Appleton and Domtar Corporation today announced a tentative agreement in which Domtar would supply Appleton with most of the uncoated base paper the company needs to produce its thermal, carbonless, and other specialty paper products. The historic 15-year supply deal is valued at more than $3 billion over the life of the agreement. The deal would bring together Appleton, one of the world's leading specialty coaters, and Domtar, the largest integrated manufacturer of uncoated paper in North America.

The proposed supply agreement would provide Appleton with reliable access to competitively-priced, high-quality base paper for all its paper segments and reduce the company's exposure to unpredictable market costs for pulp and waste paper. Appleton would become more competitive with integrated paper companies. The proposed agreement would also enable Appleton to place greater focus on its core capabilities of coating formulations and applications, strengths on which the company was founded more than 100 years ago. Domtar would gain significant and predictable volume for its base paper business driven by demand in Appleton's growing global thermal paper business.

"We operate in a capital and resource-intensive industry," said Mark Richards, Appleton's chairman, president and chief executive officer. "Successful companies will be ones who find more efficient ways to operate and deliver value to their customers. For some that means greater and more efficient use of their assets; for others it may involve closing operations that limit efficiency."

"The proposed supply agreement with Domtar involves both, and Appleton stands to gain significant operating efficiencies. We believe the proposal also demonstrates Appleton's deep commitment to our customers and to the future of the specialty paper business."

John D. Williams, Domtar's president and chief executive officer, stated, "This proposed agreement provides us with an opportunity to repurpose and replace high volume communication paper capacity to specialty paper grades, while securing a growing business long-term. This innovative agreement is consistent with our strategic plan that aims to bring growth into our revenue stream capitalizing on our core competencies. We appreciate the trust and support of Appleton and their interest in further deepening our long standing business relationship."

Appleton currently produces base paper at mills in West Carrollton, Ohio, and Roaring Spring, Pa. The company purchases any additional base paper it needs from other paper producers including Domtar. Appleton also buys a large amount of waste paper and pulp, primarily for its West Carrollton mill, both of which are susceptible to significant price volatility.

By purchasing the majority of its base paper supply from Domtar, Appleton would stabilize a significant expenditure and enable the company to shed old, high-cost, non-integrated papermaking assets. Appleton is proposing to cease recycled fiber processing and paper production at its West Carrollton mill. The company would continue to operate the world-class thermal paper coating operations installed there in 2008.

The proposed supply agreement would result in a reduction of approximately 330 jobs at the West Carrollton mill. Assuming the plan is finalized, approximately 100 employees would be retained to continue to operate the thermal paper coating facility. Carbonless paper coating currently conducted at West Carrollton would be shifted to the company's converting plant in Appleton, Wis., and result in an increase of approximately 50 jobs at that facility. Employment and operations at Appleton's integrated pulp and paper mill in Roaring Spring, Pa., would be unaffected by the agreement.

The agreement is pending discussions with representatives of West Carrollton's Local 266 of the United Steelworkers regarding the reasons the company chose to pursue the agreement.

"We believe our proposal to discontinue papermaking operations at West Carrollton is a competitive necessity and not a reflection of the talent or commitment of our mill employees," Richards said. "Our employees have never wavered in their dedication to excellence and to serving our customers. What has changed is the economics of the industry in which we compete."

He added that non-integrated paper mills, those not capable of producing pulp from logs or wood chips, are distinctly disadvantaged and no longer competitive. Worldwide demand for pulp has driven its market price to historic highs.

"Because we buy pulp on the open market, it costs Appleton considerably more to make base paper than it costs a producer like Domtar, which can supply its own pulp. Our proposed operational changes, as difficult as they may be for many of our employees in West Carrollton, are needed for our company to remain competitive," Richards said.

The West Carrollton mill was built in 1948 by the American Envelope Company. Appleton purchased the mill in 1984 and has made substantial investments to improve the mill's capabilities and productivity. The most significant investment occurred in 2008 when the company completed a $100-million expansion that included the installation of a state-of-the-art coater to produce thermal paper and construction of related facilities.

