Ahlstrom, a global high performance fiber-based materials company, announces that it has entered into a collaboration agreement with Dow Water & Process Solutions (DW&PS), a business unit of The Dow Chemical Company (NYSE:DOW), to use Ahlstrom's Disruptor® technology in drinking water applications. Ahlstrom Disruptor® is a unique nanoalumina technology designed for a wide range of water filtration applications.

Ahlstrom's fiber-based materials match the global megatrends, such as environmental awareness, resource scarcity and urbanization. As a response to the need for clean water, Ahlstrom has developed the Disruptor® technology that can be used in removing a wide range of tiny contaminants from water. DW&PS will incorporate Ahlstrom's high performance, break-through Disruptor® filter medium into a new set of drinking water purification products that provide excellent pathogen rejection while operating at high flow and low pressure.

"One of the key goals in our product development is to create products that purify air and liquids in a sustainable way. We are excited about the opportunity to work with Dow since we see a wealth of opportunities for providing pure water solutions through combining our expertise with Dow's industry-leading product offering," says Fulvio Capussotti, Executive Vice President, Advanced Filtration, Ahlstrom. 

Ahlstrom Disruptor® virtually removes microorganisms that can cause sickness. Its unique combination of large pore size and very high electrical attraction potential enable efficient removal of virus-sized particles at a high flow rate at very low pressure. Ahlstrom Disruptor® can be utilized in a number of drinking water applications, such as under-the-sink purification, tap water filters and water pitcher filters. It can be used in areas with no electricity, it requires no use of chemicals, and does not generate waste water.

"Global trends such as population growth and urbanization put pressure on already strained water sources," said Snehal Desai, global business director for DW&PS. "We see a real need for new innovations to expand access to clean safe drinking water in an easy, effective and sustainable way. Our collaboration with Ahlstrom extends our product offering to people who need effective water treatment but may not have access to pumps or electricity."

Kemira's new organizational structure has been operational since October 1, 2012 and as announced earlier, financial reporting according to the new structure started as of January 1, 2013. Kemira's reporting segments are Paper, Municipal & Industrial, Oil & Mining, and ChemSolutions as a new segment. The unit "Other" has been abolished. The restated figures for Q1 to Q4 2012 are summarized in the attached files, see links below. Restatements for earlier periods have not been made.

Main changes are:

*Service revenues in Sweden and Finland, previously reported as part of the unit "Other" are now reported within the Paper segment. Kemira Group expenses previously reported as part of "Other" are now allocated to the four segments.

*Kemira is now applying a key ownership principle for every production plant according to which every plant is owned by a dedicated segment.

*Kemira's sodium percarbonate business, previously part of the Paper segment, has now been transferred to ChemSolutions.

*Kemira's group figures for 2012 have been restated to also reflect the change of IAS 19, Employee Benefits.

The January-March 2013 Interim report will be published on April, 23, 2013.

Domtar Corporation, one of the largest manufacturers and distributors of paper in North America, has signed, through its operating subsidiaries, an agreement to acquire Xerox's paper and print media products business in the United States and Canada.

"The Xerox brand is well regarded in the paper markets it serves," said John D. Williams, Domtar's President and Chief Executive Officer. "This deal brings together Xerox's branded papers with Domtar's already comprehensive paper offering and will allow us to better serve our customers."

While Xerox does not manufacture paper, the company has long distributed through its brand name a broad range of coated and uncoated papers and specialty print media including business forms as well as carbonless and wide-format paper. This business will now become part of Domtar's pulp and paper segment, and Domtar will market and distribute Xerox-branded paper and print media.

"As Xerox broadens its business to focus more on services and innovative document technology, we saw an opportunity for our paper business clients to be better served by a leader in the industry," said Frank Edmonds, senior vice president, Xerox Global Paper and Supplies Distribution Group. "It's an across-the-board win.  Xerox benefits through a trademark licensing agreement with Domtar; Domtar adds a well-regarded brand to its portfolio; and our respective clients get a simplified, 'one-stop' experience through Domtar's extensive offerings and distribution network."

