Kemira will expand its hydrogen peroxide production capacity in Fray Bentos, Uruguay. Hydrogen peroxide is produced in one of the most modern chemical islands built and operated by Kemira since 2007. This expansion will allow Kemira to serve the growing market in the region. 

Kemira is a global, over two billion euro, water chemistry company that is focused on serving customers in water-intensive industries. The company offers water quality and quantity management that improves customers’ energy, water, and raw material efficiency. Kemira’s vision is to be a leading water chemistry company.

www.kemira.com

BASF India Limited will invest €150 million to set up a new chemical production site at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), located on the west coast of India in Gujarat.

The new site will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper. With this new production site, BASF aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care. The start of production is planned for 2014.

“With its robust local industries, India is set to become a pillar of growth in Asia Pacific. The country’s changing demographic profile and the resulting need for improved quality of life are driving increasing market demand. With the new manufacturing facility, we will be able to serve our customers better by developing solutions that meet their individual needs as well as strengthen their competitive advantage,” said Dr. Martin Brudermueller, Vice Chairman of the Board of Directors of BASF SE, responsible for Asia Pacific.

“The Dahej site complements the existing manufacturing set-up of BASF in India and will support and contribute to the growth of the Indian chemical industry,” said Mr. Prasad Chandran, Chairman and Managing Director, BASF India Limited. “The location offers excellent investment conditions and a favorable business environment due to the proximity to raw materials as well as customers. With this new project, we expect to grow our businesses in the important northern and western regions of India”, he added.

The site will employ more than 250 people at full capacity, primarily in operations. With shared infrastructure and state-of-the-art production systems, the site will also provide resource efficient BASF technologies for the conservation of energy and water. The site’s advanced design takes advantage of the latest technologies from BASF facilities around the world and ensures safe and responsible operations.

The integrated polyurethane facility will produce Elastollan® TPU (Thermoplastic Polyurethane), Cellasto® NVH (Noise, Vibration and Harshness) parts and Polyurethane Systems, which is supported by new production facilities for important precursors, comprising Polyetherols and Polyesterols plants as well as a plant for processing crude MDI (diphenylmethane diisocyanate).

The care chemicals facility at the new Dahej site will produce surfactants largely for home and personal care. These surfactants will also add value to formulation technology applications including agrochemicals, textiles and emulsion polymerisation. With BASF’s global growth strategy for its care chemicals business, the Dahej site adds to BASF’s production footprint in one of the fastest growing emerging markets.

The polymer dispersions facility at the site will produce Acronal® and Styrofan®, key ingredients for architectural coatings, adhesives, and construction, Styronal® and Basonal® for paper coating and Basoplast® for sizing. BASF currently produces dispersions at an existing plant in Mangalore.

According to the 2012 Global forest, paper, and packaging sector outlook from Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group, the forecast for this sector is closely tied to economic and operational dynamics at the regional level, and how they impact the global supply chain of the industry.

According to the report, China is expected to lead the sector in growth for 2012 due to increasing demand in the Asia Pacific region. However, Chinese companies are confronted with profitability challenges because of raw material cost and producer fragmentation.

Modest growth is anticipated in North America overall, but several subsectors will still face difficulties ahead.

“A handful of well-managed paper and packaging producers will continue to focus on operational efficiencies and cost containment strategies while building strong cash reserves on their balance sheets,” said John Dixon, global forest, paper, and packaging sector leader, DTTL. “These companies are in a good position to make bold moves into adjacent products, enter new emerging markets, or further their market share through acquisitions. They are also able to better address the growing challenge of securing limited natural resources and manage the uncertainties of government regulation. The widening gap between the haves and have-nots could have a material impact on the global dynamics of the industry.”

Europe is facing a potential economic recession due to declining demand and overcapacity for paper products. Meanwhile, growth in South America is slowing, with only an incremental increase in pulp and paper demand expected for 2012.

“Pulp producers are nearing the bottom of the roller coaster ride that they have been on for the past year and a half. Pulp prices have tumbled from their recent highs thanks to an 18 percent increase in inventories compared to last year when there was a scarcity of pulp throughout the world,” said Dixon. “At the end of the first quarter in 2012, prices are beginning to recover, led by South American producers. The global forest, paper, and packaging companies that have made the necessary adjustments to strengthen their position through liquidity, operational efficiencies, and opportunistic growth will likely have a strong performance year in 2012 and will continue to influence the on-going evolution of the industry.”

