Voith Paper

Over the Wire

TAPPI

Weekly Spotlight
U.S. manufacturing grew at its fastest pace in seven months in December, extending a recent run of encouraging economic data and suggesting that expansion of the world's biggest economy will accelerate in 2011. The Institute for Supply Management's (New York, N.Y., USA) national factory activity index rose to 57 from 56.6 in November, marking the 17th consecutive month of growth in the manufacturing industry, with a rise in new orders providing momentum for further growth, according to a Reuters News report this week.

A separate report on Monday showed construction spending hit a five-month high in November, more evidence that the U.S. economy picked up steam in the final quarter of last year.

"These good numbers continue the story of an economic recovery," said David Carter, chief investment officer at Lenox Advisors in New York. "For the market in general, we're off to a new start and people are optimistic."

Monday's data dovetailed with strong readings on employment and consumer spending over the last few months of 2010, leading economists to bet a fragile U.S. recovery may this year finally turn into self-sustaining growth.

Congress' decision last year to extend U.S. tax cuts has also aided consumers and lifted U.S. stock indexes, and economists say that may convince the Federal Reserve to end a $600 billion stimulus program as planned in mid-2011, the Reuters report noted.

"We're starting off the new year on a strong foot," said Zach Pandl, U.S. economist at Nomura Securities, adding the manufacturing report "suggests the economy is accelerating and growth should be 3 percent in the first quarter."

European factory output also accelerated in December while growth in China and India slowed but remained robust. A healthy global economy is good news for U.S. exporters.

Construction spending was lifted by investment in public projects, which rose 0.7%, while private investment rose to the highest level since June despite continued housing market weakness.

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According to a Reuters News report this week, Finland-based UPM-Kymmene is denying a newspaper report that is looking to build a $2 billion pulp mill in eastern Russia. Finnish business daily Kauppalehti reported that the governor of the Russian region of Irkutsk said last month local authorities and UPM were negotiating the construction of a million-metric ton pulp mill, estimated to cost $2 billion, in Ust-Kut.

"We are not aware of such plan. We deny that this would be going on," spokeswoman Sini Paloheimo said in the business daily.

Last month, UPM-Kymmene said it was buying debt-laden rival Myllykoski, bringing much needed consolidation to a European paper industry struggling with overcapacity and weak demand.

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Market Roundup
The wood chip cost discrepancy between pulp mills in Western and Eastern Canada was the lowest it has been in 10 years in the fourth quarter of 2010, according to the North American Wood Fiber Review (NAWFR), Seattle, Wash., USA. During the past 20 years, pulp mills in Eastern Canada have consistently had higher wood fiber costs than mills in the Western provinces, with the exception of a short period in 1995, NAWFR notes.

One year ago, it adds, pulp manufacturers in British Columbia paid almost C$60/odmt less for softwood chips than did pulp mills in Ontario and Quebec, and five years ago the difference was almost C$100/odmt. Because wood costs account for almost 50% of the production costs for Canadian pulp mills, companies in Eastern Canada have been at a competitive disadvantage to many other mills, not only in other regions of Canada, but throughout North America, NAWFR explains.

During the past 12 months, softwood chip prices to mills in Ontario and Quebec declined 10%, and were 25% lower in the 4Q/10 than five years ago. In U.S. dollar terms, wood costs in Eastern Canada are now lower than most countries in Europe, as reported by the Wood Resource Quarterly, also based in Seattle.

In the 3Q, wood chip prices in Western Canada increased again due to their formulaic tie to market pulp prices. However, they did not go up as dramatically on a quarter-by quarter basis as they did from 1Q to 2Q earlier this year. The latest uptick resulted in prices at levels not seen since 2001. Pulp mills in the region currently have some of the highest chip prices in North America. With NBSK pulp prices now beginning their descent, softwood chip prices will follow downward in the coming quarters, NAWFR predicts.

Despite a price decline in Eastern Canada and an increase of almost 40% in one year in the West, pulp mills in British Columbia continue to have lower wood fiber costs than mills in the eastern provinces of the country. More information is available online.

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Total U.S. industry consumption of recovered paper was 2.49 million tons in November, 3% lower than November of last year and 6% lower than last month, according to the November 2010 Recovered Paper Monthly Report published by the American Forest & Paper Association (AF&PA), Washington, D.C., USA. However, the U.S. consumed 7% more recovered paper in the first 11 months of 2010 than during the same period of last year.

The U.S. exported 9% more recovered paper in October than in September. Year-to-date exports of recovered paper are down 2% compared with the same months last year, the AF&PA report notes.

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In December, No. 5, 40-lb offset roll list prices were flat at $795 - $875/ton on a m/m basis, reports Mark Wilde, senior analyst with Deutsche Bank. The recent big news, he says, was UPM's agreement to acquire Myllykoski, adding that the much-anticipated move helps consolidate the European publishing papers market.

