NINE DRAGONS PAPER’s three-year expansion scheme : Five production lines to start production in China - Phase II Scheme in Vietnam Base plan to be launched
Nine Dragons (ND) Paper states that it will have, according to the Company’s estimation over the market dynamics, six production lines start production in succession over the next three years, including five lines in China as well as an additional packaging paperboard production line with annual production capacity of 350,000 tonnes following the construction of Phase II in Vietnam base. Along with active expansion of overseas markets, such move is estimated to add more than 2 million tonnes to its production capacity by then. This will further strengthen its regional scale, diversifying its product portfolio in order to exploit its economies of scale in the regions.
According to Chairlady Cheung Yan, given the exuberant demand in the regions where ND Paper’s bases are located as well as the increasing growth in downstream production capacity, the supply and demand for packaging paperboard products in the market will gradually increase.
Within 2013, two packaging paperboard production lines with a total annual production capacity of 650,000 tonnes in Fujian Quanzhou will commence production before June. One packaging paperboard production line with a production capacity of 300,000 tonnes in Sichuan Leshan will commence production before December. From 2014 to 2015, a production line with a capacity of 350,000 tonnes of Phase 1 in Liaoning Shenyang base will commence production before 28 February, 2014; in the meantime, the second packaging paperboard production line in Shenyang base which was postponed previously will commence production ahead of schedule by the end of 2015, with an annual production capacity of 350,000 tonnes and a total investment of approximately RMB1.2 billion.
With regards to the plans for overseas market expansion, Cheung Yan has stated that the Vietnam base has been well-equipped to launch the construction of Phase II after many years of development. The Company plans to build a new packaging paperboard production line with a capacity of 350,000 tonnes before the end of 2016 with a total investment of approximately US$180 million. (May 16, 2013)
Metso-supplied Finland’s largest pellet-fired heating plant produces environmentally friendly energy in Tampere
Finland’s largest pellet-fired heating plant, which was supplied by Metso to Tampereen Energiantuotanto, Tampere, is based on a technological solution that is the first of its kind in the country. It will bring new opportunities to gear the structure of Finnish district heat production towards the goals of sustainable development. Previously, peak load plants have been using fossil fuels because there was no other technology available. The plant is mainly fired with wood pellets and its heat output is around 33 MW. The plant has replaced some of the capacity of the oil- and gas-fired boiler plants and has thus helped substantially reduce the CO2 emissions from the production of district heat. The plant has been producing environmentally friendly energy in Tampere since December.
Metso’s delivery comprised a complete turn-key boiler plant solution and Metso DNA automation system. The technology used at the plant is based on the pellet fuel being pulverized in separate grinding mills and burned in a pulverized combustion boiler. The start-up and load control of the combustion process is remarkably high and the pulverized fuel allows for clean, energy efficient and flexible heat generation. Pulverized pellet combustion is new to Finland, but Metso has been using it in Sweden on a smaller scale.
“This was a major delivery for Metso, as it is the first reference using this technology for district heat generation on such a large scale. The Bioheat RampUp plant delivered by us enables the use of pellets and oil, simultaneously in any proportion or separately, in one and the same boiler, which is operated unmanned,” says Jussi Orhanen, Director, Heat & Power Plants, Power business line, Metso. According to Orhanen, the solution is also an excellent option for industry presently using heavy fuel oil for generating process steam. (May 16, 2013)
L&W Introduce Stylus Roughness Tester Emveco
Lorentzen & Wettre, a member of the ABB Group, announce L&W Stylus Roughness Tester Emveco – a paper laboratory instrument that measures the micro-surface roughness of paperboard and linerboard. The evaluated property is called microdeviation, which is a measure of the topography of the paper or board surface, and a characteristic that correlates well to how a paper or board will print. This new product is a replacement of the well-known Emveco Stylus Roughness Profiler System 210-R, used in the industry for many years. “Finally there is a replacement of the popular Emveco 210R. Stylus measurements has proven to be an excellent predictor of how well a flexo printed surface will print with minimum ink consumption with remaining print uniformity”, says Mr Thomas Fürst, Product Manager, Lorentzen & Wettre. The instrument is designed with attention to ergonomics and efficiency; easy to use colour-touch screen with intuitive menus and large easily accessible buttons, quick response and high resolution. (May 15, 2013)
BASF to sell Industrial Water Management to Degrémont (SUEZ ENVIRONNEMENT Group)
BASF has signed a contract to sell its subsidiary Industrial Water Management France SAS based in Lyon, France to Degrémont, the world water treatment specialist for local authorities and industrial customers. Degrémont, a subsidiary of Suez Environnement, will continue operations at the production sites in Lyon and La Courneuve, France. Closing of the transaction is expected to take place during the third quarter 2013.
