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Travels with Larry Archive
Thursday, February 24, 2011
members edition
Weekly Spotlight
Each day throughout the month of April, Memphis Botanic Garden (Memphis, Tenn., USA) in partnership with Memphis-based International Paper (IP) will host a month-long celebration of Earth Day
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The study evaluated potential carbon storage under a range of forest management scenarios, and found that the carbon storage benefits of reducing timber harvests on the Elliott from 40 million to 30 million board feet each year would be equivalent to removing 10,000 cars from U.S. highways
Learn More...
 
A breaking-news session added this past week to the TAPPI BioPro Expo technical program focuses on latest analyses showing that ethanol-based biofuels cannot be the functional pathway of choice to meet U.S. Renewable Fuels Mandates in coming years
Learn More...
 
The worst of the recession is over for Minnesota's manufacturers according to the State of Manufacturing, a major survey research project sponsored by Enterprise Minnesota and partners
Learn More...
 
Market Roundup
AbitibiBowater's decision to "pull the plug" on its attempted conversion at Coosa Pines, Ala., USA, is good news for containerboard and kraft paper producers
Learn More...
 
Pulp & Paper
Asia Pulp & Paper Group (APP), Jakarta, Indonesian, reported this week that it is expanding internal auditing and certification mandates for its pulpwood suppliers as part of its commitment to achieve 100% Sustainable Forest Management (SFM) certification by the end of 2020
Learn More...
 
Cascades Inc., Kingsey Falls, Que., Canada, a producer of packaging and tissue paper products, this week reported that it has reached an agreement with OpenGate Capital, a private equity firm, for the sale of its Norampac Avot-Vallée mill in France
Learn More...
 
Dresden Papier, Germany, last summer completed the installation of a new vacuum system for the wire and press sections of its PM 4 in Heidenau, and optimized the heat recovery system to improve environmental performance and increase energy savings
Learn More...
 
Mercer International, New York, N.Y., USA, reports that it has completed a preliminary feasibility analysis for its Celgar and Stendal mills (Canada) with respect to enhancing operations and margins
Learn More...
 
Sun Paper Holding Lao Co., China, has ordered form Andritz, Graz, Austria, major equipment for a new kraft pulp mill with a production capacity of 300,000 metric tpy in Muang Phin, Laos. Startup is scheduled for late 2012
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 awarded supply installation and commissioning services to Metso, Finland
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Boise Inc., Boise, Idaho, USA, and Tharco Packaging Inc., San Lorenzo, Calif., this week announced that their respective boards of directors have approved an agreement under which Tharco will be acquired from an investor group led by Tricor Pacific Capital Inc
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Graphic Packaging International (GPI), Marietta, Ga., USA, this week announced plans to close its Jacksonville, Ark., multiwall bag facility. The company will transition business and equipment from Jacksonville to other U.S. operating locations
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New Products
Dyadic International Inc., Jupiter, Fla., USA, has launched FibreZyme G200, a next generation, high performance enzyme designed to improve paper quality and improve the economics of various pulp and paper manufacturing processes
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Eastman Kodak Co., Las Vegas, Nev., USA, has introduced a family of Kodak Professional Endura Electrophotographic Printing (EP) Papers
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Published Pricing
Sonoco-Alcore S.a.r.l., Brussels, Belgium, will increase prices for all uncoated recycled paperboard grades in all European markets by EUR 50 (£45) per metric ton on all shipments, effective February 28
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Energy
Metsä-Botnia's Joutseno mill, Finland, has selected Andritz, Graz, Austria, to supply a 48 MW gasification plant that will generate green fuel gas from local biomass, thus making the mill independent of fossil fuels
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People
Plourde commenced his new functions February 23
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Boynton was elected president and COO in September 2010
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Newell joined Wausau Paper in 2007 as VP-business development and was promoted to the position of SVP-specialty products as of January 2009
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TAPPI News
Will address sustainability issues at PaperCon's Coating & Graphic Arts Program Keynote Address on May 1
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TAPPI announces the Call For Papers for the 2011 NETInc Technical Program.
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The U.S. doesn't have the infrastructure to consume more fuel ethanol. Significant increases in cellulosic and next-generation "drop-in" biofuels may be the only route forward.
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TAPPI's Management Division, PIMA, announces a full program for this May event.
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TAPPI announces the line-up of keynote presentations for the 2011 TAPPI International Conference on Nanotechnology for Renewable Materials, June 6-8, 2011.
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The National Center for Pulp and Paper Technology Training announced that Northeast Wisconsin Technical College (NWTC), Green Bay, Wis., joined The National Network for Pulp and Paper Technology Training (NPT2).
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TAPPI has joined forces with Reed Exhibitions to develop the technical program for Reed's flagship converting show - SinoCorrugated 2011. These two organizations will co-host a one-day TAPPI Symposium on "Trends, Technology, and Management Issues in Box Plants Worldwide" on April 7, 2011.
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You are invited to participate in a special program for Pulp and Paper Managers from USA and Canada, organized by the Swedish Pulp & Paper Technology Group, the Embassy of Sweden and the Swedish Trade Council.
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PPMA, the human resources association for the paper industry, has organized an exceptional the program for its Annual Meeting and Conference, April 7-8 in downtown Milwaukee.
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"True leadership must be for the betterment of the follower..."

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Xerium Technologies, Inc.

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Weekly Spotlight
Each day throughout the month of April, Memphis Botanic Garden (Memphis, Tenn., USA) in partnership with Memphis-based International Paper (IP) will host a month-long celebration of Earth Day. The celebration includes special events designed to improve familiarity with ecology and environmentally-friendly practices that can be carried over into everyday living.

Throughout April, visitors can take a Conservation Hike, which includes a series of stations around the Garden with information on conservation in the Mid-South. At each stop, visitors will be challenged to think of specific conservation steps they can take to make a difference.

Mondays will feature an After School Green Hour in My Big Backyard. Research has shown that children spending at least an hour each day in an outdoor environment are healthier and perform better in academic and other areas, IP notes. Thursdays will include the Going Green Lunch Scene, a series of informal talks by experts focusing on a different green topic each week.

