Voith Paper

Over the Wire


Naylor, LLC
Weekly Spotlight
Building on its "Paper Because" campaign, Domtar Corp., Montreal, Que., Canada, this week released a new series of videos promoting the important role paper plays in people's lives. The videos use satire to highlight how using paper responsibly makes business sense and how it's also an environmentally sound choice.

The 30-second spots take a humorous look at office settings where the pressures to go paperless are taken to ridiculous lengths. In early 2012, new print ads will be added to the campaign in trade and consumer media, while the videos and banner ads will appear on a variety of news websites.

"Paper Because has enabled Domtar to communicate the importance of paper to business and opinion leaders," said Lewis Fix, VP of Sustainable Business and Brand Management at Domtar. "Domtar has long been a leader in sustainable paper production. The Paper Because campaign promotes the responsible use of paper, while also reminding people of just how effective paper is in communicating on logical and emotional levels in so many business and personal settings."

Domtar reports that since it unveiled the Paper Because campaign last year, there has been substantial support from paper industry, printing, graphic design, and marketing partners. Many have picked up elements of the campaign and provided significant exposure on websites, in catalogs, at conferences, and other outlets.

The Paper Because campaign has also received positive industry recognition. The Graphic Arts Show Company gave its "Positively Print" award in September to Domtar to spotlight the variety of ways in which the effectiveness of print is being promoted. In addition, the campaign won Best of Show at the ACE Awards, Best of Category in the Business Marketing Association's B2 Awards, National Association of Major Mail Users Environmental Award for Industry Leadership and Best Management Practices, and awards from the Association of Independent Creative Editors and the Printing Industry of the Carolinas.

"Paper Because demonstrates that paper is sustainable, personal, and purposeful. It's easier to learn on paper, senior executives prefer print versus online information, people make purchases as a result of direct mail, and paper is one of the most recycled products on the planet—more than 63% of paper gets recycled," noted Fix. "That's a pretty exciting story about a product that has been in use for more than 2,000 years."

"Paper Because has allowed Domtar to initiate a positive conversation on many levels with a variety of audiences about the importance of paper to the economy, the environment, and everyday life," added Fix. "We're excited about this new phase of the campaign because it continues to tell a leadership story about Domtar as the Sustainable Paper Company."

SCA, Stockholm, Sweden, reports that its European hygiene operations will be organized into three business units: AFH Professional Hygiene Europe, which will be headed by Sune Lundin, currently president of SCA Americas; Consumer Goods Europe, which will be led by Magnus Groth, currently president of SCA Tissue Europe; and Incontinence Care Europe, which will be headed by Margareta Lehmann, currently regional director of NorthWest Europe AFH, SCA Tissue Europe.

There will be a new business unit for Middle East, India, Africa (MEIA), which will be led by Thomas Wulkan, currently president of SCA Personal Care Europe; a new Global Hygiene Supply Unit, which will be headed by William Ledger, currently VP, Supply Chain, SCA Tissue Europe; and a new Global Business and Service Support Unit, which will be led by Robert Sjöström, in addition to his current position as SVP, Strategy and Business Development.

The business unit for SCA Americas will be headed by Don Lewis, currently president of SCA AFH Tissue North America. Christoph Michalski will continue as president of the Global Hygiene Category Unit, and Ulf Söderström will continue as president of the business unit SCA Asia Pacific (APAC).

The new hygiene organization will become effective on January 1. Presidents for the new units will be members of SCA's Corporate Senior Management Team.

"The new organization will enable us to further leverage on our global scale, making us more efficient. It will also empower us to act as an even closer local partner to customers. By strengthening our global market presence, it will facilitate our capitalizing on demographic, economic, and consumer-lifestyle changes, especially in emerging markets," says Jan Johansson, SCA's CEO and president.

SCA's external financial-reporting structure is not affected by the organizational change.

Delmar R. Raymond, 68, a TAPPI member since 1970, a member of TAPPI's board of directors from 2000 to 2002, and a TAPPI Fellow since 2003, died November 10 at his home in Kent, Wash. Raymond received a bachelor's, master's, and doctorate in chemical engineering from the University of Maine at Orono between 1965 and 1969. During his career, he held many leadership positions, first with St. Regis Paper Co., West Nyack, N.Y., and then with Weyerhaeuser, Federal Way, Wash. While at Weyerhaeuser from 1977 to 2005, he directed technology programs in environment, health, safety, energy production, and mill energy optimization.

Beginning in 2005, Del was the director of Strategic Energy Alternatives for Weyerhaeuser, retiring in 2005 to pursue his own company, Del Raymond Consulting Services, focusing on his strong interest in thermochemical and biological bioenergy conversion technologies and specializing in "linking technology with strategy."

