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Coldwater Seals, Inc.
 
Thursday, November 15, 2018 - Member In This Issue
Weekly Spotlight
From The Experts
Market Roundup
Pulp & Paper
Containerboard/Packaging
Legislative
Nonwovens
Nanotechnology
New Products
Published Pricing
Sustainability
Energy
People
TAPPI News
Cristini
Weekly Spotlight
Tissue business will continue operations. Between 120 and 140 jobs will remain at the mill. Closures aren’t expected to start until Q2 of 2018. Dive in sales of communication paper (for printers, copiers, etc.) were cited as the reason that the shut down was scheduled. Many people felt closure was imminent. G-P purchased in 2005 and over the years the number of employees were repeatedly reduced. A final motivation for the decision may have been being charged county's largest property tax bill, $1.77 million.
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Companies that have developed technologies to convert woody biomass into ethanol and other fuels and bio-products are waiting for the EPA to deploy their technologies. These fuels are particularly promising since they are advanced, second-generation biofuels that produce significantly fewer emissions, utilize less cropland, and don’t compete with our food and agriculture supply the way that corn ethanol does.
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Two Sides’ anti-greenwash campaign has investigated 921 organizations worldwide. Of these, over two-thirds were found to be using unsubstantiated claims regarding paper’s impact on the environment, usually in breach of local advertising regulations. After being challenged by Two Sides, a total of 335 organizations have now removed or changed their messaging.
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The January/February issue will feature a NEW SECTION - Company Spotlight. Any company who advertises with a 1/4 page or larger will get a complimentary spotlight listing that will include a product image, logo, and 150 word description. Advertisers will also receive exposure for two months on the Paper360° media website, and bonus distribution at PaperCon.
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From The Experts
"Corrugated’s packaging-of-choice position could also be attributed to its widely recognized environmental friendliness. Natural, renewable, 100% recyclable and biodegradable, corrugated packaging can be made, used, reused and ultimately disposed of sustainably," - from a new article published by Ken Chrisman, president of Product Care Division, Sealed Air, this morning (Thursday Nov., 15, 2018).
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Market Roundup
According to the new market research published by MarketsandMarkets™, the Paper Chemicals Market is projected to grow from $36.4 billion in 2018 to $40.2 billion by 2023, at a CAGR of 2.0%. Growth factors include high demand for paper bags and packaging solutions to replace plastic. Pulp chemicals share is growing as the largest segment of the paper chemicals market during the forecast period. Members can click to learn more for access to the additional full analysis text.

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Merichem Company
Pulp & Paper
The operation, completed by a team of qualified technicians, allowed the machine to reach the speed of 1500 mpm for the production of high quality tissue paper. The ambitious project was carried out in full compliance with the client’s expectations, which complimented the team of A.Celli Paper for the excellent work performed.
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One-side coated product segment, a part of the Food Packaging business in the Specialties business area, is a segment where the markets have significant overcapacity globally, especially in Europe and the company’s offering is not optimally aligned with the strategy of niche orientation in customized solutions.
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Security fibers are added to the coated abrasive backing paper to secure that it is easy for producers to identify the quality of the product and avoid counterfeits. The fibers are embedded in the backing paper during manufacturing and include both colored and fluorescent fibers.
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$110 million purchase price represents a 4.3 times EBITDA multiple based on Elliott’s twelve months trailing EBITDA. The transaction will be completed in two phases with 49% being acquired on closing and 51% being acquired one year later. Elliott has a production capacity in excess of 210 million board feet and the sawmill consists of both large and small log lines.
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"With the [3.9 billion] acquisition of VIDA, we are excited to become a truly international manufacturer and provider of wood product solutions for our global customers," said Don Kayne, President and CEO of Canfor. "This transformational growth will allow Canfor to further diversify and secure a worldwide fiber supply to meet the growing demand of our customers for high-quality wood products."
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The tentative agreement with the company affects 500 employees and three Unifor locals. Union national representative Stephen Boon said details will be released after voting is complete next week, but adds that the contract does "achieve Unifor's Eastern Canada Pulp and Paper Pattern."
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DS Smith's previously announced intent to purchase Europac gained approval on Wednesday (Nov. 14). Suzano Papel e Celulose acquisition of Brazilian peer Fibria Celulose (notified Oct. 9/deadline extended to Nov. 29 from Nov. 15 after commitments submitted).
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Investment is expected to create jobs for domestic workers. The pulp and paper industry is now one of the sectors whose development is prioritized according to Government Regulation on the National Industrial Development Master Plan.