BASF provides a comprehensive range of water treatment chemicals and filtration technology for the industrial and municipal waste water treatment sector. In future, BASF’s water solutions business will fully concentrate on these innovative offerings for the water industry. To this end, BASF previously announced the plan to divest its service-oriented industrial water management business to a strategic partner to further expand the business and give the current 61 employees a long-term perspective. (May 15, 2013)
Appleton Papers Announces Company Name Change to Appvion, Inc.
Appleton Papers has changed its name to Appvion, Inc. The new name reflects the company’s heritage of innovation in applying chemistry to paper and microencapsulation as a means to create value for its customers.
Commenting on the name change, Appvion’s chairman, president and CEO, Mark Richards, said, “Charles Boyd founded our company 106 years ago today with the belief that he could add value to paper by applying coatings to it. Since then, company employees have used their ingenuity and ability to adapt their expertise to new opportunities to prove that Mr. Boyd’s idea was sound, profitable and enduring. “Our company’s success has been based on using applied chemistry to increase the performance of paper. More recently our expertise in microencapsulation has enabled us to partner with companies like Procter & Gamble to enhance the performance and value of a growing range of consumer and industrial products.”
Richards added that while producing thermal, carbonless, security and other specialty coated papers will continue to be an important part of the company’s product offering, adopting the name Appvion reflects the company’s entry into diverse new markets and makes it clear that paper won’t be the only component of the company’s future success.
Appvion creates product solutions through its development and use of coating formulations, coating applications and Encapsys® microencapsulation technology. The company produces thermal, carbonless and security papers and Encapsys products. Appvion, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio and Pennsylvania, employs approximately 1,700 people and is 100 percent employee-owned. (May 13, 2013)
Ahlstrom introduces its expanded interleaved Sterile Barrier Systems offering
Ahlstrom has introduced its expanded interleaved Sterile Barrier Systems (SBS) offering, Ahlstrom Reliance® Tandem. This expansion introduces SMS (Spunbond-Meltblown-Spunbond) technology into its offering.
Ahlstrom's sterile barrier systems are an integral part of the central sterilization department in hospitals. Previously, Ahlstrom interleaved offering consisted of crepe and wetlaid technologies. To help customers stay ahead, Ahlstrom now offers a complete interleaved portfolio with the introduction of SMS into its Ahlstrom Reliance® Tandem. Ahlstrom Reliance® Tandem utilizes the newest technology, SMS, in combination with existing technologies to provide the optimal combination of sterile barrier system sheets for sequential wrapping.
Ahlstrom Reliance® Tandem or interleaving is the concept of combining two layers of SBS sheets, each offering specialized performance for sequential wrapping. The two layers are used together to offer a high degree of flexibility in terms of performance, technology and cost for different applications. (May 13, 2013)
Changes in the Executive Management Team of Ahlstrom
Ahlstrom has announces following changes in its Executive Management Team.
Seppo Parvi, Chief Financial Officer and member of the Executive Management Team of Ahlstrom, has been appointed Executive Vice President (EVP), Food and Medical business area. He will also continue in his current role as CFO and Deputy to the CEO, reporting to Jan Lång, President & CEO.
Financial controlling, Integrated Business Planning and Mergers & Acquisitions will continue to report to Seppo Parvi, in addition to the Food and Medical business area. Parvi's other responsibilities will be divided between other members of the Executive Management Team.
William Casey, current EVP, Food and Medical, will resign from the Executive Management Team. His new role in Ahlstrom will be announced shortly.
Paula Aarnio, EVP, Human Resources & Sustainability, will assume responsibility for Information Solutions and Program Management in addition to Human Resources, Sustainability, Communications, as well as Health, Safety, Environment and Asset Risk Management (HSEA). Legal Services will report to President & CEO Jan Lång, in addition to his current reportees. The changes will be effective as of June 1. (May 13, 2013)
BTG News at Zellcheming 2013, Booth 943
BTG will introduce the new laboratory device Mütek PCD-05 at booth 943 during the Zellcheming Expo 2013. The Mütek PCD-05 is the successor to the PCD-04 and is available in three different versions. Worldwide, the PCD has established itself as the standard tool for charge measurement in the paper industry and for chemical suppliers alike. The level of chemical additives such as fixing agents or interfering substances can be determined quickly. Individual customer requests are realized by the modular set-up of the instrument.
