Voith Paper

Over the Wire

TAPPI

Naylor, LLC
Weekly Spotlight
Economic activity in the U.S. manufacturing sector expanded in November for the 28th consecutive month, and the overall economy grew for the 30th consecutive month, according to the latest Manufacturing ISM Report On Business. The report, based on data compiled from purchasing and supply executives nationwide, was issued this week by Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee, Tempe, Ariz., USA.

"The PMI registered 52.7%, an increase of 1.9 percentage points from October's 50.8%, indicating expansion in the manufacturing sector for the 28th consecutive month. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. A PMI in excess of 42.5%, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 30th consecutive month in the overall economy, as well as expansion in the manufacturing sector for the 28th consecutive month.

The New Orders Index increased 4.3 percentage points from October to 56.7%, reflecting the second month of growth after three months of contraction. While the Prices Index, at 45%, increased 4 percentage points from the October's 41%, prices of raw materials continued to decrease (registering below 50%) for the second consecutive month. Respondents cite continuing concerns about the general economic environment, government regulations, and European financial conditions, but are cautiously more optimistic about the next few months based on lower raw materials pricing and favorable levels of new orders.

Of the 18 manufacturing industries, eight are reporting growth in November, in the following order: Wood Products; Textile Mills; Petroleum & Coal Products; Primary Metals; Food, Beverage & Tobacco Products; Computer & Electronic Products; Apparel, Leather & Allied Products; and Paper Products. The nine industries reporting contraction in November (listed in order) are: Miscellaneous Manufacturing; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Chemical Products; Fabricated Metal Products; Transportation Equipment; and Machinery.

ISM's New Orders Index registered 56.7% in November, which is an increase of 4.3 percentage points compared with October's 52.4%, and represents a continuation of growth for the second consecutive month. A New Orders Index above 52.1%, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).

The five industries reporting growth in new orders in November are: Wood Products; Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Chemical Products. The six industries reporting decreases in new orders in November (listed in order) are: Nonmetallic Mineral Products; Miscellaneous Manufacturing; Printing & Related Support Activities; Paper Products; Machinery; and Plastics & Rubber Products. Seven industries reported no change in new orders in November compared with October.

ISM's Production Index registered 56.6% in November, which is an increase of 6.5 percentage points compared with October's 50.1%. This indicates growth for the third consecutive month after just one month of contraction. An index above 51%, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.

The seven industries reporting growth in production during the month of November (listed in order) are: Wood Products; Petroleum & Coal Products; Primary Metals; Food, Beverage & Tobacco Products; Computer & Electronic Products; Paper Products; and Electrical Equipment, Appliances & Components. The six industries reporting a decrease in production in November (listed in order) are: Miscellaneous Manufacturing; Nonmetallic Mineral Products; Machinery; Transportation Equipment; Chemical Products; and Plastics & Rubber Products.

ISM's Employment Index registered 51.8% in November, which is 1.7 percentage points lower than the 53.5% reported in October. This is the 26th consecutive month the Employment Index has been above 50%. An Employment Index above 50.1%, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, eight reported growth in employment in November in the following order: Textile Mills; Wood Products; Paper Products; Primary Metals; Food, Beverage & Tobacco Products; Machinery; Fabricated Metal Products; and Computer & Electronic Products. The eight industries reporting a decrease in employment in November (listed in order) are: Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Plastics & Rubber Products; Petroleum & Coal Products; Chemical Products; Transportation Equipment; and Printing & Related Support Activities.

The full report is posted on ISM's web site.

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The TAPPI Kraft Recovery Course, January 9 - 12, 2012, in St. Petersburg, Fla., USA, can be equally beneficial for mill veterans and industry "newbees" in the critical chemical recovery island of today's kraft pulp mill. A relative newbee attendee at last year's course, Maggie Gerhart, a reliability engineer at International Paper's Courtland, Ala., mill, says the course gave her some practical, highly valuable take-backs that will enrich her career development for many years to come.

With a degree in Paper Engineering from Western Michigan University, Gerhart interned with International Paper and co-op'd with PCA at Tomahawk, Wis., before starting in the power area (including chemical recovery) at Courtland in late January 2010. "Before taking the Kraft Recovery Course this past January, I was somewhat familiar with chemical recovery operations, having learned about the processes in school together with six months of experience from my rotation in the power house," she says.

Gerhart's goal in attending the 2011 Kraft Recovery Course was to build on what she already knew, to acquire more in-depth knowledge in areas she was not that familiar with. "I knew some kraft recovery technologies fairly well, but there were other areas where I knew a little terminology but didn't know much else. I wanted to gain the fundamentals in all areas and get the resources I needed to learn more."

A particularly effective element of the course, according to Gerhart, was the problem solving focus on real, operating floor issues brought to the discussions by the attendees themselves. "After each course topic, we had a question and answer session where attendees were able to discuss equipment or process topics that interested them, from chronic issues to application of new technology. I discovered that a lot of us have similar questions and concerns. It was beneficial to hear how others worked through their issues successfully. I think we all came back with good ideas that we could try at our own mills."

Though she thinks that newbees especially can benefit from the course, Gerhart believes, from what she observed, that experienced mill operations people at all levels also found some very valuable take-back information. The course's networking element is a key feature in this regard, she notes, adding that no matter how much experience a person has, no one is totally experienced in all areas. "We can always learn more from each other."

