Valmet will supply Stora Enso with a chemi-mechanical pulp (BCTMP) and a board production line for their new mill site in Beihai, Guangxi Province in China. The board machine will produce high-quality liquid packaging board and folding box board grades. The production lines are planned to be operational in early 2016. The value of the order is around EUR 115 million.

"We are glad that Stora Enso trusted us in this project and that we were able to provide solutions for both pulp and board production. Liquid packaging board is process-wise one of the most demanding board grades to produce and it is a growing market," says Jari Vähäpesola, Paper Business Line President, Valmet. Valmet's technology will enable the production of high quality liquid packaging board from eucalyptus.

One of the end products of the new mill will be liquid packaging board. Liquid packaging board is used for protecting and preserving its contents. High level printing properties make paperboard cartons ideal for carriers and brand builders. The Valmet-supplied BCTMP line will be built for a production of 650 tons per day of high quality pulp for liquid packaging board and folding box board. Valmet's board machine delivery will include a multi-fourdinier forming section with hybrid forming unit, press, drying and coating sections, a surface sizing unit, a calender, a reel, two winders and a wide mill engineering package. The delivery will also include related air systems, chemical systems as well as stock preparation and auxiliary systems. The annual production capacity will be approximately 450,000 tons of board.

Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. Stora Enso employs some 29 000 people worldwide, and our sales in 2013 amounted to EUR 10.6 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries with 11,000 professionals around the world. Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production. The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.

Andritz to Upgrade Paper Machines in Saudi Arabia

Andritz has received an order from Middle East Paper Co. (MEPCO), Kingdom of Saudi Arabia, to upgrade three paper machines. MEPCO is one of the leading packaging grades producers in the Middle East and North Africa and targets to increase production and improve paper quality with this order. The start-ups are scheduled for 2014 (PM1 and PM3) and 2015 (PM2).

Andritz 's scope of supply comprises:

· PM1: - New approach system - Rebuild of the wet section with a PrimeFlow SW headbox including flexible lamella technology and dilution profiling system; rebuild of the dewatering table

· PM2: - New approach screens and rebuild of the wet section as at PM1 - Rebuild of the wire section to consist of two Fourdriniers and a PrimeForm HB hybrid former for higher drainage capacity and improved formation - Rebuild of the film press and the drying section: relocation of 10 dryers from the existing after-drying section to the pre-drying section; the PrimeCoat film press is designed for operation both as film press and size press, combining the advantages of both systems and opening up a broad manufacturing range - New air-driven air turn system (PrimeAir Glide) that changes the direction of a continuous web without any direct contact

· PM3: - Rebuild of the approach system and of the wet section, including dilution profiling system - Rebuild of the press section with a higher nip load for more efficient dewatering - The drying section is equipped with PrimeRun web stabilizers to enable a stable sheet run Andritz will also install TwinFlo refiners in the OCC lines in order to improve the fiber properties. The OCC pulping plant will be upgraded by installing a modified FibreFlow drum pulper with a capacity of 1,400 tons per day in order to enhance the fiber quality and to reduce operating costs.

Metso to Supply 'Next Generation' Pulp Laboratory

Zellstoff Celgar, a major supplier of market kraft pulp, located in Castlegar, British Columbia, Canada, has placed an order with Metso for a next-generation automatic pulp laboratory. With the new equipment, the mill will be able to improve its pulp testing capabilities to better meet its customer quality needs. The automatic pulp laboratory will be installed in July 2014.

"We were convinced by Metso's proven technology and ability to support us locally with their North American service teams," says Scott Spencer, Manager, Strategic Development, Zellstoff Celgar.

Metso will supply a Pulp Expert automatic pulp laboratory with consistency, freeness, tensile, dirt, brightness and High-Definition fiber and shive measurements as well as a proprietary Quality Assurance Tracking program to maximize the use of the measurements.

Metso has the world's widest scope of automation solutions and services for the pulp and paper industry - from single measurements to mill-wide turnkey automation projects. It is the market leader in quality control systems as well as in control and on-off valves for this industry sector. The company also holds a market-leading position in pulp performance optimization with its advanced Kappa analyzers and inline sensors.

