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Travels with Larry Archive
Thursday, February 16, 2012
members edition
Eka Chemicals
Weekly Spotlight
International Paper Co. (IP), Memphis, Tenn., USA, has completed its acquisition of Temple-Inland Inc. (T-I) , formerly headquartered in Austin, Texas, through the merger of its wholly-owned subsidiary Metal Acquisition Inc.
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TAPPI and PIMA, Norcross, Ga., USA, have announced the selection of James A. Rubright, chairman and CEO of containerboard and packaging producer RockTenn, as the association's 2012 Executive of the Year
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A new report from Dovetail Partners, a Minneapolis, Minn., USA-based non-profit organization, explains chain of custody certification requirements for forest products companies
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Sustainability, carbon footprint, and green initiatives are among the hottest topics in the tissue business today
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The developing offer by Montreal, Que., Canada-based AbitibiBiowater (doing business as Resolute Forest Products) to acquire Fibrex Inc. was disturbed beginning late last week by an offer from Mercer International, New York, N,.Y, USA, to also acquire the Montreal-based producer of virgin and recycled kraft market pulps
Learn More...
 
Eka Chemicals
Converting Influence
Market Roundup
Log exports from Russia have plummeted the past five years mainly because of the country's implementation of a log export tariff of 25% in 2008
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Several new pulp mills are planned for Latin America during the next three years
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Kraft paper markets have weakened and prices are falling
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30-lb East Coast newsprint estimated prices were flat at $640/metric ton in January
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MAVERICK Technologies
Pulp & Paper
The Syassky Pulp and Paper Mill (PPM), Syasstroy, St. Petersburg Region, Russia,, has started up a new Toscotec (Italy) Ahead 1.5M tissue line
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Metsäliitto Group, Finland, has changed its name to Metsä Group and adopted a new corporate identity
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PaperWorks Industries, Philadelphia, Pa., USA, reports that under the direction of interim President and CEO Dr. Richard F. LeBlanc, the company has reorganized its corporate and executive structure
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Wausau Paper, Mosinee, Wis., USA, this week announced an agreement with Starboard Value LP and its affiliates regarding composition of the company's board of directors
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Xerium Technologies Inc., Raleigh, N.C., USA, this week reported that the company has booked its 200th SmartRoll™, the industry's first continuous pressure-sensing paper machine press roll based on the SMART technology
Learn More...
 
Containerboard/Packaging
Metso, Finland, will supply Kipaş Kağıt Sanayi İşletmeleri A.Ş with a containerboard machine for its new mill site in Kahramanmaraş in southeastern Turkey
Learn More...
 
Modern Karton, Turkey, reports that it is getting highly consistent performance from the Voith Paper (Germany) eVenFilm rubber cover on its PM 4 at Corlu, Turkey
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Sonoco, Hartsville, S.C., USA, reports that it has been named SAM Gold Class for a second consecutive year by SAM (Sustainable Asset Management), Zurich, Switzerland, in its Sustainability Yearbook 2012
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Tetra Pak, Switzerland, has inaugurated its new packaging material factory in Finland
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Hemco Industries Inc.
New Products
Kruger notes that the new embossing both enhances the look and feel of the towels and improves absorption and strength
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Stora Enso, Finland, has broadened its Graphical Board offering with the introduction this week of MediaCard, a single layer (SL) board with a double silk coated surface
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Published Pricing
Papierfabrik August Koehler AG, Germany, has announced a 5% price increase for its thermal paper, effective April 1
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Rottneros, Stockholm, Sweden, is increasing the price for all of its CTMP (chemi-thermomechanical pulp) grades by EUR 30/metric ton for all deliveries beginning March 1
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People
Sonoco, Hartsville, S.C., USA, this week announced three executive officer appointments.
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Sonoco, Hartsville, S.C., USA, has elected James M. Micali as its independent lead director, effective immediately
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TAPPI News
Learn new ways to improve your bottom line at Shipping, Receiving and Warehousing Workshop
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February 27 webinar explores misleading environmental claims as they relate to print and paper.
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Pulp and Paper Basics Short Course, co-sponsored by North Carolina State University and TAPPI, will be held March 5 - 9, 2012 at North Carolina State University in Raleigh, NC.

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The award, one of TAPPI's highest honors, will be presented to the long time industry veteran at the 2012 PaperCon Conference Awards Dinner.
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The 5th edition of the Bleaching of Pulp is the premier reference on bleaching technology. The new edition will emphasize modern industrial processes with less focus on fundamental science.
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Annual business meeting will be held March 6, 2012 via teleconference.
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Nominations now being accepted and the deadline for submitting a completed nomination is March 31, 2012. The induction ceremony will be held October 11, 2012 in Appleton, Wisc.
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Xerium Technologies, Inc.
SGS – Group Management Ltd

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Converting Influence
Weekly Spotlight
International Paper Co. (IP), Memphis, Tenn., USA, has completed its acquisition of Temple-Inland Inc. (T-I) , formerly headquartered in Austin, Texas, through the merger of its wholly-owned subsidiary Metal Acquisition Inc. with and into T-I. Temple-Inland is now a wholly owned subsidiary of IP.

Under terms of the transaction, each issued and outstanding share of T-I common stock has been converted into the right to receive $32.00 in cash, without interest thereon, and less any applicable withholding taxes. Including the assumption of approximately $700 million in T-I net debt, the total transaction value is approximately $4.5 billion.

As a result of the acquisition, T-I's common stock ceased trading on the New York Stock Exchange this past Monday (February 13).

IP Chairman and CEO John Faraci said that "we are very pleased to have completed this compelling transaction. The combination of International Paper and Temple-Inland strengthens our North American packaging business and enhances our ability to generate cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we successfully integrate our businesses and create an even stronger company with substantial benefits for our customers, employees, and shareholders."

