Stora Enso has signed an agreement to establish a joint venture called Bulleh Shah Packaging (Private) Limited with Packages Ltd. of Pakistan. Stora Enso’s initial shareholding will be 35% with a commitment to increase the shareholding at the agreed value to 50% at a later stage subject to certain conditions being met. The joint venture will include the operations of the Kasur mill and Karachi plant currently owned by Packages Ltd.

The joint venture will to a large extent provide packaging products to key local and international customers in the fast-growing Pakistani market. The joint venture will employ about 950 people and its sales are forecast to be USD 130 million (EUR 99 million) in 2012.

The agreed value for 100% of the joint-venture company is approximately USD 108 million (EUR 83 million) on a cash and debt free basis. The total consideration can be up to USD 125 million (EUR 96 million), including an additional maximum performance compensation based on the financial results of the second half of 2012 and the first half of 2013. As part of the agreement, both parties are committed to a substantial USD 135 million (EUR 103 million) investment programme during 2013 and 2014 to develop the business further. The joint venture is EPS accretive and will over time after the new investments exceed Stora Enso’s ROCE target of 13%.

“This is an example of Stora Enso’s investments in value-creating growth markets. The Pakistani market, with growing demand for packaging products and paperboard, offers an attractive growth opportunity for us and the joint venture will enable us to increase our capability to serve our key customers,” says Mats Nordlander, Executive Vice President, Renewable Packaging Business Area.

The joint-venture transaction is expected to be completed during the first quarter of 2013, subject to competition and regulatory approval and other customary transaction conditions.

Last Friday, Kelheim Fibres hosted the district group meeting for the Bavarian branches of Zellcheming and VPM (Paper Association Munich).

This year’s meeting was all about speciality papers: the presentations by members concentrated on different aspects of that topic - and Dr. Frank Miletzky, chairman of Papiertechnische Stiftung, ventured a look at the future of paper. New materials or combinations of materials, new production techniques and last but not least new, demanding applications are considered to be the future challenges for the paper industry - as well as its future opportunities.

The day’s highlight for the more than 30 visitors was the plant tour of Kelheim’s viscose fibre production and in particular the demonstration of the in-house paper competence centre. Kelheim Fibres, manufacturer of viscose speciality fibres for - amongst others - paper applications, operates a pilot plant with inclined wire technology.

This plant serves Kelheim’s R&D team, yet at the same time it offers a unique service for Kelheim’s customers from the paper industry. Here, smaller amounts of new papers can be produced and tested, without disturbing the customer’s regular production flow.

As Walter Roggenstein, head of Kelheim’s R&D, together with his team presented the pilot plant in action, the advantages of viscose fibers in papers became clear: viscose fibres enhance the physical properties of papers, such as a paper’s strength, and can lend the paper product additional functionalities.

Domtar will be joining businesses and individuals around the globe to participate in the Rainforest Alliance's second annual Follow the Frog Week that kicks off today, September 17, and runs through September 23.

Follow the Frog Week is an international social media campaign that encourages shoppers to help create a healthier planet by choosing products that feature the Rainforest Alliance Certified™ green frog seal. This trustmark, found on coffee, tea, chocolate, fruit, furniture and paper, is recognized by consumers globally as a symbol of sustainability. Products featuring the seal come from farms and forests that meet a rigorous set of criteria that protect wildlife, soils and waterways and the well-being of workers, families and communities.

"We strive to be the preferred supplier of environmentally sound forest products to our customers, while leaving the smallest environmental footprint and helping them reduce theirs," notes Lewis Fix, Vice-President of Sustainable Business and Brand Management. "And, we're happy to participate in this campaign to promote Rainforest Alliance Certified™ products."

Domtar has worked together with the Rainforest Alliance for many years on responsible paper production and fiber sourcing. In 2005, Domtar and the Rainforest Alliance signed a collaborative agreement when the EarthChoice product line was launched, later renewing the agreement in 2009. Rainforest Alliance applauds the forest management practices that support the Domtar EarthChoice® product family. All Forest Stewardship Council ™ (FSC®) certified Domtar EarthChoice products proudly bear the Rainforest Alliance Certified™ seal.

For more information on Follow the Frog Week please visit: www.rainforest-alliance.org/followthefrog

For more information on Domtar's sustainability commitment and strategy, please visit: http://www.domtar.com/en/sustainability/index.asp

SOURCE DOMTAR CORPORATION

Duropack Group with its headquarters in Vienna, the leading producer of corrugated board packaging in East- and Southeast-Europe, has signed a contract today to sell its operations Duropack Wellpappe in Ansbach (Germany) and Duropack Bupak in Ceske Budejovice (Czech Republic) to Mondi Group. Both operations produce corrugated board packaging. In addition, operations in Czech Republic also produce corrugated base paper made from recycled paper. The Czech facility is closely related to the Bavarian one, regarding production unit and integration. All employees of both operations will be taken on by Mondi Group.

