Over the Wire

Country's BEK pulp exports were down 6.4% y/y in July, but up 12% ytd.

 

Economists predict late June's Brexit, in which citizens of the U.K. voted to leave the EU, will slow down the U.K. economy as well as those across the EU and China. Indonesia’s EU timber exports, affected by Brexit, could shrink by 2%, or $12 million this year. U.K. was a supporter of licensing Indonesian forests for EU supply.

 

This past month the analysts at Technavio forecast the global alcoholic beverage packaging market to grow at a CAGR of 4.81% during the period 2016-2020. Growing prices of raw materials such as wood/paper pulp may increase the manufacturing cost of packaging as well as reduce vendor margins.

 

July 2016 pulp imports were at 1.82 million metric tons, up 7.7% y/y and 15.5% vs. June.

 

Material is growing at more than 7% CAGR from 2016 to 2024. Increasing application scope in pharmaceuticals and cosmetic sectors accompanied by FDA approval as safe ingredient to consume are among the key factors driving global MCC market size growth.

 

The deal adds three Higdon account managers, one inside sales representative, and one driver/warehouseman to the Mac Papers Birmingham, Ala., USA, branch staff. Charlie Higdon, former owner, will assume the position of packaging sales manager.

 

The demand for wallpaper base is decreasing globally, and Metsä Board is focusing on paperboard, meaning that wallpaper base production is not included in the company’s core business operations. In 2015, sales from Kyro’s paper business operations totaled EUR 50 million, and the operating result was EUR -5 million.

 

This strategic plan will allow the company to modernize the wood debarking, chipping, and chip distribution systems at the Skowhegan, Me., USA, site. This capital investment will improve reliability, reduce white wood losses and costs, as well as enhance efficiency gains through the increased production of wood chips.

 

ABB’s delivery for both machines at the new Baileyville, Me., USA, mill includes quality control systems, tissue machine drive systems, 800xA control systems, collaborative production management, as well as motors, drives, and electrification equipment and infrastructure, and a resident service contract.

 

Stora said late this past month it started a review on how to manage the paper division facing increasing cost pressure and declining demand. Analysts took the move as a sign that Stora is stepping up its efforts to reduce exposure to the business. An industry researcher said that no one wants to put more capital in the business.

 

As part of the modernization of the company's business with Stora Enso, Hector Rail will insert freight wagons with larger profile and introduce new locomotives, which means better environmental adaptation and more streamlined operations for shipments between Norway and Sweden.

 

"IQ Moisturizer is very important for our PM 2. Before our decision, we visited another mill where it has been installed and were very impressed by its performance. We expect the solution to solve our current curl issue and help us to increase the machine speed to the targeted level," said the GM of Zhejiang Dongda Paper.

 

New tissue machine has a trim width of 2.85 meters and a design speed of 1,600 m/min. It was initially scheduled to start up at the end of 2015.

 

The corrugated box plant will add 75,000 sq.-ft. to its Grand Rapids, Mich., USA, facility. The company is also hiring new employees and is trying to lure them away as experienced workers from other jobs. Soon the company will reimburse employees up to $2,000 a year for childcare costs.

 

The Greycon system plans, schedules, trims and executes the production. Working seamlessly with SAPtm R3 it effortlessly transitions between the different modules. Since implementation, the Greycon system has created significant cost savings for the Greek company and optimized productivity.

 

These new systems are for medium-density fiberboard production lines 1 and 2 at the Hat Yai mill, Thailand. Start-up is scheduled for September 2017. Pressurized refining system to have capacity of 30 bdmt/h.

 

North America is a key market for the company. The new physical presence in the U.S. in Stamford, Conn., will facilitate optimization of service and sales to existing and prospective customers. The office will be led by Michael Walsh, formerly with Stora Enso North America.

 

"...Smurfit Kappa has demonstrated the company's relentless drive to innovate. We excel at developing designs that address the motivation of the end consumer, ‘from the shelf backward’. Everyday we explore what will appeal to the consumer and help our customers’ sell their products," said the CEO of Smurfit Kappa Benelux.

 

The first level offers participants a systematic approach to foundational understanding of temperature assurance packaging. The second level, the "Professional Course," is a one-day, live training conducted by university professors, laboratory engineers, and industry experts with hands-on instruction and interactive activities.

 

Chris Augustine, WestRock director of corporate communications, said the new Germantown warehouse facility would replace the Milwaukee, Wis., USA, operation. Determination on what the company would do with the Milwaukee facility hasn't been made. WestRock also operates a sheet feeder plant in the city.

 

The reduced surface contamination that comes from an application of silver nanoparticles on paper trays raises the shelf life of eggs from 10-14 days to 25-30 days. The concoction can only be applied to paper trays.

 

Adding clay nanoparticles to paper increases the number of bonds between paper fibers which results in an increase in tensile, busting, and crush strengths. However, the amount of nanoparticles should be optimum to prevent a decrease in tearing resistance.

