SCA has issued a EUR 600 million 5.25-year Eurobond under its EMTN (Euro Medium Term Note) programme. The bond carries a coupon of 3,625% p.a., equivalent to Euro Mid-swaps +78 bps.

The bond offering was well oversubscribed. The bond was finally placed with some 150 international investors.

The bonds will be listed on the Luxembourg Stock Exchange. The proceeds of the offering will be used for general corporate purposes.

BNP Paribas, Deutsche Bank, ING and UniCredit acted as joint bookrunners for the transaction.

Södra Cell is to start producing and selling the biodegradable composite material, DuraPulp, at its Värö mill. Production is scheduled to commence after the summer.

"DuraPulp is a material that is making a very timely appearance. It can replace plastics in many applications but it has the distinct advantage of being biodegradable. The time is right to begin producing and selling this material," commented Henrik Wettergren, Business Area Manager for Printing Paper and Specialities.

Initially, sales of DuraPulp will focus on the business areas of speciality paper, design and board.

"We believe that our customers will come from these three business areas. We will begin with small-scale production but we're prepared to increase production to match demand," Wettergren added.

DuraPulp is the result of many years of research and was produced by Södra together with the research and development company Innventia. The starting point for the research included the idea of creating a new fibre-based material that would be renewable and biodegradable.

DuraPulp is a composite material made of specially selected pulp from Södra Cell combined with a renewable biopolymer. Following additional processing, these two components take on special properties such as humidity resistance, tensile strength and rigidity.

The use of DuraPulp was first demonstrated at the Milan Furniture Fair in 2009 through the children's chair, Parupu, which was developed by the Stockholm design firm, Claesson Koivisto Rune. The firm has also created the lamp w101 made of DuraPulp that is now being sold by the lighting company, Wästberg.

BASF will invest in a dispersions plant in Durban, South Africa. The new plant will produce acrylic dispersions mainly for the coatings and construction industry. The facility will benefit from local availability of raw materials and proximity to key customers who serve South Africa’s and Sub Saharan Africa’s fast-growing markets. Production is scheduled to begin in the second half of 2012.

South Africa is the largest market for dispersions in Sub-Saharan Africa. “With this new facility, we are well positioned to support our customers’ growth in South Africa and its neighboring countries providing BASF’s quality, service and reliable supply” said Christoph Hansen, Senior Vice President Dispersions for Adhesives and Construction Europe. With its portfolio of specialties, BASF can help customers move towards more environmentally friendly technologies such as reduced Volatile Organic Compounds (VOC) and products free of alkyl phenol ethoxylate (APEO). This investment reflects BASF’s focus on participating in the strong growth markets in emerging Africa.

PaperlinX advises that trading and general economic conditions in our key European, United Kingdom and North American markets remain weak. Volumes are significantly below last year and below our expectations in Europe and the United Kingdom. Despite these market conditions the Company is maintaining market share in Europe, the United Kingdom and North America and has implemented some price increases in these markets.

The already depressed Australian print market is being further impacted by the high Australian dollar and this coupled with the Company’s strategy of not pursuing riskier, lower margin business is impacting results in Australia.

Although the Company is continuing with its business restructuring program to remove costs and better align businesses to the new market conditions, there is an unavoidable time lag between implementation and benefits flowing through to financial performance.

Accordingly, with market conditions and other key factors remaining relatively uncertain and difficult to predict, PaperlinX expects to report a full year statutory loss after tax for the 2011 financial year in the range of $23M to $30M, (inclusive of an estimated non cash valuation loss for a foreign currency option of some $A14M after tax). This compares to a statutory loss after tax of $225M for 2010. Underlying earnings after tax for the 2011 financial year are expected to be a loss after tax in the range of $7M to $14M, after adjusting for the impact of the foreign currency option and discontinued operations. This compares to an underlying loss after tax of $28M for 2010. Possible implications for impairment valuations at 30 June 2011 will be considered.

PaperlinX also advises that the maturity date of the Company’s largest borrowing facility (in Europe) has been extended from May 2012 to September 2013.

Russian log and lumber exports increased substantially in 1Q/11 thanks to higher wood demand in China, Finland and Japan, reports the Wood Resource Quarterly

The world’s largest log exporter, Russia, increased the shipments of logs in the 1Q/11 after having declined for four years, reports the Wood Resource Quarterly. Russian exports of softwood lumber have also gone up substantially, especially to China, Uzbekistan, Japan and Egypt.

