Voith Paper

Over the Wire


Weekly Spotlight
RockTenn, Norcross, Ga., USA, is consolidating its Chicago, Ill., and St. Louis, Mo., operations and bringing 500 new jobs to Georgia, the company announced this past week. In making the move, RockTenn will spend $5 million to expand its corporate headquarters, fueled by incentives from the state and Gwinnett County totaling some $15.7 million. The move is expected to create jobs in accounting, finance, information technology, procurement, and supply chain functions.

According to the Gwinnett Chamber Economic Development, RockTenn will lease about 68,000 sq ft of space at a building in Duluth, Ga., for the expansion. The facility will house new hires as well as some workers transferring from the company's Norcross headquarters.

The company reportedly received more than $700,000 in property tax incentives from Norcross, Gwinnett County, and county schools. The state offer included services worth $100,000 for Georgia's Intellectual Capital Program and about $900,000 for the Georgia Quick Start workforce development program. The company will qualify for an additional $12.5 million in Quality Job Tax Credits based on pay above average salaries.

RockTenn, which has net sales of about $10 billion annually, employs 1,100 Georgians, and has a total workforce of about 26,000, including staff in Canada, Mexico, and China. The new jobs and corporate expansion comes seven months after RockTenn bought Chicago-based rival Smurfit-Stone Container Corp. for $3.5 billion dollars.

Boise Inc., Boise, Idaho, USA, this week announced that the first urban park re-development site through its Project UP program will be in Indianapolis, Ind. Project UP aims to transform distressed urban spaces into revitalized green spaces for residents to enjoy. Boise founded Project UP this year as an extension of the Boise Aspen brand of recycled papers and the company's ongoing commitment to environmental, social, and economic sustainability.

"The Boise Aspen brand strives to unlock potential. Just as recycled content papers unlock the potential of what some consider wastepaper, urban parks unlock potential in cities and communities," said Terry Stepney, Boise Aspen brand manager. Project UP is funded through the sales of Boise Aspen 30, Aspen 50, and Aspen 100 recycled papers. For each carton of paper sold, a portion of proceeds are donated to community planting initiatives such as National NeighborWoods Month events and individual, Boise-sponsored park development projects.

In partnership with the Alliance for Community Trees (ACTrees) and local ACTrees member organization Keep Indianapolis Beautiful Inc. (KIB), Boise identified an area in need of restoration near downtown Indianapolis, at the Northwest corner of 29th Street and Capitol Avenue called Highland Vicinity Park that fit the vision of Project UP.

"Increasing green space in Indianapolis is a priority in our efforts to become one of the most livable, sustainable cities in the Midwest," said Indianapolis Mayor Greg Ballard. "Partnerships such as this bring together resources that enhance our neighborhoods and improve public health and quality of life. We are proud to be the first community selected by Boise for its Project Up urban spaces revitalization program."

The new Highland Vicinity Park will include a variety of trees and bushes, most being native to the region, as well as a pathway through the park, benches, waste receptacles, and a unique shade structure. Restoration of the space is set to begin this month, with the park completion events taking place on September 24.

Professor Erik Næsset, Norwegian University of Life Sciences, is awarded the 2011 Marcus Wallenberg Prize for his path-breaking research that incorporates the airborne laser scanning method as an integral part of forest inventory. The Prize will be presented by His Majesty, The King of Sweden, at a ceremony in Stockholm on October 3. On October 4, a symposium will be arranged around the subject of the prize-winning research and its impact on the forest and land use issues as well as the forest products industries.

Professor Næsset created a tool to portray spatially the forest inventory parameters of interest. He invented a straightforward and practical method for utilizing airborne laser scanning in combination with forest field data that automatically produces stand-wise forest data with high accuracy The area based method of airborne laser scanning that he developed has become a reference against which new inventory methods are compared.

Laser scanning is now a commercially used practice, making a considerable difference in how forests are inventoried throughout the world. Cost reductions of typically 40% - 50% for forest management inventories have been recorded. Of great significance is the value of the statistical and economic efficiency improvements in forest management inventories. The airborne laser scanning technique is also useful in assessment of many other forest ecosystem services. For example, it has been used in carbon accounting based on estimated forest biomass and detection and valuation of habitats of key species for maintenance of biodiversity.

Along with his scientific achievements, Professor Næsset has actively participated in the demonstration of the airborne laser scanning method to practitioners, offered workshops, and tested the method in diverse case studies. He stands out as the most important person for making airborne laser scanning an operational method for forest inventory.

Professor Næsset (on the right in photo) took his Dr. scient. in Forestry in 1992 at the Agricultural University of Norway. After employment at the Department of Forest Sciences, Agricultural University of Norway, from 1990, he was appointed Professor in 1996. Since 1997 he has been Professor at the Department for Ecology and Natural Resource Management at the Norwegian University of Life Sciences in Ås, Norway. Among other things, he works in partnership with NASA/Goddard Space Flight Center, Yale University, University of Minnesota, Swedish University of Agricultural Sciences, Helsinki University, and University of Eastern Finland, and he leads several international projects within his department. He is author or co-author of some 60 scientific articles.

