Displaying items by tag: Cham Paper Group Holding AG

Sappi Limited, a leading global producer of dissolving wood pulp, speciality and packaging papers, graphic (printing and writing) paper and biomaterials, today announced that it had signed an agreement to acquire the speciality paper business of Cham Paper Group Holding AG (CPG) for CHF146.5 million (approximately $149 million).

The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland as well as all brands and know-how. It will be funded through internal cash resources.  The transaction is conditional on the approval from certain competition authorities. We expect the acquisition to be completed during the first calendar quarter of 2018.

The main benefits of the acquisition include:

• Supports Sappi’s diversification strategy and 2020vision to grow in higher margin growth  segments
• Strengthens Sappi Europe’s speciality and packaging papers footprint and skills; adds 160,000 tons of speciality paper to our capacity
• Increases Sappi’s relevance in speciality papers, opening up new customers and markets to Sappi’s existing products and generating economies of scale and synergies
• Gaining greater share-of-wallet with valued brand owners; accelerating innovation and new product development
• Improved near-term profitability and serve as platform for organic growth and further acquisitions. Will add €183 million of sales and approximately €20 million of EBITDA before taking into account synergies
• Builds on the investments currently underway to increase speciality paper capacity at our Somerset, Maastricht and Alfeld Mills
• Unlocks the growth potential of the CPG speciality paper business

Commenting on the transaction Steve Binnie, Chief Executive Officer of Sappi Limited, said:

“This acquisition further strengthens Sappi’s speciality paper business both in Europe and globally by combining Cham’s strong brands and assets with Sappi’s global reach. This transaction will increase profitability and unlock the significant growth and innovation potential inherent within the speciality paper market. I am very pleased that we have taken another signification step towards realizing our Vision2020 goal.”

Berry Wiersum, CEO Sappi Europe stated:

“We are very excited about the possibilities this transaction opens up for Sappi as well as for Cham’s highly respected business. The products and brands which have been acquired are an excellent complement to our market offering, enabling us to offer our existing, as well as new customers in Europe, North America and globally, a broader range of products coupled with excellent customer service.”

The speciality paper business of CPG will continue to operate separately and independently from Sappi until clearances from the authorities are obtained.

About Sappi Limited

A global leader in dissolving wood pulp and paper-based solutions, Sappi Limited (listed and in the Top 40 on the JSE - SAP), is headquartered in Johannesburg, South Africa; has over 12,000 employees; manufacturing facilities on three continents, in seven countries (eight operations in Europe, three operations in America and five operations in South Africa) and customers in over 150 countries worldwide

Sappi works closely with customers to provide relevant and sustainable dissolving wood pulp, paper (speciality, packaging and graphic), paper pulp, and biomaterial products and related services and innovations. Our market-leading range of paper products includes: flexible packaging, label, release liner, containerboard and fluting, coated fine papers, casting release papers and in our Southern African region newsprint, uncoated graphic and business papers. These products serve the fashion, FMCG and industrial sectors. Our dissolving wood pulp products are used worldwide by converters to produce viscose fibre, pharmaceutical products as well as a wide range of household and consumer products.

We continue to grow into a profitable and cash-generative diversified business with an exciting future in woodfibre, a renewable resource.

About Cham Paper Group Holding AG (CPG): CPGN (SWX) The Cham Paper Group Holding AG is a leading manufacturer of coated speciality papers. The company was founded in 1657. Following the divestment of the paper business, the company will focus on its real estate business and will operate under the name «Cham Group».

Carmignano Mill (Carmignano di Brenta, Padua, Italy): This is a non-integrated paper mill with two paper machines. The plant can produce 100 000 tons of paper and employs 210 people. Paper grades include C1S FlexPack, C1S Label Papers, Wet Glue and Self-Adhesive applications, base paper for metallisation

Condino Mill (Borgo Chiese, Trento, Italy): This is a non-integrated paper mill, with one paper machine. The mill employs 120 employees and can produce 60 000 tons of paper per year. Paper grades include glassine (silicone base paper) and super calendared, uncoated flexible packaging papers.

