Exports of Pulp from Brazil Climb to USD 4.1 Billion in First Half 2023; China, North America, Main Destinations

Aug. 22, 2023 - The Brazilian Tree Industry (Ibá) reported that for the first half of 2023, pulp exports from Brazil increased by 8.2%, totaling USD 4.1 billion, driven by sales to China and North America. The balance generated by pulp exports to China increased by 25.4% and to North America by 19.9% in the first half of 2023.

The value of paper exports to North America also increased by 20.8%, reaching R$ 130.8 million between January and June.

In the first half of 2023, the increase in pulp exports to China positioned the country as the main destination for exports of pulp produced in Brazil, reaching USD 1.8 billion traded in the first six months of 2023, followed by Europe with USD 1 billion.

With regard to paper, Latin America continues to be Brazil's main buyer and totaled USD 824 million in sales for the product.

In the first half of 2023, Brazilian pulp production reached 12 million tons. Paper manufacturing reached 5.3 million tons in the period. The production of paper for packaging was 2.9 million tons and for sanitary purposes 701,000 tons (an increase of 4.6%).

Paper sales in Brazil in the first half totaled 2.6 million tons. Wood panels, in turn, totaled 3.4 million m3.

Pulp exports between January and June totaled 9.1 million tons — growth of 1.5%. Paper totaled 1.1 million tons traded with other countries in the first half of 2023. Wooden panels, in turn, reached 499,000 m3 exported.

The Brazilian Tree Industry (Ibá) is the association responsible for the institutional representation of the planted tree production chain, from the field to the industry, along with its main stakeholders. Launched in April 2014, it represents 49 companies and nine state entities of products originating from the cultivation of planted trees — wood panels, laminated floors, cellulose, paper, energy forests and biomass — in addition to independent producers of planted trees and institutional investors.

Canfor Pulp Temporarily Curtailing Northwood Pulp Mill Due to Ongoing Labour Dispute at B.C. Ports

July 12, 2023 - Canfor Pulp Products Inc. is announcing the curtailment of its Northwood Pulp Mill in Prince George, British Columbia, Canada, effective July 13, 2023.

The curtailment is due to limited storage space for pulp products that cannot be transported overseas as a result of the ongoing labour dispute at B.C. ports.

The downtime is expected to remain in place for the duration of the labour dispute and will remove approximately 11,000 tonnes of market kraft pulp per week.

"We are urging the federal government to take action to bring a swift end to the labour dispute at the Ports of Vancouver and Prince Rupert,” said Kevin Edgson, President and CEO of Canfor Pulp. “As a result of the strike, we are unable to ship approximately 70% of our pulp products to customers in Asia.

"We regret that our Northwood employees are being impacted as a result of a separate labour dispute and we recognize the effect it will have on them, their families, our suppliers and the community," Edgson added.

The Northwood pulp mill has the capacity to produce 510,000 air-dried metric tonnes per year of Premium Bleached Softwood Kraft Pulp.

Canfor Pulp Products Inc. (TSX: CFX) is a leading global supplier of pulp and paper products with operations in the central interior of British Columbia. Canfor Pulp owns and operates three mills in Prince George, BC with a total capacity of 780,000 tonnes of Premium Reinforcing Northern Bleached Softwood Kraft ("NBSK") Pulp and 140,000 tonnes of kraft paper.

SOURCE: Canfor Pulp Products Inc.

UPM Permanently Cuts 485,000 Tonnes of Graphic Paper Capacity in Europe

June 28, 2023 - UPM has decided to close 485,000 tonnes of graphic paper capacity in Europe. The company permanently closes paper machine 6 at UPM Schongau, Germany, and paper machine 4 at UPM Steyrermühl, Austria. The decision is based on the plans announced in June 2022 and in March 2023.

The employee consultation process in Schongau was conducted in line with local legislations and has now been finalized. The number of persons affected is 136 for the site. The uncoated publication paper machine 6 will be permanently closed today.

UPM Schongau continues graphic paper production on the remaining cost-competitive machines.

"We held constructive and fair employee discussions to reduce the impact of the paper machine closure on our personnel. Together with the employee representatives, we focused on countering the circumstances, primarily through partial retirement measures," said Wolfgang Ohnesorg, General Manager, UPM Schongau.

"Additionally, we took the opportunity to implement structural changes to make our site fit for future challenges. I would like to express my sincere thanks to our entire workforce, which has managed to transfer all paper grades previously produced on PM 6 to PM 9 in such a short time frame," Ohnesorg concluded.

UPM Communication Papers ended the newspaper production at its Steyrermühl mill today. As already communicated in March 2023 we thereby accelerate the plans to ensure competitive production at our remaining newsprint paper machines in Europe. This decision will have no impact on the plans for the Steyrermühl site and its employees as communicated on 21 June 2022.

Ernst Spitzbart, General Manager, UPM Steyrermühl, said, "I admire the professionalism and flexibility of our employees, who are already working conscientiously to integrate UPM Steyrermühl into the Heinzel Group. The new owner will take over the responsibility for the site and thus also for the employees after the closing of the transaction is completed at the beginning of 2024."

UPM delivers renewable and responsible solutions and innovates for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood.

SOURCE: UPM

Mondi to Acquire Hinton Pulp Mill from West Fraser for USD 5 Million

July 10, 2023 - Mondi has agreed to acquire the 250,000 tonne per year Hinton Pulp mill in Alberta, Canada, from West Fraser Timber Co. Ltd (West Fraser) for a total consideration of USD 5 million.

As part of the transaction, Mondi will enter into a long-term partnership with West Fraser to access local, high-quality fibre from a well-established wood basket.

The intention, subject to pre-engineering and permitting, is to invest EUR 400 million in the expansion of Hinton, primarily for a new 200,000 tonne per year kraft paper machine, anticipated to be operational from the second half of 2027.

According to Mondi, the acquisition of the mill, and investment in the paper machine, will fully integrate operations in the Americas and enable Mondi to secure the long-term supply of high quality, cost competitive kraft paper into its network of 10 paper bags plants in the region, better positioning Mondi to support the growing market demand for industrial and mailer bags.

"Strategically, we are focused on investing to support the growing market demand for our sustainable packaging products, while delivering attractive mid-teen returns through cycle," said Andrew King, CEO of Mondi. "The acquisition of Hinton is an excellent opportunity for us to secure locally produced kraft paper for our bags customers, helping to meet the current and anticipated future growth in demand for industrial and mailer bags in the Americas.

"We are delighted to be making this investment in Canada and look forward to working with Hinton colleagues, West Fraser as a long-term partner, and other local stakeholders towards improving the mill's environmental footprint and securing its sustainable future," King added.

The acquisition is subject to customary regulatory clearance and is expected to close towards the end of 2023.

Mondi is a global leader in packaging and paper, offering innovative and sustainable packaging and paper solutions. The company is fully integrated across the packaging and paper value chain.

SOURCE: Mondi plc

IFPTA editor's note: The Hinton pulp mill has two production lines. However, in 2022, West Fraser permanently shut one of the lines and changed the pulp grade on the remaining line to produce Unbleached Kraft Pulp ("UKP") rather than Northern Bleached Softwood Kraft Pulp ("NBSK"). When both production lines were operational, the pulp mill had the capacity to produce 380,000 metric tonnes per year of NBSK.