Voith has developed a new rotor, the IntensaRotor R, for pulpers used to process recovered paper. It has been operating successfully for months with industrial customers and has proven that its energy consumption is as much as 20 percent below the usual values.

The IntensaRotor R is suitable for installation in existing Voith pulpers as well as in pulpers from other manufacturers. During operation at both a Turkish paper mill, and at a paper manufacturer in China, the IntensaRotor R has proven that it has lower specific energy consumption at a higher throughput than its predecessors. In the first case, the daily output was increased from 260 metric tons to 300 tons, with an energy saving of eight percent per ton. In the second industrial example, the amount of stock after installation of the IntensaRotor R was increased from 510 metric tons to 630 tons per day, while energy consumption per ton dropped by 12 percent.

Both the better energy balance and the higher output are due to the new rotor design. The IntensaRotor R is especially suitable for pulpers of secondary fiber applications in low-consistency area and is delivered in various sizes.

Kadant Obtains $10 Million in Equipment Orders from Paper Producers

Kadant Inc. (KAI) recently announced it received two orders totaling approximately $10 million from leading paper producers in Taiwan and the U.S. for virgin and recycled fiber processing equipment used in the production of paper and packaging. The orders were booked in the first quarter of 2015.

"These orders get us off to a good start in 2015 and reinforce the importance our customers place on investing in technologies that optimize energy utilization while reducing water consumption as they seek to develop new competitive advantages in their end markets," commented Jonathan W. Painter, president and chief executive officer of Kadant.

Kadant Inc., based in Westford, Massachusetts, is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company's products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. The company has revenues of $344 million in 2013 and 1,800 employees in 18 countries worldwide.

Sappi, Edinburgh Napier University Develop Low-Cost Process to Make Nanocellulose

Scientists from Edinburgh Napier University and Sappi have developed a low cost way to turn wood into a wonder material that could be used to build greener cars, thicken foods and even treat wounds.

Sappi will be able to produce the lightweight material on a commercially viable basis - and without producing large volumes of chemical waste water associated with existing techniques. The energy-saving process will be used in a new nanocellulose producing pilot plant to be erected by Sappi.

The Edinburgh Napier research team says it has been able to drastically reduce the amount of energy needed to power the process, as well as the need for expensive chemicals. “What is significant about our process is the use of unique chemistry which has allowed us to very easily break down the wood pulp fibers into nanocellulose,” said Professor Rob English, who led the

research with his Edinburgh Napier colleague, Dr. Rhodri Williams.

“There is no expensive chemistry required and, most significantly, the chemicals used can be easily recycled and reused without generating large quantities of waste water. It produces a dry powder that can be readily redispersed in water and leaves the nanocellulose unmodified – effectively making its surface a chemical “blank canvas” and so more easily combined with other materials.”

Nanocellulose produced at the proposed Sappi plant could be used in a wide range of industrial and everyday products and devices because of the way they can improve the properties of materials they are combined with, said Professor English. The pilot plant will test the manufacturing of dry re-dispersible cellulose nanofibrils (CNF). Using this proprietary break-through technology, Sappi will ultimately be able to manufacture CNF with unique morphology, specifically modified for either hydrophobic or hydrophilic applications. Products produced will be optimally suitable for conversion in lighter and stronger fibre-reinforced composites and plastics, in food and pharmaceutical applications, and in rheology modifiers as well as in barrier and other paper and coating applications.

NEW PROJECTS

AMERICAS

CRPE Receives Environmental License for New 2.2-Million Tonne/Yr BEK Mill in Brazil

Brazilian Celulose Rio Pardense e Energia (CRPE) has received the environmental license from Mato Grosso do Sul’s state for the construction of a new 2.2-million tonne/yr bleached eucalyptus kraft (BEK) pulp mill at Ribas do Rio Pardo city.

The information was released by engineering services company Poyry, which was hired to conduct the project’s basic engineering services. The company hasn’t disclosed further details about the project but sources state it may be in 2018.

CRPE currently owns 60,000 ha of disposable lands for plantations in an average radius of 30 km from the mill site.