• Contract of sale of Duropack Wellpappe Ansbach and Duropack Bupak to Mondi Group signed
• All employees of both operations will be taken on by Mondi Group
• Sale strengthens the focus of Duropack group on East- and Southeast-Europe and on its core business, packaging
• “Our strategy is consequently focused on East- and Southeast-Europe. The sale of our operations in Germany and the Czech Republic further strengthens our profile and allows us to focus entirely on our core markets and core business, packaging”, says Peter Szivacsek, CEO of Duropack Group.

“Our strategy is consequently focused on East- and Southeast-Europe. The sale of our operations in Germany and the Czech Republic further strengthens our profile and allows us to focus entirely on our core markets and core business, packaging”, says Peter Szivacsek, CEO of Duropack Group. In 2010, Durpack already strengthened its geographic focus with the acquisition of the majority of the shares in Croatian corrugated base paper and packaging producer Belišce.

The final closing of the deal is subject to approval by the relevant authorities and the customary closing conditions.

source: Duropack Group.

OMNOVA Solutions (NYSE: OMN) will hold its conference call to discuss third quarter results on Wednesday, September 26, 2012 at 11:00am ET. The call will be hosted by OMNOVA Solutions Chairman and Chief Executive Officer Kevin McMullen. OMNOVA will release earnings on the evening of September 25 for the quarter ending August 31, 2012.

The call will be webcast and participants may log on from OMNOVA's website at www.omnova.com. OMNOVA will archive the call on its website until noon ET, October 17, 2012. Or, to listen to a digitized telephone replay (1:00pm ET, September 26 until 11:59pm ET, October 17, 2012), callers should dial:

Mayr-Melnhof Packaging acquires Colombian Plegacol and creates a new Colombian market leader in folding cartons

With Plegacol, Mayr-Melnhof Packaging has acquired a further leading Colombian folding carton producer located in Santiago de Cali. The company generates annual sales of approximately EUR 15 million.

Upon official authorization of this transaction operations of Plegacol and Gráficas Los Andes S.A., Cali, the largest Colombian folding carton manufacturer, in which MM Packaging already holds a 20 % shareholding and an option right to 100 %, will be concentrated to form a new Colombian market leader in folding cartons. This entity will generate sales of about EUR 30 million with around 400 employees and convert approximately 16,000 tons of cartonboard p.a.

For MM Packaging the acquisition of Plegacol constitutes already a third step into Latin America subsequent to the acquisition of the Chilean market leader Marinetti in 2010 and an interest in Gráficas Los Andes S.A earlier this year. "Our goal is to follow our customers into future markets and to create a Latin American network of highly efficient folding carton plants, which we will develop according to best practice of the MM Group", outlines CEO Wilhelm Hoermanseder the long term strategy.

Approval of the acquisition of Korsnäs Aktiebolag -
As previously announced, Billerud AB (publ) ("Billerud") has on 19 June 2012 entered into an agreement with Investment AB Kinnevik ("Kinnevik") to acquire all shares in Korsnäs AB ("Korsnäs"). The acquisition of Korsnäs was, according to the agreement, conditional upon approval by the shareholders of Billerud at a General Meeting and upon approval of relevant competition authorities. The Extraordinary General Meeting held today resolved to approve the Board's decision to acquire Korsnäs on the terms and conditions set out in the proposal.

Relevant competition authorities have not yet announced their approval of the transaction. Completion of the transaction will take place as soon as this condition is fulfilled.

Authorization for the Board to execute a new issue of shares to be issued as part of the purchase price in the acquisition of Korsnäs
The Meeting resolved to authorize the Board, until the next Annual General Meeting, to resolve on a new issue of shares to be used as part of the purchase price in the acquisition of Korsnäs. By making use of the authorization, new shares equivalent to 25 percent of the outstanding shares in Billerud, before the rights issue with preferential rights for the shareholders (see below), may be issued. Kinnevik shall be solely entitled to subscribe for shares in the new issue and shall as payment for the shares (contribution in kind) contribute all shares in Korsnäs to Billerud. The Meeting's resolution is conditional upon the approval of relevant competition authorities.

Authorization for the Board to execute an issue of shares with preferential rights for the existing shareholders
The Meeting resolved to authorize the Board, until the next Annual General Meeting, to resolve on a new issue of shares with preferential rights for the existing shareholders for the purpose of using the net proceeds to repay part of existing outstanding loans of BillerudKorsnäs. By making use of the authorization, the Board shall have the right to execute the share issue with total proceeds of approximately SEK 2 billion through the issuance of, no more than, so many shares that at any time are within the maximum number of shares determined in the Articles of Association and thereby increase the share capital by, no more than, an amount that at any time is within the maximum share capital determined in the Articles of Association. The Meeting's resolution is conditional upon approval of relevant competition authorities.