Throughout his career, Raymond was the recipient of numerous awards and recognitions including the;

  • President's Award from Weyerhaeuser Co. in 1987 for forming a new division of the company and in 1997 for leading the Agenda 2020 industry technology visioning process
  • University of Maine 1993 Distinguished Engineering Award
  • U.S. Department of Energy's Office of Industrial Technology Partner of the Year award in 2000
  • University of Maine Pulp and Paper Foundation honor award
  • AIChE Forest Products Division award for outstanding chemical engineering contributions.

Raymond was also a leader and member of numerous committees and divisions, including chairman of the American Forest & Paper Association's Chief Technology Officers Committee that provided leadership to Agenda 2020 from 1995 to 2005, past chairman of the University of Maine Pulp and Paper Foundation Summer Institute, past chairman of American Institute of Chemical Engineers Forest Productions Division, and a founding member of Forest Biproducts Research Institute Advisory Board.

Visitation will be held 5 - 7 p.m. today, November 17, at Mitchell-Tweedie Funeral Home, 28 Elm St., Bucksport, Maine. Funeral services will be held at 2 p.m. tomorrow, Friday, at Elm Street Congregational Church. Interment will be at Silver Lake Cemetery, Bucksport.

Market Roundup
U.S. containerboard production was flat in October, decreasing just 0.1% compared with September 2011, according to the AF&PA (Washington, D.C.) October 2011 U. S. Containerboard Statistics Report released this week. However, the month-over-month average daily production was down 3.3%, the report notes. The containerboard operating rate for October 2011 was down slightly from October 2010 to 95.1% from 96.0%.

Additional key findings from the report include:

  • Linerboard production was flat compared with last year
  • Medium production was down from October 2010.
Total U.S. boxboard production decreased by 6.1% in October compared with October 2010, and decreased 3.9% from last month, according to the AF&PA's (Washington, D.C., USA) October 2011 U.S. Paperboard Report issued this week. The report's findings include: 
  • Unbleached kraft folding production increased over the same month last year, and last month 
  • Total solid bleached boxboard and liner production decreased compared with October 2010, and was lower than last month 
  • The production of recycled folding decreased compared with October 2010, but increased when compared with last month
  • Inventory of solid bleached kraft paperboard grew over a year ago.
Total U.S. kraft paper shipments were 12,800 tons in October, a decrease of 6.9% compared with October 2010, according to the AF&PA's (Washington, D.C., USA) October 2011 Kraft Paper Sector Report published this week. Total inventory was 81,600 tons in October.

Additional key findings from the report include:

  • Total unbleached kraft shipments decreased compared with October 2010
  • Total bleached kraft shipments increased compared with the same month last year for the eighth time in 2011.
Preliminary October U.S. printing and writing paper numbers show total shipments at -3.4% y/y, according to Mark Wilde, senior analyst with Deutsche Bank. Volumes remain weak, he notes, especially for LWC papers (down 6.6% y/y). Uncoated free sheet shipments fell 2.1% y/y, Wilde says, adding that coated free sheet shipments were +0.6% y/y.

As expected, OCC (old corrugated containers) fell sharply in November, Wilde reports. "However, he adds, "our channel checks indicate a pick-up in inquiries for OCC, which could lead to a rebound in demand. These inquiries appear to have been from domestic customers. We don't expect a sharp snapback in OCC. We anticipate more mill downtime than normal during the winter months as producers work to avoid inventory build. Many of the cuts are likely to be at recycled mills."

Market pulp prices continue falling, according to Wilde. Hardwood is much weaker than softwood and the price spread between the two is unusually wide. Domestic producers have dropped November U.S. NBSK (northern bleached softwood kraft) by $30/metric ton to $920/metric ton. At the same time, domestic spot prices are much lower. Chinese prices have fallen faster. North American producers have set November levels at $700 - $710/metric ton in China, down $80/metric ton from October's level.

Russian BSK (bleached softwood kraft) prices for late fourth quarter are currently reported in the mid-$600s. Hardwood is uglier, Wilde continues, noting that trade BEK (bleached eucalyptus kraft) in China is at ˜$550/metric ton, ˜$100/metric ton below October levels. Even at these low levels, customers are reportedly balking and pushing for prices as low as $460. "On the road in Europe over the past week, we've found producers increasingly cautious about the next several months," Wilde says.

