Voith Paper

Over the Wire

TAPPI

Sensor Products Inc
Weekly Spotlight
Americans maintain remarkably consistent views on the importance of manufacturing despite year after year of economic turbulence, according to a new survey from Deloitte and The Manufacturing Institute (Washington, D.C.), with 86% of respondents believing that America's manufacturing base is "important" or "very important" to their standard of living.

The "Public Viewpoint on Manufacturing" survey, now in its third year, polled a nationally representative sample of 1,000 Americans in August across all 50 states. With a margin of error for the entire sample of plus or minus three percentage points, the survey confirms Americans clearly value a strong manufacturing sector.

Most notably, when respondents were asked if they could create 1,000 new jobs in their community with any new facility, they ranked manufacturing at the top of the list, ahead of energy production facilities, technology development centers, retail centers, banks or financial institutions, and a host of others. Moreover, 79% of respondents say a strong manufacturing base should be a national priority.

"There is an unfortunate disconnect, however, between respondents wanting manufacturing jobs in their community and pursuing those very job opportunities for themselves," said Emily Stover DeRocco, president, The Manufacturing Institute. "Survey results reveal that only one-third of parents would encourage their child to go into manufacturing, which translates into a major workforce pipeline issue. This, in turn, becomes a U.S. manufacturing competitiveness issue because we know that an educated and skilled 21st century workforce is the most important factor behind innovation and business success. As the industry faces major ‘boomer' retirements, a shortage in the supply of new talent will directly impact a company's ability to thrive and expand in the global economy."

Craig Giffi, vice chairman and consumer and industrial products industry leader, Deloitte, noted that "this year's findings are remarkably similar to those from the past three years. It's crystal clear—Americans remain steadfast in their commitment to creating a strong, healthy, globally competitive manufacturing sector in the U.S., regardless of the prevailing economic winds."

However, DeRocco warns that Americans "are not confident that policymakers are taking the right approach today to support U.S. competitiveness." She says that 83% of survey respondents either "strongly agree" or "agree" that America needs a more strategic approach to develop its manufacturing base. This same attitude, she says, also applies to the public's views on current U.S. tax, trade, and other government business policies. Less than one-third of the public sees any competitive advantage being created for U.S. businesses from current policies—and more than two-thirds see current policies having a neutral or negative impact relative to our ability to compete with other nations.

According to the survey, the U.S. public is also unsure of the ability of both business and government leadership to create a competitive U.S. economy. The survey data reveals that 43% of respondents believe current business leadership provides an advantage to U.S. competitiveness versus all other countries. Conversely, only 26% and 29% respectively believe that federal and state leadership are helping create a competitive advantage for the U.S. versus all other countries.

Respondents also believe the U.S. is facing a challenging and stubborn economic environment, particularly when it comes to job creation. Nearly three-fourths (72%) do not believe that the economy has been improving or is in better shape since 2008. More than two-thirds (67%) believe the economy remains weak and could fall back into recession. And, Americans are nearly evenly split on whether the economy will show significant signs of improvement by 2015.

Americans see manufacturing weakening over the longer term, too. In rating whether U.S. manufacturing is becoming stronger or weaker from a longer-term perspective, only 7%t said it will likely be stronger while 55% opted for weaker.

An executive summary of the survey findings is available online.

##SHARELINKS##
 
Sappi Fine Paper North America, Boston, Mass., USA, this past week announced the 22 grant recipients for its 12th annual Ideas that Matter—a grant program that recognizes and supports designers who generously donate their time and talent to a wide range of charitable causes. Since 1999, Sappi's Ideas that Matter program has awarded more than $12 million worldwide in grants to designers around the globe. This year's winning projects represent a wide range of social, cultural, and environmental issues and were selected based on the proposal's creativity, potential impact, and ability to implement real change.

The selected proposals were determined by an independent judging panel of leaders from the design profession. This year's judges, all widely recognized for their forward-thinking commitment to design for social good, included Allan Chochinov of Core77.com, New York, N.Y.; Oliver Munday of Oliver Munday {group}, New York, N.Y.; Dawn Hancock, Firebelly Design, Chicago, Ill.; Petrula Vrontikis, Art Center College, Pasadena, Calif.; and Kit Hinrichs, Studio Hinrichs, San Francisco, Calif.

"Sappi Fine Paper North America is proud to continue supporting Ideas that Matter, as it's a testament to how well-executed design can have a positive, exponential effect in the communities served by the nonprofit," said Patti Groh, marketing director, Sappi Fine Paper North America.

A list of the twenty two 2011 Ideas that Matter grant recipients and their respective project titles and nonprofit benefits are available online. The Call for Entries for next year's Ideas that Matter program will be announced this spring.

