Search Results for: Smurfit-Stone

Smurfit-Stone Container Corporation is experiencing a work stoppage at their La Tuque, Quebec containerboard mill.

UNIK Local 34 union rejected the company’s contract offer tendered on November 10, 2010. The offer was rejected by approximately 53% of the voting union members.

On November 8, UNIK initiated a work stoppage at the La Tuque mill without notice, despite a meeting that was planned to take place on November 10, 2010, to continue with talks. The company has been attempting to negotiate with UNIK since early 2010. An agreement similar to the offer made to UNIK had already been reached some months ago with the Communications, Energy and Paperworkers Union (CEP), which covers roughly 270 production and office employees at the mill. UNIK, an independent union not affiliated with the CEP, covers approximately 140 paper machine workers at the La Tuque mill.

“We have negotiated in good faith all along and again presented a fair and competitive offer,” said Pierre Pacarar, general manager of the La Tuque mill. “It is our position that the offer was consistent with other contracts in the industry and we are disappointed with this result.”

Throughout the lockout, management and a small group of hourly employees will ensure that the mill’s assets are maintained and the company continues to meet all of its environmental obligations.

Despite these recent events at the La Tuque mill, Smurfit-Stone remains well-positioned to meet both the current and ongoing needs of its customers. Proactive measures are being taken to ensure continuity of customer deliveries.

Smurfit-Stone has confirmed its position with UNIK leadership that its current offer remains unchanged and a lockout will remain in effect until an agreement is reached.

Source: Smurfit-Stone Container Corporation

Smurfit-Stone Container Corporation has reported net income of $65 million for the third quarter ended Sept. 30, 2010, compared with net income attributable to common stockholders of $1.41 billion, for the second quarter of 2010, and $65 million, for the third quarter of 2009.

Patrick J. Moore, Smurfit-Stone’s Chief Executive Officer, commented, “I am pleased with our strong third quarter performance, which benefitted from favorable pricing trends and lower input costs driven primarily by fiber. Importantly, we are realizing cost savings and efficiency improvements from our financial restructuring, investments in our core business, and focused efforts such as our Operational Excellence initiative. I’m proud of the efforts and commitment of our employees which contributed significantly to the strong quarter. I view the positive momentum in the quarter as an important step in delivering on the accelerated performance improvement we are pursuing.”

Smurfit-Stone expects moderately lower sequential earnings in the fourth quarter from the third quarter, as continued price improvement will be more than offset by additional mill maintenance costs, normal seasonal demand declines and higher energy usage. The company also expects higher recycled fiber costs in the fourth quarter.

In addition to the major cost reduction focus in the business operations, Smurfit-Stone is undertaking a significant reduction in its selling, general and administrative costs, primarily through reductions of more than 450 positions for full-year 2010, or more than 14 percent of its workforce in these functions. Smurfit-Stone expects to realize net savings of more than $50 million in 2011 as compared to 2010, and has identified opportunities for additional savings in 2012.

Source: Smurfit-Stone

Smurfit-Stone President and Chief Operating Officer Steven J. Klinger has announced his intent to resign from the company, effective December 31, 2010. Klinger will also resign from the company’s Board of Directors.

“Steve has had an enormous influence on Smurfit-Stone since he joined the company nearly five years ago,” said Patrick J. Moore, CEO. “He helped lead a multi-year operational transformation plan which resulted in greatly improved efficiencies, more modern equipment, an aligned sales and marketing function and a more cost-effective business model. Steve’s passion for building high-performing teams has resulted in our ability to attract and retain top talent and will have a lasting impact on this organization.”

Klinger said, “I am proud of all that the Smurfit-Stone team has accomplished over the past few years. Our employees are the best in the industry. In spite of the challenging economy, the industry slow-down, our transformation and financial restructuring, we have solidly positioned Smurfit-Stone for long-term profitable growth. These are exciting times for the company and I am honored that I had the opportunity to be a part of it.”

Smurfit-Stone’s Board of Directors announced in August they have launched a search for a CEO successor to Moore, who has announced his intent to retire.

Source: Smurfit-Stone

Nine containerboard makers have been accused of conspiring to fix the price of materials used to make cardboard boxes.

The companies named in the suit are:

• International Paper
• Packaging Corp. of America
• Norampac Industries Inc.
• Cascades Inc.
• Domtar Corp.
• Weyerhaeuser Co.
• Georgia Pacific LLC
• Temple-Inland Inc.
• Smurfit-Stone Container Corp.

These companies together supply 83% of the containerboard market. The suit has been initiated by Kleen Products LLC.

Kleen Products said in their complaint that containerboard price increases from August 2005 until now outpaced cost increases by more than 50 percent, and the companies were “nearly simultaneous” in raising prices.

Read more:
International Paper Among Containerboard Makers Named in Price-Fixing Suit (Bloomberg)

Smurfit-Stone Container Corporation has reported net income attributable to common stockholders of $1.41 billion for the second quarter of 2010, compared with a net loss of ($91) million in the first quarter of 2010, and net income of $155 million for the second quarter of 2009.

