Arizona Chemical Selects The M.F. Cachat Company to Expand Distribution of Its Products in the Midwest U.S.

JACKSONVILLE, FL, October 17, 2011 – Arizona Chemical, a world leader of bio-refined products, announced it has entered into an exclusive agreement with The M.F. Cachat Company to expand its distribution of the company’s adhesives and coatings product lines in the Midwest U.S.

“The M.F. Cachat Company is well-regarded for its technical expertise and relationship management abilities,” said Rob Helwick, Commercial Director-Americas for Arizona Chemical. “Arizona Chemical is pleased to be able to expand our arrangement with them, and looks forward to growing our business in the Midwest with their support.”

Effective December 1, 2011, The M.F. Cachat Company will offer Arizona Chemical’s products that provide a broad range of functionality in a variety of applications, including SYLVALITE™ and SYLVATAC™ rosin esters, AQUATAC™ rosin dispersions, SYLVARES™ terpene resins, UNI-REZ™ ink polyamides, and SYLVACOTE™ insoluble maleics.

Arizona Chemical Selects L.V. Lomas, Ltd. to Expand Distribution of Its Chemical Intermediate Products in Canada

Arizona Chemical, a world leader of bio-refined products, announced it has entered into an exclusive agreement with L.V. Lomas, Ltd., to expand its distribution of the company’s adhesives, coatings, and chemical intermediate products in Canada.

“Arizona Chemical is pleased to be able to expand our arrangement with L.V. Lomas, and looks forward to growing our business in Canada with their support,” said Rob Helwick, Commercial Director-Americas for Arizona Chemical. “We are confident in L.V. Lomas’s ability to provide knowledgeable service and support in addition to local reliable product availability to our customers across Canada.”

Effective October 1, 2011, L.V. Lomas offers Arizona Chemical’s products that provide a broad range of functionality in a variety of applications, including SYLVALITE™ and SYLVATAC™ rosin esters, AQUATAC™ rosin dispersions, UNI-REZ™ ink polyamides, SYLVACOTE™ insoluble maleics, SYLFAT™ tall oil fatty acid, SYLVATAL™ distilled tall oil, and UNIDYME™ dimer acids.

Metso will supply a new fiberline for chemical cellulose for Sappi’s Ngodwana mill in South Africa. Start-up is scheduled for the first half of 2013. The value of the order will not be disclosed.

Metso’s delivery will include the design and supply of the main equipment for the new fiberline, from cooking to bleaching. The batch cooking plant is to be designed according to the prehydrolysis process and TwinRoll wash presses will be used in all washing positions.

The equipment to be supplied, together with Metso’s experience and know-how of this type of special pulp, will enable Sappi to produce high-quality chemical cellulose pulp for the growing market.

The new fiberline will produce around 215,000 air dried tonnes chemical cellulose hardwood pulp per year. In addition to the cooking plant and fiberline which will be new, Metso will also supply equipment for the upgrade of wood handling, evaporation and recausticizing as well as a new ash leaching system.

The main part of the order is included in Paper and Fiber Technology’s third quarter 2011 orders received and the evaporation and ash leaching equipment delivery in Energy and Environmental Technology’s third quarter 2011 orders received.

Sappi is today the world’s largest producer of chemical cellulose with a production capacity of approx. 815,000 air dried tonnes per year from the Saiccor mill. The Ngodwana mill located in the Mpumalanga province of South Africa will convert all of its market pulp production to chemical cellulose.

Sonoco (NYSE: SON), one of the largest diversified global consumer and industrial packaging companies, today reported results for its third quarter ending October 2, 2011.

Third Quarter Highlights

• Third quarter 2011 GAAP earnings per diluted share were $.76, compared with $.57 in 2010, including a $.10-per-diluted-share gain stemming from a net release of valuation allowances on deferred tax assets, partially offset by restructuring charges and acquisition expenses.
• Base net income attributable to Sonoco (base earnings) for third quarter 2011 was $.66 per diluted share, compared with $.65 in 2010. (See base earnings definition and reconciliation later in this release.)
• Third quarter 2011 net sales were $1.12 billion, up 7 percent, compared with $1.05 billion in the third quarter of 2010.
• Base earnings guidance for fourth quarter 2011 is estimated at $.59 to $.63 per diluted share and $2.41 to $2.45 per diluted share for full-year 2011.