Digital Imaging Business (Cham, Canton Zug, Switzerland): A finishing plant is located in Cham Switzerland, in a 4000sqm industrial warehouse where the base paper from Condino or Carmignano mills are converted to produce 12 000 tons of digital imaging paper. The business employs 50 people.

Cham Paper Group sells its speciality paper business to the South African Sappi Limited, one of the world's leading pulp and paper companies. The integration of the speciality paper business into the Sappi Group will open up new perspectives for the two high-performance plants of Cham Paper Group in Carmignano and Condino as well as for their employees and for the Digital Imaging team in Cham. The transaction is subject to the approval of anti-trust authorities. Following the divestment of the paper business, Cham Paper Group will focus on its real estate business. The group is pushing ahead the transformation of the «Papieri» area in Cham into a new, attractive urban quarter.

The Sappi Group, which is domiciled in Johannesburg and listed on the Johannesburg stock exchange, develops, produces and sells dissolving wood pulp, speciality, packaging and graphic paper, as well as biomaterials. It employs around 12,000 people with production facilities across 7 countries on 3 continents and customers in over 150 countries. It has focused its development in various areas of the speciality paper market. The integration of Cham Paper Group's speciality paper business into a strong, globally positioned Group will open up new opportunities for this business as regards procurement, market development, product innovation, expansion opportunities and staff development.

In recent months, the Cham Paper Group's Board of Directors has examined all strategic options for the company's future success following the relocation of the speciality paper production from Switzerland to Italy and the comprehensive modernisation of the plants in Carmignano and Condino. Although Cham Paper Group's profitable speciality paper business is well positioned today, it is still too small to develop its market position on its own in the long term. Accordingly, selling it to the Sappi Group is an optimal solution.

The sale of the speciality paper business requires a change in the corporate purpose of Cham Paper Group Holding AG. The shareholders may vote on the proposal at an Extraordinary General Meeting. The alteration of the company's purpose requires the approval of at least two-thirds of the votes represented at the General Meeting. In addition, the transaction is subject to the approval of anti-trust authorities. The transaction is expected to close in the first quarter of 2018.

Following the divestment of the speciality paper business, the company will focus on its real estate business and will operate under the name «Cham Group». The sale at an enterprise value of CHF 146.5 million will result (after deduction of bank debt, liabilities and cost) in an inflow of approximately CHF 125 million in cash to the Group. These financial resources increase the flexibility for the development of the «Papieri» project. For example, the resulting higher equity ratio means that a higher proportion of investment properties could be considered at the expense of the condominium ownership ratio. Real estate investments beyond the «Papieri» site are also possible.

The Board of Directors intends to make the Cham Group share an attractive dividend-bearing security for the long-term. A base dividend of at least CHF 6.00 per share will be proposed to the General Meeting of Shareholders as of the financial year 2017. The distribution is tax-free from capital reserves. As soon as the «Papieri» site yields regular income, which is likely to be the case from 2022 onwards, the dividend will be based on the actual profit generated.

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Surface finishing lends papers properties that generate value added for its customers. The company, which was founded in 1657, has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales network.
The decision to focus on development and sales and discontinue paper manufacturing in Switzerland has made way for a new project on the factory site in the centre of Cham. The Cham Paper Group is developing an eleven-hectare quarter there called the Papieri site.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.

In January 2018, the Cham Paper Group will simultaneously start two architectural study assignment procedures for the first two partial stages of the development of the Papieri site (papieri-cham.ch). With these two stages, around 80 owner-occupied and 130 rented apartments as well as 30 budget-priced residential units will be realized over a staggered period of time, which - together with approx. 9,000 m2 of service and commercial space - are expected to be ready for occupancy from 2021 onwards.

