Voith Paper

Over the Wire


Metso Paper
Weekly Spotlight

Smurfit-Stone Container Corp., Chicago, Ill. USA, reports that it has successfully completed its financial restructuring and has officially emerged from Chapter 11 as a newly reorganized, publicly traded company that will begin trading on the New York Stock Exchange under the symbol SSCC, effective today (July 1). The company's Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on June 21, and recognized by a Canadian court order, has become effective. All outstanding closing conditions have been satisfied or waived.

"This is an exciting day for Smurfit-Stone. We have successfully completed our financial restructuring in just 17 months and we exit Chapter 11 as a well-positioned industry leader with a healthier balance sheet and improved cost structure," said Patrick J. Moore, CEO. "We are re-energized, committed to serving the needs of our customers, and achieving long-term profitable growth for our shareholders."

In conjunction with the company's completion of its financial restructuring, it announced a new board of directors, including Ralph F. Hake, who has been appointed non-executive chairman of the Smurfit-Stone board of directors. Hake is the former chairman and CEO of Maytag Corp. Additional board members include:

  • Timothy J. Bernlohr, former president and CEO of RBX Industries
  • Terrell K. Crews, former EVP and chief financial officer of Monsanto
  • Eugene I. Davis, chairman, CEO and chief restructuring officer for Pirinate Consulting Group
  • Michael E. Ducey, former president and CEO of Compass Minerals International
  • Jonathan F. Foster, managing director, Current Capital
  • Ernst A. Haberli, former president, commercial operations, international, Gillette Co.
  • Arthur W. Huge, former president and CEO of Menasha Corp.
  • Steven J. Klinger, president and COO, Smurfit-Stone
  • Patrick J. Moore, CEO, Smurfit-Stone
  • James J. O'Connor, former chairman and CEO of Unicom Corp. and the former Smurfit-Stone lead independent director.

As previously announced, in accordance with the terms of the Plan of Reorganization, Smurfit-Stone's previous common stock and preferred stock have been cancelled. However, the Plan provides that 2.25% of the New Smurfit-Stone Common Stock Pool will be distributed pro rata to the company's previous preferred stockholders and 2.25% of the New Smurfit-Stone Common Stock Pool will be distributed pro rata to the company's previous common stockholders. Upon completion of all distributions to former creditors under the Plan (as well as holders of the former preferred stock and the former common stock), the company will have approximately 100 million shares of common stock issued


Papier- und Kartonfabrik, Germany, is installing solar photovoltaic modules on the roofs of warehouses No. 5 and No. 6 at its containerboard and paperboard mill in Varel, Germany, The total combined roof solar plant capacity will be 998 KWh, installed on a surface of approximately 18,.000 square meters. Some 8,300 photovoltaic modules manufactured by Inventux are being installed in row-parallel position.

In addition to cutting overall purchased power, the mill's solar plant will reduce related emissions by up to 750,000 kg of carbon dioxide per year, equivalent to a 6,250,000 km motorway-drive with a car, which has a standardized carbon dioxide emission of 120 g/km. The project is the latest in Papier- und Kartonfabrik's ongoing efforts to increase the share of renewable energy within its energy mix. In 2006, the company installed two biogas engines with 1 MW electrical output each, fueled exclusively with biogas from the mill's water purification plant.

Papier- und Kartonfabrik's Varel mill has a production capacity of 700,000 metric tpy of paperboard a year, with two board and corrugating-paper machines. It produces two main types of corrugated paperboard in various strengths and weights, known as JadeWelle and JadeLiner, made from 100% recovered papers.


Marine Corps Reservist Lt. Col. Curtis Lee recently presented his employer, Sonoco of Hartsville, S.C., USA, with the Employer Support of the Guard and Reserve (ESGR) Patriot Award from the U.S. Department of Defense (DoD). The ESGR agency was established by the DoD in 1972, with the mission of gaining and maintaining employer support for Guard and Reserve service by recognizing outstanding support, increasing awareness of the law, and resolving conflicts through informal mediation. ESGR volunteers provide free education, consultation, and, if necessary, mediation for employers of Guard and Reserve employees.

"They make sure my family's whole, and we have benefits, which they're not obligated to do," Lt. Col. Lee said. "Sonoco is by far the best company I've worked for." Lt. Col. Lee served in Iraq in 2007 and recently returned from a deployment to Afghanistan, two deployments in a four-year period. At Sonoco, he works in the industrial products division. Across the state, hundreds of companies with similar support systems for their workers have been awarded this honor by service members.

"It makes such a difference to know you have a job to come home to," Lt. Col. Lee's spouse, Barbara Lee, said.

In the photo below, (l-r) are: Marcy Thompson, division VP/GM, Sonoco Recycling; Lt. Col. Curtis Lee; Jerry Cheatham, director, financial analysis, Industrial Converted Products; and Joe Smoak, executive director for S.C. Commission for Employer Support of the Guard and Reserve. In receiving the award, Thompson noted that "Sonoco's culture is such that it makes the decision very easy because the sacrifice the employer makes is minor compared with the sacrifice Curtis makes and his family makes."