Richards said the company will continue thermal paper coating operations at the mill and that the new coater remains the foundation on which Appleton will expand its leadership in the growing, global thermal paper business.

Conference call scheduled
Appleton will host a conference call to discuss the proposed supply agreement with the investment community on Friday, February 24, 2012, at 10:00 a.m. ET. The call will be broadcast through the company website, www.appletonideas.com/investors. A replay will be available through March 24.

SOURCE Appleton; Domtar Corporation

Wood costs for pulp mills and sawmills in Brazil have gone up over the past few years, reaching their highest levels in over 20 years in 2011, according to the Wood Resource Quarterly. However, towards the end of the year, Eucalyptus and pine log prices fell, mainly because of the strengthening US dollar.

Eucalyptus log prices in Brazil reached a peak in the 3Q last year, but fell back almost eight percent in the 4Q/11 in US dollar terms because of the strengthening dollar. Current price levels are still among the highest since the Wood Resource Quarterly (www.woodprices.com) started tracking Brazilian wood prices in 1990.

Prices for Eucalyptus pulpwood traded in the open market are high not only from a historical perspective, but also as compared to many other regions around the world.
Only pulp mills in Europe and Australia had higher hardwood fiber costs than Brazil in late 2011, while North America, Chile, Russia and Indonesia all had lower hardwood log prices than the world’s largest market pulp exporter.

Wood fiber cost is by far the most important cost component for Brazilian pulpmills, more so than for most other pulp mills in the world. In the 4Q/11, wood costs accounted
for as much as 72 percent of the total cash costs in Brazil, according to Fisher International. This is substantially higher than the global average of 61 percent.

For the sawmilling industry in Brazil, 2011 was a better year than the previous year, with higher demand both from their domestic market and from abroad. Lumber exports in
2011 were up six percent to their highest levels in three years, with shipments to China, Saudi Arabia, Mexico and Morocco increasing the most.

As a result of the higher lumber production, sawlog prices have trended upward for almost three years, reaching an all-time high in the 2Q/11, according to the Wood Resource Quarterly. During the second half of 2011, log prices fell in US dollar terms, while there were only small price adjustments in the Brazilian Real terms.

Domestic demand for lumber is expected to continue to improve in 2012 with the construction sector gearing up for the World Cup in soccer (2014) and the Olympic Games (2016). If the US dollar continues to strengthen against the Brazilian Real, exports may also contribute to a better year for the Brazilian lumber industry than that of the past
two years. This development is likely to put upward pressure on sawlog prices in the coming year.

Ecolab Inc. announced today that it has acquired Econ Indústria e Comércio de Produtos de Higiene e Limpeza Ltda., a provider of cleaning and sanitizing products and services to the Brazilian foodservice industry. Based in Sao Paulo, Brazil, its annual sales are approximately US$9 million. The business operations will be integrated with Ecolab's existing Brazil Institutional business. No further details were disclosed.

Douglas M. Baker, Jr., Ecolab's Chairman and Chief Executive Officer commented on the announcement, saying, "Econ operates a very similar business model to our own and serves a similar customer base in the expanding Brazilian foodservice market. This acquisition will increase our service capacity and scale, improve customer coverage, and strengthen our customer relationships and opportunities for our fast-growing Brazilian Institutional business. We welcome our new associates and customers toEcolab, and we look forward to growing with them."

With 2011 pro forma sales of $11 billion and more than 40,000 employees, Ecolab Inc. (NYSE: ECL) is the global leader in water, hygiene and energy technologies and services that provide and protect clean water, safe food, abundant energy and healthy environments. Ecolab delivers comprehensive programs and services to the food, energy, healthcare, industrial and hospitality markets in more than 160 countries. More Ecolab news and information is available at www.ecolab.com.

Source: Ecolab Inc.