Other highlights will include an Aquatics Talk by Dr. Hyun Jung Cho, Delicious and Nutritious Vegetables: Disease-fighting Power of Produce by Dr. Dean A. Kopsell, Environmental Playhouse learning activities at the Garden's Spring Plant Sale, Backyard Picnic and concert, and a Kids-Only Yard Sale, which will give children a chance to recycle their old toys by selling to shoppers who will give them new homes.

"At International Paper, we are proud of our legacy of sustainability and environmental stewardship," said IP Foundation executive director Kim Wirth. "Partnering with the Memphis Botanic Garden to celebrate Earth Day is another extension of our commitment to the communities where we live and work."

A full schedule of events is available online.

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Ecotrust, Portland, Ore., USA, this week reported results of a carbon analysis for Oregon's Elliott State Forest. The study evaluated potential carbon storage under a range of forest management scenarios, and found that the carbon storage benefits of reducing timber harvests on the Elliott from 40 million to 30 million board feet each year would be equivalent to removing 10,000 cars from U.S. highways.

"Ecotrust's analysis demonstrates one of the many important public benefits provided by the state's forests," said Nancy Hirsch, chief of the Oregon Department of Forestry's State Forests Division.

Paul Henson, state supervisor for the Oregon Office of the U.S. Fish and Wildlife Service, agreed. "Climate change could have profound impacts on everything from owl habitat to seasonal water flows. Studies like this help us better understand the important role that Pacific Northwest forests could play in mitigating for those disruptions."

Ecotrust modeled forest growth, timber yield, and carbon storage for three proposed management plans under consideration by state and regulatory agencies. Each of the plans would meet the legal requirements of both the Oregon Forest Practices Act and the Endangered Species Act while allowing different timber harvest levels of 30, 35, or 40 million board feet (such timber harvest levels have been reached in four years since 1996).

The analysis of carbon storage potential was initiated by the Oregon Office of the U.S. Fish and Wildlife Service. The Oregon Departments of Forestry, and State Lands collaborated with Ecotrust on the study. It is the first of its kind to compare the carbon benefits of management options on state-managed lands. The Oregon Global Warming Commission has recommended a full carbon inventory of the State's forestlands.

In addition to the proposed management plans, Ecotrust evaluated alternative scenarios that included a maximum carbon storage scenario, in which no timber was harvested on the Elliott, and a minimum carbon storage scenario, in which all Elliott lands were assumed to be managed primarily for timber production. Results indicate that if no harvests occurred on the Elliott, the total amount of its carbon storage by 2050 would be equivalent to nearly 70% of Oregon's total annual greenhouse gas emissions for 2007, the most recent year for which data are available.

The Department of Forestry manages the Elliott under contract with the Department of State Lands. The forest consists primarily of forestland granted to Oregon at statehood, with a mandate to provide revenue for public schools.

The full report, "Carbon Analysis of Proposed Forest Management Regimes on the Elliott State Forest," is available on the Ecotrust website

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A breaking-news session added this past week to the TAPPI BioPro Expo technical program  focuses on latest analyses showing that ethanol-based biofuels cannot be the functional pathway of choice to meet U.S. Renewable Fuels Mandates in coming years. Prompted by a new Purdue University study showing that the U.S. simply doesn't have the infrastructure to meet the federal mandate for renewable fuel use with ethanol, the new session explores alternative pathways including cellulosic and next-generation biofuels,

A speaker at this new session, titled "At the Blending Wall: The U.S. Ethanol Quandary," Prof. Frank J. Dooley at Purdue notes that the new study uses DOE and EPA data to determine that the U.S. is at the "blending wall" or the saturation point for ethanol use. Without new technology or a significant increase in infrastructure, he predicts that the country will not be able to consume more ethanol than is being currently produced.

"We can't get there with ethanol," the study's authors insist, pointing out that there just aren't enough flex-fuel vehicles that use an 85% ethanol blend, or E85 stations to distribute more biofuels. According to EPA estimates, they explain, flex-fuel vehicles make up 7.3 million of the 240 million vehicles on the nation's roads. Of those, about 3 million of flex-fuel vehicle owners aren't even aware they can use E85 fuel. There are only about 2,000 E85 fuel pumps in the U.S., and it took more than 20 years to install them.

"Even if you could produce a whole bunch of E85, there is no way to distribute it," Prof. Dooley and the other study authors explain. "We would need to install about 2,000 pumps per year through 2022 to do it. You're not going to go from 100 per year to 2,000 per year overnight. It's just not going to happen."

And even if the fuel could be distributed, E85 would have to be substantially cheaper than gasoline to entice consumers to use it because E85 gets lower mileage, the authors say. If gasoline is, say, $3 per gal, E85 would have to be $2.34 per gallon to break even on mileage.

The EPA just recently increased the maximum amount of ethanol that can be blended with gasoline for regular vehicles from 10% to 15%. But Dooley and the other authors say that even with rapid, total implementation in all states, the blending wall would be reached again in about four years.

Dooley says that advances in the production of thermochemical biofuels will be necessary to meet the Renewable Fuel Standard. He said those fuels would be similar enough to gasoline to allow unlimited blending and would increase the amount of biofuel that could be used.

"Producing the hydrocarbons directly doesn't have the infrastructure problems of ethanol, and there is no blend wall because you're producing gasoline or other drop-in fuels," he notes. "If that comes on and works, then we get there. There is significant potential to produce drop-in hydrocarbons from cellulosic feedstocks."

The new Session 17 is set for Tuesday morning, March 15, at 9:00 a.m. – 10:30 a.m. Joining Prof. Dooley and other speakers on alternative pathways for fulfilling the RFS mandate, Prof. David Bransby at Auburn University will provide "A Review of Cellulosic Hydrocarbon, Drop-in Replacement, and Infrastructure Compatible Fuel Technologies."

More information on the BioPro Expo program is available online, as is information on the co-located International Bioenergy and Bioproducts Conference (IBBC).

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The worst of the recession is over for Minnesota's manufacturers according to the State of Manufacturing, a major survey research project sponsored by Enterprise Minnesota and partners. Less than one in ten manufacturing executives (9%) anticipates a continued recession in 2011, while 40% foresee economic expansion. Compared with the first State of Manufacturing survey two years ago, this represents a 47% decline in executives predicting recession and a 32% jump in those who project growth.