The course instructors "were the industry's top experts and the right people to be teaching it," Gerhart points out. "And the course materials that I took home are extremely helpful. The binder and CD are well organized. I use these materials at the mill frequently, going back over my notes and adding new notes every time I come back from a project. I think I will probably use these notes forever. I was the only one from my mill to attend the course this year, but I think it helped others here who didn't attend."

The Kraft Recovery Course was "kind of an investment," Gerhart sums up. "Although it was just a week long, with all of the course work I took back to the mill, the people I met, and all of the business cards I collected, I feel like the benefits will last the rest of my career."

More information about the TAPPI Kraft Recovery Course, including a detailed program, is available online.

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The U.S. Department of Energy's Industrial Technologies Program, Washington, D.C., USA, recently changed its name to the Advanced Manufacturing Office (AMO). Along with this name change, AMO is now pursuing a revitalized mission as the lead government office working to identify, explore, develop, demonstrate, and deploy new, energy-efficient processes and materials technologies that will help U.S. manufacturers secure a competitive advantage in the global economy. Collectively, AMO's technologies and suite of technology deployment resources create opportunities for U.S. manufacturers to realize bankable results in productivity and energy savings while also reducing carbon emissions.

In addition to the name change, AMO has formally transitioned its Save Energy Now LEADER initiative to the Better Buildings, Better Plants Program, which is part of the broader Better Buildings Challenge announced last week by President Obama. The Better Buildings Challenge is designed to support job creation by catalyzing private-sector investment in commercial building and industrial facility energy upgrades to make America's buildings 20% more efficient over the next decade, reducing energy costs for American businesses by nearly $40 billion.

In all, 60 public, private, and nonprofit organizations are participating in the Better Buildings Challenge, representing 1.6 billion sq ft of facility space and $2 billion of financial commitments. Nine industrial firms, representing more than 300 manufacturing plants, are part of the inaugural class of Better Buildings, Better Plants Challenge Partners. More information is available online.

The 100-plus companies that previously participated in Save Energy Now LEADER will now be known as Better Buildings, Better Plants Program Partners and will maintain their ambitious 10-year, 25% energy intensity improvement targets. More information on this transition and how to become a Program Partner is also available online.

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Called MAKE: AN AMERICAN MANUFACTURING MOVEMENT, a new strategy by the Council on Competitiveness, Washington, D.C., USA, maps how the U.S. can lead the world in 21st century advanced manufacturing that will be at the heart of our nation's long-term productivity and prosperity. Under the leadership of Council Chairman and Deere & Co. Chairman and CEO Samuel Allen and a steering committee of 60 CEOs, university presidents, labor leaders, and laboratory directors, MAKE will be released to Congress, the White House, and all 50 governors.

The recommendations are the result of hundreds of interviews conducted over nearly three years by Deloitte, as well as dozens of dialogues where Council members and national thought leaders came together to discuss specific manufacturing topics.

The Council on Competitiveness, a Washington, D.C.-based non-profit, non-partisan organization whose membership consists exclusively of corporate CEOs, presidents of universities, and heads of labor unions, is celebrating its 25th Anniversary and hosting its National Manufacturing Competitiveness Summit yesterday and today, December 7 - 8. The Council provides policy recommendations to make America more competitive in the international market place.

Media partners include U.S. News and World Report, IndustryWeek, Popular Science, Scientific American, Manufacturing Executive, and CNBC. The CNBC show Street Signs with Brian Sullivan will be filmed on-location to pose questions to c-suite speakers and guests. Adding to the list of participants will be panel moderators such as Robert J. Samuelson, Washington Post columnist; Rana Foroohar, assistant managing editor for Time Magazine; Brian Kelly, editor for U.S. News and World Report; Mark Jannot, editor-in-chief for Popular Science; and Patricia Panchak, IndustryWeek chief editor.

Speakers will feature top executives from Deere & Co., Lockheed Martin Corp., Deloitte, Bank of America, Snap-On, Bossa Nova Robotics, 3D Systems Inc., General Electric, Rockwell Automation, Ernst & Young, and NASDAQ OMX, among others.

More information is available online. MAKE is available for download beginning today, December 8.

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The Seventh edition of ATNT (Advances in Textiles, Machinery, Nonwovens, and Technical Textiles) international conference will be held in the textile city of Coimbatore, India, December 15 - 17. Texas Tech University, USA, is co-organizing the conference along with Kumaraguru College of Technology in Coimbatore. More than 125 papers spanning the entire textile supply chain will be presented in 16-plus sessions. Textile scientists from industry and academia from eight countries will convene on the Kumaraguru College of Technology campus for this special event.

Conference participants will come from the U.S., U.K., Australia, Kazakhstan, Japan, Taiwan, Germany, and India, and include leading textile companies and academia such as Porous Materials, Ithaca USA, Enercon Industries USA, Lakshmi Machine Works, Voltas, University Institute of Chemical Technology, RWTH Aachen University of Germany, and RMIT of Australia. A special technical workshop on "Opportunities in Technical Textiles" will be conducted by the co-organizing secretary, Dr. Seshadri Ramkumar of Texas Tech University.

According to Prof. Srinivasan, co-organizing secretary of ATNT-2011, "this conference provides a healthy mix of papers from academia and industry and will provide a deliberative platform for the participants from India and abroad to enjoy cutting-edge textile science and Indian hospitality."

