Metso and Progen, a Brazilian engineering and consulting company specialized in project management and implementation, have formed a joint venture in order to strengthen strategy and to diversify the activities in Brazil. The parties have founded a new company, Valpro gerenciamento de obras Ltda, to attend exclusively to Metso projects in the South American pulp, paper and energy market, supplying specialized technical services in construction and erection management, commissioning and start-ups. The value of the agreement is not disclosed.

The new company is planned to start its activities during the next 30 days, with its head office located in São Paulo. "We believe in the potential of the pulp, paper and energy market. It will continue to be an interesting segment, especially with the Chinese demand, that has boosted the Brazilian pulp exports", says Eduardo Barella, Progen's CEO.

Progen's expertise in project management and implementation, combined with Metso's know how in the pulp, paper and energy business, are the biggest advantages for Valpro. "This company will add value to the new projects bringing in the best management practices which have proven successful in other markets" explains Eduardo Barella, Progen's CEO. Edmund Schwarz, Projects and Supply Chain director at Metso, comments that "from now on we will have a leading company fully dedicated to site management, performed earlier by subcontractors. We will ally what is best at Metso and Progen and apply it at Valpro".

Progen, the second biggest consulting engineering company in Brazil, leads the mining projects market in Brazil and has increased its investments in the infrastructure sector. In 2011, it acquired 80% of the project and engineering company R. Peotta, specialized in infrastructure projects especially in the port segment, and 50% of the Brazilian operations of AudingIntraesa – an investment that has originated the Progen TAMA, a company that resumed operation in 2012.

Baldwin Technology to Provide Filtration Systems to Norwegian Print Group

Baldwin Technology Company Inc is supplying its spray dampening and filtration systems to help Norwegian print group, Schibsted Trykk AS, to decrease print waste costs and meet stringent water pollution control standards.

Later this year, Baldwin Technology will install 322 Baldwin EvenSpray World2 spray bars to upgrade existing systems on four of Schibsted Trykk’s newspaper web presses and install PureFiltration systems in three of its print production facilities.

Schibsted Trykk has bought Baldwin’s patented PureFiltration closed-loop system to clean dampening solutions at its Kristiansand, Bergen and Stavanger print production facilities. Two existing older-model “simple” systems were not performing satisfactorily and one location didn’t use any type of filtration system.

The PureFiltration’s design is based on cross-flow filtration technology, creating highly effective filtering performance, ultimately improving the overall dampening performance and efficiency of the press. Used dampening solution is fed from the circulator into the PureFiltration system, where sedimentation occurs, the solution is filtered to achieve almost original clean quality and is then returned into the circulator for reuse on the press.

ABB Automation Solution Order from SCA Ortviken Biofuel Plant

ABB has won an order for a System 800xA automation solution from SCA Ortviken for its new biofuel plant for handling and grinding pellets and combustion of wood powder in two biomass boilers, including equipment for cleaning flue gases. The new plant will also be able to deliver district heating to the local utility SundsvallsEnergi. The automation solution from ABB will control and monitor the entire plant, including the safety systems. Existing wood, pulp and energy systems will be utilized and integrated with ABB’s System 800xA automation.

Andritz to Supply FibreFlow Drum Pulper to PT Suparma, Indonesia

Andritz has received an order to supply a new FibreFlow drum pulper to the board and paper producer PT Suparma for the rebuild of its existing waste paper pulping system located in Surabaya, Indonesia. Startup is scheduled for the end of 2013. The drum pulper has a capacity of 350 tonnes/day based on a mix of 80% LOCC (local old corrugated container) and 20% AOCC (American old corrugated container). The scope of supply includes engineering, erection supervision, start-up, training, as well as a spare and wear parts package.

Water Reuse Drives Asia Pulp & Paper Mill

One of the largest wood pulp and paper mills in the world has water conservation at the heart of its operations. Extensive filtration and separation techniques are allowing Asia Pulp & Paper Hainan Jinhai to produce 900,000 tonnes of paper per year in a sustainable environment.

Asia Pulp & Paper (APP) Hainan Jinhai is home to one of the world’s largest single line pulp mills and the largest paper machine in the world. With an annual production capacity of 1 million tonnes of pulp and 900,000 tonnes of fine paper, APP Hainan Jinhai is a paper making facility on an unprecedented scale.

As the location of world’s largest paper machine - the Voith manufactured Hainan PM2 installed in 2010 - Asia Pulp & Paper Hainan Jinhai is also one of the most modern, technically advanced and efficient facilities worldwide. For example, in approximately 30 minutes the Hainan PM2 alone can produce a roll of paper 11 metres in length, 3.5 metres in diameter and weighing in at approximately 90 tonnes. Yet output on this scale would be impossible without the filtration and separation systems that are also part of the process.

The entire APP Hainan Jinhai facility was specifically designed with water conservation as a key requirement. Water is a key component in pulp and paper making and Asia Pulp & Paper has made huge efforts to reduce its consumption and improve waste treatment.

Filtration and separation technologies and technology upgrades have helped the pulp facility to reduce its water consumption per tonne of produced pulp by 36 percent since the facility commenced operations. The most significant reduction in water use has been through the use of a compact press. The facility has also employed a range of other initiatives:

• Sealing water for the mill’s pumps is collected, filtered and reused – generating a daily saving of 3,500m3.

• Water used to ‘backwash’ the cooling tower filters is now reused in the re-cauterising process to produce white liquor – generating a daily saving of 2,300m3.

• Recovery of condensed water from the steam produced by chlorine dioxide plant required for the ECF process – generating a daily saving of 660m3.

• Water condensing on the facility’s pipe racks is collected and reused in the facility’s boilers generating steam for the steam turbines and saving 600m3 daily.

In terms of wastewater, the facility treats it on-site through a three stage intensive procedure comprising chemical, biological and advanced oxidation treatments. The treated water is then reused, discharged or used to supply an on-site pisciculture project. A new paper production wastewater recycling system with the capability of reusing 83 percent of the paper mill’s wastewater is expected to have begun operations in April 2013. To date the facility’s accumulated water savings amount over 110 million tonnes of water.

EXPANSIONS / NEW PROJECTS

Metso Finalized Order Agreement with CMPC Celulose Riograndense for New Pulp Mill

Metso and CMPC Celulose Riograndense S.A. (CMPC) have finalized an agreement according to which Metso will supply the key technology to CMPC's Guaíba II pulp line in Brazil. The total value of the project is around EUR 800-900 million, of which around EUR 400 million consists of Metso's own equipment and systems.

The new pulp line, which is an expansion to the existing Guaíba pulp mill, will have a capacity of 1.3 million tonnes per year and will be able to reach 1.5 million tonnes per year with minor investments. The new pulp line will be built in the state of Rio Grande do Sul in southern Brazil and is scheduled to be commissioned in the first half of 2015.

Metso's delivery will include the main parts of the pulp line: the cooking plant and fiberline, pulp drying and baling, evaporation, a recovery boiler, causticizing and lime kiln, and an integrated automation solution and an operator training simulator for all mill process areas.

The main part of the order is included in Metso's Pulp, Paper and Power orders received in the second quarter of 2013. The automation package is included in Metso Automation's orders received in the second quarter of 2013.

The order will be supplied by Metso's units in Europe and Brazil. The total impact on employment will be approximately 300 man-years in Metso group and during the peak of the construction approximately 4,000 people will be working for Metso in the construction site.

"The confirmation of the agreement concludes an important stage in the construction process of this new pulp mill in Brazil. This is a significant step in the consolidation of a project involving a lot of people and resources. Guaíba II is a project in which many people have worked professionally and tirelessly. Metso's professionalism and commitment to health and safety was a key element for CMPC during the decision process," says Gonzalo García, General Secretary, Empresas CMPC.

"This major order from CMPC is a recognition of Metso's strong capabilities as a full-scope supplier for the pulp industry," says Pasi Laine, President of Metso's Pulp, Paper and Power business. "It highlights our customers' trust in the know-how that we have developed locally to build complete pulp mills."

CMPC Celulose Riograndense is part of the Chilean group, CMPC Celulosa, one of the largest forestry-based companies in Latin America. Its mills in Chile and Brazil produce around 2.8 million tonnes of pulp per year.