The global demand for market pulp has been weakening for the past four months, particularly for bleached hardwood kraft pulp (BHKP). The market report Pulpwatch, Seattle, Wash., USA, reports that global shipments of BHKP pulp fell from 1.76 million tons in June to 1.41 million tons during July. Although shipments picked up to 1.57 million tons in August, the outlook for the next six months is for lower demand and reduced pulp production compared with the first half of 2011.

Hardwood pulp prices (BHKP) have fallen steadily during the fall and were down by 26% from June to early November, according to FOEX. At the same time that pulp prices have fallen, wood costs have increased, which has squeezed profit margins for many producers of hardwood pulp. Wood cost as a percentage of Eucalyptus pulp (EuBKP) price has gone up steadily for five consecutive quarters, from 23% in the second quarter to 32.2% in the third quarter, as reported by the Wood Resource Quarterly (WRQ), Seattle. The relative wood cost is currently substantially above the 20-yr average of 23%.

Pulp mills in Brazil, Indonesia, Japan, China, and Chile saw the biggest increases in hardwood fiber prices the past year, while the rise in wood costs in North America and Europe have been more modest. The Hardwood Wood Fiber Price Index (HFPI) rose for the fifth quarter in a row, reaching $117.91/ovendry metric ton (odmt), an increase of 14% since last summer and an all-time high, according to the WRQ.

Conversely, the Softwood Wood Fiber Price Index (SFPI) fell by less than 1% to $108.90/odmt, which was the first decline since the second quarter of 2010. In addition to the exchange rate adjustments, wood prices also fell in the local currencies in Russia, France, and Spain. The SFPI has been higher than the HFPI for 21 of the past 24 years. Only during the past three years has HFPI been sold at a premium, and the third quarter premium of $9.01/odmt is the greatest to date. This is of note because during the past few years, some softwood pulp producers had switched to hardwood or invested in hardwood pulp capacity to take advantage of historically lower hardwood fiber costs and higher profit margins.

More information is available online.

With widespread concerns that European domestic supply of biomass will not be sufficient to meet demand by 2020, the forest products industry has an opportunity to supply this expanding market by mobilizing other sources of lignocellulosic biomass, in addition to forest residues, according to RISI's (Brussels, Belgium) new "European Biomass Review." However, this growing demand for bioenergy, the report notes, may also create competition for raw materials that would typically go to the pulp and paper industry, resulting in higher input costs.

The new analysis and forecast study analyses the potential to increase regional supply for biomass from forest and other sources and the actions currently being taken to release that potential. It covers the need for imported biomass, including opportunities for biomass suppliers in other world regions and the potential implications for the traditional forest industries, service suppliers and energy sectors. It also details all lignocellulosic biomass and all end-use segments covering the EU27 countries, Norway, and Switzerland.

As the figure below (from the report) illustrates, renewable energy policy in Europe will see biomass demand grow by almost 50% between 2010 and 2020 with increased use of biomass not only in the energy sector but also in industrial and residential sectors. Biomass is currently the largest source of renewable energy in Europe and is a relatively attractive option. However, unless new sources of biomass are developed beyond current levels, Europe will face an acute shortage of biomass.

More information about the report is available online.

Hilco Industrial
Pulp & Paper
Holmen Paper, Stockholm, Sweden, is opening union negotiations to reduce the workforce at its Braviken Paper Mill, outside of Norrköping. Employees were informed yesterday (November 16) about the coming job cuts, which will affect around 80 people. The main reasons for the cutbacks, the company notes, are continued poor profitability and increasing competition.

"Holmen Paper's profitability is already low and we are continuing to experience tough market conditions," explains Henrik Sjölund, head of Holmen Paper. "We are therefore stepping up work on cutting our fixed costs. Unfortunately this will mean losing some employees."

In addition to job cuts at Braviken, Holmen is also overhauling its central functions such as marketing and sales. Alongside this, the company is switching to more refined products.

"Holmen Paper is in the middle of restructuring the Swedish units so that they produce more refined and thus more profitable products, and that strategy will remain in place," Sjölund said. "We are exploiting the competitive advantages that our access to virgin fiber brings and increasingly becoming a specialist paper company."

The Foundation for Financial Service Professionals, Newton Square, Pa., USA, this week announced that Kimberly-Clark Corp., Dallas, Texas, is the large company recipient of its 2011 American Business Ethics Award (ABEA).

In making the announcement, Foundation Chairman R. Clifford Berg Jr. stated that "we are heartened by the many examples of strong business ethics we have had the privilege of seeing through the ABEA program. And we hope that in honoring companies, such as Kimberly-Clark, that adhere to the highest ethical standards in their dealings with employees, customers and stakeholders, the ABEA provides a beacon that guides others to choose the high road in all their business practices."

