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Sekisui Specialty Chemicals America, LLC
 
Friday, July 5, 2019 - Member In This Issue
Weekly Spotlight
Market Roundup
Pulp & Paper
Containerboard/Packaging
Legislative
New Products
Sustainability
People
TAPPI News
Cristini
Weekly Spotlight
Many paper industry products are such an imbedded part of our lives that we often take them for granted, but just think about what our lives would be like without the tissue segment of our business. While paper products are inherently sustainable, the growing circular economy discourse has drawn single-use products like tissues and paper towels into the conversation—and often not in a positive way. However, a closer look at the tissue product sector reveals some interesting sustainability facts that may not be top of mind.
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What do Netflix, Dollar Shave Club, Bumble and Airbnb all have in common?
"They're all digitally native brands who have used clever tech innovations to go direct to audiences and disrupt their sectors!" I hear you cry. And you are right. But these brands have even more in common than their status as pace-setting digital disruptors. All of the aforementioned brands have, in the last year, launched print magazines.
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High Speed, High Load TL-Series Spherical Roller Bearings
NSK Americas
NSK has been on the ground, in the mill, for decades delivering tough, high-speed, high-heat-resistant bearing solutions to get the results you need: Faster production. Greater uptime and service life. And consistently lower operating costs. Visit NSKAmericas.com
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Market Roundup

Gains in three of the four major publishing categories led to a 2.1% increase in print unit sales in the week ended June 22, 2019. over the comparable week in 2018. The adult fiction category, which has had soft sales so far this year, posted a 2.3% unit increase over the week ended June 23, 2018. While "Where the Crawdads Sing" by Delia Owens remained #1 on the category bestseller list, two new books posted solid sales in their first week. "Summer of ’69" by Elin Hilderbrand was #2 on the category list, selling more than 42,000 copies, while the mass market paperback edition of John Grisham’s "The Reckoning" sold over 20,000 copies. "The Hidden Power of F*cking Up" by the Try Guys sold nearly 22,000 copies in its first week, helping to lift unit sales in adult nonfiction 4.7% over 2018. "Hidden Power" just edged out "Unfreedom of the Press" by Mark Levin for the top spot in the category; "Unfreedom" has sold more than 254,000 copies since its release in late May. Unit sales rose 8.7% in the juvenile nonfiction segment over 2018. Summertime activity books continued to dominate the category bestseller list with seven Carson-Dellosa Publishing Summer Bridge Activities titles among the top 10 bestsellers, selling about 48,000 copies. Print unit sales dipped 0.7% in juvenile fiction compared to 2018. Jeff Kinney’s "Diary of an Awesome Friendly Kid" was the top seller in the category, selling nearly 19,000 copies. Since its release in early April, the title has sold more than 476,000 copies at outlets that report to BookScan.

Source: Publishers Weekly

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Publishers are holding their breath to see if President Trump's decision to postpone the imposition of 25% tariffs on $300 billion worth of goods imported from China will become permanent.

The new tariffs, which included books, were proposed this spring. But after meeting with China President Xi at the G20 conference this weekend, Trump agreed to delay any new tariffs as part of an effort to restart trade talks. In his speech, Trump said new tariffs have been delayed "for the time being."

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Merichem Company
Pulp & Paper
International technology Group ANDRITZ has been chosen as the maintenance and service partner for Arauco’s MAPA project in Chile.

The long-term ANDRITZ SYNERGY™ service agreement covers the entire mill, including all pre-engineering, commissioning, start-up and integral maintenance there as well as supply of spare and wear parts and after-sales service.

The service agreement, which will start in September 2019 and run for more than nine years through to February 2029, will be managed locally by ANDRITZ Chile. It is the largest maintenance and service contract ANDRITZ has ever been awarded.
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Canfor Pulp Temporarily Curtailing NBSK Pulp Production this Summer
Canfor Pulp Products Inc. announced June 28it will be implementing phased summer curtailments in July and August at its Intercontinental and Northwood NBSK pulp mills in Prince George, British Columbia (BC). This is due to a significant deterioration in market conditions, in combination with fibre supply constraints and higher fibre costs resulting from recent sawmill curtailments across the BC industry. The curtailments will reduce Canfor Pulp's production output by approximately 75,000 tonnes of NBSK pulp. The Company intends to resume full production at Intercontinental and Northwood in September.

Canfor Pulp has three northern bleached softwood kraft pulp mills, one BCTMP mill, and one kraft paper mill in BC.