For each of the two partial stages, five invited architectural offices will draw up concrete project proposals. After the summer holidays 2018, the best submissions will be selected so that appropriate building applications can then be prepared and submitted to the authorities.

The preconditions for this next step in area development were created by the approvals of the zoning plan and the rezoning of the Papieri site, which were granted by the government council of the Canton of Zug in October 2017.

At the beginning of October 2017, Cham Paper Group Schweiz AG additionally transferred the entire real estate business with asset transfer agreement to its subsidiary Cham Immobilien AG, Cham.

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Surface finishing lends papers properties that generate value added for its customers.

The company, which was founded in 1657, has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales network.

The decision to focus on development and sales and discontinue paper manufacturing in Switzerland has made way for a new project on the factory site in the centre of Cham.

The Cham Paper Group is developing an eleven-hectare quarter there called the Papieri site.

The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.

Cham Paper Group enjoyed a largely satisfying annual result for 2016. The group has returned to growth after a long and challenging transformation process in the paper division. There were also improvements in terms of profitability whereas the lower end of the target margin range was achieved. The paper division benefited in a slightly weaker market environment from the efficiency improvements in production and from a return to normal raw material prices. In the real estate division the clear approval on the development of the Papieri site by the public voters was the crowning event after a four year planning phase, paving the way for the realization of the new quarter in Cham.

Cham Paper Group generated 2016 net revenue of approx. CHF 198 million (previous year: CHF 194.3 million) on the basis of unaudited figures and achieved markedly better operating results of about CHF 10 million (previous year: CHF 2.4 million). Net income is expected to reach about CHF 8 million (previous year: CHF 0.5 million).

Cham Paper Group will publish the full year results and the annual report on 27. March 2017.

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Surface finishing lends papers properties that generate value added for its customers. The company, which was founded in 1657, has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales network.
The decision to focus on development and sales and discontinue paper manufacturing in Switzerland has made way for a new project on the factory site in the centre of Cham. The Cham Paper Group is developing an eleven-hectare quarter there called the Papieri site.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.

On occasion of the public voting on September 25, 2016, the Cham voters approved both proposals for the development of the Papieri site (partial change of building legislation and zoning plan with 63% yes-votes as well as development plan with 57% yes-votes).

With this, the general public has created the prerequisite to create a new, mixed residential and working district on the site of the former paper factory. For the development plan and rezoning to take legal effect, the approval of the Zug Cantonal council is still required.

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Surface finishing lends papers properties that generate value added for its customers. The company, which was founded in 1657, has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales network.
The decision to focus on development and sales and discontinue paper manufacturing in Switzerland has made way for a new project on the factory site in the centre of Cham. The Cham Paper Group is developing an eleven-hectare quarter there called the Papieri site.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.

The Cham Paper Group has closed another transformative year with a small profit. The financial year was challenging for the paper division on several levels. Extensive investment in upgrading machinery to increase capacity and efficiency in Carmignano and the relocation of coating operations from Cham to Italy resulted in greater restrictions on capacity and higher start-up costs than originally planned. The appreciation in the US dollar against the Euro also led to sharply increased cellulose costs, which could not be offset directly via higher prices. In the newly created real estate division, preparations for the transformation of the industrial site into a new quarter proceeded according to plan.

• Rising revenues in local currency thanks to good market conditions and successful products
• Higher costs of pulp due to currencies reduce operating profit
• Challenging transfer of Digital Imaging production
• Investmens implemented to increase productivity and capacity
• Planning dossier submitted for redesign of the Papieri site
• Payment of a dividend of CHF 3.00 per share

In 2015, the Group achieved revenue of CHF 194.3 million. This is 10.4% less than in 2014 (CHF 216.8 million), however, revenue grew by 2.4% in local currency. The operating profit came to a modest CHF 2.4 million (previous year: CHF 5.9 million), while the net result was just positive, at CHF 0.5 million (CHF 1.8 million). The profit has therefore improved slightly in the traditionally weaker second half thanks to the reduction in costs.