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Projects affected include, but may not be limited to, International Paper facilities in Rome, Georgia; Prattville, Alabama; Pine Hill, Alabama and Selma, Alabama, Paperitalo Publications was told. Some other sources have said the project stall may be related to another situation overseas while other contractors believe work will begin to resume again soon, likely soon after the beginning of the new year, and the either indefinite or (as many will hope for as signs of industrial financial health as well as employees of IP feeling a sigh of relief) simply due to needing to carefully and wisely balance within its current budget situation for the rest of 2018.
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Purchase price was $62 million and ND announced plans for expansion. The pulp mill joins two others owned by ND Paper in the U.S., with the others located in Maine and Wisconsin. The Fairmont mill is the only one to actually recycle pulp, while the others manufacture paper.
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"MinerPa®" will be produced at 450 tpy with not only deodorizing/antibacterial properties but also new functionalities such as antiviral properties to meet the customer's demands. Furthermore, the company stated it will continue to search for promising business areas and work for developing new applications through large-scale sample work in a wide range of fields.
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Warehouse Specialist
Containerboard/Packaging
Investment includes a state-of the art molded fiber packaging manufacturing line as well as modernization of an existing line in the Ivanteevka unit. The water management system of the facility is updated as part of Huhtamaki’s continuous efforts to minimize the environmental footprint of its manufacturing operations. The new line is to be operational during Q4 2019.
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German Packaging Leader Klingele strengthens its position in the Spanish market by purchasing corrugated packaging manufacturer. Klingele is a founding member of the Blue Box Partners Alliance, which provides European companies with innovative packaging solutions in consistent quality.
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Under its new ownership, the business will have the same organizational structure, management team and growth culture that has served Kodak’s Flexographic Packaging Division well in recent years. Chris Payne, who has served as president of the Flexographic Packaging Division for the last three years, will lead the new company as CEO.
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EUR 6 million investment will increase the annual capacity by a further 30,000 metric tons to 370,000 metric tons and will help the mill respond to growing demand. The BCTMP produced in Kaskinen is used both for Metsä Board’s folding boxboard production as well as for market pulp. High quality BCTMP helps provide important properties for folding boxboard such as light weight.
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In addition to the new sheet cutter the investment includes additional automation to the existing sheet cutters as well as equipment for cutter reel handling and storage. The new sheeting line will be located in the existing sheeting plant and production is planned to start during September 2019.
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Acquisition provides TRG a superb manufacturing facility in the northeast corridor while complimenting TRG’s retail headquarters in Marlton, N.J., USA. TRG Mid-Atlantic will be the 14th converting location for TRG and adds an array of equipment including a corrugator, three 7-Color Flexo Die-cutters and multiple state-of-the-art gluers.
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Legislative
It was reported this past month that the Dept. of Labor reconsidering Trade Adjustment Assistance benefits. The benefits are meant to support workers displaced due to foreign import competition or offshore outsourcing of jobs.
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Nonwovens
Rayonier Advanced Materials is a producer of advanced cellulosic films, coatings, textile-like sheets (nonwovens). "This ASR [$25 million] is consistent with our disciplined and balanced capital allocation strategy for our significant free cash flow," said their CEO. "Upon completion of the ASR, we will have repurchased a total of $40 million of the $100 million repurchase authorization provided by our Board."
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This past month an announcement was made that the company was now in the process of creating positions at the company's downtown location that would total 79 new openings. The company said the jobs will be professional and administrative roles averaging approx. $69,000 dollars per year. These type roles will be open as part of the company's recent $2 billion acquisition of Tembec and its 15 operating plants.
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Nanotechnology
A team of Penn Engineers has demonstrated a new material they call "nanocardboard," an ultrathin equivalent of corrugated paper cardboard. A square centimeter of nanocardboard weighs less than a thousandth of a gram and can spring back into shape after being bent in half. Corrugating nanomaterial in the style of paper / corrugated board types could represent a breakthrough due to the discovery of its ability to add ten times the stiffness to tested structures vs. solid mass.
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New Products
Until recently, running paper on a vertical Form-Fill-Seal bag machine was not possible. Plastic was the only option. Now all that has changed. The first paper-based, biodegradable bag for food that runs on horizontal and vertical Form-Fill-Seal (FFS) machines has been developed.
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POLAR Transomat 3 BL with chip marker option takes lifts off the stack in one go which are as high as the cutter's full clamp opening. The Transomat pusher or an optional gripper loading system transports the reams directly onto the rear table. (The advantage is that material flows won't cross each other).