For the first time, the conference will have chairpersons of leading textile associations such as The Confederation of Indian Textile Industry, The Southern India Mills Association, The South India Textile Research Association, and The South India Cotton Association in one platform to highlight the status of the global textile industry.

More information about ATNT-2011 is available online of directly from the organizing secretaries: Prof. Srinivasan at srinivasanj2003@yahoo.co.in and Dr. Ramkumar at s.ramkumar@ttu.edu.

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Below is the latest listing of job openings in the TAPPI Career Center. The current listing includes a variety of positions, from executive director to VP of operations, electrical engineer, scientist, sales and service, and immediate opportunities at a greenfield tissue mill. Current, specific job openings at companies and locations in the TAPPI Career Center include:

Employer Job Title Location
Ace Chemical Products Sales and Service Wisconsin
GL&V USA Pulp and Paper Internship Nashua, N.H.
Knowlton Technologies Filtration Sales Manager Watertown, N.Y.
Kemira Scientist Atlanta, Ga.
Zilkha Biomass Energy VP of Operations Houston, Texas
Zilkha Biomass Energy Electrical Engineer Houston, Texas
Burrows Paper Corp. Operations Specialist-III Pickens, Miss
Recycled Paperbd. Tech. Assn. Executive Director
Rayonier Technical Assistant, Fiberline Jesup, Ga.
Buckeye Technologies Plant Development Chemist Perry, Fla.
Kimberly-Clark Engineer-III, Process Fullerton, Calif.
First Quality Tissue Greenfield – Immediate opportunities S.E. U.S./Central Pa.
Filcon America Regional Sales Rep., S.W. Region Southeast, U.S.

More information about these jobs is available online.

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The Association of Suppliers to the Paper Industry (ASPI), Norcross, Ga., USA, has announced industry executives that will be speaking at its 2012 Spring Meeting set for February 8 - 10 in Naples, Fla. Two of the industry's most respected CEOs will be sharing perspectives on their companies and how suppliers can contribute to their success. James A. Rubright, chairman and CEO of RockTenn, and John D. Williams, president and CEO of Domtar Corp., will both be participating in the ASPI Spring Meeting.

"ASPI is extremely pleased to have secured the participation of such highly respected leaders as Jim Rubright and John Williams," notes Bob Gallo, ASPI president and president of Voith Paper–North America. "In the low-growth North American paper and board industry market, both CEOs continue to transform their respective business, both organically and through strategic acquisitions. ASPI is pleased to offer attendees the opportunity to hear Rubright's and Williams' visions, strategic actions, and expectations at our upcoming Spring Meeting in Naples."

ASPI cordially invites all ASPI members to reconnect with peers at the 2012 Spring Meeting. Prospective participants are encouraged to make reservations for the meeting prior to the January 5 hotel cut-off.

More information about the ASPI spring meeting is available online.

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China Paper will be held at the INTEX Shanghai September 10 - 12, 2012. The exhibition features the newest equipment, technologies, and services related to all of Asia's paper industries. Some 400 exhibiting companies and 7,000 visitors from China and 50 other countries will once again be gathered in Shanghai.

China Paper is an annual show that alternates between Beijing and Shanghai, and in 2012 it will celebrate its twentieth edition. Exhibitors from the Americas, Europe, and Asia are represented as well as numerous domestic Chinese exhibitors. The exhibition is attended by top level decision makers and buyers from China's paper mills who have the budgets to make large-scale investments.

A key feature of the China Paper event is the Technical Conference, co-organized by PI (the Paper Engineers' Association) and CTAPI (China Technical Association of Paper Industry). This one day conference will be held on September 11 and the preliminary program will be announced in spring 2012.

More information about China Paper Shanghai 2012, organized by Adforum and E.J. Krause & Associates, is available online, or by contacting Patrik Lowstedt, exhibition manager, at patrik.lowstedt@adforumworld.com or telephone +46 8 749 4361.

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Market Roundup
With the lack of sufficient quality and quantity of domestic wood fiber supply, new pulp mills in China are looking to expand importation of wood chips from plantation-rich countries in Southeast Asia to meet their growing fiber needs, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. In the third quarter, Vietnam, Thailand, and Indonesia were the major suppliers to China, together accounting for about 88% of all imports of hardwood chips.

Malaysia, Cambodia, Chile, and Brazil are a few of the recent and still small suppliers of hardwood chips to China, WRQ continues. These countries, which all supply wood chips from fast-growing Eucalyptus and Acacia plantations, are likely to expand their shipments in the coming years when Chinese pulp mills continue to diversify their supply sources.

China's wood chip imports in the first 10 months of 2011 already equal more than the total volume of imports in all of 2010. This year's imports will reach around 7 million tons, or 37% higher than in 2010. This upward trend is expected to continue in 2012 and 2013 because the Chinese pulp industry is in an expansion mode.

Pulp mills in China basically consume only hardwood fiber, so imports of softwood chips were negligible up until last year when a few shipments started to enter Chinese ports from Australia, Russia, the U.S., and New Zealand. This year, total softwood imports may reach just above 300,000 tons, or 4% of total chip imports.

The average value for China's imported wood chips has steadily increased, reaching $180/ton in the third quarter, or about 22% higher than the same quarter last year, WRQ points out. Vietnam is the lowest-cost supplier, while the cost for Eucalyptus chips from Australia were at the high-end in the third quarter. The costs of chips imported from the major supplying country Vietnam, have gone up almost 40% over the past two years. Vietnam is also shipping large chip volumes to Japanese pulp mills and, WRQ says, "it is interesting to note how the price discrepancy between chips exported to Japan and China has declined from almost $60/ton premium for Japanese-bound chips in 2009 to only $14/ton in the third quarter.