##SHARELINKS##
 
The Dissolving Pulp Forum at this year's TAPPI PEERS Conference, October 2 -5, at the Oregon Convention Center in Portland, Ore., USA, examines the still-evolving specialty cellulose "gold rush" from three basic perspectives. Following a Sunday afternoon (October 2) opening presentation by global consultants, The dp Group, on latest process developments and technologies worldwide, suppliers including Andritz and Metso, will explore systems approaches being used in several major conversion and expansion projects underway around the world. Jacobs Engineering then examines options, directions, and considerations for companies evaluating dissolving pulp production. The Sunday sessions are capped by a special panel session with seven experts in the arena, including speakers from the earlier sessions. This discussion session responds to specific, submitted questions and comments from the attendee audience.

On Monday morning (October 3), the Forum shifts focus with a special bridge session into the main PEERS program that looks at current market developments around the world and the developing outlook for dissolving pulp production and demand for the next two to three years. During this session, RISI and Poyry International will examine the dissolving pulp "path" into the foreseeable future and explore forces likely to control progress as well as setbacks along the way, including recent successes as well as failures of global cotton crops.

More information, including registration, is available online for the Dissolving Pulp Forum and 2011 PEERS, as well at the 2011 International Pulp Bleaching Conference being held at the Oregon Convention Center immediately following PEERS, on October 5-7.

##SHARELINKS##
 
The latest listing of job openings in the TAPPI Career Center include a variety of positions, from sales and service to maintenance management, planner/scheduler, plant manager, development engineer, research associate, corrugator supervisor, and a pulp and paper internship. Current job openings in the TAPPI Career Center include:

Company Title City
Ace Chemical Products Sales and Service Wisconsin
BASF, The Chemical Co. Research Associate Sr. II - Paper Binder Technology Charlotte, N.C.
Confidential Planner/Scheduler - Corrugated Converting Plant California
Confidential Plant Manager - Corrugated Converting Plant California
Confidential Corrugator Supervisor
Finlay Partners Pty Ltd Head of Maintenance - Electrical/Instrumentation Melbourne, Australia
GL&V USA INC. Pulp and Paper Internship Nashua, N.H.
Unifrax Sr. Development Engineer Niagara Falls, N.Y.
Unifrax Sr. Development Engineer - Paper Niagara Falls, N.Y.

More information about these jobs is available online.

##SHARELINKS##
 
Market Roundup
U.S. uncoated free sheet (UFS) demand remains weak, Mark Wilde, senior analyst with Deutsche Bank, reports, noting that AF&PA data show July shipments falling 4.7% y/y (YTD -2.8% y/y). Inventories, he adds, are rising: +5.3% m/m. In August, repro-bond estimated prices rose $5 - $10/ton to $1,085 - $1,135/ton, -0.9% y/y. So far, producers have implemented $35 - $40/ton out of the $60/ton June 1 price hike. Pricing has been aided by supply cuts, lower inventories, and favorable trade flows. Offset estimated prices fell $10/ton to $935 - $955/ton, +0.5% y/y. With the August decline, producers have been able to implement only $15 of a $40/ton April 1 price hike. Looking ahead, the state of the economy and extent of pulp price declines are apt to be key issues for UFS prices.

##SHARELINKS##
 
U.S. uncoated groundwood demand also is weak, Wilde continues, noting that, as per AF&PA, July shipments were down 10.8% y/y (YTD -8.8% y/y). Inventories are rising: +3.2% m/m. August estimated prices for directory papers were flat at $790- $810/ton, +8.1% y/y. In July, estimated prices rose ˜$70/ton. August 35-lb offset estimated prices were also flat at $680 - $720/ton, +6.1% y/y. Supercalendered prices increased by ˜$5/ton.

##SHARELINKS##
 
Newsprint demand in North America remains very anemic, Wilde reports. According to the NAA, consumption by U.S. dailies fell 16.6% y/y in July and was -15.6% y/y in June. Citing the strong Canadian dollar, NewPage announced plans to close its 190,000 tpy newsprint PM 1 at Port Hawkesbury, Nova Scotia on September 10. With demand continuing to slip, the closure is unlikely to have much impact on newsprint demand and supply. August estimated 30-lb prices in the East were flat at $640/metric ton. Producers have been focusing on exports. Even so, a strong Canadian dollar (big issue for Canadian mills) and rising inputs are squeezing margins, Wilde notes.

##SHARELINKS##
 
The Global Conifer Sawlog Price Index (GSPI) reached a new all-time high of $92.27 per cubic meter in the second quarter, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. This was 5.6% more than the previous quarter, and an almost 20% jump from a year ago. The GSPI has gone up every quarter since the first quarter of 2009 when the Index was at $66.10 per cubic meter. This almost 40% increase in two years is due not only to a weakening of the U.S. dollar against all other currencies in the Index, but also to the higher costs of logs in local currencies, WRQ notes.

