Ian Melin-Jones
Disposal of Spicers completed
Further to our previous announcements in July and September 2011 regarding the disposal of Spicers to Unipapel SA, DS Smith Plc is pleased to confirm that this transaction has now completed. The enterprise value for Spicers is £200 million, and net proceeds, after tax and related costs, are c. £160 million. Following the disposal, the Group is focused on its recycled packaging businesses.
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Clariant is named Pigment Supplier of the Year
Sitivesp, the Union of Paints & Coatings producers of the State of São Paulo, has named Clariant “Supplier of the Year” in the Pigment category of its annual award scheme. This is the 17th time, in the 20 year history of the award, that Clariant has been chosen as the best Pigment supplier.
Promoted by the Union's Raw Materials Department, the Sitivesp Supplier of the Year Award highlights the work done by companies that promote continuous improvements in the products and services offered to the paint and coatings market. “Clariant continuously invests in research and innovation, in the improvement of its processes and the development of environmentally friendly products, with the objective of providing clients with the optimum solutions for their needs. This recognition proves that we are on the right path, from the stand point of quality and customer service,” states Pieter Hermens, Clariant’s Head of Business Unit Pigments to Latin America.
The selection process included votes from all Sitivesp associated companies. In all there are 75 companies, which together make up 70% of the Brazilian paint and coatings market. In the secret and voluntary vote, the members took into consideration factors such as relationship between company and supplier, pre- and post-sale service quality, timely delivery, commercial policy, process, product quality and technological innovation.
For Clariant, the award is even more significant because it is based on Top of Mind Awareness (TOMA), in which Sitivesp members freely name the best companies in different categories. “The Clariant team includes experienced professionals who have been serving the paint market for many years, which contributes to our deep understanding of client needs, and strengthens our relationships and partnerships," states Luis Carlos Peres, Pigment Sales Coordinator at Clariant.
Metso to deliver recovery boiler single-drum conversion to Stora Enso
Metso and Stora Enso Corporation have signed an agreement on the single-drum conversion of Stora Enso’s Imatra Mills’ recovery boiler. The conversion of the recovery boiler will be completed in the fall of 2012. The value of the order will not be disclosed.
The upper and lower drum of the recovery boiler and the steam generating bank between them will be replaced by a new drum and separate boiler bank elements needed for heat recovery. At the same time, the second stage of the economizer will be rebuilt.
“The conversion will significantly extend the boiler’s lifetime and allow for a possible capacity increase in the future. In addition, the conversion will improve the boiler’s availability, secure safe operation and reduce maintenance costs. Further advantages offered by a single-drum conversion compared to replacing the existing design are a shorter downtime and the reliability of the solution,” says Jouni Koskinen, Sales Manager, Boiler Conversions, from Metso.
The recovery boiler was built in 1987 and its current capacity is about 1,700 metric tons of dry solids per day. The order is included in Energy and Environmental Technology’s fourth quarter 2011 orders received.
Stora Enso is the global rethinker of the packaging, paper and wood products industry. Stora Enso employs some 30 000 people worldwide, and our sales in 2010 amounted to EUR 10.3 billion.
Verso Addresses NYSE Listing Standard
Verso Paper Corp. has announced that the New York Stock Exchange has notified the company that it has fallen below the NYSE's continued listing standard relating to market capitalization. The NYSE requires that Verso's average market capitalization over a consecutive 30 trading-day period be at least $75 million. As of December 21, 2011, the date of the NYSE notice, Verso's 30 trading-day average market capitalization was approximately $66.6 million.
Mike Jackson, President and Chief Executive Officer of Verso, commented, "We do not believe that Verso's current stock price is indicative of the strong operating performance of the company. Verso has ample liquidity and is well positioned to fund its operations and anticipated growth."
Under the applicable NYSE rules, Verso has 45 days from receipt of the NYSE notice to submit a plan to demonstrate its ability to achieve compliance with the market capitalization standard within 18 months. Verso intends to respond to the NYSE in a timely manner. In the meantime, Verso's common stock will continue to be traded on the NYSE, subject to the company's compliance with other NYSE continued listing requirements.
Metso Paper Oy sells its Valkeakoski workshop
Metso Paper Oy has sold its Valkeakoski, Finland -based workshop and the related equipment and screen basket manufacturing to MSP Engineering Oy and Hanlog Oy. The value of the deal (a transfer of undertaking) will not be disclosed. The deal will have no significant impact on Metso’s results.
The personnel of the operations being sold, 76 people in all, are transferring to the new employer as existing employees. A total of more than 300 people are employed at Metso’s entire Valkeakoski unit.
The deal includes the workshop and maintenance hall real estate, the related manufacturing machinery and equipment, the related office premises, and the areas of land associated with the operations being sold. The buyer will continue as a contract manufacturer for Metso.
The sale is part of Metso's Pulp, Paper and Power segment's work to develop its production structure in order to improve customer service amid the toughening global competition.
Metso to rebuild fiber line for Daio Paper in Japan
UPM sells its RFID business to SMARTRAC
UPM has reached an agreement with SMARTRAC N.V. today whereby UPM sells its RFID business to SMARTRAC. UPM will become an indirect shareholder of SMARTRAC with a 10.6 percent economic interest through the company OEP Technologie B.V. The closing of the deal is expected to take place during the first quarter of 2012. The transaction is still subject to regulatory approvals.
SMARTRAC is registered in the Netherlands, and is one of the global market leaders in high-quality RFID inlays for electronic passports and contactless credit cards as well as for RFID transponders for public transport applications.
