Kemira changes outlook for full-year 2011 due to weakening market conditions

Kemira's revenue and operative EBIT in the fourth quarter 2011 for Paper, Municipal & Industrial and Other segment are expected to be slightly lower than previously estimated.
 
The exceptionally late start of the winter season in continental Europe and Nordic countries has postponed deliveries of our de-icing products for airport runways. The demand of chemicals for the Paper industry in Europe and North America is expected to be lower than estimated. Some municipal customers have unexpectedly decreased their consumption of water treatment chemicals due to challenging economic environment. Raw material prices have stabilized but remain at a high level.

Kemira's management has initiated actions to reduce costs and to improve operational efficiency and cash flow.
 
Following the lower than expected volume demand in the fourth quarter of 2011, and high raw material prices, Kemira's full year 2011 revenue is expected to be at the same level as in 2010 and the full year 2011 operative EBIT at the same level or slightly lower than in 2010. Capital expenditure is expected to be approximately EUR 100 million in 2011.
 
Previously, the full year 2011 revenue was expected to be slightly higher than in 2010, and despite the rising raw material prices, full year 2011 operative EBIT was expected to be higher than in 2010. Kemira expected the capital expenditure to be between EUR 100-110 million in 2011.

Kemira will publish its fourth quarter and annual 2011 results on February 8, 2012.

Stora Enso establishes Pathfinders Shadow Management Team to challenge Chief Executive Officer and Group Executive Team in rethinking Group operations

Stora Enso has selected 12 talents from within the Group as Pathfinders to challenge and support the CEO and Group Executive Team in developing Stora Enso into an innovative renewable materials Group. The Pathfinders will operate as a Group Shadow Management Team focusing on two selected challenges, namely Innovation and Global Responsibility.

“The 12 Pathfinders were selected from over 150 applicants through a process open to all Stora Enso employees. We are convinced that through this selection process, including interviews and assessment centres, we have appointed a group of talented individuals who will form a very exciting and diverse team with every opportunity for thorough rethinking,” says Lars Häggström, Head of Group Human Resources.

In creating the Pathfinder programme, Stora Enso has decided to partner with one of the world’s most renowned business schools, IMD of Lausanne in Switzerland. IMD is currently ranked as the best executive education provider in Europe and the third best in the world. The Pathfinders will be guided by Professor Thomas Malnight of IMD.

The following persons have been appointed as Pathfinders:
James Barr, 39, General Manager, Stora Enso UK
Malin Bendz, 35, Director, Packaging Business Development, Sweden
Elina Gerdt, 31, Tax Manager, Finland
Risto Kallio, 48, Technical Customer Service Manager, Imatra Mills, Finland
Piotr Kuzebski, 41, Regional Sales Director, Packaging, Poland
Fredrik Lundeborg, 33, Vice President, M&A and Corporate Finance, Sweden
Duncan Mayes, 41, Director, R&D & Innovation, Wood Products, Finland
Tuomas Mustonen, 31, Director, Customer Service Centre, Publication Paper, Germany
Juliano Pereira, 32, HR Director Latin America, Brazil
Kaisa Tarna-Mani, 39, Vice President, Control & Finance, Biorefinery, Finland
Louie Wang, 44, Managing Director, China Sales, China
Patricia Wikström, 32, Director, Digital Channels and Development, Finland

“Stora Enso is facing big challenges as the world and consumption trends are changing. Our objective is to focus on some of these challenges and find ways to turn them into exciting business opportunities. I think we have been offered a unique opportunity to learn and deepen our understanding of the challenges around us,” says Fredrik Lundeborg, one of the Pathfinders.

The Pathfinders are expected to make exciting, innovative and thought-provoking recommendations to the Group Executive Team, recommendations that when put into practice will help make Stora Enso the leading rethinker in the industry, or wherever it chooses to compete.