Information with respect to subscription price, subscription period etc. will be announced in connection with the Board's resolution to issue new shares by virtue of this authorization.

Amendments to the Articles of Association
The Meeting resolved to amend the minimum and maximum share capital and number of shares stated in the Articles of Association in order to adjust the limits to the resolved share issue authorizations. The Meeting also resolved to amend the company's name to BillerudKorsnäs Aktiebolag (publ). The amendment of the company name is conditional upon completion of the transaction.

Changes to the Board of Directors
The Meeting resolved that the number of Board Members shall be eight with no deputies. Hannu Ryöppönen, Mia Brunell Livfors, Wilhelm Klingspor and Mikael Larsson was elected as new Board Members. The persons who currently constitute the Board of Directors of Billerud, except Jan Homan, Lennart Holm, Gunilla Jönson and Michael M.F. Kaufmann, have declared that they will resign as Board Members once the appointment of the new Board Members takes effect. The Meeting elected Hannu Ryöppönen as Chairman of the Board. The resolution of the Meeting regarding the changes to the Board of Directors shall not be valid until Billerud has closed the acquisition of the shares in Korsnäs. In accordance with the Meeting's resolution, the Board will, once the resolution becomes effective and until the close of the next Annual General Meeting, consist of the Board Members Hannu Ryöppönen (Chairman), Mia Brunell Livfors, Jan Homan, Lennart Holm, Gunilla Jönson, Michael M.F. Kaufmann, Wilhelm Klingspor and Mikael Larsson.

Changed fees to the Board
The Meeting resolved to amend the Board fees, previously adopted by the Annual General Meeting, as a result of the combination with Korsnäs. Board fees shall be paid with SEK 400,000 to each Board member elected by a shareholders' meeting and SEK 1,000,000 to the Chairman of the Board. Remuneration for committee work shall be paid with SEK 150,000 to the Chairman of the Audit Committee and with SEK 75,000 to each other member of the committee and with SEK 50,000 to the Chairman of the Remuneration Committee and with SEK 25,000 to each other member of the committee. Further, remuneration shall be paid with SEK 50,000 to each member of the Integration Committee, a committee formed specifically for the integration between Billerud and Korsnäs, which committee shall be of a temporary nature.

The new remuneration levels are on a yearly basis and will be paid in proportion to the length of the mandate period. The Meeting's resolution regarding changes to the Board fees as set out in the foregoing shall not be valid until Billerud has closed the acquisition of the shares in Korsnäs.

The costs of wood fiber for many pulp mills throughout the world continued to fall in the 2Q/12 and were at their lowest levels in over a year, according to the Wood Resource Quarterly. The greatest declines were seen in Brazil, Australia, Russia, Spain and US northwest, and Eastern Canada.

Wood fiber costs for the world’s pulp mills were down again in the 2Q/2012. Prices for wood chips and pulplogs in both local currencies and in US dollars fell in most of the 17 regions tracked by the Wood Resource Quarterly.

Uncertainty in demand for pulp, lower pulp and paper prices, reduced market pulp production and a healthy supply of sawmill residuals were all factors that put downward pressure on wood fiber prices this spring and early summer. The Softwood Wood Fiber Price Index (SFPI) fell by 4.1 percent from the 1Q/12 to $100.54 per oven-dry ton (odmt). This was the biggest quarter-to-quarter drop since 2008. The biggest price declines for hardwood fiber from the 1Q/12 to 2Q/12 occurred in Brazil, the US Northwest, Australia and Eastern Canada.

Hardwood fiber prices have fallen even more than softwood fiber prices this year. The Hardwood Wood Fiber Price Index (HFPI) was down 4.4 percent to $104.88/odmt from the previous quarter. The HFPI has now fallen for three consecutive quarters since the all-time high in the 3Q/11, and in the 2Q/12 was at the lowest level in two years. The largest price reductions from the 1Q/12 occurred in Brazil, Russia and Australia.

Although Brazilian pulplog prices have not changed much in the local currency, they have fallen dramatically in US dollar terms as the Real has weakened the past year. Eucalyptus pulplog prices in the 2Q/12 were down 28 percent from the same quarter in 2011, while pine pulplog prices declined 26 percent from a year ago. The recent dramatic price reductions of pulplogs have resulted in Brazilian pulpmills enjoying among the lowest wood costs of all regions tracked by the WRQ, despite being above the global average as recent as 12 months ago.

Wood fiber costs were also down throughout Europe in the 2Q, with the smallest declines (in US dollars) in Finland (-1.3%) and Norway (-3.6%) and the biggest reductions in Spain (-15%) and France (-7.7%). In most markets, wood fiber prices have come back down to where they were in 2010.