More information is available online.

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Pulp prices are still falling, reports Mark Wilde, senior analyst with Deutsche Bank, "but there are signs suggesting that the bottom could be near," he adds.

Key North American producers have announced NBSK (northern bleached softwood kraft) at $890/metric ton for December, a $30/metric ton m/m drop. Transaction prices are much lower at ~$650 - $680/metric ton for NBSK in China.

At current levels, some integrated Chinese mills are opting to buy from the open market rather than producing pulp. "We're also starting to see closures in Canada and Europe," Wilde says.

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U.S. domestic box volumes remain sluggish and demand in Western Europe is weak, Wilde further reports. "While October box shipments were a bit better than expected," he adds, trade commentary on November volumes appear cautious.

Most trade contacts have reported slowing order patterns. We think the next two to three months are apt to be challenging, with seasonal slowing and macro uncertainty."

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OCC (old corrugated container) markets are showing signs of a modest pick-up after a sharp decline in the past four to eight weeks, Wilde says. OCC to China rose ~$8/ton m/m to $155 – $165/ton FOB in December. At the same time, he adds, domestic markets appear to have stabilized with some pick-up in inquiries. "Even so, we don't expect a sharp snapback in OCC."

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UFS prices in North America were essentially flat in November, Wilde reports. Over the past two months, prices fell $15 - $20/ton. 50-lb offset rolls were at $920 - $940/ton, and cut-size was at $1,065 - $1,115/ton. Demand is sluggish, he notes.

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North American uncoated mechanical prices were essentially flat m/m in November, according to Wilde. Directory estimated prices were at $790 - $810/ton and SC-A at $845 - $880/ton. Producers announced a $30/ton price hike on SC grades, effective October 1. Demand remains weak.

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North American newsprint estimated prices remained flat at $640/metric ton for the 15th consecutive month in November, Wilde says. But underlying fundamentals remain challenging. SP Newsprint filed for Chapter 11 protection, while White Birch is currently under bankruptcy protection and Catalyst Paper's liquidity appears stretched. Demand remains soft. White Birch is idling its 550,000 metric tpy Stadacona newsprint and uncoated mechanical mill in Quebec City, Que., Canada.

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Hilco Industrial
Pulp & Paper
Billerud AB, Solna, Sweden, reports that it will proceed with an environmental and energy investment at Skärblacka mill outside of Norrköping, Sweden. The goal is to strengthen the mill for the future by improving environmental performance and energy efficiency as well as enabling future expansion. The investment is expected to amount to SEK 900 million.

The investment includes upgrading the recovery boiler and its flue gas cleaning system with the best available technology. In addition, a new evaporation unit will be built to improve energy efficiency at the mill. This will lead to a substantial reduction in consumption of fossil oil and external biofuels, the company notes.

Billerud applied to the Land and Environment Court in Växjö, Sweden, for permission to implement these changes and received approval on November 29. The entire project is scheduled for completion by the end of 2013.

Approximately 15% of the SEK 900 million investment will be spent in 2011, 50% in 2012, and 35% in 2013. With this investment in Skärblacka, the Billerud Group's total investments in property, plant, and equipment for 2012 are estimated to amount to approximately SEK 800 million. Depreciation amounts to some SEK 600 million per year.

Skärblacka Managing Director Tor Lundqvist, said that "I see Billerud's major investment in modernization of the mill in Skärblacka as a good sign for the future. Environmental improvements are made continually at the mill and reduced energy costs will strengthen our competitiveness. Our responsibility now is to manage this in the best possible manner."

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After a lengthy, indefinite shutdown that followed the collapse of the U.S. residential housing market in 2008, Canfor Corp., Vancouver, B.C., Canada, says it will close its historic Rustad Sawmill in Prince George, B.C., and Tackama Mill in Fort Nelson, B.C..

Canfor determined that the capital investment needed to bring the Rustad facility up to globally competitive operating standards is prohibitive. The company has instead focused a $300 million, three-year capital investment plan on other facilities where smaller amounts of capital spending can realize significant improvements in cost performance and capacity.

Canfor acquired the Rustad Sawmill in 1999, and operated the facility for 10 years until slowing U.S. lumber demand forced operations to cease in 2009. To that point, the mill had been in continuous operation for 62 years. The Tackama operation in Fort Nelson was part of Canfor's 2004 acquisition of Slocan Forest Products, and at the time was British Columbia's largest plywood facility.

Further information will be available over the next several weeks on plans to repurpose portions of the Rustad site for trades training and education. Rustad and Tackama employees will receive statutory payments and severance as negotiated with the United Steelworkers.

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AkzoNobel's Pulp and Paper Chemicals business, Eka Chemicals, Gothenburg, Sweden, reports that it will close operations at its paper chemicals Joutseno, Finland, plant by the end of the first quarter of 2012.

The company notes that, despite the best efforts of its employees, current market and economic conditions have rendered the production of sizing agents at the site financially unsustainable in the longer term. The Nordic market will continue to be supplied with similar products from other Eka locations in the region.

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Fortress Paper Ltd., Vancouver, B.C., Canada, this week began dissolving pulp production at its Fortress Specialty Cellulose Mill in Thurso, Que., Canada. The centerpiece of the project, a new state of the art, pre-hydrolized kraft cooking plant, came online successfully this past Sunday, December 4.

