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The PM40 closed Friday, 3 May 2024, at 5517.

Get the latest PM40 updates by listening to the weekly Nips show and the PM40 Daily Show on Pulp & Paper Radio International.

The PM40 closed 3 May 2024 up 13.5% from the 5 May 2023 level.

In this issue of Disconnected Comparisons, we evaluate Nine Dragons and PCA.

Reported insider trading since the last issue of PaperMoney.

Between controversies over pricing and major mergers, containerboard is entering some very interesting times. The Smurfit Kappa and WestRock pairing (some say merger, some say takeover) and the International Paper purchase of DS Smith are going to have serious repercussions on the US and European markets.

The target of the investment is to reduce warp waste, improve corrugated board quality and production efficiency.

International technology group ANDRITZ successfully completed the upgrade of the combustion system on a through-air drying (TAD) tissue machine at the paper mill of Essity in Prudhoe.

In a pilot project, Felix Schoeller's logistics partner NOSTA Group is now supplying the plant with fully electric power.

Doug Wall, Vice President Global Sales, is pleased to announce that Paprima has secured two new strategic international orders for our industry-leading Reel-Jet™ S Water-Jet Turn-Up System.

Enmac's largest customers include Valmet, Andritz, Kemira, Metsä Group and Fortum.

The delivery is scheduled for Lecta's annual shutdown in April 2025.

The scheduled delivery period will be during the Q2 2024.

Canfor Pulp Products Inc. and Canfor Corporation jointly released their 2023 Sustainability Report. The report highlights the companies' environmental, social and governance (ESG) activities and tracks performance against established goals.

Ahlstrom introduces a new dual-layer filter media technology, available globally, that represents a leap forward in filtration and is a perfect solution to comply with future market needs.

Essity continues its purpose to break barriers to well-being by joining the Unstereotype Alliance, a thought and action platform convened by UN Women, with the mission to eradicate harmful stereotypes in media and advertising content.​

Georgia-Pacific's Albany Lumber has produced its 1 billionth boardfoot. The record-setting board rolled off the production line on April 18, just four years after the facility opened in 2020.

Graphic Packaging has announced a collaboration with UK-based food producer Pilgrim's Food Masters (Pilgrim's) that has resulted in a range of PaperLite™ trays being placed on the shelves of a major UK food retailer for a range of cooked, sliced meats.​

As shoppers' preferences and environmental regulations evolve, consumer brands are reshaping their offerings faster than ever. Graphic Packaging has bolstered its innovation efforts to meet the demand for agile delivery. With investments in technology and specialized talent, Graphic Packaging has grown its innovation capability to encompass eight Innovation Hubs and 120 employees, driving around 3,000 patents.​

UPM has extended its partnership with the leading global platform and community for packaging design Pentawards to highlight the role of designers in co-creating a future beyond fossils. In 2024, UPM is one of the main sponsors of Pentawards and sponsors the Sustainable Design category in the Pentawards competition.​

The 2024 Greenovation Awards recognize companies for demonstrating sustainability leadership and reducing environmental impact.

Honoring the 26th president, the library will utilize locally sourced and renewable materials, including mass timber.

The new offering will integrate all of Quad's creative business lines to uniquely combine its boutique tactics, unmatched 24/7 global production power and commitment to delivering smart, scalable ideas, powered by an in-house network of talented strategists, creatives, content makers, and production and post-production experts.​

The company's anniversary marks an opportunity to reflect on its continuous growth and evolution.

Sun Chemical announces its ongoing collaboration with packaging solutions company, Cardbox Packaging. Sun Chemical is supplying Cardbox with SunPak® FSP EcoPace sheetfed, low migration inks for high productivity, high speed folding carton printing and for its SunHub compact ink dispenser at their Austria site.

A high quality, efficient solution that minimizes the volume of process waste.​

The FENIX™ Bio Locking Tag represents a renewable alternative to petroleum-based products, using up to 88% fewer fossil fuel-based plastics than traditional plastic options. These plant-based horticulture tags enable WestRock customers to achieve plastic-reduction goals while ensuring critical functionality in greenhouse, nursery and retail environments.

Kimberly-Clark raised 2024 sales and profit forecasts after it topped quarterly expectations, banking on higher pricing and steady demand for its premium personal care and household products, sending its shares about 8% higher in early trading.

In 2023, North America's net sawmill capacity decreased by 2%, triggered by diminishing lumber demand and past overproduction issues, according to a report by Russ Taylor Global. This trend has led to the permanent closure of nine sawmills and reductions in shifts, particularly in British Columbia (BC) and the US South, where economic pressures have also forced mills to shut down to balance timber supplies.