Metso's pulp, paper and power professionals specialize in processes, machinery, equipment, services, paper machine clothing and filter fabrics. Our offering and experience cover the entire process life cycle including new production lines, rebuilds and services. As of January 2014, Metso's Pulp, Paper and Power business will serve its customers with an even more focused and competitive approach as an independent, listed company, Valmet Corporation*. *Pending Metso EGM approval. www.metso.com/pulpandpaper, www.metso.com/energy

Stora Enso to Launch Integrated Mill Project in Guangxi, China in Two Phases

Stora Enso has received the requisite project approval for the integrated pulp and board project in Guangxi, southern China, from the Chinese National Development and Reform Commission (NDRC). In order to benefit from the growing consumer demand for hygienic and high quality consumer board more rapidly, Stora Enso will start by building a consumer board machine scheduled to be operational in the beginning of 2016. Construction of the previously announced pulp mill will be started after the board machine has been completed.

“The revised two-phase schedule, starting with the board machine and related industrial investments, will enable us through our customers to access the Chinese consumer market with an accelerated timetable. The revised investment schedule will cut the mid-term three-year capital expenditure requirements by half, as capital will be committed for the pulp mill only when the board machine is already generating cash flow,” says Mats Nordlander, head of Stora Enso’s Renewable Packaging Division.

The capital expenditure for the first phase of the project is estimated to be approximately EUR 760 million, comprising EUR 590 million for industry and EUR 170 million for plantation operations. The current capital expenditure estimate is approximately EUR 90 million in 2013, EUR 300 million in 2014, EUR 300 million in 2015 and EUR 70 million in 2016 or soon after. The project is expected to clearly exceed Stora Enso’s ROCE target of 13%.

“Delaying construction of the pulp mill will also give us an additional three years to build up our fibre base and sustainable plantation operations in harmony with the local communities and with the support of all stakeholders. We will not be acquiring new land for eucalyptus plantations before we have solved the existing challenges concerning land leasing. We will continue our efforts together with the local communities to seek fair distribution of income from our operations.

“The new timetable fully supports Stora Enso’s transformation from a European pulp and paper company into a renewable materials company focusing on growth markets. We are very excited to have a solid plan for finally going forward with the investment, which will produce sustainable and hygienic food packaging solutions for Chinese consumers,” concludes Mats Nordlander.

Stora Enso Invests In World-Class Biorefinery at Sunila Mill in Finland

Stora Enso has decided to invest EUR 32 million in building a world-class biorefinery at Sunila Mill in Finland, which will reduce the CO2 emissions of the mill by replacing up to 90% of natural gas by lignin extracted from the black liquor. This will be the first step towards a new business selling lignin to external customers. It will enable global specialty chemical and high-tech material customers to replace fossil raw materials with renewable alternatives. Stora Enso is developing new applications in which lignin provides added value as a natural polymer.

“The investment in Sunila Mill will accelerate Stora Enso’s transformation into renewable materials company. The first applications will be in, for example, the building, construction and automotive sectors, where lignin offers sustainable alternatives for phenols in plywood glues and other wood-based panels, and polyols used in foams. Other applications are also under development, thus creating a solid platform for growth for sustainable alternatives to fossil-based products,” says Juan Bueno, EVP, Stora Enso Biomaterials Division.

The investment includes a lignin extraction plant and dryer, lignin dust burners in the lime kilns, and a packing line. Production is scheduled to start up during the first quarter of 2015. The investment is expected to generate annual sales of EUR 80 million in 2017 and over time clearly exceed Stora Enso’s ROCE target of 13%. The technology also has the potential for future scalability at other Group pulp mills.

Sunila Mill has an annual capacity of 370 000 tonnes of softwood pulp. The mill employs approximately 230 people.

Double A Enters the Dissolving Pulp Market

Double A has invested USD 6.1 million to upgrade its pulp production line in Thailand using modern technology from Finland. The machine will commence commercial production at the beginning of 2014 with 175,000 tons annual capacity. The first 100,000 tons output will be exported to China.

