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The PM40 closed Friday, 31 May 2024, at 5751.

Get the latest PM40 updates by listening to the weekly Nips show and the PM40 Daily Show on Pulp & Paper Radio International.

The PM40 closed 31 May 2024 up 19.9% from the 2 June 2023 level.

In this issue of Disconnected Comparisons, we evaluate Louisiana Pacific and Kimberly-Clark.

Reported insider trading since the last issue of PaperMoney.

I have been doing some research for a paper to be presented at a private client conference, so I will be a bit circumspect here, but the bottom line is this--pulp and paper companies will have no choice but to become larger. This is not driven by demand, but by necessary economies of scale.

ABB has won an order from Södra Cell to implement optimization control for the pulp and paper manufacturer's mill in Värö, Sweden.

Following approval by the relevant authorities, the acquisition of NAF AB business by international technology group Andritz has been completed. This acquisition further strengthens the Andritz product portfolio in the field of process control and automation systems for pulp and paper mills and other process plants.

Andritz has completed the conversion of a graphic paper machine at Heinzel Group's Steyrermühl mill in Austria.

Andritz has received an order from lndah Kiat Pulp & Paper TBK to supply a complete old corrugated containers (OCC) line including a reject treatment system to the mill in Karawang, Jawa Barat, Indonesia.

Valmet and Papierfabrik Palm GmbH & Co KG have signed a three-year Service Agreement and a one-year Performance Agreement to further improve the performance of Palm's production lines Aalen PM5 and Wörth PM6 in Germany.

Huhtamaki has received the prestigious Gold Medal from EcoVadis for the fourth consecutive year, placing the company in the top 5% of more than 130,000 rated companies worldwide.

Greif Named Among 100 Global Companies Recognized for Employee Sentiment and Satisfaction

Novolex employees thrive when developing innovative new products, identifying more sustainable solutions, and stretching the boundaries of packaging to meet unique customer needs.

Juan Carlos Bueno, President and CEO of Mercer, stated, "The 2023 Sustainability Report demonstrates our dedication to progressing sustainable forest management and bioproduct innovation. We are committed to creating long-term value for our stakeholders by balancing environmental stewardship with responsible business growth."

Metsä Group's tissue paper business including greaseproof paper business, has once again achieved the highest Platinum rating in the EcoVadis sustainability and social responsibility evaluation for 2024.

Mondi and machine producer Meurer have collaborated to create new packaging which holds and protects food and drink products during transportation.

PotlatchDeltic Corporation has released its 2023 Corporate Responsibility Report. The Report highlights PotlatchDeltic's 2023 corporate responsibility accomplishments, linking them with the United Nations Sustainable Development Goals.

Project collaboration with Sustainable Forestry Initiative recognized with the Environmental Initiative Award

The Stevie® Awards, renowned for celebrating excellence in business, attracted nominations from diverse industries worldwide. Nicky's recognition underscores its commitment to sustainability and innovation in paper packaging.

A new offer within Tetra Pak's broader sustainability portfolio, the 'Factory Sustainable Solutions' business offers Food and Beverage (F&B) producers a tailored blend of state-of-the-art technologies and leading plant integration capabilities.

West Fraser Timber Co. Ltd. has released its 2023 Sustainability Report. The report highlights the Company's sustainability performance across a variety of environmental, social, and governance goals.

Due to continuous cost increases, Felix Schoeller will raise its prices for release liners globally from June onwards.

During Södra's general meeting in Kalmar, a decision was made to distribute the profit distribution of SEK 1,474 million to the members. During the meeting, evaluation of the southern model, development of the business model and the risk that species protection could render the forest owner disenfranchised were highlighted.

Artigo, an international rubber flooring company, will produce their next-generation flooring collections from 2025 with UPM BioMotion™ Renewable Functional Fillers (RFF).

The company received the $12 million in exchange for job creation in late 2014. To receive the funds, the company was required to employ a minimum of 800 full-time employees for the duration of the 10-year contract.

Arauco Group has invested in the Internal Resin Injection System for their plant in Trupan, Chile. Sunds Fibertech will deliver a complete resin dosing and injection system, including automation and start-up. The start-up will be done in Q4, 2024.

Gov. Brian Kemp announced a company that makes baby diapers and other items will be investing $418 million to expand its footprint in Bibb County and create 600 new jobs.

Mondi is investing €200 million into a high-quality recycled containerboard machine with an annual capacity of around 420,000 tonnes at its Duino mill near Trieste, acquired in January 2023.

Irving Pulp & Paper, Limited has submitted a preliminary application to undertake a major upgrade to Saint John's westside pulp mill, representing a new long-term capital improvement plan and a potential $1.1-billion investment.

