At its meeting on 15 February, Södra's Board of Directors decided on its proposal for appropriation of profit, which will be submitted to the Annual General Meeting on 17 May 2011.

The proposal is that SEK 851 million be transferred to the members in the form of:

Retroactive payment on normal softwood timber, SEK 74 per cubic metre sub, total SEK 244.9 million
Retroactive payment on other assortments, 12 per cent, total SEK 234.3 million
Dividend on capital contributed, 12 per cent, total SEK 282.4 million

Bonus issue to members' capital account, SEK 89.4 million. The bonus issue represents 10 per cent of available paid-up capital as of 31 December 2010.

In addition, 7.7 per cent on subordinated debentures, Series D, total SEK 10 million.

Chairman's comments:
- We can note that 2010 was a strong year for Södra and our members. The Board has proposed an appropriation of profits that involves a transfer to the members worth over SEK 850 million," said Chairman of the Board, Christer Segerstéen.

- Last year's high prices for wood and the appropriation we are proposing makes 2010 a year in which the profitability of our members' forest properties was historically good.

- In recent years, we have seen major and rapid changes in the markets for both our products and timber raw material. The large price fluctuations for timber made us decide to deviate from the normal system of retroactive payments. We are proposing that retroactive payment on normal softwood timber is SEK 74 per m3sub instead of 12 per cent of the gross delivery value. In this way, the retroactive payment is the same for each cubic metre delivered, even if the prices have varied during the year.

- The appropriation proposal corresponds to approximately 40 percent of the profit, i.e. somewhat more than the long-term target of one-third of the profit. Apart from the dividend on wood and capital contributed, we are proposing a bonus issue so our members can share in the value added through Södra.

- The Södra model will reward the members who choose to make long-term deliveries of all their wood to Södra, and who thereby fully engage in our partnership.

Wood costs for the global pulp industry have increased 17 percent the past two years; only the US South has bucked the trend, reports the Wood Resource Quarterly 

Global market pulp production increased by seven percent in 2010, which increased demand for wood raw-material. As a result, prices for wood chips and pulplogs were up in most regions of the world, according to the Wood Resource Quarterly. The Softwood Wood Fiber Price Index (SFPI) has increased 16.5 percent the past two years, while the Hardwood Wood Fiber Price Index (HFPI) went up 17.7 percent.

Global pulp production in the second half of 2010 was higher than many had anticipated, and pulp markets were better than they had been the first six months of the year. The total production of chemical market pulp last year reached an estimated 45 million tons, which was about seven percent more than was produced in 2009. North America and Western Europe increased production by 10 percent and 12 percent, respectively, while Latin America/NZ reduced production slightly. Other regions including Asia, Africa and Russia also raised production in 2010.

High demand for wood raw-material by the pulp industry pushed the costs for wood fiber upward in the second half 2010, as reported in the Wood Resource Quarterly. Softwood chips and softwood pulplog prices were higher in most key markets around the world in the 4Q/10. As a consequence, the Softwood Wood Fiber Price Index (SFPI) increased for the third consecutive quarter. The Index reached US$103.60/odmt, which was the highest level since the beginning of the financial crisis, and the SFPI is now 16 percent above the 1Q/09 price. The biggest price increases in the 4Q/10 occurred in the US Northwest, Sweden, Spain and Brazil.

The Hardwood Wood Fiber Price Index (HFPI) has gone up faster than the SFPI since early 2009. The 4Q/10 Index was US$108.28, which was up 3.4 percent from the previous quarter and almost 18 percent higher than 1Q/09. The HFPI has only been higher twice since its inception over 20 years ago. Pulp mills in Germany, Spain, France and Brazil all had to pay more for hardwood logs in their local currencies. In addition, the US dollar weakened against most currencies and therefore contributed to a higher Price Index

One of the few regions that experienced reductions in wood fiber costs in 2010 was the US South, with 4Q prices being about 10 percent lower than in the 1Q. Wood prices in the South were the lowest in all of North America in the 4Q/10, and pulp mills in this region have benefited from some of the lowest wood fiber costs in the world

Sonoco, one of the largest diversified global packaging companies, today announced officer appointments in its Consumer Packaging segment, according to Harris E. DeLoach, Jr., chairman and chief executive officer.