Metso has inaugurated its new facilities in Brazil on March 8, 2012.  The new facilities, incorporating a machinery production and services unit and an administrative office, are situated in Araucária, a metropolitan area of Curitiba, in the state of Paraná. The facilities will reach full production capacity by June 2012.

The investment value of the construction project was close to EUR 20 million. The new facility is a milestone in Metso’s 42-year history in Brazil. “Brazil, along with China, is one of the countries in which Metso is focusing its investments. The Araucária investment will be continued by further increasing the capacity and capabilities of the facilities,” says Celso Tacla, Area President, South America, Pulp, Paper and Power, Metso.

On a land area of 60,000 m2, of which 10,000 m2 represent the built area, the Araucária plant will generate 150 new jobs and some indirect jobs. Together with the staff transferred from the earlier location in Curitiba, the total number of personnel at the Araucária plant will rise to 500 when the operation reaches its full capacity.

“The Araucária plant will improve Metso’s capabilities in serving the pulp, paper and power generation industries in South America where Metso has a wide installed base and where several greenfield projects and new production lines are to be supplied to customers e.g. in Brazil and Chile,” adds Celso Tacla, pointing out to a new cycle of the pulp and paper production expansion in South America.

In addition to the production and administrative facilities in Araucária and eight other locations in Brazil, Metso has offices in Chile, Peru and Argentina.

The AGM adopted Pöyry PLC's annual accounts and granted the members of the Board of Directors and the company's President and CEO discharge from liability for the financial period 1 January to 31 December 2011.

The AGM decided that a dividend of EUR 0.20 be distributed per outstanding share for the financial year 2011. The record date for distribution of dividend is 13 March 2012 and the payment date is 20 March 2012.

The AGM decided that the Board of Directors consist of seven (7) ordinary members. The AGM elected the following members to the Board of Directors: Mr. Pekka Ala-Pietilä, Mr. Georg Ehrnrooth, Mr. Henrik Ehrnrooth, Mr. Alexis Fries, Mr. Heikki Lehtonen, Mr. Michael Obermayer and Ms. Karen de Segundo.

The AGM decided that the annual fees of the members of the Board of Directors be EUR 45 000 for a member, EUR 55 000 for the Vice Chairman and EUR 65 000 for the Chairman of the Board, and the annual fee of the members of the committees of the Board of Directors be EUR 15 000. In addition, the AGM authorised the Board of Directors to decide about an additional fee of not more than EUR 15 000 per annum for each of the foreign residents of the Board of Directors and an additional fee of not more than EUR 5 000 per annum for each of the foreign residents of the committees of the Board of Directors. The authorisation shall be in force until the next AGM.

In its assembly meeting immediately following the AGM, the Board of Directors elected Henrik Ehrnrooth as Chairman and Heikki Lehtonen as Vice Chairman. Heikki Lehtonen, Alexis Fries and Georg Ehrnrooth were elected members of the Audit Committee. Henrik Ehrnrooth, Heikki Lehtonen, Karen de Segundo and Pekka Ala-Pietilä were elected members of the Nomination and Compensation Committee. In accordance with the authorisation by the AGM the Board decided to pay an additional fee of EUR 15 000 per annum to the foreign residents of the Board of Directors and an additional fee of EUR 5 000 per annum to the foreign residents of the committees of the Board of Directors.

The AGM decided to elect until further notice PricewaterhouseCoopers Oy as the new auditor of Pöyry PLC. PricewaterhouseCoopers Oy has appointed Merja Lindh, Authorised Public Accountant, as the auditor in charge.

Authorisation to acquire the company's own shares

The AGM authorised the Board of Directors to decide on the acquisition the company's own shares by using distributable funds on the terms given below. The acquisition of shares reduces the company's distributable unrestricted shareholders' equity.

