Sappi North America Price Increase

Please note that our Standard 45g Newsprint price will increase by $20/MT for shipments on or after January 1st, 2021, and will increase by an additional $20/MT for shipments on or after February 1st, 2021. Prices for all other basis weights and uncoated mechanical publishing grades will be adjusted accordingly.

West Fraser Timber Co. Ltd. announced that it has entered into an agreement to acquire Georgia Pacific’s oriented strand board (“OSB”) mill near Allendale, South Carolina for approximately $280 million. The transaction is anticipated to close following successful completion of U.S. regulatory reviews and satisfaction of customary conditions. Management will provide an update and further details about the transaction on West Fraser’s third quarter earnings call on October 28, 2021. All dollar amounts in this news release are expressed in U.S. dollars. The Allendale facility, which initially began producing OSB in 2007, has been idle since late 2019 and has an estimated stated capacity of approximately 760 million square feet (3/8-inch basis). The Company intends to invest an estimated $70 million of additional capital to upgrade and optimize the facility in preparation for its restart and this upgrade is anticipated to take approximately nine months to complete. The mill is expected to directly employ approximately 135 people and be one of the lowest cost mills in the Company’s OSB portfolio after the optimization is complete and the mill has ramped up to full production, a process that typically takes 18-24 months after restart.

Ahlstrom’s transformation efforts are delivering results. Our comparable EBITDA in the third quarter reached a record level, reflecting our ongoing commitment to performance and growth. Driven by our dedication to science and our desire to help customers navigate global trends, we continue to launch new products, with the introduction this quarter of recyclable packaging material for the bouillon cube segment. This innovation replaces thousands of tons of plastic and supports sustainable development. Moreover, our enhanced customer collaboration has led to our customer loyalty score reaching the highest decile in our industry in the latest measurement, which makes me particularly proud. Our margin on variable cost per ton continued to increase to a record high level, thanks to our improved operational performance driven by our transformation initiatives. Adjusted for the Stenay divestment in 2023, our deliveries increased by 1% compared to the previous year. We continued to strengthen our business portfolio by consolidating our footprint in parchment paper production at the Saint-Séverin site following the closure of the Bousbecque mill. Our centralized operations ensure efficiency and continued growth. In addition, we successfully completed the transaction to divest the Aspa pulp mill in November, supporting our growth transformation and focus on specialty materials production.