The United Steelworkers (USW) union, Pittsburgh, Pa., USA, says that a study released this week documenting illegal subsidies to Chinese paper producers strengthens the argument that "U.S., policymakers must intervene now to preserve the domestic paper industry and hundreds of thousands of good-paying jobs." The report, "No Paper Tiger: Subsidies to China's Paper Industry from 2002-2009," released by the Economic Policy Institute (EPI) documents $33 billion in government subsidies to the Chinese paper industry for pulp, coal, electricity, and recycled paper, enabling the Chinese paper industry to sell its products at artificially low prices.

"That falsely low-priced paper dumped on the U.S. market makes American-manufactured paper appear uncompetitive, forcing plant closings, killing jobs, and damaging communities," USW noted. "With so many Americans out of work, we cannot continue to hemorrhage paper manufacturing jobs because China violates international trade laws with massive subsidies to its industry," said USW International President Leo W. Gerard.

USW pointed out that "China's government-controlled economy enables it to subsidize industries in ways never considered in market-controlled economies like the U.SA. In addition, government subsidization of industry violates international trade regulations." Gerard added that "There are too many industries—glass, paper, tire, tubular steel—where China upsets the global market by grossly and systematically subsidizing its production.

"Free trade must be fair and rules-based or manufacturing in North America will further deteriorate, throwing millions more Americans out of work," Gerard continued. "The only solution is for U.S. lawmakers to demand China obey international trade laws or to impose sanctions on Chinese imports that will have that effect."

The USW and three paper companies—Appleton Coated LLC, NewPage Corp., and Sappi Fine Paper North America—this year won a legal suit seeking relief from the effects of the Chinese subsidies in the coated paper sector.

Market Roundup

Chinese OCC pricing rose $15/ton last week, following a $5 rise in the prior week, according to Mark Wilde, senior analyst with Deutsche Bank. If the rally continues, it places cost pressure on containerboard, but could also aid a third quarter price hike, he adds. Wilde further notes that in the gloabl containerboard arena, Smurfit-Stone Container Corp., Chicago, Ill., USA, will emerge from bankruptcy this week (see news article above).


In the market pulp arena, Wilde notes that there could be a shift in momentum. With global pulp inventories rising by two days of supply in May and Asian markets (especially China and Korea) still weak, it appears that market pulp prices in July will remain flat at June levels, he explains. In the past 13 months, pulp prices have risen to all-time highs, driven by supply shock from February's Chilean earthquake and strong Chinese demand during 2009. In June, NBSK prices rose $20/metric ton to $1,020/metric ton in North America, $980/metric ton in Europe, and $890 - $900/metric ton in China. "However, with most Chilean mills back on-line, 2 million metric tons of restarts elsewhere, and most of the North American spring downtime behind us, pulp supplies could exceed demand in the coming months. The result is apt to be lower prices. There are already reports of increased discounts in spot markets. At the moment, Chinese markets are softer than in the U.S. and Europe. Hardwood pulp is weaker than softwood," Wilde says.


Improving demand supply dynamics have boosted U.S. newsprint prices for the tenth consecutive month, according to Wilde. List prices in both the east and west coasts rose $20/metric ton (announced = $25/metric ton) in June to $615/metric ton and $580/metric ton, respectively. East coast prices are now up 41% from the August 2009 low of $435/metric ton. The pricing disparity based on region and customer size still continues, with reports suggesting that prices for 30-lb newsprint range from as low as $540/metric ton in the West to more than $650/metric ton in the East, Wilde reports. Even at current price levels, margins for most mills will be quite low as most of the large customers are linked to the extremely low western prices, he adds.


The supply and demand for Eucalyptus logs in Brazil has been in balance the past year, resulting in stable log prices in the local currency, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. As a result of the strengthening Real, log costs have gone up in U.S. dollar terms and were 25% higher in the 1Q/10 than in early 2009.

Five years ago, Brazil had some of the lowest wood fiber costs in the world in U.S. dollar terms, but since that time the Real has appreciated against the dollar with the result that costs for pulpwood traded in the open market in Brazil now are close to the global average hardwood fiber price index (HFPI), WRQ explains. Eucalyptus fiber prices in the 1Q/10 were about 60% higher than five years ago, it adds.

Demand for Eucalyptus logs has increased in some regions of Brazil not only from pulp and panel manufacturers, but also from some sawmills that are producing lumber from both pine and Eucalyptus for the construction market. The increased demand for logs has not changed stumpage prices much in the local currency, and it is not expected that they will increase much in the coming years because of the additional supply of wood that will be available from recently established plantations, according to WRQ. During the past five years, the area of Eucalyptus plantations has expanded by more than 7% annually.

The pulp industry consumes about 45% of harvested Eucalyptus logs, while an estimated 48% is used for fuelwood and for making charcoal for the steel industry, WRQ says. A growing but still small consumer of Eucalyptus is the sawmilling sector that last year used approximately 4% of the total harvest of logs.

There is still not much interest in utilizing Eucalyptus fiber for the manufacturing of wood pellets in Brazil, neither for domestic nor for export markets. Investments in pellet plants have been limited and are not likely to grow unless prices for wood pellets in the major export markets in Europe improves, WRQ notes. More information is available online.