“We have promised at Stora Enso to rethink, challenge and renew everything we do. We see a momentum in the Group accelerating change, which is never over. And this is where I believe the Pathfinders – a very diverse group of colleagues from all regions with different amounts and types of professional experience – can make a real difference. I have asked them to be direct, constructive and brave, and to challenge everybody, including myself, the Group Executive Team and each other. Questioning old ways of doing things and finding new and different solutions to delight our customers, shareholders and employees – that is the journey the Pathfinders and the Group are on,” says Stora Enso CEO Jouko Karvinen.

EMERSON’S SMART WIRELESS TECHNOLOGY HELPS MEET ENVIRONMENTAL REQUIREMENTS AT PAPER MILL IN SWEDEN

Rosemount® wireless conductivity transmitters help prevent discharge of chemicals into local environment

Korsnäs Gävle is using Emerson Process Management’s Smart Wireless conductivity and temperature transmitters to collect critical leak-detection monitoring data at its board and paper production unit at Gävlebukten, Sweden. Improved monitoring enables the company to verify its compliance with environmental monitoring legislation.

Water from heat exchangers at the Gävlebukten plant is carefully monitored prior to its return to the sea. Small internal leaks may result in the discharge of hazardous chemicals into the local environment. Any leak of acids, bases, or salts will raise the electrical conductivity of the water and is easily detected using a conductivity sensor. A renovation project within the utilities section meant that I/O supporting existing instrumentation was to be removed. Korsnäs Gävle therefore needed an alternative way to transmit the required measurements to the main control room.

“Initially we considered installing new cable runs, but the process would have taken too long and would have delayed the planned renovation project,” said Peter Hallenberg, Project Leader Process Automation, Korsnäs Gävle. “The application presented a great opportunity for us to install and evaluate Emerson’s Smart Wireless technology, which takes advantage of the IEC 62591 (WirelessHART®) communication standard.”

The Smart Wireless solution that Korsnäs Gävle installed includes a Rosemount® Analytical 6081-C transmitter connected to a conductivity probe. The transmitter sends the measurement data via a Smart Wireless Gateway to the existing control and data acquisition systems, where it is used to ensure compliance with the environmental monitoring legislation.

Korsnäs Gävle also needed to establish new continuous monitoring of emissions from aerated basins and ponds. Twenty-two new sensors measuring pH, dissolved oxygen, and water temperatures had to be installed and connected to the central monitoring system. There were no available cable runs, and new cable infrastructure presented a considerable challenge and cost at €200 per metre.

To meet this challenge, Korsnäs Gävle installed six Rosemount wireless transmitters, each with four available inputs, to relay data from the analytical sensors. The wireless instruments provide the necessary data to meet the environmental requirements.

“Less than two months after ordering the Smart Wireless devices, the whole system was fully operational. That is very fast for implementing 30 new measurement points,” said Hallenberg.

“Now that the network is in place,” he added, “we have also found that adding additional devices becomes very simple.”

Specifically, Korsnäs Gävle has installed seven Rosemount 648 wireless temperature transmitters to automate the monitoring of water temperatures in wastewater pits that feed the aerated basins and ponds. A further eight Rosemount wireless transmitters will be installed to identify plugged filters on two wood chip digesters within the main processing section of the plant.

Arctic Paper S.A., the second-largest European producer of bulky book paper and one of Europe’s leading producers of high-quality graphic paper, generated revenues in the 3rd quarter of 2011 of over PLN 641.4 million, 2.3% higher than in the same period of 2010, and EBITDA of over PLN 43 million, 69.3% higher than achieved in the 3rd quarter of 2010. In the 3rd quarter of 2011 the company earned a net profit of almost PLN 34.1 million. This means that the company has made up a significant part of the loss generated in the 1st half of this year.

Despite continuing lower demand for graphic fine paper in Europe, the company increased its sales volume in the 3rd quarter of 2011 compared to the 2nd quarter of 2011 by 6.1%. Nonetheless, it was 1.4% below the volume recorded in the 3rd quarter of 2010.

Thanks to the increase in sales volume, use of the company’s production capacity returned to the high level of 95%.