Fifty-one percent of executives expect their firm's annual gross revenues to increase in 2011, up from 44% in 2010, and up from just 23% two years ago. Thirty-nine percent expect their firm's profitability to increase, up from just 17% two years ago.

The survey was conducted via phone interviews with 400 manufacturing executives, representing a geographically proportional cross-section of Minnesota, over two weeks in January. The poll has an error rate of +/- 4%. The research was complemented by 17 focus groups conducted throughout Minnesota.

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Market Roundup
Total January 2011 U.S. kraft paper shipments were 129,500 tons, a decrease of 3.0% compared with January 2010, but up 2.1% compared with December 2010, according to the AF&PA (Washington, D.C., USA) January 2011 Kraft Paper Sector Report released this week. Total inventory was 78,200 tons.

Additional key findings from the report include:

  • Total unbleached kraft shipments declined over the same month last year
  • Total bleached kraft shipments were up over January 2010.
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Total January 2011 U.S. boxboard production increased by 8.3% compared with January 2010, and increased 5.5% from last month, according to the AF&PA January 2011 U.S. Paperboard Report released yesterday. Additional key findings in this report include: ·
  • Unbleached kraft folding production is flat compared with January 2010 ·
  • Solid bleached folding was up over the same month last year ·
  • Recycled folding production increased over last month ·
  • Inventory of solid bleached kraft paperboard increased over December 2010.
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Total U.S. printing and writing (P&W) paper shipments decreased 2% in January 2011 compared with January 2010, according to the AF&PA January 2011 Printing-Writing Paper Report released yesterday. Two of the four major P&W paper grades posted increases compared with last January. U.S. purchases (shipments + imports – exports) of P&W papers also decreased, down 4% in January. Total P&W paper inventory levels increased 4% compared with December 2010.

Some additional key findings include:

  • Uncoated free sheet (UFS) inventory increased vs last month for the fourth consecutive month
  • Coated free sheet (CFS) shipments increased year-over-year for the 15th consecutive month
  • Coated mechanical (CM) shipments increased year-over-year for the first time in four months
  • Uncoated mechanical (UM) inventory increased vs last month, in the double digits.
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Softwood prices are set to rise $30/metric ton in key regions in March, Mark Wilde, senior analyst with Deutsche Bank, reported this week. Key drivers are strong Chinese demand post-Chinese New Year, higher North American spot prices (+$20/metric ton week/week, and +$50/metric ton since January), and low inventory levels. If successful, this will be the first increase since June 2010 in North America and will take NBSK list price to $990/metric ton.

In China, the $30/metric ton price increase will take the list price to $890 - $900/metric ton. In Europe, producers have announced $980/metric ton for March, +$30/metric ton. Globally, hardwood prices continue to lag softwood.

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AbitibiBowater's decision to "pull the plug" on its attempted conversion at Coosa Pines, Ala., USA, is good news for containerboard and kraft paper producers, according to Wilde. The fact that this high-profile conversion, with its existing advantages, doesn't "pencil-out" is apt to ease concerns about incremental supply from other conversions.

Overall, containerboard markets are strengthening, Wilde points out. December box shipments were better than expected and the recent ISM figures suggest an impending uptick in box demand. Meanwhile, export prices appear to be stabilizing. Brokers are reporting pick-up in inquiries and some producers have reported a growth in backlogs. "At the moment, we'd characterize the domestic market as balanced."

However, Wilde adds, if operating rates remain in the low 90s through the winter lull and producers avoid inventory building, prospects of a successful price hike in Spring will increase. Most European producers announced a EUR 60/metric ton price increase on recycled containerboard, effective February 1, as well as hike on white-top liner.

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Strong demand in developing countries for packaging cement for construction/infrastructure projects is tightening the global extensible sack kraft market, Wilde reports. Since bottoming out in October 2009, extensible sack kraft prices have risen $155/ton, he notes, adding that "prices are rising elsewhere." The turmoil in Egypt is not expected to have a major impact. The Coosa Pines closure news will help sentiment in this sector, Wilde says.

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Export OCC (old corrugated containers) to China rose ˜$5/ton this week, Wilde reports, mostly due to stronger Chinese demand following end of Chinese New Year celebrations. In February, domestic OCC prices fell for the second month in a row, down $8/ton to $156/ton. "Opinion is mixed about OCC pricing over the next few months," Wilde says.

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Naylor, LLC
Pulp & Paper
Asia Pulp & Paper Group (APP), Jakarta, Indonesian, reported this week that it is expanding internal auditing and certification mandates for its pulpwood suppliers as part of its commitment to achieve 100% Sustainable Forest Management (SFM) certification by the end of 2020. APP has publicly stated three critical targets that are the foundation of its sustainable forest management program in Indonesia. Those include:
  1. Source 100% of its pulpwood supply from sustainable plantation stock by the end of 2015
  2. Achieve the government of Indonesia's SFM certification for APP's pulpwood suppliers by the end of 2015
  3. Have all exclusive pulpwood suppliers achieve the comprehensive and voluntary-based LEI (Indonesia Ecolabeling Institute) SFM certification standard by the end of 2020.

"We believe these goals are essential to APP's commitment to support sustainable forest management programs in Indonesia, China, and around the world. They provide a foundation that will assure stakeholders that APP is operating in full legal compliance and continuing to strive to be a global leader in responsible paper production," said Aida Greenbury, managing director of APP Group. "The path to achieving those goals demands rigorous independent auditing of all APP operations as well as our pulpwood suppliers."

By the end of 2015, the company will require its independent pulpwood suppliers to be certified under the Indonesian government's Sustainable Production Forest Management (Pengelolaan Hutan Produksi Lestari/PHPL) standard. To date, more than 1.3 million hectares, or about 52% of the area managed by APP's pulpwood suppliers, have been certified.

In that same time frame, all APP mills will adopt the Government of Indonesia's new chain of custody (CoC) certification program, which establishes strict new wood legality and verification systems (Sistem Verifikasi Legalitas Kayu/SVLK). The company began to roll out the standard in 2009, when APP piloted SVLK CoC certification with one of its mills and associated pulpwood suppliers.