The launch of the PCD-05 will be celebrated with a raffle at the BTG booth of the Zellcheming Expo.
Additional products for the wet end and paper finishing will be on display as well. BTG experts will be available to discuss solutions regarding inline instrumentation, blades and rods. (May14, 2013)
Sappi Fine Paper Europe to raise prices for its Speciality papers
Sappi Fine Paper Europe will raise its prices as of 1 July by 6 %. The price increase will affect coated and uncoated flexpack paper, siliconising base papers and label papers. The implementation will be discussed on an individual basis with customers in all countries where Sappi Fine Paper Europe operates. (May 13, 2013)
Norske Skog relies on ISRA Vision inspection solutions
Norske Skog, a global manufacturer of Ultra-Light Weight Coated (ULWC) papers, has successfully improved its production capabilities by adding optical Web Inspection Systems (WIS) from ISRA Vision, resulting in fewer web breaks, reduced customer complaints and higher production throughput.
At its location in Duisburg-Walsum (Germany), Norske Skog produces around 430,000 tpy of gloss and mat material using ULWC-paper on two paper and coating machines. The products is used primarily for magazines and advertising supplements. As early as 2001 Norske Skog installed its first WIS complete with an unwind control system on the winder at the infeed of the coating machine and at PM4. The decision was made in 2010 to introduce additional inspection systems. Step by step, other WIS were installed at the PM10, the SM10 and, most recently, at the SM4.With the latest web inspection and automatic unwind control systems, the paper manufacturer is now able to detect even the smallest of defects during early stages of production. The particular challenge for the WIS installed on the paper machines is not the ability to reliably identify typical defect types such as holes and dirt specks, but the ability to differentiate between the different grades of material depletion in the ULWC paper.? (May 13, 2013)
Metso expands its service center in Tianjin, China, to bring fabrics production closer to customers
Metso has opened an extension to its Tianjin service center that manufactures forming, dryer and filter fabrics mainly for the Chinese and Asia-Pacific market. The Tianjin service center, located in the city of Tianjin, started with 45 employees in 2008 and employs 200 service professionals today. An inauguration ceremony of the extension of the center was held in Tianjin on May 8. A new heat setting machine for fabrics manufacture and an expansion of laboratory facilities were included in the extension. Metso has in addition concentrated all fabrics production to Tianjin by moving its Shanghai filter fabrics operations to Tianjin. “This extension is in line with Metso’s strategy for services growth and brings fabrics production closer to customers in Asia”, says Jukka Tiitinen, President, Services business line, Pulp, Paper and Power, Metso. Metso currently has a network of 100 service locations serving these industries around the world and has steadily increased its local presence in China, where the company has been present for 80 years. (May 8, 2013)
UPM finalises the sale of its closed Stracel paper mill to Blue Paper
UPM has completed the sale of assets and part of the land of the UPM Stracel paper mill site to Blue Paper SAS, the joint venture company of VPK Packaging Group NV and Klingele Papierwerke. “We are very pleased that we have been able to find a good solution to the Stracel mill. Blue Paper offers a new industrial future for the site and a new opportunity for a number of Stracel employees. We want to express our thanks to all the parties involved in this process," says Jyrki Ovaska, President of the UPM Paper Business Group.
Blue Paper SAS will convert the mill to produce recycled fibre-based fluting and test-liner. The production is expected to start after completing investments in autumn 2013. Blue Paper SAS is creating 130 new jobs at the mill that have been offered to former Stracel employees.
