Holmen Board and Paper gains high production flexibility after ANDRITZ starts up rebuilt paper machine

Following extensive analysis of its operating footprint and the long-term supply of economic residual fibre, Canfor Pulp Products Inc. (TSX: CFX) is announcing the decision to permanently close the pulp line at its Prince George Pulp and Paper Mill, which will result in a reduction of 280,000 tonnes of market kraft pulp annually. The Specialty Paper facility at the site will continue to operate. “In recent years, several sawmills have permanently closed in the Prince George region due to reductions in the allowable annual cut and challenges accessing cost-competitive fibre. This has had a material impact on the availability of residual fibre for our pulp facilities and we need to right-size our operating platform. As a result, we have made the very difficult decision to shut down the pulp line at Prince George Pulp and Paper Mill and will continue to operate the Specialty Paper facility,” said Kevin Edgson, President and CEO, Canfor Pulp. Over the next few months, the Company will be following an orderly wind down process. The pulp line is expected to close by the end of the first quarter of 2023 and is anticipated to impact approximately 300 positions across the organization by the end of the year.

Ahlstrom, a global leader in fiber-based specialty materials, operates 15 manufacturing facilities around the globe to support filtration customers in every region.  Over the past few years, Ahlstrom has developed a range of filtration materials with the same level of quality in North America, Europe, and Asia. This provides customers with security of supply, agility, and a more effective and sustainable supply chain. The high-quality filtration materials manufactured in each region are suitable for all engine applications, including air, oil, and fuel, as well as for a wide range of industrial uses such as gas turbines, dust collectors, and liquid filtration.

Net sales increased $6.7 million, or 18%, in the third quarter of 2017 compared to the second quarter of 2017. The increase in net sales principally reflects the continuing ramp-up of new business, which began to be produced and shipped late in the second quarter of 2017. Converted product net sales increased $7.2 million, with $6.9 million of the increase attributable to increased volume and $0.3 million due to an increase in the average selling price. Parent roll sales decreased $0.5 million, reflecting the utilization of increasing mill capacities to service new converted-product business. Cost of sales increased $5.5 million, or 15%. Standard cost of sales increased $4.2 million, or 15%, consistent with the change in sales. Major contributors to the remaining $1.3 million increase in cost of sales include: approximately $0.9 million of increased freight cost based on changes in customer and geographic distributions; approximately $1.0 million of increased material costs, principally for virgin fiber; approximately $1.2 million of increased overhead costs not yet covered by production and sales at the new Barnwell, South Carolina facility; and other factors such as inventory obsolescence resulting from changes in customers' product lines and certain manufacturing efficiency variances. Partially offsetting these noted changes in costs were: approximately $1.3 million of variances were capitalized that were directly attributable to preproduction test runs necessary to get Barnwell's new equipment ready for its intended use, and Pryor's absorption variance improved by approximately $0.6 million. Click Read More below for additional information.