The paper division presented a contrasting picture
The trend in the paper division's revenue and profits did not match the opportunities presented by the market. The extensive investment in paper machine 4 in Carmignano to increase capacity and efficiency was completed on schedule, however, the start-up processes following the modifications turned out to be more difficult than expected and there was a delay in exploiting the increased production potential. The gains in efficiency are not yet apparent in the results because of the 10% increase (caused by movements in exchange rates) in the cost of cellulose, which accounts for around 50% of manufacturing costs. The challenges involved in the relocation of coating operations for the manufacture of complex digital imaging products to Italy were underestimated; it was not possible to keep to the budget or the timetable and this depressed profitability. However, demand for the Cham Paper Group's speciality papers was satisfactory to good in all segments. The three divisions Consumer Goods, Industrial Release and Digital Imaging are well positioned strategically and their products are appreciated in the market. Tonnage sold increased by 2.3% despite the restrictions mentioned previously, and the paper division's net revenue reached CHF 193.4 million. The gross profit decreased from CHF 28 million to CHF 18.4 million as a consequence, in particular, of the increase of approximately CHF 9 million in the cost of cellulose. Thanks to the reduction in the cost base, a marginally positive operating profit (EBIT) before restructuring of CHF 0.7 million was achieved (previous year: CHF 8.6 million); the figure after restructuring was CHF 2.5 million (CHF 5.6 million).

The real estate division developed as planned
Development of the Papieri site again made major progress in the financial year 2015: the municipality of Cham submitted the planning dossier, which had been produced jointly with the Cham Paper Group, to the responsible cantonal offices for preliminary review. The aim is to carry out the ballot on the development plan and the environmental impact assessment in autumn 2016. A possible scheduling concept was devised parallel to the development planning process. The space that has been released on the factory site is already being used on a short-term basis in a variety of ways by over 50 different tenants. The first contracts for new long-term tenants in the commercial area have also been signed. The relevant construction work has started and the real estate division generated revenue with third parties of CHF 0.8 million (previous year: CHF 0.7 million) and an operating profit (EBIT) of CHF 0.2 million (CHF 0.2 million). The development expenses for the Papieri project were capitalised.

Strong balance sheet and constant dividend
Despite the dividend payment, the abolition of the minimum EUR/CHF exchange rate and the associated reduction in the value of Italian assets in CHF, the Cham Paper Group still has a strong balance sheet. At the end of the reporting year, the equity ratio amounted to 50.6% (previous year: 52.8%). The Group is almost free from debt and has cash reserves of CHF 41.4 million. The site in Cham is still valued at acquisition cost. The Board of Directors will propose to the General Meeting of Shareholders that a dividend of CHF 3.00 (previous year: CHF 3.00) is paid per share, which will be exempt from capital gains tax for Swiss private investors.

New Delegate of the Board of Directors
Preparations are being made for a transfer of responsibilities in the Board of Directors of the Cham Paper Group: Susanne Oste, the previous Head of International Sales at Ziegler Papier, will be proposed for election to the Board of Directors at the General Meeting of Shareholders on 4 May 2016. She is to replace Urs Ziegler, who will continue to make himself available as a member of the Board of Directors, as Delegate of the Board of Directors. Susanne Oste has been being introduced to her responsibilities by Urs Ziegler since January 2016. Peter Schmid will not stand for re-election. The Board would like to thank Mr Schmid for his tremendous commitment since 2011.

A cautiously positive outlook
The Board of Directors and the Executive Board are of the opinion that the Group is well positioned for the future. In all its three areas of operations, the paper division covers attractive and expanding markets. The modernised mills produce more efficiently than ever before and have built up additional capacity. As a result, the lengthy, demanding transformation process is drawing to a close. Assuming that the cost of raw materials stabilises, we are expecting a clear improvement in the operating profit in the ballpark of the EBIT achieved in 2014). The Real Estate Division will develop into a strong second pillar for the Group over the next decade.

