Voith Paper

Over the Wire


Weekly Spotlight
Cascades Inc., Kingsey Falls, Qué., Canada, this week reported that its Norampac division will invest in a new, state of the art containerboard mill in New York State, USA, to be known as the Greenpac Mill LLC, a corporation created with the Caisse de dépôt et placement du Québec (the Caisse), Jamestown Container, and one other industry partner. Construction will begin next month, with startup scheduled for the summer of 2013.

The Greenpac mill will be constructed at a total cost of $430 million on property located adjacent to the existing Norampac facility in Niagara Falls, N.Y. It will produce a lightweight linerboard, made with 100% recycled fiber, on a single Metso,(Finland) machine having a width of 328 in. (8.33 m) with an annual production capacity of 540,000 short tons. The machine will be one of the largest of its kind in North America.

The value of Metso's order is approximately EUR 65 million. It includes a complete linerboard machine from headbox to roll handling, including air systems, machine pulpers, a broke collection system, and a quality control system. The delivery will also include board machine clothing under a long-term agreement.

"The Greenpac mill will include numerous technological advances, making it a unique project of its kind in North America. In particular, the linerboard that will be produced on the new machine will be able to achieve optimal strength while maintaining a low basis weight, thereby allowing our customers to better respond to the growing trend towards lightweight packaging," said Marc-André Dépin, president and CEO of Norampac.

The mill's building and machinery will be designed for optimal energy efficiency and many of the operations will be automated. Also, process water will be treated and reused to reduce consumption as much as possible, and the state of the art management system for recycled fiber will have a positive effect on the environmental performance of the mill, the company said.

Voith, Germany, will provide the stock preparation equipment and anaerobic effluent treatment plant, and Siemens, Atlanta, Ga., USA, will provide the power and control technology (see detailed item in Pulp & Paper section below). Fiber supply will be carried out by Cascades and its recovery operations. There are significant sources of old corrugated containers (OCC) in the region where the mill will be built, which will favorably impact Greenpac's raw material procurement. In regard to sales, customers have already been secured for more than 80% (435,000 tpy) of production. Norampac's converting operations will purchase 170,000 tpy (39%) of this production.

Alain Lemaire, president and CEO of Cascades, noted that the investment "is the result of combined efforts of Cascades and its partners, and is consistent with our development strategy that aims to position the company among the leaders in terms of productivity and profitability in the packaging and tissue sectors. As we have stated in the past, we strongly believe that Cascades' future success will be dependent on our ability to offer high performance, innovative products that will better meet the needs of our customers, at a cost that will be among the lowest in the industry.

"The innovative structure of this partnership will allow us to reach this objective while maintaining the financial flexibility achieved through recent divestitures," Lemaire added. "We are also confident in regard to industry's mid- and long-term perspectives, and we strongly believe that Greenpac will contribute positively to our net profitability once full ramp-up is achieved."

The $430 million cost of the project will be financed by a $140 million equity investment in Greenpac, of which $83.6 million (59.7%) will be invested by Cascades, $28.3 million (20.2%) will be invested by the Caisse, and $28.1 million (20.1%) will be invested by Jamestown Container and another industry partner. The remainder of the financing will be in the form of debt, including senior debt in the amount of $228.9 million, which was led by GE Capital, and subordinated debt in the amount of $61 million. Senior debt will be provided by an international banking syndicate managed by GE Capital. The subordinated debt will be provided by the Caisse ($45.75 million) and Cascades ($15.25 million), and will serve to bridge expected refundable tax credits.

Norampac will assume responsibility for managing day-to-day operations of Greenpac. Construction of the mill will create 108 new jobs in the State of New York, as well as contribute to the economical development of the region.

Created in 1997, Norampac, a division of Cascades, is the largest containerboard producer in Canada and the sixth largest in North America, with nearly 5,000 employees. Today, Norampac operates several containerboard and boxboard mills, corrugated product plants, folding carton plants, and a graphic center in Canada and the U.S.

In a continued effort to support its local communities in Canada, SCA, Stockholm, Sweden will donate an ongoing supply of its Tork brand paper towel, napkin, and bath tissue products to Canuck Place, the first free-standing children's hospice in North America, daily providing a comprehensive continuum of care to more than 400 children and teens with life-threatening illnesses throughout British Columbia, free of charge to the families.

"Canuck Place stands out in our community as a world class facility and offers a very unique and inspiring service," said Doug Saunders, senior territory manager in SCA's British Columbia operations. "In addition to our efforts to uphold environmentally conscious and hygienic practices, SCA is committed to supporting exemplary organizations such as Canuck Place in their work with children facing life-threatening illnesses."

As part of the donation, SCA will work with Canuck Place during the year to provide environmentally conscious paper towel, tissue, and napkin products, most of which contain 100% recycled fiber.