Chad Wasilenkoff, chairman and CEO of Fortress Paper, noted that "this is a momentous day in the history of Fortress Paper and a culmination of our work at the Fortress Specialty Cellulose Mill since acquiring the mill in April 2010. We are very proud to join the limited group of dissolving pulp producers in the world and look forward to completing our first shipments. We would like to thank all those involved in helping bring this project on line."

In other announcements, the company said that upgrades to improve speed and capacity at its Dresden, Germany, mill have been successfully implemented. During the past few months, Fortress, in its normal course, has been reviewing each of its business divisions and assessing all options as part of its strategy to enhance shareholder value. As part of this ongoing evaluation, management identified a potential divestiture opportunity relating to its non-woven wallpaper base division.

Given the financial uncertainties and lack of financial confidence in the Euro zone, Fortress management said that it decided not to pursue any divestiture option for the Dresden Mill. With the support of its management team in Germany, the company intends to continue to grow this business division organically and potentially through strategic acquisitions.

The Fortress Landqart Mill in Switzerland "has continued to experience challenges throughout the fourth quarter as a result of a strong Swiss franc, high raw material costs, and less than optimal production efficiency on its paper machines," the company noted, adding that it expects that these issues will continue to materially impact results of operations in the fourth quarter. The company anticipates that it will overcome many of these challenges with the new banknote paper orders that have recently been placed at the mill and which represent a significant portion of the mill's 2012 banknote capacity.

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HengAn has set a new speed record for an Advantage ViscoNip press at its Weifang mill in Weifang, Shandong province, China. The Metso (Finland)-supplied Advantage DCT 200 tissue production line, equipped with the Advantage ViscoNip long-nip press, has been running at a record breaking speed of 2,000 m/min on average for more than one month at the mill.

"We would like to express our appreciation to fellow workers in the front line of Metso and our company for working together as one to reach this outstanding result," says Wu Hanxing, GM, Shandong HengAn Paper Co. "This press unit provides high machine speed and continuous production due to no downtime, giving our corporation an even stronger position in the market."

HengAn also operates an Advantage ViscoNip press in the PM 8 line at its mill in Changde City, Hunan province, and in its PM 6 line at the Anhai mill in Fujian province. The Advantage ViscoNip press yields substantial savings in drying energy consumption. An Advantage DCT 200 tissue line such as the one HengAn operates at its Weifang mill means a saving in energy consumption corresponding to EUR 750,000 a year, the company says.

The ViscoNip pressure unit conforms to the shape of the yankee, and produces a uniform nip load over a very wide range of linear loads from 70 to160 kN/m. Compared with a rigid roll or metal shoe against the yankee, the Advantage ViscoNip press is flexible and accommodating. It delivers the pressure where it is needed, in a uniform manner. This press technology delivers a more uniform profile compared with a suction roll press and the higher sheet adhesion results in improved softness and bulk.

Three more Advantage ViscoNip press units will be started up during 2012 in China: at Fujian HengLi Paper PM 2 in Nanan City, at Xiamen Xinyang Paper PM 1 in Xiamen City, and at Garven Sanitary Products PM 1 in Fyzhou city, all three in Fujian province.

In the photo at right, Wu Hanxing, GM, Shandong HengAn Paper Co. (left) receives an award for the 2,000 m/min speed record with an Advantage ViscoNip press on its PM 10 tissue machine at Weifang, Shandong province, China, from Anders Björn, president, Metso Paper, Karlstad AB. Also present were Ren Rongwang, vice chief engineer, HengAn Group (far left) and Leif Forsberg, SVP, Metso (far right).

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A new bark press manufactured in Finland has been delivered to the Ust-Ilimsk Branch of OJSC Ilim Group in Russia, the company reports. The press was purchased and financed by the Ilim Group as part of an investment project aimed to upgrade the chip production line equipment. Total Installed Cost is $3 million.

The new state-of-the-art bark press was purchased to replace obsolete equipment in the chip production line. Due to its higher capacity, the new press will replace as many as three old bark presses at the existing line.

Startup of the new press will allow the mill to stabilize bark processing and, consequently, will improve chip processing efficiency. As a result, this will reduce energy and equipment maintenance costs, the company notes.

Ilim, St Petersburg, Russia, currently operates similar bark presses at its mills in Bratsk and Koryazhma in Russia.

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Metsä Tissue, Espoo, Finland, part of the Metsäliitto Group and a tissue and cooking paper supplier Europe-wide, has decided to close its production, converting, and supply chain operations at the Konstancin-Jeziorna mill near Warsaw, Poland. Operations will be terminated in April 2012.

Metsä Tissue has carefully analyzed three alternative options for the future use of the Konstancin-Jeziorna site, which were initially communicated in May 2010. The three alternatives were to use the site for warehousing and converting, to use it solely for warehousing, or to rezone it for residential development. This week the company confirmed that all production at the site will be closed in April 2012 and the two latter options are to be studied further.

"As our Polish and other Eastern and Central European customers can be served by our other mills in Poland, Slovakia, Germany, and the Nordic countries, after weighing our options, this decision – though not easy – was the only sensible course of action. The closure will affect up to 140 employees," says Hannu Kottonen, CEO of Metsä Tissue. The company will immediately initiate a consultation procedure with the Polish employee representatives.