NewPage's recent announcement to close its 250,000 tpy LWC mill in Whiting, Wis., USA, by late-February failed to save a January $20 - $50/ton hike attempt, Wilde notes. NewPage was forced to rescind the move. Preliminary November shipments were essentially flat y/y, down 0.6% y/y. On a YTD basis, shipments are +12.2% y/y, according to Wilde.

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November box figures suggest that the containerboard demand trajectory is slowing, Wilde continues. On a blended basis (mix of actual and average week), shipments were +2.8% y/y against a YTD increase of 3.2% y/y. Inventories are creeping upward (+342,000 tons since May) and export prices are falling. "All of this suggests to us that producers must take more downtime in January. We note there are reports of major producers throttling back production to avoid inventory building, but public commentary has been nonexistent (we think this is to avoid anti-trust concerns)," Wilde says.

On the cost side, he adds, domestic OCC prices continue to rise, up $43/ton since July. In the near-term, this is apt to squeeze Q4 and Q1 margins for recycled mills and could create some cost-push pressure on prices. In the trade papers, December domestic price quotes were flat, "consistent with what we're noting in the market." However, export prices are easing. The biggest drops have occurred in marginal markets like the Middle East—off at least $100/ton. Latin American prices are easing as well, Wilde reports.

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Wilde further reports that, according to data released by the Pulp & Paper Products Council, November global pulp shipments increased on a m/m and y/y basis, up 2.7% and 1.4%, respectively. Hardwood shipments were up 10.4% m/m, largely due to higher shipments into China. This sequential improvement was somewhat offset by softwood shipments (-3.5% m/m). Inventories declined by two days to 32 "days of supply." These numbers were stronger-than-expected and should help to support pulp prices, Wilde notes.

Pulp production rose in November, with operating rates climbing from 87% in October to 92% in November, Wilde adds. Global shipments also increased by 92,000 metric tons to 3,348,000 metric tons. Despite higher production levels, both softwood and hard wood inventories decreased by one day of supply: (1) hardwood fell from 43 to 42 days, and (2) softwood fell from 26 to 25 days.

Shipments to purchasers in Latin America and China showed the strongest m/m comparisons, up 10.8% and 14.2%, respectively, according to Wilde. The improvement was muted by weaker shipments to Japan (-5.4% m/m) and Western Europe (-1.9% y/y). Despite weaker paper volumes in North America, pulp shipments increased 1.3% m/m and 2.7% y/y.

With demand trending positive and inventories in check, the November figures look positive for pulp producers, Wilde points out. Three large pulp producers, Arauco, Botnia, and Domtar have just announced $10/metric ton increases for softwood pulp to China in January, suggesting that they are also seeing bullish signals in the market.

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Naylor, LLC
Pulp & Paper
Ahlstrom, Helsinki, Finland, reports that it has completed the divestment of Ahlstrom Altenkirchen GmbH in Germany to Pennsylvania, USA-based Interface Solutions. Ahlstrom last month had announced the sale of the Altenkirchen site to Interface Solutions, a portfolio company of family owned private equity fund Susquehanna Capital. The value of the transaction is approximately EUR 6.5 million. Ahlstrom will book a non-recurring gain of approximately EUR 5 million from the sale in its fourth-quarter 2010 financial result.

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Clearwater Paper Corp., Spokane, Wash., USA, has completed its acquisition of Cellu Tissue Holdings, Inc., an Alpharetta, Ga., USA-based manufacturer of tissue products. Clearwater now has 14 manufacturing locations in the U.S. and Canada, with a fifteenth under construction at Shelby, N.C.

"The acquisition significantly expands our tissue business to serve a broad customer base through a truly national network of sales and management professionals, talented manufacturing employees, and strategically located production facilities," said Gordon Jones, chairman, president, and CEO. "The acquisition supports our strategy to grow our private label tissue business while providing the opportunity to diversify into new channels."

Bob DeVleming, VP of consumer products, said that "we are excited about the opportunities the combined company offers our customers, and are pleased to welcome our new employees to the Clearwater Paper family. We are ready to put the combined talents of all of our employees into action to best support Clearwater Paper's existing and new customers."

Clearwater Paper paid $12 per share in cash for Cellu Tissue's outstanding common stock and funded the acquisition using a combination of existing cash on hand and $375 million of debt financing. The purchase price was approximately $530 million, including equity value of approximately $247 million, retired debt of approximately $267 million, and assumed debt of approximately $16 million. The retired debt amount included approximately $32.5 million from Cellu Tissue's credit facility.

