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The PM40 closed Friday, 1 November 2024, at 5830.

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 1 November 2024 up 17.5% from the 3 November 2023 level.

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

Reported insider trading since the last issue of PaperMoney.

The marketing, sales and purchasing game has more dance steps than the latest Argentine Tango. It is this way because there are humans involved and they all come from different backgrounds. For clarification, here I am talking about the purchasing initiated by major pulp and paper companies, not the selling of their products.

Tissue producer Fine Hygienic Holding worked with partners including ABB to optimize its delivery for higher productivity, and the collaboration allowed the company to achieve a Guinness World Record for the highest production rate in 24-hour period. Al Nakheel Paper Mill in Abu Dhabi can now turn out 2,222 meters of top-grade tissue paper per minute.

ANDRITZ has successfully started up two recycled fiber lines at Lipy Paper Mills Ltd. in Kanchpur, Bangladesh.

Kadant Johnson LLC, a subsidiary of Kadant Inc. (NYSE: KAI), will supply the steam and condensate system, and dryer hardware as a part of a greenfield coated recycled board (CRB) pulp and paper mill in the Southern United States.

Segezha Group has launched an extensive reverse engineering program to maintain and upgrade its industrial equipment at Segezha Pulp and Paper Mill, the company announced in its Telegram channel.

Solenis, a leading global producer of specialty chemicals, will implement price increases of typically 4% to 10% across all product lines in EMEA, beginning November 1, or as contracts allow.

As earlier announced, the value of the order for Valmet is over EUR 1 billion.

"The service market has developed somewhat slower in EMEA, China and Asia-Pacific than Valmet previously expected. In addition, market activity in process technologies for board and paper has been slower than previously expected and some customers have postponed their final investment decisions," the company writes in its press release.

The new equipment is estimated to be taken into operation in autumn 2025.

Additionally, the Board and Paper Mills business unit will implement temporary layoffs lasting up to 90 days during the first half of 2025.

The first Andritz tissue machine supplied to Xuan Mai has been in operation since 2020.

Ahlstrom, a global leader in fiber-based specialty materials, is proud to announce the launch of Lipid Saver™, a new solution designed for collecting, transporting, and storing fatty acids from whole blood samples.

Greif, a global leader in industrial packaging, has announced the launch of EnviroRAP™, an innovative 100 percent recycled paperboard designed for the food industry. EnviroRAP offers exceptional resistance to oil and grease, making it suitable for packaging both aqueous and fatty foods. Its water-based, recyclable, and repulpable coating ensures it can be easily recycled, further reducing its environmental impact and supporting sustainability efforts.

Mondi, a global leader in sustainable packaging and paper, has launched an alternative to paper bags with a free film barrier layer used in the construction industry.

Partnership aims to attract and cultivate the next generation of diverse tradespeople in forestry and manufacturing.

SmartPour containers eliminate the need for a plastic bag insert, preventing messy, bag-in-box spillage, while the resealable closure and barrier technology keeps contents fresh.

Sappi Europe has achieved GMP+ Feed Safety Assurance (FSA) 2020 certification for its Lignin manufacturing site in Germany where Pelletin and NuryGuard are produced.

Pioneering Better Planet Packaging tub for Quality Street to make its debut in Tesco this week.

UPM Biomedicals, the forerunner in producing high quality nanofibrillar cellulose for medical and life science applications, announces the launch of FibGel™--a natural injectable hydrogel for permanent implantable medical devices.

UPM Raflatac, a global supplier of sustainable labeling solutions, is expanding its direct thermal (DT) linerless label offering with the launch of its new OptiCut™ WashOff solution.

Canfor Corporation recorded an operating loss of $560 million in the third quarter of 2024, reflecting intensified challenges across its lumber and pulp segments.

Essity disputes the demand.

The decline was driven by a $109 million impact from the divestiture of the Augusta, Georgia, bleached paperboard manufacturing facility and reduced open market sales participation, and a $35 million net decline in sales from packaging operations, where price declines were partially offset by volume growth.

Huhtamäki, a global producer of food and beverage packaging, reported net sales in line with expectations in the third quarter. Operating profit was worse than expected.

"As we look forward to the combination with DS Smith, we expect the transaction will close early in the Q1 2025."

Kimberly-Clark cut its annual organic net sales forecast after missing Wall Street estimates for third-quarter sales, as consumers swap its pricier personal care goods for cheaper alternatives.

The benefits for Metsä Group's contract customers will get even better when Metsä Group reforms its price guarantee method for wood trade, making it more transparent.