Double A’s dissolving pulp is sourced from sustainable Paper Tree from KHAN-NA, its proprietary sustainable fiber sourcing program. Paper from KHAN-NA reduces carbon dioxide emissions and improves rice farmer’s income.

Dissolving pulp, a bleached wood pulp with a high cellulose content of more than 90%, is a key material used to manufacture viscose staple fiber (VSF) or rayon. More than 80% of the world’s dissolving pulp is converted to viscose rayon fiber, which is used in dresses, jackets, suits, socks, neckties and other garments.

Asia, specifically China, will continue to be the world’s biggest market for dissolving pulp as a viable substitute for cotton with special applications in rayon fiber for textile industry. This is due to the limited domestic supply of fiber, increased production of garments and the short supply of cotton.

NewPage and Omya to Construct PPC Plant in Escanaba, MI

NewPage and Omya have entered into a long-term supply agreement to build a precipitated calcium carbonate (PCC) plant, located at the NewPage Escanaba, Michigan paper mill site. The plant will create seven new jobs. PCC is an essential raw material used in the papermaking process. It lends to key properties such as bulk, opacity, brightness and whiteness. PCC is manufactured using lime and carbon dioxide (CO2).

The Escanaba mill currently purchases PCC from another supplier. With the PCC plant on site, the mill will save on transportation costs. Lime needed for the PCC manufacturing process will be purchased from the Upper Peninsula.

The environment also benefits from the on-site plant. Currently the CO₂ produced by the mill is emitted into the air and considered waste. The on-site plant will use CO₂ generated by the mill in the process, reducing environmental impact.

Brazil’s Klabin Moving Forward on Three Projects

A new sack kraft machine, in Correia Pinto Plant (SC), is in line with the budget and schedule; the construction works have been completed and the equipment is being installed. The machine, which will have a production capacity of 80,000 tons/yr, is scheduled to start operations in December 2013.

Work started works for installation of the new recycled machine in Goiana Plant (PE). Expected to start up in mid-2014, the machine production capacity will be 110,000 tons/yr, to be used to make corrugated board in the same plant. In addition, as early as in August this year, the expansion works in the industrial sacks and corrugated board plant in Goiana will be inaugurated. Its production capacity will be expanded to 14 million sacks a month and 146,000 tons/yr of corrugated packaging.

The Board of Directors approved the Puma Project, which involves the construction of a new plant in the municipality of Ortigueira (PR) for pulp production with an annual production capacity of 1.5 million tons of pulp from short and long fibers and fluff pulp. The Puma Project will be the largest investment in Klabin’s history and the largest ever undertaken by a private company in Parana.

Södra Planning Expansion at Värö Pulp Mill

Södra has decided to apply for an environmental license to extend production at Södra Cell Värö. The intention is to increase production capacity from the current 425,000 tonnes of pulp per year to 700,000 tonnes.

"Södra Cell is currently a leading player in the field of market paper pulp production, and this is a position that we want to retain and develop. This is why we have decided to apply for an environmental license to expand our pulp mill in Värö," says Lars Idermark, CEO and Group President of Södra.

"We are currently working on reviewing our group strategy, and we expect this work to be complete in early 2014. Expansion of Södra Cell Värö is one of the measures that can reinforce our position and create sustainable profitability. This expansion will result in more efficient production and also pave the way for a long-term, profitable market for our members' wood raw materials," continues Lars Idermark.

"Our pulp mill in Värö offers plenty of potential for expansion. The intention is to increase production capacity from the current 425,000 tonnes of pulp per year to 700,000 tonnes. This expansion will allow us to develop still further the range of high-quality softwood products that we offer to our customers. Our aim going forward remains to be the first choice for our customers. Värö currently supplies high-quality pulp to a number of different customer segments, and this is something that we want to develop and underpin," says Gunilla Saltin, CEO of Södra Cell.

"As well as increasing pulp production, this investment means that the plant can be made even more energy-efficient. Södra Cell Värö is already independent of fossil fuels during normal operation," adds Gunilla Saltin.

A final decision on the investment may be made once the licensing process has advanced far enough for what is known as a commencement permit to be issued.

