Weekly Spotlight
SCA to Acquire Wausau Paper for $513 Million in Cash

Over the Wire

TAPPI

October 15, 2015
GapCon
SCA will acquire Wausau for $10.25 per share or total consideration of $513 million (approximately SEK 4.2 billion) in cash. The boards of directors of both companies have unanimously approved the definitive merger agreement.
 
Metsä Group Lays Foundation Stone for Super Pulp/Bioproduct Mill in Finland
At a cost of some EUR 1.2 billion, the pulp/bioproduct mill is the largest investment in the history of the forest industry in Finland. It will produce 1.3 million metric tpy of pulp to be used as raw material for paperboard, tissue, printing paper, and specialty products. All of the side streams from the bioproduct mill will be utilized in the ecosystem that will be formed by various companies around the mill.
 
BDC Symposium Held in Ottawa, with Ensyn Facility Tour
In addition to its efforts to broker partnerships for deployment projects, BDC holds two symposiums each year to provide education in areas that its membership has interest and includes a related tour of a leading edge bio-facility.
 
UMPPF Awards $300,000 in Scholarships at Fall Banquet
The students represent majors including chemical, mechanical, electrical, biological, and civil engineering, as well as mechanical and electrical engineering technology. These students are required to complete at least two semesters of co-op or internship experience in the pulp and paper industry.
 
How the Paper Industry is Marketing to Win Customers Back
The "How Life Unfolds" campaign has been getting more media attention as they continue to release effective ads described as successfully redefining the image of a need for paper in a digital society. WOSU radio in Columbus, Ohio, USA, explained how the campaign challenges the notion using paper is something to feel guilty about.
 
Consumer Reports Test Top Toilet Paper Brands
These latest tests covered 21 different traits of performance. Testing is controlled for temperature and humidity so each product is tested under the exact same conditions. Strength and softness of different brands are discussed in an interview about the research project that aired this week on WLS-TV in Chicago.
 
TAPPI Yankee Dryer Committee Set for Nov. 3-4 Meeting
During this meeting, the world’s leading yankee dryer owners and service providers will discuss opportunities to improve yankee dryer safety, productivity, and overall business results. There is no charge, but attendees must register.
 
Bulk up Your Tissue Knowledge
TAPPI Tissue 101-Properties and Processes Course offers an introductory-level curriculum designed for anyone who wants to strengthen their knowledge of overall tissue operations.
 
Tissue360° Forum Invites Speakers
Be part of the only peer-reviewed tissue technical program in North America to be held in Cincinnati, Ohio, USA, on May 16-18, 2016.
 
Naylor Association Solutions
Market Roundup
U.S. Tissue Tracker: Production Rises Driven by Overseas Shipments
Converted product shipments are higher, parent roll production increased, and there were lower operating rates. The tissue market can support additional capacity (in moderation).
 
Kaolin, Metakaolin Market to Reach $5.3 Billion by 2019
Based on application analysis, the report shows paper as the largest application segment of the kaolin market. This segment took up more than 40% of the market in 2012 due to its growing demand in emerging countries such as China and India.
 
China’s September Pulp Imports Second Highest Ever
China’s September 2015 pulp imports were the second highest ever, according to data released by the China Customs Bureau. September imports were 1.75 million metric ton, representing an increase of 12.5% y/y.
 
Pulp & Paper
Catalyst to Seek Expedited Review of U.S. Countervailing Duties
The DOC imposed preliminary countervailing duties on imports of supercalendered paper from four Canadian paper producers—Port Hawkesbury Paper, Resolute Forest Products, Irving Paper, and Catalyst Paper—on July 27, 2015.
 
Futura Receives Several New Orders for Andromeda Concept
According to Head of Technology and Futura Lab Director Giovacchino Giurlani, the Andromeda concept represents a complete new converting solution that redraws the boundaries for tissue roll products converting.
 
PAPCEL to Deliver New Tissue Line to Saudi Arabia
In addition to delivery of machinery and equipment, the contract also includes engineering services, delivery of electro installations, and a turnkey machine line assembly. So far, this is the largest delivery of the PAPCEL/ABK Group to the Middle East.
 
PCMC to Supply Amica Unica Line to Metropolic Paper for Tissue Converting
The new machine design is based on the innovative rewinding concept, Dual Geometry, a variable system that allows the user to convert any kind of rolls from 90 to 350 mm diameter.
 
Portucel to Invest EUR 120 Million in New Tissue Line
The Group intends to develop a business model based on direct integration of pulp into tissue production, and the location of this investment will be the Cacia mill site. The project expands the Portrucel Group’s global tissue production capacity to 130,000 metric tpy.
 
Resolute Completes Technology Selection for New Calhoun Tissue Mill
In addition to the previously announced Valmet Advantage NTT tissue machine, Resolute has committed to purchasing the new Futura Andromeda converting technology and Infinity packaging solution.
 
Sappi North America Releases Standard 6 Guide on Binding Techniques
The Standard 6 is filled with tips and techniques for achieving optimum results, with several actual physical binding examples. This educational reference tool is aimed at professionals in print communication, showing how technical binding considerations can direct and enhance creative decisions.
 
Second MODULO-PLUS ES Comes Online at Liuzhou Liangmianzhen
In just a few more days, the company will follow with the startup of the TT WIND-M high-speed slitter rewinder. The second tissue line at the site in China was also successfully brought on steam according to schedule.
 
Sofidel’s Swedish Tissue Completes Major Converting Plant Upgrade
Works began in January 2014 and were completed in June, when the initial tests were carried out. This project was particularly challenging, Sofidel noted, as its implementation involved the diversion of the Kisa River by approximately 300 meters.
 
Valmet Celebrates 50th Kappa Analyzer Startup in South America
Installed in the mill's second fiber line, a greenfield project supplied by Valmet, the Kappa Q analyzer measures Kappa and brightness from 6 points, starting at the blow line through to bleaching. The Valmet Kappa Q utilizes patented sweep technology to measure kappa and brightness with a unique two-point calibration method.
 
Containerboard/Packaging
Carlyle's Multi Packaging Solutions Sets Terms for $300 million IPO
Multi Packaging Solutions International, which was founded in 2005 and booked $1.6 billion in sales for the 12 months ended June 30, plans to list on the NYSE under the symbol MPSX.
 
DS Smith Acquires Cukurova Group’s Greek Corrugated Packaging Business
This business is the clear market leader in Greece with a turnover of approximately EUR 80 million from three production facilities. It has a strong focus in the FMCG sector and excellent customer relationships.
 
Grupo Gondi and WestRock Form Joint Venture in Mexico
As the majority shareholder, the Grupo Gondi senior management team will manage the joint venture, and WestRock will provide technical and commercial resources to the combination. The business will employ 6,800 people.
 
International Paper to Exit Chinese Coated Board JV in China
The company has entered into a definitive agreement with its Chinese coated board joint venture partner, Shandong Sun Holding Group Co., to sell its 55% equity interest in the joint venture (IP-Sun JV). As consideration for the sale, IP will receive RMB 149 million (approximately $23 million) in cash.
 
Kadant Awarded $7 Million Order for Recycled Fiber Processing Line
"We are pleased to have been selected to provide this turn-key recycled fiber processing line for a major rebuild project in Southern Europe," said Jonathan W. Painter, president and CEO of Kadant.
 
Metsä Board Starts Installation of New Folding Boxboard Machine at Husum
From mid-October until the beginning of January 2016, the company is installing a new folding boxboard machine, BM1, at the mill in Sweden and closing down paper machines PM 6 and PM 7.
 
New- Indy Containerboard to Install Valmet Pulp Analyzer
This will be the first 100% recycled furnish containerboard machine in the world to employ the prediction of important linerboard and corrugating medium sheet strength tests through online fiber analysis.
 
WEIG-Karton Boosts Board Machine Performance with Web Inspection
"Monitoring the forming area is very important, as typically 80%-90% of web breaks originate there. Collaborating with innovative clients such as Weig-Karton pushes our process and quality understanding forward, beyond conventional boundaries. This is the only way to improve machine efficiency and product quality," Procemex's CEO said.
 
Nonwovens
Voith, Truetzschler Start up Flushable Wipes Line at Hangzhou Nbond
"We were completely satisfied by the know-how and experience of Voith and Truetzschler. Thanks to the professional ability and excellent professional dedication of their technicians, the project ran both quickly and smoothly," said. Zhang Jie, GM of Nbond.
 
New Products
Klabin Introduces Line of Recyclable Paper Sacks for Coffee Packaging
Klabin’s paper sacks allow the coffee to be stored for longer periods, making it easier to optimize space at warehouses as well as transportation solutions, while conserving the original aroma, flavor and quality of the beans.
 
Naylor Association Solutions
People
Greif Elects Watson New President, CEO
The company announced that the board has elected Pete Watson to succeed David Fischer as president and CEO, effective November 1. Fischer will remain with the company through December 31 to assist with the transition process.
 
Michelman Appoints Smith Bogart to Board of Directors
Dr. Karen A. Smith Bogart was previously SVP at Eastman Kodak Co. She was responsible for Kodak’s businesses and operations across Asia as chairman and president of Greater Asia, located in Shanghai.
 
TAPPI News
TAPPI Industry Compensation Survey Commences October 19
In as little time as it takes to drink a cup of coffee, you can add your data to help make this the most comprehensive salary analysis in the industry.
 
Who Will You See at PEERS?
See who is speaking, who is attending, and who is exhibiting at the 2015 PEERS Conference.
 
TAPPI’s Exceptional Kraft Recovery Course Opens Registration
Learn solutions to common issues, such as corrosion, ringing, and fouling, as well as cutting-edge strategies to improve recovery, reduce costs, and reduce environmental impact at your mill.
 
Resolve to Solve with TAPPI–IDCON
Check out these two highly informative courses for industry maintenance practices offered in November. Special discounts on hotels are available for those who make their reservations by October 18.
 
Speak at PaperCon 2016
Give your career a boost by speaking at the largest program for the pulp and paper industry.
 
TAPPI Standards, TIPS, and Useful Methods Available Online
TAPPI Technical Information Papers (TIPs) are documents containing specialized information (e.g., data, software, calculations) used in the manufacture, evaluation, and description of pulp, paper, and related products, written in a standardized format which is readily usable by the industry.
 
TAPPI Industry Career Center: Voith Paper seeks Product and Service Specialist
Voith Paper is currently seeking a Product and Service Specialist to service its Mid-Atlantic and Northeast territory customers.