Stora Enso is planning to permanently close down Kopparfors Sawmill in Sweden by the end of 2011 due to several years of losses and no feasible options for improvement. The plan also includes closing down the pellet mill.

“Despite several years of focused efforts to turn around the losses of Kopparfors Sawmill, we have been unable to achieve the improvements needed in efficiency and profitability. The slowness of the recovery in markets combined with poor operational efficiency, high raw material costs, unfavourable exchange rates and lack of cost flexibility have kept Kopparfors loss-making. In our analysis, even in the most optimistic scenario, we can see potential for only marginal improvement,” says Hannu Kasurinen, EVP, Stora Enso Wood Products.

“This is of course a difficult message for our employees in Kopparfors. The closure would affect not only the people who work at Kopparfors Sawmill and the pellet mill, but also many people in the community. We will do everything we can in close co-operation with the local community and authorities to help every employee affected by the plans to find re-employment options.

“We are investigating alternatives for supplying our key customers and plan to utilise some of the sawmill and pellet mill machinery at other Stora Enso locations. The planned mill closure would not affect wood purchasing in Sweden.”

The Group will record a one-time non-cash fixed asset and working capital write-down of approximately EUR 20 million and in addition a restructuring provision with a cash impact of approximately EUR 9 million as non-recurring items in its first quarter 2011 operating profit. Based on 2010 annual figures the closure would reduce Stora Enso’s annual sales by approximately EUR 65 million but have no material impact on the Group’s annual operating profit. The planned closure will have a positive tax impact of approximately EUR 8 million in the first quarter of 2011.

Kopparfors Sawmill has an annual production capacity of 310 000 m³ of sawnwood, of which 150 000 m³ can be further processed by planing. The pellet mill has an annual capacity of 160 000 tonnes. Kopparfors has 110 employees.

The measures are subject to negotiations under the Swedish Co-determination Act (MBL).

Heatset web paper may be in short supply in Australia with the Japanese earthquake and tsunami causing serious damage to paper mills and infrastructure. Nippon Paper (NPI) who supplies around 100,000 tonnes a year to the Australian market was one of the hardest hit.

Nippon has ceased production at four of its seven mills due to a collapsed ceiling, an influx of sand and sediment as well as damage to stock and equipment.

A statement from the paper maker outlines that almost all the stock at its Ishinomaki mill seems to be damaged as well as half the stock at its Iwanuma facility.

Nippon says, “There is a concern that some problems regarding material procurement and product transportation will happen in some mills. From now on we do will do our best to confirm all our employee’s safety and damage of equipment.”

Wayne Stanistreet, general manager of sales and marketing at Australian Paper – which is owned by Nippon – said it was still early days to realise the affect on the local market, however with NPI exporting around 100,000 tonnes per year to the Australia market, the impact is likely to be significant.

He says, “NPI has published a list of all mills that have been affected, including those where production has stopped for the time being.

“With the damage to infrastructure the logistics will also be difficult so I think we can say we are not going to see volumes recover in the very near future, but it’s still early days and it would not be wise to make any predictions in relation to timelines at this stage.

“We have been in constant contact with all of our customers, who I must say have been extremely supportive.”

Also commenting, Bernard Cassell, managing director of CPI says while the full impact on Australian customers remains unknown, sheeted paper supply seems to have been spared the brunt of the damage.

He says, “A lot of mills have been shut down but from a CPI perspective only one mill has been seriously affected. I suspect it’s the light weighted coated grades, which will be ones affected and the gap left by Japan will have to be filled by Europe.

“I don’t think it will lead to an increase in sheetfed coated paper however the supply of light weight coated has the potential to be a significant problem, we will just have to wait and see how this disaster will influence prices.”

Ilim Group obtained consent from the Main State Expert Review Board to upgrade its Bratsk Mill. The project envisions the construction of a new cutting edge pulp cooking, washing and bleaching line, installation of a pulp dryer, new recovery and bark boilers, addition of a new woodyard and implementation of a number of other infrastructure-related projects. Annual capacity of the new fiberline will amount to 720,000 tons of bleached softwood market pulp.