The company attributed the decline primarily to "more planned maintenance shuts" and a forestry fair value loss. This was in addition to softer seasonal demand and higher input costs, it said.

Third quarter net sales were $2.2 billion in 2024, up from $1.9 billion in 2023.

PotlatchDeltic Corporation reported net income of $3.3 million, or $0.04 per diluted share, on revenues of $255.1 million for the quarter ended September 30, 2024.

In the third quarter of 2024, net sales for the Södra Group amounted to SEK 6,944 million (6,545), up 6 percent compared with the year-earlier period. Operating profit totalled SEK 937 million (410), representing an operating margin of 13 percent (6). Return on capital employed was 10 percent (12) and the equity ratio was 61 percent.

Södra is taking action to strengthen conditions for family forestry and to develop its member offer. On 21 October, prices were raised for saw logs and small-diameter sawable ranges, and a new tool is being introduced to increase security for forest owners. Södra is also taking further steps to improve transparency in the wood market.

The company's bottom line totaled $51 million, or $0.51 per share. This compares with $131 million, or $1.32 per share, in last year's third quarter.

The strong third quarter results were mainly driven by increased sales volume and higher average selling prices of exported products, with a favorable contribution from exchange rates.

U.S. containerboard production in Q3 2024 increased 3% compared to Q3 2023. It was up 6% when compared to the same nine months of 2023, according to the American Forest & Paper Association (AF&PA).

UFP Industries, Inc. (UFPI) announced Q3 2024 results including net sales of $1.65 billion, net earnings attributable to controlling interest of $100 million, and earnings per diluted share of $1.64.

UPM-Kymmene Corporation posted a 32% increase in comparable EBIT for Q3 2024, reaching Euro 291 million, despite a 2% drop in sales to Euro 2,521 million from Euro 2,584 million in the same quarter last year.

West Fraser Timber Co. Ltd. announced third-quarter results for 2024, reporting a loss of $83 million compared to a $105 million profit in the second quarter. The company's sales fell to $1.437 billion, marking a 16% decline from the prior quarter's $1.705 billion. Adjusted EBITDA stood at $62 million, down from $272 million in the second quarter​​.

Weyerhaeuser Company reported Q3 net earnings of $28 million, or 4 cents per diluted share, on net sales of $1.7 billion. This compares with net earnings of $239 million, or 33 cents per diluted share, on net sales of $2.0 billion for the same period last year and net earnings of $173 million for Q2 2024.

UPM Specialty Papers and Eastman have co-created a novel biopolymer coated paper packaging solution, designed for food applications requiring grease and oxygen barriers.

UPM Specialty Papers and Michelman have co-created three cutting edge solutions that are designed to allow brand owners to replace multi-material, non-recyclable packaging with paper-based alternatives that meet their requirements for food contact and recyclability.

UPM Biochemicals, Selenis and Bormioli Pharma have partnered to produce the world's first pharmaceutical bottles made from partially wood-based PET.

Metsä Group marked the inauguration of the bioproduct mill in Kemi on Wednesday, 23 October 2024. The mill was inaugurated by President of Finland Alexander Stubb, chair of Metsäliitto Cooperative's Board of Directors Jussi Linnaranta, and President and CEO of Metsä Group Ilkka Hämälä.

Huhtamaki is pleased to announce the commencement of smooth molded fiber (SMF) production at Huhtamaki's existing molded fiber facility in Lurgan, Northern Ireland. This expansion marks an important step in Huhtamaki's ongoing commitment to meeting the growing demand for sustainable packaging solutions.

KP Tissue Inc. and Kruger Products Inc., Canada's leading tissue products manufacturer, are pleased to announce the completion of the construction of a new plant on a site adjacent to the existing Sherbrooke TAD facility and the successful start-up of their new double-width light dry crepe (LDC) tissue machine with a capacity of 60,000 metric tons.

The project would create over 400 new jobs and increase the UK's self-sufficiency in this market by 30 percent.

This 30,000-square-foot facility extends service to Eastern Canadian customers and complements an existing network of three factories and two other terminals that collectively service North America-based customers.

Completion of the Sale Accelerates Transformation into a Premier Independent Supplier of Paperboard to North American Converters and Significantly Reduces the Company's Net Debt.

Interfor Corp. is selling its three manufacturing facilities in Quebec and closing its corporate office in Montreal as the lumber producer plans to leave the province and focus on other parts of the company.

