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Voith Paper
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Travels with Larry Archive
Thursday, March 04, 2010
Members edition
Voith Paper
Weekly Spotlight
Preliminary reports suggest that the recent 8.8 magnitude earthquake in Chilé may rattle the supply/demand balance in world pulp markets, according to Mark Wilde, senior analysts with Deutsche Bank
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Norske Skog, Lysaker, Norway, reports that its Bio Bio newsprint mill in Concepción, Chilé, has shutdown following the February 27 8.8 magnitude earthquake
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The TAPPI Coating Graphic Arts Committee has organized an exceptional program for PaperCon 2010, May 2-4 in Atlanta, Ga
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Robert (Bob) Taylor, CEO of Neucel Specialty Cellulose, Richmond, B.C., Canada, will analyze "The Reliability Paradox -- Understanding the Basic Causes and Means to Resolve" as keynote speaker at the 23rd Process Industry Reliability and Maintenance (PIRM) Conference to be co-located with PaperCon 2010 in Atlanta, Ga., USA, May 2 – 5
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"Characterization of CO2 Precipitated Kraft Lignin to Promote its Utilization," an article by the Institute of Paper Science and Technology at Georgia Tech (Atlanta, Ga., USA) team of Arthur J. Ragauskas, professor of chemistry and biochemistry, and Ph.D. students Máté Nagy, Matyas Kosa, and Hans Theliander, was among the top ten accessed on the web from the online version of Green Chemistry in January
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Market Roundup
The Global market pulp rally will likely continue, considering the impact of the earthquake supply shock on Chile
Learn More...
 
Solid bleached sulfate board prices in the U.S. through January remained flat at $1,000-1,050/ton
Learn More...
 
Uncoated bleached kraft board list prices, Wilde notes, remained flat at $825 - $885/ton in January
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Coated recycled board prices in North America rose for the second time in the past four months, up $30/ton (proposed = $40/ton) to $790/ton in January
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Uncoated recycled board is experiencing a modest pick-up in demand, according to some reports, primarily due to pre-buying ahead of this month's price increases
Learn More...
 
Pulp & Paper
AbitibiBowater, Montreal, Qué., Canada, this past week filed a Notice of Arbitration under the North American Free Trade Agreement (NAFTA) with regards to the expropriation of its assets and rights in Newfoundland and Labrador, Canada
Learn More...
 
Fraser Papers Inc., Toronto, Ont., Canada, announced this past week that it has cleared remaining material conditions and will proceed with the sale of its specialty papers business to a company sponsored by the secured creditors of Fraser Papers (Newco)
Learn More...
 
Neenah Paper, Alpharetta, Ga., USA, this week announced it has agreed to sell its remaining 475,000 acres of timberlands in Nova Scotia for C$82.5 million to Northern Pulp Nova Scotia, through their affiliate, Northern Timber Nova Scotia
Learn More...
 
Weyerhaeuser, Federal Way, Wash., USA, this week was named to the annual list of 100 Best Corporate Citizens by Corporate Responsibility Magazine (formerly CRO Magazine)
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Containerboard/Packaging
Bemis Co., Neenah, Wis., USA, this week reported that it has completed its acquisition of the Food Americas operations of Alcan Packaging, a business unit of Rio Tinto plc
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Berlin Packaging, Chicago, Ill., USA, announced this week that it has completed the acquisition of All-Pak, Inc., a Pittsburgh, Pa.-based packaging supplier
Learn More...
 
Kollman Label and Packaging Group, Yardley, Pa., USA, has completed the purchase of Prime Graphics, Wood Dale, Ill., a provider of packaging solutions and decorative labels to consumer product companies within food, beverage, personal care, medical, and private label markets
Learn More...
 
Walmart, Bentonville, Ark., USA, this week announced that it has set a goal to eliminate 20 million metric tons of greenhouse gas (GHG) emissions from its global supply chain by the end of 2015
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Legislative
Appleton Coated LLC (Kimberly, Wis.), NewPage Corp. (Miamisburg, Ohio), and Sappi Fine Paper North America (Boston, Mass.), together with the United Steelworkers (USW), Pittsburg, Pa., this week commended the U.S. Department of Commerce for its preliminary countervailing duty determinations against subsidized coated paper imports from China and Indonesia
Learn More...
 
New Products
Ecology Coatings, Auburn Hills, Mich., USA, has developed bio-based materials for use in a new family of EcoQuik UV-curable coatings
Learn More...
 
NewPage Corp., Miamisburg, Ohio, USA, this week reported that it has upgraded the appearance of its No. 4 coated groundwood paper brands, Escanaba and Dependoweb, effective immediately
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Corrugated Container Corp. (CCC), Roanoke, Va., USA, this week said that it is launching a new brand that "focuses beyond brown-box," with an emphasis on point-of-purchase (POP) displays and packaging containers."
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Published Pricing
M-real, Finland, reported this week that it will increase prices for all its one-side-coated, cast-coated, and uncoated label, board, and flexible packaging papers produced at its Simpele mill in Finland and its M-real Zanders mills Gohrsmühle and Reflex in Germany
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RockTenn, Norcross, Ga., USA, this week announced a $60 per ton price increase on all grades of containerboard
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Energy
ÅF AB, Stockholm, Sweden, reports that it has won a major consulting contract with energy company Fortum, Keilaniemi, Espoo, Finland, for complete engineering and project management at Fortum's new waste-to-energy plant to be built in Klaipeda, Lithuania
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People
Avery Dennison Corp., Pasdena, Calif., USA, reports that its board has elected President and CEO Dean A. Scarborough to succeed Kent Kresa as chairman and selected Director David E. I. Pyott lead independent director
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Rottneros, Sweden, reports that its CFO Karl Ove Gronqvist is leaving the company to become CFO of Euro.Maint AB in Sweden
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TAPPI News
Unique event to focus on practical ways for converting a broad range of biomass resources to renewable energy.
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Comprehensive program offered this April 19-21 in Norcross, Georgia.
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Technology and Deployment presentations sought for annual bioproducts and bioenergy event.
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Dates announced for upcoming meetings in Atlanta, GA.
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Congratulations go to Robert J. Gallo, Jeff Hamilton, and Chris Luettgen.
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Attend TAPPI and NC State's highly-rated course, March 15-19.
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Jim Hanna, Starbucks Director of Environmental Impact, to give keynote on recyclable cup development.
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Recipients to be honored at PaperCon 2010 in Atlanta this May.
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The TAPPI International Conference on Nanotechnology for the Forest Products Industry solicits program info for 2010.
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"Morale is when your hands and feet keep on working ..."
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EKA Chemicals Inc.