Due to significantly better operating results in the 3rd quarter of 2011, the Arctic Paper Group made up a significant part of the loss generated in the 1st half of 2011. In the 3rd quarter alone, the group earned a net profit of almost PLN 34.1 million, which means that the net loss decreased from PLN 50.1 million in the 1st half of 2011 to PLN 16 million through the first 9 months of 2011. The high net result was influenced by increased sales revenue and positive development in exchange rates, mainly emanating from valuation of the intra-group loan by Arctic Paper S.A. to Arctic Paper Investment AB.

Sales revenue of the AP Group in the 3rd quarter was over PLN 641.4 million, representing a growth of 2.3% compared to the 3rd quarter of 2010 and a growth of 11.1% compared to the 2nd quarter of 2011. Year-to-date revenue through 9 months of 2011 was over PLN 1,853 million, an increase of 9.7% compared to the same period of 2010

Revenue per metric tonne of paper sold, expressed in PLN, was PLN 3,320 in the 3rd quarter of 2011, representing an increase of 4.7% compared to the result achieved in the 2nd quarter of 2011 and an increase of 3.7% compared to the 3rd quarter of 2010.

Sales volume in the 3rd quarter of 2011 was 193,000 metric tonnes, representing an increase of about 6.1% compared to the 2nd quarter of 2011. However, the total market demand for graphic fine papers in Europe continued to decline and demand of coated and uncoated wood free paper for the first 9 months remained below the levels observed prior to the economic crisis in 2008–2009.

In the first 9 months of 2011, sales volume was 574,000 metric tonnes, 3.2% higher than the volume achieved in the same period of the previous year.

Michał Jarczyński, CEO of Arctic Paper S.A., commented: “In the 3rd quarter of 2011 there was a visible break in the negative trend for Arctic Paper in terms of currency exchange rates and variable costs which we observed to have an impact on the financial results of the Arctic Paper Group in the 1st half of this year. Despite the summer holidays and the low demand for paper in Europe continuing from the beginning of the year, we achieved high sales volumes of over 193,000 tonnes, and the use of production capacity at our paper mills returned to a high level of almost 95%. In the 3rd quarter we generated substantially better operating results, thanks to which we made up a major part of the loss generated in the 1st half of this year.”

ARCTIC PAPER S.A. is the second-largest European producer of bulky book paper in terms of production volume, and one of Europe’s leading producers of high-quality graphic paper. The Group produces uncoated and coated wood-free paper and uncoated wood-containing paper for printers, book publishers, magazine publishers, the advertising sector and paper distributors. The Group’s product line includes such well-known brands as Amber, Arctic, G-Print, Munken, Pamo and L-Print.

The Group has four paper mills, in Kostrzyn, Poland; Munkedal and Grycksbo, Sweden; and Mochenwangen, Germany. The total production capacity of the four paper mills in the Group is over 800,000 metric tonnes of paper per year.

• Arctic Paper Kostrzyn has a production capacity of about 278,000 tonnes annually and produces chiefly uncoated wood-free paper for general printing uses, such as printing of books, brochures, forms, and envelopes.

• Arctic Paper Munkedal has a production capacity of about 160,000 tonnes per year and produces mainly high-quality uncoated wood-free paper chiefly used for printing books and advertising brochures.

• Arctic Paper Mochenwangen has a production capacity of about 115,000 tonnes per year and produces mainly uncoated wood-containing paper used primarily for printing books and flyers.

• Arctic Paper Grycksbo has a production capacity of about 265,000 tonnes per year and produces high-quality coated paper, used for printing maps, books, magazines, posters and direct mail materials.

SCA reorganizes hygiene operations for increased efficiency, market presence and growth

To support its long-term strategy and strengthen competitiveness, SCA is reorganizing its global hygiene operations. The new organization will contribute to increased efficiency, market presence and growth.

SCA’s European hygiene operations will be organized in three business units: AFH Professional Hygiene Europe, which will be headed by Sune Lundin, currently President for SCA Americas; Consumer Goods Europe, which will be led by Magnus Groth, currently President for SCA Tissue Europe; Incontinence Care Europe, which will be headed by Margareta Lehmann, currently Regional Director NorthWest Europe AFH, SCA Tissue Europe.

There will be a new business unit for Middle East, India, Africa (MEIA), which will be led by Thomas Wulkan, currently President for SCA Personal Care Europe; a new Global Hygiene Supply Unit, which will be headed by William Ledger, currently Vice President Supply Chain, SCA Tissue Europe; and a new Global Business and Service Support Unit, which will be led by Robert Sjöström, in addition to his present position as Senior Vice President, Strategy and Business Development.

The business unit for SCA Americas will be headed by Don Lewis, currently President for SCA AFH Tissue North America. Christoph Michalski will continue as President for the Global Hygiene Category Unit, and Ulf Söderström will continue as President for the business unit SCA Asia Pacific (APAC).

The new hygiene organization will be effective as of 1 January 2012. The Presidents for the above new units will be members of SCA’s Corporate Senior Management Team.

“The new organization will enable us to further leverage on our global scale, making us more efficient. It will also empower us to act as an even closer local partner to customers. By strengthening our global market presence, it will facilitate our capitalizing on demographic, economic and consumer-lifestyle changes, especially in emerging markets,” says Jan Johansson, SCA’s CEO and President.

SCA’s external financial-reporting structure is not affected by the organizational change.

Sonoco Recycling, Inc., a wholly owned subsidiary of Sonoco and one of the largest packaging recyclers in North America, today helped kick off the “South Carolina Welcomes You to Recycle” program at the York, S.C., welcome center.

The program is a public-private partnership between Sonoco Recycling, the S.C. Department of Health and Environmental Control (DHEC); the S.C. Department of Parks, Recreation and Tourism (SCPRT); the S.C. Department of Transportation (SCDOT); and PalmettoPride. An extension of the “Recycling at the Parks” partnership, begun in 2010, the “South Carolina Welcomes You to Recycle” program encourages South Carolina motorists and visitors to the state to recycle their road-trip waste instead of trashing it.

“The ‘South Carolina Welcomes You to Recycle’ program is a natural addition to the ‘Recycling at the Parks’ partnership,” said Lee Tsiantis, maintenance contracts manager, SCDOT. “We are beginning with the York County site in November, and hope to continue to add more until we are able to have all nine welcome centers recycling.”

“The County will be collecting the material from the welcome center and transporting it to Sonoco Recycling,” said Arthur Ligon, supervisor, Collection and Recycling with York County. “With approximately 500,000 annual visitors to the York site and the potential of reaching 1.3 million total visitors by next year, we are eager to see how this program grows recycling in South Carolina.”

Jim Brown, vice president, Sonoco Recycling, agrees, “The effort to increase recycling by visitors and tourists goes hand in hand with our growing focus on recycling education in South Carolina schools, and demonstrates our Company’s commitment to changing the recycling culture in South Carolina.”

Sonoco Recycling is buying containers and program stickers to be placed at each welcome center. The Company will also be processing the materials collected at the York County site.

A recycling leader with locations and expertise worldwide, Sonoco Recycling annually collects more than 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers.

Currently, Sonoco Recycling operates six material recovery facilities (MRFs) and serves more than 125 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

Source: Sonoco

International technology Group ANDRITZ has received an order by SFT Group, a rapidly growing packaging producer in Russia, to rebuild and modernize a mothballed kraft paper machine after dismantling it at UPM’s Kymi mill in Finland and relocating it to SFT’s Kamenskaya mill in the Tver region, Russia.

The rebuilt and modernized board machine for the production of fluting and testliner will have a capacity of 215,000 t/a (design speed 1,050 m/min, trim width 4,600 mm). As part of the rebuild, ANDRITZ PULP & PAPER will deliver various machine components such as a PrimePress X press section, PrimeDry drying cylinders, and modifications to the wire and reel sections.  Start-up is scheduled for October 2012.