Glatfelter Prepare Woodchip Recycling Test Project at Chillicothe, OH, Paper Mill

Officials at Glatfelter are preparing for a wood chip recycling project after being granted a temporary permit by the Ohio Environmental Protection Agency earlier this month. The paper mill requested a temporary permit in late 2014 to operate a diesel-powered conveyor system for the chips, which was granted Jan. 15, state records show. Mitzi Anderson, spokeswoman for Glatfelter, said the conveyor system would be usedto run a recycling project trial program involving knots, a term for wood chips that are not completely cooked in the pulping process and are screened out. "We have not started the trial, but plans are in place to start in the near future," Anderson said.

Xerium Plans Expansion Strategy at Two Plants

Xerium Technologies, Inc., a leading global provider of industrial consumable products and services, announced two plant expansion projects to enhance its rolls products and mechanical services capabilities for the North American market.

Xerium will expand and modernize its Griffin, Georgia plant. It will broaden its mechanical service offering, expand its capabilities for rubber roll recovering, and expand its capabilities for industrial roll recovering. These new investments will also lower lead times. This expansion is expected to generate increased sales volumes in the region. Completion is scheduled for Q4 2015.

Xerium will expand and modernize its Neenah, Wisconsin plant. It will broaden its product offering by installing a state-of the-art polyurethane roll cover production cell, and increase the size and breadth of its mechanical services department in order to more broadly serve customers in the region. These new investments will also improve lead times. This expansion is expected to generate increased sales volumes in the region. Completion is scheduled for Q4 2015.

Both facilities manufacture and repair large rolls used in the production of paper, containerboard, boxboard, tissue, pulp, nonwoven fabrics, fiber cement siding, steel, film production, and flexible packaging. Both facilities mechanically repair & service large sections of production machines that require regular and sophisticated maintenance.

Neenah Paper Plans Mill Expansion

Neenah Paper Inc. announced that it plans to construct a new manufacturing plant in Appleton, Wisconsin’s industrial flats to produce specialty filter papers.

The expansion of the company's Appleton Mill would buck the trend of paper mill closings and consolidations that has characterized the paper industry in the past 20 years.

The 44,000-square-foot plant would be built on a peninsula of vacant land south of the Fox River and north of a power canal off South Vulcan Street. The property is part of Neenah Paper's Appleton Mill, which encompasses 10.5 acres.

The expansion would include manufacturing space, utility rooms, offices, a covered tank farm for methanol and resin storage, a covered delivery area, a truck dock and parking. The operation would use a proprietary system, according to documents filed with Appleton planners.

"We would actually make the base paper within the Appleton Mill and then that paper would be transferred to where this new building would be," Howard Piotrowski, manager of the Neenah Paper's Appleton and Neenah mills said. "We would put some chemical technology into it to create the end product."

Piotrowski said if the permitting process goes as planned, construction could begin in May or June and be completed within two years.

Georgia Pacific's Palatka Mill Boosts Energy Efficiency

Georgia Pacific is spending $70 million in their Palatka, Florida, paper mill to upgrade the evaporators, a key component in generating energy to operate the mill. Energy costs will be reduced by an estimated $1 million per month and water usage by more than 30 percent.

This is just the latest in almost $100 million spent to enhance the mill's safety, quality, sustainability and productivity.

Palatka mill manager Kevin Curry stresses the strategic importance of the expense. "We continue to make ongoing investments in the mill to help reduce our overall environmental impact and improve our cost competitiveness. This latest investment helps accomplish both of those goals, and earning it is a great accomplishment for our entire Palatka team," he said.

This new project is in addition to an approximately $19 million investment announced last year for the installation of product quality improvement equipment in the mill's kraft paper area. Installation of that project is currently underway. The mill also has approximately $10 million slated for safety and environmental improvement projects.

KapStone to Expand in Kentucky

KapStone Container Corporation plans to expand its operations in Bowling Green. KapStone, which manufactures paper packaging containers, is expected to create up to 30 new jobs and invest US $4.5 million into the project.

KapStone plans to modernize its facility and upgrade equipment. The new machinery will allow the company to increase production to satisfy customer demand and take on new contracts.