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Metso Paper
Weekly Spotlight

Preliminary reports suggest that the recent 8.8 magnitude earthquake in Chilé may rattle the supply/demand balance in world pulp markets, according to Mark Wilde, senior analysts with Deutsche Bank. The epicenter of the quake was just off the coast and about 200 miles south of Santiago. This is near the center of Chilé's commercial forestry region, where most of the country's pulp mills are located, Wilde notes. Arauco, the largest pulp producer in Chilé, has four of its five mills in that country within 150 miles (˜241 km) of the epicenter.

Those four mills have a combined capacity of about 2.15 million metric tpy. CMPC, the other large Chiléan pulp producer, has two of its three mills within 150 miles of the epicenter, with a combined annual capacity of about 1.65 million metric tpy. The two companies also have one mill each with about 500,000 metric tpy capacity farther from the epicenter. In all, the two companies have about 3.8 million metric tpy of capacity within 150 miles of the epicenter and another 1.0 million metric tpy of capacity farther away. The total of 4.8 million metric tpy represents about 8% of the global chemical paper grade market pulp capacity.

All pulp mills in Chilé are down at the moment, Wilde says. "We understand that some of the plants have been flooded and that access to them has been restricted by the local authorities. Reports indicate that there is also damage to highways, railroad tracks, and port infrastructure near production facilities. CMPC has declared force-majeure for an initial period of 30 days due to the earthquake. However, with its key mills located farther from the epicenter, CMPC's damage is likely to be less severe than for Arauco's," Wilde says.

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Norske Skog, Lysaker, Norway, reports that its Bio Bio newsprint mill in Concepción, Chilé, has shutdown following the February 27 8.8 magnitude earthquake. Based on preliminary reports on damage to the mill's site and equipment, the company says it will take some time to restart production. Detailed reports on the condition of the mill are currently not available. The company says there were no fatalities or injuries among employees at the mill, which is located near the quake's epicenter. Bio Bio has a production capacity of 130,000metric tpy, mainly newsprint, and employs 240 people.

Norske Skog says it is taking all steps required to try to restart the operations at Bio Bio as soon as possible, "taking into account full safety of the mill's employees." The company adds, however, that Bio Bio is unable to perform any of its contractual obligations due to an impediment beyond its control, and since February 27 and until further notice, is in a situation of force majeure ("act of God") with respect both to its customers and suppliers.

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The TAPPI Coating Graphic Arts Committee has organized an exceptional program for PaperCon 2010, May 2-4 in Atlanta, Ga. Invited expert speakers and peer-reviewed papers will address factors changing the demand for coated grades, such as sustainability, consumer advertising, digital printing, and barrier coating performance. A strong peer-reviewed program will also provide information and case studies on practical aspects such as coater runnability, machine instrumentation, and for the first time, a session on safety. These critical areas are supported by the coating structure, offset printing, and flexographic printing subjects traditionally found at the Coating Conference. Altogether, some 10 paper producer and supplier companies and five major world universities are providing speakers for these sessions. The full program and speakers are available online.

Coating session topics at PaperCon 2010 include:

  • Coating Sustainability and Energy Savings
  • Coating Structure - Polarity, Coating Method, Ink Composition
  • Best Coating Paper Finalists
  • Why Print Paper?
  • Coater Runnability and Calendering
  • Ink Jet Materials
  • Multi-Layer Coatings
  • Coater Online Inspection and Measurement
  • Barrier Coatings
  • New Products - Media Opportunities, Biobased Latex, Printed Electronics
  • Mill Safety
  • Flexographic Printability.

PaperCon 2010 will take place at the Hyatt Regency Atlanta, Atlanta, Ga., USA. More information about the program, events, and the trade fair are available online. Contact information about sponsorship/exhibit opportunities is also available on the event website, as well as the Twenty-Third Process Industry Reliability & Maintenance Conference being co-located with PaperCon 2010.

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Robert (Bob) Taylor, CEO of Neucel Specialty Cellulose, Richmond, B.C., Canada, will analyze "The Reliability Paradox -- Understanding the Basic Causes and Means to Resolve" as keynote speaker at the 23rd Process Industry Reliability and Maintenance (PIRM) Conference to be co-located with PaperCon 2010 in Atlanta, Ga., USA, May 2 – 5.