The sale of Stracel was part of UPM’s plan to adjust its magazine paper and newsprint paper capacity to match the needs of its global customer base originally announced in August 2011. UPM stopped the production of coated magazine paper on the mill on 4th January 2013. (May 6, 2013)
Ahlstrom announces price increases for specialty papers worldwide
Ahlstrom has announced price increases on its specialty paper materials produced by the Label and Processing business worldwide. They will be effective for all shipments made as of July 1. The increase will up to 7% and the amount and timing will depend on the markets served, the product and the agreements in place. Specific details will be discussed with each customer individually in the near future. (May 6, 2013)
Billerud to sale its PM2 in Gävle to SwedPaper
In order to satisfy one of the conditions set by the EU Commission for approval of the combination between Billerud and Korsnäs, an agreement has been signed with SwedPaper AB concerning divestment of a paper machine (PM2) at the Gävle production unit. Production at PM2 in 2012 accounted for approximately 2% of BillerudKorsnäs’ total combined sales volume. The machine produces kraft and sack paper. The PM2 operation employs approximately 60 people, who will be offered employment with SwedPaper. Other operations at the Gävle production unit will not be affected by the sale and will remain in BillerudKorsnäs’ ownership.
The parties have signed long-term commercial agreements, under which BillerudKorsnäs will inter alia supply input items such as pulp, steam and water to SwedPaper. Pricing for pulp will be in line with the market. Under the conditions of the agreement, BillerudKorsnäs will sell SwedPaper an annual volume of pulp amounting to a maximum of 66,000 tons. Sales of pulp to PM2 will be accounted for in the Packaging Paper Business Area. The disposal will not in any way affect the synergy and cost-cutting programme announced earlier for the BillerudKorsnäs Group. The transaction is conditional upon the approval of the European Commission and from relevant authorities. (May 6, 2013)
Ahlstrom's Due Diligence System for EU Timber Regulation now verified by SGS
Ahlstrom, a global fiber-based materials company, announces that the company's Due Diligence System for EU Timber Regulation is verified by a third party. The EU Timber Regulation (995/2010) entered into force on March 3, and requires operators to have a Due Diligence System to prevent them to place illegal timber products on the EU market. Ahlstrom Due Diligence System has been verified by Sociéte Generale de Surveillance, SGS, in Switzerland. The verification statement issued by SGS confirms that all products Ahlstrom supplies from its European plants are made from pulp for which the risk for illegally harvested timber has been assessed in compliance with the requirements of the SGS EU Timber Regulation Due Diligence System. SGS verifies that Ahlstrom has put in place a management system that gathers information about the products intended for supply to the European market. The management system analyses and evaluates the risk of illegally harvested products being placed on the European market. It also includes appropriate risk mitigation procedures to minimize the risk of placing illegal products on the European market.
For forest-based fibers, Ahlstrom supports FSC® and PEFCTM forest certification systems. As of today, a total of 15 Ahlstrom manufacturing plants have Chain of Custody (CoC) Certifications. Ahlstrom purchases the pulp to these sites as PEFC® or FSCTM certified or FSCTM Controlled Wood, which contributes to a negligible risk in addition to other criteria in the EU Timber Regulation. (May 3, 2013)
Smurfit Kappa accelerates the closure of 2 PMs in the UK
As part of its announced strategic investment in the Townsend Hook mill in the UK, Smurfit Kappa is accelerating the closure of the two existing paper machines at the mill. They have a combined capacity of 250,000 tonnes and are expected to close next July 1, after the completion of a consultation process with all employees, instead of 2014 as originally planned. “We are bringing forward the closure in order to extend the training period for our workforce, advance the start-up of the new paper machine and increase the pace of the expected ramp up, explains the Group. The approximate £100 million (€114 million) investment involves the rebuilding of the machine acquired from the Cadidavid liquidator in 2011 into one 250,000 tonne modern lightweight machine which will now be operational by the fourth quarter of 2014 rather than the first quarter of 2015. This investment will significantly increase productivity and lower costs in our UK business”. (May 3, 2013)
Chairlady of Nine Dragons Paper Group receives BIR Papyrus Award
