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How a Maine paper mill learned to love not making paper

How a Maine paper mill learned to love not making paper | Timberland Investment | Scoop.it

Sappi Paper’s mill in Westbrook has remained standing in the 21st century by learning to let go. The mill staked its future on paper with the key of not sticking to things, allowing paper-backed patterns to be pressed into synthetic materials, laminate flooring, leather and other products.

 

The mill has shed thousands of jobs since hitting peak employment levels in the 1950s but carved a path to profitability through a spate of tough times and recent closures in the industry.
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During the early 2000s, the Westbrook mill completed a long shift away from publishing markets, converting lower efficiency, turn-of-the-century paper machines to what’s called release paper, research that began when the mill was still in the hands of S.D. Warren Co. That paper, coated with various textures, can be used to create a range of products, including patterned car interiors, flooring, shoes and soccer balls.
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Mike Standel, the mill’s managing director, said the company’s market research focuses now on forecasting quickly changing fashion trends. Those quick changes, he said, give it an advantage in competing with other methods for pressing textures into a material, such as using stainless steel belts or plates. “It’s always important to be first, and we can provide something unique that can let our customers have exclusivity or be first to market,” Standel said.

 

The Westbrook mill produces about 40 percent of the global market for release paper, according to Standel, who said Europe and China are key markets in the business for which about 92 percent of its product is exported.

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Nippon Paper Eyes 'Roasted' Wood Pellets as Earnings Source

Nippon Paper Eyes 'Roasted' Wood Pellets as Earnings Source | Timberland Investment | Scoop.it
Nippon Paper Industries will begin tests next spring on a process it plans to use to mass-produce efficient-burning wood pellets as a biomass fuel for electricity generation starting in fiscal 2018.
     The so-called torrefied wood gets its name from torrefaction, a process similar to coffee roasting. Wood is heated at relatively low temperatures for less than an hour to yield a substance that burns with double the heat volume of wood chips, effectively doubling the power generation efficiency.
     Despite global research on torrefied wood as a biomass fuel, few companies have taken the next step to develop a means of mass production. Nippon Paper intends to leverage its papermaking experience to quickly establish this as a source of earnings for its energy business.
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Verso Paper aims to reorganize ‘in a short time frame’ after bankruptcy filing

Verso Paper aims to reorganize ‘in a short time frame’ after bankruptcy filing | Timberland Investment | Scoop.it

Once the primary supplier of glossy paper to the likes of Time magazine, Verso Paper Corp. filed for bankruptcy reorganization Tuesday, seeking protection from creditors for a business that has been clobbered by market shifts and changing consumer habits.
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In a written statement, Verso said the filing is intended to allow it to restructure its debt, and the bankruptcy will “have virtually no impact on the day-to-day operations of the company.” President and CEO David J. Paterson said the decision was difficult but made easier by strong support from creditors.
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Like many paper companies, Verso Paper faces formidable challenges, both within its own corporate structure and the global industry as a whole. To stem the loss of revenue, it sold off its unprofitable Bucksport mill in 2014, eliminating 500 jobs. The move was part of a complicated $1.4 billion deal that involved the acquisition and then sale of the former NewPage mill in Rumford in January of last year. That mill is now owned by Canada-based Catalyst Paper.
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Verso seeks creditor approval for a bankruptcy plan that would provide its creditors with equity shares in lieu of repaying the company’s debt, according to a release from the company. Verso is an affiliate of Apollo Global Management, a private equity firm based in New York City that purchased the papermaker from Memphis-based International Paper in 2006 for $1.4 billion.


Maine pulp and paper industry analyst Lloyd Irland said it’s unlikely that the creditors would be interested in being repaid with shares of Verso, a “penny stock” that no longer is traded on a major exchange.
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Verso’s woes are reflected in other paper industry transitions. Unable to recover from a devastating boiler explosion in November 2013, the bankrupt Lincoln Paper and Tissue mill was purchased after a November 2015 auction. Wisconsin-based Expera Specialty Solutions intends to shutter its Old Town facility, once a major producer of pulp for mills across the country. Demolition of the Bucksport mill for scrap started in December.