In connection with the acquisition of Cellu Tissue, Clearwater Paper also completed its previously announced cash tender offer to purchase any and all of Cellu Tissue's outstanding 11½% Senior Secured Notes due 2014. The tender offer expired at 11:00 a.m., New York City time, on Dec. 27, 2010. Based on the final tabulation provided by D.F. King & Co., Inc., the depositary and information agent for the tender offer, the aggregate principal amount of Cellu Tissue notes that were validly tendered and not validly withdrawn prior to the expiration time was $234.479 million, representing 99.99% in aggregate principal amount of the Cellu Tissue Notes.

Clearwater Paper manufactures consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard, pulp, and wood products at 14 manufacturing locations in the U.S. and Canada. The company also produces bleached paperboard used by printers and packaging converters.

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Fibria Celulose S.A., Sao Paulo, Brazil, reports that it has agreed to sell its stake in the consortium Consórcio Paulista de Papel e Celulose (Conpacel), headquartered in Limeira, State of São Paulo, to Suzano Papel E Celulose S.A., also of Brazil. The deal provides that Suzano will pay R$1.45 billion for the acquisition of 50% of Conpacel's assets from Fibria, which includes the mill with a 650,000 metric tpy pulp capacity, 390,000 metric tpy of paper capacity, and Conpacel's forestry area (76,000 hectares and around 71,000 hectares of plantation, of which 53,000 hectares are owned and 18,000 hectares are leased). The deal also envisages payment of R$50 million for the acquisition of Fibria's KSR paper distribution operation. Completion of the sale of Conpacel's assets will occur by January 31 and the KSR assets by February 28.

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Metso, Finland, and Howe Sound Pulp & Paper, Canada, have announced an agreement to retrofit the existing Babcock and Wilcox biomass power boiler at Howe Sound's pulp and paper mill at Port Mellon, B.C. Metso will convert the existing hydrograte stoker boiler to a bubbling fluidized bed (BFB) boiler. To be conducted in June 2011, the retrofit will increase the boiler's steaming rate on biomass, improve the overall reliability and operability of the boiler, reduce maintenance costs, and increase the mill's ability to produce power for the BC Hydro grid.

The retrofit includes pressure parts, fuel and ash handling, and installation. Complete automation of the boiler island includes the process automation system, emission monitoring and reporting, instrumentation, and electrification retrofit.

Funding for the project is part of the Green Transformation Program provided by the Canadian government.

"As a result of this investment in our boiler, we will become one of the largest independent producers of wood-fuelled renewable electricity in British Columbia," said Mac Palmiere, president and CEO of Howe Sound Pulp & Paper.

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International Paper Co., Memphis, Tenn., USA, reports that nonprofit organizations and schools have until January 14 to apply for $50,000 worth of foundation grants from the company's Pensacola, Fla., Mill. The grants are being awarded by the IP Foundation in Memphis to organizations that focus on environmental education, literacy, employee involvement, and other critical community needs. More information, including application forms, is available online.
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Norske Skog, Norway, reports that it has signed a long-term contract with Statkraft for supply of power to the company's newsprint mill at Skogn in Mid-Norway. The contract secures the continued operations at the mill, which needed a new long term power supply contract by the beginning of 2011.

"We are very pleased with the agreement. Norske Skog Skogn is important to Norske Skog and for the forestry industry in Mid-Norway. This will help securing the workplaces at Skogn," said Norske Skog President and CEO Sven Ombudstvedt.

The new contract with Statkraft, which took effect January 1, secures a yearly supply of 0.8 TWh of electricity per year until Dec. 31, 2022. In addition to Norske Skog, the agreement is negotiated in cooperation with Finnfjord AS, which will secure power supply for its smelter at Finnsnes in Northern Norway.

Norske Skog Skogn, which started up in 1966, employs 500 people. The U.K. is its biggest single market.

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Svenska Pappersbruket AB's Klippan mill in Klippan, Sweden, has reportedly ordered a major rebuild of its No. 9 tissue machine from Metso of Finland. Startup of the rebuilt PM 9 is scheduled for the third quarter of this year. Metso's delivery includes a major rebuild of the existing suction breast roll forming section, which will be replaced with an Advantage DCT type crescent forming section, a rebuild of the existing approach and stock preparation system, and a minor rebuild of the existing press section. A state-of-the-art OptiFlo II TIS headbox is also included in the delivery.

The project, designed to meet growing market demand and to further increase product quality, operating speed, and production capacity, as well as to reduce energy consumption, will be handled on an installed basis, including dismantling of the existing equipment, complete installation, and startup and training services. The total investment is EUR 2 million.

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Weyerhaeuser's Grande Prairie, Alberta, Canada, pulp mill will receive more than $32 million from the Canadian Pulp and Paper Green Transformation Program. Weyerhaeuser will invest its credits in a new turbine generator so that the Grande Prairie mill can better meet its own energy needs and sell excess electricity to the grid. As a result, some 2,800 homes in regions that need electricity will have access to carbon-neutral power.

"At a time when the global economy is still fragile, clean energy projects are helping to drive the transformation of Canada's forest sector toward a more secure future," said Rob Merrifield, Minister of State for Transport. "Challenging market conditions have pushed this industry to seek out new partnerships and explore the broad range of products wood can yield. Through strategic investments, our government is helping create the conditions for success today and beyond."

The total value of the turbine generator project is approximately $50 million. The Government of Alberta is contributing $4.5 million and Weyerhaeuser is investing the remaining amount.

"Alberta's bioenergy programs support companies like Weyerhaeuser as they improve their environmental performance and increase their production of renewable energy," said Wayne Drysdale, Member of the Legislative Assembly for Grande Prairie–Wapiti. "This project is a win for the paper and pulp sector as it becomes more environmentally sustainable, a win for Alberta as we achieve cleaner energy production, and a win for our communities as new funding for projects continues to attract new private sector investment to Alberta."

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Containerboard/Packaging
KapStone Paper and Packaging Corp., Northbrook, Ill., USA, a producer of unbleached kraft paper products and linerboard, today reported that it has prepaid the balance of earn-outs due to International Paper Co., Memphis, Tenn., USA. The earn-out obligations arose from the June 23, 2006, agreement for the company's purchase of IP's kraft paper business assets, including a paper mill located in Roanoke Rapids, N.C., and a dunnage bag manufacturing facility in Fordyce, Ark. A portion of the earn-out obligations was paid to IP upon the sale of the dunnage bag business in March 2009, leaving a potential $55.0 million payment in April of 2012.

KapStone said that it could not foresee any realistic scenario that would result in a reduction of the $55.0 million obligation. However, the early payment allowed it to take advantage of an 8% annualized discount, reducing the obligation from $55.0 million to $49.7 million, a savings of $5.3 million. The earn-out payment will be accounted for as goodwill.

"We have been very pleased with the outstanding performance of the Roanoke Rapids operation, and we look forward to continued excellent results. Quite frankly, I would have been very disappointed if this payment had not been earned," said Roger W. Stone, chairman and CEO.

KapStone Paper and Packaging Corp. is the parent company of KapStone Kraft Paper Corp. that includes mills in Roanoke Rapids and North Charleston, S.C., a lumber mill in Summerville, S.C., and five chipping mills in South Carolina. The business employs approximately 1,600 people.

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Graphic Packaging International, Marietta, Ga., USA, a subsidiary of Graphic Packaging Holding Co., has approved a plan to expand utilization of biomass energy in its Macon, Ga., paperboard mill with an estimated cost of up to $80 million. The project, which will include a high-efficiency biomass boiler and a 40 MW turbine generator, will begin immediately.

The objectives of the biomass project are to further the company's sustainability strategy, reduce energy costs, and improve profitability of the Macon mill in advance of expected increases in electricity costs. The mill currently produces approximately 1,600 tons of paperboard per day.

The company intends to complete the project and begin operations by mid-year 2013. The new biomass system is expected to make the Macon mill self-sufficient from an electrical power and steam generation standpoint, thereby stabilizing and reducing energy costs and dependency on fossil-fuel based alternatives. The mill expects to become a net producer of electricity.

Expected biomass system benefits:

  • Will provide energy from biomass – a carbon neutral, renewable energy source.
  • Will generate approximately 40 MW of power per hour from a renewable energy source – or enough electrical power to support approximately 27,400 homes per year.
  • Will reduce the Macon mill's fossil-fuel based greenhouse gas emissions by approximately 200,000 tpy through the substitution of biomass--the emissions equivalent of approximately 35,000 passenger cars.
  • Will generate power from approximately 400,000 tpy of logging residuals (tops and branches of trees). An estimated 3.3 million tpy of residuals are currently available in the Macon area.

"Graphic Packaging is committed to engaging in more sustainable manufacturing processes," said President and CEO David Scheible. "This biomass project will not only make use of untapped renewable resources, but it will also add value to the Macon, Ga., community as a whole."

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November U.S. containerboard and box volumes showed signs of easing, reports Mark Wilde, senior analyst with Deutsche Bank. Shipments were up 4.6% on an "actual" basis, but were flat on an average week basis. Inventories were +1.7% m/m, but remain at low levels. Domestic linerboard prices were flat at $640. With a slowing demand trajectory, and seasonally weaker shipments, the current focus for box producers should be defense as they attempt to maintain existing price levels.

