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Travels with Larry Archive
Thursday, August 25, 2011
members edition
Eka Chemicals
Weekly Spotlight
An economic slowdown in Europe may force the region's paper industry toward extensive mill closures and consolidation in the coming year
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Sales of media tablets will reach 195 million units by 2015, causing paper use in magazines to fall by 20% and to half in 15 years time in North America
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The Newark Group, Cranford, N.J., USA, has named Frank Papa its new president and CEO, effective yesterday, August 24
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The TAPPI NETInc Innovative Nonwovens Conference being held September 13 - 15 at the Hyatt Regency, Atlanta, Ga., brings together the industry's top experts from its manufacturing and supplier sides as well as academia, R&D, and marketing to share breakthroughs in technology, emerging developments, and trends on the global horizon
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The Dissolving Pulp Forum at this year's TAPPI PEERS Conference, October 2 -5, at the Oregon Convention Center in Portland, Ore., USA, examines the still-evolving specialty cellulose "gold rush" from three basic perspectives
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Market Roundup
Total printing and writing (P&W) paper shipments decreased 6.8% in July compared with July 2010
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North American repro bond estimated prices rose $5 - $10/ton to $1,085 - $1,135/ton
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Prospects for an autumn containerboard hike attempt have faded
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August North American NBSK (northern bleached softwood kraft) list prices dropped $30/metric ton to $990/metric ton
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Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, this week announced a reconfiguration and capital spending program for its paper mill in Iroquois Falls, Ont., Canada
Learn More...
 
Botnia, Finland, reports that it will take scheduled maintenance downtime at its pulp mills in September and October, reducing its pulp production by 60,000 metric tons
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Kruger, Montreal, Que., Canada, reports that its Kruger Products L.P. subsidiary will continue to expand in the North American tissue market by installing a new tissue machine and supporting facilities at its Memphis, Tenn., USA, mill
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Manistique Papers Inc. (MPI), Manistique, Mich., USA, this past week announced that it was shutting down operations, filing for bankruptcy, and seeking a buyer
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NewPage Corp., Miamisburg, Ohio, USA, this week reported that, based on its assessment of current market and economic conditions, it has decided to take downtime on both paper machines at its Port Hawkesbury mill in Nova Scotia, Canada
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SCA Hygiene Products GmbH, Sweden, has ordered from Andritz, Austria, equipment for the expansion of its deinking plant serving PM 4 at its Ortmann mill in Austria
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Tembec, Montreal, Que., Canada, this week reported that it has reached a settlement with its Matane, Que., high-yield pulp mill employees who have now voted to end the strike
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Continuing the strategic expansion of its business in Turkey, Central National-Gottesman Inc., Purchase, N.Y., USA, this week announced that its European subsidiary, Central National-Gottesman Europe, has acquired an 80% ownership interest in Tradera S. A., a supplier of wood pulp and packaging materials to the Turkish and Greek markets
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Containerboard/Packaging
International Paper, Memphis, Tenn., USA, and Atlas Holdings, Greenwich, Conn., today agreed to combine their consumer packaging solutions businesses, pending regulatory approval and other customary closing conditions
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Stora Enso, Finland, has ordered a modern Metso IQ quality control system to be installed at its Heinola's Fluting Mill in Finland, near Helsinki
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China Shengda Packaging Group, Hangzhou, China, this week announced the appointment of Ken He as its new CFO
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The Newark Group, Cranford, N.J., USA, this week announced that it will close its Yorktowne Paperboard mill, located in York, PA, and its Newark Graphicboard-BCI plant, located in Fitchburg, Mass
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New Products
Stora Enso, Finland, reports that it has developed a specialty paper that will allow the industry to reduce the use of non-renewable material required for packaging produced in injection-molding processes
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Published Pricing
Arctic Paper, Poland, has announced a price increase on all UWF (uncoated woodfree) and CWF (coated woodfree) paper grades, both in folio sheets and reels
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Papierfabrik August Koehler AG, Oberkirch, Germany, has announced a 4% price increase for thermal paper in the U.S. and Canada
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Sustainability
TAPPI invites you to complete a short survey to rank the importance of sustainability topics
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TAPPI News
Registration discount ends August 29 and hotel and golf outing deadlines also approaching.
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Net proceeds from August 30, 2011 outing in Pequot Lakes, Minn., go to Lake States TAPPI/North Central PIMA's Scholarship Fund.
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TAPPI PEERS Conference to explore impact of Boiler MACT legislation from compliance and equipment perspectives.
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The 2012 APPITA Conference, to be held April 15-18, 2012 in Melbourne, Australia, issues call for papers and invitation to exhibit and sponsor.
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Seven sessions address range of issues including legislation, fiber quality, global trade patterns and the outlook for the paper and board industry.
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Learn the Value of Implementing Pumped System Assessment Program at Paper Mills and Other Industrial Plants
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September 14-17, 2011 conference covers innovative coating technology and applications, coated markets and competitive strategies.
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Orders received from Aug. 30th to Sept. 5th, 2011 will be processed the following week.
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Nalco Company
Proceq USA, Inc
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Naylor, LLC
Weekly Spotlight
An economic slowdown in Europe may force the region's paper industry toward extensive mill closures and consolidation in the coming year, according to a Reuters news report this week. While the industry has been grappling with weak demand and overcapacity for several years, analysts say rising costs and an accelerated decline in print media mean executives need to do more, and faster, than previously planned.