Filomena Nalewajek, CEO of Canuck Place, noted that "at Canuck Place, we strive to make the children and families that stay with us feel as comfortable and welcomed as possible. Through SCA's donation of essentials like bath tissue and paper towels, we reduce our costs and focus on providing the quality of care our families deserve. We are so grateful for SCA's generous donation."

In the photo at right, Saunders from SCA presents a supply of Tork paper products to Canuck Place Children's Hospice.

BASF, Charlotte, N.C., USA, reports that its Paper Chemicals division has developed a sustainable solution to the problem of Bisphenol A (BPA) in thermal receipt papers. Its new Pergafast® 201 is proving to be a safe, alternative color developer that in addition to being BPA free, is also phenol-free, the company notes.

BASF explains that every thermal paper contains a color developer as a key component in a chemical system designed to produce an image or record upon the application of heat. For many years, BPA was widely used as a color developer, but recently many concerns have arisen regarding its toxicological properties and thus its suitability for use in thermal paper. As a result of these concerns, a number of retail companies are now looking for BPA- and phenol-free thermal receipt papers.

"For quite some time there was no satisfactory alternative to BPA for manufacturers of thermal receipt papers," notes Dr. Frank Hoefer, VP Marketing Wet End Chemicals, Europe, within BASF's Paper Chemicals division. "This trend had been identified by Ciba (now part of BASF) where the R&D work on alternative color developer chemistries began and led to the first dedicated production capacities being installed in Ankleshwar, India."

Bill Palmer, regional head of Wet End Chemicals Asia Pacific, within the Paper Chemicals division, explains that "it was the combined effort of the European and the Asian business units to make additional quantities of this interesting product available and secure supply for a large market introduction. Now the first real commercial alternative to BPA can be launched."

High image stability of the new product class enables a wide range of applications such as tickets, tags, labels, and bank statements where such properties are essential, according to BASF.

Kimberly-Clark, Dallas, Texas, USA, and World Wildlife Fund (WWF), Washington, D.C., this week announced the expansion of K-C's membership in the Global Forest & Trade Network (GFTN), a WWF initiative to eliminate illegal logging and conserve the world's most valuable and threatened forests. K-C will now include its worldwide operations in the initiative, building on its existing GFTN membership in select countries. The participation scope now includes all wood fibers sourced for all of the company's products sold globally in the Personal Care, Consumer Tissue, and Kimberly-Clark Professional businesses.

As part of its participation in GFTN, WWF and K-C will collaborate to realize K-C's commitment to have 100% of its virgin wood fiber sourced from certified suppliers by 2015. This commitment includes a preference for the Forest Stewardship Council (FSC) certification, which best meets WWF key requirements for protecting environmental, social, and economic values essential to maintaining priority forests.

By the end of 2011, K-C has committed to achieving a combined FSC/recycled content target of 50% for all of its products covered within the GFTN participation. Together WWF and K-C will train and educate staff and suppliers on responsible fiber sourcing, encourage certification of small, non-industrial private landowners, pursue FSC Chain-of-Custody certification for all K-C facilities, and promote FSC-labeled products in key markets.

"Deforestation and forest degradation contribute up to 20% of global greenhouse gas emissions, the leading contributor to climate change, and decimate critical habitat for several species, notably primates, tigers, and elephants," said Kerry Cesareo, WWF's managing director of Forests. "WWF's Living Planet Report estimates that more than one billion people living in poverty rely directly on forests for their livelihoods, while about 32 million acres have been lost globally each year between 2000 and 2010, an area that is equal in size to the state of Mississippi."

The latest listing of job openings in the TAPPI Career Center include technology management and process engineering positions, reflecting a growing need for experienced paper industry personnel in these areas. Current job openings in the TAPPI Career Center include:

Employer Title City State
Sonoco Products Co. Manager - Primary Materials Technology Hartsville SC
Ashland Hercules Water Technologies Support Engineer - Sales Southeast Region
GAF Materials Corp. Process Engineer - continuous process experience Shafter CA
GAF Materials Corp Process Engineer - near Dallas, TX (Ennis) or Bakersfield, CA (Shafter) Ennis TX
International Finance Corp. Senior/Principal Pulp and Paper Industry Specialist (pos. nr. 110976) Washington D.C.
Jacobs Engineering Senior Process Engineer IV-Pulp and Paper Greenville SC
Weidmann Electrical Technology Inc. Process Engineer Urbana OH
Presto Absorbent Products, Inc. Electrical Engineer Eau Claire WI
Signature Search Account Manager Instrumentation Sales AL
GL&V USA INC. Product Manager, Refiners- North America Nashua NH
RockTenn Paper Mill Engineer - Missisquoi Mill Sheldon Springs VT
BASF - The Chemical Company Technical Specialist - Paper Chemicals - Seattle, WA or Portland, OR, USA Portland OR

More information about these jobs is available online.

