PRNewswire reports, AbitibiBowater announced that it will permanently close its paper machine at its Coosa Pines, Alabama operation and cease its pilot project to manufacture recycled lightweight and ultra lightweight packaging and linerboard grades within the next 30 days. AbitibiBowater remains committed to its fluff pulp assets at the facility.

"Coosa Pines has made progress in the production of recycled lightweight and ultra lightweight packaging and linerboard. Upon review, however, the substantial capital investment that would be required at the site to make it low-cost in these grades could not be justified," stated Richard Garneau, President and Chief Executive Officer.

The Company estimates it will incur cash closure costs of approximately $4 million related to severance and other closure charges as a result of the permanent closure of the paper machine at the Coosa Pines mill. The majority of these closure costs will be paid during the first half of 2011. A non-cash asset charge of approximately $10 million will be taken to reflect this permanent closure. Approximately 150 employees are affected by this closure.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea.

Sappi Fine Paper North America's Somerset Mill is Awarded Efficiency Maine Grant

Sappi Fine Paper North America has been awarded an Efficiency Maine grant of approximately $300,000 for a capital project to improve the energy efficiency of 10 pumping systems on Paper Machine Number 3 (PM3) at its Somerset Mill in Skowhegan, Maine.

Efficiency Maine is a statewide effort to promote energy efficiency and savings while reducing pollution created by the generation of electricity. The Efficiency Maine Trust administers funds for its programs from the Maine Public Utilities Commission and the Energy and Carbon Savings Trust or Regional Greenhouse Gas Initiative.

Through the Efficiency Maine Grant, Sappi Fine Paper North America will replace PM3's fixed speed pumps with variable speed drives, which allow the pumping systems to better match energy consumption with process needs. Installation of the new pumps is already underway and further work will be conducted during the course of the year by utilizing scheduled routine maintenance shutdowns.

"The paper industry is a very capital intensive industry, where continuous improvement is critical to a company's ability to operate sustainably. Sappi Fine Paper North America was pleased to be selected as one of the recipients of this competitive Efficiency Maine grant, as it covered half the total costs of this $600,000 capital project," said John Donahue, vice president of manufacturing, Sappi Fine Paper North America. "The project is one of many initiatives through which we are working to reduce our company's carbon footprint," he added.

Sappi's Somerset Mill has a strong track record of successfully reducing its reliance on fossil fuels. In 2010, 87% of the mill's total energy was derived from renewable resources resulting in a carbon footprint that is significantly lower than the industry average.

Based on the engineering review conducted for this grant, the Somerset Mill's new pumping systems are expected to reduce electrical energy consumption by over 3.2 million kilowatt hours (kwhr) annually, which is comparable to the yearly electrical usage of about 300 homes consuming 1000 kwhr per month.

Canadian Federal Government Invests $88 Million in Mill Upgrades

The Government of Canada announced on March 14 a series of investments in the forest products sector totalling $88 million, under the Pulp and Paper Green Transformation Program and Transformative Technologies Pilot Scale Demonstration Program.

The AV Group will receive $24 million from the two programs, some of which will be used for a biogas plant at Atholville.

"This funding allows us to invest in projects right away, which will decrease our use of energy, reduce our emissions and support jobs at both of our facilities," said Shankar Ray, president and CEO of AV Group. "We are also very happy to be working with the federal government and FPInnovations to establish a state-of-the-art biogas plant at our Atholville facility."

PPGTP funding for the Nackawic facility will be used to purchase equipment to increase energy efficiency.

Canfor Pulp's Northwood Pulp mill is installing a process control system, with the assistance of federal and provincial funding. The company will receive $2.5 million under the Transformative Technologies Program.

Other funding for the project includes a $2.1-million contribution from the B.C. Ministry of Forests, Mines and Lands, bringing the total funding to $4.6 million. In addition, Canfor Pulp will invest an additional $4.4 million in cash and in-kind contributions.

"This project will build on Canfor Pulp's leadership in the northern bleached softwood kraft market through the installation of 'real-time' testing systems for our woodchips, pulping process and final pulp products," said Robert Dufresne, general manager, Northwood Pulp mill. "This will allow Canfor Pulp to optimize the value chain and ensure that the raw materials and finished pulp products are matched to the customer's end use."

Cascades' Norampac-Cabano mill will receive $3 million under the PPGTP. The funding will be used to reduce its greenhouse gas emissions and the particulate matter emissions from its two biomass boilers.

For the East Angus mill, Cascades will receive $3.1 million under the PPGTP. This funding will allow Cascades to build a modern pulp recycling facility, substantially improving the environmental performance of the mill.