Paper company top executives are outlining their strategies at Reuters' Forest Forum in Helsinki, Finland, this week, with investors focusing on how they plan to cut costs, expand into new business areas, and cut more merger and acquisition deals.

UPM is expected to cut up to 1 million metric tons of paper capacity, or 2% of Europe's total of around 51 million metric tons. One analyst said any cut smaller than 1 million metric tons would be a disappointment. Sappi, the world's biggest fine paper maker, is about to close down a paper mill in Switzerland with an annual capacity of 500,000 metric tpy. Also, M-real is looking to focus on making board products for consumer packaging, and wants to either sell or close paper mills in France and Germany.

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Sales of media tablets will reach 195 million units by 2015, causing paper use in magazines to fall by 20% and to half in 15 years time in North America, according to a new study by RISI, Brussels, Belgium. Titled The Impact of Media Tablets on Publication Paper Markets, the study reveals that the market for media tablets—consisting of tablet computers (including Apple's iPad) and electronic readers (including Amazon's Kindle)—exploded in 2010.

By the end of the first year of availability, according to the study, more than 15 million tablet computers were in use. In North America alone, the size of the electronic reader market almost doubled, with more than 10 million in use. Early-on, signs of trouble for the publication paper market became clear:

  • In 2010, the top free application in Apple's iTunes store was iBooks
  • A Morgan Stanley inquiry discovered that 42% of U.S. tablet owners will cancel their print newspaper subscription
  • In May of this year, Amazon.com announced that ebook sales now exceed those of printed book sales in the U.S.

"Many graphic paper producers make their living selling paper to the publishing industry, those companies will be greatly affected by media tablets," explains John Maine, RISI's VP, World Graphic Paper and Study Team Leader. "Significant demand impacts could come as soon as 2012."

The study finds that by 2015, most publishing paper end uses in North America, such as magazine, newspaper, and book publishing, will fall 12% - 21% compared with their 2010 levels. This is on top of the massive collapse that occurred during the recent recession. Paper use in North American books, magazines, and newspapers could see another 40% - 50% fall over the next 15 years.

Market declines are also anticipated in Europe, especially for printed newspapers, but the percentage losses in the Western European market will be somewhat less than North America because of a reduced rate of media tablet adoption and fragmented media markets.

The study forecasts the decline by grade and end-use in the Publication Paper Market over the next 5, 10, and 15 years, analyzing the effects of e-readers and tablet computers on the North American and Western European markets. The forecast covers three scenarios: a base case, strong impact case (with quicker diffusion of tablets to the mass market), and a weak impact scenario.

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The Newark Group, Cranford, N.J., USA, has named Frank Papa its new president and CEO, effective yesterday, August 24. Papa replaces Philip B. Jones who has served in the position on an interim basis since the departure of Robert Mullen, who resigned as chairman, president, and CEO this past May.

Papa, with an extensive background in leading turnarounds and realigning company directions as well as consolidation/acquisition integrations, most recently was an operating officer with H.I.G Bayside capital for the past year. Prior to that, he was CEO of Signature Aluminum/Aluminum Shapes, the fourth largest aluminum extrusion company in North America, from 2007 - 2010. From 2001 -2007, he served as CEO of Specialized Vehicles Corp. (manufacturer of specialty vehicles), and was president and CEO of Aftermarket Technologies Inc. (automotive aftermarket products) from 2000 – 2001.

From 1998 – 2000, Papa was VP worldwide operations for The Stanley Works (manufacturer of hand tools), and was SVP operations at Sara Lee Corp. (hosiery manufacturer) from 1997 – 1998. For six years prior to that, he was SVP of operations for Kayser Roth Corp. (hosiery manufacturer) , and from 1987 -1991, he was VP quality assurance at Texron Inc (outdoor power equipment Manufacturer).

The Newark Group operates three business units. The Paperboard Unit recovers some 3 million tons of corrugated containers, newspaper, and mixed paper annually. A Converted Products unit makes laminated papers, graphic board, tubes, and solid board packaging. Its European facilities make up the International Unit, producing similar converted products.

In North America, the company has 11 recovered paper plants, 8 paperboard mills, and 22 converting plants. In Europe, it has three paperboard mills and six converting plants. Additionally, the company has investments in three paper recovery businesses and two tube and core manufacturers. The Newark Group went through a brief Chapter 11 bankruptcy in 2010.

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The TAPPI NETInc Innovative Nonwovens Conference being held September 13 - 15 at the Hyatt Regency, Atlanta, Ga., brings together the industry's top experts from its manufacturing and supplier sides as well as academia, R&D, and marketing to share breakthroughs in technology, emerging developments, and trends on the global horizon. This is the only event worldwide designed, developed, and conducted exclusively by movers and shakers in the fast-moving nonwovens arena. The program concept, session topics, and selection of speakers have been determined and hand-picked on a peer-reviewed basis by a special committee of worldwide nonwovens experts. NETInc is a one-of-a-kind, can't-miss exploration of the current and future direction of nonwovens and the complex dynamics shaping its unfolding destiny.

