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Travels with Larry Archive
Thursday, May 06, 2010
members edition
Honeywell
Weekly Spotlight
This past week the U.S. slapped additional preliminary duties on hundreds of millions of dollars of glossy magazine-quality paper from China and Indonesia.
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Preliminary 2010 PaperCon figures show almost a 70% increase in attendance in Atlanta, Ga., USA, this week compared with 2009 PaperCon in St. Louis,
Learn More...
 
During PaperCon 2010 in Atlanta this week, paper industry veteran Bob Vyse donated his personal library to TAPPI's new library at the organization's headquarters in Norcross, Ga., USA.
Learn More...
 
EcoSecurities, Portland, Ore., USA, an organization in the business of sourcing and developing greenhouse gas emission reduction projects, Conservation International, The Climate, Community & Biodiversity Alliance, ClimateBiz, and Norton Rose Group this week announced the findings of their second annual "forest carbon offsetting report 2010," which focuses on corporations' attitudes towards carbon offsets from forestry projects.
Learn More...
 
A recent Finnish survey by the Association of Packaging Technology and Research (PTR), shows that paperboard and paper are environment-friendly and safe packaging materials, and the environmental image of paperboard and paper is superior to that of other packaging materials.
Learn More...
 
Market Roundup
The tenor of the N.A. coated free sheet market is improving, with April list prices reportedly up $5-$10/ton.
Learn More...
 
The global pulp market remains tight, and reports suggest that N.A. NSBK prices are set to rise by another $40/metric ton in May.
Learn More...
 
Following the announced $60/ton April price hike (the second one in four months) the containerboard focus will now turn to downstream implementation of an announced 9.5%-10% global box price increase.
Learn More...
 
Pulp & Paper
AbitibiBowater Inc., Montreal. Que., Canada, reports that the company and certain of its U.S. and Canadian subsidiaries, currently under creditor protection, this week filed with courts in Canada and the U.S. a Debtors' Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code and CCAA Plan of Reorganization and Compromise in draft form.
Learn More...
 
Fortress Specialty Cellulose Inc., Toronto, Ont., Canada, reported this week that it has completed the acquisition of Fraser Paper's pulp mill located in Thurso, Que., Canada.
Learn More...
 
Fraser Papers Inc. (together with its subsidiaries, "Fraser Papers") reported this week that it has completed the previously announced sale of its specialty papers business to Twin Rivers Paper Co., South Portland, Maine, USA.
Learn More...
 
Gould Paper Corp., New York, N.Y., this past week became a 51% subsidiary of Japan Pulp & Paper (U.S.A.) Corp.
Learn More...
 
M-real, Finland, reports that it met its target to implement an Energy Efficiency System (EES) in all of its production units by the end of 2009.
Learn More...
 
Verso Paper Corp., Memphis, Tenn., USA, this week announced its release of "A Renewable Commitment – Sustainability Report 2009." The report shares Verso's commitment to sustainably balancing environmental, social, and economic needs.
Learn More...
 
Containerboard/Packaging
Amcor Packaging (Australia) Pty Ltd, as part of its new machine project for a containerboard line at its Botany Mill in Sydney, Australia, has placed an add-on order for containerboard making technology with Metso Paper, Finland.
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Donald S. Huml, executive VP and CFO of Greif Inc., Delaware, Ohio, USA, this past week said that he will retire.
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MeadWestvaco, Richmond, Va., USA, reports that it has closely examined the impact and effects of its compostable food service packaging by studying the implementation of its MWare product.
Learn More...
 
Stora Enso, Finland, reported this week that it is expanding the company's selection of biopolymer-coated packaging boards.
Learn More...
 
Tetra Pak, Sweden, reports that its Operational Cost Reduction (OCR) program can help companies significantly reduce their packaging line operating costs
Learn More...
 
New Products
Smurfit Kappa Lithopac, Sweden, has developed a solution to package giant multipacks of Marabou Chocolate bars, designed to be used as prizes in theme parks.
Learn More...
 
Published Pricing
BASF, Ludwigshafen, Germany , reports that it is immediately (or as contract terms allow) raising prices up to 20% for all of its paper and board dispersions sold in Europe, the Middle East, and Africa.
Learn More...
 
DuPont Titanium Technologies, Wilmington, Del., USA, this week announced a price increase for all of its Ti-Pure titanium dioxide (TiO2) grades sold in North America, Latin America, Europe, Middle East, and Africa, effective June 1, or as permitted by contract.
Learn More...
 
Graphic Packaging International, Marietta, Ga., USA, has announced a price increase for its solid unbleached sulfate (SUS) paperboard, effective with shipments on or after May 31.
Learn More...
 