To access the 2012 Global forest, paper, and packaging sector outlook, please visit www.deloitte.com/manufacturing.

source: http://www.pulpandpapercanada.com

UPM clarifies the strategy of its Timber and Living business areas and plans to restructure the production operations in Finland. The plan includes a possible closing of the production of Kajaani sawmill and Heinola and Aureskoski further processing plants by the end of 2012. UPM will begin co-determination negotiations with the employees in Kajaani, Aureskoski and Heinola, and later during April-May with the employees in the Finnish staff functions. Altogether 275 employees are included in the negotiations. Sale is an alternative option for closure of the production units.

”The profitability of the sawmills and further processing units located furthest from our integrated mills has been weak for a long time and has not turned permanently profitable despite the earlier restructuring measures. High log price and over capacity in the end-product markets have weakened the situation,” says the President of UPM’s Energy and Pulp Business Group Heikki Vappula.

”Our plan is to continue sawmilling and further processing in Finland in four locations, Pietarsaari (Alholma), Pori (Seikku), Juupajoki (Korkeakoski) and Lappeenranta (Kaukas), which are close to our pulp and paper mills using big volumes of wood. Saw mills and further processing plants operating close to pulp and paper mills have a central role in UPM’s wood sourcing supply chain as their by-products are used in the production of pulp, paper and energy.”

”The Kajaani, Heinola and Aureskoski production units have good foundations to succeed as independent units what makes the sale of the units a considerable alternative,” says Vappula.

As part of the clarification of the Timber business strategy, UPM will assess the operational preconditions and role of the Pestovo saw mill and planing mill in Russia by the end of 2012.

The Aigrefeuille further processing plant in France and the Steyrermühl sawmill in Austria will continue their operations as before and are excluded from the above mentioned plan.

The plans have no effect on UPM’s current customer commitments or other valid contracts.

In the second quarter of 2012, UPM will book impairment charges of approximately EUR 35 million and make a provision for restructuring costs of approximately EUR 10 million.

The strategy development of UPM Timber and Living business areas will proceed in UPM’s internal work groups. Mr Anssi Klinga has been appointed the new head of the businesses, Senior Vice President, UPM Timber and Living Business Area. He has a long experience of international management positions and he most recently held the position of the CEO of Vaahto Group.

Why you should mark this event in your calenderer for 2012!

The final conference for the SustainComp project financed by the EU will take place in Stockholm on June 14-15. This conference, which is open to all, will report on results achieved throughout the project.

“We will be outlining what we have accomplished and show a number of demonstrators prepared in this project. SustainComp is a combination of scientific project and materials and process development. This mix is reflected in the programme for the conference, which will include fundamental issues for discussion, as well as material concepts,” says Project Coordinator Mikael Ankerfors.

The conference begins following the final session of Paper Chemistry conference and continues in parallel with the final session of Paper physics.

Registration before May 14, 2012.

Conference venue

June 14 at Clarion Sign Hotel, Norra Bantorget Stockholm, Sweden, between 13.00–17.00.

June 15 at Innventia, Drottning Kristinas väg 61, Stockholm, Sweden, between 9.00–14.00.

Outotec has agreed to enter into a mutually beneficial business relationship with Swiss Tower Mills Minerals Ltd to complement its offering for fine, ultra fine and regrind milling in metallurgical processes. According to the agreement, Outotec has exclusive rights to sell the Tower Mills (STM) grinding technology, which will be marketed as Outotec® High Intensity Grinding Mills (Outotec® HIGmill). There are more than 260 installed grinding mills around the world using this technology.

The purpose of this agreement is to bring a new option to the market enabling Outotec to compete for the position of market leader in fine and ultra fine grinding. Outotec intends to provide comprehensive solutions to customers also through combining regrind milling with flotation technology. In existing installations and plants, Outotec's global network of technical experts and service centers is able to suggest process improvements by using the HIGmill technology and provide support to the customers during the entire lifecycle of their mills.

"This agreement will strengthen our position as a leading provider of sustainable grinding solutions. The HIGmill technology broadens our technology portfolio enabling us to offer complete value adding grinding solutions to our customers", says Outotec CEO Pertti Korhonen. 

SCA has decided to acquire an additional 5 percent of the shares in the leading Chinese tissue company Vinda. The purchase price is around 600 MSEK.

The seller in the transaction is Fu An, a company majority owned by Mr Li, the Chairman of Vinda. SCA’s share in Vinda after the transaction will be 22.6%.

Vinda is one of the most successful tissue producers in China, the second largest tissue market in the world. Currently Vinda commands strong brand recognition in the country and being the third largest player in the China household paper industry in terms of market share and production capacity. The company has eight production facilities with a total production capacity of 470,000 tons and targeting to reach 1 million tons in the coming years.

“The market for tissue products in China continues to grow well and continues to consolidate with the larger players, like Vinda, growing at a significantly faster speed than the market. We intend to be among the leading players in China and we have for this reason taken the decision to increase our ownership in Vinda”, says Jan Johansson, SCA’s President and CEO.