The shares may be acquired in order to develop the company's capital structure, to be used as payment in corporate acquisitions or when the company acquires assets related to its business and as part of the company's incentive programmes in a manner and to the extent decided by the Board of Directors, and to be transferred for other purposes or to be cancelled. A maximum of 5 900 000 shares can be acquired. The amount of shares in the possession of the company shall at no time exceed one tenth (1/10) of the aggregate amount of shares in the company. The shares will be acquired in accordance with the decision of the Board of Directors either through public trading, in which case the shares would be acquired in another proportion than that of the current shareholders, or by public offer at market prices at the time of purchase. As the acquisition takes place in public, neither the order of acquisition nor the effect of the acquisition on the distribution of ownership and voting rights in the company nor the distribution of ownership and votes among insiders of the company is known in advance.

The Board of Directors is authorised to decide on all other terms and conditions.

The authorisation shall be in force 18 months from the decision of this AGM. The authorisation granted to the Board of Directors by the previous AGM regarding acquisition of the company's own shares expired simultaneously.

Authorisation to issue shares

The AGM authorised the Board of Directors to decide to issue new shares and to convey the company's own shares held by the company in one or more tranches. The share issue can be carried out as a share issue against payment or without consideration on terms to be determined by the Board of Directors and in relation to a share issue against payment at a price to be determined by the Board of Directors.

The authorisation also includes the right to issue special rights, in the meaning of Chapter 10 Section 1 of the Companies Act, which entitle to the company's new shares or the company's own shares held by the company against consideration.

A maximum of 11 800 000 new shares can be issued. A maximum of 5 900 000 own shares held by the company can be conveyed.

The authorisation comprises a right to deviate from the shareholders' pre-emptive subscription right provided that the company has an important financial reason for the deviation in a share issue against payment and provided that the company taking into account the interest of all its shareholders has a particularly important financial reason for the deviation in a share issue without consideration. The authorisation can within the above mentioned limits be used e.g. in order to strengthen the company's capital structure, to broaden the company's ownership, to be used as payment in corporate acquisitions or when the company acquires assets relating to its business and as part of the company's incentive programmes. The shares may also be subscribed for or own shares conveyed against contribution in kind or by means of set-off.

In addition, the authorisation includes the right to decide on a share issue without consideration to the company itself so that the amount of own shares held by the company after the share issue is a maximum of one-tenth (1/10) of all shares in the company. Pursuant to Chapter 15 Section 11 Subsection 1 of the Companies Act, all own shares held by the company and its subsidiaries are included in this amount.

The authorisation shall be in force 18 months from the decision of this AGM. The authorisation granted to the Board of Directors by the previous AGM regarding issuing shares expired simultaneously.

PÖYRY PLC

Metso has signed an agreement to acquire South Korean valve technology company, Valstone Control Inc. (Valstone). The acquisition strengthens Metso’s control valve and service offering for customers in the oil and gas and power industries. Valstone’s globe valves add to Metso’s current wide portfolio of control valves. The acquired technology plays a key role in most critical processes with extreme pressures and temperatures. The acquisition follows Metso’s strategy and strengthens Metso’s market position in the growing Asian markets.

Valstone is a privately owned globe valve and service specialist company. Its customers include many of the leading South Korean petrochemical and power generation companies and engineering, procurement and construction (EPC) companies. Valstone’s net sales are less than MEUR 10. More information: www.valstone.com. The value of the transaction will not be disclosed.

Metso has an ambitious growth strategy to develop its valve business.The Valstone acquisition is preceded by a series of investments in Metso’s global valve offering. Last year Metso opened a new valve technology center in Finland, and the previous year in Shanghai, China. Currently, Metso is expanding its valve production premises in the US as well as building a new supply and service center in India. Additionally, Metso has high-class industrial valve facilities in Brazil and Germany.

Commitment to meeting customer needs has also made Metso a leading valve technology service supplier. For example, customers like Petrobras and Arcelor Mittal have awarded Metso with large service contracts. Valstone strengthens Metso’s service capabilities in the growing South Korean market. For valve customers alone, Metso has 31 service centers around the globe. 