Carlos Aguiar, former CEO of Fibria, Brazil, has been selected as the 2011 Latin American CEO of the Year by RISI. Aguiar was chosen by a group of investment analysts and portfolio managers covering the forest products industry. The criteria for nomination included leadership, vision, and strategic accomplishment.

Aguiar was chosen as the winner due to his significant achievements in managing the company's leverage situation and his outstanding financial discipline and control. Fibria, the largest bleached eucalyptus kraft (BEK) pulp producer, reported a boom in its net profit in 1Q 2011 over 1Q 2010 from Real 9 million ($5.7 million) to Real 389 million ($247.8 million) under Aguiar's leadership.

"Although Fibria has only two years, the company has already shown its potential and capacity to produce more than 5 million metric tons of pulp per year with an operation based on sustainability and efficiency due to the 875 thousand hectares of renewable forest plantations in which the company invests," Aguiar commented.

Aguiar served as Fibria CEO from September 2009 until June 2011. Before that, he served as president of Aracruz from April 1998 until the Aracruz merger. Prior to becoming president of Aracruz, Aguiar served as VP from April 1993 to April 1998 and as an executive officer from 1985 to 1993. After joining Aracruz in 1981, he held various managerial positions in Aracruz's operations department.

Aguiar will become a member of Fibria's Board of Directors in 2012. Marcelo Castelli, who was the company's director of Forestry, Paper, Strategy, and Supplies, assumed the post previously held by Aguiar, who headed the company since it was founded, on September 1, 2009.

Market Roundup
Pulp prices are easing in both softwood and hardwood grades, according to Mark Wilde, senior analyst with Deutsche Bank. No major producer has yet announced August "list" price cuts for hardwood in the U.S., Wilde notes, adding that spot prices, however, are off $20 - $30/metric ton in most grades.

Wilde further reports that in Europe, Fibria has announced a $30/metric ton price cut on BEK. In the softwood arena, he says, producers have announced a $30/metric ton price cut for August. In China, weak demand and rising inventories have pulled prices down. Two other issues are pressuring the market, he points out—ripples from a sharp decline in spot dissolving pulp prices and integrated papermakers selling more market pulp.

All of the major U.S. coated recycled board producers have announced a $40/ton price hike for early- to mid-September, Wilde reports (see Published Price Increases section below). July CRB estimated prices were flat at $910 - $930/ton, +11.5% y/y. CRB demand is stable with some seasonal pick-up. However, the key issue is margin compression from higher OCC, energy, and chemical costs. In URB, a price hike attempt is faltering. June prices were revised downward by $15/ton. Producers have announced a $30 - $50/ton price hike on URB, according to Wilde.

Wilde explains that recent market turmoil/uncertainty makes a containerboard price hike in late-summer/early-autumn "look tougher." To be sure, he says, "many indicators are encouraging. June operating rates were a robust 96.9%. Inventories remain lean and export demand is reasonably solid. The ‘weak link' is domestic box demand. Last week's July ISM wasn't encouraging. The index slipped from 55.3 to 50.9, indicating slowing demand."

Pressure on box prices appears to have eased, Wilde continues. "However," he says, "rising input costs are apt to pressure second half margins. July estimated linerboard prices were flat at $635 - $645/ton."

July estimated 30-lb newsprint prices in the U.S. East were flat at $640/metric ton, Wilde says, adding that the recent $35/metric ton price hike failed to stick. "Key issue? Weak domestic demand," he notes, pointing out that consumption of U.S. dailies in June was down 15.6% y/y. Producers are focusing on exports. Even so, a strong Canadian dollar (a big issue for Canadian mills) and rising inputs are squeezing margins.

SP Newsprint is reportedly making trial runs on producing bag paper on one of its machines in Dublin, Ga., Wilde reports. "It says a lot when one of most efficient newsprint mills on the continent is looking for other markets," he adds.

Pulp & Paper
Celulosa Arauco y Constitucion SA, Santiago, Chile, reportedly will boost its wood pulp production capacity to 3.3 million metric tpy, from 3.2 million metric tpy, as it completes expansion of its Nueva Aldea mill in Chile this month. Arauco, which has operations in Chile, Argentina, Brazil, and Uruguay, is ramping up production as pulp prices have remained firm on the back of strong international demand, in particular from China, according to a Dow Jones Newswire report.

Arauco, a subsidiary of fuel and forestry conglomerate Copec SA, will finish ramping up production at the Nueva Aldea mill to 1.05 million metric tpy, from 867,000 metric tpy later this month.

International Paper Co., Memphis, Tenn., USA, this week said it will extend the expiration date for now of its tender offer for all outstanding common shares of Temple-Inland Inc., Austin, Texas, for $30.60 in cash. Accordingly, the offer and withdrawal rights are now scheduled to expire at 5 p.m., Eastern Time on September 8, unless further extended. The tender offer was previously scheduled to expire at 5 p.m., Eastern Time on August 9.