The industry, which employed 18,000 in Maine at its peak in the 1960s, now employs just over 6,000.

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Old Town pulp mill to close

Old Town pulp mill to close | Timberland Investment | Scoop.it
A Wisconsin-based company announced Tuesday that it will close the local pulp mill it purchased in 2014 by the end of the year, continuing the downward spiral of Maine’s paper industry.

Officials with Expera Specialty Solutions blamed the closure on the declining value of the Canadian dollar, excess pulp supply in the marketplace and relatively expensive wood costs in Maine, according to an email from Expera spokeswoman Addie Teeters.

The closure affects 195 workers at the Expera Old Town LLC facility, which has provided pulp for the parent company’s four mills in Wisconsin. Expera hopes to sell the local mill, according to Teeters.

Expera Specialty Solutions of Kaukauna, Wisconsin, acquired the assets of the former Old Town Fuel and Fiber pulp mill for $10.5 million on Dec. 5, 2014, during bankruptcy proceedings in U.S. District Court in Bangor.

“Expera successfully restarted the mill,” Russ Wanke, Expera Specialty Solutions president and CEO, said in a news release. “However, since the restart, the decline of the Canadian dollar exchange rate combined with a significant increase of new pulp capacity has led to a material drop in market pulp prices.

“In addition, wood costs have not moderated in Maine commensurate with demand decline,” he added. “The combination of these forces does not allow sustainable operations even with a dedicated and talented team of employees.”

Expera’s announcement came less than a day after Lincoln Paper and Tissue LLC announced it had filed for bankruptcy and would be sold at auction, affecting 179 workers. Verso paper announced last month it plans to lay off 300 employees at its Jay paper mill by the end of the year or early in 2016. Less than a year ago, Verso paper closed and sold its Bucksport mill, putting 570 employees out of work.
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Most US coated paper capacity now in foreign hands

Most US coated paper capacity now in foreign hands | Timberland Investment | Scoop.it

Two major events have shaken the US coated paper industry this week, leaving most of the country's ability to make coated paper in foreign companies.


The events that occurred almost simultaneously yesterday are:
1) NewPage, the largest North American maker of coated paper, divested its Biron, Wisconsin and Rumford, Maine mills to Catalyst Paper, which means that almost 12% of the nation's coated-paper capacity into Canadian hands.


2) The purchase of NewPage by Verso, the continent's #2 maker of coated paper, was completed a year and a day after it was first proposed. The U.S Justice Department, required the sale of the two NewPage mills for the takeover to be approved,  fearing a combined Verso-NewPage would have too large a market share.


According to Dead Tree Edition, four U.S.-owned companies -- NewPage, Verso, Appleton, and FutureMark -- represented 65% of the country's coated capacity last summer. The rest was owned by companies based in South Africa (SAPPI), Canada (Resolute and West Linn), Finland (UPM), and New Zealand (Evergreen). Since then, FutureMark went out of business, Verso closed its Bucksport, Maine mill, and NewPage sold the two mills to Catalyst.

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Buyers for paper mills don’t grow on trees

Buyers for paper mills don’t grow on trees | Timberland Investment | Scoop.it

It’s a drill Rosaire Pelletier has been through many times.


A Maine paper mill closes, and Pelletier, the governor’s senior adviser for forest products, is handed the task of trying to find a buyer. The state gets involved because, more often than not, tax breaks and other aid are needed to make a deal come together.


“It’s not an easy job,” concedes Pelletier, a 40-year veteran of the paper industry who uses an impressive list of contacts to market Maine’s shuttered mills. But declining demand for the type of paper Maine specializes in, coupled with increasing competition, does not create an ideal seller’s market, especially when the most recent mill owners couldn’t make a go of it.