In parallel with its commitment to achieve 100% pulpwood supply by the end of 2015, APP will require its suppliers to be evaluated against Timber Legality & Traceability Verification (TLTV) requirements. APP has adopted this additional assessment as a stepping stone to achieve full certification for its pulpwood suppliers.

Beyond Indonesian regulations and standards, APP says it will continue its support of and auditing toward meeting numerous other forest certification standards.

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Cascades Inc., Kingsey Falls, Que., Canada, a producer of packaging and tissue paper products, this week reported that it has reached an agreement with OpenGate Capital, a private equity firm, for the sale of its Norampac Avot-Vallée mill in France. The transaction should be completed on March 1.

Located in the North of France, Norampac Avot-Vallée specializes in the manufacture of linerboard (white testliner) made from 100% recycled fibers, produces more than 145,000 metric tpy, and has approximately 160 employees. Since 1987, Cascades has supported its French subsidiary with strategic investments that have enabled Norampac Avot-Vallée to be the first French producer in terms of white testliner volume and to work with the largest European groups.

"Since Norampac's priority is to consolidate its leader position in North America, Cascades came to the conclusion that it would be more strategic for the group to sell the Avot-Vallée mill to a company that has the ability to ensure its development and continuity," said Marc-André Dépin, president and CEO of Norampac, a division of Cascades Canada Inc.

Alain Lemaire, Cascades' president and CEO, added that "this transaction is part of our strategy to simplify our portfolio of assets, reduce our debt, and concentrate on developing and improving the competitiveness of our key operations in packaging, tissue papers, and recovery. Therefore, I wish to thank all of the employees for their involvement and efforts over the past 20 years."

Founded in 1964, Cascades employs nearly 12,500 employees who work in more than 100 units located in North America and Europe.

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Dresden Papier, Germany, last summer completed the installation of a new vacuum system for the wire and press sections of its PM 4 in Heidenau, and optimized the heat recovery system to improve environmental performance and increase energy savings. Germany-based Voith Paper was commissioned to handle this project. With the exception of construction work, Voith was responsible for the complete scope of supply and services.

Dresden Papier based its investment decision on an extensive pre-engineering of the existing vacuum system and a balancing of the entire PM and building ventilation technology. The paper mill wanted to record and implement both the economy and the energy saving potential. The examination was performed by Voith.

As Voith explains, a vacuum blower system ensures high thermodynamic efficiency, allowing at the same time power input depending on the air requirements at the paper machine. The hot exhaust air produced can be used for hood supply-air heating through heat exchangers to reduce steam consumption there. Another important aspect in terms of environmental protection is the fact that this technology does not consume any fresh water as conventional systems do. Hence, operating costs are also decreased, and maintenance is optimized due to the reduced number of vacuum generators.

Currently, PM 4 in Heidenau is producing 45,000 metric tpy of uncoated and coated nonwoven wallpaper base and the mill is thus the world's largest producer in this product segment. Dresden Papier GmbH is a subsidiary of Canadian Fortress Paper, Ltd.

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JK Paper Ltd., Rayagada, Orissa, India, will install a new fiberline and recovery island for its pulp mill (design capacity: 635 b.d. metric tpd). Andritz, Graz, Austria, together with Enmas Andritz PVT Ltd, a joint venture of Andritz and Enmas Engineering, will supply the systems, which encompasses the latest technology in woodyard equipment, a complete continuous cooking line and fiberline with an ECF bleaching plant, recovery boiler and evaporation plant, as well as the white liquor plant (kiln, recausticizing, including dregs washing/dewatering). Startup is scheduled for October 2012.

This delivery will be the largest mill-wide scope of equipment from Andritz in India. JK Paper is India's largest manufacturer of branded and premium multi-purpose cut sized office paper, and one of the most reputed manufacturers of premium packaging board and coated paper.

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Mercer International, New York, N.Y., USA, reports that it has completed a preliminary feasibility analysis for its Celgar and Stendal mills (Canada) with respect to enhancing operations and margins. In addition to other enhancements, the preliminary analysis identified that, for a capital cost of approximately $30 million to $40 million per mill, they could have the capacity to produce NBSK pulp, as currently, and dissolving pulp (DP) when market conditions are favorable.

The enhancements would permit the mills to become "swing mills," capable of swinging production from NBSK pulp to DP to opportunistically maximize realizations. DP is a high grade specialty product that commands premium pricing relative to NBSK. It is used for, among other things, rayon, a renewable textile fiber that is a substitute for cotton, and other fossil fuel derived synthetic fibers.

  • Based on the preliminary feasibility analysis, the company's facilities would permit Celgar and Stendal to be first and second quartile cost producers of DP respectively. Due to size and other considerations, it was decided not to undertake a feasibility study for the Rosenthal mill.
  • While the company will always maintain its focus on being a leader in NBSK pulp, the enhancements would result in the Celgar and Stendal mills having an estimated annual DP production capacity of 400,000 and 500,000 metric tons, respectively.
  • To maintain the company's core NBSK business and commitment to customers, only some production would be adjusted to DP to realize enhanced margins. If production were shifted for half the year, the annual production capacities at Celgar and Stendal would be approximately 260,000 and 300,000 metric tons of NBSK and 200,000 and 260,000 metric tons of DP, respectively.
  • The project would take about 16 months to implement, with no expected impact to NBSK production with the exception of an approximate 3-week required shutdown for project tie-in at the end. Trial campaigns of DP production could begin in early 2013 if a decision to order equipment was made in the third quarter of 2011;

Initially the company would most likely implement the project at one mill. As part of a final technical and feasibility study, it is implementing a process to select which mill and timing. Factors affecting mill selection will include levels of government support and technical limitations. A potential technical limitation has been identified for Celgar due to the mill's use of a continuous digester, while no technical limitations have been identified at Stendal as it employs super batch digesters.

Jimmy S.H. Lee, president and chairman, noted that "dissolving pulp is experiencing a very robust market and while a pullback in pricing is expected, the long term outlook is quite promising. This opportunity is only possible because of the capabilities of our large modern mills. This project would not change our core commitment to NBSK pulp but will let us further realize upon our mills' strengths. We believe that we will be able to take further advantage of the excess energy produced from DP to increase our power generating capacity and enhance electricity revenues."

The company expects to complete a final technical and feasibility study and make a decision on proceeding by mid-year.

