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12 INDUSTRY NEWS


Union continues to fight ‘unfair’ paper imports


T


he US International Trade Commission (ITC) has started its consideration into whether unfairly


traded uncoated paper imports are injuring American industry, a determination that could lead to duties. It’s the latest move in a five-


year campaign by the United Steelworkers (USW) and four paper makers to protect the domestic industry and follows the determination in January by the US Commerce Department that the dumping of coated paper is likely to continue or recur if existing tariffs are revoked. The USW says that since 2011,


eight mills that manufacture this product have shut down as a result


of dumped and subsidized imports with the loss of 2,500 jobs. USW’s international president Leo Gerard testified at the ITC’s meeting. “The USW is fighting for every job in the paper sector. These are good, family-supporting jobs that have created a path to the middle class for tens of thousands of Americans,” said Gerard. “The USW is defending these workers against unfair and illegal trade practices by companies and countries across the globe that if left unchecked would destroy the American paper industry and American jobs.” In the coated paper case, the Commerce Department extended duties charged to the heavy-weight, often glossy paper imported from


Indonesia and China. It set penalties on coated paper from Indonesia at 20.13 percent and from China at 135.84 percent. In the case of uncoated paper, the


matt-finish sheet type typically used in copy machines, the USW and four US paper companies are asking the ITC to impose penalties against unfairly traded imports from China, Indonesia, Brazil, Portugal and Australia. The USW and other petitioners claim that this paper is being dumped on the US market, which means it is sold here at a price below what it costs to produce or what it is sold for in the home country.


In addition, the USW and the paper companies are asking in this Strong year for International Paper


Industry leading manufacturer International Paper (IP) says it had a “strong” year in 2015 despite sales slipping to US$22.4 billion from $23.6bn in the previous year. Operating profit grew to $1.5bn from $1.3bn in 2014, although


business segment operating profit was down at $2.7bn, compared with $2.8bn a year earlier. “International Paper finished


the year strong with record ROIC of 11 percent, which was well above our cost of capital and the highest earnings per share in 20 years primarily due to robust performance in our NA Industrial Packaging business and from our Ilim JV,” said chief executive Mark Sutton. “As we move into 2016, we remain confident in our ability to execute well, generate strong free cash flow and deploy capital to create shareholder value.” Fourth quarter sales were down


Mark Sutton January/February 2016


at $5.4bn, compared with $5.9bn in the same period of 2014. In its financial statement for the


year, IP outlined the performance of its segments in the fourth quarter of 2015: • Industrial Packaging operating


profits were $441m compared with $553m in the third quarter of 2015. In North America, box shipments were down due to three fewer shipping days, but this was partially offset by seasonally stronger daily shipments. Volume and price for containerboard exports were also lower. Higher planned maintenance outage costs impacted earnings as well, partially offset by lower input costs. • Printing Papers operating


profits were $144m versus $179m in the third quarter of 2015. North America earnings


Leo Gerard


case for additional penalties against imports of this paper from China and Indonesia because of illegal government subsidies. The ITC will determine whether


the unfair and illegal trade caused sufficient injury to American paper companies to meet the standards required by law to impose penalties. The four manufacturers that filed the uncoated case with the USW in January of 2014 are Domtar Corporation, Packaging Corporation of America, Finch Paper LLC, and P H Glatfelter Co.


were lower mostly due to higher maintenance outage spending, costs associated with severe flooding in the Southeast, and seasonally lower sales volumes. In Brazil, earnings improved primarily due to seasonal volume increases and mix improvements. Earnings in Europe improved mainly due to lower planned maintenance outage costs. • Consumer Packaging operating


profits were $38m compared with $41m (a loss of $153m including special items) in the third quarter of 2015. In North America, higher planned maintenance outage costs and a seasonally weaker market were partially offset by lower input costs. Earnings in Europe were slightly higher due to favourable pricing, input costs and lower planned maintenance outage costs.


Pulp Paper & Logistics


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