Posts Tagged ‘banknotes’

The Globe and Mail lists Fortress Paper as a prime investment

Posted: Friday, February 26th, 2010

Over the past few weeks The Globe and Mail‘s Report on Business section has been taking a look at company stocks that tend to do well in the early stages of an economic rebound. According to Globe and Mail analysts, microcap companies – publicly traded companies that have a market capitalization of roughly US$250 million or less – tend to thrive in these post-crisis conditions.

This week, The Globe and Mail selected Fortress Paper as a microcap company poised to do big things in the coming months:

Fortress Paper Ltd., which has mills in Germany and Switzerland, makes security (such as currency notes) and specialty papers as well as wallpaper.

“It definitely has above-average profitability compared to other businesses that operate in the pulp-and-paper segment,” said Ralph Lindenblatt of Bissett Investment Management, a unit of Franklin Templeton Investments Corp.

“They have a proven management team, a self-sustaining business plan, strong balance sheet and opportunities to grow the business.”

The stock is “very attractively valued,” trading at 11 times trailing earnings, he added.

The Globe and Mail: “Microcap growth at a reasonable price”

VIDEO: BNN discusses Fortress Paper’s PM1 upgrade

Posted: Saturday, February 20th, 2010
bnn 300x221 VIDEO: BNN discusses Fortress Paper’s PM1 upgrade

Analyst Brian Pow predicted continued growth in Fortress Paper

Last week, Patt Bolland – host of BNN’s Trading Day – talked to Brian Pow, vice president of research and equity analyst for Acumen Capital, about Fortress Paper’s new PM1 upgrade and discussed how this change will have a positive effect on the company’s future.

Watch the clip HERE (the Fortress Paper segment begins around 3:10).

BNN: Trading Day

Fortress Paper Announces Signing of EUR 18.5 Million Loan for PM1 Rebuild

Posted: Saturday, February 20th, 2010

Fortress Paper Ltd. (TSX:FTP) (“Fortress Paper” or the “Corporation”) announces the signing by its wholly-owned subsidiary Dresden Papier GmbH (“Dresden”) of a loan agreement for EUR 18.5 million (CDN $26.5M) with GE Capital Bank AG in connection with the rebuild of Landqart AG’s (“Landqart”) papermachine no. 1 (“PM1″) to produce banknote papers. The loan agreement is for a 7 year term, fixed for the first 3 years at 7.09% per annum beginning after final drawdown which is anticipated to be early 2011. During the drawdown period, interest only payments will be required at 6.20% per annum.

The Dresden loan in conjunction with the previously announced Dresden factoring agreement for up to EUR 12 million, the Landqart factoring agreement to be finalized together with cash on hand will provide the necessary financing and cashflow for the rebuild of the PM1 machine. The rebuild increases Fortress’ banknote production capacity from the current 2,500 tonnes per annum to approximately 10,000 tonnes per annum.

PM1 is currently utilized for lower margin specialty papers and low to medium security papers. The rebuild is expected to be completed by the end of 2010, with banknote papers production from this rebuilt machine scheduled to begin in the first quarter of 2011.

MarketWire: Fortress Paper Announces Signing of EUR 18.5 Million Loan for PM1 Rebuild

Fortress Paper featured on CRN Digital Talk Radio

Posted: Friday, February 12th, 2010

crn Fortress Paper featured on CRN Digital Talk Radio

On CRN Digital Talk Radio, Erik Hines & Jack Roberts host The Erik & Jack Attack, where they share sixty minutes of exciting discussion, pop culture, politics, news, and anything else that may be on their minds. On Tuesday, February 9th the Boston bred conservative and the left coast liberal talked about Fortress Paper.

From their blog:

Did you know that there’s only one company in the world authorized to produce the Swiss franc banknotes, which are widely considered to be the most secure currency in the world?

Meet Fortress Paper, (TSX: FTP), an international provider of security and other specialty papers, which is the sole manufacturer of the banknote paper for the Swiss franc. They have also produced banknote papers for over 100 currency denominations for over 25 countries and are one of only nine authorized suppliers of banknote paper for the Euro currency.

