NEWS

Sonoco said it won’t re-open its Downington, PA, recycled paperboard mill after a fire on March 20 caused $500,000 worth of damage. The company said it would cost too much to restore the mill to operation and that its 73,000-ton production capacity
was adequately covered by the incremental productivity improvements across its paper mill system. www.sonoco.com.

A report at web site www.EiTB24.com says that the 18 companies in the Basque Country’s paper industry “cluster” invested nearly 25 million Euros in 2004, 56% more than in 2003, mostly in process and environmental projects. The cluster represents all the chemical pulp producers in the Basque Country and 53% of all groundwood pulp production in the area which is in northwest Spain.

The Paperboard Mill division of The Newark Group announced a 7 to 10% price increase for all coated and uncoated grades of recycled paperboard as of June 20. It also said it was re-assessing freight, minimum order quantities, trim and cutting charges for all its customers. Newark said it could no longer continue to absorb mounting cost pressures. www.newarkgroup.com

Evergreen Pulp, Inc. is the new name of the former Stockton Pacific Enterprises mill in Samoa, CA. A subsidiary of Chinese company Lee & Man Paper Manufacturing, Evergreen is currently undergoing refurbishment but planned to start making pulp in early March.

Arkansas has given an $11.5-million tax break to its timber industry by eliminating, over three years, the 6% sales tax that pulp, paper and wood products companies pay on purchases of electricity, natural gas, bark and other fuels.

International Paper will spend about $125 million to modernize Eastover, SC, mill’s No. 1 uncoated freesheet paper machine to
enhance the quality of its paper. Eastover is one of IP’s nine US uncoated freesheet mills. Two paper machines produce white paper used primarily for envelopes, office paper and forms. A pulp machine produces market pulp. The project will be completed in 4Q05. Meanwhile, IP sold French paper merchant Papeteries de France (PdF) to Stora Enso. PdF will be part of Stora’s Papyrus merchanting division in France. www.internationalpaper.com.

 The Quebec pulp and forest products firm of Uniforet Inc. is now known as Arbec Forest Products Inc.

Abitibi-Consolidated Inc. issued lay-off notices to 56 employees at its Grand Falls-Windsor mill in Newfoundland. The mill’s operation is being restructured to include a machine shut and modernization of the other. Plans for the other mill on the island, at Stephenville, will be announced later. The Thunder Bay, ON, mill is up for sale and that at Belgo, QC, will be upgraded. www.aci.com

Boise Paper expects to increase pressure-sensitive paper production by 50,000 tons to over 150,000 tons by the end of 2006. Boise has made pressure-sensitive papers for over 30 years. Since the end of 2001, Boise has expanded production of pressure-sensitive papers by over 60,000 tons. Boise is reviewing ways and means of meeting its plans including rebuilding an existing 250-in. machine. www.bc.com. PI

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