Chesapeake Energy Corporation
Pulp & Paper

AbitibiBowater, Montreal, Que., Canada, announced that, in connection with its creditor protection proceedings and exit financing efforts, it has obtained approval of a backstop commitment agreement by the U.S. Bankruptcy Court for the District of Delaware. In May, the company reported that it had secured a backstop commitment from certain unsecured noteholders for a rights offering of up to $500 million, by which it would offer to eligible unsecured creditors new convertible notes with a seven-year maturity from the date of closing. Upon the effective date of the plan, the notes would be obtained upon exercise of the rights and convertible into common stock of the emerged company.

Before emerging from creditor protection, AbitibiBowater must obtain adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plans of reorganization. AbitibiBowater has commenced a process to obtain an exit financing package that will provide sufficient capital for the emerged company to manage business operations and execute its plans.

Ultimately, the company's plan of reorganization will require creditor approval and confirmation by the courts. Affected unsecured creditors who are entitled to vote will receive the court-approved disclosure and voting materials, which are expected to be mailed this month, subject to court approvals. More information about AbitibiBowater's restructuring process is available online.


Buckeye Technologies, Memphis, Tenn., USA, reports that its specialty wood cellulose and fluff pulp mill in Perry, Fla. (the Foley Plant), has returned to full operation following a power failure and outage on June 17. Chairman and CEO John B. Crowe said that "we are pleased that both of the Foley Plant's production lines returned to full production and have been operating at capacity since Wednesday, June 23. We continue to work with our customers to minimize the impact on their operations. The Foley organization responded in an extraordinary manner to bring the plant safely back to full operating capacity."

The company confirmed that it continues to expect the financial impact of the outage, excluding the effect of any insurance proceeds, to be in the range of a $4 million - $5 million reduction in pretax operating income for the quarter ended June 30. It expects earnings to be in the range of 24 - 27 cents per share for the quarter.

Crowe added that Buckeye "is working proactively and cooperatively with our insurance carrier to understand and document the extent of the loss. The company does have property loss and business interruption insurance with a single $2 million deductible and believes this event is a covered loss."


Corn Products International, Westchester, Ill., USA, is acquiring National Starch, a New Jersey-based producer of specialty starches, from AkzoNobel, The Netherlands, for $1.3 billion in cash. The acquisition, which has been approved by the boards of directors of both Corn Products and AkzoNobel, is expected to close in the third quarter, subject to customary regulatory approvals. The company expects to finance the transaction through cash, debt, and new equity.

National Starch had 2009 revenues of $1.2 billion from sales of specialty starches to both local and multinational customers in the papermaking, food, consumer, and industrial segments. It has 2,250 employees around the world and operates 11 plants in eight countries, including new geographies for Corn Products such as the U.K., Germany, Australia, and New Zealand. Corn Products has 8,000 employees and operations in 13 countries at 28 plants, including wholly owned businesses, affiliates, and alliances. In 2009, it reported net sales of $3.67 billion.

"Combining National Starch with Corn Products will create an ingredient solutions leader with nearly $5 billion in revenues," Ilene Gordon, chairman, president, and CEO of Corn Products noted. "The combined company will benefit from innovative technology, enhanced geographic scale, a broader and deeper product portfolio, and access to new market segments." The transaction is expected to generate cost synergies of at least $50 million, primarily from efficiencies in the areas of manufacturing, procurement, logistics, and general and administrative functions.

Gordon added that the acquisition gives Corn Products access to new markets such as Europe, and improves its scale and capabilities in many of its existing global locations. "We will be able to better serve our global customers with our enhanced geographic footprint and the addition of National Starch's technology. Further, we expect significant production efficiencies and cost synergies that will make us more competitive around the world.

"We are acquiring National Starch, not just because of its products and manufacturing assets, but also because of its experienced and dedicated people," Gordon added. "They bring to Corn Products exceptional know-how in ingredient development, solutions, and applications, along with proven marketing and customer service skills."


First Quality Tissue, Great Neck, N.Y., USA, announced that it has finalized details for the purchase of its fourth state-of-the-art Thru-Air-Dried (TAD) tissue and toweling machine. PM 4, to be located at First Quality's recently announced Greenfield tissue mill at Anderson, S.C., is projected to become operational by the third quarter of 2012. PM 3 is already under construction at the Anderson site and is scheduled to startup in August of 2011.

First Quality Tissue currently has two TAD machines located at its Lock Haven, Pa., facility manufacturing premium paper towel and bath tissue products, with a combined capacity of 150,000 tpy. Installation of its third and fourth machines will double the company's annual capacity to approximately 300,000 tpy. First Quality Tissue notes that four TAD machines (two at Lock Haven and two at Anderson) will put it in a strategic position to satisfy the needs of its customers for premium TAD towel and tissue products nationwide.


Mohawk Fine Papers, Cohoes, N.Y.,USA, is the presenting sponsor of The Living Principles website, an online portal intended to give the creative community a place to share and showcase best practices, tools, stories and ideas for enabling sustainable action, popularizing the efforts of those who use design thinking to affect positive cultural change. Originally conceived through AIGA, the professional association for design, The Living Principles framework aims to clarify the multiple, interrelated dimensions of sustainability and guide purposeful action in everyday design and business practice.