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Cascadesa leader in the recovery and manufacturing of packaging and tissue products, has won the auction to acquire certain of the assets of Orchids Paper Products in proceedings before the United States Bankruptcy Court for the District of Delaware. Cascades agreement in such regard is subject to approval by the Bankruptcy Court at a hearing scheduled for July 1 st . The transaction, which will be completed for a cash consideration of US$207 million, will cover substantially all the company's assets, including the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain equipment and various of Orchid's Paper commercial arrangements with Fabrica de Papel San Francisco , S.A. de C.V., based in Mexicali, Mexico, and certain affiliates thereof.
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In court on Monday, July 1, Price County Judge Kevin Klein approved an agreement between Flambeau River Papers and CellMark Paper Inc., as well as a request for the mill to pursue financing in the amount of $2 million. This court action will allow the mill to reopen within the next two weeks, returning 89 employees to work, and pay the wages of the 68 employees laid off by the mill on June 7.
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Valmet will supply a Valmet DNA automation system (photo) and measurements to Xuzhou Zhongxing Paper Co., Ltd. in China. The system and consistency transmitters will be installed on the company's paper machine PM1, enabling the line to increase production efficiency and obtain better measurements and controls for improving the process.

The order is included in Valmet's orders received of the second quarter 2019. The delivery will take place in the fourth quarter of 2019.
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Warehouse Specialist
Containerboard/Packaging

Amcor Enters into Agreement for Sale of Three Flexible Plants
Amcor this past week announced it has entered into a binding agreement with Kohlberg & Company, for the sale of three former Bemis plants located in the United Kingdom and Ireland for cash consideration of USD 394 million (€347 million). Collectively these three plants generate annual sales of approximately USD 170 million from the sale of flexible packaging for certain healthcare products.

This divestment was required by the European Commission at the time of approving Amcor's acquisition of Bemis on 11 February 2019. The sale remains subject to customary approvals including European Commission approval of Kohlberg & Company as the buyer and is expected to close in the coming weeks.

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The demand for sustainable packaging among consumers and brand owners all over the world is growing at an exponential rate, which in many cases drives a strong need to replace plastic packaging. Strong partnerships are required to bring about the development and innovation needed to meet this demand. A good reason for Bosch Packaging Technology and BillerudKorsnäs to intensify their successful collaboration.
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Common Stock service, which was started in March, provides the converters with easy access and reliable availability to ready-made standard white kraftliner reels from Metsä Board’s warehouse in Lübeck. This service enables a genuine just-in-time delivery service based upon improved availability of local stock. It includes a comprehensive fixed offering consisting of industry standard specifications and stock items, optimised to market requirements
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The company does not endorse TRC Capital’s mini-tender offer and recommends that stockholders do not tender their shares in response to the offer. The offer is at a price below the current market price for WestRock shares and is subject to numerous conditions, including, among others, that there has not been any decrease in the market price of the WestRock shares and that TRC Capital has received proceeds of debt financing sufficient, together with cash on hand, to consummate the offer.
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Eliminate Stickies and Increase Production with Enessco.
Enessco International
Enessco, this exclusive patented chemical technology, when added to recycled furnish pulpers increases the removal of ink, wax, stickies and all hydrophobic contaminants in the stock prep system. With this higher contaminant removal efficiency, cleaner and more “virgin like” fiber is sent forward to the paper machines. Cleaner furnish improves quality, production and machine runnability. Enessco has years of proven experience, visit our website at www.enessco.com to see our results.
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Legislative
In testimony before the California Senate Committee on Environmental Quality, the American Forest & Paper Association called for the legislature to reconsider efforts to create unnecessary barriers for consumers to receive paper receipts at point-of-purchase, except upon request. The full testimony text can be found here.
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New Products
Mondi Group has developed a fully-recyclable polypropylene construction for thermoforming applications with a 23% reduction in carbon footprint compared to existing packaging

Flexible food packaging has traditionally presented brand owners with a choice –– either extract the maximum performance parameters or make it fully recyclable. Achieving both goals at once has been almost impossible ... until now.
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John Crane
Sustainability
Compostable grease resistant food wrapping materials are an example of how sustainable solutions can contribute in reducing the environmental impact of packaging waste. This certification will facilitate the possibility for Ahlstrom-Munksjö customers, whether converters or brand owners, to obtain the OK compost Label for their final products.
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Kemira has joined a four-year EU funded project which aims to develop 100% bio-based chemicals, produced from renewable raw materials. In addition, the project aims to develop new means to improve production efficiency at pulp mills with higher utilization of wood biomass.
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-Lenzing sets net-zero CO2 emissions target by 2050
-Reduction of specific CO2 emissions by 50 percent until 2030
-Investment of more than EUR 100 mn to combat 1.3 Mt of CO2 emissions
-Commitment to follow the Science Based Targets concept

