Together with investment fund Eurofideme 2, Holmen (STO:HOLMA)(STO:HOLMB) has decided to build a wind farm in the municipality of Norrtälje in a jointly-owned company. The annual production is an estimated 165 GWh and the wind farm is planned to commence operation in autumn 2014.

Eurofideme 2, a renewable energy infrastructure fund of Mirova*, has acquired half the shares in the company that Holmen founded to run wind power production on its own land in the municipality of Norrtälje near Hallsta Paper Mill. The decision now marks the start of installation of 17 wind turbines with an installed power capacity of a total 51 MW and an expected annual production of 165 GWh. An environmental permit has already been obtained. According to the plan, the turbines will be taken into operation in autumn 2014.

“This project will exploit Holmen’s excellent opportunities to produce wind power on its own land,” says Holmen’s President and CEO Magnus Hall. “It is also an important element in our focus on renewable energy, set to increase our self-sufficiency in electricity.”

“It is a great opportunity for Eurofideme 2 to be co-investing in this project of national interest for wind in the Stockholm County with a high quality partner like Holmen” commented Raphael Lance, Director of Eurofideme 2.

The cost of constructing the wind farm is an estimated SEK 650 million and will be financed by a bank loan to the jointly-owned company plus capital from shareholders Holmen and Eurofideme 2. Holmen’s investment will largely be met by income from the sale of shares in the company, and the transaction will therefore not have any noticeable effect on Holmen’s cash flow. The transaction will affect Holmen Energi’s operating profit in the second quarter by approximately SEK 100 million.

* Eurofideme 2, a fund managed by Mirova Environment and Infrastructure and part of Mirova, the Responsible Investment division of Natixis Asset Management, is investing through its wholly-owned subsidiary Wotan SA.

This is information that Holmen AB is obliged to disclose under the Swedish Securities Market Act and the Swedish Financial Instruments Trading Act. Submitted for publication on 17 May at 15.30.

Ahlstrom, a global high performance fiber-based materials company, announces price increases on its specialty paper materials produced by the Label and Processing business. The price increases will be made to compensate for the continued high cost of raw materials and energy.

The price increases will affect all Label and Processing products worldwide and will be effective for all shipments made as of July 1, 2013. The increase will up to 7% and the amount and timing will depend on the markets served, the product and the agreements in place. Specific details will be discussed with each customer individually in the near future.

Products manufactured by Ahlstrom's Label and Processing business include graphic, packaging, processing, release and label papers. Their main end-use applications are release liners, self-adhesive labels, metalized wet glue labels, flexible packaging and repositionable notes. They are also used for the production of posters, abrasive materials and furniture foils. These specialty papers are manufactured in Brazil, France, Germany and Italy.

UW-Madison chemists have identified an approach to use oxygen gas to convert lignin, a byproduct of biofuel production, into a form that could allow it to replace fossil fuels as a source of chemical feedstocks.

Lignin is a complex organic material found in trees and other plants and is associated with cellulose, the valuable plant matter used to make paper or biofuels. The complexity of lignin makes it difficult to convert into valuable products, says chemistry professor  Shannon Stahl. In the April 9 online edition of the Journal of the American Chemical Society, Stahl, post-doctoral associate Alireza Rahimi and coworkers describe a catalytic method for selective manipulation of lignin.

"Lignin is essentially a waste product of making biofuel, and it is usually just burned as a fuel or used as a low-cost additive in asphalt or concrete," says Stahl. "If we could take this waste lignin and increase its value, we could improve the economics for biomass-derived fuels and provide a chemical feedstock that does not rely on fossil fuels."

Chemical feedstocks are the raw materials in industrial processes that generate end products such as plastic. Catalysts — chemicals that accelerate chemical reactions, without being consumed themselves — are used across the chemical industry.

Use of lignin as a source of chemical feedstocks is part of "an emerging subfield of chemistry being built around biomass-derived chemicals," Stahl says. "Rather than having tankers loaded with crude oil supplying the raw material for fuels, plastics and pharmaceuticals, we could start with renewable feedstocks."

The research was performed in collaboration with John Ralph, a professor of biochemistry associated with the Great Lakes Bioenergy Research Center on the UW campus. The researchers have applied for a patent on the process, and patent rights have been assigned to the Wisconsin Alumni Research Foundation.

Chemists have taken lignin apart previously with oxidation, says Stahl. "But oxidation can be like hitting something with a sledgehammer, where you get shrapnel everywhere. You get some of what you want, but much of it ends up as unusable bits and pieces." The focus of this work is to use selective catalysts, under very mild pressure and temperature. "It's like using a scalpel and tweezers, rather than a sledgehammer, and getting exactly what we want from the molecule, and nothing else.