The MSERB consent means that all process, technical and environmental solutions that are going to be used to implement the project fully comply with the Russian law.

The project approved by Ilim Group’s Board of Directors in April 2010 provides for complete modernization of the production facility with the best available technologies. After the project is completed, total pulp output in Bratsk will exceed 1 million tons. This will turn the Bratsk Mill into one of the world’s largest and most advanced softwood pulp manufacturers. The Mill’s products will be primarily targeted at the Chinese market.

Kadant Johnson Systems, a division of Kadant Johnson Inc., has expanded its audit services for dryer systems to now include water management studies for the wet end of the paper machine. The wet end water system audit service consists of a comprehensive evaluation of paper machine water systems, showering, and white water reuse.


"We are very encouraged by the positive responses that we have already received to this new offering from paper mills that are trying to reduce energy and water consumption," said Ken Hill, president of Kadant Johnson Systems. "Because paper drying and water systems are two primary areas of steam use during paper production, the addition of water system audits to our product line offers our customers greater insights into total paper machine steam use and was a natural extension of our dryer and steam system audit services."

The wet end optimization studies are offered through Kadant Johnson Systems with support from the Kadant Solutions Division and Kadant Johnson Inc. technical centers in Glens Falls, New York and Three Rivers, Michigan respectively.

Kadant Johnson Inc., a subsidiary of Kadant Inc., is a leading provider of rotary joints, precision unions, and dryer drainage and control systems to process industries, where we optimize heat transfer in rotating cylinders and integrate fluid-handling systems. Our Kadant Johnson Systems division, based in Lenoir City, Tennessee, provides comprehensive dryer system audits, wet end optimization studies, and dryer drainage systems and controls.

Kadant is a leading supplier to the global pulp and paper industry. Our stock-preparation, fluid-handling, doctoring, and water-management equipment and systems are designed to increase efficiency and improve quality in pulp and paper production. Many of our products, particularly in our fluid-handling product line, are also used to optimize production in other process industries. In addition, we produce granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Westford, Massachusetts, with revenues of $270 million in 2010 and 1,600 employees in 16 countries worldwide. For more information, visit www.kadant.com.

Ahlstrom Corporation, a global high performance materials company, has today agreed to sell the buildings, land and assets of its Ascoli plant in Italy to Eurocomet.

The value of the transaction is approximately EUR 4.0 million euros, of which the land and buildings comprise EUR 2.5 million. Ahlstrom will book a non-recurring gain of approximately EUR 2.0 million in its second-quarter financial results.

Ahlstrom permanently closed the Ascoli plant and ceased the production of one-side coated papers there in early 2008 due to unsatisfactory profitability. The parties have agreed that Eurocomet will develop the site for other purposes than paper making and the machinery will be scrapped. Ahlstrom will keep some of the machinery parts.

The transaction is subject to customary closing terms and is expected to be completed in the second quarter of 2011.

An independent economic assessment of the Bell Bay pulp mill has found that the Tasmanian economy would be close to $10 billion better off as a result of Gunns Limited's investment in the northern Tasmanian mill.

The Insight Economics report, Building a Pulp Mill at Bell Bay, released to the public by Gunns today, detailed the economic impact of building and operating the mill, compared to a business-as-usual scenario of the mill not going ahead.

Related stories:

* Gunns receives approval for Bell Bay pulp mill from Australia federal government - March 10, 2011
* Gunns receives one-week extension by Federal Government regarding approval of Bell Bay pulp mill - March 3, 2011
* UPM latest rumored jv partner for Gunns pulp mill in Australia - February 9, 2011

It was done in conjunction with Monash University's Centre of Policy Studies, due to the credibility of the centre's regional economic modelling expertise and its independence.