IP reports that, based on a preliminary count by the depositary for the tender offer, approximately 8.5 million shares of Temple-Inland common stock have been tendered and not withdrawn to date. Except for the extension of the expiration date, all other terms and conditions of the tender offer remain unchanged. If the tender offer is extended further, IP noted that it will issue a press release announcing the extension at or before 9 a.m., Eastern Time, on the next business day after the date the tender offer was scheduled to expire.

Temple Inland's stockholders may obtain copies of all of the offering documents free of charge at the SEC website or by directly requesting copies of all of the offering documents free of charge at Innisfree M&A Inc., the information agent for the offer, at (877) 456-3488 (toll-free). Banks and brokers may call collect at (212) 750-5833.

Kadant Inc., Westford, Mass., USA, this week announced that it has received orders totaling $18.1 million from two pulp and paper producers in Chile and the U.S. for chemical pulping equipment and a recycling system. The chemical pulping equipment will be used to recover chemicals in the kraft pulping process and the stock-preparation recycling system will be used to process recycled fiber for use in paper production.

Kadant also announced that it has been awarded contracts to provide chemical pulping equipment and a stock-preparation system with a combined value of $17.5 million from pulp and paper producers in Russia and China. Included in this total is a $6.1 million pending order from China that was previously disclosed. The remaining contract awards are from a pulp and paper producer in Russia, and consist of a pending order for $4.2 million and a letter of intent for a second order for $7.2 million, for which the company expects to receive the signed contract and down payment in the current quarter.

Millar Western Forest Products Ltd. is launching a bioenergy project to convert organic materials in wastewater at its Whitecourt, Alberta, Canada, pulp mill into biogas that will fuel reciprocating engines to generate green electricity. Captured waste heat from the process will be used to lower the mill's natural gas requirements. The company is currently pursuing necessary permits and, if approved, then project will take two years to complete.

The project will involve the use of an anaerobic hybrid digester, or AHD, to pre-treat pulp mill waste water before it enters the mill's existing aerobic treatment system. Though widely used in other industries, AHD technology is new to the pulp and paper sector.

Receiving C$17.5 million in funding from the province, the project will produce enough green energy to allow the company to draw 6.2 fewer megawatts from the grid to operate its mill. The system will produce enough green electricity to power some 6,500 homes annually.

The AHD technology will also lower the mill's direct and indirect greenhouse gas emissions by about 50,000 metric ton per year, reduce water consumption, improve the quality of treated wastewater discharges, and cut the production of solid organic waste in half. Once proven at the Whitecourt pulp mill, the technology used in this project has the potential to make significant environmental improvements in pulp and paper mills across the country.

"Turning wood waste into renewable energy is an excellent example of how we can efficiently use our natural resources," said Environment Minister Rob Renner. "By promoting innovation, we are continually raising the bar for environmental performance in Alberta."

Provincial funding for the project comes from Alberta's share of the Canada ecoTrust for Clean Air and Climate Change. The ecoTrust distributed C$1.5 billion among all the provinces and territories to assist with clean air and climate change initiatives. Alberta's share is C$155.9 million.

Nippon Paper Group Inc., Japan, reports that a plan to revitalize its paper business, in the wake of the March 11 Japanese earthquake, includes temporarily and/or permanently shutting down eight paper machines and four coating machines, representing a combined 800,000 metric tpy of output, equivalent to about 15% of the Group's domestic production capacity. The plan, which targets facilities and machines with high manufacturing costs, also involves withdrawal from certain unprofitable paper products. Additionally, the company says it will reduce fixed costs to boost its competitiveness, including a zero-oil initiative at major mills to manage the risk of future rises in fossil fuel prices.

The machines to be shutdown are:

  • Ishinomaki Mill—PM 4 (40,000 mtpy woodfree papers), PM N3 (88,000 mtpy groundwood papers), coating machine 1 on PM 7 (112,000 mtpy coated papers)
  • Iwanuma Mill—PM 2 and coating machine 30 (108,000mtpy coated papers)
  • Fuji Mill (Suzukawa—PM 7 (60,000 mtpy industrial papers), PM 8 (86,000 mtpy business communications papers), PM 9 (145,000 mtpy business communications papers), PM 13 and coating machine 33 (137,000 mtpy coated papers)
  • Iwakuni Mill—Cast coating machine 1 (7,000 mtpy coated paper)
  • Yoshinaga Mill—PM N2 (86,000 mtpy business communications papers).

After the capacity reductions, the Group's paper production capacity will be 4,360,000 million metric tpy. Production at the Ishinomaki Mill will resume later this year and into next year, depending on market trends. PM 7, which had produced the base paper for Ishinomaki Mill's coating machine 1, will produce business communication papers after the resumption plan is implemented.

LLC Pulp Invest, Kazan, Russia, has ordered from Andritz, Graz, Austria, a PrimeLineCOMPACT tissue machine. Startup is scheduled for the end of 2012.

