Pulp Paper & Logistics
INDUSTRY NEWS 9
province as a whole,” said Oneil Carlier, Alberta Minister of Agriculture and Forestry. Although West Fraser will
develop the use of lignin as a natural adhesive in its engineered wood products, other potential applications include bio alternatives to petroleum- based chemicals, thermoplastic composites, and packaging and fuels. Ted Seraphim, chief executive
of West Fraser, said the company recognizes the strategic importance of continuing to develop the company in a manner that fully utilizes the forest resource. West Fraser has been at the forefront in bioenergy and bioproduct development in Western Canada and the lignin project is the next step. “Lignin is an opportunity to
(AI Bio) awarded West Fraser a C$3-million innovation grant. The provincial portion was leveraged with investments from West Fraser and federal government sources, including Natural Resources Canada and Sustainable Development Technology Canada. AI Bio’s funding agreement with
West Fraser includes a provision for the company to contribute $1.5 million into a ‘lignin research fund’. “Innovation can open new
markets and commercial opportunities for our forest industry, which plays a crucial role in further diversifying our economy and strengthening our rural communities and the
expand our product line and recover the maximum value from our fibre and our manufacturing process,” Seraphim said. “This technology has the potential to be a new product offering for all pulp mills in Canada. In addition, it is a sustainable choice. Every tonne of lignin substituted in phenol- formaldehyde resin prevents a tonne of carbon dioxide emissions from entering the atmosphere,” he said.
Lignin is the natural compound in
trees that gives wood its strength. It is one of the most abundant organic polymers on Earth. Pulp mills usually burn the ‘black liquor’ as a fuel source for the mill. West Fraser will divert a portion of the black liquor and extract high-purity lignin using a proprietary process developed in Canada with FPInnovations and NORAM Engineering, called the LignoForce System. The Hinton facility is the first commercial- scale implementation of this new technology.
Profits up at Mondi Group
The South African-based Mondi Group reported that its underlying operating profit for the first quarter of 2016 was €269 million, some 14 per cent higher than in the same period a year ago, and 9 per cent up on the final quarter of 2015. It said that this was due to strong
contributions from its Consumer Packaging, Uncoated Fine Paper and the South Africa Divisions which more than offset the impact of lower selling prices in certain Packaging Paper segments and margin pressure in Fibre Packaging. On a like-for-like basis, sales
volumes were in line with last year, with lower volumes in the industrial bags segment offset by good growth in Consumer Packaging. Wood and chemical input costs
were at similar levels to last year while paper for recycling costs were up 15 per cent, but broadly unchanged from the fourth quarter of 2015. Energy costs were lower, driven
by generally lower raw material input costs and the benefits from the green energy investments at Swiecie, Poland, completed in the second half of 2015.
Pulp business acquisition to bolster IP’s portfolio
International Paper (IP) has agreed to buy Weyerhaeuser’s pulp business for US$2.2 billion. IP will acquire five pulp mills and two converting facilities in North America and Europe that produce fluff pulp, softwood pulp, and speciality pulp for a number of consumer applications including diapers, other hygiene products, tissue, and textiles. IP expects annual savings of about $175m by the end of 2018, with one-off costs of $85m. Because the deal is an asset purchase IP expects a tax benefit of $300m. IP says the combined business will provide it with the flexibility to manage a wide portfolio of products to meet customer needs. “Weyerhaeuser’s pulp business has an outstanding customer base
served from low-cost, well-run assets that complement our existing system and offers significant synergy opportunities,” said Mark Sutton, chairman of International Paper. “This transaction will position us as the premier global supplier of fluff pulp and will enhance our ability to generate additional free cash flow. We look forward to working with the talented employees of Weyerhaeuser as we integrate our businesses and create an even stronger company.” Weyerhaeuser’s pulp business employs 1,900 staff throughout the US (Mississippi, Georgia, North Carolina), Canada and Poland. The acquisition is expected to close in the fourth quarter of 2016, subject to certain conditions, primarily the receipt of regulatory approval.
May/June 2016
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