Quad/Graphics, Inc., a global marketing experience (MX) company, announced that it has entered into a definitive agreement to sell the majority of its European operations for €41 million (approximately $45 million) to Germany-based entrepreneurial private capital investment manager Capmont GmbH.

Stora Enso secures wood supply for its Oulu packaging board site by acquiring Finnish sawmill company Junnikkala Oy. The acquisition, valued up to Euro 137 million, aims to ensure cost-efficient wood sourcing and bolster Stora Enso's wood products segment. Closing conditions include regulatory approvals, with completion expected by mid-2025.

Stora Enso is of the view that the value in own use of the assets exceeds the achievable transaction value, and has therefore chosen to retain these operations within the Group.

John Baird, Chairman of Canfor Pulp Products Inc. Board of Directors announced that Stephen Mackie has been appointed President and Chief Executive Officer of Canfor Pulp effective November 1, 2024.

In total, 526 hourly employees and 148 salaried employees will be impacted.

International Paper confirmed Wednesday the company will cut about 650 total positions, including around 400 in Memphis. The company said it will provide severance packages, outplacement assistance and mental health resources to all affected employees.

Following the fire at Mondi's Stambolijski mill (Bulgaria) on Tuesday 24 September 2024, the Group has announced that it will permanently close the mill.

Paper Excellence Group announced the operational integration of the recently acquired Domtar Corporation (and other legal entities) and Resolute Forest Products with the legacy Paper Excellence business, forming a leading, unified forest products company in North America. This integration represents a strategic alignment of the companies' strengths, resources and expertise, creating a stronger organization poised for future growth and innovation, while maintaining the highest levels of environmental stewardship. Together, the companies will now be doing business as Domtar.

Stora Enso confirmed that it postponed its weekly supplier payments for a one-week period in both June and September 2024.

The company's announcement on Iowa's Worker Adjustment and Retraining Notification, or WARN, website states the Waukee facility will shut down Jan. 10, idling 88 workers.

UPM, Selenis and Bormioli Pharma introduce the world's first pharmaceutical bottle partially made with wood-based plastics

In addition to having its safest year ever, more than 94% of Amcor's flexible packaging portfolio by area had a recycle-ready solution available, and 95% of rigid packaging by weight was recyclable in practice and at scale.

Aligned with the company's strategic sustainability framework, Everyday Responsibility, the report details sustainability work and initiatives spanning three distinct yet equally important pillars: Resource Stewardship, Trusted Products, and Thriving People and Communities..

Rayonier Advanced Materials Inc. announced the publication of its 2023 Sustainability Report, which outlines the Company's progress in driving innovation, environmental stewardship, corporate social responsibility, and governance efforts. The report highlights RYAM's continued commitment to sustainable growth, as well as its dedication to operational excellence and community engagement.

Cascades Inc. announces organizational changes designed to support the Company's strategic growth by strengthening alignment, increasing agility, improving execution and accelerating decision making within the organization. These changes will take effect on November 11.

​Marco Hilty, President, Flexible Packaging, and member of the Huhtamaki Global Executive Team, has decided to leave Huhtamaki for personal reasons. Marco's last day with Huhtamaki will be January 31, 2025. The process to appoint Marco's successor has been initiated.

International Paper will shut down its container facility in Statesville, resulting in the loss of 74 jobs, according to a filing with the N.C. Department of Commerce.

International Paper Co. plans to close its Cleveland, Tennessee, production plant after 61 years and cut 115 jobs, according to a filing with the state.

International Paper says it plans to close its facility in Kansas City, Missouri, but did not say how many employees would be impacted.

​Metsä Board Corporation has initiated change negotiations regarding potential temporary layoffs at its paperboard and BCTMP mills in Finland. These talks will impact approximately 1,100 employees across seven mills: Joutseno, Kaskinen, Kemi, Kyro, Tampere, Simpele, and Äänekoski.

Mika Kekki has been appointed Executive Vice President of UPM Specialty Papers as of 1 January 2025. He will continue to be a member of UPM's Group Executive Team and report to UPM's CEO Massimo Reynaudo.

Rayonier Advanced Materials Inc., a leader in High Purity Cellulose, today announced that its Jesup, Georgia facility has fully resumed operations ahead of schedule, following an isolated fire on October 11. All production lines have returned to producing on-grade material at full capacity.

According to state filings, the employees were notified on Oct. 10 of the closure and were informed layoffs will take place on Nov. 18.

​Suzano S.A. has announced the resignation of its Executive Vice President of Finance and Investor Relations, Marcelo Feriozzi Bacci, effective November 30, 2024.