"The East Angus mill is one of the oldest in Canada, and the federal government's support provides real help for upgrading the equipment, but most of all for maintaining quality jobs locally," said Mario Plourde, chief operating officer of Cascades.

Nanaimo Forest Products' Harmac Pacific Mill will receive $9 million under the PPGTP for three capital improvement projects.

In Témiscaming, Que., Tembec will receive $975,000 from the PPGTP to improve the environmental performance of the mill.

Smurfit-Stone Corporation's mill in La Tuque, Quebec, will receive $24 million under the PPGTP.

Tolko Industries Ltd. will receive $1.3 million under the Transformative Technologies Pilot Scale Demonstration Program and a $300,000 contribution from the Government of Saskatchewan. The company has also invested approximately $1.6 million in the project through cash and in-kind contributions.

Canfor Installs New Energy System at its Plateau Mill in Canada

Canfor will be installing an new energy system at its Plateau mill near Vanderhoof, British Columbia (B.C.), Canada. Canfor plans to replace the mill’s beehive burner with a new bark burner. This burner will now allow the mill to use 100% of each harvested log, as ForestTalk reported.

15 temporary jobs will be added at the mill during the conversion of the burner system. The new bark burner is expected to be in operation by December 2011.

Canfor has set aside an allotted $62 million for three projects in B.C. as part of the capital improvement projects. $24 million will be spend upgrading and restarting the Vavenby operation, and the rest will be spent at Polar and Plateau.

Fibrek Mill in Saint-Félicien, Quebec Receives $6.1 Million

Fibrek‘s mill in Saint-Félicien, Quebec, Canada, will be receiving $6.1 million from the Federal Government under the Pulp and Paper Green Transformation Program, ForestTalk reported.

This funding will allow Fibrek to install five electrical motors that will increase its green energy production capacity by approximately six megawatts. It is expected that this project will also help save enough energy to power over 1,700 homes.

“This timely help from the federal government is an incentive toward the completion of a very important project for Fibrek’s cogeneration facilities in Saint-Félicien,” said Pierre Gabriel Côté, President and CEO of Fibrek. “This project will allow us, not only to increase our leadership in the production of green energy, but also to improve our mill’s competitiveness.”

Fibrek is one of 24 pulp and paper companies across Canada that qualified for credits under the Pulp and Paper Green Transformation Program. Fibrek has generated a total of $20.9 million in credits.

Tolko Might Combine Log Yards to Re-Open Creekside Mill in Canada

The United Steelworkers Union and Tolko have reached an agreement on a “letter of understanding” to allow Tolko to improve their competitiveness by eliminating several positions in the company’s log yard. The goal is for Tolko to be able to secure contracts with timber importers in Asia, allowing the company to re-start its Creekside mill in Williams Lake, British Columbia, as ForestTalk reported.

The strategy would see Tolko combining several log yards. This move would result in 7 job cuts, at a savings of $1.2 million to the company.

The potential restart date for the Creekside mill has not been officially determined, although USW Local 1-425 president Bill Derbyshire suggested late May or early June. Because parts of the mill has been idled for some time, extra time may be required because the mill is operational.

Pöyry Awarded Contracts for a New Pulp Mill Project in Uruguay

Pöyry's Industry business group has been awarded services contracts by Montes del Plata for the integration of a greenfield pulp mill in Punta Pereira, Uruguay. Montes del Plata is an equal share joint venture company between Arauco and Stora Enso. The parties have agreed that the value of the assignment is not disclosed.

The capacity of the new state-of-the-art pulp mill is 1.3 million tonnes per annum and the start up of the mill is planned for the first half of 2013.

Pöyry has been chosen as the supplier of the overall project management, the Engineering, Procurement and Construction Management (EPCM) services for the Balance of Plant (BOP), and the Owners' Engineering services during the project implementation. The engineering and project management services will start immediately.

The contract further strengthens Pöyry's global leadership position in the pulp and paper sector for consulting engineering services.

ASIA

China Shengda Packaging Group Announces Plan to Build Paper Manufacturing Plant

PRNewswire reports China Shengda Packaging Group Inc., a leading Chinese paper packaging manufacturer, announced the company has signed a Letter of Intent to purchase the land use rights for a 166,533 square meter plot of land in Yancheng City, Jiangsu Province, China for $11.4 million to build a paper manufacturing plant.