"Theoretically, the only byproduct of the process is water," says Stahl, an expert in catalysis and green chemistry. "We are doing this very selectively, with a catalyst that is specific for a single structure on the lignin molecule."

It's not yet possible to know how the new intermediates would be used to make final products, Stahl admits. "The way the chemical industry is built, you take what nature gives you and find ways to convert it into interesting and important products that people want to buy. Ultimately, methods of this type can be used to limit our reliance on nonrenewable chemicals."

Metso will expand its global service network by opening a new service center to serve Suzano Papel e Celulose S.A.'s 1.5-million-tonne greenfield pulp mill in Maranhão, northeastern Brazil. The service center will supply roll grinding and other maintenance services, and will have a storage for selected spare parts and consumables. The center will be located in Imperatriz, close to the Maranhão mill, and will be operational in late 2013. The groundbreaking ceremony for the new service center was held in Imperatriz on April 25, 2013.

The groundbreaking ceremony of the new service center to be built in Imperatriz was held on April 25, 2013. Pictured are (left to right) Adriano Canela, Project Manager, Suzano Papel e Celulose,  Sebastião Madeira, Mayor of City of Imperatriz, Elio Krummenauer, Director, Services, South America, Metso, Volnei Remor Hilbert, Industrial Manager of Suzano Maranhão mill, Celso Tacla, Area President, South America, Pulp, Paper and Power, Metso, and Jukka Tiitinen, President, Services business line, Pulp, Paper and Power, Metso.

"This investment is in line with Metso's strategy for services growth. Local support to customers and long-term partnerships bring value both to our customers and Metso," says Jukka Tiitinen, President, Services business line, Pulp, Paper and Power, Metso.

In addition, Metso and Suzano Papel e Celulose S.A. have agreed that Metso will establish mill maintenance for the entire Maranhão mill. With the agreement Metso will take responsibility for the establishment of the mill's maintenance management system and support Suzano in establishing materials management operations. The value of the agreement will not be disclosed.

"We have decided to contract Metso to bring equipment manufacturer's process knowledge and maintenance expertise in establishing maintenance for the Maranhão mill. We expect to have efficient maintenance plans and organization in order to contribute to a reliable start-up and quick learning curve, from the first days of operation," says José Alexandre, Industrial Director, Suzano Papel e Celulose.

All main technology for the Maranhão pulp mill is being supplied by Metso. Metso's scope of supply covers wood handling, cooking plant and fiberline, pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln, and an integrated automation solution for all process areas. The mill is scheduled to start up in the second half of 2013.

Buckeye Technologies Inc. (NYSE:BKI) and Georgia-Pacific LLC has announced that they have reached a definitive agreement for Georgia-Pacific to acquire all of the outstanding shares of Buckeye Technologies' common stock for $37.50 per share in cash.  The transaction, subject to completion, is valued at approximately $1.5 billion, including debt.

Under the terms of the agreement, which has been unanimously approved by both companies' boards of directors, stockholders of Buckeye Technologies will receive $37.50 in cash per share, representing a premium of approximately 29 percent based on the average closing price of Buckeye Technologies' common stock over the last week.

Georgia-Pacific expects to launch a cash tender offer for all outstanding shares of Buckeye Technologies' common stock.  The tender offer is subject to the expiration or termination of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, other regulatory approvals and other customary closing conditions, and requires at least 75 percent of the outstanding shares of Buckeye Technologies' common stock to be tendered, consistent with the threshold for approval of a merger specified in Buckeye Technologies' certificate of incorporation. The transaction is not conditioned on financing.  In certain circumstances, the parties have agreed to complete the transaction through a merger, subject to receipt of stockholder approval.

Buckeye Technologies, based in Memphis, Tenn., is a leading manufacturer and marketer of specialty fibers and nonwoven materials made from wood and cotton.  The company's manufacturing assets include a specialty pulp mill at Perry, Fla.; cotton cellulose mills at Memphis, Tenn., and Lumberton, N.C.; and mills producing nonwovens at Mt. Holly, N.C., and Steinfurt, Germany.   Buckeye Technologies also has global sales offices in Beijing, the United Kingdom, France, Italy and Switzerland.  The company has approximately 1,200 employees worldwide.

