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Catalyst Paper

Grand Mal

Russian warship, go f*** yourself!
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In March, Trump applied a duty to Catalyst Paper's products of 28.25%. Catalyst owns pulp and paper mills in three towns here in BC, including Powell River, about an hour from me and where I go when I go to town.

https://www.voiceonline.com/decision-paper-tariffs/

As a result, Catalyst has sold it's American mills in Rumford, Maine and Biron, Wisconsin for $175M US to Nine Dragons Paper Ltd., a Chinese company that trades on the Hong Kong exchange.

https://www.northislandgazette.com/news/catalyst-paper-to-sell-u-s-mills-to-chinese-company/

President and CEO Ned Dwyer said the sale allows Catalyst to pay it's debt and focus on it's BC operations.
It'll be worth watching what happens in Maine and Wisconsin. About 12 years ago I worked on Annacis Island dismantling a paper machine that had become outdated and packing it carefully into shipping containers to be sent to China. The price of this sale, $175M, sound lowball to me. Don't be surprised if those mills get dismantled.
MAGA!
 
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Don't be surprised if those mills get dismantled.
MAGA!



Sounds like it will be a good deal for the US.

The acquisition is an upstream integration of the Company’s current business and is an important step in executing the Company’s global fiber sourcing and customer strategy. The acquisition is expected to generate significant benefits for both the mill sites and Nine Dragons:

Nine Dragons will gain access to high quality virgin fiber, resulting in increased access to a more secure and cost-effective channel for raw material supply
Nine Dragons will diversify its manufacturing base
The acquisition and future capital investment in growing the mills’ capabilities in high growth packaging paper and pulp products will help invigorate the local Wisconsin and Maine economies, allowing them to stay competitive and prosper in the global market.

https://www.piworld.com/article/nine-dragons-paper-acquire-catalyst-papers-pulp-paper-mills/
 
Ya reckon? The phrases, 'global fiber sourcing' and 'Nine Dragons will gain access to high quality virgin fiber, resulting in increased access to a more secure and cost-effective channel for raw material supply' don't give you pause?

No, it doesn't give me pause. It probably should give BC mill workers pause, however.
 
No, it doesn't give me pause. It probably should give BC mill workers pause, however.

No, it's seen here as the company committing to the local communities.
What do you think Nine Dragons Paper meant when they said this sale gave them a source of fiber? Fiber being what's produced by a pulp mill and used by a paper mill?
 
No, it's seen here as the company committing to the local communities.
What do you think Nine Dragons Paper meant when they said this sale gave them a source of fiber? Fiber being what's produced by a pulp mill and used by a paper mill?

If you look up Nine Dragon's history, you'll find that they don't make bad deals. Sure, they got the mills for a bargain basement price but that only helps them -- it doesn't hurt them.

The US lumber industry is looking for places to sell their fiber -- this will open up more opportunities for them.
 
If you look up Nine Dragon's history, you'll find that they don't make bad deals. Sure, they got the mills for a bargain basement price but that only helps them -- it doesn't hurt them.

The US lumber industry is looking for places to sell their fiber -- this will open up more opportunities for them.

We'll see.
I looked them up and wasn't impressed. A 23 year old company operating in China and VietNam. What impresses you about them?
Whatever their reasons for buying mills in the US, you're guaranteed it isn't about what's good for Maine and Wisconsin. Catalyst has a good reputation in it's communities and this, selling US operations after the US government applies a punitive duty on their Canadian production, illustrates why they have a good rep. here. Nine Dragons won't be so community driven.
That reference to a source of fiber makes me wonder if Catalyst didn't have cutting rights and/or tree farms that are attractive to the Chinese company. If the paper end of those mills start to suffer a lack of pulp you'll know what the motivation is.
 
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