the obligations of FSP and Glatfelter has agreed to guarantee the obligations of Glatfelter Gernsbach thereunder.

Dresden owns and operates the Company's Dresden Mill, a producer of non-woven wallpaper base paper operating in Germany.

Chadwick Wasilenkoff, President and Chief Executive Officer of Fortress Paper, commented "The sale of the Dresden Mill is an important step in Fortress Paper becoming a more focused global leader in the dissolving pulp industry. The transaction was part of our strategic plan to achieve significant liquidity to enhance future growth opportunities. We are very pleased to have been able to reach an agreement with P.H. Glatfelter and look forward to the finalization of the sale. We would also like to acknowledge the contributions of the Dresden management team over the years and wish them every success in the future."

Fortress Paper Ltd. has announced changes to the management team of Fortress Specialty Cellulose Inc., a wholly-owned operating subsidiary which produces dissolving pulp at a mill in Thurso, Que. Marco Veilleux has been promoted to vice-president, business development and strategic projects, for Fortress Paper. Andre Boucher joins the company to replace Veilleux as chief operating officer of Fortress Specialty Cellulose.

Boucher has more than 30 years of industry experience in the specialty cellulose sector including 24 years at Tembec Inc. where he was the general manager of the Temiscaming dissolving pulp mill. Boucher was responsible for overall mill optimization and development of specialty products, including a full range of acetate and other specialty pulps. Most recently, Boucher was general manager of ethanol operations for Suncor Energy Inc.

Chadwick Wasilenkoff, chief executive officer of Fortress Paper, commented: "We feel [Andre’s] mill optimization and unique experience in transitioning a viscose-grade dissolving pulp mill to a specialty-grade dissolving pulp mill will further enhance our already strong specialty cellulose team. Andre's addition provides us with more flexibility as we balance our key personnel between Thurso and our other strategic projects."

Veilleux was a member of the executive team which managed the successful staffing, startup and conversion to dissolving pulp at the Thurso mill. In his new role, he will focus on special and strategic projects, manage risk and compliance matters, and will assume other key corporate responsibilities within Fortress Paper.
Fortress announced earlier this month that the closing date for its previously announced acquisition of the Lebel-sur-Quevillon pulp mill will be extended. The company states that it continues to work with the other parties to satisfy all the conditions prior to closing.

source: pulp and paper canada

Fortress Paper Ltd. has announced that it has initiated the final stages of the conversion project at its Fortress Specialty Cellulose Mill. The mill has commenced its start-up phase with final process testing, which will include cold and hot water trials, together with the testing of safety systems scheduled to occur over the coming days. Production of dissolving pulp beginning with wood chips cooking is expected to commence shortly thereafter.

The minor delay in the scheduled completion of the conversion project has resulted from: (1) the previously announced unexpected walkout in October of construction employees of contractors engaged by the Company; (2) the extra time subsequently required upon the return of the workers to fully ramp-up construction activities at the site; (3) completion of identified improvements to infrastructure relating to buildings, supports and the chip tower inter-connection; and (4) implementation of enhancements to the mill’s safety and control systems.

Chad Wasilenkoff, Chairman and Chief Executive Officer of Fortress Paper, commented: “We look forward to the imminent production of dissolving pulp, which will signify an important milestone in the history of Fortress Paper. We believe that the implementation of supplemental process control testing will provide for a more efficient ramp-up to commercial production.”

The completion of the conversion project is currently materially on budget, with the exception of costs resulting from the unexpected walkout of construction workers which remain to be quantified. The cogeneration project at the Fortress Specialty Cellulose Mill is proceeding substantially on schedule, and is expected to be completed in the third quarter of 2012.

Fortress Paper Ltd. (“Fortress” or the “Company”) (TSX:FTP) wishes to report that the construction relating to the conversion of the Fortress Specialty Cellulose Mill from a NBHK pulp to a dissolving pulp operation is proceeding substantially on schedule. However, due to rescheduling of the delivery and installation of specialized equipment, the enhancement of certain processes, and other ancillary matters, the Company has decided to marginally delay the necessary shut down of the mill required to make tie-ins and upgrades on existing equipment. Accordingly, the production of dissolving pulp is now scheduled to commence in early November 2011. The Company believes that the enhancements to certain processes will provide for a smoother start up and ramp up to full production capacity.

