Offset Alpine and Scott Print took out the gold awards for the Australasia region at the Sappi Trading International Printer of the Year awards ceremony in Sydney last night. The companies will go on to compete against printers worldwide for the title of Sappi Trading International Printer of the Year and the coveted elephant trophy.

At the ceremony, held at the Museum of Contemporary Art, Scott Print took out the gold in the General Print category for its Gumala Presentation Folder while Offset Alpine won the top award in the Magazine Web category for an issue of Vogue Australia. Scott Print also won a silver award in the Packaging and Labels category.

In the Brochures category, Sydney Allen took out the silver while Gunn & Taylor grabbed the bronze. In the newly created Digital category, Valley Edge took out the bronze. Meanwhile, Blue Star picked up bronze in General Print while in Magazine Web, PMP and Hannanprint picked up the bronze and silver award respectively.

Wayne Rau, CEO of Sappi Trading says, “There is no doubt that since Sappi launched the global competition, the standards of Sappi Trading’s customers have kept pace, and in some cases, have even led the way. This year we hope to equal and better our success of 2008.”

This year the awards received 1,593 entries for the competition in eleven categories with the work being printed on Sappi paper the only condition of entry.

According to Sappi, judging criteria for the wards are rigorous with judges examining entries for technical proficiency, overall impact, degree of difficulty involved in the printing process and the quality of the finishing.

Also commenting Tim Schafer, managing director of Sappi Trading Australian says, “Our printers are some of the best in the world. We are proud of the honour they have brought to the region and have confidence that the gold winners will be recognised with an elephant trophy.”

PaperlinX Ltd is today repaying in full its historic lending facilities, made up of syndicated bank debt and US Private Placement notes. These facilities have been replaced by regional asset backed facilities established in Australia, New Zealand, USA, Canada and Europe.

This refinancing will reduce financing costs, while increasing flexibility and efficiency. As stated in our interim results presentation, interest costs are expected to fall to $20-25 million on an annualised basis, with interest costs for fiscal 2010 expected to be around $30-35 million.

Debt has also been significantly reduced over the past year, with gross debt of $526 million at 31 December 2009 compared with $1,518 million at 31 December 2008. Gross debt at June 2010 is expected to be down to around $400 million; a further 25% reduction in the current half year and around $1.1 billion lower than the 31 December 2008 level.

Commenting on the repayment, PaperlinX Chairman, Mr David Meiklejohn said “The Board is very pleased with the speed that PaperlinX has been able to undertake the refinancing programme, while at the same time making a substantial reduction to overall debt levels. The Company’s new lending profile provides a much better fit with our business as a focussed merchant. Repaying our historic lenders early has removed the expensive supervisory role played by them and their advisors that caused substantial, and sometimes unnecessary, distraction to the Board and management over the past 18 months.”

Commenting on the Group’s refinancing, PaperlinX Chief Executive Officer and Managing Director, Mr Tom Park, said, “This is a key step in rebuilding our financial position, which, along with our significant debt reduction and exit from manufacturing substantially reduces risk across the Group and provides us with a solid platform on which we can rebuild returns for our shareholders.”

“Repayment of our syndicated bank lenders and US Private Placement noteholders removes the need for their consent to payment of distributions and dividends to holders of PaperlinX Step-up Preference Securities and Ordinary Shares. Accordingly, the Board is giving consideration to the payment of some or all distributions including those which were not paid on the PaperlinX Step-up Preference Securities in 2009, taking account of all circumstances including the challenging market conditions we are continuing to see in our key European markets and alternate near term uses for cash”, added Mr Park.

“Trading conditions worldwide remain subdued and we continue to see weak earnings through the second half. Our focus remains on ensuring that we have an efficient and affordable cost base and level of working capital across all our businesses to generate adequate returns in the event of minimal demand improvement. Our success in achieving this also increases our leverage to the upside should we see improved paper demand or planned growth of our non-paper activities in the future.”

