Search Results for: Smurfit-Stone

Catalyst Paper has announced the appointment of Leslie Lederer, a director and chairman of the company as the interim president and chief executive officer.

The appointment takes effect on Kevin J. Clarke‘s departure as Catalyst CEO and board member at the end of June.

Mr. Lederer is a former industry executive with Smurfit-Stone Container Corporation with extensive experience in the industry, and a member of the Illinois Bar.

Mr. Clarke’s resignation was announced in April and the Board initiated an executive search for his successor at that time. Mr. Clarke is leaving the company and the board to return to his home in the state of New York where his family resides.

Mr. Lederer’s appointment will enable the Board to complete the executive search in due course and will facilitate a seamless transition once a new chief executive officer is selected.

Source: Catalyst Paper

Green Investment Group Inc. of Illinois, USA is interested in taking over the former Marathon Pulp mill in Marathon, Ontario.

Marathon Pulp closed in February 2009 and declared bankruptcy shortly after.

The Marathon Pulp site is known to be contaminated.  There were multiple chemical spills in 2009 and 2010 after the mill had closed, including a chemical plume on Lake Superior.

The responsibility over the cleanup of the site was debated in court for 2 years.  Tembec, as co-owner of the mill, was found responsible for all known and unknown environmental issues, including the remediation.

Another former owner, Ball Packaging, was responsible for paying for a sand cap that was placed on contaminated sediment in the harbour.

To sell the property to Green Investment Group Inc., the Ontario Ministry of the Environment will have to approve the sale, and allow the environmental responsibility to be passed from Tembec to the new owner.

Northern Ontario Business is reporting that terms have now been agreed upon between Green Investment Group, the Ministry of the Environment, and the mill’s owner Tembec that will allow a sale agreement to be drafted. Green Investment Group plans to redevelop the site into a green energy industrial park.

Protocol Biomass, of Toronto, has been identified by Northern Ontario Business as one company that may be a future tenant. Protocol Biomass has been looking for a site in the area to make torrified wood pellets for export to Europe. European electrical generating stations use the blackened wood pellets to produce energy.

Green Investment Group has previously purchased former Smurfit-Stone paper mills across North America.  To see Green Investment Group’s progress on these sites in Canada, visit their pages dedicated to each project:

• Brunswick North Industrial Park, Bathurst, New Brunswick
• Pontiac Industrial Regional Park – Portage-du-Fort, Quebec
• New Richmond, Quebec

Read more:
Brownfield developer poised to land Marathon Pulp (Northern Ontario Business)

Catalyst Paper has announced that the following individuals have been selected by certain of the senior secured and unsecured noteholders in accordance with the terms of the Court-sanctioned second amended Plan of Arrangement to form the new Board of Directors on the company’s emergence from creditor protection.

John Brecker – Brecker brings director and management experience in a family of hedge funds as well as operations expertise in the chemical, retail and auto industries. He holds a law degree from St. John’s University and a political science degree from American University.

Giorgio Caputo – Caputo is a Portfolio Manager and Senior Analyst with First Eagle’s Global Value Team. He has worked in the financial services and investment management industries since 1996, most recently with Credit Suisse and JANA Partners. He is a graduate of Princeton University and Columbia Business School.

John Charles – Charles is a CA with more than 30 years of leadership experience in telecommunications, investment banking, mining and real estate. A Queen’s University graduate, he is currently on the board of directors of Aeroman and AVEOS Holdings, Prism Medical Ltd., LeBlanc & Royle Enterprises and Jones Brown and a former director of AVEOS Fleet Performance Inc.

Kevin J. Clarke – Clarke is currently President and CEO and a director of Catalyst Paper and will continue on the new Board.

Todd Dillabough – Dillabough is President, CEO and COO of Trident Resources Corp, an independent natural gas E&P company that was restructured in 2010. He holds a BSc in Geology from the University of Calgary, is a former governor of CAPP and a former director of AVEOS Fleet Performance Inc.

Walter Jones – Jones brings 25 years of hands-on experience as a turnaround consultant with companies in a range of industries. He holds a bachelor of science in industrial engineering from Pennsylvania State University and has served in a variety of operating, restructuring and executive roles.

Leslie Lederer – Lederer is a former industry executive with Smurfit-Stone Container Corporation and a specialist in corporate restructuring, financing, mergers and acquisitions. He served in key roles with SSAB Svenskt Stal AB and IPSCO Inc. and is a member of the Illinois Bar.

In preparing to turn governance of Catalyst to the new Board of Directors, current Chairman Jeffrey Marshall noted that many parties played a vital role in ensuring the second amended Plan of Arrangement was approved by creditors and sanctioned by Order of the Supreme Court of British Columbia on June 28, 2012.

“Typically, CCAA proceedings with companies as large as Catalyst take years, not months, to be completed and this one reached the sanction stage in six months with the company now set to emerge in the very near term,” Mr. Marshall said. “To achieve this result in such a timely fashion would not have been possible without the dedication and unwavering support of employees, unions, management team, customers, suppliers, retirees and pensioners, as well as the communities where Catalyst operations are located,” he added.