Xerox will continue to manufacture, sell and support its broad range of consumables, such as toner and ink, and Xerox Replacement Cartridges.

The transaction is expected to close in the second quarter of 2013, subject to customary closing conditions. Until the close, Xerox customers may continue to order paper and media through Xerox Supplies sales representatives, Xerox inside sales centers, or online at www.xerox.com.

In spite of difficult market conditions in its core fiber business, the Lenzing Group succeeded in achieving the second best business result in its history in the 2012 financial year. This can be attributed to new record fiber sales volumes and the good performance of Lenzing’s specialty fiber TENCEL®. 

Consolidated sales of the Lenzing Group were down slightly from the previous year, declining by 2.3% to EUR 2.09 bn compared to EUR 2.14 bn in 2011. The decline is due to the fact that more dissolving wood pulp from the Paskov pulp plant was used internally than in 2011. Adjusted for this consolidation effect, consolidated sales remained constant. The significant lower average fiber selling prices compared to the boom year 2011 could be compensated by the strong rise in fiber sales volumes, which climbed by close to 14% year-on-year, from 712,000 tons to 810,000 tons.  

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) amounted to EUR 358.7 mn¹, a decline of 25.3% from the record EBITDA of EUR 480.3 mn achieved in 2011, but above the comparable level of EUR 330.6 mn generated in the year 2010. The EBITDA margin amounted to 17.2% (2011: 22.4%). Earnings before interest and tax (EBIT) of the Lenzing Group amounted to EUR 255.0 mn in the 2012 financial year, comprising a decline of 29.9% from the prior-year level of EUR 364.0 mn. The EBIT margin was 12.2% (17.0% in the record year 2011).  

“We performed quite well in 2012 despite a very difficult market environment”, says Lenzing’s Chief Executive Officer Peter Untersperger. “Naturally, our operating margins were below those in the boom year 2011 but still at a good level. We fully utilized our new production capacities, and were sold out throughout the entire year. This success proves the long-term correctness of our growth strategy in our core business of manufacturing man-made cellulose fibers”, CEO Untersperger adds.   

The one-off decommissioning costs for European Precursor (EPG), the joint venture with SGL Carbon and Kelheim Fibres, amounted to EUR 23.5 mn (2011: EUR 0).  Accordingly, consolidated EBITDA after restructuring amounted to EUR 352.4 mn, corresponding to an EBITDA margin after restructuring costs of 16.9% of sales.  

Record investment program

CAPEX (investments in property, plant and equipment, intangible assets and non-controlling interest) rose to the record level of EUR 346.2 mn in the 2012 financial year (2011: EUR 196.3 mn). Lenzing’s investment activity focused on the completion of the fifth production line at the Indonesian subsidiary PT. South Pacific Viscose (SPV), the debottlenecking program at the plant in Nanjing (China), the capacity expansion drive at the TENCEL® factory in Mobile/Alabama (USA), expansion investments at the Lenzing site as well as the commencement of construction of the new large-scale TENCEL® plant in Lenzing. These investments were complemented by the further remodeling and upgrading of the Paskov plant (Czech Republic) and the acquisition of the remaining shares.

“The record year 2011 must not obscure the view on the second-best result in the company’s history. As planned, 2012 represented the peak year of investments when it comes to the implementation of our growth strategy“, says Lenzing’s Chief Financial Officer Thomas G. Winkler. “Due to Lenzing’s stable financial position and low debt we can afford this investment into the future without touching on our strategic liquidity reserve of more than half a billion euro.” 

Adjusted equity of the Lenzing Group rose to EUR 1,15 bn at the end of 2012, an increase of 10.0% from the prior-year level of EUR 1,05 bn. This corresponded to an adjusted equity ratio of 43.8% of total assets (2011: 44.8%) which increased as a consequence of the record investments which were made.