IP is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. The company employs some 61,000 people in more than 24 countries and serves customers worldwide. Its 2011 net sales totaled $26 billion.

T-I is focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of seven mills and 59 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial, and repair and remodeling markets.

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TAPPI and PIMA, Norcross, Ga., USA, have announced the selection of James A. Rubright, chairman and CEO of containerboard and packaging producer RockTenn, as the association's 2012 Executive of the Year. The award is PIMA's highest honor and is bestowed on senior-level executives in the pulp, paper, or converting industries for excellence in management and outstanding contributions to the industry as a whole. Rubright will receive his award on April 23 during the opening session of TAPPI's PaperCon 2012 event in New Orleans, La., where he will also participate in an executive panel.

"Throughout his career, James Rubright has exemplified the strong leadership skills, vision, and integrity required for success in a globally competitive business like the pulp and paper industry. His accomplishments as a leader and his many contributions to the industry make him an outstanding choice as PIMA Executive of the Year," said Larry N. Montague, TAPPI president and CEO. "Most recently his leadership helped RockTenn deliver consistently solid earnings during the major Smurfit-Stone acquisition. Both competitors and independent converters have responded positively to the acquisition, which has brought RockTenn to a new level in the industry as one of the largest, most respected, and profitable integrated paperboard and packaging companies in North America."

Rubright has served as RockTenn's CEO since October 1999 and chairman of the board since January 2000. The Smurfit-Stone merger in 2011 vaulted RockTenn into the position of No. 2 paperboard packaging producer in the U.S., behind International Paper Co. Before joining RockTenn, he served as EVP of Sonat Inc., a diversified energy company headquartered in Birmingham, Ala. He is a director of AGL Resources Inc., an energy company, and Forestar Real Estate Group Inc., a real estate and natural resources company.

Rubright was RISI's 2008 and 2011 North American Forest Products CEO of the Year and was named Global CEO of the Year by PPI in 2009.

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A new report from Dovetail Partners, a Minneapolis, Minn., USA-based non-profit organization, explains chain of custody certification requirements for forest products companies. The new report helps clarify requirements of the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI). It also discusses options for group certification.

One of the reasons for releasing a new report on chain-of-custody was to address the recent changes made in the certification standards. The FSC has introduced revised criteria for group chain-of-custody that expands opportunities for small businesses in the U.S. and can reduce costs from 50% to 80% for qualifying companies.

"There are about 30,000 companies around the world participating in chain-of-custody certification. This is just a small fraction of the companies that are part of the forest product supply chain. For the certified product marketplace to function efficiently, more companies need to be engaged," says Kathryn Fernholz, executive director of Dovetail Partners and lead author of the report.

The report was made possible through support from the North American Wholesale Lumber Association (NAWLA).

"Our members are interested in better understanding their company's certification options and what is involved with the process so they can make an informed decision about whether or not to participate," says Gary Vitale, president of NAWLA. NAWLA has approximately 500 members in the U.S. and Canada.

"Certification can be a complex and costly process, especially for small businesses. Group certification can help overcome these challenges through the help of a group manager and with costs distributed across group members," Fernholz said.

The full report is available online.

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Sustainability, carbon footprint, and green initiatives are among the hottest topics in the tissue business today. Customers and consumers, retailers and distributors, governments and NGOs, buyers, and sellers are all focusing more attention on this area. And many industry-leading tissue companies are putting enormous efforts into improving all aspects of the sustainability profile of their products and processes, both now and for the future.

To examine these questions and issues in detail, the Tissue World Americas Conference, March 20 - 23 in Miami Beach, Fla., USA, has assembled a world-class panel of speakers for in-depth group discussions. The panel includes, among others:

  • Kimberly-Clark
  • Greenpeace
  • SCA North America
  • FSC – Forest Stewardship Council
  • Cascades Tissue
  • EcoLogo.

The panel discussion is part of an extensive conference program for Tissue World Americas, the most complete event for the North and South American tissue business. In addition to the panel, the four-days of meeting sessions include some 40 other experts presenting information and solutions covering:

  • Market sessions on the supply/demand outlook for tissue markets in the Americas
  • Fiber supply outlook for tissue making
  • Technical sessions covering all aspects of tissue making
  • Yankee Dryer Summit on safety, operational, and reliability issues.

The Yankee Dryer Summit, organized by Tissue World and TAPPI, is planned for Tuesday, March 20. It will share practical and non-commercial solutions to common issues that relate directly to the bottom line. Summit organizers note that one applied idea from the yankee sessions will pay for the conference many times over.

TAPPI has also scheduled its bi-annual Yankee Dryer Safety and Reliabilitry Committee meeting for Monday, March 19, at the convention center, courtesy of Tissue World. Committee members and guests in town for Tissue World are welcome to attend.

To ensure that you are part of this "must attend" tissue industry event, conference organizers strongly encourage registration today. Attendance at the tradeshow of vendors is free of charge, while attendance at the conference meeting sessions is subject to a registration fee. To get the cheaper "early bird" conference registration fee, sign-up online today.

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The developing offer by Montreal, Que., Canada-based AbitibiBiowater (doing business as Resolute Forest Products) to acquire Fibrex Inc. was disturbed beginning late last week by an offer from Mercer International, New York, N,.Y, USA, to also acquire the Montreal-based producer of virgin and recycled kraft market pulps. The Mercer offer was announced last Friday (February 10), following an announcement by Resolute the day before (February 9) that the Bureau de décision et de révision (Quebec) had ordered all rights and securities issued or issuable under Fibrex's shareholder rights plan be "cease traded" beginning at 3:00 p.m. EST on February 13, the day that Resolute's offer was set to expire at 5:00 p.m.

