Lower pulp and fine paper deliveries in Europe had an adverse impact on UPM’s operating profit – Q3 operating profit excluding special items was EUR 137 million

UPM’s pulp deliveries and fine paper deliveries in Europe during Q3 2011 were lower than expected and had a negative impact on the company’s operating profit.

Fine paper demand continued to be low in Europe and deliveries did not recover in September from the seasonal summer slowdown.

However, stable demand continued in publication papers and the integration of Myllykoski and Rhein Papier proceeded well.

During Q3 2011, UPM’s operating profit excluding special items was approximately EUR 137 million and EBITDA approximately EUR 330 million. Sales were EUR 2.6 billion.

Following the lower than expected Q3 results and the continuing uncertainty in pulp and fine paper markets, UPM’s full-year 2011 operating profit is expected to be somewhat lower than last year. Previously, the full year 2011 operating profit was expected to improve from last year.

UPM will publish its Q3 2011 results on October 26, 2011.

New building in Cernay (Alsace, France) provides greater proximity to customers and better production conditions

Since the beginning, Endress+Hauser has put a high value on customer satisfaction. “The new building is another step towards optimally caring for several thousand visitors per year”, points out Gerhard Jost, Managing Director of Endress+Hauser Flowtec AG, one of the global leaders in the production of flowmeters.

The cornerstone for the Customer Center was laid in March of last year. After one and a half years of construction, the building is now complete and can fulfill its purpose. In addition to a personnel restaurant, the 820 square meters of floor space was outfitted with an auditorium and additional rooms for the over 3000 annual visitors to the factory. “This new building removes a spatial bottleneck in production and makes it possible to provide our customers and visitors optimal service”, explained Gerhard Jost. Endress+Hauser invested 1.3 million euros in the new building.

On October 14th, 2011, the Customer Center in Cernay was inaugurated in the presence of Klaus Endress, CEO of the Endress+Hauser Group, as well as Gerhard Jost, Managing Director of Endress+Hauser Flowtec AG. Among the honored guests were many representatives from politics and business, such as Michel Sordi, Deputy Mayor of Cernay; Anne Laparre-Lacassagne, Subprefect, Arrondissement of Thann; Jean-Paul Omeyer, Vice President of the Conseil Régional (Regional Council) and First Deputy to the Mayor of Cernay; Charles Buttner, President of the Conseil Général du Haut-Rhin (Alsace Region Council); Pierre Vogt, Conseiller Général (Departement Councillor) for the Canton of Cernay as well as Jean-Pierre Lavielle, President of the South Alsace Chamber of Commerce and Industry. The Swiss Consul General, Beat Kaser, was also present.

Rapid growth since 1991
The desire for high-quality flowmeters in the process industry has continued unabated for decades. This is not surprising, since the liquids being transported through pipelines in massive quantities every day need to be collected, measured and billed with increasing accuracy. Among other things, this is caused by legal provisions that constantly define stricter and stricter quality requirements worldwide. Therefore, for Endress+Hauser the consistent expansion in Cernay was never in question despite the financial crisis. At its founding in 1991, the location had 16 employees; 20 years later, there are already 265.

Since 2001 Endress+Hauser has operated in Cernay one of the worlds largest and most modern calibration rigs. On this rig, the finished flowmeters are subjected to rigorous testing and adjusted for maximum accuracy before being delivered. Many customers would like to be present in person for these tests and to be assured of the high measurement quality of the devices on the spot. “Our Customer Center offers optimal conditions for such factory witness testings. In the new facility we can also carry out instruction and training and thus provide our visitors the best possible service”, said Matthias Aschberger, the factory manager in Cernay.

Optimized production
Thanks to the new building it is possible to remove existing offices from the production hall and to better utilize the actual production space. “Thus we are more flexible in our manufacturing processes and can react even faster to the needs of the market and customers”, noted Aschberger. This policy has already paid off for Endress+Hauser. The threshold of producing one million magmeters was crossed two years ago. A record that could only be reached through polished production logistics.

Eka Chemicals and Wetend Technologies Ltd have agreed to market and deliver TrumpJet® Flash Mixing Systems together with Eka’s wet end chemicals to the paper industry globally.

The TrumpJet® brand offers a range of chemical and additive mixing systems for paper mills, including paper and board machine wet end, stock preparation, recycled fiber and mechanical pulping process applications.

AkzoNobel’s Pulp and Paper Chemicals business, Eka Chemicals, produces and supplies a wide range of chemicals, including the unique Compozil® retention and drainage system for the paper industry globally.

“The combination of high performance chemicals and an advanced chemical mixing system will benefit the paper and board industry, both in terms of cost savings and environmental gains,” says Lennart Nilsson, Director Global Marketing at Eka Chemicals.

“This offer will definitely have a positive impact on wet end efficiency and contribute to a sustainable paper machine operation,” adds Jouni Matula, CEO at Wetend Technologies.

