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Over the Wire


Naylor, LLC
Weekly Spotlight
Deforestation rates in the Brazilian Amazon declined 14% from August 2009 to July 2010, reaching the lowest rates ever recorded for the second consecutive year, President Luiz Inacio Lula da Silva announced yesterday in Brasília, Brazil. Satellite images analyzed by Brazil's National Institute for Space Research (INPE) show that an estimated 6,450 square kilometers of forests were cleared in the 12-month period, bringing rates to their lowest since monitoring started in 1988. The record-breaking decrease represents a major contribution to reducing Brazil's greenhouse gas emissions, as global negotiations progress at the 16th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP16), currently underway in Cancun, Mexico.

"We are fulfilling the commitment we have made in Brazil. We will fulfill it because it's our obligation to do so," said President Lula during the event in Brasília. The president also announced new integrated policies to promote sustainable development in the Amazon region, alongside the first results from Brazil's deforestation monitoring system in the Atlantic Forest.

"We are committed to advancing the reduction in deforestation, improving monitoring, and creating the conditions for sustainable development in the region," said Minister of Environment Izabella Teixeira, who joined President Lula for the announcement in Brasilia. "We are doing our homework, and the world needs to respond accordingly."

In 2009, Brazil voluntarily passed into law a commitment to cut its projected greenhouse gas emissions between 36.1% and 38.9% by 2020. Deforestation reduction is a critical part of Brazil's strategy to reduce national emissions. Official calculations estimate that meeting deforestation reduction targets could reduce Brazil's greenhouse gas emissions by up to 24.7%. This past October 2010, President Lula announced that Brazil's 80% Amazon deforestation reduction target would be met by 2016, four years earlier than planned.

According to the Ministry of Environment, the successive drops in Amazon deforestation rates are a result of the Plan for Amazon Deforestation Prevention and Control (PPCDAM), an integrated set of government policies that combine enhanced satellite monitoring and enforcement operations with land tenure regularization, alongside initiatives to encourage sustainable activities in the region. With the support of 13 government agencies, PPCDAM was instrumental in helping to reduce deforestation in the Amazon by 76.8% from 2004 to 2010.

During yesterday's events, President Lula also signed a decree establishing the Amazon Ecological-Economic Macrozoning initiative, a set of strategies to guide and stimulate sustainable development in the Amazon region. The document divides the Legal Amazon region into10 different zones and specifies the nature of economic activity that can be carried out in each of them, in accordance with sustainability criteria. It aims to avoid deforestation by halting the expansion of agriculture and cattle ranching into areas of native vegetation, while fostering the use and recovery of already degraded lands for agribusiness activities. The decree also establishes that the National Monetary Committee shall define new rules restricting finance for rural and agro-industrial activities in the Amazon, according to the criteria included in the Macrozoning. In addition, the document proposes a number of fiscal and economic incentives to encourage the expansion of sustainable activities in the region.

The following table shows deforestation rates in the Brazilian Amazon since 2000, with the record low occurring this year.

Year Rate (km 2 )
2000 18,226
2001 18,165
2002 21,523
2003 25,396
2004 27,772
2005 19,014
2006 14,196
2007 11,633
2008 12,911
2009 7,464
2010 6,450
Source: National Institute for Space Research (INPE)

A new awareness campaign titled Go Paper. Grow Trees, sponsored by International Paper Co., Memphis, Tenn., USA, gives consumers the facts on how using paper products makes a direct contribution to the health and growth of trees and the forests. According to the Food and Agricultural Organization of the United Nations (FAO), a majority of the 750 million acres of U.S. forests are privately owned. These private owners (mostly family tree farmers) will ultimately determine what happens to our forestlands, IP notes.

Go Paper. Grow Trees was created to connect readers to the challenges private landowners face in growing and maintaining healthy forests. More information GoPaperGrowTrees.com on the awareness campaign is available online. The campaign's interactive website provides numerous forestry facts and dispels many myths, along with offering other multi-media tools, including a Go Paper. Grow Trees video.

"It's important to understand that tree farmers and other private landowners plant about 4 million trees every day, which is about three to four times more than they harvest," said Teri Shanahan, IP's VP, Commercial Printing. "By planting trees and managing forests responsibly, landowners are given the financial incentive they need to maintain and protect the valuable forest resources that provide benefits for present and future generations."

Without the income from tree farming, landowners face economic pressure to pay property taxes and replace lost revenue, IP notes. A common outcome, it adds, is converting forestlands to other uses such as agricultural crops that have shorter growing and cash cycles than forest products. Another tempting prospect is to sell the land for development. In either case, IP stresses, the forest is removed forever "and so are the benefits of cleaner water, better air, wildlife habitat, and biodiversity. Healthy forests are life-support systems—and demand for paper products ensures landowners continue to farm trees."

Shanahan says that "by providing a clearer understanding of who owns the forests and the challenges these landowners face, Go Paper. Grow Trees is intended to correct misinformation and provide a realistic perspective on the role that paper products play in keeping our forests healthy and growing. Consumers continue to be environmentally conscious in the choices they make, so it's important they base their decisions on facts. The facts are paper products are a sustainable, renewable, recyclable, and biodegradable resource—and using paper products can actually lead to a healthier forest ecosystem and the demand for and growth of more trees."

