|
Norske Skog Plans to Enter the Pulp Market with New Production Line at Saugbrugs
June 3, 2024 - Norske Skog announced the start of a study to form the basis of building a bleached chemi-thermomechanical pulp (BCTMP) production line at its Saugbrugs mill in Halden, Norway.
The potential new pulp line is based on reutilizing a portion of the mill that housed PM6, which was heavily damaged during a rockslide that occured in April of 2023. PM6, which had the capacity to produce 260,000 tonnes per year of SC (supercalendered) magazine paper, was shut down and remains idle.
In addition, Norske Skog said that part of the investment to build the new pulp line would be covered by the portion of the insurance settlement that has not yet been paid out by the insurance company, amounting to NOK 615 million, for the development of new business opportunities at the plant.
According to Norske Skog, the new BCTMP line will produce approximately 300,000 tons of competitive pulp to meet the growing demand, especially for products in the packaging market. Saugbrugs has adequate access to green energy, and thus continue to deliver products with very low carbon footprint.
"Norske Skog will initiate a main study that will form the basis for a final board decision to build a BCTMP plant at Saugbrugs in Halden," said Geir Drangsland, CEO of Norske Skog. "The net investment in BCTMP production will range between NOK 1.5 to 2 billion (EUR 140-180 million). The construction period is expected to last for two years starting in the second half of 2025. We expect to achieve a return on net investment of more than 20%. This will be the first significant investment at Saugbrugs outside of publication paper in modern times."
The BCTMP production will be based on fresh fiber, and the mill already has access to adequate energy capacity.
Norske Skog noted that the investment will utilize existing machinery, equipment and infrastructure, reducing the total investment by approximately 50% compared to a pure greenfield investment case. There will be minor adjustments to the existing infrastructure such as in- and outbound distribution systems, raw material processing machinery and equipment, in addition to the wastewater treatment plant.
Saugbrugs will apply to appropriate authority for electrical grid access and all necessary emission permits, building construction permits and other regulatory necessities, the company said.
Final investment decisions are planned in the first half of 2025, and the start of BCTMP production is planned in the first half of 2027, and full utilisation is expected in first half of 2028.
"It is gratifying for equipment suppliers, lenders, wood and other raw materials suppliers, shareholders, and customers that we are investing in and establishing a plant for bleached chemi-thermomechanical pulp at Saugbrugs. But those who have the most reason to rejoice, are our employees at Saugbrugs. The new revenue streams from mechanical pulp, along with the production of SC paper at Saugbrugs, will make the factory more profitable and robust, ensuring job security," Drangsland concluded.
The Saugbrugs mill currently operates two paper machines for the production of SC paper: PM4 has the capacity to produce 100,000 tpy and PM5 has the capacity to produce 100,000 tpy.
Norske Skog emphasized that the Saugbrugs mill will continue to be a reliable supplier of SC-publication paper also after the start of BCTMP production.
Norske Skog is a leading producer of publication paper with market positions and customer relations in Europe and Australasia. The Norske Skog Group operates four mills in Europe, which produce publication paper, recycled packaging paper, energy and bioproducts. In addition, the Group operates one paper mill in Australia.
SOURCE: Norske Skog |
|
|
UPM to Permanently Reduce Graphic Paper Capacity in Germany by 610,000 Tonnes
May 29, 2024 - UPM Communication Papers said that it plans to permanently close its Hürth newsprint mill and to shut down one fine paper machine at Nordland Papier (PM 3) in Dörpen — both assets are located in Germany. If realized, the measures would result in annual reductions of 330,000 tonnes of newsprint paper capacity and 280,000 tonnes of uncoated fine paper capacity in UPM’s portfolio. These plans are a continuation of necessary steps to proactively align with customer demand and ensure competitiveness.
Should the plans be implemented, the number of positions affected is estimated approximately at 135 in Hürth and 210 in Dörpen. The participation process with the workers council will start immediately in line with local legislation.
