RÉSUMÉ January 2012 Management Changes in Europapier During the Supervisory Board Meeting on December 14, 2011 of Europapier AG and Heinzel Holding GmbH the following changes in position have been decided: Werner Hartmann, COO of Europapier, will leave Europapier by end of January 2012. The responsibilities of Werner Hartmann will be taken over by the Board members Helmut Limbeck and Klaus Vlach. From February onwards Werner Hartmann will strengthen the project management of Papermachine PM2 MG/MF in Pöls. His main tasks will be the development of the sales structure and the sales/marketing as well as productbrand strategy for this investment project, worth more than EUR 100 Mio. Werner Hartmanns knowledge in industry sales and his sound experience should help to get the final shareholder approval by the second quarter 2012. M-real divest Reflex mill Premium Paper business to German Hahnemühle M-real Corporation, part of Metsäliitto Group, has agreed to divest the Reflex mill's Premium Paper business to Walzmühle AG that is owned by Hahnemühle FineArt GmbH, the Hahnemühle management and private shareholders of Hahnemühle. The divestment includes the complete Premium Paper business and related assets as well as approximately 100 of M-real's employees. Premium Paper products are used in high-quality graphical end-uses, such as letterhead, brochures, books, calendars and envelopes. The divestment is expected to be closed during 1Q 2012. The divestment would decrease M-real's annual sales by approximately EUR 20 million and it would not have a material impact on M-real's operative result. The divestment is not expected to have a material non-recurring result or cash flow impact taking into account the bookings made in 4Q 2011. After the divestment of the Premium Paper business, M-real has no operations left at the Reflex mill. The discontinuation of the carbonless paper converting was agreed in late 2011. In October 2010, M-real sold the paper machine 5 and some related assets at the Reflex site to Metsä Tissue. Hahnemühle FineArt GmbH is a German based speciality paper producer and one of the market leaders in its field in Germany. European CWF and UWF deliveries keep dropping in November European coated woodfree (CWF) and uncoated woodfree (UWF) paper shipments continued to decrease in November, according to data from CEPIFINE, the Association of European Fine Paper Manufacturers. Total CWF shipments fell 4.2% year on year to 633,000 tonnes. Those within Europe decreased by 2.8% to 515,000 tonnes, while deliveries to non-european destinations dropped by 9.9% to 118,000 tonnes. Total UWF paper deliveries dropped by 5.5% year on year to 613,000 tonnes in November. While shipments within Europe fell by 5.1% to 498,000 tonnes, exports to non-european
countries decreased by 7.3% to 115,000 tonnes. CEPIFINE statistics include information from the 27 countries in the European Union plus Norway and Switzerland. Two Sides launches U.S. website to provide information about environmental impacts of paper-based communication Two Sides, the fast-growing non-profit organization established to promote the responsible production, use and sustainability of print and paper, today launched its U.S. website, www.twosides.us. The site, filled with facts from well-known, credible sources, provides an easily accessible resource for anyone who wants trustworthy information about the environmental impacts of paper-based communication. In addition to a "Myths and Facts" section, the website offers a host of other resources, including reports, case studies and news on the sustainability of print and paper, a question and answer page where website visitors can submit relevant questions, and links to networking opportunities like the Two Sides blog and social network pages. The site also provides information on how to join Two Sides and offers additional members-only benefits. To date, over 50 U.S. companies have joined Two Sides. APP China building 700,000 tonne/yr coated ivory board machine in Ningbo APP China has started construction of a new cartonboard machine at its Xiaogang mill in Ningbo city, Zhejiang province. The machine will have a capacity of around 700,000 tonnes/yr, and is scheduled to come online in the first half of 2013, according to a contact from the company. The three-ply unit is reportedly to be 7.3 m wide and to have a design speed of 1,200 m/min. The main output of the unit will be coated ivory board. APP China also plans to start up a 1.2 million tonne/yr board machine producing the same grade at the end of this year at its mill in Qinzhou city, Guangxi autonomous region. The contact explained that output of the two new machines will be a little different. The unit in Guangxi will focus on a higher grammage grade, and the one in Ningbo will make a grade with lower grammage. However, no further details are available so far. The Xiaogang site is run by the firm's subsidiary Ningbo Asia Pulp & Paper (Ningbo APP), and currently houses a 1 million tonne/yr cartonboard unit dubbed PM 6. China APP also has another mill in Ningbo, which operates three cartonboard machines with a combined capacity of 570,000 tonnes/yr. It is run by a subsidiary called Ningbo Zhonghua Paper. European pulp consumption tumbles 13.9% in December, inventories rise 2.3% European consumer pulp inventories increased in December, rising 2.3% from November to 662,337 tonnes, according to UTIPULP data. Inventories were 58,824 tonnes or 8.2% lower than the yearearlier period of 721,161 tonnes. The figures break down as 20 days worth of stock last month, one day higher than in November but one day less than December 2010. Pulp consumption fell in December, sliding 13.9% from 959,378 tonnes in November to 826,140 tonnes last month. The December figure was down 8.8% from the year-earlier period, when consumption stood at 905,931 tonnes.
