Pulp Paper & Logistics


INDUSTRY NEWS 5


Andritz to buy machine clothing leader Xerium


A


ustria-based technology giant Andritz has agreed to acquire US-


based paper machine clothing manufacturer Xerium in a deal worth around US$833 million. The cash deal, which includes financial liabilities of $590m, is


expected to be completed in the second half of 2018, subject to regulatory approvals. Based in Youngsville, North


Carolina, Xerium manufactures machine clothing (forming fabrics, press felts, drying fabrics) and roll covers for paper, tissue, and board machines,


including maintenance and aftermarket services. It has around 2,850 employees at more than 28 facilities worldwide and last year its sales were $481m. President of Andritz Wolfgang Leitner commented: “With Xerium, we will be acquiring a high-tech global supplier


providing essential services and wear parts to the paper industry. The acquisition fits squarely with our long-term strategy to execute complementary acquisitions and to grow our aftermarket business with its stable source of revenue and earnings.”


Sun Paper close to gaining approval for Arkansas paper mill


Concerns that the Chinese government could introduce restrictions on highly-leveraged projects in the US in response to President Trump’s tariff proposals have heightened efforts to complete the preparatory work on Sun Paper’s $1.8 billion paper mill in South Arkansas. Mike Preston, an executive with Arkansas’s Economic Development Commission (AEDC) recently met bosses at Sun Paper in Shangdong Province where the size of the project was increased and switched to


producing linerboard. The AEDC said the switch


was made to keep up with the demand for cardboard boxes, in part due to the increase in next- day delivery and online shopping. That also led to a delay in the Sun Paper’s protracted environmental permitting process with the state Department of Environmental Quality.


AEDC spokeswoman Brandi Hinkle said the Chinese paper maker is close to completing the last of four permit applications that must be approved by ADEQ


before construction can begin on the South Arkansas project. At a press conference in June,


Governor Asa Hutchinson said that Preston’s trip was partly to shore up concerns that the Chinese trade officials had with President Donald Trump’s “escalating rhetoric” to impose around $200 billion in tariffs on imported goods from China. Beijing government officials


have also recently put some restrictions on large, heavily- leveraged projects by Chinese companies in the US.


“That’s what we are looking


at carefully as to what impact the tariffs have on the cost of developing and continuing those investments,” said Hutchinson. “We have been assured by Sun Paper that they are fully committed to the project [although] there is some concern about the tariffs. But that was part of the discussion with the [Chinese] trade ambassador that hopefully we worked through those issues.” More about Sun Paper in China: see page 16.


Another EcoVadis gold rating for Metsä Board


Metsä Board, which produces premium fresh fibre paperboards in Europe, has been awarded the Gold level rating by EcoVadis for the second year for its approach to sustainability and corporate social responsibility. Overall, Metsä Board was


ranked in the top one per cent of suppliers assessed by EcoVadis


across all categories. “This is a significant achievement, as the EcoVadis assessment is becoming an increasingly important guide for our customers when judging their suppliers’ sustainability and corporate social responsibility performance. We recognise that sustainability must go


beyond regulatory compliance to also focus on how companies manage their economic, social, and environmental impacts, as well as their relationships with stakeholders such as customers, employees, suppliers and government,” said Anne Uusitalo, director of product safety and sustainability at Metsä Board.


Anne Uusitalo, director of product safety and sustainability at Metsä Board


July/August 2018


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