KapStone Container is a subsidiary of KapStone Paper and Packaging Corporation. The company is a leading producer of unbleached Kraft paper and corrugated packaging products. KapStone employs 4,500 workers throughout the country. The Bowling Green facility opened in 2001 and has 112 full-time employees. KapStone also has facilities in Somerset and Lawrenceburg.

To encourage the investment and job growth in Warren County, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $400,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

ASIA

Valmet’s Opticoncept M Containerboard Line for Yuen Foong Yu Packaging in Taiwan

Valmet will supply an OptiConcept M containerboard production line for Yuen Foong Yu (YFY) Packaging Inc. for the company's Xin Wu site in Taoyuan County in Taiwan. The new production line will produce high-quality fluting grades out of 100 percent recycled raw materials. The start-up of the new machine is scheduled for the third quarter of 2016.

The order is included in Valmet's first quarter 2015 orders received. The value of the order will not be disclosed.

"We selected a machine concept that emphasizes environmental efficiency especially in terms of energy saving. Our target is to produce high quality containerboard. In order to be competitive, we want to operate with the latest proven technology. Valmet's OptiConcept M has the features which align well with our expectations," says Mr Chia-Feng Yeh, Project Director of Yuen Foong Yu Packaging.

"This high efficient containerboard making line ordered by YFY Packaging will be Valmet's seventh OptiConcept M production line to be supplied globally. The new production line will be able to reduce both carbon footprint as well as energy consumption significantly. The annual production capacity of the new machine will be approximately 300,000 tonnes of board and the design speed will be 1,200 m/min," says Jari Vähäpesola, President, Paper Business Line, Valmet.

The operating profitability of the OptiConcept M is based on the concept's overall efficiency covering energy- and resource-efficient processes and high speed. The production line ensures optimized productivity at minimal operational cost. Valmet's delivery includes complete boardmaking line from headbox to reel. A new winder is also included in the delivery.

Yuen Foong Yu Packaging, Inc. is an independent subsidiary of Yuen Foong Yu Paper Mfg. Co., Ltd. It is one of the two largest manufacturers of industrial paper in Taiwan and one of the largest suppliers of paper containers in the Greater China. Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries.

Fujian Qingshan to Add 500,000 tonne/yr Food Packaging Capacity in China

China's Fujian Qingshan Paper Industry plans to add 500,000 tonnes/yr of food packaging paper and board capacity at its mill in Qingzhou city, Fujian province.

The project will include a rebuild of its idle PM 3, which used to produce 200,000 tonnes/yr of recycled fluting.

The overhaul will enable the PM to make food packaging paper and board at a rate of 202,300 tonnes/yr, making it much bigger than the previously announced 130,000 tonnes/yr.

PM 3 started up in 2007. It has a width of 5.5 m and a maximum speed of 900 m/min. It has been offline since 2012 due to sectoral oversupply.

Meanwhile, the firm will build a new 306,000 tonne/yr coated food packaging paper and board machine and a 250,000 tonne/yr pulp line at the same site.

The fiber line will use newly-acquired ultrasound pulp technology, and its output is planned to furnish the new PMs.

A timeline for the entire project is not available now, and the scheme is yet to be approved the firm's shareholders and by the local authorities.

Moreover, Fuijan Qingshan plans to raise up to RMB 3.2 billion ($ 512 million) via a private placement to fund the expansion.

According to the firm, some RMB 1.7 billion will be directly used to support the project, and the remaining RMB 1.5 billion is planned to replenish working capital.

The fundraising plan also needs the nod from shareholders and related authorities.

Fujian Qingshan currently runs two PMs with a combined capacity of around 200,000 tonnes/yr of kraft paper.

It also operates a 120,000 tonne/yr dissolving pulp line at the Qingzhou mill.

It recently decided to acquire a 100,000 tonne/yr kraft paper firm called Guangdong Zhaoqing Kelun Paper at a cost of RMB 300 million.

The acquisition is to be approved by the firm's board of directors and shareholders, and the transaction price needs to be greenlit by local authorities.

EUEA

Iggesund Paperboard Mill in Sweden to Increase Capacity by up to 40%

International technology Group Andritz has received an order from Iggesund Paperboard to upgrade the TM4 pulp drying line at its Iggesund mill, Sweden, thus increasing the line's capacity from currently 230-260 tons to 325 tons per day. Start-up is scheduled for the fourth quarter of 2015.