Taylor joined Neucel as CEO in November 2007 with more than 25 years of industry manufacturing experience. Prior to Neucel, he spent one year as VP of Operations for the Building Products Division of Armstrong World Industries where the reliability focus established during that period at all of its U.S. plants continues to bring outstanding business results to the bottom line. Bob spent three years as VP of Manufacturing for Sappi Fine Papers North America (SFPNA) where, in addition to having responsibility for operations at all facilities of SFPNA, he also was responsible for Wood Procurement, Pulp Sales, Corporate Engineering, and Capital Planning. Prior to that, he served in several manufacturing leadership positions encompassing several different pulp and paper businesses during a 23-year career with International Paper, finishing as VP of Manufacturing Systems for the Printing and Communications Division in 2003.

PIRM will take place at the Hyatt Regency Atlanta, Atlanta, Ga., USA. More information about the PIRM program, events, and the trade fair are available online, as well as more information about PaperCon 2010. Contact information about sponsorship/exhibit opportunities is also available on the event website.

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"Characterization of CO2 Precipitated Kraft Lignin to Promote its Utilization," an article by the Institute of Paper Science and Technology at Georgia Tech (Atlanta, Ga., USA) team of Arthur J. Ragauskas, professor of chemistry and biochemistry, and Ph.D. students Máté Nagy, Matyas Kosa, and Hans Theliander, was among the top ten accessed on the web from the online version of Green Chemistry in January.

The study reported in the article examines the fundamental chemical structure of lignin recovered from kraft pulping streams by an acid precipitation/washing methodology. Functional group analysis and molecular weight profiles were determined by NMR and SEC with promising results for future conversions; such as low hydroxyl (oxygen) contents and low molecular weights.

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Market Roundup
The Global market pulp rally will likely continue, considering the impact of the earthquake supply shock on Chile, according to Mark Wilde, senior analyst with Deutsche Bank (see report in Weekly Spotlight in this issue). Pulp prices have staged a remarkable rally in the last 10-11 months, Wilde says, with most grades rising more than $200/metric ton, and yet another round of price hikes is in the market for March. The 3.2 million metric tons of producer inventories at the end of December are down from a cyclical peak of 5.1 million metric tons in November 2008. At the same time, weather-related fiber issues in many parts of the Northern Hemisphere make it unlikely that other parts of the world can pick up the slack, Wilde explains. Back To Top
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Solid bleached sulfate board prices in the U.S. through January remained flat at $1,000-1,050/ton, according to Wilde. All of the major producers announced a $40/ton price hike that went into effect in mid-January. Reports suggest that while there is some traction in the price increase, it is uncertain whether it will stick long term. Back To Top
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Uncoated bleached kraft board list prices, Wilde notes, remained flat at $825 - $885/ton in January. Several producers recently announced a $40/ton price hike on their coated unbleached kraft grades. However, it remains uncertain if the price increase will go through. The price hike is driven by an improvement in demand and a rise in input costs. Back To Top
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Coated recycled board prices in North America rose for the second time in the past four months, up $30/ton (proposed = $40/ton) to $790/ton in January, Wilde says. The price hike was driven by unseasonably strong demand, higher operating rates (97.4% in early Feb), lower inventory levels, and higher OCC (+$70/ton since last November), and energy costs. Back To Top
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Uncoated recycled board is experiencing a modest pick-up in demand, according to some reports, primarily due to pre-buying ahead of this month's price increases, Wilde explains. All of the major North American uncoated recycled board producers (Sonoco, RockTenn, Caraustar, Ox Paperboard, Newark Group) announced a $40 - $50/ton price hike for shipments beginning the middle of last month. Back To Top
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Naylor, LLC
Pulp & Paper

AbitibiBowater, Montreal, Qué., Canada, this past week filed a Notice of Arbitration under the North American Free Trade Agreement (NAFTA) with regards to the expropriation of its assets and rights in Newfoundland and Labrador, Canada. The company contends that the provincial government's enactment in December 2008 of Bill 75, which expropriates an extensive array of the company's rights and assets, was arbitrary, discriminatory, and illegal under international law.

The claim seeks direct compensation for damages of approximately C$500 million, plus additional costs and relief deemed just and appropriate by the Arbitral Tribunal. This is one of the largest claims ever filed against Canada under NAFTA. Under international law, the Canadian Federal Government is responsible for the actions of Newfoundland and Labrador in violation of the investment protection provisions of NAFTA.

In early December 2008, AbitibiBowater announced capacity-reduction measures in Canada and the U.S., including the permanent closure of its Grand Falls-Windsor, Newfoundland and Labrador mill, due to the economic downturn and decline in product demand. In retaliation, the province hastily passed Bill 75, without any attempt to consult with the company and without holding any public hearings.

The company has asserted in the Notice of Arbitration that the province's Bill 75 unquestionably breaches Canada's NAFTA obligations on a number of grounds, including among others:

  • Unlawful Expropriation. NAFTA explicitly details the grounds under which government expropriation can lawfully occur. The criteria for lawful expropriation were not met by the Government of Newfoundland and Labrador in Bill 75.
  • Fair Compensation. Under NAFTA, AbitibiBowater is entitled to compensation "without delay" for the "fair market value" of each of its expropriated investments. Bill 75 does not ensure payment for the fair market value of the expropriated rights and assets.
  • Treatment in Accordance with International Law. NAFTA obliges Canada to provide treatment "in accordance with international law," which includes international standards of "fair and equitable treatment." The Bill's seizure of AbitibiBowater's rights and assets was arbitrary, irrational, and discriminatory, in violation of these standards.
  • Denial of Justice. Bill 75 purports to strip AbitibiBowater of any rights to access the courts, which is independently a violation of NAFTA.
  • Discrimination. AbitibiBowater should be afforded the same rights and privileges as all other domestic and foreign investors.Bill 75 is retaliatory in nature and discriminates against the company.