China Shengda Packaging plans to build the new plant in two phases. Phase I, which is expected to be completed by the end of 2011, will entail the construction of 100,000 to 150,000 tons per annum of paper capacity and is expected to require capital expenditures of $34.2 million, including the cost of acquiring the land use rights. Phase II, which is expected to be completed by the end of 2012, will entail the construction of 100,000 to 150,000 tons per annum of paper capacity and is expected to require $18.2 million.

The Company plans to fund the purchase of the land use rights and construction of the new plant through the proceeds received from its recently closed equity financing and internal cash generation.

Honeywell to Provide Integrated Controls for Major Pulp Facility in China

Honeywell will supply the integrated control system for ZhanJiang Chenming Pulp and Paper Company’s new 700,000 ton-per-year pulp facility in China’s Guangdong Province. The integrated solution – which includes an array of Honeywell’s highest-profile technologies for the process industries – is expected to help Chenming increase its production while promoting the delivery of high-quality paper products.

Honeywell will provide its Experion Process Knowledge System (PKS), Da Vinci Quality Control System (QCS) and OptiVISION manufacturing execution system (MES) as part of the agreement. Additionally, Honeywell has agreed to provide its Safety Managersolution to manage safety subsystems at the site’s power generation and chemical facilities.

The ZhanJiang Chenming Pulp and Paper Co. is part of Shandong Chenming Paper Holdings Ltd. and specializes in a variety of paper products such as light-weight coated paper, duplex press paper, writing paper, news press paper and paperboard.

The new facility is expected to be commissioned in the first half of 2011

“Fast and efficient production is important for today’s pulp and paper mills, but even more critical is the ability to maintain excellent product quality,” said Li Wei, assistant general manager of ZhanJiang Chenming Pulp and Paper Co. and the Zhenjiang project manager. “Honeywell’s offerings are best suited for these challenges because its measurement and control solutions are proven to improve quality and productivity while reducing energy costs and waste.”

The integrated system’s advanced process control capabilities, for example, will help Chenming reduce additive costs and the amount of rework required for coatings and colors. Additionally, OptiVision will simplify order scheduling and overall workflow management.

The Da Vinci QCS system also enables online coating measurements, one of Chenming’s key requirements for this project. The system provides the industry's most comprehensive suite of online sensors combined with fast scanner and data processing speeds to deliver precise, high-resolution measurements.

“In the face of increasing worldwide demand for pulp, we’re continuing to see more of our customers in the pulp and paper industries turn to integrated systems to increase output while maintaining quality,” said Jon Lippin, vice president and general manager, Honeywell Process Solutions Asia Pacific. “Chenming’s new ZhanJiang facility is the latest example of this trend and illustrates how tight integration can reap a range of benefits from energy savings to more-precise coatings measurement.”

Mitsubishi Paper Mills Gives Update on Three Mills in Japan

Mitsubishi Paper Mills Ltd (MPM) provided an update on three of its mills in Japan that were affected by the earthquake and the ensuing tsunami, as PaperAge reported.

At MPM's Hachinohe mill (Hachinohe city, Aomori prefecture), operations have stopped. The tsunami flooded the ground floor of the plant and the electrical system was severely damaged. However, damage to the buildings and paper machines was minor, MPM said.

MPM said that from the end of April it will start up Hachinohe's power plants one-by-one (recovery of utility generation facility). From mid-May, there will be a one-by-one startup of the mill's 7 paper machines and 3 coaters.

MPM also noted that in consideration of the nationwide power shortage, it is talking to local authorities, Aomori prefecture, Tohoku Electric Power, to supply some power to the electric company from the Hachinohe mill's power plant as soon as the plant resumes operation.

MPM's Kitakami Division (Kitakami HiTech Paper Co., Kitakami City, Iwate Prefecture) incurred relatively minor damage, and operations of hygienic paper production facilities were restarted on March 21.

“Despite some concern about the shortage of certain raw materials, from the beginning of April on, the pulp plant, the paper machine and the resin coaters are planned to resume stepwise,” MPM said in a written statement.

The company's Shirakawa plant (Nishigou, Nishishirakawa County, Fukushima Prefecture) incurred minimal damage and the stock finishing process was back in operation on March 18.

As of March 23, the mill is back in operation including its two paper machines, although it may take more time to bring the machines to full capacity production due to the shortage of the heavy oil supply, MPM said.