Pankaboard, Lieksa, Finland, is increasing the prices of its folding box board by EUR 80 per ton in continental Europe and 80 Pounds Sterling per ton in the U.K.
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Pregis Corp.'s Hexacomb business unit, Deerfield, Ill., USA, has announced a price increase on all grades and sizes of its product line, effective with shipments on or after June 7.
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RockTenn, Norcross. Ga. USA, this week announced a $40 per ton price increase on Millennium grades of 100% high strength recycled paperboard.
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People
John Drengler has been named VP, product and marketing, SCA Tissue North America, Philadelphia. Pa., USA.
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Mohawk Fine Papers Inc., Cohoes, N.Y., USA, this week promoted Paul Biesiadecki to executive VP.
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TAPPI News
Attend the TAPPI Hands-On Workshop for Pulp and Paper Basics June 7-11 at North Carolina State University in Raleigh, NC.
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With a 40 percent attendance increase, PaperCon 2010's success reveals optimism throughout the pulp and paper industry.
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TAPPI Lean Manufacturing for Flexo and Die Cutters - May 25-27

If there's a best time to implement lean manufacturing into your operations, this is it. TAPPI is offering the 2010 TAPPI Lean Manufacturing - Flexo & Die Cutters May 25-27 at TAPPI headquarters near Atlanta.
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TAPPI is excited to announce the debut of our newest feature on the website: Member Spotlight. Located on the Membership Overview page [http://www.tappi.org/Membership.aspx], this new section will feature interviews with individuals who have been recommended by your fellow members.
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Entry deadline for finest commercially produced corrugated packaging is August 27.
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Division Technical Award and Leadership & Service Award nominees are requested.
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The TAPPI International Conference on Nanotechnology for the Forest Products Industry solicits program info for 2010.
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TAPPI and Pira International Sponsor Second Annual Specialty Papers Conference November 10-11, 2010, in Chicago, Ill., USA
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TAPPI Lean Manufacturing Course Prepares Companies for Peak Performance
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TAPPI and its member companies like Kemira use social media to connect internally and externally. Do you?
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Metso Paper
Weekly Spotlight

This past week the U.S. slapped additional preliminary duties on hundreds of millions of dollars of glossy magazine-quality paper from China and Indonesia. The U.S. Commerce Department (DOC), Washington, D.C., USA, said it hit Chinese companies with new duties ranging from 30.82 % to 135.8%. The DOC found that a single rate of 10.62% should apply to all Indonesian coated paper producers.

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., immediately commended the DOC for its decisions. The new duties are on top of countervailing duties of 3.92% to 12.83% for China and 17.48% for Indonesia announced in March to offset government subsidies.The U.S. imported $213.3 million of coated paper from China in 2009 and $46.9 million from Indonesia.

The three U.S. companies and the USW filed unfair trade cases on Sept. 23, 2009 with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission alleging that certain coated paper from China and Indonesia had been dumped and subsidized resulting in injury to the domestic industry and its employees. The paper products covered by the petitions include coated paper in sheet form used in high-quality writing, printing, and other graphic applications, with a GE brightness rating of 80 or higher and weighing up to 340 gsm.

The decision by the DOC supports the allegations in the petitions that imports from these two countries are being dumped. Dumping occurs when a foreign producer sells into the U.S. market for less than the price that a producer charges in its home market or when its U.S. prices are below the cost to produce the product. The decision also follows a DOC determination on March 1, 2010, that Chinese and Indonesian coated paper producers benefitted from a variety of subsidies and the International Trade Commission's earlier preliminary decision finding that the domestic industry had been injured by Chinese and Indonesian paper imports. In addition, DOC noted that it is reviewing the Petitioners' allegation that undervaluation of China's currency provides a subsidy, as well as other new subsidy allegations in the China subsidy investigation, which could make a difference in the rates assessed in the final determination.

The three companies employ about 6,000 production workers represented by the USW at 20 paper mills operating in seven states.

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Preliminary 2010 PaperCon figures show almost a 70% increase in attendance in Atlanta, Ga., USA, this week compared with 2009 PaperCon in St. Louis, Mo.This year's conference and exhibition had 1,263 attendees, up from 751 in St. Louis last year.

The 2010 PaperCon exhibit had 70 exhibits, compared with 41 last year, again a 70% increase. Final figures will be reported in a near-future issue of Over the Wire.

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During PaperCon 2010 in Atlanta this week, paper industry veteran Bob Vyse donated his personal library to TAPPI's new library at the organization's headquarters in Norcross,Ga., USA. In the photo below, Jeffrey J. Siegel (right), chairman of TAPPI, thanks Vyse for the donation.

Considering that today collections of paper industry technical information are going to the recycle bin at many institutions, TAPPI's new library is functioning as a "safe zone" for intellectual capital that has built up over the past 50+ years. If you know of collections of pulp and paper or packaging related materials that are being disposed of, please contact David Bell at TAPPI, dbell@tappi.org, or (770) 209-7209.

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EcoSecurities, Portland, Ore., USA, an organization in the business of sourcing and developing greenhouse gas emission reduction projects, Conservation International, The Climate, Community & Biodiversity Alliance, ClimateBiz, and Norton Rose Group this week announced the findings of their second annual "forest carbon offsetting report 2010," which focuses on corporations' attitudes towards carbon offsets from forestry projects. The forest carbon offsetting research sampled 207 organizations, specifically 157 global, multinational, and regional organizations (68 of which have headquarters in North America) and 50 carbon companies.