Wood fiber costs for the global pulp industry have trended upward for over two years, WRQ adds. The Softwood Fiber Price Index (SFPI) reached $109.52/o.d. metric ton in the second quarter, a 3.7% increase from the previous quarter and a 23% increase from Global Wood Fiber Price Indices 1988 - 2Q/2011 two years ago. In local currencies, fiber prices increased the most in the U.S. Northwest, Western Canada, Russia, and Finland. The weakening U.S. dollar against most global currencies resulted in higher fiber prices in all regions covered by the WRQ in U.S. dollar terms.

The Hardwood Fiber Price Index (HFPI) reached a new all-time-high in the second quarter at $116.44/o.d. metric ton, which was 5.5% higher than the first quarter and almost 27% higher than in early 2009. Recently, hardwood prices have increased the most in Indonesia, Finland, Russia, and Brazil, WRQ reports.

Global pulp markets continued to be surprisingly strong in the second quarter, setting record high prices for most market pulp grades, according to WRQ, NBSK pulp prices ranged between $1,010/ton and $1,040/ton both in Europe and in North America, while prices in China were around $850 - $930/ton. Global production of market pulp was up as much as 8% during the first five months of this year compared with 2010. The highest increase occurred in Latin America. The gain in Europe was somewhat smaller.

Lumber exports from the Nordic countries slowed during spring, and prices fell slightly. The average export prices of lumber from Finland and Sweden have fallen from last fall and were 3% - 6% lower in April than in October of last year, WRQ says. Lumber production in the US fell by 13% from March to April because of slowing domestic demand, and the average operating rate for U.S. sawmills was down to 67%. With the persistent weak demand for lumber in the U.S., sawmills in Eastern Canada continue to struggle, as they are so dependent on the health of the U.S. market for their survival. The operating rate so far in 2011 has been only 55% of capacity. Lumber imports to China continue to set new records. During the first five months of 2011, the importation of softwood lumber was up 72% from the same period last year, WRO points out.

Prices for woody biomass, including mill residues and forest residues, increased slightly in all major biomass-consuming regions of the U.S. in the 2Q, WRQ continues. Pellet prices in Europe were unchanged or slightly lower in the second quarter compared with the first quarter, but the long-term trends are still upward with prices being close to record levels. Asian demand for biomass energy is finally beginning to emerge, WRQ adds. Japan, China, and South Korea have recently announced policies to increase the use of biomass.

More information is available online.

##SHARELINKS##
 
Naylor, LLC
Pulp & Paper
Georgia-Pacific, Atlanta, GA., will cease production at its Hawthorne, Fla., plywood plant later this fall, putting 400 people out of work, according to a report by the Florida Times-Union. The plant makes only plywood, and spokeswoman Trish Bowles attributed the action to the slowdown in home building.

"It's unprofitable everywhere," Bowles said in the newspaper report, adding that "Florida is even worse."

The Hawthorne plant will continue to operate through November 7. Bowles described it as an "indefinite curtailment" rather than a closure, leaving room for the plant to reopen. Severance packages are still unclear, she noted. Hourly employees will be subject to negotiations by their unions.

The plant, about midway between Gainesville and Palatka, Fla. has been open since 1982, converting pine logs to plywood that it sold under the names Plytanium and Sturd-I-Floor. G-P has four other plants in Florida—a chip mill and a paper mill in Palatka, a lumber mill in Cross City, and an oriented strand board mill in Palatka.

##SHARELINKS##
 
Fibrek Inc., Montreal, Que., Canada, reports that it will extend the planned two-week shutdown of its Fairmont Mill in West Virginia, USA, to almost a month, citing current conditions in the RBK (recycled bleached kraft) pulp market. The shutdown had been scheduled for September 12 for the replacement of two decker drums and annual maintenance.

Originally planned for two weeks, the shutdown will be extended for two additional weeks to respond to current market conditions, Fibrek said in a press release. Fibrek added that the RBK pulp market continues to be negatively impacted by wastepaper prices, which it said remain very high.

The four-week shutdown will remove about 15,000 metric tons of RBK pulp from the market. The Fairmont Mill produces approximately 215,000 metric tpy of RBK pulp. Fibrek produces virgin and recycled kraft pulp at three mills located in Saint-Felicien, Que., Fairmont, W.Va., and in Menominee, Mich., with a combined annual production capacity of 760,000 metric tpy.

##SHARELINKS##
 
Holmen, Stockholm, Sweden, is reorganizing its management teams in two business areas. The reorganization also will affect the composition of group management. All changes become effective today, September 15.

Arne Wallin, head of the Holmen Paper business area, will take up the equivalent role in the Holmen Energi business area. The new head of Holmen Paper will be the business area's current marketing director, Henrik Sjölund.

"Holmen Energi will be focusing on several new areas, including wind power and biofuels. To be successful, we need to strengthen our competence in preparation for the major projects that are in the pipeline. Arne Wallin has many years of experience of both major investment projects and advanced business negotiations," says Magnus Hall, president and CEO, Holmen. "With his solid knowledge of the major market challenges faced by the printing paper industry, Henrik Sjölund will be a force to be reckoned with at Holmen Paper. He will also be a welcome addition to group management."

Henrik Sjölund will be succeeded as marketing director of Holmen Paper by Nils Ringborg, who is currently responsible for recovered paper purchasing at Holmen Paper and managing director of the part-owned paper recovery company PÅAB. Brynolf Alexandersson, currently head of Holmen Energi, will be taking on the role of production manager in the same business area.

##SHARELINKS##
 
Industrie Cartarie Tronchetti (ICT), Lucca, Italy, has started up a new Metso-supplied tissue line at its mill in Montargis, France. The line as supplied by Metso, includes complete stock preparation equipment (with OptiFiner RF refiners) and an Advantage DCT 200 tissue machine. The tissue machine features an OptiFlo II TIS multi-layer headbox, a Metso Yankee cylinder, an Advantage AirCap hood, an Advantage WetDust dust management system, and an Advantage SoftReel reel. Also included in the project was the first installation of Metso's new OptiThick DF disc filter.

The production line is optimized to enhance final product quality and save energy. An extensive automation package, including Metso DNA machine, process, and drive controls, as well as a Metso IQ quality control system with non-nuclear Metso IQ Fiber Weight Measurement, was also part of the delivery.

With a large width and an operating speed of 1,900 m/min, the new production line will produce 70,000 metric tpy of high-quality facial, toilet, and towel grades. The raw material for the new line will be virgin pulp.

ICT operates mills in Italy, Spain, and Poland, with a combined capacity of 400,000 metric tpy. It has a turnover of more than EUR 500 million and around 1,200 employees. The group has been present in France since 1999 through its sales organization based in Paris.

##SHARELINKS##
 
This past week, Metsä Tissue, Finland, reported that it has initiated construction of the converting and warehousing hall at its Krapkowice mill site in Poland. The paper machine there has been under construction since June.

A three-year company investment program at the Krapkowice mill, announced this past April, includes a significant increase in papermaking and converting capacity as well as new rental converting and warehousing buildings. The investment is designed to further improve delivery service, flexibility, and overall supply reliability.

Preparations have proceeded smoothly and on schedule. "The project for the converting and warehousing building will be carried out in partnership with the Goodman integrated global property group, specialists in developing and managing industrial properties such as warehouses," says Juhana Kalpio, SVP Supply Chain. The building project will also involve a number of local and regional companies, thereby benefiting the local community.

"It is rewarding to have proceeded from the drawing board to the construction phase and to see the very first elements of the buildings going up," says Mariusz Jedrzejewski, VP Regional Operations. "Already, at this stage, I would like to thank both the authorities and other companies involved for being very supportive and cooperative during the process," Jedrzejewski adds.

##SHARELINKS##
 
NewPage Corp., Miamisburg, Ohio, USA, reports that it received approval from the U.S. Bankruptcy Court for the District of Delaware on all of the First Day Motions related to its voluntary Chapter 11 restructuring. The remaining motions (dealing with certain professionals) will be scheduled for a hearing at a later date. These approvals give the company the authority to continue to conduct its business as usual without interruption in U.S. employee wages and benefits programs or customer programs, among other stakeholder protections.

NewPage Group Inc. and certain of its U.S. subsidiaries filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code on September 7. Separately, the company's Canadian subsidiary, NewPage Port Hawkesbury Corp., commenced proceedings before the Supreme Court of Nova Scotia under the Companies' Creditors Arrangement Act of Canada (CCAA).

Among the First Day Motions granted, the company received interim approval of its $600 million Debtor in Possession (DIP) financing committed by JPMorgan Chase Bank, Barclays Bank, and Wells Fargo Capital Finance. These facilities help ensure the company has adequate liquidity to continue to operate and compete successfully while it works with its creditors and other stakeholders to complete a Chapter 11 plan for its U.S. operations.

Additionally, the company emphasized that, following approval of the motions:

  • It has authority to continue its pre-existing customer programs without interruption. The company fully intends to deliver the same high level of quality and service its customers expect both during and after the restructuring
  • It has authority to continue its existing employee wage and benefit programs, including expense reimbursement, vacation, sick leave and holiday pay, as well as retirement and savings plans in the normal course. The company believes that protecting employees is integral to its future success
  • It has received approval to use cash collateral and to continue its current cash management system for operations.

NewPage previously stated that it fully intends to pay suppliers for all goods and services delivered on or after the September 7, 2011, filing date. Supplier claims for goods and services provided before the filings are typically dealt with as part of the Chapter 11 plan. The company says it values and looks forward to continuing its relationships with its suppliers.

"Securing court approval of our First Day Motions was a critical first step in our court-supervised restructuring process," said George F. Martin, president and CEO of NewPage. "We believe the intended balance sheet restructuring will enable us to fully realize the benefits of our prior operational improvements and make continued investments in the business. Building upon the consistency and exceptional service for which NewPage has been known, we will continue to create quality paper that is in high demand from our customers."