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Sun Paper Holding Lao Co., China, has ordered form Andritz, Graz, Austria, major equipment for a new kraft pulp mill with a production capacity of 300,000 metric tpy in Muang Phin, Laos. Startup is scheduled for late 2012.

The Andritz scope of supply includes equipment for chip and bark handling, a complete fiberline (continuous cooking, washing, oxygen delignification, screening, and bleaching), the pulp drying line (wet end, dryer, cutter/layboy, and baling line), and the white liquor plant including kiln and recausticizing equipment. The kiln will be equipped with LimeFlash technology.

Sun Paper Holding Lao is member of the Sun Paper Group, China's largest privately owned and managed paper business, and the largest producer of premium coated packaging board in China.

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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 awarded supply installation and commissioning services to Metso, Finland. The value of the order was not disclosed.

Metso received the main order for the containerboard line from Amcor in 2008 and an add-on order for this line was received from Amcor in 2010. The new order will cover the installation of the containerboard machine equipment for the line and supervision services related to commissioning, testing, and startup, as well as training services.

The Botany Paper Mill will generate high-quality recycled paper from waste collected throughout the Sydney area. It will produce paper-based products across a wider range of weights and create packaging that is lighter, more efficient, and more environmentally friendly, Metso notes.

Amcor Packaging (Australia) Pty Ltd is part of Amcor Limited, a global packaging manufacturer offering a broad range of plastic, fiber, metal, and glass packaging products, along with packaging-related services. It has annual sales of about EUR 9 billion and 35,000 employees worldwide, through more than 300 manufacturing sites it operates in 43 countries.

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Boise Inc., Boise, Idaho, USA, and Tharco Packaging Inc., San Lorenzo, Calif., this week announced that their respective boards of directors have approved an agreement under which Tharco will be acquired from an investor group led by Tricor Pacific Capital Inc. The $200 million all-cash transaction will result in Tharco becoming a wholly-owned subsidiary of Boise and is expected to close in early March.

Tharco offers an extensive range of corrugated products and services that complements and expands Boise's existing packaging business. For fiscal 2010, ended September 30, Tharco had revenue of $261 million and shipped 2.3 billion square feet of corrugated products.

"This step is consistent with our strategy to profitably grow our packaging business and create value for our shareholders and customers," said Alexander Toeldte, president and CEO of Boise. "Acquiring Tharco achieves several important goals: it expands our presence in packaging markets, which are growing long term, and is a good geographical fit, extending our reach from the Pacific Northwest to California, Colorado, Arizona, and Georgia. It is consistent with our goal to increase our containerboard integration with our downstream corrugated converting operations, increasing our integration to more than 85% from approximately 70% today. This reduces our exposure to export markets and enhances margins.

"When complete, we expect annualized synergies of approximately $8 million, achieved primarily through the increased integration," said Toeldte. "We anticipate these synergies will be fully realized in 18 months. The acquisition will be financed using cash on hand and existing revolver capacity, with no material change to our leverage profile. We expect the transaction to be accretive to our earnings in the first year."

Other benefits of the transaction include opportunities to profitably grow in adjacent packaging businesses, including stock boxes and multi-material engineered packaging solutions. "Tharco's established business and brands are well respected, profitable, and fit well with our existing businesses," Toeldte continued. "Tharco has an experienced management team, dedicated and engaged employees, and a proven track record."

Bo Fears, CEO of Tharco, pointed out that "Boise meets all of the criteria we would want in a parent company. We are pleased to join a successful, forward-thinking, and growing public company that is committed to the packaging industry."

Tharco employs approximately 900 people at 11 manufacturing and distribution facilities across the country.

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Graphic Packaging International (GPI), Marietta, Ga., USA, this week announced plans to close its Jacksonville, Ark., multiwall bag facility. The company will transition business and equipment from Jacksonville to other U.S. operating locations.

"As always, GPI deploys business to our most cost effective plants," said David Scheible, president and CEO. "We continually evaluate all of our business operations to ensure we are serving our markets as efficiently as possible. Simply put, this is a difficult business decision."

The Jacksonville multiwall bag facility will continue to operate and support customers while its business is transitioned to other company facilities in the U.S. over the next several months. The company has notified its Jacksonville employees, and will provide appropriate assistance to those affected.

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New Products
Dyadic International Inc., Jupiter, Fla., USA, has launched FibreZyme G200, a next generation, high performance enzyme designed to improve paper quality and improve the economics of various pulp and paper manufacturing processes. Dyadic notes that FibreZyme G200 operates under wide pH and temperature ranges allowing for seamless integration into most pulp and paper manufacturing processes. Its specific attributes include:
  • Reduces fiber raw material costs and petroleum-derived chemical usages
  • Reduces pulp refining energy requirements
  • Increases paper machine production rates and efficiencies
  • Improves softness in tissue production
  • Enhances pulp drainage rates and reduces paper drying demand
  • Enhances and restores fiber strength and increases inter-fiber bonding through fibrillation.

More information is available online.

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Eastman Kodak Co., Las Vegas, Nev., USA, has introduced a family of Kodak Professional Endura Electrophotographic Printing (EP) Papers. These new papers utilize E-surface technology to create photo-grade media for EP presses, providing the look, feel, and surface of photographic paper. With these papers, customers can intermix media output from silver-halide printers and digital presses to expand the potential portfolio of photo offerings, as well as enhance productivity. Specific features of the Endura EP Paper include:
  • Optimized for:
    • EP-D Paper—for equipment that uses dry ink/toner-based EP technologies
    • EP-L Paper—for equipment that uses liquid ink/toner-based EP technologies
  • Premium thickness for comparable look and feel of professional photographic paper
  • Two-sided luster (E-Surface) for duplex printing
  • White/non-yellowing paper base.

Kodak will initially offer the new Endura EP Papers in the most popular size, 18 x 12 in (45.7 x 30.5 cm) double-sided sheets.

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Published Pricing
Billerud, Sweden, will raise prices for all of its kraft papers, including bleached and unbleached sack paper, MF kraft, and MG kraft, by EUR 80 per metric ton, effective April 1. The company notes that the increase reflects a high demand and positive outlook in kraft paper markets. The new prices will apply to all global markets, the company said.