The increase in actual containerboard and box shipments was mostly due to +1 shipping day this year compared with November 2009. "On an average week basis, this is the weakest comp we've seen since January 2010. On a ‘blended' average of 2.8% (mix of actual and average week), the result compares to an YTD volume gain of 3.2%. Looking ahead, we think December is likely to show further deceleration in the numbers," Wilde explained.

Combined mill and box plant inventories increased 38,000 tons m/m to 2.274 million tons. "Looking over the past 10 years, there is no clear directional trend in inventory shifts from October to November. On average, inventories have risen 5,000 tons m/m in November, with a standard deviation of 49,000. Inventories have now increased 342,000 since May trough levels. Normally, this would be a highly disturbing trend, but even after this rapid increase, inventories remain lean by historical standards," Wilde said.

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New Products
NORAM Engineering, Vancouver, B.C., Canada, reports that it has received a third order for a Precipitator Dust Purification (PDP) System, for implementation at a kraft pulp mill in the U.S. Southeast. Commissioning of the ion-exchange system, the second for this client, is scheduled for June.

The PDP technology is a joint development of Eco-Tec Ltd, FP Innovations, and NORAM Engineering. The ion-exchange system purges metal chlorides from the kraft mill recovery cycle, that otherwise result in sticky deposits in the recovery boiler, and constrain overall mill production. The technology provides very high selectivity, with losses of valuable chemicals amounting to less than 4% of the total treated. A further benefit of the system is the elimination of variations in the liquor-cycle chemistry caused by periodic purging of precipitator dust. Implementation of the first two systems, commissioned in 2008 and 2010, yielded immediate benefits in chemical make-up requirements, the company reports.

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MeadWestvaco (MWV), Richmond, Va., this week introduced its tear-resistant paperboard-security carton packaging solution. This new product complements the company's Natralock security package, and offers brand owners and retailers additional options in security packaging solutions that allow them to display their products on the shelves without the use of obtrusive and expensive security devices such as spider wraps, locked cases, and safers.

The customizable security carton is especially suitable to consumer electronics products as it permits shoppers to access the product on the shelf, ultimately improving the brand experience. The recyclable paperboard provides 360⁰ of printable space for brand owners to communicate to shoppers. And while it cannot be ripped open in the store due to its proprietary tear-resistant technology, it can be opened safely when using a pair of household scissors.

A recent study from the National Association for Shoplifting Prevention reported retail shrinkage costs more than $120 billion globally. A common method of reducing product shrinkage is to lock products in cases or in "spider wraps" – a measure that can alienate consumers.

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Published Pricing
BASF's Paper Chemicals Division, Charlotte, N.C., USA, will increase prices of sizing chemicals, colorants, and polymers for strength, fixation, and water management sold into the North American paper market, effective January 15 or as contract terms allow. The price increases range from 5% to 15%, depending on the product. This action is necessary to offset raw material cost increases, the company notes.

BASF Corporation, headquartered in Florham Park, N.J., USA, is the North American affiliate of BASF SE, Ludwigshafen, Germany.

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Omnova Solutions, Fairlawn, Ohio, USA, has announced a price increase of $0.05 per dry lb for all styrene butadiene emulsion polymers and $0.05 per wet lb for all acrylic, styrene acrylic and vinyl acrylic emulsion polymers. The increase is effective January 17 for all specialty markets. This increase, the company notes, "is necessitated by continuing escalation in the costs of key raw materials and is in addition to previously announced increases."

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Energy
Metso, Finland, reports that it will supply Oü Helme Energia with a biomass power plant for combined heat and power production (CHP) in the township of Helme in Estonia. The power plant will be delivered by the Metso-Wärtsilä joint venture MW Power. The delivery scope includes a plant automation system, which will be delivered by Metso's Automation business line. The value of the order is over EUR 15 million. Startup of the plant is scheduled for the third quarter of 2012.

The biomass power plant will utilize bubbling fluidized bed (BFB) technology and will use a combination of spruce bark, chipped logging residues and wood chips, or milled peat as the main fuels. The plant will produce 15 MW of heat and 6.4 MW of electricity, which will partly be utilized in the customer's own pellet factory and the rest will be distributed onto the national grid.

Oü Helme Energia is a subsidiary of AS Graanul Invest, a private capital based company dealing with bioenergy and renewable energy production. Today AS Graanul Invest is the biggest producer of pellets in the Baltics and with its high production volumes counts among the top five European producers.

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People
Dr. Heidi Fagerholm has been appointed EVP for Research & Development and Technology, and a member of the Strategic Management Board of Kemira, Finland. She will also continue until further notice as head of the Espoo R&D center in Finland, in which position she started in November 2010.

Dr. Fagerholm joined Kemira from Ahlstrom Group where she worked as VP, Product Development. Before joining Ahlstrom she held various positions in chemical industry companies, one being the head of the Technical Center Europe of Ciba Specialty Chemicals Oy. She will succeed Johan Grön, who will leave Kemira.