##SHARELINKS##
 
Saber Swiss Quality Paper, New Delhi, India, plans to shutdown TM 5, one of the two machines at its mill in Balsthal, Switzerland, and eliminate 57 of 113 jobs at the mill, as well as reduce staff salaries by up to 10% in the first half of 2012. TM 5 produces approximately 9,000 metric tpy of tissue. The company attributes the shutdown and staff reductions to high pulp prices, the insolvency of a major customer, and the appreciation of the Swiss franc.

The company's lending bank reportedly imposed the restructuring. The trade union Unia said it is demanding reduced working hours instead of layoffs. Also, it reportedly wants the company to negotiate more favorable credit terms with the bank.

Saber Swiss Quality Paper also produces approximately 28,000 metric tpy of specialty paper on its PM 3 at the Balsthal site. Saber Group acquired the mill from Papierfabrik Horgen in 2009.

##SHARELINKS##
 
SCA, Sweden, reports that it will invest SEK 460 million in a tissue machine upgrade in the U.S. The company also has decided to rebuild a paper machine in Sweden for the manufacture of improved newsprint, an investment totaling SEK 350 million.

The existing U.S. tissue machine, not identified by SCA, has a capacity of 70,000 metric tpy, which will remain unchanged. Production is estimated to commence during late 2012 or early 2013.

The newsprint machine in Ortviken, Sundsvall, will be rebuilt to allow production of improved newsprint. The machine's capacity is currently 245,000 metric tpy, which will increase marginally since it is possible to produce higher density paper at the same speed. At the same time, capacity for pulp bleaching and water treatment will increase. The rebuilt machine in Ortviken will startup during the third quarter of 2012.

##SHARELINKS##
 
Södra Cell, Sweden, is installing a new Metso (Finland) Kappa Q analyzer at its Mörrum mill in southern Sweden, replacing one of three analyzers operating on the mill's two fiber lines where Metso's Kappa analyzer technology has been in use since 1994. The new analyzer, with seven sample points in the ECF fiber line, will measure pulp lignin content and brightness as well as shive content for improved process optimization and quality control. Startup of the analyzer on Fiberline 2 will be completed this month.

"With 400 delivered, Metso Kappa Analyzers have gained a solid reputation for reliability around the world and this latest repeat order is further proof of our customers' confidence in Metso technology," says Jarmo Koskinen, Business Manager, Metso Pulp Analyzers. "Many of the new features and measurements have been developed with help from mills like Mörrum and it is especially satisfying to see them reaping the rewards of our continuing cooperation."

The Metso Kappa Q utilizes sweep technology to measure kappa and brightness with a two-point calibration method. The addition of shive analysis helps to produce more uniform pulp and gives the mill precise information of grade differentiation for premium pricing potential.

Mörrum produces 425,000 metric tpy of hardwood and softwood pulp on two fiber lines. Much of the pulp produced at Södra Cell in Mörrum is exported to paper mills in Europe to make paper used in magazines, books, tea bags, and other products. The Mörrum mill is also the source of green electricity and district heating used to heat houses in the Karlshamn municipality.

##SHARELINKS##
 
Södra Cell also has ordered from Vaahto Pulp & Paper Machinery, Finland, a revamp of pulp dryer TM 5 at its Mönsterås chemical pulp mill in Sweden, The revamp will boost production and output and improve runnability of the pulp dryer. The machine produces both softwood pulp and hardwood pulp.

Vaahto's order includes water removal elements, steam box, lead rolls, and suction roll technology, as well a major extension of the vacuum systems of the line. Installation, startup, and training services are also to be included.

The wire width of the machine is 4,650 mm and design speed 250 m/min. The maximum daily output of the dryer can reach 950 metric tons.

Equipment will be manufactured in Vaahto's workshops in Hollola and Tampere in Finland. Startup is scheduled for October 2012. The value of this kind of order amounts usually between EUR 5 and 7 million.

##SHARELINKS##
 
Weyerhaeuser Co., Federal Way, Wash., USA, reports that, effective immediately, all of its western Oregon timberlands will be closed to public access due to the current extreme forest fire danger. Public access to its timberlands will remain closed until the weather improves.

The company notes that due to the hot weather, wildfire danger is at the highest levels of the summer and likely to rise further in the coming days. According to the Oregon Department of Forestry, the high heat, low humidity, and lightning in the forecast, puts fire danger at high or extreme across most of the state—in the drier eastern and interior southwestern regions, as well as in the Coast Range and the Willamette Valley.

##SHARELINKS##
 
Containerboard/Packaging
Huhtamäki Oyj, Finland, has acquired the assets and business of Paris Packaging Inc., a manufacturer of specialty folding cartons in the U.S., for a purchase price of EUR 22.8 million ($32.5 million). Paris Packaging, owned by 21st Packaging Holding, employs some 300 people at three manufacturing units in Paris, Texas, Andalusia, Ala., and Hopkinsville, Ky. It had net sales in 2010 of EUR 43 million ($62 million).

"This acquisition is an example of the quality growth Huhtamaki is focused on as we leverage our solid financial position to become even more competitive," says Jukka Moisio, CEO of Huhtamäki Oyj.

"We are pleased to have acquired such a high quality business," adds Clay Dunn, EVP North America, Huhtamäki. "The addition of a new specialty folding carton product platform complements our existing offering of tableware, cups, containers, carriers, trays, and service ware, and demonstrates our commitment to growth in North America."

##SHARELINKS##
 
Orient Paper Inc., China, reports that it has completed construction and installation of paper manufacturing equipment and systems at its new 360,000 metric tpy corrugating medium paper production facility, Hebei Baoding Orient Paper Milling Co. (HBOP) in Baoding, China The company is now carrying out limited testing procedures with its current power supply system on separate sections of the new production line, and is recruiting and training new employees.

Meanwhile, Orient says it is coordinating with the local government and electricity department to activate its new power station, which will be the primary source of power supply for the new corrugating paper production line. The company expects the new power station to be activated and commercial startup of the production line to be launched in the near future.

"With the completion of construction and installation of the paper manufacturing equipment, we are now making progress on testing procedures. We also expect to conduct complete trial runs after our new power station is activated," said Zhenyong Liu, chairman and CEO of Orient Paper. "We have been working towards expanding our capacity over the past few years. We believe that at our new facility we will produce high-quality products that will further strengthen our market reputation and increase our market share."

Orient Paper, through its wholly owned subsidiary, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co. and HBOP. Founded in 1996, HBOP produces and distributes products such as corrugating medium, offset printing paper, and other paper and packaging-related products in China. The company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 in Baoding, produces and distributes digital photo paper.

##SHARELINKS##
 
Sonoco, Hartsville, S.C., USA, has been selected to the Dow Jones Sustainability World Index (DJSI World) for the third consecutive year. DJSI World is comprised of leading global companies in terms of economic performance, environmental stewardship, and social responsibility.

Each year DJSI World invites approximately 2,500 of the world's largest companies from 57 industry sectors to report their sustainability performance. Each company completes a Corporate Sustainability Assessment, which provides an in-depth analysis of economic, environmental, and social criteria, such as corporate governance, water-related risks, and stakeholder relations, with a special focus on industry-specific risks and opportunities. This year's DJSI World Index includes 41 new companies, while 23 firms will be deleted, resulting in a total of 342 index components. All changes will become effective with the opening of equity markets on September 19.

In being selected to the DJSI World Index for 2011/2012, Harris E. DeLoach Jr., Sonoco's chairman and CEO, noted that Sonoco's overall score was 38% higher than its comparative industry group's average score. "For the fourth consecutive year, we improved our overall score, which reinforces the progress we're making in our global operations. In addition, the company received top scores in our industry sector for advancements in customer relationship management, risk and crisis management, climate strategy, environmental policy/management system, operational eco-efficiency, product stewardship, human capital development, labor practice, and corporate citizenship and philanthropy."

##SHARELINKS##
 
The Newark Group, Cranford, N.J., USA, has completed an agreement with its term loan and asset-based lenders to provide relief to the company via amendments to its major credit facilities. The lenders have agreed to:
  • Suspend mandatory debt amortization payments for the next year
  • Suspend testing of existing financial maintenance covenants to allow the company to execute its restructuring plans
  • Allow the company to obtain an additional $20 million in the form of supplemental loans under its existing term loan facility
  • Waive all April 2011 and July 2011 defaults under the credit facilities.

"We are pleased that our lenders have the confidence in the company to assist it in achieving the results contemplated in our recently announced restructuring plans," said Frank A. Papa, president and CEO of The Newark Group.

##SHARELINKS##
 
Varel, Germany, has started up its rebuilt PM 4 containerboard machine. The goals of the rebuild, conducted by Voith Paper, Germany, were to increase production capacity and expand the range of products on PM 4, as well as improve energy efficiency and overall environmental friendliness.

PM 4 produces corrugated media and test liners with a basis weight range of 120 to 220 gsm. In the future, up to 50% of its capacity should consist of white test liner. PM 4 is designed for a net cut working width of 5,100 mm and an annual capacity of 300,000 metric tons.

Due to the raw materials that will now be required, the rebuild included a significant expansion of the stock preparation systems on three lines, for which Voith provided the essential equipment. The paper mill received new approach flow systems, the headboxes were renewed, and both fourdriniers were extended. A DuoFormer D hybrid former was installed on the back ply, while the top ply received a DuoShake shaker unit. The dryer was completely renewed and a SpeedSizer film press with contact-free web drying was integrated. In addition, PM 4 received a soft calender and MasterReel rewinder. A new unwinder for larger full reel spools was installed on the winder.