In 2009, under the active macroeconomic policy control of the government, China's papermaking industry on the whole overcame such difficulties as shrinking demand, reduced capacity utilization, and augmented product inventories resulting from the financial crisis, and started rising gradually. A new report by Reportlinker, New York, N.Y., USA, titled China Papermaking Industry Report, 2010 notes that this year the industry accelerated the pace of development and has seen substantial growth in various economic indicators. The whole industry achieved operating income of RMB 361.2 billion and total profit of RMB 20.5 billion in the first eight months of 2010, up 31.67% and 58.66% year on year respectively, according to the new report.

Overall, China's papermaking industry has experienced several major changes in 2010, Reportlinker says. The revenue and industrial sales output value have risen sharply year on year. Costs have climbed due to the rise in prices of raw materials such as wood pulp. The packaging paper industry has grown rapidly, driven by growing export demand. The elimination of backward capacity has been intensified, and 4.65257 million metric tons of capacity was eliminated in August 2010. The production concentration has increased, and the top 30 papermaking enterprises (by output) are expected to account for more than 40% of the total industry output in 2010.

From the perspective of regional development, in 2010, China's papermaking industry is still concentrated in eastern and central regions, mainly including Shandong, Henan, Guangdong, Zhejiang, and Jiangsu, the Reportlinker report explains. In the first three quarters of 2010, top 10 regions by output of machine-made paper and paperboard, linerboard, and paper products achieved total output of 62.2423 million metric tons, 9.2134 million metric tons, and 27.5602 million metric tons, respectively, accounting for 84.81%, 83.43%, and 79.06% of the total output, respectively. The regional concentration of paper products decreased while machine-made paper and paperboards increased year on year.

The new report concludes that, under the influence of such factors as policies for backward capacity elimination, rising raw material prices, and RMB appreciation, China's papermaking industry will see a fall in the output and a rise in demand and prices. From the perspective of specific products, the low-grade cultural paper with straw pulp as the main raw material is the object of backward capacity elimination in 2010. Medium and high-end cultural paper, as the substitute for low-grade cultural paper, will see a rise in both output and prices. Packaging paper will witness a substantial increase in the demand as a result of the rapid development of downstream industries such as electronics and communications, household appliances, food, pharmaceuticals, household chemicals, textile, tobacco, and alcohol.

The Miami University Paper Science and Engineering Foundation, Oxford, Ohio, USA, has named Jonathan C. Kerr its new executive director, effective January 1. Kerr comes to the Foundation from Andritz, where he spent the past 10 years in capital equipment sales, specifically in stock preparation, approach flow, and recycled fiber systems.

A 1982 B.S. Engineering graduate from Western Michigan University's Paper Science and Engineering program, Kerr began his career in Springfield, Ohio, working for what was then C-E Bauer. After the merger with Sprout-Waldron, he spent time in field sales, traveling the Ohio Valley and surrounding area. He worked for a short time with American Maize-Products as marketing manager in the Chicago area before moving back to Ohio to work for the Black Clawson Co. in Middletown.

Kerr has always been an active member of TAPPI, serving as Ohio TAPPl's chairman from 1992 – 1993 and as the Paper & Board Division chairman from 2000 – 2002, achieving the Division Leadership and Service Award in 2005. He was elected to TAPPI's Board of Directors in 2003 and served a three-year term, being named a TAPPl Fellow in 2006.

"I'm very pleased to be named the Foundation's executive director and look forward to the challenges that we face in preparing young engineers and scientists for careers in North America's pulp and paper industry," Kerr said. "As the Foundation's member companies face an ever-increasing number of retirements in the near future, the demand for engineering talent will increase to levels not seen in the past 20 years. And that talent must be well prepared to enter the unique environment offered by the paper industry. This means, of course, that Miami University's paper science and engineering program has an unprecedented opportunity for growth by leveraging this new situation. I am excited by that potential and look forward to being a part of the program's success."

Two new North American pulp and paper mills—NewPage at Duluth, Minn., and Port Hawkesbury, Nova Scotia—will soon be participating in the TAPPI SRW Damage Prevention Trial Program that kicked off this past May 17. The goal of the trial is to determine if a common platform for information sharing can lead to reduced in-transit damage to paper rolls. More than 25 locations are now participating in the trial, including major mills, printers, publishers, and carriers (see table below).

In the three months following start of the trial, the system processed 1,099 pre-load equipment inspections with an acceptance rate of 94.6%. Of the 5.4% of railcars rejected, 100% had holes, 35.6% contained dunnage, and 33.9% had bad door seals. The system database now contains more than 1,300 individual railcars for which it maintains the current repair status.

Shipping and receiving inspections are monitoring the performance of load protective measures. There have been 871 total shipments so far with the largest single dunnage failure item being wall protection devices. Twenty-one railcars have contained damaged paper with wet, torn, and split edges being the most common types of damage reported. Complete statistics have been posted on the TAPPI website.

The trial is being conducted using software designed and managed by VoIPcare Technology in Cedar Rapids, Iowa, USA. VoIPcare's qMetrix for Transportation creates a standardized reporting infrastructure designed to help the industry identify the root causes of paper damage and measure the impact of process changes.

More information is available online about the trial and how to participate in it. VoIPcare qMetrix product information is also available online, or by contacting Robin Mangold, rmangold@voipcaretechnology.com, 319-383-3230. Additional information about the TAPPI SRW Committee and the mid-project results of the SRW Damage Prevention Trial Program is available on the TAPPI website.

qMetrix for Transportation Participating Locations
Company Locations
Augusta Newsprint/AbitibiBowater Augusta, GA
Catalyst Richmond, British Columbia, Canada
Irving Paper St. John, New Brunswick, Canada
Madison Paper Madison, ME
NewPage Duluth, MN; Port Hawkesbury, NS
Norske Skog Penn Warehousing
Quad/Graphics Lomira, WI; OKC; Martinsburg, WV; Dickson, TN; Fernley, NV
RR Donnelley Warsaw, IN; Reno, NV; Gallatin, TN; Lancaster, PA
UPM Baltimore, MD; Jacksonville, FL; Grand Rapids, MN; Duluth, MN
Verso Paper Quinnesc, MI; Androscoggin, ME; Bucksport, ME; Sartell, MN
Vertis Manassas, VA

Market Roundup
The October global pulp shipments data released by PPPC last week suggest that the underlying demand for market pulp continues trending lower, according to Mark Wilde, senior analyst with Deutsche Bank. Shipments fell 7.5% m/m and 3.5% y/y, and inventories rose by 2 days to 34 days of supply, Wilde reports. Softwood markets, he says, remain relatively snug (shipments flat m/m and +3.8% y/y, inventories fell by 1 day to 26 days). Hardwood markets appear much weaker—shipments were down 16.1% m/m and 10.5% y/y in October and inventories rose by 5 days of supply to 43 days. List prices are off $30 - $50/metric ton in the domestic market and down more sharply in markets such as China. With reports of more supply coming online in Indonesia and China, prices are apt to come under some additional pressure, Wilde points out.

All major recycled board producers have announced price increases for December/January, Wilde says. The key driver is the ongoing surge in OCC costs, up ˜$12/ton in November and ˜$37/ton since July. Last week, RKT announced a $40/ton price increase on CRB, effective early-January, Wilde notes. Caraustar, PaperWorks, and Graphic Packaging have already announced a $35 - $40/ton price increase for mid-December/early-January, he adds. CRB list prices were flat at $845 - $865/ton in November, +12.5% y/y and +$95/ton YTD. In URB, RockTenn and PaperWorks have announced a $35/ton price increase for mid-December/early-January. Sonoco and Caraustar have announced a $30/ton increase for late-November/early-December. In November, URB list prices were flat at $635 - $665/ton, +17.1% y/y and +$95/ton YTD. Demand for both grades remains solid. Order backlogs are strong and operating rates high, Wilde reports.

Newsprint list prices on the U.S. West coast rose $5/metric ton to $625/metric ton, while prices in the East were flat, according to Wilde. "With this, the East/West gap is now down to a mere $15/metric ton.

Discussions with trade contacts suggest that producers are unlikely to announce any further price increase this year. Domestic demand has stabilized and inventories are falling. But the key element has been a surge in exports, particularly to Asian markets such as India. In October, N.A. shipments were +1.2% y/y with domestic shipments -5.4% y/y and exports +20% y/y (below the ˜50% average monthly growth posted in the first 10 months). N.A. mills are also benefiting from the sharp rise in ONP costs around the globe. Also, N.A. mills are less dependent on recovered paper for their fiber supply, Wilde notes.

Global sawlog prices have trended upward in almost all regions of the world for the past two years. The Global Sawlog Price Index (GSPI) reached $80.88/cubic meter in the third quarter, which was the highest level since the beginning of the financial crisis in late 2008, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. Western and Eastern Canada are the only two regions that currently have lower log costs in the local currency than a year ago. The biggest increases have been in the U.S. Northwest, Germany, Sweden, and Northwest Russia.

After a temporary drop in the second quarter, the Softwood Wood Fiber Price Index (SFPI) increased again in the third quarter to the highest level during the financial crises, WRQ reports. The SFPI was $99.80/odmt in the third quarter, up $1.51/odmt from the previous quarter and $6.68/odmt from the same quarter in 2009. Prices went up not only because the U.S. dollar weakened against most other currencies, but also because prices in the local currencies were up in Europe, Western U.S., and Western Canada. Global hardwood fiber prices also trended upward, both in local currencies and U.S. dollar terms, in most regions covered by WRQ. The biggest increases occurred in Europe, where prices were up 5% -10% from the previous quarter. As a result, the Hardwood Wood Fiber Price Index (HFPI) was up $1.51/odmt to $104.88/odmt.