"The expropriation was detrimental to the financial position of our company," stated David J. Paterson, president and CEO. "After operating in Newfoundland and Labrador for more than a century and contributing significantly to the region's economic, social, and sustainable development, the nationalization of AbitibiBowater's assets was unexpected and unnecessary. AbitibiBowater has been engaged with the Government of Canada and the Government of Newfoundland and Labrador in an effort to achieve a fair and equitable settlement and avoid a protracted NAFTA case. Unfortunately, despite those extensive discussions, we are unable to resolve the matter at this time and the company has no choice but to file a formal claim under NAFTA.

"It is our obligation to defend the interests of our stakeholders and ensure we receive compensation for the fair market value of the expropriated assets, plus additional damages. We are disappointed that a settlement acceptable to all parties has not yet been reached and we still hope that this issue can be resolved by a negotiated settlement with the Government of Canada," Paterson concluded.

The expropriation relates to a broad range of AbitibiBowater's rights and assets in Newfoundland and Labrador, including land rights, timber rights, water use rights, and various other related rights and business partnerships. These rights and assets can be traced back in part to grants by the provincial government and its predecessors, as well as to numerous third-party transactions, the company notes. In addition to the substantial sums it expended to acquire these rights, the company has invested hundreds of millions of dollars in the province over the last century, ranging from capital investments in mill and hydroelectric generation operations to road projects that have helped build rural Newfoundland.

Since the Company is incorporated in the state of Delaware and carries out business activities in the U.S., the expropriation of rights and assets represents a breach of Canada's obligations to a U.S. investor under Chapter Eleven of NAFTA. AbitibiBowater points out. The company says it has been involved in consultations with the State Department, Treasury Department, the Department of Commerce, and the U.S. Trade Representative since the expropriation. In an official statement, the U.S. State Department expressed concern about the action. As well, at a recent investment conference, representatives from the States of Alabama, Mississippi, Tennessee, Georgia, and South Carolina also raised the expropriation with officials from the Governments of Canada and Newfoundland and Labrador.

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Fraser Papers Inc., Toronto, Ont., Canada, announced this past week that it has cleared remaining material conditions and will proceed with the sale of its specialty papers business to a company sponsored by the secured creditors of Fraser Papers (Newco). The company, the Canadian Energy and Paperworkers Union of Canada (CEP), the Government of New Brunswick, and other stakeholders have agreed to the broad terms of the offer that includes proposed changes to the collective agreements at the company's Edmundston pulp and energy complex, which will require ratification on or before March 10.

Fraser filed the agreement with the Ontario Superior Court of Justice today, and said that it will work diligently with its secured creditors and Newco to close the sale of the specialty papers business before March 31. The final agreement (Purchase Agreement) will be subject to court approval prior to closing. Under the terms of the Purchase Agreement, unsecured creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the new company. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the company into a 51% common equity interest in Newco, while the Government of New Brunswick has agreed to convert its $35 million secured loan plus accrued interest into equity in the form of preferred shares of the new company. Newco and the company are currently negotiating a $50 million revolving credit facility with CIT Business Credit Canada Inc., which will provide Newco with operating liquidity.

The company also announced this week that the Court has granted a further extension of the initial Order under which Fraser Papers was granted creditor protection according to the Companies' Creditors Arrangement Act (CCAA) of Canada. This extension is through April 9, and was supported by PricewaterhouseCoopers Inc., the Court appointed Monitor of the company's CCAA process.

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Neenah Paper, Alpharetta, Ga., USA, this week announced it has agreed to sell its remaining 475,000 acres of timberlands in Nova Scotia for C$82.5 million to Northern Pulp Nova Scotia, through their affiliate, Northern Timber Nova Scotia. Neenah will receive cash at the time of closing, which is expected to occur before March 31. Northern Pulp Nova Scotia is a portfolio company of Atlas Holdings LLC and Blue Wolf Capital Management , New York, N.Y., USA. As part of the transaction, Northern Timber will sell 55,000 acres of environmentally-sensitive land to the Province of Nova Scotia, a major step toward the Province's goal of protecting 12% of all lands by 2015. The Province will also have an option to purchase additional lands in the future.

The Provincial government is lending Northern Timber $75 million to support the transaction, which secures a steady supply of wood fiber required to run Northern Pulp's mill in Abercrombie, located in Pictou County, Nova Scotia. It also ensures that nearly a half million acres of Nova Scotia forest remains managed by a Nova Scotia-based company, supporting not only the Northern Pulp mill but related sawmill, timber contractor, construction, and equipment maintenance industries. Subsequent to the land acquisition, Northern Pulp will invest $5 million in technology and equipment to reduce odor emission at its Abercrombie Point manufacturing facility.

Atlas and Blue Wolf acquired the Pictou mill and formed Northern Pulp Nova Scotia in June 2008. The mill, founded in 1967, manufactures pulp used in tissue, printing, and writing papers. It has a production capacity of some 270,000 metric tpy, the bulk of which is northern bleached softwood kraft (NBSK) pulp.

Sean Erwin, CEO of Neenah Paper, said that "with this transaction, we have successfully completed our strategy to exit pulp and transform into a larger, more global specialty and premium paper company. This sale is the fourth and final transaction in this transformation, and we believe the approach we took to separate the sales of the timberlands from the pulp mills optimized the value we received for these assets. With this sale, ownership of the woodlands is again closely aligned with the pulp and forestry companies in Nova Scotia. Neenah Paper will use the proceeds to pay down debt, including a $40 million term loan that is part of our revolving credit facility, and this will result in an attractive and flexible capital structure going forward."