 Focusing on the North American respondents, highlights of the research include:

  • For the second year in a row, three out of four North American respondents claim to have a positive attitude towards forestry
  • Participants from North America highlighted the most important factor when purchasing forest carbon offsets are carbon standards (85%), closely followed by project location (85%), and project type (83%)
  • Avoided deforestation in the tropics and reforestation with native species (both around 40%) were rated the most highly desirable types of forestry project
  • Domestic U.S. (79%) and South America (74%) were the most sought-after regions from which to purchase forest carbon credits
  • The Voluntary Carbon Standard (VCS) and Climate Action Reserve (CAR) were the two most popular carbon standards for North American respondents (73% and 63% respectively).

full version of the Forest Carbon Offsetting Survey 2010 is available online.

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A recent Finnish survey by the Association of Packaging Technology and Research (PTR), shows that paperboard and paper are environment-friendly and safe packaging materials, and the environmental image of paperboard and paper is superior to that of other packaging materials. The PTR survey examined consumer attitudes and preferences on packaging, as well as how these have developed over the past decade.

According to the survey, consumers feel that paper packaging is nowadays more frequently an indication of a high-quality, valuable product. This is the case with respect to, for example, bakery goods that are sold wrapped in paper bags.

The young and adults under 30 years of age consider paper and paperboard a more ordinary and less trendy material than other respondents.

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Market Roundup

The tenor of the N.A. coated free sheet market is improving. April list prices were reportedly up $5-$10/ton, according to Mark Wilde, senior analyst with Deutsche Bank. Reports suggest that producers are considering announcing further price hikes in July, which is the seasonally strong period for commercial printers.

While March shipment data show signs of improvement, (+24.1% y/y, +15.6% m/m), much of the gain owes to a "lapping" of weak numbers from March 2009 (-32.6% y/y). However, the coated sheet market will get a large bounce as restrictions on Chinese and Indonesian imports take effect (see article above on U.S. anti-dumping duties on Chinese and Indonesian imports). For Chinese mills, this adds 31%-90% to the 4%-13% duties already in place, and Indonesian mill face an additional 11% on top of the previous 18%, according to Wilde.

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The global pulp market remains tight, Wilde notes. Reports suggest that N.A. NSBK prices are set to rise by another $40/metric ton in May. This would take N.A. NBSK prices to the highest ever level in nominal terms. In Europe, producers have set NBSK at $960-$970/metric ton for May. With recently announced initiatives, fluff pulp prices are set to rise $20-$40/ton in both the U.S. and Europe, pushing prices to over $1,000/metric ton, Wilde says.

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Following the announced $60/ton April price hike (the second one in four months) the containerboard focus will now turn to downstream implementation of an announced 9.5%-10% global box price increase, according to Wilde. A number of box contracts are likely to go "out to bid" as buyers test producer resolve, he adds.

The real issue, however, is tight global supplies of containerboard. Brokers are reportedly scrambling for export tonnage as producers channel available supply to domestic customers, Wilde says. March European numbers indicate signs of a cyclical recovery (shipments +4.5% on a "blended" basis, inventories were lean, and operating rates were high). On the cost side, pulpwood availability is gradually improving and wastepaper costs (mainly, OCC were down $35/ton in April).

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GoIndustry (UK) Limited
Pulp & Paper

AbitibiBowater Inc., Montreal. Que., Canada, reports that the company and certain of its U.S. and Canadian subsidiaries, currently under creditor protection, this week filed with courts in Canada and the U.S. a Debtors' Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code and CCAA Plan of Reorganization and Compromise in draft form. The plan is a framework for the final forms expected to be filed in the near term.

A classification scheme and resultant forms of recoveries for all company creditors is proposed in the plan. It specifies that non-disputed pre-petition secured, administrative, debtor-in-possession, and other priority claims would be paid in full in cash, or satisfied as otherwise agreed, at emergence. Unsecured claims would receive a pro rata share of equity in the reorganized company upon emergence, subject to certain conditions. Details on the extent of recovery for unsecured creditors will be outlined in subsequent disclosures.

Before emerging from creditor protection, the company must secure adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plan. Prior to emergence, a new board of directors will also be designated for the company. The plan will ultimately require approval by the creditors and the courts.

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Fortress Specialty Cellulose Inc., Toronto, Ont., Canada, reported this week that it has completed the acquisition of Fraser Paper's pulp mill located in Thurso, Que., Canada. As noted in the OTW article below, Twin Rivers Paper of Maine has finished purchasing two of Fraser's pulp and paper mills in the U.S. and two saw mills in New Brunswick. Fraser's remaining assets remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act (CCAA) of Canada.

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Fraser Papers Inc. (together with its subsidiaries, "Fraser Papers") reported this week that it has completed the previously announced sale of its specialty papers business to Twin Rivers Paper Co., South Portland, Maine, USA. Twin Rivers is comprised of the core businesses of Fraser Papers, and the part that emerged this week from creditor protection. Twin Rivers now consists of the Madawaska, Maine, paper mill, the Edmundston, N.B., Canada, pulp mill and cogeneration facility, and the sawmills in Plaster Rock and Juniper, N.B. Jeffrey C. Dutton is the president and CEO of Twin Rivers.