Third Quarter Review

Commenting on the Company's third quarter results, Chairman and Chief Executive Officer Harris E. DeLoach, Jr. said, "Despite slowing global economic conditions, our third quarter base earnings were essentially flat with last year and up 10 percent from the second quarter of 2011. Compared to the prior year third quarter, volume declined slightly, particularly in our more economic-sensitive industrial businesses, and we continued to see a negative mix in many of our businesses. Even though we faced raw material, energy and freight cost headwinds, the price/cost relationship for the quarter was only slightly negative. We were helped by productivity improvements, although not up to our historic levels, and lower selling and administrative costs.

"Our Consumer Packaging segment's operating profits were 35 percent higher, when compared to the second quarter and slightly better than last year's third quarter. Improved productivity, volume gains and cost reduction efforts offset a negative price/cost relationship. In our Packaging Services segment, results were up year over year; however, results were down sequentially from the second quarter as improved point-of-purchase display volume and fulfillment activities could not offset previously announced lost contract packaging business.

"Our industrial-focused businesses had mixed results, as our Tubes and Cores/Paper segment's third quarter operating profits were down 10 percent year over year and 9 percent sequentially. Results for the quarter were impacted by lower global volume for tubes and cores along with an unfavorable mix of business. These negative factors were partially offset by productivity improvements. All Other Sonoco, which primarily includes industrial-related businesses, showed a 6 percent improvement in operating profits year over year and a 7 percent improvement sequentially, due primarily to productivity."

Third quarter GAAP net income attributable to Sonoco was $77.2 million, or $.76 per diluted share, in 2011, compared with $59.0 million, or $.57 per diluted share, in 2010. Base earnings were $67.1 million, or $.66 per diluted share, in the third quarter of 2011, compared with $67.1 million, or $.65 per diluted share, in 2010. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

Items excluded from base earnings in the 2011 third quarter include: a net $18.8 million, or $.18 per share, reduction in tax expense resulting from valuation allowance adjustments on deferred tax assets; restructuring expenses of $7.2 million, after tax, or $.07 per share, primarily due to the closures of a tubes and cores plant and a plastics facility; and acquisition-related costs of $1.5 million, after tax, or $.01 per share. Excluded from base earnings in the third quarter of 2010 were impairment and restructuring charges of $6.9 million, after tax, or $.07 per share, primarily related to impairment charges in the Company's Flexible Packaging unit, and $1.1 million, after tax, or $.01 per share, in acquisition-related costs.

Net sales for the third quarter were $1.12 billion, compared with $1.05 billion in the same period in 2010. This 7 percent increase was due to higher selling prices and favorable foreign currency translation, partially offset by a negative mix of business. The impact of higher selling prices was realized primarily in the Tubes and Cores/Paper and Consumer Packaging segments, principally driven by higher recovered paper and resin prices.

The Company's gross profit margin in the third quarter of 2011 was 16.6 percent of sales, compared with 19.0 percent in the same period in 2010. The decline was primarily due to lower volume, a negative shift in the mix of business and higher labor and other costs. The Company's selling and administrative costs declined 12 percent year over year, primarily due to lower management incentive and pension costs, a gain from life insurance proceeds, cost controls and the net impact of foreign exchange.

Cash generated from operations in the third quarter was $100 million, compared with $145 million generated in the same period in 2010. Capital expenditures and cash dividends were $44 million and $29 million, respectively, during the third quarter, compared with $42 million and $28 million, respectively, during the third quarter of 2010.

Learn more downlaod the full report below

SOURCE: Sonoco

Swiss process automation provider invests in US biotech company

Process automation specialist Endress+Hauser has acquired a stake in Finesse Solutions, a US company that develops, produces and distributes sensors, hardware and software for bioprocess engineering.

Endress+Hauser intends to strengthen its position in the area of biotechnology through this cooperation. “Biotechnological procedures will play an increasingly important role in the future, not only in the life sciences industry but also in other industries such as the chemical industry to manufacture products in a more environmentally friendly and economical fashion,” emphasizes Klaus Endress, CEO of the Endress+Hauser Group. “Our partnership with Finesse offers us the possibility of gaining experience in this area without neglecting our core business.”