In recognition of America Recycles Day this past Tuesday (November 15), the AF&PA, Washington, D.C., USA, reported several key recycling milestones in the paper recycling arena. These accomplishments include:
  • In 2010, 87% of Americans (268 million) had access to curbside and/or drop-off paper recycling programs
  • With a 63.5% recovery for recycling rate in 2010, more paper is recycled than glass, plastic, and aluminum combined
  • Enough paper was recovered for recycling in 2010 to fill 124 Empire State buildings, which is roughly 334 lb for each man, woman, and child in the country
  • Paper recycling saves 3.3 cubic yards of landfill space per ton of paper recovered for recycling
  • Since 1990, the paper recovery rate for recycling has nearly doubled.

The U.S. paper industry has set a goal to increase the paper recovery rate to more than 70% by 2020. More information about paper recycling, including statistics, educational materials, and a free guide to starting a paper recycling program, is available online.

Petrocart, Romania, has ordered a new, complete tissue production line from Toscotec, Italy, to be installed at the company's mill in Piatra Neamt, capital of the Neamt district in the Moldavia historical region. The line will be started up at the beginning of 2013. The project is supported by a contribution granted from EEC.

The Toscotec delivery, based on a turn-key concept, includes a virgin pulp stock preparation line, upgrade and implementation of the existing wastepaper plant, flotation units for water recovery technology, and a MODULO Plus tissue machine with single-layer headbox, double press configuration, and Toscotec steel yankee cylinder TT SYD 12FT. The delivery also will include an extensive electrification and controls package, tissue machine auxiliaries such as hood, steam, and condensate system, vacuum system, and additional plants. Three-unwind stands and a Toscotec rewinder TT WIND-M will complete the package.

With a width of 2.85 meters and a design speed of 1,500 m/min, the new production line will produce 75 metric tpd of high-quality toilet and towel grades.

Petrocart was established in 1908. In June 1925, the company was registered under the name of Paper and Raw Cardboard Mill, Piatra Neamt. Since 1948, it has been known as "Commune of Paris Paper and Cardboard Mill," Piatra Neamt. The current name, SC Petrocart SA, Piatra Neamt, was adopted in 1990. The company employs 300 people.

Petrocart produces paper and cardboard for various purposes. In Romania, it is the sole producer of triplex and electro-technical cardboard. The company makes four types of products in various ranges—cardboard for transformers, cardboard for electric machines, triplex cardboard, and tissue paper. The tissue paper is produced with heat treated recycled paper. Helga, Salmo, and Fana are tissue paper brands produced by Petrocart.

"Green since 1908" is a Petrocart slogan. In keeping with this slogan, the new Toscotec project will be focused on reduced energy consumption, usage of wastepaper in the manufacturing process, recovery and reuse of the process water, and low emissions (noise and pollutants), as well as on green energy usage with the application of a cogeneration plant feeding waste gases to the machine hood and the boiler plant.

Radece papir, Slovenia, reports that it was able to increase dryness after the first press of its PM 4 by 0.8%, operating with Voith (Germany) polyurethane covers. Special surface designs of the polyurethane covers made the improvement possible, according to the mill.

A press analysis with Voith measurement equipment provided the necessary data. Based on the results, a water balance analysis was carried out and the optimum surface design for this application was calculated. The surface configurations of the Voith polyurethane covers are highly flexible and allow an individual adjustment to the customer's needs.

"Deployment of the polyurethane cover was a complete success. We are very happy with the 0.8% dryness gain after the first press on PM 4. The Voith covers are a worthwhile investment," said Ales Knavs, production technologist with Radece Papir.

Praxair Uruguay, a subsidiary of Praxair Inc., Danbury, Conn., USA, has signed a 15-yr contract to supply oxygen to a new pulp mill complex being built in Punta Pereira, in the department of Colonia, Uruguay. The new complex will be operated by Montes del Plata, a 50-50 joint venture between Arauco of Chile and StoraEnso of Finland.

Praxair will build, own, and operate a non-cryogenic vacuum-pressure-swing-adsorption (VPSA) plant with a capacity of 126 tpd of gaseous oxygen. The plant is scheduled to startup in early 2013.

The pulp mill will be the largest-ever privately executed investment in Uruguay. The joint venture is investing $1.9 billion in the construction of a state-of-the-art pulp mill, a power generation unit based on renewable sources, and deepwater port facilities. The complex is expected to produce 1.3 million tons of cellulose pulp annually beginning in early 2013.

Resolute Forest Products, Montreal, Que., Canada, (formerly AbitibiBowater), has become the newest member of the World Wildlife Fund's (WWF) Climate Savers program. As part of its commitment to the partnership, Resolute Forest Products has pledged by 2015 to reduce its absolute greenhouse gas (GHG) emissions 65% below 2000 levels.