Fraser Papers remains under creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act (CCAA), with its stay of proceedings having been extended by the court to July 9, 2010. Its remaining assets are in the process of being sold.

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Gould Paper Corp., New York, N.Y., this past week became a 51% subsidiary of Japan Pulp & Paper (U.S.A.) Corp. (JPP), a wholly-owned subsidiary of JPP (Tokyo). Gould CEO and chairman Harry E. Gould stated that the sale of the company had been his objective within the next five years and, fortunately, the right opportunity arrived sooner rather than later. The purchase represents an Enterprise Value for Gould Paper in excess of $100 million. JPP plans to purchase the remaining 49% of equity in April 2015.

From the perspective of JPP, the acquisition represents a major opportunity to implement its long-term business investment strategy, which has been designated "Innovation JPP 2020." This strategy is designed to identify increased investment in offshore management resources and the expansion of overseas business activities as key corporate goals to be achieved by the year 2020. JPP has already established 21 strategic locations throughout China and the greater Asian region, which includes the wholesale trade of paper and paperboard products, the sale of new materials used in the production of recycled paper products, and the manufacture and production of household paper products. In addition, JPP sells printing and communication papers as well as specialty papers through their offices in Los Angeles, Atlanta, Mexico City, Düsseldorf, Moscow, and Sydney, Australia.

Gould Paper, established in 1924, is one of the quartet of largest paper merchants in the U.S., with a vast global reach. Gould has distribution facilities in Edison, N.J., Miami, Fla., and Dallas, Texas, as well as an additional 33 outside warehouses across the U.S. It also maintains 16 sales offices throughout the country in addition to sales offices in the U.K., Helsinki, Paris, Auckland, Glasgow, Moscow, Shanghai, Manila, and Hong Kong. Gould also has representative offices in Dubai, Chennai (India), Istanbul, Taipei, Melbourne, Sao Paulo, Lima, Buenos Aires, Santiago, Costa Rica, and Panama.

Gould further stated that there is almost no overlap with JPP with respect to suppliers and customers. This will allow the two companies to "cross-pollinate" supply sources and take advantage of the growing "global" mind-set of the major international corporations. In short, the combination brings an even higher "value-add" quotient to both companies' supplier and customer base.

All Gould personnel and managers will continue in their existing positions. In addition, Carl Matthews (Gould's CFO), and several other key managers will continue in their respective positions for a minimum of five years. Gould added that with JPP's capital base, Gould's expansion through acquisition will accelerate in both the foreign and North American markets.

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M-real, Finland, reports that it met its target to implement an Energy Efficiency System (EES) in all of its production units by the end of 2009. M-real is among the first companies in the world to adopt such a management system, now integrated into the company's operating policies and providing a foundation for continuous energy efficiency improvement activities in the future. An average of 50-100 energy efficiency projects are underway within the system. The latest major project is the Husum mill's new turbine investment, totaling EUR 22 million. This project, to improve electricity self-sufficiency at the Husum site from 30% - 50%, is expected to be completed by the end of 2010.

Optimization of energy efficiency also have a positive environmental impact. The company's carbon dioxide emissions have already decreased by almost 20,000 metric tons a year. The EES is part of M-real's climate program and will enhance the company's competitiveness, as many measures to slow down climate change also have a positive effect on energy costs. Also, water consumption, which is closely related to energy efficiency, has been continuously improved by the EES. And, by paying attention to water consumption, it is possible to make heat usage more effective, the company notes.

M-real points out that its reporting is very open and transparent, and it accordingly has been able to provide customers with carbon footprint calculations for all of its products, covering the manufacturing processes of pulp, board, and paper (including purchased electricity) as well as the transportation of wood raw material, pulp, and products. 

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Verso Paper Corp., Memphis, Tenn., USA, this week announced its release of "A Renewable Commitment – Sustainability Report 2009." The report shares Verso's commitment to sustainably balancing environmental, social, and economic needs. The report highlights Verso's

  • Commitment to safety excellence demonstrated by a total incidence rate (TIR) for injuries of 1.92, a historic low for the company and nearly two times better than the industry average
  • Increased certified fiber use from third party suppliers to 69% from 65%, surpassing the goal of 67% (in addition, Verso expanded its collaboration with other stakeholders to help increase the overall amount of certified fiber available in the marketplace
  • Increased amount of carbon-neutral biomass energy used to run its operations to 53.6%, up from 53.1% in 2008
  • $9.3 million grant awarded by the U.S. Department of Energy, which the company matched with an additional $9.6 million, to implement 12 energy projects that will improve energy efficiency by 33% and save about 1.27 trillion BTUs annually
  • Partnership with one of its top customers, The National Geographic Society, to measure the carbon footprint of National Geographic magazine, which is printed on paper made at Verso's Androscoggin mill in Maine. This project helped the company further refine the lifecycle assessment model it developed in 2008
  • Expansion of its product offerings to include a line of lightweight uncoated printing papers and a line of supercalendered papers for the magazine, catalog, and retail insert markets (lightweight papers require fewer natural resources to produce)
  • Maintenance of its previous year's level of giving to United Way (during particularly difficult economic conditions).