Ms Cheung Yan, Chairlady and founder of Nine Dragons Paper Group, the world’s largest recovered paper based paper manufacturer, will be honoured by BIR in the framework of the Keynote Session on Tuesday, 28 May at 11.30. The BIR Papyrus Award is in recognition of Ms Yan’s service to the industry, her achievement of substantial growth in recovered fibre consumption and for her leadership in social, quality and environmental management. Ms Yan is one of the most influential businesspeople in China. She was named “Entrepreneur of the Year in China” by Ernst & Young and amongst others received the ”China Chamber of Commerce Contribution Award” and the “China Charity Award” by the Ministry of Civil Affairs of the PRC. The Nine Dragons Group is a dedicated advocator of environmentally friendly manufacturing. Its extensive use of recovered paper as raw material has promoted the collection and recycling of domestic waste paper in China, thus facilitating sustainability for Chinese economic development. Ms Yan is also the founder of American Chung Nam, Inc, the world’s largest exporter of recovered paper material, headquartered in Los Angeles. The BIR Papyrus Award was created to honour the “champions” of the paper recycling sector. (April 30, 2013)
Clariant and SK Capital report on progress on their transaction : New company to be called Archroma
Clariant, a world leader in Specialty Chemicals, and SK Capital, a private investment firm with a focus on the specialty materials, chemicals and healthcare sectors, provided an update on the separation process of Textile Chemicals, Paper Specialties and Emulsions. Clariant announced that it agreed to sell the three businesses to SK Capital on 27 December 2012. After closing of the transaction, the three businesses will be regrouped under a new company with the name of Archroma. Archroma will be a world leading supplier of products and solutions to the textile, paper, adhesives and coating industries with a turnover of CHF 1.2 billion and approximately 3,000 employees. The company will be headquartered in Switzerland, which will also host the leadership of Archroma Paper Solutions. Archroma Textile Specialties will be managed from Singapore and Archroma Emulsions Products will be managed from Brazil. The operational and legal separation, including the incorporation of legal entities, licensing and registration activities, the establishment of IT systems, and development of infrastructure and support services as well as ensuring a seamless transition for the Archroma employees is proceeding well. ?An important aspect in establishing the new company is obtaining merger control and governmental approvals and authorizations, several of which remain pending. To ensure a successful separation process that minimizes disruption for both customers and employees, Clariant and SK Capital have targeted a closing of the transaction at the end of the 3rd quarter of 2013. (April 30 2013)
Allimand : new contract for technical papers in China
The French paper manufacturer Allimand has just delivered 2 headboxes to the Chinese company, Zhejiang Kan Specialities Materials Co Ltd, whose target it is to become the world's first supplier of capacitor papers.
Specialised in technical and non-woven papers, the Chinese company Zhejiang Kan was regularly faced with problems regarding quality (formation, basis weight profile) due to inadequate formation technology. With a workforce of 700 people and workshops housing 10 paper machines, the company was looking for a partner capable of supplying advanced technological equipment and meeting the ever increasing high standards of quality required of its papers with basis weights as low as 8 g/m². "Approached as speciality paper (capacitor paper, filter paper) and non-woven paper (teabags, vacuum cleaner bags, release paper) experts, we won the contract, thanks to the recent technological developments that we have perfected over the last two years", explains Fabrice Gilet, Allimand’s Sales Director.
Allimand has other projects in progress in China, in particular the 21st complete paper machine to be delivered at the end of 2013 in the South of China for the production of speciality papers. (April 30, 2013)
Norske Skog: New long-term energy contract for Saugbrugs
Norske Skog Saugbrugs has signed a long-term agreement with Statkraft for the supply of electricity for the paper mill in Halden. The agreement with Statkraft secures an annual supply of 1.0 TWh up to 31 December 2020. The agreement which shall enter into force on 1 May, ensures almost full energy coverage for Saugbrugs over the next few years. Norske Skogindustrier ASA has terminated its long-term group agreement from 1998 that applied to supply of energy in Southern Norway.
Norske Skog Saugbrugs employs around 530 people. The mill has an annual production capacity of 530,000 tonnes of magazine paper (SC/super calendered), with Germany and the United States as the largest single markets. (April 30, 2013)
Metso-supplied world’s first commercial LignoBoost plant successfully starts up at Domtar in the USA
Domtar has successfully started up a commercial-scale LignoBoost™ lignin separation plant at its Plymouth, North Carolina mill, in the USA. This is the first commercial installation of a LignoBoost plant in the world and the technology is supplied by Metso. The LignoBoost plant is integrated with the pulp mill and separates and collects lignin from the pulping liquor. This provides the Plymouth NC mill with numerous benefits. Lignin is a high-quality bio-based alternative to fossil fuel based materials. Separation of a portion of the mill’s total lignin production also off-loads the recovery boiler, and allows an increase in pulp production capacity.