UTIPULP STATISTICS (1,000 tonnes) December 2011 November 2011 % change Consumption (tonnes) 826,140 959,378-13.9 Stocks (tonnes) 662,337 647,272 2.3 Stocks (days) 20 19 - Note: Figures have been rounded. Pulp inventories at European ports decline in December Stocks of wood pulp at European ports fell in December after posting an increase the previous month. Inventories totaled 1,379,703 tonnes last month, down from 1,398,701 tonnes in November, according to Europulp data. Total stocks in December were considerably higher than the year-earlier period, when they stood at 1,193,286 tonnes in December 2010. Stocks of Woodpulp at European Ports (tonnes) Country December 2011 November 2011 December 2010 Netherlands / Belgium 601,624 645,435 519,599 France 134,317 92,627 112,219 UK 34,046 35,897 36,930 Germany 204,951 209,602 142,046 Switzerland 8,016 7,633 15,598 Italy 347,019 357,769 339,269 Spain 49,730 49,738 27,625 TOTAL 1,379,703 1,398,701 1,193,286 Source: Europulp. M-real appoints Pasi Piiparinen as SVP, head of paperboard business area M-real Corporation, part of Metsäliitto Group, renews its management and reporting structure to better reflect the company's strategy and the focus on fresh forest fibre paperboard. M-real operates through two business areas that are also the company's reporting segments from first quarter of 2012 onwards: Pasi Piiparinen (50) has been appointed SVP, Head of Paperboard business area and a member of M-real Corporate Management Team as of 20 March 2012. Piiparinen reports to CEO Mikko Helander. Piiparinen joins M-real from Stora Enso where his latest position was SVP, Sales and Marketing, Fine Paper Business Area. Piiparinen has an extensive background also in Stora Enso's packaging business. His education is Master of Science, Engineering. As earlier announced, Mika Joukio, current SVP, Head of Paperboard business area has been appointed CEO of Metsä Tissue Corporation as of 1 February 2012. After Mika Joukio leaves and before Pasi Piiparinen starts in his new position, CEO Mikko Helander will be the acting Head of Paperboard business area.
