Ned Dwyer to lead Catalyst Paper as president/CEO Catalyst Paper has appointed Edward (Ned) Dwyer president and CEO. With more than 30 years in the pulp and paper industry, Dwyer is an industry veteran who has held progressively senior roles with global companies. He most recently served as the company’s chief operating officer. “Ned is recognized for successfully leading major operational and performance improvements in cost, productivity, efficiency, quality and safety. He has a track record for successful machine start-ups and rebuilds, as well as leading product development for emerging markets,” according to a company statement. Stéphane Renou named president/CEO of FPInnovations Stéphane Renou assumed the role of president and CEO of FPInnovations in December, succeeding Pierre Lapointe who has held the position since December 2008. Lapointe spearheaded many major projects at FPInnovations and, according to the organization, is leaving a rich and promising legacy to the Canadian forest industry. His commitment was recognized last year when he was welcomed to the Royal Swedish Academy of Engineering Sciences. A Montreal native, Renou has a number of degrees from Université de Sherbrooke as well as Polytechnique Montréal where he went on to complete a master’s degree in Electrical Engineering and a Ph.D. in Chemical Engineering. In 2015, he earned a MBA (Innovation Management) from the University of Colorado. “We are confident that Stéphane, working closely with the members of our senior management, will further increase our current momentum and take FPInnovations to the next level,” said Yvon Pelletier. “Stéphane’s background and interests fit very well with FPInnovations’ strategies and plans for the future, and we are confident that he has the skills and competencies that will make him a successful president and CEO.” Report: Biomass and other renewables grow in Canada Canada’s non-hydro renewable power capacity grew by more than 8 per cent in 2016, adding nearly 1,300 megawatts of solar, biomass and wind-generated power, according to a National Energy Board (NEB) report. In 2016, Canada’s electricity generation was 66-per-cent renewable, with non-hydro renewables accounting for 7.2 per cent and hydro accounting for 58.8 per cent. When nuclear power generation is added, a total of 80.6 per cent of Canada’s electricity was non-emitting in terms of greenhouse gases. The long-term trend in Canada since 2005 has been increased power generation from natural gas and wind, and decreased generation from coal. In 2016, total Canadian natural gasfired power generation actually dropped due to decreases in British Columbia, the Northwest Territories, Manitoba, Ontario, and Newfoundland and Labrador. However, in Alberta, Saskatchewan, New Brunswick, and Nova Scotia, natural gas generation increased as part of these provinces’ ongoing transition away from coal. “Since 2005, the electricity sector has cut its greenhouse gas emissions by one-third, even though Canada’s total emissions only fell by 2.2 per cent in that same time period,” NEB chief economist Shelley Milutinovic said. “While hydro will remain Canada’s dominant source of power, we continue to see impressive gains in non-hydro renewable capacity from wind, solar and biomass.” Kruger dedicates PM10 linerboard machine in Trois-Rivières Kruger officially dedicated Paper Machine No. 10 (PM10), which was completely rebuilt to manufacture 100-per-cent “lightweight and high-strength” linerboard at its Trois-Rivières Mill in Quebec. The $250-million investment went toward a full rebuild of the PM10 for “optimal results,” says Kruger, noting that before work got underway, Kruger engineers toured manufacturing plants in North America and Europe to find the best technology for manufacturing 100-per-cent recycled linerboard. Commercialized as XTR, the new linerboard grades manufactured on PM10 will help meet increasing demand for ultra-light packaging without compromising on strength, performance or environmental footprint, adds Kruger. PM10’s annual production will total 360,000 metric tonnes of XTR linerboard, an exclusive product that Kruger says it is the first to manufacture in North America. A portion of the production will be used by Kruger’s packaging plants in LaSalle, Que., and Brampton, Ont., while the remainder will be sold to packaging manufacturers in Canada and the United States. The project consolidated 270 jobs at the Trois-Rivières Mill, in addition to the Mauricie region and Quebec. Isabelle Males and Tristan Flood win 2017 Skills Awards for Aboriginal Youth Isabelle Males of Temiskaming First Nation from New Liskeard, Ont., and Tristan Flood of Matachewan First Nation from North Bay, Ont., are the 2017 recipients of the CCFM-FPAC Indigenous Youth Award. The winners of the Skills Awards for Aboriginal Youth were announced at the Conference Board of Canada’s National Summit on Indigenous Youth and Natural Resource Development in Calgary, Alta., by Forest Products Association of Canada (FPAC) and the Canadian Council of