w h a t ’s n e w
N E W S S h O r T S F r O M T h E P u L P A N d PA P E r W O r L d
C O r P O r AT E S T r AT E G Y namely the maximum funded debt to capitalization ratio of 65% and
International Paper to close its the minimum interest coverage ratio of 2.25x, will remain unchanged
until maturity in October 2012.
Inverurie mill in Scotland
International Paper has announced that it will close its Inverurie, Scotland, Tembec advises on impact of filing
mill by the end of March. A three-month employee consultation process Tembec advised that as a result of the filing of a notice of intention to make
failed to find a financially viable alternative future for the mill. The closure a proposal under the Bankruptcy and Insolvency Act (Canada) by Marathon
removes 250,000 tonnes/yr of uncoated freesheet capacity from Interna- Pulp, a joint venture in which it holds a 50% interest, Tembec will immedi-
tional Paper’s European output. ately cease proportionately consolidating the financial results of Marathon in
Commenting on the announcement, Mary Laschinger, president of Inter- its financial statements. This will result in a one-time gain of $3 million in the
national Paper Europe, Middle East, Africa and Russia, said: “Over the last March 2009 quarter. During the twelve-month period ended December 27,
three months, we have worked hard together with the appropriate repre- 2008, the joint venture had increased Tembec’s reported sales by $61 million
sentatives to evaluate alternatives for the future of the mill. Unfortunately, and had generated EBITDA of $2 million.
none of the options provided a business plan that was financially viable
and that would safeguard jobs.” Stora Enso sells Summa Mill site to Google Group
Stora Enso has signed an agreement to sell the buildings and most
of the Summa Mill site in Finland to Google Group of Companies for
Mill project rescheduled approximately Euro 40 million. The sale is expected to close by the
Stora Enso has decided to defer its final decision regarding the proposed pulp end of the first quarter 2009. The transaction will improve operating
and paper mill project at Nizhny Novgorod in Russia to a later stage due to profit by approximately Euro 38 million, of which approximately Euro
the weak global financial situation and near-term outlook for the forest prod- 15 million is a reversal of earlier impairment, and will be recorded as
ucts industry. The project is not cancelled by this decision, and various actions a non-recurring item in the first quarter 2009 results.
will be taken to facilitate possible implementation of the project in the future. Stora Enso and Google have agreed that part of the mill site will be
further transferred to the City of Hamina for other industrial uses.
West Fraser making additional pulp production Paper production at Summa Mill ended in January 2008 and will not
curtailments be resumed.
West Fraser announced that the company’s two BCTMP mills will take
additional production curtailments that will reduce total production Catalyst Paper stages tax revolt
by approximately 50,000 tonnes over the period ending May 31, Catalyst Paper’s CEO has told the BC provincial government and four town mu-
2009. These curtailments at Quesnel River Pulp (British Columbia) nicipalities that unless they agree to cut the company’s property tax bill more than
and Slave Lake Pulp (Alberta) are in addition to the 25% 75% he will permanently shut an entire facility.
reduction in operating rates implemented at each Analysts estimate the company paid C$30 million in total
mill in late 2008. The additional reduction Top Ten property taxes last year for its four mills and a paper
of production is in response to continued headlines on Risi recycling location.
weakening of demand for high-yield pulp. WeBsiTe lasT MonTh Effective July 1, the company says it will pay
taxes only for goods and services it actually