Andritz will deliver a customized upgrade solution including a new shoe press and steam blow box, an overhaul of the airborne dryer, and safety improvements. The capacity increase in the drying area will support Iggesund Paperboard's goal to raise its total pulp capacity from 370,000 to 420,000 tons per year. In addition, the Andritz upgrade will enhance production stability and further reduce energy costs.

Iggesund Paperboard is a member of the Holmen Group and Europe's leading manufacturer of high-quality virgin fiber paperboard for use in the packaging and graphics sectors

Andritz to Supply Equipment for New Bio-Product Pulp Mill

International technology Group Andritz has signed a letter of intent with Metsä Fibre to deliver key production technologies for a new bio-product pulp mill with an annual capacity of 1.3 million tons of pulp in Äänekoski, Finland. The order value for Andritz is over 100 million euros. Start-up of the planned mill is scheduled for August 2017.

Andritz’s scope of supplies includes:

· A complete wood processing plant including three debarking lines designed for world record capacities (up to 470 m3 solid-over-bark per hour) and the world's biggest horizontally fed chippers, ensuring high capacity without compromising the chip quality.

· A fiberline for softwood and hardwood including a chip feeding system, a continuous cooking plant, seven DD (Drum Displacer) washers, and a new evaporation system for liquor extraction. The line's softwood capacity will be the highest in the world by far (3,900 tons per day).

· The world's most energy-efficient black liquor evaporation plant with the highest capacity in Europe (1,650 tons/hour).

· A recausticizing plant, which will be the largest in Europe (white liquor production of 16,000 m3/day).

The new mill will be a next-generation bio-product pulp mill which can convert wood raw material into bio-materials and bio-energy in addition to high-quality pulp. It will not use any fossil-based fuels as all of the energy required will be generated from wood. The erection of the new mill is the largest investment in the Finnish forest industry ever.

Andritz to Upgrade Mondi's Frantschach Cooking Plant

International technology Group Andritz has received an order from the Mondi Group to upgrade the continuous cooking plant at the Frantschach mill in St. Gertraud, Austria. Start-up is scheduled for the fourth quarter of 2015.

Andritz will convert the digester to its Downflow Lo-Solids cooking technology and add a TurboFeed chip pumping system to improve the feed to the digester as well as a vapor reboiler to further reduce odorous emissions. In the brownstock washing area, Andritz will deliver a pressure diffuser washer. This upgrade is a follow-up order to the recovery boiler that was delivered by Andritz and started up successfully in the Frantschach mill in 2013.

Mondi's investment will help to improve the use of resources and further increase the mill's energy efficiency and competitiveness.

Felix Schoeller Commissions Bellmer for PM 14 Rebuild

With the rebuild of paper machine PM 14 at its Günzach mill, which is scheduled for the 4th quarter of 2015, the Osnabrück-based Felix Schoeller Group is taking another step forward in the strategic growth concept it has devised for its Technocell division: the creation of additional capacity for pre-impregnated products, a key growth segment. On 28 January 2015, it commissioned Bellmer with overall responsibility for implementing this investment.

Growth in growth markets and growth regions is the clear strategic goal of Technocell, a division of the Felix Schoeller Group. Pre-impregnated products, which are used in the wood-based products industry, are one of the key growth segments. The rebuild of PM14 is a response to rising demand and will create additional capacity for pre-impregnated products - which Technocell sells under the brand name PRIP®. To date they have been produced exclusively at the company's Neustadt mill.

The extensive rebuild of the paper machine is scheduled to take place in the 4th quarter of this year. It includes a new head box, an IR drier, a new calender and a "TURBOCombiSizer" - including the size mixing station that necessitates. The TURBOCombiSizer can be used with either a size press or film press. After the rebuild, the paper machine will produce not only pre-impregnated PRIP® products but also nonwoven papers coated on both sides for use in the wallpaper industry, for example. A total of 15 million euros have been earmarked for this investment project.