Source: Catalyst Paper

Smurfit-Stone Container Corporation has recorded a net income of $54 million in its first quarter. In its previous quarter, the company recorded a net loss attributable to common stockholders of $91 million.

The sequential decline in earnings was the result of the moderate improvement in pricing and lower scheduled maintenance downtime costs being more than offset by cost inflation primarily related to fuels, higher seasonal energy usage, and the impact of benefit cost timing in the quarter.

Net sales for the first quarter of 2011 were $1.58 billion, down slightly from $1.63 billion in the fourth quarter of 2010 and up 8 percent compared with sales of $1.46 billion in the first quarter of 2010.

The sequential decline in sales in first quarter 2011 reflects modestly higher selling prices, more than offset by seasonally lower volumes.

Smurfit-Stone expects sequentially lower earnings in the second quarter as operating efficiencies and seasonal volume improvements will be more than offset by continued cost inflation and higher maintenance downtime costs.

Source: Smurfit-Stone

Smurfit-Stone will receive $24 million from the Pulp and Paper Green Transformation Program to substantially improve the environmental performance of its mill in La Tuque, Quebec.

“Our Government’s top priority remains the economy,” said the Honourable Denis Lebel, Minister of State for the Economic Development Agency of Canada for the Regions of Quebec. “With the economic recovery still fragile, we will continue to take action to protect and create jobs in Canada, including the important forestry jobs in La Tuque.”

The project announced today will reduce greenhouse gas emissions by close to 80,000 tonnes annually — equivalent to the greenhouse gas emissions of almost 22,000 cars.

Source: Government of Canada

Smurfit-Stone Container Corp. had previously announced that its CEO Patrick J. Moore would be retiring in March.

Instead, Moore will now stay on until the acquisition of Smurfit-Stone by Rock-Tenn Company is complete. Smurfit-Stone estimates that this will be sometime in the second quarter of 2011.

This extension is intended to provide continuity of executive leadership through the completion of the RockTenn transaction.

Source: Smurfit-Stone

The executives of Smurfit-Stone Container Corp. will rake in millions when the company is sold to RockTenn Co.

RockTenn is one of North America’s leading manufacturers of paperboard, containerboard and consumer and corrugated packaging. Smurfit-Stone will become a wholly owned subsidiary of RockTenn. The acquisition is a half-cash, half-stock deal worth $3.5 billion.

CEO Patrick Moore – $59.5 million
CEO Patrick Moore, was already due to receive a $3.5 million bonus for successfully leading the company out of bankruptcy protection in June of 2010. Moore announced he will be retiring in March. He will be walking away with $59.5 million, including stock and options.

Steven Strickland – $5.1 million
Steven Strickland, senior vice-president for containerboard operations, will be receiving equity grants worth $5.1 million. In addition, Strickland may be owed a potential severance of $1.5 million

Stockholders will receive $17.50 in cash for their shares, and RockTenn stock valued at $17.50 a share. This amounts to a 27% gain over the closing price of Smurfit-Stone stock on Friday January 21, 2011.

Sources:
Smurfit-Stone CEO Moore will get $59.5M in RockTenn sale (Chicago Business)
RockTenn to Acquire Smurfit-Stone Container Corp. Creating a $9 Billion Leader in the North American Paperboard Packaging Market (Smurfit-Stone)

Smurfit-Stone Container Corp. has posted a net income of $49 million in its fourth quarter, ending December 31, 2010.

Patrick J. Moore, Smurfit-Stone’s Chief Executive Officer, commented, “Fourth quarter performance was strong, meeting our expectations, and demonstrating that our initiatives to improve productivity and lower costs are enabling us to deliver improvement in earnings, margins and cash flow.”

Adjusted EBITDA for the fourth quarter of 2010 was $205 million, down from $239 million in the third quarter of 2010, and up from $67 million in the fourth quarter of 2009. The sequential decline in adjusted EBITDA reflects seasonally lower volumes, cost inflation, the impact of a work stoppage at the company’s La Tuque, Quebec, mill, and market-related downtime taken in December in order to balance supply and demand in the company’s system.

Net sales for the fourth quarter of 2010 were $1.63 billion, unchanged from the third quarter of 2010 and up 18 percent compared with sales of $1.38 billion in the fourth quarter of 2009. The stable sales in fourth quarter 2010 reflect modestly higher selling prices, offset by seasonally lower volumes.

Smurfit-Stone expects lower sequential earnings in the first quarter of 2011 compared with the fourth quarter of 2010. Moderate improvement in pricing will be more than offset by seasonally higher energy usage, cost inflation in fiber and energy, and the impact of employee benefit cost timing.

Read more:
Smurfit-Stone Reports Fourth Quarter 2010 Results (Smurfit-Stone Press Release)

AbitibiBowater today announced the selection of a new Executive Team, reporting directly to Richard Garneau, President and Chief Executive Officer. This leadership transition includes a number of senior management changes, supporting the company’s execution of its business strategy.