Annual Report 2015
The complete annual report (in German) is available on our website in the Investor Relations section (see «Financial Reports») or directly under the following link: http://ir.champaper.ch/cgi-bin/show.ssp?id=310&companyName=champaper&language=German

Key Figures
in CHF million, unless otherwise specified    2015    2014
Sales in tonnes                146,274    142,981
Net revenue                194,258    216,762
EBITDA                    9,187    18,800
As a % of net revenue            4.7%    8.7%
EBIT before restructuring            627    8,930
As a % of net revenue            0.3%    4.1%
Restructuring income / (restructuring expenses)    1,795    -3,059
EBIT after restructuring            2,422    5,871
Profit                    480    1,841
Earnings per share (in CHF)            0.65    2.48
Free Cash Flow                -5,695    -5
Shareholders' equity            102,088    107,900
As a % of total assets            50.6%    52.8%
(Net debt) / Net cash            -1,432    3,095
Investments in tangible and intangible assets    12,073    13,384
Number of employees (FTE)            389    417

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Surface finishing lends papers properties that generate value added for its customers. The company, which was founded in 1657, has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales network.
The decision to focus on development and sales and discontinue paper manufacturing in Switzerland has made way for a new project on the factory site in the centre of Cham. The Cham Paper Group is developing an eleven-hectare quarter there called the Papieri site.
The Cham Paper Group (ticker symbol: CPGN) is listed on the SIX Swiss Exchange.

As expected, the Cham Paper Group's paper division had a challenging first half in 2015. Investments in machinery upgrades to increase capacity in Carmignano at the start of the year and the relocation of the coating machine from Cham to Italy in the second quarter increased costs and led temporarily to restricted capacity and production inefficiencies. The strengthening of the US dollar against the euro also resulted in significantly higher pulp prices, which could not be passed on directly to customers in the form of price rises. In the new real estate division, preparations for converting the industrial site into a new urban district proceeded according to schedule.

In the first half of the year, the Group achieved a turnover of CHF 100.8 million. Although this is 13.8% lower than in the previous year, in local currencies turnover is actually on a par with 2014. Operating profit before restructuring costs came to a modest CHF 1.5 million (CHF 5.5 million in the same period last year), with the net result virtually even at CHF 0.1 million (CHF 3.6 million).

Positive trend in demand in all segments of the paper division
- Efficiency temporarily curbed by investments in machinery upgrades
- High pulp costs caused by currency effects impact on profitability
- Strong balance sheet - equity ratio 51.6%
- Real estate project remains on track

Paper division
Turnover and profits did not develop in line with the opportunities presented by the market over the first half of the year. The comprehensive upgrade of PM4 in Carmignano to increase capacity and efficiency was completed on schedule at the start of the year. The start-up process proved more difficult than anticipated, however, and the full production potential could not initially be utilised. It was not until February that the machinery was operating at full capacity. The challenging task of relocating the complex digital imaging products to Italy is also going well, albeit with some departures from the budget and timetable. Production costs have increased across the board under the impact of the pulp price, which is traded in US dollars.

The paper division generated net turnover of CHF 100.4 million. Gross profit decreased to a disproportionately high extent from CHF 14.9 million to CHF 10.8 million, while operating profit came to CHF 1.4 million (previous year CHF 5.0 million).

Market demand (however) is satisfactory to good in all segments. The strategic positioning of all three segments in the paper division is promising:

In volume terms, sales in the consumer goods segment were on a par with the previous year in the first six months. The food/non-food and wet glue labels segments enjoyed a positive trend, each growing by almost 12%. In the tobacco segment, the fall in volumes in Europe due to lower demand and more stringent legislation was not entirely offset by growing demand from Asia.

Turnover in products for industrial applications (IR) was up year on year. The Cham Paper Group has further expanded its IR activities in the USA, South America and Asia. Persistently high demand permitted the introduction of price increases, which will boost the result in the second half of the year.