This year has been a very good year for the world's producers of market pulp, WRQ continues. World production for the first eight months was 8% higher than last year. During the third quarter, global production was close to the record high, and probably peaked in June or July. The market pulp producers in Western Europe have so far increased production by 18% compared with last year. Latin America is still lagging because of the large production outages early in the year when the earthquake hit the country.

Woody biomass prices in the U.S. peaked in late 2008 and early 2009 and fell until the second quarter of this year when they probably bottomed out for this cycle, according to WRQ. Currently, costs for biomass are the lowest in California and the U.S. Northwest, averaging about $35/odmt for biomass sourced from the forest industry. Demand for woody biomass in the U.S. South has slowly increased and as a result, biomass prices have trended upward the past four years. Pellet prices in Sweden have gone up every quarter since late 2008 and are now substantially higher than in Central Europe. More information about the WRQ timber, fiber, and pulp reports is available online.

Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, reports that the U.S. Bankruptcy Court for the District of Delaware (USA) has issued an opinion confirming the company's plan of reorganization under chapter 11 of the U.S. Bankruptcy Code, clearing the way for its emergence from creditor protection. The court also issued an order this week overruling objections to the U.S. plan. AbitibiBowater expects to emerge and its plans to become effective in December.

"Today is an exciting day in the transformation of AbitibiBowater," David J. Paterson, president and CEO, said. "The restructuring was a challenging process and I am truly proud of all that we have achieved since our filing in April 2009. Once we meet the remaining closing conditions, we will emerge with a business foundation that fundamentally repositions AbitibiBowater. We would not be here today without the dedication, loyalty, and perseverance of our employees, the vision and guidance of our leadership team, the steadfast loyalty of our customers and suppliers, as well as the support of governments and the communities in which we operate. To you, and all of our stakeholders, thank you," Paterson added. "We look forward to working with everyone to continue to shape AbitibiBowater as a leaner, financially flexible, and more competitive organization."

This stage in the creditor protection proceedings follows a number of recent major milestones, including: obtaining the requisite votes of unsecured creditors approving the company's reorganization plans under the Canadian Companies' Creditors Arrangement Act (CCAA) and the U.S. Bankruptcy Code; a sanctioning of the plan under CCAA from the Quebec Superior Court; and agreements with the Quebec and Ontario pension regulators.

AbitibiBowater produces a wide range of newsprint, commercial printing and packaging papers, market pulp, and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. The company owns or operates 19 pulp and paper facilities and 24 wood products facilities located in the U.S., Canada, and South Korea.

ABB, Zurich, Switzerland, will acquire Baldor Electric Co., Fort Smith, Ark., USA, in an all-cash transaction valued at approximately $4.2 billion, including $1.1 billion of net debt. According to the agreement, approved by both companies boards, ABB will commence a tender offer to purchase all of Baldor's outstanding shares for $63.50 per share in cash. The transaction represents a 41% premium to Baldor's closing stock price on November 29. The deal is expected to close in the first quarter of 2011.

The transaction closes a gap in ABB's automation portfolio in North America by adding Baldor's NEMA motors product line and positions the company as a market leader for industrial motors, including high-efficiency motors. Baldor also adds a growing and profitable mechanical power transmission business to ABB's portfolio. The transaction will substantially improve ABB's access to the industrial customer base in North America, opening opportunities for ABB's wider portfolio, including energy efficient drives and complementary motors.

In addition to large industrial motors, Baldor offers a broad range of mechanical power transmission products such as mounted bearings, enclosed gearing and couplings, used primarily in process industries, as well as drives and generators. The Baldor drives business will be combined with the larger ABB drives business. Baldor employs some 7,000 people and reported an operating profit of $184 million on revenue of $1.29 billion in the first nine months of 2010. This represents an increase of 30% in operating profit and 11% in revenue over the comparable period in 2009.

Canfor Pulp Income Fund, Vancouver, B.C., Canada, reports that Canfor Pulp Limited Partnership, in which the Fund has a 49.8% ownership, has received approval from the Canadian federal government for funding of its $100 million capital project to upgrade the recovery boiler at its Northwood Pulp Mill in Prince George, British Columbia. The project is planned for completion in the fourth quarter of 2011 and is expected to provide economic and environmental benefits to the Partnership's operations.

On Oct. 9, 2009, the Canadian federal government announced the allocation of credits from the billion dollar Pulp and Paper Green Transformation Program. The Partnership was allocated credits up to $122.2 million from the program, which is designed as a reimbursement of funds to be spent on qualifying energy and environmental capital projects. Credits may be used until the program end date of March 31, 2012. The Partnership has previously received program approval to proceed with two other qualifying projects totaling $15.6 million.

Metsä Tissue Corp., Finland, reports that it is exploring new applications for its deinking sludge, working through Finncao Oy, a company founded in 1999 and acquired wholly by Metsä Tissue earlier this year. Finncao provides specialized services and expertise in the utilization of deinking sludge and ash as a substitute for soil and other primary materials in applications such as landfill and road construction, sports tracks and fields, and other urban and infrastructural development. Its goal is to further develop its recycling services and to productize recycled industrial by-products in an ecologically and financially efficient way.