 

Organized into 13 sessions, NETInc begins with a special Filtration Tutorial (included in conference registration) on Tuesday afternoon, September 13, that examines methods and approaches to understanding and predicting air resistance and particle capture efficiency in fibrous webs. Following this tutorial, the event's opening keynote session includes presentation of the TAPPI NET Division's Innovation in Nonwovens Award to Dr. Anthony Atala from Wake Forest Baptist Medical Center for his work using nonwoven scaffolds for regenerative medicine. Dr. Atala will then discuss his work and provide his view of the future of nonwovens in the medical area.

The Markets Trends & Analysis session following the Innovation in Nonwovens award and keynote address takes an in-depth look into the raw materials world of nonwovens and developing trends in the global disposable diaper marketplace. Alex Lidback of HIS provides an up-to-the minute forecast and outlook for a broad range of raw materials, while Carlos Richer of Richer Investment reports on emerging diaper markets and how they compare with developed markets.

Session 8 on Wednesday afternoon, September 14, focuses on evolving nonwovens developments and applications in the medical sector. Idris Cerkez and Royall Broughton of Auburn University will present a new, inexpensive, and practical way of creating multi-functional (antimicrobial and durable press) cotton fabrics. Wan-Ju Li, John Barber, and Andrew Handorf of the University of Wisconsin-Madison then discuss a new study on "Braiding Electrospun Nanofibers for Tendon/Ligament Tissue Engineering." This study centers on the successful fabrication of a new tissue engineered scaffold that has favorable biological and mechanical properties for tendon/ligament tissue engineering. These braided nanofibrous scaffolds are able to enhance cell activities and matrix production in bioreactor culture. Rounding out the medical session, Elizabeth Loboa of North Carolina State University looks at scaffold based strategies for functional bone tissue engineering that involve the use of three-dimensional, biocompatible, biodegradable structures to provide an adequate template for ex vivo cell expansion and maturation, native tissue ingrowth, and restoration of the original tissue qualities with respect to bone's biochemical constituents, morphology, form, and function. Her presentation focuses specifically on the creation and use of nanofibrous and nanocomposite nonwoven scaffolds.

Session 11 on Thursday afternoon, September 15, provides an up-close examination of two new emerging technologies now on the nonwovens applications stage. Dr. Behnam Pourdeyhim of North Carolina State University" describes "A New Generation of Splittable Fibers fro Technical Applications." According to Dr. Pourdeyhim, a new core modified trilobal fiber has been developed that allows the formation of unique micro-denier structures with enhanced tear, breathability, durability, and hand. These structures, he notes, open new possibilities for nonwovens in durable applications. Mohit Ajitkumar Raina of the Institut Fur Textiltechnik reports on new applications of nonwovens in the automotive sector, including a di-electric measuring system for determining the distribution of fiber in a multi-component nonwoven structure. With this system, he says, it is possible to judge the localized homogeneity of a nonwoven fabric. Another automotive application is an algorithm for image processing. Processed images of nonwoven structures allow determination of the percentage of thick and thin areas and the unevenness coefficient. The rising quality demands of the automotive industry necessitate online measuring systems, Raina notes.

More information on these and other sessions and activities at NetInc 2011, including online registration, is available on the event website.

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The Dissolving Pulp Forum at this year's TAPPI PEERS Conference, October 2 -5, at the Oregon Convention Center in Portland, Ore., USA, examines the still-evolving specialty cellulose "gold rush" from three basic perspectives. Following a Sunday afternoon (October 2) opening presentation by global consultants, The dp Group, on latest process developments and technologies worldwide, suppliers including Andritz and Metso, will explore systems approaches being used in several major conversion and expansion projects underway around the world. Jacobs Engineering then examines options, directions, and considerations for companies evaluating dissolving pulp production.

On Monday morning (October 3), the Forum shifts focus with a special bridge session into the main PEERS program that looks at current market developments around the world and the developing outlook for dissolving pulp production and demand for the next two to three years. During this session, RISI and Poyry International will examine the dissolving pulp "path" into the foreseeable future and explore forces likely to control progress as well as setbacks along the way, including recent successes as well as failures of global cotton crops.

More information, including registration, is available online for the Dissolving Pulp Forum and 2011 PEERS, as well at the 2011 International Pulp Bleaching Conference being held at the Oregon Convention Center immediately following PEERS, on October 5-7.

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Market Roundup
Total printing and writing (P&W) paper shipments decreased 6.8% in July compared with July 2010, according to the AF&PA (Washington, D.C., USA) July 2011 Printing-Writing Paper Report issued this week. All four major P&W grades posted decreases compared with last July. U.S. purchases (shipments + imports – exports) of P&W papers decreased 4% in July. Total P&W paper inventory levels increased 6% compared with June 2011.

Some points of interest from the report include: ·

  • June exports of uncoated free sheet (UFS) increased year-over-year for the fourth consecutive month ·
  • Purchases of coated free sheet (CFS) decreased for the fourth time this year ·
  • Coated mechanical (CM) exports increased year-over-year for the first time in 2011
  • Uncoated mechanical (UM) shipments decreased year-over-year for the fourth consecutive month.
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North American repro bond estimated prices rose $5 - $10/ton to $1,085 - $1,135/ton, according to Mark Wilde, senior analyst with Deutsche Bank.. So far, he notes, producers have implemented $35 - $40/ton out of the $60/ton June 1 price hike. While demand remains weak, higher prices, he says, are aided by supply cuts, lower inventories, and favorable trade flows. In offset papers, estimated prices fell $10/ton to $935 - $955/ton. With the August decline, producers have been able to implement only $15 of a $40/ton April 1 price hike, Wilde points out.