Key findings were:

• Total value of the project to Tasmania's Gross State Product would be $9.9 billion to 2030, a return of four times the original investment

• Total value to Northern Tasmanian region (which includes Launceston and the Tamar Valley) would be $3.7 billion and $2.1 billion to the North West region.

• Total value to national economy would be $2.4 billion to 2030

• Total number of additional full-time jobs created in Tasmania would be 3,100 during each year of operation of the mill, in addition to the existing employment in the industry.

• The mill would generate over 11 per cent higher annual employment each year of operation for Northern Tasmania than if the mill did not go ahead

• There would be a flow-on factor, due to the supply of goods and services, of 12 times the direct employment in the project

• The mill would double the value of woodchip exports to be captured by the Tasmanian economy

• The mill would generate $597 million in taxation revenue for the Tasmanian Government and $391 million to the Australian Government, and

• If Tasmania proceeded with the mill, it would provide a substantial buffer for Tasmania against the ‘two-speed' economy generated by the mainland resources boom.

Gunns' Managing Director, Mr Greg L'Estrange, welcomed the report and its ability to shed some much needed light onto the importance of the pulp mill to the Tasmanian and regional economy.

"The report indicates very strongly that the pulp mill will be the single greatest shot in the arm of the Tasmanian economy in a very long time, and for a long time into the future,"he said. "What this means is that Tasmanians need to think hard about the opportunity that this pulp mill presents.

"This report makes it clear that Tasmania has a lot to gain from this pulp mill. The mill opponents believe Tasmania has a lot to lose.I believe we need to ensure we maximize the gains of the project by positively impacting on businesses in Tasmania. It is not about one sector at the expense of another but how to ensure a healthy coexistence of both. This new study has concluded the impact is better than we previously thought, and importantly it provides an enduring economic basis for the whole Tasmanian economy, not just the forestry sector.

"This is very important as the resources boom in other States pushes up the exchange rate and threatens to create a two speed economy. Gunns' task is to find a way to secure the enormous economic benefits of the mill and work even harder than we already are to mitigate what some people see as the risks," Mr L'Estrange said.

Last week Gunns was granted final environmental approval to build the pulp mill under a stringent state and federal environmental monitoring and reporting regime. It embedded in the permit conditions Gunns' commitment that the mill would source its feedstock from 100 per cent plantation sources.

Gunns had made this commitment as a result of negotiations with key Tasmanian environment groups, and followed Gunns' stated withdrawal from native forest logging.

"This mill is about jobs. It is about a major boost to the Tasmanian economy, and it is about reinvigorating the economic fortunes of Launceston and George Town as the host community, in particular," Mr L'Estrange said. "The Tasmanian economy needs this mill and the forestry income that supports it, just as it needs its tourist and primary industry economic inputs."

Mr L'Estrange said Gunns had also commissioned a study looking at maximising local benefits and minimising potential negative impacts. It was expected to be completed shortly.

Just at the end of February 2011 SCA Hygiene Products has started up with Toscotec the major rebuild of the tissue machine PM 3 in Mannheim (Germany).

PM 3 was a Voith suction breast roll machine dated 1971 with grooved YD of 5000 mm dia. The machine featured a paper trim width at the reel of 5200 mm with a max running speed before the rebuild of 1400 mpm with a limitation on production of low basis weights.

The project target was mainly to increase the machine speed up to 2000 mpm maintaining the same trim width and to improve paper quality, making softer products, as well as the runnability and maintenance. The stock preparation system and the machine was upgraded in order to have possibility to manage products with different furnish.

Toscotec scope of supply includes an AHEAD 2.0 L crescent former with a multilayered headbox TT Headbox ML - T featuring Consistency Profiling, new felt run design in cantilevered solution, upgrade of the existing two presses configuration, new YD doctoring, tail threading system, full width turn up, TT Reel H+ with advanced solution on winding operations. Toscotec also supplied the rebuild of the stock preparation plant, new water system, the complete new approach flow system for double layers solution, shaft pulling and core handling system, upgrade of the steam & condensate system with innovative energy savings solution, electrification and control system. The project has been managed on the turn key basis by Toscotec providing also whole engineering services and erection. Start up has been completed according to the time schedule.