The market for digital sublimation printing continues to grow at an above-average rate, prompting many new suppliers, particularly from Asia, to crowd onto the market offering cheap products. Since production costs are now lower, however, following the transfer of operations to Italy, the Cham Paper Group will be able to hold its ground against the competition.

The transfer of coating technology has been delayed, leading to supply and capacity bottlenecks. The sales team was unable to fulfil all customer orders in the second quarter. Additional investments have since been made in Italy to increase capacity and thus meet the rising demand for DI products.

Real estate division
Another event allowing the general public to have their say was held in late January. This was an opportunity for residents to evaluate the master plan and outline project devised for developing the Papieri-Areal site. Based on their feedback, the outline project and the plan for the open spaces were fleshed out and revised by the team responsible.

In early April, the community of Cham and Cham Paper Group Schweiz AG as the landowner initiated the final phase of the joint planning process by drafting the zoning plan for the Papieri-Areal. The contents of this plan, comprising planning documents with binding regulations and a supplementary planning report, are currently being finalised together with the association and in consultation with specialist cantonal departments. An environmental impact assessment is also currently being prepared for the planned development of the Papieri-Areal and the municipal outline plan and the building and zoning regulations are being revised.

Once these have been circulated to the municipal committees and endorsed by the town council of Cham, the zoning plan and environmental impact report will be presented to the cantonal authorities for preliminary examination on schedule in early October. The aim is still to hold the vote on the zoning plan and the environmental impact report in summer 2016. A potential phasing concept has also been devised in parallel to the zoning plan process.

The space that has been freed up on the factory site has already found numerous temporary uses by more than 50 different tenants, with new enquiries still being received. The real estate division generated turnover of CHF 0.7 million in the first half of 2015 and a more or less even operating profit (EBIT). The development costs for the Papieri project have been capitalised.

Balance sheet remains strong
Despite a dividend payment, the further weakening of the euro and the associated lower valuation of the Italian assets in Swiss francs, the Cham Paper Group still has a strong balance sheet. The equity ratio stood at 51.6% at the end of the first half of the year. The Group has no net debt. The site in Cham is still valued at acquisition cost.

Positive outlook
The Board of Directors and the Executive Management Board believe the Group is well positioned. The paper division serves attractive growth markets across all three of its segments - consumer goods, industrial release and digital imaging. Cost control continues to present a challenge. The exchange rate between the US dollar and the euro and the associated higher pulp prices will continue to impact negatively on the paper division's operating result in the second half of the year.

Key figures at a glance

About Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Its papers have surface coatings that give them functionalities that offer added value for customers. The company was founded in 1657 and has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), as well as operating a global distribution network.
The decision to focus on development and distribution activities and to withdraw from paper production in Switzerland has created new space at the factory site in the centre of Cham. The Cham Paper Group is developing an 11-hectare area there, the Papieri-Areal.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.

2014 was an important year for the future of the Cham Paper Group. The favourable economic environment and the strong market position of Cham Paper speciality papers led to a significant improvement in results, while considerable progress was made with the development of the Papieri real estate project.

• Pleasing revenue development thanks to good market conditions and successful products
• Significant improvements in results, with EBIT rising from CHF 1.8 million to CHF 8.9 million
• Investment to increase productivity and capacity at the Italian mills
• Town planning study commissioned for the Papieri-Areal successfully concluded, master plan drawn up with framework for the project
• Payment of a dividend of CHF 3.00 per share

Growth of strategically important products and clear improvement in results
The Cham Paper Group's revenue with speciality papers fell by 6.6% to CHF 216 million in 2014. The Group achieved growth in strategically important product groups. Sales of speciality papers from the two Italian mills rose by 2.4%, resulting in a 1.4% increase in revenue to CHF 187 million. In Switzerland, revenue from the sale of paper coated in Cham, particularly for the Digital Imaging product family, grew by 22% to CHF 29 million. Thanks to improved cost structures, the Group achieved an operating profit before restructuring costs of CHF 8.9 million and an EBIT margin of 4.1%. This represents a significant increase on the previous year (CHF 1.8 million, EBIT margin 0.8%), in which the challenging transformation phase was still ongoing.