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Maine’s sole tissue producer faces threats from abroad and closer to home

Maine’s sole tissue producer faces threats from abroad and closer to home | Timberland Investment | Scoop.it

Much has been written about the challenges facing the paper industry in Maine. In most cases, however, all paper manufacturers are lumped together without regard for the specific types of paper they produce.

The majority of the paper produced in Maine is what’s known as coated paper, which is used to make magazines, catalogs and newspaper inserts. The market for coated paper has been in decline as digital media eats into demand for the printed page. However, there is a type of paper not under siege by digital technology: tissue.
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Demand for tissue — which includes toilet paper, paper towels, paper napkins and specialty tissue paper — has been increasing, albeit slowly, according to Gregory Rudder, editor of the trade publication PPI Pulp & Paper Week. In the past 19 years, total U.S. tissue capacity — meaning the amount of tissue that would be produced if all tissue machines operated at 100 percent all year — has grown on average 1.8 percent per year, from 6.55 million short tons to an estimated 8.92 million short tons in 2015, according to Rudder, who noted most U.S. mills operate on average at 95 percent to 97 percent capacity.
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While Maine may have a history of tissue production, only one mill currently produces the product. That mill, Lincoln Paper and Tissue, faces heightened competition from an aggressive build-up of Asian production — and from U.S. firms looking to tap the tissue market.
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In late 2012, Jakarta, Indonesia-based Asia Pulp and Paper made an announcement that rattled the global market for tissue. It announced plans to over the next few years build 42 new tissue machines at its paper mills in China and another 15 new tissue machines at its mills in Indonesia. Such an expansion, if successful, would add 2.9 million metric tons of capacity to the global market and vault the company past major tissue producers such as Kimberly-Clark and Georgia-Pacific to become the largest tissue manufacturer in the world.


While much of that new capacity would meet the growing demand for tissue in the Asian market, where more people are rising into the middle class, Van Scotter expects the company to ship a good portion of that new tissue across the Pacific Ocean to the United States, which is the largest market for tissue products in world.
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As the rest of the paper industry struggles with falling demand, the growing demand for tissue makes it an attractive market for U.S. paper manufacturers that are considering converting other types of paper machines to produce tissue. Just last year a paper mill in Virginia converted an uncoated freesheet machine to produce tissue, and another paper company is working to convert another uncoated freesheet machine to tissue production at a mill in Oregon, according to Rudder.


In Maine, John Williams at the Maine Pulp and Paper Association has heard that the Woodland mill in Baileyville may install a tissue machine at some point in the future. And just across the border in New Hampshire, Patriarch Partners invested $35 million to install a new tissue machine at its mill in Gorham, N.H. Patriarch also owns Old Town Fuel and Fiber, which supplies pulp to Gorham Paper and Tissue.

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Northeast Mills Face Challenges

Northeast Mills Face Challenges | Timberland Investment | Scoop.it

The paper industry has a long and storied history in the Northeastern United States but is being challenged by two of the largest paper making costs, fiber and energy. According to Forest2Market’s Delivered Price Benchmark, the Northeast average hardwood total fiber cost was over $10.00 higher than the average hardwood total fiber cost in the Lake States and over $14.00 higher than the average in the South.


Softwood total fiber costs are also higher in the Northeast than in other areas of the United States. Fourth quarter averages were over $4.00 higher than the Lake States, over $16.00 higher than the South, and over $8.00 higher than the West. The chart below shows how wood costs in the Northeast stack up compared to those in other regions.

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What's in store for the world paper industry in 2013?

What's in store for the world paper industry in 2013? | Timberland Investment | Scoop.it

After a second consecutive year of only 1% growth in 2012, world paper and board demand is predicted to rise 3% in 2013. Accelerating economic growth will be a significant factor in this positive forecast, although we are showing only a modest acceleration. More important will be our assumption that consumer inventories will stabilize, or even rise, as underlying consumption improves. Also, we are expecting that the graphic paper share losses to electronic alternatives will relent to some degree next year. Therefore, growth in global paper and board demand will move closer to the increase in the general economy compared to 2011-2012.

