Fortress Paper Provides Update on Fortress Specialty Cellulose Mill
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/25/13 -- Fortress
Paper Ltd. ("Fortress" or the "Company") (TSX:FTP) announces that the
cogeneration project at its Fortress Specialty Cellulose Mill is
nearing completion, with engineering and procurement completed and
overall construction progress continuing and currently at
approximately 94%. However, commissioning and start-up activities
have incurred delays as a result of various factors, including
unforeseen piping related delays, reduced manpower availability and
minor scope of work adjustments. As a result, the Company now expects
delivery of power to commence late in the first quarter or early in
the second quarter of 2013, and anticipates additional costs in the
10-20% range for the overall cogeneration project. Hydro Quebec is
aware of the postponement and the Company anticipates delivery of
power pursuant to the power purchase agreement in the normal course.
The Fortress Specialty Cellulose Mill continues to ramp-up its
production of dissolving pulp. Despite promising operating results in
November and December 2012, the mill has encountered challenging
ramp-up issues which are intrinsic to a dissolving pulp mill ramp-up.
The Company expects that the implementation of its comprehensive
"Operating Excellence" program will improve operating efficiency and
productivity in the near future.
Chadwick Wasilenkoff, Chairman and Chief Executive Officer of
Fortress Paper, commented: "Although the beginning of 2013 has
presented certain minor technical issues and constraints beyond our
control, we believe that these matters will be resolved in the near
term and we will continue on with our progress towards full
About Fortress Paper
Fortress Paper operates internationally in three distinct business
segments: dissolving pulp, specialty papers and security paper
products. The Company operates its dissolving pulp business at the
Fortress Specialty Cellulose Mill located in Canada, which is also in
the process of expanding into the renewable energy generation sector
with the construction of a cogeneration facility. The Company is also
seeking to expand its dissolving pulp capacity with the recent
acquisition of the Fortress Global Cellulose Mill
Lebel-sur-Quevillon, Quebec, which the Company intends to convert
into a dissolving pulp mill and where the Company intends to re-start
the cogeneration facility.
The Company operates its specialty papers business at the Dresden
Mill located in Germany, where it is a leading international producer
of specialty non-woven wallpaper base products. The Company operates
its security paper products business at the Landqart Mill located in
Switzerland, where it produces banknote, passport, visa and other
brand protection and security papers, and at its Fortress Optical
Facility located in Canada, where it manufacturers optically variable
thin film material.
This press release contains certain forward-looking statements that
reflect the current views and/or expectations of Fortress Paper with
respect to its performance, business and future events, including
statements regarding the timing of the completion of the cogeneration
facility at the Fortress Specialty Cellulose Mill; and the
effectiveness of its Operating Excellence program. The reader is
cautioned that forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties, assumptions and other factors which are difficult to
predict and that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements.
Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about the
business and the industry and markets in which the Company operates.
Forward-looking statements are not guarantees of future performance
and involve risks, uncertainties and assumptions which are difficult
to predict. Assumptions underlying the Company's expectations
regarding forward-looking statements contained in this news release
include, among others: that there will be no further unforeseen or
unexpected delays that will further impact the timing of completion
of the cogeneration project; and that the Operating Excellence
program implemented by the Company will address remaining issues
affecting the dissolving pulp ramp-up. Investors are cautioned that
all forward-looking statements involve risks and uncertainties
including, without limitation, risks that the completion of the
cogeneration facility at the Fortress Specialty Cellulose Mill will
not proceed as expected; that its Operating Excellence program will
not be effective and will not result in improved operational results;
that market conditions for dissolving pulp will not continue to be
favourable; and other risk factors listed from time to time in the
Company's public filings. These risks, as well as others, could cause
actual results and events to vary significantly. Accordingly, readers
should not place undue reliance on forward-looking statements, which
are qualified in their entirety by this cautionary statement.
Fortress Paper does not undertake any obligations to release publicly
any revisions for updating any voluntary forward-looking statements,
except as required by applicable securities law.
Fortress Paper Ltd.
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