Chinese buy a stake in Vancouver Island pulp mill

By Gordon Hamilton, Vancouver Sun January 29, 2010

VANCOUVER — China’s largest producer of rayon fibre has bought an ownership position in a northern Vancouver Island pulp mill, providing it with needed capital and assured access to the Chinese market.

Port Alice’s Neucel Specialty Cellulose announced Friday that it has entered into a deal with Zhejian Fulida Ltd. that will inject new capital and ownership into the northern Vancouver Island pulp mill. Part of the deal includes a long-term supply agreement.

http://cep1123.wordpress.com/2010/01/29/chinese-buy-a-stake-in-vancouver-island-pulp-mill/

Water District Gives 10 Year Contract to Pulp Mill?

From Samoa Softball (Richard Marks)

http://samoasoftball.blogspot.com/2009/12/water-district-gives-pulp-mill-10-year.html

UPDATE (Times-Standard):

The owners of the shuttered Samoa pulp mill have brought a last-minute proposal to buy water to the Humboldt Bay Municipal Water District, which lodged a counter offer Thursday for a contract it believes would protect its ratepayers and shield it from the most risk.

http://www.times-standard.com/localnews/ci_13975661

Evergreen Pulp Fails to Make Payroll

http://samoasoftball.blogspot.com/2008/12/evergreen-pulp-busted.html

Richard Marks “Doomsday” Evergreen Pulp – Samoa Water Scenario

“If Evergeen does not pay its water bill in a timely fashion, the water is cut off in mid December. That means no water for DG Fairhaven, the pulp mill and the town of Samoa’s Fire Suppression System. That will likely mean the closure of Peninsula Union School District, The Historic Samoa Cookhouse and most likely, Inside Sports. Unless someone pays off a Fire Marshall.”

http://samoasoftball.blogspot.com/2008/11/evergreen-stuff-story-lawyers-water-and.html

Lee & Mann Evergreen Pulp Mill Stock Sale Filing

– 1 –
The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes
no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any
loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
DISCLOSEABLE TRANSACTION
On 15 October 2008, the Vendor and the Purchaser entered into the Agreement whereby the
Vendor agreed, inter alia, to transfer the Sale Shares to the Purchaser for an aggregate
consideration of HK$200 million.
The Transaction constitutes a discloseable transaction for the Company under Rule 14.06 of the
Listing Rules. A circular containing details of the Transaction will be despatched to the
Shareholders as soon as practicable.
Terms of the Agreement
Date: 15 October 2008
Parties: (i) the Vendor, an indirect wholly-owned subsidiary of the
Company.
(ii) the Purchaser – to the best of the Directors’ knowledge,
information and belief having made all reasonable enquiries,
the Purchaser and its ultimate beneficial owners are third
parties independent of the Company and Connected Persons of
the Company.
Terms: The consideration for the Sale Shares shall be satisfied by the
Purchaser by way of a cash payment of HK$200 million and to be
satisfied as follows:-
(a) HK$20 million on Completion;
(b) HK$30 million by 31 December 2008;
(c) HK$30 million by 31 March 2009;
(d) HK$30 million by 30 June 2009;
(e) HK$30 million by 30 September 2009;
(f) HK$30 million by 31 December 2009; and
(g) HK$30 million by 31 March 2010.
– 2 –
Completion: Completion took place immediately after signing of the Agreement
on 15 October 2008. Title in and ownership of the Sale Shares
transferred on Completion. USLM and HKLM are no longer
subsidiaries of the Company immediately after Completion.
INFORMATION ON USLM AND HKLM
USLM and HKLM are companies established in Colorado, the United States of America and
were both indirect wholly-owned subsidiaries of the Company immediately prior to
Completion. Both companies were mainly engaged in the manufacture of paper pulp outside
China and the Asian region.
REASONS OF AND BENEFITS FOR THE TRANSACTION
The Transaction provides a good opportunity to enable the Group to dispose of its interests in
USLM and HKLM for cash so as to allow the Group to pursue its principal business in China
with better return. Upon completion of the disposal of interests in USLM and HKLM, the
Group will continue to focus on its principal businesses in China. The sale proceeds to be
received create additional financial resources for the Group and will be used as working
capital to support further development of the Group’s principal businesses in China. There are
no restrictions which apply to the subsequent sale of the Sale Shares.
Details of the net loss (before and after taxation and extraordinary items) attributable to the
Sale Shares for the two financial years ending 31 March 2008 immediately preceding the
transaction are approximately:
2008 2007
Before taxation and extraordinary items
HK$1 million HK$53 million
After taxation and extraordinary items HK$3 million HK$42 million
The unaudited net assets of the Sale Group as at 30 September 2008 was HK$199 million, the
estimated gain arising from the disposal of the Sale Shares is approximately HK$1million,
being the difference between the net asset value of the Sale Group and the consideration for
the Sale Shares of HK$200 million.
The consideration of the Transaction is based on the net book value of the assets of the Sale
Group and in view of the above, the Directors are of the view that the terms of the
Transaction are fair and reasonable and in the interests of the Shareholders as a whole.
GENERAL INFORMATION
The Group is a large-scale paper manufacturer and specializes in the production of
containerboard.
– 3 –
To the best of the knowledge, information and belief of the Vendor, after having made all
reasonable enquiries, the Purchaser is engaged in the business of paper manufacturing.
The Transaction constitutes a discloseable transaction for the Company under Rule 14.06 of
the Listing Rules. A circular containing details of the Transaction will be despatched to the
Shareholders as soon as practicable.
DEFINITIONS
The following terms are used in this announcement with the meanings set opposite them:-
“Agreement” the agreement dated 15 October 2008 entered into between
the Vendor and the Purchaser relating to the Transaction;
“Board” the board of directors of the Company;
“Company” Lee & Man Paper Manufacturing Limited, a company
incorporated the Cayman Islands, the shares of which are
listed on the Stock Exchange;
“Completion” completion of the Transaction under the Agreement;
“Connected Person(s)” the meaning ascribed thereto in the Listing Rules;
“Directors” the directors of the Company;
“Group” the Company and its subsidiaries (other than the Sale
Group);
“HKLM” HKLM Acquisition, Inc., a company established in
Colorado, the United States of America, and an indirect
wholly-owned subsidiary of the Company immediately
prior to Completion;
“Listing Rules” the Rules Governing the Listing of Securities on the Stock
Exchange;
“Purchaser”
“Sale Group”
Worthy Pick Group Limited, a company incorporated in
the British Virgin Islands;
USLM, HKLM and their subsidiaries;
“Sale Shares” 1,000 shares of par value of US$1.00 each in the capital of
USLM and 1,000 shares of par value US$1.00 each in the
capital of HKLM, representing the entire issued share
capital of USLM and HKLM respectively;
“Shareholders” shareholders of the Company;
14.60(2)
– 4 –
“Stock Exchange” The Stock Exchange of Hong Kong Limited;
“Transaction” the transfer of the Sale Shares as contemplated thereunder
in the Agreement;
“USLM” USLM Acquisition, Inc., a company established in
Colorado, the United States of America, and an indirect
wholly-owned subsidiary of the Company immediately
prior to Completion;
“Vendor” Deepfaith International Limited, an indirect wholly-owned
subsidiary of the Company;
“HK$” Hong Kong dollars; and
“US$” United States dollars.
By Order of the Board
Lee & Man Paper Manufacturing Limited
Lee Wan Keung Patrick
Chairman
Hong Kong, 16 October 2008
As at the date of this announcement, the board of directors of the Company comprises four executive directors,
namely Mr Lee Wan Keung Patrick, Mr Lee Man Chun Raymond, Mr Lee Man Bun, Mr Li King Wai, one nonexecutive
director, namely Professor Poon Chung Kwong and four independent non-executive directors, namely
Mr Wong Kai Tung Tony, Ms Law Kar Shui Elizabeth, Mr Peter A Davies and Mr Chau Shing Yim David.
* for identification purposes only