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The growth engines for the world paper and board industry will continue to be tissue and packaging. World tissue consumption is forecast to increase 4.5% in 2013, or slightly above the annual pace of the previous three years, and will be 6 million tonnes above its 2007 level or 22% higher. Global containerboard demand is predicted to rise 4% in 2013, following 2.5% annual growth in 2011-2012, with the growth relative to 2007 being 23 million tonnes or an 18% gain. Other paper and board usage, led by boxboard and specialty papers, is also expected to advance 4% in 2013, compared to 2% annual increases in 2011-2012. Other paper and board demand will be 9 million tonnes above 2007 in 2013, translating into an 11% rise.


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Canada teen discovers tree pulp has anti-aging benefits

Canada teen discovers tree pulp has anti-aging benefits | Timberland Investment | Scoop.it

A Singapore-born teenager who recently moved to Canada won a national science award Tuesday for her groundbreaking work on the anti-aging properties of tree pulp, officials said.


Janelle Tam, 16, won the $5,000 award in the 2012 Sanofi BioGENEius Challenge Canada for showing that cellulose, the woody material found in trees that enables them to stand, also acts as a potent anti-oxidant.


Tam's work involved tiny particles in the tree pulp known as nano-crystalline cellulose (NCC), which is flexible, durable, and also stronger than steel.


A pulp and paper mill that opened in January in Quebec now serves as the world's first large-scale NCC production plant.


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Report: China to Surpass Japan as the World's Largest Hardwood Chip Importer by 2014

Report: China to Surpass Japan as the World's Largest Hardwood Chip Importer by 2014 | Timberland Investment | Scoop.it

Chinese hardwood chip imports will double from 6.3 million Bone Dry Metric Tons (BDMT) in 2011, to 12.7 million BDMT in 2016. Japan's imports of hardwood chips will drop from 9.9 million BDMT to 8.6 million BDMT in the same period, the lowest volume of imports since 1993...

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Weekly North American pulp and paper rail freight rises 1.8%

Weekly North American pulp and paper rail freight rises 1.8% | Timberland Investment | Scoop.it

North American pulp and paper railroad freight traffic in the latest week ending March 17 was up 1.8% from a year ago to 9,383 carloads, the Assn of American Railroads reported. Volume through 11 weeks of 2012 at 105,422 carloads was down 1.2% from 2011.

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Stora Enso to build world-class EUR 1.6 billion consumer board and pulp mill in China

Stora Enso to build world-class EUR 1.6 billion consumer board and pulp mill in China | Timberland Investment | Scoop.it

Stora Enso plans to build plantation-based integrated board and pulp mills at Beihai city in Guangxi, southern China. The mill site will initially include a 450 000 tonnes per year state-of-the-art paperboard machine and pulp capacity of 900 000 tonnes per year, including necessary energy plant and auxiliary facilities. In a unique set-up, the board and pulp mills will be self-sufficiently integrated with wood supply from 120 000 hectares of self-managed eucalyptus plantations.

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Corrugated and paperboard demand to rise 2.6%

Corrugated and paperboard demand to rise 2.6% | Timberland Investment | Scoop.it
Demand for corrugated and paperboard boxes in the U.S. is forecast to increase 2.6 per cent per year to US$41.2 billion in 2020, as both nondurable goods manufacturing and retail sales post healthy gains, according to The Freedonia Group.

E-commerce and retail-ready applications will drive growth for corrugated boxes while folding carton demand will be sustained by the foodservice, carryout and pharmaceutical markets, Freedonia analysts say.