This increase is necessary to maintain the viability of Sappi's business, the actual amount will depend on the product group: Flexible packaging - 15%, Release liner (CCK & Glassine) - 15%, Label papers - 10%.

Given the market conditions and macro-environment, the first quarter result is in line with expectations. The result reflects the weak trend in construction activity and decreased supply in the raw material market.

Sonoco announced it is implementing a 6% price increase for tubes and cores products sold in Mexico starting with May 2024 deliveries.

The Board of Directors of Sonoco increased its quarterly common stock dividend to $0.52 per share from the previous quarterly distribution of $0.51 per share. This new dividend will be paid on June 10, 2024, to shareholders of record as of May 10, 2024.

Company says it is seeing early financial benefits from recent closures of some of its lumber mills.

The two companies first joined forces when BOBST and its partners developed a high-barrier, paper-based, recycle-ready solution, which Huhtamaki validated by making it into a full customer ready solution on commercial scale equipment for the first time.

Metsä Group has entered into an extensive cooperation with international technology group ANDRITZ to conduct a pre-study for the first possible commercial mill producing the Kuura textile fiber.

In the face of an unprecedented historic wildfire season, Rayonier's fire crews united across state lines to fight wildfires in the Southwest U.S.

A Federal Court of Appeals revives a portion of a lawsuit accusing former Appvion officials of inflating the company's value before it went bankrupt. The lawsuit was filed in 2018 by Appvion workers that were involved in the company's Employee Stock Option Plan.

Nine survivors of a deadly 2017 paper mill explosion in DeRidder, Louisiana have won a record $141 million award for the Middle District of Louisiana in a lawsuit filed after the fatal blast at the Packaging Corporation of America mill.

Visy Board Pty Limited (Visy) was fined $375,000 after the NSW District Court handed down its findings earlier this month.

Eldorado Brasil Celulose has launched a significant R$25 ($4.81) billion investment for a new production line in Três Lagoas, Mato Grosso do Sul.

CMPC has signed a deal with Brazil's southernmost state of Rio Grande do Sul to evaluate building a new pulp plant there, which would require $4 billion in investments.

Muskogee's largest private employer, Georgia Pacific announces a $50-million expansion at its port of Muskogee mill. This is a big deal not just for Georgia-Pacific - but also for the port and city where the company continues to make big investments.

The enhancement will increase the mill's folding boxboard output by approximately 10,000 tonnes annually, raising its total capacity to around 310,000 tonnes.

Once fully operational, the two new plants will employ approximately 120 people in the community where Roseburg was founded nearly 90 years ago.

Sappi Europe, a major producer of coated fine paper, recently announced the successful completion of the second phase of a three-part modernisation project at its Gratkorn Mill in Austria.

Suzano Ventures, the corporate venture capital arm of Suzano, the world's largest market pulp producer, is funding up to US$5 million for Canadian startup, Bioform Technologies.

Two Rivers Lumber Co. LLC plans to invest $115 million to build a state-of-the-art sawmill in Coosa County as the company's second operation in Alabama. Demopolis-based Two Rivers Lumber has committed to creating 130 jobs at the new Alabama sawmill, which will specialize in the production of Southern Yellow Pine dimensional lumber, the Alabama Governor's Office reports.

Canfor Corp. says it has signed a deal with an affiliate of Domtar Corp. to buy its El Dorado lumber manufacturing facility in Arkansas for US$73 million.

At the time of closing, the cash provided included the previously disclosed transaction amount of $538 million, an additional $38 million as a ticking fee to reimburse the seller for Greif's profits, standard adjustments for debt and cash, and the effect of foreign exchange rates.

Expected to Achieve Significant Synergies of At Least $514 Million

Mondi will not make an offer to buy DS Smith, it said on Friday, bowing out of the battle after its UK peer agreed to a 5.8 billion pound ($7.21 billion) deal with International Paper earlier this week.

Nine Dragons, Inc. (ND Paper) and Billerud Wisconsin LLC (Billerud) closed on an Asset Purchase Agreement, whereas ND Paper will own and operate Billerud's Wisconsin Water Quality Center (WQC) and associated landfill and F&E landfill assets.

Plans call for debt restructuring; bids due in June.

Transaction further advances Twin Rivers' focus on core specialty papers business.

Veritiv Corporation, a leading specialty distributor of value-added packaging, facility solutions and print products and solutions, announced that it has acquired substantially all the assets of Ameripac, LLC, and Ameripac Pennsylvania, LLC ("AmeriPac") a leading provider of turnkey contract packaging and fulfillment services with annual revenues of approximately $60 million.