Then on February 13 (this past Monday), Resolute extended its offer (originally announced on Nov. 28, 2011) to February 23, and on the same day also reported that it had applied to the Bureau de décision et de revision for an order to cease trade the proposed offer by Mercer. In its application, Resolute requested that the Bureau exercise its public interest jurisdiction to cease trade the offer on the basis, among other things, that it includes an improperly discounted and dilutive private placement of warrants and an unreasonable break fee.

According to its February 10 announcement, Mercer had entered into a support agreement with Fibrek to acquire all of its issued and outstanding common shares by way of a take-over bid. Pursuant to its offer, Mercer said that Fibrek shareholders will have the ability, on an individual basis, to elect to receive:

  • C$1.30 in cash per Fibrek share
  • 0.1540 of a share of Mercer's common stock (a Mercer Share) per Fibrek Share
  • C$0.54 in cash plus 0.0903 of a Mercer Share per Fibrek Share.

The three options above are subject to proration necessary to effect maximum aggregate cash consideration of C$70.0 million and maximum aggregate share consideration of 11,741,496 Mercer shares.

According to Mercer, the offer provides for consideration of C$1.30 per Fibrek Share or a total consideration of approximately C$170 million for the Fibrek Shares, representing a premium of 30% over the unsolicited insider bid made by AbitibiBowater (Resolute), 81% over the closing price of the Fibrek Shares on Nov. 28, 2011, the date of announcement of the Abitibi Bid, and 70% over the volume-weighted average trading price of the Fibrek Shares on the Toronto Stock Exchange for the 20 trading days ending on such date.

Mercer further reported that the board of directors of Fibrek, after consulting with its financial and legal advisers, had unanimously approved entering into the Support Agreement and unanimously recommends that Fibrek shareholders tender to the offer. Fibrek's board of directors reportedly has received a fairness opinion from Fibrek's financial advisor, TD Securities Inc., that the consideration offered by Mercer is fair, from a financial point of view, to the Fibrek shareholders (other than shareholders that entered lock-up agreements in connection with the Abitibi bid). In addition, Mercer said that, in conjunction with the Support Agreement, certain directors and officers of Fibrek have entered into lock-up agreements with Mercer.

"We are pleased to have the full support of Fibrek's board of directors for a transaction that we believe will deliver significant benefits to both companies' customers, employees, and shareholders. The acquisition of Fibrek clearly fits within our strategy of focusing on world-class production assets that produce high quality pulp. Additionally, the ability of Fibrek's St. Felicien mill to produce and sell surplus renewable energy is in line with our goal of increasing our revenues from energy sales," said Jimmy S.H. Lee, president and CEO of Mercer.

Lee added that "we believe Fibrek's mills are complementary to our existing operations and we feel that, through active management, the acquisition of Fibrek will generate increased value for our shareholders."

The Support Agreement provides for, among other things, a non-solicitation covenant on the part of Fibrek, subject to customary "fiduciary out" provisions, a right in favor of Mercer to match any superior proposal and a termination fee of C$8.5 million payable to Mercer in certain circumstances, including if Fibrek accepts a superior proposal.

The offer is expected to be made pursuant to a take-over bid circular and related documents to be mailed to Fibrek shareholders in accordance with applicable laws (all subject to the terms and conditions of the Support Agreement), Mercer noted.

Mercer plans to finance the cash portion of the offer by way of new credit facilities to be established with Quebec based capital providers.

Resolute owns or operates 18 pulp and paper mills and 23 wood product facilities in the U.S., Canada, and South Korea. Mercer operates three NBSK (northern bleached softwood kraft) pulp mills with a consolidated annual production capacity of 1.5 million tons.

Fibrek operates three pulp mills in North America, one in Saint-Félicien, Qué., and two U.S. mills at Fairmont, W. Va., and Menominee, Mich.. Its annual combined production capacity is 760,000 air-dried metric tpy. Fibrek has approximately 500 employees.

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Market Roundup
Log exports from Russia have plummeted the past five years mainly because of the country's implementation of a log export tariff of 25% in 2008, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. Despite having suffered a sharp decline in global market share, Russia is still the largest exporter of softwood logs in the world, WRQ adds.

When Russia was accepted into the World Trade Organization (WTO) in December 2011, one of the entry requirements was that the country had to reduce export and import tariffs on forest products, WRQ explains. According to persons close to the negotiation process, it adds, the not-yet official proposal for the amendment of the Russian log export tariff system will lower the tariffs on softwood logs from 25% to 15% for pine logs, and to 13% for spruce logs. The new proposed tariff for birch will actually be higher than the current tariffs for small diameter logs.

In addition to the lowering of the tariffs, the proposal also includes a volume quota for softwood logs, according to WRQ. Below the quota limit, the new tariffs will apply, and for volumes above the quota, current tariffs will continue to be in effect. The proposed quotas will almost certainly have no impact on trade with the EU, since they are set substantially higher than the volumes shipped in 2011, and are close to the record high levels of 2006, WRQ notes.

The quota level for countries outside of the EU is proposed to be 13 million cubic meters, of which pine species account for 95%. China is the major destination for Russian pine logs, and in 2011, shipments were well below the proposed quota volume. WRQ reports.

During the past 10 years, there have been three occasions when the annual shipments of pine logs have been higher than the quota volume. Even with a reduction in export taxes of 12%, it is not likely that foreign log buyers will rush back to Russia to purchase higher log volumes in the coming years since the business climate in the country continues to be challenging in terms of political uncertainty, continued corruption, increasing domestic log costs, and infrastructure problems, WRQ points out.