Zellstoff Celgar, part of Mercer International Group, is one of the largest and most modern single line kraft pulp mills in North America. It produces approximately 520,000 ADMTs annually. The mill is well-situated with respect to fiber supply and the growing Asian and North American markets. Celgar is a modern, efficient ISO 9001 certified NBSK pulp mill.

Ahlstrom Opens Technology Center in Shanghai

Ahlstrom has opened a new Product & Technology Development Center in Shanghai, Minhang District, in eastern China. Ahlstrom's new Product & Technology Development Center in Shanghai will improve the company's direct support to its customers in China with local product development. Located in the Caohejing Pujiang Hi Tech Park in Shanghai, the center is conveniently positioned near its customers in China.

"The new Shanghai product development center supports Ahlstrom's growth strategy and strengthens our presence and local market understanding. We are pleased to start long-term development work in Asia and hereby reinforce our offering for a clean and healthy environment to help our customers to stay ahead," says Jan Lång, Ahlstrom's President & CEO.

"The development work in the new center will build on our strong know-how on material science, fibers and chemistry. To more quickly address the local market needs, it is crucial to develop new products and technology close to our customers here in China," says Paul Stenson, executive vice president, Technology and Strategy Development.

The new center in China employs approximately 30 people and will serve all five of our Business Areas in China: Advanced Filtration, Building and Energy, Food, Medical, and Transportation Filtration. In addition to Shanghai, Ahlstrom has four manufacturing plants and 13 sales offices in Asia, providing services throughout the region.

Ashland Water Technologies Receives Breakthrough Technology of the Year Award

Ashland Water Technologies recently received the PPI 2013 Breakthrough Technology of the Year award for its Biobond Improving the Sustainability of Paper program. This innovative program allows for the recovery and reuse of starch in waste paper that improves sustainability and productivity for manufacturers of recycled paperboard. Less than three years after launch, the Biobond program is the go-to choice for a growing number of paperboard companies around the world.

The Biobond program increases yield, improves strength and eliminates the operational issues caused by degraded starch at the source. In addition to starch recovery, Biobond reduces freshwater/starch consumption and chemical oxygen demand (COD) levels in the effluent discharge, resulting in the elimination of thousands of tons of CO2 emissions. See ashland.com/biobond for more information.

EXPANSIONS/ REBUILDS

Smurfit Kappa to Invest Euro 27 Million in PM 1 Transformation

Smurfit Kappa will invest EUR 27 million on its Sangüesa site (Northern Spain) to transform its PM1 machine producing today 65 kT of virgin fibre based containerboard (Karpan liner), into PM4, a 30 kT virgin brown machine glazed paper. The investment is driven by sustained growth on high performance, specialised MG markets, where Smurfit Kappa has developed unrivalled expertise and reputation. After completion of the investment the mill will have the ability to offer to its worldwide customers an even wider span of grades and grammages with applications starting as low as 28 grams per square meter, including highly specialised ultra-lightweight food contact containerboard.

The rebuild will last 12 weeks. The project is expected to start up during the course of 2016, and will allow to consolidate the Sangüesa mill as one of the very few worldwide fully MG focused unit with close to 90 kT of production in total.

This transformation will conversely withdraw from the market 65 kT of virgin fibre based containerboard, with PM1 discontinuing its production. Continuity of supply will be guaranteed from our mill system, and predominantly from our Facture kraftliner mill (France) due to geographical proximity to the Iberian peninsula, at present the main market for this grade.

Andritz to Rebuild Leipa Georg Leinfelder's Screening System

International technology Group Andritz has received an order from Leipa Georg Leinfelder to supply components for rebuild of the screening system in the DIP1 deinking plant at its Schwedt mill, Germany. The rebuild, scheduled for completion in October 2014, is intended to achieve significant energy savings and also to further reduce losses in the screening plant.

The order comprises the complete rebuild of the coarse screening plant, including a new tail screen and delivery of a new first stage for slot screening. A particular challenge in this rebuild project is the short shutdown time of only 72 hours available for switching over to the new components and restarting the plant. The pulp produced by Leipa Georg Leinfelder will be used to make the top layer for white coated liner and for magazine paper grades.