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Weyerhaeuser, Federal Way, Wash., USA, this week was named to the annual list of 100 Best Corporate Citizens by Corporate Responsibility Magazine (formerly CRO Magazine). Weyerhaeuser was ranked No. 67 overall. The listing is based on more than 360 data points of publicly-available information in seven categories, including environment, climate change, human rights, philanthropy, employee relations, financial performance, and governance.

The 100 Best Corporate Citizens are selected from among the large-cap Russell 1,000 companies, based on data provided by IW Financial, a Portland, Me.-based financial research firm that specializes in evaluating the environmental, social, and governance performance of companies. The 100 Best List was first published in 1999 in Business Ethics Magazine, and has been managed by CRO and Corporate Responsibility Magazine since 2007.

"Weyerhaeuser is committed to responsibly meeting the needs of its multiple stakeholders, including investors, customers, employees and the communities where we operate," said Dan Fulton, Weyerhaeuser president and CEO. "This ranking affirms Weyerhaeuser's leadership in sustainability, environmental stewardship, ethical business conduct, employee safety, community relations, and more as we seek to fulfill our mission of improving lives and the planet we share by building homes and making products that come from one of the world's most renewable resources—trees and forests."

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Containerboard/Packaging
Bemis Co., Neenah, Wis., USA, this week reported that it has completed its acquisition of the Food Americas operations of Alcan Packaging, a business unit of Rio Tinto plc. Under the terms of the $1.2 billion transaction, Bemis acquired 23 Food Americas packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand, which recorded 2009 net sales totaling $1.4 billion. These facilities produce packaging principally for the food and beverage industries and will augment Bemis' product offerings and technological capabilities. Under terms of a court order, two of these facilities, located in Menasha, Wis., and Tulsa, Okla., must be divested. The 2009 net sales associated with the facilities to be sold was approximately $100 million. Back To Top
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Berlin Packaging, Chicago, Ill., USA, announced this week that it has completed the acquisition of All-Pak, Inc., a Pittsburgh, Pa.-based packaging supplier. The combined company has more than 40 sales and warehouse locations across the U.S. and Puerto Rico. Customers now have access to a broader network of expertise, with deep knowledge in personal care, pharmaceutical, lab supplies, food and beverage, chemical and industrial, dangerous goods packaging, and other vital sectors. "We are excited to complete our transaction with All-Pak," said Andrew T. Berlin, Chairman and CEO of Berlin Packaging. "The combined company has an even stronger product and service offering, delivered by an outstanding team. We are focused on a smooth integration, which will allow us, even more than before, to thrill our customers with faster growth, improved system costs, and greater productivity." Back To Top
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Kollman Label and Packaging Group, Yardley, Pa., USA, has completed the purchase of Prime Graphics, Wood Dale, Ill., a provider of packaging solutions and decorative labels to consumer product companies within food, beverage, personal care, medical, and private label markets. Prime Graphics is known for its award-winning flexographic printing of shrink sleeves, flexible packaging, roll-fed, and pressure-sensitive labels. Kollman Label and Packaging Group was formed in 2008 and completed its first acquisition that year of folding carton printer Dixie Printing & Packaging. Kevin Kollman, President of Kollman Label & Packaging Group, said that "the acquisition of Prime Graphics is consistent with our strategic plan to grow the organization by providing our customers diverse product offerings within the packaging industry. Prime's capabilities and Mid-West presence will be a great complement to the Dixie folding carton customers and will now allow Prime's current customers one source for their carton and flexible packaging needs." Back To Top
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Walmart, Bentonville, Ark., USA, this week announced that it has set a goal to eliminate 20 million metric tons of greenhouse gas (GHG) emissions from its global supply chain by the end of 2015. This represents one and a half times the company's estimated global carbon footprint growth over the next five years and is the equivalent of taking more than 3.8 million cars off the road for a year. The project will place an increased load on the company's product suppliers, who will be under additional pressure to reduce the footprint of their products and packages throughout their entire life cycle.

The company explains that it is collaborating with the Environmental Defense Fund to develop the approach it will use to accomplish this goal. The approach looks at the supply chain on a global scale, and will engage several other key participants/advisers through the design and implementation team, which will identify projects, quantify reductions, engage suppliers, and ensure proper procedures are followed for each GHG reduction claim.

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Legislative

Appleton Coated LLC (Kimberly, Wis.), NewPage Corp. (Miamisburg, Ohio), and Sappi Fine Paper North America (Boston, Mass.), together with the United Steelworkers (USW), Pittsburg, Pa., this week commended the U.S. Department of Commerce for its preliminary countervailing duty determinations against subsidized coated paper imports from China and Indonesia. As a result of these determinations, the Department of Commerce will impose tariffs on imports of coated paper to offset the unfair advantage provided by subsidization.

The Department of Commerce found that Chinese coated paper was subsidized by an average rate of 8.38%. Asia Pulp & Paper (APP) producers Gold East, Gold Huasheng, Ningbo Zhonghua, and Ningbo Asia Pulp and Paper received a subsidy margin of 12.83%, while Sun Paper received a rate of 3.92%. In Indonesia, APP/Sinar Mas producers Tjiwi Kimia and Indah Kiat received a subsidy margin of 17.48%. All other Indonesian producers/exporters will be subject to this same rate. The result of the Department's actions will be the immediate requirement that these importers of paper from the subject countries will have to post bond or cash deposits in an amount equal to the announced margins pending final resolution of the cases later this year.