The deferment in the production of dissolving pulp is partially mitigated by the mill’s existing production of specialty pulp which yields a higher margin as compared to NBHK pulp. This specialty pulp is manufactured in strict accordance with certain technical specifications requested by the Company’s customers. The Company believes that, as a result of the extensive development and training experience derived from achieving the tolerances required for this unique specialty pulp, the mill will be positioned for a more efficient transition to dissolving pulp production later this year.

The installation of four 110-ton boilers on site at the Thurso pulp mill this week not only marks a crucial step in converting the mill to a full-time specialized dissolving pulp producer, it also marks the beginning of some other notable changes for the Quebec facility.

Construction on a brand new 25-megawatt cogeneration plant will begin this summer. Capturing excess heat and steam from the process of making dissolving pulp, the cogeneration plant will convert these energy sources into power for both the mill and the province of Quebec. Initial plans see Fortress exporting 18.8 megawatts of energy to the provincial power grids over a 15-year term with the remaining energy used to power the Thurso mill and its operations.

But energy isn’t the only thing that this new facility could produce. Thurso plant manager Marco Veilleux told Le Droit last week that the additions to the mill could also lead to the inclusion of a biorefinery – a facility that integrates biomass conversion to produce numerous byproducts.

“Reflection on exactly what we want to do is coming,” he told the French newspaper. “Our process is one that will extract an enormous amount of sugars from our materials and there are lots of products that can be developed with these sugars.”

Indeed, there are more than one hundred products that can be created as a result of biorefineries Luc Bouthillier, a professor in wood and forestry sciences at Laval University, told Le Droit. Plastics, pharmaceuticals, lubricants, industrial vinegars, alcohols and adhesives are only some of the options.

For now, though, the Thurso mill will concentrate on its current changes – another of which includes the planting of 5000 poplars to create a “visual barrier” around the mill and coul

Dresden Papier, subsidiary of Fortress Paper Ltd. and producer of non-woven wallpaper base, commissioned Voith Paper to install a new vacuum system for the wire and press sections of its PM 4 in Heidenau, Germany.

The new system will be environmentally friendly and was decided upon after extensive testing to determine both its economic and energy saving potential.

Testing included the per-engineering of the existing vacuum system and a balancing of the entire PM and building ventilation technology.

A vacuum blower system ensures high thermodynamic efficiency, allowing at the same time power input depending on the air requirements at the paper machine. The hot exhaust air produced can be used for hood supply-air heating through heat exchangers to reduce steam consumption there.

Another important aspect in terms of environmental protection is the fact that this technology does not consume any fresh water as conventional systems do.

As such, operating costs are also decreased and maintenance is optimized due to the reduced number of vacuum generators.

At present, the PM 4 in Heidenau produces 45,000 tons per year of coated and uncoated wallpaper base and the mill is thus the world’s largest producer in this product segment.

From contributing to a more environmentally-friendly energy economy, to saving company’s money by using in-house energy, to generating revenues by selling off excess energy, co-generation has undoubted benefits for pulp mills around the world.

A new article in Biomass Power & Thermal adds a new benefit to the pot: energy efficiency.

“The ability to produce electricity on-site rather than being reliant on the grid not only provides consistency and reliability…but also reduces grid congestion and avoids distribution costs,” writes Anna Austin, the Associate Editor for the magazine.

Cogeneration is essentially recycled energy. Cogeneration facilities capture energy and steam used in the pulping process and converts them to power which can be re-used both within the mill and sold to power grids.

At their soon-to-be converted specialized dissolving pulp mill in Thurso, Quebec, Fortress Paper Ltd. are in the midst of building a large-scale cogeneration facility that will see the mill export almost 75 per cent of its recycled energy to the provincial power grid.

For Austin, however, the energy saved for the mill is a crucial element as it allows for more energy security on site. A report on cogeneration in the US released in 2008 says that capitalizing on cogeneration could mean a very different energy future across the board.

“Notably, the report points out that while [combined head and power] has been around in one form or another for more than 100 years—it is a proven, not speculative, technology and still remains vastly underutilized even though it’s one of the most compelling sources of energy efficiency that could, with even modest investments, quickly move the U.S. toward greater energy security and a cleaner environment,” she writes.

At their mill in Thurso, Fortress Paper expects to have their large-scale cogeneration facility up and running on site by late 2012.

SOURCES:
Biomass Power & Thermal: “Cogeneration Sensation”
Specialty Cellulose: “The Benefits of Biomass Cogeneration”