Combined offers for customers
Finesse Solutions will profit from leveraging the know-how of the new strategic relationship to extend its product portfolio and to enhance its global sales and service capabilities. The two companies intend to cooperate closely in relation to products, markets and customers, and to complement each other, for example, in the provision of global after-market services to bioprocess end users. “Endress+Hauser and Finesse Solutions have many common customers who can profit from this cooperation,” stated Finesse CEO Barbara A Paldus.

The previous majority shareholder, Skymoon Ventures, will hold an equal stake to Endress+Hauser. The company’s staff of about 50 will maintain their ownership in the company. Endress+Hauser will elect two representatives to the Board of Directors, which Barbara A Paldus will continue to chair.

Kingsey Falls, Quebec, Cascades Inc. (TSX: CAS), a leader in the recovery of recyclable materials and the manufacturing of green packaging and tissue paper products, expects to release its 2011 third quarter results before the market open on Thursday, November 10, 2011. Cascades will hold its conference call the same day at 10:00 a.m. ET.

Dial-in number: 1-800-732-1073

Replay: 1-877-289-8525 access code: 4482229#

(Until November 17, 2011)

Financial analysts, investors, media and other interested individuals are also invited to listen to the live or deferred webcast via Cascades' website at www.cascades.com.

The new Metso-supplied tissue line of AK GIDA SAN ve TİC A.Ş in Turkey was successfully started up on August 29, 2011. The tissue line was installed in the company’s new mill in Pamukova, which is located in Sakarya province. On August 29 AK GIDA SAN produced tissue for the first time in a brand new plant with a complete Metso tissue machine.

With 500,000 m² of production area, AK GIDA SAN. ve TİC. A. Ş. currently produces some 400 different dairy products at the Pamukova facilities. The tissue plant covers 170,000 m². The new tissue line will produce 60,000 tons a year of high-quality facial, handkerchief, toilet and towel grades at a speed level of 1,600 m/min to 2,000 m/min. The raw material for the new line is virgin fiber. The production line is optimized to save energy and enhance final product quality.

Technical information

The Metso delivery comprised a complete tissue production line including a stock preparation system and an Advantage DCT 200 tissue machine. The tissue machine is equipped with an OptiFlo II TIS headbox, a press, a Metso Yankee cylinder, an Advantage AirCap hood, an Advantage WetDust dust management system and an Advantage SoftReel L reel. The stock preparation system comprises OptiSlush VM and HP pulpers, OptiFiner refiners and ProMS machine screens.

The delivery further contained an extensive automation package with Metso DNA machine and process controls, Metso consistency measurements, Metso IQ quality controls with IQ Fiber Measurement and a Neles valves package. Complete engineering, installation supervision, training, start-up and commissioning were also included in the delivery.

AK GIDA SAN ve TİC A.Ş is very satisfied with the delivery and the cooperation with Metso. Both parties look forward to maintaining the cooperation in the further expansion of AK GIDA SAN ve TİC A.Ş.



The first tissue jumbo roll produced at AK GIDA SAN ve TİC A.Ş.

M-real Corporation, part of Metsäliitto Group, announced on 4 May 2011 in a stock exchange release its plans to divest the Alizay mill in France and the entire Gohrsmühle mill in Germany or, alternatively parts of the Gohrsmühle separately based on a Paper Park concept. It was then announced also that if the divestments do not materialize, M-real plans to start consultation processes proposing to close the operations. M-real also announced plans to discontinue its remaining carbonless paper converting operations at the Reflex mill in Germany.

Consultation process to close the Alizay mill will be commenced

M-real received several offers for the Alizay mill, based on which the negotiations have been carried out to divest the mill. None of the buyer candidates however fulfilled M-real’s conditions for entering into transaction. The main conditions for divestment set by M-real relate to the financial status of the buyer, credibility and capability to implement the presented business plan, ability to take responsibility for the employees and the business risks as well as the financial consequences to M-real of the divestment.

M-real has decided to commence an information and consultation process to close the Alizay paper mill. There are currently approximately 330 employees at Alizay mill.
Despite extensive restructuring measures and also investments implemented at Alizay mill, it loses currently approximately EUR 3 million per month. In this very challenging operating environment that European paper industry faces, it is not possible to turn the heavily loss-making mill profitable. Nor are there any signs of such a turning point in the paper market that would change the situation.
 