"This transaction enables our stockholders to realize significant value, while also representing an important next step in the growth of Buckeye Technologies," said John Crowe, chairman and CEO.  "We are pleased that Georgia-Pacific recognizes the significant value of our company's special and unique assets, talented employees, and research and development capabilities.  Georgia-Pacific's acquisition of Buckeye will provide our company and our employees with exciting future growth opportunities. We will continue to execute on our business plan in partnership with a committed new owner that has a long history of delivering superior business performance through its dedication to operational excellence and innovation."

"Buckeye Technologies' competitive assets and capabilities strongly complement Georgia-Pacific's existing cellulose business and products.  The talented employees, innovation capabilities, advanced technologies, and specialty fibers and nonwovens businesses of Buckeye Technologies will provide a significant platform for continued growth and success," said Jim Hannan, CEO and president, Georgia-Pacific. 

Barclays is serving as exclusive financial advisor and Dechert LLP is serving as legal advisor to Buckeye Technologies. UBS and Blackstone are serving as financial advisors to Georgia-Pacific.

Headquartered in Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs nearly 35,000 people worldwide. For more information, visit www.gp.com.

Headquartered in Memphis, Tenn., Buckeye Technologies currently operates manufacturing facilities in the United States and Germany. Its products are sold worldwide to makers of consumer and industrial goods. www.bkitech.com

NOTICE TO INVESTORS ABOUT THE OFFER: This announcement is neither an offer to purchase nor a solicitation of an offer to sell securities. The tender offer for the outstanding shares of Buckeye Technologies' common stock described in this news releasehas not commenced.  At the time the tender offer is commenced, Georgia-Pacific will file or cause to be filed a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission (SEC) and Buckeye Technologies will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC related to the tender offer.  The Tender Offer Statement (including an Offer to Purchase, a related Letter of Transmittal and other tender offer documents) and the Solicitation/Recommendation Statement will contain important information that should be read carefully before any decision is made with respect to the tender offer.  Those materials will be made available to Buckeye Technologies' stockholders at no expense to them by the information agent for the tender offer, which will be announced. In addition, all of those materials (and all other offer documents filed with the SEC) will be available at no charge on the SEC's website at www.sec.gov.

NOTICE TO INVESTORS ABOUT THE MERGER: In connection with the potential subsequent merger, Buckeye Technologies would expect to file a proxy statement with the SEC, as well as other relevant materials in connection with the proposed transaction pursuant to the terms of an Agreement and Plan of Merger, dated April 23, 2013, by and among Buckeye Technologies Inc., Georgia-Pacific LLC and GP Cellulose Group LLC.  The materials to be filed by Buckeye Technologies will be made available to Buckeye Technologies' investors and stockholders at no expense to them.  In addition, all of those materials will be available at no charge on the SEC's website at www.sec.gov.  Investors and stockholders of Buckeye Technologies are urged to read the proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed merger because they contain important information about the merger and the parties to the merger.

Buckeye Technologies and its respective directors, executive officers and other members of its management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Buckeye Technologies' stockholders in connection with the proposed merger.  Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Buckeye Technologies' executive officers and directors in the solicitation by reading Buckeye Technologies' proxy statement for its 2012 annual meeting of stockholders, annual report on Form 10-K for the fiscal year ended June 30, 2012, and the proxy statement and other relevant materials which may be filed with the SEC in connection with the merger when and if they become available.  Information concerning the interests of Buckeye Technologies' participants in the solicitation, which may, in some cases, be different than those of Buckeye Technologies' stockholders generally, will be set forth in the proxy statement relating to the merger when it becomes available.  Additional information regarding Buckeye Technologies' directors and executive officers is also included in Buckeye Technologies' proxy statement for its 2012 annual meeting of stockholders and in Buckeye Technologies' annual report on Form 10-K for the fiscal year ended June 30, 2012.

In line with its strategy of continued specialisation, Kelheim Fibres GmbH, the world's leading producer of speciality viscose fibres, has reached an agreement with the bankrupt Finnish fibre company Avilon for the acquisition of knowhow and technology for the production of flame retardant viscose staple fibres, previously marketed under the Visil name.

In the late 1990s, operating as Saeteri, Avilon pioneered the production of such fibres designed to meet the requirements in place for furnishings in the American market. Matthew North, Commercial Director of Kelheim Fibres GmbH, comments: "The US market has become dependent on supply of FR viscose fibres from China. The agreement we have reached will allow us to finalise development of FR fibres based on the knowledge and experience of the historical market leader and offer a reliable, high-quality alternative to Asian sources".

Initial production trials at Kelheim with the support of Avilon technicians were completed successfully in April 2013 and the fibres are currently undergoing testing. It is expected that
samples of the new fibre will be available for customer tests by early May 2013.