Billerud operates three integrated pulp and paper mills in Sweden, at Gruvön, Karlsborg, and Skärblacka, and at its U.K. paper mill.

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Koehler Paper Group, Germany, has announced a 5% price increase for its thermal papers in Europe, effective April 1. The company attributes the increase to ongoing cost pressure on energy, chemicals, and other raw materials.

With a turnover of Euro 540 million and sales of 429,000 tons of paper, the Koehler Group is one of the few independent German companies in the paper industry.

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Sonoco-Alcore S.a.r.l., Brussels, Belgium, will increase prices for all uncoated recycled paperboard grades in all European markets by EUR 50 (£45) per metric ton on all shipments, effective February 28.

"We continue to operate in inflationary conditions," said Adam Wood, VP, Sonoco-Alcore Europe. "Recovered paper prices are still increasing, driven by global supply and demand, and this coupled with starch and other key materials is forcing us to pass increases through to our customers. We have still not fully recovered raw material rises in 2010, even with the cost reduction programs we had in place. We can no longer absorb the magnitude of these increases.

"Our tube and core business has also been negatively affected by these events, and we will again need to pass these coreboard increases through to our customers. Our customers recognize that we have tried to minimize this impact but such unprecedented conditions provide us with few alternatives," added Wood.

Sonoco-Alcore S.a.r.l., wholly owned by Sonoco, Hartsville, S.C., USA, operates 30 tube and core plants and six paper mills on the European continent and in the U.K.

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Energy
Metsä-Botnia's Joutseno mill, Finland, has selected Andritz, Graz, Austria, to supply a 48 MW gasification plant that will generate green fuel gas from local biomass, thus making the mill independent of fossil fuels. After completion, scheduled for September 2012, the mill will solely use renewable fuels as energy sources and fully replace all fossil fuels in the mill's lime kiln during normal operations. Andritz's scope of supply includes engineering, equipment, erection, startup, and optimization of the entire gasification process.

The gasification plant will employ Andritz's circulating fluidized bed (CFB) technology. Upon startup of the plant, energy generation at the Joutseno mill will become carbon dioxide neutral during its standard production. The fuel handling system includes an innovative dryer that utilizes the mill's excess heat for bark drying. The gas produced is finally burned in the lime kiln with a burner developed by Andritz.

Known as Botnia, Metsä-Botnia was founded in 1973 and is a global supplier of market pulp. The company operates four mills in Finland: Joutseno, Kemi, Rauma, and Äänekoski. The Joutseno mill specializes in pulp for wood-fiber printing papers and for high-quality coated printing and specialty papers. It has a production capacity is 650,000 metric tpy and has 160 employees. Nearly half of the energy content of wood used by the mill is eventually extracted as biofuel.

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People
Cascades Inc., Kingsey Falls, Que., Canada, this week announced the appointment of Mario Plourde as COO. Plourde commenced his new functions February 23.

This appointment is part of a transition process within Cascades. "Mario Plourde joined Cascades after graduation and over the years he has risen through the ranks to become a key member of our management team. His appointment today is a clear expression of not only our confidence in Mario's leadership but also our desire to ensure the continuity of our corporate culture. Moreover, his enhanced role in management will enable my brothers and me to devote more time to the strategic vision of the company for the future", declared Alain Lemaire, Cascades' president and CEO.

In carrying out his duties, Plourde will work in close collaboration with the group presidents in the recovery, packaging, and tissue paper sectors, in the pursuit of operational and business objectives. He will retain responsibility for managing the Specialty Products Group until his successor has been chosen.

Ploude joined Cascades in 1985 as a controller. He was then promoted to the position of plant manager, then GM and VP and COO of the Specialty Products Group. In 2000, Cascades named him president and COO of this group, which consists of more than 40 units, 2,600 employees, and which generates annually more than 900 million dollars in business.

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Rayonier, Jacksonville, Fla., USA, announced this week that President and COO Paul G. Boynton has been elected to the company's board of directors, effective immediately. Boynton was elected president and COO in September 2010, previously serving as EVP, Forest Resources and Real Estate. He joined Rayonier in 1999 as director of Performance Fibers marketing and sales, and was later named VP, Performance Fibers marketing and sales, and SVP, Performance Fibers.

"Paul's expertise in all three of our core businesses will bring a unique perspective on strategy and execution to the board," said Lee M. Thomas, chairman and CEO. "His long-standing relationships with our customers and his 11 years of operational experience with Rayonier will also benefit the board."

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Sonoco, Hartsville, S.C., USA, has announced officer appointments in its Consumer Packaging segment. Rodger D. Fuller has been named VP, Global Rigid Paper and Plastics; R. Howard Coker has been named VP, Global Rigid Paper and Closures; Marcy Thompson has been elected an officer of the company and named VP, Rigid Paper and Closures—North America; and Robert L. Puechl has been named VP, Global Flexible Packaging.

Fuller has responsibility for the company's largest consumer packaging operations, including global composite cans, rigid plastics, and closure businesses. Prior to this appointment, he was VP, Global Rigid Paper and Closures. He joined Sonoco in 1985 and has held a number of senior leadership positions including VP, Rigid Paper and Plastics—North America; division VP, Consumer Products Division—Europe; and president, Sonoco Limited, Canada.

Coker has global responsibility for the company's composite can, and metal and peelable membrane ends and closures businesses. Prior to this promotion, he was VP, Rigid Paper and Closures—North America. He has held several leadership positions within the company, including division VP and GM, Sonoco Phoenix; director of sales and marketing, Rigid Paper and Plastics—North America; and GM, Asia/Pacific, Rigid Paper and Plastics.

Thompson will have responsibility for the company's composite can, and ends, and closures operations in the U.S., Canada, and Mexico. Prior to this appointment, she was division VP and GM of Sonoco Recycling Inc. Thompson joined Sonoco in 2006 and was previously division VP and GM, Industrial Products Division (IPD)—North America, and division VP of sales and marketing, IPD—North America.

Puechl has responsibility for Sonoco's flexible packaging operations, including eight converting plants in the U.S., Canada, and Malaysia, and the company's global brand management business. Prior to this appointment, he was VP, Global Rigid Plastics. Puechl began his career with Sonoco in 1986 and has served in a variety of manufacturing and management positions in the company's consumer plastics businesses, including serving as division VP and GM, Molded Plastics, and division VP of manufacturing, High Density Film Products.

