Fortress Paper enters into dissolving pulp supply agreements

Fortress Paper Ltd. has entered into dissolving pulp supply agreements with two producers of viscose fibre (rayon) products located in China, for the delivery of an aggregate of approximately 84,000 air dried metric tonnes ("ADMT") of dissolving pulp per annum at a purchase price based on prevailing market prices in China, subject to a minimum price of $1,200 per ADMT and a maximum price of $1,600 per ADMT. The pulp supply agreements are each for a term of five years, with Fortress commencing the supply of dissolving pulp in the 3Q 2011, company said in a statement received by Lesprom Network.

Dissolving pulp will be supplied by the Fortress Specialty Cellulose Mill which is planned to have an annual production capacity of more than 200,000 ADMT upon its completion, which is expected to occur in mid-2011.

Chadwick Wasilenkoff, CEO of Fortress Paper, commented: "These dissolving pulp supply agreements will provide a hedge against potential volatility in future dissolving pulp prices which we believe should provide greater normalized operating results in this segment."

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada.