Commercial Printing Industry News Briefs from Printing Impressions' February 2015 edition, including Wisconsin Web Offset, Verso Paper, Diversified Global Graphics Group (DG3), Presstek, Epicomm, 858 Graphics and NonStop Signs, Peczuh Printing and Printing Resource and Print and Graphics Scholarship Foundation (PGSF).
Greg Maule has been tapped to serve as senior vice president of U.S. operations at Catalyst Paper, and Linda McClinchy was chosen to be vice president of the company's U.S. supply chain. Maule was most recently vice president of manufacturing operations at NewPage Corp.; and McClinchy was vice president of customer service at NewPage Corp.
Yesterday, two momentous events occurred nearly simultaneously in the industry that makes coated paper for catalogs, magazines, inserts, and brochures. NewPage sold its Biron, WI, and Rumford, ME, mills to Catalyst Paper, which shifted about 12 percent of the nation's coated-paper capacity into Canadian hands.
The purchase of NewPage by Verso was completed a year and a day after it was first proposed. The U.S Justice Department, fearing a combined Verso-NewPage would have too large a market share, required the sale of the two NewPage mills for the takeover to be approved.
Catalyst Paper has completed the acquisition of the Biron paper mill located in Wisconsin and the Rumford pulp and paper mill located in Maine, that was previously announced on Oct. 30, 2014, from NewPage Corp., NewPage Wisconsin System, and Rumford Paper.
Verso Corp. has completed the acquisition of NewPage Holdings. With the completion of the NewPage acquisition, Verso will have approximately $3.5 billion in annual sales and approximately 5,800 employees in eight mills across six states. "The combination of Verso and NewPage creates a stronger, more stable company with an effective strategy to weather industry headwinds and reduce operating costs," said David Paterson, Verso’s president and CEO.
Catalyst Paper announced yesterday that it has entered into an Asset Purchase Agreement with NewPage Corp., NewPage Wisconsin System and Rumford Paper to purchase the Biron paper mill located in Wisconsin and the Rumford pulp and paper mill located in Maine for consideration of US$74.0 million, subject to certain adjustments. "With this Transaction, Catalyst will be better able to serve new and existing customers through operational synergies and a more diversified and higher value suite of products," said Joe Nemeth, president and CEO of Catalyst.
SAVANNAH, GA—For the second time in as many weeks, a paper mill accident has claimed the life of a worker.
RUMFORD, ME—Local police and officials from the Occupational Safety and Health Administration are looking into the circumstances that caused a contract worker to fall to his death Monday at NewPage Corp.'s paper mill here.
35-year-old Brant Munster of Newport, ME, died from a fall while working on a crane inside the NewPage Corp. paper mill in Rumford, ME. Munster, an employee of Somatex Crane, was approximately 28 feet off the ground doing repair work when he struck a roof support and fell, according to police.
At 11 p.m. Wednesday, Verso Paper Corp. completed a debt restructuring plan—a necessary step in its efforts to acquire NewPage Holdings, which operates paper mills in Wisconsin Rapids, Biron and Stevens Point.
Two types of Verso's debt—second-lien notes and subordinated notes—were restructured Wednesday, which are debts inferior to a company's first-lien notes. If a company goes bankrupt, holders of first-lien notes will be paid first, followed by holders of second-lien notes and then subordinated notes.
Verso was successful in getting 75.6 percent of creditors, who hold $299.5 million in second-lien notes, to reduce the amount the company owes in those notes by