"With this investment in PM 14 we are not only creating the foundation needed for Technocell's continued growth but also strengthening our facility at Günzach in Allgäu. This mill has three paper machines and focuses clearly on specialties and small batch sizes. Furthermore, our Vlies business unit, which makes nonwovens, benefits from the possibilities offered by the TURBOCombiSizer," says Hans-Christoph Gallenkamp, the company's Vice President and Chief Technology Officer. "With Bellmer, we will have the support of a competent partner, a company that has already demonstrated its high-calibre performance in numerous joint projects," adds Kai Middeldorf, Senior Vice President of the Felix Schoeller Group's Engineering Competence Center.

LEIPA Expanding Containerboard Production Capacities at Schwedt Mill, Germany

Based on a successful preliminary assessment, the LEIPA Group predicts investment in a significant expansion of containerboard production capacities. The company's headquarters in Schwedt are being examined as the location for the expansion. A possible start of operations is planned for as early as the 2016 financial year.

"Investing in a further containerboard machine is one of the possible options for further expanding the market position we already have in the field of packaging paper. LEIPA has been extremely successful with the global marketing strategy for its products, meaning we now have the necessary foundations to invest in additional production capacities," says Peter Probst, managing director LEIPA Holding.

The LEIPA Group is ready to make an amount in the three-digit million range available for its corporate development. The target capacity of the planned machine is approximately 290,000 tonnes per year. The envisaged production programme covers corrugating medium and testliner - white and/or brown - in the substance range of 80 to 140 g/m2. Such a machine would complement existing production opportunities in Schwedt, where 120 to 200 g/m2 of coated and uncoated white top testliners are currently produced.

The LEIPA Group currently produces approximately 900,000 tonnes of graphic paper and packaging paper per year at its Schwedt and Schrobenhausen locations. In MAD and LEIPA Logistik, the Group has a recycling specialist and a logistics service provider respectively. Today, MAD already supplies LEIPA with a high proportion of the waste paper it uses. It does so primarily via its own locations as well as purchasing centres and collection points in the East German states and neighbouring (Eastern European) countries. The necessary investment security for a project of this volume comes only from the additional quantities, generable from this network, of the ever scarcer woodfree grades of waste paper.

SCA to Build Biological Wastewater Treatment Plant at Kunheim Mill in France

SCA will add a biological water treatment stage to the wastewater treatment plant at its 50,000-tonne/yr Kunheim tissue mill in Alsace in northeastern France, using lagoons in which it will plant reeds. This is the first of its kind in France, the company said, and will improve the quality of the water discharged.

Construction started in January and the installation will be done between June and August. The new treatment station will be inaugurated in September.

The mill’s wastewater will first go through the existing physicochemical treatment facility and then be directed to the biological treatment stage. There, it will first be filtered by a sieve, stored in a vat and cooled by a heat exchanger, before being spread over the lagoons. The water will then be naturally filtered through layers of gravel and sand in the reed bed and the bacteria attached to the roots of the reed will digest the organic matter in the wastewater. The combination of the bacteria, the reeds and the filtering layers will thus allow treatment of the water without the addition of chemicals and high energy consumption. At the bottom of the lagoons, a network of drains will bring the water to the river Rhine.

Peterson Packaging to Install New Biofuel Boilers at Ranheim Mill in Norway

Peterson Packaging is preparing to switch from oil and gas to biofuels by building two new steam boilers at its Ranheim mill near Trondheim in Norway in a NOK 240 million ($31.6 million) investment.

The two boilers will have a capacity of 15 MW each. The company already has the necessary discharge permit for the first one and is carrying out an impact assessment for the second one. The first line should start up in autumn 2016 and the second approximately six months later, according to Peterson Packaging CEO Even Ketil Stave.

The co-incineration boilers will mainly run on recovered wood predominantly sourced in Norway, but they can also use refuse-derived fuel (RDF). The first boiler will need some 40,000-42,000 tonnes/yr of raw material, including some 5,000-7,000 tonnes/yr of recovered paper residues from the mill’s deinking line, while the second line will require another 25,000-30,000 tonnes/yr of recovered wood, according to Stave.

The two new boilers will cover all of the mill’s steam requirements. Peterson Packaging is mulling the possibility of installing a steam to water heat exchanger which would enable it to use excess steam to supply hot water to the local district heating system, operated by Statkraft. The Ranheim mill has a capacity of some 110,000 tonnes/yr of testliner, recycled fluting, coreboard and greyboard on two machines.