Domtar’s production of BioChoice™ lignin began in February with a targeted rate of 75 tons a day. A wide range of applications and markets for BioChoice lignin are being developed including fuels, resins, and thermoplastics. Having lignin available in large quantities and high quality from the Domtar plant will help develop the future lignin market for the industry.
“The technology has been developed by Innventia in Sweden, in association with Chalmers University of Technology. Metso purchased it and is furthering the development. We continue to work together to refine the technology to develop new lignin applications in partnership for current and future customers. LignoBoost has generated a great deal of interest in the pulp & paper industry globally and this is a major breakthrough for all parties involved in this first-of-a-kind project,” says Gene Christiansen, Senior Manager, Business Development Innovations at Metso’s Power business line for North America.
BioChoice is a trademark of Domtar and LignoBoost is a trademark of Metso. (April 30, 2013)
PMT at Tissue World in Barcelona
Last March PMT exhibited at the Tissue World 2013, the premiere exhibitions and conferences for the international Tissue Industry, first time located in the new Fira de Barcelona Convention Centre. PMT booth proved to be a favourable promotional opportunity to meet consolidated and potential customers. On this occasion PMT also took part to the Technical Conferences with the speech entitled “Steam System, Back to Basics” hold by Clive Butler, PMT Yankee Dryer Specialist. In addition, the biannual Tissue World Conference and Exhibition celebrated its 20th anniversary and PMT has been awarded for its long lasting support to the event since 1993. (April 29, 2013)
PMT sign commercial agreements with Elof Hansson Group and Yonei
PMT continues to strengthen its worldwide business presence, for this reason the company has signed with Elof Hansson a commercial agreement for India, the Middle East and South America. Elof Hansson headquarter is located in Gothenburg, Sweden and they have sales offices in many countries.
In addition, PMT also intends to strength its position in Asia thanks to the new agency contract with Yonei in Japan. PMT and Yonei have concluded an exclusive distributorship agreement with regard to the paper machines and equipment of PMT product lines. Yonei has been in business since 1897 and is a well known leading company on its domestic market. (April 29, 2013)
Södra Cell Tofte granted temporary reprieve
Södra Cell will be continuing production at its Tofte mill in Norway up to next 15 June. The County Chairman (of the local council) has extended the notification period for closing Södra Cell Tofte to 30 April 2013 and Södra will be further evaluating the situation and the process over the next few days. Södra had originally intended to cease production at Tofte at the end of April after failing to secure a feasible deal for the mill which was put up for sale last October. The Group has been attempting for some time to achieve profitability at Södra Cell Tofte, but it has not been possible to turn the tide despite a number of measures being implemented. However, production at present is stable, hence the reprieve.Tofte was purchased by Södra in 2000. Its production capacity amounts to 400,000 tonnes of chemical paper pulp and it employs 305 staff. (April 29, 2013)
Södra raises softwood pulp price to US$ 890 per tonne
As of May 1, Södra has raised the price of its softwood pulp to US$ 890 in Europe. The Swedish producer explains that market balance has been improved during the first quarter 2013, which has resulted in lower global market pulp stock levels for softwood pulp. (April 29, 2013)
Zellstoff- und Papierfabrik Rosenthal (ZPR) has chosen the new Metso Metra for its pulp mill in Blankenstein, Germany
Zellstoff- und Papierfabrik Rosenthal (ZPR), one of the most modern pulp mills in Europe, has chosen the new Metso Recovery Analyzer (Metso Metra) for its pulp mill in Blankenstein, Germany. In addition to ZPR, orders have been received from mills in North America, South America and the Nordic countries. During the past decades, Metso’s partnership with ZPR has included numerous projects. Using fully automatic real-time sampling and standard titration methods, the mill will be able to optimize its causticizing process for stable and high-quality cooking liquor production.
Metso Metra represents the latest generation of fully automatic titrators for chemical recovery optimization. It was introduced in October 2012. In addition to causticizing measurements, it may feature as an option unique online reduction degree measurement technology. This, together with process optimizing controls, enables more environmentally friendly recovery boiler operation, higher process throughput, maximum uptime as well as savings in cleaning chemical and fresh lime costs.