Sodra Investing $610M in Varo Mill to Increase Capacity; Valmet Major Contractor

Sodra is focusing on both capacity expansion and quality optimization with its SEK 4 billion ($610 million) investment at Värö to create one of the world’s largest softwood sulphate pulp mills. Output will be increased from 425,000 tonnes/yr to more than 700,000 tonnes/yr of premium-quality softwood pulp destined for both Södra’s existing customers and as a base to underpin further expansion of sales in Asia. Startup is scheduled for the third quarter of 2016.

When the new investment is completed at Värö, it will be a flagship mill in terms of environmental technology and output. Värö sawmill is on the same site and has also been the subject of huge investment. A third of its logs will end up as chips to feed the pulp mill, energy from the pulp mill will feed the sawmill, we already generate district heating and electricity at the mills as well as a range of by-products. The company is among Sweden’s largest producers of bio-energy.

Valmet has received a major rebuild and new equipment order from Södra Cell for the Värö pulp mill in Sweden. The order is included in Valmet's second quarter 2014 orders received and is valued at around EUR 200 million.

Valmet's delivery will contribute to Södra's performance by significantly increasing the Värö mill's pulp production capacity and energy efficiency. The order consists of a new continuous cooking plant and upgrades of wood handling, fiber line, evaporation plant, recovery boiler, recausticizing, flash dryer, pulp dryer and baling. The estimated employment impact of the order is about 650 man years mainly in Sweden. A large part of the order will be delivered from Valmet's operations in Sweden: the cooking plant and recausticizing from Karlstad, fiber line, flash dryer and baling from Sundsvall, and evaporation and recovery boiler from Gothenburg. The wood handling and pulp dryer delivery will come from Finland.

A prerequisite for construction start is the receipt of a permit from the Environmental Court of Appeal.

Södra is an economic association with a membership base of 51,000 forest owners in southern Sweden. Södra has built up a considerable production of paper pulp, wood products and biofuels. Södra employs about 3,800 people and has four business areas Södra Skog, Södra Cell, Södra Timber and Södra Interiör.

Södra Cell is one of the world's largest market pulp supplier, with a total annual production of 1.6 million tonnes.

CMPC to Install New 50,000 tpy Tissue Paper Machine in Mexico in 2015

Chilean Empresas CMPC has announced a $160 million investment to expand its Altamira tissue plant capacity in Mexico by 50%. The company plans to install a new 50,000-tonne/yr tissue paper machine (PM) at that site with startup scheduled for the third quarter of 2015.

CMPC’s Altamira mill currently produces around 100,000 tonnes/yr of tissue paper on three PMs. According to CMPC, the investment project in Mexico also includes an energy cogeneration plant and converting capacity. The Altamira plant should receive around $50 million this year.

“The biggest part of the investment will be spent at the end of the project,” said CMPC’s CFO, Luis Llanos.

Mpact Plans R765 Million Upgrade of Felixton Paper Mill in Kwazulu-Natal

Mpact Limited (Mpact) announced that it is investing R765 million ($70.8 million) to upgrade its Felixton Paper Mill near Empangeni in KwaZulu-Natal. Mpact Chief Executive Officer Bruce Strong said the significant investment in the latest paper mill technology and machinery will enable the mill to enhance its total product offering and overall competitiveness, and increase capacity by 60,000 tons to 215,000 tons/yr.

The project benefits include the capability to further enhance paper properties while simultaneously producing advanced lightweight packaging material. The drive for “lightweighting” is a notable feature of the packaging industry where reducing the weight of products transported over great distances is essential.

On completion of the project, the upgraded mill will use only recycled fiber in the manufacturing process, and will remain globally competitive. The project is expected to exceed Mpact’s Return on Capital Employed (ROCE) target of 15%.

Implementation of the project will be over two phases and is set for completion in 2017. Phase One of the project will involve the installation of additional process equipment to increase the use of recycled fiber and enable the production of enhanced quality lightweight paper. Phase Two will see a major rebuild of the paper machine to enable the mill to produce paper using 100% recycled fiber rather than using sugarcane bagasse as part of the process.

UPM Signs Agreements with Main Suppliers for Kymi Expansion Project

UPM is proceeding as planned with its EUR 160 million investment to increase pulp production at the Kymi mill in Kouvola, Finland. The company has signed agreements within the KYMI-700 project concerning the planning, new debarking plant and pulp drying machine as well as modernization of the softwood fiber line. The parties have agreed not to disclose the value or further details of the agreements.