The PrimeLineCOMPACT II tissue machine has a design speed of 1,700 m/min and a width of 2.80 m. The scope of supply includes the complete stock preparation plant for virgin fiber and a high-precision PrimeDry steel yankee dryer that provides higher drying rates than conventional cast cylinders.

SCA, Stockholm, Sweden, this week reported that it has invested £15 million in new state-of-the-art equipment at its Tyne Valley (Prudhoe mill) production site in the U.K. The move, SCA notes, "will inject vital funding into the local economy while securing jobs and creating new employment."

The £15 million has been used to fund two separate projects. The first is a new production line that enables SCA to produce Tork zigzag-fold towels in the U.K. for the first time. SCA points out that this will significantly cut down on transport emissions when delivering Tork zigzag-fold towels to U.K. customers, a move that will result in major carbon footprint reductions throughout the supply chain, .

The second project involves a new deinking plant that will increase the capacity of recycled tissue fiber in the U.K. Tony Richards, factory and site manager at Prudhoe, said that "this project is the latest in a long line of key investments designed to improve efficiency to ensure that we remain on a path towards achieving a long-term, sustainable future for the mill. "This will in turn help to provide new employment and keep existing jobs safe while providing support for the local economy." The company's Triple Velvet and Asda Shades brands of toilet tissue are produced at Prudhoe mill.

Kevin Starr, SCA sales director U.K. and Ireland, added that "our new deinking plant will increase the amount of recycled fiber being produced in this country. Meanwhile, our new manufacturing facility will help to reduce the carbon footprint involved with supplying Tork zigzag towels to customers. This underpins our recently-launched ‘A sustainable choice is in your hands' campaign."

Prudhoe mill has a range of accreditations including ISO 14001, ISO 9001, FSC, and BRC. In 2008 the mill won an Environmental Management Award at the North East Business Awards competition.

SCA North America, Philadelphia, Pa., USA, reports that it is the first away-from-home tissue producer to attain certification on its line of napkins from the Biodegradable Products Institute (BPI), one of the largest independent compost certification groups in North America. The certification ensures the napkin's product lifecycle from development, production, use, and disposal remains environmentally responsible.

The BPI certification verifies that all Universal and Advanced Tork napkins, including custom print, can be safely disposed of and quickly biodegrade in municipal and commercial composting facilities. For paper products to be approved by the BPI, they must meet the requirements in ASTM D6868, based on testing in a BPI-approved, independent laboratory and the results must be verified by third-party experts.

"As an industry leader committed to providing hygienic and environmentally responsible solutions, it was extremely important for us to obtain independent verification on the proper degradability of this core product in SCA's portfolio," said Mike Kapalko, SCA sustainability marketing manager. "As more cities across North America develop compostable waste systems, such as those in San Francisco and Vancouver, we're proud to announce that our napkins are safe to compost in large scale facilities and will turn into organic matter, ultimately helping lessen landfill waste."

Xpedx, Cincinnati, Ohio, USA, is launching a national recycling program in association with its parent company, International Paper, Memphis, Tenn., with the goal of recycling 2,400 tons of material in 2011 and reducing its waste by 10% annually over the next three years.

Xpedex notes that not only does the recycling program help the environment by diverting waste from landfills, but it also supplies material, such as recycled paper, back into the paper manufacturing process. Xpedex is targeting locations that are larger than 50,000 sq ft and already has the program established at nearly 70 locations, which represents more than 50% of its targeted locations. The company's Minneapolis division averaged 14 tons of recycled material each month in the fourth quarter of 2010 alone and has recycled more than 119,000 lb of material since October 2010.

Xpedx's St. Louis division averages nine tons of recyclables per month and has reduced its trash haul by 50%. The location has made such a dramatic increase in the amount of recyclables captured that it was able to remove a trash compactor that was needed to manage waste. With these success stories and others, xpedx found that more than 90% of what it was sending to landfills in some locations was recyclable. This represented an opportunity to dramatically reduce the amount of materials xpedx sent to landfills as well as saving thousands of dollars in landfill fees per month at each site.

International Paper, which has a recycling business with more than 35 years of experience, helped xpedx to design and implement the program. Xpedx is now recycling LDPE plastic (recycling symbol "4"), corrugated boxes, office paper, coated paper, mixed paper grades, pallets and wood waste, as well as common items including aluminum cans, fluorescent lights, Styrofoam, batteries, and used oil. In select locations, xpedx is also investigating the possibility of helping customers recycle materials such as pallets and plastics.

Grupak Hidalgo S.A. de C.V., Mexico, has ordered from Voith Fiber & Environmental Solutions, Germany, a complete OCC recovered fiber system, designed for 600 bone dry metric tpy, for its new mill site in the municipality of Emiliano Zapata in Mexico. Startup of the OCC system is scheduled for the first quarter of 2013.

Voith's scope of supply includes the new IntensaPulper R, TwinPulp III detrashing system, complete coarse cleaning and screening systems, fine cleaning with EcoMizer Technology, and fine slotted screening with C-bar slotted baskets and MF power-saving rotors. Voith-Meri will supply the pulper feed system including the Auto Wire Cutting machine plus the Compax reject press and other reject handling equipment.