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Wausau Paper, Mosinee, Wis., USA, has appointed Henry C. Newell to the position of EVP and COO, effective March 1. Newell joined Wausau Paper in 2007 as VP-business development and was promoted to the position of SVP-specialty products as of January 2009. He assumed the role of SVP-paper when the company consolidated its specialty products and printing and writing business segments in January 2010.

"Since joining Wausau Paper in September 2007 Hank has been a significant contributor to the success of the company, initially through the assessment and refinement of strategic initiatives within our business segments, and more recently through an effective consolidation of our paper businesses and the establishment of successful growth strategies for the new segment's core markets," said Thomas Howatt, president and CEO. "His extensive industry experience and strengths in strategy development, coupled with his knowledge of specialty paper markets, make him ideally suited for this new role."

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TAPPI News

Jack McAneny, Procter & Gamble's Associate Director Global Sustainability, will present PaperCon's Coating & Graphic Arts Program Keynote on Sunday, May 1, in Covington, Ky., (Greater Cincinnati) and will focus his address on Sustainability.

In his 15 years at Procter & Gamble, McAneny has had a variety of assignments in the Health, Safety & Environment and Technical External Relations functions. In his current role, he helps to coordinate the implementation of Procter & Gamble's Sustainability Strategy and leads several cross-functional and cross-business unit teams that focus on key sustainability issues.

Learn more about PaperCon.

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TAPPI announces the Call For Papers for the 2011 NETInc Technical Program. NETInc stands for the Innovative Nonwovens Conference and is organized by the Nonwovens Engineers and Technologists (NET) Division of TAPPI. NETInc is the perfect forum for a new constituency of industry and academic researchers, the professionals from the nonwovens and affiliated industries and the academic community to enable connections and synergies that support capability development and innovation for industry growth. The conference will be held in Atlanta, Ga., USA, at the Hyatt Regency September 12-15, 2011.

Benefits of speaking Include:

• Widespread recognition from industry peers
• Opportunities to share your knowledge and ideas
• Valuable new information and solutions from other presenters
• Profitable networking opportunities with top industry professionals to grow your business or enhance your professional career

Authors interested in presenting a paper on these or related topics should submit an abstract electronically at speakermanagement.tappi.org. Abstract submissions should be 1-2 paragraphs in length and are due on or before March 18, 2011; authors will be notified in mid April regarding acceptance. Extended abstracts will be due in early July.

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The U.S. Renewable Fuels Mandate ... "Ethanol Will Not Get Us There"

The U.S. doesn't have the infrastructure to consume more fuel ethanol. Significant increases in cellulosic and next-generation "drop-in" biofuels may be the only route forward.

In a special session at BioPro Expo on Tuesday, March 15, in Atlanta, Ga., 9 to 10 a.m., representatives from Purdue University and Auburn University, together with other biofuels experts, will explore why and how this infrastructure dilemma has happened, and what we can and must do to get over the blending wall and make real progress toward our national renewable fuels goals.

Surprising new studies done by research teams at Purdue University and other institutions clearly show that the U.S. is now at the "blending wall" or saturation point for ethanol use. Even with the national ethanol blending percentage in gasoline increased to 15 percent, together with projections for increased flex-fuel vehicle production and E85 fuel pumps, the country will not be able to consume more ethanol than is being currently produced, based on analyses using the latest DOE and EPA data.

One of the more promising technologies according to session speakers, thermochemical biofuels could quickly become the favored approach to meeting the Renewable Fuel Standard. These fuels are similar enough to gasoline to allow unlimited blending and would increase the amount of biofuel that could be used. These "drop-in" biofuels could be directly absorbed into the existing transportation fuels infrastructure, directly replacing petroleum crude oil and/or refined petroleum fuels and products.

"Producing the hydrocarbons directly doesn't have the infrastructure problems of ethanol, and there is no blend wall because you're producing gasoline," Professor Wally Tyner of Purdue University says. "If that comes on and works, then we get there. There is significant potential to produce drop-in hydrocarbons from cellulosic feedstocks."

The "ethanol quandary" will be further explored during the Business Leaders Forum, being conducted together with BioPro Expo. At this unique forum, biofuels technology developers, producers, consultants and leading bioenergy equipment and systems suppliers will explore hurdles, opportunities, progress and routes forward in the global bioenergy arena.

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TAPPI's PIMA Division has unveiled another tremendous program for PaperCon 2011, May 1-4, in Covington, Ky., USA (Greater Cincinnati). This year's speakers include superintendents, mill managers and senior executives who will challenge attendees to rethink paper by focusing on lean manufacturing, operational excellence and environmental performance.

Highlights include Keynote Speaker John Williams, Domtar CEO, an Executive Panel, State of the Industry address, a session on Lean and Green Energy and Fiber, a Superintendents' Roundtable, and PaperCon's Young Professionals Program.

For more information, go to www.papercon.org

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TAPPI announces the line-up of keynote presentations for the 2011 TAPPI International Conference on Nanotechnology for Renewable Materials, June 6-8, 2011, at the Sheraton Crystal City in Washington, D.C., USA (Arlington Va.).

Attendees will hear from industry leaders including:

Mike Jackson, President and Chief Executive Officer, Verso Paper Corp. -- Importance of Nanotechnology/Nanomaterials to the Forest Products Industry of the 21st Century

Vicki Stone, Director of the Nano Safety Research Group, Heriot-Watt University; Director of Toxicology for SAFENANO; and Editor-in-chief of the Journal Nanotoxicology -- Assessing the Potential Toxicity of a Variety of Nanomaterials

Mike Roco, Senior Advisor for Nanotechnology at the National Science Foundation (NSF) -- NSF Programs and the Future of Nanotechnology Research and Development

Dr. Leo Christodoulou, Director, Defense Sciences Office, Defense Advanced Research Projects Agency (DARPA)

Tom Lindström, Director of the Biofibre Materials Research Centre (BiMaC Innovation), Royal Institute of Technology (KTH); Senior Research Scientist, Innventia AB -- NanoCellulose Research and Developments at Innventia

Learn more about this event including details about the networking dinner cruise and registration information at the website.

