Fortress Paper reported 2014 first quarter EBITDA loss of $13.6 million. The Dissolving Pulp Segment generated EBITDA loss of $15.2 million and the Security Paper Products Segment generated EBITDA of $3.2 million. Corporate costs contributed $1.6 million to EBITDA loss.
After planned market downtime through to early March 2014, the Fortress Specialty Cellulose mill restarted production and continued to realize its swing mill capabilities producing 14,130 air dried metric tonnes ("ADMT") of northern bleached hardwood kraft ("NBHK") pulp. The Fortress Specialty Cellulose mill sold 8,849 ADMT of dissolving pulp and 11,410 ADMT of NBHK pulp in the first quarter of 2014. Subsequent to March 31, 2014 to-date, the Fortress Specialty Cellulose mill has sold approximately 6,000 ADMT of dissolving pulp and 8,700 ADMT of NBHK pulp.
Results from the Dissolving Pulp Segment reflect approximately nine weeks of market downtime in the quarter combined with challenges during the subsequent ramp-up of both the Fortress Specialty Cellulose mill and cogeneration plant. In addition, continued delays in negotiations with our customers due to the impact of the interim duty imposed by China's Ministry of Commerce ("MOFCOM"), the final determination of which was announced in April of this year, has resulted in higher logistics costs, such as demurrage, customs and storage.
In early March, production began with NBHK pulp and transitioned to dissolving pulp mid-April. The Company is encouraged by recent mill results as production efficiencies and cash costs improve.
The Security Paper Products Segment experienced a fifth consecutive quarter with sales, volumes and revenues significantly higher relative to any comparative period in 2012. The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. EBITDA for the Security Paper Products Segment for the quarter ended March 31, 2014 was $0.5 million higher when compared to the fourth quarter of 2013, and $5.3 million higher compared to the first quarter of 2013. However, less than favourable conditions, including the strength of the Swiss franc against the Euro, continue to adversely impact the results of the Security Paper Products Segment. The Landqart mill achieved over 2,500 tonnes of security paper sales in the first quarter of 2014, compared to 2,097 tonnes of security paper sales in the fourth quarter of 2013.