This uncertainty makes many forest companies wary about investing or trading with Russia, so they will likely try to diversify their timber sourcing further to include other regions, WRQ adds, noting that China, which is the largest importer of Russian softwood logs, is increasingly choosing to import lumber rather than logs from its northern neighbor.

More information is available online.

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Referring to it as the possible build-up of a "pulp tidal wave," Mark Wilde, senior analyst with Deutsche Bank, points to two recently announced chemical pulp expansion projects—Aauco's plans to build a new 1.3 million metric tpy pulp mill in southern Chile with a late-2015 startup, and Asia Pulp & Paper's reported plans to build the world's largest pulp line (2 million metric tpy) in South Sumatra with a 2017 startup. Several new pulp mills, he adds, are planned for Latin America during the next three years.

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"It was great while it lasted," Wilde says about the two-year run-up in North American kraft paper prices that he says is now over. Kraft paper markets have weakened and prices are falling, he notes, pointing out that January prices fell $20 - $30/ton in extensible and bag grades.

"With December prices falling ˜$30/ton m/m, producers appear to have given up the October price increase of $50 - $60/ton. In the natural multiwall grade, January estimated prices slipped $10/ton to $1,010 - $1,020/ton. The key issue is weakness in Europe and its ripple effect on domestic supply/demand balance," Wilde says.

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North American newsprint prices are stable, but demand remains weak, Wilde reports, adding that 30-lb East Coast newsprint estimated prices were flat at $640/metric ton in January. While demand is weak from a cyclical standpoint, secular pressures remain intense. According to the Newspaper Association of America, estimated U.S. newsprint consumption fell 21.5% y/y in December (2011 -17% y/y), he explains.

Wilde notes that White Birch has permanently closed its 550,000 metric tpy Stadacona newsprint mill in Quebec City, Que., Canada, after failing to reach a labor agreement with the union members. On the west coast, Catalyst Paper is in the midst of a financial restructuring.

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Pulp & Paper
The Syassky Pulp and Paper Mill (PPM), Syasstroy, St. Petersburg Region, Russia,, has started up a new Toscotec (Italy) Ahead 1.5M tissue line. Syassky PPM, one of the oldest and most important pulp and paper mill in the URSS, was founded in 1928, targeting the domestic market.

Actually, the Syassky PPM is one of the most modern enterprises of the northwest Russian region and the only integrated tissue producer in this area having an in-line pulp mill, tissue production (PM 2, PM 3, and PM 5), and converting and packaging facilities.

The company has been reorganized as a joint stock company to be able to satisfy the growing demand for domestic but also for the away-from-home (AFH) export markets. In the past two years, Syassky PPM initiated a large investment program that resulted in the startup of new converting lines, packaging lines, and a new Toscotec rewinder TT WIND-H. The new Toscotec tissue line that has replaced the existing PM 2 housed in the same original building, continues this strong investment process and will guarantee a leading position for the company in the growing Russian market.

The main tissue brand produced by Syassky is Myagky Znak that in 2011, according to AC Nielsen Market Research, reached a 21% market share in the Moscow and St. Petersburg regions.

The Ahead 1.5M crescent former machine features a single layer headbox, single press configuration TT SPR 1050, a 3,660 mm dia. Steel Yankee Dryer TT SYD 12FT, and a renewed reel TT REEL-P. The Toscotec scope of supply included also upgrading of the existing stock preparation plant, a new approach flow system, gas heated hood, steam and condensate system, and electrification and control systems. A complete engineering, erection supervision, commissioning, training, and startup assistance package was provided by Toscotec.

Machine speed is now up to 1,400 m/min with a trim width of 4,200 mm, for a daily production of 125 tons. Thanks to its Crescent Former configuration and to the high level of technology, the machine is extremely flexible, compact, and capable of producing high quality tissue from virgin pulp (dry and slush) with a reduced energy consumption, Toscotec notes.

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Metsäliitto Group, Finland, has changed its name to Metsä Group and adopted a new corporate identity. The names of Metsä Group's business areas change as well. The new names and a new identity represent the final stage of a restructuring based on the Group's strategy.

The unified Metsä Group is focused on five core businesses: wood products, pulp, board, tissue and cooking papers, and wood supply and forest services. The name of Metsä Tissue remains unchanged. Metsäliitto Wood Products Industry, internationally Finnforest, becomes Metsä Wood, and Metsä-Botnia becomes Metsä Fibre.

On March 28, the annual general meeting of M-real Corp., Finland, will make a decision on a proposition to change the company's business name to Metsä Board Corp. The wood supply operations will be known as Metsäliitto Puunhankinta in Finland and as Metsä Forest in other countries.

The new corporate identity does not affect the structure of the Group or the legal status of the companies. The name of Metsä Group's parent company, Metsäliitto Cooperative, does not change and it continues to be a cooperative.

"Our restructuring initiated in 2005 is now finalized and we are well positioned for the future. This is the right time to strengthen our operations as a unified group. Competitiveness requires closer collaboration and lower boundaries between businesses. It also requires sharing best practices and making use of them," said Kari Jordan, president and CEO of Metsä Group.

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PaperWorks Industries, Philadelphia, Pa., USA, reports that under the direction of interim President and CEO Dr. Richard F. LeBlanc, the company has reorganized its corporate and executive structure. "As part of our ongoing efforts to be a customer-focused company, we have streamlined the organization to increase efficiency and improve service," Dr. LeBlanc said.

PaperWorks now comprises two business units. The Paperboard Group includes the company's original two mills, and five converting facilities acquired in January 2011 when Manchester Industries merged with PaperWorks. The company's Packaging Group is comprised of 10 facilities from the former Specialized Packaging Group that merged with PaperWorks in 2009, and the more recently acquired Rosmar Packaging.