Both paper machines affected by the planned measure would stop graphic paper production latest by the end of 2024. Production on the remaining paper machines at Nordland Papier will continue as before.
UPM explained that graphic paper demand has continued to decline, reflecting the overall trend in paper consumption driven by digitalization. The decline in demand accentuated in 2023 and a durable recovery is not expected, resulting in significant overcapacity in the market.
“In recent years, we have already responded to overcapacities in the global paper markets with selective capacity reductions, always considering the competitiveness of our business,” said Antti Jääskeläinen, Executive Vice President, UPM Communication Papers. “The planned closures would ensure an efficient and flexible use of our remaining paper assets and will therefore enable UPM Communication Papers to stay a reliable partner to our customers in the long run.
“However, we are aware that today’s announcement is very difficult news for our employees in Hürth and in Dörpen. We are committed to conducting a fair dialogue with employee representatives to seek responsible solutions for our workforce,” Jääskeläinen said.
UPM noted that the plans announced today would strengthen the overall cost competitiveness of UPM Communication Papers and are a prerequisite for consistent, long-term paper operations. UPM would recognize restructuring charges of EUR 113 million (EUR 68 million cash impact and an impairment of EUR 45 million) as items affecting comparability in its Q2 2024 result.
The planned actions are estimated to result in annual fixed cost savings of EUR 45 million, UPM concluded.
About UPM Hürth
UPM Hürth manufactures newsprint papers with the annual capacity of 330,000 tonnes. Located in North Rhine Westphalia, Germany the site employs around 135 people.
About UPM Nordland Papier
UPM Nordland Papier produces uncoated and coated office and printing papers as well as specialty papers. The Dörpen paper mill is the largest of its kind in Europe and produces up to 1.2 million tons of fine and specialty paper annually. Located in Lower Saxony it employs approximately 1,150 people at the paper mill.
SOURCE: UPM |
BC Council of Forest Industries Urges Government to Move Faster to Stabilize Timber Supply
 May 13, 2024 – The BC Council of Forest Industries’ (COFI) President and CEO, Linda Coady, made the following statement in response to ongoing mill closures and curtailments in British Columbia, Canada:
“Escalating closures and curtailments of lumber, pulp and paper mills in BC mean the provincial government needs to move faster to stabilize timber supply. Additional transition measures are needed within the next 60 days to address current challenges in approval and permitting systems, and changing land use policies that are leading to dramatic declines in harvest levels.
“Each time a mill closes in BC, there is a substantial direct impact on employees and their families, with further consequences for local communities as well as across supply chains. The loss of high paying jobs, local tax revenue and relocation to new employment opportunities have lasting effects in rural communities. It also creates uncertainty regarding the future of critical forest sector infrastructure and capacity in BC.
“COFI recognizes that Premier David Eby has appointed Andrew Mercier as Minister of State for Sustainable Forestry Innovation to work with BC Forest Minister Bruce Ralston to stabilize fibre supply. We urge the province to accelerate the work being done to find solutions.
“The forest industry has and continues to be one of the economic drivers in the BC economy – key to BC’s manufacturing productivity, government revenue and exports; which can be seen in COFI’s latest Economic Impact Study. Job numbers and harvest levels are highly correlated. The industry depends on timber supply (also known as fibre supply) and new investment to create jobs and produce the low-carbon products to meet growing demand for building materials and systems as well as biomaterials for energy and other renewable products.
“With dropping harvest levels, mill closures and curtailments have continued and resulted in the loss of 10,000 jobs (direct, indirect and induced) in 2023. Access to economic fibre has fallen from 60 million cubic metres in 2018 to 35 million cubic metres of actual harvest in 2023. The actual harvest in 2023 was 42 per cent below the allowable annual cut last year.