For further information, please contact:
Mr David Shirer
Executive General Manager Corporate Affairs
PaperlinX Limited
Ph: +61 3 8540 2302

In the first quarter of 2010 German press manufacturer Koenig & Bauer AG (KBA) booked a big increase in new business compared to the same period the previous year. The group order intake climbed 43.2% to €314.4m (2009: €219.5m), with the increase in web and special presses (43.1%) roughly the same as in sheetfed presses (43.5%). The group order backlog of €439.6m was over €100m higher than at the end of last year (€335m) and comprised €322.3m for web and special presses and €117.3m for sheetfed presses.

Following a weak intake of orders from November 2009 to February 2010 and reduced web-press shipments in the first three months, group sales of €209.8m were 4.7% down on the previous year’s €220.2m. While the sheetfed division posted an 11.7% increase in sales to €85.8m, sales generated by the web and special press division slid 13.5% to €124m.

Better operating result but lack of profit contributions

Weak quarterly sales impacted on profit contributions and earnings. Although the gross profit margin climbed from 13.6% twelve months earlier to 21.7% as a result of cost-cutting measures, KBA posted an operating loss for the quarter of €19.4m. This, however, was well below the prior-year figure of €32.7m. Following a small financial loss of €1.9m the group made a pre-tax loss (EBT) of €21.3m, compared to a loss of €35.2m the previous year. After taxes it disclosed a net loss of €20.2m (2009: a loss of €33.2m). Earnings per share also improved to –€1.23 (2009: –€2.03).

Bigger inventories for scheduled shipments reduce cash flow

The quarterly loss and bigger inventories reduced cash flows from operating activities to –€41.3m, well below the 2009 figure of €19.2m. The free cash flow came to –€43.4m, against €13.5m twelve months earlier. Funds shrank from €76.1m at the end of December to €38.8m at the end of March. While bank loans totalling €55.5m were higher than at the end of last year (€48.3m), net debt was a manageable €16.7m. This is well within the long-term credit lines available and should improve significantly along with the cash flow as sales pick up in the second half-year. Group equity represented 38% of the balance sheet total, well above the industry average.

At the end of March the KBA group employed a total of 6,559 people, 410 fewer than at the end of 2009 and 1,087 fewer than a year earlier. The group’s realignment to a global market which industry experts warn will be 25% smaller, even in the event of a strong economic recovery, will see the payroll reduced to around 6,000.

Record export level of 86.5%

With domestic sales down 22% at €28.4m, the export level rose from 83.5% to a record 86.5%. Sales to the rest of Europe slid from €81.1m to €58.4m, due to slack demand in southern and eastern states. This reduced the proportion of sales generated in this region to 27.9%, an historic low. Brisk demand in China boosted sales to Asia and the Pacific from €36.8m to €58.1m, causing a leap from 16.7% to 27.7% in the proportion of group sales generated in this region. North America, a relatively weak market, contributed 15% of group sales, Africa and Latin America 15.9%.

Forecast for 2010

Last year KBA was the only leading press manufacturer to post a profit, and notwithstanding its weak start to the year management is confident that, thanks to the realignment process implemented over the past twelve months, the group is on track to meet its targets.
President and CEO Helge Hansen says: “By the end of the year we anticipate higher group sales and a better pre-tax result than in 2009. In view of the strong increase in our order backlog in the first quarter, and the volume of orders expected in the second quarter, we have a real chance of achieving these objectives. However, at this early stage, and in view of current economic instability, we see little sense in issuing a sales and earnings forecast for the year. We shall keep you informed of progress to date in our regular financial reports.”

The South Korean Moorim Paper Group has commissioned the Siemens Industry Solutions Division to supply complete drive technology for the new product line PM1. The paper machine for coated and uncoated wood-free paper will be installed in the DongHae pulp mill in Ulsan, South Korea. The mill is scheduled to produce some 450,000 tons of coated fine papers per year starting in the spring of 2011. With the new line, Moorim Paper will become South Korea’s largest manufacturer of fine paper.