2015 is the 100 year anniversary of TAPPI and an excellent time to celebrate the successes of this industry and the people and companies who have contributed to it. Our celebration will focus on the innovative discoveries and breakthroughs developed by academic and industrial research groups over the past 100 years. This will generate enthusiasm for the past as well as the creative future of the global pulp, paper, packaging, and converting industries. 

As part of the anniversary we are developing a 100 year logo. Please take a look at the two logos below, and vote for "Yellow Ribbon logo" or "Big 100 logo" in the poll located at the end of the column to the right under the TCC Connects ad. Thank you!

Yellow Ribbon logo

Big 100 logo

Market Roundup
European demand for newsprint improved by 3.6% (28,000 metric tons) in May compared with a year earlier, according to the Association of European Publication Paper Producers, CEPIPRINT, Brussels, Belgium. Domestic shipments increased 4.9% (37,000 metric tons), but exports of newsprint fell 17.3% (25,000 metric tons) mainly due to a sharp contraction in deliveries to the Far East.

In the SC-magazine paper sector last month, European demand dipped 1.4% (4,000 metric tons) year-on-year. However, exports of the grade grew 24.4% (14,000 metric tons) during the same period with the largest increases going to North America and Oceania. The rise in exports took total European shipments to 361,000 metric tons, up 2.9% over the previous report. Coated Mechanical Reels (CMR) was the only European publication paper sector to post positive results across the board last month. European demand for CMR edged up 2.8% (14,000 metric tons), while shipments overseas climbed 9.3% (13,000 metric tons). The rise in domestic shipments combined with growth in exports took total European shipments of the grade to 545,000 metric tons.

European demand for uncoated mechanical grades recorded just 0.9% change year-on-year in May. In the overseas markets, shipments to the Far East grew year-on-year, but all other export regions showed a decline. The flat level of domestic shipments combined with a 10.0% (5,000 metric ton) drop in exports resulted in total European shipments of the grade sliding 1.4% (3,000 metric tons) against last May.

The cost of manufacturing pulp has trended upward in most regions of the world the past two years, Wood Resources Quarterly (WRQ), Seattle, Wash., USA, reports. Much of this increase has been the result of higher wood fiber costs, which, depending on pulp grade and region, currently vary between 48% and 72% of the total variable production costs, according to Fisher International, .

The cost of wood is the cost component that often decides a pulp mill's competitive advantage in the global market place. Wood fiber costs (in U.S. dollar terms) have gone up because of high demand due to strong pulp markets, tight supplies of sawmill residues, and a weakening U.S. dollar against most other currencies, WRQ explains. Global pulp markets have bucked the trend forecasted by many analysts a year ago, it adds. .

Rather than the predicted retraction in market pulp prices this spring, prices stayed strong and actually increased to record-high levels of more than $1,000 per ton for softwood market pulp (NBSK) in the month of April. The Softwood Wood Fiber Price Index (SFPI) increased 1.9% in the first quarter this year, reaching $105.60/o.d. metric ton, the highest level since the third quarter of 2008, just before the financial crises.

The SFPI is a weighted average of delivered wood fiber prices for the pulp industry in all regions tracked by WRQ. These regions together account for 85% -90% of the world's wood-based pulp production capacity. The U.S. Northwest, Europe, Chile, Australia, and New Zealand markets saw the biggest softwood fiber price increases in the first quarter of this year, while there were only modest price changes in the U.S. South, Canada, and Brazil, WRQ notes.

The Hardwood Wood Fiber Price Index (HFPI) was also up 1.9% from the fourth quarter of 2010, and is now close to an all-time high of $110.33. Fiber prices were up in many of the same markets as those for softwood fiber, with the highest increases in Europe, Australia, and Chile, and only small upward prices adjustments in Canada and Russia, WRQ reports.

Hardwood fiber costs even declined in the U.S. South. Both the SFPI and HFPI were almost 20% higher than two years ago. During most of the past 23 years since the launching of the wood fiber indices in the WRQ in 1988, the softwood price index has been higher than the hardwood price. This relationship reversed in late 2008, and the hardwood price index is now 4.5% higher than the softwood price index.

More information is available online.

According to Mark Wilde, senior analyst with Deutsche Bank, Chinese pulp prices are easing. Russia's Ilim cut NBSK (northern bleached softwood kraft) prices in China by $70/metric ton and NBHK (northern bleached hardwood kraft) by $20/metric ton. Chile's Aruaco also has reportedly reduced prices in China, Wilde notes. "We've also received reports of more ‘spot' deals in the U.S.," he adds.

Wilde notes that in regard to June North American box shipments, a survey of Deutsche Bank contacts across the sector found some evidence that June box volumes have rebounded from disappointing May levels. On a related front, recent indications point to strong June freight volumes, he adds.