Finncao is currently investigating potential new applications and carrying out research and experiments together with various partners. "In the future, deinking sludge and ash from the Mänttä mill could be recycled more extensively in applications such as sub-layers in jogging tracks, cross-country skiing trails, sports tracks and fields, golf courses, and downhill skiing slopes. Thanks to its excellent formability and low permeability, it makes an excellent material for structures such as noise barriers. Soundwalls and embankments are in fact the next big applications we are looking into. In structures like these, it absolutely makes sense to recycle industrial by-products rather than use virgin raw materials," said the Mänttä mill's Environment and Quality Manager Jonna Haapamäki-Syrjälä, who has been involved in Finncao's recent projects.

"Mänttä's de-inking sludge offers outstanding features such as low water permeability, light weight compared with rock-based raw materials, excellent formability, and flexibility—all which are definite advantages in the construction and use of jogging tracks and ball parks," Haapamäki-Syrjälä added.

"Finncao offers us an interface for maximizing the sound and efficient recycling of industrial by-products generated during our production processes," Metsä Tissue's CEO Hannu Kottonen, said. "We currently recycle 98% of our deinking sludge, and we intend to maintain a high recycling percentage, even though reduced possibilities at landfill construction and inflexible environmental permit procedures in Finland have made this more difficult."

Neenah Paper, Neenah, Wis., USA, reports that its current Chairman and CEO Sean T. Erwin will retire as CEO at the company's annual meeting of shareholders in May 2011, but will remain on the board of directors as non-executive chairman. The company further reports that John P. O'Donnell, currently SVP and COO, will succeed Erwin as CEO and join the board. Julie Schertell has been promoted to the position of president of Neenah Paper's Fine Paper Business, effective January 1.

NewPage Corp., Miamisburg, Ohio, USA, this week released Getting Personal, the fourteenth issue in its "Ed" series of educational brochures. This new issue points out how the world is connecting audiences at many different communication points, engaging them in very personal ways. NewPage notes that "whether print, advertising, mobile or social media, in Ed No.14, Getting Personal, readers learn that the most effective messaging utilizes a combination of all of these mediums." Throughout the brochure, Ed shares a number of case studies of leading marketers who reinforce the importance of print in a marketing media mix, achieving maximum customer reach and engagement.

In Getting Personal, readers experience advanced technology now available through the print medium. These include variable printing, QR codes (advanced bar codes, when printed in an advertisement utilizing smart phones direct buyers to specific websites), and augmented reality (an interactive three dimensional online experience that starts on a printed page).

"Despite the continuing talk that print is losing relevance, Ed shows us in Getting Personal that print continues to remain one of the strongest means to deliver a message," says Steve DeVoe, VP marketing for NewPage. "It's versatile and accessible to all, regardless of age or income, and still preferred among a large segment of consumers for receiving information."

The "Ed" series is a friendly educator of all things paper, printing, and design—a source for information and inspiration to help the creative community express their ideas, on-press and on paper. The brochure series is accompanied by the EdLivesHere web site.

UPM, Helsinki, Finland, in response to the growing demand for label papers, is increasing label paper production capacity at its Tervasaari mill in Valkeakoski, Finland. The rebuild of the Tervasaari PM 8 will increase the capacity by almost 30,000 metric tpy. The installation work will start in March 2011 and the main part of it will be done in early 2012. The new capacity will come on stream during the second quarter of 2012.

"With the rebuild of Tervasaari PM 8, we want to ensure our market leader position in label papers and support our customers' growth," says GM Juha Kääriäinen of UPM Tervasaari.

PM 8, built in 1996, produces label base papers. Its major rebuilt was in year 2006. The UPM Tervasaari mill in Valkeakoski produces some 360,000 metric tpy of label, envelope, and kraft papers. It employs about 400 people.

Korsnäs, Sweden, reports that its new 120 gsm Decor light coated White Top Kraftliner is a "major step," representing a 7.7% reduction in liner weight from the previous industry standard of 130 gsm for light coated grades. Korsnäs notes that the key factors of thickness, SCT, and Burst, compare favorably with other products on the market in higher grammages, allowing premium print results to be maintained, and in some cases enhanced. The new grammage will be available beginning later this month.

Korsnäs operates three production facilities, in Gävle, Frövi, and Rockhammar. Sweden. Its production capacity totals 1.1 million metric tpy of cartonboard and paper, with integrated pulp production. The company employs some 1,800 people. Korsnäs also produces biofuel pellets at two plants in Latvia. The company exports approximately 90% of its products.

M-real, Finland, part of the Metsäliitto Group, will rebuild two board machines t its Simpele and Kemiart Liners mills in Finland to increase capacity and improve quality. Metso, Finland, will rebuild the cartonboard machine at the Simpele mill and the kraftliner machine at the Kemiart Liners mill in Kemi. Startup of the rebuilt Simpele machine is scheduled for the second quarter of 2011, and the rebuilt Kemiart Liners machine is planned to come online in the third quarter of 2011. The combined value of the orders is below EUR 20 million.