New security realities in the 21st century have driven the need for ever-improving security features to be included in banknotes, passports, identification cards, checks and certification papers. The proliferation of color copying, scanning and printing technologies require that producers must continue to develop increasingly sophisticated anti-counterfeit solutions.

While governments continue to improve the quality of banknote paper, overall banknote circulation has continued to grow as a result of economic activity in developing countries and the introduction of the Euro in Europe. “Counterfeit money printing activity continues in several global hot-spots,” reports CSO Magazine.

CRN Digital Talk Radio: Erik & Jack Attack – “Chad Wasilenkoff, CEO of banknote-maker Fortress Paper”

Fortress Paper Gets Electronic Passport Contract

Posted: Thursday, January 14th, 2010

Fortress Paper Ltd (FTP.TO), a Canadian producer of security and specialty papers, on Thursday said it received a contract for electronic passports that will generate revenue of C$10 million over five years.

Fortress said it will make about 2.5 million electronic passports, enabled with radio frequency identification (RFID), which will contain the holder’s personal data and other biometric information.

The Vancouver, British Columbia-based company also said it plans to increase its banknotes production capacity to 10,000 tonnes a year from current 2,500 tonnes, helped by expansion at its Landqart Mill. The company plans to rebuild its paper machine and said the expansion would require a capital expenditure of about C$50 million.

Shares of the company closed at C$10.38 Thursday on the Toronto Stock Exchange.

By Gowri Jayakumar for Reuters, January 14 2010.

Reuters: “Fortress Paper Gets Electronic Passport Contract” “The Dollar Bill Goes High-Tech”

Posted: Wednesday, December 16th, 2009
watermark in durasafe monster 397x224 300x168 The Dollar Bill Goes High Tech

A watermark in a Durasafe bill helps prevent counterfeiting. (Courtesy

Counterfeiting has never been easier. All it takes these days is a fairly inexpensive color printer, some graphic design software and a willingness to spend a few decades in jail if you get caught.

But desperate times call for desperate measures, so criminals struggling in a tough economy and savvy with advanced printing equipment have figured out how to replicate bank notes. Some bleach $1 bills and print $100 bills; others use holographic wrapping paper available at any dollar store. And it’s not just the little guy. The big guys — the major crime syndicates — have set up complex printing operations to print illegal tender in large quantities.

Fake bills look remarkably similar to the real McCoy, with intaglio (textured printing) and holographic markings.

“Internationally, we have seen a marked increase in counterfeiting in the last five years,” says Bonnie Schwab, a consultant who worked for the Bank of Canada and has advised the Central Bank Counterfeit Deterrence Group. “Causes are improvement in technology available to the general public and to the traditional counterfeiters. More and more people with little skill in design and printing are able to download images and print to desktop printers.”

Because your basic inkjet printer is constantly improving in output quality, the best way to combat counterfeiting is not to create increasingly intricate designs, but rather to improve the paper it’s printed on.

Security fibers like these are embedded in bills from Fortress Paper.

One approach is to make the printing process and substrate — the layer beneath the surface of the paper — more complex and difficult to replicate, even for the pros.

Polymer-based currency, first developed in Australia, has become common and is harder to counterfeit. In 2008, Crane Currency started using a “nano thread” for $100 bills that allows the Bureau of Engraving and Priting to embed new security features, including a strip that becomes visible only when you hold the C-note up to the light.

The U.S. Treasury has taken other measures, including the new $5 bill with its color-shifting ink, an embedded watermark, and a different color that glows for each bill when you hold it up to an ultraviolet light source. Yet according to Schwab, because U.S. bills are so popular all over the world, they are a prime target for counterfeiters, and given enough time and the right technology, criminals tend to learn even the most advanced techniques.

A new option — announced at the Bank Note 2009 Conference in Washington last week — is a hybrid paper called Durasafe, which uses a three-layer substrate made with a polymer core and a 100-percent cotton outer layer.

Made by from Fortress Paper, Durasafe’s major advancement is a transparent window that can be any shape and size. Criminals have a hard time replicating these windows because of the complex printing process involved.

“Durasafe uses two substrates with a window in between, so that rules out printers and advanced color copier machines,” says Russell Stanley, a financial analyst with Jennings Capital.