With this rebuild the machine in Mannheim will be one of the most modern conventional machines in Europe featuring technology that will allow to reduce energy and fibres consumptions and to produce high quality soft tissue.

The good cooperation between the Toscotec and SCA teams has driven the positive project result in a short time from paper to paper considering the high level of difficulties to manage such a kind of a major rebuild in an existing building .

Vaahto Pulp & Paper Machinery has received an important order from Stora Enso Imatra mill in Finland. The pulp dryer of the chemical pulp mill will be revamped for higher production output and better runability. Imatra pulp mill produces both softwood pulp and hardwood pulp, and additionally the pulp dryer is used for CTMP production.

Vaahto´s supplies include water removal elements and suction roll technology as well a new felt loop with needed guide rolls, doctors, showers and stretchers. Honeywell Devronizer steam box is an important part of the rebuild concept.

The wire width of the machine is 3600 mm and design speed 300 m/min. The maximum daily output of the dryer can reach 1300 tons.

Stora Enso knows Vaahto equipment well in advance. Vaahto has recently supplied technology to most of Imatra machines including liquid packaging board machines BM1, BM4 and BM5 as well art board machine BM2.

Equipment will be manufactured in Vaahto´s workshops in Hollola and Tampere in Finland. The start-up is scheduled for November 2011. The value of this kind of order amounts usually between 2 and 3 million euros.

Vaahto Pulp & Paper Machinery is part of Vaahto Group, which is a globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery.

Domtar Corporation is pleased to announce that it has reached a settlement in its dispute with the City of Windsor regarding the tax evaluation of Domtar's Windsor mill.

The agreement between the two parties is based on application of the Court of Québec judgment regarding the 2006-2007-2008 roll. The judgment by the Administrative Tribunal of Québec ratifies the agreement between the parties, to wit, to apply to the Court of Québec judgment of September 27, 2010 to the 2009-2010-2011 roll.

In October 2010, Domtar informed the municipality that it wished to come to an agreement. "We are satisfied with the work done by the experts on both sides to apply the clauses in the judgment on the 2009-2010-2011 roll and pleased that the tribunal has ratified our agreement. We can now turn the page and continue our efforts to position the mill for the future," said Martin Lorrion, Vice-President, Operations - Domtar Region 1.

Following the settlement, Domtar withdrew its originating motion for judicial review before the Québec Superior Court for the 2006-2007-2008 roll.

The Nomination Committee of ÅF AB (publ) proposes that Anders Narvinger be elected as a new member of the company's Board of Directors. Anders Narvinger has previously held the post of President and CEO of ABB Sweden and is currently on the board of a number of listed companies. The Nomination Committee motivates its proposal by pointing to that fact that "Anders Narvinger will bring to the board extensive industrial and international experience".

The Nomination Committee also proposes the re-election of Ulf Dinkelspiel as Chairman of the Board, and of Patrik Enblad, Eva-Lotta Kraft, Björn O Nilsson, Helena Skåntorp, Anders Snell and Lena Treschow Torell as directors of the company. Jon Risfelt has chosen not to seek re-election.

Anders Narvinger was born in 1948. He holds a degree in Engineering from the Faculty of Engineering at Lund University and an Economics degree from Uppsala University. Anders Narvinger has previously been President of ABB Sweden. His current appointments include the chairmanships of TeliaSonera AB, Alfa Laval AB, Trelleborg AB and Coor Service Management. He is a director of PernodRicard SA and JM AB. Anders Narvinger is a member of the Royal Swedish Academy of Engineering Sciences and is Vice Chairman of the Swedish National Committee of the International Chamber of Commerce, ICC.

The complete proposal of the Nomination Committee will be presented in the invitation to attend the annual general meeting of shareholders in ÅF AB. The annual general meeting will be held at the company's head office in Solna on 2 May 2011 from 17.00 (5 p.m.) onwards.