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Packaging Solutions Holdings, New York, N.Y., USA, has named Tim French COO, effective immediately. French has more than 25 years of experience in the packaging industry, 10 of them as a COO. As VP and GM at Pliant Corp., he was responsible for a $300 million division, overseeing multiple plants in several countries, and a 30-person sales team. Before Pliant, French was president and CEO of a Canadian-based manufacturing company, Snowbear Ltd., and before that was president and COO of PCL Packaging, with operations in both Canada and the U.S. He began his career as a plant manager at Uniplast Industries, another Canadian packaging firm.

Packaging Solutions Holdings also announced that Jon N. Solberg has been named VP for Business Development, effective immediately. Solberg will lead the company's initiatives in the cheese and meat packaging markets. He has extensive sales and supply chain experience in the packaging industry. Prior to Packaging Solutions Holdings, he was product applications manager at PCC Industries. In addition, he was a sales leader at Pliant Corp., international supply chain director at Commercial Packaging; and director of sales and marketing at American Plastics Co.

Packaging Solutions Holdings was founded by Wellspring Capital Management and industry veteran Harold Bevis. It is focused on packaging for the food, medical, and consumer markets. The company's first division was Jen-Coat, which supplies the food packaging, medical, and industrial markets with a wide range of extrusion laminated, extrusion coated, metalized, and adhesive laminated structures. Products include paper/foil laminations, film/foil laminations, film/film laminations, composite can laminations, coated nonwovens, coated papers, release liners and other specialty packaging materials.

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TAPPI News

Start the New Year off right by getting to know TAPPI member Udaykumar Raval as he stars in the Member Spotlight. Uday is currently a Senior Process Engineer with Pall Life Sciences where he is responsible for membrane manufacturing, new product commercialization and yield improvement.

An active member since 1996, Uday has served in several officer roles on the Fibers and Process Committee, and is also active on various committees such as Filtration; Fibers and Process; Materials, Characterization and Modeling; Division Steering; and the NETInc Technical Program. Most recently he served as Technical Program Coordinator for NETInc 2010.

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!

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Congratulations to TAPPI's 2011 class of Board Level Association award winners. They include:

2011 TAPPI Gunnar Nicholson Gold Medal Winner
Richard A. Reese, Dick Reese and Associates Inc.

2011 TAPPI Herman Joachim Distinguished Service Award Winner
Peter D. Wallace, Arclin

TAPPI Fellows Class of 2011

Shih-Chin Chen, ABB Inc.
Ergilio Claudio-da-Silva Jr., Fibria Celulose S.A.
Thomas J. Garland, PaperWorks Industries Inc.
Kenneth C. Hill, Kadant Johnson Systems
J. David McDonald
Vince Newberry
, Mondi Akrosil LLC
Ivan I. Pikulik, Ivan Pikulik Consulting
Nicki S. Slusser, International Paper
R. Duane Smith, Davis-Standard Converting Systems
Thomas O. Trueb, EFI Solutions Inc.

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SPCI World Pulp & Paper Week is arranged by Adforum and the Swedish Association of Pulp and Paper Engineers (SPCI). The event is organized in Stockholm, Sweden, every third year. Next in line is the 15th edition scheduled on May 17-19 2011.

For SPCI 2011, the organisers are introducing a brand new concept - The Magic Future of Pulp & Paper. This concept involves free access for everyone to the SPCI 2011 conference, which will be held at the three activity squares in the exhibition hall.

Each square will have its own program and the three programs will be running simultaneously during the event, offering a variety of presentations for visitors and exhibitors throughout the day. World Market, Management and Innovations are some of the topics highlighted at the Magic Future Square. The East and West squares will host more of a technical based type of presentations and seminars divided into five different subject areas; Pulp & Paper, Innovations, Energy, R&D and Raw Materials/Bioenergy.

Exhibitors at SPCI 2011 can become Event Partners (Magic Future Partners and East/West Partners), which means that slot-time is already reserved. The conference program is set by the association SPCI and the Magic Future Partners. A preliminary program will be available in February 2011. If you would like to become an event partner and guaranteed not only slot times at the squares but also unique visibility during the event, please contact the Organisers, Adforum or SPCI, as soon as possible.

Booking and preparations for SPCI 2011 are in full progress and the booking pressure is significant. The exhibition floor is already filled to more than 80 percent with bookings and reservations. Please use below links to see an updated Floorplan and List of Exhibitors.

Please click to see the Hall Plan

Please click to see a List of Exhibitors

Thanks to an extended main hall at Stockholm International Fairs, the SPCI event will, for the first time, fit into one hall. To secure a good location in the hall, click here to fill out the online registration form and get in immediate contact with our sales team.

