Pulp and Paper

Millar Western

Canfor Agrees to Acquire Millar Western Solid Wood Operations for $420 Million

Dec. 21, 2021 - Canfor Corporation on Dec. 16 announced that it has entered into an agreement with Millar Western Forest Products Ltd. to acquire the company's solid wood operations and associated tenure for $420 million, including $56 million in working capital. The purchase price represents a multiple of 3 times 2020 and 2021 average EBITDA. Canfor expects to generate at least $25 million in annual synergies principally related to alignment with the Company's marketing programs and operational enhancements.

Millar Western's solid wood operations, located in Alberta, Canada, will add 630 million board feet of production capacity and have access to a globally competitive, high-quality timber supply. The assets consist of three well-capitalized operations including two sawmill complexes in Whitecourt and Fox Creek and the high-value, specialty Spruceland Millworks facility in Acheson that is dedicated to serving strategic markets and generates higher, more stable returns.

"The acquisition of Millar Western's solid wood operations, including the highly successful Spruceland Millworks facility, is well aligned with Canfor's strategy to grow and diversify our global operating platform. We are excited to expand our Alberta operations to meet the growing demand of our customers for high-quality and sustainable wood products," said Don Kayne, President & CEO, Canfor. "We look forward to welcoming Millar Western's dedicated and skilled employees to the Canfor team."

Canfor anticipates financing this transaction with cash and liquidity on hand.

The transaction is expected to close in the first quarter of 2022 and is subject to customary closing conditions including regulatory approvals.

SOURCE: Canfor Corporation


Canfor Pulp Products

Canfor Pulp Announces Production Curtailments in Response to Supply Chain Challenges

Dec. 2, 2021 - Canfor Pulp Products is announcing temporary NBSK and BCTMP production reductions at Northwood Pulp and Taylor Pulp in response to the significant transportation interruptions being experienced in British Columbia (BC).

Canfor's pulp shipments have declined as a result of the recent weather-related transportation disruptions. With pulp mill inventories nearing capacity, the company’s pulp production will be reduced until such time as the BC transportation network is able to return to more-normal operating conditions. This will result in reduced production achieved through a minimum two-week curtailment of Canfor's NBSK production at Northwood Pulp and a minimum four-week curtailment of the production of BCTMP at Taylor Pulp.

"As a result of the extreme rainfall and flooding that BC has been experiencing in recent weeks, the rail and highway networks have been substantially impacted. Our employees have worked very hard to mitigate the impacts of the supply chain challenges and it has now become critical to reduce production to manage inventory levels and ensure employee safety until the transportation network returns to more normal operations," said Canfor Pulp's Chief Executive Officer, Don Kayne.

Canfor Pulp is closely monitoring the supply chain challenges in BC and will continue to adjust operating plans to reflect current weather and transportation conditions over the coming weeks.

SOURCE: Canfor Pulp Products


West Fraser

West Fraser Provides Operational Update Regarding Severe Weather, Flooding

Nov. 30, 2021 - West Fraser Timber Co. Ltd. today announced that in response to the flooding situation in British Columbia it is providing the following update on operating conditions and does not anticipate providing another update ahead of its annual and fourth-quarter earnings release scheduled for February 15, 2022.

Operational Update

In recent weeks, severe weather and flooding in B.C. has caused transportation disruptions to rail and truck routes, including limiting access to ports for overseas shipments. In the second half of November, following the weather event that led to road and rail closures, the Company's western Canadian lumber weekly shipments have declined by approximately 25%-30%.

In addition, our pulp shipments to the port of Vancouver, from where the majority of our export pulp ships, have averaged less than 20% of normal volumes.

While West Fraser is utilizing alternative transportation routes and methods to the extent they are available to continue servicing customers, the magnitude and duration of the impact from current weather events remains uncertain. Therefore, West Fraser has reduced operating schedules at multiple western Canadian locations and will continue to make such adjustments as necessary in order to manage inventory levels, raw material supplies and our integrated fibre supply chain.