Voith also was responsible for modernization of the paper machine controls and the OnQ ModuleJet profile control system. The complete contact-free drying as well as roll covers, clothing, and doctor blades were included in the project.

Together with the mill's PM 5, which also was provided by Voith Paper and likewise has a capacity of 300,000 metric tpy, Varel can now offer the entire range of products processed by the corrugating media industry on a 100% recovered paper basis.

##SHARELINKS##
 
Published Pricing
Kemira, Finland, reports that it will increase prices for hydrogen peroxide products in EMEA (Europe, the Middle East, and Africa) by 15% - 25%. The increase will be effective immediately or as specific contract terms allow.

Kemira notes that while it continues to take actions to minimize the impact of escalating raw material costs, it is necessary to adjust pricing to compensate for the increased costs of raw materials, energy costs, and freight costs.

##SHARELINKS##
 
People
Smurfit Kappa Recycling, U.K., has named Andrew Perkins commercial director. He will assume his new position at the beginning of December.

Perkins will join Smurfit Kappa Recycling from Aylesford Newsprint in the U.K., where he has been head of recycling for a business that handled 500,000 metric tons of material per year. His many years of experience in growing paper recycling businesses and increasing recovered paper supplies also includes a period at Biffa.

Smurfit Kappa Recycling's current commercial director Martin Blood, who has been with the company for more than 40 years, is stepping down from his current role, but will continue to work for the company on a part-time basis and will assist Perkins.

"I am delighted that Andrew will be joining us later this year as commercial director," said Simon Weston, managing director of Smurfit Kappa Recycling. "His many years of experience in the paper recycling business will add further strength to our team and I know he is looking forward to the fresh challenge."

Part of the world's largest fiber-based packaging group (Smurfit Kappa Group, Ireland), Smurfit Kappa Recycling provides a full spectrum of paper and board recycling solutions for businesses and organizations, including recovery of containerboard, office papers, and plastics and security shredding.

##SHARELINKS##
 
James W. (Jim) Alexander has been promoted, from COO to president and COO of Container Graphics Corp., Cary, N.C., USA. Neil B. Saunders is passing on the role of president and remains the company's chairman and CEO.

Alexander has been COO of Container Graphics for the past nine years and "has done an excellent job," Saunders noted. "His promotion to president reflects my and the board of directors' continued confidence in his leadership. My title is being shortened, from president and CEO, to CEO. I look forward to working with Jim and his team for many years to come."

Alexander started with Container Graphics in 1976, and was most recently promoted to COO in 2002. Container Graphics is one of the world's largest manufacturers of printing plates and cutting dies for corrugated packaging production. The company operates 17 facilities worldwide.

##SHARELINKS##
 
TAPPI News

Still time to register to attend the TAPPI PEERS Conference, October 2-5, 2011 in Portland, Oregon.

To accommodate the record number of attendees registering, we've extended the discounted rates until September 19th. See who is attending. These industry professionals will discover and explore mill-proven routes to higher efficiency, attend training workshops, network and share solutions, and see the latest products and services available to the marketplace – and gain a better understanding how of the entire mill process works together.

Program highlights include:

  • Keynote Speaker Miles P. Drake from Weyerhaeuser
  • Dissolving Pulp Forum
  • Pumped Systems Assessment Workshop
  • Sustainability Sessions and more

 Learn more about the TAPPI PEERS Conference.

##SHARELINKS##
 

Slate Announced for Election of 2012 TAPPI Board of Directors

TAPPI's 2011 Nominating Committee announced a slate of candidates for three director positions. The Candidates are: Michael Exner, Sr. VP-Containerboard Mills, RockTenn; Steven Shifman, President, Michelman Inc.; and Clayton Teague, Director (Recently Retired), National Nanotechnology Coordination Office.

Voting begins December 1, 2011. Per the TAPPI Bylaws members of the organization have until November 1, 2011 to review the slate.

Learn more about the slate and election process.

##SHARELINKS##
 

For the last several years, TAPPI member Hannu Melarti has been leading the charge to instill what he calls a Silicon Valley-type focus in the Paper & Pulp industry. He advocates unleashing employee creativity and then stepping back to see what new heights they can take your company, and the industry to. A guest speaker at PaperCon08, he also sings the praises of social media, saying it holds the power to engage the new, younger workforce now entering the market in ways the industry could not do before.

In 2010, he initiated and participated in a TAPPI taskforce with the objective to analyze and recommend how social media could be used to reinvigorate the industry and to bring back the excitement that characterized it in the early days. "I strongly believe that social media will be a very important tool in bringing sexy back," he says. 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 MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire to fill out and return.

We look forward to seeing you in the Spotlight!