Resolute's decision to join WWF Climate Savers commits the company to fully confront the GHG impacts throughout the complete corporate value chain, looking at emissions both upstream and downstream of its pulp and paper and wood products operations. It also includes a commitment to work with key suppliers to assess and reduce their own contributions to carbon emissions throughout the supply chain.

"Resolute wanted to make a bold statement to our employees, our business partners and the market that we take our responsibility for preventing climate change seriously," Richard Garneau, president and CEO, said. "Delivering on the commitments made through this partnership will be challenging, but will also make us a cleaner and more efficient company, focused on a balanced approach to the environmental, social, and economic triple bottom line."

Gerald Butts, president and CEO, WWF, noted that "climate change is the greatest threat to our planet and the commitment of Climate Savers companies like Resolute is critical to answering that threat. We hope that Resolute's leadership will inspire other companies to take action in protecting the future of our living planet."

Between 2000 and 2010, Resolute has reduced its emissions by 57%. As part of its Climate Savers partnership, the company is committed to reducing its emissions by an additional 8% by 2015. The total impact of Resolute's GHG reductions from 2000 and throughout this agreement would be equivalent to taking 1,273,000 cars off the road.

As part of its agreement to join the program, Resolute has committed to:

  • Achieve a 65% absolute reduction in identified GHG emissions by 2015 compared with 2000
  • Increase Forest Stewardship Council (FSC) forest certification of managed forests from 18% in 2010 to 80% by 2015
  • Obtain third-party chain of custody certification by 2012 at all North American pulp and paper mills and wood products facilities under company management
  • Develop and offer products with lower GHG footprints to help Resolute's customers reduce their own GHG emissions
  • Work with key suppliers to evaluate and address their own GHG emissions and complete work with the 10 most significant suppliers by 2015
  • Comply with the Greenhouse Gas Protocol's third-party accounting and reporting standard for scope 3 emissions reporting by 2015
  • Develop tools to track GHG emissions from the transportation of company products
  • Implement tracking systems for forest biomass used for energy purposes
  • Activities on carbon emissions and sequestration in the forest.
SP Newsprint Holdings LLC, Greenwich, Conn., USA, and its subsidiaries this week announced that they each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company intends to use the bankruptcy process to explore options to continue its business as a going concern.

"As a result of weak economic conditions coupled with record prices for key raw materials, the company's profit margins have been reduced to levels that are not able to support servicing of current outstanding debt. Therefore, the company is seeking court protection to maximize going concern value in an orderly manner," said Ed Sherrick, CFO.

The company is in the process of negotiating debtor-in-possession (DIP) financing with certain of its lenders and agreed upon use of cash collateral in the interim, which is expected to provide liquidity during the restructuring process. In connection with this week's filings, the company is requesting customary relief to support its customers and employees as it explores options.

More information about the SP Newsprint restructuring is available online.

White Birch Paper Co. Quebec City, Que., Canada, this week announced that it will cease production temporarily at its Stadacona paper mill in Quebec City, commencing December 9. The company will review the viability of the mill in light of significant manufacturing cost disadvantages specific to the plant as well as the ongoing deterioration of economic conditions in the newsprint industry.

"I am deeply saddened that we are forced to idle the Stadacona mill and am very aware of the hardship this will impose on our quality employees who work there. However, the operation of Stadacona is simply unsustainable in the current cost environment," said Christopher Brant, president. "We need to resolve an integrated package of challenges quickly to be able to turn the situation around for the entire White Birch family of mills in Quebec. This is a difficult time for everyone at White Birch, and in our industry at large, but I remain confident that we can find a way to secure important new investment and emerge as a renewed company that provides sustainable long-term opportunities for our employees and value to our shareholders and the broader community in Quebec."

Deteriorating economic conditions, which include decreasing demand for newsprint and higher fiber costs, coupled with the inability to come to an economic agreement with union employees, have contributed to this decision, the company noted.

Retrapac, an investment group based in Dubai, has contracted Eltete TPM Ltd. of Finland to establish production of cartonboard pallet technology (Paper-Roll-to-Paper-Pallet technology) and APPA (Automatic Paper Pallet Assembly) cartonboard pallet manufacture to the areas of the Gulf states (GCC), the Levant (Jordan, Syria, Lebanon, Israel, Palestine), Iraq, Iran, and North Africa.