“The Executive Team we have put in place represents an excellent blend of proven experience and fresh thinking. I look forward to working with the team to further improve AbitibiBowater’s operational efficiencies and financial flexibility, while offering a broad mix of quality products to our customers globally,” stated Richard Garneau. “We believe that with the support of all Company employees, we can deliver on our commitment to further reduce costs and enhance our competitiveness. Working as one team, we can respond to the reality of ongoing market challenges and ensure sustained profitability moving forward.”

In addition to Richard Garneau, AbitibiBowater’s Executive Team will be composed of:

• Alain Boivin, Senior Vice President, Pulp and Paper Operations. Mr. Boivin most recently was Vice President of Mill Operations, Central Region at Smurfit-Stone Container Corporation and will assume his new responsibilities at AbitibiBowater on March 7, 2011. This role will be managed on an interim basis by David J. Spraley, Senior Vice President, Pulp and Paper Manufacturing, Engineering and Quality. Mr. Boivin served as a Vice President at Smurfit-Stone since 2000. He previously was Senior Vice President, Containerboard Operations for St. Laurent Paperboard Inc. from 1999 to 2000. Prior to this, Mr. Boivin was Mill Manager at a number of operations for Donohue Inc. and Avenor Inc.
• Alain Grandmont, Senior Vice President, Human Resources and Public Affairs. Mr. Grandmont most recently served as Executive Vice President, Human Resources and Supply Chain for AbitibiBowater Inc. He was previously Senior Vice President, Commercial Printing Papers from October 2007 to July 2009. Mr. Grandmont served as Senior Vice President, Commercial Printing Papers of Abitibi-Consolidated Inc. from 2005 to October 2007 and as Senior Vice President, Value-Added Operations and Sales of Abitibi-Consolidated in 2004.
• William G. Harvey, Senior Vice President and Chief Financial Officer. Mr. Harvey served most recently as Executive Vice President and Chief Financial Officer for AbitibiBowater Inc. He previously was Senior Vice President and Chief Financial Officer of the Company from October 2007 to July 2009. Mr. Harvey served as Executive Vice President and Chief Financial Officer of Bowater Incorporated from August 2006 to October 2007, and as Senior Vice President and Chief Financial Officer and Treasurer of Bowater from 2005 to 2006.
• John Lafave, Senior Vice President, Pulp and Paper Sales and Marketing. Mr. Lafave most recently served as Vice President Sales, National Accounts – Paper Sales for AbitibiBowater Inc. Prior to this, he was Vice President Sales, National Accounts – Newsprint for AbitibiBowater and Vice President Sales, Commercial Printers for Abitibi-Consolidated Inc. from 2004 to 2009. Mr. Lafave previously held progressive positions in sales with UPM-Kymmene and Repap Enterprises.
• Yves Laflamme, Senior Vice President, Wood Products, Global Supply Chain and Information Technology. Mr. Laflamme served most recently as Senior Vice President, Wood Products for AbitibiBowater Inc. He was previously Senior Vice President, Woodlands and Sawmills of Abitibi-Consolidated Inc. from 2006 to October 2007 and Vice President, Sales, Marketing and Value-Added Wood Products of Abitibi-Consolidated from 2004 to 2005.
• Jacques P. Vachon, Senior Vice President and Chief Legal Officer. Mr. Vachon most recently served as Senior Vice President, Corporate Affairs and Chief Legal Officer for AbitibiBowater Inc. He previously was Senior Vice President, Corporate Affairs and Secretary of Abitibi-Consolidated Inc. from 1997 to October 2007.

All appointments are effective immediately, with the exception of Mr. Boivin who will join AbitibiBowater in March. Also reporting directly to Mr. Garneau is William Kerr who will serve as Vice President, Internal Audit. Mr. Kerr also reports functionally to the Company’s Audit Committee of the Board.

Source: AbitibiBowater

Smurfit-Stone Container Corporation has announced that all of its U.S. paper mills have been recommended for chain-of-custody certification to the Sustainable Forestry Initiative (SFI), Programme for the Endorsement of Forest Certification (PEFC), and Forest Stewardship Council (FSC) standards.

Having its mill system fully certified allows Smurfit-Stone to trace and verify the origin of the fiber used in its papermaking operations. This is becoming an increasingly important requirement for many companies that are looking to partner with packaging manufacturers that can help them meet their social and environmental goals.

“Smurfit-Stone is committed to responsible and sustainable fiber sourcing, and completing this certification process division-wide reaffirms our beliefs,” said Mike Exner, Senior Vice President and General Manager, Mill division. “The chain-of-custody certification also helps us better support our customers in meeting their sustainability goals.”

The chain-of-custody certification audits were conducted over a two-week period from November 29, 2010, to December 3, 2010. Smurfit-Stone’s mills will have the following certifications:

• SFI Certified Fiber Sourcing – U.S. mills’ procurement system
• SFI chain-of-custody certification – U.S. mills
• PEFC chain-of-custody certification – all pulp and paper mills
• FSC chain-of-custody certification – all pulp and paper mills

Smurfit-Stone’s Matane, Quebec, mill has also been recommended for PEFC and FSC certifications, and its La Tuque, Quebec, mill received PEFC and FSC certifications in 2009. Smurfit-Stone anticipates extending the chain-of-custody certifications within its converting operations throughout 2011 and 2012.

Source: Smurfit-Stone