Grupo Unipak, S.A. de C.V. PT. is a large Mexican company producing a variety of food packaging products. The company currently produces liner and fluting grades for its own integrated use on two machines located in Cuernavaca, Mexico.

Sonoco-Alcore S.a.r.l., Brussels, Belgium, a wholly owned subsidiary of Sonoco, Hartsville, S.C., USA, reports that it is making multi-million dollar investments in three of its European uncoated recycled paperboard (URB) mills to improve energy efficiency, product range, and environmental performance. The projects will be completed during scheduled downtime this month and in September.

"Our Cirie (TO), Italy, mill will benefit from a new DCS, a new energy-from-biogas system, and CHP upgrades, and we are improving our effluent treatment system," said Dino Kiriakopoulos, director of Sonoco-Alcore's European operations. "Our investment in Cirie continues our 2010 capital investment efforts, which are focused on lowering energy costs and continuing to be good stewards of the environment."

Kiriakopoulos said that Sonoco-Alcore also will be making additional investments at its Kilkis, Greece, and Nordhorn, Germany, mills this summer. "At Kilkis, we will be installing a new high-efficiency boiler, heat recovery system, and drive upgrades that will significantly lower energy costs and provide some capacity expansion. At Nordhorn, we are upgrading our refining and press sections to further reduce the steam and electricity consumption for each ton of the high quality specialty board produced there."

Sonoco-Alcore S.a.r.l. operates six paper mills and 32 converting plants along with a recycling division in Europe, and is the largest producer of tubes, cores, and coreboard in Europe.

Ahlstrom Corp., Helsinki, Finland, this week agreed to divest its wipes fabrics business area, Home and Personal, to Suominen Corp., a Finnish publicly listed company. The total value of the transaction is approximately EUR 170 million in cash.

Of the EUR 170 million, Ahlstrom has committed to use a total of EUR 30 million for shares in Suominen, which will finance the transaction through debt and proceeds received in a planned directed share issue. After a successful share issue, Ahlstrom will become the largest shareholder in Suominen with a minimum stake of 20% and a maximum stake of 28.2%, depending on the size of the share issue.

The transaction creates a company that can reinforce its position as a global leader in developing and manufacturing roll goods nonwovens for wipes. The new entity will be stronger in serving its existing and future customers by offering a comprehensive product range in wipes fabrics as well as a broad market presence.

In 2010, Ahlstrom's Home and Personal business area generated net sales of about EUR 291 million and an operating profit of EUR 6.1 million. It has manufacturing plants in Spain, Italy, Brazil, and the U.S. It is a global market leader in the nonwovens for wipes market of approximately EUR 1.5 billion per year.

New Products
Domtar Corp., Montreal, Que., Canada, has expanded its paper products that are certified to the standards of the Forest Stewardship Council (FSC). Beginning this past week, the company's Earth Choice product line now includes specialty products used for bandage wraps, popcorn bags, candy wrappers, sugar pouches, hamburger wrap, and a wide range of other everyday applications. Domtar produces these specialty papers at mills in Espanola, Ont., Canada, and in Port Huron, Mich., and Rothschild and Nekoosa, Wis., USA, all of which are certified to FSC standards by the Rainforest Alliance.

Also, all production of the Domtar Tradebook paper will now be FSC-certified and renamed EarthChoice Tradebook. The product had previously been FSC-certified only on request.

As a result of this expansion, Domtar will annually sell more than 150,000 additional tons of FSC-certified paper.

Domtar is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity. It also produces paper grade, fluff, and specialty pulps. The company employs approximately 8,500 people.

Published Pricing
Caraustar Industries Inc., Atlanta, Ga., USA, this week announced a $40 per ton price increase for all clay coated paperboard grades from its Tama Mill, Tama, Iowa, effective with shipments on and after September 12. The company attributes the increase to rising costs, especially for chemicals, fiber, and freight, Caraustar adds that there will be an additional increase in existing up-charges for 16 pt and 30 pt calipers.

Caraustar serves the four principal recycled boxboard product end-use markets—tubes and cores, folding cartons, gypsum facing paper, and specialty paperboard products. The Tama mill produces more than 70,000 tpy of coated 100% recycled board, servicing a broad range of markets

Pöyry, Finland, reports that its Energy business group has been awarded contracts by Fortum for the engineering, procurement and construction management (EPCM) services of two biofuel-fired CHP (combined heat and power) plants to be built in Järvenpää, Finland, and Jelgava, Latvia. The CHP plants will generate electricity and district heat.

With the new plants, biofuel will replace the use of natural gas and/or fuel oil at the existing plants and thus decrease greenhouse gas emissions from energy production. Commissioning of both plants is scheduled for 2013. The parties agreed not to disclose the value of the agreements.