“UPM has been developing and investing in its RFID inlay business for a number of years. The business unit has evolved from a small venture to a sizeable business and is now recognised as the market leader in its field. Combining the business unit with a company with the industry’s widest RFID business portfolio, we give it new leverage to continue to develop successfully. We see significant value increase potential in this new combination. Therefore we are pleased to become an indirect shareholder of SMARTRAC,” says Jussi Vanhanen, President, Engineered Materials, UPM.
“Becoming part of the leading player in the RFID industry opens up totally new possibilities for us. I am convinced that this new setup will be a strong player in the growing RFID market place, ready to offer support and solutions to customers around the world,” says Marcus Vaenerberg, Senior Vice President, UPM RFID.
“UPM RFID is a true pioneer in the global RFID tags and inlay business. We are delighted to add such an experienced and capable crew to our global team. The transaction will provide us with a strong product offering for NFC and UHF RFID tags and inlays and will furnish us with favourable additional manufacturing capacities in strategically important markets. The combination of SMARTRAC and UPM RFID will significantly accelerate our momentum as a developer and supplier of passive RFID tags and inlays for all relevant application fields of today and tomorrow”, said Dr. Christian Fischer, CEO of SMARTRAC.
M-real has concluded the statutory negotiations at the Äänekoski mill
M-real Corporation, part of Metsäliitto Group, has concluded the statutory negotiations at the Äänekoski mill. In order to improve the profitability of its coated paper business M-real started on 9 November 2011 statutory negotiations concerning the potential closure of the Äänekoski paper machine and conversion of the mill’s sheeting capacity entirely to folding boxboard sheeting. M-real released a stock exchange bulletin on 2 November 2011 concerning these plans.
Following the conclusion of the statutory negotiations, M-real has decided that the Äänekoski paper machine, with an annual capacity of approximately 200 000 tonnes of coated fine paper, will be closed by the end of 2011. The mill’s sheeting capacity will be converted fully to folding boxboard. Planning work related to the sheeting capacity conversion is on-going.
The related personnel reduction at the Äänekoski mill is a maximum of 169 people. In close cooperation with local authorities, M-real will assist redundant employees to find new employment. In addition, M-real will also facilitate redeployment, if possible, by offering employment opportunities internally within the company or other Metsäliitto Group's business areas.
M-real continues to produce coated papers at the Husum mill in Sweden. Äänekoski paper machine’s reel production will be transferred to Husum. The annual coated paper capacity at Husum will be increased from 285 000 tonnes to 340 000 tonnes during 2012.
Also in the future M-real’s coated papers will be sold by Sappi Fine Paper Europe. Based on the above measures, M-real’s annual coated paper capacity is reduced by approximately 145 000 tonnes. M-real’s annual sales will reduce by approximately EUR 60 million and operating result will increase by approximately EUR 20 million based on the results of the coated paper production in 1–3Q 2011. The full annual financial impact of the measures is expected to materialise from 2012 onwards.
Consumer Packaging’s 4Q 2011 operating result includes approximately EUR 25 million non-recurring impairments and cost provisions related to the measures in Äänekoski. Total net cash impact of the measures is expected to be slightly positive when taken into account the reduction of working capital.
New marine transportation service to deliver fibre
Ledcor Resources and Transportation has invested $70 million to launch a marine transportation service to Howe Sound Pulp and Paper. The company has also acquired a producer of wood chips and hog fuel located in the B.C. Interior region.
The acquisition of Renew Resources and twelve new barges represents an investment of $70 million for Ledcor, making it the only company of its kind to provide all of the related supply chain services from fibre sourcing and harvesting to the processing and delivery of that fibre to end users.
Paul McElligott, former president and CEO of TimberWest, recently joined Ledcor to head up the company's resources and transportation division. "This was a very deliberate, strategic decision that Ledcor made to further diversify into the resource and transportation sectors in our province," said McElligott. "We have positioned ourselves to be the only company that has the capacity to meet all of our customer's needs. This type of vertical integration creates efficiencies in the supply chain."
Howe Sound Pulp and Paper president & CEO Mac Palmiere noted that Renew Resources has played an important role in HSPP becoming a significant renewable clean power generator and that the mill's relationship with Ledcor Resources and Transportation is vitally important in helping secure jobs at HSPP.
McElligott explains that Ledcor Resources and Transportation is creating opportunities to utilize and create value from marginal wood fibre that would have otherwise been slash burned or left on the forest floor. "Instead of doing nothing about a waste disposal problem that compromises our environment, we are producing woodchips and hog fuel for pulp and paper making and green energy production."
The Ledcor Group of Companies is a BC based, employee-owned conglomerate that operates across North America.
Fibrek advises shareholders not to accept Resolute offer
Fibrek's board of directors has rejected the unsolicited bid from Resolute Forest Products (formerly AbitibiBowater) and taken steps to buy it time to fight the hostile bid.
The Quebec-based pulp producer has adopted a shareholder rights plan and is obtaining an independent valuation of its common shares.
Because Resolute is Fibrek's largest supplier of wood chips, and Fairfax Financial Holdings is the largest shareholder in both companies, the board of Fibrek says it is in the best interest of shareholders to get a formal valuation.
"We strongly advise our shareholders not to tender their shares for the insider bid, and not to take any action before the formal valuation is completed and publicly disclosed," says Hubert Lacroix, chairman of the board of Fibrek.
The Fibrek board has taken steps to solicit competing offers and evaluate strategic alternatives.
Resolute spokesperson Seth Kursman told Canadian Press that his company, in turn, is reviewing Fibrek's response to its bid.
According to CP, the acquisition of Fibrek's St. Felicien, Que., mill would increase Resolute's bleached kraft pulp capacity by about 35%.