The KYMI-700 project consists of a new debarking plant, a new pulp drying machine and modernization of the softwood fiber line. The project will be completed in the final quarter of 2015.

The planning of the KYMI-700 project has been commissioned from the local engineering office CTS Engtec. Raumaster will supply the new debarking plant. The complementary pulp drying machine and modernization of the fiber line will be supplied by Andritz.

With this investment UPM Kymi mill’s annual pulp production capacity will increase by 170,000 tonnes up to 700,000 tonnes of bleached northern softwood and birch pulp. The investment forms a significant part of UPM’s target to reach a 10% increase in its 3.3 million tone pulp capacity over the next three years.

UPM Raflatac to Invest Euro 14 Million in Asset Platforms in China and Malaysia

UPM Raflatac is planning to increase production capacity in Asia Pacific by investing EUR 14 million in its asset platforms in China and Malaysia. These initiatives will support UPM’s growth target of adding EUR 200 million of EBITDA in the coming three years. The plan is to build a new coating line in the company’s self-adhesive labelstock factory in Changshu, China. The plan also includes machinery upgrades in Changshu as well as the Johor Bahru factory in

Malaysia. The machinery investments are estimated to add more than 50% new coating capacity in the region for UPM Raflatac.

Arkhangelsk PPM to Optimize Mass Preparation at Novodvinsk Mill in Russia

Russia’s Arkhangelsk Pulp and Paper Mill (APPM) has launched a project to optimize mass preparation for its two containerboard machines, BM 1 and BM 2, at its mill in Novodvonsk.

The Rouble 720-million ($20.5 million) scheme is aimed at reducing consumption of hardwood, chemicals and energy in the paper production process. The firm also plans to cut production costs through replacing some unbleached sulphate pulp with semichemical pulp.

APPM said that the current investment is the first stage of its larger project to modernize BM 2, which is scheduled for the autumn. The complete machine upgrade will include a rebuild of its frame, the press and drying parts and a replacement of the PM’s calander, roll, slitter and the transportation and packaging line.

Brazil’s Klabin Reduces Water Consumption at Otacílio Costa Containerboard Mill

Brazil’s largest packaging paper producer, Klabin, has lowered the water consumption index at its Otacílio Costa mill, in Santa Catarina state, southeast Brazil to 28 m3 of water per tonne

of containerboard. This represents a 54% reduction in water consumption compared with the plant’s index in 2009, Klabin stated. The company invested Real 2 million ($886,000) in equipment to shut off the Otacílio Costa mill’s water circuit. The investment also included the installation of water cooling towers with capacity of 1,500 m3/h as well as training for the plant’s workers.

Sappi Unveils Its Alfeld Mill PM 2 Rebuild

Sappi's ambitious €60m transformation of Alfeld Mill's PM 2 was concluded on schedule with the quality exceeding expectations. This major project created probably the largest, most innovative and versatile papermaking machine. The state of the art inline machine is producing one-sided coated specialty papers. It involved the use of Europe's largest crane to drop in place a 135-ton MG cylinder 6.5 meters in diameter. In addition to the new MG cylinder, rebuilding PM 2 also included installation of a new head box with dilution system and pre-dryer section as a single tier arrangement.

The new papermaking machine delivers a very smooth top-side surface, greater dimension stability and lower penetration of pigments. This improves the overall quality of the grades manufactured on PM 2, enhancing their converting capabilities. The fast and innovative MG machine for one-side-coated paper in the world, it will produce 135,000 tonnes per annum at 1,200m per minute or 72km per hour.

UPM Plans Second 45,000-Tonne/Yr Biorefinery at Kaukas Mill

UPM is planning a second biorefinery at its Kaukas mill in Lappeenranta in southeastern Finland. The firm has applied for Euro 79.2 million ($107.7 million) in financial support from the country’s Ministry of Employment and the Economy. The total investment is estimated at

Euro 198 million.

If built, the plant would have a capacity of 45,000 tonnes/yr of renewable gasoline and diesel for the transport sector, using solid wood biomass as raw material, according to UPM’s financial support application. This would comprise both residues from the mechanical wood processing industry, such as sawdust, as well as debarked round wood. The application did not specify how much wood would be required. When sourcing the wood, UPM would use its existing activities

and purchasing models.