“The past few months have seen increased discussions across industry, First Nations, labour, contractors, local communities and the provincial government on what can be done to stop this trajectory and stabilize fibre supply in both the short and long term. Now is the time for additional steps to be taken to build investor confidence and ensure a long standing and foundational industry continues to benefit the province.”
The BC Council of Forest Industries (COFI) represents the majority of lumber, pulp and paper, and manufactured wood producers across the province — an industry that remains a cornerstone of the economy, supporting good jobs and a better quality of life for British Columbians. COFI advocates for the interests of its members and works with government, First Nations, communities, labour and other partners to promote a healthy, diversified and sustainable forest industry that benefits people and families across BC.
SOURCE: BC Council of Forest Industries (COFI) |
|
CMPC Announces Intention to Build 2.5 Million TPY Pulp Mill in Rio Grande do Sul, Brazil
April 30, 2024 - CMPC on April 29 signed an agreement with the State of Rio Grande do Sul (Brazil) on a protocol of intentions to move forward in the evaluation of a comprehensive project, which will include a new pulp mill, located 15 kilometers from the city of Barra do Ribeiro in Rio Grande do Sul.
The project, called Natureza, has an integral scope that combines industrialization, road and port infrastructure, sustainable associative forestry, conservation and cultural promotion, and involves the construction of a pulp mill with the capacity to produce up to 2.5 million tons per year of bleached short-fiber kraft pulp (BHKP) — with the possibility of subsequent expansion — in accordance with the highest world standards of environmental protection, efficiency and quality.
In line with the agreed protocol, CMPC has submitted permit applications for various monitoring activities of the Fundacao Estadual de Protecao Ambiental Henrique Luis Roessler (FEPAM), a technical agency of the Rio Grande do Sul State Environmental Protection System. Thus, specialized teams will be able to carry out the technical studies and environmental assessments required for the final preparation of the industrial project which, if all permits and authorizations are obtained, will be submitted to CMPC Board of Directors in mid-2026.
If the project is approved, it would imply an investment of approximately US$4 billion for the new industrial unit, in addition to US$420 million in various road infrastructure works and US$150 million for the development of a new port terminal in Rio Grande, as well as an expansion of the port terminal currently in use. It is not possible at this stage, to determine the economic impact of this decision, CMPC said in a written statement.
CMPC produces pulp, paper, tissue and paper products, which it sells locally and exports. With headquarters in Chile, CMPC currently has operations in Brazil, Argentina, Uruguay, Mexico, Colombia, Peru and Ecuador.
SOURCE: CMPC |
|
West Fraser Completes Sale of Its Two Pulp Mills in Western Canada to Atlas Holdings
April 22, 2024 - West Fraser Timber Co. Ltd. today announced that it has completed the sale of its Quesnel River Pulp mill and Slave Lake Pulp mill (pictured above) to an affiliate of a fund managed by Atlas Holdings following completion of customary regulatory reviews and satisfaction of customary closing conditions.
West Fraser first announced its intention to sell the two pulp mills to Atlas Holdings in September of 2023. At that time, West Fraser said the combined total cash proceeds from the sale are US$120 million.
The mills will be operated by Millar Western Forest Products, which joined the global Atlas family of manufacturing and distribution businesses in 2017.
"We would like to thank our dedicated employees for their many years of service to West Fraser and the communities of Quesnel and Slave Lake," said Sean McLaren, President & CEO West Fraser. "The sale of these two pulp assets, along with the disposition of Hinton Pulp earlier this year, enables West Fraser to focus its resources on becoming the premier building products company in North America."
Quesnel River Pulp and Slave Lake Pulp both produce Bleached Chemi-Thermomechanical pulp ("BCTMP") used to make paper products.
West Fraser Timber Co. Ltd. (TSX and NYSE: WFG) is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom, and Europe. From responsibly sourced and sustainably managed forest resources, the company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, other residuals, and renewable energy.
SOURCE: West Fraser Timber Co. Ltd. |
|
|