"The focus on renewable commitment was particularly important during 2009, a challenging year to be in the paper business," said Mike Jackson, Verso's president and CEO. "Our people took on every challenge with determination and resourcefulness, holding fast to our sustainability principles. We were able to create value for our stakeholders by perpetually driving for performance improvements and demonstrating a truly renewable commitment to financial success, environmental excellence, and social responsibility."

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Containerboard/Packaging

Amcor Packaging (Australia) Pty Ltd, as part of its new machine project for a containerboard line at its Botany Mill in Sydney, Australia, has placed an add-on order for containerboard making technology with Metso Paper, Finland. The main order for a containerboard line scheduled to startup during the second half of 2011 was placed by Amcor in 2008. The value of the add-on order will not be disclosed.

Metso's delivery for the Botany Mill testliner machine will now extend to include all main process equipment and control systems for the Mill. The add-on order contains, among others, control valves and instrumentation as well as complete mill engineering and electrification with Metso drive controls. The machine will allow Amcor to produce high performance testliner at lighter weight, with significant environmental benefits and lower usage of energy and water.

Amcor Packaging is part of Amcor Limited, a global packaging manufacturer providing a broad range of plastic, fiber, metal, and glass packaging products, along with packaging-related services. It has an annual sales of about EUR 9.5 billion (in excess of AUD 14 billion) and 35,000 employees worldwide at more than 300 manufacturing sites in 43 countries.

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Donald S. Huml, executive VP and CFO of Greif Inc., Delaware, Ohio, USA, this past week said that he will retire. He has been CFO since joining the company in 2002, and was named executive VP in 2006. Greif says that it will conduct a rigorous internal and external search for his replacement. After his successor has been named, Huml will remain with the company to ensure an orderly transition, and will take on special projects and serve in an advisory capacity for an undetermined period. Huml will fully retire once continuity in the company's operations and strategic initiatives is assured.

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MeadWestvaco, Richmond, Va., USA, reports that it has closely examined the impact and effects of its compostable food service packaging by studying the implementation of its MWare product. MWV followed its product from fiber sourcing to consumer end use to its deposit into a composting bin, and finally to its return to the lifecycle as organic fertilizer available to local businesses.

The company produced a video to showcase the sustainability of its product and to help customers better understand the opportunities of compostable packaging. The video, called "Disposable to Sustainable," describes the lifecycle of paperboard-based packaging when composted. It explains that these products, once destined for the landfill, now help make up organic fertilizer approved for the growing of certified organic crops or flowers, plants, or trees for local farmers and businesses.

"Discarded, disposable packaging currently accounts for more than one-fourth of landfill waste in the U.S., and we see this as an incredible opportunity to make a positive impact by leveraging our expertise in packaging and materials," said Dobbie Newman, director of Food Service Marketing, MWV. "By showing how easily composting can be implemented, we hope to inspire and educate our customers, consumers, and other corporations about how a local solution can impact a global issue."

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Stora Enso, Finland, reported this week that it is expanding the company's selection of biopolymer-coated packaging boards. Biodegradable coating options are available for a number of the company's board grades for use in cups, plates, trays, and folding cartons. Paper cups used at this week's Finnish Pavillion at the World Expo in Shanghai are made from Stora Enso's biodegradable Cupforma board.

Paperboard trays made from Trayforma Performance Bio can be used for packaging fresh and chilled foods that are not heated in their packages. Vegetables, salads, and sandwiches are typical examples. All boards in Stora Enso's biodegradable board offering are approved for direct food contact.

Polymer coating gives the desired barrier properties for the package, protecting against oxygen, humidity, odor, taste, and light, and resulting in prolonged shelf life. The choice of coating depends on what kind of barrier is required. Biopolymer coatings provide an oxygen, moisture, and grease barrier, the company explains.

Biopolymer-coated paperboard breaks down to humus and CO2 in industrial composting. In recycling schemes, biodegradable products are primarily intended for the collection of materials for industrial composting. Collection schemes depend on local collection conditions. Stora Enso's boards can also be safely collected and recycled separately or together with other paper and board products.

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Tetra Pak, Sweden, reports that its Operational Cost Reduction (OCR) program can help companies significantly reduce their packaging line operating costs. The program teaches employees to identify ways to continuously increase operational efficiency, thus reducing costs. Since it was launched in 2008, the program has helped more than 60 customers achieve savings through 80 separate projects.

The OCR program is a consulting service that enables customers to reduce the costs of running a complete packaging line (i.e. labor, maintenance, and utilities), which typically represent between 5% and 15% of their total system costs. The savings are achieved by reducing or even eliminating losses and by implementing a customized improvement program throughout the plant. In addition, there are productivity gains associated with selling the extra capacity created.

Tetra Pak's specific methodology, called "Focused Improvement," involves activities designed to elevate the performance of a specific part of a plant to reduce operational costs, increase production capacity, and improve line performance. Tetra Pak works together with its customers to identify areas where savings can be made and efficiencies improved and then designs tailor-made improvement plans. Tetra Pak's customized solutions are based on Total Productive Maintenance (TPM) tools and techniques that provide a focused, effective, and structured approach to reducing operational costs. Problems are analyzed, root causes identified, and improvements maintained by creating new standards and procedures.