‘’The acquisition of Valstone and the preceding investments confirm that we are in the business with a long-term strategy to continuously improve our technology offering and services to benefit our customers. Asian growth markets have a key role in our strategy. We invest heavily in these markets in order to serve our customers better, both locally and globally’’, says Perttu Louhiluoto, President, Metso Automation.

Verso Paper Corp. has announced that its subsidiaries, Verso Paper Holdings LLC and Verso Paper Inc. (the "Issuers"), propose to issue $345 million aggregate principal amount of senior secured notes due 2019 (the "Notes") in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be guaranteed by certain domestic subsidiaries of Verso.

Verso also announced today that it has received commitments from lenders for a new $150 million asset-based revolving loan facility and a new $50 million first-priority revolving facility. These commitments would be utilized in lieu of Verso's previously announced $100.0 million of commitments for an accounts receivable securitization facility and approximately $55.0 million of commitments to provide a new and/or extended revolving facility under Verso Holdings' existing senior secured revolving credit facility.

Verso intends to enter into the new credit facilities as soon as practicable following the completion of the Notes offering and upon satisfaction of customary conditions. While Verso has received commitments from lenders for the proposed new credit facilities, there can be no assurance that Verso will enter into such facilities. The new credit facilities will replace Verso's existing $200 million revolving credit facility which matures on August 1, 2012.

Verso's subsidiaries that intend to issue and guarantee the Notes are the same entities that issued and guaranteed Verso's existing senior secured notes. The Notes will be secured by first priority security interests in the "Notes Priority Collateral" (which generally includes most fixed assets of the Issuers and the guarantors) and by second priority security interests in the "ABL Priority Collateral" (which generally includes most inventory and accounts receivable of the Issuers and the guarantors), in each case subject to certain permitted liens and as described in the offering circular relating to the Notes.

Verso intends to use the net proceeds from the offering of Notes to (1) pay the consideration for the cash tender offer for Verso's outstanding 11½% senior secured notes due 2014 (the "Existing Senior Secured Notes"), (2) redeem any remaining Existing Senior Secured Notes, following the expiration of the cash tender offer, at the applicable redemption price plus accrued and unpaid interest, and (3) pay certain related transaction costs and expenses. The proposed offering of the Notes is subject to market and other conditions and may not occur as described or at all.

The Notes are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States only to non-U.S. investors pursuant to Regulation S. The Notes will not initially be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or in a transaction that is not subject to the registration requirements of the Securities Act or any state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.

Source: Verso Paper Corp.

For the operators of power stations reliability and process security of the dosing equipment are critical factors

In 2010 and 2011 Alltech equipped several power stations in the UK with dosing systems. Dosing systems are used in several applications like for cooling water, feed water, waste water treatment, flue gas cleaning. For acid or caustic dosing the dosing stations were equipped with the robust piston diaphragm metering pumps of the FKM series. All materials used for dosing heads and diaphragms are chemical resistant. All metering pumps of the FKM type are equipped with an integrated pressure relief valve certified by the Technical Control Board. Another security feature is the diaphragm rupture signalization. Pump performance is adjusted remotely by the SERVOSET stroke length positioning system. The dosing systems are housed in chemical resistant cabinets to comply with the special security requirements which have to be considered especially in the dosing of concentrated acids and caustics.

Alltech provides pump sets for the following power station applications:

Acid and caustic dilution and dosing skids for ion exchange plant regeneration
Concentrated chemicals (typically 96% sulphuric acid and 47% caustic soda) are drawn in from bulk tanks by dosing pumps and diluted to a concentration of around 5% by an inline mixer. For acid skids, PVDF is typically used as material as it has excellent chemical and heat resistance properties. Caustic soda skids are made of polypropylene. Every skid is designed to specifically suit the client's process requirements. This system replaces vacuum ejectors, measure, and dilution tanks, which are complicated and cannot guarantee the same accuracy. Pump dosing systems are also the best option regarding operation and maintenance safety.

