Capital Projects
Departments
By:
James R. Thompson, Executive Editor
Welcome to our new look.
The PM40 closed 25 June 2010 at 1583.47, down 4.0% from the 18 June 2010 close.
The PM40 closed 25 June 2010 up 75.0% compared to the 26 June 2009 level.
In this issue of Disconnected Comparisons, we evaluate Rock-Tenn Company and USG Corporation.
Reported insider trading reflects sales of 244,903 shares at an average price of USD 18.14 per share and purchases of 56,950 shares at an average price of USD 9.95 per share.
Supplier News
Andritz Pulp & Paper has received an order from Kolicevo Karton, Slovenia, to rebuild the wet section (wire and press section) of board machine KM 2.
Andritz Pulp & Paper has received an order to rebuild the drying section of PM 2 at Smurfit Kappa’s Hoya mill in Germany, and to supply a compact film press to the mill.
Metso will supply two complete tissue production lines to Shanghai Orient Champion Paper Co., Ltd., Shanghai, China.
Market News of Note
Fitch Ratings has taken the following rating actions for the ratings of Masisa S.A.
Metso gained the title to all the shares in Tamfelt on 04 May 2010.
Orient Paper, Inc.,a leading manufacturer and distributor of diversified paper products in Hebei, China, today announced its response to allegations made via a report issued by Muddy Waters, LLC.
Sino-Forest Corporation has entered into a share subscription agreement with Omnicorp Limited, a Hong Kong-listed company.
Tembec announces EBITDA expectations and will have discussions with certain investors.
World Color Press Inc. announced today the share exchange ratio and cash consideration amount payable by Quad/Graphics, Inc.
NOREXECO
Canfor Pulp Income Fund announced today that it has declared a cash distribution of CAD 0.20 per Fund unit for the month of June.
Clearwater Paper Corporation (NYSE: CLW) today announced that it will host its second quarter 2010 financial results conference call on 29 July 2010, at 8 a.m. Pacific Time (11 a.m. Eastern Time).
The board of directors of Deltic Timber Corporation (NYSE-DEL) announced today a quarterly dividend.
Glatfelter (NYSE: GLT) declared a USD 0.09 per share cash dividend on its outstanding common stock.
Graphic Packaging Holding Company will release results for the second quarter 2010 on 05 August 2010
International Paper will release second quarter 2010 earnings on 28 July 2010.
MeadWestvaco Corporation’s (NYSE: MWV) to release second quarter results and hold conference call 28 July 2010.
Plum Creek Timber Company, Inc. will release its second quarter 2010 earnings on 26 July 2010, following the stock market close.
Potlatch announces second quarter 2010 results webcast and conference call.
Sonoco (NYSE: SON), one of the largest diversified global packaging companies, will host its regular quarterly investor conference call on 22 July 2010.
Temple-Inland Inc. will release its results for second quarter 2010 on 27 July 2010.
West Fraser Timber Co. Ltd. will hold a conference call to discuss second quarter
financials for 2010.
Weyerhaeuser Company (NYSE: WY) will release second quarter 2010 results on 30 July 2010, before the market opens.
Corporate Finance
AbitibiBowater Inc. has obtained approval of a backstop commitment agreement by the U.S. Bankruptcy Court in connection with the company's creditor protection proceedings and exit financing efforts.
Clearwater Paper Corporation announced the expiration of certain trading restrictions on its 10 5/8% senior notes due 2016, issued on 11 June 2009.
R.R. Donnelley & Son Company today announced that it has priced an offering of USD 400 million aggregate principal amount of 7.625% notes due 15 June 2020.
Weyerhaeuser Company announced today the results of its previously announced cash tender offer.
Joint Venture
Greif, Inc., through a subsidiary, has agreed to form a flexible products joint venture with National Scientific Company Limited (NSC).
Legal
Fraser Papers Inc.announced today that it will seek court approval of the transaction to sell its paper mill in Gorham, New Hampshire, USA.
AbitibiBowater Inc. today announced that, in connection with its creditor protection proceedings and exit financing efforts, the company has obtained approval of a backstop commitment agreement by the U.S. Bankruptcy Court for the District of Delaware.
Major Expenditures
Verso Paper Corp. (NYSE: VRS) announced today the launch of a USD 43 million renewable energy project that will position its mill in Quinnesec, Michigan, to meet more than 95% of its energy needs using renewable biomass sources.
Voith Paper will start manufacturing cotton rolls used in graphic paper production at UPM's Jokilaakso mills in Jämsä, Finland.
Mergers & Acquisitions
Amcor has reached an agreement to purchase the assets of Ball Plastics Packaging Americas from Ball Corporation.
Bemis Company, Inc., a supplier of flexible packaging materials, has signed a definitive agreement to sell the company’s Menasha, Wisconsin, and Catoosa (Tulsa), Oklahoma, facilities to Exopack Holding Corp.
China Forestry Inc., a timber investment group in the People's Republic of China, has acquired all the equity interest of Hanzhong Hengtai Bio-Tech Limited.
EACOM has acquired Domtar's Forest Products Business, including seven sawmills and an equity interest in an eighth sawmill, all located in eastern Canada.
International Paper has completed the purchase of SCA Packaging Asia for approximately USD 200 million, subject to post-closing adjustments.
Mondi Akrosil LLC has entered into an Asset Agreement with Nitto Americas regarding their recently discontinued facility (to be named Mondi Kenosha) in Pleasant Prairie, Wisconsin.
OpenGate Capital, a global private equity firm, has closed its acquisition of the Kotka Mills division of Stora Enso.
Quad/Graphics, Inc. and World Color Press Inc.today announced that Quad/Graphics has been cleared to apply to list its class A common stock on the New York Stock Exchange.
Sonoco has completed the acquisition of Associated Packaging Technologies, Inc., North America's largest manufacturer and supplier of crystallized polyethylene terepthalate (CPET) containers to the frozen food industry.
Major Announcements
Buckeye Technologies Inc.'s Foley plant in Perry, Florida, has returned to full operation after brief power outage.
Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company, today announced that it plans to close its plant in Golden, Colorado.
Holmen Paper has begun negotiations on reducing the workforce at the paper mill in Hallstavik.
Stora Enso will start co-determination negotiations concerning possible
temporary lay-offs at its Finnish sawmills in Kitee, Uimaharju,
Varkaus, and Honkalahti.
Rationalizations
Xerium Technologies, Inc.,a leading global manufacturer of clothing and roll covers used primarily in the paper production process, will implement a reorganization and consolidation that will result in the closing of its Stowe Woodward facility in North Bay, Ontario, Canada.
Restructurings
Smurfit-Stone Container Corporation today announced that Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Delaware, entered an order confirming its joint plan of reorganization.
Closures/Reductions
A study released today strengthens AF&PA and United Steelworkers union claims that China is providing illegal subsidies to its paper producers, which is adversely affecting the U.S. paper industry.
Final Word
We are at one of those dramatic seasonal changes in both hemispheres of the world right now.