Drawing from decades of collective wisdom, theory, and results, the framework weaves environmental, social, economic, and cultural sustainability into an actionable, integrated approach that can be consistently communicated to designers, business leaders, educators, and the public, Mohawk explains.

"The Living Principles community site is a unique forum where leading design organizations and curious individuals are coming together to move the sustainability conversation forward across disciplines and around the world," says site creator Gaby Brink, founder and executive creative director of Tomorrow Partners, a strategic design agency. "Our aim is to celebrate the efforts of all our partners."


Norske Skog, Lysaker Norway, this week reported that it has agreed to sell excess electricity to the Norwegian company Elkem for NOK 800 million. The deal gives Elkem a yearly supply of 1.5 TWh until Dec. 31, 2020. The power sold is being delivered in southern part of Norway, where Norske Skog does not need it for its own operations.

"The market has shown a considerable interest for this volume of electricity, and we are satisfied with the terms and the constructive dialogue with Statkraft. The divestment is an important part of our work to improve Norske Skog's financial position" says Sven Ombudstvedt,president and CEO of Norske Skog.

Limited transmission capacity between different market regions prevents Norske Skog from using power delivered in southern Norway for the operations at Skogn in central Norway at acceptable commercial terms. The company is working to secure a long-term power supply for its operations at Skogn through a new regime guaranteed by the Norwegian state.

The sale of excess power is expected to give a cash payment of around NOK 770 million after transaction costs. It will entail an accounting loss after tax of around NOK 290 million. The final accounting effects of the transaction will be published in the pre-quarter release preceding the publishing of Norske Skog's results for the second quarter of 2010. Following the transaction, Norske Skog says it will maintain sufficient power supply to meet the needs of its operations in southern Norway (Norske Skog Saugbrugs and Norske Skog Follum).


Xerium Technologies Inc., Raleigh, N.C., USA, this week announced that it will implement a reorganization and consolidation plan that closes its Stowe Woodward, North Bay, Ont., Canada, facility. Production at this location is expected to cease by August 20. Stowe Woodward will continue to operate its U.S. facilities at Kelso, Wash.; Neenah, Wis.; Middletown, Va.; Charlotte, N.C.; Griffin, Ga.; Ruston, La.; and Concord, N.H.; It will also continue to operate the Queretaro, Mexico, plant.

"The paper industry has been contracting in North America over the last several years. Many paper machines have been permanently shutdown across North America," said Dave Pretty, president, Xerium North America and Europe PMC. "The demand for our products has been affected by these events. As a result, we are adjusting the way we do business and consolidating our roll cover operations in North America. By taking this action, we can strengthen our focus on our customers' needs and continue to offer them the newest roll covering, bowed roll, and mechanical service technology in the industry."

With 32 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,300 employees.


Verso Paper Corp., Memphis, Tenn., USA, this week announced the launch of a $43 million Renewable Energy Project that will position its mill in Quinnesec, Mich., to meet more than 95% of its energy needs using renewable biomass sources. "The implementation of the Quinnesec Renewable Energy Project is in alignment with Verso's three-pronged energy strategy, which is to reduce overall energy consumption, generate more green energy from renewable biomass, and reduce our carbon footprint, all while reducing costs," said Mike Jackson, Verso's president and CEO.

"Expanding the capacity to generate electricity from biomass is one of the ways in which the State of Michigan is increasing our leadership in clean energy technology," said Governor Jennifer Granholm. "Clean energy projects supported by the state are leading America's drive to energy independence with bold initiatives to develop energy technologies and new fuels from renewable resources."

Mike Sussman, Quinnesec mill manager, added that "Verso is fortunate to have active partners in the Michigan Governor's Office, the Michigan Economic Development Corp., Dickinson County, and Breitung Township, who are working diligently to help make our Renewable Energy Project a reality." A direct result of the state-wide partnership is the designation of a Forest Products Processing Renaissance Zone, which allows a company within the zone to operate free of virtually all state and local taxes over the life of the designation.

The Project scope includes design upgrades to the Quinnesec Mill's existing combination boiler, which burns biomass from waste wood sources, the addition of a new biomass handling system, and the installation of a new turbine generator supplied by Siemens. Verso is partnering with AMEC Engineering to begin detailed design for the Project, which is estimated to startup by December 2011. In celebration of the Project kickoff, Verso hosted a ribbon-cutting ceremony this past Monday, June 28.


JSC Solikamskbumprom has ordered a Metso (Finland) roll wrapping machine and conveyors for its newsprint mill in Solikamsk, Russia. To startup in spring 2011, the wrapping machine will serve PM 1 and PM2 of the mill's four paper machines.

The Solikamskbumprom mill, with a newsprint capacity in excess of 400,000 metric tpy, will be the first Russian paper producer to start exporting 2.4-m wide newsprint rolls to Europe. Metso's StreamLine C roll wrapping machine provides the newsprint rolls with kraft wrapper.


International Paper Co., Memphis, Tenn., USA, this week completed the acquisition of SCA's (Stockholm, Sweden) Asian packaging operations for $200 million in cash. In 2009, the Asian operation reported sales of approximately $250 million and had some 4,500 employees at 15 plants in China, Singapore, Malaysia, and Indonesia.

