Capital Projects
Departments
Although world economies are still coping with the effects and after effects of the recent economic crises, industry prospects for 2011 seem to be positive, overall.
The PM40 closed 07 January 2011 at 1932.24
The PM40 closed 07 January 2011 up 16.5% compared to the 08 January 2010 level.
In this issue of Disconnected Comparisons, we evaluate Amcor Limited (AMCRY) and Domtar Corp. (UFS).
Reported insider trading since the last issue of PaperMoney reflects sales of 5710 shares at an average price of USD 39.93 per share.
Supplier News
Metso will supply Oü Helme Energia with a biomass power plant for combined heat and power production.
NOREXECO
Acadian Timber Corporation will hold its 2010 fourth quarter and year-end conference call and webcast on 09 February 2011.
Canfor Corporation will hold a conference call on 14 February 2011, at 8:00 a.m. Pacific Time.
Domtar Corp. will release its fourth quarter 2010 financial results on 04 February 2011.
International Paper will release fourth-quarter and full-year 2010 earnings on 03 February 2011.
MeadWestvaco Corp. will release its fourth quarter and full-year 2010 results on 26 January 2011.
Packaging Corporation of America will hold a conference call to discuss earnings on 25 January 2011, at 10:00 a.m.
Plum Creek will release its fourth quarter 2010 and full year 2010 earnings on 31 January 2011.
Potlatch Corp.will release fourth quarter 2010 and full year 2010 earnings on 08 February 2011.
Rayonier Inc. plans to release its fourth quarter 2010 earnings on 25 January 2011.
Smurfit-Stone Container Corporation will announce financial results for the fourth quarter ended 31 December 2010, on 27 January 2011.
Temple-Inland Inc. will release its results for fourth quarter and full year 2010 on 08 February 2011.
Wausau Paper will release 2010 fourth-quarter and year-end financial results on 07 February 2011.
Weyerhaeuser Company will release fourth quarter 2010 results on 04 February 2011.
Corporate Finance
KapStone and Packaging Corp. today reported that the company prepaid the balance of earn-outs due to International Paper Co.
Plum Creek has used the proceeds from its recent USD 575 million, 4.7% bond issuance to prepay USD 463 million of debt.
Verso Paper Corpoeration and subsidiaries are proposing to issue USD 360 million
aggregate principal amount of their second priority senior secured notes.
Joint Venture
Western Forest Products has completed the exercise of an option to sell its interest in the joint venture with Brookfield Properties.
Major Expenditures
Stora Enso is strengthening its leading position in corrugated packaging in the growth markets of Central and Eastern Europe by renewing containerboard capacity at its Ostrołęka mill in Poland.
Tembec announces a capital investment totalling CAD 25.7 million for its pulp mill located in Matane, Quebec.
Mergers & Acquisitions
Norske Skog has entered into an agreement concerning sale of its Klosterøya property.
UPM-Kymmene Corporation has entered into an agreement to acquire Myllykoski Corporation and Rhein Papier GmbH.
Major Announcements
Production is set to start at Braviken sawmill, the largest in Scandinavia.
Rayonier will evaluate the potential conversion of the existing fluff pulp fiber line at its Jesup, Georgia, mill to produce high purity cellulose specialties pulps.
SCA Timber is about to open a sales company in Hong Kong – SCA Timber China; S.E. Asia Ltd.
Tolko Industries Ltd. announced today that it will be permanently closing its veneer operation at Kelowna, British Columbia.
UPM’s Timber has negotiated a staffing reduction and will continue production curtailments.
Restructurings
AbitibiBowater will host a management conference call and webcast to discuss the emergence from its financial and operational restructuring.
Fraser Papers did not receive the sufficient support from creditors for its proposed restructuring plan.
Closures/Reductions
Prospects for the Australasian pulp and paper industry are somewhat positive.
Final Word
Environmental
Cariboo Pulp and Paper Company and BC Hydro have reached an agreement to upgrade its systems to create 160 gigawatt hours of steam-generated clean electricity.
Domtar will upgrade its biomass boiler and reduce steam demand for two paper machines.
Smurfit-Stone Container Corporation announced that its U.S. paper mills have been recommended for chain-of-custody certification to the Sustainable Forestry Initiative.