"We made this decision to close our operations in Konstancin-Jeziorna also due to the obsolete infrastructure, which would have required significant short- and long-term investment and would have been unsustainable for the company," says Lars Warvne, SVP, Technology and Operations, Metsä Tissue.

Since the initial announcement in May 2010 and during the evaluation of the three options, Metsä Tissue has been working intensively with local authorities to find sustainable solutions to offset the impact of the closure on the community infrastructure. Metsä Tissue has been discussing the option of rezoning the site for alternative uses with local authorities. The rezoning option could support the city's development as an attractive residential area close to Warsaw. At this stage, the company wants to keep alternative uses of the site open.

As part of Metsä Tissue's development program announced in May 2010, the company will invest in upgrading its Krapkowice mill in southern Poland to increase production capacity and to enhance the brand, product, and service offering. Implementation of the plan, which includes the closure of Konstancin-Jeziorna's operations, will contribute to better productivity and sustainability, while also ensuring that the company remains a reliable long-term partner for its customers.

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European-based Lecta Group's two merchants in the French market, Torraspapel France and Malmenayde, merged earlier this week to create a new company—Torraspapel Malmenayde. Torraspapel Malmenayde and its regional affiliate, Nord Papier, specialize in the distribution of coated papers while also boasting a wide range of creative and specialty papers for the graphic and office paper segments.

Torraspapel Malmenayde's key figures include: 

  • More than 1,000 graphic and office papers available in stock 
  • 900 orders per day, with 6 - 24 hr delivery service in the metropolitan area of Paris and 24 - 48 hr service in other regions, through its three logistics hubs in the north of France, near Paris, and in the South 
  • A one-of-a-kind manufacturing service with more than 100 suppliers, from newspaper grades to specialty papers, as well as coated and uncoated papers.

The new merged group will have yearly sales of approximately EUR 200 million.

Torraspapel Malmenayde is part of the Lecta Group, the second-ranked coated paper manufacturer in Europe with nine mills (seven in Spain, one in France, and one in Italy). Lecta sells more than 430,000 metric tons of paper through its merchants in France, Spain, Portugal,and Argentina. The group has more than 3,900 employees and sales of more than EUR 1,500 million.

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Containerboard/Packaging
To increase awareness about carton recycling, the Carton Council, Vernon Hills, Ill., USA, a group of packaging companies seeking to reduce the environmental impact of cartons by expanding recycling programs across the country, and Earth 911 Inc., Scottsdale, Ariz., producer of the nation's largest recycling directory, are teaming up to help people recycle more. A new section on Earth911.com was built to specifically address the ins and outs of carton recycling, and Earth911 and the Carton Council will work on stories throughout the year containing facts, tips, and ideas to help people improve their knowledge about carton recycling.

"As carton recycling opportunities have become more prevalent throughout the U.S., we saw the need to establish reliable information on how consumers can participate in this growing stream," said Raquel Fagan, VP of media for Earth911. "We are excited to launch this new resource with a group that is so dedicated to ensuring this packaging does not go to waste."

Currently, 36% of U.S. households have access to curbside carton recycling, up from 18% only two years ago, according to the Carton Council. Drop-off and mail-in programs are also available, expanding access. The average person uses 17 drink boxes per year, which means there is a significant opportunity to reclaim these materials for secondary use.

"Not only is the Carton Council working to establish wider access to carton recycling," said Ed Klein, executive director, "but we want to make sure that the people who do have access know that they can recycle these materials and how to do that properly. With our relationship, they can read about, find, and utilize their local recycling opportunities easier than before."

Members of the Carton Council include Elopak, Evergreen Packaging, SIG/SIG Combibloc, and Tetra Pak. As of November 2011, the Council's Carton Recycling Access Campaign had helped increase consumer access to nearly 42 million households nationwide (more than 1 in 3 American households).

More information about the new section on Earth 911.com is available online.

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The Toxics in Packaging Clearinghouse (TPCH), Brattleboro, Vt., USA, has launched a new study that will test inks and colorants in single-use shopping and mail order bags for the presence of lead and cadmium. The use of these toxic metals is restricted by toxics in packaging laws in 19 U.S. states, according to TPCH. The study is a follow up to two previous projects by TPCH that identified inks and colorants as a potential source of lead and cadmium in packaging.

TPCH is collecting retail packaging samples through the end of the year. In January, the packaging samples will be screened using an x-ray fluorescent (XRF) instrument that allows for the inexpensive and rapid detection of elemental composition. Samples that screen positive for the restricted metals will be sent to laboratories for confirmatory testing.

As with past projects, TPCH says that member states may use the test results to pursue enforcement of their state laws. Penalties for non-compliance with state laws vary. In New York, for example, the penalties for violations of the Hazardous Packaging Act are up to $10,000 for the first violation and up to $25,000 per violation for each violation thereafter. Each package on the shelf constitutes a separate and distinct violation. Similarly, in Connecticut and Iowa, a violation could result in a penalty of $10,000 per day per violation.

Ten states—California, Connecticut, Illinois, Iowa, Minnesota, New Hampshire, New Jersey, New York, Rhode Island, and Washington—are members of TPCH, which is administered by the Northeast Recycling Council (NERC) in Brattleboro.

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Valley Box Co., San Diego, Calif., USA, reports that it has donated more than 1,000 corrugated boxes for collection and distribution efforts to bring the Spirit of Christmas to less fortunate members of the Santee, Calif. community. Annually, during this time of year, the Santee Santas Foundation distributes these collection boxes at locations around Santee County. Valley Box has been donating the collection boxes since 2003.

