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U.S. Commerce Dept. Announces Final Coated Paper Duty Margins

September 21, 2010
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"Working together, the companies and the Steelworkers have fought for a fair and level playing field," stated George Martin, president and chief executive officer of NewPage Corporation. "Today's action is welcome news for the industry and its employees as they look to a future where they can compete fairly based on the quality of the products they produce, the investments that have been made in new technology, and sustainable forestry practices."

Mark Gardner, president and chief executive officer of Sappi Fine Paper North America said, "Commerce's recognition of the impact of dumped and subsidized products sends a message that our government is interested in restoring a competitive market in coated paper. We have presented before the International Trade Commission a clear and compelling case that these dumped and subsidized products have in fact injured our businesses, depriving our employees of enriching jobs. We are hopeful the Commission will recognize that injury in its final determination next month."

"Our members work hard and play by the rules," said Jon Geenen, USW International Vice President. "All they want is a fair chance to compete. This decision shows clearly what they've been up against in terms of unfair trade practices of the producers they have to compete against."

"It's time, once and for all, for us to have the rules of fair trade enforced and the government to stand up for their interests. The domestic industry has experienced capacity reductions and under-utilization resulting in the loss of jobs in communities all across the country. The petitions show that unfairly traded imports from China and Indonesia are a significant contributor to that underutilization of capacity, mill closures and resultant job loss," said Geenen.

The three companies employ about 6,000 production workers represented by the USW at 20 paper mills operating in seven states.

About Appleton Coated
Appleton Coated, headquartered in Kimberly, WI, provides focused market leadership in premium coated and specialty paper products. The Appleton Coated product portfolio includes a range of commercial printing and book publishing papers marketed under the Utopia® brand as well as specialty and private label products. Known for their performance, aesthetics, and environmental attributes, Appleton Coated manufactures their products in a state-of-the-art facility in Combined Locks, Wisconsin, hosting the newest papermaking machine of its type in North America. For more information please visit our website at www.appletoncoated.com/.

About NewPage Corp.
Headquartered in Miamisburg, OH, NewPage Corp. is the largest coated paper manufacturer in North America, based on production capacity, with $3.1 billion in net sales for the year ended December 31, 2009. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising.

NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.4 million tons of paper, including approximately 3.2 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper. For more information, visit www.NewPageCorp.com.

About Sappi Fine Paper North America
Sappi Fine Paper North America (SFPNA) is a leading North American producer of coated fine paper used in premium magazines, catalogues, books and high-end print advertising. Headquartered in Boston, MA, Sappi Fine Paper North America is known for innovation and quality. Its brand names, including McCoy, Opus, Somerset and Flo, are some of the industry's most widely recognized and specified. SFPNA is a division of Sappi Limited (NYSE, JSE), a global company headquartered in Johannesburg, South Africa, with manufacturing operations on four continents in 10 countries, sales offices in 50 countries, and customers in over 100 countries around the world. Learn more about Sappi Fine Paper North America at: www.sappi.com/na/.

About the United Steelworkers
The United Steelworkers (USW) is a North American union headquartered in Pittsburgh that negotiates labor agreements representing 850,000 active workers employed in metals, mining, pulp, paper, timber, rubber, chemicals, glass, auto supply, energy producing industries, plus the service and professional sectors to include healthcare, municipalities and pharmaceuticals. For more information: www.usw.org/.
 
Source: Press release.
 
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COMMENTS

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Most Recent Comments:
Robert Nost - Posted on October 06, 2010
You are both missing the point. Unfair trade doesn't only effect the paper industry. It has a negative impact on all manufacturing in this country. Until we all wake up and realize that this country can not prosper without a strong manufacturing base we will continue to hurt our economy. Simply put we can't compete against child labor, impoverished workers and unfair unfair manufacturing practices.
George Stulpin - Posted on October 01, 2010
How about the Dept. of Commerce checking into the dumping of Chinese printing in the US market. They are selling printing at 30 to40% below our cost. So now we will have a prosperous paper industry, but no printers!
charles - Posted on October 01, 2010
Tariffs on paper help the US paper industry but not the US printing industry. In additon to paper, they should also place high tariffs on printed products coming from China. We have all lost printing due to cheap chinese paper and laber.
Jeff Peterson - Posted on September 22, 2010
The only ones that get hurt by this move are all the US printers out there who have to pay a lot more for the same paper! All these big US paper companies are now flexing their power and making us small guys pay so much more for paper. I hope this tariff goes away really soon so we can start buying from China once again. I will not support any of these three paper companies or the old unions that have no place in today's business world. This is bad news for everyone in the printing industry except for the big paper companies!
Paul Carney - Posted on September 22, 2010
So the paper companies forgot their clients. You can now buy the whole printed product from China instead of just the paper. Domestic mills are free to raise their prices and who wins? It will soon cost more to print on the more expensive paper than to just buy the whole thing off-shore. Am I missing something?
Click here to view archived comments...
Archived Comments:
Robert Nost - Posted on October 06, 2010
You are both missing the point. Unfair trade doesn't only effect the paper industry. It has a negative impact on all manufacturing in this country. Until we all wake up and realize that this country can not prosper without a strong manufacturing base we will continue to hurt our economy. Simply put we can't compete against child labor, impoverished workers and unfair unfair manufacturing practices.
George Stulpin - Posted on October 01, 2010
How about the Dept. of Commerce checking into the dumping of Chinese printing in the US market. They are selling printing at 30 to40% below our cost. So now we will have a prosperous paper industry, but no printers!
charles - Posted on October 01, 2010
Tariffs on paper help the US paper industry but not the US printing industry. In additon to paper, they should also place high tariffs on printed products coming from China. We have all lost printing due to cheap chinese paper and laber.
Jeff Peterson - Posted on September 22, 2010
The only ones that get hurt by this move are all the US printers out there who have to pay a lot more for the same paper! All these big US paper companies are now flexing their power and making us small guys pay so much more for paper. I hope this tariff goes away really soon so we can start buying from China once again. I will not support any of these three paper companies or the old unions that have no place in today's business world. This is bad news for everyone in the printing industry except for the big paper companies!
Paul Carney - Posted on September 22, 2010
So the paper companies forgot their clients. You can now buy the whole printed product from China instead of just the paper. Domestic mills are free to raise their prices and who wins? It will soon cost more to print on the more expensive paper than to just buy the whole thing off-shore. Am I missing something?