The transaction is subject to receiving consent from some of Vinda’s lending banks. Vinda is listed on the Hong Kong Stock Exchange.

M-real Corporation, a part of Metsä Group, has agreed to divest 7.3 percentage points of its shareholding in Metsä Fibre Oy to the Japan-based Itochu Corporation for EUR 138 million and approximately 0.5 percentage points of its holding in Pohjolan Voima Oy to Metsä Fibre for EUR 64 million.

The closing of M-real’s divestment of the 7.3 percentage point shareholding in Metsä Fibre is subject to German competition authority approval and it is expected to take effect by end 2Q 2012. Once the announced restructuring of the ownership of Metsä Fibre is completed, M-real owns 24.9 per cent, Metsäliitto Cooperative 50.2 per cent and Itochu Corporation 24.9 per cent of the company.

The divestment of the 7.3 percentage point shareholding in Metsä Fibre is done to reduce M-real’s pulp surplus and to further strengthen Metsä Fibre’s business especially in the growing Asian market. Once the transaction is completed, M-real’s pulp surplus reduces from approximately 0.5 million annual tonnes to 0.3 million annual tonnes.

After the 0.5 percentage point reduction of shareholding in Pohjolan Voima that took effect today, M-real owns approximately 2 per cent of the company.

M-real will in the 2Q 2012 Other operations’ operating result book as a non-recurring item a capital gain of approximately EUR 88 million related to the Metsä Fibre shares to be divested. The Other operations’ 2Q 2012 operating result will also include as a non-recurring item a realized fair value and gain of approximately EUR 40 million related to the divested Pohjolan Voima shares that does not have an impact on the company’s total equity. The divestments have a negative impact of approximately EUR 15 million on annual operating result compared to actual results in 2011. The divestments have an approximately 40 percentage point positive impact on M-real’s net gearing compared to end 2011.

“We are reducing our pulp surplus according to our strategy. The transaction with Itochu provides an excellent possibility to develop Metsä Fibre further and shows also the great value of our pulp assets. Also in the future we produce more pulp than we use, thus we continue to have a good platform to grow our profitable paperboard business. These divestments also strengthen the company’s liquidity without having a material impact on our operating cash flow,” comments M-real’s CEO Mikko Helander. 

Itochu Corporation is one of the largest trading companies in Japan with approximately 130 bases in different industries in close to 70 countries. Itochu Corporation’s trading volume for the fiscal year ended on 31 March 2011 exceeded EUR 100 billion. Further information of the company can be found on their home page http://www.itochu.co.jp/en/.
 
Annual General Meeting of M-real Corporation decided on 28 March 2012 to change the company’s business name to Metsä Board Corporation. The new business name is expected to be officially registered during April 2012. Before the official registration the company’s stock exchange releases are sent under the name M-real Corporation.  

M-REAL CORPORATION

Mercer International Inc. announced that it has extended to April 16, 2012, the expiry date for its offer (the "Offer") to acquire all of the issued and outstanding common shares of Fibrek Inc. ("Fibrek"). The extension is intended to allow Mercer to obtain shareholder approval (the "Shareholder Approval") at its meeting of shareholders scheduled for April 10, 2012, for the issuance of its common stock (the "Mercer Shares") in connection with the Offer. Mercer previously entered into voting support agreements with its two largest institutional shareholders and its Chairman and Chief Executive Officer, who collectively own approximately 44% of the outstanding Mercer Shares, who have agreed to vote their Mercer Shares in favor of the Shareholder Approval.

The consideration offered by Mercer under the Offer and the remaining terms thereof remain unchanged. As varied, Mercer's Offer will expire at 11:59 p.m. (Eastern Time) on April 16, 2012, unless otherwise extended or withdrawn by Mercer.

Mercer also announced that it has: (i) received a favorable decision from the federal Minister of Industry following his review of Mercer's proposed acquisition of Fibrek under the Investment Canada Act and (ii) been granted early termination of the statutory waiting period for U.S. competition and antitrust review by the U.S. Federal Trade Commission.

The Offer remains subject to customary conditions, including, among others, there being deposited (and not withdrawn) that number of Fibrek common shares which, together with the Fibrek common shares and special warrants, if any, held by Mercer, represent at least 50.1% of the outstanding Fibrek common shares on a fully-diluted basis, receipt of the Shareholder Approval and the absence of a material adverse change with respect to Fibrek. As at the date hereof, approximately 28 million common shares of Fibrek have been deposited to the Offer.

Full details of the Offer are included in the offer and takeover bid circular dated February 29, 2012 and ancillary documents, as amended by the notice of variation dated March 19, 2012 and the notice of variation and extension dated April 5, 2012, all of which are available on SEDAR at www.sedar.com.