UPM to Reduce 580,000 Tonnes of Graphic Paper Capacity

UPM Plans to Reduce 580,000 Tonnes of Graphic Paper Capacity in Europe:

The continuing challenges in European economy have significantly impacted the consumption of paper, exacerbating the effect of structural changes in paper end-uses and resulting in further decline in the demand of graphic papers in Europe. High costs and significant overcapacity continue to challenge the industry operators in Europe.

UPM is planning to permanently reduce paper capacity in Europe by a further 580,000 tonnes. The capacity reductions are planned to take place in Finland, Germany and France. The business environment also makes evident the need for streamlining of the Paper Business Group and UPM's global functions to remain cost competitive in the new business scale.
In early January, UPM finalized the employee consultation process in UPM Stracel, France, implying reduction of 270,000 tonnes of coated magazine paper capacity (coated mechanical paper). With UPM Stracel and today's plans, UPM would reduce a total of approximately 850,000 tonnes of graphic paper capacity in 2013.
UPM plans:
A permanent closure of paper machine 3 at UPM Rauma mill in Finland (SC paper)
A permanent closure of paper machine 4 at UPM Ettringen in Germany (SC Paper)
A sale or other exit of UPM Docelles mill in France (uncoated woodfree paper), and
subject to further analysis, streamlining in the Paper Business and UPM's global functions.
According to the plan the Rauma and Ettringen machine lines would be permanently closed by the end of first half of 2013. Both machines are producing uncoated magazine paper, in total 420,000 tonnes annually.

The process for selling the UPM Docelles mill will start immediately. The process will be given maximum six months. Docelles is producing uncoated woodfree papers, 160,000 tonnes annually.

UPM Looking for Buyer for Processing Business

UPM will begin a sales process to find a new owner for its further processing business in France including a planing mill in Aigrefeuille d'Aunis and related sales organization located in Lagord, near La Rochelle. This activity is part of UPM's Timber business area, and employs approximately 45 people. The sales process will be launched immediately and is expected to be completed by the end of July 2013.

UPM aims to find a buyer to continue wood processing in Aigrefeuille. In case UPM is presented with a binding offer, the company will proceed with the employee consultation process according to the French legislation.
UPM's plan to sell the Aigrefeuille mill follows the renewed Timber business strategy announced in April 2012. UPM concentrates on developing the sawmills closely integrated with the company's pulp and paper mills.
Aigrefeuille further processing mill operations will continue as usual despite the sales process.

UPM Preliminary Q4 Release

http://www.upm.com/EN/INVESTORS/Investor-News/Pages/UPM-changes-Paper-and-Energy-businesses%E2%80%99-asset-values-to-reflect-the-fair-values-001-Thu-17-Jan-2013-08-35.aspx

UPM's Q4 2012 results were broadly in line with the company's guidance. Operating profit excluding special items was approximately EUR 138 million, compared with EUR 147 million in Q4 2011, or EUR 122 million in Q3 2012. UPM expected its Q4 2012 operating profit excluding special items to be about the same or lower than in Q3 2012.

Profitability of Paper Business Area continued at previous quarter's level with reported operating loss excluding special items of EUR 10 million in Q4 2012.
UPM will publish its Financial Statements release 2012, including outlook statement on 31 January 2013 with analyst conference call as well as Finnish press conference on the same day.

Rolling Strikes Hit Stora, Spain

Rolling strikes hit Stora Ensoa s WLC mill in Spain:
Stora Enso's 70,000 tonne/yr white-lined chipboard mill in Barcelona has been hit industrial action after the CCOO union called on workers to down tools during 19 days, one day per week, until the end of April.

Appleton Adds Thermal Paper Capacity

Appleton Papers said it is in the process of adding 25,000 tons of lightweight thermal coated paper capacity to the US marketplace over the next several months.

"We began this initiative in December and will continue our efforts over the next few months," Appleton said in a letter to customers on Wednesday. "We expect to quickly increase our capacity for lightweight thermal paper by up to 25,000 tons annually in response to Koehler Paper Group's stated intention to leave the US market in April."

The Appleton move stems from a US Dept of Commerce (DOC) preliminary determination last month to significantly increase lightweight thermal import duties on Koehler's paper. The higher duty has not yet become final and was expected to be final by April. It's unclear if Koehler will appeal the DOC action taken last month or if it will fully exit the US market by April, as it said was possible last month.

China Confirms Capacity Closures

The Chinese government recently publicized its final capacity closure results for 2011 in 19 industries, claiming more than 8.31 million tonnes/yr of old pulp and paper (P&P) capacity was permanently retired that year.

The figure is a little higher than the target of 8.20 million tonnes/yr announced in 2011.
According to the results revealed jointly by the Ministry of Industry and Information Technology (MIIT) and the National Energy Administration (NEA), Henan province met its target of wiping out almost 1.84 million tonnes/yr of outdated capacity.
Hebei province shut down some 1.12 million, slightly higher than its target of 1.10 million tonnes/yr.
And Hunan province also met its goal, closing 990,000 tonnes/yr.
The capacity of outdated P&P equipment retired in the three provinces totaled 3.95 million tonnes/yr, 47.53% of the final results.
The two government organizations stressed that 13 PMs targeted for closure in 2011 with a combined 53,100 tonne/yr capacity at four mills in Guangdong provinces have not been dismantled, although production on them has been halted.

