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December 17, 2015 In This Issue
Weekly Spotlight
Market Roundup
Pulp & Paper
Containerboard/Packaging
Nanotechnology
New Products
Sustainability
Energy
People
Open Letter from Larry
TAPPI News
GapCon
Weekly Spotlight
More paper than ever is being used by doctors. Adult coloring books are becoming popular. Digital archiving will likely face future compatibility issues. For focusing, paper won’t notify us every time a spam email arrives, it can’t be accidentally tweeted mid-sentence, and perhaps most of all it will not shut down without a charger.
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TAPPI’s Ed Robie is retiring after more than 30 years as a meetings and events planner. He shares his plans for retirement with "Over the Wire" and reveals what made his time at TAPPI so rewarding.
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Are people becoming more young at heart than ever? In a generation that loves entertainment and fun it's possible. But it also might be based on the nostalgia of feeling pen on paper and a disillusionment with digital devices. More than 2,000 have hit stands since 2013, and prior to that the genre was practically non-existent.
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Under Project Saathi, the company wrote checks towards annual school fees of 48 Indian students this year who've been selected as beneficiaries under the project. About 24 students received funding for their second year of college education – intermediate or polytechnic as part of the IP India Foundation Scholarship.
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This record was set in partnership with the Atlanta Falcons and 1,146 participants, who dressed in the brand's signature plaid and came together on the Georgia Dome field after the Falcon's football game. The event also celebrated the announcement of a $50,000 donation by the maker of Brawny to Wounded Warrior Project®.
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The 2016 event will again feature the industry’s only peer-reviewed, non-commercial program exploring the latest advances in tissue making and converting technologies worldwide.
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Market Roundup
Production this past November was 1.1% higher than in November of last year. The month-over-month average daily production compared with October 2015 was 0.4% higher.
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Index edged back down to 57-month low in November, according to data released by the U.S. Bureau of Labor Statistics.
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Funding from government is projected to boost the nanocellulose market by 2023. Technical and economic barriers coupled with low consumer awareness are what currently hinders potential market growth. Nanocellulose is also reported to have potential to emerge in key end-user industries such as biomedical and electronics.
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The global paper moisture meter market is expected to register a single-digit CAGR for the forecast period. Paper moisture meters are used to know the effectiveness of the paper without damaging the material. Increasing packaging applications and growth in the need of paper for writing are driving the market.
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U.S. kraft paper shipments in November 2015 were 130,300 tons, 3% higher compared than in November 2014. Bleached kraft paper shipments decreased from 9,400 tons in October to 6,800 tons, while unbleached kraft paper decreased from 139,800 tons to 123,600 tons.
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Pulp & Paper
This authorization follows the successful completion of the company’s previous $100 million stock repurchase authorization, which was implemented by the board of directors in December 2014. Clearwater Paper expects to fund the repurchase through available cash resources.
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Crane makes currency paper substrate at its Dalton, N.H., USA, facility. The company's president of currency production has fond feelings for keeping the mill there. A regional newspaper profiled the company's domestic regrowth in Dalton as well as increasing sales overseas. About 20 have been hired. More are expected to join.
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The company is currently evaluating location options, primarily in the southern U.S. The new facility is expected to have an annual capacity of approximately 22,000 short tons, increasing the company’s total global airlaid materials capacity to approximately 129,000 short tons. The location will be close to several key customers.
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"Our purchase of this mill provides a significant opportunity for a strategic operator to restart the mill. In the event an operator does not materialize, we will provide buyers with the chance to purchase some highly desirable, late model paper and tissue equipment," stated Bob Maroney of Gordon Brothers Group.
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PM 11 will be able to be restarted in mid-March after the fire on November 20. Clean-up is complete, and that has enabled a better assessment of the damage caused. "The damage proved to be more extensive than it was initially possible to gain an overview of," said Holmen's CEO. A rotating axle wheel created the smoldering.
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The mandate reflects the Chinese government’s stepped-up anti-smog efforts in Beijing-Tianjin-Hebei region, Shandong, Henan, and Shanxi provinces following Beijing’s first red alert for smog last week. The red alert, the most serious level under a four-tier emergency response system, triggered shutdown of all urban activity.
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Due to recent changes in Japan's business environment, such as the reduction in circulation of newspapers, continuation and growth of the newsprint and printing paper business is assessed to be difficult. Osaka Paper will instead focus resources on its other main business in boxboard.
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PMP’s image modernization is a response to the significant metamorphosis that the company has gone through within the past couple of years and is an element of PMP’s new strategy for the years 2016-2018. PMP’s strategy has evolved from a "low cost solutions" philosophy into "optimum cost solutions".
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Pasaban
Containerboard/Packaging
DS Smith has confirmed that it will close its Wansbrough mill in Watchet in the county of Somerset, England, which also produces other products such as coreboard, on December 23, ending 265 years of papermaking in the town. The company said that the aging plant lost a major contract, contributing to the decision to close.
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The curtailment is expected to last seven days for the entire mill and will be extended an additional two days for certain product grades and paper machines. No other KapStone mill location will be taking market-related downtime during this period. This measure will not affect customer orders and service.
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GapCon will provide an extensive rebuild of its PM 6 press section. The scope of supply includes a modification of the press section, including an installation of GapCon EconPRESSTM shoe press and a consequent modification of the first dryer group.
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The executive director wrote a statement on behalf of the council after learning more about how the corrugated box industry is supposedly fear-mongering about food safety after a PPEC-member company recently received an emergency call to supply corrugated boxes because the crates that had arrived were moldy and unusable.
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The message came through that conventional presses and the papermaking businesses managing them are still the most effective and economical way to create boxes, not to mention the fastest ever. In Nicholasville, Ky., packaging printer WestRock set a pair of records in folding carton production on a KBA Rapida 164 press.