Andritz to Supply Major Equipment and Technologies for Two Asian Pulp Mills

International technology Group Andritz has been awarded orders for the supply of fiberlines and chemical recovery systems for renowned customers in India and Laos:

Muang Phin mill, Laos

Andritz Pulp & Paper received an order from Sun Paper Holding Lao Co. Ltd. to deliver major equipment for a new kraft pulp mill with a production capacity of 300,000 t/a in Muang Phin, Laos. The scope of supply includes equipment for chip and bark handling, a complete fiberline (continuous cooking, washing, oxygen delignification, screening, and bleaching), the pulp drying line (wet end, dryer, cutter/layboy, and baling line), and the white liquor plant including kiln and recausticizing equipment. The kiln will be equipped with LimeFlash™ technology. Start-up is scheduled for late 2012.

Sun Paper Holding Lao is member of the Sun Paper Group, China’s largest privately owned and managed paper business, and the largest producer of premium coated packaging board in China.

Rayagada mill, India

Andritz Pulp & Paper together with Enmas Andritz Pvt Ltd, a joint venture of Andritz and Enmas Engineering, will supply a fiberline and recovery island for the pulp mill (design capacity: 635 bdt/d) of JK Paper Ltd. in Rayagada, Orissa. The delivery encompasses the latest technology in woodyard equipment, a complete continuous cooking line and fiberline with an ECF bleaching plant, recovery boiler and evaporation plant, as well as the white liquor plant (kiln, recausticizing, including dregs washing/dewatering). Start-up is scheduled in October 2012.

This delivery will be the largest mill-wide scope of equipment from Andritz in India. JK Paper is India’s largest manufacturer of branded and premium multi-purpose cut sized office paper, and one of the most reputed manufacturers of premium packaging board, and coated paper.

The Andritz Group is a globally leading supplier of plants and services for the hydropower, pulp and paper, metals, and other specialized industries (solid/liquid separation, feed and biofuel). Andritz Pulp & Paper is one of the leading global suppliers of turnkey systems and services for the production of all types of pulp, paper, tissue paper, board, fiber-board (MDF), nonwovens, as well as of biomass boilers and gasifiers for energy production and of systems for the production of plastic films.

AUSTRALIA

Gunns Receives Approval for Bell Bay Pulp Mill in Australia

Gunns Limited announced the Federal Government had granted the final environmental approvals for the proposed Bell Bay pulp mill. The fully plantation timber-based mill now has all approvals necessary for construction and operation.

Gunns Managing Director Greg L’Estrange said the successful approvals were a critical step in finalising finance for the mill to begin construction. “It is confirmation that the mill’s design and operation must meet stringent environmental standards,” he said.

“Gunns has heard community concerns around the mill project since its original approval in 2007, and has attempted to address these concerns. Fundamental to this has been the adoption of a 100% plantation strategy and the adoption of the latest bleaching technology, the ECF Light process, which has allowed a significant reduction in chlorine dioxide usage.

We will continue to work with the community on transparency, operational improvements and a comprehensive monitoring program that can provide greater and continuing confidence to the community on a balanced outcome of environmental, economic and social outcomes.”

“The Government’s comprehensive approval process brings certainty for our proposed investors and we would hope allay many of the community’s concerns about potential environmental impacts on the marine environment.

These latest approvals confirm that the release of biologically treated effluent into Bass Strait, in accordance with a sound environmental management regime, presents an acceptably low risk to the environment.”

Gunns is continuing a due diligence process with potential equity investors in the mill.

EUROPE

Ilim Group to Install New Paper Machine at Koryazhma Branch in Russia

Ilim Group obtained permission to install new paper machine at Koryazhma branch in Arkhangelsk oblast, Russia. This permission was given by Koryazhma administration and marks a new important stage of the company's investment project - actually constructing the mill to accommodate paper machine, building of additional units, as the company said in a press release received by Lesprom Network.

Not long ago Ilim Group also obtained consent from the Main State Expert Review Board to install new paper machine at Koryazhma branch of Ilim Group (Arkhangelsk oblast). The MSERB consent means that all process, technical and environmental solutions that are going to be used to implement the project fully comply with the Russian law.

The project envisions the installation of paper machine, cut-size sheeting system and precipitated carbonate plant, and construction of a number of other infrastructure-related projects. Annual capacity of the new paper machine will amount to 200,000 tons of product. The project approved by Ilim Group’s Board of Directors in June 2010 provides Koryazhma mill to become a producer of totally new product for the company - high quality office paper and also folio sheets and roll paper made to order.

Concurrently, a 70,000 tons per year off-machine paper coater and sheeting system is being implemented, such that Ilim at Koryashma will be the first and only producer in Russia of high quality coated commercial printing papers.

