2018 International Forest Industries IFI April May 2018 Digital | Page 14

LUMBER PROCESSING NEWS
Suzano and Fibria to merge
Brazil’s largest pulp producers,
Suzano Papel E Celulose S.A. and
Fibria Cellulose announced, the
controlling shareholders of Suzano
Holding S.A. and Fibria Celulose
S.A. have agreed to a merger of the
two companies.
Under the proposed terms of
the deal: Suzano being entitled
to the total share capital of Fibria;
and Fibria’s shareholders receiving,
in exchange for each common
share of Fibria the amount of R$
52,50 (fifty two Brazilian reais
and fifty cents), adjusted by CDI
from March 15, 2018 up until the
effective payment date, to be paid
in one installment on the closing
date of the transaction; and 0,4611
common share issued by Suzano to
be delivered on the closing date of
the deal.
The closing of the transaction is
subject to certain conditions typical
to transactions of this nature,
including the approval by antitrust
authorities in Brazil and in other
jurisdictions.
Fibria is the world leader in
eucalyptus pulp production with an
annual pulp production capacity of
7.25 million tons.
Stella-Jones reports 4Q sales increase of 10.4%
Stella-Jones Inc. announced
financial results for its 4Q and
fiscal year ended December 31,
2017. 4Q 2017 sales amounted
to $377.4 million, representing
an increase of 10.4% from $341.7
million a year ago.
Operating income totalled $29
million, or 7.7% of sales, in the
4Q 2017, versus $28.2 million,
or 8.2% of sales, last year. The
increase in absolute dollars reflects
higher business activity, while the
decrease as a percentage of sales
is mainly attributable to the sales
mix within each product category
and softer pricing in certain
regions.
4Q 2017 net income was $51.1
million, or $0.74 per diluted share,
up from $18.5 million, or $0.27
per diluted share, in the prior
year. The increase reflects the
aforementioned tax benefit.
FY 2017 sales reached $1.89
billion, up 2.6% from last year’s
sales of $1.84 billion. FY 2017
operating income was $207.4
million, or 11.0% of sales, compared
with $233.2 million, or 12.7% of
sales, in 2016. The decrease as
a percentage of sales is mainly
attributable to lower selling prices
for railway ties, a less favourable
geographical mix in the utility pole
category and increased untreated
lumber costs in the residential
lumber category. These factors
were partially offset by a reduction
in selling and administrative
expenses, as well as favourable
year-over-year variations in certain
provisions and in foreign exchange
gains and losses.
Net income for 2017 increased
9.1% to $167.9 million, or $2.42
per diluted share, up from $153.9
million, or $2.22 per diluted
share, in 2016. The year-over-year
increase reflects a one-off non-
cash tax benefit of $30 million
recorded in the 4Q resulting from
the remeasurement of deferred
tax liabilities following a reduction
in the U.S. top federal corporate
income tax rate.
Stella-Jones Inc. is a leading
producer and marketer of
pressure treated wood products.
The Company supplies North
America’s railroad operators with
railway ties and timbers, and the
continent’s electrical utilities and
telecommunication companies with
utility poles.
Sveza completes the acquisition of the
Tyumen Plywood Mill in Russia
Sveza has completed the
acquisition of the Tyumen Plywood
Mill group. The deal was approved
by the Russian Federal Anti-
Monopoly Service (FAS).
The Tyumen Plywood Mill is
one of the most modern wood-
processing and plywood production
enterprises in Russia. The mill
produces about 92 thousand
cubic meters of plywood every
year. Its main production facilities
commenced operation in 2008. The
mill specializes in the production
of large-sized plywood. Its product
range includes plywood of 16
different sizes.
“The purchase of the Tyumen
Plywood Mill is yet another step in
implementation of SVEZA’s strateg y
to increase production capacity
including by means of expanding
the portfolio of assets with a high
growth potential,” says Anatoly
Frishman, SVEZA’s CEO. “We are
planning to gradually integrate
this business into our company’s
structure by unifying best practices
that we and the purchased asset
possess. We believe the annual
production capacity of the Tyumen
mill can be increased up to 120
thousand cubic meters.”
Denis Trufakin has been
appointed the director of the
Tyumen Plywood Mill. Since
Rex Lumber adds profiling to its HSS
Rex Lumber of Brookhaven, MS has
invested in updating its existing
horizontal shape sawing gang
(HSS), and recently decided to add
profiling to this process. Adding
profiling will reduce the load on the
edger, eliminate the need for the
sort station, and facilitate a much
12 International Forest Industries | APRIL / MAY 2018
more efficient process.
Profiling can be added to your
primary breakdown or gangsaw
process.
2007, he has worked at SVEZA
Verkhnyaya Sinyachikha mill
in the areas of process/quality
engineering, maintenance,
production management &
planning, and investments.