Svetogorsk Mill May Curtail or Temporarily Shut Down Production

According to the report, total printing-writing paper shipments decreased 21 percent in September compared to September 2019. U.S. purchases of total printing-writing papers decreased 20 percent in September compared to the same month last year. Total printing-writing paper inventory levels decreased seven percent when compared to August 2020. Uncoated free sheet (UFS) paper shipments decreased 19 percent compared to September 2019 while the inventory level decreased six percent compared to August 2020. UFS imports and exports both decreased compared to August 2019, down 18 percent and 40 percent respectively. U.S. purchases of coated free sheet (CFS) papers in September decreased 12 percent compared to last September while the inventory level decreased 10 percent compared to August 2020. CFS imports and exports both decreased compared to August 2019, down 36 percent and 27 percent respectively. Coated mechanical (CM) paper shipments decreased 31 percent compared to September 2019 while the inventory level increased two percent compared to August 2020. CM imports decreased 30 percent while exports increased five percent in August 2020. U.S. purchases of uncoated mechanical (UM) papers in September decreased 28 percent compared to last September while the inventory level decreased eight percent compared to August 2020. UM imports and exports both decreased compared to August 2019, down 15 percent and 44 percent respectively.

Over the course of the last 12 months, we have experienced negative cost pressure due to inbound/outbound freight issues, higher import tariffs, and increased costs of raw materials. These costs have impacted our entire range of products. Until now, improvements in manufacturing and logistic efficiencies have enabled us to mitigate increased costs. However, we are no longer able to absorb the full impact of these costs on our business. Effective on orders received on or after January 18, 2021 we will implement a 6% price increase on all stock and custom orders. Thank you for your understanding and your continued support of 3A Composites.

JANUARY–JUNE 2021 (1–6/2020) *Sales were EUR 2,942 million (2,453). *Operating result was EUR 379 million (163). Comparable operating result was EUR 416 million (158). *Result before taxes was EUR 354 million (139). Comparable result before taxes was EUR 391 million (134). *Comparable return on capital employed was 15.0% (6.2). *Net cash flow from operations was EUR 374 million (203). President and CEO Ilkka Hämälä: "The first half of 2021 turned out to be altogether excellent for Metsä Group. The growth in demand as well as the increase in prices in the pulp business and mechanical wood products, which began during the fourth quarter in 2020, continued throughout the period. The paperboard business also continued its strong performance and there, too, the already robust demand continued to improve, due to which price levels in different market areas also took an upward turn. Demand for consumer products in tissue paper was on a significantly lower level than in the previous year, and the intermittent easing of the pandemic did not yet figure greatly in the demand for professional products.