Technology transfer from Cham to Italy
To further improve the competitiveness of our speciality papers, we decided to transfer additional technology from Switzerland to Italy in mid-2014. The associated investment of around CHF 20 million in the Italian mills (of which CHF 13 million in 2014) will lead to a further improvement in productivity and capacity in 2015. The relocation of the coating technology operations currently run in Cham for producing the digital imaging and barrier papers will take place in the first quarter of 2015. The associated restructuring costs for the redundancy scheme and write-downs on facilities in Cham reduced the operating profit for 2014 by CHF 3.1 million. The total net profit for the 2014 financial year came to CHF 1.8 million (previous year: CHF 0.4 million).

Balance sheet streamlined and equity ratio increased to 53%
The paper division reduced the level of outstanding customer debts and optimised its warehouses for raw materials and finished products, which led to a reduction of CHF 13 million in tied-up capital. Some of the funds freed up as a result of this were used to pay suppliers earlier, which allowed us to benefit from more favourable purchasing conditions. At the same time, liabilities to banks of CHF 14 million were repaid. The Group had cash reserves of CHF 38 million at the end of the year and is thus free from debt in net terms. The balance sheet total was reduced by around CHF 30 million, while the equity ratio is now a comfortable 52.8% (previous year: 46.3%).

Town planning study concluded and master plan drawn up
The future use of the Papieri-Areal in Cham is increasingly taking shape. An assessment panel consisting of experts, representatives of the community of Cham, the Cham Paper Group and various cantonal offices had unanimously recommended following up a project proposal from the study commissioning process at the end of June 2014. The authors of the project were then able to develop their draft into a master plan with a framework for the project. We are now working flat out on the legal groundwork together with the cantonal authorities involved. The electors of the municipality of Cham will vote on rezoning in 2016.

Interim use intensified and head of the new real estate division appointed
The buildings and the Papieri-Areal have already come to life, with a total of 73 interim tenants using the space that has become free until the renovation and new construction work begins. The revenue obtained from this will cover a large proportion of the project costs. Andreas Friederich has joined the Cham Paper Group and has been building up an internal real estate team since March 2015. On 1 July 2015 he will become the head of the new real estate division. This division will report directly to the Board of Directors' real estate committee, which consists of Philipp Buhofer and Niklaus Peter Nüesch, as well as external experts.

New head of the paper division from 1 July 2015
The Delegate of the Board, Urs Ziegler, who has successfully completed the extensive restructuring of the Cham Paper Group since the end of 2012, will reduce his workload as planned from summer 2015 onwards. Luis Mata, until now the Head of Finance at the Cham Paper Group, will take over the operational management of the paper division as COO from 1 July 2015.

Proposals to the General Meeting of Shareholders
The Board of Directors will propose to the General Meeting of Shareholders that an unchanged dividend of CHF 3.00 per share be paid (previous year: CHF 3.00), which will be exempt from capital gains tax for Swiss private investors. All five members of the Board of Directors will also be put forward for re-election.

Demanding challenges, but strategically well-placed
The Cham Paper Group is confident regarding the Group's further development. The Paper business unit is well positioned and will benefit from the strong performance characteristics of its products in all markets. At the present time, the strength of the US dollar against the euro is having a detrimental effect on the margin. The real estate division will develop into a strong second pillar for the Group over the next decade.

We would like to thank you, our valued shareholders, customers and partners, for your trust and our employees for their huge commitment.

