Weekly Spotlight
Planning for the $2 Billion, 2 Million MT Pulp Future in Uruguay

Over the Wire

TAPPI

Thursday, December 20, 2018 - Member
Cristini
The new pulp mill would have various positive impacts on Uruguay. The mill’s location is in the least developed area of the country, potentially providing a major spur for rapid regional development similar to the earlier example of Fray Bentos. New pulp mill site is est. to increase entire national GDP by 2%. It would boost the local economy and fuel the growth of hundreds of small and medium sized companies.
 
Suggestions for Judging Price Values Relative to Corrugated in 2020s
Prices for corrugated boxes have been increasing at an estimated annualized rate of 6.8% in the three years to 2018, hurting buyer power. While rising demand has afforded suppliers the leverage to raise prices, shifts in their overall production costs have largely been responsible for the price increase.
 
With Brand Repositioning, GL&V Becomes GLV
GL&V USA Inc.
Global solutions provider for the pulp and paper industry, GLV, has announced the rebranding of its formal company name and logo. Formerly known as GL&V, the new brand reflects GLV’s venerable history while aligning the company for long-term success in pulp and paper production. GLV’s new look represents a renewed, unified and global approach to delivering a top-of-the-line experience for the current and future generations of pulp and paper customers.
Learn more about GLV’s new look
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Market Roundup
AF&PA November 2018 Containerboard Report
Containerboard production was up 3.2% compared to November 2017 and up 1.9% ytd. The month-over-month average daily production compared to September 2018 was 3.4% higher. The containerboard operating rate was 96.0%, 1.4% points lower than the same month last year. Production for export increased 5.2% from October 2018 and was up 0.9% ytd.
 
AF&PA Releases November 2018 Boxboard Report
Containerboard production was up 3.2% compared to November 2017 and up 1.9% year-to-date. The month-over-month average daily production compared to September 2018 was 3.4% higher. The containerboard operating rate was 96.0%, 1.4% points lower than the same month last year. Production for export increased 5.2% from October 2018 and was up 0.9% year-to-date.
 
Merichem Company
Pulp & Paper
Interfor Amends Share Buyback Program
Amended NCIB will allow for the purchase during the twelve-month period that commenced on Mar. 7, 2018 and ends on Mar. 6, 2019 of up to 6,934,356 common shares, which represents 10% of the company’s public float as at Mar. 1, 2018. The amended NCIB increases the maximum number of common shares that may be repurchased by an additional 3,434,356 common shares.
 
Koehler Launches Research Partnership with TU Darmstadt
Koehler has already laid the foundation with an investment of over 300 million euros in its Kehl mill, where the company plans to produce paper-based solutions with special barrier properties. The objective is to replace plastic with sustainable paper solutions wherever possible and practical.
 
Mercer Intl. Completes Acquisition of Daishowa-Marubeni
DMI owns 100% of a bleached kraft pulp mill in Peace River, Alberta and has a 50% interest in the Cariboo Pulp and Paper Company, a joint venture which operates a bleached kraft pulp mill in Quesnel, British Columbia.
 
Negotiations Begin to Restart Fort Frances Mill in Ontario
Repap Resources Group describes itself as a private investment group that is partnering with 4Front Capital Partners Inc., an investment bank in Toronto. Repap’s management team consists of professionals with more than 180 years of combined senior executive experience in the pulp and paper industries. 263 jobs to return.
 
Old Town Receive $12million in Tax Credits for Mill in Maine
A Chinese paper firm that bought a Maine mill is slated to receive $12 million in tax credits. About 130 jobs are involved as a result of what was originally a process started by acquisition of Old Town Mill from OTM Holdings for an undisclosed amount.
 
SCA Notes Successful Investment in Autonomous Forestry Machines
The forest industry is now entering into the development of automated work tasks. With the Auto2 project, the forest industry wants to use the tech to develop the machines that carry the harvested timber to the forest road. Auto2 will begin by focusing on the machines themselves, giving them capability to plan their driving, move through the terrain and make sure that there is a safety zone around the machine so that no one is injured.
 
Södra Cell Värö Pulp Mill Ensures Availability of Drying Machine with New Online Monitoring
With sixteen parallel channels for vibration measurement and extensive functionality to meet the needs for a variety of applications and measurement configurations, Intellinova Parallel EN is a highly efficient system. High-quality condition data with HD technology makes Intellinova Parallel EN ideal for integration into Industry 4.0.
 
UPM, United Bankers Sign Contract on Forest Partnership
"United Bankers is the fastest growing player in the forest estate market and our target is to grow also in the future. Deepening cooperation with UPM brings synergy to our forest management. As a responsible and competitive actor, UPM is a natural partner for us and the contract is thus also to the benefit of our fund owners," stated United Bankers’ CEO Patrick Anderson.
 
Warehouse Specialist
Containerboard/Packaging
Bag-in-Box Flexible Packaging: Solution for Surviving E-Commerce Distribution
There are more touchpoints in the e-commerce distribution channel – packages are repeatedly handled and repacked before reaching the consumer. Liquid products in traditional rigid containers are at the biggest risk of being damaged in transit with plastic pumps, caps or nozzles breaking, shattering or unthreading.
 