Rodger D. Fuller, 49, has been named vice president, Global Rigid Paper and Plastics, and has responsibility for the Company's largest consumer packaging operations, including global composite cans, rigid plastics and closure businesses. He reports to Jack Sanders, president and chief operating officer, and is a member of the Sonoco's executive committee.

Prior to this appointment, Fuller was vice president, Global Rigid Paper and Closures. He joined Sonoco in 1985 and has held a number of senior leadership positions including vice president, Rigid Paper and Plastics--North America; division vice president, Consumer Products Division--Europe; and president Sonoco Limited, Canada. Fuller graduated from Berry College, Rome, Georgia, with a B.S. degree in business administration and received an MBA from Emory University.

R. Howard Coker, 48, has been named vice president, Global Rigid Paper and Closures, and has global responsibility for the Company's composite can, and metal and peelable membrane ends and closures businesses. He continues to report to Fuller.

Prior to this promotion, Coker was vice president, Rigid Paper and Closures--North America. He has held several leadership positions within the Company, including division vice president and general manager, Sonoco Phoenix; director of sales and marketing, Rigid Paper and Plastics--North America; and general manager, Asia/Pacific, Rigid Paper and Plastics. Coker is a graduate of Wofford College, Spartanburg, S.C., with a B.A. degree in business administration and received an M.A. degree in business administration from Wake Forest University.

Marcy Thompson, 49, has been elected an officer of the Company and named vice president, Rigid Paper and Closures--North America, and will have responsibility for the Company's composite can, and ends and closures operations in the United States, Canada and Mexico, reporting to Coker.

Prior to this appointment, Thompson was division vice president and general manager of Sonoco Recycling, Inc. Thompson joined Sonoco in 2006 and was previously division vice president and general manager, Industrial Products Division (IPD)--North America, and division vice president of sales and marketing, IPD--North America. Thompson joined Sonoco from General Electric's Commercial Finance business, where she was chief marketing officer. She previously held several sales, marketing and business leadership positions with General Electric, The Gillette Company and Inland Steel Company. She is a graduate of The Pennsylvania State University with a B.S. degree in Metallurgy, and has earned a Six Sigma Master Black Belt certification.

Robert L. Puechl, 55, has been named vice president, Global Flexible Packaging, and has responsibility for Sonoco's flexible packaging operations, including eight converting plants in the United States, Canada and Malaysia, and the Company's global brand management business. He reports to Rob C. Tiede, vice president, Global Flexibles and Packaging Services.

Prior to this appointment, Puechl was vice president, Global Rigid Plastics. Puechl began his career with Sonoco in 1986 and has served in a variety of manufacturing and management positions in the Company's consumer plastics businesses including serving as division vice president and general manager, Molded Plastics, and division vice president of manufacturing, High Density Film Products. Before joining Sonoco, he worked in manufacturing with Burlington Industries. Puechl holds a B.A. degree in economics from the University of Georgia and an MBA from Georgia State University.

Each day throughout the month of April, Memphis Botanic Garden in partnership with International Paper will host a month-long celebration of Earth Day.

Children and adults will enjoy a variety of special events designed to improve familiarity with ecology and environmentally-friendly practices that can be carried over into everyday living.

Throughout April, visitors can take a Conservation Hike, which includes a series of stations around the Garden with information on conservation in the Mid-South. At each stop, visitors will be challenged to think of specific conservation steps they can take to make a difference.

Mondays will feature an After School Green Hour in My Big Backyard. Research has shown that children spending at least an hour each day in an outdoor environment are healthier and perform better in academic and other areas.

Thursdays will include the Going Green Lunch Scene, a series of informal talks by experts focusing on a different green topic each week.

Other highlights will include an Aquatics Talk by Dr. Hyun Jung Cho, Delicious & Nutritious Vegetables: Disease-fighting Power of Produce by Dr. Dean A. Kopsell, Environmental Playhouse learning activities at the Garden's Spring Plant Sale, Backyard Picnic and concert, and a Kids-Only Yard Sale, which will give children a chance to recycle their old toys by selling to shoppers who'll give them new homes.

