SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the Month of August 2004
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AMERICAN ISRAELI PAPER MILLS LTD.
(Translation of Registrant's Name into English)
P.O. Box 142, Hadera, Israel
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
|X| Form 20-F |_| Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): |_|
NOTE: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): |_|
NOTE: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
|_| Yes |X| No
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-______________
Attached hereto as Exhibit 1 and incorporated by reference herein is
the Registrant's press release dated August 31, 2004.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AMERICAN ISRAELI PAPER MILLS LTD.
(Registrant)
By: /s/ Israel Eldar
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Name: Israel Eldar
Title: Controller
Dated: August 31, 2004.
EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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1. Press release dated August 31, 2004.
EXHIBIT 1
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NEWS
Client:AMERICAN ISRAELI PAPER MILLS LTD.
Agency Contact: PHILIP Y. SARDOFF
For Release: IMMEDIATE
AMERICAN ISRAELI PAPER MILLS LTD. ANNOUNCES THE SIGNING
OF A TERM SHEET FOR THE PURCHASE OF NATURAL GAS
Hadera, Israel, August 31, 2004 - American Israeli Paper Mills Ltd. (ASE: AIP)
(the "Company") announced today that it had signed yesterday (August 30, 2004) a
term sheet for the purchase of natural gas from the partners in the Thetis Sea
Group (Noble Energy Mediterranean Ltd., Delek Drilling Limited Partnership,
Avner Oil Exploration Limited Partnership and Delek Investments and Properties
Ltd.).
The AIPM Group, as one of the largest cogeneration producers of steam and
electricity in Israel, regularly invests in the improvement and streamlining of
manufacturing processes, while promoting environmental aspects and meeting
strict standards. As part of its development plan and in light of the
availability of natural gas in Israel and the initial delivery of such gas to
private consumers in the coming year, the Company is immediately preparing for
converting its energy generation systems from using heavy fuel oil to natural
gas, a conversion that will bring about a significant savings in its energy
costs.
This process will be implemented in several stages. Initially, the steam boiler
located at the Company plant in Hadera will be converted to the use of natural
gas. The conversion of the steam boiler entails an investment of approximately
$3 million and was approved by the Company's Board of Directors that convened on
August 11, 2004. This conversion is scheduled to be performed in the first half
of 2005. The Company subsequently plans to join additional parties in
establishing a 400-megawatt electricity and thermal cogeneration plant, at an
overall investment estimated at $250 million. The aim of the investment is to
take advantage of the Company's capability to be a low cost and efficient
co-generator producer of electricity, and to make a significant contribution to
its financial results.
As part of the above-mentioned process, the said term sheet was signed, pursuant
to which the Company will purchase natural gas from the Thetis Sea Partnership
over a period that will end at the earliest of the following dates:
1. 15 years.
2. The date of completion of the delivery of an overall quantity of
natural gas, as determined in the agreement (minimum 0.4 BCM and
maximum 3 BCM).
The financial volume of the term sheet lies between $35 million and $260 million
over the term of the agreement.
The said period may be shortened, under certain conditions determined in the
term sheet.
It was further stipulated that the purchase of the natural gas was contingent
upon the completion of the laying of a natural gas pipeline to Hadera, by a date
to be agreed upon between the parties.
The term sheet is subject to the signing of a binding agreement.
In parallel, the Company is examining possibilities of acquiring additional
quantities of natural gas, necessary for the completion of its plans.