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Prospects for an autumn containerboard hike attempt have faded, Wilde reports. Key issues, he explains, are economic jitters and overhang from the IP/Temple-Inland bid. While pressure on box prices appears to have eased, the market remains highly competitive, he says.

The kraft paper market remains tight, Wilde continues, adding that producers implemented the full $60/ton price hike on extensible sack kraft. August estimated prices rose to $1,150 - $1,170/ton, +10.5% y/y. Key drivers are strong export demand and limited supply, Wilde says.

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August North American NBSK (northern bleached softwood kraft) list prices dropped $30/metric ton to $990/metric ton, according to Wilde. Hardwood grades also declined $20 - $30/metric ton, he adds, noting that spot prices are weak and well below reported list prices. U.S. NBSK spot prices are down $5/metric ton to $760 - $800/metric ton. U.S. hardwood spot prices appear to be down even more: $15/metric ton to $610 - $640/metric ton.

Weak Chinese demand has been a focus in recent months, according to Wilde. "However," he says, "there are signs that softwood prices in China may have bottomed. Ilim recently announced a $40/metric ton price hike on BSK (bleached softwood kraft) in China for September. Arauco has announced flat bleached pine and unbleached kraft pulp prices for September," Wilde says.

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Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, this week announced a reconfiguration and capital spending program for its paper mill in Iroquois Falls, Ont., Canada. The investments will improve overall product quality and the mill's competitive position.

The company will be investing C$12 - C$17 million in the thermomechanical pulp (TMP) mill and in PM 8, the larger of the mill's two machines. The pulp mill investment will result in improved pulp quality with the installation of additional pulp cleaning. Paper machine upgrades will result in improved wet-end formation and newsprint quality. Also, chip receiving and chip handling capabilities will be increased to allow the Iroquois Falls facility to operate on 100% externally supplied chips, with the mill's current woodyard and woodroom being phased out.

"Today's announcement is a critical step in improving the competitive position of our Iroquois Falls operation for the foreseeable future," said Michel Maillé, VP, Pulp and Paper Operations. "While it has been a good site over the years, this investment is necessary to meet today's market and economic realities."

The increase in chip receiving and handling capability and the closure of the woodroom and wood yard will occur during the first half of 2012. The reconfiguration will result in a workforce reduction of approximately 60 positions, although the company hopes the mill demographics will significantly reduce the number of employees who will be laid off given retirement eligibility over the next couple of years. The pulp mill and paper machine investments will be made over the next 12 to 18 months.

"In addition to improving mill economics, the conversion to 100% externally supplied chips will also provide an outlet for chip residuals from sawmills on the Highway 11 corridor. This will be particularly important as markets for Ontario lumber recover," added Maillé.

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Botnia, Finland, reports that it will take scheduled maintenance downtime at its pulp mills in September and October, reducing its pulp production by 60,000 metric tons. All of the company's mills will be involved in the maintenance schedule.

Owned by M-real, Metsaliitto, and UPM-Kymmene, Botnia produces bleached pulp at four mills in Finland, at Joutseno, Kemi, Rauma, and Aanekoski. The four mills have a total production capacity of 2.4 million metric tpy.

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Kruger, Montreal, Que., Canada, reports that its Kruger Products L.P. subsidiary will continue to expand in the North American tissue market by installing a new tissue machine and supporting facilities at its Memphis, Tenn., USA, mill. The $316 million investment will increase the company's production capacity by 18%, or 60,000 metric tpy of additional products to be distributed for the most part in U.S. markets. The expansion project is an integral part of Kruger's long term strategic development plan.

"The proximity of our Memphis Mill to growing U.S. markets will further strengthen our competitive position in North America, which will benefit all our establishments in both Canada and the U.S.," said Mario Gosselin, COO for Kruger Products L.P. Since the Kruger Co. acquired its tissue mills in 1997, it has made investments of more than C$450 million in its four Canadian mills, including C$230 million to modernize its Crabtree (Quebec) facility.

The investment announced week not only help consolidate position, but will give Kruger Products latitude it needs develop its activities at North American level. The project, which involves tissue machine and state‐of‐the‐art facility to accommodate this new asset, is partly financed by $211 million loan from the Caisse de dépôt et placement du Québec, a Canadian institutional fund manager.

The Kruger Products L.P., a subsidiary of Kruger Inc., has 2,500 employees and operates five mills, four of which are located in Canada and one in the U.S.

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Manistique Papers Inc. (MPI), Manistique, Mich., USA, this past week announced that it was shutting down operations, filing for bankruptcy, and seeking a buyer. Citing a financial impasse with its lender, MPI, operating for 90 years in Manistique, said it could no longer continue its struggle with declining demand and increasing material costs, according to a report by the local Daily Press newspaper. MPI employs some 150 people and produces specialty offset papers from 100% recycled fiber.

According to a press release issued by MPI, necessary funding needed to continue operations was denied last week, despite the paper company's good financial history, stock holder guaranty payments, and support collateral value.