This series of nature-themed family events and educational programs is a clear example of how non-profit and private organizations can work together to further our cause of educating the community on environmental issues.

"At International Paper, we are proud of our legacy of sustainability and environmental stewardship," said IP Foundation Executive Director Kim Wirth. "Partnering with the Memphis Botanic Garden to celebrate Earth Day is another extension of our commitment to the communities where we live and work."

International technology Group ANDRITZ received an order to supply a fiber preparation system for the MDF plant of Arauco do Brasil S.A. in Jaguariaíva, Brazil. This will be the third ANDRITZ pressurized refining system to be installed for the Arauco Group and the 11^th delivered to Brazilian MDF producers, thus confirming ANDRITZ’s position as one of the leading suppliers for MDF plant equipment in Brazil. 

The scope of supply includes a chip washing system and an S 2064M pressurized refining system, with a design capacity of 1,080 t/d. Start-up is scheduled for the second quarter of 2012.

The decisive factors for the selection of ANDRITZ were based on the high availability of ANDRITZ equipment as well as the advanced technical solutions, including optimized energy utilization for high-capacity refining systems.

Celulosa Arauco y Constitución S.A. (Arauco), which started as a Chilean forestry and pulp production firm, is today one of the largest forestry companies in Latin America. The four business areas for the company, which employs 35,000 people, are in forestry, pulp production, sawn timber, and wood-based panel production. 

At this year’s European Coatings Show (ECS), to be held on March 29 to 31 in Nuremberg, Germany, BASF will present its wide-ranging expertise in the field of formulation additives. The company will showcase its innovative solutions in the areas of dispersing agents, defoamers, rheology modifiers and slip & leveling agents, featuring the combined product portfolio of BASF and recently acquired Cognis. The company’s expertise in formulation additives will be the focus of a special section at the BASF booth (No. 421, Hall 7A).

Efficient high-performance solutions

Among the dispersing agents to be presented will be the new Efka^® series of premium dispersants for inkjet and energy-curable inks. Efka^® 7701, Efka^® 7731 and Efka^® 7732 provide superior rheological properties, higher millbase pigment loading and good pigment dispersion stability. The new series facilitates the development of best-in-class printing inks that set new performance benchmarks for the whole industry.

Another new formulation additive that will be introduced at the ECS is Foamstar^® A 38, a defoamer for high-quality water-based architectural and industrial applications. It provides efficient defoaming performance in glossy paints for industrial maintenance, OPVs (printing inks) and parquet lacquers. In addition, it delivers excellent foam knock-down, thanks to its synergistic combination of hyper-branched polymers and organo-modified silicones.

BASF will also feature Dehydran^® SE 2, a high-performance silicone-polymer emulsion defoamer for premium water-based paints and clear coats. It offers good foam suppression and long-term persistency, is highly compatible and easy to handle, and minimizes gloss reduction. As Dehydran^® SE 2 is VOC-free and has an ultra-low SVOC content, it also helps manufacturers to formulate paints and clear coats that meet the requirements of environmental standards and safety certifications, such as the German TÜV, Green Seal GS‑11, the EU Ecolabel and the Blue Angel.

Strong portfolio

In the range of rheology modifiers, BASF will launch DSX^® 3801, a new VOC-free mid-shear rheology modifier with excellent ICI thickening. The ICI build of the thickener clearly exceeds that of benchmark water-based products, even at lower dosages. Due to the high efficiency and improved performance of DSX^® 3801, a smaller amount of it is needed in formulations – a “do more with less” approach that delivers sustainability benefits. Rheovis^® 162, meanwhile, is a rheology modifier of outstanding efficiency, with a genuine thixotropic effect that makes it ideally suited to non-dripping stains and paints.

BASF’s experts will also provide information about the wide range of slip & leveling agents available to improve the performance of customers’ products. Well-established brands such as the Efka^® 3000 series increase slip and surface smoothness, and can provide a “soft-touch” effect. Due to their broad compatibility, Efka^® slip & leveling agents are suitable for use in high-gloss clear coatings without causing haze.