Smurfit-Stone’s second-quarter 2010 adjusted net income was $2 million, compared with an adjusted net loss of ($59) million, in the first quarter of this year, and an adjusted net loss of ($21) million, in the second quarter of 2009.

The most significant adjustment in the second quarter of 2010 was exclusion of $1.42 billion of income, including tax benefits, related to the company’s emergence from bankruptcy reorganization proceedings in the U.S. and Canada.

Patrick J. Moore, Smurfit-Stone’s Chief Executive Officer, commented, “We believe our successful financial restructuring positions us for long-term profitable growth. We will continue to focus on what matters – serving our customers, improving margins and delivering shareholder value. Looking ahead, we are confident that continued high operating rates, productivity improvements, higher average prices, and low inventories combined with assumed stable demand will drive significant earnings improvement in the second half of the year.”

Source: Smurfit-Stone

The Smurfit-Stone Container Corp. closed their corrugated paper mill in Bathurst, New Brunswick in August of 2005 putting 270 people out of work.

Since then, the mill has sat vacant in the downtown area of Bathurst while the New Brunswick government searched for a buyer.

Details are scarce, but the mayor of Bathurst has announced the sale of the mill to Bathurst Redevelopment Inc.

Mayor Stephen Brunet said he is not aware of the company’s plans for the mill.

“The biggest thing I think it could mean would be that the site would get cleaned up. It’s becoming pretty bad looking,” Brunet said. “I’m hoping that that will be dealt with and cleaned up and if there’s anything salvageable that a new business will set up in there.

Source:
Smurfit-Stone mill sold after five years: Bathurst mayor (CBC)

Smurfit-Stone Container Corp. filed their Chapter 11 plan and disclosure statement in a Delaware bankruptcy court yesterday.

The company plans to form a Canadian subsidiary that will acquire all of the assets and certain liabilities of Smurfit’s current Canadian units. This will allow the company to merge all the Canadian operations into one new entity, which will then become a subsidiary of Smurfit.

The plan has to be approved by claimholders before it can be confirmed by the court.

Smurfit-Stone said its total assets had a net book value of about $5.28 billion and total debt of about $6.6 billion as of Sept. 30, 2009.

The company’s U.S. and Canadian operations filed for Chapter 11 bankruptcy protection in January, hurt by declining packaging demand.

Source:
Smurfit-Stone sets reorganization plan (Reuters)

Twenty-four companies, representing 38 pulp and paper mills across Canada, have qualified for credits under the Government of Canada’s Pulp and Paper Green Transformation Program.

* Joint venture between West Fraser Mills Limited and Daishowa-Marubeni Inc.

Eligible companies will now have access to funding under the $1 billion program to invest in capital projects that improve their environmental performance. These companies will receive funding for eligible capital projects based on an allocation of $0.16/litre of black liquor produced until the funding is fully allotted.

To determine their eligibility for black liquor credits, companies were asked to register with the program and report on their black liquor production by September 18, 2009. At the close of this registration period, the government verified production reports prepared by companies and calculated the amount of credits to be allocated to eligible companies.

It is expected that firms will begin to receive funding for projects in late 2009 or early 2010. Eligible firms can invest their credits in any of their pulp and paper facilities across Canada.

Qualified companies must now submit project proposals for their facilities. Each project will be subject to a federal environmental assessment. In addition, contribution agreements will be negotiated for projects under the Program.

More details about the program and its eligibility requirements are available at http://cfs.nrcan.gc.ca/subsite/pulp-paper-green-transformation

Source: Natural Resources Canada

Smurfit-Stone Container Corp., currently under bankruptcy protection, wants to sell 1 million acres of its woodlands to the province of Quebec for $55.4 million.

Smurfit-Stone is seeking approval of the Delaware bankruptcy court for the sale.

All the Collective Agreements for the Communications, Energy and Paperworkers Union (CEP) workers in Eastern Canada’s paper mills have now expired and new agreements aren’t expected soon.

One of the biggest stumbling factors in negotations is the fact that 60% of the CEP members in the east are currently employed by companies under bankruptcy protection, including AbitibiBowater, Fraser Papers, and Smurfit-Stone.

The contract for the more than 500 unionized employees at the NewPage paper mill in Point Tupper, Nova Scotia expired in June.

AbitibiBowater workers in Brooklyn, Nova Scotia were informed this week that they are heading into their 4th shutdown since Christmas.

The paper industry, like the automative industry, uses pattern bargaining to negotiate new contracts. One company will be used as the model, and when their contract negotiations are settled, the contract agreement will repeated by other employers in the area.

In Eastern Canada, the pattern company is AbitibiBowater, a company that is currently under creditor proction.

Dave Coles, CEP President said “It would just make common sense that you wouldn’t want to go to the table with this many companies under CCAA (Companies’ Creditors Arrangement Act) protection, you want to see how that shakes out.”

Read more:
Paper mill contracts expired – Uncertain future makes negotiations difficult (Cape Breton Post)