Specifically, in the China investigation, the Department of Commerce found that Chinese producers benefited from preferential lending, preferential income tax programs, tax credits for purchasing domestically-produced equipment, import duty, and VAT exemptions for imported capital equipment, research and development tax credits, and preferential provision of electricity. In the Indonesia investigation, the Department of Commerce found that the provision of timber for less than adequate remuneration, government debt forgiveness, and the government of Indonesia's ban on the export of logs provided countervailable subsidies to coated paper.

The next step following this week's announcement by the Department of Commerce comes in April when the Department of Commerce will issue its preliminary determinations in the antidumping duty investigations of coated paper from China and Indonesia. These trade cases are expected to take about a year to complete with a final resolution expected sometime this fall.

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New Products
Ecology Coatings, Auburn Hills, Mich., USA, has developed bio-based materials for use in a new family of EcoQuik UV-curable coatings. Products incorporating bio-based additives are being used in commercial development applications that exhibit enhanced curing speed, pigment coverage, and useful surface effects, the cioompany says. A bio-based material is simply a product derived from living matter. A good example is casein-A phosphoprotein, a material extracted from milk and then processed in various ways for use in plastic, dietary supplements, glue, cotton candy, protective coatings, and paints.

"Consumers are becoming more conscious about the products they use and their long-term impact on the environment," noted Ecology Coatings CEO Bob Crockett. "This consumer awareness has prompted many companies to incorporate sustainability as an element of their business strategy, and provide products that are more energy efficient, environmentally friendly, cost effective, and in many cases, alternatives to petroleum-based products. While Ecology's coatings incorporating bio-based materials have produced impressive performance results, they remain extremely cost competitive." Back To Top
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NewPage Corp., Miamisburg, Ohio, USA, this week reported that it has upgraded the appearance of its No. 4 coated groundwood paper brands, Escanaba and Dependoweb, effective immediately. In addition, the company reintroduced its Capri line of No. 4.5 coated groundwood papers to augment a selection of papers designed for magazine, catalog, and retail customers. The Escanaba product now offers a higher brightness and blue-white shade, and Dependoweb has been enhanced with a brighter, cleaner white shade to maintain its position as a reliable and competitive No. 4 coated groundwood paper. Capri provides 76 brightness, a choice of gloss or silk finishes, and a wide range of basis weights. Back To Top
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Corrugated Container Corp. (CCC), Roanoke, Va., USA, this week said that it is launching a new brand that "focuses beyond brown-box," with an emphasis on point-of-purchase (POP) displays and packaging containers." CCC noted that it has had but has not previously emphasized the capability to structurally and graphically design POP and packaging, particularly in its own marketing efforts.

"We have some terrific customers who've been working with us for their brown-box needs, who need to find out about all the point of purchase and packaging we've been creating. Working with us on all aspects of their displays and packaging can help reduce costs, streamline production, and save time logistically. It was time to ensure all our marketing materials were supporting all we do," said David Higginbotham, president and son of CCC's founder.

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Published Pricing
M-real, Finland, reported this week that it will increase prices for all its one-side-coated, cast-coated, and uncoated label, board, and flexible packaging papers produced at its Simpele mill in Finland and its M-real Zanders mills Gohrsmühle and Reflex in Germany. The price increase is up to 10% and will become effective April 1.The increase is mainly driven by continuous increases in raw material and logistics costs, the company noted. Back To Top
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RockTenn, Norcross, Ga., USA, this week announced a $60 per ton price increase on all grades of containerboard. The price increase is effective beginning with April orders. RockTenn, a producer of paperboard, containerboard, and consumer and corrugated packaging, with annual net sales of approximately $2.8 billion, has 10,000 employees at locations in the U.S., Canada, Mexico, Chilé, and Argentina. Back To Top
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Energy

ÅF AB, Stockholm, Sweden, reports that it has won a major consulting contract with energy company Fortum, Keilaniemi, Espoo, Finland, for complete engineering and project management at Fortum's new waste-to-energy plant to be built in Klaipeda, Lithuania. The contract value is several million Euros, according to ÅF.

The plant will be the first waste-to-energy operation in Lithuania, and will use municipal and industrial wastes and biofuels as fuel. It will generate 20 MW of electricity and 59 MW of district heat for the Klaipeda municipality. The plant will be capable of converting 272,000 metric tpy of municipal waste to energy after startup, which is currently set for January 2013.

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People
Avery Dennison Corp., Pasdena, Calif., USA, reports that its board has elected President and CEO Dean A. Scarborough to succeed Kent Kresa as chairman and selected Director David E. I. Pyott lead independent director. Pyott, chairman and CEO of Allergan Inc., is one of 10 independent directors on Avery Dennison's 12-person board. The changes will take effect upon Kresa's retirement on April 22, at the annual shareholders meeting, in accordance with Avery Dennison's policy that directors retire at the age of 72. As chairman, Scarborough will continue in his roles as president and CEO. Back To Top
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Rottneros, Sweden, reports that its CFO Karl Ove Gronqvist is leaving the company to become CFO of Euro.Maint AB in Sweden. Gronqvist has worked as the Rottneros Group CFO for four years. The company, a major market pulp producer in Scandinavia, has already launched a search for Gronqvist's successor. Back To Top
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TAPPI News

Early discounted registration is now open for the 2010 BioPro Expo™ and Conference, slated for August 24-26 at the Cobb Galleria Centre in Atlanta. Providing program content and comprehensive exhibits created with multiple industries in mind, BioPro Expo™ explores practical methods for transitioning a variety of biomass feedstocks into energy and biofuel. This unique event will bring together diverse communities ranging from forest, agriculture, and biorefinery operations to power companies and technology suppliers – offering the Southeast's most powerful educational and professional networking experience in the bioenergy arena.

