Honeywell has bought Zellweger Analytics, a manufacturer of toxic and flammable gas detection; it re-branded the company to
Honeywell Analytics on January 1, 2006. Honeywell Analytics will be part of the Life Safety business unit of Honeywell’s Automation and Control Solutions (ACS) division. www.honeywellanalytics.com.

The Coalition for Fair Lumber Imports is suing the President of the United States and Congress, accusing them of violating the constitution when they “outsourced” the control of US laws to settlement panels under the North American Free Trade Agreement. The panels include representatives from each of the NAFTA countries, the US, Canada and Mexico. Meanwhile, Canfor Corp. of Vancouver, BC, has bought New South Companies Inc., Myrtle Beach, SC. New South is a member of the Coalition; Canfor is one the Canadian companies fighting the duties and tariffs imposed on Canadian softwood lumber. Myrtle Beach is a very popular vacation spot for Eastern Canadians.

Domtar workers at the Lebel-sur-Quevillon mill in Quebec are ready to discuss a returnto-work scheme including contract concessions. The mill was shut on Nov. 24, 2005; the contract expired in early 2004. The company seeks a 30% cut in labor costs including cutting 120 workers at the pulp mill. www.domtar.com.

In February, Cascades Inc. sold its paper merchant division known as Cascades Resources, the distribution activities of its Fine papers segment, to Coast Paper Ltd., a subsidiary of PaperlinX Ltd., for about $C85 million cash. Cascades had to record an estimated loss of $C9 million ($C7 million after-tax) to bring the book value of the net assets to be sold to their net realizable
value. It sold its tissue distribution business Wood Wyant in June 2005. www.cascades.com.

In 2003, Cascades Resources became the subject of an inquiry by the Canadian competition authorities on charges that the division and its competitors had colluded to reduce market competition between paper merchants in Canada. On January 9, 2006 Cascades pleaded guilty in Ontario Superior Court in relation to sales in Ontario and Quebec of carbonless sheet paper. Cascades has agreed to pay a total of $12.5 million, payable in equal installments over six-and-a-half years, starting in January 2008. In 2005, $C10 million was recorded in earnings representing the discounted amount of the liability shown as other liabilities in the balance sheet. www.cascades.com.

Catalyst Paper Corp. is completing an $C8.3-million installation of sawdust screening equipment at its Elk Falls division. It is also expanding – to the tune of about $C5.1 million – the bleaching capacity at Powell River. The expansion will let the company replace 36,000 tonnes of newsprint with higher-value uncoated specialty products. It will undertake its fifth consecutive annual performance improvement program in 2006. With a target of $C70 million, the PIP will focus on energy, productivity improvement and grade optimization. Catalyst surpassed its 2005 PIP goal of $C80 million by $C4 million. www.catalystpaper.com.