For more information on this year's largest and most international pulp and paper event, visit the website to find updated news and contact details.

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The annual TAPPI Shipping, Receiving and Warehousing Workshop will take place April 11-13 at the Hilton Nashville Downtown. Join a dedicated group of mills, carriers, warehouses and printers as they establish standards to reduce in-transit damage to rolls of paper.

Highlights include a report from the participants in a six-month trial of the "qMetrix for Transportation" system, which provided real-time roll inspection reports to help identify the causes of roll damage. Preliminary results indicate there is a great potential for cost savings and improved profits for everyone involved in the printed media supply chain.

In addition, you'll hear presentations from publishers, rail and truck carriers and benefit by networking with contacts through the entire paper supply chain (mills, warehousing, shippers, rail, truck and end users. Registration is open and sponsorships are available. Learn more.

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John D. Williams, president and CEO of Domtar Corporation, will present the keynote address at PaperCon 2011, May 1-4, 2011.

Join your peers and industry leaders for PaperCon, four days of concentrated technical content and unrivaled networking opportunities for papermaking professionals. The 2011 event will challenge attendees to rethink paper by focusing on lean manufacturing, operational excellence and environmental performance through three unique program tracks, as well as forums on sustainability and tissue.

Williams will keynote on Monday, May 2, and focus his address on Domtar's business approach and the integral role sustainability plays in its activities. Domtar is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world. It is also a major manufacturer of papergrade, fluff and specialty pulp and strives to be recognized as a supplier of choice by its customers and consumers and as an industry leader when it comes to sustainability.

PaperCon is North America's largest pulp and paper conference, bringing together industry leaders and technical experts from around the world. In 2011, the theme is "Rethink Paper: Lean and Green" -- highlighting new ways to improve efficiency, use less water, fiber and air, and achieve operational excellence. The unique program of peer-reviewed papers and invited speakers will attract CEOs, mill managers, superintendents, scientists and process engineers from around the world. Learn more.

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This October, 32 paper and chemical engineering students from Western Michigan University boarded a charter bus to visit the Appleton and Neenah areas of Wisconsin on an industry-sponsored field trip. Many thanks to Voith North America President and PTF Board Member Bob Gallo for sponsoring this outstanding trip. The Voith team toured students through Voith Fabrics, Voith Paper and Voith Coverings. Students were impressed with this supplier-based aspect of the business.

Appleton Paper then greeted the students for outdoor sports at their historical training facility, before dinner and overview of the company's research and development work. Many thanks to Dr. Paul Proxmire, Staff Scientist and PTF Board Member, for hosting this event.

The following day, students toured The Paper Discovery Museum to consider the history of paper with Executive Director David Lee, before touring the SCA Tissue Mill.

During October's recent PTF Board meeting, Student Recruiter/Outreach Officer Nikki Perk launched a first-time mentoring program to better assist new and returning students to meet and interface with board members. Students and board members alike had the opportunity to visit during lunch, as well as during another new event, PTF Greet and Meet, which took place prior to the board dinner, to continue conversations and learn more about one another.

Fifteen WMU students are anticipating attending January's TAPPI Student Summit to be held in Kingsport, Tenn., with Domtar sponsoring the event.

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To meet the changing needs of members to get information about their specific market segments, TAPPI has come up with two customized publications. One is for the Nonwovens industry and the other is for the Bioenergy community.

Nonwovens: The Nonwovens industry embraces a range of specialty interests – from hygiene and fabrics to filtration, insulation and more. Its activities are closely covered in TAPPI's Caught in the NET weekly newsletter. NET is the shorthand that TAPPI uses for Nonwovens Engineers & Technologists who deal with this business segment on a daily basis.

Market trends, industry challenges, and information from market solution providers are just some of what appears in the weekly distribution of news that comes to subscribers. Not already a subscriber? It's easy. It's available free to all industry professionals. Just sign up online or notify TAPPI's NET contact Craig McKinney at cmckinney@tappi.org for more information.

Bioenergy: During the past two years, TAPPI has become increasingly focused on the biofuels and bioenergy business segment. This effort formalized what had been a historical sector of the pulp and paper industry for more than a century. The newsletter itself is a direct response to growing interest inside and outside of the forest products industry.

First starting with a quarterly publication Bioenergy Technologies Quarterly, TAPPI heard from readers who needed more frequent updates on what was happening in their fast-changing environment. The result was Bioenergy Technologies Monthly.

As reader needs continue to evolve, the publication was most recently relaunched as BioPro News Wire (BNW). Like its predecessor, it features expert insights, issue spotlights, legislative recaps, people recognition, and more. Specifically, it summarizes activity by interest area like thermochemical/ biopower, chemical-biochemical-catalytic, pyrolysis/ biodiesel, and feedstocks.