The Rosenthal pulp mill is a subsidiary of Mercer International. With its sister companies Zellstoff Stendal and Zellstoff Celgar, ZPR is one of the leading manufacturers of Northern Bleached Softwood Kraft pulp in the world. (April 29, 2013)
Metso’s Pulp, Paper and Power business to initiate a cost reduction program
Metso’s Pulp, Paper and Power business is to initiate a global cost competitiveness program to adapt to changes in the marketplace and improve profitability. The program will target an annual cost reduction of approximately EUR 100 million by 2016. “The program is aimed at improving our cost competitiveness in a market that is continuing to experience major structural changes,” says Pasi Laine, President of Metso’s Pulp, Paper and Power business. Permanent structural changes in Metso’s Pulp, Paper and Power business’ operating environment have impacted its operations and undermined its competitiveness and profitability. The underlying reasons for the situation lie in the continuing downturn in demand for paper machinery and the growing trend towards cheaper technology solutions.
“New communications technologies are continuing to weaken the consumption of printing and writing paper grades and have been reflected in a slow-down in the market for new paper machines. A lighter cost structure and greater flexibility will be essential to competing more effectively as we move forward,” Pasi Laine says.
“In the power generating sector, we are also experiencing a slower investment cycle in Europe and a significant decrease in demand in North America due to low energy prices resulting from the increased use of shale gas. We must take action to reduce our overall costs if we are to be able to reach our targeted profitability level on new orders,” he adds.
Planning of the program will now begin in all of Metso Pulp, Paper and Power's organisations, at all locations. (April 29, 2013)
Metso strengthens global service network by opening center next to Suzano’s new mega pulp mill in Brazil
Metso will expand its global service network by opening a new service center to serve Suzano Papel e Celulose S.A.’s 1.5-million-tonne greenfieldf pulp mill in Maranhão, northeastern Brazil. The service center will supply roll grinding and other maintenance services, and will have a storage for selected spare parts and consumables. The center will be located in Imperatriz, close to the Maranhão mill, and will be operational in late 2013. The groundbreaking ceremony for the new service center was held in Imperatriz on April 25.
In addition, Metso and Suzano Papel e Celulose S.A. have agreed that Metso will establish mill maintenance for the entire Maranhão mill. With the agreement Metso will take responsibility for the establishment of the mill’s maintenance management system and support Suzano in establishing materials management operations. The value of the agreement will not be disclosed.
All main technology for the Maranhão pulp mill is being supplied by Metso. Metso’s scope of supply covers wood handling, cooking plant and fiberline, pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln, and an integrated automation solution for all process areas. The mill is scheduled to start up in the second half of 2013. Suzano Papel e Celulose is a forestry-based company and one of the largest vertically integrated producers of pulp and paper in Latin America. The company’s main products, sold on the domestic and international markets, are eucalyptus pulp, printing and writing paper and paperboard. (April 26, 2013)
Sequana First-quarter 2013 results : Operating performance hit by a very tough economic environment that weighed on demand for printing and writing papers
• Sales down 9.4% (year on year) to €892 million reflecting a drop in volumes of printing and writing
papers (10% in distribution and 6% in production)
• EBITDA down to €23 million versus €40 million for Q1 2012 on the back of lower
volumes and downward pressure on selling prices
• Net loss of €19 million
In the first quarter of 2013, the recession in Europe coupled with a weak global economy in general continued to accentuate the structural decline in demand for printing and writing papers against a backdrop of strong downward pressure on selling prices. First-quarter volumes declined by 10% in distribution and by 6% in production. Consolidated sales came in at €892 million, down 9.4% (down 8.4% at constant exchange rates) year-on-year.
EBITDA dropped 43.2% to €23 million from €40 million in first-quarter 2012, reflecting the negative impact of lower volumes and strong downward pressure on selling prices, partially offset by the continuing reduction in overheads. Recurring operating income was €7 million (including a €4 million gain arising on a change to a pension plan) versus €22 million for the first quarter of 2012.
Including financing costs, taxes and non-recurring items (mainly restructuring costs incurred by Antalis and Arjowiggins totalling €8 million), net loss attributable to owners totalled €19 million, compared to net income of €2 million in the same period in 2012. Consolidated net debt stood at €718 million compared to €875 million at 31 March 2012. This €157 million drop is attributable to good working capital management and the strengthening of the Group’s equity by an amount of €129 million, net of the acquisitions carried out in 2012 in the Packaging sector.
The legal documentation relating to the agreement in principle obtained on 26 March 2013 to extend the maturity of Arjowiggins’ credit facility through to 30 November 2015 is currently being finalised. Discussions have also begun with the Group’s banks to extend the maturity of Antalis’ €540 million credit line.