Segment Fibers

Initial estimates ² conclude that the rise in world fiber production only amounted to 1.2% during the reporting year, with total volume up only slightly from 81.0 mn tons to 82.0 mn tons. This was in contrast to the 6.4% increase generated in 2011 and owing to the continued slow economic development. Worldwide production of man-made cellulose staple fibers, the core business of the Lenzing Group, climbed 9.2% in 2012 to 3.66 mn tons, thus expanding at a considerably faster rate than the global fiber market as a whole. 

The fiber market in 2012 was dominated by a significant decrease in selling prices for all fibers. The average price of cotton, the benchmark for the entire fiber industry, fell more than 40% below the prior-year level. Cotton inventories further increased, and the global stock-to-use ratio reached a record level of more than 70%. Spot prices for viscose fibers were down by about 15% in China, the world’s largest fiber market.   

Lenzing achieved a new sales record in 2012 against the backdrop of a very difficult market environment. The average fiber selling prices of the Lenzing Group fell by 12%, decreasing from EUR 2.22 per kilogram to EUR 1.96 per kilogram.  

“The fiber market rewarded Lenzing for its high product and service quality as well as its close cooperation with and integration in the textile chain”, states Friedrich Weninger, Member of the Management Board and Chief Operating Officer. “In particular, our specialty fibers Lenzing Modal® and TENCEL® enabled us to successfully differentiate ourselves from standard products manufactured by Asian producers. In addition, we successfully attracted new customers and opened up new markets while launching new innovative fiber applications on the marketplace”, COO Weninger says. 

Lenzing Modal® and TENCEL® achieved price premiums of 40% - 60% in 2012 compared to standard viscose fibers. Specialty fibers accounted for approximately 35% of fiber sales in 2012. However, in the course of the year, selling prices for Lenzing’s specialty fibers had to be continually adjusted downwards in line with general price levels as a result of the significant drop in cotton and viscose fiber prices.   

Segments Plastics Products and Engineering

The Segment Plastics Products showed a satisfactory development during the year under review. Lenzing reported very good volume demand, especially in the thermoplastics business area.

The Segment Engineering profited from the positive mood in the capital goods market in 2012. Lenzing Technik equally took advantage of the extensive investment activity within the Lenzing Group as well as growing demand on the part of external customers.  

Outlook Lenzing Group

The current market situation featuring many uncertainty factors only allows for low visibility with respect to further developments in the year 2013. From Lenzing’s perspective the most likely scenario is a sideways trend, with 2013 considered to be a transitional period. 

The additional production capacities which will be available to the Lenzing Group for an entire year for the first time will serve as the basis for an increase in sales volumes by about 13.5% to 920,000 tons. As a result, sales are expected to climb to a range between EUR 2.15 bn and EUR 2.25 bn. This includes the decline in the external sales of the Business Unit Pulp totalling a further EUR 50 mn, which in turn is the consequence of the full-scale conversion of the Paskov pulp plant to manufacturing dissolving wood pulp for the Group’s internal requirements. 

The anticipated decrease in average fiber selling prices in a year-on-year comparison to EUR 1.80 to EUR 1.90 per kilogram (2012: EUR 1.96/kg) will impact earnings directly. The earnings contribution achieved by the additional sales volumes is expected to be largely offset by cost increases for personnel, chemicals and other input factors. 

For this reason, in the light of the assumed development of fiber prices, EBITDA of the Lenzing Group should range between EUR 260 mn and EUR 290 mn in 2013, and EBIT is expected to be in the range of EUR 140 - EUR 170 mn from today’s perspective. This corresponds to an expected EBITDA margin of about 12% - 13% and an expected EBIT margin of approximately 6% - 8% in the 2013 financial year.  

Investments (CAPEX) are likely to total approx. EUR 260 mn, significantly below the comparable level of EUR 346 mn in 2012. Sales negotiations focusing on the divestment of the Business Unit Plastics, which is not part of Lenzing’s core business, are already at an advanced stage. Binding offers were submitted.