Toscotec to Supply New Tissue Line for Syassky Pulp & Paper Mill in Russia

Syassky Pulp and Paper Mill, based in St. Petersburg, Russia has recently signed an agreement with the Italian manufacturer Toscotec for the supply of a new tissue line to be installed in the company's mill in Syasstroy. The new machine will replace the existing PM2, as Toscotec said in a press release received by Lesprom Network.

The new Toscotec AHEAD 1.5M crescent former machine consists in a single layer headbox, single press configuration TT SPR 1050, a 3660 mm diameter Steel Yankee Dryer TT SYD 12FT and a renewed reel TT REEL-P.

The scope of supply includes also upgrading of the existing stock preparation plant, approach flow system, gas heated hood, steam & condensate system as well as electrification & control system. Engineering and services (erection supervision, commissioning & start up assistance and training) complete the Toscotec package. Machine speed will be up to 1400 mpm with a trim width of 4200 mm, for a daily production of 125 tons.

Thanks to its Crescent Former configuration and to the high level of technology the machine will be extremely flexible, compact and capable of producing high quality tissue from virgin pulp (dry & slush) with a reduced energy consumption.

The PM2 start up is scheduled for the end of this year.

Syassky Pulp and Paper Mill is one of the most modern enterprises of the north west Russian region and the only tissue producer in this area to have an integrated production having in line pulp mill, tissue production (PM2 PM3 and PM5) and converting as well as packaging facilities. The Company has been reorganized as joint stock company with the result to be able to satisfy the growing demand for domestic but also for AFH export markets.

Toscotec is a leading company in the design, manufacturing and delivery of complete plants and equipment for the production of tissue, paper and board.

Stora Enso to Close its Kopparfors Sawmill and Pellet Mill in Sweden

Stora Enso is planning to permanently close down Kopparfors sawmill in Sweden by the end of 2011 due to several years of losses and no feasible options for improvement. The plan also includes closing down the pellet mill, as the company said in a press release.

“Despite several years of focused efforts to turn around the losses of Kopparfors sawmill, we have been unable to achieve the improvements needed in efficiency and profitability. The slowness of the recovery in markets combined with poor operational efficiency, high raw material costs, unfavourable exchange rates and lack of cost flexibility have kept Kopparfors loss-making. In our analysis, even in the most optimistic scenario, we can see potential for only marginal improvement,” says Hannu Kasurinen, EVP, Stora Enso Wood Products.

“We are investigating alternatives for supplying our key customers and plan to utilise some of the sawmill and pellet mill machinery at other Stora Enso locations. The planned mill closure would not affect wood purchasing in Sweden.”

The Group will record a one-time non-cash fixed asset and working capital write-down of approximately Euro 20 million and in addition a restructuring provision with a cash impact of approximately Euro 9 million as non-recurring items in its 1Q 2011 operating profit. Based on 2010 annual figures the closure would reduce Stora Enso's annual sales by approximately Euro 65 million but have no material impact on the Group's annual operating profit. The planned closure will have a positive tax impact of approximately Euro 8 million in the 1Q 2011.

Kopparfors sawmill has an annual production capacity of 310,000 cubic metres of sawnwood, of which 150,000 cubic metres can be further processed by planing. The pelet mill has an annual capacity of 160,000 tonnes. Kopparfors has 110 employees.

Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products.

Torraspapel Increases Its Metallized Paper Production Capacity at Its Leitza Mill

In the first quarter of 2012, a new metallizer will be started up that will increase production capacity by approximately 70%.

Torraspapel, part of the Lecta Group, has announced the installation of a new high-vacuum metallizer in its Leitza mill (Spain), scheduled to be operational at the beginning of 2012.

The goal is to meet the needs of an expanding market, particularly the labels and packaging sector, and to be a segment leader in the metallization of paper.

This new investment strengthens Torraspapel’s and the Lecta Group’s commitment to diversifying its product range, increasing the production of high added value products, and extending its leadership to different market segments.

Torraspapel, a manufacturer of pulp, coated and uncoated paper, base paper and specialty papers such as metallized, carbonless, thermal, cast-coated and self-adhesive papers, has a total production capacity of more than 1.1 million tons. The company has invested heavily in its seven Spanish manufacturing sites, all of which have been equipped to specialize in specific product lines, with a high level of integration and technological know-how, resulting in better product knowledge, higher quality and excellent environmental positioning.

McIlvaine Company

Northfield, IL 60093-2743

Tel: 847-784-0012 Fax: 847-784-0061

E-mail: editor@mcilvainecompany.com

Web site: www.mcilvainecompany.com