In the first phase of the contract, a locally-owned Eltete Middle East cartonboard pallet and packaging material factory will be established in Dubai to meet the demand from the United Arab Emirates market. Cartonboard pallet production will be targeted at, for example, the area of the Dubai Logistics City air freight terminals and for the logistical needs of industry operating in its vicinity. Dubai is a logistical and spare parts center for many major international companies, from which they can serve their customers with just-in-time deliveries.

Bo Österman, managing director of the Eltete TPM group, estimates that the Logistics City airfreight terminal project alone will create the need for many millions of APPA cartonboard pallets during 2012 and 2013. In air freight traffic, a significant minimization of cargo weight can be achieved even with small volumes, which means a reduction in carbon dioxide emissions and direct financial savings for customers.

Retrapac and Eltete TPM have agreed to startup their first factory in Dubai, UAE, in 2012, after which additional plants will be delivered to Saudi Arabia, Egypt, and Iran in 2012 and 2013. By 2016, a total of 10 APPA cartonboard pallet factories will have been set up in MENA (Middle Eastern and North African) countries. As the project progresses, the plan is also to establish local APPA factories in Iraq and Pakistan as well as several in North African countries.

According to Eltete TPM, the total value of the machinery and equipment deliveries for this project is EUR 20 - 25 million. The project will be carried out in stages between 2012 and 2016.

Österman notes that Eltete TPM currently has 21 transport packaging material plants in different parts of the world, and in the future each one will become engaged in APPA pallet production.

SFT Group, Russia, will rebuild and modernize a mothballed kraft paper machine after dismantling it at UPM's Kymi mill in Finland and relocating it to SFT's Kamenskaya mill in the Tver region, Russia. The company placed the order for handling the project with Andritz, Graz, Austria.

The machine will be rebuilt for the production of fluting and testliner and will have a capacity of 215,000 metric tpy (design speed 1,050 m/min, trim width 4,600 mm). As part of the rebuild, Andritz Pulp & Paper will deliver various machine components such as a PrimePress X press section, PrimeDry drying cylinders, and modifications to the wire and reel sections. Startup is scheduled for October 2012.

Andritz also will deliver a recycled fiberline, a paper machine approach system, and a broke handling line to SFT Group. The recycled fiberline will process 800 metric tpd of 20% mixed wastepaper and 80% OCC (old corrugated container) from Russia. The approach system will include a three-stage headbox screening system, a save-all disc filter, and under-machine pulpers. The scope of supply also comprises various process pumps and agitators for stock preparation, and the automation systems (process control and quality control).

Stora Enso, Finland, reports that its Packaging Business Area plans to increase cost competitiveness and respond to market demand by restructuring its core and coreboard operations in Finland, Germany, the U.K., and the U.S. and streamlining corrugated packaging production in Finland. The planned restructuring measures would reduce approximately 80 employees in corrugated packaging operations in Finland and approximately 70 employees in core and coreboard operations mainly in Germany, Finland, the U.K., and the U.S. In addition, the plans include possible temporary lay-offs at corrugated packaging operations in Finland.

Stora Enso's Packaging Business Area plans to reduce annual costs by approximately EUR 6 million, starting during the first quarter of 2012, with all planned actions to be completed by the end of the third quarter of 2012. Stora Enso will record a restructuring provision and an inventory write-down of approximately EUR 4 million in the Industrial Packaging segment in the fourth quarter of 2011.

"In core and coreboard markets, the main customer is the board and paper industry. Decreased demand for paper mill cores in mature markets has made the market situation tighter, and in the current financial situation the outlook is uncertain. Corrugated packaging markets are very local and closely related to national economies. In Finland, demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery. The planned restructuring and streamlining measures, including some development investments, will enable us to better meet customer and market expectations and ensure our competitiveness by being more cost efficient and streamlining our operations," says Mats Nordlander, EVP, Stora Enso Packaging Business Area.

UPM, Helsinki, Finland, this week announced that it has started pre-commercial production of fibril cellulose and is currently developing new fibril cellulose applications with industrial partners. UPM initiated the fibril cellulose product development process in 2008. Pre-commercial production began this autumn at Otaniemi, Espoo, Finland.

UPM says that it is now able to provide different types of fibril cellulose for extensive customer testing. The company's objective is to create the preconditions needed for industrial-scale production of fibril cellulose.

"Fibril cellulose is part of UPM's renewal and our Biofore strategy. We are currently focusing on commercializing fibril cellulose. The first stage mainly consists of developing products used in paper and packaging materials and the concrete and paint industries. We are also looking for new partners to develop new applications," said Esa Laurinsilta, director, UPM Fibril Cellulose.