Futura North America, Alpharetta, GA., USA, has named Christian Viviers its new CEO. Viviers has served as VP and COO of Futura since 2008. Prior to that, he was a tissue consultant (2001 -2008), was with Trebor as director of sales for Canada and the U.K. (2001 -2008), and was in paper machine operations with the Cascades Tissue Group (1995 – 2000). as Previously chief operating officer at the company, he joined in 2008 and has 25 years' experience in the tissue industry in paper making and converting. He also was tissue machines supervisor with Les Papiers Perkins (1991 – 1995), and training coordinator/plant supervisor with Kruger Inc. (1986 -1991).

Futura North America was established in July 2007 and opened a new Service Center for the North American market in November 2009. The company has operations throughout North America, Mexico, and Central America, The new Service Center was established to further its ProCare service commitment to an expanding customer base in the region. The ProCare service package covers installation and startup, scheduled maintenance programs, maintenance audits, and 24 hour remote/on-site support as necessary, as well as training programs.

Metso, Finland, announced this past week that its Paper and Fiber Technology segment (PFT) will have a new organization. Beginning October 1, PFT will comprise geographical areas and global businesses. The areas will be North America, South America, EMEA (Europe, Middle East, Africa), China, and Asia Pacific, and the business lines will be Paper, Fiber, and Services.

"The new organization is essential for putting PFT's new strategy into effect. With these arrangements we can work effectively as one to strengthen our position as supplier of the most competitive technology and services for the pulp and paper industry globally," says Pasi Laine, president of PFT. "By strengthening our area operations we can get closer to our customers and be able to serve the pulp and paper industry even better. With the new, dedicated Services business line we can offer a full range of services from one organization, enabling the other businesses to focus on providing even more competitive ranges of capital products."

Appointments include: Jari Vähäpesola, head of Paper business line; Mikael Sundqvist, acting head of Fiber business line; Jukka Tiitinen, head of Services business line; Bill Bohn, acting head of North America; Celso Tacla, head of South America; Hannu Mälkiä, head of EMEA (Europe, Middle East, Africa); and Jari Koikkalainen, head of China and coordination of Asia Pacific.

PFT's support functions will continue to be: Finance, HR, IT, and now also the Legal function, headed by Kari Saarinen; Strategic and Operation development, headed by Mikko Siiteri; Marketing and Communications, headed by Ilkka Hiirsalmi; Quality and Environment, headed by Kari Karhama; and IPR and Technology coordination, headed by Jouko Yli-Kauppila

The effective date for the new organization and the appointments is October 1.

The Finnish Forest Industries Federation has named Anne Pirilä its new communications director. Pirilä he will also serve on the Federation's management board. Helena Aatinen, previous communications director of the Federation, joined Fortum Corp. at the beginning of this month.

Pirilä currently works at Rautaruukki as SVP in charge of communications and investor relations. Before Rautaruukki, she was the communications director of Ahlstrom Corp. She has also worked as a communications consultant at Viestintätoimisto Pohjoisranta and as a news reporter for the Finnish TV channel MTV.

"Anne Pirilä has extensive experience of different sectors of communications as well as strong competence in industrial communications in particular – this will be of great benefit to the forest industry's lobbying efforts," says Timo Jaatinen, director general of the Finnish Forest Industries Federation.

Travels with Larry
Who knew that a town, with a population of 1,675, whose tag line is "The Northwoods is our backyard" located on Long Lake, in the great state of Wisconsin, is home to one of the best known names in today's worldwide corrugated and folding carton machinery industries?

MarquipWardUnited, (a TAPPI Sustaining member for 55 years) three solid names combined into one company, is a leading manufacturer of corrugated equipment from starch kitchens to stackers, rotary die cutters and flexo folder gluers and sheeters for the folding carton industries.

"By uniting some of the most recognized names in the industry-Marquip, Ward, United, VortX Apollo and Curioni-we bring customers the most complete range of advanced corrugated, sheeting, and finishing solutions available on the market." According to Timothy Sullivan, CEO of MarquipWardUnited.

In addition to the Phillips, WI location, MarquipWardUnited also operates manufacturing facilities in Baltimore, MD, Milton, PA, Bedford, UK, Budapest, Hungary, and Lodi, Italy.

MarquipWardUnited is one of nine divisions who make up the family of Barry-Wehmiller Companies. BWC has sales of approximately $1.3 billion and a team of 5,400 associates.

Eric Fletty and I were invited by Miles Fletcher, Corrugating Sales Manager, long term TAPPI Member and a leader on TAPPI's Corrugating Division Council, to come and witness the MarquipWardUnited difference firsthand.

The agenda, that Miles prepared, was as advertised. A Red Carpet Welcome was an understatement. Phillips, WI is not an easy place to get to so the MWU team goes all out to make it worth your while. A rotating team of employees actually give you a Red Carpet Welcome from the moment that you arrive. MWU owns several custom cabins and a lodge to house and feed even the most challenging taste. From a pontoon boat ride on Long Lake to a gourmet dinner (prepared by a local chef), they work very hard to make you feel at home.