##SHARELINKS##
 

The Northeast Division of the Paper Industry Management Association / Technical Association of the Pulp and Paper Industry invite you to attend their Annual Fall Meeting and Conference to be held at the Buchanan Alumni House at the University of Maine. The Annual Meeting will feature an informative one-day conference entitled Bioproducts: Thinking Outside The Box.

This one-day conference will feature speakers presenting on various bioproducts and technologies that could impact our work and personal lives:

  • Dr. Phil Jones, Imerys (GA)
  • Mr. Michael Billeveau, Sustainable Bioplastics of Maine
  • Mr. Michael Bilodeau, UMaine Process Development Center
  • Dr. Clay Wheeler, UMaine Chemical & Biological Engineering
  • Dr.Yvon Durant, Itaconix (NH)
  • Mr. Sean Ireland, Verso Paper – Bucksport Mill
  • Dr. Doug Gardner, UMaine Wood Science & Technology
  • Mr. Kevin Forrest, Exxon-Mobil (ME)

Who should attend?

Anyone involved in the research and innovation sector of our industry will find this a beneficial conference; mill and technical managers; superintendents, engineers, and supervisors responsible for production, and technical operations; suppliers to the industry.

Registration Form and Agenda

For registration information or for conference questions, please contact Pros Bennett, Phone: 207-949-4176 or e-mail pbennett@maine.edu or Jennifer Barr, Phone 207-856-4645 or email jennifer.barr@sappi.com. Costs: $100 - Includes continental breakfast and lunch.

Proceeds from Northeast PIMA/TAPPI events go towards the scholarship fund.

##SHARELINKS##
 

Empire StateTAPPI's Paper Mill Safety Conference (Work Safely, Accidents Happen in a Split Second) will be held October 27th at the Queensbury Hotel in Glens Falls, New York. Featured speaker Eric Giguere from DiVal Safety will present a paper entitled "The Buried Truth Uncovered." Eric's speaking engagements have proven to be a valuable tool for companies with a need for safety awareness. A work-related accident changed his life, and his goal is to try and prevent your family from having to go through what his family went through. Eric will make an impact on you and inspire all of us to work safely.

Other presentations will discuss work place violence and electrical safety standards. In addition, speakers from the Adirondack Safety Council, OSHA, and the Preferred Mutual Association will present. Safety representatives from area mills will also be on a mill safety panel.

Registration cost for attendees not associated with a paper mill or corrugating facility is $125 per person and exhibitors space and registration is $150. Send to: Kathy Russell, AFTEK, Inc., 740 Driving Park,
Rochester, NY 14613 by October 27, 2011

Registration Form and Agenda

##SHARELINKS##
 

The PTS Pulp Symposium will be held November 22-23, 2011 in Dresden. Symposium highlights include discussions focusing on pulp applications in end products including specialty papers, high-quality graphic papers and packaging papers.

Besides paper, the symposium will also focus on wood fibre composites and entirely new fibre-based products with specific properties. Other topics to be covered include nanotechnology and software-supported methods and models that will become key technologies in efficiently fine-tuning the supply of pulp to meet required product properties.

The conference will appeal to a wide range of companies and industry sectors including:

  • pulp and paper mill production
  • pulp trade
  • chemical suppliers
  • plant and equipment manufacturing and related industrial sectors
  • suppliers of alternative fibres and fibre-based raw materials;
  • engineers and developers involved with the production of composite materials
  • converters and suppliers of fibre-based products
  • market research and procurement of fibrous raw materials staff
  • universities and research institutes

More information

##SHARELINKS##
 

On November 8-11, the 2011 PTS Environment Symposium will be held in Munich, Germany. The event will provide a  comprehensive three-day program on new developments in the area of water, waste water and energy.

Topics covered during the first day include ecological relevance and sustainability, safety of paper products and related topics. The second day of the symposium is devoted to wastewater as a resource, mill experiences, safe plant operation, new aspects in biology and use of additives. Presentations on day three focus on political and legal framework conditions and on technical options for reducing energy costs.

The conference is targeted at managers, specialists and executive staff of the pulp and paper sector and its related industries whose central task is to reduce environmental impacts and minimize the outlays required for these areas. The program will appeal to staff  responsible for energy issues, environmental experts, waste management officers, technical specialists and executives (plant, operations and production managers). In addition, engineering and consultancy firms, plant engineering and construction companies and chemical suppliers will find the program and networking opportunities to be of great interest and value..

For More Information

 

##SHARELINKS##
 

The PPI Transport Symposium 19, October 11-14, 2011 in Amsterdam is the only biennial conference and exhibition exclusively dedicated to forest products logistics. This industry-leading program concentrates on the global trends, innovations and issues surrounding the transport, material handling, warehousing, and distribution of forest products. 

For Further Information 

##SHARELINKS##
 
Xerium Technologies, Inc.
Panther Systems, Inc
Sweed Machinery, Inc









##SHARELINKS##