Voith Paper

Over the Wire


Naylor, LLC
Weekly Spotlight
CelluForce, Montreal, Que., Canada, this week announced the end of the construction phase and the start of operations at the first manufacturing plant for NanoCrystalline Cellulose (NCC) in the world. NCC is an advanced material derived from wood fiber that improves strength, durability, and toughness. Nanomaterial is capable of transforming the performance of existing products and creating new, unique, and improved products for numerous industrial sectors.

For the past eight weeks, CelluForce, a joint venture of Domtar Corp., Montreal, and Canada-based FPInnovations, says that it has been progressively starting up equipment for the first-ever, large-scale production of NCC. The nanomaterial will be produced in state-of-the-art facilities located at Domtar's pulp and paper plant in Windsor, Que. Construction extended over a 14-month period. It required a total investment of $36 million, including financial participation of both the federal and Québec governments.

CelluForce President and CEO Jean Moreau reported that "wood pulp is being delivered to the plant to test the new equipment and we are making progress on a daily basis. NCC will start to be produced by the end of the year, with production gradually increasing until it reaches a steady rhythm of 1,000 kg per day in 2012."

As Rene Goguen, VP, Manufacturing for CelluForce, explained, "the rapid advances made in testing stages bear testimony to the hard work, devotion, and expertise of our employees. We are all proud to be participating in this project and very conscious of the fact that it is a world first. The 25 operations personnel of this youthful company, who were already experienced employees at Domtar, a partner in CelluForce, started work last June. They went through an intensive training session to ensure they were ready to startup the specialized equipment, most of which was custom-built specifically for the manufacture of NCC.

Recyclable and renewable, NCC, in addition to boosting strength, durability, and toughness, can reduce damage caused by wear, abrasion, and light. It can also be incorporated into systems to make structures that are light reflective (tunable from ultraviolet to infrared), impermeable to gas and stable over time. Properties of this advanced material derived from wood fiber will lead to commercial applications largely exceeding those of traditional wood fiber products, CelluForce says. .

CelluForce will, on a worldwide basis, market NCC for strength applications under the CelluForce Impact brand, and for optical applications of NCC under the CelluForce Allure brand. Trials integrating NCC into the manufacturing process of different products are currently taking place with a variety of potential partners, and CelluForce notes that it should be in a position to announce the signing of its initial contracts shortly.

Wausau Paper, Mosinee, Wis., USA, announced this past week that it will close its Brokaw, Wis., paper mill and sell its premium Print & Color brands—including Astrobrights, Astroparche, and the Royal family of products to Neenah Paper, Alpharetta, Ga. The sale is scheduled to close on January 31, 2012. The Brokaw mill will be permanently closed by March 31, 2012, marking the end of the company's material participation in the Print and Color markets. The Brokaw shutdown will affect approximately 450 hourly and salaried jobs.

Wausau's announcement reflects the outcome of a strategic review of alternatives for the Print & Color business, begun early in 2011. President and CEO Thomas J. Howatt said "I wish to express my sincere gratitude to our Print & Color employees for their unceasing efforts to reengineer and sustain this business. Our decision to exit Print & Color was ultimately driven by dramatic and irreversible market demand decline and the need for consolidation to bring these markets properly into balance.

"While the effort to secure a buyer for the mill was unsuccessful," Howatt continued, "employees of the Print & Color business have done all that has been asked and this closure is in no way a reflection of their skill, talents, or determination to return this business to acceptable levels of profitability."

Anticipated after-tax closure-related costs and impairment charges, net of proceeds from the premium brand sale, are expected to total approximately $49 million, or $1.00 per diluted share, including after-tax non-cash charges of $45 million, or $0.92 per diluted share. In the fourth quarter of 2011, after-tax charges are expected to be approximately $49 million, or $0.99 per diluted share, with non-cash charges totaling approximately $48 million, or $0.96 per diluted share, including approximately $38 million, or $0.78 per diluted share, related to the impairment charge on mill assets.

Remaining closure-related charges, net of the proceeds from the premium brand sale, will be recognized during 2012. Sales proceeds and liquidation of working capital, net of closure costs, are expected to generate estimated cash flows of approximately $20 million in 2012. Closure of the Brokaw mill is expected to be accretive to both operating earnings and EBITDA on an annual basis.

A pilot project involving U.S.-based Time Inc., Hearst Enterprises, National Geographic Society, Verso Paper Corp., and Sappi Fine Paper North America has led to 790,000 acres (320,000 hectares) of additional forest lands being certified to the Sustainable Forestry Initiative (SFI) Standard in the U.S. State of Maine. The pilot was an extension of an earlier project involving Time, Hearst, Verso, Sappi, and NewPage Corp. that led to 620,000 acres (250,000 hectares) certified to the SFI 2010-2014 Standard in 2010, bringing the total of additional lands certified to the SFI Standard to 1.4 million acres (570,000 hectares).

"The companies involved are among a growing number of corporate leaders who know certification is key to responsible sourcing of forest products, and embrace credible standards such as SFI," SFI President and CEO Kathy Abusow said. "And Maine is just a starting point—they are already looking for ways to expand supply options and promote responsible forest practices by encouraging more landowners to certify their forests to the SFI Standard."

The first phase of the Maine pilot project improved access to SFI certification by creating a template so medium-sized landowners could develop, implement, and coordinate management plans in a simpler and more consistent manner. The second phase included additional landowners and land managers such as Katahdin Forest Management LLC and Huber Resources Corp.

"The pilot showed us how the SFI standard's training and outreach requirements can help us manage our lands responsibly so our forests can deliver environmental values and support local jobs today and into the future," said Kenny Fergusson, Maine woodlands forester for Huber Resources Corp.


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.

Market Roundup
Slowing lumber markets throughout the world have resulted in declining sawlog prices in many of the major lumber-producing regions in Europe and North America, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. The biggest price reductions occurred in Japan, Sweden, Poland, and Russia.

With weaker demand for lumber around the world, sawlog prices fell in a majority of the 21 markets tracked by the (WRQ). The Global Conifer Sawlog Price Index (GSPI) declined in the third quarter of this year for the first time since the first quarter of 2009. With a few exceptions, prices fell in both local currencies and in U.S. dollar terms.

The only region that saw any substantial price increase in the third quarter was British Columbia, where prices were up 5% - 7% from the second quarter. This region has benefited from higher lumber exports and production has gone up during 2011. The price for Coastal Hemlock rose more than 3% in the third quarter, while the price for spruce-pine-fir (SPF) logs in interior British Columbia rose nearly 7%. Prices in both regions were the highest they have been since the global financial crisis in late 2008.

As noted above, the biggest price declines the past quarter occurred in Japan, Sweden, Poland, and Russia, where prices were down between 6% and 12% from the second quarter. The three latter countries are major exporters of lumber, and shipments to European markets and Northern Africa have fallen this summer and fall.

Wood costs have gone down for many sawmills throughout the European continent in the third quarter, mostly due to slowing lumber sales and an expectation of lower lumber production levels during the winter months. In the Nordic countries, there were a number of announcements of curtailments for the fourth quarter and the first quarter of 2012. Although sawlog prices fell in a majority of the 10 countries in Europe covered by the WRQ, they were still higher than the third quarter last year. For most markets, log prices have come up between $15 - $25 per cubic meter during the past 12 months, with only Western Russia and Norway seeing minor price increases.

Many of the continent's sawmills are currently paying close to the highest sawlog prices seen in at least 17 years, and this is occurring at a time when lumber prices are far from any record highs, and are even declining in some markets. Because of the weakening lumber demand, it can be expected that log prices will soften in the coming months.

More information is available online.

Softwood prices remain under pressure, Marke Wilde, senior analyst with Deutsche Bank, reports. In hardwood grades, he says, "the market tone appears to have improved a bit after a sharp fall-off in prices over the past five months. U.S. NBSK (northern bleached softwood kraft) prices are set to fall $30/metric ton this month, to $890/metric ton. Spot prices are much lower—in the $600 - $650/metric ton range. In BEK (bleached eucalyptus kraft), Fibria recently announced a price increase in Europe and China. Spot hardwood prices are in the $500 - $550/metric ton range."

November containerboard prices were flat at $635 - $645/ton, according to Wilde. October box data, he notes, were a bit better than expected and recent ISM/retail data suggest that domestic demand is relatively flat to modestly positive. "While Deutsche Bank is forecasting a drop of $5/ ton q/q in the fourth quarter and $40 - $45/ton y/y in 2012, we've become a bit more optimistic about December published prices. We still haven't seen much evidence of domestic erosion," he says.

Domestic U.S. OCC (old corrugated containers) was down $6/ton to $121/ton in December, Wilde continues. "We think OCC prices have started to stabilize and see limited downside from current levels. Over in China, U.S. export OCC is showing signs of a modest pick-up: ˜+$10/ton in the past two weeks. Even so, we don't expect a sharp snapback in OCC," he says.

North American uncoated mechanical paper demand remains weak, according to Wilde. Preliminary November shipments were down 15.1% y/y versus a YTD decline of 9.1% y/y. SC-A appears to be a bit weak, he adds. Producers are taking market downtime to prevent prices from slipping. Producers have also announced mill shutdowns—Newpage's 360,000 tpy PM 2 at Port Hawkesbury, N.S., and Verso Paper's 103,000 tpy at Sartell, Minn. In Europe, producers have shutdown ˜450K tpy of capacity this yr. "We ultimately expect Port Hawkesbury to restart under new ownership," Wilde says. Oversupply in the coated mechanical market, he points out, has forced some producers to run uncoated mechanical, putting pressure on the supply/demand balance. Uncoated mechanical prices were essentially flat m/m in November. Estimated directory prices were at $790 - $810/ton and SC-A at $845 - $880/ton.

North American newsprint estimated prices remained flat at $640/metric ton for the fifteenth 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.

Pulp & Paper
Albany International Corp., Rochester, N.H., USA, this week announced it will discontinue manufacturing at its forming fabric facility in Menasha, Wis. The company says the action is based on the need to balance its paper machine clothing manufacturing capacity in North America with anticipated long-term demand. The closure will begin in January.

Albany adds that the closure is a business necessity, driven by existing and expected market conditions, and in no way reflects on the performance of the 48 affected employees, who will be offered severance and outplacement assistance.

Transition of forming fabric manufacturing from Menasha to other facilities in North America will be supervised by technical and manufacturing personnel to ensure continuity of customer supply. The transition is expected to be completed by July 2012.

The Company's Menasha facility will continue to operate as a center of excellence in forming technology and as one of the organization's R&D centers.

PT Graha Cemerlang Paper Utama (GCPU), a subsidiary of Kompas Gramedia Group, Indonesia, has brought its second brand-new Intelli-Tissue 2100 machine on stream at its Cikampek mill in Indonesia. The new tissue machine, supplied by PMPPoland S.A., reportedly started up smoothly and easily (plug & play technology). The new machine was named "Natalia."

The new 3,650 mm crescent former Intelli-Tissue 2100 machine has a maximum capacity of 140 tpd and a maximum operating speed of 2,000 m/min. It is basically the same machine GCPU ordered from PMPPoland in 2005; however, the Intelli-Tissue 2100 machine has a higher maximum operating speed and approximately 5% more capacity. The new machine is able to produce tissue in a basis weight range of 12 - 42 gsm for conversion into facial tissue, toilet rolls, and towels from 100% virgin pulp, both hardwood and softwood.

The scope of supply included stock approach, the entire tissue machine (Intelli-Jet V headbox, Intelli-Former Crescent Former, Intelli-Press, Intelli-Reel, and a 15-ft yankee dryer with a high efficiency gas hood), and auxiliary systems such as DCS for the entire technological line, lubrication system, steam and condensate and vacuum systems, and dust and mist removal systems.

UPM, Helsinki, Finland, this week will cease paper production at its mill in Myllykoski, Kouvola, in the Kymenlaakso region of Finland. The company's "From Job to Job" program at the mill will help reduce the impact of staff reductions related to the closing of the mill. The program, which UPM implements in co-operation with authorities and partner companies, includes active measures that promote employment and re-training.

UPM, the Ministry of Employment and the Economy, and the City of Kouvola are also looking for a new industrial player to occupy the Myllykoski mill.

The Myllykoski mill produces coated and uncoated magazine paper, with a 600,000 metric tpy total production capacity from its three productions lines. The mill, established in 1892, employs 371 people.

Norske Skog, Lysaker, Norway, reports that its board of directors this past week (December 7) recommended closing production at the company's Follum mill at Hønefoss, Norway. On December 8, the matter was presented to the Corporate Assembly of Norske Skog. Pending final action by the Corporate Assembly, production at Follum will, according to plan, will cease no later than March 31, 2012.

The decision of the BOD was reached against the vote from the Follum employee representative, the company noted.

"Norske Skog sells less paper than before since many replace paper with electronic media. We unfortunately no longer need as many paper mills, and therefore the least competitive mill has to be closed first," said Chairman of the Board Eivind Reiten. "The majority of the board has concluded that no justifiable alternative to a closure exists. This is regrettable towards the employees at Follum. We have been negotiating with Viken Skog regarding a potential sale. It has however not been possible to reach an agreement that is viable both in a market and an economic sense."

Norske Skog Follum has 356 employees and produces improved newsprint, magazine paper, and book paper. It has an annual production capacity of 290 000 metric tons.

This week the Koryazhma mill of Ilim Group, Russia, made its millionth ton of product since the beginning of the year. This record performance was achieved 21 days earlier than last year, the company notes. The previous 1 million ton of products record among European pulp and paper producers was set on December 30, 2010 also by the Koryazhma mill.