 

Specially coated paper is used, meaning the material can be processed on quicker, vertical machinery. Suitable for dry to lightly moist products with a total weight of 0.5 to 2.5 kilograms. The bag has a trendy look and possibilities for printing are optimal. This past month the material saw its first commercial use packing potatoes.

 

Latvia’s Brum Brum wooden bicycle for kids seems to have taken the idea of children playing with the packages their toys come in a step further by transforming the corrugated box it comes in into a fun, playhouse-like contraption that serves as a parking spot for the bike when not in use.

 

One project at the Biron, Wis., USA site will convert Biron’s No. 4 boiler from high-sulfur coal to natural gas. The second project will modify the TMP reboiler to reclaim unused waste steam from the thermomechanical pulping process to heat fresh water supplying the paper machines, decreasing the demand on both coal and natural gas.

 

The company's new CAD 7.4 million project involves the capture of up to 30 metric tons of CO2/day (tpd) from Resolute's softwood kraft pulp mill, the majority of the CO2 being transported to a neighboring world-class vegetable greenhouse. In addition to lowering greenhouse emissions, it will improve greenhouse performance.

 

During a private meeting between a delegation from WWF Italy and Sergio Mattarella, president of the Republic, held to celebrate the 50th Anniversary of the environmental NGO in Italy, WWF presented the report that quotes Sofidel as a model for corporate environmental sustainability.

 

According to the AF&PA, a new E.U. proposal reinforces the need for the U.S. to appropriately recognize the benefits of biomass energy. The uncertainty caused by EPA is putting the U.S. out of step with the rest of the world, and potentially puts American workers and job creators at a competitive disadvantage.

 

GE is supplying the LM2500+ gas turbine unit and a 20+ multiyear services agreement to help Bio-PAPPEL improve reliability/availability of the turbine as well as paper production. GE will provide remote monitoring and diagnostics monitoring of unit to ensure the plant’s increased availability by extending maintenance intervals.

 

The Solar Park has more than 250,000 individual photovoltaic panels and during daylight hours can provide the UPM Shotton site with 100% of its output. The paper mill is also connected to the National Grid and is able to sell-back some of its unused energy, for example, during maintenance time when the PM is not running.

 

"It was the equipment associated with a beater. That was where the heat source was. It created the smoke and took a good many resources to find the source, which is why we had that many departments responding," a G-P spokesman said. Most operations were back in action the next day after firefighters worked for hours.

 

Unlike traditional data attacks, a compromised information control system can impact a plant's physical operations, causing significant financial and reputational risk, and potentially even threatening lives.

 

The company received information that Member of the Supervisory Board of Arctic Paper S.A., Rolf Olof Grundberg, will resign from his position on the Supervisory Board of the Company effective September 14 of this year.

 

"The immediate future presents us with a whole new set of issues as we try to unravel the real impact of Brexit... [His] previous experiences and areas of expertise will allow him to influence policy makers in both the U.K. and Europe to secure the best for our businesses," said the president of Confederaton of Paper Industries.

 

Mannonen previously worked as director, Sales and Marketing within UPM Biofuels and was in that role since 2014, responsible for commercial strategy and product launches in Biofuels business. Mannonen has worked for UPM since 2011 in leadership positions and before joining the company she worked for Lindström and Biohit.

 

David J. Paterson will retire as the Chairman and CEO of Verso effective August 31. Verso’s board of directors has begun the search for a new CEO. In the meantime, Verso’s board of directors will establish, as of September 1, an Office of the Chief Executive to lead the company until a new CEO comes on board.

 

The association would like to remind everyone who receives this newsletter that all items in the TAPPI News section are available in full detail for both members and non-members! Just remember to click the link to "learn more..." to get full information about each TAPPI News story.

 

TAPPI is already filling seats for two exceptional courses in early and mid-October offered expressly to those in tissue and towel operations.

 

Wisconsin Instutute – Steven’s Point is offering an important workshop October 27-28 that digs into the essentials of paper formation, fibers and floccing, and demonstrates what you can do to improve your end products.

 

Are you struggling with how to move your bioproduct project from proof of technical concept to commercialization? IBBC 2016 is bringing together industry leaders to head a panel discussion addressing key critical elements required to put together a successful biobased business plan.

 

Every eight years, mechanical pulping experts gather in the U.S. for the International Mechanical Pulping Conference (IMPC) to discuss how the industry can best meet changing market and regulatory conditions world-wide. Key critical topics such as alternative mechanical pulp uses will be discussed during the three day event.

 

Save 15% on The Mechanics of Rollers now through August 31.

 

Rayonier Advanced Materials is currently seeking a Product Development Engineer for its Jesup, Ga., USA, location.

 

TAPPI will be performing its fiscal year-end inventory audit starting August 23. As a result, TAPPI Press orders will not be processed from August 23 through August 31.