PAPER CLIPS

Pulp & Paper, Mar 2008

BRIEF NEWS AND REVIEWS FROM AROUND THE INDUSTRY

* Appleton Papers, North America's largest carbonless and thermal paper maker, announced a deal outside papermaking that stems from the firm's long-time knowledge of coating chemistries and producing carbonless paper. Appleton signed an agreement to supply Procter & Gamble (P&G) with microencapsulated specialty chemicals for microencapsulating the fragrance for P&G's Downy liquid fabric softener. Appleton's first technical development partnership with P&G includes a multiyear collaboration to co-develop applications for Appleton's microencapsulation and chemical formulation capabilities. "We are excited about the opportunities to explore new markets and develop relationships beyond the paper industry where we can leverage our core competencies. Our goal is to be the partner of choice for technology collaborations related to microencapsulation," said Appleton vice-president of marketing and strategy Kent Willetts, in a release. Appleton said it used coating chemistries to help NCR achieve the first commercial application of microencapsulation with the launch of carbonless paper in 1954.

* Sonoco signed a letter of intent to acquire VoidForm International, a privately held maker of fiber-based concrete construction void forms. Terms were not disclosed. Founded in 1996 and based in Winnipeg. MB, VoidForm makes lightweight and biodegradable void forms out of corrugated with a thin wax coating for the construction of cast-in-place concrete foundations "where expansive soils are present," Sonoco said in a release. The VoidForm product fits with Sonoco's Sonotube concrete forming system.

* Canfor's 295,000-tonne/yr pulp and paper mill in Prince George, BC, where a fire caused the shut of the facility's market pulp production on January 17, will remain down for five weeks, the company said. Canfor Pulp estimated the mill is shedding around 443 tonnes/day and will lose about 28,000 tonnes of pulp output during the downtime.

BRIEF NEWS AND REVIEWS FROM AROUND THE INDUSTRY

* Domtar's idle Prince Albert, SK, pulp mill, which was expected to eventually make about 300,000 tonnes/yr of market pulp but then saw the Saskatchewan government terminate a memorandum of understanding (MOU) that would have helped finance the mill's redevelopment, is "not necessarily dead," industry contacts told Pulp & Paper Week. The Saskatchewan Party objected to the agreement's provision of up to $99 million in direct government investment, including $32.5 million in direct grants, scuttling the MOU. The province's Energy and Resources Minister Bill Boyd met with a Domtar official to discuss the fate of the mill, saying that the talks were "constructive" and "productive," according to The Star Phoenix newspaper.

* With eyes on gaining a big share of Tembec, Jolina Capital presented a counter-proposal to the company's recapitalization plan that calls for an infusion of an additional C$371 million in cash to Tembec. The additional $371 million derives from C$150 million in secured debt and C$221 million in new equity. Tembec's board of directors put forward its plan in December. Tembec shareholders and bondholders vote on a plan on February 22. If the Jolina Capital proposal had been accepted, Jolina Capital would have a 50% stake in Tembec. Jolina Capital manages a 19% equity stake in Tembec and is a holding company controlled by Emanuele Saputo.

* Rock-Term will shut its fifth folding carton plant in the last three years when the Chicopee, MA, plant closes down, the company said. About 110 workers lose their jobs at the more than 25-year-old plant, according to a report in The Republican in Chicopee. "As business has moved out of New England the supply base has typically moved, " said Rock-Tenn executive vice president for the folding carton division Michael Kiepura. Rock-Tenn has 25 folding carton division plants throughout the US and Canada. The other four carton plants closed in the past three years were in California, Georgia, North Carolina and Texas. Rock-Tenn plans to sell both the 155,000 ft^sup 2^ carton plant in Chicopee and the facility's 30 acres of land.

BRIEF NEWS AND REVIEWS FROM AROUND THE INDUSTRY

* Catalyst Paper said first quarter newsprint production at its Elk Falls, Campbell River, BC, mill would fall about 38,000 tonnes because of the continuing idling of a paper machine. PM 1 shut September 1 because of Canada's coastal fiber strike, but has since been hit buy a shortage of sawdust finish from sawmills impacted by weakening US lumber markets.

* Domtar, International Paper (IP), Mondi, M-Real, Suzano and APRIL were among the uncoated f reesheet paper producers supporting Hewlett Packard's (HP) ColorLok Paper Standard. These companies expect to be producing the HP paper this year. "The benefits of ColorLok papers include bolder, sharper images, faster dry times, and improved reliability across a range of printing devices. HP expects that a significant portion of the world's uncoated office papers will meet the standard by 2009," according to an HP release. "Papers that use the ColorLok logo must pass a concise set of standards for print quality, as well as physical and electrostatic standards for quality and reliability." The Rochester Institute of Technology - Printing Applications Laboratory will confirm that papers meet the standard. As of this month, the branded papers with the ColorLok logo include: HP Everyday Papers (InkJet and multipurpose); Worldwide; IP's Hammermill Papers in North America; and IP's Duo in the UK and Germany, Pol in Poland and Central Europe and Rey in Western Europe. Further information about the ColorLok Paper Standard is at www.colorlok.com.