Georgia-Pacific to Close Its Cedar Springs Containerboard Mill in Georgia

May 14, 2025 - Employees at the Cedar Springs Containerboard mill in Georgia were told today that Georgia-Pacific plans to permanently close the operation later this year. Most positions will be eliminated by August 1, 2025.

In a written statement, Georgia-Pacific said, “Various factors influenced this difficult decision. Ultimately, we do not believe that the mill can competitively serve our customers in the long term. This decision has nothing to do with the quality of work of Georgia-Pacific’s employees at the Cedar Springs mill.”

Georgia-Pacific did not disclose the annual capacity of the mill.

Approximately 535 jobs will be impacted by this closure.

The company continued, “Production will continue for a limited time as the site works to fulfill customer commitments. Georgia-Pacific’s focus in the coming weeks and months is to continue to safely operate while supporting our employees during the transition. Georgia-Pacific is committed to treating all Cedar Springs employees with dignity and respect and will work with them to provide access to local support agencies and job placement resources, including available opportunities within Georgia-Pacific or other Koch companies.”

Currently, Georgia-Pacific has containerboard mills in Brewton, Alabama; Cedar Springs, Georgia; Palatka, Florida; Monticello, Mississippi; Toledo, Oregon; and Big Island, Virginia.

Based in Atlanta, Georgia-Pacific and its subsidiaries are among the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, cellulose and building products. The company operates more than 150 facilities and employs approximately 30,000 people directly and creates more than 80,000 jobs indirectly.

SOURCE: Georgia-Pacific

Canfor Pulp Reports Results for the First Quarter of 2025

May 8, 2025 - Canfor Pulp Products today reported its first quarter of 2025 results.

Overview

Q1 2025 operating income of $11 million; net income of $6 million, or $0.09 per share.

Market fundamentals saw modest improvement early in the quarter; however, this momentum weakened later in the period with rising global economic and trade uncertainty.

6% increase in pulp production during Q1 2025 (versus Q4 2024) primarily due to improved operating reliability.

Financial Results

The Company reported an operating income of $10.8 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024. These results were largely driven by a modest uplift in the Company's average Northern Bleached Softwood Kraft ("NBSK") pulp unit sales realizations in the current quarter combined with a 6% increase in pulp production compared to the fourth quarter of 2024.

CEO Comments

Commenting on the Company's first quarter results, CPPI's President and Chief Executive Officer, Stephen Mackie, said, "With improved operational performance and some positive momentum in market conditions early in 2025, we are pleased to see another quarter of positive results for our pulp business.

“Despite the increase in results, however, global economic uncertainty influenced pulp market conditions in the latter part of the first quarter and continues to do so early in the second quarter. Going forward, we will work to navigate these external challenges facing our business while focusing on improving safety, reliability and overall operating performance."

First Quarter Highlights

Global softwood pulp market fundamentals experienced some positive improvement during the first quarter of 2025, with modest strength observed early in the quarter, particularly in China, as global pulp producer inventory levels began to stabilize. As the quarter progressed, however, this momentum diminished as global economic and trade uncertainty rose. As a result, US-dollar NBSK list prices to China, the world's largest pulp consumer, started the year at US$770 per tonne and saw a modest increase through the current period, ending March at US$798 per tonne. For the current quarter overall, US-dollar NBSK pulp list prices to China averaged US$793 per tonne, up US$26 per tonne, or 3%, from the prior quarter.

As a result, the Company's average NBSK pulp unit sales realizations experienced a modest increase compared to the previous quarter, principally reflecting this improvement in US-dollar NBSK pulp list prices to China, coupled with a 2 cent, or 3%, weaker Canadian dollar in the current period, offset to a degree, by an unfavourable timing lag in shipments versus orders.

Pulp production was 104,000 tonnes for the first quarter of 2025, up 6,000 tonnes, or 6%, from the fourth quarter of 2024, primarily driven by improved operational reliability and productivity at both of the Company's pulp mills in the current period.

Operating income in the Company's paper segment was $5.4 million, compared to $5.1 million in the previous quarter, largely driven by the benefit of favourable timing of shipments around quarter-end as well as the weaker Canadian dollar in the current period.

Outlook

While global pulp demand and pulp producer inventory levels are currently stable, looking ahead, global softwood pulp markets are anticipated to remain subdued as increasing uncertainty associated with economic concerns and potential trade disruptions weigh on market conditions.

While the Company continues to monitor the trade situation between Canada and the US and is prepared with mitigation plans to mostly offset the impact should tariffs on US shipments be imposed, the Company is also monitoring the broader global trade situation. With its high quality, specialty product offering and market diversification, the Company is positioned to respond to any potential tariffs.

The Company remains focused on optimizing its operating footprint, enhancing operational reliability as well as closely managing manufacturing and fibre costs.

Looking forward, there remains significant uncertainty with regards to the availability of economically viable fibre within BC. As a result, the Company continues to anticipate that escalating log cost pressures and transportation costs in BC will translate into a higher cost fibre supply for its pulp mills (both for sawmill residual chips and whole log chips). The Company will continue to evaluate operating conditions and adjust operating rates at its pulp mills to align with economically viable fibre supply. These factors could also affect the Company's operating plan, liquidity, cash flows and the valuation of long-lived assets.

The relatively muted North American demand for bleached kraft paper experienced at the end of the first quarter is projected to continue through the second quarter of 2025, largely as a result of uncertainty surrounding the trade situation between Canada and the US and the potential for tariffs on US shipments.