North American May shipments of uncoated free sheet (UFS) rose 1.1% m/m, but were down 1.1% on a y/y basis, according to Wilde, who adds that this is slightly better than the YTD decline of 2.4% y/y. "While recent supply cuts should sustain UFS prices, the other key variable will be the extent of any pulp price declines. In the near-term, current price hikes have been slow to roll-in. June estimated prices for 20-lb repro bond (cut-size) rose $20 - $25/ton (announced = $60/ton) to $1,070 - $1,115/ton, -2.5% y/y. At the same time, 50-lb offset roll prices were flat at $945 - $965/ton," he reports.

Pulp & Paper
Boise Inc., Boise, Idaho, USA, and OfficeMax Inc., Naperville, Ill., this week announced that they have extended their long-term relationship by entering into a new paper purchase agreement. The new agreement, which extends through 2017, is in recognition of the mutually beneficial commercial partnership that has spanned more than five decades.

"I am very pleased to announce a new long-term purchase agreement with our largest customer, OfficeMax," said Alexander Toeldte, Boise Inc.'s president and CEO. "The arrangement has been rewarding for both companies, and we're proud to have the opportunity to continue to serve OfficeMax."

Ravi Saligram, president and CEO of OfficeMax, added that "I am delighted to say we have extended a long-standing relationship on profitable terms. The new agreement will enable OfficeMax to continue to provide its customers with the highest quality papers at a great value."

Boise Inc. produces paper and packaging products, including imaging papers for the office and home, printing and converting papers, label and release and flexible packaging papers, corrugated containers, containerboard, newsprint, and market pulp.

Canfor Pulp Products Inc. (CPPI), Vancouver, B.C., Canada, which owns 49.8% of Canfor Pulp Limited Partnership (CPLP), this week announced three major new investments in innovation for the company in a ceremony opening the new Canfor Pulp Innovation Centre in Burnaby, B.C. Joe Nemeth, president and CEO of CPPI, noted that CPLP is the largest producer of kraft market pulp in British Columbia, and the third largest in the world. He added that "innovation is the cornerstone of globally successful companies. This major investment of more than $10 million is aimed at securing our future as a global leader in pulp."

The Canfor Pulp Innovation Centre will have an annual operating budget of $2 million and a laboratory of 6,400 sq. ft. Its staff of nine technical professionals will perform research on a host of challenges and opportunities important to CPLP. Key equipment items in the Centre are a pilot refiner for simulating paper mill treatment of pulps, and extensive, advanced technical instruments for testing pulp and paper.

Complementing CPLP's in-house research, Nemeth also announced the company's commitment to a new research grant program, a collaboration between CPLP and the University of British Columbia and the University of Northern British Columbia. The program will provide a total of $225,000 over the next three years to university faculty for novel research projects in areas relevant to CPLP's mandate. "We want to encourage the wealth of academic talent at UBC and UNBC to dedicate renewed efforts and enthusiasm toward the manufacture and development of products from our forest resource, and thereby contribute to the future of one of the largest and most consistent contributors to provincial GDP," Nemeth said.

The third initiative is a set of partnerships with government in collaboration with equipment suppliers to implement advanced sensing technology in all three of CPLP's Prince George mills. CPLP's investment of $8 million in these technologies will include the Metso Quality Vision System, the Eurocon PulpEye, and two sensors developed by FPInnovations in Vancouver. The sensors consist of a fiber wall thickness measurement sensor and a specialized wood chip sensor. This comprehensive initiative in sensing technology is supported by matching funding of $2.4 million from Natural Resources Canada and $2.1 million from the B.C. Ministry of Forests, Mines, and Lands. It will provide CPLP with unique capabilities for monitoring the quality of its fibers online and thereby provide information to adjust operations and maximize pulp value recovery from the sawmill-produced wood chips it uses.

Catalyst Paper, Richmond, B.C., Canada, reports that it has achieved Forest Stewardship Council (FSC) controlled wood and chain-of-custody certifications at its three Canadian manufacturing operations. The company had already implemented FSC chain-of-custody at its recycle mill in Snowflake, Ariz., USA, as well as Programme for the Endorsement of Forest Certification (PEFC) chain-of-custody at its Canadian operations.

"Market demand for third-party verification that products come from well-managed forests is increasing," said Tom Crowley, SVP of sales and marketing. "This is the latest of many steps we've taken to ensure our paper products come with an excellent and credible environmental pedigree. FSC is well-known and well-regarded by many customers and we are now able to support this certification standard at all our mills."

Catalyst will include FSC certified products under its Sage product offer that combines fiber certification with carbon-neutral manufacturing and detailed mill-level environmental disclosure.

The new FSC certification applies to Catalyst's Crofton, Port Alberni, and Powell River mills. Fiber supply comes mainly from sawmill waste (wood chips) from coastal British Columbia. Catalyst already receives some FSC-certified fiber at Port Alberni and is actively assessing potential additional sources of supply.

