Sappi: conditions in sector will improve but price hikes likely. 2010-03-01 369

Paper manufacturer Sappi has said that conditions for the sector will gradually improve in 2010, but warned that pulp price increases are also likely.

The South Africa-based business made the comment in its first-quarter results, where it also announced a pre-tax loss of $72m for the fiscal quarter ended 27 December 2009.

This was down from a $36m profit in Q1 of the preceding year. Turnover rose by 36% year-on-year to $1.6bn as a result of Sappi's acquisition of M-Real's graphic papers

UPM to develop MRF at Shotton plant to boost recycled output

Paper giant UPM is to invest $27.39m in the development of a materials recovery facility (MRF) at its Shotton paper mill in North Wales.

The facility will sort dry recyclables, such as plastic bottles, cardboard, newspapers, magazines and metals, and enable the mill to source high-quality paper from co-mingled sources. Construction on the site will start immediately and is estimated to be completed by January 2011.

Once up and running at full capacity, the plant will employ up to 160 staff to

Facing recession, Sappi will be closing Kangas mill in Finland

Sappi Fine Paper Europe is to permanently shut down its Kangas paper mill in Finland in order to address the impact of the global recession.

The mechanical coated paper mill has been in operation for 137 years and employs 150 staff.

So far, 30 staff has left with a pension agreement, while four will transfer within the company. The remaining staff will be made redundant.

Berry Wiersum, chief executive of Sappi Fine Paper Europe, said: “We recognise this is a difficult decision

UPM posts €64m third-quarter profit following restructuring

Paper giant UPM has recorded a third-quarter pre-tax profit of €64m following a year of restructuring initiatives and production curtailment.

The figure is up on a loss of €90m recorded at the same time a year earlier. However, for the first three months, it recorded a pre-tax loss of €124m.

Sales for the third quarter of 2009 were €1.9bn – down 19% on the €2.3bn recorded for the period in 2008.

The Finland-based manufacturer blamed the weaker profitability

Construction on Tullis biomass plant starts after $335m deal

Papermaker Tullis Russell has signed a $335m deal with energy operator RWE Npower Renewables to supply heat and electricity to the Scottish paper mill from its new biomass-fuelled co-generation plant.

Construction work on the site will begin immediately and the Combined Heat
and Power (CHP) facility, which replaces an existing coal-fired plant at the Fife site, is expected to be operational by 2012.

Some $13.5m support has also been secured from the Scottish government for the project

Paper manufacturer and colour theorist create new application

Neenah Paper has partnered with USA’s colour theorist Dewey Sadka to create a proprietary application to let users build custom colour palettes and view them on their iPods and iPhones.

The application – called Think Ink – uses the scientifically validated Dewey Color System and allows users to explore the psychological meanings of colour, ink and paper combinations from the aforementioned handheld devices.

According to chief executive at Papers Worldwide, Ashita

Report says e-paper is on the rise but still has disadvantages

E-paper’s use is increasing due to its paper-like properties of portability, flexibility and legibility, but it still has disadvantages to overcome before its adoption will become widespread, according to a report from Gartner.

“E-paper has some barriers to overcome before gaining credibility with the mainstream market,” said Gartner senior research director SJ Chae. “However it is generating a great deal of interest and we expect adoption to increase steadily over

APP rebuts ‘irresponsible’ charge over Indonesian logging activity

Asia Pulp and Paper (APP) has denied allegations that it plans to carry out a large-scale logging operation in a natural forest area of Indonesia

Five groups working in Bukit Tigapuluh National Park (BTNP), including the Sumatran Tiger Conservation and Protection Foundation and WWF Indonesia, said they had discovered a joint venture with APP and Sinar Mas Group (SMG).

WWF claimed the two companies had been given licence to clear a large area of natural forest, home to indigenous tribes

Mitsubishi HiTech cuts 121 jobs at German site

Mitsubishi HiTec Paper has said it is to cut 121 positions at its Bielefeld site in Germany and invest €1.6million ($2.1m) in energy-saving measures to boost production efficiency.

The specialist paper manufacturer said it was on schedule with a cost reduction and restructuring programme at its Bielefeld site, which it said would affect 121 jobs.

The company has simultaneously announced a broad range of investments to optimise energy consumption for cold generation at
the site

Paper division sold in management buyout

Arjowiggins has said it will sell its loss-making carbonless paper division in a management buyout led by an as yet unnamed existing member of staff.

The paper manufacturer said it has received interest from a number of parties for the business, which recorded revenue of €200million ($269.7m) last year, around 10% of the group’s total sales.

A far-reaching transformation plan was launched for the carbonless business in November last year. In the UK, this included the closure of

Paper prices slump due to ‘uncertain’ market

Paper prices have seen a marked decrease - with some distributors saying the current pricing level for printing and writing paper is almost 45% lower than the same time last year.

Mepco Gulf managing director, Fadi Baakhlini said paper prices had begun to fall after October last year.
“The uncertainty in the market and its psychological effect is what has contributed to the problem,” he said.

According to Baakhlini, there was a “strong demand” during the first

Heat transfer papers for desktops 2009-02-01 22

New heat transfer papers for the desktop digital printing of images for clothing made of poly, blends and other synthetic fibres have been launched.
 The papers, called JET-PRO for Active Wear Heat Transfer Paper, was developed by Neenah Paper for light fabrics with high levels of synthetic fibre and are apparently suited to the athletic wear market.
The papers are ink jet printable and, according to the company, do not crack or form a film.
Synthetic fibres have typically needed