The company's organizational chart has also been adjusted, with some significant changes. Along with the recent addition of Dr. LeBlanc as interim president and CEO, Mark P. Roy is now EVP of the Paperboard Group, working in parallel with John Hartwell, EVP of the Packaging Group. Kevin Coghlan is acting CFO. Dan Sassi, VP of Human Resources, and Bob Toupin, now VP of Information Systems, will provide executive corporate support.

"We continue to be a company built around a stable core of seasoned executives. Continuity and consistency are the bedrock of the PaperWorks offering," Dr. LeBlanc said.

Founded in 2008, PaperWorks Industries' Packaging Group produces specialized folding cartons, serving clients across North America from its 10 facilities. The Paperboard Group produces some 300,000 tpy of 100% recycled paperboard for a variety of end uses, and further specializes in the cutting and distribution of all paper types according to specific customer needs.

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Wausau Paper, Mosinee, Wis., USA, this week announced an agreement with Starboard Value LP and its affiliates regarding composition of the company's board of directors. According to the agreement, Wausau will nominate two new directors recommended by Starboard, Michael Burandt and Charles Hodges, neither of whom is employed by or affiliated with Wausau or Starboard. The nominations will be included in Wausau's 2012 proxy statement and submitted for stockholder approval at the company's 2012 annual meeting.

In addition, the company also agreed to form a newly-created committee of the board, to be made up of four individuals, including Burandt and Hodges. The committee will advise the board with respect to operations of, and investments and capital spending in, the company's business.

In connection with the nominations, Starboard, which beneficially owns approximately 9.7% of the outstanding shares of Wausau's common stock, has agreed to vote all of its shares in favor of each of the board's nominees at the 2012 annual meeting. A total of four director nominees will stand for election at the 2012 Annual Meeting, including the two Starboard recommended candidates. If all nominees are elected, the Wausau board will be expanded to eight directors—six independent directors, Thomas J. Howatt (non-executive chairman of the board), and Henry C. Newell (Wausau's president and CEO). The board is currently comprised of six members.

The complete agreement between Wausau and Starboard will be included as an exhibit to the company's Current Report on Form 8-K that will be filed with the Securities and Exchange Commission.

Wausau Paper produces and markets a complete line of away-from-home (AFH) towel and tissue products as well as specialty papers for industrial, commercial, and consumer end markets.

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Xerium Technologies Inc., Raleigh, N.C., USA, this week reported that the company has booked its 200th SmartRoll™, the industry's first continuous pressure-sensing paper machine press roll based on the SMART technology. Xerium's SMART applications are all based on an embedded roll cover sensor system that provides constant, real time operating data to help optimize production, reduce energy consumption, and control costs.

"Since that first sale just over two years ago, we estimate that SmartRoll has saved our customers more than $40 million in reduced energy consumption and other cost reductions," said Stephen R. Light, chairman, CEO, and president of Xerium Technologies. "Reaching this SmartRoll milestone in such a short time demonstrates that manufacturers are hungry for technology that produces real performance benefits at lower cost."

This week's announcement marks the 200th SmartRoll that has been booked since entering full commercial availability as a single application in mid-2009. Xerium now deploys 14 individual SMART technology applications throughout the paper machine, all of which are based on the company's system for measuring nip pressures in real time, to analyze and optimize moisture removal in the press section.

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Containerboard/Packaging
Metso, Finland, will supply Kipaş Kağıt Sanayi İşletmeleri A.Ş with a containerboard machine for its new mill site in Kahramanmaraş in southeastern Turkey. Startup of the new machine is scheduled for 2013. The value of the order is approximately EUR 80 million.

Metso's delivery includes a complete high-technology board machine. "The new machine will utilize gap forming technology that enables a higher production speed and production efficiency ratio for board machines," said Area President Hannu T Pietilä from Metso. In addition, Metso's extensive automation package will include process, machine and quality controls.

The 8.6-m-wide (wire) high-technology board machine includes an approach flow system, air systems, machine pulpers, a broke collecting system, chemical systems, a steam and condensate system, a ropeless tail threading system, machine clothing, and mill engineering.

The new PM 1 will be equipped with an OptiFormer roll and blade gap former as well as a WinDrum Pro high-capacity belt-bed winder. The production speed will be 1,500 m/min. PM 1 will produce fluting and testliner grades from 100% recycled fiber. The annual production capacity will be approximately 400,000 metric tons.

Family-owned Kipaş Kağıt Sanayi İşletmeleri A.Ş is a subsidiary of Kipas Holding A.S. of Kahramanmaraş, Turkey. Through the reorganization of the group's companies in 2005, Kipas Holding is formed of numerous subsidiary companies with 27 mills and more than 6,000 employees.

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Modern Karton, Turkey, reports that it is getting highly consistent performance from the Voith Paper (Germany) eVenFilm rubber cover on its PM 4 at Corlu, Turkey. "Running our film press with this new rubber roll cover saves us up to EUR 472,800 per year," said Ali Ihsan Aras, technical director of Modern Karton.

The eVenFilm cover for film and size presses is Voith's latest product for the highly challenging applications. Physical characteristics of the new polymer matrix include greater tear resistance, enhanced wear resistance, and reduced hysteresis to provide additional benefits to the application quality and machine runnability.

Modern Karton is part of the Eren Group and is one of the largest board and packaging paper manufacturers in Europe. At the Corlu location, 120 km west of Istanbul, 700,000 metric tpy of packaging paper is produced both for the domestic market and export markets. This represents approximately 50% of the Turkish production capacity. PM 4, which started operation in April 2008, has a width of 8.6 m and produces testliner grades from 100% recovered paper at 1,350 m/min, with an annual production capacity of 400,000 metric tons.