Catalyst can now apply the FSC controlled wood label to its Crofton pulp production, verifying that the fiber was harvested legally, with respect for traditional and civil rights, and does not come from genetically modified trees. Additionally, the FSC chain-of-custody enables Catalyst to label specific specialty printing papers as being made with fiber from FSC-certified forests.

The parallel Programme for the Endorsement of Forest Certification (PEFC) chain-of-custody systems will remain in place at Catalyst's Canadian mills to recognize fiber certified to two other widely recognized standards – Sustainable Forestry Initiative (SFI) and Canadian Standards Association (CSA).

The Körber Group, Hamburg, Germany, reports that it has decided to sell off companies that are no longer part of its core business, including E.C.H. Will, Pemco, and Kugler-Womako, which are part of the Körber PaperLink Group. The three companies, which work closely together as Paper Systems, collectively have around 440 employees. Sales in 2010 amounted to some EUR 100 million.

There is no specific time horizon for the divestment, the company said. While it would like to complete the sale quickly, Körber noted that it is more important to find the best possible investor for the companies.

The Körber PaperLink Division is to remain part of the Körber Group. It will concentrate on its competencies in the fields of tissue, hygiene, mailing solutions, and production logistic, and will further strengthen and expand these interests, the company said.

The City of Memphis, Tenn., USA, reportedly has offered $45 million in tax breaks to Canadian-based Kruger Inc. (Montreal, Qué.) as incentive to expand its KTG USA LP tissue mill in North Memphis. This past January, Kruger announced that it is considering major expansions at either the Memphis mill or its Crabtree mill just northeast of Montreal. Both projects would include installation of a new tissue machine. The Memphis project would involve an estimated $312 million investment

According to an article this week in The Commercial Appeal, Memphis, the expansion would add 100 employees and pump $555 million into the Memphis area economy over the next 15 years, including more than $100 million in payroll. The Memphis-Shelby County Industrial Development Board voted 5-0 to approve the measure that would save Kruger 90% of city real estate taxes and 75% of county taxes between 2013 and 2028.The project would generate $55,669,989 in other tax revenues during that time, the newspaper article reported. Kruger is to make its decision about which facility to expand in a matter of "months."

In 2002, Kruger purchased the 1.8 million-sq-ft mill, which sits on 45 acres, for $24 million, ending a string of bankruptcies and various owners that began when the original owner Kimberly-Clark closed its doors after 50 years in 1994. It is the largest industrial complex in Memphis.

In 2005, Kruger announced a $42-million upgrade at the mill as its U.S. market share rose, increasing its capacity to the current 100,000 tpy. The Memphis facility has 294 employees and produces at-home bathroom tissues, facial tissue, and paper towels.

In addition to the Memphis and Crabtree mills, Kruger also has a 40,000 metric tpy tissue mill at Lennoxville, Qué., and an 89,000 metric tpy tissue mill in New Westminster, B.C., Canada.

Sappi Fine Paper Europe (Sappi) and SCA Tissue Europe reported this week that, following the successful joint sourcing of pulp that began in May 2010, they will now jointly source chemicals, technical goods, and other major spend categories.

The two companies noted that supply markets "are changing with increasing rates of speed as is the supplier consolidation process. High growth rates in China, increasing energy costs, and exchange rate fluctuations have a significant impact on price and availability of products and services."

Approaching other major spend categories as part of the sourcing cooperation will enable both companies to cement strategic supplier partnerships by embarking on specific programs to reduce cost and working capital, improve logistics, and environmental performance and to drive innovation, Sappi noted.

SCA, Stockholm, Sweden, is acquiring 50% of the Turkish hygiene products company Komili from Yıldız Holding, which is the largest food group in Turkey. The purchase consideration corresponds to SEK 308 million (approximately $48.2 million) on a debt-free basis.

Komili is currently the fourth largest producer of baby diapers and feminine care products in Turkey, and the company also has operations in associated product areas such as wet wipes, soap, and shampoos. Komili will operate as a joint venture between SCA and Yıldız Holding.

The acquisition includes local production and access to a strong distribution network in the country. Komili's annual sales are approximately SEK 530 million.

"The acquisition will enable us to establish powerful hygiene products operations in Turkey in the fields of baby diapers and feminine care products. The business will also provide us with a platform for our incontinence care products in a key growth market with 70 million inhabitants and a fast-growing population," says Jan Johansson, president and CEO of SCA.

The transaction is expected to be finalized during the third quarter of this year, following approval from the authorities concerned.

White Birch Paper Co., Greenwich, Conn., USA, reports that it will halt production at its three Quebec, Canada, mills during the last week of June. The three mills are located in Quebec City, Masson Angers, and Riviere de Loup. Production of newsprint and directory will be reduced by roughly 12,000 metric tons combined.

White Birch produces newsprint, directory and bulky paper, and paperboard, with mills in the U.S. and Canada. These mills produce more than 1.3 million tons of newsprint and directory paper with up to 50% recycled content.