Green Bay Packaging to Invest $95 million to Expand Coated Products Operations

Green Bay Packaging is undertaking a $95 million expansion of its Coated Products operation located in Ashwaubenon, WI, near Green Bay, to improve quality and allow future growth of their business, according to a state agency statement. The company will build a new 240,000 ft² building, along with new converting equipment for its existing manufacturing operation. The building will include a state of the art storage and retrieval system for inventory and movement of raw materials and finished goods.

The new plant is set to open in first quarter 2015. The coated products business includes laser and ink jet labels, coated papers, films, foils, direct thermal, thermal transfer, laser/ink jet, digital, and specialty products.

The company is eligible for up to $1.976 million in tax credits through the Wisconsin Economic Development Corp. (WEDC) to assist in the expansion. The Village of Ashwaubenon is providing a $1 million TIF incentive and supporting the vacation of a street to allow this development to occur.

Japan Pulp & Paper to Construct New Tissue Mill in Japan

Japan Pulp & Paper, a major domestic trader in the country, is establishing a new tissue mill.

The new facility in Fuji, Shizuoka prefecture, will produce household tissue products using recovered paper furnish requiring more processing than typical.

The mill, which is slated to open in March 2015, will feature specialized equipment for the purpose of removing impurities like metals, plastic film and magnetic strips. It will reportedly be able to produce about 4,700 tonnes of tissue per month. The project represents an investment of about ¥10 billion ($99.6 million).

AzkoNobel to Increase Capacity of Colloidal Silica Production

AkzoNobel’s Pulp and Performance Chemicals business has announced its intention to increase capacity at several of its colloidal silica production sites. The planned expansions - at facilities in Asia and Europe - should be completed in the latter half of 2014.

Colloidal silica is used in a wide variety of everyday products, with the company’s main markets including electronics, paper, construction and coatings. The planned investments are in line with AkzoNobel’s strategy of focusing on global leadership positions in pulp bleaching, paper chemicals, colloidal silica and expandable microspheres.

Nippon Paper to Jointly Establish Power Generation Company in Fuji, Shizuoka

Nippon Paper Industries Co., Ltd. announced recently that it has reached an agreement and signed a joint venture contract with Mitsubishi Corporation (President: Ken Kobayashi) and Chubu Electric Power Co., Inc. (President: Akihisa Mizuno) for the establishment of a power generation company (“the New Company”) that will construct and operate a 100-megawatt-class coal fired power generation unit.

The New Company will set up a power generation unit on the premises of the Company’s Fuji Mill Suzukawa. The Company will be commissioned to operate and maintain the unit, and the New Company will sell electric power to Diamond Power. Its business is scheduled to commence in May 2016.

Profile of the New Company and its power generation business

· Location: 4 Imai, Fuji-shi, Shizuoka Prefecture (The premises of Fuji Mill Suzukawa of Nippon Paper Industries Co., Ltd.)

· Date of Establishment: Mid-September 2013 (planned)

· Business: Operation, maintenance and management of the power generation unit and wholesale supply of electric power

· Capital: Approx. 2.6 billion yen (planned)

· Ownership: Nippon Paper Industries Co., Ltd. 20%, Mitsubishi Corporation 70%, and Chubu Electric Power Co., Inc. 10%

· Power Generation Output: Approx. 100 megawatts at sending end

· Fuel: Coal

· Business Start Date: May 2016 (planned)

ACQUISITIONS

International Paper Sells Division to Georgia-Pacific

Memphis-based International Paper Co. has finalized the sale of its Temple-Inland Building Products division to Georgia-Pacific Building Products LLC for $710 million in cash.

The sale includes a total of 15 manufacturing facilities: five solid wood mills, four particle board plants, one medium-density fiberboard plant, one fiberboard plant and four gypsum wallboard plants. The facilities are located across eight states, primarily in the southeastern and eastern portions of the United States.

International Paper finalized its acquisition of Austin-based Temple-Inland in February 2012.

