SCA to increase Kraftliner price by €50 per tonne

Paper Excellence announced today that it is donating $50,000 to Saskatchewan Polytechnic to create a Paper Excellence student awards scholarship program. The scholarship awards will be distributed over the next five years with $2,500 available to each of four students each year. The awards are meant to encourage and recognize Saskatchewan youth with high academic achievement and financial need. They will be available to students enrolled in programs related to the operation of a pulp mill such as engineering, industrial mechanics, innovative manufacturing or welding. “As we continue to grow our footprint in Saskatchewan, we know it’s important to invest in the community,” said Carlo Dal Monte, Vice President, Energy and Business Development. “Investing in young people in Saskatchewan and supporting the development of the local workforce made sense from our end. With Saskatchewan Polytechnic’s excellent programs, many campuses around Saskatchewan, and stellar track record of developing the province’s workforce, we’re thrilled to be making this contribution.”

Average input costs were stable sequentially and cost control was strong across the business. Currency movements had a net negative impact on underlying EBITDA compared to the second quarter, driven by a weaker US dollar, impacting a number of the Group's globally traded products, coupled with a weaker Russian rouble and Turkish lira. Given prevailing exchange rates, we anticipate a further net negative currency impact in the fourth quarter. During the quarter, planned maintenance shuts with an estimated impact on underlying EBITDA of around €35 million (2019: €40 million) were carried out successfully. Based on prevailing market prices, we continue to estimate that the impact of planned mill maintenance shuts on underlying EBITDA for 2020 will be around €100 million (2019: €150 million), with the fourth quarter impact expected to be around €55 million (2019: €30 million). Our major capital investment projects are progressing according to plan. The €67 million capital investment project to convert a containerboard machine at Štětí (Czech Republic) to become fully dedicated to the production of speciality kraft paper for shopping bag applications is scheduled to be commissioned during the fourth quarter. This additional capacity (75,000 tonnes) further supports our retail customers in their efforts to replace unnecessary plastic as they transition to more sustainable packaging solutions that contribute to the circular economy.

This past Spring, our sawmill in Ashland, Maine turned on a turbine that reduces the site's carbon footprint by 1000 tonnes of C02. The turbine is part of a $1.8 million dollar investment in the mill which also included an upgrade to the boilers and an additional control room. This energy efficient project was completed just prior to the COVID-19 outbreak, which all J.D. Irving, Limited Maine operations navigated without any cases of COVID-19 or layoffs. The turbine will allow the site to limit their purchase of electricity, by choosing a greener option. Burning bark, that is already being removed from the logs, creates steam pressure and spins the turbine, creating its own electricity. In addition, there is now sawdust that can be transported to Grand River Pellets (GRP), JDI's pellet plant. The use of site generated mill residues as fuel also reduces landfill disposal and the ash generated from the wood can be used as a soil conditioner on agricultural land. See how JDI ash from other sites is being used on farmers fields here.