Each OCR project goes through three main phases:

  • Cost mapping and loss analysis. The initial phase provides an in-depth analysis by mapping costs of the entire packaging line to get the full operational cost structure.
  • Opportunity analysis. Savings are identified and the quickest and biggest wins are prioritized.
  • Implementation. Targeted improvement teams are created, consisting mainly of customers' staff that take ownership of the implementation and use TPM tools and techniques.
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New Products

Smurfit Kappa Lithopac, Sweden, has developed a solution to package giant multipacks of Marabou Chocolate bars, designed to be used as prizes in theme parks. These packs posed a challenge if they are to reproduce the look of standard size wrappers. A folding boxboard on its own would not be strong enough to protect all twenty 100g bars in the pack, and a corrugated liner would not possess all of the required printing qualities.

Smurfit Kappa's solution was to litho-laminate M-real's Carta Solida folding boxboard onto a corrugated board after offset printing. Carta Solida has the high whiteness and gloss to reproduce brand colors and images accurately, and combines high bulk with a light weight. It is available in sheets, allowing for flexibility in print runs, and its creasability makes it ideal for the multipack. Carta Solida is a fully coated bleached paperboard with a white back, one of M-real's range of virgin-fiber based cartonboards. It is available in 185-320 gsm.

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Published Pricing

BASF, Ludwigshafen, Germany , reports that it is immediately (or as contract terms allow) raising prices up to 20% for all of its paper and board dispersions sold in Europe, the Middle East, and Africa. Dispersions are used for surface refinement of papers and paperboards. The company attributes the increase to "a dramatic increase in raw material costs for dispersions."

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DuPont Titanium Technologies, Wilmington, Del., USA, this week announced a price increase for all of its Ti-Pure titanium dioxide (TiO2) grades sold in North America, Latin America, Europe, Middle East, and Africa, effective June 1, or as permitted by contract. In North America (U.S. and Canada), Ti-Pure prices will increase by $0.08 per lb. Net prices in Latin America will increase by $200 per metric ton, and net prices in the Euro markets of Western and Central Europe and North Africa regions will increase by EUR150 per metric ton.

DuPont Titanium Technologies operates plants at DeLisle, Miss. New Johnsonville, Tenn.. Edge Moor, Del., Altamira, Mexico, and Kuan Yin, Taiwan, all of which use the chloride manufacturing process.

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Graphic Packaging International, Marietta, Ga., USA, has announced a price increase for its solid unbleached sulfate (SUS) paperboard, effective with shipments on or after May 31. The price of GPI's coated folding carton grades Pearl-Kote and Omni-Kote will increase by $40 per ton. Aqua-Kote, GPI's carrier grade, will increase by $45 per ton.

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Pankaboard, Lieksa, Finland, is increasing the prices of its folding box board by EUR 80 per ton in continental Europe and 80 Pounds Sterling per ton in the U.K. The company attributes the increases to escalating costs in the industry and strong market demand for cartonboard. Pankaboard has one mill with a production capacity of 100,000 metric tpy on two paperboard machines.

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Pregis Corp.'s Hexacomb business unit, Deerfield, Ill., USA, has announced a price increase on all grades and sizes of its product line, effective with shipments on or after June 7. Hexacomb pricing will increase 10% in the U.S., Canada, and Mexico.

Pregis says that the price increase has become necessary due to additional upward pricing pressure from linerboard, fuel, and adhesives. It notes that linerboard (42 lb. unbleached kraft) rose approximately $60 per ton during March, which puts the increase at more than 20% since January.

Hexacomb is made with 100% paper and engineered into a honeycomb configuration. It provides high strength, cushioning, and blocking/bracing functions for a wide range of protective packaging and other applications. Hexacomb products include sheets, runners, edge and corner protectors, as well as Falconboard graphic display board.

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RockTenn, Norcross. Ga. USA, this week announced a $40 per ton price increase on Millennium grades of 100% high strength recycled paperboard. Price increases are effective with shipments on June 7. RockTenn operates facilities in the U.S., Canada, Mexico, Chile, and Argentina.

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People

John Drengler has been named VP, product and marketing, SCA Tissue North America, Philadelphia. Pa., USA. Drengler will direct the development and implementation of product and marketing strategies for the Away From Home tissue division of SCA in the U.S. and Canada. As a member of the Senior Leadership Team, he will be based in Philadelphia and report to Don Lewis, president.

"John brings to this role broad and deep knowledge of our company and industry, as well as valuable global perspectives of our business. He also has an exceptional focus on innovation, enhancing customer satisfaction, and delivering best-in-class products and services," said Lewis.

Drengler's two decades of leadership and industry experience span a number of sales, marketing, and executive roles. He joined SCA in 2001 and held positions in SCA divisions in North America and Europe, and most recently as VP, Away From Home Tissue, Global Hygiene Category. Before joining SCA, he served in management positions with Great Northern Corp., Fort Howard, and Wisconsin Tissue.