The Lenzing Group, a recognized leader in climate action, member of the CEO Climate Leaders Group of the World Economic Forum and a signatory to the United Nations Fashion Industry Charter for Climate Action, will drastically reduce its CO2 footprint. The Lenzing Group will invest EUR 100 mn over the coming years to reduce carbon emissions both inside its operational boundaries (scope 1+2) and in its supply chain (scope 3). Due to its ambitious CO2 emission reduction strategy, the Lenzing Group will further contribute towards helping customers to transition their business to a lower CO2 base.
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20 years ago, European small-forest owners came together to create an international forest certification system that had their needs at heart. On 30 June 1999, PEFC was born. From January 2019 to June 2020, we are celebrating the achievements from 20 years of caring for forests globally and locally. Through a series of chapters, we will tell the story of PEFC, from the early ideas back in 1999, until today. From July to June, we will publish texts, photos and videos about PEFC’s history, approach, members, stakeholders and much more. Each month, one chapter will shed light on another facet of PEFC. Voices of the past and present will speak about highlights from the last 20 years, key events that have shaped the organisation, and the future of PEFC.
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Sappi Limited (Sappi) is pleased to announce that they have become an International Stakeholder member of the Programme for the Endorsement of Forest CertificationTM (PEFCTM). This membership aligns with their focus on sustainable forest management and responsible procurement throughout the supply and value chains.
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As interest groups raise awareness about plastic waste, governments around the world are starting to ban various types of plastics, especially single-use packaging items. We all know the reasons behind this push: Plastic waste is filling our landfills and waterways and breaks down very slowly in the environment.

Ultimately, the impact will not be confined to items such as grocery bags and straws. Analysts expect the movement to extend to plastic bottles, disposable cups, food-service packaging and ready-meal containers. In fact, several major consumer brands, as well as a significant number of European retailers, have moved to reduce or eliminate their use of plastics in packaging. And more will certainly follow.
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Volunteers at the UPM Changshu Mill in China spread green awareness and social wellbeing through youth-driven projects.

Wang Feng smiles as she recalls a special moment she experienced while walking down the street one day. "A group of kids came up to me and said, ‘this is the lady who teaches us how to look after our planet," says Wang, an energy engineer at UPM’s Changshu Mill.
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UPM Raflatac, a global leader in the manufacture of pressure sensitive label materials, is proud to announce that its factory in Mills River is the first manufacturing facility in North Carolina whose electrical supply is generated entirely by renewable sources through Charlotte-based Duke Energy’s NC Renewable Energy Program.

This year, the Mills River factory opted to increase its renewable electricity use from 4 percent to 100 percent. Renewable electricity is generated from sources like wind, solar and hydropower. UPM Raflatac has a 2030 target to reduce fossil CO2 emissions from its operations and purchased electricity by 30 percent. The switch to 100 percent renewable electricity for the Mills River facility is a major step toward meeting that target.
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Walki offers solutions made of 100 percent renewable raw materials and soon also made of circular polymers

Walki, a leading manufacturer of packaging solutions, offers cardboard-based laminate constructions for washing powders and other hygroscopic products that are particularly sustainable – while at the same time providing optimum product protection and allowing perfect processing. Headquartered in Espoo, Finland, the company uses tall oil-based barriers instead of petroleum-based barriers and is already developing laminates with certified circular polymers to market readiness so as to close the material cycle.
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People
The Independent Packaging Association (AICC) announced that Michael M. D'Angelo begins his tenure as President of AICC today.

AICC Chairman, Joseph M. Palmeri, President, Corrugated Packaging at Jamestown Container Companies, said, "We look forward to Mike's leadership and success at the Association. During his tenure as AICC Vice President, he has shown his knowledge of the markets, pragmatic leadership, and drive. His longstanding relationships in the industry and ability to engage AICC members also bolsters his ability to help grow AICC and ensure its vitality."
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One of Scotland’s leading paper businesses, PG Paper Company Limited has made two key hires to support its growth plans across its international markets.

The company, established by entrepreneurial couple Poonam and Puneet Gupta in 2003, has experienced exponential growth in recent years and now trades in 55 countries around the globe.
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Toscotec North America, Inc., Green Bay, WI and Toscotec S.p.A., Lucca, Italy announced that James Smithhas joined the group as Paper & Board Sales Manager for North America.

James has a Mechanical Engineering degree from the University of Wisconsin and more than 30 years of experience in the paper industry with various roles of technical and sales leadership for key industry players. These include Beloit Corporation for North America and Asia Pacific, Mitsubishi Heavy Industries, Paperchine and PMT Italia for the North American market.

James will actively contribute to Toscotec’s growing paper and board business in North America, catering to new customers in the U.S. and Canada.

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Hanna Maulahas been appointed Vice President, Communications and Brand for UPM-Kymmene Corporation as of Aug. 1,2019. Her predecessor, Elisa Nilsson is entering retirement as of September.

For the past few years Hanna has acted as consultant and entrepreneur for communications and strategy in Silicon Valley. She has previous experience from leading communications organizations at Aalto University and Neste Corporation. Her research has focused on communications, leadership and strategy as well as strategies for the digital era.

Hanna will be a member of UPM's Stakeholder relations management team reporting to Pirkko Harrela, Executive Vice President, Stakeholder relations.

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Jaakko Nikkilä has been appointed Executive Vice President responsible for UPM Specialty Papers business area as of 1 July 2019. He will be based in Helsinki reporting to Jussi Pesonen, President and CEO.
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Hargrove Engineers + Constructors
TAPPI News
Register before July 12 for the early discounts!
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Emerging leaders represent WestRock, Packaging Corporation of America, FPInnovations, Domtar, Procter & Gamble, and Sonoco
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Deadline is approaching to be a part of this highly acclaimed session
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