No major maintenance outages are planned at the Company's pulp mills or at its paper machine for the second quarter of 2025.

Looking forward, the Company has revised its maintenance schedule for the second half of 2025. A maintenance outage is now scheduled in the third quarter of 2025 at the Company's Intercon Pulp mill and at its Paper machine. This maintenance outage is projected to reduce both NBSK market pulp production and paper production by 2,000 tonnes each. In the fourth quarter of 2025, a maintenance outage is now scheduled at the Company's Northwood Pulp mill which is projected to reduce NBSK market pulp production by 10,000 tonnes.

Canfor Pulp Products Inc. is a leading global supplier of pulp and paper products with operations in the northern interior of British Columbia ("BC"). Canfor Pulp operates two 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.

Smurfit Westrock to Close CRB Mill in Minnesota; Containerboard Mill in Texas

April 30, 2025 - Smurfit Westrock today announced it will permanently close its coated recycled board (CRB) mill in St. Paul, Minnesota and will discontinue production at its containerboard mill in Forney, Texas. The specialty coating facility at Forney will not be impacted. As a result, the Company's containerboard and CRB capacity is expected to reduce by over 500,000 tons.

Smurfit Westrock has also initiated consultations with local works councils in Germany with a view to permanently closing two converting facilities there.

Approximately 650 employees in the U.S. and Germany will be impacted as a result of these closures.

In a press release, the company said, "We recognize the impact this has on our employees and the communities involved. We will provide support to employees during this transition including career transition assistance and relocation opportunities where possible. The impacted employees will receive local severance in accordance with Company policy, as well as works council and labor union agreements."

Tony Smurfit, President & Group Chief Executive Officer, commented, "While closing facilities is never an easy decision, it is based on a realistic expectation of current and future capacity needs, operating costs and an unrelenting focus on improving our business. We are very grateful for the significant contributions made by the teams at these locations over the years and we will do all we can to support them throughout this process."

Smurfit Westrock (NYSE: SW, LSE: SWR) is a leading provider of paper-based packaging solutions in the world, with approximately 100,000 employees across 40 countries.

SOURCE: Smurfit Westrock

UPM Moving Towards '-30 by 30' Emission Reduction Target through Smarter Logistics

The following story was published by UPM Pulp.

April 28 - UPM Pulp continues to make progress in reducing CO₂ emissions across its logistics network. With a focus on logistics optimisation, fuel transitions and strategic partnerships, UPM Pulp is making steady progress toward achieving 30% emissions reduction by 2030.

In 2022 UPM launched the ‘-30 by 30’ Programme with the aim of reducing CO2 emissions related to purchased materials and logistics (Scope 3*) by 30%. As part of the programme suppliers are required to provide data on the carbon footprint of the goods and services they sell to UPM. This includes accounting for all relevant emissions from the supplier's upstream supply chain and operations.

“We have already made solid progress reaching roughly a third of our target, and our work continues steadily towards the 30% goal,” says Mirja Liljeqvist, Development Manager of UPM’s Pulp Logistics.

Efficiency through partnerships

Effective emission cuts require strong collaboration across the entire supply chain. By working closely with logistic partners UPM Pulp can drive progress to find mutually beneficial ways to improve efficiency and reduce environmental impact.

“We have ongoing tenders where we evaluate different solutions that include lower emission options,” explains Matti Tamminen, Director of Pulp Logistics and Customer Service. “We are in constant discussions with our partners about new technologies and fuel alternatives.”

The ability of partners to provide lower-emission transport solutions and transparent emission data is now a key consideration in supplier selection.

“Environmental performance is one of the key selection criteria for our transport operators. If a company wants to remain a preferred partner for us in the future, it must offer sustainable and efficient solutions,” Tamminen emphasises.

A substantial portion of UPM Pulp’s total emissions reductions will depend on the initiatives and efficiency improvements implemented in partnership with UPM Pulp’s largest carriers.

Data as a driver

UPM Pulp has enhanced its methods for gathering emissions data from partners, ensuring greater accuracy and transparency in its efforts to reduce CO2 emissions.

“We gather data to track developments accurately. For emission reductions to be measurable and actionable, data needs to be comparable across different suppliers and transportation modes in order to make optimal choices,” Liljeqvist explains.

UPM Pulp also uses a Life Cycle Assessment (LCA) methodology which provides a comprehensive evaluation of environmental impacts across an entire supply chain.

The goal is not just to measure emissions but to create a data framework that allows comparisons, enabling continuous improvement and better decision making in logistics.

“The data is naturally available for our pulp customers in the form of carbon footprint calculations per delivery and wider summary reports,” says Liljeqvist.

Challenges and the road ahead

A notable share of our reduction target has been achieved but it’s fair to say that reaching the full 30% by 2030 remains a challenge. Renewable fuels are costly and in limited supply, requiring a careful balance between emission reductions and financial sustainability.

“We are looking at all available options but costs and availability are critical factors,” says Tamminen.

Collaboration with logistics partners continues to be essential. “We are on the right path, but the coming years will require even more effort and bold decisions,” Liljeqvist concludes.

With a combination of collaboration and technology, UPM Pulp is well positioned to meet its climate commitments.

*Scope 3 emissions are those that you don't directly control within your value chain, such as from externally sourced raw materials and chemicals, from business travel, and from transport and distribution.

UPM delivers renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. The company employs 15,800 people worldwide and has annual sales of approximately EUR 10.3 billion.

SOURCE: UPM