Rock-Tenn Co. intends to close its Lynchburg, Va.,

Rock-Tenn Co. intends to close its Lynchburg, Va., laminated paperboard products converting plant and consolidate the business into its other laminated products plants. The Lynchburg converting plant primarily manufactures components for the furniture and automotive industries and a variety of industrial products.

Customers of the plant will be served by other division operations. The closing of the Lynchburg converting operation will not affect the operation of Rock-Tenn’s Lynchburg recycled paperboard mill.

Harnischfeger Industries, Inc. announced that Beloit Corp., the sole North American based producer of pulp and paper machinery and systems, is rescaling its paper machinery group to include only the aftermarket business and portions of the tissue business. Harnischfeger indicated that Beloit is taking these actions while Harnischfeger pursues the sale of Beloit, in whole or in part.

As part of this action, Beloit has discontinued funding its operations in the United Kingdom, Italy, and Austria and accelerated previously announced closures of certain facilities in Wisconsin and Illinois. Paper machinery operations in Canada, Brazil, Poland, Michigan and Mississippi remain operational.

On June 7, the company and its U.S. subsidiaries, including Beloit, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Any sale of the Beloit businesses would require the approval of the Bankruptcy Court and the company’s board of directors.

The Mead Corp. announced that the company sold its 50 percent ownership in Northwood Inc. to Canfor Corp. Mead received $240 million Canadian in cash and convertible debentures of $77.5 million (Canadian) in the transaction. Canfor also acquired the 50 percent share of Northwood held by Nexfor Inc. and assumed the company’s long-term debt. Mead Pulp Sales and Northwood Panelboard Company are not included in the sale of Northwood Inc.

Willamette Industries will expand the company’s new French particleboard plant, build a steam turbine generator at the Hawesville, KY, pulp and paper mill, and relocate the company’s Elk Grove, Ill., corrugated container plant. In addition, the board announced management realignments and a quarterly dividend.

The board approved a project that will nearly double the capacity of the company’s particleboard plant in Linxe, France. The capital project consists of the addition of a new dryer, extension of the existing press line, and a new melamine laminating line, all of which should be completed in the fourth quarter of 2000.

A steam turbine generator will be added to the recently-expanded uncoated free sheet, bleached market pulp, and corrugating medium mill complex in Kentucky. The turbine will provide electricity for the mills and steam for mill processes. It is expected to go online in the third quarter of 2001.

The Elk Grove corrugated container plant will be relocated from its current leased facility to a larger plant site in the area. The board also approved expenditures for new equipment to modernize the operation.

Edwards Paper, a small tissue producer, announced plans to sell itself to LaCour International, the privately held Red Springs, N.C., converter and marketer of post-consumer waste sanitary paper products.

Edwards is a fully-integrated milling-converting producer of tissues, towels, wipes and dispensing systems. The company has sales, manufacturing and distribution facilities in Miami and Tucson, Ariz.

Westvaco Corp. agreed to acquire Mebane Packaging Group, Inc., a supplier of packaging for pharmaceutical products and personal care items with more than $130 million in annual sales.

Mebane is a privately held business headquartered in Mebane, NC, with seven packaging plants in Greenville, Miss.; Garner and Mebane, N.C.; Chatham and Kearny, N.J.; Memphis, Tenn.; and Caguas, Puerto Rico. Westvaco operates eight consumer packaging plants located in the eastern United States, the Czech Republic and Brazil.

The Newfoundland government is considering financially supporting a multi-million dollar de-inking facility for the province’s pulp and paper industry. A provincial feasibility study is underway with Corner Brook Pulp and Paper and Abitibi-Consolidated to evaluate the idea.

Inland Packaging had to close down its Newport, Ind., paperboard mill late last month due to problems with its power plant. The company has been attempting to redirect tonnage to other locations, while also looking to balance its inventory levels.

December 1999
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