NORPAC Announces Price Increase for UGW Grades

As part of a settlement entered into by Verso with two Canadian producers of supercalendered papers, Verso today requested that the U.S. Department of Commerce revoke its order imposing duties on supercalendered papers made by those Canadian producers and imported into the U.S. The SC paper tariffs were intended to offset the impact of Canadian subsidies paid to Canadian producers of SC paper in order to help U.S. producers who were injured by the subsidized imports. However, injurious Canadian SC imports continue to enter the United States even with the tariffs, and imports from other non-U.S. SC producers which are not subject to the tariffs have increased. These factors offset the benefits of the tariffs to Verso. If the Department of Commerce grants Verso’s request to revoke the tariffs, it could provide Verso with a meaningful amount of cash over time, which we will evaluate how to use to best benefit our company and make us an even healthier supplier. However, there is no assurance that the Department of Commerce will grant our request to revoke the tariffs or that such funds will be provided to Verso. Be assured that we continue to make supercalendered paper at the Duluth Mill. Verso’s decision to settle the trade case is unrelated to any decisions about potential changes to Verso’s production assets at the Duluth Mill or to the types of products we make there.

Total European shipments of graphic papers were down 35.8% in May 2020 vs. May 2019 and were down 17.4% year-to-date. Total European shipments of newsprint were down 27.6% in May 2020 vs. May 2019 and were down 14.5% year-to-date. otal European shipments of sc-magazine were down 31.3% in May 2020 vs. May 2019 and were down 19.0% year-to-date. Total European shipments of coated mechanical reels were down 41.4% in May 2020 vs. May 2019 and were down 23.3% year-to-date. Total European shipments of uncoated mechanical (improved & others) were down 20.8% in May 2020 vs. May 2019 and were down 7.6% year-to-date. Total European shipments of coated woodfree were down 49.3% in May 2020 vs. May 2019 and were down 22.5% year-to-date. Total European shipments of uncoated woodfree were down 35.8% in May 2020 vs. May 2019 and were down 13.6% year-to-date.

Pixelle Specialty Solutions LLC announced it has completed two strategic investments that will further strengthen its portfolio and enhance service to new and existing customers. On March 31st , Pixelle acquired the specialty paper business Rollsource from Veritiv Corporation. On April 5th , Pixelle acquired the carbonless rolls and security papers business from Appvion Operations Inc. The acquisition of Rollsource includes the book of business primarily serving the forms printer market, and includes a converting facility in Pittsburg, KS. Pixelle will retain key Rollsource employees in order to ensure continuity in operations, sales and customer service. The acquisition of Appvion’s carbonless rolls and security papers business will enable Pixelle to serve new customers with Pixelle’s portfolio of ExcelOne® and Trans/Rite® carbonless papers and broad line of Defensa® security products. No production assets are included in the transaction. Pixelle will manufacture carbonless roll products for former Appvion customers at its Chillicothe, Ohio specialty paper mill, building on decades of experience producing carbonless products.