Metso's delivery to the Simpele mill will include a rebuild of the forming section and press section, including a new shoe press, and the dryer section. After the rebuild, the annual capacity of the Simpele mill will be approximately 300,000 metric tons, making the Simpele machine the biggest folding boxboard machine in Europe. Metso's delivery to the Kemiart Liners mill will include a coating section rebuild. Additionally, a coating drying rebuild will replace the machine's old gas infrared dryers with energy efficient high-drying-capacity air dryers. The rebuild will further improve the coated white top liner quality produced.

Propapier, Germany, reportedly has set a new 24-hr world speed record for containerboard machines, running its No. 2 Eisenhüttenstadt, Germany, unit at 1,620 m/min on November 25. PM 2, supplied by Metso, Finland, started up only eight months earlier, and became the world's first containerboard machine to exceed the 1,600 m/min speed level. The Metso machine is 10.85 meters wide and produced 2,049 tons of corrugating medium at a machine efficiency of 93.8% during the record time.

MeadWestvaco (MWV), Richmond, Va., USA, has launched a new web-based Open Innovation portal. Known as MWV Exchange, the new portal enables MWV to connect directly with customers, suppliers, and partners to create customized consumer packaging solutions. MWV notes that the Open Innovation platform strengthens and accelerates its "concept to commercialization" process and enhances the company's ability to bring differentiated packaging solutions to the marketplace.

"The MWV Exchange portal will help further strengthen our competitive advantage by expanding our reach to capture and generate novel ideas and new technical solutions to challenging problems," said Alex Cedeno, VP of Global Innovation for MWV. "This will allow us to enhance our value added packaging solutions and develop deeper relationships with customers, partners, and suppliers."

Through the new portal, MWV sees potential for idea generation to support innovation needs throughout all of the markets it serves. MWV Exchange will provide an opportunity to collaborate openly on technical challenges in areas of focus, such as sustainability, materials science, and substrate development.

"By leveraging MWV Exchange as our Open Innovation management system, MWV taps into the expertise of our employees, suppliers, customers, inventors and academicians to solve the industry's toughest and most pressing packaging challenges," said Paul France, director of Open Innovation for MWV.

Saica Containerboard has ordered a new paper machine and winder sectional drive systems from ABB, Switzerland, for the PM 11 production line at its new mill located in Manchester, England. The same ABB technology is used on Saica's PM 10 production line. PM 11 will startup in January 2012.

ABB's PMC800 Direct Drive solution reportedly will reduce overall equipment investment costs by eliminating gear boxes, encoders, primary couplings, gear lubrication. ABB's unique Direct Torque Control (DTC), combined with AC800 drives control system, will enable encoderless motor control and operation.

In addition to eliminating the external gears boxes, the Direct Drive solution provides energy savings throughout the system lifecycle. Its 16 installed permanent magnet motors are mostly located at the dryer, representing less than 20% of the total drive power. Dryer section electrical energy losses are 17% lower than that of a traditional drive system, with estimated energy savings over 20 years projected at more than $400,000. ABB's solution requires less maintenance and minimizes downtime, as well as reduces initial construction costs, resulting in lower overall system lifetime costs.

The St. Joe Company, Watersound, Fla., USA, has entered into a new pulpwood supply agreement with Smurfit-Stone Container Corp., Chicago, Ill., USA. Under the agreement, effective immediately, St. Joe will sell 3.9 million tons of pulpwood to Smurfit-Stone's pulp and paper mill in Panama City, Fla., over the next seven years. The new agreement replaces an agreement that the two companies entered into in July 2000 and that was scheduled to expire in June 2012.

The new agreement includes more favorable pricing terms for St. Joe and guarantees steady demand for much of the company's pulpwood harvest. In addition, the agreement removes certain restrictions on St. Joe's timberlands contained in the previous agreement, allowing for greater flexibility related to St. Joe's rural land sales activities. For Smurfit-Stone, the agreement ensures the steady supply of a significant portion of its fiber needs.

"This is a win-win outcome for both St. Joe and Smurfit-Stone," said Will Sonnenfeld, SVP of forestry and land sales at St. Joe. "Smurfit-Stone is an outstanding customer and the largest buyer of pulpwood in our region. The new agreement strengthens an important relationship with a key customer while advancing our efforts to optimize our timberland management and enhance the earnings of our forestry segment."

Published Pricing
Metsä Botnia. Finland, announced this week that it is raising its price of northern bleached softwood kraft pulp (NBSK) in China. The new price will be $830 per metric ton, effective immediately for all new business.

Oy Metsä-Botnia Ab (marketing name Botnia), founded in 1973, produces bleached pulp grades. The company is owned by the Finnish companies M-real Oyj, Metsäliitto Osuuskunta, and UPM-Kymmene Oyj. Its pulp mills are located in Joutseno, Kemi, Rauma, and Äänekoski, Finland.

DuPont Titanium Technologies, Wilmington, Del., USA, this week announced a net price increase of $200 per metric ton for all of its Ti-Pure titanium dioxide grades sold in Asia Pacific. The increase becomes effective with shipments beginning January 1.