Lenzing will respond to the low market visibility in 2013 by optimizations of market activities, cost structures as well as replacement and maintenance investments. The targeted volume growth of the Lenzing Group reaching the threshold of about one million tons of annual fiber capacity by the year 2014 remains unchanged. However, new investment projects will be subject to scrutiny with respect to the planned timeline. In the medium- and long-term, all three megatrends on the fiber market (population growth, increasing wealth and sustainability) driving growth of the man-made cellulose fiber industry will continue uninterrupted. “However, we intend to flexibly adapt our pace of growth to current market conditions and place additional emphasis on cash management”, says Lenzing CEO Peter Untersperger.

With a rousing call for entries for its 20th Annual Specifier Awards Competition, FiberMark (www.fibermark.com), a global leader in manufacturing innovative, fiber-based specialty covering materials for world-leading brands, once again presents designers around the world with a unique opportunity for wide exposure and acknowledgement of their talents and ideas.  Entries for the competition are being solicited and received until August 31, 2013.  Winners will be announced at the end of the year.

The FiberMark Specifier Awards program was inaugurated in 1992, to celebrate the best of color, texture, pattern and design innovation across a wide array of packaging, publishing, office products, graphic arts industrial applications and—new this year—environmentally responsible print media.  Since its introduction, it has become international in scope, earning an increasing reputation as one of the most prestigious competitions in the industry.

The program honors outstanding projects that have been created using one or more of FiberMark’s vast range of top-quality covering materials. Additionally, to be eligible for submission, projects must have been produced during the previous year. Entries are judged by a peer review committee on such criteria as design, construction quality, decoration/printing quality and relationship of the materials to the project.

“This year’s design competition is themed ‘Modern & Celebratory,’” notes long-time FiberMark design partner Mickey Boisvert of MBDesign.  “Criteria the judges will focus on include the unexpected use of color, texture, pattern, and design; hard-working use of materials; use of several different materials in one project; high-profile use of materials; and on-trend use of materials.”  Winners in several different categories of the competition receive wide acknowledgement of their design, including inclusion in a beautifully designed Specifier Awards booklet that is distributed to thousands of industry professionals.  Award winners are also featured in a section of the FiberMark website dedicated to innovative design.

Over the years, since its introduction, the Specifier Awards have become an annual event that’s highly anticipated by the FiberMark staff and management.  “Because of the increasing number of entries and quality of projects we’re receiving, I’m happy to say that we’re continually raising the bar on judging for the Specifier Awards,” notes Stella Alstede, the FiberMark promotions manager who oversees the Specifier Awards. “We are increasingly impressed by the innovation and inspiration our customers demonstrate in using our materials, and we are pleased to offer this opportunity to honor their exceptional work.”

Design professionals seeking to submit a design for consideration or desiring more information on the Specifier Awards competition may do so by visiting www.fibermark.com.

Metso's Process Optimization Business Solution enables Klabin to significantly improve at the mill level production efficiency, increase synergy between different areas inside its mills, improve safety as well as reduce Klabin's environmental footprint.

Brazil's packaging paper producer Klabin has continued its long partnership with Metso trough a contract for the supply of its Process Optimization Business Solution which involves working with Klabin to increase production efficiency at the company's Otacílio Costa and Correia Pinto mills. The contract scope represents the largest contract for Metso in South America and the second largest global order.

Metso's Process Optimization Business Solution consists of a number of process optimization services, built around Advanced Process Control technology, which are used to stabilize individual production processes and then improve production efficiency in those processes. The solution consists of expert services coupled with delivery of Advanced Process Controls technology, pulp analyzers. In order to better deliver an optimum service, Metso will put on site a resident for quality and process control systems already in place. A team of 25 specialists from Metso were involved in the study and proposals for Klabin, following Metso's strategy to combine different areas and experiences in an integrated solution for its clients.