The group predicts value gains for corrugated and paperboard boxes will be stimulated by the increased adoption of value-added features such as high-quality printing, easy-open tear strips, and special coatings. Volume growth, they say, will be held back by lightweighting trends and market maturity.
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A Chinese company is planning to build a massive $1 billion paper mill in Arkansas

A Chinese company is planning to build a massive $1 billion paper mill in Arkansas | Timberland Investment | Scoop.it

The Chinese company Sun Paper announced plans Tuesday for a $1 billion mill in southern Arkansas, the paper company's first facility in North America. Joined by Sun Paper officials to announce the project at the state Capitol, Gov. Asa Hutchinson said the project will create 250 jobs and is one of the largest private investments in Arkansas' history. Company and state officials said they expected the project to employ 2,000 people during its construction and create an additional 1,000 jobs indirectly in the timber industry.
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Company officials said they hoped to begin construction in the first half of 2017 on the mill, which will be used to convert wood into pulp to be used for paper production, and said it will take two and a half years to build.
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The average salary for jobs at the mill will be $52,000, according to a memorandum of understanding the company signed with state and local officials. The project is receiving $10 million in local incentives for infrastructure at the site and another $92 million in local property tax abatement. The state is providing $12.5 million for site preparation and equipment, up to $3 million workforce training funds and a $50 million fully collateralized loan. Other state incentives include cash rebates based on its payroll, sales tax refunds on construction materials and a recycling tax credit. The state also has agreed to expedite the process for approving the air and wastewater permits necessary for the project.

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Verso contemplating bankruptcy, sale of Jay mill

Verso contemplating bankruptcy, sale of Jay mill | Timberland Investment | Scoop.it

Verso Paper Corp, which owns a mill in Jay, said it’s spent about $55 million to restructure its business in the past three months as it considers bankruptcy or selling its Maine mill.


The company said in an earnings statement Monday that based on financials as of Sept. 30, “we believe that there is substantial doubt about our ability to continue as a going concern for the next 12 months.”


That position has caused the company to look at restructuring options, either out of court or through a Chapter 11 bankruptcy proceeding.


The company’s Jay mill employs about 865 people, 300 of whom it plans to lay off in the next year.


The admission follows the company’s delisting from the New York Stock Exchange in the wake of its purchase of larger competitor NewPage for $1.4 billion.


The company said that it has started discussions with creditors over its restructuring options and is separately considering how it might raise money by selling off certain assets, like its Androscoggin Mill in Jay.

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MLPs: The Next Big Thing For Paper Stocks

MLPs: The Next Big Thing For Paper Stocks | Timberland Investment | Scoop.it

Nothing could be more uninteresting than firms that make paper products. After all, toilet paper, cardboard boxes and fax paper aren’t something we really get excited about.
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However, the paper stocks may be getting a dash of high growth from using certain corporate tax structure typically found in the oil patch – master limited partnerships (MLPs). Sector giant International Paper Co (NYSE:IP) has begun the first steps of formulizing plans to place some of their facilities inside an MLP. If successful, not only would it lead to some large tax-advantaged distributions, but some pretty hefty share gains as well. For investors, the adoption of MLPs by the various paper stocks could be the growth element the boring sector needs to really get moving.

This isn’t the first time that the forestry sector has used “pass-through” corporate structures to enhance returns for investors. I’ve been a big long-term fan of the various timber real estate investment trusts (REITs) and there is one timber company — Pope Resources (NASDAQ:POPE) — that is structured as a MLP. However, this is the first time that paper producers have seriously toyed with the idea of placing various mills inside the tax structure.


The key for the paper stocks is just what kind of assets that can be placed inside the MLP. According to consultants at PricewaterhouseCoopers LLP, the paper companies could adopt an MLP structure if the mills that produce containerboard use only virgin feedstock — trees or wood chips, or only use a maximum of 25% recycled fiber based on annual input weights to produce paper or cardboard. Mills relying too heavily on recycled corrugated boxes aren’t eligible for the MLP structure. The reason is that the IRS clearly defines that in order to use an MLP, an operation must be processing or transporting natural resources.
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...the use of an MLP would help boost cash flows and earnings at the paper stocks. The incentive distribution rights (IDRs) and tax-advantaged dividends would ultimately help drive the bottom lines at the cardboard producers. As such, the mills will be more highly valued inside a MLP rather than the current corporate structure. That would also allow the sponsoring paper companies to sell additional at higher multiples for various corporate actions — namely big dividends for shareholders. Additionally, using POPE as an example, the paper stocks with timberland holdings could place some of those assets into the MLP as well.