Forest Ministers (CCFM). “Ms. Males and Mr. Flood are both exceptional youth working to improve and support their communities and the forest sector,” said Derek Nighbor, FPAC CEO. “The forest sector benefits greatly and relies on the enthusiasm and dedication of Aboriginal youth pursuing careers in the forest sector for its future success.” Currently pursuing a master’s of sustainable forest management at the University of British Columbia, Males plans to become a Registered Professional Forester. She holds a bachelor of science in environmental sciences, majoring in resource management from the University of Guelph. As part of her undergraduate studies, she completed research with the Saugeen Ojibway First Nation Environment Department. Once certified as an RPF, Males intends on working as an Aboriginal liaison in northern Ontario. Flood is pursuing a bachelor of science in forest operations with a minor in commerce at the University of British Columbia. In 2016, he created his own small wood operation business, combining his interests in entrepreneurship and the forest industry. He previously volunteered with the Temiskaming Native Women’s Support Group and assists his community to plan Pow Wows. Upon graduation, he intends to continue operating his business in the forest sector. Fortress Paper sells off security paper business Fortress Paper’s wholly owned subsidiary, Fortress Security Papers AG, is selling its Switzerland banknote and security paper business for roughly $28 million. The Swiss National Bank and Orell Füssli Holding AG, a printing and banknote producer, have agreed to purchase Fortress’ full stake in the Landqart mill and its related operations. Located approximately 100 kilometres east of Zurich, the mill employs more than 275 workers and produces banknote, passport, visa and other brand protection and security papers. Since 1979, the mill has been the sole provider of banknote paper for the Swiss currency and has produced banknote paper for over 100 currency denominations for more than 50 countries. In 2011, it completed the rebuild of its PM1 paper machine, increasing its total capacity for producing security paper to approximately 10,500 tonnes per year. “As was previously announced in the third quarter, Landqart was confronted with the loss of material purchase orders by one of its significant international customers,” said Chadwick Wasilenkoff, Fortress Paper CEO. “As a result, Landqart required an injection of new capital and continued financial support of a magnitude that Fortress Paper as the parent company deemed as not strategically viable.” With the sale, the company is officially out of the banknote business and says it will focus on its dissolving pulp operations in Canada as well as other new initiatives. BillerudKorsnäs sees pulpwood shortage due to wet, mild winter BillerudKorsnäs says wet and mild weather in the fall and early winter has led to a shortage of pulpwood in late 2017 and early 2018. “The root cause of the shortage of pulp wood is the unusually wet and mild start of the winter. In normal winters, the ground freezes which allows for efficient forestry. At present, forestry machines cannot be used in the forests in certain areas. In addition, the possibility of driving on the forest road network is limited in some areas, which also reduces the flow of wood. The situation is the same in the Nordic countries, western Russia and the three Baltic states,” according to a statement from the company. Uno Brinnen, senior vice-president Forestry, said the company has taken measures to minimize the effects of the shortage, mainly by changing the product mix in its production to optimize wood usage. Cascades boosts containerboard packaging capacity with latest acquisition Cascades says it has acquired four plants in Ontario to strengthen its position in the containerboard packaging sector, and the purchase of an ownership position in Tencorr Holdings Corp. The company also announced an increase in its equity holding of the Greenpac Mill LLC. “We are very pleased to expand our presence in Ontario and increase our stake in Greenpac for the second time this year. These transactions align perfectly with our vision and strategy for our containerboard activities,” said Cascades president and CEO Mario Plourde. The four following plants were acquired from the Coyle family, and specialize in the manufacturing of boxes and specialty products: • McLeish Corr-a-Box Packaging & Design – Etobicoke • Brown Packaging – Burlington • Coyle Corrugated Containers Inc. – Scarborough • Coyle Packaging (Peterborough) Ltd. – Peterborough According to the company, the transaction will allow Cascades to expand its presence in Ontario, increase its production capacity by 500 million square feet per year, and strengthen its ability to serve customers. The plants already have procurement agreements with Greenpac, and as such, the transaction will have little impact on Cascades’ integration rate, it notes. Cascades has also acquired the Coyle family’s 33-per-cent stake in