In regard to the divestment, Jan Johansson, president and CEO of SCA, earlier noted that "we divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there." Finalizing of the transaction, which will not result in any capital gain or loss, SCA reports, follows approval by the relevant competition authorities.

Paul Brown, president, International Paper Asia, said that the acquisition strengthens IP's industrial packaging business in China—the largest corrugated market in the world, "and it extends our presence in Southeast Asia. We have an experienced leadership team in place and our business will now be more competitive and better able to serve customers in this fast growing region of the world."

IP's industrial packaging business in Asia now has 27 plants, including 21 facilities in China, and operations in Thailand, Malaysia, Singapore, and Indonesia.


Packaging Corp. of America (PCA), Lake Forest, Ill., USA, reports that effective today (July 1), it is separating the roles of chairman of the board and CEO into two positions. Paul T. Stecko, who remains as chairman and an executive officer of the company, relinquishes his role as CEO to Mark W. Kowlzan, who has also been named to the company's board of directors.

As executive chairman, Stecko will focus primarily on major strategic issues and initiatives as well as other important board and shareholder matters. In this regard, he has entered into a new employment agreement with the company which includes financial incentives requiring that he remain with the company until June 30, 2013, to achieve.

Prior to being named CEO, Kowlzan served PCA for the past 10 years as senior VP-Containerboard with responsibility for the company's containerboard mill operations. He joined PCA in 1996 and has more than 25 years of experience in the paper and forest products industry, serving in a wide variety of technical, manufacturing, and leadership positions. PCA is the fifth largest producer of containerboard and corrugated packaging products in the U.S. with sales of $2.15 billion in 2009. It operates four paper mills and 68 corrugated product plants in 26 states across the country.


SCA Packaging Finland's Campfire2Go for Valmisnuotio Oy, combining dried Finnish birch and SCA's corrugated board, has received the Scanstar 2009 and the WorldStar 2009 awards. Basically, Campfire2Go consists of dried Finnish birch and a box made of corrugated board.

The box includes a small fire bite to make sure that the wood will easily take fire regardless of the weather. In the lower part of the box there is a perforated opening to put the bite under the firewood to be set on fire. On top of the box there is another perforated round opening to be pushed in so that the fire gets enough oxygen. Weighing only 5 kilos, Campfire2Go is not too heavy to carry on a picnic. After a burning time of one hour, ash is the only remaining garbage.



Beginning today, Siegwerk Druckfarben AG, Siegburg, Germany, manufacturer of the Tempo Nutripack series, becomes a strategic partner with European packaging specialists Van Genechten (Brussels, Belgium) under a long term contract signed last month by (l-r in photo below) Asmus Wolff, VP of Supply Chain & Innovation at the Van Gegenechten-Group, Herbert Noichl, CEO of Van Genechten Packaging, and Hugo Noordhoek Hegt, a member of the Board of Management of Siegwerk.


"Especially in food applications, packaging has to meet the most stringent safety requirements," Noichl said during the signing procedure. Hegt added that "the application of Nutripack Inks is a key contributor in making our packaging safer and more sustainable." Noordhoek noted that Siegwerk's ultimate goal is to create maximum long term safety in food packaging applications through its highly innovative ink formulations.

Van Genechten Packaging Group is one of the largest European manufacturers of fold-up boxes with nine operations in France, Benelux, Germany, Poland, and Russia. The company is particularly renowned for supplying the FMCG (Fast Moving Consumer Goods) sector, the largest share coming from fold-up packaging for all kinds of foods. In addition, luxury and premium applications as well as packaging for cosmetics and care products, microwave, and multipacks are key parts of the Van Genechten product offering. Van Genechten provides value-add across the full value chain, from coating and laminating of the carton to achieving migration resistance properties, from joint design of the packaging in cooperation with the customer to running the integrated packaging machinery as part of the customer's full production process.

Tempo Nutripack is a "low migration" sheetfed printing ink for food based packaging. According to Siegwerk, research confirms that the ink complies with EU regulations as well as those of Switzerland. Siegwerk adds that Tempo Nutripack has practically no odor and is the first sheetfed printing ink free of mineral oil as well as of genetic-modified components.


Smurfit Kappa has ordered a rebuild of the drying section of PM 2 at its Hoya mill in Germany, to be conducted by Andritz, Graz, Austria. The rebuilt machine is scheduled to startup in February 2011.

PM 2 is a testliner and fluting machine with a working width of 7.6 m at the reel and a production speed of 1,100 m/min. Following rebuild of the drying section, the drying wire tension will increase to 4.5 N/mm and the grouping will be changed. Four drying cylinders will be relocated from the after-drying section to the pre-drying section.

The PrimeDry ST's web run in the first drying section (single-tier) will be enhanced with PrimeRun web stabilizing systems. The web run of the PrimeDry DT's double-tier drying group will be optimized with specially positioned guiding rolls. In the second drying group, high-vacuum boxes will be installed to improve web transfer from the cylinder. Additionally, a new drying hood will be supplied. Andritz also recently received an order to supply a film press for Smurfit Kappa's Hoya mill.


