Tembec has confirmed a $190-million capital investment to upgrade its specialty cellulose manufacturing facility at Temiscaming, Que. This investment will increase annual production of green electricity by up to 40 megawatts, reduce sulfur dioxide emissions by 70%, increase Temiscaming's annual production capacity of specialty cellulose by 5,000 tonnes, and make Temiscaming one of the world's lowest-cost specialty cellulose manufacturing facilities.

Pöyry's Energy business group has been awarded the detail engineering and procurement assistance support contract for the project.

This project is the first phase of a two-phase investment plan for the facility. It will involve the replacement of three old boilers with a new high-pressure boiler designed to burn waste sulfite liquor, a co-product of the specialty cellulose manufacturing process, producing green steam for use at the facility. The project also calls for the installation of a new electricity turbine that will be driven by this steam. The turbine will increase the Temiscaming facility's green electricity production capacity from its current 10 megawatts to, eventually, 60 megawatts. The boiler is scheduled to start up in December 2013, followed by the turbine, in May 2014.

Hydro-Québec will offtake the additional green electricity produced by this turbine under a 25-year contract at $106 MW/hour, indexed with CPI, which will strengthen and stabilize Tembec's revenues through the economic cycle.

Pöyry's assignment, valued at $7.2 million, includes project management and detail engineering design for all disciplines. The project will be executed by Pöyry's office in Montreal.

Once the new equipment is in operation, Tembec expects a four-year return on investment, through new revenues from green electricity, the additional production of 5,000 metric tonnes of specialty cellulose and lower costs.

The new boiler, turbine and emission control equipment will be sized to accommodate Phase 2 of the project, a follow-on investment of $120 million which is currently projected for 2014- 2015. Phase 2 would increase Temiscaming's annual specialty cellulose production capacity by 30,000 metric tonnes, boost green electricity generation by 10 megawatts to attain full turbine capacity, and further reduce operating costs.

Tembec is the world's second leading producer of specialty cellulose.

The Turkish paper producer Alkim Kagit has signed, with full satisfaction for the fulfilment of all contractual performances, the Final Acceptance of the WF Writing & Printing PM1 Press Section rebuild project realised by PMT in February 2011.

The 4 m wide PM1 has been equipped with a new SMARNIP® Mini Shoe Press.

This successful project represents for PMT one step beyond for its presence on the Turkish Market and the confirmation of the SMARNIP winning application on graphic paper grades by paper quality improvement and increased production rates.

Vacon Plc's Annual General Meeting (AGM) was held in Vaasa today, 27 March 2012. The AGM adopted the proposal by the Board of Directors to pay a dividend of EUR 0.90 per share i.e. appr. MEUR 13.7 in total. The record day for the dividend payment is 30 March 2012. The dividend will be paid on 11 April 2012.

The financial statement of Vacon Plc for the fiscal year 2011 was approved and the members of the Board of Directors as well as the CEO were discharged from liability for said fiscal year 2011.

The number of members of the Board of Directors was confirmed to be seven. Pekka Ahlqvist, Jari Eklund, Jan Inborr, Juha Kytölä, Panu Routila, Mika Vehviläinen and Riitta Viitala were re-elected as members of the Board of Directors.

The AGM resolved to pay the members of the Board of Directors a basic fee of EUR 1,250 a month and an additional fee of maximum EUR 2,500 a month. The additional fee is determined based on the development of the company's turnover and operating profit for the fiscal year 2012. It was resolved that the Chairman of the Board of Directors shall be paid twice the basic fee and twice the additional fee paid to the members of the Board of Directors. In addition, the compensation for attendance at the meetings of the Board of Directors' permanent committees was result to be EUR 500 per meeting. The travel expenses of the members of the Board of Directors are compensated in accordance with the company's Travel Policy.

The number of auditors was confirmed to be one. PricewaterhouseCoopers Oy was elected as the company's auditor with Markku Katajisto as the principal auditor.

The AGM adopted the proposals of the Board of Directors to authorize the Board of Directors to resolve to repurchase shares in the company and to decide on share issuance. The proposals of the Board of Directors regarding said authorizations were reported in the stock exchange release of 17 February 2012.

