Reuters: Hot Stocks: UPDATE 1-Fortress Paper raises dissolving pulp output, shares up

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Fortress Paper raises dissolving pulp output, shares up Jun 11th 2012, 17:13 June 11 | Mon Jun 11, 2012 1:13pm EDT June 11 (Reuters) - Fortress Paper Ltd said it ramped up production of highly refined dissolving pulp, used in making rayon products, and increased its shipments to China, sending the company's shares up 16 percent. Production at the company's specialty cellulose mill in Thurso, Quebec has averaged 92 percent of its targeted capacity during the last 10 days, Fortress said. The mill, which has an annual production capacity of about 200,000 tonnes, started production in December. "We expect our dissolving pulp segment to provide a meaningful contribution to our financial results as the year progresses," said Chief Executive Chad Wasilenkoff. As newsprint demand continues to decline, paper companies such as Vancouver-based Fortress are looking at alternatives to arrest sliding sales and share price. Fortress last year converted a pulp mill in Quebec to produce dissolving pulp. Rayon made from this variety of pulp is in high demand as textile companies look to move away from expensive cotton. To boost its output of dissolving pulp, Fortress has already agreed to buy the assets of a non-operating pulp mill in Lebel-sur-Quevillon, Quebec. The specialty paper producer's shares hit a three-week high of C$22.80 on Monday on the Toronto Stock Exchange. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions