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The PM40 closed Friday, 28 May 2021, at 4434.

Get the latest PM40 updates by listening to the weekly Nips show and the PM40 Daily Show on Pulp & Paper Radio International.

The PM40 closed 28 May 2021 up 75.7% from the 29 May 2020 level.

In this issue of Disconnected Comparisons, we evaluate Sappi and Weyerhaeuser.

Reported insider trading since the last issue of PaperMoney.

In this past winter, I was doing research for a paper I was presenting at a conference. I came to the conclusion that, in developed countries, a conventionally sized tissue machine serves approximately 4 million people. From this piece of information, it is quite easy to reach other conclusions.

Global technology company ABB has been contracted by manufacturer of forest products, Arauco, to modernize its Licancel cellulose plant in Chile to deliver faster response times, greater cyber security, upgraded operator interfaces, enhanced process reliability and flexibility for remote working.

Andritz Ingeniería, SA, part of international technology Group Andritz, has received an order from Smurfit Kappa Nervion to provide industrial maintenance services for their mill in Iurreta, Spain.

Andritz has successfully started up a complete, innovative reject handling line as well as key stock preparation equipment at Sun Paper Savannakhet, Savannakhet Province, Laos.

Kemira has opened a new dry polymer production plant in Ulsan, South Korea in May 2021. The plant produces high quality dry polyacrylamide (DPAM) products primarily for retention and drainage applications which are critical in modern, fast paper and board production. The investment is a joint venture between Kemira and Yongsan Chemicals.

Valmet has been chosen as the third most attractive employer by engineering students in Finland. The ranking was published in Universum's annual survey, which is the biggest employer survey in Finland. In 2020, Valmet was ranked fifth in the same category.

Valmet will supply drying technology to Spinnova-Suzano joint venture textile fibre factory in Jyväskylä, Finland. The facility, producing SPINNOVA® fibre, is the first step towards scaling production volumes to one million tonnes annually within ten years. Spinnova's annual capacity could be 50,000 tonnes of textile fibre by 2024.

Nine Dragons Paper, the biggest manufacturer of packaging paper in China, has commissioned Voith to build and deliver three XcelLine paper machines for the production of high performance testliner and white top testliner. The three lines will further strengthen the paper manufacturer's leading position in the packaging paper segment. The commissioning of the machines is planned for 2022 and 2023.

Ahlstrom-Munksjö advances further into the growth segment of electrification, launching its first product offering, totally dedicated to filtration media solutions for electric vehicles.

Americans are awash in boxes from a pandemic-induced push to online shopping. But how do consumers feel about those boxes? Baby Boomers, the generation that came of age amid the first Earth Day in 1970, are the most motivated to recycle those leftover boxes, according to a nationwide poll by global packaging leader DS Smith. And the majority of consumers (57%) don't mind the extras, because "you can never have too many boxes" for re-shipping, storage and other purposes.

Dunn Paper, a leading manufacturer and supplier of high performance, advanced paper and tissue for use in food, medical, and specialty markets unveiled today a new sustainable coated paper technology, BiOrigin™.

IT Tech Packaging, Inc. announced that the Company has officially obtained approval for surgical mask products from local Food and Drug Administration (FDA) in China Hebei province. IT Tech Packaging has also shown the result in public for the required period of time and is now eligible to produce (aseptic) single-use surgical and surgical masks.

Consumer concerns and tightening regulations have intensified the drive for more sustainable and safe packaging. At the same time, improving performance and efficiency are important. To answer the demand Metsä Board, part of Metsä Group, has introduced a collaborative 360 Service approach to deliver measurable benefits throughout the packaging value chain, from easy recyclability to brand impact, production and supply chain efficiency, reducing environmental impact, and beyond, complementing its premium paperboard offering.

Monadnock Paper Mills, Inc., the oldest continuously operating paper mill in the United States, is expanding its popular Envi Card Stock portfolio with the introduction of Envi PC 100 Card 28 pt., crafted from 100% post-consumer waste fibers.

R.R. Donnelley & Sons Company, a global leader in marketing and business communications, announced it has been named to Forbes' list of America's Best Employers for Diversity 2021.