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Mohawk Fine Papers Inc., Cohoes, N.Y., USA, this week promoted Paul Biesiadecki to executive VP. With some 30 years of experience in the paper industry, Biesiadecki has spent the last six years leading sales and marketing with Mohawk, most recently as senior VP, Sales & Marketing and as Mohawk's National Sales Manager. Prior to Mohawk, he spent more than two decades with Appleton Papers where he worked closely with mill operations in human resources management, progressing through the sales organization and into senior level managerial positions.

"Paul has proven himself to be an inspirational leader,"said Thomas O'Connor Jr., chairman and CEO, "He has successfully led Mohawk through its transition from papermaker to a prolific developer of new products, platforms, and businesses, each which combines cutting-edge technologies and premium paper, such as LabPrints, liveBooks, and Felt & Wire Shop."

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TAPPI News
Attend the TAPPI Hands-On Workshop for Pulp and Paper Basics June 7-11 at North Carolina State University in Raleigh, NC. This five-day workshop is co-sponsored by NCSU and TAPPI. Instructors offer a combination of balanced lectures and laboratories for an easy-to-learn and lasting introduction to Pulping, Bleaching, Chemical Recovery, Recycling, Papermaking and Converting.

Why should your boss send you?

  • Understand the operation and purpose of your company's pulping and papermaking equipment
  • Learn the hidden costs in changing wood sources or recovered paper grades
  • Learn the implications of global paper consumption trends for your company
  • Learn more about black liquor properties and production
  • Understand how wood and recovered paper are made into paper products
  • Conduct hands-on experiments to enhance your understanding and retention of course material
  • Interact and engage in discussions with the faculty of Paper Science at North Carolina State University
  • Run a pilot plant paper machine and analyze the paper you produce
  • Learn how different processes affect paper properties

Learn More and Register.
This June 7-11 workshop is generally fully booked at least three weeks in advance, so make your reservations promptly. CEUs available.

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With a 40 percent increase in attendance over last year, TAPPI's PaperCon 2010 reflected increased optimism and market improvements throughout the pulp and paper industry.  More than 1,000 industry professionals were in Atlanta earlier this week for this three-day event filled with technical sessions, keynote speakers, special events, exhibits and networking opportunities.  PaperCon's Exhibit Hall included more than 75 companies like Metso, Kemira and EKA Chemicals providing the latest technology, sustainability and maintenance solutions to attendees.  In addition, two important keynote speakers addressed the crowd. Jim Hanna, Director of Environmental Impact for Starbucks Coffee, kicked-off the conference on Sunday  with an overview of Starbucks' efforts to reduce its environmental footprint through energy and water conservation, recycling and green construction.  Of particular importance to PaperCon attendees was Starbucks' aim to achieve recyclability or compostability of their cups.  Also, Nina B. Link, President and CEO of the Magazine Publishers of America, explored the disruption and transformation of the magazine industry brought about by technology and changing consumer and advertising demands.    In addition, PaperCon's Sustainability Forum and Showcase explored "The Science Behind Sustainability" and featured an impressive line-up of experts from thought-leading companies and organizations like MWV, Colgate, GreenBlue and NewPage to name a few.

 

PaperCon 2011 will be May 1-4 in Cincinnati (Covington, Kentucky).  For more information on PaperCon, go to www.papercon.org

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TAPPI Lean Manufacturing for Flexo and Die Cutters - May 25-27

If there's a best time to implement lean manufacturing into your operations, this is it.  TAPPI is offering the 2010 TAPPI Lean Manufacturing - Flexo & Die Cutters.  May 25-27 at TAPPI headquarters near Atlanta.

This three-day workshop offers intensive, skills training on running Die Cutters and Flexo Folder-Gluers at maximum efficiency. The course is led by Dick Target, one of the industry's most well-respected and knowledgeable experts in lean manufacturing.

Dick specifically will address:

  • Reducing set up time with Flexo and Die Cutters
  • Understanding how to set machinery to OEM specifications
  • Assisting maintenance in resetting machines once components are replaced
  • Acquiring easy-to-understand "one-box set up" techniques

Check out the full course schedule.

This course is coming up soon, so make your reservations right away.  We look forward to seeing you here at TAPPI May 25-27.

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Special Member Feature Debuts on TAPPI Website

TAPPI is excited to announce the debut of our newest feature on the website:  Member Spotlight.  Located on the Membership Overview page, this new section features interviews with individuals who have been recommended by your fellow members.  They share their TAPPI experience and some personal insights that you may not have known – and may be surprised to discover!

Rolled out on May 1, the first Spotlight showcases long-time member and successful consultant Charles (Chuck) P. Klass.  With more than 50 years of TAPPI participation under his belt, Chuck is a Lifetime Member who has been actively involved in numerous Committees, Divisions conferences and events.  A winner of several distinguished awards, he became a TAPPI Fellow in 1984.

