Paper Producers Consolidate

Mohawk / International Paper
Mohawk Paper Mill announced it will purchase the Fine Papers Unit from International Paper. The Fine Papers’ Business includes the writing, text and covers paper and artist products segments. Sites include the Hamilton, Ohio paper mill, the Saybrook, Ohio converting facility, and the Westfield, Mass mill as well as Artist Products converting operation. The brands include Strathmore®, Brite Hue®, Via®, and Beckett® brands.

The Fine Papers business produces approximately 65,000 tons per year. This will effectively double Mohawk’s capacity.

SPIN-OFF GOES PUBLIC
Neenah Paper Inc., manufacturer of CLASSIC and ENVIRONMENT papers, recently completed a tax-free spin-off from Kimberly-Clark and began trading on a stand-alone basis on December 1, 2004.

The new public company includes Neenah Paper, a premium Writing, Text and Cover business; Technical Paper, a producer of durable, saturated and coated base papers and a Canadian pulp business.

SPECIALTY COATEDS ARE ACQUIRED
CTI Paper USA proudly announced the acquisition of the Currency and Jazz grade lines and trademarks from Appleton, which will take place on January 1, 2005.

Currency and Jazz are strong, well-established coated colored Text and Cover brand names, popular in the graphics markets for decades. "We will improve the brands through aesthetic redesign in the coming months, ensuring Currency and Jazz grow their strong position in the
specialty coated papers category," said Brian J. Cowie, C.E.O. of CTI.

Fraser Papers to Sell Park Falls Mill to SMART Papers
Fraser Papers Inc. announced it has signed an asset purchase agreement with SMART Papers LLC to acquire pulp and papermaking operations in Park Falls, Wisconsin. The purchase agreement includes a 470,000 square foot converting, distribution and customer service facility in West Chicago, Ill. Fraser papers will receive a passive minority interest in the parent of SMART Papers as part of the transaction, which is subject to customary closing conditions. The deal is expected to close in approximately 60 days.

MeadWestvaco Sells Paper Unit
Paper and packaging maker MeadWestvaco Corp. has agreed to sell its paper business and associated assets for $2.3 billion to reduce its debt and focus on growing in global packaging markets, the company said on Tuesday.

It said the deal to sell its paper unit to a new company controlled by Cerberus Capital Management LP,

Domtar Reduces a Canadian Asset
Domtar announced it will curtail a specialty paper machine in its Cornwall, ON facility. The company recited the weak Canadian dollar as the reason for the shut down. The machine will cease production in March.