International Paper (NYSE: IP) today announced that it has completed the acquisition of a 75 percent stake in Andhra Pradesh Paper Mills (APPM). International Paper purchased 53.5 percent of the APPM shares from Mr. L.N. Bangur and related family members and affiliates for approximately US$226 million in cash. These sellers have also entered into a covenant not to compete, for which they received a cash payment of US$57 million. In addition, International Paper acquired an additional 21.5 percent of APPM shares in a public tender offer completed on October 8, 2011, for approximately US$105 million in cash. Paul Brown, president, IP India, will become executive chairman of the APPM Board of Directors, effective today.

"As we complete this phase of the process and move into majority ownership, International Paper is well-positioned to help serve a rapidly growing Indian market," said John Faraci, International Paper Chairman and Chief Executive Officer. "We look forward to building on Andhra Paper's tradition of excellence while introducing the global best practices that make International Paper an industry leader. We are delighted to welcome these new employees to International Paper."

APPM is one of the leading integrated paper manufacturers in India, and operates two mills with a combined annual capacity of 250,000 tonnes of uncoated freesheet paper. The existing management team and 2,500 employees of APPM will continue to operate the business, supplemented by additional International Paper leadership and professional and technical resources.

Note: US$ monetary amounts are based on an average Indian Rupee to U.S. Dollar exchange rate of INR 48.25 per US$.

SOURCE International Paper

The Global Sawlog Price Index reached a 16-­year high in the 2Q/11; the biggest price increases occurred in Europe, Canada, Russia and New Zealand, reports the Wood Resource Quarterly

Increased consumption of softwood lumber throughout the world has moved sawlog prices to new highs in 2011. The Global Conifer Sawlog Price Index (GSPI) reached a 16-year record high in the 2Q/11, with the greatest increases over last year’s prices occurring in Latvia, Poland, Japan, Russia and Germany, according to the Wood Resource Quarterly.

Seattle, USA. Wood costs often account for 65-75 percent of the production costs when manufacturing softwood lumber. This cost has trended upwards for over two years in many of the major lumber-producing countries around the world, as reported in the Wood Resource Quarterly.

The higher sawlog costs have been the result of growing demand for lumber, not only in the traditional markets of Europe, the US and Japan, but also in China, the Middle East and Northern Africa. For example, the biggest gains in exports for the Nordic countries this year has been to Morocco, a new fast growing market for wood products, and Egypt is now the second most important export market for sawmills in Finland.

China’s increasing demand for wood products is a major factor in the increase in log prices in regions supplying China with lumber, including Western US, British Columbia and New Zealand.

In the 2Q/11, the Global Conifer Sawlog Price Index (GSPI) reached a new all-time high of US$92.27 per m3. This was 5.6 percent more than the previous quarter, and an almost 20 percent jump from the past year. The GSPI has gone up every quarter since the 1Q/09 when the Index was at US$66.10/m3. This almost 40 percent increase in two years is due not only to the weakening of the US dollar against all other currencies in the Index, but also to the higher costs of logs in local currencies. According to the Wood Resource Quarterly (WRQ), the biggest price adjustments in local currencies since early 2009 have occurred in Latvia (+58%), Poland (+39%), Japan (+36%), Russia (+35%) and Germany (35%).

Countries in Western Europe, Japan and China currently have the highest sawlog prices of the 21 regions tracked by the WRQ, while prices in Western Canada, Chile, US South and Russia are lower than the global average. This ranking has not change much the past few years with the exception of the Baltic States of Latvia and Estonia, which now are below the GSPI after having been above the global average three years ago.

Clariant, a world leader in specialty chemicals, announced that the issuance of totally EUR 365 million in the German market for certificates of indebtedness ("Schuldschein"). The four certificates have a term of 3 years (EUR 242 million) respectively 4.5 years (EUR 123 million) each with fix or float coupons.

The interest to be paid for the certificates of indebtedness is based on six months Euribor (variable tranche) or mid-swap (fixed tranche), respectively, plus a credit margin premium (spread). Total interest costs per tranche are between 3.85% and 4.35% p.a. at present.

Following the emission of two Swiss franc bonds since May of 2011 - CHF 200 million maturing in 2015 and CHF 100 million maturing in 2017 - Clariant has further improved its maturity profile with the emission of these certificates. The proceeds are for general corporate purposes, specifically for the optimization of both debt financing structure and maturity profile.

Joint arrangers of the very successful issue were Bayern LB and LB Hessen-Thüringen.

Ashland Inc. (NYSE: ASH) today announced that on Wednesday, Nov. 9, at 9 a.m. EST, it will conduct a live webcast of its fourth-quarter earnings presentation to the investment community. The presentation will cover results for the quarter ended Sept. 30, 2011, the fourth quarter of Ashland's 2011 fiscal year. The company's results will be issued earlier in the day.