Published 12 times a year exclusively for TAPPI members, BNW may be one of the biggest benefits that you get from TAPPI membership to help you make informed operating and investment decisions.

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Which industry segments trend upward? How is your company doing compared with competitors? Need a one-stop benchmark for industry performance and forecasting?

Then you need the 2010 TAPPI Industry Outlook Report: Performance Improves But Caution Remains

Save 10 percent on the TAPPI Industry Outlook Report, the most comprehensive strategic industry report of its kind! 407 companies, 15 market segments, complete data covering five and a half years, plus two years of forecasting.

Available NOW with up-to-date industry data you can't get anywhere else in a single report!

Filled with industry data, the TAPPI Industry Outlook Report is your key to a successful future in the paper and forest products industry. More than 400 publicly traded industry representatives participated in this comprehensive report that analyzes market segments, reviews growth trends and predicts how your company can be ahead of the curve as the market rebounds.

Commissioned by TAPPI, this 482-page report has been compiled using the latest data by FairValue Advisors LLC, a leading firm in analysis of performance measures including company size, growth projections, asset turnover, profitability, rates of return, investments and risk.

Just off the presses, the 2010 TAPPI Industry Outlook Report is a must-have for forward-thinking companies who want to lead the accelerating rebound in paper and forest products.

To order:

Save 10 percent off the price until January 15.

List Price: $670
Member Price: $445

Order online at www.tappi.org/bookstore or contact TAPPI's Member Connection Center at 1-800-332-8686 (US), 1-800-446-9431 (Canada) or +1 770-446-1400 (Worldwide) or by email at memberconnection@tappi.org.

List price after January 15 is $745 and $495 for members.

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Fund granting and energy organizations are in need of more standards that promote consistency in data reporting for the biomass and biofuels industry. TAPPI, an ANSI-certified developer of standards for the forest products, paper, packaging and converting industries, will conduct a Standards Summit in March 2011 to meet the growing demand for standardization of testing and best practices in bioenergy, feedstocks and biomass conversion technology.

One of the first steps toward adopting a full range of standards in the industry is the Bioenergy Standards Summit offered at the 2011 BioPro Expo & Marketplace™ to be held in Atlanta, Ga., USA, March 14-16, 2011, at the Hilton Atlanta.

"Our task force has been working diligently to craft the framework for a standards discussion at BioPro Expo," said Don Guay, chair of the TAPPI task force that was formed early in 2010. "We have taken into consideration the research being done, particularly in the area of feedstocks and have had initial conversations with those in the industry to begin to develop consistency in data reporting."

"National standards are needed that focus on characterizing the biomass raw material, as well as the different chemical and biological treatments that are used to treat the biomass material," said Colleen Walker, Ph.D. and TAPPI Project Manager. "Many established procedures are used today, but these are not national standards, nor is there consensus on which of these procedures is the best to use. National standards are important as they provide a universal guideline for all those active in the field."

"Initial conversations with those actively involved in bioenergy research show that they are willing to support the development of standards in these areas for the biomass industry," Guay said. "It would be beneficial to those seeking grants as well as to the field as a whole to have standards and best practices in place that are agreed upon universally. Other engineering disciplines have long established standards that guide research and testing. These did not come easily, nor were they developed in a vacuum. It will require a great deal of dialog to establish tried-and-true standards for bioenergy, and the meeting at BioPro Expo will certainly be an excellent first step."

BioPro Expo is the largest conference and exhibition in the Southeastern United States covering the full biomass processing spectrum for multiple industries, from supply through demand and utilization. In-depth educational sessions are backed by a trade show focused on cutting-edge technology, products and services available today. This event examines practical methodologies for quickly transitioning products, residues and waste streams into energy and biofuels.

BioPro Expo is organized by TAPPI, the leading association in the pulp, paper, packaging and related industries. TAPPI brings members with decades of experience in producing and utilizing bioenergy with wood waste feedstocks, as well as a strong history of more than 75 years in organizing key industry educational programs, conferences and exhibits. BioPro expo combines TAPPI's expertise in wood waste feed stocks and conference organization with information from government and academic entities, technology suppliers, renewable energy consumers and associations in multiple industries looking for more sustainable and profitable ways of doing business.

BioPro Expo & Marketplace is expected to draw industry leaders from across the United States. For registration information, visit 2011 BioPro Expo & Marketplace™.

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"Your living is determined not so much by what life brings you as by the attitude you bring to life; not so much by what happens to you as by the way your mind looks at what happens. Circumstances and situations do color life, but you have been given the mind to choose what the color shall be." – John Homer Miller

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Xerium Technologies, Inc.










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