In the Correia Pinto mill the focus is on washing line optimization and steam network balancing. In the Otacílio Costa site focus in on two evaporation plants, recovery boiler, causticizing plant and steam network optimization. Both mills are located in Santa Catarina state, a Southern region of Brazil.

Long partnership

During the years, the partnership between Klabin and Metso has lead to several projects. Already in 1996 Metso`s Quality Control System (QCS) and some control loops for the paper machine were installed. This system has been expanded until mid-2000 and is now responsible for the entire paper machine. The first Metso DCS and Advanced Process Controls were installed in the cooking plant (2000) and recovery line (2004). They have efficiently improved pulp processes and given quick return of investment.

Now Klabin strives to continue increasing efficiency and reducing production costs. The company's R&D and production departments are continuously working to find new ways to improve production methods.

The total scope includes the following products:

Correia Pinto mill: Metso Washing Line Optimization; Metso DNA Steam Network Manager; Model Based Energy Analysis; Resident to DCS/ QCS/Analyzers during 3 years; Metso WinGEMS Process Simulator.

Otacílio Costa mill: Metso Causticizing Optimizer; New Metso Recovery Analyzer; Metso Evaporation; Metso Recovery Boiler Optimizer Optimizer; Metso Recovery Boiler Sootblowing Optimizer; Metso DNA Steam Network Manager; Resident to DCS / QCS / Analyzers; Metso WinGEMS Process Simulator.

The entire delivery is scheduled to be done in 2013.

Klabin, Brazilian company with 113 years, is the largest producer and exporter of paper in the country is leading of packaging paper and board producer, corrugated packaging and industrial bags. Klabin has 16 industrial plants in Brazil and one in Argentina.

Södra is now ceasing efforts to sell Södra Cell Tofte due to the fact that the bids received are too low. This decision will now be reported to the county. If no solution is found during the month-long qualifying period, the company plans to stop production at the 1 of May.

"We have been working to find a buyer for the Tofte mill for almost six months now, and we have been in contact with a large number of potential buyers over that time. However, we are forced to conclude that we have received a limited number of bids, and that the levels of the bids made are too low to make it worthwhile continuing with the sale," said Gunilla Saltin, Acting CEO of Södra and President of Södra Cell.

Södra has been attempting for some time now to achieve profitability at Södra Cell Tofte, but it has not been possible to turn the tide despite a number of measures being implemented. This was why a process began in October 2012 with a view to finding a buyer.

In February this year, Södra announced its intention to liquidate its holding in Södra Cell Tofte and that a sale process had begun. Contact has been made with a large number of potential buyers all over the world. However, the bids received have been deemed to be too low and so the sale process has been terminated. This decision means that production at the mill is planned to cease at the 1 of May. 

In order to avoid unnecessary build up of inventory, Norske Skog will temporarily idle one paper machine (PM2) at Norske Skog Skogn from June. PM2 has an annual production capacity of 130 000 tonnes. Skogn has an annual capacity of 550 000 tonnes.

- The temporary closure of capacity at the Skogn mill in Norway is required, both to create a better balance between demand and supply for newsprint in Europe, and to avoid unprofitable production at Skogn. Despite years of great efforts by the staff to reduce costs, the decision is unfortunately unavoidable due to factors including the strong Norwegian krone, said Mr Sven Ombudstvedt, President and CEO of Norske Skog.

The one machine still in operation at Norske Skog Tasman (New Zealand) will reduce production by removing 15 000 tonnes from the market, as a direct consequence of the energy price development in New Zealand.

Customers will be served from other Norske Skog mills and paper machines. All existing supply commitments will be honoured.

In line with its ambition to provide sustainable solutions for the tissue making industry Metso established a Tissue Technology Award. The purpose is to promote university students’ or scientists’ work to develop environmentally sound products applicable to the tissue making processes. The first winners have now been selected by a panel of jurors.