Papierfabrik Scheufelen names Horst Lamparter as sales marketing director Papierfabrik Scheufelen, Lenningen, manufacturer of high-quality coated, wood-free premium paper, would like to announce the follo-wing change to its management team: With effect from 1 January 2012, Horst Lamparter has been appointed as Director Sales and Marketing. Andreas Laderer, previously responsible for Sales Central Europe, has been appointed as his deputy. Lamparter joined Scheufelen in 1982 and has many years of experience in international business, particularly on the European markets. Cepiprint and Cepifine merge Cepiprint, the Association of European publication paper producers and Cepifine, the Confederation of European fine paper industries on January 1, 2012 joined forces to create a new Association based in Brussels. The Association, "Euro-Graph," will represent over 30 companies, operating well over 100 paper mills in Europe, with an annual capacity of approximately 45 million tonnes of graphic papers. The merger allows the graphic paper sector, the largest within the European pulp, paper and packaging industry, to stand united before the common challenges posed by new and electronic media. The new entity will aim to further improve the quality of market statistics and analysis for its members, as well as addressing cross-sector issues such as sustainability and communication, while benefiting from streamlined and simplified processes and working procedures. In spite of the new name, which should help in reducing the confusion between different Associations, Euro-Graph will remain closely linked to CEPI, the Confederation of European Paper Industries. The members of Euro- Graph will continue to fully support the work and activities of CEPI, doing their utmost, through the new Association, to help the industry bringing forward coordinated messages. Mr. Jyrki Ovaska, President of the paper business group at UPM and currently Chairman of Cepiprint, will be Chairman of Euro- Graph. The organization will also be represented by Vice-Chairman fine paper, Mr. Paolo Mattei of Lecta/Cartiere del Garda, currently Chairman of Cepifine, and by Vice-Chairman mechanical paper, Mr. Henrik Sjolund, Managing Director of Holmen Paper. Mr. Emanuele Bona, presently Director General of Cepiprint, will be in charge of the daily management of the Association, taking on the same position in Euro-Graph. Mr. Frank Leerkotte, Managing Director of Cepifine, will leave the Association to concentrate all his efforts on the Print Power/TwoSides campaign, a major communication project supported and funded by the entire print value chain. Mohawk Paper mill in Ohio closes after 163 years The last day for most employees at Mohawk Fine Papers' Beckett Mill was Friday, closing another chapter in Butler County's oldest industry. The original Beckett Paper Co. mill on Dayton Street in Hamilton opened in 1848. Beckett invented the first cover papers, a heavier and stronger fiber paper that can be folded and embossed for use in brochures, menus and covers of annual reports, said former Beckett Co. president and chairman Dave Belew.
Print Power add print add power Published three times a year, PrintPower is a B2B magazine which explores the role and strengths of print in modern-day integrated marketing programmes and initiatives. With a mixture of interviews, think pieces and casestudies, the title focuses on successful brands and the role print plays in their marketing triumphs. The magazine s audience consists of more than 9,000 marketing professionals including a highly influential mix of advertising, marketing and digital decision makers, as well as senior opinion formers and brand owners such as heads of marketing and marketing directors.www.printpoweruk.co.uk Tullis Russell mill in Markinch, UK, restarts operations after spate of fires Tullis Russell's mill in Markinch, Fife, Scotland, which was hit by a number of fires on December 27, restarted paper production last week as planned following the one-week Christmas holidays. According to the mill manager Steve Moss, the fires were very likely caused by arson. The damage caused by the fires was confined to raw material stocks in one of the mill's two warehouses. Some of the firm's transport equipment such as trucks was also damaged. The mill's three paper machines were intact, however. Tullis Russell can produce some 164,000 tonnes/yr of coated and uncoated woodfree paper and specialty paper for cards, covers and premium packaging. Australia: PaperlinX a takeover target Paper merchant PaperlinX has become a takeover target and candidate for a break-up, revealing it had received a proposal from an unnamed private equity bidder and was considering offers for parts of its business from multiple buyers. Shareholders were also told to expect another loss in the second half-year as economic conditions continued to deteriorate, particularly in Europe, where the company is heavily exposed. PaperlinX said it had received an "incomplete, indicative, conditional and nonbinding proposal" from a private equity firm to acquire all of the issued capital of PaperlinX and its step-up Preference Shares (SPS). The offer of 9c per ordinary share and $21.85 for preference shares could value the company at up to $500 million when incorporating outstanding debt and other liabilities. The outlook for the sector remains as bleak as ever following Thursday's downgrade from another industry player, Gunns. "Since the company's AGM, trading and general economic conditions have continued to deteriorate, particularly in our key European markets" PaperlinX said in a statement to the ASX. "Following further disappointing trading volumes, PaperlinX now expects to report a statutory loss after tax for the first half of the 2012 financial year of approximately $26m at current exchange rates." The company has struggled in recent years as demand for paper products fell and its razor-thin profit margins were squeezed, pushing down the stock from more than $4 in 2007 to yesterday's closing price of 8.8c. PaperlinX incurred a net loss of $108m last financial year, its third straight loss. Reports have speculated that the identity of the private equity company could be CHAMP, PEP or Archer. However, others have poured cold water on this suggestion, arguing that the bidder could have come from Europe.