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Resolute Forest to shut two Quebec mills, one in Ontario

Resolute Forest to shut two Quebec mills, one in Ontario | Timberland Investment | Scoop.it
Resolute Forest Products Inc. (TSX:RFP) is reducing its capacity for making newsprint at three mills in Ontario and Quebec, at a cost of 300 jobs overall as it copes with ]a global decline in newspaper circulation and the effect of a spruce budworm infestation on lumber supply.

Resolute is closing the Iroquois Falls plant in Ontario and paper machines at its Baie-Comeau and Clermont factories in Quebec, costing 120 jobs, and the Iroquois Falls plant in Ontario, which will eliminate 180 jobs, the Montreal-based company said Thursday.

The Baie-Comeau machine is already idled while Clermont will be permanently closed near the end of January.

Resolute says it’s coping with a long-term decline for several reasons, including market conditions, costs and “ill-founded” campaigning against its forest practices by environmental groups.
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Last Millinocket paper machine up for auction

Last Millinocket paper machine up for auction | Timberland Investment | Scoop.it

The end of more than a century of paper manufacturing in this town looks to be at hand with the auction of the No. 11 paper machine and other equipment from the shuttered mill site.
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Cate Street spokeswoman Alexandra Ritchie said the sale of the No. 11 comes after more than two years of searching, with state officials and other stakeholders, for a strategic partner to operate the Millinocket mill. The company determined that it could not restart the mill and be profitable without one, she said.
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The No. 11 is the last papermaking machine on the Katahdin Avenue site, which in its heyday employed more than 4,000 workers as part of a company formed in 1897 that opened in 1900 under the direction of Garrett Schenck. The mill’s industrial might peaked after World War II, when it owned more than 2 million acres of timberland. It began producing specialty papers for magazines, newspaper supplements, paperbacks and catalogs in the 1950s, according to a history compiled by the University of Maine.
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Cate Street Capital is a New Hampshire-based investor that bought the two paper mills in Millinocket and East Millinocket for $1 in October 2011.
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Many residents and millworkers believed that the mill’s closure in September 2008 was premature. They claimed that the mill, which produced catalog, magazine and retail industry fliers, was making about $2 million per month in sales when it closed.


Representatives of then-mill owner Brookfield Asset Management admitted that they had booked the No. 11 machine with orders through 2008 and were running the machine 24 hours per day, seven days per week. The machine’s most productive year, they said, was 2006.


Brookfield officials said the booming cost of No. 2 heating oil, upon which the mill relied to produce steam critical to papermaking, made profitability impossible.
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The East Millinocket paper mill maintained operations until it shut down in April 2011. About 450 workers were laid off. It reopened in September 2011 with about 220 workers. Then it closed again in late January 2014. Cate Street representatives said they hoped to restart the mill in 16 weeks with the completion of an energy and management makeover.
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The building that houses the No. 11 will be the home of the $140 million pellet mill that Thermogen Industries LLC, which Cate Street manages, hopes to build later this year or early next, Ritchie said.

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Wood fiber costs for hardwood pulp producers have fallen 17% in two years

Wood fiber costs for hardwood pulp producers have fallen 17% in two  years | Timberland Investment | Scoop.it

The wood costs for the global pulp industry have trended downward in amajority of the pulp-producing regions of the world the past two years, according to the Wood Resource Quarterly (WRQ).This has mainly been the result of lower prices for market pulp but also because of reduced pulp production and increased supply of wood fiber in some regional markets.