In the past years, M-real has tried to divest the Alizay mill and discussed and negotiated with a number of companies, including key industry players with no success. M-real appointed leading industry experts who approached in excess of 80 companies in the most recent process to divest the mill started in May 2011. Out of these 65 declined and 18 showed preliminary interest, received the information memorandum and visited the site. In the last few weeks, there were serious negotiations with two remaining candidates. Also the French State’s Invest in France Agency (AFII) has supported M-real in the sales process. One key point in the negotiations has been the fact that M-real will not sell Alizay mill to a buyer who would fail to turn the mill profitable. Consequently, if the mill would be shut down it could cause an unjustified position for the employees.

Statutory negotiations will be commenced in Speciality Papers to discontinue unprofitable businesses, Chromolux business will be continued

M-real has not been able to find a buyer for its Gohrsmühle mill, whether in parts or as a whole. M-real is planning to discontinue the unprofitable speciality paper businesses as well as the production of uncoated fine paper in Gohrsmühle. M-real will continue the profitable Chromolux business and investigate possibilities to start up a new customer service and logistics center for folding boxboard in Gohrsmühle, including a sheeting facility.

M-real is currently negotiating to divest its Premium Papers business of the Reflex mill.  The carbonless paper converting operations of the Reflex are under negotiations to be discontinued.

There are currently approximately 940 employees at Gohrsmühle and Reflex mills in total. The Chromolux business and the planned cartonboard customer service center would employ approximately 400 persons.  There are approximately 100 employees working for the Reflex Premium Papers business, to be potentially divested.

M-real has in recent years implemented plenty of major profit improvement measures at Gohrsmühle and Reflex mills including headcount reductions, closure of the loss-making coated fine paper production in Gohrsmühle and transfer of the Simpele mill’s speciality paper volumes to Gohrsmühle. Despite heavy improvement measures the Gohrsmühle and Reflex operations have, due to the challenging operating environment of the European paper industry, remained severely unprofitable. Currently the monthly operating loss is approximately EUR 5 million per month. There are no signs that the profitability would materially improve in the future.

M-real has attempted to divest the Gohrsmühle and Reflex operations to many different buyer candidates during the last 5 years. In 2010 M-real successfully divested a part of the Reflex mill to Metsä Tissue. The other attempts to divest the operations have failed due to the major losses of the operations, the European overcapacity in fine and speciality papers and the severe cost inflation.

“We have done lot of work to find buyers for both Alizay and Gohrsmühle mills. We have been ready to accept a heavily negative sales price. Regardless, demands of buyer candidates have on the one hand been unacceptable from the company’s’ perspective, while on the other hand they have not been able to demonstrate capability to turn the unprofitable operations  profitable, thereby guaranteeing the continuation of operations as a responsible owner and employer”, says M-real’s CEO Mikko Helander.

Financial impacts of the planned measures

If the production closure measures are implemented as planned M-real’s annual sales is expected to reduce by approximately EUR 400 million, while the operating result is expected to increase by approximately EUR 70 million based on 2011 first half’s actual performance. Most of the annual financial impact is expected to materialize in 2012 with full impact from 2013 onwards. None of the planned measures will be implemented without consulting the employee representatives in line with applicable legal requirements.

If the measures materialize fully as planned, they are preliminarily expected to result in approximately EUR 180 million negative non-recurring items in total.  In 3Q 2011 Office Papers operating result is expected to include approximately EUR 8 million non-recurring asset impairment and Speciality Papers business area EUR 9 million cost provisions. The  2Q 2011 Speciality Papers operating result included non-recurring impairment and cost provisions in total of EUR -22 million. . Rest of the non-recurring items will be booked in 4Q 2011 and in 1Q 2012. The estimated net cash costs of all planned  measures, taking into consideration change in net working capital from the beginning of May 2011, are approximately EUR 50 million in total. “If implemented, the planned measures will lead to an even stronger transformation of M-real to become a cartonboard company as stated in our strategy. At the same time the profitability of the company will raise to a new improved level,” says Helander.