UPM Specialty Papers is strengthening its already comprehensive selection of sustainable and recyclable packaging papers. Known for its high expertise in technically demanding papers, UPM Specialty Papers now introduces an advanced fibre-based barrier paper - UPM AsendoTM Pro.

Notably in 2020, containerboard capacity expanded, continuing a decade-long trend, and reaching a record high of 40.4 million tons. Tissue paper capacity has also been trending upward, increasing for the past five years, as well as eight of the last 10 years.

Södra Cell is increasing the price of its northern bleached softwood kraft (NBSK) pulp in Europe to $1,380, effective 1 June 2021.

A move by the U.S. Commerce Department to increase preliminary tariffs on softwood lumber imports from Canada, if finalized, will raise producer costs and cut into their profits but is unlikely to affect prices to consumers of wood products, analysts say.

Last year BillerudKorsnäs and Haver & Boecker published a total of nine sack packaging norms. These norms cover the basics and some of the most critical factors that need to be taken into account when powdered goods are packed.

Metsä Fibre's Rauma sawmill has concluded a service agreement with Euroports Finland on port operations for sawn timber in Rauma. The agreement is for four years and will take effect in the summer of 2022.

Sonoco ThermoSafe, a unit of Sonoco and the leading global provider of temperature assurance packaging, and Cathay Pacific Cargo, one of the world's largest air cargo carriers, announced an expanded global partnership agreement for the leasing of the new Pegasus ULD® temperature controlled bulk shipping container. The agreement enables pharmaceutical freight forwarders to lease Pegasus ULD® containers directly from Cathay Pacific Cargo.

Stora Enso and Vogue Scandinavia have formed a strategic partnership to replace plastics in magazine packaging. As a part of the partnership, Stora Enso will provide Vogue Scandinavia with sustainability and packaging design expertise. A renewable, carbon neutral eco-package concept will be available for the first issue of Vogue Scandinavia, to be published in August this year.

A south Charlotte homeowner has sued a South Carolina pulp and paper mill whose fumes have allegedly sickened residents in the Carolinas for many months.

R. R. Donnelley & Sons Company announced that its Board of Directors (the "Board") has approved an amendment of the Company's stockholder rights plan (the "Rights Plan"). The amendment raises from 10% to 15% the level of beneficial ownership of RRD common stock the acquisition of which by a person or group (other than certain passive institutional investors) would result in the rights becoming exercisable.

Domtar held a groundbreaking ceremony for its $300 million renovation and expansion of the Kingsport mill.

The new facility with a total installed cost exceeding $1 billion will create 850 new jobs.

Kruger Packaging announced a $114.2 million investment to establish a state-of-the-art packaging manufacturing operation in Hardin County, a project that will create at least 150 quality jobs in the coming years.

The financings, totaling $240 million, include the previously announced $165 million in investments.

The Lenzing Group will invest more than Euro 200 million in its production sites in Purwakarta, Indonesia, and Nanjing, China, to convert existing standard viscose capacity into environmentally responsible specialty fibers.

Smurfit Kappa is substantially expanding its converting capacity at four manufacturing plants across the Czech Republic and Slovakia with a significant €20 million investment. The investment further highlights Smurfit Kappa's commitment to its customers and operations in Eastern Europe.

Stora Enso on May 20 arranged a virtual inauguration ceremony to celebrate the successful conversion of the Oulu Mill which was transformed from paper production into high-quality kraftliner production. The Prime Minister of Finland, Sanna Marin, inaugurated the mill. Oulu is Stora Enso's second successful conversion, following Varkaus Mill, inaugurated in 2016.

Dennis Schoeneck, the president of the Timber Professionals Cooperative, said the group has continued talking with Verso about a potential sale of the Rapids mill, although there hasn't been a deal on the table yet.

Glatfelter Corporation, a leading global supplier of engineered materials, announced it has completed the previously announced acquisition of Georgia-Pacific's U.S. nonwovens business for $175 million, subject to customary purchase price adjustments.

Graphic Packaging Holding Company announced the conclusion of its successful partnership with International Paper Company. The final tranche of the membership interests held by International Paper in Graphic Packaging International Partners, LLC (the "Partnership") were exchanged for an equivalent number of shares of Graphic Packaging common stock. As a result, Graphic Packaging now owns 100% of the Partnership.