BioPro Expo will include in-depth case studies and technical sessions from experts in a variety of industries. In addition, there will be a comprehensive tradeshow and hands-on technology interaction. Additional input from governmental agencies will supplement this experience with perspective on the rapidly changing regulatory and funding environment impacting renewable energy efforts.

Registration fees are $485 for TAPPI members and $746 for non-members, if confirmed by July 2, 2010. Onsite registration is $735 for TAPPI members and $1,125 for non-members. Registration information is available at www.bioproexpo.org.

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Offered for the first time in years, TAPPI is pleased to unroll the Tissue Runnability Course, April 19-21, 2010 – an essential program for paper professionals at TAPPI's Atlanta headquarters. This course offers a comprehensive understanding of the tissue making process at many levels that can be applied immediately on the job. Instructional topics are focused on helping attendees improve the quality of their products, diminish waste and poor output and reduce frustrating down-time. The course material is designed with the objective of helping participants thrust production into high gear.

The Tissue Runnability Course is designed expressly for engineers, machine supervisors, technical resources, lead operators and technical personnel in tissue and towel mills. The three-day event covers the impact of recycled furnishes on paper characteristics, the principles of wet-end chemistry with machine operation, cleaning and conditioning of felts and wires, causes of tissue runnability problems in the press/Yankee/hood drying systems, identifying improvement opportunities on the dry-end of the paper machine, and pinpointing problems with the Yankee dryer steam, coating, and hood systems to increase machine productivity. The course schedule is led by industry-recognized instructors.

Tissue Runnability is limited to 30 participants, so prompt registration is encouraged for this course. Early bird registration ends March 19, 2010.

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The 2010 International Bioenergy and Bioproducts Conference (IBBC) is now an important conference component of BioProExpo™. IBBC will include technical presentations, expert panels, case studies, and reports from projects that address the production of biofuels and bioproducts through: the use of forest and agricultural biomass resources; biorefining technology; feedstock and harvesting improvements to increase yield and quality of biomass; and leveraging forest products manufacturing infrastructure.

Presentations are being sought in the following topic areas:

Technology Track: Seeking strong technical papers with a focus on presenting new findings in Biomass Supply & Demand, Biomass Harvesting & Preparation, Advances in Conversion Pathways and Advances in Bioproducts.

Deployment Track: Seeking case studies and updates from pilot scale, commercial, and pre-commercial operations in Biorefineries, Repurposing the Traditional Pulp and Paper Mill, Harvesting and Preparation, Technical Economic Analyses, Commercial Collaborations for Enabling Technologies and Project Deployment Issues.

For more information on the IBBC Call for Papers, visit http://www.bioproexpo.org/ibbc_call.asp.

Abstract Requirements: Abstracts should be no more than 200 words.
Submission Deadline: March 22, 2010
Presentations Deadline: August 2, 2010
Submit Abstracts to: IBBC@tappi.org
Event Website: www.bioproexpo.org

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Date(s):
Spring 2010 -- April 12-14
Fall 2010 -- October 4-6
Spring 2011 -- April 4-6
Fall 2011 -- October 3-5

Location:
Crowne Plaza Hotel at the Atlanta Hartsfield-Jackson Airport

The Black Liquor Recovery Boiler Advisory Committee (BLRBAC) guides the safe installation and operation of recovery boilers at kraft paper mills. Their meetings draw attendees from all over the world, from the operating mills, the manufacturers of recovery boilers and associated equipment, to engineers from the insuring companies. Many members of BLRBAC are also TAPPI members that serve on the Steam and Power Committee.

Visit www.blrbac.org for registration information and additional details or contact David Parrish at david.parrish@fmglobal.com.

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TAPPI offers congratulations to three new Board of Directors members: Robert J. Gallo (Voith), Jeff Hamilton (Sappi Fine Paper North America) and Chris Luettgen (Kimberly-Clark). Elected to begin their three year terms in March 2010, they will join Jeffrey J. Siegel (Mica Corporation) and Norman F. Marsolan (Institute of Paper Science & Technology-IPST @ GA Tech), who continue to serve as TAPPI Chair and Vice Chair, respectively.

A member of TAPPI since 1979, Gallo is president of Voith Paper North America based in both Appleton, Wisconsin and Wilson, North Carolina. Hamilton, who comes from a paper-making family, is Corporate Director of Manufacturing Services and deeply involved in Sappi's manufacturing, technical and R&D activity, driving the sharing of best practices and encouraging knowledge transfer with teams from Sappi sites around the world. An active member of TAPPI since 1986, Luettgen has worked in Research, Engineering and Operations with Scott Paper and with Kimberly-Clark Corporation. He currently serves as Senior R&E Manager, Business Support, K-C Professional Business.

Special thanks also go to the following TAPPI Board of Directors members: Carlos A. Aguiar (Fibria), Mark Watkins (MWV) and Jukka Tiitinen (Metso Paper USA Inc.), as they complete their terms in March of 2010.

A complete list of the TAPPI Board of Directors is available online.  

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Date: March 15-19, 2010
Location: North Carolina State University, Raleigh, North Carolina

Need to know more about pulping, bleaching, chemical recovery, recycling, papermaking and converting to do your job better? Gain an excellent overall view of the basic concepts in pulp and paper manufacturing while increasing your understanding through hands-on laboratory exercises.