At the current time, it is not possible to estimate when full transportation services will resume or when the backlogs resulting from the interruptions will be cleared.

About West Fraser

West Fraser 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. West Fraser's products are used in home construction, repair and remodeling, industrial applications, papers, tissue, and box materials.

SOURCE: West Fraser Timber Co. Ltd.


Old Corrugated Containers (OCC)

Celadon to Open North American Headquarters and Recycled Pulp Operations in Savannah

Nov. 29, 2021 - Georgia Governor Brian Kemp on Nov. 12 announced Celadon Development Corporation (“Celadon”) will invest more than $155 million in opening a North American headquarters and a state-of-the-art recycling and advanced manufacturing facility in Chatham County, creating 117 jobs in the Savannah area. This represents Phase 1 of Celadon’s major investment project in Georgia.

“Celadon choosing Georgia for their North American headquarters, along with a state-of-the-art recycling and advanced manufacturing facility, highlights our state's ability to recruit companies on the cutting edge of their respective industries,” Governor Kemp said.

According to the Governor’s office, in addition to establishing a North American headquarters and a recycled brown pulp manufacturing facility, Celadon will open a second production line of its recycling and manufacturing operations during Phase 2 of its expansion to Georgia.

Additionally, the company has opened a dry processing plant for clean old corrugated cardboard (OCC), and plans to establish a logistics operation in Chatham County to facilitate its logistical needs.

“The State of Georgia, the Georgia Ports Authority, and the Savannah Economic Development Authority have made our project possible,” said Tim Zosel, CEO of Celadon Development Corporation. “The teams are incredibly proactive and we could not have developed this project without their support.”

Celadon companies process old corrugated cardboard and waste paper into clean commodity products for export. The Celadon Development Corporation plant in Savannah will produce 450,000 tons of product per year from each operation line. When fully built, it is expected that the plant will produce 900,000 tons of product per year.

Once both phases of Celadon’s project are complete along with its dry processing plant, the company expects to export approximately 87,000 twenty-foot equivalent units (TEUs) through the Port of Savannah annually.

Celadon opened its 65,000-square-foot dry processing manufacturing facility at 48 Artley Road in Savannah this month. The company is hiring for truck drivers as well for positions in manufacturing, production, and administrative services.

“At the Georgia Ports Authority, we are proud to support domestic production and jobs for Georgians,” said GPA Executive Director Griff Lynch. “We’re happy to welcome Celadon to the Peach State and to the community of exporters who rely on the Port of Savannah.”

About Celadon

Celadon is a joint venture partnership of Kamine Development Corporation Sustainable Infrastructure ("KDC") and Nicollet Industries (“Nicollet”) formed to deploy large-scale recycled brown pulp infrastructure across North America to create a closed-loop, waste-free industry segment while leveraging its significant experience in the development, financing, construction and operation of industrial projects.

SOURCE: Office of Governor Brian P. Kemp


Morten Brühl to Join Elof Hansson in 2022 as Its New VP Global Shipping

Morten Brühl Nov. 19, 2021 - Elof Hansson has appointed Morten Brühl as its new VP Global Shipping. He replaces Staffan Nordin, who is leaving his role for another position at Elof Hansson Group, and Carina Wallin, who, after more than 40 years in the company, is retiring.

Mr. Brühl joins Elof Hansson from APM Terminals Management BV in The Hague, which is part of the A.P. Moller Group. He will take up his new role in March 2022.

"Morten will be a strong addition to the company and management team with his extensive international experience and network of contacts in all parts of shipping and logistics" said Mikael Forslund, CEO of Elof Hansson Group.

Mr. Brühl commented, "I have always admired the businessmen who work at Elof Hansson for their competence and commitment when it comes to service for their customers. I am therefore incredibly happy to start at Elof Hansson and be involved in shaping the successes of the future for our customers and suppliers.”

The Elof Hansson Group conducts international trade in forest products, industrial and consumer products across the world. 

SOURCE: Elof Hansson Group

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