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Coldwater
 
August 6, 2015 In This Issue
Weekly Spotlight
Market Roundup
Pulp & Paper
Containerboard/Packaging
Legislative
New Products
Sustainability
People
TAPPI News
GapCon
Weekly Spotlight
More than 90% of students carry paper items every day. 94% of students say it's easier to concentrate while reading a paper copy than a digital version. Three out of five college students prefer to read on paper than on a digital screen. 80% of K-12 teachers say their students comprehend information better when they read on paper.
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Large companies are investing in "working forests," or regions that act as renewable sources of wood and paper pulp for industry. These are designed to "ensure sustainable harvests and restrict the subdivision or conversion of land to non-forest uses."
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"We considered many different options across our folding carton manufacturing footprint to improve service levels for our customers, strengthen our competitiveness, and support long-term growth. Ultimately, our decision was driven by the desire to position folding carton production closer to geographic areas in which the majority of our customers are located..."
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Tissue 101, scheduled for November 17-18 at TAPPI’s Training Facility in Peachtree Corners, Ga., USA, is designed to improve understanding of tissue properties and how they are impacted by the manufacturing process. Registration is now open and available online.
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"There have been some great contributions to the advancement of tissue and converting," says Scott Springmier of TAPPI, "and our TAPPI volunteers have decided we are long overdue to recognize them." The Tissue Division is establishing three new awards to recognize outstanding contributions in the industry.
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Market Roundup
On the basis of region, Europe (followed by North America) is anticipated to grow at a comparatively higher CAGR, as the market is escalated by factors including increasing disposable income, increasing specialty paper end-use application, and specialty paper's easy availability.
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Chile’s bleached pulp exports were down 9% y/y in first half 2015, according to data maintained by Chili Customs – Servicio Nacional de Aduana. During the same period, BSK (bleached softwood kraft) exports were down 5.7%, and bleached eucalyptus kraft (BEK) exports were off 12.2%.
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Green packaging will become more popular and production will expand as sustainability becomes a common theme in global markets and individual households across the globe. Opportunities exist for paper but there is emerging competition in bio-degradable plastics. Green packaging is currently being adopted by the F&B, healthcare, and personal care industries.
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A lot of innovations in designs and technological advancements have been witnessed by the industry in the last decade, which has helped stand-up pouches to enter new segments such as dry food, baby food, fertilizers, cement, paints, and coatings. Key paper companies noted in the sector include Smurfit Kappa, Sappi, and Mondi.
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Mexico’s bleached kraft pulp (BKP) imports are up 2.5% y/y through the first five months of 2015, according to INEGI data. Bleached softwood kraft (BSK) imports are up +4.6%, and bleached hardwood kraft (BHK) are down 0.2%.
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Eastman Chemical Co.
Pulp & Paper
Combined with its existing capacity, already in operation, the Três Lagoas unit will reach a total annual production capacity of 3 million metric tons, making it one of the world’s largest eucalyptus pulp production sites. Typical value of a project of this magnitude is approx. EUR 600 million.
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Conditions of the sale include a long-term supply agreement whereby Encapsys will continue to produce and sell microcapsules to Appvion that Appvion uses to produce its carbonless paper. Mary Goggans, VP and GM of the Encapsys division under Appvion ownership, has been named president of the now independent Encapsys LLC.
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Mochenwangen is an integrated mill in south Germany that produces book printing paper, offset paper, wall base paper, and backing paper on two paper machines. The two machines have a total production capacity of around 100,000 metric tpy. The mill has about 180 employees.
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According to IP data on its website, the company's level of spending makes the U.S. paper giant the nation’s largest railroad boxcar customer, the third-largest waterborne U.S. exporter by volume, and a leading user of the country’s trucks. Higher weight allowances could take 20% of IP’s trucks off the road with faster turnarounds.
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Embossing of tissue products is an increasing trend in Europe, where mature markets—with the recent increase of private labels—stand alongside developing markets in which the definition of quality is undergoing a rapid change.
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The new center has enough converting capacity to service the company's East Coast, Mid-Atlantic, and European customers. It has been mechanically operational since May and to date has hired 16 employees with plans to hire 40 more as the center expects to produce a capacity of 500 million envelopes per year.
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The digital photo paper production lines were shut down and disassembled in September 2014 for relocation as mandated by the Xushui County(China) government's urban redevelopment plan. Relocation of the digital photo paper production lines was completed according to schedule at a total cost below its original budget.
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As a result of the acquisition, Valmet will have a more extensive product portfolio and becomes a stronger technology and services company in its field. The operations employ 33 people in Italy. The acquisition is estimated to be completed by today (August 6).
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Naylor Association Solutions
Containerboard/Packaging
Speed, savings, and care are three distinguishing words for Amazon, the company notes. These expressions are not only ideas, but according to the company are keywords that became reality thanks to the new Box on Demand (BOD) system. This solution allows the saving of time and packaging costs.
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This acquisition significantly strengthens DS Smith’s operations in Spain, an important and growing market for corrugated packaging, taking its market share to approximately 10%. It also builds on the company’s recent acquisition of Andopack in calendar Q4 2014.