"In light of the lender's decision, we examined our few options with legal counsel and we regret having to make the decision to file bankruptcy," MPI director and GM Jon Johnson explained in the release. "The business circumstances leading to this decision were unforeseen - we are as shocked by this as everyone else. We had thought and hoped that the lender would allow us to continue operations while we searched for alternative financing."

A volatile market also played a role in the company's decision to close its doors. "While our values and service have not changed since 1920, the American economy has changed," said Johnson. "Due to the current economic situation and the inability to obtain our working capital needs, we are left with no choice at this time but to close this chapter of Manistique and Michigan history."

According to the release, the mill's raw material costs have increased $1 million per month since this January, severely impacting its bottom line. Market conditions also resulted in a significant decrease in demand, creating excess inventory and falling revenues.

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NewPage Corp., Miamisburg, Ohio, USA, this week reported that, based on its assessment of current market and economic conditions, it has decided to take downtime on both paper machines at its Port Hawkesbury mill in Nova Scotia, Canada. The downtime will begin September 10 for the mill's PM 1 newsprint machine and September 16 for the PM 2 supercalendered machine. The company will provide future updates on the mill based on an ongoing review of the situation and economic conditions during the anticipated downtime.

According to NewPage, te decision was based on a combination of factors, including unfavorable exchange rates between the U.S. and Canadian dollars and high utility and shipping costs, which have rendered its Port Hawkesbury mill operations unprofitable for more than a year. The decision to take downtime on PM 1 and PM 2 was made now, the company adds, to mitigate the potential impact on customers and already has taken into consideration the planned downtime for future scheduling.

The company expects to fulfill certain pre-existing orders for its supercalendered papers from its mill in Duluth, Minn., but does not produce newsprint from any other mill location and therefore will be unable to serve these customers during the downtime.

"Despite the continued dedication and efforts of our team at Port Hawkesbury to drive cost improvements, extremely challenging economic conditions at this location have forced us to make this difficult, but necessary business decision," said George Martin, president and CEO of NewPage.

According on and to this is the a Mark Lukacs, SVP, Operations NewPage, The Port Hawkesbury mill makes great improved newsprint, supercalendered paper for printing publishing industries. We have very dedicated talented workforce downtime in no way reflection them.

NewPage's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint, and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications, and direct mail advertising. The company owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin, and Nova Scotia. These mills have a total annual production capacity of approximately 4.1 million tons of paper, including 2.9 million tons of coated paper, 1.0 million tons of uncoated paper, and 200,000 tons of specialty paper.

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SCA Hygiene Products GmbH, Sweden, has ordered from Andritz, Austria, equipment for the expansion of its deinking plant serving PM 4 at its Ortmann mill in Austria. Startup is scheduled for June 2012. The deinked pulp will be used to produce toilet tissue.

The scope of supply includes a complete dispersing and high-consistency bleaching stage (screw press, CompaDis disperser, and high-consistency bleach tower with a screw conveyor transport system), rebuild of the low-consistency cleaner plant and disc filter, process pumps, installation, startup, and training.

This investment and the expansion to a two-loop deinking system will give the mill a significant brightness increase in its tissue grades that are produced entirely from wastepaper. In addition, it will be possible to replace bright wastepaper grades currently used with raw materials having lower ash content and further improve water management of the deinking plant.

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Tembec, Montreal, Que., Canada, this week reported that it has reached a settlement with its Matane, Que., high-yield pulp mill employees who have now voted to end the strike. Employees began returning to work gradually on August 22 and operations are expected to resume on September 11. Production at the mill has been suspended since May 10. The settlement covers a seven-year agreement that will expire in October 2016.

The Matane mill employs 143 people, of which 99 are unionized, and ships to customers in North America, Europe, and Asia. It has a production capacity of 250,000 metric tpy.

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Continuing the strategic expansion of its business in Turkey, Central National-Gottesman Inc., Purchase, N.Y., USA, this week announced that its European subsidiary, Central National-Gottesman Europe, has acquired an 80% ownership interest in Tradera S. A., a supplier of wood pulp and packaging materials to the Turkish and Greek markets. The company will operate as Central National Dis Ticaret A.S. and will eventually change its name to "Central National Turkey," subject to the provisions of Turkish law. As part of the agreement, Central National Europe has the option to purchase the company's remaining shares at a later date.

"Founded by Osman Tokat, Tradera has become one of the most respected suppliers of wood pulp and corrugating materials in Turkey," said Ken Wallach, chairman and CEO of Central National-Gottesman. "We are pleased that Osman, who has been our long time sales agent, will continue to lead Central National Turkey as its managing director, and we are delighted to welcome him and his excellent team of sales and support professionals into the Central National organization. This acquisition represents an exciting opportunity to expand our business with leading paper mills, merchants, newspapers, and corrugators in Turkey—one of the fastest-growing markets in the region and a core part of our European activities.

"The Tradera transaction follows Central National Europe's early 2011 acquisition of a controlling interest in Korda Kagit Pazarlama ve Ticaret A.S., one of Turkey's leading paper merchants. It demonstrates CNG's commitment to growing a strong pulp, paper, and paperboard sales platform in Turkey and the surrounding area and reflects CNG's strategy to expand its sales activities, both organically and through acquisition, in growing markets around the world," Wallach said.