Finnpulp Mulls New NBSK Pulp Mill in Finland

Finnpulp, a newly founded company based in Helsinki, announced its plans to invest up to €1.4bn in a new pulp mill in Kuopio, Finland. According to Finnpulp, the company is currently in discussion with national and international investors to secure the financing and will soon commission an environmental impact assessment study for the pulp mill.

Kuopio pulp mill is to offer an annual production capacity of 1.1 million t of northern bleached softwood kraft (NBSK) pulp. The market pulp is to be sold to packaging paper and tissue manufacturers. In addition to NBSK, Finnpulp is also meant to produce 60,000 tpy of tall oil and 800 GWh of energy which is to be fed into the national electricity grid.

Metsä Board to Increase FBB Capacity, Exit Paper Production at Husum, Sell Gohrsmühle

Metsä Board Corporation, part of Metsä Group, is introducing the final steps of transformation to a paperboard company and invests approximately EUR 170 million ($211.5 million) in a new folding boxboard machine at its Husum mill in Sweden. The production capacity of the new machine is approximately 400,000 tonnes per annum and it will start up in early 2016. Full production capacity is expected to be reached by the end of 2016.

Husum mill’s paper production is planned to be discontinued mostly at the end of 2015 and fully by the end of 2017. These measures in Husum, including also the increasing fresh forest fibre linerboard sales volumes, are expected to improve Metsä Board’s operating result by approximately EUR 50 million ($62.2 million) per annum mostly in 2017 and fully from 2018 onwards compared to 1-3Q 2014 annualized performance.

Metsä Board is also planning new measures to eliminate losses of its Gohrsmühle mill in Germany. The primary target is to divest the mill during the first half of 2015. Metsä Board’s associated company Metsä Fibre is planning to build a bioproduct mill with an investment cost of approximately EUR 1.1 billion to replace the current pulp mill in Äänekoski, Finland. The planned pulp capacity of the mill is 1.3 million tonnes leading to a net capacity increase of approximately 800,000 tonnes compared with the existing pulp production at the site. Metsä Fibre targets to make the final investment decision in spring 2015 and operations at the mill would commence during 2017. According to preliminary plans, the amount of capital invested by Metsä Board in the project would be maximum EUR 30 million.

SCA to Commission New Lime Kiln at Munksund Kraftliner Mill in Sweden

SCA is preparing to start up a new bio-fuelled lime kiln at its 415,000-tonne/yr Munksund kraftliner mill in Piteå, northern Sweden. It will replace an older, oil-consuming lime kiln, thus reducing the mill’s carbon footprint by 75%.

The firm announced the SEK 490 million ($65 million) investment in autumn 2012 and has since picked Valmet to supply the lime kiln. Valmet,in turn, has used the engineering company FLSchmidt as a major sub-contractor, an SCA spokesperson said.

The new lime kiln will run on pellets sourced in the Västerbotten and Norrbotten counties. The facility can consume five tonnes of pellets per hour, but its annual pellet consumption is budgeted for some 17,400 tonnes next year, the spokesperson said.

Stora Enso Invests in Wooden Building Element Production in Finland

Stora Enso is investing EUR 43 million in a new production line for wooden building elements located in Varkaus, Finland. The investment is based on peeling technology which will further enhance Stora Enso's position as a global provider of high quality engineered wooden elements. The new products complement the existing product portfolio.

Production is scheduled to begin in the second quarter of 2016. The estimated yearly capacity of the production line will be around 100 000 m3. The investment is expected to generate annual sales of EUR 50 million when run at full capacity and over time significantly exceed Stora Enso's ROCE target of 13%.

"This investment is part of Stora Enso's transformation to a customer-focused renewable materials company. With this investment we will be able to meet growing urban construction needs, serve new geographic areas and markets and offer our customers a wider range of wood product solutions," says Jari Suominen, EVP, Head of Stora Enso's Wood Products.

In Varkaus, Stora Enso can take advantage of and make best use of the premises available, an industrial infrastructure for efficient logistics, the local supply of raw material to optimise wood sourcing and highly competent workforce. The operational model at the Varkaus sawmill will be reviewed in connection with the production start-up. The estimated total employment impact for the Varkaus region is 150 FTEs.