MeadWestvaco Corp., Richmond, Va., USA, will build a new, state-of-the-art biomass boiler and upgrade associated power infrastructure at its Covington, Va., mill. MWV notes that the $285 million investment positions the facility for profitable growth and will further its competitive advantage in providing high quality paperboard packaging for the global food, healthcare, and tobacco markets. The project allows the mill to become self-sufficient in electrical power and steam generation and significantly reduces ongoing operating and maintenance costs.

The new boiler and related 75 MW steam turbine generator system will replace two older and less efficient units. It will primarily burn renewable biomass such as tree bark, wood residues often left behind from logging operations, and wastewater residuals from the papermaking process. Using these renewable resources provides reliable, efficient, and lower-cost sources of fuel to produce steam and electricity for the mill.

MWV expects to secure the necessary permits to begin construction in the fourth quarter of this year. The company has worked closely with Virginia Governor Bob McDonnell and officials from Alleghany County and the City of Covington on this strategic investment that creates and secures jobs in the region. The project will take advantage of Federal, state, and local incentives. The investment will be financed through a combination of cash and borrowings. The new boiler and infrastructure upgrades are expected to be operational in the fourth quarter of 2013.

The Covington Mill is the world's largest solid bleached sulfate (SBS) mill. It produces approximately 900,000 tpy of SBS paperboard for many of the world's tobacco, food, healthcare and personal care brands, exporting nearly 50% of its production to international markets.

Mayr-Melnhof Karton, Vienna, Austria, reportedly has developed a board range, called Foodboard, that has a new, innovative barrier on its reverse side, preventing migration of mineral oils (from newspaper and packaging printing inks) into cartonboard packed foodstuff. The board's effectiveness, according to a report by International Paper Board Industry (IPBI), June 2011 issue, has been confirmed in first industrial runs by the international migration research center, FABES (Forschungs-GmbH for Analytic and Evaluation of Diffusion Processes, Munich, Germany) headed by Dr Otto Piringer. According to Dr. Piringer, "by applying the barrier board, less than 1% of the potential migrating substances into Tenax were measured compared with the extracted initial quantity."

As a result, migration is blocked by more than 99% and is always below the often mentioned safety limit of 0.6 mg/kg for mineral oils, provided the Foodboard applications are according to intended use, the IPBI article explains. The new innovative barrier provides not only comprehensive protection against migration of mineral oils from the printed box, but also from the outer and transport packaging (cross-contamination),the IPBI report notes. Demand from the food industry and retailers will determine capacity requirements and corresponding investment.

OpenGate Capital, Los Angeles, Calif., USA, reports that it has s closed its acquisition of two boxboard manufacturing subsidiaries of Cascades Inc., Montreal, Que., Canada. The two subsidiaries will operate under the unified brand name, Fusion Paperboard, and will continue conducting business with existing management from its converting facility in Hebron, Ky., and its paperboard mill in Versailles, Conn., USA.

Andrew Nikou, founder and managing partner of OpenGate Capital, said that "this closing marks both a significant addition to our wood and paper portfolio, and an exciting new beginning for Fusion Paperboard. We look forward to working closely with management to enhance its operations, continue its legacy of innovation, and capitalize on growth opportunities in the recycled packaging market."

Siemens Industry Inc., Atlanta, Ga., USA, the U.S. affiliate of Siemens' global Industry sector business, reports that it has received a multi-million dollar order from Greenpac Mill LLC, a Cascades Inc. affiliate, to supply the complete electrification and service for a new $430 million green containerboard mill in Niagara Falls, N.Y. (see article in Weekly Spotlight section above) The Metso machine will be one of the largest of its kind in North America.

Siemens will provide a fully-integrated automation solution and the complete electric power distribution equipment for the new 250,000-sq. ft. mill, including drives, motors, gear boxes, and stock preparation, as well as paper machine equipment and services. The equipment will include medium and low voltage switchgear, power transformers, variable speed drives, and medium and low voltage motion control centers.

Additionally, the process control system will provide a single view of the entire facility, which will help minimize development, implementation, and life cycle costs, and reduce engineering resources. Siemens will provide all main service components for the mill, including engineering, project management, and commissioning and startup assistance. The order also includes a three-year site support agreement, complete with a 99% uptime guarantee and spare parts and services.

New Products
Cascades, Kingsey Falls, Qué., Canada, will launch a new pet homes line for small animals made from recycled paperboard. This product line includes a cat chalet whose design was inspired by Canadian hunting lodges, a cat teepee inspired by First Nations traditions, and a birdhouse.

The Cascades cat houses are also useable by lapdogs, ferrets, or domestic rabbits. The recycled board teepee and chalet were created by two young industrial designers from the company Loyal Luxe, a Québec company located in Mont St-Hilaire.