All decisions adopted at the AGM were made unanimously unless otherwise stated in the minutes of the meeting.

After the AGM, the Board of Directors at its organization meeting elected Jan Inborr as Chairman and Mika Vehviläinen as Vice Chairman of the Board. Jan Inborr, Mika Vehviläinen and Riitta Viitala were elected as members of the Board's Remuneration and Nomination Committee. Jan Inborr was appointed as Chairman of said committee. At the same meeting, the Board of Directors decided to establish an Audit Committee. The members of the Audit Committee are Panu Routila (Chairman), Jari Eklund and Juha Kytölä.

The Annual General Meeting of Clariant AG, a world leader in specialty chemicals, took place on 27 March 2012 in Basel and approved all agenda items. It was attended by 560 shareholders or proxies, representing 132`215`758 shares or 44.7% of Clariant's total share capital.

The AGM approved the annual report and annual accounts for 2011 with 99.9 percent of votes, discharged the corporate bodies of the company with 98.1 percent of votes, and voted for the allocation of the available net profit to the free reserves with 99.8 percent. With 76.8 percent of votes, it also approved on a consultative basis the company's compensation policy.

With 99.7 percent of votes, the General Meeting followed the Board of Director's proposal to repay the par value of CHF 0.30 per registered share, instead of distributing an ordinary dividend. The share capital will therefore be reduced as well as the par value of each registered share by CHF 0.30 to CHF 3.70.

With 65.6 percent of votes, shareholders also waived the restriction of the voting rights limit of
10 percent of the share capital for each shareholder.

Rudolf Wehrli succeeded Jürg Witmer as Chairman of the Board of Directors, as both Witmer and Klaus Jenny retired from the Board.

PricewaterhouseCoopers AG was re-elected as auditors for the financial year 2012.

In his outlook, CEO Hariolf Kottmann confirmed the already announced expectations for 2012. An accurate forecast for 2012 is difficult to make, given the current level of economic uncertainty. In its base case scenario, Clariant expects that, after a weak start to 2012, the global economy will progressively strengthen in the course of the year. Therefore, results for the first half-year are expected to be lower compared to the high base of the first half of 2011, with an improvement in the second half-year 2012. For full-year 2012, Clariant expects further sales growth in local currencies and sustained profitability.

With effect from 1 April 2012 ÅF is implementing an organisational change in respect of the Group's operations outside Scandinavia (i.e. those in countries other than Sweden, Norway and Denmark). The main purpose of this restructuring exercise is to improve profitability and accelerate the Group's international growth.

The main components of the change are as follows:

• The Energy Division Energy will be split into two new divisions: International North and International South. In contrast to the current situation, these two divisions will be responsible for the full spectrum of ÅF's consulting services within their respective geographical areas.
• International North will consist of the ÅF Group's consulting resources in Finland, Russia, the Czech Republic, Lithuania and Estonia. The number of employees in this new geographical region will total approximately 750.
• International South will consist of ÅF Switzerland and Spain with subsidiaries in India, Thailand, Turkey, Vietnam, Nigeria, Italy, Brazil and the UK. The number of employees in this new geographical region will total approximately 350.
• Eero Auranne (formerly President of the Energy Division) will head the work of International North.
• Roberto Gerosa (formerly VP Business Development) will head the work of International South. Roberto Gerosa joined ÅF in 2006 following the acquisition of the Swiss technical consulting company, Colenco, where he was Managing Director.

As a result of the change, ÅF will comprise five divisions: Industry, Infrastructure, International North, International South and Technology.

The Industry, Infrastructure and Technology Divisions will henceforward report their results from Scandinavia and be represented in a strategic role on the board for ÅF operations in the rest of the world.

ÅF AB

Tembec announced today a $190-million capital investment to upgrade its specialty cellulose manufacturing facility at Temiscaming, Québec. This investment will increase annual production of green electricity by up to 40 megawatts, reduce sulfur dioxide emissions by 70%, increase Temiscaming’s annual production capacity of specialty cellulose by 5,000 metric tonnes, and make Temiscaming one of the world’s lowest-cost specialty cellulose manufacturing facilities.