ACQUISITIONS/ DIVESTURES

Valmet Buys Process Automation Systems Business from Metso

Valmet Corporation and Metso Corporation have signed an agreement on the sale of Metso's Process Automation Systems business to Valmet. The enterprise value of the acquisition is EUR 340 million. The acquisition will be financed with committed long-term financing. It is estimated that the acquisition will be completed by April 1, 2015. The completion of the transaction is subject to approval by the competition authorities.

The acquired operations supply process automation and information management systems and related applications and services to the pulp, paper, energy and other process industries. The purchased operations employ about 1,600 people. Net sales for 2013 amounted to approximately EUR 300 million.

The acquisition strengthens Valmet's competitiveness by combining paper, pulp and power plant technology offering, services, process know-how and automation into one customer value-adding entity. Approximately 80 percent of Process Automation Systems sales comes from Valmet's current customer industries and the rest from other process industry clients.

Process Automation Systems is a strong, established business. The share of services business in the acquired business is significant, accounting for approximately 45 percent of net sales in 2013, and is based on large installed automation base and a captive business model. Net sales of the Process Automation Systems business is approximately EUR 300 million, of which Valmet has accounted for approximately 10 percent. Therefore the acquisition increases the share of stable high-margin business of Valmet's net sales by approximately EUR 270 million. EBITA margin for Process Automation Systems has been approximately 10-12 percent.

Cascades Selling NA Boxboard Mfg. and Converting Assets to Graphic Packaging

Cascades has announced that it has reached an agreement for the sale of its North American boxboard manufacturing and converting assets to Graphic Packaging Holding Company for

$44.9 million.

The Cascades boxboard units affected by the transaction are:

· East Angus, QC, a mill that manufactures recycled coated boxboard for the production of folding cartons. Founded in 1910, it was purchased by Cascades in 1983.

· Jonquière, QC, a mill that manufactures three-ply coated boxboard from virgin or recycled fiber. Founded in 1963, it was acquired by Cascades in 1984.

· Winnipeg, MB, a plant that manufactures folding cartons. Founded in 1905, it was acquired by Cascades in 2001.

· Mississauga, ON, a plant that manufactures high-quality graphic packaging. Founded in 1986, it was purchased by Cascades in 1992.

· Cobourg, ON, a plant that manufactures high-quality flexographic boxboard containers. It was built by Cascades in 1993.

DS Smith Acquires Duropack

DS Smith Plc, a leading provider of recycled corrugated packaging in Europe, announced the proposed acquisition of the Duropack business for approximately €300m (c.£220m). Duropack, a recycled corrugated board packaging business with market-leading positions across South Eastern Europe, is being acquired from CP Group 2 BV, a One Equity Partners subsidiary.

The acquisition is highly complementary to DS Smith's geographic footprint and transforms their position in higher-growth South Eastern European geographies, further strengthening their pan-European capabilities to existing customers in addition to providing access to new customers.

Duropack has number one or two market positions in many of the geographies in which it operates and, combined with DS Smith's existing operations in Hungary, Slovakia and Austria, will have a leading position across South Eastern Europe.

The business is well invested with high quality assets and operates a "short paper, long fibre" model similar to that of DS Smith.

In 2014 the business delivered EBITDA of €41 million and EBIT of €22 million on turnover of €273 million. Cost synergies of €12 million, are expected to be realised within three years of ownership. The additional investment required to integrate the acquisition is c.€13 million, incurred over the first two years. This will be funded by cash savings, driven by working capital efficiencies and tight cash management.

The total consideration, including the assumption of debt, is expected to be circa €300 million, subject to customary post-closing adjustments, representing a post synergy multiple of 5.7 times EBITDA.

The acquisition is being financed from existing debt facilities. It will be immediately accretive to earnings per share and generate a return above our cost of capital during the second year of ownership.

The acquisition is subject to competition clearance, which we expect in calendar Q2, with completion shortly thereafter.

McIlvaine Company

Northfield, IL 60093-2743

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

E-mail: editor@mcilvainecompany.com

Web site: www.mcilvainecompany.com