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Sonoco, Hartsville, S.C., USA, reports that it has been named SAM Gold Class for a second consecutive year by SAM (Sustainable Asset Management), Zurich, Switzerland, in its Sustainability Yearbook 2012. The company was also named SAM 2012 Sector Leader and SAM 2012 Sector Mover in the Containers and Packaging sector.

This is the first time Sonoco has been named a Sector Leader, a distinction awarded to the company with its sector's highest sustainability score. SAM is an investment boutique focused exclusively on sustainability investing that annually invites the world's largest 2,500 companies, as reflected in the Dow Jones Global Total Stock Market Index, to participate in its Corporate Sustainability Assessment.

"We are extremely pleased to be named the packaging industry's sustainability leader because it recognizes our commitment to setting the standard for sustainability in our industry and to providing recycling services and innovative waste reduction programs to many of the largest consumer brands in the world," said Harris E. DeLoach Jr., Sonoco's chairman and CEO.

SAM assessed 10 packaging and container companies using economic, environmental, and social criteria. The economic criteria included corporate governance, customer relationship management, risk and crisis management, and codes of conduct. SAM's environmental assessment examined the companies' product stewardship, environmental reporting, environment policy/management system, and climate strategy. Social dimension criteria focused on talent attraction and retention, human capital development, stakeholder engagement, and standards for suppliers.

The company with the highest score in each sector is named the SAM Sector Leader. SAM considers a Sector Leader the company in its industry that is best prepared to seize the opportunities and effectively manage the risks associated with economic, environmental and social developments. SAM Sector Leaders also receive SAM Gold Class status for that year.

The SAM Sector Mover award is given to the company in a sector that has achieved the largest proportional improvement in its sustainability performance compared with the previous year. Sonoco was named a SAM Sector Mover in 2010 and again in 2012.

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Tetra Pak, Switzerland, has inaugurated its new packaging material factory in Finland. The factory, located in the town of Imatra, with a planned capacity of 500 million packages per year, will expand Tetra Pak's gable top capacity for Northern Europe.

The laminated paperboard used to produce the packaging material comes from the Imatra paper mills only six km from the location of the new factory. The short distance helps reduce carbon dioxide emissions for the transportation of paperboard to the factory.

The new factory's production facilities are expected to be ISO 14001 certified during Quarter 1 of 2013, and plans are underway to implement World Class Manufacturing (WCM) practices at the plant. ISO 14001 is an environmental management system standard, and WCM is a tool to help drive and visualize improvements in various areas, including cost, efficiency, competence, maintenance, availability, quality, safety, and environment.

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Hemco Industries Inc.
New Products
Kruger Products L.P., Mississauga, Ont., Canada, has launched a new embossed pattern on all of its roll and multifold towel brands—Embassy® Supreme, Embassy®, White Swan®, and Esteem®. Kruger notes that the new embossing both enhances the look and feel of the towels and improves absorption and strength, enabling hands to be dried more thoroughly and thus reducing the risk of cross-contamination.

n line with Kruger Products' Sustainability 2015 initiative, the new embossed roll and multifold towels are EcoLogoM-certified (made with 100% recycled fiber and more than 88% post-consumer content) and/or Forest Stewardship Council (FSC)-certified by Rainforest Alliance. Kruger Products is the first Canadian tissue manufacturer to obtain FSC certification.

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Stora Enso, Finland, has broadened its Graphical Board offering with the introduction this week of MediaCard, a single layer (SL) board with a double silk coated surface. MediaCard can be used for various graphical and packaging applications that demand high visual appearance.

"With the launch of MediaCard, Stora Enso completes its Graphical Board offering for brandowners, designers, converters, and printers. The high-white, bright, and smooth surface of MediaCard supports excellent print results and is suitable for a wide range of graphical end uses and packaging such as covers, folders, cards, tags, tickets, posters, game cards, and shopping bags", said Jonas Pettersson, sales director for Stora Enso Graphical Boards business segment.

MediaCard is produced at Stora Enso's Uetersen mill in Germany with a double silk coated surface on either one or two sides: The C1S grade is one-side double coated and offered in basis weights of 120 to 300 gsm. The C2S grade is two-side double coated and available in 250 gsm and 300 gsm.

On request, MediaCard is also available with FSC- and PEFC-certification. Free of charge samples can be requested by e-mail to mediacard@storaenso.com.

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Naylor, LLC
Published Pricing
Papierfabrik August Koehler AG, Germany, has announced a 5% price increase for its thermal paper, effective April 1. The company attributes the price increase, which applies to customers globally, to continued strong demand and high input costs.

Koehler Paper Group is a family owned company with a 200-year history, employing 1,800 people at its Oberkirch, Kehl, and Weisenbach mills in the state of Baden-Württemberg and at Greiz in the state of Thuringia. It produces a total of 500,000 metric tpy of thermal paper, carbonless paper, fine paper, technical paper, colored recycling paper, decor paper, and wood pulp board.

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Rottneros, Stockholm, Sweden, is increasing the price for all of its CTMP (chemi-thermomechanical pulp) grades by EUR 30/metric ton for all deliveries beginning March 1. The company notes that the increased price is a result of good demand, particularly in Asia, which has encouraged Rottneros to increase its prices in Europe as well.

In addition to the good demand for CTMP, there has been a considerable reduction in global stock levels of eucalyptus kraft and prices have improved since December 2011, which also supports the decision to increase the price for CTMP grades, Rottneros says..