This project is the first phase of a two-phase investment plan for the facility. It will involve the replacement of three old boilers with a new high-pressure boiler designed to burn waste sulfite liquor, a co-product of the specialty cellulose manufacturing process, producing green steam for use at the facility. The project also calls for the installation of a new electricity turbine that will be driven by this steam. The turbine
will increase the Temiscaming facility's green electricity production capacity from its current 10 megawatts to, eventually, 60 megawatts. The boiler is scheduled to start up in December 2013, followed by the turbine, in May 2014.

Hydro-Québec will offtake the additional green electricity produced by this turbine under a 25-year contract at $106 MW/hour, indexed with CPI, which will strengthen and stabilize Tembec’s revenues through the economic cycle.

The $190-million investment in Phase 1 will be financed with $105 million of new debt, which includes a $75-million loan from Investissement Québec; the balance of $85 million will come from free cash flow from Tembec operations.

“This game-changing project for Tembec will make Temiscaming one of the most competitive mills in the global pulp and paper market. I want to acknowledge the critical support of the Québec Government, through Investissement Québec, and the continuing commitment of our employees to remaining competitive,” stated James Lopez, Tembec’s President and Chief Executive Officer.

“This exciting project shows Québec’s commitment to supporting its regional resource-based industries, and helping them compete on the world stage. By working together proactively with local governments and Investissement Québec, we are pleased to reinforce Tembec’s leadership position in specialty cellulose, a growing and sustainable industry,” stated Québec Premier Jean Charest.

Once the new equipment is in operation, Tembec expects a four-year return on investment, through new revenues from green electricity, the additional production of 5,000 metric tonnes of specialty cellulose and lower costs. Tembec’s management expects the project will reach an annual run-rate EBITDA (earnings before interest, taxes, depreciation and amortization) contribution of approximately $40—$45 million by fiscal year 2015 assuming implementation as scheduled and planned.

The new boiler, turbine and emission control equipment will be sized to accommodate Phase 2 of the project, a follow-on investment of $120 million which is currently projected for 2014- 2015, Phase 2 would increase Temiscaming’s annual specialty cellulose production capacity by 30,000 metric tonnes, boost green electricity generation by 10 megawatts to attain full turbine capacity, and further reduce operating costs.

Tembec is the world’s second leading producer of specialty cellulose

Refined from wood pulp, specialty cellulose is a component of products in the pharmaceuticals, food, cosmetics, personal care, construction and electronics industries, among others. It is a high margin business, growing in the range of 4% to 5% per year, and enjoys more stable demand than forest product commodities.

Tembec’s combined investment of $310 million in the Temiscaming specialty cellulose facility – $190 million in Phase 1, and $120 million in Phase 2 – will be one of the largest in the forest products industry in many years. It will further reinforce Tembec’s position as the world’s second leading producer of specialty cellulose.

The overall project will increase Tembec’s annual production capacity of specialty cellulose from the current 310,000 metric tonnes to 345,000 metric tonnes. The Temiscaming facility’s production capacity will increase from the current 160,000 metric tonnes to 195,000 metric tonnes. Tembec’s Tartas, France, specialty cellulose facility has a current production capacity of 150,000 metric tonnes.

Tembec’s new 25-year power contract with Hydro-Québec

Tembec’s limited partnership, Tembec Energy L.P., has entered into a long-term power purchase contract with Hydro-Québec acting through its Hydro-Québec Distribution division. The agreement will allow Tembec to sell to Hydro-Québec, for a 25-year term, up to 50 megawatts of the electricity generated by a new turbine to be installed at its Temiscaming mill at green energy rates of $106 MW/hour, indexed with CPI.

Tembec’s loan agreement with Investissement Québec

In connection with the project, Tembec has also entered into a $75-million loan with Investissement Québec, a governmental agency, which will be used to finance a portion of the total cost of the project which is currently estimated at $190 million. The loan bears interest at a rate of 5.5% compounded yearly and is secured by a second priority charge over the project’s assets. The loan shall be reimbursed in equal monthly payments over a period of 12 years starting 36 months after the initial loan disbursement and is subject to compliance with certain covenants and undertakings customary with such types of loans. Under this loan, Tembec has also agreed to grant to Investissement Québec a five-year option to purchase three million common shares of Tembec at a price of $7 per share.

Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. With annual sales of approximately $2 billion, Tembec has 4,000 employees and is listed on the TSX (TMB).

Norske Skog has entered into an agreement to sell the Follum site to Viken Skog, which has ambitious, future plans.

After the decision to close the mill at Follum, Norske Skog has worked to find relevant stakeholders to create new activities on the site. Norske Skog considers it a good solution that others can now take over the further development.

- Norske Skog is very pleased that Viken Skog will now take over the work to create new activities at Follum. It has been important for us to find a buyer with ambitions for the future, with support from Buskerud county Council, Ringerike municipality Council and regional businesses, and not least from the trade unions at Follum. I wish Viken Skog and the Ringerike region luck with the exciting development work, says president and CEO in Norske Skog, Sven Ombudstvedt.

- Viken Skog will develop a new, future-oriented forest-based industry cluster at Follum. The location and the existing infrastructure, in the heart of Norway's richest forest areas make Follum a natural centre for an offensive strategy. It will be a milestone for the Ringerike region that Follum will now become a centre for sustainable development of environmentally friendly products from the forest. We have had good cooperation with the Ministry of Trade and Industry in the process of forging our long-term industrial plans. We now expect the government to implement measures to promote innovation and research in forest-based industries, in order to contribute to the huge effort we now face, says managing director Ragnhild Borchgrevink.

The net sales proceeds are in the order of NOK 60 million. The sales price will be payable upon acquisition. The acquisition will take place in the second quarter of 2012. The sale will be implemented through Viken Skog purchasing Norske Skog Follum AS and Follum Industripark AS, as well as all properties related to the mill site, including Årbogen. Norske Skog will disassemble and retain parts of the technical production equipment. Norske Skog will discontinue production at Follum on Friday 30 March.

Sale of the Follum site will generate a total accounting gain in the order of NOK 30 million. This will be recognised in the first quarter of 2012. DHT Corporate Services and Advokatfirmaet Haavind AS acted as Norske Skog's financial advisors.

Norske Skog has agreed to sell Norske Skog Bio Bio in Chile to Group BO, a consortium of Chilean investors, for USD 56 million. Group BO plans to continue producing newsprint at the mill.

- The divestment is a part of our strategy to improve Norske Skog's cash flow and financial position. We are very pleased to be able to sell the Chilean operations to an industrial player with long-term plans for the mill, says Sven Ombudstvedt, president and CEO of Norske Skog.

The Bio Bio mill has a total newsprint production of approximately 125 000 tons, and is one of total four newsprint mills in South America.

The investors participating in Group BO are already partners in BO Packaging, which is one of the leading companies in the Chilean and Peruvian packaging business. The investor consortium is headed by the Pathfinder Group, former owners of Masisa, and has interests in packaging, glass products, building products, agribusiness and real estate.

Closing of the transaction is expected to take place in second quarter.

DNB Markets acted as Norske Skog's financial adviser.

UPM will begin a large construction project at its Pietarsaari pulp mill to rebuild the mill’s effluent treatment plant. The circa EUR 30 million investment will cover the rebuild of all of the main phases of waste water treatment. The work will start immediately and is to be completed at the end of 2013.

”With the rebuild of the effluent treatment plant we will improve the pulp mill’s production efficiency and reduce its environmental impact. The rebuild will also enable further development of the mill in future”, says the mill’s General Manager Kenneth Winberg.

The construction includes a new preliminary clarifier for fibres and an aeration basin, created mainly by excavating rock. The pumping station and compressor house will be completely new constructions.

Continuous improvement in water use

UPM is currently reviewing water management and efficiency in material use at several mills. By 2020, we aim to have reduced waste water volume by 15% in pulp and paper production compared with levels in 2008. Sustainable use of water is one of our core environmental principles.

UPM treats all waste water in primary and secondary effluent treatment plants before it is released into watercourses. The biological treatment stage is an efficient way to remove dissolved organic contaminants and nutrients from waste water. The emission level of waste water is regularly measured and monitored according to valid monitoring plans.