The production process used by UPM for fibril cellulose is the result of long-term development. The fibers in the most finely grained products are fibrils measured at the nano scale. The rougher products consist of micrometer fibers. UPM has protected the results of the development work with comprehensive patents that cover the manufacture of fibril cellulose and the applications.

Fibril cellulose can be used in a wide range of applications. UPM's fibril cellulose provides new properties and design opportunities for traditional materials. It can be used to make products tougher, lighter, or thinner, depending on the application.

When water is added to fibril cellulose, a strong gel structure is created. Therefore, fibril cellulose can be used in many industrial applications requiring high stabilization capacity and high viscosity.

UPM's fibril cellulose has proved to be functional in several application tests over the past few years. "In October, we produced the first industrial-scale batch of specialty paper reinforced with fibril cellulose at the UPM Tervasaari mill," Laurinsilta noted.

Laurinsilta stressed the importance of the Finnish Funding Agency for Technology and Innovation (Tekes) and the development partners for the new product: "Forty researchers at the Finnish Center for Nanocellulosic Technologies have developed fibril cellulose for UPM in cooperation with the VTT Technical Research Centre of Finland and Aalto University."

New Products
FutureMark Paper Co., Alsip, Ill., USA, this week introduced what it says is the "first high-recycled" premium coated paper produced in North America especially for textbooks, cookbooks, children's books, and other picture books requiring premium print fidelity. Future Book coated book paper averages more than 90% recycled fiber in a paper category averaging less than 10% use of recycled fiber, the company notes.

Future Book paper took six months to commercially develop. It is the latest product to be made with FutureMark Green Clean Technology, a process that extracts embedded inks from wastepaper more effectively, while using up to 30% fewer chemicals. The new paper has a matte finish, a high brightness rating of 85, and is offered in roll form in five basis weights—50, 55, 60, 65, and 70 lb.

Georgia-Pacific, Atlanta, Ga., USA, points out that turning paper towel dispensers into auto parts and hot cups into compost are examples of how it breathes new life into its products to meet the sustainability expectations of customers and consumers. The company recently updated its corporate sustainability website to show that it doesn't take magic to have sustainable products and operations. Instead, it takes a complete approach based on understanding the social, environmental, and economic impacts of the company's decisions and actions on the communities where it has operations, on the environment and the company's business, and through the entire life cycle of its products.

"Sustainability is part of what we do every day at Georgia-Pacific," says Bill Frerking, VP and chief sustainability officer. "This site is a good way to let our employees, customers, communities, and others know about our widespread sustainability activities."

The updated sustainability site includes examples of how the company sources raw materials, gets its products from place to place in the most efficient way, and how products such as some corrugated boxes and gypsum wallboard can perform just as well (or even better) when made using fewer resources. The site also shows how G-P employees are making personal sustainability choices by working safely and participating in the company's wellness program, Get Well Stay Well. The site also features the company's efforts to help build sustainable communities with support for education and sanitation facilities.

"We know that there's no finish line when it comes to sustainability," says Frerking. "There are always things we can do better. But we should also acknowledge our accomplishments as we strive to provide products and services that customers and consumers prefer over the alternatives and supply them as efficiently as we can. Operating sustainably is important to Georgia-Pacific's future success."

Louisiana-Pacific Corp., Nashville, Tenn., USA, has announced that EVP Curt Stevens, L-P's CFO since 1997, will move into the interim position of EVP and COO, newly created by the L-P board of directors for the purpose of implementing its orderly management succession plan. Sallie B. Bailey will join LP as EVP and CFO.

On December 5, Stevens will become responsible for the company's sales and marketing, operating units, and support functions, while Bailey will oversee financial matters. Both will report to CEO Rick Frost.

Stevens is a Certified Public Accountant and holds a Bachelor of Science degree in economics and an MBA with a concentration in finance from the University of California at Los Angeles. He is also a member of the board of directors for Quanex Building Products Corp.

Bailey has held a variety of senior finance roles including CFO at Ferro Corp. from 2007 - 2010, and SVP, finance and controller, with Timken Corp.

Thiele Kaolin Co., Sandersville, Ga., USA, reports that Chris Fagouri has joined the company as market development manager. In this newly created position, Fagouri will lead Thiele's efforts in market diversification by identifying and prioritizing new markets for the company's kaolin products and developing strategies to successfully penetrate those chosen markets.

Fagouri received his Bachelor of Science degree in industrial chemistry from Keene State College in 1988. Since that time, he has held positions in research and development, technical sales, and global marketing management focused in the adhesives, elastomers, and building and construction industries.


