President and CEO Ilkka Hämälä: The economy continued to be weak in the third quarter of 2024. In the wood market, trade was normal, and prices remained at a record high, compared with figures across the last two decades. A high cost level combined with low demand across the board resulted in a weak result for the third quarter. The quarterly result was significantly improved by the business interruption insurance compensation for the accident at the Kemi bioproduct mill, which was allocated to the first half. Negotiations on the final insurance compensation are still underway, but EUR 67 million in compensation was recorded for the third quarter. The slowdown in the construction industry continues, and there are no signs of a change in the demand for sawn timber and plywood. Demand for Kerto® LVL has remained strong, proving the product’s competitiveness in construction industry solutions. In China, the pulp market picked up in September, and prices began to gradually increase in softwood pulp trade. Demand remained stable in the European pulp market even though prices continued to decrease, still remaining higher than the price level in Asia. In Europe, the paperboard market continues to be affected by Asian paperboard imports to regions neighbouring the EU such as Türkiye. In the US, the market situation has remained slightly stronger than in Europe. As is typical of consumer products, demand for tissue papers has been stable, and profitability has remained at a reasonable level.

Paper Excellence is pleased to welcome Doug Routley, MLA for Nanaimo – North Cowichan and Parliamentary Secretary for Forests to its Catalyst Crofton mill today to see how the recently awarded $5.85 million of CleanBC funding will impact the operation. Catalyst Crofton’s GHG emission reduction project is a combination of three process improvements that will result in a significant reduction in total steam energy demand, resulting in decreased natural gas usage at the mill. The three areas of focus for this project are: 1. Re-engineering an unused diffusion washer with state-of-the-art diffusion washing technology to maximize the black liquor fuel quality while using less steam energy. 2. Investing in fibre filter equipment to remove valuable wood fibre from the black liquor fuel and increase the efficiency of the evaporation process. 3. Automate the cleaning process of Evaporator #3 to improve steam efficiency through reduced evaporator downtime.

Interfor Corporation recorded net earnings in Q3’20 of $121.6 million, or $1.81 per share, compared to $3.2 million, or $0.05 per share in Q2’20 and a net loss of $35.6 million, or $0.53 per share in Q3’19. Adjusted net earnings in Q3’20 were $140.0 million compared to $10.6 million in Q2’20 and an Adjusted net loss of $11.8 million in Q3’19. Adjusted EBITDA was a record $221.7 million on sales of $644.9 million in Q3’20 versus $42.8 million on sales of $396.8 million in Q2’20.