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The following is a collection of the top industry headlines found within FisherSolve News from the last several days.
Sappi Limited announced that the intended sale to Aurelius Group of its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany and its Kirkniemi Mill in Finland (the “Transaction”) has not materialized within the agreed timeframe of the contractual agreement and therefore the agreement has lapsed.
Steve Binnie, CEO of Sappi Limited commented: “Regretfully, and despite extensive efforts by Sappi to close the transaction the parties could not agree on fulfilling the suspensive conditions. Therefore, the transaction has lapsed. Sappi’s strategic focus remains unchanged. This includes reducing exposure to the graphic paper segment while expanding Sappi’s presence in segments including packaging and specialty papers, pulp and biomaterials.”
The reduced demand for kraft and duplex paper is leading to the closure of some mills in Gujarat state, India. The Morbi Paper Mills Association has decided to increase the price of finished paper by INR 2 per kg to boost market sentiment. In the meanwhile, collection of waste paper is expected to reduce till the end of June 2023 — which may create demand in the market, according to Naresh Singhal, President of the Indian Recovered Paper Traders Association (IRPTA). Currently, the waste paper prices in the local market are down by INR 5 to INR 8 per kg.
Metsä Board estimated in its financial statements bulletin 2022, published on 9 February 2023, that the company's comparable operating result for January-March 2023 would be roughly EUR 100.8 million. Metsä Board's comparable operating result for January–March 2023 is now estimated to be approximately EUR 89 million.
The lower-than-estimated operating result was particularly affected by the weakened demand situation for market pulp in both Europe and China. In Europe, demand for market pulp was reduced by prolonged production shutdowns by paper and paperboard producers as the value chain continued to adjust inventories. In China, the economic recovery has been weaker than expected.
Yash Pakka Limited, a provider in the compostable packaging industry, has kickstarted the development of its first overseas plant in the Central American country Guatemala. The new plant is expected to be the world’s largest compostable flexible packaging and molded fiber facility. As the first big step in this project, Pakka has signed MoUs with the country’s major sugar companies to procure sugarcane residue, also known as bagasse, which is the primary raw material used by the company for its products.
Georgia-Pacific is investing US$50 million for upgrades at its Port Husdon mill in Louisiana. The upgrades will allow Georgia-Pacific to expand its paper towel offerings, especially Brawny Mega and Tear-A-Square, and improve the capability of existing converting equipment at the site. Work on the upgrades commenced at the site and is expected to come into operation in the middle of 2023.
Envelope and shipping bag paper companies are struggling to overcome the sluggish pace of growth currently witnessed in the German market in the first quarter of 2023. Demand for envelopes and shipping bag papers was still subdued. Both paper manufacturers and envelope producers took downtime over the Easter holidays. As a result, additional machine stoppages are anticipated to help support the market, reported Euwid.
Natixis Advisors increased their stake in Weyerhaeuser stock by 49.9% during the fourth quarter of 2022, according to its most recent filing with the Securities and Exchange Commission. The fund owned 184,512 shares of the real estate investment trust’s stock after purchasing an additional 61,381 shares during the quarter.
Several other large investors have also recently modified their holdings of the stock.
Körber Business Area Tissue has developed Kit Bio Pack plus, an add-on system for the unwinding section of the wrapper. This solution is intended to replace polyethylene packaging material with kraft paper, bypassing the need for pre-coated paper with heat-sealing glue, and is offered as a 'green' option.
"This unprecedented patented solution, which can be installed on all wrappers with existing Bio Pack Kit, represents both a technical upgrade for old-generation equipment and an option for new machines, promoting high quality and speed, reduced packaging costs and higher sales margins on the final product," said Nicolò Squarzoni, Product Manager – Packaging & Digital Körber Business Area Tissue.