Kelheim Fibres GmbH will be showing its full range of speciality viscose fibres at the IDEA International Engineered Fabrics Exhibition in Miami, USA from 23. to 25. April 2013.

Sonoco, one of the largest diversified global packaging companies, has announced that it has been awarded the primary packaging, retail display assembly and fulfillment of a segment of battery products for Energizer brands.

As part of a companywide plan to improve operations, Energizer joined with Sonoco to develop processes to streamline its Asheboro, N.C., battery packaging facility. To achieve its productivity goals, Energizer awarded a portion of the primary and display packaging to Sonoco for battery stock keeping units (SKUs), defined as types that run on more manual, hand-packed lines. As part of its total solution approach, Sonoco will also manage the fulfillment process for Energizer on these specific SKUs.

"After a great deal of research and analysis we found the most effective way to accomplish our packaging objectives was to work with Sonoco on a total solutions approach," said Chuck Marckwardt of Energizer. "We'll relocate the equipment to a Sonoco facility where they will manage a turnkey operation—handling the design, material procurement, packaging production and distribution of all multiple SKUs. We felt that Sonoco could best provide this kind of support."

Jeffrey Tomaszewski, division vice president and general manager of Sonoco Display and Packaging, agreed, "This turnkey service, provided at our Rural Hall, N.C., Display and Packaging facility, includes the design and sourcing of materials and packaging, the actual packaging of the batteries and the deployment of finished goods to designated distribution centers and/or direct to customers on behalf of Energizer."

The scope of service includes providing a total solutions approach for more than 30 million primary packs covering more than 150 SKUs, in packaging configurations, including blister cards, shrink wrapped trays and carton products. In addition, Sonoco Display and Packaging will design, source, manufacture, pack and ship thousands of retail displays annually. The first shipment was delivered in March, with complete ramp up of operations expected to occur through the second quarter of 2013.

SOURCE Sonoco

Forest companies say they can no longer get enough rail cars to move their products to market at a time when the U.S. housing market is going through a major recovery.

U.S. housing starts topped one million in March on a seasonally adjusted rate, more than double the low point hit during the recession, prompting a run on rail cars that Canadian mills use to get their wood products to market. It’s not just lumber that’s being affected. Oriented strand board, plywood and even pulp inventories are building at the mills, forcing companies to turn to trucks – which are also in short supply.

“If you had a pickup truck, we would use it,” Bob Hayes, transportation vice-president at Canfor Corp. said Tuesday.

Earlier this year, Canfor came within four hours of shutting down a pulp mill because of a rail car shortage. Pulp production is also up and because it is perishable, it cannot be stored outside, Hayes said. Canfor has erected a big-top style tent at one of its Prince George pulp mills to store inventory but so far hasn’t had to use it.

However, the rail car crunch is adding to costs, from additional trucking to causing ships to be delayed in port, he said.

“We were trucking this week from Prince George to Squamish terminal. We have never done that before. We had to find emergency trucks this weekend to go from Prince George to Squamish to keep the product flowing to the vessels and to keep the warehouses from overflowing,” Hayes said.

“I think transportation and the lack thereof, is going to be the biggest challenge for B.C. forest products companies to get their product to market in 2013 and beyond. Usually economics will drive solutions, but right now, that solution is to constrain the industry.”

Catherine Cobden, executive vice-president of the Forest Products Association of Canada, said the rail car shortage is systemic, with both CN and CP unable to deliver enough cars to meet growing demand.

“It’s very disappointing at a time when markets are rebounding and we are gearing up to support and supply, not just our traditional markets but our growing emerging markets,” she said.

“Our members are saying in some cases they are only getting half the cars they need to service their marketplace. Obviously this is a very difficult and untenable position for us.”

U.S. housing starts reached 1.036 million units in March on a seasonally adjusted rate, seven per cent higher than February and 46.7 per cent above March 2012, according to the U.S. lumber publication Random Lengths. March’s rate was the highest since 2008. The 2013 forecast had been for from 885,000 to 985,000 starts.

Doug Routledge, acting president of the B.C. Council of Forest Industries, said B.C. sawmills have responded by returning to two shifts. Employment in the forest industry has climbed marginally, from 51,490 direct jobs in 2009 to 56,340 in 2012, according to Statistics Canada.

“Most mills are back on a two-shift capacity which would be equivalent to normal production levels. A few mills, not many, have added in a graveyard shift. But it’s being buffered by transportation issues – not just railcars – where people are not able to get rid of finished inventory. That is buffering the ability to put on that third shift here and there,” Routledge said.