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PANAMA
PAPELERA ISTMEÑA'S
TAKES OVER PAPELERA DEL CARIBE (Story contributed by
RISI)
The competition authority of Panama approved Papelera Istmeña's takeover
of Papelera del Caribe last month. Papelera Istmeña first unveiled plans
to buy its local rival last year, but the deal was held up due to the antitrust
watchdog's investigation.
The authority ruled that the takeover would not restrict or impede free competition
in the Panamanian tissue market due to the presence of imports. As a result,
the watchdog authorized Papelera Istmeñ'f1a to acquire all the shares,
brands, and assets owned by Papelera del Caribe. The value of the deal was not
revealed. Papelera Istmeña is the larger of the two: its plant in El Dorado,
located to the northwest of Panamá City, can manufacture 16,000 tpy of
tissue. Papelera del Caribe can produce 11,000 tpy of tissue on the sole machine
at its plant in Tocumen, to the northeast of Panamá City.
EUROPE
SCA TO ACQUIRE P&G'S
EUROPEAN TISSUE OPERATION
SCA is to acquire Procter & Gamble’s entire
European tissue operations including a number of well-known
brands for Euro 512 million.
SCA said the acquisition is an important step in improving
profitability within SCA’s European consumer tissue
operations. SCA intends to further strengthen its product
offering of brands and supply of quality private label
products as well as greatly strengthening product development
based on an awareness of consumer needs. The acquisition,
which is structured as an asset deal, is subject to approval
from the relevant authorities. Exact timing will depend
on the successful completion of all regulatory processes
in Europe.
Jan Åström, President and CEO of SCA, said: “We
know that consumers throughout Europe are closely involved
with their tissue products. Many consumer have greater
demands than those being met by the market today. This
acquisition will help us to take important steps towards
improving our customer offer and profitability in our
European consumer tissue operation.”
The acquisition will give SCA access to additional established
high quality brands. SCA will acquire the Tempo brand,
the market leader in paper handkerchiefs in Western Europe
and Hong Kong. In addition, SCA will obtain an exclusive
licence in Europe to use the well known Bounty and Charmin
brands for kitchen rolls and toilet tissue respectively.
David Taylor, president of P&G's global tissue/towel
business, commented: “This is a strategic choice
to focus on continued growth of P&G's tissue, towel
and facial tissue businesses in the U.S., Canada, and
Mexico led by billion dollar brands Bounty and Charmin.”
With this acquisition, SCA will increase its branded
portfolio, providing the platform for consumer driven
awareness. SCA plans to invest significantly in the company’s
brands in terms of innovation and marketing over the
next few years.
The purchase price of Euro 512 million will be paid in
cash. Annual net sales are close to EUR 500 million.
The EBITDA margin is on a par with SCA’s total
tissue operations. SCA expects synergies to be considerable.
Procter & Gamble’s five facilities are included
in the acquisition. The plants are located in Manchester
(England), Witzenhausen and Neuss (Germany), Orlé'e9ans
(France), and Lucca (Italy) and have a total of approximately
1,100 employees. SCA will have good opportunities to
improve the supply chain and cost structure for the brands
involved. The acquisition will give SCA further possibilities
to optimize distribution and logistics to better serve
SCA´'b4s retail customers.
SCA’s European consumer tissue operations, in common
with those of other players, have been under pressure
in recent years. Rationalisation of the retail product
range, by retailers focusing on private labels products,
has led to increased pressure and frequent switching
of supplier by the retailers.
“At the same time, we have had sharply increased
energy and raw material costs. In this situation, few
players have invested in innovation and product development.
The result has been that the entire market has underperformed
in terms of profitability,” said Jan Åström,
and pointed out that the acquisition is important in
order to break this trend.
SCA’s aim is to be the undisputed tissue category
leader in Europe and the preferred choice for European
consumers and customers.
The first phase of this work is designed to restore these
operations to value creation by focusing on product development,
intensive efforts in under-performing markets and by
improving the level of customer service. The second phase
of this work will focus on balancing the product portfolio
towards a greater proportion of branded products and
quality private labels products, increasing the proportion
of strategic customer relations and growing the operations
for AFH tissue within new segments and new markets.
P&G's Charmin, Bounty and Puffs brands in the U.S.,
Canada, and Mexico are not impacted by the SCA transaction
in Europe. P&G said it expects that employees at
its five manufacturing plants in Europe will become employees
of SCA at the deal closing date.
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RUSSIA
METSO PAPER REBUILDS TISSUE MACHINE IN RUSSIA
Metso Paper has been selected to rebuild the press section of
the tissue machine at Naberezhniye Chelny Paper Mill, in the
city of Naberezhniye Chelny, Russia. The rebuild will comprise
the new Advantage ViscoNip press for energy savings, improved
bulk and flat profile. The new press section will start up during
the first quarter of 2008.
One Advantage ViscoNip press is already in commercial operation
and a second ViscoNip press has been sold to the Chinese tissue
producer HengAn. The Advantage ViscoNip press is designed to
optimize the performance
of new and existing press sections.
In 2006 Metso Paper delivered a new reel for the same tissue
machine at Naberezhniye
Chelny.
Naberezhniye Chelny Paper Mill is one of the largest tissue
producers in Russia. The entire production of more than 50,000
tonnes of base paper this year will be converted at the mill
into more than 300 million rolls of toilet paper accounting for
approximately 27 percent of total Russian production.
FRANCE
LPC SHOWS EUROPEAN CREDENTIALS AT PLMA
The LPC Group, the UK’s largest independent manufacturer
of tissue-based hygiene products, will continue its European
expansion by having its strongest ever presence at the private
label product industry's PLMA event in Amsterdam in May. The
Leicester based Company is in the process of acquiring manufacturing
sites across the continent in order to serve customers throughout
the EU and building on its position as the number one private
label supplier in the UK. LPC's recent activity has forced many
of its competitors to sit up and take note, as Executive Chairman
Amin Tejani explains: “We are in a phase of rapid expansion,
and people are being forced to recognise that we are now a major
player on the European stage. I'm confident that we offer the
very best own label products and services to retailers in the
UK. We'll be telling the European buyers that at PLMA in no uncertain
terms. We expect potential customers to be highly impressed with
what we are able to deliver in our home market, and it is now
a case of proving that we are as just as capable as delivering
abroad.” The LPC Group stand will showcase its latest market-leading
consumer products on a custom built stand, displaying how the
organisation's experience and expertise can prove invaluable
to European retailers.ends.
SWEDEN
METSO PAPER TO REBUILD
TISSUE MACHINE AT SCA LILLA EDET IN SWEDEN
Metso Paper is to rebuild PM 7 tissue machine at SCA
Hygiene Products AB, Edet Mill, Lilla Edet, Sweden. The
cost of the order was not disclosed. Start-up is scheduled
for November, 2007.
The rebuild comprises a new 16 ft (4875 mm) Metso Yankee
dryer, Advantage AirCap Yankee hood including air system
and heat recovery system, minor rebuilds to the wet end,
press and Yankee section, and sheet transfer section
including a TailThreader TIS tail threading system. The
purpose for the rebuild is to increase drying capacity
and operating speed.
PM 7 is a Beloit C-former machine built in 1967, which
has been rebuilt several times. Reel trim width is 3410
mm, the original Yankee dryer was 15ft (4572 mm) and
speed 1500 m/min.
The order includes complete dismantling, installation
and start-up service.
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