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The National Center for Pulp and Paper Technology Training announced that Northeast Wisconsin Technical College (NWTC), Green Bay, Wis., joined The National Network for Pulp and Paper Technology Training (NPT2). The Network is a national partnership of community colleges and industry representatives that arms students with the training and experience necessary to meet the increasing demand for advanced technology workers in the pulp and paper industry. The Network is part of the Technologically Advanced Workforce (TAW) platform supported by TAPPI and the American Forest and Paper Association's (AF&PA) special project group, Agenda 2020.

"We are very excited to add NWTC to our network of community colleges offering Pulp and Paper technology training across the country," said T.J. Murphy, executive director of The National Center for Pulp and Paper Technology Training. "NWTC has state-of-the-art facilities, award-winning instructors, and one of the premier Engineering and Mechanical programs in the country."

"Northeast Wisconsin Technical College's partnership with NPT2 will strengthen our existing technical programs and prepare students for the high-skill, high-pay jobs of pulp and paper industry in Wisconsin," said Pam Mazur, associate dean, Trades and Engineering Technologies at NWTC. "This partnership will enrich NWTC's mission of providing education, training and life-long learning opportunities for individuals and businesses leading to the development of a skilled workforce."

Joining NPT2 makes NWTC a conduit for pulp and paper training in Wisconsin. It also gives NWTC access to curriculum materials related to the pulp and paper industry, which should be especially valuable in closely related degree programs like Electro-Mechanical Technology, Automation Engineering Technology and the new Applied Engineering Technology.

Specialized facilities at NWTC make it ideal for delivering the technical training that the network provides to two-year colleges. The Manufacturing Technology Center features PLC simulators, both instructor-led and self-paced learning areas, and integrated manufacturing equipment to provide students with hands-on experience in the highly technical, networked systems typical of a modern manufacturing environment.

Founded in 1912, Northeast Wisconsin Technical College is recognized as one of the nation's fastest growing two-year colleges, serving about 42,000 students and employed adults annually. With campuses in Green Bay, Marinette, and Sturgeon Bay, and five regional learning centers located throughout Northeast Wisconsin, NWTC offers nearly 200 degrees and certificates, and transfer agreements with 28 colleges and universities.

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TAPPI has joined forces with Reed Exhibitions to develop the technical program for Reed's flagship converting show - SinoCorrugated 2011. These two organizations will co-host a one-day TAPPI Symposium on "Trends, Technology, and Management Issues in Box Plants Worldwide" on April 7, 2011, at the Shanghai New International Expo Centre.

This international symposium is expected to attract at least 200 delegates, about half of whom are expected to be from beyond the borders of Mainland China. The program includes:

  • Global Outlook for Containerboard Packaging, Dr. Graham Moore, Strategic Consultant, PIRA International, UK
  • Effective Box Plant Management – A Manufacturing Focus, Tom Pearce, President, Pearce Corrugated Consulting
  • New Corrugated Products and Global Applications, Pankaj Shah, Director, SUPAK International, Pvt. Ltd.
  • New Technology Showcase, Moderated by Dan Brunton, NV Publications
  • and a panel discussion of International Corrugated Issues.

"This will be a unique opportunity for visitors to SinoCorrugated from both China and abroad to explore and understand issues directly concerning modern box plants in developing countries and ways to improve them," said TAPPI's Corrugated Division Manager Kristi Ledbetter.

"SinoCorrugated is a leading exhibition for the corrugated industry, and we welcome this collaboration with TAPPI to bridge and forge business opportunities globally,"said Josephine Lee, vice president of Reed Exhibitions East China.

SinoCorrugated 2011 will take place from April 6-9. The Symposium, which will run concurrently with the exhibition at the same venue, marks an important collaboration between Reed and TAPPI.

SinoCorrugated is one of the world's largest business platforms for the global corrugated manufacturing industry. The exhibition not only highlights the latest global corrugating equipment and consumables on the market, it also helps box manufacturers make informed purchasing decisions by alerting them to new products, the latest technologies and emerging market trends.

For inforamtion about TAPPI's technical program, visit the website.

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You are invited to participate in a special program for Pulp and Paper Managers from USA and Canada, organized by the Swedish Pulp & Paper Technology Group, the Embassy of Sweden and the Swedish Trade Council. The aim is to get an opportunity to exchange knowledge and experience on new technologies and environmental aspects of pulp and paper manufacturing today.

Event Title: North American Pulp and Paper Delegation to Sweden
Event Date: May 15-20, 2011
Event Location: In Conjunction with SPCI 2011 

Register

The program includes mill visits in Sweden, technical presentations, business discussions and a visit to SPCI 2011 conference and exhibition in Stockholm, May 15-20, 2011.

Each delegate pays his/her return airfare to Stockholm, Sweden, while the expenses for the program in Sweden (lodging, local transportation and most meals) are courtesy of the Swedish Pulp & Paper Technology Group. Participation is on a first come - first served basis, with a total upper limit of 20 persons.

The Swedish Pulp & Paper Technology Group is an association of member companies, supplying technology to the world pulp and paper industry, see www.pptgroup.se. SPCI is the world's leading conference and exhibition for the pulp and paper industry, see www.spcievent.com.

For questions please contact Mr. Magnus Andersson, Trade Commissioner for Sweden at +1 416 640 7475, or magnus.andersson@swedishtrade.se

We look forward to welcoming you in Sweden in May.

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PPMA, the human resources association for the paper industry, has organized an exceptional the program for its Annual Meeting and Conference, April 7-8 in downtown Milwaukee. With the theme "Wisdom to Plan, Strength to Prevail," it features speakers on:

• Challenges presented by the new health care law
• Dealing with an aging workforce
• Pending changes in labor law
• Preparing supervisors to properly handle employee relations
• Assuring business continuity when major disruptions occur at your company

Full program and registration information

PPMA (Pulp and Paper Manufacturers Association) is also celebrating its 75th anniversary this year. Based in Appleton, Wis., the association provides high quality human resource services to its member companies. For more information, visit www.ppmausa.com.

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"True leadership must be for the betterment of the followers, not the enrichment of the leaders." – Robert Townsend

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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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