Sonoco, Hartsville, S.C., USA, this week completed its acquisition of Associated Packaging Technologies Inc. (APT), North America's largest manufacturer and supplier of Crystallized Polyethylene Terepthalate (CPET) containers to the frozen food industry. The all-cash purchase price, including the cost of paying off various obligations of APT, was approximately $120 million, subject to certain possible adjustments. The acquisition is expected to be modestly accretive in 2010 and is expected to generate annualized sales of approximately $150 million.

APT was previously majority owned by investment funds controlled by Castle Harlan Inc. It operates four state-of-the-art CPET thermoforming facilities in, Chillicothe, Mo., and Waynesville, N.C., in the U.S., Cambridge, Ont., in Canada, and Carrickmacross in Ireland, employing more than 400 workers.


Tetra Pak, Lausanne, Switzerland, plans to offer 3.3 billion beverage cartons bearing the label of the Forest Stewardship Council (FSC) within one year to customers in Germany, starting this summer. This represents about 50% of the annual production of Tetra Pak cartons in Germany.

Sven Weidemann, managing director of Tetra Pak Germany and Switzerland, noted that "our ultimate goal is to have all supply certified to the highest standard, currently set by FSC. We are committed to increasing the number of Tetra Pak beverage cartons made from FSC-certified material as the availability of certified board increases."

On the raw material front, Tetra Pak works closely with its suppliers to ensure that all paperboard comes from known and acceptable sources. Currently, only 5% of the global forest stocks are FSC certified, and Tetra Pak says that it is working with its partners to support an increase in supply. Since the introduction of the world's first FSC-labeled liquid food cartons in the U.K. in 2007, Tetra Pak has introduced FSC-labeled cartons in several markets around the globe, with the total number exceeding 2.3 billion in 2009. Tetra Pak in Germany and Austria join the company's operations in China, France, the U.K., and the Benelux in offering customers FSC certified packaging.


UPM Raflatac, Tampere, Finland, has opened two new slitting and distribution terminals, in Istanbul, Turkey, and Bangalore, India. The new terminals will supply local labeling markets with high-quality film and paper labelstock. The Bangalore terminal complements UPM Raflatac's Southeast Asian and South Asian logistics network, comprising a labelstock factory in Johor, Malaysia, and terminals in Jakarta in Indonesia, Bangkok, Thailand, and Mumbai, India.

"India is a promising market for us, having the highest growth percentage for labelstock in the Asia-Pacific region," says Santosh Kumar, area sales director, South Asia, UPM Raflatac. "Through the new facility, our customers, especially in South India, will receive their orders faster and have a wider range of products at their disposal."

The Istanbul terminal answers growing demand for UPM Raflatac label materials in Turkey, and is in line with the company's strategy of gradually expanding its market share in this rapidly growing region.

The new terminals are an essential facet in UPM Raflatac's global development program. From 2007 to 2010, the company has opened new production facilities in the U.S. and China, a brand new production and logistics center in Poland, and a new slitting and distribution terminal in Russia.

New Products

Billerud, Sweden, reports that European-based Marks & Spencer has launched sliced meat in paper packaging based on Billerud's FibreForm, a new paper with high stretchability that can be formed in existing thermoforming lines without costly investments. Marks & Spencer's new packaging offers product safety equal to that of a plastic tray since a protective barrier preserves the product's quality and taste.

The packaging was developed in a joint project between Marks & Spencer, Billerud, and Flextrus. Billerud manufactures the paper and Flextrus both prints and applies an advanced, tailor-made barrier solution and sealing properties to the paper.

"Marks and Spencer is delighted to have launched this first-to-market innovation in packaging with Billerud. The FibreForm Packaging provides a premium look to our ham and is constructed from sustainable FSC sourced paper. It is important to Marks and Spencer to work with innovative solution providers to develop packaging for the future, and Billerud has supported our innovation work through their proactive approach," says Mark Caul, packaging technologist at Marks & Spencer.


Holmen, Sweden, on September 1 will launch a new paper known as Holmen View that combines best properties of SC and MG papers. Development of the new hybrid grade has been underway at the company's mill in Hallstavik, Sweden, and at local pronting houses. Holmen has reportedly invested some 70 million Kronor in preparation for producing the grade at Hallstavik, including rebuild of PM 1 there.


LOG-NET Inc., Red Bank, N.J., USA, has released a new carbon calculator for transportation and international trade. The company noted that a single international container imported from Asia to the U.S. or Europe will cause the emission of 1.8 to 5 metric tons of CO2, adding that utilizing carbon management tools can potentially reduce the carbon emission one to two metric tons per container for the millions of containers transported globally each year. With the new calculator, users can automatically upload, via spreadsheet, dozens or thousands of trailers or containers, which will be stored online for reporting and analysis of carbon emission generated across multiple modes of transportation.

"Earlier this year LOG-NET introduced the most sophisticated tool for the analysis of CO2 emissions of goods moving in trade," noted John Motley president and CEO of LOG-NET. "Our original tool has been broadly used by companies looking to review their carbon emissions as well as ports, universities, and local schools to assist in developing an understanding of carbon emissions in international trade." 

"The new version of this tool enables organizations to submit large sets of goods movements with hundreds or thousands of containers, trailers, or airway bills. The system then rates trade lanes, origins, and carriers for the organization's total carbon emissions in transportation. The new tool supports customs fields as well for summaries relevant to a specific organization. More information is available online.