UPM is already in the process of constructing a biorefinery at the Kaukas mill site. The Euro 150 million plant will produce some 100,000 tonnes/yr of biodiesel for the transport sector using mainly crude tall oil. It is due to start production next year. The company did not apply for a public investment grant for this project.

SCA to Invest SEK 500 Million in New Digester at Obbola Kraftliner Mill

SCA will invest roughly MSEK 500 ($76.5 million) in a new digester in the Obbola kraftliner mill outside Umeå in northern Sweden. The new digester is a re-investment and it provides better energy efficiency and allows for a continued development of the mill.

SCA Obbola is producing kraftliner, the outer layers of corrugated board, based on unbleached kraft pulp. The existing eight batch digesters have been in operation since 1962. They are in need of renovation and constitute a bottleneck for the continued development of the mill.

Zellstoff Pöls Starts up Europe’s Largest New Specialty Paper Machine

Zellstoff Pöls, Austria, successfully started up Europe’s largest new paper machine for specialty papers, supplied by international technology group Andritz. The PrimeLine paper machine produces very high-strength paper grades used primarily for carrier bags, high-grade medical packaging, and food packaging.

The Andritz scope of supply comprised the stock preparation plant, the approach system, the complete Prime- Line paper machine (working width 4.5 meters) with hybrid former, shoe press, steel Yankee, calender, and slitterwinder, as well as pumps and the complete plant automation equipment. At a design speed of up to 1,200 m/min, the paper machine has an annual capacity of 80,000 tonnes.

ACQUISITIONS

Brigl & Bergmeister to Acquire Stora-Enso's Uetersen Paper Mill

Brigl & Bergmeister recently signed the purchase agreement to acquire 100% shares of the paper mill Uetersen from Stora-Enso Group. With a capacity of 240,000 tons per year, the paper mill, (formerly known as Feldmühle Papierfabrik), manufactures one side coated specialty papers (labels and flexible packaging) as well as high quality ‘'two side coated" graphical paper and board on 2 paper machines. The transaction has yet to be approved by the competent competition authorities.

The acquisition results in creation of a leading global supplier of specialty papers with an extensive product portfolio. The synergies which can be achieved as a result of this merger will also ensure that Uetersen in Schleswig-Holstein will remain an attractive employer in the region.

In 2011, B&B with its paper mills in Niklasdorf (Austria) and Vevče (Slovenia) was purchased by the Roxcel paper trading group as their first move into the paper production. Meanwhile, the group has acquired the waste to energy company ‘'ENAGES" in 2012, to ensure the secure and environmentally sustainable energy for the paper mill in Niklasdorf. Further investments have been completed in 2013 and also still ongoing in 2014 to improve quality and capacity in both mills. Today, the annual capacity of Niklasdorf is 78,000 tons, and that of Vevče is 120,000 tons of specialty papers. Among the company's customers are printers and convertors mainly supplying the beverage and food industry with high-grade label and packaging papers.

Mexico Approves Acquisition of Grupo Peosa by Gondi

Mexican packaging paper producer Grupo Gondi has received from the country's Federal Commission and Economic Competition (COFECE) the authorization to conduct the previously announced acquisition of the assets of Grupo Peosa, as well as its brands. Grupo Peosa is a manufacturer of high graphic folding carton and litho-laminated boxes as well as corrugated boxes.

According to the company, the acquisition places Grupo Gondi at the frontline of high graphics recycled packaging in the Mexican market, with a workforce of over 6,000 employees. Grupo Gondi will integrate modern lines in high graphic packaging, thereby growing its market share in high value added products while consolidating its presence with strategic clients with an offer that involves folding carton, litho-laminated and corrugates boxes, both pre-printed and post-printed technology.

Delion France Acquires Vertaris Deinked Pulp Mill in France

The mill will start up the deinked market pulp line from waste paper in the fall of 2014 after the installation of the Rottneros flash dryer. The new Vertaris pulp mill will be producing high quality DIP grades for the printing & writing, the paperboard and tissue markets. EFP-Chavassieu will be handling the sales and marketing of the Vertaris production.

Vertaris / Delion France SA, ex Matussiere & Forest mill, is located in Voreppe near Grenoble, France. It will be producing deinked dried market pulp with a total initial capacity of 140,000 tonnes/yr expanding to 200,000 tonnes/yr by 2016.