If you would like to participate in the Member Spotlight, please fill out the Spotlight Questionnaire  and email it to MemberSpotlight@tappi.org.  If you would like to nominate a member, simply send their name (or names) to the same email address.
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The corrugated industry's esteemed CorrPak® 2010 Competition is open to ALL corrugated manufacturers worldwide. Entries for corrugated package products manufactured between August 1, 2008 and August 1, 2010 are now being accepted. The competition identifies and recognizes the finest commercially produced corrugated package products in the industry. Sponsored by TAPPI's Corrugated Packaging Division, the CorrPak® 2010 Competition is held every other year. Don't miss this one: Deadline for entries is Friday, August 27, 2010.

View or print the rules and entry requirements.

Individuals or companies may submit more than one submission for consideration, even in the same category. The CorrPak Competition is an exceptional way to showcase outstanding creativity and ingenuity. The CorrPak Competition entries on display at the 2010 Corrugated Week conference will provide an enlightening glimpse of some of the industry's finest work. For previous examples, view photos from the 2008 CorrPak Competition.

Winning entries will be displayed during the TAPPI 2010 Corrugated Week conference held October 4-8 in Baltimore, Maryland, USA and the winner will be announced during the TAPPI conference. This event offers the most effective networking opportunity possible – where attendees can meet with all the sales and technical reps from their suppliers – in the convenience of one place, where, as one past attendee put it, "you get away from the shop for a couple of days and really focus on broadening your knowledge base."

Good luck to all 2010 entries!

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The Awards Committee of the TAPPI Pulp Manufacturing Division is requesting nominations for the Division Technical Award (and Johan Richter Prize), and the Division Leadership and Service Award (and Joseph Perkins Prize). Nominations are requested for both awards, but only one will be selected to be awarded at the Fall PEERS (formerly EPE) Conference to be held in Norfolk VA.

The Division Technical Award is intended to recognize outstanding accomplishments or contributions, which have advanced the pulp manufacturing processes and methods. It was last awarded to Dr. Richard Berry of FPInnovations at the 2009 EPE Conference in Memphis, Tenn., USA. The Division Leadership and Service Award is intended to recognize an individual for outstanding leadership and exceptional service to the Division. The Division Leadership award was last presented to Dr. Gopal Goyal of International Paper Company at the 2008 EPE Conference in Portland, Ore.

Completed nomination forms should be sent to Alan Rudie at arudie@fs.fed.us or by mail to Alan Rudie, Forest Products Laboratory, One Gifford Pinchot Dr., Madison, WI 53726. The form may also be downloaded here.

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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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TAPPI, in partnership again with Pira International, is pleased to announce the second annual Specialty Papers Conference. It is scheduled for November 10-11, 2010 at the Hotel Allegro Chicago, in Chicago, Illinois.
This year's program will focus on the current state of the market and the latest technology and application developments in the specialty papers arena.

Specialty Papers 2010 will tentatively feature 18 expert presentations. They will cover market trends, technical development and application related advances through presentations. Equally important, there will be question-and-answer sessions and panel discussions. Topics new to this year's agenda include:
• an update on the Chinese specialty papers market;
• choosing specific market pulps for various grades;
• in-depth views of the packaging paper markets and developments; and,
• life cycle assessment and regulations and certifications.

Throughout the conference, there will be a number of hosted luncheons as well as breaks and receptions. All of the previous activities will occur in and around the exhibit area located outside the main conference room. Sponsorship and exhibition opportunities will be available.

More information about Specialty Papers 2010 is available online at  www.specialtypaperconference.com.  Speaker recruitment is now underway. To submit a topic for consideration, or to request more details, please contact conference producer Barbara Rojas at +1 207 781 9608.
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Economic down time offers an advantageous opportunity for companies to implement new cost-saving strategies and focus lead personnel on proven practices that will position the business for profit and efficiency in boom times.  TAPPI announces the offering of the course TAPPI Lean Manufacturing - Flexo and Die Cutters – May 25-27, which delivers a three-day, skills training workshop focused on running die cutters and flexo folder-gluers at maximum efficiency.

The course will be held at TAPPI headquarters near Atlanta and is led by Dick Target, a TAPPI member and one of the industry's most well-respected and knowledgeable experts in lean manufacturing.

Additional course content includes methods, such as centerlining, time and register calibration, vendor certification, and ink management. Other topics include zeroing the gear train in the press, implementing a successful five-s program, tools for effective waste reduction, tooling use and purchase, and anilox roll care and maintenance.

Presented in a direct, action-oriented manner, this course is valuable for everyone from senior operators and maintenance technicians to plant management. CEUs are available to course attendees. The course schedule and registration information are found at www.tappi.org/10LEAN. 
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Social media is quickly becoming a great channel to exchange information and connect with others in the industry and TAPPI has already embraced the social media wave! With input from our member companies, like Kemira, we have begun to strategize on how to connect with our members in a real-time, live, information-sharing forum.

During a recent visit with Kemira, Hannu Melarti, President North America, and Susan Flesher, Communications Manager for Kemira shared ideas on social media with TAPPI, explaining how they think it can help make the Kemira culture even "funkier" and more creative.

We'd love to know how you use social media, so drop an email to Raine Hyde (rhyde@tappi.org) and fill us in! If you haven't tried it yet, we encourage you to follow us on Twitter at TAPPITWEETS. Also, find us on FaceBook to become a TAPPI "Fan", and network with us on LinkedIn.

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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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