The 24th Pulp and Paper Reliability and Maintenance Conference will be held March 12-15, 2012 in Raleigh, NC. The goal of this conference is to continue to be the marketplace for Reliability and Maintenance solutions for the pulp and paper industry. And it promises to provide an arsenal of improvement solutions to help your plant improve financial performance and survive long term.

Since its inception in 1986, the Pulp and Paper Reliability and Maintenance Conference has developed a devoted following of Reliability and Maintenance professionals representing Operations, Maintenance, Stores and Engineering. Over 400 speakers have shared their knowledge and experiences along with over 3,000 conference delegates.

Learn more about this conference and register to attend at the TAPPI conference page.



What's your safety culture like?

Ohio TAPPI presents a seminar on creating a culture of safety in the paper industry.

Most people in the industry understand what is safe to do and what is not. The Ohio TAPPI program won't preach to the choir about good EH&S practices. The program's focus will be on what it takes to make safety an integral part of the culture in a company.

Attendees may hear a little bit of the ‘nuts and bolts' of safety at the upcoming meeting. However, the goal is not another seminar with pictures of horrific accidents scaring everyone into following safety rules and regulations. Instead, the seminar provides a program covering different perspectives on creating a culture of safety in operations within the Ohio TAPPI local section. The perspectives will be presented by employees, management, consultants, and regulators we have lined up to speak and take questions.

The seminar will be held December 2, 2011 at the Roberts Centre in Wilmington, OH. It's located just off 71 at the exit for route 68. As always, seating is limited, so pre-registration guarantees you a spot. Meeting fees are $25 for TAPPI members who pre-register, and $40 for members at the door. The cost for non-members is a flat $50. Students are free. Please pre-register with our treasurer, Glen Miller, who can be reached at glen.miller@mohawkpaper.com.



Collaborative R&D Initiatives Will Help Grow Tomorrow's Technologies

The paper & pulp industry needs innovations in manufacturing processes and products to remain competitive. However, as we all know the ongoing decline in R&D investment is creating a current and future lack of capacity for innovation and is raising serious concerns about where tomorrow's technologies will come from.

One of the best methods for addressing this reduction in technology investment is to bring the industry together for the co-development of new technologies.

The central focus of a new initiative, Agenda 2020, is to promote and encourage collaborative R&D as a public/private partnership.

Join an upcoming webinar on December 7 to learn more about the Agenda 2020 initiative and the R&D funding opportunities that are available for your organization.

Click here to learn more about the webinar speakers.

To reserve your space at this seminar, go to our registration page.


Rethink Trees in Less Than Four Minutes

Having trouble grasping nanotechnology as it applies to the paper industry? Or, do you need help in getting coworkers or customers to understand the nature of trees that make them uniquely suitable for renewable nanotechnology? Do you have about four minutes?

Developed by a team of industry volunteers to raise awareness of the potential of trees using nanotechnology, a four-minute video was developed to highlight the many current uses of tree fiber in countless products, as well as the potential for new products and new uses realized through nanotechnology. This video is available for viewing and downloading.

Thanks to the following companies for their contributions which made this video possible: Alabama Center for Paper and Bioresources Engineering, ArborGen, Fibria, Georgia-Pacific, Nalco, Verso, Kemira, NewPage, MWV, Sappi, International Paper, IPST @ Georgia Tech, U.S. Forest Service.


A panel of industry representatives, meeting in Macon, Ga., on  Oct. 28, urged the Georgia Study Commission on Science and Technology to recognize the strategic value of Georgia's unique resources and the industries that develop their economic potential, and to create a welcoming environment for venture capital investments and job creation.

The panelists included representatives of firms engaged in forest products, mining and biomass technology. Speaking at one of a series of Commission field hearings on developing a plan to enhance science and technology in Georgia, the Traditional Industries in Technology Growth panel called attention to the importance of maintaining and nurturing existing industries, on which rural communities depend, and in which technologies are developing innovative products to compete in world markets.

The panelists also stressed the need for a high-level forum to develop priorities for research and development and the encouragement of new business investment.

Further details on the panel's recommedations and the work of the commission are available on the TAPPI homepage.


Scheduled to be released in 2012!

The Bleaching of Pulp
By Peter W. Hart and Alan W. Rudie

Previous editions of The Bleaching of Pulp have provided comprehensive information on the technology used to bleach wood pulps. The 5th edition will continue this tradition as the premiere industry text on bleaching technologies but will be more focused on the modern industrial processes with less emphasis on fundamental science.

New or more comprehensive sections are included on elemental chlorine free bleaching, enzymes, acid treatments for hexeneuronic acids, control of mineral scale and multi-stage modeling as used to optimize bleaching among multiple stages.

Xerium Technologies, Inc.
Sweed Machinery, Inc