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OSI Software Inc./OSIsoft Canada
Published Pricing
This decision is driven by the significant rise in freight, energy, packaging, mining, and labor and maintenance costs in 2018, a trend which is expected to continue in 2019.
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Prices for chemicals, energy and pulp have seemingly stabilized, but remain at a historical all‐time high. The cost explosion that has happened over the past one and a half years was not fully covered by previous price increases, and the buying market is still in a very tight situation for certain critical ingredients.
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Sustainability
Designed to recognize exemplary sustainability programs and initiatives in the paper and wood products manufacturing industry, AF&PA’s annual awards are given based on the merit of entries received across multiple categories.
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"Teamwork stands behind that success story. A strong market for paper recycling is the result of our industry’s voluntary investment in building the commercial paper recycling infrastructure as well as the commitment by millions of Americans who recycle at home, at work or at school every day." America Recycles Day Recycling Summit day was organized today so as to find solutions and improvements for the U.S. recycling system.
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Over the past two decades, the Alexandria, Va, USA.-based foundation has donated almost $12 million in equipment (and millions more in software) in colleges and universities across the nation, according to a news release. It has now added $1 million more to teach corrugated packaging curriculum.
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PEFC is driving innovation through projects and partnerships worldwide, not forgetting vital outreach with key sectors such as the architect and construction community and awareness raising with consumers through the photo contest. The group notes that 2018 has been a productive year for their research.
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Launched at its European Management Conference in Berlin, the new initiative builds on the company’s expertise in packaging, innovation and sustainability. ‘Smurfit Kappa Better Planet Packaging’ is a multi-faceted initiative comprising futuristic product design, extensive research and development and collaboration with existing and new partners.
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The Ethibel Sustainability Indices are composed of companies included in the Russell Global Index displaying the best performance in the field of Corporate Social Responsibility (CSR). The selections are largely based on research carried out by Vigeo Eiris, a European rating agency responsible for data collecting and processing, performance and industry benchmarking.
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Energy
R&D collaborates with Mid Sweden University but also with several other research institutions in Sweden and in other countries. As it is now relevant to develop the research in green chemistry and energy, there was a need for advanced research competence. The collaboration that exists today with other universities cannot fully cover this area.
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People
Jeff has been in the paper and packaging business for nearly 20 years and looks forward to building a team of packaging-focused, solution-selling individuals at Athens. With Jeff’s wealth of experience and knowledge in the industry, he looks forward to bringing value and providing outstanding service to Athens customers.
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Ivar Vatne was named this morning (Nov. 15) as CFO. Vatne will be part of BillerudKorsnäs Group Management and will take up his post by June 1, 2019 at the latest. For the past three years Vatne has been employed in the Arla Group, where he has served as CFO of Arla Foods Sweden AB and then around two years as CFO of Arla UK Ltd, with net sales of around EUR 2.2 billion.
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Rasmus Valanko is currently the Director of Climate and Energy at the World Business Council for Sustainable Development (WBCSD). In this role he is responsible for a wide portfolio of projects within WBCSD, strategic partnerships and cross-sector collaboration.
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Analysts credited Mark Kowlzan for delivering the highest returns for any publicly-traded containerboard/corrugated box suppliers. Under his leadership, PCA has also completed two major projects to keep the company's integration rate the highest in the industry.
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Jim Porter believes the three keys of successful leadership are building an inspiring culture, a winning competitive strategy and setting huge goals. Drawing from his four decades of experience, he says "Management can take a control-and-push approach...but effective leaders use a ‘pull mentality’ to inspire, facilitate and empower their people."
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Dow Silicones Corporation
TAPPI News
Read about a special chance to have your company included in an exclusive industry list that will have over 25,000 print copies mailed to over 4,600 mills globally in mid-January and over 25,000 digital copies emailed out to the industry. Click to learn more (both members and non-members can open this link).
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Network and learn from a huge panel of world-class industry experts in kraft operations.
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Make your plans to meet up in Texarkana, Tex., USA, December 4th and 5th for the premier event covering lime kilns and recaust.
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Little is known about the history of the semi-working model with a fourdrinier wet end, press section, and heated Yankee dryer.
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Get the international scoop on nanocellulose technologies by attending TAPPI Nano 2019 and the Nanocellulose Forum’s (NCF) Nanocellulose Exhibition in TAPPI Nano, Chiba, Japan.
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You’ll gain access to an enthusiastic instructor and an outstanding curriculum.
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Renown speaker, Amy Blankson, will deliver the keynote at PaperCon 2019. Gain a fresh perspective on how to be happier and more productive. Attend PaperCon 2019.
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