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Containerboard/Packaging
International Paper, Memphis, Tenn., USA, and Atlas Holdings, Greenwich, Conn., today agreed to combine their consumer packaging solutions businesses, pending regulatory approval and other customary closing conditions. As a result, IP's Shorewood Packaging and Atlas' AGI World, two global specialty packaging companies, will become AGI-Shorewood, creating one of the largest specialty packaging businesses in the world with operations in North America, Europe, Asia, Australia, and Latin America.

"For more than a decade, Shorewood Packaging has been an important part of International Paper and has made many contributions to our company, particularly through leadership in innovation and creative services for customers," said Tom Kadien, SVP of IP's Consumer Packaging and IP Asia businesses. "By merging Shorewood with AGI, our employees and our customers will have many more options and opportunities in the future, and we will continue to be a strong partner in those efforts."

Andrew Bursky, chairman of Atlas Holdings, said that "we are excited about this combination, bringing together two businesses with great legacies and creating a new global leader with unparalleled capability to serve the world's premier consumer product, media, and entertainment and tobacco companies. We are committed to building the new AGI-Shorewood around the needs of our customers, providing innovation, efficiency, and exceptional service through an unrivaled network of global packaging and creative service facilities."

Once the transaction is complete, the new company will employ nearly 4,000 people and will operate 24 manufacturing facilities around the world. In addition, AGI-Shorewood will be strategically focused on its key consumer packaging, media, and entertainment, and tobacco packaging markets, which include beauty and personal care, cosmetics, and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary, and specialty foods and tobacco and specialty gravure.

Mike Ukropina, currently president, Shorewood Packaging, will lead the new AGI-Shorewood organization as president and CEO. The remainder of the AGI-Shorewood leadership team will include:

  • Mark Caines, currently CEO, AGI North America, as CEO, AGI-Shorewood North America
  • Tony Garnish, currently CEO, AGI Europe, as CEO, AGI-Shorewood Europe
  • Lucy Tzou, currently GM, Shorewood Packaging and IP Foodservice Asia, as CEO, AGI-Shorewood Asia and Global Gravure
  • Don Eldert, currently CFO, Atlas Material Holding Corp., as EVP and CFO, AGI-Shorewood.

After closing of the transaction, Atlas will own 100% of the combined AGI-Shorewood business in the U.S. and IP will own a 40% interest in the combined AGI-Shorewood business outside of the U.S. The various regional transactions are expected to close before the end of 2011.

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Stora Enso, Finland, has ordered a modern Metso IQ quality control system to be installed at its Heinola's Fluting Mill in Finland, near Helsinki. The project is scheduled for completion next month.

The rebuild and modernization includes replacement of the mill's aging QCS system, a retrodilution headbox rebuild, refiner, dilution water and short circulation screens, FoilForce tail threading, IQ Steam Profiler and Machine Control System (MCS) added with electrical and field instrumentation engineering, and refiner area and headbox instrumentation.

The Heinola Fluting Mill has been in operation since 1961. Currently it produces 300,000 tpy of semi-chemical fluting. About 90 % of its production is being exported for fruit and vegetable packaging as well as for packaging of consumer electronics and machine parts.

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China Shengda Packaging Group, Hangzhou, China, this week announced the appointment of Ken He as its new CFO. He succeeds Thomas Jiayao Wu, who resigned as CFO on August 19, for personal reasons.

Before joining the Company, He spent two years as an investment director of Wealthcharm Investments, a private investment company. Prior to that, he spent five years with PricewaterhouseCoopers in Australia and China. He holds a Master's degree in Applied Finance from Macquarie University, the Certified Public Accountant designation from the Chinese Institute of CPA, Certified Practicing Accountant designation from the CPA Australia, and the Chartered Financial Analyst designation from the CFA Institute.

"We are glad to add Ken He as our CFO. His rich international experience in financial control and accounting will serve us well as we pursue our expansion plans across new products and geographies," said Daliang Teng, CEO of China Shengda Packaging. "We believe that He will leverage his expertise in the U.S. capital markets and strengthen our profile as a U.S. listed company. Finally, we would like to thank Mr. Wu for his significant contribution to our business during his tenure."

China Shengda is principally engaged in the design, manufacturing, and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards used for the production of its flexo-printed and color-printed cartons.

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The Newark Group, Cranford, N.J., USA, this week announced that it will close its Yorktowne Paperboard mill, located in York, PA, and its Newark Graphicboard-BCI plant, located in Fitchburg, Mass. The company will also cease operations on one of the two paperboard machines at its Newark America mill, also located in Fitchburg.

The remaining paperboard machine at Newark America is being reconfigured to accommodate both graphic board production and other grades of uncoated recycled board. Each facility will continue to operate until business is transitioned to other Newark locations.

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New Products
Stora Enso, Finland, reports that it has developed a specialty paper that will allow the industry to reduce the use of non-renewable material required for packaging produced in injection-molding processes. Every day, the company notes, literally millions of packages, for the most part made of polypropylene, are produced using this technology. In the past, this process involved placing a printed film label – as the carrier of information, brand, and advertising – in the mold before injecting plastic melt to create a finished pot.

With the new InnoMould paper produced at the company's Uetersen mill in Germany, the film label can now be replaced by a paper label, reducing the amount of material of fossil origin. The special properties of InnoMould also result in additional benefits. The paper combines with the plastic melt to an integral unit that is much stiffer than packaging made using a conventional film label. The higher bearing pressure of the pot permits higher stacking and the walls of the pots can be produced with up to 50% less material. That means brand owners can achieve a significant reduction in the percentage of non-renewable materials in their packaging.