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The company’s last offer would provide 2% raises annually over six years, but KapStone’s attempt to cut costs with a higher deductible health care plan has proven a major sticking point. Under an impasse, an employer can implement a lockout at any time and employees could call a strike at any time.
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FiberMark is a specialty coating and finishing company with a strong presence in luxury packaging and overlapping technical product categories. The acquisition is expected to deliver synergies of $6 million per year within three years, with ongoing accretion (excluding one-time costs) of more than $0.40 per share.
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The company is progressing with plans for a new board machine at the Guangxi consumer board mill in China and also finishing conversion of the Varkaus mill’s fine paper machine in Finland. The board machine in China will be operational in 2016, the line in Finland to start by the end of this year.
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Legislative
Mill leadership began to investigate the use of compressed natural gas as an alternative, demonstrating pragmatic adaptability to changed circumstances. Replacing fuel oil with cleaner burning natural gas is reducing greenhouse gas emissions argued Owens. Anti-fossil energy and fracking protesters recently criticized IP's use of CNG.
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This is the highest duty rate on Canadian mills. J.D. Irving mill in St. John, N.B., and Catalyst Paper are facing an 11.9% duty. Resolute Forest Products in Montreal, Qué., is facing a 2% tariff. A portion of the high duty comes as a result of a power deal the mill argues was, upon completion, indirectly received through their private market.
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New Products
The company notes that this valve is an ideal choice for critical, zero-fugitive emission, high-purity or high-vacuum applications where the potential for hazardous emissions has to be eliminated.The bellows forms a flexible static seal that is leak-free.
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Strathmore Writing, Text, and Cover papers have been recognized as some of the finest stationery, letterpress, and printing papers in the world since 1892. Handcrafted with a distinctive touch and sophisticated palette, they add an image of luxury to printed communications.
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Naylor Association Solutions
Sustainability
Forest Stewardship Council Australia CEO Adam Beaumont was interviewed and said the draft also dealt with workers rights, Indigenous rights, assessing environmental impacts, and protection of waterways.
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Also included in KapStone's report is a materiality assessment review, which engaged stakeholders to evaluate perception of corporate social responsibility and sustainability. In the category of environmentally-sound product solutions, KapStone is pioneering innovative paper grades with significant environmental advantages.
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Jenny Reilly
People
Steve Blasczyk, as new production manager, brings more than 30 years of leadership and operational experience to his new role and also serves on the company’s Leadership Team.
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Kevin Gilligan joined Appvion in June 2014 as president of Appvion's paper division. He previously worked for H.B. Fuller Co., where his career included 20 years of management experience. He most recently served as VP of global operations, leading H.B. Fuller's operations.
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Poulsen joins Kemira from UPM, Finland. He has held various management positions at UPM and other leading companies in the forest and paper industry, and has considerable international experience, primarily from Asia and Europe.
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"Michael Wilson brings breadth and depth of specialty chemicals experience to Ingevity," said Steve Voorhees, CEO of WestRock. "His exceptional leadership skills and outstanding track record of delivering results will serve Ingevity and its stockholders well."
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TAPPI News
In addition to gaining a basic understanding of the more common IH hazards that may be present at their site, participants at this September 16-17 course will learn how to sample and measure those hazards and the primary methods of controlling and eliminating them, as well as the IH standards and exposure limits.
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TAPPI is partnering with IDCON to bring the Develop and Manage Preventive Maintenance course, September 14-15, and the Essential Care and Inspection Techniques course, September 16-17, both in Raleigh, N.C., USA. These courses are designed to help improve manufacturing reliability and lower costs.
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Throughout his career, Schulz made significant contributions to TAPPI, becoming a member in 1958, and continuing to support the association after retirement. He received a TAPPI Fellow award in 1996 as well as a TAPPI Leadership and Service Award in 2000 for his meritorious service and commitment.
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2015 TAPPI PEERS, October 25-28 in Atlanta, Ga., USA, offers solutions to your problems with more than 100 presentations, a new career development track, three workshops, and one informative biorefinery tour.
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With technology at our finger tips, you will hear how the paper industry is applying the latest innovations in intelligent packaging. Michael Carlisle, business development manager, Arjowiggins, will address the trends and new technologies that are emerging with intelligent packaging. Take advantage of Early Bird Registration by August 14 to save $200.
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This unique book reviews present knowledge of wood resin, deresination, and pitch control in pulp and paper mills, and describes the effects of wood resin on the properties of paper. It is available to TAPPI members for both a discounted member price and a special summer promotional sale price.
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Valmet is currently seeking a VP of North American Sales and Service-Automation at its Duluth, Ga., USA, location. Qualified applicants will possess a minimum of five years of Sales and Service management with P&L experience. The ideal candidate will have previous experience in the pulp and paper, power, or related industries.
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Take your recruiting efforts to the next level at the industry’s leading Career Fair event.
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Register today for IBBC and learn how others are successfully utilizing biomass to reduce operating costs.
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The only Improving Paper Machine Performance Course to be held in 2015 is scheduled for October 13-15 in Peachtree Corners, (Atlanta) Ga., USA.
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