Switzerland’s Cham Paper Sells its Italian Paper Mills to Austria’s Delfort Group

The Cham Paper Group has sold its Italian paper mills located in Carmignano and Condino to Delfort Group and thereby backs out of the base paper production. Based in Traun, Austria, Delfort Group produces and distributes specialty papers and has around 1,750 employees at five factories in Austria, Hungary, the Czech Republic and Finland. Similarly to the Cham Paper Group, the family-run company has a widely recognized market position in a range of areas within the specialty papers market.

The acquisition is subject to approval by the responsible regulatory authorities. The closing of the transaction is expected to take place in the fourth quarter of this year. The transaction value (enterprise value) amounts to approx. Euro 86 million and includes financial liabilities of approx. Euro 45 million, which are taken over by the acquirer. The net purchase price will be paid in cash. As agreed by both parties, further details of the share purchase agreement will not be disclosed.

The Cham Paper Group activities in Switzerland are not affected by the divestment of the Italian mills. Starting from this year, the industrial activities of the group in Switzerland have been focusing on the finishing (coating technology) of external base paper as well as the development, commercial launch and distribution of high-grade product groups and services.

KapStone to Acquire Longview Fibre

KapStone Paper and Packaging Corporation (KS) and Longview Fibre Paper and Packaging, Inc. jointly announced that they have signed an agreement for KapStone to acquire the stock of Longview Fibre Paper and Packaging, Inc. from Brookfield Capital Partners II, a private equity fund for $1.025 billion in cash and subject to certain post-closing adjustments. Closing of the acquisition is subject to a number of customary conditions, including regulatory review.

Longview is a leading manufacturer of high quality containerboard, lightweight high performance multiwall paper, specialty Kraft papers, and corrugated containers located in the Pacific Northwest region. Longview’s operations include a mill located in Longview, WA equipped with five paper machines which produce 1.15 million tons of containerboard and Kraft paper annually. In 2012, Longview generated $831 million in net sales and $118 million of EBITDA. In the first quarter of 2013, Longview’s net sales were $217 million generating

$42 million of EBITDA.

Kimberly-Clark Sells Its Reisholz Tissue Mill and German Rolled Tissue Brands

Kimberly-Clark has concluded the final handover of its Reisholz tissue manufacturing mill and its German rolled tissue brands, including Hakle® Dry Toilet Tissue, Dick&Durstig and Servus, to palero invest, a small cap Private Equity Fund advised by palero capital GmbH. The sale was announced in November 2012.

Domtar Completes Sale of Ariva Business in the United States

Domtar Corporation (NYSE: UFS) (TSX: UFS) recently announced the closing of sale of its Ariva business in the United States. The purchaser is privately-held Central National-Gottesman Inc., and the business will be integrated into Lindenmeyr Munroe, a division of Central National-Gottesman.

Ariva's Canadian operations are not affected by the transaction and will be consolidated into Domtar's Pulp and Paper Division.

In a subsequent transaction that Domtar is not party to, immediately following the closing of the sale, the purchaser, Central National-Gottesman Inc., has agreed to sell the US Midwest portion of the Ariva business to The Millcraft Paper Company, a family-run paper merchant based in Cleveland, Ohio.

Ariva has approximately 400 employees in the United States. Headquartered in Covington, Kentucky, Ariva operates from 15 locations in the United States across eight states in the Northeast and Midwest regions.

Wood Resources LLC to Sell Southeast Operations to Boise Cascade

Wood Resources LLC today announced that it has entered into an agreement to sell its Southeast operations, which include Chester Wood Products and Moncure Plywood, to Boise Cascade Company (NYSE: BCC), a leading wood products manufacturer and building materials distributor in North America. The sale is expected to be completed in the third quarter.

Chester Wood Products, based in Chester, South Carolina, produces softwood plywood panels and veneer for a variety of end markets. Moncure Plywood, based in Moncure, North Carolina, is a flexible specialty plywood mill that produces both hardwood and softwood panels.

Moving forward, Wood Resources will continue to operate Olympic Panel Products in Shelton,

Washington, and the newly restarted Omak Wood Products in Omak, Washington, which produces softwood veneer for Northwest markets, as well as Douglas fir plywood for specialty and commodity applications.

Moelis & Company served as exclusive financial advisor to Wood Resources LLC.

McIlvaine Company

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