Ammonia dosing for large coal fired power stations
Ammonia dosing sets for boiler chemistry positioned close to individual boilers at large coal fired station provide a minimum delay in chemical correction of boiler feedwater. The system is controlled by the customer's DCS system.

Ammonia & Hydrazine dosing at gas fired power stations
This system replaced the complicated dilution and injection system and works directly from IBCs in a building that was especially planned for this purpose. The system is controlled by the customers DCS system. (Rye House)

Sodium Hypochlorite dosing for cooling tower circuits
Hypochlorite is dosed proportionally based upon feedback of free residual chlorine within the circuit. (Deeside)

Acid and Caustic dosing for pH correction
Acid or caustic is diluted from concentrated chemicals stored in bulk tanks (Ferrybridge) to around 10% strength and dosed proportionally based upon feedback of pH.

Polymer dosing (Fiddlers Ferry)
Dosed as a flocculating agent to a water clarifier.

Alberta Pacific Forest Industries, Weyerhaeuser’s Grande Prairie site, and Northern Pulp Nova Scotia were the safest operations in Canada last year, according to Pulp & Paper Canada’s Safest Mill in Canada contest. Weyerhaeuser was the only participating mill to have zero incidents in 2011.

There was a change to the rules this year, to reflect the fact that fewer mills are reaching the 100,000 man hours per month threshold for Category A. The threshold value was lowered to 80,000 man hours per month for 2011. Domtar’s Windsor mill, which had dominated the small group of Category A mills for several years, falls to third place with a frequency rate of 1.22. Alberta Pacific Forest Industries tops Category A with six incidents and an incident rate of 1.11. Howe Sound Pulp & Paper placed second at 1.13.

Category B was won by Weyerhaeuser’s Grande Prairie mill, whose employees are to be congratulated for achieving a zero-incident year. Hinton Pulp (0.94) and Resolute Forest Products’ Alma mill (0.99) came in second and third in this category.

Sonoco Canada’s Brantford site, which had an unblemished record for seven years, had one incident in 2011, and cedes the top spot in Category C to Northern Pulp Nova Scotia.

Northern Pulp had one incident in 2011, for a frequency rate of 0.35. Slave Lake Pulp placed second with a frequency rate of 0.92, and J.D. Irving’s Lake Utopia Paper was third with 1.36.

Tips from the winning mills and complete results will be printed in the March/April issue of Pulp & Paper Canada.

Source: Pulp & Paper Canada

UPM and HCL Technologies Limited (HCL) have signed a five year outsourcing frame agreement of IT infrastructure services. 

As part of this agreement, HCL will provide data center, end user support, network services and professional IT services to UPM. HCL will also set up a data center in Finland and strengthen its existing Espoo Delivery Center to provide the services. 

Approximately 250 UPM employees globally are within the scope of the planned outsourcing.  Transferring UPM employees are expected to move to HCL upon closing, which is expected to take place at the end of August 2012, subject to signing of local transfer agreements and customary closing conditions.  

“The agreement enables UPM IT to offer unified and cost effective IT infra services to UPM businesses“, says the CIO of UPM, Turkka Keskinen. “With this engagement we aim to increase scalability and flexibility as well as ensure access to world class competences and best practices”, he continues. “In the future, UPM IT focuses on strategy and governance, business-IT development, application management as well as demand and service management.”  

“HCL has proven experience in delivering complex, end-to-end outsourcing engagements to globally dispersed organizations. We are pleased that this expertise has today positioned us as UPM’s partner of choice for IT services. We stay committed to creating transformational value for UPM in this engagement and look forward to a long and mutually rewarding relationship”, says Anant Gupta, President, HCL Technologies ISD. 

“Through this engagement we will aim to optimize and transform UPM’s IT infrastructure to ensure enhanced and cost-efficient IT operations,” added Venu Gopal Lambu, AVP & Head of Continental Europe, HCL Technologies ISD.