Springwater capital is a private equity company already active in the pulp and paper industry, via its subsidiary Delion and also having experience in wastepaper management. EFP-Chavassieu is a Paris-based company active in the pulp and paper industry as well in hygiene and packaging markets.

Rocktenn to Buy Simpson Tacoma to Establish West Coast Mill Base

In a move that would give it a West Coast mill presence and strengthen its leading white-top linerboard position, RockTenn will acquire Simpson Tacoma Kraft Paper from Simpson Lumber for about $343 million, the two companies announced in early March.

RockTenn said the purchase price reflects an EBITDA multiple of less than six times based on the mill’s financial results for the 12 months ending December 2013. From the Tacoma, WA, mill, RockTenn expects “operating efficiencies due to the location of the mill on the West Coast,” according to the announcement.

RockTenn, the second largest North American containerboard producer by capacity, is the lone major integrated producer not operating a containerboard mill on the West Coast. The non-integrated Tacoma mill last year produced 465,000 tons/yr of containerboard, paper, and pulp on two paper machines and two small pulp dryers. The mill is located next to the Port of Tacoma.

Simpson Tacoma is best known as a leading supplier of white-top linerboard (“Rainier White”) grades in the western US. In addition, the mill operates a 55-MW green biomass fuel cogeneration facility that was completed in 2009.

WEPA Sells Fabbriche di Vallico Tissue Mill to EUROTEC

The German tissue giant WEPA has parted with its Fabbriche di Vallico tissue mill near Lucca in Italy. The firm said it signed a contract for the sale of the site to the Lucca-based trader EUROTEC.

The Fabbriche di Vallico mill houses one tissue machine with a capacity of around 18,000 tonnes/yr and employs 16 people. According to WEPA, the sale is part of its strategy to adapt its production capacity in Italy to the market situation in the country. EUROTEC so far has been active as a commercial enterprise for parent reels. With the purchase of the Fabbriche di Vallico paper machine it is now moving into the production of semi-finished products for sanitary paper production. According to WEPA, the new owner plans to invest in the modernization of the Fabbriche di Vallico mill and intends to secure employment there in the long term.

Ashland to Sell Water Treatment to Private Equity for $1.8 Billion

Ashland announced recently it has agreed to sell its water treatment business to private equity firm Clayton, Dubilier & Rice (CD&R; New York) for $1.8 billion, ending a months-long divestiture process. The deal will result in $1.4 billion in net proceeds to Ashland, of which $1.35 billion will go towards a new share repurchase program. The water treatment business generates $1.7 billion/year in revenues, 67% of which is derived from pulp and paper sales and 33% of which is from industrial and municipal water treatment sales.

"This divestiture allows us to focus on our core specialty chemicals business and to accelerate return of capital to shareholders, while water technologies should have an opportunity to invest in continued growth under new ownership. We believe this transaction, when combined with our ongoing global restructuring, will help position Ashland for Ebitda margins that rank among the top 25% of specialty chemical companies,” says Ashland chairman and CEO James O’Brien.

The water treatment business, among the largest operations in its sector, has 31 manufacturing facilities spread across 17 countries and over 3,000 employees. John Panichella, current head of the segment, will remain on as CEO of the newly independent company. The divestiture is expected to close on 30 September, the end of Ashland’s fiscal year. "We are excited to be partnering with John Panichella and the Ashland water treatment management team and look forward to working with them to move the business forward to its next level of profitable growth," says CD&R partner David Wasserman.

The segment, called water technologies, was Ashland’s third-largest by sales in 2013 and was the subject of a restructuring effort in the months leading up to the divestiture. Water technologies’ operating income totaled $80 million in 2013, up 11.1% year-on-year from 2012. Profit margins also improved from 2012 to 2013.

Ashland is also looking to sell its $330-million elastomers business. After the water sale closes, Ashland will reorganize its three remaining segments—specialty ingredients, performance materials, and Valvoline—creating two businesses within specialty ingredients and cutting about 800–1,000 jobs.

McIlvaine Company

Northfield, IL 60093-2743

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

E-mail: editor@mcilvainecompany.com

Web site: www.mcilvainecompany.com