The decline in sales in first-quarter 2013 accelerated compared to fourth-quarter 2012. In light of the current economic climate, it is unlikely that there will be any significant improvement in terms of volumes for printing and writing papers in the three months to 30 June 2013. Sales for the first half of 2013 will be down on the same period in 2012 and the shortfall will not be made up over the rest of the year despite a more favourable basis of comparison in the six months to 31 December 2013.
However, the Visual Communication and Packaging segments will drive business for Antalis and Arjowiggins should benefit from a steady performance from its specialty activities, particularly the Security division with a full order book throughout 2013.
Since April, the Group has implemented selling price increases for printing and writing papers and intends to pursue this strict pricing policy for the rest of the year.
In the current environment, Sequana will continue and step up its cost reduction policy, particularly in logistics operations in Europe and in its industrial business.
Sequana reported sales of €3.9 billion in 2012 and employed some 11,000 people worldwide.
Analysis by business
Demand for printing and writing papers in the first quarter of the year continued to decline in Europe, although there were discrepancies from one country to the next. The volume decline was more significant in Germany, Poland and the Iberian and Nordic countries, while business fared better in the UK and Switzerland as well as in South America within emerging markets. Demand was stable in the Packaging and Visual Communication segments and the Packaging division benefited from the
seamless integration of the entities acquired in 2012 in the UK, Germany, the Czech Republic and Chile. Antalis’ sales were €634 million, down 8.2% on first-quarter 2012, or 7.3% at constant exchange rates.
Arjowiggins’ sales were €324 million, down 10.8% on first-quarter 2012, or 9.8% at constant exchange rates. This decline was attributable mainly to falling volumes for printing and writing papers in Europe amid strong downward pressure on selling prices. Demand held up better for recycled paper in most countries, along with recycled pulp and most of the specialty businesses (particularly laminated, transfer, tracing and tissue papers). The Security division was hurt by unfavourable first-quarter 2012 comparatives, as well as by activity phasing issues, that should be absorbed in the coming months. (April 26, 2013)
Metso to supply containerboard line for Lee & Man in China
Metso will supply Lee & Man Paper Manufacturing Ltd. with an OptiConcept M containerboard production line for their Chongqing site in Sichuan Province in China. The start-up of the production line is scheduled for 2014. The value of the order will not be disclosed. Metso’s novel OptiConcept M production line stands for economy of total investment, personnel safety and machine usability as well as reduction of environmental load.
“This production line optimizes the machine investment in line with the mill’s capacity needs and ensures optimized productivity at minimal operational cost,” summarizes Sami Anttilainen, R&D Director, Paper business line, Metso.
The design of the machinery allows, for instance, for easy and safe changing of rolls and wear parts, thus reducing the total duration and cost of service and maintenance shutdowns. An spacious walkway design improves accessibility and safety, also on the drive side of the machine. The main part of the order is included in Metso’s Pulp, Paper and Power second quarter 2013 orders received. The automation package is included in Automation’s second quarter 2013 orders received.
The 7.25-m-wide (wire) PM 20 will produce testliner grades out of recycled raw material in the basis weight range of 70-160 g/m2. The production capacity of PM 20 will be approximately 1,160 tonnes per day and the design speed 1,100 m/min.
Lee & Man Paper Manufacturing Ltd. manufactures various linerboard and corrugating medium grades for different industrial packaging purposes and operates also in pulp making, plantation and recovered paper collection. At present, the company has five plants in China. (April 26, 2013)
Norske Skog: Challenging markets
Lower margins in the quarter were due to lower selling prices and seasonal fluctuations in demand. Norske Skog is meeting this challenge through the closure and conversion of paper machines. Price increases are expected during the second half as a result of the considerable capacity closures that have been announced. Norske Skog continues to cut costs and improve productivity. Investments are also being made to improve profitability on certain machines. There is also focus on improving the regulatory environment in Norway.
Norske Skog had gross operating earnings (EBITDA) in the first quarter of 2013 of NOK 174 million, down from NOK 385 million in the first quarter of 2012.
The decline was mainly due to lower prices. Negative cash flow from operating activities of NOK 106 million in the first quarter, which was significantly weaker compared to the first quarter of 2012. The decrease was due to weaker margins, restructuring activities in Australia and seasonally increased working capital.