Using a combination of balanced lectures and laboratories, this workshop will provide you with an easy-to-learn and lasting introduction to pulp and paper technology, operations, and markets, including:

  • Overview knowledge of the entire pulping and papermaking process
  • How different processes affect paper properties
  • Hands-on lab experiments to enhance your understanding of process
  • Run a pilot plant paper machine
  • Close interaction with Pulp and Paper Professors in small groups

Learn more about the course, and register to attend, here. You can also download the complete course brochure.

CEUs available. This course will also be held June 7-10, 2010; and October 4-8, 2010.

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Attendees at PaperCon 2010 (May 2-5, 2010, in Atlanta) will hear first-hand about Starbucks Coffee Company's long-term commitment to environmental stewardship and its goal to develop a comprehensive recyclable cup solution. Jim Hanna, Starbucks Director of Environmental Impact, will kick off the conference on Sunday, May 2, in Atlanta with his keynote address: "It Takes a Village – Starbucks Quest for the Recyclable Cup."

Hanna will provide an overview of Starbucks efforts to significantly reduce its environmental footprint through energy and water conservation, recycling and green construction. He will also discuss Starbucks aim to achieve recyclability or compostability.

TAPPI/PIMA's PaperCon is North America's largest pulp and paper conference, bringing together industry leaders and technical experts to explore market trends and the latest technologies for paper, board and tissue making, coating and printing. For the 2010 event, PaperCon will focus on the talent, technology and transformation needed to ensure long-term competitiveness. The May 2-5 gathering in Atlanta, Georgia, offers a unique opportunity to network with colleagues from all aspects of the industry. For more information, go to www.papercon.org.

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TAPPI is pleased to announce the 2010 recipients of the Gunnar Nicholson Gold Medal Award, Herman L. Joachim Distinguished Service Award, and the Paul W. Magnabosco Outstanding Local Section Member Award:

  • Richard J. Kerekes, PhD., Professor Emeritus, University of British Columbia, Vancouver, British Columbia, Canada, will receive the 2010 TAPPI Gunnar Nicholson Gold Medal Award.
  • Willis J. Potts, Jr., retired from Temple Inland, Rome, GA, USA, will receive the 2010 TAPPI Herman L. Joachim Distinguished Service Award.
  • Empire State TAPPI/NY Canadian PIMA Local Section Member Scott Frasca, Senior Account Manager, RohmNova, Sidney, ME, USA, will receive the 2010 TAPPI Paul W. Magnabosco Outstanding Local Section Member Award.

In addition, the following nine individuals have been named 2010 TAPPI Fellows:

  • Gerald M. Dykstra, Retired Buckman, Bartlett, TN, USA
  • Martin A. Hubbe, PhD., Associate Professor, North Carolina State University, Raleigh, NC, USA
  • John C. Husband, PhD., Lead Scientist, IMERYS Minerals Ltd., Cornwall, United Kingdom
  • Cheryl M. Lamb, Retired from Buckman, Ellenton, FL, USA
  • Patrice J. Mangin, PhD., General Director, Centre Integre En Pates Et Papiere, Trois-Rivieres, Canada
  • Frank J. Sutman, Global R&D Platform Lead, Ashland Hercules Water Technologies, Wilmington, DE, USA
  • Jukka H. Tiitinen, President, Metso Paper North America, Atlanta, GA, USA
  • Ronald L. Van Gilder, Research Fellow, Sappi Fine Paper N.A., Westbrook, ME, USA
  • Mark T. Watkins, Senior Vice President, MWV(MeadWestvaco) Corporation, Glen Allen, VA, USA

The 2010 award winners will be honored at the Tuesday evening, May 4, 2010, awards dinner during the 2010 PaperCon Conference at the Hyatt Regency, Atlanta, GA, USA. The new TAPPI Fellows will be honored at the TAPPI Fellows Luncheon, Sunday, May 2, 2010, at the Hyatt Regency, Atlanta, GA, USA in conjunction with the 2010 PaperCon meeting.

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A Call for Presentations/Posters has been issued for the 2010 TAPPI International Conference on Nanotechnology for the Forest Products Industry, 27-29 September, 2010, in Espoo, Finland. This annual, internationally recognized event brings together leading researchers, industry experts, government representatives, and other stakeholders to share  advances and perspectives on nanotechnology-based products for the forest products and related industries.

To leverage research advances and offer participants new opportunities for knowledge sharing, the 2010 Technical Program Committee invites contributions from participants working with nano-enabled bio-materials, products, and their processing. Analysis of challenges and trends in emerging markets for forest products that are based on nanotechnology are sought to provide a foundation for new research and industrial activities. The organizers also  encourage submissions on other aspects of nanotech products including law, policy, economics and environmental health and safety. View the Call for Papers.

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"Morale is when your hands and feet keep on working when your head says it can't be done."
 
-- Benjamin Morrell (1795–1839), American explorer

Share YOUR favorite advice or interesting ideas -- about life, business, the industry, work or leadership -- by sending in a quote to share with other Over the Wire readers. Email your quote suggestions, along with your name and company information, to mshaw@tappi.org. We value the input of our OTW readers.
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Ken Patrick Ramesh Gupta Larry N. Montague
Editorial Director International Editor President and CEO
770-209-7340 bsc_rcg@hotmail.com lmontague@tappi.org
kpatrick@tappi.org    
30 years' experience writing for the pulp,    
paper, packaging, and allied industries    
     
Karen Roman
Maria Luisa Valencia Eric Fletty
Production/Distribution Editor International Editor Vice President, Operations
770-209-7416 mlvalencia@une.net.co efletty@tappi.org
kroman@tappi.org    
     
  Shane Holt  
  Integrated Media Director, Naylor, LLC  
  352-333-3345  
  sholt@naylor.com  

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