Karl Marbach GmbH, Heilbronn, Germany, has introduced a new, highly efficient stripping technology for difficult folding carton jobs. With a pressure plate fixed to the stripping upper die, the masterstrip-plate provides a stable and reliable stripping process. After having succesfully used the masterstrip-plate in the corrugated board sector for some time, the company is now making the technology available to customers in the folding carton sector.

Marbach's general sales manager for folding carton, Bernhard Reisser, explains that "ever faster and large-format machines, blanks with very small as well as a high number of waste parts, and the increasing use of cardboard with a high proportion of recycling material make highest demands of the tooling technology. And we have met these requirements. With the masterstrip-plate, we supply our customers with highest stripping reliability — even for extremely difficult jobs such as not-flat sheets. The key advantages of this technology are a high performance of the diecutter, a smooth sheet transport, and a very good stripping result. This is how we achieve highest reliability during the stripping process and thereby increase the productivity of our customers' diecutting department."


Myllykoski, Finland, reports that it is modifying its rotogravure product range with My Star, a product that has already proved successful in Heatset Web Offset. The comany explains that it has significantly refined the existing properties of its My Extra product and renamed it My Star. The new grade offers higher whiteness, higher gloss, and a modern neutral shade.

"For a coated, wood-containing gravure paper, My Star produces very good print brilliance," says product manager Roland Beuerlein. "So for high-quality magazines, we're providing a modern, cost-effective alternative. Besides that, it can be combined well with our lighter weight rotogravure grade, My Classic." More information about My Star, produced by MD Plattling, a Finland-based company of the Myllykoski Group, is available online.

Published Pricing

M-real Corp., Finland, is implementing another 8% - 10% price increase on carbonless paper. This increase follows an increase in April that the company says was not sufficient and "did not cover the steadily rising cost for pulp and logistics." The new increase will be implemented by mid-July, and the company's sales team will contact all customers personally regarding the specific price increases.

The TAPPI Biorefinery Committee, the planning organization for TAPPI's International Bioenergy and Bioproducts Conference (IBBC), has created four new subcommittees to provide for a more focused review of specific technical advances and industry issues.

The new subcommittees will focus on the following areas:
•    Biomass Supply, Demand & Handling
•    Thermo Chemical/Chemical Catalytic Conversion
•    Biochemical/Yeast & Microorganisms
•    Policy, Tax, Legislation & Incentives

If you are a TAPPI member and interested in participating in one of these subcommittees, please contact Mary Anne Cauthen for further details about how to join.
PaperCon 2010 – Talent, Technology and Transformation -- set records for attendance and brought together some of the industry's leading experts. If you missed it, you can still "be there" by purchasing the PaperCon 2010 Conference Proceedings on CDROM from TAPPI PRESS.

"This was clearly the best PaperCon ever," said Larry N. Montague, TAPPI President and CEO. "It is clear the industry has turned around and the informal discussions and presentations I heard reflected that."  

Presentations experienced by the 1,200-plus attendees included:

Keynote speaker Nina B. Link from the Magazine Publishers of America's frank yet optimistic portrayal of the challenges facing publishers today.

Jim Hanna, Director of Environmental Affairs from Starbucks Coffee Company, shared Starbuck's environmental philosophy and explained the company's goal to develop a 100 percent recyclable cup by 2012, calling on the assembled pulp and paper industry experts to help Starbucks meet this challenge.  

Other Forums and Presentations:

The first-ever "The Science Behind Sustainability" Forum with speakers from Colgate-Palmolive, MeadWestvaco (MWV) and GreenBlue

Innovation and Carbon Management presented by PIMA featured Nobel Laureate and global energy policy expert Dr. Marilyn Brown.

Papermaking and Coating Innovations, with the most popular sessions addressing current and future paper and tissue machine innovations, technologies for strength improvement, headbox and forming innovations for packaging grades and a papermaking additives roundtable.

Two tissue sessions, a first for PaperCon, were very well attended.

You can still "attend" PaperCon 2010 via our comprehensive Conference Proceedings on CDROM. View full product details including the Table of Contents.

Product Code:PAPERCD-10
List Price: $111
Member Price: $74

Ways to Order
1.    Online
2.    By e-mail with product details and payment information to memberconnection@tappi.org.
3.    By phone: please contact TAPPI's Member Connection by phone at 1.800.332.8686 (US), 1.800.446.9431 (Canada), or +1.770.446.1400 (Worldwide).

The early bird registration deadline for the TAPPI Introduction to Linerboard/Medium Manufacture Course is July 6.

Knowledge is power. The TAPPI Introduction to Linerboard/Medium Manufacture Course is designed to give you increased confidence and understanding of linerboard and medium manufacture and properties. By participating in this course you will be able to interact more knowledgeably with experienced process engineers and operators as well as increase your ability to improve paperboard mill operations and help troubleshoot product quality problems.
After completing this course, you will be able to describe and define linerboard and medium manufacturing processes, equipment, variables, and terminology in order to improve operations and product quality. You will recognize how one part of the process affects other operations in order to increase your thinking on a mill-wide scale. And, you will be able to interpret how process variables affect linerboard and medium sheet structure and properties, to help you troubleshoot variations in product quality. View the complete Course Information.

