AF&PA Commends EPA on Finalizing New Source Review Project Emissions Accounting Rule

Resolute Forest Products Inc. reported net income of $268 million for the quarter ended June 30, compared to net income of $6 million in the same period in 2020. Sales were $1,140 million in the quarter, an increase of $528 million from the year-ago period. Excluding special items, the company reported net income of $300 million, or $3.74 per diluted share, compared to a net loss of $22 million, or $0.25 per share, in the second quarter of 2020. The company reported operating income of $406 million in the second quarter, compared to operating income of $6 million in the second quarter of 2020. The improvement reflects higher selling prices ($500 million) in the wood products, pulp and paper segments, offset by the stronger Canadian dollar ($39 million), higher fiber costs ($27 million), and maintenance ($14 million). At $445 million, adjusted EBITDA in the second quarter was $408 million higher than the second quarter of 2020.

Since the initiation of the strategic review process in New Zealand in October 2020, a process made necessary by the secular decline of the publication paper industry and the impact of COVID-19, Norske Skog has explored a range of alternatives for the Tasman mill. Following a careful review, this process has resulted in a decision to close the Tasman mill and a sale of the mill’s assets. Production will cease by 30 June 2021, reducing Norske Skog’s newsprint capacity by approximately 150,000 tonnes per annum. The Tasman mill has only produced very limited volumes during 2021. Norske Skog will honour all redundancy and contractual obligations to the mill’s approximately 160 employees as the workforce is progressively reduced during the third quarter. The decision to close the Tasman mill follows a detailed review over the past eight months. It will address the substantial imbalance between newsprint production capacity and customer demand in the Australasian region. The Tasman mill has been an important contributor to the regional economy in New Zealand for the past 66 years, producing more than 15 million tonnes of publication paper over its lifetime. I would like to thank everyone who has worked at the mill for their outstanding contribution throughout the years, and their significant efforts to ensure a long and good life for the mill, says Sven Ombudstvedt, CEO of Norske Skog.

Lecta announces a price increase on thermal papers of 10% to 12% for new orders. The price increase is necessary to offset the continuous and relevant increase in manufacturing and transport costs and to restore our profitability. The price increase is effective immediately. Lecta sales teams are at our customers’ disposal to provide specific information on how the price increase will be applied on a country-by-country basis.