http://www.quamir.com/quamir/openfiledetail.action?articleId=987441

The Evergreen Pulp Mill deal is dead – Grey’s Harbor

PUD pulls out of Cosi mill dealBy Leif Nesheim – The Daily World
Thursday, October 23, 2008 11:02 AM PDT

The Evergreen Pulp Mill deal is dead.

This morning the Grays Harbor PUD announced it has discontinued exclusive negotiations with Evergreen Pulp to purchase the Weyerhaeuser-owned mill’s powerhouse in Cosmopolis. The public utility district also won’t pursue the project as a stand-alone power generation facility.

The PUD entered into negotiations with Evergreen early this year to purchase the generation assets as part of a joint offer to buy the mill from the Weyerhaeuser Co. Evergreen would have bought and operated the mill, while the PUD would have purchased the powerhouse in a simultaneous deal with Evergreen.

“It is clear to the PUD that the deal with Evergreen is not moving forward and the likelihood that we would be able to successfully finalize a deal that would benefit rate payers has diminished,” PUD general manager Rick Lovely said.

Last week, Evergreen’s parent company, Hong Kong-based Lee & Man Paper Manufacturing, announced the sale of its U.S. assets, including Evergreen, which is based in northern California. The announcement came less than a week after Evergreen CEO David Tsang announced the closure of the company’s mill in Samoa, Calif.

Weyerhaeuser officials said this week that they are considering other options for the Cosmopolis Pulp Mill after Evergreen Pulp representatives missed a scheduled meeting Friday without explanation. Weyerhaeuser officials did not reply to messages left this morning by presstime.

Evergreen CEOs Tsang and Sam Wong also did not return calls this morning.

New cost estimates determined that it would be too expensive for the PUD to generate electricity at the mill without a partner using the mill, Lovely said.

more:  http://www.thedailyworld.com/articles/2008/10/23/local_news/02news.txt

Headwaters Fund: Healthy or hijacked?

John Driscoll/The Times-Standard
Article Launched: 03/21/2007 04:26:58 AM PDT

Click photo to enlarge«123»
On Feb. 27, 1999, the Times-Standard’s top headline shouted, “No Deal.”