The TEAM Concept can be seen throughout their entire plant and offices.

Some of the other team members who helped us on our visit were; Randy Lorenz-President, of the Americas, John Walter-VP Operations, Blake Pluemer-VP of Sales USA and Canada, Trish Kempkes- Director of Global Communications, Julie Podmolik-CO Parts Value Stream Leader, Art Burkart – Media Specialist

MWU literally has customer service and field service teams around the world to support their products well after the initial sale. As they like to say, "From Starch to Finish" they are there for you. "We Build Great People Who Do Extraordinary Things."

They offer Corrugating, Finishing, and Sheeting Equipment as well as Aftermarket Support and Financing Options.

Our visit was well worth our time. It was extremely refreshing to see a company who has turned LEAN Manufacturing into a LEAN with People–Centric Leadership to create a culture that touches the lives of people.

As the owner of a furniture store about an hour outside of Memphis says, "We are worth the Drive", so is a visit to one of Phillips, Wisconsin's best assets, MWU.

Speaking of it's worth the drive...employees are nominated by their peers for excellence in performance and then selected by former SSR winners for an opportunity to drive this Chevrolet SSR for 1 week, all fuel is paid and they receive a ½ day off work. The recognition is priceless.

For more information on MarquipWardUnited visit their website, or follow them at www.allthingspackaging.com.

For more information on joining TAPPI or scheduling a Travels with Larry visit to your company go to www.tappi.org

There are two types of people in our industry; TAPPI members and those who should be.

Until next time...


TAPPI is pleased to announce integration of Progress in Paper Recycling (PPR) into TAPPI Journal (TJ). Founded in 1991 by TAPPI Fellow Dr. Mahendra Doshi, PPR has a history of covering major innovations in paper recycling technology. Under the guidance of Dr. Doshi, PPR grew in parallel with the escalating paper recovery rate during the ensuing years.

"PPR has provided our industry with a greater understanding of recycling technology," remarked Larry N. Montague, TAPPI President and CEO. "We are extremely grateful to Dr. Doshi for his efforts and for allowing TAPPI to carry on the tradition through TAPPI Journal."

In 2007, Dr. Doshi generously donated PPR to TAPPI, and it has been published in parallel with TJ ever since. Going forward, exclusive PPR content highlighting new ideas and technologies in recycling will appear periodically in TJ using the distinctive PPR logo.

In addition, TAPPI welcomes Dr. Carl Houtman, to the TJ Editorial Board. Dr. Houtman is a research chemical engineer with the U.S. Department of Agriculture's Forest Service, Forest Products Laboratory (FPL), in Madison, Wis. At FPL, Dr. Houtman conducts recycling research, as well as research in process development, including biorefineries. As the current editor of PPR, he joins the TJ editorial board as the two journals combine. Dr. Doshi continues on the TJ editorial board as well. "We are excited to expose the TJ audience to additional research from the recycling community through PPR content, as well as the expert input of Dr. Carl Houtman and Dr. Doshi," said Monica Shaw, Editorial Director of TAPPI Journal. "Their input will help solidify TJ's position as the top research publication in the forest products and associated industries, with a strong impact factor based on a growing number of citations from the academic community.


The Paper Industry International Hall of Fame's membership roster will expand to 105 on October 6 with the induction of five more paper industry notables who have been chosen as the 17th anniversary induction class. Daniel Kevill Brown, Chester Carlson, Georg Jayme, Jori Eino Pesonen, and John Stoveken will join 100 previous members of the Paper Hall during induction ceremonies at the Radisson Paper Valley Hotel in Appleton, Wisconsin, U.S.A. John D. Williams, CEO and President of Domtar Corporation,  a paper industry leader in environmental responsibility and sustainable growth, will be the keynote speaker at the event.

The Paper Industry International Hall of Fame recognizes individuals who, through their inventions, initiative and efforts, built or improved paper and allied industries worldwide. Four of the five inductees are being recognized in multiple categories, including Founders, Leadership, Research & Development, Inventor and Entrepreneur. One inductee is retired.

More information is available at the Paper Industry International Hall of Fame 


Miles P. Drake will present the Keynote Address at the TAPPI PEERS Conference, taking place October 2-5, 2011 in Portland, Oregon. Drake 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 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.

For more information visit TAPPI PEERS Conference .


TAPPI and Pira International are pleased to announce the agenda for the Specialty Papers Europe 2011 Conference. The two-day program will provide an in-depth examination of the current state of the market and the latest technology and application developments in the specialty papers arena.

The conference program will cover:

  • Analysis of global markets and trends
  • Advances in manufacturing processes and equipment
  • Technology and applications developments
  • Innovations in fibres
  • Printed electronics applications

For further details and to find out more go to Specialty Papers Conference


There's still time to register for the 2011 TAPPI Extrusion Coating Course. This course takes place August 16-18 in exciting Nashville, Tennessee, USA.

Learn from Leadership

The slate of instructors scheduled to lead this event represent decades of experience. You'll benefit from the expertise shared by an elite roster of industry professionals.