Rottneros is an independent producer of market pulp. The Group includes the parent company Rottneros AB and its subsidiaries Rottneros Bruk AB and Vallviks Bruk AB with operations involving the production and sale of market pulp. The Group also includes the wood procurement company Rottneros Baltic SIA in Latvia. With some 298 employees, the Group had a turnover of approximately SEK 1.5 billion in the 2011 financial year.

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People
Sonoco, Hartsville, S.C., USA, this week announced three executive officer appointments. John M. Colyer Jr. has been promoted to VP, Global Paper and Industrial Converted Products. Ronald G. Leach was named VP of Sonoco's recently expanded Global Protective Packaging segment, elected an officer of the company, and appointed to the executive committee. R. Howard Coker, has been named to the company's executive committee and remains VP, Global Rigid Paper and Closures.

In his new role, Colyer has responsibility for Sonoco's largest business segment, including global tubes and cores, paper, recycling, wire and cable reels, and internal supply businesses, including adhesives and forest products. In total, this segment has 198 global plant locations in North America, Europe, South America, Australia/New Zealand, and Asia. Prior to this new assignment, Colyer served as VP, Global Industrial Converting, and was responsible for leading the effort to complete the recent acquisition of Tegrant Corp., a supplier of protective, temperature-assured, and retail security packaging. He has more than 28 years of experience with Sonoco and has held numerous leadership and manufacturing management positions in businesses serving industrial and consumer markets.

Leach was president and CEO of Tegrant Corp. prior to the acquisition this past November. He also has served as president of SCA Packaging N.A. and president and CEO of Alloyd Co. Before becoming Alloyd's president and CEO, he was the company's VP of operations.

Coker has global responsibility for thecompany's composite can and metal and peelable membrane ends and closures businesses. Prior to this appointment, 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, Rigid Paper and Plastics – Asia/Pacific.


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Sonoco, Hartsville, S.C., USA, has elected James M. Micali as its independent lead director, effective immediately. The appointment replaces the current practice of having an independent board committee chairman rotate as presiding director.

Micali has been an independent director of Sonoco since 2003 and currently serves as chair of the board's Corporate Governance and Nominating Committee. The lead director's duties include presiding at executive sessions of the independent directors and at any meetings of the board at which the chairman is not present. In addition, the lead director will confer with the chairman regarding board meeting agendas, schedules, and information sent to the board, along with other duties.

Since 2008, Micali, 64, has been senior advisor to, and limited partner of, Azalea Fund III of Azalea Capital LLC, Greenville, S.C. He retired as chairman and president of Michelin North America, Greenville, S.C., in August 2008. Micali is also a director of SCANA Corp., Ritchie Brothers Auctioneers, and American Tire Distributors Holding.

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TAPPI News

Attend the Shipping, Receiving and Warehousing Workshop, in Nashville, April 2-4, 2012, and learn new ways to improve your bottom line. Be a part of this dedicated group of mills, carriers, warehouses and printers as they collaborate to reduce in-transit damage to rolls of paper at this premier forum for industry leading paper shippers.

This is truly a practical, interactive and collaborative shipping and receiving workshop put on by industry professionals, for industry professionals - all parties of the supply chain - to address common issues and concerns relating to damage and damage prevention in the paper industry. It's an excellent networking opportunity - paper buyers, paper companies, carriers, securing / damage prevention specialists, block and bracing manufacturers, safety experts all under one roof. Learn more about TAPPI's Shipping, Receiving and Warehousing Workshop.

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Leading up to the Sustainability Forum at PaperCon in April, a series of webinars are planned to help manufacturers and customers better understand key issues around sustainability. Participate in these seminars, and attend PaperCon's Sustainability Forum to assure you have the most up-to-date knowledge of this dynamic and important topic.

How to Deal with Misleading Environmental Claims Related to Print and Paper
February 27, 11:00 am

Facilitated by: Phil Riebel, President and COO, Two Sides U.S., Inc.

Cost: There is no cost to participate, but you must register to attend.

Register for this webinar

Many corporations are promoting electronic communications (ex: e-billing) as a more environmentally-friendly method of communication, and in doing such they are spreading erroneous facts and messages about print and paper. As a result, the public is being flooded with messages that portray print and paper as a "bad" product with "destructive" environmental impacts relative to other communication methods. This presentation will outline some of the unique environmental and social features of print and paper products which make it a sustainable way of communicating. The (often ignored) environmental and social impacts of electronic communications will also be reviewed, as well as environmental marketing rules and guidelines that companies should respect when making environmental claims (ex: US Federal Trade Commission Green Guides). Print and electronic media will co-exist for many decades and we need to reduce the environmental impacts of both. It's not a question of one versus the other, but rather which combination is the most sustainable. The initiatives taken by Two Sides to challenge misleading claims will also be presented.

Learn more and make plans to participate.

Additional webinar in the series:

A Global Sustainability Perspective

March 12, 2012 at 11:00am EST - Facilitated by: Avrim Lazar, FPAC

Register in advance for this webinar

A Comparison of the FSC and SFI Forest Certification Standards

Took place on January 30. Listen to a recording.

PaperCon 2012 will take place April 22-25, 2012 in New Orleans, Louisiana, and will focus on "Growing the Future"; leveraging renewable, recyclable raw materials and developing human capital to ensure value for customers, long-term sustainability for shareholders, and a future for our peers.

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There's still time to sign up for the TAPPI Hands-On Workshop for Pulp and Paper Basics March 5-9, 2012 at North Carolina State University in Raleigh, North Carolina, USA.

Register here to reserve your seat. The number of students in the course will be limited in size - to 32 - for maximum effectiveness and registrations will be accepted in the order they are received.

 It's an essential course that teaches the basic concepts in pulp and paper manufacturing and is designed for anyone wanting to improve their role in operations.