“Very thorough work was conducted to go through all the applications and we ended up with two innovations of equally high quality. Therefore we have decided that the first award will be split between two winners,” reveals Anders Björn, Vice President, Tissue Machines technology unit, Metso.

The total prize of USD 25,000 will be shared between Alina Hagelqvist, PhD student at Karlstad University, Sweden, and Jinsong Tao, PhD and associate professor at State Key Laboratory of pulp and paper engineering at South China University of Technology.  

Alina Hagelqvist is awarded for her work focused on sludge wastewater treatment in the pulp and paper industry. The work shows the potential of improved utilization of sludge for biogas production by optimized solid retention time in the biological process.

Jinsong Tao is awarded for his extensive work in the development of models and methods for improved energy utilization for the Chinese paper industry. Jinsong Tao has applied his extensive experience and has shown a genuine interest for sustainable development.

The winners were announced at the Tissue World Conference, held in Barcelona, Spain, on March 19.

“Sustainable development is a crucial issue for the tissue industry globally and it takes a wide perspective and open minds to explore new areas for innovation. Both of these innovations are well in line with Metso’s strategy for sustainable development,” says Marco Marcheggiani, Vice President, Tissue Mills business unit, Metso. ”With this award we hope to attract people outside our own organization to participate in the important work of creating sustainable solutions for the future of tissuemaking.”

The Tissue Technology Award will be given every second year starting 2013.

Detailed information about the Metso Tissue Technology Award, including application regulations, can be found at www.metso.com/tissueaward.

The new Advantage NTT production line will provide high product quality and flexibility

Metso will supply the Chilean Forestal y Papelera Concepción S.A. with an Advantage NTT 200 tissue production line for their mill close to Concepción. The packaging board producer Forestal y Papelera Concepción is entering the tissue business and is preparing to start up their first tissue production line. The new line to be supplied will be the world’s second tissue line based on Metso’s Advantage NTT concept and the first with a 5.5-meter paper width. The line is scheduled to start up at the end of 2014. The value of the order will not be disclosed.

The Advantage NTT technology enables premium bulk and softness properties at the same time as it provides energy savings compared to conventional or structured tissue grades. The Advantage NTT concept is a flexible production tool and quickly enables change between production of conventional and premium tissue and towel products. It also features very high production capacity.

“Collaborating with top level companies who can supply equipment which ensures quality and support of great expertise has always been important to us. When we now are entering the tissue business, after operating in the newsprint and packaging paper segments, we are aiming for the top level products. Therefore Metso’s Advantage NTT tissue line was the best choice for us,” says Guillermo Swett, CEO, Forestal y Papelera Concepción.

“We are of course very pleased that Forestal y Papelera Concepción have decided to benefit from the Advantage NTT technology for production of premium quality tissue. This new Advantage NTT order also reflects the increasing interest for Metso’s new standard in premium quality tissue making,” says Jan Erikson, Vice President, Sales, Tissue Mills business unit, Metso.

The order is included in Metso’s Pulp, Paper and Power first quarter 2013 orders received.

Technical information

Metso’s scope of supply will comprise a complete Advantage NTT 200 tissue machine with a width of 5.5 m equipped with an OptiFlo II TIS headbox, a Metso cast iron Yankee cylinder, an Advantage AirCap Yankee hood and an Advantage SoftReel reel. The tissue line will also be equipped with an Advantage WetDust dust management system, sheet control, tail threading equipment and complete stock preparation systems. The line will be fully automated and optimized to enhance final product quality.

The new tissue line will have a capacity of 70,000 tonnes per year of bathroom tissue, napkin and towel grades.

Forestal y Papelera Concepción S.A. (FPC), an innovative company highly experienced in the manufacturing of paper, was founded in 1995. Since 2009 they are mainly producing recycled fiber-based packaging paper. Their new tissue production line and converting facilities will deliver jumbo rolls and converted tissue products for the South American and US market.