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Cenveo Packaging (Stamford, Conn.) operates six facilities across North America where it produces folded carton, shrink sleeve, and litho-laminated display packaging. Cenveo Packaging has generated more than $190 million in revenue during the past year. The transaction is anticipated to close in early 2016.
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Nanotechnology
The concept of producing water resistant and high oxygen barrier nanocellulose films with interfibrillar cross-linkages and high tensile strength (170–280 MPa) was formed through the introduction of specialized metal ions. The innovation will be featured and fully explained in the Journal of Membrane Science in February 2016.
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This new technology uses an eco-friendly technique of vacuum infusion of hydrolysis catalysts into biomass. Hamrick is also in the final stages of validating related vacuum infusion technologies, including technology for in-field fermentation of sugar cane, sugar beet, and sweet sorghum that requires no crushing or hot water.
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Commercial nanocellulose production capability is closer to becoming a reality than with other nanomaterials because of being an additional product formulated by the already established pulp and paper industry which is actively seeking profits for materials beyond newsprint and P&W paper
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The covering, which is made of nanocellulose and is antibacterial, substitutes for chemical paints and vinyl/cloth wallpaper. It is designed to be a thermal, acoustic insulator that is fireproof. Wallpaper production has altered to the point it is hardly a paper industry product anymore, but nanocellulose design could change that.
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New Products
The prototype printer designed by the company functions as an in-office paper recycling device. It uses minimal water consumption to create new pages for fresh printing. It allows offices to cut down costs and potentially reduce CO2 emissions by avoiding the whole process of transporting paper to recycling plants.
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Flowrox Smart, from a manufacturer of heavy-duty industrial valve and pump manufacturing and services, is dedicated to increasing productivity with optimization and online predictivity through automation and connectivity to help clients garner the full potential of Flowrox products as well as those from other manufacturers.
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In a new, eight-page, full-color catalog, each model features side-mounted transducers to eliminate "blind spots" on parts being cleaned, and a V-bottom for easy cleaning between batches (benchtop units feature flat bottom). In addition to machinery, the new catalog includes accessories to enhance solvent-free, green cleaning.
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"This is a legendary brand that is well-known throughout the print and design community for its combination of quality and value. We expect that the new Starbrite Opaque Select will quickly become the go-to choice in the uncoated paper category," said Dan Watkoske, SVP–print, for Veritiv.
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Sustainability
Graphic Packaging used approximately 10 million gal. per day (mgd) from the Sparta aquifer that supplies Northern Louisiana and Southern Arkansas before the reuse project. It now uses 5 mgd. The former Smurfit-Stone Container Plant in the region, now operated by WestRock, reduced Sparta use from 15 mgd to 8.1 mgd.
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IP was recently named by AF&PA as winner of one of the sustainability awards. A local newspaper profiled how IP received treated effluent from the Emerald Coast Utilities Authority that it uses in industrial processes. This allowed IP to reduce freshwater consumption, while ECUA found a beneficial outlet for treated effluent.
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The Stevens Point Mill in Wisconsin was judged in a competitive process on a comprehensive range of key sustainability areas, including energy, water, waste management, emissions, and transportation, as well as educational and community outreach.
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Energy
Empty coal plants sit unused, causing utilities to vigorously eye woody biomass to replace the operation. The infrastructure for woody biomass is essentially the same as that of a coal-fired power plant, making it an ideal replacement. Biomass meets baseload criteria for the U.S. energy grid, but emissions remain unregulated.
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IH2 technology is a continuous catalytic thermochemical process that converts a broad range of forestry/agricultural residues and municipal wastes directly into renewable hydrocarbon transportation fuels and/or blend stocks.
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The investment allows the group to turn sawdust – a by-product at the company's sawmill – into pellets, a high value source for renewable energy. The integrated pellet production at the sawmill will secure the best product quality and manufacturing efficiency.
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People
Smith made a difficult strategic decision to shift out of paper products and into consumer products, selling some K-C mills and investing the proceeds in brands such as Huggies and Kleenex. Twenty-five years later, K-C was at the top of its industry and remains a vibrant leader.
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Bernd Eikens has been with UPM since 1998, holding several senior leadership positions in the paper business. He is currently responsible for UPM Paper in Europe and North America, and will take over the business area as of Feb. 1, 2016.
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Effective Jan. 4, 2016, Juha Lappalainen will succeed Kari Saarinen, who was appointed Valmet's CFO in November.
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Clare Tolland has joined Smurfit Kappa Recycling (SKR) as regional manager for Northern U.K. with overall responsibility for the company's depots in Glasgow, Preston, and Blackburn. Alanna Greenaway has been appointed as the new commercial manager for SKR in Scotland.
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From 2012 until August 2015, Mary Winston served as EVP and CFO of Family Dollar Stores Inc., a retailer with nearly $11 billion in revenue, which was acquired by Dollar Tree in July 2015. Winston played a vital role in working to successfully complete the transaction and to plan for the integration of the businesses.
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Open Letter from Larry
The corrugated packaging industry creates one of those unique situations where it becomes a part of you. To this day, I still consider dumpster diving to seek out the BMC on the bottom of a corrugated box, to discover who made it.
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TAPPI News
TAPPI partners with the Paper Engineers’ Association in Finland. As part of our partnership, we offer a book series titled Papermaking Science and Technology. The series consists of 20 volumes that cover the entire paper manufacturing process from wood raw material to end product.
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The early bird registration deadline for two of TAPPI’s most popular courses ends on December 18. Don’t miss this opportunity to attend the Kraft Recovery Course or the Introduction to Pulp and Paper Course at the best rates!
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Voting has begun for the 2016 TAPPI Board of Directors. Be sure to cast your vote before January 15!
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