The Santee Santas Foundation is a local, nonprofit, all-volunteer organization that provides struggling families with toys, food, and monetary assistance.

Valley Box provides package design for industrial packaging. The company's packaging solutions include custom design, manufacturing, and just in time fulfillment.

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Billerud, Sweden, reports that it is integrating development work in the field of bioplastics and other future materials. This work has previously taken place in the subsidiary Tenova Bioplastics AB of Sweden, which Billerud acquired in 2009 to explore and gain more in-depth knowledge of new possibilities of combining bioplastic with paper in smart packaging. The development division of the company is now being entirely integrated in Billerud.

In connection with this process, the production business currently located in Åby, Sweden, will be transferred to the Norwegian company BioBag International AS. This will mean that Billerud will become a minority owner in the Norwegian company. Billerud will work closely with BioBag on certain development projects.

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Boise Inc., Bose, Idaho, USA, has completed its acquisition of the Hexacomb protective packaging business of Pregis Corp. Hexacomb is a producer of kraft paper-based honeycomb protective packaging and operates 12 manufacturing facilities across six countries.

"We are pleased to complete this acquisition and welcome Hexacomb employees to Boise," said Alexander Toeldte, president and CEO of Boise. "Hexacomb expands our position in the protective packaging market, provides a platform for further growth, steps up our vertical integration within our containerboard business, and delivers synergies with limited execution risk."

In 2010, Hexacomb had revenues of $102 million and converted approximately 60,000 tons of containerboard. The $125 million transaction was financed through cash on hand.

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Huhtamaki, De Soto, Kansas, USA, a producer of foodservice and paperboard packaging, has acquired the business and assets of Ample Industries Inc., a privately held manufacturer of folding paperboard cartons for the foodservice industry. Ample Industries employs some 230 people at its Franklin, Ohio, plant and adds to Huhtamaki North America a new product technology, an experienced workforce, and an additional manufacturing presence in the Midwest.

"Ample Industries' nested trays, fry cartons, and clamshells further expand Huhtamaki's product portfolio of tableware, cups, containers, carriers, and service ware," says Clay Dunn, president of Huhtamaki North America.

"We're excited to join Huhtamaki," Bob Fairchild, president of Ample Industries, said. "Our state-of-the-art N-line machinery and high quality foodservice cartons now have the backing of a global company with a broad product range, strong management, and financial stability. Today is a good day for our customers and employees."

Huhtamaki also announced plans to expand capacity in the paper drink cup and pressed paperboard plate businesses for foodservice and retail customers in North America.

"The expansion of our shaped paperboard capacity builds on our global paper drink cup business and substantial North American paperboard assets and expertise," says Dunn. "We believe two folding carton acquisitions in three months and the expansion into cups and plates demonstrates Huhtamaki's commitment to foodservice customers and to growth in North America."

Huhtamaki North America employs approximately 3,500 people in 14 manufacturing units. The parent company is Huhtamäki Oyj, Espoo, Finland.

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Published Pricing
Voith Paper Fabric & Roll Systems in Europe will increase the price for its products and services by an average of 3.8%, effective Jan. 1, 2012. The company notes that this adjustment is necessary "as the price increases for raw material, energy, and transportation cannot be compensated by internal efficiency increases and cost saving measures only."

In addition, Voith Paper says it will sustain a high level of value added solutions to its customers and therefore will continue to invest in R&D to offer innovative and sustainable products.

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People
The AF&PA, Washington, D.C., USA, announced this week that C. Samuel Kerns has joined the organization as the new VP, administration and CFO. Kerns will have responsibility for the financial, human resources, facilities, and information systems of the association.

Prior to joining AF&PA, Kerns served 11 years as VP, finance & administration for the American Public Transportation Association. He has also served as the VP for finance, treasurer, and CFO for the Center for Strategic and International Studies, a non-profit international and domestic policy research think tank, and as corporate controller for Hagler Bailly, an international management consulting firm.

A native of the Washington, D.C., area, Kerns holds a Bachelor of Arts in Business Administration from McDaniel College. He is a certified public accountant and is a member of the American Institute of Certified Public Accountants, Maryland Association of Certified Public Accountants, and the American Society of Association Executives.

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TAPPI News

Ohio TAPPI Safety Seminar

Most people in the pulp and paper industry understand the nuts and bolts of what is safe to do and what is not in a pulp and paper mill. This seminar won't focus simply on best practices, or show photos of accidents at work. Instead it's focused on discovering what it takes to make safety an integral part of the culture of a company.

In order to provide a broad range of insight into how to accomplish this, the program features perspectives on safety from all interested parties including: employees, mill management, expert industry consultants and regulators (OSHA).

The meeting will be held in the Roverts Centre in Wilmington, Ohio. Meeting fees are $25 for TAPPI members who pre-register and $40 at the door. Non-member fees are $50.

To pre-register contact Glen Miller, Treasurer, at glen.miller@mohawkpaper.com.

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"Renewing the Renewable Industry", a December 7 TAPPI webcast production, featured Agenda 2020, the technology alliance driving innovation and renewal in the forest products industry. The event attracted more than 100 registrants from about a dozen countries.