Cham Paper Group
 The Cham Paper Group is a leading manufacturer of coated speciality papers. Its papers have surface coatings that give them functionalities that offer added value for customers. The company was founded in 1657 and has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), as well as operating a global distribution network.
 The decision to focus on development and distribution activities and to withdraw from paper production in Switzerland has created new space at the factory site in the centre of Cham. The Cham Paper Group is developing an 11-hectare area there, the Papieri-Areal.
 The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.

For information, please contact
 Media and IR Office Cham Paper Group Holding AG
 c/o Dynamics Group, Edwin van der Geest / Philippe Blangey
 E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it.
 Phone: +41 43 268 32 32

On 21 August 2014 the Cham Paper Group announced that it will be boosting the competitive strength of its speciality papers by planning the continued transfer of technology from Switzerland to Italy.  The relocation affects the coating technology operations currently run in Cham for producing the digital imaging and barrier papers. Continued relocation of operations is to take place in the first quarter of 2015 and is expected to result in a further reduction of approx. 50 staff at the Group's registered office in Switzerland.

The Board of Directors and the Executive Management Board immediately contacted the social partner organisations and cantonal authorities for the purpose of carefully planning the current redundancies with the involvement of all stakeholders in a socially responsible manner. The goal of this is to sustainably secure the remaining 30 to 40 positions at Cham in Research & Development (Digital Imaging), Marketing & Sales, Small roll processing and Group administration.

During the three-week consultation period, proposals for alternative solutions could be submitted to the employee representation committee of the mill in Cham. The consultation period ended on 14 September. No petitions were received from the employee representation committee during this period. The Executive Management Board will now initiate talks as planned with the social partner organisations for the purpose of fleshing out the details of the redundancy scheme with a view to finalising the scheme in the fourth quarter of 2014.

Cham Paper Group
Cham Paper Group is a leading manufacturer of coated speciality papers. The group generates added value for its customers by providing finishing-based functional capabilities. Founded in 1657, at its three locations in Switzerland and Italy the company develops and manufactures speciality papers for use in the consumer goods, industrial release and digital imaging sectors. The consumer goods sector encompasses papers for flexible packaging and base papers for label printing in the food, non-food, tobacco, beverage and pharmaceutical industries. In terms of the industrial release sector, Cham Paper Group supplies silicone-base papers for release liners used in graphical applications and for adhesive tapes and labels. The company also supplies base papers for process liners used in industrial casting and laminating process applications. Facestock papers for the self-adhesive industry round off the range. In addition to large-format inkjet papers for indoor and outdoor applications, the digital imaging sector also includes sublimation papers for digital textile printing. Cham Paper Group has benefited from the trend for sustainable products and is well established on the market thanks to the company's technological innovation. Cham Paper Group (stock exchange symbol: CPGN) is listed on the SIX Swiss Exchange as an independent company.

Tieto provides Swiss paper specialist Cham Paper Group Schweiz AG a cost efficient and easily managed cloud solution for creating and optimizing cutting plans for the pulp and paper industry. Web Trim’s Software as a Service solution allows Cham to focus on its core business without any local installations or need to maintain its own IT infra.

Trim is an optimization module of Tieto Integrated Paper Solution TIPS, which is the leading sales, logistics and manufacturing execution system for the pulp and paper industry.  

Cham and Tieto have been working together for more than 15 years. Cham had the need to update its old release of TIPS Trim to the newest Trim application. Tieto suggested that Cham start using Web Trim as Software as a Service, which allows the company to concentrate on its core business while Tieto takes care of the IT infrastructure.

“With this solution, we do not have to invest in our own software and hardware. We can focus on our core business and reduce our IT costs significantly. The collaboration with Tieto has been very constructive and efficient. The support after the implementation has been excellent,” says Markus Keiser, Head of Operations at Cham.

With Web Trim’s Software as a Service solution, the application will always be up to date without any upgrade projects or installations.

“This additional delivery confirms our assumption that there is an increasing demand for cloud applications in the paper industry as well,” says Stefanie Richter, Continuous Service Manager at Tieto Germany GmbH.