In recent years the DongHae paper mill in South Korea has produced pulp from ground wood, as well as paper and paperboard. The production capacity will be further expanded with the new paper machine PM1. Siemens is supplying the complete drive technology for PM1 including the multi-motor drives for the paper machine, offline coater, calendar stack, winder and the rewinder, powered by Sinamics S120CM converters. The scope of supply also includes the automation system with the Sipaper Drive solutions based on Sinamics PCS7. Siemens will also be responsible for the engineering, commissioning and on-site training of the operating personnel.

The systems and components to be used are an integral part of the Sipaper solution platform especially developed for the pulp and paper industry. The paper machine itself is being supplied by Voith Paper and will have a wire width of 9,300 millimeters and a design speed of 1,500 meters per minute. It is designed to produce fine paper with basis weights ranging from 75 to 150 grams per square meter. Together with the existing production lines in Jinju (PM1 to PM3) and Daegu (PM1 and PM2), the Moorim Paper Group will increase its total production to over one million tons per year once PM1 has been put into operation. Further information about solutions for the pulp and paper industry is available at http://www.siemens.com/paper

The Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation, building and lighting technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens increases the productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. The Sector consists of six divisions: Building Technologies, Drive Technologies, Industry Automation, Industry Solutions, Mobility und Osram. With around 207,000 employees worldwide (September 30), Siemens Industry achieved in fiscal year 2009 total sales of approximately €35 billion. http://www.siemens.com/industry

The Siemens Industry Solutions Division (Erlangen, Germany) is one of the world's leading solution and service providers for industrial and infrastructure facilities comprising the business activities of Siemens VAI Metals Technologies, Water Technologies and Industrial Technologies. Activities include engineering and installation, operation and service for the entire life cycle. A wide-ranging portfolio of environmental solutions helps industrial companies to use energy, water and equipment efficiently, reduce emissions and comply with environmental guidelines. With around 31,000 employees worldwide (September 30), Siemens Industry Solutions posted sales of €6.8 billion in fiscal year 2009. Further information and downloads at: http://www.siemens.com/industry-solutions

International Paper (NYSE: IP) Senior Vice President and Chief Financial Officer Tim Nicholls will speak at the Goldman Sachs Basic Materials Conference in New York City on Wednesday, Jun. 2. The presentation is scheduled for 10:00 a.m. EDT, and will be followed by a question and answer session.

All interested parties are invited to listen to the webcast via the company's Internet site at www.internationalpaper.com by clicking on the Investors tab and going to the Webcasts and Presentations page. A replay of the webcast will also be on the Web site beginning approximately two hours after the call.

About International Paper

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers, and complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 56,000 people in more than 20 countries and serves customers worldwide. 2009 net sales were approximately $23 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

SOURCE International Paper

American Forest & Paper Association (AF&PA) President and CEO Donna Harman made the following statement on the Environmental Protection Agency's (EPA) Greenhouse Gas Tailoring Rule, issued this week:

“The EPA’s action hurts rural communities by endangering family wage American jobs and reversing economic development in communities that need it the most.

“We are deeply disappointed the EPA failed to reaffirm its own precedent and the internationally-recognized carbon neutrality of biomass.  This rule treats biomass fuels identically to fossil fuels, in effect undermining the Administration’s support for renewable energy policy in this country.  The forest products industry is proud of its voluntary reductions in greenhouse gases and our increasing reliance on domestically grown, renewable and carbon neutral biomass to power our mills – all of which are important for a sustainable future.