Enjoy "Music City" in Summer

This is a great time to visit Nashville, along the banks of the broad Tennessee River. Special events are planned for attendees, including a reception and local tour that's sure to haunt your experience.

Bring Back a Valuable Resource

You'll receive your own copy of the Roll and Web Defect Terminology, Second Addition for attending the entire three-day program. (You must stay until the end of the course to receive your book.) This is a must-have communication tool for suppliers and their customers to assist in the identification and elimination of roll and web defects, such as those commonly found in paper, film, nonwoven webs and wound rolls.

Boost Your Company's Brand

Sponsorship opportunities are available where you can position your company's brand in front of a highly distinguished group of decision makers. Your products and services will be visible among an expressly targeted group of extrusion engineers, supervisors, operators, directors, technical staff and R&D personnel who are attending to learn more about their business and improve their performance.

Contact Jennifer Affrunti at 1-770-912-6760 to select the package that best meets your sales objectives.
We thank you for your continued support of TAPPI's educational resources and look forward to seeing you in Nashville, Tennessee very soon!


You're invited to the 6th Annual Pacific Section Golf Tournament! The tournament format is a Modified Shotgun Start, 4 person scramble, 144 spots open - First Come/First Serve. The entry fee is $125/person which includes green fees, cart, two beverage tickets, prizes, meal afterwards, and LOTS OF FUN!
Awards: 1st Place Team, 2nd Place Team, 3rd Place Team, M/W: Longest Drive, KP, and Longest Putt. Also Door Prizes/Raffle! 

Date: August 26, 2011 (Friday) at 11:00 AM 
Location: Lewis River Golf Course

Proceeds go to the TAPPI scholarship fund! For questions, contact Vince Hochanadel @ (360) 606-1461 or via email: vince.hochanadel@kemira.com.

For additional details and the registration form can be found at  Golf Tournament Link


A distinguished panel of recovered fiber traders will provide insight on global trading patterns at Paper Recycling Conference Europe 2011. The event, hosted by The Recycling Today Media Group and Pira International, will take place November 9-10, 2011 at the Barceló Sants Hotel in Barcelona.

In Thursday's session, titled "The Trading Triangle," Bill Moore of Moore & Associates, Atlanta, will moderate a discussion among four panelists who collectively trade hundreds of thousands of tonnes of recovered fibre each year. The four panelists are: • Niels van Binsbergen, Managing Director, ACN Europe • Francisco Donoso, Director, Reciclajes Dolaf • Philippe Chantrain, Sales and Marketing Manager, Cellmark • Marc Forman, President, GP Harmon Recycling.

Paper Recycling Conference Europe is designed for European and international paper recycling professionals – recovered paper merchants, government recycling officials, consuming mills, traders and brokers – who wish to stay ahead of industry developments in order to remain competitive in the global marketplace. Programme topics will examine the supply, demand, trading, collection and processing of recovered fibre. The agenda will also cover the key issues affecting the whole paper recycling supply chain, as identified by an expert program advisory committee, including opportunities in new markets, progress and implications of the End of Waste legislation and concerns over decreasing fibre quality.

Conference organisers still have a limited number of exhibit spaces and sponsorship opportunities available for organisations wishing to take part in the conference. Interested parties should contact Stacey Ludlow at +44 (0) 1372 80 2052 or stacey.ludlow@pira-international.com.

Those seeking additional information about the event can visit the website.


One of Scott Frasca's first managers in the pulp and paper industry was adamant about one thing: join TAPPI! Taking that advice to heart, Scott not only joined, he instantly became an actively engaged member and leader in TAPPI, PIMA and several Local Sections. A firm believer that you get way more than you give Scott has been involved in multiple committees and assignments since joining 25 years ago. Those activities were recently recognized when he was named the 2010 Paul Magnabosco Outstanding TAPPI Local Section Member Award winner.

A skiing devotee and Harley rider, Scott is also a real fan when it comes to being involved in TAPPI as a way to develop leadership skills and technical knowledge. He recommends committee volunteering as a fast-track to involvement and skill development, noting that "new volunteers are always welcome and generally put to work right away!" Says Scott, "It's amazing what you can get out of membership with just a small investment of your time and how much benefit you derive for both you and your company!" Find out how by reading this month's Member Spotlight .  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 Member Spotlight. We will forward a Spotlight Questionnaire  to fill out and return.

We look forward to seeing you in the Spotlight!


Make an impact: present a paper at PaperCon!

The Call for Papers is underway for Papermakers Program, the Coating and Graphic Arts Program and Control Systems 2012. PaperCon 2012, April 22-25 in New Orleans, offers the world's largest program for the pulp and paper industry. Invitations to present have been issued for TAPPI's Papermakers Program, and the TAPPI Coating and Graphic Arts Program. Control Systems 2012 (being held in conjunction with PaperCon) has also issued an invitation and all Control Systems sessions will be open to PaperCon attendees.

More information about all three programs, along with submission guidelines and deadlines can be found at PaperCon 2012.

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