InnoMould is applicable for injection-molding processes used to produce everything from pots for yoghurt and dairy products, containers for processed fish and butter, and even paint buckets.

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Published Pricing
Arctic Paper, Poland, has announced a price increase on all UWF (uncoated woodfree) and CWF (coated woodfree) paper grades, both in folio sheets and reels. The price increase will range from 5% - 8% and will differ from the current price levels per country and paper grade. The price increase will be implemented for all markets and deliveries beginning September 15.

The company attributes the price hike to increasing input costs such as raw materials and transportation. Arctic Paper local sales teams will provide customers further details and information.

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Papierfabrik August Koehler AG, Oberkirch, Germany, has announced a 4% price increase for thermal paper in the U.S. and Canada. The price hike becomes effective with shipments beginning October 1.

The company attributes the increase to continuing cost pressures in several key production areas.

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Sustainability
No matter where you work in the paper industry, you are likely to have been asked about sustainability issues and how they relate to your area of expertise. If not, you are probably still aware of the importance of sustainability. Sustainability covers a wide range of topics, many with significant economic impacts. Are you aware of your customer's concerns around sustainability? Do you have all of the information that you need around these issues?

In an effort to provide TAPPI members and the broader community with pertinent and timely information about sustainability issues, TAPPI invites you to complete this short survey (< 20 questions). This survey asks you to rank the importance of several sustainability topics – from forest certification, LCAs, global reporting, and the best use of recycled fiber.

This survey was created by the Technical Program Committee for TAPPI's 2012 Sustainability Forum, taking place during PaperCon 2012. Committee members Craig Liska (Verso Paper), Laura Thompson (Sappi Fine Paper North America) and Lela Gerald (Buckman International), all experts in sustainability, want to develop topics that bring you the information on sustainability that you and your customers want. Results from this survey will also be used to guide the development of webinars and other information sharing activities on sustainability topics.

Pass this along! Ask your colleagues, your customers, and your suppliers to complete the survey – sustainability impacts the entire supply chain.

Results from this survey will be shared with TAPPI members. If you aren't a member, join so that you can see what our industry wants to know about sustainability. Learn more about joining TAPPI.

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TAPPI News

CorrExpo 2011, September 26-27, 2011 in Fort Worth, Texas USA, is your chance to gain the technical knowledge you need and see all your suppliers in one place.

The final registration discount will expire August 29. You will also want to make your reservation at the Worthington Renaissance by September 2 to receive the special conference rate.

Registrations for the Corrugated Classic Golf Outing are due September 15. Hole sponsorships are available.

Learn more about the event by viewing the conference brochure or watch our video on YouTube.

 

 

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Save the date for the Lake States TAPPI/North Central PIMA 2011 Minnesota Golf Outing on August 30, 2011. Registration is from 8:00 a.m. to 9:15 a.m. with a Shotgun Start promptly at 9:30 a.m. It will be a four-man scramble with payouts awarded to 1st and 2nd place teams. A box lunch is included and there will be a cocktail hour with a cash bar and complimentary hors d'oeuvres following golf in the clubhouse. The cost is $500 per foursome ($125.00 per person) and includes: green fees, 1/2 cart rental, lunch, awards and vendor sponsored door prizes for mill guests. There will also be a putting contest and a raffle.

Event Location: Preserve Courses at Grand View, 5606 Preserve Blvd, Pequot Lakes, Minn.

Reservation preference will be given to foursomes. Groups of two or less will be placed into foursomes pending availability. We will limit the number of participants to 128. Entries will only be accepted with full payment.  The cost of entries received after August 16th, 2011 is $135.00 per person.

Dress Code: Nonmetal spikes are required. Appropriate golf attire consisting of collared shirt and Dicker style shorts or slacks is required. T-shirts, tank tops, sleeveless shirts, cutoffs, athletic shorts, will not be allowed and players will be asked to change prior to teeing off.

Net proceeds go to Lake States TAPPI/North Central PIMA's Scholarship Fund.

For lodging deals please contact Tim Bauman via phone 1-866-963-8753 or email tim.bauman@grandviewlodge.com and mention the PIMA golf outing.

For additional details and the registration form,

 

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The EPA's Boiler MACT legislation could push environmental spending, as a percentage of capital spending, to 40% - 50% and "over the edge" for many pulp and paper mills still off-balance and struggling in the wake of the 2008-10 economic downturn. This year's environmental sessions at the TAPPI PEERS Conference will explore the impact of Boiler MACT from both the compliance and equipment perspectives, and also examine modern investment strategies that factor in environmental considerations as well as insurance costs and benefits.

The TAPPI PEERS Conference also includes workshops, a mill tour, excellent networking opportunities, exhibits and a peer-reviewed technical program featuring more than 30 sessions. Held in conjunction with the International Pulp Bleaching Conference this year, attending this event is a sound business decision for anyone that needs to focus on making operations more efficient and effective.

Learn more about the TAPPI PEERS Conference 

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Papers are now being invited for presentation at the 66th APPITA Annual Conference and Exhibition. The event, which showcases the latest innovations, technologies and techniques in pulp and paper manufacturing and converting processes is to be held on April 15-18, 2012 in Melbourne, Australia.