“Thanks to our comprehensive expertise we can provide our customers with a broad range of tailor-made solutions,” says Mark Dorn, Head of BASF’s Global Business Management for Formulation Additives. “The portfolios of formulation additives complement each other very well. We are very much looking forward to exhibiting at this year’s European Coatings Show.”

Södra is raising the price of its softwood pulp in Europe by USD 30/tonne. NBSK grades will rise from USD 950/tonne to USD 980/tonne, effective from 1 March.

Following the severe economic downturn experienced in late 2008 and throughout 2009 the industry had a much more positive 2010, although overall volumes remain some way below pre-crisis levels.

Indications are that CEPI member countries produced more than 96 million tonnes of paper and board in 2010, representing a rise in the region of around 8% over 2009.

The paper industry did slightly better than the European manufacturing industry taken as a whole. All grades are expected to show higher annual production levels in comparison to 2009. It is estimated that the production of pulp has increased by between 8.5% and 9%, after a decline of 13.5% the previous year, with total output of approximately 38 million tonnes.

It appears that the overall consumption of paper and board in CEPI countries in 2010 will increase by between 5% and 6% when compared to 2009, based on the latest data from the third quarter.

The new concept of SPCI brings the conference down to the exhibition floor. Three activity squares will be part of the exhibition offering a full conference programme with key note speakers, shorter presentations with a technical orientation as well as entertainment. The entire event is free to all visitors.The new concept of SPCI brings the conference down to the exhibition floor. Three activity squares will be part of the exhibition offering a full conference programme with key note speakers, shorter presentations with a technical orientation as well as entertainment. The entire event is free to all visitors.

- We are excited to be able to offer our visitors the opportunity of attending the conference at no cost, says Patrik Löwstedt, Exhibition Manager for SPCI 2011. The new concept makes it easier for exhibitors and visitors to meet as the entire event is held in one place. Another advantage is that the whole show now fits into one large exhibition hall, the extended Hall A, at Stockholm International Fairs.

The three open squares are placed on the exhibition floor. The Magic Future Square in the middle features all the key note speakers and highlights topics such as the World Market, Management and Future Business Opportunities. The East and West Squares will host technical seminars presenting new products, innovations and the latest within R&D. The event programme at the squares is put together by SPCI, the Swedish Association of Pulp and Paper Engineers, and our partnering companies. Confirmed Magic Future Partners to date include: Svenska Cellulosa AB (SCA), Nipman Pappersteknologi, Nalco AB, SSG Standard Solutions Group AB, Eka Chemicals AB and Holmen. Confirmed East and West Partners to date include: ÅF-Industry AB, PP-Washing Process Ltd, Imerys Minerals Ltd, Arizona Chemical AB, ABB AB, ISRA Parsytec, Konecrances, Pöyry AB, Acosense AB and Innventia.

SPCI is the world’s leading event for the pulp and paper industry. It gathers suppliers to the pulp, paper, board, tissue and converting industries and is visited by industry people from around the globe. SPCI 2011 provides you with first class business opportunities in an international environment and is a great source of inspiration for exhibitors and visitors alike.

The 15th edition of SPCI is held on May 17-19, 2011, at Stockholm International Fairs (Stockholmsmässan). The event is organised by The Swedish Association of Pulp and Paper Engineers (SPCI) and Adforum.

Metso has strengthened its world-leading advanced controls groups for chemical pulping, mechanical pulping and recycled fiber and paper by forming a new Performance Solutions group, which is the largest single group in the pulp and paper industry focusing on process improvement and optimization. Metso Performance Solutions guarantee measureable economic results to help the pulp and paper industry enhance processes in a sustainable way.

Performance Solutions consists of experienced advanced control and optimization professionals worldwide, all with in-depth knowledge of processes and automation. Together, the group has implemented more than 300 applications.

The majority of Metso’s Performance Solutions applications is to help customers reduce quality variability, debottleneck processes, and reduce chemical and energy costs. The focus of the new group is to provide the most comprehensive offering in the industry by utilizing Metso’s extensive project implementation experience and long-term system performance sustainability.