Make your plans now to attend the 2010 TAPPI Extrusion Coating Course. You'll want to be in Charleston, South Carolina USA August 24-26, 2010 to  network with your peers and a distinguished group of industry veterans as they explore best practices and equipment technology that apply to extrusion coating applications. This three-day course will help you gain a better understanding of materials and the extrusion processes to enable you to improve your existing extrusion coating operation. Emphasis will be placed on enhancing your troubleshooting skills.

This course is ideal for extrusion engineers, supervisors and operators; technical directors and superintendents; Technical assistants and R&D personnel.

To learn more, or to register, visit www.tappi.org/10extru.

TAPPI is proud to once again be a co-sponsor of the 43rd Pulp and Paper International Congress and Exhibition to be held at the Transamérica Expo Center, São Paulo, Brazil, October 4-6, 2010.

Now that the storm caused by the global economic crisis is over, the pulp and paper sector in Brazil shows its strength and is already showing signs of growth. It is to discuss this scenario and present the trends that will permeate the sector in the next years that the Brazilian Pulp and Paper Technical Association (ABTCP) is holding the 43rd Pulp and Paper International Congress and Exhibition.
As the most prestigious and representative event of the sector in Latin America, ABTCP's Congress and Exhibition in 2010 will be held in conjunction with TAPPI, the sister entity in the United States that joins pulp and paper makers from around the world, as well as processing and packaging industries. 

More information about this program is available at  www.abtcp-tappi2010.org.br/ingles/

As recent headlines have emphasized, safe and renewable fuel sources are the direction of the future -- with awareness and incentives for clean energy increasing on a daily basis.  To reflect the latest regulatory and technical developments in sustainable energy production, TAPPI is moving BioPro ExpoTM to March 14-16, 2011 and will be held at the downtown Atlanta Hilton.  This move enhances BioPro Expo's mission to bring attendees critical information to immediately capitalize on the growing market momentum for renewables.

Look for more details on this event in the coming weeks. You can always find the most current information at www.BioProExpo.org.

The 2010 TAPPI PLACE CONFERENCE focusing on Sustainability and Innovations in Flexible Consumer Packaging was held April 18-21, 2010 in Albuquerque, New Mexico, USA, with nearly 300 attendees. If you missed it, don't worry: the 2010 PLACE Conference Proceedings are now available on CDROM.

Here are some highlights of the conference:

Twenty-four educational sessions, including an interactive troubleshooting session led by Ginger Cushing of Michelman and Duane Smith of Davis-Standard, LLC focusing on the TAPPI Roll and Web Defect Terminology Handbook.

Two keynote presentations by Tony Knoerzer, vice president of  Packaging Advanced Research at Frito-Lay provided fresh insights into compostable food packaging and its future in consumer packaging markets; and Christa Martin, vice president Product Development and Management at Mail Boxes Etc. (MBE, a UPS Company) provided an overview of the UPS Stores work on Sustainability in Packaging and their work in their Packaging Testing Laboratory to develop packaging that will optimize space requirements for transportation and Damage Protection.

You can still "attend" 2010 PLACE via our comprehensive Conference Proceedings on CDROM.

Product Code: PLACECD-10
List Price: $111
Member Price: $74

Ways to Order
1.    Online
2.    By e-mail with product details and payment information to memberconnection@tappi.org.
3.    By phone: please contact TAPPI's Member Connection by phone at 1.800.332.8686 (US), 1.800.446.9431 (Canada), or +1.770.446.1400 (Worldwide).
Plan to attend the 13th European PLACE Conference to be held at the  Festpielhaus in Bregenz, Austria on beautiful Lake Constance, May 30 – June 1, 2011. More information will be coming soon regarding the location for the 2012 PLACE event in North America.

Formerly known as TAPPI Engineering, Pulping and Environmental Conference, registration for the newly-named TAPPI PEERS Conference and the 9th Annual Research Forum on Recycling is now open.  To accommodate tight budgets, one registration fee will allow attendees to access both conferences.  

PEERS is designed to answer the most pressing business and technical questions faced by pulp and paper companies as they manage raw materials, assets, regulatory requirements and production assets. With several focused tracks and more than 50 sessions, PEERS offers peer-reviewed papers, expert speakers, exclusive networking opportunities and new technologies that can help mills optimize operations. Learn more about PEERS at www.tappipeers.org

The 9th Annual Research Forum on Recycling, running in conjunction with the PEERS Conference will continue its history of highlighting cutting-edge research results from around the world and will offer extraordinary opportunities for professional development and personal growth.  For program information, go to www.tappipeers.org/recycling.asp.

These events will also include workshops, a mill tour (focused on recycling), Hot Topic Breakfast, a New Product Showcase, a Trade Fair, networking events, a spouse/guest program, a dinner cruise, and a 5K Fun Run. 

For detailed information, go to www.tappipeers.org.


"He who postpones the hour of living is like the rustic who waits for the river to run out before he crosses."  - Horace, poet and satirist (65-8 BCE)

EKA Chemicals Inc.