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Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital
David Fahrenthold Retweeted:Skyrocketing newsprint tariffs under the Trump admin have been opposed by all except one company: private-equity firm One Rock Capital Partners, owner of a single paper mill who secured the levies after taking their case directly to Wilbur Ross
Link to tweet
POLITICS
Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital
Private-equity firm headed by a Washington and Wall Street veteran pushed for the tariffs on behalf of its North Pacific Paper and hope they are affirmed in a coming trade-commission vote
By William Mauldin
https://twitter.com/willmauldin
Aug. 27, 2018 7:00 a.m. ET
When the Trump administration applied tariffs on imports of newsprint earlier this month, it brushed aside opposition from the Canadian government, the U.S. newspaper industry, printing companies, and a long list of lawmakers, including Democrats and Republicans. ... The tariffs, though, have been cause for celebration at private-equity firm One Rock Capital Partners LLC.
Government records show that a team from the New York-based firm approached the Commerce Department, including one meeting with Secretary Wilbur Ross, saying Canadian newsprint imports were hurting One Rock’s investment in North Pacific Paper Co., a paper mill also known as Norpac.
Commerce responded to One Rock’s appeal by setting tariffs on Canadian imports, causing newsprint prices to jump by as much as 30%, significantly lifting Norpac’s business prospects. “This was a complicated and unique case,” said Mr. Ross, himself a financier with a long history of financial transactions, including private equity. ... For Mr. Ross, the “bad actors” are Canadian paper mills that the Commerce Department says get access to wood fiber at below-market prices, giving them an advantage in making paper. U.S. lumber and paper firms have long blamed their Canadian competitors for gaining cheap access to trees cut on public land.
The Commerce Department’s tariffs only become permanent if the U.S. International Trade Commission, an independent government agency, votes that the alleged dumping and subsidies harmed American paper producers. Newspapers hope the commission will use its authority to nullify the tariffs, but Norpac’s lawyer say they believe the tariffs will be affirmed at the vote, expected on Aug. 29.
....
Write to William Mauldin at william.mauldin@wsj.com
Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital
Private-equity firm headed by a Washington and Wall Street veteran pushed for the tariffs on behalf of its North Pacific Paper and hope they are affirmed in a coming trade-commission vote
By William Mauldin
https://twitter.com/willmauldin
Aug. 27, 2018 7:00 a.m. ET
When the Trump administration applied tariffs on imports of newsprint earlier this month, it brushed aside opposition from the Canadian government, the U.S. newspaper industry, printing companies, and a long list of lawmakers, including Democrats and Republicans. ... The tariffs, though, have been cause for celebration at private-equity firm One Rock Capital Partners LLC.
Government records show that a team from the New York-based firm approached the Commerce Department, including one meeting with Secretary Wilbur Ross, saying Canadian newsprint imports were hurting One Rock’s investment in North Pacific Paper Co., a paper mill also known as Norpac.
Commerce responded to One Rock’s appeal by setting tariffs on Canadian imports, causing newsprint prices to jump by as much as 30%, significantly lifting Norpac’s business prospects. “This was a complicated and unique case,” said Mr. Ross, himself a financier with a long history of financial transactions, including private equity. ... For Mr. Ross, the “bad actors” are Canadian paper mills that the Commerce Department says get access to wood fiber at below-market prices, giving them an advantage in making paper. U.S. lumber and paper firms have long blamed their Canadian competitors for gaining cheap access to trees cut on public land.
The Commerce Department’s tariffs only become permanent if the U.S. International Trade Commission, an independent government agency, votes that the alleged dumping and subsidies harmed American paper producers. Newspapers hope the commission will use its authority to nullify the tariffs, but Norpac’s lawyer say they believe the tariffs will be affirmed at the vote, expected on Aug. 29.
....
Write to William Mauldin at william.mauldin@wsj.com