Laakirchen Papier Restructured its Sales
During the past two years, Laakirchen Papier (Austria) has been characterized by numerous changes. For example, in the spring of 2018 its sales operations were restructured in order to facilitate a still more targeted response to customer requirements. Recent reporting of similar types of industry events by OTW suggests this is for optimizing focus on a growing paperboard segment while their printing paper demand must maintain demand requirements.
 
Sealed Air Announces Reinvent SEE Strategy
"By improving how we innovate, buy, make, and solve, we will address our customers’ most critical packaging challenges, lead the industry with sustainable solutions and make every customer a reference. We will create long-term value for our shareholders through consistent, profitable growth and increased earnings power." Focus is on 4 key initiatives.
 
Quad/Graphics to Close Franklin Plant
135 employees at the Quad/Graphics notified Dec. 7 that the plant will close Feb. 1. "The decision is part of the company’s ongoing strategy to produce work where it can achieve the greatest manufacturing and distribution efficiencies and in no way reflects the quality and performance of employees in the plant."
 
New Products
Stora Enso Introduces Sustainable RFID Tag Tech ECO™ for Smart Packaging
By tracking the traced, tamper-proof technology that is integrated through the RFID tag with a paper label, the manufacturing process becomes more scalable and, as result, also more cost-effective – all without compromising on performance and reliability. ECO™ sustainable, and smart label seeks to revolutionize many sectors of traceable that go through layers of shipment to customer.
 
Sustainability
Hawesville Water Conservation Efforts Earn AF&PA Award
Hawesville Mill applied continuous improvement principles to make small, relatively inexpensive upgrades, repairs and process changes that not only save money but, more importantly, also conserve vital water resources for our operations and the ecosystem around our facility.
 
Consumers and Media Considering Packaging Material Impact on Surprising Level
The high level of consideration of sustainably sourced packaging being realized and then welcomed with extensive coverage by encouraging media boosted papermaking heavily (and continues to) as an emerging (possibly headlining) story of 2018. A leading predicted driving factor of the 3.5% (low-end) to 5%+ (high-end) predicted CAGR of the paper packaging industry.
 
Costco Joins How2Recycle and the Sustainable Packaging Coalition
"Costco’s private-label brand encompasses a diverse portfolio of product categories. By joining How2Recycle, Costco is empowering their members to properly prepare a wide array of packaging types and materials for recycling. Costco is well poised to help recover large quantities of material by featuring consistent, accurate recycling messaging on package," said Caroline Cox, How2Recycle project associate.
 
Stora Enso Makes an Environmental Investment in Sweden
At Skoghall Mill, water used in the production of cartons, small particles of wood fiber remain. By expanding the plant, the separation of sludge is improved, which in turn improves the quality of the water that is returned to the near-by Lake Vänern. The sludge can also be used as biofuel.
 
Stora Enso Top-Ranked Again in CO2 Management
The Transition Pathway Initiative (TPI) assesses how the largest paper producers globally are progressing in the transition to a low-carbon economy. For the second time in a row, Stora Enso was top-ranked in both management quality and carbon performance.
 
Honeywell
Energy
Ahlstrom-Munksjö Improves Energy Efficient Co-Generation in Turin Linerboard Operation
"The new installations will allow a significant increase in self-production of energy, enabling the manufacturing site to produce internally almost its entire power need, while the heat recovery steam generator will cover its full steam demand. The project will not have any effects on the production of the plant, as it’s going to be installed in parallel to the existing power plant and will be connected to the process when it will be ready to operate at full capacity," said VP Giorgio Mirone.
 
People
Huhtamaki Appoints Fiber Packaging EVP
Michael Orye joins Huhtamaki from Amcor, where he has held various leadership positions in South Africa, Europe and USA since 2002. His current position is Managing Director, Sub-Saharan Africa, Amcor Flexibles. Prior to that he has worked as VP Medical Europe, Managing Director Amcor Flexibles Winterbourne as well as held general management and business development roles in Amcor Flexibles USA.
 
Metsa Tissue Appoints Interim SVP, Away from Home
Currently Jani Sillanpää is in charge of the Away From Home sales. He is located in Mariestad, Sweden. He has been working on marketing and sales positions for Metsä Tissue since 2006. He will be part of the Metsä Tissue's Management Team and will report to Metsä Tissue's CEO Esa Kaikkonen. Appointment effective immediately.
 
Naylor Association Solutions
TAPPI News
Dr. Kocurek and TAPPI Set to Help Improve Your P&P Knowledge
You’ll learn the technology of what happens and why throughout the paper production process.
 
Registration Filling Quickly for TAPPI's Kraft Recovery Course
Learn from huge panel of world-class industry experts in kraft operations... while in Florida!
 
TAPPI Industry Career Center: OVAL International Seeks Sales Representative
OVAL International is accepting applications for a Sales Representative at its Fort Payne, AL, USA location.
 
Team Up in Training with Blown and Cast Film Extrusion Experts
A team of flexible packaging experts will teach the latest tips, techniques, and technologies in this Blown and Cast Film Extrusion Course in Savannah this March.