DuPont Titanium Technologies operates U.S. plants at DeLisle, Miss, New Johnsonville, Tenn., and Edge Moor, Del., as well as Altamira, Mexico, and Kuan Yin, Taiwan, all of which use the chloride manufacturing process. The company also operates a mine in Starke, Fla.

Nalco, Naperville, Ill., USA, is implementing a price increase to the paper industry effective January 1, or as contracts permit. Pricing for most Nalco programs will increase between 5% and 15%. Nalco notes that the price increases are driven by increased energy and raw material costs, tightening availability of some raw materials, and rising freight costs. The company adds that its Paper Services account managers will contact individual customers to discuss these increases.

RockTenn, Norcross, Ga., USA, has announced a $40 per ton price increase on its Classic News, Angelcote, and Millmask coated recycled paperboard products. The Price increases are effective with shipments beginning January 3.

RockTenn is a producer of paperboard, containerboard, and consumer and corrugated packaging, with annual net sales of $3 billion. It has 10,000 employees at locations in the U.S., Canada, Mexico, Chile, and Argentina.

Sonoco, Hartsville, S.C., USA, has named Adam Wood division VP and GM of Converted Products/Paper – Europe, effective January 1. Wood replaces Eddie Smith, who is retiring after nearly 40 years with Sonoco. Smith will remain with the company through March 31 to help with the transition and to work on special projects.

In his new position, Wood will have responsibility for the Sonoco-Alcore business unit that includes 30 tube and core plants and six uncoated recycled paperboard mills operating in 15 European countries with more than 1,650 employees. He will report to John Colyer, VP, Global Industrial Converting.

Wood joined Sonoco in 2003 as regional sales director for the company's European tube and core business. He then served as a regional sales manager for Sonoco's North American tube and core business before returning to the company's European business in 2007. Prior to joining Sonoco, Wood served in sales management positions with Pactiv Ltd., and Tenneco in Europe. He is a member of the Chartered Institute of Management and holds an MBA from Bradford University School of Management.

Smith, a member of Sonoco's executive committee, joined the company in 1990 after it acquired the composite can business of Carnaud Metal Box, where he served from 1971 to 1990. He subsequently held several GM positions at Sonoco, including for the company's European consumer products operations and its flexible packaging business in North America. Prior to heading industrial operations in Europe, Smith was VP of customer and business development at the company's headquarters.


This December, get to know TAPPI member Andrew "Andy" Jones, Ph.D., as he stars in the Member Spotlight. Andy is currently Senior Engineering Fellow for International Paper where he is responsible for recovery boiler operation improvements and upgrades, environmental compliance and identifying green energy opportunities.

He has written articles for TAPPI JOURNAL, Pulp and Paper Canada, and the Journal of Pulp and Paper Science. An active volunteer throughout his membership, he served as Chair of this year's highly successful EPE/PEERS Conference and will start his first term as Engineering Division Chair in 2011-2012.

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member (or even yourself!) just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire to fill out and return.

We look forward to seeing you in the Spotlight!


P. Borje Wahlstrom, 84, died at home in Audubon, Pa., USA, on October 4. He was born in Harnas, Sweden, on September 29, 1926, and moved to the U.S. in 1965, becoming a U.S. citizen in 1991.

Graduating in 1949 from the Swedish Royal Institute of Technology with a degree in Chemical Engineering, Wahlstrom joined the pulp and paper industry, working first for several pulp and paper companies and then a prominent machinery manufacturer. Always passionate about his work, he launched his own successful consulting business in 1973, from which he reluctantly retired in 2000.

During the course of his career, Wahlstrom was granted more than 50 patents and received a considerable number of awards. In 1992 he was recognized with the Gunnar Nicholson Gold Medal, the highest honor in the pulp and paper industry, for his preeminent scientific and engineering achievements of proven commercial benefit to the industry.

Wahlstrom traveled the world for work and fun. His hobbies included tennis, table tennis, bridge, reading, dancing, and socializing. He was fiercely competitive and did nothing to hide it. He will be best remembered for his intellect, sense of humor, and exuberant optimism.

He was preceded in death by his wife, Jean, and is survived by three daughters and four grandchildren.

It's never too early to begin planning for a 100th anniversary, and we're pulling out all the stops. TAPPI will celebrate its 100-year anniversary in 2015 and it is time to start planning for it now. If you are interested in participating on a committee to plan this historic occasion, please contact David Bell at dbell@tappi.org.

Make your plans now to join professionals from industry, universities and research institutes at the 13th TAPPI European PLACE Conference, which will be held 30 May to 1 June 2011 at the Festspiel- und Kongresshaus in Bregenz, Austria.

The technical program for this biennial conference will have a special emphasis on the latest trends and technologies relating to extrusion, coating, and lamination of web-based materials.

Topics to be covered include:

• Developments in web materials, polymers and adhesives - their behavior and processing
• What's new in converting technology – extrusion, lamination and process control
• Final product design – a society commitment considering sustainability
• Characterization – inspection, methods and standards for materials

Register online or download the faxable registration form.


TAPPI has announced its course schedule for the first quarter of 2011. It will include three TAPPI courses and one North Carolina State University course. The first courses – Introduction to Pulp and Paper and Kraft Recovery – are being offered January 10-13.