This workshop is especially beneficial for:

  • New process engineers, manufacturing operators and technicians who want to understand more fully how raw materials are processed into products
  • Individuals who wish to broaden their knowledge of the processes through basic laboratory and pilot paper machine experiences
  • Sales and service personnel, machine operators, and maintenance personnel who need to better appreciate paper machine operations by conducting a pilot paper machine trial
  • Individuals who have completed TAPPI's Introduction to Pulp and Paper course and who want to benefit from the laboratory and pilot plant experiences

Previous participants said:

"The information was detailed and easily understood by both engineers and non-engineers. I will definitely suggest the course to others!" "This is an excellent course; providing an intense overview of the entire papermaking process."

Workshop Materials: Participants will receive a course notebook and CD with approximately 400 pages of reference materials. Students also receive a course polo shirt.

Earn CEUs: You'll earn 3.7 continuing education credits at the completion of this March 5-9 course.

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Phil Jones Named Winner of Herman Joachim Distinguished Service Award 

Phil Jones, Director, New Ventures & Disruptive Technologies for Imerys, has been named recipient of the 2012 Herman Joachim Distinguished Service Award. The Award is the highest honor the Association can bestow upon an individual for exemplary leadership that has significantly contributed to the advancement of the Association. It will be presented at the 2012 PaperCon Conference Awards Dinner, Tuesday, April 24, 2012.

Jones has been a member of TAPPI since 1980, where his initial work was in Coatings and Graphic Arts due to his background in engineered minerals in paper coating and filling. Since then, he's served many roles in a wide variety of areas, including two separate occasions on the TAPPI Board of Directors and the Executive Committee. He's been Chairman of the Technical Operating Council, Coating and Graphic Division and Research Management Committee among many positions he's held. Most recently he has been involved in formation of the new TAPPI Nanotechnology Division where he is currently vice-chair. Jones has also served as Vice-Chair of the Industry Advisory Board of CPBIS and as a member of the Board of Executives of the Institute of Paper Technology (IPST), both at Georgia Tech. He's been with English China Clays, now Imerys, for 36 years.

The Herman Joachim Distinguished Service Award was established in 1983, and in 1994, Herman L. Joachim's gift of $500,000 was used to establish a Distinguished Service Award Fund. Since that time the award has been accompanied by a cash honorarium worth 5% of the fund, which in recent years has ranged from $60,000 - $80,000. Joachim was a TAPPI member for more than 70 years since he joined while working as a chemist at the Bogalusa Paper Company in Louisiana. He later managed paper mills throughout the United States and also enjoyed a successful career as an engineering consultant.

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Scheduled to be released Spring of 2012!

The Bleaching of Pulp

By Peter W. Hart and Alan W. Rudie

Previous editions of The Bleaching of Pulp have provided comprehensive information on the technology used to bleach wood pulps. The 5th edition will continue this tradition as the premiere industry text on bleaching technologies but will be more focused on the modern industrial processes with less emphasis on fundamental science. New or more comprehensive sections are included on elemental chlorine free bleaching, enzymes, acid treatments for hexeneuronic acids, control of mineral scale and multi-stage modeling as used to optimize bleaching among multiple stages.

Coming soon from TAPPI Press.

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TAPPI Annual Business Meeting/Teleconference Announcement

TAPPI Headquarters, 15 Technology Parkway S, Norcross, GA 30092 USA

March 6, 2012 1:00 pm—1:30 pm ET

"As a corporation TAPPI must hold an annual Business Meeting. That meeting will be held March 6, 2012 via teleconference. Any interested TAPPI member may join us for a brief report on association business," states Larry N. Montague, TAPPI President and CEO.

1. Opening Remarks Norman Marsolan, TAPPI Board Chair

Antitrust Reminder

The call will be held in accordance with TAPPI's Antitrust Policy and Procedures.

TAPPI's aim is to promote research and education, and to arrange for the collection, dissemination and interchange of technical concepts and information in fields of interest to its members. TAPPI is not intended to, and may not, play any role in the competitive decisions of its members or their employers, or in any way restrict competition among companies.

2. Financial Report Larry Montague, TAPPI President and CEO

3. Board Transition Norman Marsolan, TAPPI Board Chair

4. Adjourn Norman Marsolan, TAPPI Board Chair .Please contact Mary Beth Cornell, +1 770-209-7210, mcornell@tappi.org for more information including the teleconference number and password.

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CALL FOR NOMINATIONS FOR 2012 INDUCTION CLASS TO THE PAPER INDUSTRY INTERNATIONAL HALL OF FAME

Nominations for candidates to be inducted into the Paper Industry International Hall of Fame are now being accepted. The deadline for submitting a completed nomination is March 31, 2012.

Nomination forms are available online.They are also available from the office at 425 W. Water Street, Appleton, WI 54911 or by calling 920-380-7491. Nomination papers may be mailed, or submitted electronically. If submitted electronically, the cover sheet with the original signatures of the two nominating sponsors must be mailed to the office at 425 W. Water Street, Appleton, WI 54914, U.S.A.

Inductee must be individuals, who have pioneered and/or helped the world's paper industry or allied industries to flourish. Recognition will be based on contributions in these categories: Academic, Economics, Entrepreneur, Founder, Leadership, Marketing/Sales, Research & Development, Service and Technology

Nominations that have been received within the past four years remain eligible for selection; however, it is essential that all information contained in the applications be kept current. Names and addresses of the candidate and the sponsors need to be current. Please review your copy if you have submitted a nomination and correct it if necessary.

The 2012 Induction Ceremony will be held in Appleton, Wisconsin on October 11, 2012 at the Radisson Paper Valley Hotel. 

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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  

TAPPI Over the Wire | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947

We would appreciate your comments or suggestions. Your email will be kept private and confidential.