The birdhouse can accommodate several species of birds, such as the blue tit, the downy woodpecker, and the nuthatch. Made from 100% recycled board, at least 90% of which is postconsumer, the birdhouse roof is made with NorShield board that renders it water-repellent, thus protecting it against bad weather and extending its life. With its printed design, the birdhouse can be decorated by children.

These products are recyclable or compostable (industrial compost) with the exception of soiled pieces, which must be thrown in the garbage.

Cascades notes that during the first days of July, many household pets are abandoned. The company has thus decided to support the SPCA via a donation for each teepee and chalet sold during the month of July.

Published Pricing
DuPont Titanium Technologies. Wilmington, Del., USA, has announced a price increase of $0.25 per pound, or as permitted by contract, for all DuPont™ TiPure® titanium dioxide (TiO2) grades sold in North America (U.S. and Canada). The price increase becomes effective tomorrow, July 1.

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

Coskata Inc., Warrenville, Ill., USA, announced this week that it has issued a Letter of Intent with Fagen Inc., Granite Falls, Minn., for engineering, procurement, and construction of its first commercial cellulosic ethanol facility in Boligee, Ala., that will be designed around the Coskata technology. Fagen, and Harris Group Inc., Seattle, Wash., an advanced biofuels engineering firm, will lead an EPC process that will include in its scope the project detailed design, procurement, construction, and commissioning.

"After a rigorous selection process, we are pleased to announce that Fagen and Harris Group will work together to provide a facility that will be unmatched in quality, cost, and time to completion," said William Roe, CEO for Coskata. "We are confident that together with Fagen and Harris Group, we will demonstrate the value potential and long-term benefits of the Coskata technology in this exciting project."

Coskata received a conditional commitment for a loan guarantee from the U.S. Department of Agriculture, and is working on details that will be necessary to close financing for the project. The facility will convert sustainably harvested wood biomass into ethanol, and is expected to bring approximately 300 construction jobs and 700 direct and indirect jobs to Greene County, Ala.

Coskata's platform technology enables the low-cost production of biofuels and chemicals from virtually any carbonaceous material. Using anaerobic microorganisms and innovative bioreactor designs, its process combines the flexibility of gasification with the efficiency of biological conversion of syngas into fuels or chemicals.

KiOR Inc., Pasadena, Texas, USA, a cellulosic fuels producer, reports that former Secretary of State Condoleezza Rice has agreed to join its board of directors, starting in July.

Secretary Rice has a distinguished career in the public, private, and academic sectors. She served as U.S. Secretary of State from January 2005 to 2009 after serving as the Chief National Security Advisor to the President beginning in 2001. She is currently professor of political economy in the Stanford Graduate School of Business, senior fellow of public policy at the Hoover Institution, and professor of political science at Stanford University.

Secretary Rice also has served on the board of directors for the Chevron Corp., the Charles Schwab Corp., the Transamerica Corp., and the International Advisory Council of J.P. Morgan. She is currently on the board of Makena Capital, a private endowment firm, and C3, an energy software company.

MeadWestvaco Corp., Richmond, Va., USA, this week elected Alan D. Wilson a director of the company. Wilson brings extensive consumer products knowledge and experience in the food industry to help guide MWV's global packaging business.

Wilson is chairman, president, and CEO of McCormick & Company, a global provider of spices, seasoning mixes, condiments, and other flavorful products to the entire food industry. He has served in a variety of executive management roles at McCormick since joining the company in 1993. Previously, he worked for nine years at Procter & Gamble, where he held progressively responsible positions in product supply, procurement, and manufacturing.


PEERS has announced Keynote Speaker Miles P. Drake will speak during the event, taking place October 2-5, 2011 in Portland, Oregon. He is senior vice president, research and development and chief technology officer at Weyerhaeuser where he oversees a technology organization devoted to growing the core businesses, supporting Weyerhaeuser's customers and creating new technical-based options for growth for the corporation.

Attend the TAPPI PEERS Conference, hear Drake's presentation and benefit from the integration of both management and technical topics, giving you a better understanding of how the entire mill process works together – helping you Optimize the Lean Green Machine. With seven focused tracks and more than 30 sessions, this year's updated conference offers peer-reviewed papers, expert speakers, exclusive networking opportunities and new technologies that can help mills optimize operations.

Learn more about TAPPI PEERS Conference


TAPPI currently has a committee working on the 2015 one hundred year anniversary of TAPPI. Longtime TAPPI and PIMA members on this committee include: Eric Eisert, Chuck Klass, Albert Moore, Art Rankin, and Tom Rodencal. Our celebration will focus on the innovative discoveries and breakthroughs developed by academic and industrial research groups over the past 100 years. This will generate enthusiasm for the past as well as the creative future of the global pulp, paper, packaging, and converting industries.