Progroup takes over site of Sappi Stockstadt GMBH in Germany. The current plan is for a state-of-the-art plant for sustainable production of containerboard to be operating by the end of the decade, creating roughly 200 jobs.

Brazilian pulpmaker Suzano confirmed it is interested in assets owned by International Paper, but said that it has not reached any final decision about a deal.

Brazilian pulp and paper company Suzano has been in talks with its advisers about sweetening its $15 billion acquisition offer for International Paper, people familiar with the matter said on Monday.

Suzano SA, the world's largest producer of pulp, is in talks with banks including Mizuho Financial Group, Nomura Holdings Inc. and Mitsubishi UFJ Financial Group on the financing of a potential bid for US packaging giant International Paper Co., according to people familiar with the matter.

Billerud's Board of Directors has decided to not proceed with plans to convert its Escanaba mill to cartonboard production. Instead, the company will target to shift its product mix gradually towards packaging materials in North America with a moderate investment level.

International Paper ("IP") announced that Jamie A. Beggs and Scott A. Tozier have been elected to IP's Board of Directors, effective May 21, 2024. The company also announced that Ilene S. Gordon has retired from the Board citing personal and health reasons, effective May 21, 2024.

Paper Excellence Canada announced that it has reached a settlement with the Province of Nova Scotia, Canada, that acknowledges plans to transform and reopen Northern Pulp Nova Scotia in Pictou will not proceed and provides for a review process agreed between the Northern Pulp group and the Province of Nova Scotia that is aimed to determine whether a new, modern mill in Nova Scotia is viable. The agreement also provides for the settlement of outstanding litigation and loans between the two parties and fully addresses the pensions of former mill employees.

After 14 years as president and chief executive officer (CEO) of Tolko, and over 40 years with the company founded by his grandfather Harold, Brad Thorlakson has transitioned to the role of executive chair of the board. Further to Brad's transition, Pino Pucci has assumed the role of president and CEO.

The plan is for DuPont to turn its electronics and water businesses into their own companies in a transaction that is tax-free to shareholders. The new companies are unnamed as of now.

Huhtamaki has decided to consolidate its three Flexible Packaging manufacturing sites in the United Arab Emirates, keeping one factory in Jebel Ali and expanding the one in Ras Al Khaimah. The transition will gradually take place during the second half of 2024.

UPM Communication Papers 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 located in Germany.

Tackling plastic

Sustainable packaging business exceeds Now & Next Sustainability target in partnership with customers

Irving Forest Product's Dixfield, Maine sawmill is enhancing its offerings by introducing baled wood shavings as part of their value-added products. This is the first and only Irving-owned sawmill to offer baled shavings.

The U.S. Environmental Protection Agency announced PotlatchDeltic Land & Lumber, LLC, of St. Maries, Idaho, will pay $225,000 for alleged violations of the Clean Water Act.

Sonae Arauco announces an investment in two new recycling centres in Portugal, totalling more than Euro 5 million. Strategically located in the Minho region and north of Lisbon, these two centres will complement the activity of the three already operating in the country.

On May 30, 2024, Twin Rivers Paper Company Inc. was fined $250,000 in New Brunswick Provincial Court after pleading guilty to one charge of contravening subsection 36(3) of the Fisheries Act by permitting the deposit of a deleterious substance, namely pulp and paper process water called groundwood white water, into the Madawaska River. The fine will be directed to the Government of Canada's Environmental Damages Fund.

All of the employees were able to escape unharmed. The fire is believed to be electrical in nature.

Graphic Packaging expects to close its Randleman operations around July 9, according to paperwork filed with the N.C. Department of Commerce.

UPM Raflatac and the Paper Workers' Union have reached an outcome in the collective labour agreement negotiations concerning UPM Raflatac's Tampere factory in Finland.

SCA has recruited Per Funkquist as new Vice President Sustainability. Per Funkquist, who holds a degree in forestry from SLU - the Swedish University of Agricultural Sciences, is joining from a role as Director of Communication and Sustainability Procurement & Wood Supply at another forest industry company.

SCA has recruited Per Funkquist as new Vice President Sustainability. Per Funkquist has extensive and solid experience in the forestry industry and will take up his new position on September 1, 2024.

The decision to delay the conversion follows a recent study, which indicated that the current availability of recycled containerboard in Europe is sufficient to meet market demands.

UPM Pulp, UPM Communication Papers and the Paper Workers' Union have successfully negotiated new collective labour agreements for UPM's Finnish pulp and printing paper mills. The new contracts, set for a two-year period, will take effect pending approval from the Paper Workers' Union's Board on 5 June 2024.