Panelists included Agenda 2020 president and executive director Ron Brown; vice president and technology director John Cowie; MWV senior vice president-technology and forestry Mark Watkins, who serves as chair of agenda 2020; and Beth Cormier, vice president-R&D, SAPPI Fine Papers-N.A and Agenda 2020 vice-chair. Kathleen Bennett of Bennett Consulting served as moderator. Participants heard how this public-private consortium of companies, academia, and government offers a cost-effective research collaboration to promote development of new enabling technologies that can lead to new products, new markets, and new processes.

Agenda 2020's mission is to transform the industry by establishing the research priorities, driving collaborative research, and obtaining funding, striving to make the industry more sustainable—socially, environmentally, and economically.  The presentation will be available soon on TAPPI's website. 

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An Update from TAPPI's International Nanotechnology Division Officers

Division Chair: Sean Ireland – Verso Paper

Division Vice-Chair: Phil Jones - Imerys

Division Secretary: Ted Wegner – USDA Forest Service- Forest Products Laboratory

As the leadership team for TAPPI's new International Nanotechnology Division, we are really excited about the challenges of leading the Nanotechnology Division as it works to advance a broad range of activities to expand education, standards development and networking opportunities. Nanotechnology has great potential as a key technology to enable the development of a new generation of products based on traditional forest products as well as a range of other applications and renewable materials.

While much has been accomplished, we are only just beginning to see the commercial results of ongoing research and development efforts that illustrate the great potential of this technology. There are many opportunities to learn, get involved, and stay informed of new technical advances. Here are three.

International Conference on Nanotechnology for Renewable Materials

In its seventh year, TAPPI's annual nanotechnology event has been renamed to reflect both the expanding applications of cellulose beyond its fledgling origins in the pulp and paper industry, to the medical and automotive industries as well as application in the military. This year's event will take place in Montreal, Canada on June 5-7, 2012. Visit the event website for speaking opportunities, program details, and more.

International Standards Development

Launched late in 2011, the Division's first committee will work with international experts on coordinating standards development for nanotechnology. As nanotechnology moves from the research labs to industrial manufacturing to consumer products, new issues and discussion arise. Standards play a huge role in commerce and societal benefit. Find out more and join.

Advancements in Nanocellulose Research, Development and Commercialization

TAPPI is recruiting volunteers for the International Nanotechnology Division who can help identify advancements in renewable nanocellulose materials research, development and, most importantly, commercialization.

To learn more or join this exciting new division of TAPPI, email Mary Ann Cauthen, TAPPI Member Group Coordinator.

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TAPPI PRESS SPOTLIGHT!

Fundamentals of the Kraft Recovery Process
By: Dr. Jeff Empie

This book details the chemical engineering fundamentals of the kraft recovery process, including mass and energy balances, thermodynamics, fluid dynamics, phase separations, heat and mass transport phenomena, and reaction kinetics. Each kraft recovery unit operation, including multiple effect evaporation, recovery boiler operations, green liquor processing, causticizing, and white liquor processing is discussed in detail.

The text is ideal for senior or graduate level courses for pulp and paper, chemical, and mechanical engineers, as well as a valuable reference resource for practicing pulp mill engineers who want to better understand the kraft recovery process they operate each day. 

 Click here for more details.

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TAPPI member William "Bill" Bittle says that membership offers the best professional tools, experiences and training to help you get ahead of the competition, while at the same time making you more valuable and effective no matter what segment of the industry you are in.

"TAPPI presents a great networking experience that cannot be duplicated elsewhere," Bill says, and it is for that reason he always urges his "reports and peers to join TAPPI and tap into its knowledgebase, publications, training, and conferences." Find out more by reading this month's Member Spotlight .

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire  to fill out and return. We look forward to seeing you in the Spotlight!

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The TAPPI Board of Directors elections begin today, December 1, and will conclude on January 15, 2012.

Learn more about the TAPPI Board of Directors

 In March 2012, three directors will complete their terms. To fill these vacancies, a slate of three candidates has been proposed by the Nominating Committee:

  • Michael Exner, Senior Vice President and General Manager - Containerboard Mills, RockTenn ·
  • Steven J. Shifman, President and CEO, Michelman Inc.
  • E. Clayton Teague, Former Director (Retired), National Nanotechnology Coordination Office

Elections have begun and conclude January 15, 2012. All TAPPI members are encouraged to vote.

Biographical profiles and candidate statements for these candidates are included on the online voting site. You may vote for or against the entire slate or for or against each candidate.

To vote online, follow these three easy steps:

1. Click on Election Services Corporation voting site and log in to vote.

2. Follow the steps to log in to the voting site:

A. Enter your Election Validation Number

B. Use the tab key or use your mouse, place cursor in the text box next to "Member Number". (Do not use your Enter key.)

C. Enter your TAPPI Member Number

D. Use the tab key or use your mouse to place the cursor over the "Login" button.

E. Click on the "Login" button. 3. View biographical information about each candidate (make sure your pop-up blockers are turned off) and cast your ballot.

If you have any questions about voting online, or wish to request a paper ballot, please contact Election Services Corporation by e-mail at tappihelp@electionservicescorp.com or call toll-free 1-866-720-HELP (4357), 9:00 am - 5:00 pm, Eastern Standard Time (EST).

Can't find your member number? Contact TAPPI's Member Connection Center at +1-770-446-1400 or memberconnection@tappi.org The results of the election will be reported on www.tappi.org  in mid-January 2012 and in the March 2012 issue of Paper 360.

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Xerium Technologies, Inc.









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