Stora Enso, one of the world's largest makers of paper products, is selling its North American paper manufacturing units for about $2.1 billion to an Ohio-based company, New Page, owned by the private equity firm Cerberus Capital.
The operations being sold include eight factories and will be combined with those of Cerberus-owned NewPage Holding, based in Dayton, Ohio, a North American coated paper producer employing more than 4,300 people.
The mills being sold were once part of Consolidated Papers, which was acquired by Stora Enso in a $4.8 billion deal in 2000.
Six of the mills are in Wisconsin, one is in Duluth, Minn., and the eighth is Port Hawkesbury, Nova Scotia, Canada.
Paper.com carries all the New Page paper products and many of the Stora Enso grades in stock and ready for immediate shipment.
Sunday, September 23, 2007
Tuesday, September 18, 2007
Price Increase Summary
Paper.com is beginning to hear from all our major paper mills regarding several price increases.
As the specifics of each mill are confirmed, we will update our data.
Price increase summary as follows
Text/Cover/Writing increase of 4-7%
Coated increase of 5-7%
Uncoated offset and Opaque increase of 3-5%
Carbonless increase of 5%
Envelopes increase of 9-11%
Most are effective late September or early October. Paper.com still is marketing most items at currrent prices, management
will hold these prices firm as long as possible.
As the specifics of each mill are confirmed, we will update our data.
Price increase summary as follows
Text/Cover/Writing increase of 4-7%
Coated increase of 5-7%
Uncoated offset and Opaque increase of 3-5%
Carbonless increase of 5%
Envelopes increase of 9-11%
Most are effective late September or early October. Paper.com still is marketing most items at currrent prices, management
will hold these prices firm as long as possible.
Wednesday, September 12, 2007
Ad Spending Declines 0.3% in First Half of 2007
Total U.S. advertising expenditures fell 0.3% to $72.5 billion in the first half of 2007, according to TNS Media Intelligence. It is the first time since 2001 that ad spending declined for two consecutive quarters. Nearly all media categories were weak, with the exception of Internet and magazines, which rose 17.7% and 4.6%, respectively. Newspapers were among the hardest hit, with the category falling 5.8%.
FOEX NBSK Pulp Index Climbs
FOEX, a provider of audited, trade-registered pulp and paper indexes, said the PIX northern bleached softwood kraft (NBSK) pulp index climbed $7.79/mton to $807.79 in the week ending Sept. 11. It was the first time in four weeks that the index saw movement. The price of lightweight coated (LWC) paper fell euro 0.19/mton to euro 670.73/mton and coated woodfree fell euro 4.85/mton to euro 704.98/mton.
Monthly U.S. Printing Shipments Increased in July
U.S. printing shipments increased $138 million in July compared to the same month last year, the WhatTheyThink Economics and Research Center reported. According to the latest report, the average monthly increase in printing shipments has been $196 million since last August. Adjusted for inflation, however, shipments in July of this year were actually down by –0.6% from last year. Year-to-date shipments are down –0.9% on an adjusted basis.
EKSuccess grows through recent acquisition
GTCR Golder Rauner, LLC, one of the nation’s leading private equity firms, announced today that EK Success, a leading provider of scrapbooking and paper-based crafts products, has acquired Wilton Industries, Inc. and Dimensions Holdings, LLC. EK Success is a creative consumer products company with a major market position in the scrapbooking segment of the $30 billion U.S. craft industry. EK Success was acquired by GTCR in February 2006. The combined companies will be named Wilton Products, Inc. and be headquartered in Woodridge, Illinois.
EK Success is a creative consumer products company with the leading market position in the fast- growing $3.0 billion scrapbooking segment of the U.S. craft industry. EK Success designs and markets some of the craft industry’s most respected brands of stickers, multi-dimensional embellishments, punches and writing utensils for use in scrapbooking and related paper crafts, such as card making and invitation creation. These include ZIG® Memory System®, Sticko®, Paper Shapers®, Jolee’s Boutique®, HERMA® and Cutter Bee®.
Paper.com markets all of the EKSuccess products and is one of the largest online marketers of scrapbook and craft papers.
EK Success is a creative consumer products company with the leading market position in the fast- growing $3.0 billion scrapbooking segment of the U.S. craft industry. EK Success designs and markets some of the craft industry’s most respected brands of stickers, multi-dimensional embellishments, punches and writing utensils for use in scrapbooking and related paper crafts, such as card making and invitation creation. These include ZIG® Memory System®, Sticko®, Paper Shapers®, Jolee’s Boutique®, HERMA® and Cutter Bee®.
Paper.com markets all of the EKSuccess products and is one of the largest online marketers of scrapbook and craft papers.
Monday, September 10, 2007
New Announced Mill in Vietnam in trouble
After several years of construction, the Thanh Hoa Pulp and Paper mill in Vietnam is suddenly short of funds to complete the project.