Taught by seasoned industry experts, these courses provide skill development and enhancement to professionals in the pulp, paper and converting industry. The courses include topic overviews, specific problem-solving sessions and solutions-oriented curriculum. The 2011 first quarter courses, their dates and locations include:

Introduction to Pulp and Paper Technology, January 10-13, St. Petersburg, Florida -- This course is ideal for anyone new to the pulp and paper industry. It offers a comprehensive overview of the entire pulping and papermaking process.

Kraft Recovery, January 10-13, St. Petersburg, Florida – The Kraft Recovery module is a thorough review of key recovery operations in kraft pulp mills. It is designed to help attendees improve pulp production efficiency ,minimize operating costs and reduce environmental impact.

Best Practices on the Corrugator, February 15-18, Norcross, Georgia – Through TAPPI Best Practices on the Corrugator, a range of plant employees will learn how to achieve higher productivity, better product quality and waste reduction during one comprehensive course.

Hands-On Workshop for Pulp and Paper Basics, March 14-18, NC State, Raleigh, NC --This hands-on workshop will provide a broad overview of Pulping, Bleaching, Chemical Recovery, Recycling, Papermaking and Converting. The 5-day course will consist of presentations in the morning and hands-on laboratory and pilot-plant exercises in the afternoon.

More information is available on the TAPPI courses website about the specifics of these offerings, including registration costs and deadlines.


The world's leading pulp and paper event, SPCI, takes place in Stockholm, Sweden, May 17-19, 2011. For the 2011 event, the organisers, Adforum and the Swedish Paper Engineers Association, are introducing a brand new concept – The Magic Future of Pulp & Paper. The essence of the concept is simple but important – making it easier for people to meet.

The heart of the event will be the three squares in the hall. The squares will hold all major conference activities and entertainment during the three-day event. This means that the SPCI 2011 conference is free for all participants of the SPCI event. Each square will have a separate program and the three programs run simultaneously during the event, offering a variety of presentations for visitors and exhibitors.

The SPCI event in 2008 attracted almost 14,000 visitors from 61 countries making it the most international event in the industry. The booking and allocation of stands are already in progress. For more information and contact details, visit www.spcievent.com


The University of Maine Pulp and Paper Foundation in Orono, Maine, recently distributed more than $262,000 in scholarship funds to engineering and forestry students interested in pulp and paper industry-related careers.

The fall 2010 semester scholarship recipients were announced at a Sept. 16 banquet attended by more than 80 students and 15 people who employ UMaine students through co-op programs or internships.

"The Pulp and Paper Foundation is a key resource for the future engineers of our industry," noted Dale Wibberly, Sappi Fine Paper North America's human resource manager at the event. "We are very excited about the quality of engineering students who have obtained their education from UMaine."

"Our scholarship budget in 2010 is more than $750,000, allowing us to support 90 students with full tuition scholarships – most of our scholarships are for engineering students, but several are targeted for forestry majors," added Jack Healy, the foundation's executive director. "The job market for engineers in the paper industry looks very strong over the next 10-15 years, primarily due to current engineers in our industry reaching retirement age."

The Pulp and Paper Foundation was founded in 1950 and has supported more than 3,000 students.
For more information about the Pulp and Paper Foundation Scholarship program visit www.mainepulpaper.org.


Join industry experts, scientists, health and safety specialists, legal and government policy makers, and leading researchers June 6-8, 2011 in Arlington, Va., USA for the latest in nanotechnology research and development at the 2011 TAPPI International Conference on Nanotechnology for Renewable Materials.

Formerly known as TAPPI's International Conference on Nanotechnology for the Forest Products Industry, the title of this annual conference has been changed to reflect the advances in nanotechnology in renewable materials and their widespread applications in many other industries. The technical focus of the conference has been expanded to include other nanomaterials along with cellulose to fully embrace all nano-enabled biomaterials.

This year's conference theme is Nanotechnology for a Sustainable Future. You will find presentations focusing on several key thematic areas such as:
• Nanocellulosics and Nanocomposites
• Applications of Renewable Nanomaterials
• Nanostructured materials by Self Assembly
• Nanotech Coatings and Novel Nano-Enabled Functionalities
• Governmental & Environmental Issues

Abstracts are currently being accepted for this one-of-a-kind event. View the call for papers. Reduced conference rate available for speakers.


The Call for Papers for the 2011 Progress in Paper Physics Seminar is underway.

Since 1980 the Progress in Paper Physics Seminar has been organized biannually by the TAPPI Paper Physics Committee. The 2011 event, taking place September 5-8 at Graz University of Technology in Graz, Austria, will cover all areas of fiber and paper physics, i.e. characterization, behavior and performance of fibers, papermaking processes and the final product. Both theoretical and applied research papers are welcomed. A poster session will provide the opportunity to discuss selected contributions peer-to-peer.

Learn more about the event and the call for papers. The deadline to submit is January 31, 2011.


"In this life we cannot always do great things. But we can do small things with great love." – Mother Teresa

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