WORLD NEWS
Industry news
Log costs fall in Russia as production cut back
Russian Prime Minister Putin announced in early November that the
long-awaited log export tax, which would practically cease log exports in January 2009, will be postponed for 9-12 months.
This is due to the slow-down of the Russian economy in 3Q 2008, with the reduced
domestic and export demand for lumber. Last year saw lumber production decrease by 7% and logging by around 9%, compared to 2007.
Spruce sawlog prices fell about 7% in the 3Q 2008, while pine log prices
increased slightly with the pine lumber export market still reasonably active early in the quarter. A continued slowing in the production rate in the sawmilling sector for the coming months is likely to result in
further declines in sawlog prices this winter, even with a delay in implementation of the log export tax increase (previously scheduled to increase to Euro50/m3).
Softwood pulplog prices in northwest Russia
fell by 13% last year to their lowest level since early 2007. With slowing demand for domestic wood fibre and reduced consumption of wood fibre in Finland (the largest export market for Russian logs), it is probable
that pulplog costs will continue to decrease slightly next year.
Softwood log shipments from Russia to Finland will probably continue to decline as Finnish companies are expected to consume less in 2009.
Indonesia allows paper from natural forests
The Forestry Ministry will allow pulp and paper industries to use wood from natural forests if supply from timber
estates is not available due to their development problems in the past two years.
"It is not impossible for the policy for pulp and paper industries to use wood from natural forests to be extended,"
Forestry Minister MS Kaban said here on Friday.
The forestry minister had earlier issued a decree banning pulp and paper industries to use wood from natural forests. Based on the decree, companies linked with
pulp and paper industry are required to finish planting their areas in 2009 by the latest.
However, Minister Kaban said in the past two years several companies had been suspected of conducting illegal logging
and as a result many companies had been afraid of being suspected of doing it making them to delay their planting and industrial forest development activity.
"Plants that have to be harvested after six
to seven years were cut earlier and as a result stocks of tree stand are irregular," he said. The minister did not mention time limit for the use of wood from natural forests saying "it depends upon their
respective annual plan."
The Forestry Ministry expects until 2009 a total of five million hectares of timber estates could be created. Until the end of 2008 realization of the forest development reached
4.3 million hectares.
Source: ANTARA News
PAPER COMPANY NEWS
Sappi successfully acquires M-real's coated graphic paper business
Sappi Limited, the leading producer of coated fine paper and chemical cellulose, announced today that it had completed the acquisition of the coated graphic paper business of M-real, a Finnish board and
paper manufacturer, for Euro 750 million ($1.1 billion; R8.9 billion), subject to purchase price adjustments for net debt and working capital.
M-real's coated graphic paper business (other than in
respect of M-real's South African business), including brands and know-how, as well as four coated graphic paper mills - at Kirkniemi and Kangas in Finland, Stockstadt in Germany and Biberist in Switzerland have now
become part of the Sappi Fine Paper Europe operations. M-real's Husum PM8 Mill in Sweden and Ãnekoski PM2 Mill in Finland are, as of 01 January 2009, contract producers for Sappi under supply agreements. Long
term supply agreements for wood, pulp and other services have also taken effect.
The acquisition was financed through a combination of equity, assumed debt, the cash proceeds from a fully subscribed rights
offering and a vendor note. All conditions precedent, including clearance from the relevant competition authorities, have been met.
The main benefits of the acquisition include:
- Enhancement of Sappi's position in the coated fine paper sector in Europe and globally.
- Expansion of Sappi's woodfree coated product offering and customer base, as well as the addition of the strong brands and market strength of M-real's magazine paper.
- Increase of Sappi's European graphic paper capacity from 2.6m tons/annum to 4.5m tons/annum.
- Expected realisation of significant synergies. Sappi estimates total annual synergies should be realisable in full within three years and without material capital investments.
Portucel supports 'Two Sides' initiative
The UK's National Association of Paper Merchants (NAPM) has announced Portucel Soporcel, a
European manufacturer of uncoated fine paper, as its latest sponsor to join the growing number of industry organizations that have committed their support to 'Two Sides', the initiative launched in October 2008 to
address the common misconceptions surrounding paper and the environment.
Expressing his support for the project, António Redondo, executive director at Portucel Soporcel, said: 'We're delighted to
support "Two Sides" as this initiative perfectly supports our group's business which is based on a cycle of sustainable development, and we look forward to our cooperation with 'Two Sides' which I believe is an
industry-wide initiative which is completely necessary.
'All our products come from forests managed with the strictest respect for the environment, with all the wood coming from controlled sources, and are
manufactured using natural, renewable energies. The environmental performance of our mills reflects large-scale, permanent investments in the best available environmental techniques. Between 2000 and 2007, the
group's investment in environment protection projects amounted to some 270 million euros.
Alistair Gough, NAPM president, confirmed that the participation of Portucel Soporcel completes the list of major
European Groups which have joined the Initiative. '"Two Sides" is clearly gathering momentum, and we are extremely excited about working with our supporters to move the initiative forward over the coming months,'
said Gough.
The first meeting of the Print and Paper Sustainability Group, who will take over responsibility for the management of 'Two Sides', will take place in January 2009.
Source: http://news.paperindex.com/