ANDRITZ PULP & PAPER will also deliver a recycled fiberline, a paper machine approach system, and a broke handling line to SFT Group. The recycled fiberline will process 800 t/d of 20% mixed waste paper and 80% OCC (Old Corrugated Container) from Russia.

The approach system will include a three-stage headbox screening system, a save-all disc filter, and under-machine pulpers. The scope of supply also comprises various process pumps and agitators for stock preparation, and the automation systems (process control and quality control).

Metso wins Best Automation Award from Brazilian Technical Association of the Pulp and Paper Industry

For the sixth time, Metso has been chosen as the best company in the Automation category by ABTCP, the Brazilian Technical Association of the Pulp and Paper Industry. The award was granted on October 4, 2011, at the 44th Pulp and Paper International Congress and Exhibition in São Paulo, Brazil.

In 2011, Metso further strengthened its presence in South America. In April, the company concluded an agreement to supply all main technology for the 1.5 million-ton greenfield pulp mill of Suzano Papel e Celulose S.A., one of the largest vertically integrated producers of pulp and paper in Latin America. The new mill will be built in the state of Maranhão in the northeastern part of Brazil. Startup is scheduled for the first half of 2013.

Metso's scope of supply covers the main parts of the pulp mill, comprising wood handling, the cooking plant and fiber line, pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln. The integrated automation solution for all process areas includes an automation system, a quality management system, profilers, advanced process controls, valves, analyzers, a baling quality management system and a process & quality management system.

Another important Metso delivery includes a valve package to the Montes Del Plata project in Punta Pereira, Uruguay.

ABTCP, the Brazilian Technical Association of the Pulp and Paper Industry, arranges a pulp and paper related congress and exhibition every year. This year, the event had nearly 200 exhibitors and 8,400 visitors

Building on its award-winning "Paper Because" campaign, Domtar Corporation has released a new series of videos promoting the important role paper plays in our lives.

The videos will debut on PaperBecause.com, Domtar.com, YouTube and social media sites - relying on satire to highlight how using paper responsibly makes business sense and how it's also an environmentally sound choice. The 30-second spots take a humorous look at office settings where the pressures to go paperless are taken to ridiculous lengths. In early 2012, new print ads will be added to the campaign in trade and consumer media, while the videos and banner ads will appear on a variety of news websites.

"Paper Because has enabled Domtar to communicate the importance of paper to business and opinion leaders," said Lewis Fix, Vice-President of Sustainable Business and Brand Management at Domtar. "Domtar has long been a leader in sustainable paper production. The Paper Because campaign promotes the responsible use of paper, while also reminding people of just how effective paper is in communicating on logical and emotional levels in so many business and personal settings."

Since Domtar unveiled the Paper Because campaign last year, there has been substantial support from paper industry, printing, graphic design and marketing partners. Many have picked up elements of the campaign and provided significant exposure on websites, in catalogs, at conferences and other outlets.

The Paper Because campaign has also received positive industry recognition. The GraphicArts Show Company gave its "Positively Print" award in September to Domtar to spotlight the variety of ways in which the effectiveness of print is being promoted. In addition, the campaign won Best of Show at the ACE Awards; Best of Category in the Business Marketing Association's B2 Awards; National Association of Major Mail Users Environmental Award for Industry Leadership and Best Management Practices; and awards from the Association of Independent Creative Editors and the Printing Industry of the Carolinas.

"Paper Because demonstrates that paper is sustainable, personal and purposeful. It's easier to learn on paper, senior executives prefer print versus online information, people make purchases as a result of direct mail, and paper is one of the most recycled products on the planet - more than 63 percent of paper gets recycled," noted Lewis Fix. "That's a pretty exciting story about a product that has been in use for more than 2,000 years."

"Paper Because has allowed Domtar to initiate a positive conversation on many levels with a variety of audiences about the importance of paper to the economy, the environment and everyday life," added Fix. "We're excited about this new phase of the campaign because it continues to tell a leadership story about Domtar as the Sustainable Paper Company."

For more information, please visit www.paperbecause.com.