Cost of Renewable Energy Falling

http://www.power-eng.com/news/2013/01/16/international-renewable-energy-agency-falling-renewable-energy-costs-provide-wake-up-call-to-policy.html
Renewable energy has entered into a new virtuous cycle of falling costs, increasing deployment, and accelerated technological progress, a ground-breaking report by the International Renewable Energy Agency has found.

The cost of solar energy, for example, has dropped below the cost of diesel generation worldwide for communities living away from the electricity grid. 
The public debate around renewable energy, however, continues to suffer from an outdated perception that renewable energy is not competitive, forming a significant and unnecessary barrier to its deployment.

The Five Senses of Direct Mail

The Five Senses of Direct Mail. Whoda Thunk It?:
Direct mail can now deliver sight, sound, smell, touch, and taste. That’s all five of the human senses. And guess what? So far, mail is the only marketing medium that can do all that. Likely, for the next few years anyway, direct mail will remain — and vastly improve upon — this full sensory capability.

Quad Completes Acquisition of Vertis

Quad Completes Acquisition of Vertis: Quad/Graphics, Inc. announces that it has completed its acquisition of substantially all of the assets of Vertis Holdings, Inc., for a net purchase price of $170 million. This assumes the purchase price of $267 million less the payment of $97 million for current assets that are in excess of normalized working capital requirements. Quad/Graphics used cash on hand and drew on its revolving credit facility to finance the acquisition.

Canadian Union Protests Vertis Closure

Canadian Union Protests Lack of Compensation in Vertis Plant Closure:
A large printing plant owned by Vertis has been shut down in Fort Erie, Ontario, leaving the staff without jobs or compensation. About 100 members of the Communications, Energy and Paperworkers Union (CEP) Local 425G in the Niagara region have just learned of the closure and are confronting the company’s refusal to pay out termination and severance, required under Canadian law

Hearst: Brand Integration Driving More Business

Hearst’s Clinton: Brand Integration is Driving More Business:
Print may still be the breadwinner for most publishers, but multiplatform integration is now what’s behind any meaningful growth in ad revenue. Bringing a brand’s content and messaging across the entire media spectrum is where the fight for marketing dollars will be won. At Hearst Magazines, that concept has helped propel revenue in the first quarter above same-period 2011 levels. 

Newspapers Make Cuts

http://www.mediapost.com/publications/article/191234/paper-cuts-star-ledger-smaller-newspapers-slas.html#axzz2IGu25XgR

The litany of bad news for newspapers is continuing in 2013, with more layoffs and reductions in frequency. 
The Star Ledger of Newark, New Jersey’s largest daily newspaper, announced that it is laying off 34 employees, including 19 full-time employees and 15 part-time employees, according to the newspaper. The total will include 18 staffers from the newspaper’s editorial operations, or around 9% of the 195-person newsroom.

'Lucky' Announces Realignment, Names GM

Gillian Gorman Round Named 'Lucky' G.M. in a Realignment to More e-Commerce:
On Wednesday (Jan. 16), Condé Nast president (since July 2010) Bob Sauerberg announced a restructuring of the 12-year-old Lucky. What originally was a monthly for women's "brick and mortar" shopping is being expanded with a greater emphasis on e-commerce, which is getting a new platform.
The print edition and website (luckymag.com) are continuing.
The architect is Gillian Gorman Round (pictured), who moves from CN senior VP/brand development (a corporate job) to the new position of Lucky general manager. Round being in charge of all Lucky's business and editorial functions means that editor-in-chief (since Sept. 2010) Brandon Holley is reporting to her.

Warc Forecasts 4% Jump for 2013

http://www.research-live.com/news/financial/warc-predicts-4-global-adspend-increase/4008969.article

Advertising expenditure growth is expected to increase by 4% this year and 5.5% in 2014 despite the fragility of the global economy, according to Warc’s latest Consensus Ad Forecast. 
The Consensus Ad Forecast is based on a weighted average of adspend predictions at current prices from ad agencies, media monitoring companies, analysts, Warc’s own team and industry bodies. The figures are a slight increase on the 3.9% uptick estimated for 2012.

Pearson's FT Names CFO

http://www.bloomberg.com/news/2013-01-15/pearson-s-ft-group-names-viglatzis-as-chief-financial-officer.html

Tas Viglatzis was named chief financial officer at the FT Group, the Pearson Plc-owned division that manages the Financial Times newspaper.

BPA Solidifies Rule Changes

BPA Solidifies Rule Changes to Reflect Changing Media Landscape:
In an era of multiplatform media consumption, quantifying a large spectrum of metrics gets harder and harder. To provide clarity to its members, auditing agency BPA Worldwide has solidified several rule amendments that are scheduled to take effect immediately. In May 2012, the BPA Board allowed the reporting of digital copies served through applications as qualified circulation. At the time, it was determined that through authentication via an access code tied to subscriber registration or information, media owners had the ability to identify and quantify end-users, thus enabling publishers to report this as qualified circulation.

Folio: People On The Move

People On The Move | 1.17.13:
Jill Seelig has been promoted to senior vice president, publisher and chief revenue officers of O, The Oprah Magazine. Seelig was previously serving as the company’s publisher.m.
New York Magazine has named Genevieve Smith as its senior editor. Smith was formerly an associate editor at Harper’s.
Mary Kate McGrath has been named editor-in-chief at PureWow. McGrath was previously a senior editor at Real Simple.
Gregory Gatto has been promoted to publisher of The Bonnier Corporation’s Field & Stream, Outdoor Life and Shot Business. Gatto was previously director of advertising for the company. Eric Zincenko has been named executive vice president at The Bonnier Corpotation. Zincenko was formerly executive vice president of the company’s men’s group.