In attendance at the presentation will be: James J. O'Brien, chairman and chief executive officer; Lamar M. Chambers, senior vice president and chief financial officer; Samuel J. Mitchell, president, Ashland Consumer Markets; John E. Panichella, president, Ashland Specialty Ingredients; and David A. Neuberger, director, Investor Relations.

The webcast, which will last approximately 60 minutes, will be accessible through Ashland's Investor Relations website, http://investor.ashland.com, along with supporting materials. Following the live event, an archived version of the webcast and supporting materials will be available on the Ashland website for 12 months. Minimum requirements to listen to the webcast include the free Windows MediaPlayer software and a 28.8 Kbps connection to the Internet.

Kemira has sold today Oy Galvatek Ab to Finnish capital investment company Folmer. Galvatek's services include planning surface and waste water treatment plants, project management and providing of maintenance services. Galvatek's headquarter is in Lahti, Finland and its subsidiary is located in Poland.

The transaction does not have any significant impact on Kemira's financial figures, and the parties have agreed not to disclose the transaction price.

In accordance with its strategy, Kemira focuses on water chemistry and on products and applications for water-intensive industries, such as pulp and paper, oil and mining, municipal and other industrial water treatment.

IPX India 2012 is an international high quality exhibition and conference for suppliers, to the fastest growing pulp and paper industry in the world today-India. The event features not only the highest-level quality exhibition but also an adjacent top-level technical conference and business-oriented seminars, panel sessions as well as social activities.

IPX India will serve as an exclusive platform where suppliers and buyers can meet and exchange the latest industry news. The event will ensure that exhibitors’ products and services get the maximum exposure in the Indian pulp & paper industry, and will help to create valuable contacts with existing and potential customers. IPX India will be the perfect opportunity to tap your growth in the Indian pulp and paper industry, which offers tremendous scope for striking profitable business deals within the growing Indian economy. It offers the opportunity to network with top-level managers and executives from India’s paper industry, who possess the decision-making authority and the budget to purchase technology, products and services.

About the Industry

The Indian Paper Industry is the fastest growing pulp and paper market in the world today. With an estimated turnover of approximately USD 3, 4 billion in 2010, the Indian pulp and paper industry is growing on a strong demand base with several expansion plans underway.

The demand for newsprint and writing & printing paper is expected to grow with 9% per year and the total Indian paper production is expected to grow from 9 million tonnes in 2010 to 14 million tonnes in 2014.

India accounts for nearly 15% of the world population but consumes only 1 % of the world paper consumption. By 2015, the consumption of paper in India is expected to double from the current 8 million tones. At the moment, the paper consumption in India is just 7 kgs per capita, as compared to the global average of 50 kgs.

The potential implications are enormous; the impact of just 1 kg increase per capita consumption would lead to an increase in demand by 1.1 million tonnes of paper. According to many industry experts, India will definitely be one of the most interesting markets for the global pulp and paper industry in the coming years.

About the Venue

Mumbai – the perfect point of entry

For companies in the Indian paper industry, Mumbai - situated on the western coast of the Indian sub-continent - is the perfect point of entry for this market. Mumbai is the business capital of India and a large number of foreign companies have already settled here (the region attracts 25% of the foreign investment in India) and the administration is familiar with the needs and wishes of new investors.

The international traffic links are first class and there are good connections to the other industrial centres throughout the country. Mumbai is also famous for many other things, including its thriving Bollywood film industry, teeming bazaars, colonial-style buildings, art-deco structures and a superb choice of restaurants, often also being rated as the dining capital of India.

Exhibition Venue

The Bombay Convention and Exhibition Centre (BEC), the venue for IPX India 2012, is one of the largest exhibition centres in India, which hosts a variety of prestigious international exhibitions. BEC is ideally located, within a stipulated 10 minutes drive from the national as well as international airports and estimated 20 minutes from the Mumbai city centre. Mumbai’s Chhatrapati Shivaji International Airport is serviced by numerous international airlines from all over the world. There are numerous international hotels in the vicinity.

Travel Connections

By rail

Nearest railway station:
Goregaon Western Railway - 1 km

By air

Domestic - Santacruz Airport - 10 minutes drive
International - Chhatrapati Shivaji Airport (Sahar) - 10 minutes drive

About the Organisers

Founded in 1968, Adforum is the world's leading organiser of exhibitions for the pulp and paper industry. The company currently organises the world's largest exhibitions, the SPCI exhibition in Stockholm and the PulPaper exhibition in Helsinki as well as the China Paper exhibition in Beijing/Shanghai. Adforum is owned by Stockholm International Fairs and the Finnish Fair Corporation.




Inter Ads-Brooks Exhibitions (India) Pvt. Ltd. is a joint venture company between Inter Ads Exhibitions, India and Mack Brooks Exhibitions, U.K. Inter Ads-Brooks currently organizes leading international trade shows such as Aquatech India, Blech India, Exporail India, Fastener Fair India and Inter Airport India. The combined long-standing experience of the organisers uniquely positions them to organise a high-profile event and making it a grand success both for the visitors and exhibitors alike.