The total purchase price of US$375 MM, which includes working capital, will be funded entirely from cash on hand.

Flexo is a manufacturer of stock, custom and recycled paper bags and sacks. It is headquartered and has a manufacturing facility in Meriden, Conn. and an additional plant in Monroe, Ga. Flexo's eligible full-time employees are expected to join Novolex.

Stora Enso has signed an agreement to divest its Sachsen Mill located in Eilenburg, Germany, to the Swiss-based family-owned company Model Group. Sachsen Mill has an annual production capacity of 310 000 tonnes of newsprint specialty paper based on recycled paper.

ST aims to convert the mill to produce tissue paper, instead of the supercalendered paper it has traditionally manufactured. ST Paper had been negotiating to purchase the mill and convert it to tissue paper production at an anticipated cost of about $54 million.

Domtar Corporation announced it will expand its Jesup, Georgia based Engineered Absorbent Materials (EAM) facility. The project will play an integral role in helping the company grow its position as a leading global absorbent materials and technology business offering fluff pulp and airlaid nonwoven materials.

Huhtamaki, a global key advanced manufacturer of sustainable packaging solutions, is setting up a new manufacturing unit in KwaZulu-Natal in South Africa to serve its existing and new egg packaging customers in the KwaZulu-Natal area with a broad range of locally produced packaging solutions.

PaperWorks Industries, Inc. has announced the appointment of Brian Janki to the posts of President & CEO and member of the Board of Directors effective May 10, 2021. Mr. Janki replaces C. Anderson "Andy" Bolton.

Verso Corporation has released a statement saying they believe Tuesday's fire at their idled Wisconsin Rapids mill may have started with a lightning strike.

The fire broke out at the mill during the evening of May 2. It caused widespread damage to the former mill, leaving the building unstable and causing concerns that it would fully collapse. A few days after the fire, crews began to demolish the building out of safety concerns.

Nippon Paper Industries has decided that at the end of May 2022, it will shut down the operation of its coated paper-producing N6 paper machine at Ishinomaki mill (Ishinomaki City, Miyagi Pref) in Japan.

In line with its previously communicated intention, Nordic Paper has decided to discontinue the production of pulp at the Säffle plant during the fourth quarter 2021 and replace it with purchased external pulp. The decision has been made as the consultations with trade unions regarding the pulp production now have been concluded. The decision leads to positive environmental effects and the use of fossil fuels at the plant will be reduced to less than half of the current level.

Lumber prices and tariffs

The importance of sustainability in driving long term growth in the pulp and paper industry, and as a key factor impacting on the purchasing decisions of consumers, was highlighted recently by APRIL Group at an international industry forum.

Under the order, New-Indy also must immediately notify the EPA if it exceeds permitted levels and submit daily documentation of its air monitoring data. Weekly summary reports also will be required.

It's a potential leap in technology that most scientists remain skeptical about, but which a Japanese paper producer is determined to pursue: using trees to develop a successor to lithium-ion batteries for electric cars.

UPM Energy answers to the urgent need for power flexibility with a revolutionary energy optimisation and trading service, Beyond Spot, helping industrial businesses thrive in the energy market disruption. The service helps industrial companies solve the most common pain points of energy management: energy cost optimisation and risk management. At the same time, it answers the growing need for flexible power to balance the power grid due to the fast increase in the supply of renewable energy.

Ahlstrom-Munksjö has completed an investment in one of its filtration material production lines in Binzhou, China.

Investigators say the machine wasn't near the paper supply, and the cause for the fire is still being determined.

A fire inside Packaging Corporation of America's Boise paper mill in International Falls kept local firefighters at the scene for about five hours on Sunday, May 23.

Klabin is building at the Puma II Project, together with the new packaging paper production line in Ortigueira, Paraná, the first ever sulfuric acid plant integrated to a pulp and paper mill in Brazil, which will make the unit self-sufficient in producing the acid.

There were no injuries at an early morning fire Monday, May 17, at the Georgia Pacific Medium Density Fiberboard plant in Mount Jewett.

Norske Skog met with employees this past weekto tell them it is considering closing down its Tasman Mill.