Help us to showcase the people, processes, and solutions that make our industry great! We need your help! Please send us your list of the most innovative discoveries and breakthroughs in our industry within the past 100 years. If you know the history or have artifacts that provide insight into the discovery please send them to us. Please use snail mail (we love that stuff)! If you have any questions or comments please contact David Bell at dbell@tappi.org, c/o David Bell,TAPPI,  15 Technology Parkway South, Norcross, GA 30092;

Also, if you would like to join our committee, we would love to have you!


The 2011 TAPPI Extrusion Coating Course in Nashville, Tennessee, is THE PLACE to network among colleagues from a number of top industry organizations. Just last year, the course attracted representatives from more than 30 different companies. Based on registration so far, this year's course - August 16-18, 2011 - appears destined for the same broad and elite representation. You can see a list of Companies Represented in 2010 and 2011 on the registration site for the TAPPI Extrusion Coating Course.

Have you registered yet? Do so before July 19 if you can so that you can save $200 on your TAPPI registration and on most flights with a 21-day advance booking. This course takes place August 16-18 in exciting Nashville, Tennessee.

A total of 10 experienced instructors are set to guide your professional training so that you will be able to:
• List various product structures and their potential uses in packaging applications
• Identify and discuss the physical properties and processing issues for a variety of extrusion coating resins
• Discuss the capabilities, specifications and limitations of various extrusion coating equipment
• Explain the extrusion process that includes web handling, polymer processing, purging and troubleshooting
• Recognize the various surface treatment options that are available and their applications
• Identify the unique equipment and resin requirements for co-extrusion applications
• Explain the process requirements for making extrusion coated structures
• Identify safety concerns in the extrusion process

View the full Course Schedule to see all the experience shared.

Book Your Hotel Online at Sheraton Downtown Nashville Be sure to mention "TAPPI" to get the special rate of $139.00 plus fees.


Nominations for the major TAPPI 2012 awards are due by August 1, 2011. The awards that may be presented in the upcoming year are:

  • Gunnar Nicholson Gold Medal Award - The Association's highest technical honor may be presented annually to recognize an individual or individuals for preeminent scientific and engineering achievements of proven commercial benefit to the world's pulp, paper, board, and forest products industries and the other industries that TAPPI serves.
  • Herman L. Joachim Distinguished Service Award - The Association's highest award for service, may be presented annually to recognize leadership and service which have significantly and demonstrably contributed to the advancement of the Association.
  • Paul W. Magnabosco Outstanding Local Section Member Award – The highest honor for Local Sections may be presented annually to recognize an individual for outstanding leadership and exceptional service to one or more Local Sections, which have resulted in significant and demonstrable benefits to the Local Section members.
  • TAPPI Fellow - TAPPI Fellows are Individuals who have been members of TAPPI for not less than 10 years prior to the nomination, and who have contributed meritorious service to the Association and/or the paper and related industries. Retiring members of the TAPPI Board of Directors become Fellows automatically at the end of their term.

TAPPI Awards and Honors  shows the qualifications required and links to the nomination forms that must be completed. You may submit all nomination forms by email to standards@tappi.org, or you may fax them to the attention of the awards department at +1-770-446-6947, or send by mail to TAPPI, Awards Department, 15 Technology Parkway South, Norcross, GA 30092, USA.

As the leading association for the worldwide pulp, paper, packaging, and converting industries, TAPPI announces that it is still accepting applications for the William L Cullison Scholarship. Scholarship funds are currently awarded in increments up to $4,000 per academic year for the last two years of a student's undergraduate program. The deadline has been extended to August 1, 2011. All candidates will be notified of their application status by September 1, 2011.

TAPPI's selection committee has created a new, expedited process for applicants to submit their application. It recognizes that while students are seeking additional ways to cover the cost of their education, they also appreciate electronic solutions to facilitate application submission. The committee is happy to oblige and the online process is fairly straightforward.

Potential candidates must meet all of the following eligibility criteria to be considered. It is important to note that financial need is not a requirement to be eligible.

  • Major in a pulp and paper science course of study at a college or university. Many of these colleges and universities sponsor a TAPPI Student Chapter.
  • Maintain a 3.5 grade point average or better (on a 4.0 scale) through the first two years in a four-year program, or first three years in a five-year program.
  • Demonstrate outstanding leadership abilities.
  • Demonstrate significant interest in the pulp and paper industry.

Convinced that today's students are tomorrow's leaders, the TAPPI Foundation endowed the William L. Cullison Scholarship fund in honor of TAPPI's fifth Executive Director, an extraordinary industry leader. The field offers satisfying, well-paying careers in the pulp and paper, corrugated container, or polymers, laminations, adhesives, coatings and extrusion industries. Attracting skilled, motivated young people is the cornerstone to building a highly skilled workforce and a technically advanced industry. This scholarship provides a compelling incentive for students entering their third year of college to pursue an academic path related to this vital work.

Nalco Company
Sweed Machinery, Inc