Tencorr, a company specialized in manufacturing sheet stock for box producers. Furthermore, Cascades has also acquired an additional interest in Containerboard Partners, one of Greenpac’s shareholders, thus increasing its holdings in Greenpac to 66.1 per cent from 62.5 per cent. The company has been consolidating the Greenpac results since April 2017. “These new assets will support our growth by providing us with increased capacity and flexibility. This transaction will also enable us to better serve our customers as we will be better positioned to provide them with the packaging solutions they seek,” said Charles Malo, president and COO of Cascades Containerboard Packaging. The total cost of the transaction amounts to $49 million, of which $21 million is related to the increased stake in Greenpac and its new position in Tencorr. The containerboard packaging plants were acquired for a consideration of $28 million, including an assumed debt of $4 million, which represents a multiple of 6.5 times the adjusted operating income before depreciation of these operations, and excludes anticipated synergies. Sappi buys Cham Paper’s specialty paper business Sappi Ltd., a global producer of dissolving wood pulp, specialty and packaging papers, graphic (printing and writing) paper and biomaterials, plans to acquire the specialty paper business of Cham Paper Group Holding AG (CPG) for roughly US$149 million. The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland, as well as all brands and know-how. The deal is expected to be completed during the first calendar quarter of 2018, and will be funded through internal cash resources. Employing 210 people, the Carmignano Mill is a non-integrated paper mill with two paper machines and produces 100,000 tonnes of paper. The paper grades include C1S FlexPack, C1S Label Papers, Wet Glue and Self-Adhesive applications base paper for metallization. Meanwhile, the Condino Mill is a non integrated paper mill with one paper machine. It employs 120 employees and can produce 60,000 tonnes of paper per year. Paper grades include glassine (silicone base paper) and super calendared, uncoated flexible packaging papers. The Digital Imaging Business operates a finishing plant in a 4,000-squaremetre industrial warehouse where the base paper mills is converted to produce 12,000 tonnes of digital imaging paper. The business employs 50 people. According to Sappi, the main benefits of the acquisition include: • Supporting the company’s diversification strategy and 2020 vision to grow in higher margin growth segments; • Strengthening Sappi Europe’s specialty and packaging papers footprint and skills by adding 160,000 tonnes of specialty paper to its capacity; • Increasing Sappi’s relevance in specialty papers, opening up new customers and markets to existing products and generating economies of scale and synergies; • Gaining greater share-of-wallet with valued brand owners and accelerating new product development; • Improved near-term profitability and serving as a platform for organic growth and further acquisitions. The deal will add €183 million of sales and approximately €20 million of EBITDA; • Building on the investments currently underway to increase specialty paper capacity at Sappi’s Somerset, Maastricht and Alfeld Mills; and • Unlocking the growth potential of the CPG specialty paper business. New $155-million program launched to address climate change Canadian Minister of Natural Resources Jim Carr has announced a $155-million program that will fund clean technology projects in the areas of energy, mining and forestry, which aims to help reduce greenhouse gas emissions and improve environmental outcomes. The federal government says the Clean Growth Program is the “first of its kind to promote and require collaboration with the provinces and territories.” It covers five areas: Reducing greenhouse gas and air emissions from natural resources operations; minimizing landscape disturbances and improving waste management in natural resource operations; the production and use of advanced materials and bioproducts in natural resource operations; efficient energy use and productivity in natural resource operations; and reducing water use and impacts on aquatic ecosystems from natural resource operations. “The Clean Growth Program will provide much needed support to forest product companies working hard to mitigate climate change,” said Derek Nighbor, CEO of FPAC. “We are a sustainable industry committed to doing our part to take care of the environment for generations to come.” Budget 2017 committed $200 million to encourage clean technology in the natural resource sectors. Natural Resources Canada will deliver $155 million of this funding under the Clean Growth Program. “Strategically developing and using clean technologies in our natural resource sectors is one more way we can make Canada stronger and more sustainable, future-proof our economy and create new opportunities for generations to come,” added Carr.
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