“Biomass is the renewable fuel that forest products facilities use for two-thirds of their energy needs as an alternative to fossil fuels.  Emissions from the combustion of biomass historically have not been included in greenhouse gas reduction policies because biomass combustion does not increase carbon in the atmosphere when the overall biomass stock is renewed.  When biomass is burned for energy, it releases carbon dioxide that was captured from the atmosphere back into the atmosphere. As trees are replanted, this carbon is reabsorbed, repeating the cycle. EPA’s own data show that the biomass carbon cycle in the U.S. removes more carbon dioxide from the atmosphere than it emits.  This rule undermines this important precedent and jeopardizes public and private investment in biomass-based renewable energy, which is fundamental to existing and future green jobs in rural communities hit hard by the economic downturn.  

“This rule is another example of why the Clean Air Act is the wrong tool to regulate greenhouse gases. New investment in manufacturing and clean energy technologies runs counter to the arcane and rigid set of rules and regulations that are being triggered by the use of the Clean Air Act to regulate greenhouse gases.  These rules have developed around localized pollutants and are not well suited to address the global realities of greenhouse gases.

“Congress, not the EPA, is in the best position to make the trade-offs that will be needed to ensure future global competitiveness for the forests products industry and other energy intensive, traded exposed industries that employ millions of hard working Americans and contribute to our nation’s economic well being.”

For More Information:

Carlton Carroll
001 (202) 463-2587
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M-real is to increase the prices for its one side coated label and flexible packaging papers produced at its Simpele mill in Finland and M-real Zanders Gohrsmühle mill in Germany. The price increase will be up to 6 per cent and is to come into effect for all deliveries from the 1 July 2010.

The increase is due to the escalation of costs in paper manufacturing and distribution.

For any further questions:

Heikki Husso
Senior Vice President, M-real Speciality Papers business area
Tel: +49 2202 15 2000
Fax: +49 2202 15 2874
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

West Coast Paper Mills Ltd. has completed its expansion programme in all respects at its existing plant at Dandeli in Karnataka with a capital outlay of about Rs.1375 crores.

With this, paper production capacity of the Company has been increased from 1,80,000 tonnes per annum to 3,20,000 tonnes per annum along with thermal power generation capacity from 40.3 MW to 70.3 MW from today.

The Company is operating new Pulp Mill (Fibre Line) along with connected equipments in Chemical Recovery section for production of Elemental Chlorine Free (ECF) Pulp continuously from 14th February 2010. Consequently, the old Pulp Mill (Fibre Line) is shut from that day.

For more Info contact
The West Coast Paper Mills Limited
"Chandrakiran" 4th floor
10/A Kasturba Road
Bangalore 560 001
Karnataka, INDIA

Phone : +91 80 2223 1828 / 1837
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Fraser Papers Inc. (“Fraser Papers” or the “Company”) announced today the appointment of Glen McMillan as Chief Restructuring Officer of the Company. Mr. McMillan will report to the Board of Directors and will oversee the completion of the restructuring of Fraser Papers and its subsidiaries under the Companies’ Creditors Arrangement Act (“CCAA”) and Chapter 15 of the U.S. Bankruptcy Code. Mr. Peter Gordon, the Company’s Chief Executive Officer, resigned effective May 14, 2010, but will remain on the Board of Directors of Fraser Papers to assist in the remaining steps of the restructuring process.

On June 18, 2009, citing continued operating losses, weak markets for pulp and lumber, impending debt repayments and significant pension funding obligations, the Company filed for creditor protection under the CCAA in Canada and Chapter 15 in the U.S.

On April 28, 2010, the Company sold its specialty papers business to Twin Rivers Paper Company, a newly incorporated company owned by its creditors. On April 30, Fraser Papers sold its hardwood pulp mill in Thurso, Québec, to Fortress Specialty Cellulose Inc. The Company is currently in the process of selling its remaining assets, including the Gorham, New Hampshire paper mill and its two lumbermills in northern Maine. Once the remaining assets are sold, the Company intends to file a Plan of Arrangement for consideration by its creditors.

* * * * * * * *

For more information, please visit www.fraserpapers.com or contact:

Glen McMillan
Chief Restructuring Officer
(416) 359-8635
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