Over the Wire - Tissue Edition

SCA, Stockholm, Sweden, earlier this month (September 19) hosted the Capital Markets Day in Stockholm. The company’s strategy of recent years of focusing on costs, cash flow, capital efficiency, and innovation remained firmly in place this year. Increased growth was added to the Group’s strategic agenda in 2010.

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Kimberly-Clark Professional, Roswell, Ga., USA, this week announced a major step forward in the company's sustainability efforts through the expanded independent, third-party certification of Kimberly-Clark Professional products by the Forest Stewardship Council (FSC) and EcoLogo.

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Miami University, Oxford, Ohio, USA, is modernizing the stock preparation system of its pilot paper machine using significant donations by the Nalco Foundation and the Georgia-Pacific Foundation.

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SCA, Philadelphia, Pa., USA, maker of the Tork brand of away-from-home paper products, showcased its commitment to hygiene during U,S. National Clean Hands Week (September 19 - 23) with pointers for practicing proper hand hygiene and preventing the spread of harmful bacteria.

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The cost of fiber is a key value driver for both recycled and virgin producers of tissue. At current price levels for both virgin and recycled fiber, tissue profitability margins are being squeezed. As virgin pulp prices begin to fall from peak levels, the cost differential between virgin and recycled tissue producers may narrow

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North American pulp producers Domtar, West Fraser, Canfor Pulp, and Tembec have all announced a $20/metric ton decrease for U.S. NBSK (northern bleached softwood kraft) pulp, which would take list prices to $950/metric ton ($85/metric ton below July’s peak of $1,035/metric ton).

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National statistics released by the Forestry Commission show that the U.K. has seen a rise of 19% in wood imports, thanks to the recent push for biomass fuels.

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Forisk Consulting, Athens, Ga., USA, forecasts sawtimber prices for the U.S. South weakening 2.7% in 2012 and then strengthening 2.9% into 2013.

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Wood fiber costs continued to go up for the global pulp industry in the second quarter of this year, having trended upward since early 2009.

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ABB, Zurich, Switzerland, this past week completed its acquisition of the Sweden-based Lorentzen & Wettre from ASSA ABLOY AB.

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Competition authorities in Spain, Germany, and the U.S. have approved Suominen Corp.’s (Brazil) acquisition of Ahlstrom Corp.’s (Finland) Home and Personal wipes fabrics business area.

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Cascades Tissue Group, Canada, has purchased a new rewinder from Fabio Perini, Italy, to be installed at its tissue plant in Pittston, Pa., USA.

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Georgia-Pacific LLC, Atlanta, Ga., USA, has closed a new senior unsecured credit facility totaling $3.5 billion, which matures in 2016 and consists of a revolving credit facility, a domestic term loan, and an international term loan.

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Industrie Cartarie Tronchetti (ICT), Lucca, Italy, has started up a new Metso-supplied tissue line at its mill in Montargis, France.

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Kimberly-Clark Corp., Dallas, Texas, USA, reports that it is in exclusive talks with Atlas Holdings LLC, Greenwich, Conn., regarding the potential sell of its pulp mill at Everett, Wash.

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Kleenex brand, Dallas, Texas, USA, has introduced Kleenex Cool Touch tissue, which actively releases a cool sensation to soothe dry, sore noses on contact.

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Metsä Tissue, Finland, reports that it has initiated construction of the converting and warehousing hall at its Krapkowice mill site in Poland.

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Moventas Santasalo Oy Finland, reports that it has developed a new gear series of yankee cylinder drive units for tissue machines.

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AstenJohnson, Charleston, S.C., USA, has acquired Paperchine, Rockton, Ill., and reports that it has begun the process of merging the engineering and equipment company with JohnsonFoils, an equipment division of AstenJohnson.

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Saber Swiss Quality Paper, New Delhi, India, plans to shutdown TM 5, one of the two machines at its mill in Balsthal, Switzerland, and eliminate 57 of 113 jobs at the mill, as well as reduce staff salaries by up to 10% in the first half of 2012.

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SCA, Sweden, reports that it will invest SEK 460 million in a tissue machine upgrade in the U.S. The company also has decided to rebuild a paper machine in Sweden for the manufacture of improved newsprint, an investment totaling SEK 350 million.

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Starboard Value LP, New York, N.Y., USA, the largest shareholder of Wausau Paper Corp., Mosinee, Wis., with 7.5% of its outstanding common stock, this week said that it delivered a follow-up letter to the company's President and CEO Thomas J. Howatt, and the board of directors to convey its updated thoughts after having met with management and the board in late August.

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The TAPPI Yankee Dryer Safety and Reliability Committee will meet Wednesday, November 2, from 8:15 a.m. – 4:00 p.m. at Miron Construction, 1471 McMahon Dr., Neenah, Wis. USA.

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