Seattle, USA. Russia has for many years been, by far, the largest exporter of logs in the world. When the country announced a log export tax of 25 percent in 2007 and the intention to increase this tax to 80 percent in 2009, many forest companies in Asia and Europe decided to reduce their reliance on Russian logs. As a result, total log exports from Russia fell from 51 million m3 in 2006 to about 22 million m3 in 2009 and 2010. This downward trend, however, appears to have been broken in 2011. During the first few months, total softwood and hardwood log exports have been up by almost 40 percent compared to the same period last year, as reported in the Wood Resource Quarterly. Much of this increase in shipments has been to China, Finland and Japan. This recent upward trend can be expected to continue during 2011 and 2012, albeit less dramatically, as Russian log export taxes are reduced. During discussions between Russian and EU representatives in December last year, it became clear that Russia has been pressured to reduced log export taxes if the country wants to join the World Trade Organisation (WTO).

It is still not clear exactly what the new log export taxes may be and when they will be implemented. Softwood log taxes may fall to somewhere between 5-10 percent, and hardwood log taxes will probably be lower than those for softwood. The lower tax rates are not likely to be instigated until Russia has been recognized as a full member in the World Trade Organization (WTO), which may not be until early 2012.

Russia has not only increased its exports of logs but also of softwood lumber. From 2008 to 2010, exports were up 18 percent, reaching an all-time high of 17.5 million m3 last year, according to the Wood Resource Quarterly. So far this year, exports have been over 50 percent higher than the same period last year; 2011 may very well be a record-year. China is the largest market for Russian logs, followed by Uzbekistan, Japan and Egypt. Shipments to China tripled between 2007 and 2010; during the first quarter this year, exports were 150 percent higher than the same quarter in 2010.

The trade of logs and lumber between Russian and China can be expected to expand in the coming years because of the continued increase in demand for wood products in China and the country’s relative close proximity to Russian forests and sawmills.

M-real is raising the prices of folding boxboard by 7 to 9% in Europe, the Middle East and Africa, effective for invoicing as of July 1st 2011. The increase is a result of the cost inflation which has been higher than estimated.

M-real is Europe’s leading primary fibre paperboard producer and a major paper supplier. The company’s customers include brand owners, carton printers, converters, publishers, printing houses, merchants and office suppliers. 

M-real supports its customers’ businesses by providing high-performance paperboards and quality papers for consumer packaging, communications and advertising end-uses. Together with its customers and partners, M-real develops products and services for demanding end uses. The company’s paperboard is mainly used for the packaging of beautycare and healthcare products, foods, cigarettes, and consumer durables as well as graphics. Paper is mainly used for office papers as well as wallcoverings and other speciality end uses. 

M-real’s business areas are Consumer Packaging, Office Papers, Speciality Papers and Market Pulp and Energy. 

M-real is headquartered in Finland. In 2010, the company’s sales totalled EUR 2.6 billion, and it has approximately 4,500 employees. M-real, part of Metsäliitto Group, is listed on the NASDAQ OMX Helsinki Ltd.

www.m-real.com

Employees of BASF worldwide have donated more than €780.000 to the victims of the Japanese earthquake and tsunami. BASF fully matched each donation contributed by the employees one-to-one. Including these funds and the initial contribution by BASF, donations therefore total over €2 million.

Dr.  Martin Brudermüller, Vice Chairman of the Board of Executive Directors of BASF and responsible for the Asia Pacific region, said, “Following the devastating incidents in Japan, our local colleagues have shown enormous strength and perseverance, as well as commitment to sustaining BASF's business. During the past weeks I have been very happy to see how BASF employees around the world have joined in expressing their sincere support to Japan with their personal donations.”

The aid money from the employee donation campaign in Germany initially went to the BASF Social Foundation. This institution, in close cooperation with BASF Japan, will now identify suitable partner organizations and projects in Japan for the use of the matching funds. Employees of BASF group companies outside Germany donated to their local Red Cross and Save the Children organizations, among others.

Immediately after the earthquake, the Board of Executive Directors of BASF SE decided to contribute €500,000 to the Central Community Chest of Japan as immediate aid to victims of the earthquake and tsunami in Japan. This donation has already been provided by the BASF Social Foundation.

BASF has 35 operations sites (including 27 production sites and eight R&D and technical centers) and 49 sales offices in Japan. Most BASF production sites in Japan are up and running normally now, and the Tokyo office is now operational.

Södra Cell has announce a price increase for Softwood Pulps in Europe. New price valid from June 1st is USD 1040, price valid until further notice.