The 2012 event themed "PEOPLE, PRODUCTIVITY, PROFITS" will explore new opportunities and techniques to drive Performance, Productivity and Profits in a new energy economy.

Please click here for further details.

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The Recycling Today Media Group and Pira International, organizers of Paper Recycling Europe 2011, have unveiled the conference program. The November 9-10 event at the Barceló Sants in Barcelona will feature seven sessions addressing critical issues for collectors, packers, merchants and buyers of recovered fibre. Presentations include:

  • A macro-economic perspective and assessment of implications for the paper and paper recycling industries from Clive Suckling, analyst, PWC, UK.
  • The supply and demand balance of recovered paper by David Powlson, Pöyry Management Consulting Ltd., UK.
  • A review of the European Union's "End of Waste" legislation, with comments from Ross Bartley, Environmental and Technical Director, Bureau of International Recycling (BIR); Merja Helander, President of the European Recovered Paper Association (ERPA); and David Barrio, Director, ASPAPEL.
  • Panel discussion on the quality challenges inherent in collecting more fibre in co-mingled methods. Panelists include: Henri Vermeulen, Vice President, Recovered Paper, Smurfit Kappa; Manuela Suttning, Redwave, Austria; Steve Miller, CEO, Bulk Handling Systems (BHS); and Sofia Boente and Andrea Orallo of ASPAPEL.
  • Developments in global trade patterns panel led by Bill Moore, President, Moore & Associates; Niels van Binsbergen, Managing Director, ACN Europe; Francisco Donoso, Director, Reciclajes Dolaf; Philippe Chantrain, Sales and Marketing Manager,Cellmark Sweden; and Marc Forman, President, GP Harmon Recycling (US).
  • The outlook for the paper and board industries by Graham Moore, Senior Consultant – Paper, Pira International; Teresa Presas, Director General, CEPI; and Marcin Szwarc, Market Intelligence and Research Manager, Mondi Group.
  •  "Whose fibre is it?" sesssion considers impact by generators to market their recovered paper directly. Panelists include:Harm Douwe Hitzert, Managing Director, Reukema Paper Group; Bernard Arrateig, Vice President-RCP Sourcing, UPM Kymmene; and Thorsten Wenzel, Director, Interseroh.
  • New for 2011 will be a Q&A session with Guillermo Valles Albar, Director of Materials at Spanish papermaker SAICA Paper, enabling all delegates to gain insight from this industry leader.

 Additional information about the event can be found at PaperRecyclingEurope. 

Press enquiry: Natalie Findlay Natalie.findlay@pira-international.com +44 (0) 1372 802104

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Learn the value of implementing a pumped system assessment program at paper mills and other industrial plants at the Pumped System Assessment Workshop  to be held during the TAPPI PEERS Conference, October 2-5, 2011 in Portland.

Attend this one-day workshop and you'll get a thorough introduction to the 2009 Energy Assessment for Pumping Systems ASME EA-2-2009 standard and learn what is necessary to create an assessment team, gather the design data required along with the operating data needed to perform the assessment. Multiple examples will be presented to demonstrate the various steps involved with implementing and performing pumped system assessments within a typical paper mill.

This workshop is free for full conference or single day attendees of the TAPPI PEERS Conference. Learn more.

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This year's Papiertechnische Stiftung (PTS) Germany Coating Symposium is the 25th annivesary of the event. The BMW-Welt as a particularly attractive venue and a new concept will make the event, to be held September 14-17, 2011 even more appealing to participants and exhibitors.

The first two conference days (September 14-15) are dedicated to recent results from research and technology and their implementation.

"Innovations in coating technology will take centre stage in these sessions – from raw materials to printing. Renowned experts from science and industry will present interesting approaches to the design of new products, efficient use of resources and improvements in manufacturing processes and product quality," explains Dr.-Ing. Reinhard Sangl, event director.

Lectures on the first conference day will be presented at the Holiday Inn hotel in Munich. After the lectures, attendees will be transferred to the BMW Welt for the traditional "Symposium Party" in the exhibition area.

The third day includes a variety of presentations on markets and strategy. The day concludes with ceremonies marking the 60th anniversary of PTS. The keynote speaker will be Professor Hans-Juergen Papier, former president of the German Federal Constitutional Court.

On Saturday, September 17,  delegates will be able to witness how innovations are pushed forward at the VESTRA pilot coater of PTS. 

The revised conference format also includes new ticket offers: While fees for the complete event have remained unchanged at 1,410 €, the all-inclusive ticket offers a special plus – it is now transferable. Employees belonging to the same company location can take turns attending at the various conference days. The ticket for the first two days focusing on research, technology and operations costs 1,180 €. Anyone wishing to take part in the sessions on strategic issues and the ceremonial act on day three only can book this day separately for 790 €.

Please visit the Symposium homepage 

 

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TAPPI will be performing its fiscal year end inventory counting starting August 30th. As a result, TAPPI will not be processing TAPPI PRESS orders from August 30th through September 5th. Orders received during this time will be shipped in the order they have been received during the week of September 5th. All payment processing will resume the week of September 5th.

We apologize in advance for any inconvenience and thank you for your patience. This process allows us to better serve our members.
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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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