The Pacific Lumber Co. had rejected the incredibly controversial $480 million deal to sell Headwaters Forest and other groves to the state and federal government and agree to a series of restrictions on its logging. “PL workers relieved,” was another headline.

But on March 1, the news was different. “Sold: Headwaters.”

The agreement set in motion a chain of events that still rattles today, and has been particularly hard on Palco workers. There were nearly 1,400 of them at the time; today, even including Arcata’s Britt Lumber Co., there are only about 550. They were good jobs, paying much more than the average wage in Humboldt County.

As part of the agreement, the state and federal governments recognized the economic blow the county would take. The federal government came up with a $10 million direct payment to the county. Former state Assemblywoman Virginia Strom-Martin lobbied the California Legislature for $20 million. What came through was $12 million.

On March 17, Strom-Martin and then-Gov. Gray Davis posed for a photo on the Humboldt County Courthouse steps, presenting a giant check for $12 million. On the memo line it read: “For jobs and job retraining for displaced workers.”

Over the course of years, the money was the backbone of what became the Headwaters Fund. Through lengthy public meetings, the purpose of
the fund was carved. What it became didn’t have much to do with jobs, or job retraining, for displaced Palco workers. In 2002, the Headwaters Fund charter was approved.

http://www.times-standard.com/local/ci_5486081

Does the Somoa, CA (Evergreen) mill signal the start of additional mill shuts?

Analysis of: Evergreen Pulp to Shut Down Indefinitely Due to Weak Market Conditions |

http://www.paperage.com

 Dave Hillman

Implications: This unbleached softwood mill was originally purchased about five years ago to supply UBK for Lee & Mann’s several linerboard mills in China. Last year capital money was spent to upgrade it to a fully bleached NBSK mill.  Since the demand in China is still there, does this mean that Lee & Mann can purchase NBSK more cheaply on the open market? 

Analysis: The Evergreen mill (formerly known as Somoa when it was owned and operated by Louisiana Pacific) could produce both an Unbleached Softwood as well as a TCF NBSK (but at high costs).  Lee & Mann was able to purchase the mill at a very low price from bankrupt Pacific Partners Ltd.  It was a minimum manpower mill with only 215 employees.  Cash costs were in line with other N.A. mills and, being located on a deep water port, found it easy to ship to China.  But, now the mill has been shut down indefinitely and will not reopen until pulp prices improve.  Some industry observers say this could be as late as 2010 because so many producers will be forced to keep pumping out pulp to generate cash flow.

http://www.glgroup.com/News/Does-the-Somoa-CA-(Evergreen)-mill-signal-the-start-of-additional-mill-shuts–28477.html

http://urlet.com/silliness.lone

Pulp mill settles water quality violations

John Driscoll/The Times-Standard

Article Last Updated: 09/24/2008 01:32:36 AM PDT

 

 

 

The Evergreen Pulp mill will pay $463,000 to settle state water quality regulators’ complaints over its discharge into the Pacific Ocean.

The mill discharges millions of gallons of wastewater daily into the ocean about 11/2 miles off the Samoa Peninsula and repeatedly violated the terms of its permit between March of 2005 and July of 2007. The violations are for effluent that essentially absorbs too much oxygen at the outfall, or has too many suspended solids in it.

The maximum penalty for the violations would be a staggering $59.3 billion, while the minimum that could be assessed is $77,000. Erik Spiess, senior council with the State Water Resources Control Board’s Office of Enforcement, said the $463,000 settlement reflects the $387,000 in economic benefits that the board estimates Evergreen got from not correcting the problems.

violations, in part, are for effluent that uses up too much oxygen where the pipe empties to the ocean, which can harm sea life. Called biological oxygen demand, the regulation was drafted to apply to discharges into lakes and rivers, where dilution plays a much smaller role than in an ocean.

Evergreen Vice President Rex Bohn said that the mill is working to improve treatment and filtration of its effluent.

”We are working on the problem on a daily basis,” Bohn said.

https://www.insidebayarea.com/california/ci_10544769

PULP MILL TRUTH

PULP MILL TRUTH

Information on Kraft Pulping Every kraft pulp mill – such as the Evergreen Pulp Mill on Humboldt Bay’s Samoa Peninsula – poses questions of potential health risk to residents in its vicinity. This web site – a factual critique of pulp mill community/environment ecology – is devoted to clarifying this important community issue. Pulp Truth provides accurate and hard to find information about pulp mill odors, hazardous air pollutants (HAP) associated with kraft pulp mills, the kraft pulping process and pollution control, Evergreen Pulp, Inc., medical and environmental studies.   Humboldt Bay in northern California has had a pulp industry since 1965.  During this time local residents, especially those living on the West side of Eureka near the mills, have had little access to detailed information about potential health risks associated with the pulp industry.  At one time in Humboldt County, a common saying  about pulp mill odors was, “it smells like money”.  In other words, the emphasis was on economics rather than health.  Today, less than two hundred people work at the one remaining pulp mill, with a few hundred others employed in directly related businesses.  At the same time more and more  residents are beginning to ask questions about possible health risks related to the aging local kraft pulp mill.  More and more people are asking for detailed information.  http://www.pulptruth.org/pages/1/index.htm