Norpac Announces Price Increase on Orca UFR

*Q2 2024 net loss from continuing operations was $14.5 million or $0.08 per share (diluted), compared to net loss of $13.4 million or loss of $0.08 per share (diluted) in Q1 2024. Adjusted EBITDA for Q2 2024 was negative $12.1 million compared to negative $3.5 million in Q1 2024. Both the lumber and paper operations had a negative contribution to Q2 2024 as a result of weak market conditions. *Lumber sales volumes in Q2 2024 were lower than Q1 2024 due to the continued drag on lumber demand as housing affordability remains significantly impacted by high mortgage rates. There also remain an oversupply of lumber, which resulted in lower field takeaways. Average realized lumber prices of $637/mfbm for Q2 2024 were also lower than the $644/mfbm pricing realized in Q1 2024. Benchmark prices continued to be under pressure subsequent to Q2 2024. The recent cuts by the Bank of Canada is signalling a reversal in monetary policy. *The valuation provision for lumber and log inventory was increased to $3.2 million from $1.0 million at the end of Q1 2024, generating a $2.2 million charge to lumber cost of sales in Q2 2024. *Our lower duty rate has positively impacted the Company’s earnings and free cash flow since August 1, 2023. The Company’s initial duty deposit rate, totaling 20.23%, remained in effect for almost two years, since the Company’s acquisition of its sawmill and paper mill assets on August 28, 2021. *The Company plans to complete a spin-out transaction of Kap Corporation (“Kap”), the holding company of Kap Paper Inc., which holds all operating assets related to the paper mill operations.

Solenis and Kolb Distribution Ltd. have announced that Solenis has entered into a definitive agreement to acquire the latter’s paper process chemicals business. The deal includes a long-term supply agreement, in which the KLK Kolb Group will manufacture paper process chemicals exclusively for Solenis. KLK Kolb Group offers a broad portfolio of paper process chemicals, including deposit control, cleaning and foam control agents primarily for the EMEA pulp and paper markets. Its wide range of manufacturing process technologies, including alkoxylation, esterification and dispersion, enables KLK Kolb Group to offer a broad range of products, as well as offer customized solutions for its customers.

Stora Enso has appointed Johanna Hagelberg Executive Vice President, Biomaterials division. She will continue as a member of the Group Leadership Team (GLT). Johanna Hagelberg joined Stora Enso in 2013 and has been a member of the GLT since 2014 as Head of Sourcing and Logistics. Prior to joining Stora Enso, she held leadership positions at companies including General Motors, NCC and Vattenfall. Johanna holds two M.Sc. degrees in: Management of Manufacturing Systems and Industrial Engineering and Management. The search for a new Head of Sourcing and Logistics has been initiated. In the interim period, Tuomas Mustonen, currently SVP Performance, Controlling and Strategy for Sourcing and Logistics, will assume the acting role in this position. “Biomaterials is a core strategic business for Stora Enso. As we now move into an innovation-driven era for biomaterials, I am delighted to appoint Johanna as head of the division. Her proven leadership skills and experience from various industries, including the automotive industry, will enable us to take this business to the next level. Johanna has the background and ability to accelerate commercialisation of new bio-based products, such as Lignode, lignin-based battery carbon for mobile electrification,” says Stora Enso’s President and CEO Annica Bresky.