China’s Expanding Paper Production Capacity Reshapes the Global Pulp Market

Modernisation of the power plant boiler at Sappi’ s production site in Gratkorn, Austria, is finally completed. As of now, more sustainable fuels will be used instead of coal to power the paper machines at the company’s largest mill in Europe. During a transitional phase, the new state-of-the-art boiler will run on natural gas and biomass. In the future, predominantly biomass will be used. “Our ultimate goal is to use only sustainable and renewable fuels. This will make us more independent in the future, especially in times of gas shortages and uncertainty on the energy market,” explains Sappi Gratkorn Managing Director Max Oberhumer. By entirely phasing out coal, the Gratkorn plant is making an important contribution to climate protection and reducing its greenhouse gas emissions by roughly 30 per cent. The project is a top priority on Sappi Europe’s sustainability agenda. The 35 million euro investment represents a clear commitment to the Gratkorn site and shows that climate and environmental protection are deemed pivotal in the paper industry. More information on the shift from coal to renewable resources at Sappi’s Gratkorn mill is available at: www.sappi.com/co-creating-a-shift-from-coal-to-renewables-at-gratkorn-mill

Third Quarter 2020 Results: Net sales were $1.73 billion, down 1.8%. Sales were down 1.3% ex. currency, and down 3.6% on an organic basis. Reported operating margin increased 100 basis points to 12.3%. Adjusted EBITDA margin increased 190 basis points to 16.1%, while adjusted operating margin increased 140 basis points to 13.1%. Reported net income was $1.79 per share, up 5%, and adjusted net income was $1.91 per share, up 15%, both of which were above the company’s expectations, reflecting a sales decline below the low end of its outlook range in July. Year-to-date free cash flow was $342 million, up 4.4% compared to the same period last year.

Resolute Forest Products Inc. held a ceremony to inaugurate its new commercial-scale plant for the production of cellulose filaments at its Kénogami paper mill in Saguenay, Quebec. Cellulose filaments, also known as nanofibrillated cellulose, are a novel biomaterial derived from wood fiber, which can be used as a natural additive in many products to improve technical performance. Announced in 2020, the construction of the $27 million facility was part of a $38 million investment project in the company's Kénogami mill. Remi G. Lalonde, Resolute's president and chief executive officer, led the inauguration ceremony, also attended by Andrée Laforest, Quebec Minister of Municipal Affairs and Minister Responsible for the Saguenay-Lac-Saint-Jean region, as well as by local officials, dignitaries and Resolute employees.