As the costs of energy, labor and chemicals have changed relatively less than those of wood fiber the past year, the wood cost as a percentage of the production costs when manufacturing pulp have fallen. In the 2Q/13, wood fiber costs accounted for just over 59% of the production costs on a worldwide basis, down from approximately 63% in the 2Q/12 but up from 51% in 2006, according to Fisher International.

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Wisconsin's place in paper industry under siege

Wisconsin's place in paper industry under siege | Timberland Investment | Scoop.it

In the age of Google and the iPad, change in America's papermaking heartland is swift, turbulent and perhaps irreversible.


In Wisconsin, mills that produce publishing-grade paper have been closing at an average of one a year since 2006. Each shutdown means a loss of 300 to 600 jobs, in turn draining hundreds of millions of dollars from the region and creating an economic drag that rivals the days of automaker shutdowns in Michigan.


An industry that thrived for generations on a tight, homegrown loop - from the forest to the mill to the printer and often back to the mill for recycling - finds itself at the mercy of Wall Street hedge funds and equally unforgiving global economic and political forces.


Investors see a bleak bottom line, a world in which paper is losing its value to laptops and tablets; they aim to squeeze out profit while they can. China, meanwhile, is pouring government money into new mega-mills and machines, betting it can win by flooding the world market with low-cost paper.


Mill workers in Wisconsin, the nation's top papermaking state, have fought off the digital threat for years. The threat posed by China is just now becoming clear.

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Mill CEO blames closure on market conditions - Nova Scotia

Mill CEO blames closure on market conditions - Nova Scotia | Timberland Investment | Scoop.it

The Bowater Mersey mill's closure can be blamed on market conditions, according to Richard Garneau, president and CEO of Resolute Forest Products.


"We've worked with the employees and government to try and save the mill. The economic slowdown around the world has made the situation untenable," Garneau said.


"We really tried hard to find a way forward for this mill to operate, but we never expected overseas demand would go down by 25 per cent."


Garneau said Resolute has already put its assets up for sale. He said the company has had some interest in its sawmill in Lunenburg, its electrical company generation plant, as well as a half a million acres of land.

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Great Northern Paper receives FSC certification

Great Northern Paper receives FSC certification | Timberland Investment | Scoop.it

Great Northern Paper Company, LLC, (GNP) announced that it has received a Forest Stewardship Council (FSC) certification.


FSC certification recognizes that wood products used in GNP’s papermaking process are harvested using certified responsible forestry management practices. The chain-of-custody certification addresses GNP’s ability to track certified products throughout its inventory and distribution processes.

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Moody’s maintains negative outlook on paper and forest industry

Moody’s maintains negative outlook on paper and forest industry | Timberland Investment | Scoop.it

The global paper and forest products industry remains a risk for investors as falling demand threatens profits at several companies in Canada and abroad, says a new report from Moody’s Investors Service.


“Our negative outlook is based on our expectation that the industry’s overall operating income will decrease over the next 12 to 18 months as demand and pricing weaken for most grades of paper and forest products,” said Ed Sustar, a vice president and senior credit officer at Moody’s in Toronto.

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Ho Hum: Annual AF&PA Capacity Survey Release

Ho Hum: Annual AF&PA Capacity Survey Release | Timberland Investment | Scoop.it

The American Forest & Paper Association released its annual US capacity survey this afternoon. The survey forecasts that industry-wide capacity across all grades will decline 1.2% in 2012 and then rebound slightly in 2013 & 2014. Of course, the out-yr numbers need to be regarded with skepticism as closures are seldom telegraphed 2-3yrs in advance. The only category with significant capacity additions is Tissue, where capacity is forecasted to increase 1.2%/yr in the years 2012-14, including a 3.9% in 2013. In other categories, most Printing & Writing grades are seeing capacity shrink, while packaging grades are seeing very modest growth. None of this should be terribly surprising...

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