Weekly Spotlight
MWV, RockTenn to Merge, Creating $16 Billion Packaging Company

Over the Wire

TAPPI

January 29, 2015
GapCon
The combined company will have net sales of $15.7 billion. Steve Voorhees will serve as CEO and president, and John Luke Jr., current MWV chairman, will become non-executive chairman of the board. The new board of directors will be comprised of 8 representatives from RockTenn and 6 from MWV. The new company will maintain principal executive offices in Richmond, Va., USA, where headquarters for MWV are currently located.
 
UPM to Permanently Retire Three Paper Machines
UPM said that following consultation with employees, it is continuing a planned closure of PM 3 at its mill in Chapelle, France, announced in November. These three additional, new multiple machine shut down announcements mean UPM will cut production at its Kaukas mill and Jämsänkoski mill in Finland, as well as its Shotton mill located in the U.K. by a total of 460,000 metric tpy. According to the company, the machine shut downs are a result of lingering European overcapacity in traditional coated papers and newsprint being produced at the 3 mills.
 
TAPPI Announces 2015 Award Winners
The TAPPI community is proud to honor those who have shown great appreciation for their work with three new award winners announced and 7 members in the TAPPI Fellows Class of 2015. In addition to these awards, TAPPI elects members as Fellows in recognition of meritorious service to the Association and the industry.
 
TAPPI Webinar: Keeping Mill Systems Free of Malware and Cybercrime
Solutions are not necessarily expensive but require collaboration between various departments, and a sense of urgency. A new TAPPI webinar set for Tuesday, February 10, will explain the source of the risk and an approach to successful mitigation as it relates to malware and cybercrime.
 
Tissue360° Forum Planned for April in Atlanta
The peer-reviewed program will address practical and technical techniques to design better products and help tissue mills operate more efficiently. Production leaders, process engineers, and R&D professionals should attend.
 
Tissue 201 – Tissue Operations and Runnability Course
People with three-years of experience in tissue should attend this course. Make your plans now to be in Atlanta, Ga., USA, on April 22-24, 2015.
 
Tissue 101 – Process and Properties Course
This introductory course has been announced covering basic tissue manufacturing methods and chemistry. It will be offered Nov. 17-18, 2015, in Atlanta, Ga., USA.
 
Maxcess
Market Roundup
China, S.A. Projected to Negate N.A., European P&P Decline
The future of the international pulp and paper industry is expected to be in slight growth over at least the next 10 years. Industry data cited show demand for food and beverage packaging, household and hygiene products, and retail displays and packaging will continue to fuel demand for virgin and recovered paper and board for the next several years.
 
Global Packaging Growth to Be Strongest in BRIC Markets
Authors of the report expect the BRIC (Brazil, Russia, India, China) markets to represent nearly 1/3rd of global demand, as their economies further develop. Packaging sales in the emerging markets are expected to continue to show strong growth as increasing consumption and demand for consumer goods continue to drive the need for more sophisticated packaging, mostly due to a growing international middle class.
 
N.A. P&W Paper Continues Decline in 2014
Month vs. month December 2014 and 2013 looked the same as far as total production when compared side by side, but for the full year, production figures are down several percentage points, hinting North American P&W paper is continuing a steady decline as a result of digital/electronic media preferences among today's key consumers in the region.
 
AsianPaper
Pulp & Paper
Chance of Saving Bucksport Now "Little to None"
A judge ruled there was no wrongdoing by Verso on claims of antitrust violation by union leaders who wanted to save labor operations at Bucksport, so sale to AIM for scrapping of the mill will now go through. Gov. LePage has been making an effort since the announcement of the closing to find a new buyer. In what seemed like a dramatic and unexpected turn of events after the announcement of closure in late 2014, there were reportedly three potential buyers interested as of the final week the sale was held up in court. But any interest, if genuine, arrived nearly two months after closure. Too little, too late?
 
G-P's Palatka Mill Announces $70 Million Investment
The new equipment is expected to make the mill more energy efficient and reduce water use by nearly 1/3rd. The mill currently employs more than 900 people from Putnam County and the surrounding area. The project will create more than 150 jobs for contractors and vendors during construction and installation. This is in addition to an approx. $19 million investment announced last year for improvement to equipment in the mill’s kraft paper area.
 
Mondi to Upgrade Fiberline at Frantschach Pulp mill in Austria
Andritz will convert the mill’s continuous digester to Downflow Lo-Solids cooking technology and add a TurboFeed chip pumping system to improve the feed to the digester among other improvements in equipment. This upgrade is a follow-up order to the recovery boiler that was delivered by Andritz and started up successfully at Frantschach in 2013.
 
Unifor, Domtar Negotiations Break Down
"We will now attempt to find a way to bridge the gap and also implement the Eastern Canada Pulp and Paper Pattern with Domtar through the conciliation process prior to taking any potential strike action." said Unifor's national rep. Unifor has applied for conciliation for all production, maintenance, and office members in Local 105 and for slightly more members in Local 324 involved with harvesting.
 
Von Drehle Breaks Ground for Natchez Tissue Operations
The project represents an estimated $100 million incorporate investment and will create at least 100 jobs, with the potential to increase to 150 when completed. Von Drehle acquired the former Mississippi River Pulp facility in 2013.
 
Containerboard/Packaging
Long Chen Paper Orders Key Components for New Containerboard Machine
Valmet's delivery includes an OptiFlo fourdrinier headbox for improved product quality and increased productivity, a center-roll based OptiPress press section with modern shoe press technology for lighter basis weights, as well as a new OptiSizer film sizing section.
 
Mansfield Board Expansion Doubles Size of Factory in U.K.
Effectively doubling their facility, the adjoining new premises now provides additional warehousing, offices, parking, and better loading, while also freeing up existing workshop space for more machinery and equipment. Success of U.K. and Western Europe’s corrugated industry comes seemingly as a result of more social as well as economic focus on sustainable packaging in the economic region.
 
MeadWestvaco to Sell European Tobacco Folding Carton Business
Terms of the deal were not disclosed. The transaction is expected to be completed in the next several months. The company says it will continue to produce paperboard for global tobacco markets at its Covington, Va., USA paperboard mill.
 
Smurfit Kappa New Containerboard PM in U.K. to Startup by Late February
By investing EUR 115 million in 2013 and 2014, the two existing paper machines were replaced by one new, state of the art paper machine, increasing the production capacity of the mill by an additional 20,000 metric tpy. It is expected that this new energy efficient paper machine will save 25,000 metric tpy on direct carbon emissions.
 
Legislative
USW, Four U.S. Paper Companies File Antidumping Petitions against Five Countries
The four manufacturers currently filing are Domtar Corp., Packaging Corp. of America (PCA), Finch Paper LLC, and P.H. Glatfelter Co. "Since 2011, eight U.S. mills that produce uncoated paper have been forced to close in the face of increasing unfairly traded imports, resulting in the loss of thousands of paper jobs," said USW International President Leo W. Gerard.
 
New Products
BPM Paper Introduces Sugar-Free Salt Water Taffy Twist Wrap
The coated, machine-glazed paper offers tight, secure twisting for clean, fresh packaging while offering translucent properties to show off colors and designs. This company produces other types of packaging materials available in opaque grades. BPM produces specialty machine glazed papers and converted materials for packaging, food service and confectionery industries. They also produce uncoated fine papers made from 100% post-consumer recycled paper for the printing industry.
 
Smurfit Kappa, Bibovino Partner on Bag-In-Box Wines
Only high quality wines can be bought in BiBoViNo shops, which have been selected by expert Bruno Quenioux. The packaging used in this chain of stores has deliberately broken with the traditional world of wine (in glass bottles), with a simple design and uniform color, and the concept was recently awarded the "Innovation Trophy 2014" in the Franchise category from French retail magazine LSA.
 
Sustainability
Biomass-for-Energy "Leftovers" Produce Sustainable Industrial Foam
Cellulosic sugars used to produce ethanol leave behind what can be a waste product for some facilities producing the renewable fuel. New research shows that biomass "waste" (being more widely recycled in recovery boilers in more advanced operations in the pulping industry), can also be shipped/sold to industries for applications requiring sustainable plastic-like foam made with starch that is biodegradable but not as initially degradable in water, making it a valuable sustainability solution.
 
Paper from Plastic an Environmental Solution or Complication?
Each ton of their mineral/plastic based paper tablets are equivalent to what is produced from 20 trees. The paper reportedly meets quality standards needed for books, stationary, and product packaging. Sounds like a winner all around... right?
 
UPM Wins Gold Class Sustainability Award
"This is a result of our systematic work and development, e.g. in the areas of resource efficiency, responsible forestry and sourcing, as well as working conditions and safety..." said Päivi Salpakivi-Salomaa, VP, Environment and Responsibility, UPM.
 
Energy
BP’s Cellulosic Ethanol Assets Planned for Sale
Since 2008, BP has invested more than $750 million and created a distinctive capability set with roughly 300 staff to develop and license a leading cellulosic (wood and plant-stalk based) ethanol technology. "...In Biofuels, the decision has been taken to cease further development of BP’s proprietary ligno-cellulosic technology," the company said. The divestment will affect multiple U.S. as well as South American facilities.
 
Biomass Plant Now Operational at Paper Mill in France
The plant is expected to reduce greenhouse gases by more than 6.8 million cubic meters and will cut Delipapier's carbon emissions by more than 13,500 metric tpy. The plant produces heat energy in the form of saturated steam and provides approximately 60% of the factory's entire requirements.
 
Enviva Orders Biomass Pellet Plant Equipment from Andritz
Andritz will supply several innovative products for manufacturing high-quality mini-chips from round timber at high production rates. Enviva currently owns and operates five wood pellet production plants throughout the southeastern U.S., and exports its product through terminals in Chesapeake, Va., and Mobile, Ala.
 
UPM BioVerno Diesel Receives Finnish Key Flag Symbol
The Key Flag Symbol can be granted to products that are manufactured in Finland and have a domestic origin degree of more than 50%. UPM BioVerno diesel is produced only in Lappeenranta, Finland. The renewable wood-based diesel reduces greenhouse gas emissions significantly compared with fossil diesel produced from imported crude oil. UPM is also a leading international forest products/paper producer.
 
People
New CEO Takes Over at AstenJohnson
Prior to AstenJohnson, Kevin Frank held a number of roles with Voith. He most recently served as CEO of Voith Hydro with responsibility for the U.S. Under his leadership, the business grew significant sales and market share in a very competitive market.
 
MWV Names Naveen Ganzu Managing Director for India
Ganzu has three decades of experience in the industry, including president of Motherson Sumi Systems and setting up Weir India as managing director and country head. He strategically led Weir to a leadership position in the Indian market, using a mix of organic and inorganic growth drivers.
 
Robin Ahlström Resigns as Ahlstrom Chairman
Chairman of the Board Robin Ahlström has announced his resignation due to serious illness. "We would like to warmly thank Robin Ahlström for his dedication and excellent contribution to Ahlstrom. He has served on the board of Ahlstrom as chairman, vice chairman, and as a board member," said the company's newly elected chairman.
 
TAPPI News
PEERS 2015 Now Seeking Abstracts, Share Your Knowledge!
The PEERS Technical Program Committee is seeking abstracts from paper manufacturers, suppliers, and others to share best practices and practical solutions to increase process efficiency, reduce costs, and return more value on pulp mill assets. Presenters interested in submitting a paper should upload their abstract to TAPPI's Speaker Management System by March 2.
 
IBBC 2015 Call For Presentations Announced, Demonstrate Your Expertise!
As IBBC draws experts and key decision makers in forest biorefineries from around the world, you can obtain great visibility for your company or organization by presenting at IBBC 2015. Authors interested in presenting should upload their abstract to TAPPI's Speaker Management System by March 19.
 
In Memoriam: Joel W. Kendrick
Our prayers and sympathy are extended to all family and loved ones. Joel held extensive contacts in the industry and had a world of hands-on practical and experimental knowledge. Joel made great contributions to the industry and to environmental groups. Under his direction, WMU's reputation for research and development in new products and recycling grew to be recognized as a global center of excellence.
 
Centennial Celebration Student Video Competition Submission Deadline Approaching, Don't Procrastinate!
This is your final reminder to get things together and ready for us if you are going to participate. Show TAPPI members what the industry means to you and your student chapter. Be sure to enter before the February 10 deadline.
 
Learn Tissue Making's Best Practices from Top Experts
Join 15 of the tissue industry’s highest regarded experts to understand the most important best practices in tissue making at the TAPPI Tissue 201 – Operations and Runnability Course April 22-24. Remember to reserve your seat by March 27 to save. 1.6 CEUs are awarded for completion of this course.
 
TAPPI Announces Prestigious Award Winners for 2015
Find about about the three winners for these notable awards. In addition to congratulating these winners, a new slate of 2015 TAPPI Fellows will be honored.
 
TAPPI Technical Division Scholarships Deadline Approaching
The deadline to submit applications for TAPPI Technical Division scholarships is February 15.
 
2015 TAPPI Fellows Luncheon Announced
Please R.S.V.P. online now or before March 6 for this event April 19 in warm, early-spring Atlanta, Ga., USA. Special hotel rates are only available on a first-come, first-served basis through March 27 and are subject to availability. Congratulations to the 2015 TAPPI Fellows!
 
PaperCon 2015 Breaking Records
PaperCon to feature a sold out exhibit area, co-location with TAPPI’s Centennial Celebration. Don't miss this event April 19-22 in Atlanta, Ga., USA.
 
TAPPI Press: The Corrugated Containers Manufacturing Process
This text will cost non-members nearly $200 dollars, but ordering now, members of the association are eligible to buy this comprehensive corrugated manufacturing guide for just $37.00. This book describes the entire process of manufacturing corrugated containers. In addition to detailed explanations, the book also features practical troubleshooting tips, a discussion of common problems and solutions within each major section.
 
In the Spotlight: Jeff Lindsay - Away to Shanghai
TAPPI member’s career delivers on a dream.
 
Shipping, Receiving and Warehousing Workshop in April
Event relocated to Savannah,Ga., USA, April 14-15; Program announced; Quad Graphics Exec to Keynote.
 
TAPPI Press: Get An Additional 10% off Paper Science and Technology Text
TAPPI is proud to partner with the Finnish Paper Engineers' Assoc. to promote this discount on a very informative subject matter in the industry.