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The recent spinoff from Noranda Forest Inc. and subsequent merger of three specialty paper producers has created one of the largest companies of its type in North America. The merger of Fraser Paper Ltd., Cross Pointe Paper Corp., and Thorold Specialty Papers is in keeping with some recent spinoffs and mergers within the industry as paper companies attempt to refocus on specific grades rather than manufacture a wide range of products.
A new name for the company had not been determined by the time this article was written, but the new company will be headquartered in Stamford, Conn. and had combined revenues of nearly $1 billion in 1995. The company will remain wholly-owned by Canadian based Noranda, but the spinoff grew out of NFI's corporate refocusing.
RETHINKING THE VISION. Noranda Forest went through a major restructuring in 1993 that transformed it from a holding company of wholly-owned and affiliated forest products companies into a manufacturer with a focus on wood products at the expense of paper. This spinoff is just another part of that refocusing effort.
John Wasserlein, president of the new specialty company, says the spinoff grew out of Noranda rethinking its corporate vision and strategy, which began in mid-1995. Wasserlein is the former president of Fraser Paper and was previously a senior vice president of Boise Cascade Corp.
"After thousands of hours of work, corporate management at Noranda decided to aggressively pursue a single product -- oriented strand board (OSB) -- and then develop a separate organization to focus on specialty papers," Wasserlein says.
Noranda was formed in 1987 by the amalgamation of Fraser Inc. and the original James Maclaren Industries. Noranda also owned the Thorold,, Ont., mill through a separate company -- Noranda Forest Recycled Papers. In the second quarter of 1995, Noranda purchased Cross Pointe Paper.
With five paper...