Chad Wasilenkoff, the CEO of Fortress Paper, says Durasafe is also designed to last twice as long as traditional banknote paper, which is an attractive option for national banks — especially in the U.S. where, he says, there are as many as 1 million fake bills in circulation. Durasafe-based currency will stay in circulation longer and, Wasilenkoff says, the printing costs will be similar to traditional banknotes.

“Durasafe acts like a sponge for the polymer and improves the tactility of the bank note,” says Wasilenkoff, who explained why the touch and feel of a banknote are important for the “level one” security concern, meaning the first point of contact that criminals make. In most cases, counterfeiters pass fake bills off at nightclubs and McDonald’s or Starbucks in a chaotic or low-light environment. When a bill just doesn’t feel right, the cashier might take the time to inspect the currency.

Vancouver-based Fortress would not comment on which countries may end up using the bills, due to security concerns. But the company says the first mass-produced banknotes that use Durasafe will appear in late 2010.

–By John Brandon,

SOURCE: “The Dollar Bill Goes High-Tech”

VIDEO: Fortress Paper President & CEO on BNN

Posted: Monday, December 14th, 2009
chadbnn 300x219 VIDEO: Fortress Paper President & CEO on BNN

Fortress Paper President & CEO, Chad Wasilenkoff, on BNN. Click to watch.

Fortress Paper’s President & CEO, Chad Wasilenkoff, talks to the Business News Network (BNN) about his company’s focus on non-woven wallpaper & security paper, and speaks about upcoming innovations at their Landqart Mill in Switzerland.

Watch the BNN clip HERE, or by clicking on the image to the right.

VIDEO: Fortress Paper CEO Chad Wasilenkoff on Bloomberg

Posted: Friday, December 11th, 2009

Chadwick Wasilenkoff, chief executive officer of Fortress Paper Ltd., talks with Bloomberg’s Pimm Fox about demand for the company’s banknote paper.

Banknote 2009

Posted: Tuesday, December 1st, 2009
banknote2009 300x86 Banknote 2009

Banknote 2009: a four-day conference focusing on emerging trends in the banknote industry.

On December 6, global banknote industry leaders will head to Washington, DC for Banknote 2009 – a four-day conference that brings together the public and private sectors to focus on emerging trends in the banknote industry.

Though the Banknote conference began in 1998 as a specialty event focusing primarily on banknote substrates, it has become more focused in recent years on changing technologies and issues specific to the production, distribution, and security of banknotes.

Presentations at this year’s conference include a large number of security-related topics including presentations on Canadian and US counterfeiting situations and trends, a discussion of safety elements on the new Danish banknote series, and a lecture on improved overt and covert security features for banknotes, among many others.

The Banknote conferences are also a chance for banknote manufacturers, producers, suppliers, etc to discuss and introduce new products to the marketplace. One such company is Fortress Paper.

The international supplier of security and specialty papers is expected to introduce their new polymer banknote paper called Durasafe – a hybrid banknote that is not only highly durable, but also includes a transparent window as a security feature – in DC during the conference.

Banknote 2009 takes place in Washington, DC from Sunday, December 6 to Wednesday, December 9.
For more information visit their website.

Banknote 2009

Fortress Paper Announces Record Profits

Posted: Sunday, November 15th, 2009

This week Fortress Paper Ltd. announced a 52 per cent rise in quarterly profits, showing that while many companies are struggling during this period of economic downturn, they are thriving.

The company – which produces non-woven wallpapers as well as security and specialty papers (such as bank notes) – reported net income of $3.5 million for the third quarter of 2009, an increase of $1.5 million from the same quarter last year. The increase in profits earned shareholders $0.38 per share, up more than ten cents from last year.

Fortress Paper credits a strong quarter in banknote paper sales from its Lanqart mill coupled with consistent positive results at their Dresden mill:

“As the year has progressed it has become apparent that our mills have been able to endure the economic crisis and produce healthy results,” the company said in a press release this week. “The market for security papers, which includes bank notes, passport paper and other high security papers, continues to show strength and our order book for wallpaper base is experiencing its highest level of demand since the economic downturn.”

Fortress Paper