HengAn sets speed record at 2,000 m/min for Advantage ViscoNip press at Weifang mill

The Metso-supplied Advantage DCT 200 tissue production line, equipped with the unique Advantage ViscoNip long-nip press, has been running at a record breaking speed of 2,000 m/min on average for more than one month at the HengAn mill in Weifang, Shandong province, China.

“We would like to express our appreciation to fellow workers in the front line of Metso and our company for working together as one to reach this outstanding result,” says Wu Hanxing, General Manager, Shandong HengAn Paper Co.,Ltd. “This press unit provides high machine speed and continuous production due to no downtime, giving our corporation an even stronger position in the market.”

HengAn operates an Advantage ViscoNip press also in their PM 8 line at their mill in Changde City, Hunan province, and in their PM 6 line at the Anhai mill in Fujian province.

Operating an Advantage ViscoNip press yields also substantial savings in drying energy consumption. For an Advantage DCT 200 tissue line such as the one HengAn operates in their Weifang mill, it means a saving in energy consumption corresponding to EUR 750,000 a year.

The ViscoNip pressure unit conforms to the shape of the Yankee, and produces a uniform nip load over a very wide range of linear loads from 70 to160 kN/m. Compared with a rigid roll or metal shoe against the Yankee, the Advantage ViscoNip press is flexible and accommodating. It delivers the pressure where it is needed, in a uniform manner. This press technology delivers a more uniform profile compared to a suction roll press and the higher sheet adhesion results in improved softness and bulk.

The ViscoNip technology was launched in 2005, and a growing number of press units are now being operated by tissue makers around the world, making the ViscoNip unit something of an industry standard.

Three more Advantage ViscoNip press units will be started up during 2012 in China: at Fujian HengLi Paper PM 2 in Nanan City, at Xiamen Xinyang Paper PM 1 in Xiamen City, and at Garven Sanitary Products PM 1 in Fyzhou city, all three in Fujian province.

Wu Hanxing, General Manager, Shandong HengAn Paper Co.,Ltd receives an award for the 2,000 m/min speed record for the Advantage ViscoNip press on their PM 10 tissue machine in Weifang from Anders Björn, President, Metso Paper Karlstad AB. Also present were Ren Rongwang, Vice Chief Engineer, HengAn Group (far left) and Leif Forsberg, Senior Vice President, Metso (far right).

HengAn is a leading, fast-growing Chinese consumer product company with a nationwide sales and distribution network. It is a fully owned subsidiary of HengAn International, whose shares are listed on the Hong Kong stock exchange. The company’s turnover in 2010 was approx. EUR 1.3 billion and the number of employees 21,000.

UPM is planning production curtailments and measures to improve efficiency for timber and further processing businesses

UPM Timber and UPM Living business units are to begin co-operation negotiations concerning production curtailments for the first quarter of 2012 and measures to improve production efficiency.

“Business has been negatively affected by a decrease in demand, weak cost competitiveness and the overcapacity of sawn timber and further processed wood products in Europe. The aim of the plan is to improve the long-term cost competitiveness in the business areas of sawn timber and further processed wood products,” states Ilkka Ylipoti, Senior Vice President, UPM Timber.

The negotiations concerning the efficiency improvement of production will begin at Aureskoski and Lappeenranta, in Finland, and at Pestovo, in Russia. If the planned rationalisation measures are carried out, the number of employees will be reduced by, at most, 59 people.

The negotiations concerning the production curtailments of the first quarter of 2012 will be held at all the Finnish sawmills and further processing mills apart from the Heinola further processing mill. The length of the temporary lay-off periods caused by possible production curtailments will vary by unit, but they will not last longer than 90 days. The production curtailment negotiations concern 554 people in Finland.

UPM Plywood adjusts the production when needed

Co-operation negotiations started at the end of October regarding adjustment of plywood production in Finland have been completed. Based on the negotiations, the company has decided to adjust production by lay-offs totalling no more than 90 days by the end of 2012 at Joensuu, Jyväskylä, Ristiina and Savonlinna plywood mills when needed.

“Timing and duration of the lay-offs will be decided mill-by-mill based on the market situation and they will, if executed, cover the mills’ personnel as a whole.  The mills’ power plants and the Savonlinna investment project are left outside the adjustment measures,” says Petri Parjanen, Director of Human Resources, UPM Plywood.

Nalco Holding Company, has announced that it has been informed that the proposed merger between Nalco and Ecolab Inc. has been cleared by the Chinese Ministry of Commerce (MOFCOM). The MOFCOM clearance is the last of the regulatory approvals required to complete the merger.

Shareholders from both Nalco and Ecolab overwhelmingly approved the merger of the two companies on November 30, 2011.  The completion of the merger remains subject only to customary closing conditions, and Nalco anticipates that the parties will proceed to complete the merger effective today.

About Nalco

Nalco is the world's largest sustainability services company focused on industrial water, energy and air applications; delivering significant environmental, social and economic performance benefits to our customers. We help our customers reduce energy, water and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line. Together our comprehensive solutions contribute to the sustainable development of customer operations. Nalco is a member of the Dow Jones Sustainability World and North America Indexes. More than 13,000 Nalco employees operate in 150 countries supported by a comprehensive network of manufacturing facilities, sales offices and research centers to serve a broad range of end markets. In 2010, Nalco achieved sales of $4.25 billion. For more information visit www.nalco.com. 

Resolute Forest Products has issued its 2010 Sustainability Report, reviewing Company performance in key areas such as environmental impact, stakeholder engagement, product stewardship, fiber sourcing, community relations, human resources, and health and safety.

This year's report is the first prepared by the Company using the G3 guidelines of the Global Reporting Initiative (GRI), one of the world's most broadly accepted standards for accountable and transparent sustainability reporting.

"I'm proud of how far Resolute has progressed in becoming a stronger, more sustainable organization, but we know we need to keep doing better year after year," said Richard Garneau, President and Chief Executive Officer. "By focusing on the three pillars of sustainability - environmental, social and economic - we will improve our competitiveness, enhance our reputation and be an environmental supplier of choice. And GRI reporting provides a framework to improve the accountability and transparency of our approach to sustainability."

In preparing the report, Resolute conducted an extensive analysis to identify sustainability issues deemed most important by stakeholders. While the analysis found that overall Company performance has been improving steadily over the years, further action was required to manage some key issues. To address these matters, the report includes a series of sustainability commitments to be tackled by the Company, including among others:

• Climate Change: achieve a 65% absolute reduction in scope 1 and 2 greenhouse gas emissions by 2015 over the 2000 base year.
• Forestry and Fiber: increase Forest Stewardship Council (FSC) certification of managed woodlands from 18% in 2010 to 80% by 2015.
• Health and Safety: reduce the Occupational Safety and Health Administration (OSHA) incident rate to 1.0 or below, with the ultimate goal of zero incidents, zero injuries throughout the Company.
• Employees: successfully ensure the next generation of the Company's workforce, with the goal of recruiting between 2,500 and 3,500 employees over the next three years.
• Communities: rebuild strong relationships in operating communities.

For a copy of the report and for more information on Resolute Forest Products' approach to sustainability, visit the Company's website at www.resolutefp.com/publications.

Nalco Holding Company (NYSE: NLC) announced that its stockholders voted to adopt the previously announced merger agreement dated July 19, 2011 with Ecolab Inc. (NYSE: ECL). The approval came at a special meeting held today in Naperville, Ill. More than 99.9 percent of the votes cast and 74 percent of shares outstanding were voted in favor of the transaction. 

Fortress Paper Ltd. has announced that it has initiated the final stages of the conversion project at its Fortress Specialty Cellulose Mill. The mill has commenced its start-up phase with final process testing, which will include cold and hot water trials, together with the testing of safety systems scheduled to occur over the coming days. Production of dissolving pulp beginning with wood chips cooking is expected to commence shortly thereafter.

The minor delay in the scheduled completion of the conversion project has resulted from: (1) the previously announced unexpected walkout in October of construction employees of contractors engaged by the Company; (2) the extra time subsequently required upon the return of the workers to fully ramp-up construction activities at the site; (3) completion of identified improvements to infrastructure relating to buildings, supports and the chip tower inter-connection; and (4) implementation of enhancements to the mill’s safety and control systems.

Chad Wasilenkoff, Chairman and Chief Executive Officer of Fortress Paper, commented: “We look forward to the imminent production of dissolving pulp, which will signify an important milestone in the history of Fortress Paper. We believe that the implementation of supplemental process control testing will provide for a more efficient ramp-up to commercial production.”

The completion of the conversion project is currently materially on budget, with the exception of costs resulting from the unexpected walkout of construction workers which remain to be quantified. The cogeneration project at the Fortress Specialty Cellulose Mill is proceeding substantially on schedule, and is expected to be completed in the third quarter of 2012.

Clearwater Paper Corporation has announced that it has completed the sale of its Lewiston, Idaho, sawmill to Idaho Forest Group of Coeur d'Alene, Idaho.

The transaction included the sale of Clearwater Paper's sawmill, planer mill, dry kilns, and related assets along with log and finished goods inventories and timber under contract, in the aggregate amount of approximately $30 million. As part of the transaction, the two companies have entered into a long-term residual fiber supply agreement with the goal of delivering consistent supplies of chips and sawdust to Clearwater Paper's Lewiston pulp mill from Idaho Forest Group mills.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the U.S. and Canada. The company is a premier supplier of private label tissue to major retailers and wholesale distributors. This includes grocery, drug, mass merchants and discount stores. The company also produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's employees build shareholder value by developing strong customer partnerships through quality and service.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the aggregate amount of the transaction and the supply of wood fiber to Clearwater Paper. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, difficulties with the realization of the benefits expected from the proposed transaction; general economic conditions in the regions and industries in which Clearwater Paper and Idaho Forest Group operate; changes in the cost and availability of wood fiber used in the production of Clearwater Paper's products; changes in the United States and international economies; cyclical industry conditions; changes in freight costs and disruptions in transportation services; unanticipated manufacturing disruptions; changes in general and industry-specific laws and regulations; unforeseen environmental liabilities or expenditures; labor disruptions; and other risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements.

For additional information on Clearwater Paper, please visit our website at www.clearwaterpaper.com

Resolute Forest Products ("Resolute") has announced that it intends to make a formal take-over bid to acquire all of the issued and outstanding common shares (the "Common Shares") of Fibrek Inc. ("Fibrek", TSX: FBK).

"The acquisition of Fibrek is consistent with our strategy," stated Richard Garneau, President and Chief Executive Officer. "As we continue to focus on building a sustainable and profitable Company, growth in expanding global pulp markets is the right move, at the right time, for Resolute Forest Products. The range of optimization opportunities that we expect from this acquisition will, over time, deliver increased value to our shareholders."

The offer would contemplate that holders of Fibrek shares could elect to receive, for each Fibrek share:

• Cash and Share Option: C$0.55 in cash and 0.0284 of a Resolute share
• Cash Only Option: C$1.00 in cash (subject to proration, as described below)
• Shares Only Option: 0.0632 of a Resolute share (subject to proration, as described below)

The maximum amount of cash available will be approximately C$71.5 million and the maximum number of Resolute shares to be issued will be approximately 3.7 million shares. For purposes of calculating the applicable proration, the maximum cash available and the maximum shares available will first be reduced by the amounts necessary to fully satisfy the Cash and Share Option. The Cash Only Option and the Shares Only Option will each be subject to proration in the event aggregate elections exceed the remaining cash or the remaining shares, respectively.  If proration applies, the remaining consideration will be delivered in Resolute shares if the Cash Only Option is prorated, or in cash if the Shares Only Option is prorated.

The offer will contain customary conditions for transactions of similar nature, including, among others, a 66⅔% minimum tender condition, waiver or termination of all rights under any shareholder rights plan(s), receipt of all regulatory, governmental and third-party approvals, consents and waivers, Fibrek not having implemented or approved any issuance of shares or other securities or any other transaction, acquisition, disposition, capital expenditure or distribution to its shareholders outside the ordinary course of business, and the absence of occurrence or existence of any material adverse effect or material adverse change.

Resolute has entered into lock-up agreements (the "Lock-up Agreements") with three significant shareholders of Fibrek, including Fairfax Financial Holdings Limited and Pabrai Investment Funds, holding, directly or indirectly, an aggregate of 59,502,822 Fibrek shares (representing approximately 46% of Fibrek's issued and outstanding Common Shares). Under the Lock-up Agreements, each of the locked-up shareholders has agreed to tender, or cause to be tendered, all of its Fibrek Common Shares to Resolute's offer, subject to certain conditions. The Lock-up Agreements provide, among other provisions, that Resolute commence a formal take-over bid on or before December 30, 2011, provided certain conditions are satisfied, including there not having occurred any material adverse change with respect to either Resolute or Fibrek. Under the Lock-up Agreements, which are being filed with the U.S. Securities and Exchange Commission (the "SEC"), also available on the Canadian SEDAR filing system, the Locked-up Shareholders have no ability to withdraw any Fibrek Common Shares to tender to or facilitate any competing transaction.

The offer represents a premium of approximately 39% over the closing price of Fibrek's shares on November 28, 2011, and a premium of approximately 31% over the volume-weighted average trading price of the shares on the TSX for the 20 trading days ending on that date.

Full details of the offer will be included in the formal offer and the take-over bid circular to be filed with the securities regulatory authorities and mailed to Fibrek shareholders.

Based on Fibrek's public disclosure, it has 130,075,556 issued and outstanding Common Shares (on a non-diluted basis), valuing the offer at approximately C$130 million, or approximately US$126 million. Resolute currently owns no Fibrek Common Shares.

BMO Capital Markets is acting as financial advisor to Resolute, while UBS is acting as financial advisor to a special independent committee of the Board of Resolute.