West Fraser Timber Co. Ltd. announced that the Company has completed the sale of its Quesnel River Pulp mill, and its Slave Lake Pulp mill to an affiliate of a fund managed by Atlas Holdings following completion of customary regulatory reviews and satisfaction of customary closing conditions.

The Board assumed directorship on March 20, 2024.

Mativ Holdings, Inc. announced it has appointed Dr. Kimberly E. Ritrievi as Chair of the Board of Directors, succeeding Dr. John D. Rogers, who will continue to serve as a director of Mativ and will assume the role of Audit Committee Chair.

Beate Flamm joined the Board of the containerboard and corrugated sheetboard manufacturer Progroup. She is responsible for the areas of human performance management (personnel), communications and marketing, and corporate social responsibility.

Rayonier Advanced Materials Inc. (RYAM) is announcing that, effective July 2, 2024, it will suspend operations at its Temiscaming High Purity Cellulose (HPC) plant for an indefinite period.

Ahlstrom is simplifying its divisions from five to three: Filtration and Life Sciences, Food and Consumer Packaging, and Protective Materials.

The decision affects 93 employees.

The University of Maine is progressing in several different research initiatives.

The Paper Excellence mill in Howe Sound was the company's second B.C. facility in four months that has been penalized for contaminating the environment.

Stora Enso's Skutskar biomaterials production site in central Sweden focuses on the production of fluff pulp for absorbent products such as diapers and other daily needed hygiene products, as well as producing innovative biomaterials using all parts of a tree.​

The Tennessee Department of Environment and Conservation has fined Domtar $64,650 for violating its water discharge permit multiple times in the months following startup of its new Kingsport recycled packaging facility.

Consolidated forest tenure comes under control of Lake Babine First Nation.

Project aims to sell energy to N.B. Power, but no agreement yet.

The new certification covers the entire supply chain and guarantees the traceability of raw material, thus validating the Company's commitment to responsible and sustainable forest management, environment conservation and social and ethical values. PEFC is a global alliance that recognizes national certification systems, aligned with best forest protection practices.

Rayonier Advanced Materials Inc. is pleased to announce the successful shipment of our first production of 2G bioethanol from our Tartas plant, following two years of rigorous research, development, construction, and planning.

The transition to the molded fiber tray means a significant reduction in carbon dioxide emissions in the long term. By replacing a polystyrene tray with a wood fiber tray, CO-2 emissions are reduced by up to 81%.

UPM Plywood and the Finnish railway operator VR have agreed that VR will replace the fossil diesel it uses with biodiesel to the same extent as the biodiesel used to transport plywood from the UPM Pellos mill in Finland. The agreement, together with a more efficient operating model, will reduce the total emissions of WISA® plywood transport in Finland by 24 percent.

The Bousbecque plant in the north of France focuses on producing parchment specialty materials. There is overcapacity in parchment and increasing competition. The plant has an annual capacity of approximately 12,000 tons and has 117 employees.

Chris joined Boise Cascade in 2005 and was promoted to his most recent role of Senior Finance Director in March 2022, where he has led the tax, financial reporting, accounts payable, and financial systems teams. He has also been a key contributor to the investor relations and M&A efforts for the Company.

Kelly Trumbo, communications manager with International Paper, confirmed there was an incident on-site Wednesday evening where a team member was injured and transported to a local hospital.

The situation of Heinzel Group subsidiary Raubling Papier GmbH in Germany continues to be characterized by a persistently difficult market environment and challenging economic conditions.

The temporary curtailments will impact all of Interfor's operating regions, including the US South, through a combination of reduced operating hours, prolonged holiday breaks, reconfigured shifting schedules and extended maintenance shut-downs.

At present, the maintenance of the company's plywood and Kerto LVL mills has been outsourced to the industrial maintenance company Quant.

Firefighters were dispatched at 9:25 p.m. Monday to an area between the lagoon and the mill where 15 refrigerator-sized bales of cardboard were on fire, according to a Port Angeles Fire Department press release.

Rich is based in Illinois and has worked for Resolute Forest Products, Progressive Converting, Pactiv Evergreen, and Liberty Packaging representing coated, uncoated, packaging, and specialty papers.

Södra's election committee now presents its proposal for the board and chairman. Magnus Hall is proposed to be re-elected as chairman of the board and Håkan Larsson is proposed to be elected as a new member of Södra's board.

UPM Raflatac's RafCycle™ recycling service recently won the 2024 Innovator Award for Innovation in a Recovery Technology or Practice at the Sustainable Packaging Coalition (SPC) Impact event.