The mill was originally anticipated to go on stream in 2005; the mill was expected to produce 50,000 tons of pulp and 60,000 tons of paper per year, with products to include cartons, duplex paper and packaging paper. At the end of the second stage, total production capacity would increase to an estimated 150,000 tons of pulp and 150,000 tons of paper per year.
The mill was originally anticipated to go on stream in 2005; the mill was expected to produce 50,000 tons of pulp and 60,000 tons of paper per year, with products to include cartons, duplex paper and packaging paper. At the end of the second stage, total production capacity would increase to an estimated 150,000 tons of pulp and 150,000 tons of paper per year.
Boise Cascade Paper Mills may be Sold
Boise Cascade in considering selling its paper, packaging and newsprint divisions for $1.63billion to Aldabra 2 Acquisition. Aldabra was formed by Nathan Leight and Jason Weiss of Terrapin Partners. They agreed to pay $1.34billion cash and the balance in shares. The company would be run by Alexander Toeldte – Boise’s current Executive Vice President.
In 2004, Madison Dearborn acquired Boise and split the corporation into manufacturing and retail (OfficeMax). Madison Dearborn has no immediate plans of spinning off the retain division nor the wood and building product divisions.
In 2004, Madison Dearborn acquired Boise and split the corporation into manufacturing and retail (OfficeMax). Madison Dearborn has no immediate plans of spinning off the retain division nor the wood and building product divisions.
Friday, September 07, 2007
MARKET PULP Update
The strength in market pulp prices shows no signs of abating. The prices of most hardwood grades rose $20-25/ton in August, and there is yet another $20/mton price hike initiative on NBSK for September. Production curtailments caused by the woodland workers strike in BC is helping to keep the market tight. Despite the high prices, the strong Canadian Dollar and high wood chip costs are keeping margins barely positive at a number of mills.
NEWSPRINT Market Update
Despite the announcement of a $25/mton price hike initiative for September, newsprint prices have remained under pressure. Prices slipped $10/ton in August. The combination of low prices, a strong Canadian Dollar and surging chip costs in British Columbia suggest a near-term bottom may be close. Howe Sound Pulp & Paper and Catalyst have recently announced capacity
withdrawals. In other signs of financial pressure, Kruger recently announced the idling of an SC machine in Quebec
withdrawals. In other signs of financial pressure, Kruger recently announced the idling of an SC machine in Quebec
UNCOATED FREE SHEET UPDATE
It might be another cut-size (business papers) price increase in the works. Producers are attempting to raise offset rolls prices by $60/ton and offset folio sheets prices $30/ton. While demand has been sluggish, supply reductions are
keeping the market in reasonable balance. Domtar recently announced the indefinite shut of a 285,000 tpy Paper Machine at Dryden, ON. With pulp prices still rising and the market in a seasonal strong period, we wouldn't be surprised by another cut-size attempt.
keeping the market in reasonable balance. Domtar recently announced the indefinite shut of a 285,000 tpy Paper Machine at Dryden, ON. With pulp prices still rising and the market in a seasonal strong period, we wouldn't be surprised by another cut-size attempt.
Canada Paper Producers feel increased currency pinch
The currency increase versus USDollar is tightening around Canada's forest sector. This week, White Birch Paper, Catalyst Paper
announced more staff cuts, and both Domtar & Kruger announced more machine shuts.
announced more staff cuts, and both Domtar & Kruger announced more machine shuts.
Coated Grades See Price Increase
Verso Paper announced price. Verso Paper (previously owed by International Paper) is increasing the price of all coated mechanical products by $3.25/cwt ($65.00/ ton).
This increase applies to all coated mechanical (groundwood) grades including, but not
limited to, the following brands:
Liberty - All grades, basis weights and finishes
Liberty G - All grades, basis weights and finishes
Advocate Offset - All grades, basis weights and finishes
Advocate Roto - All grades, basis weights and finishes
This increase is in addition to the previously announced increase that took
effect for shipments as of July 1, 2007.
Stora Enso also announce price increase for their coated grades appling to:
NovaPress ,PolarisPress ,SolarisPress, StellaPress, TerraPress, CapriPress , ConsoPress, MagniPress , SuperiorPress, PubliPress, and ExoPress
The 7% increase applies to all gloss finish products.
This increase applies to all coated mechanical (groundwood) grades including, but not
limited to, the following brands:
Liberty - All grades, basis weights and finishes
Liberty G - All grades, basis weights and finishes
Advocate Offset - All grades, basis weights and finishes
Advocate Roto - All grades, basis weights and finishes
This increase is in addition to the previously announced increase that took
effect for shipments as of July 1, 2007.
Stora Enso also announce price increase for their coated grades appling to:
NovaPress ,PolarisPress ,SolarisPress, StellaPress, TerraPress, CapriPress , ConsoPress, MagniPress , SuperiorPress, PubliPress, and ExoPress
The 7% increase applies to all gloss finish products.
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