Over the next three years, Papierfabrik August Koehler AG, Germany, says it will invest EUR 35 million to secure the future of the Oberkirch, Germany, mill and with it safeguard some 900 jobs. The finishing equipment and logistics investment project includes a fully-automatic reel wrapping machine for Koehler FineTech Papers and Decor Papers, a new sheeter for reacto Carbonless Paper and thin printing papers, a central pallet wrapping line and reel packaging machine for thin printing paper, and a fully-automatic high rack warehouse including dispatch area. The high rack warehouse will provide up to 16,000 storage bays. To intensify the company's R&D, a pilot coater will be installed.

After approval of the project by the Supervisory Board on December 6, Koehler Paper Group will start the process right away. The work is scheduled for completion by the end of 2014.

"After focusing in recent years on investments at our mills in Kehl, Greiz, and Weisenbach, in the coming years this investment will allow us to produce 160,000 metric tpy of specialty paper in Oberkirch with greater efficiency. This highlights our confidence that, in Oberkirch, we will be able to manufacture our decor paper, fine and technical paper, and carbonless paper in the long term, profitably and competitively. This will be the greatest single investment at the Oberkirch mill in 30 years," Kai Furler, CEO of the Koehler Paper Group, said.

Koehler Paper Group is a family owned company with a 200-year history, employing 1,800 people at its Oberkirch, Kehl, and Weisenbach mills in the state of Baden-Württemberg and at Greiz in the state of Thuringia. It produces a total of 500,000 metric tpy of thermal paper, carbonless paper, fine paper, technical paper, colored recycling paper, decor paper, and wood pulp board. Total 2011 turnover will be approximately EUR 700 million.

Södra, Sweden, reports that its executive committee has set an appropriation limit that will permit a number of offensive investments in 2012. Group President Leif Brodén, noted that "in addition to earlier decisions concerning our participation in the development of wind power in 2012, we have now decided on an appropriation limit of SEK 1,895 million.

"This will permit a number of offensive investments to be made. We intend to continue investing in product improvements, but first and foremost we now perceive opportunities for further investments in bioenergy. We are taking into account an investment in Lignoboost at Södra Cell Mörrum that will involve a potential investment in new biomaterials in the future, as well as make the mill fossil fuel-free. We envision an investment in a new lime kiln at Värö, and even more pellet production capacity. It is important for us to make the most of the business opportunities available to us in bioenergy when our traditional products are finding things considerably more difficult."

The company adds that its budget also allows for another investment in textile (dissolving) pulp. Its plan is to convert another pulp line to the production of textile pulp.

"Hopefully we will have time to identify which of our lines is most suitable prior to the fourth quarter of 2012. Textile pulp offers major benefits in terms of quality, sustainability, and ecology, and we believe we will see good growth in years to come. Production of textile pulp will be commencing at Södra Cell Mörrum this month."

The company's forecast results for 2011 indicate an operating profit of almost SEK 1 billion and a return of 10% on capital employed. "We are seeing a similar result level in our budget for 2012, with uncertain environmental factors," Brodén concluded.

Temple-Inland Inc., Austin, Texas, USA, announced that at a special meeting on December 7, stockholders approved a merger agreement with International Paper Co., Memphis, Tenn., with 86,908,118 shares of Temple-Inland common stock voting in favor of the merger, representing more than 98% of the shares voted. All other matters submitted to a vote of the stockholders were also approved.

Completion of the merger is subject to other customary closing conditions, including the receipt of regulatory approval.

Temple-Inland is a producer of corrugated packaging and building products. The fully integrated corrugated packaging operation consists of seven mills and 57 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial, and repair and remodeling markets.

UPM, Helsinki, Finland, reports that it will permanently shutdown PM 3 at its Ettringen paper mill in Bavaria, Germany, on December 14, because the mill has become uncompetitive. In addition, overlapping operations are being restructured in the supply chain, paper sales, and functions at the Ettringen mill, Plattling mill (Bavaria), and Hürth mill (Cologne, Germany).

The Ettringen paper mill, founded in 1897, produces uncoated magazine papers and newsprint, and employs 530 people. Its three production lines have a combined capacity of 600,000 metric tpy. The Hürth mill, which employs some 100 people, produces newsprint from 100% recycled fiber. Founded in 2002, it has a production capacity of 310,000 metric tpy. Founded in 1982, the Plattling mill, which employs 460 people, produces coated and uncoated magazine papers. Its three production lines have a combined capacity of 780,000 metric tpy.

The goal of the changes, the company says, is to improve the profitability and cost-efficiency of its paper business in Europe and to adapt the company's paper production to the needs of its global customer base. The restructuring measures will affect 54 people at Ettringen, 17 people at Plattling, and 7 people at Hürth. Personnel reductions will begin in January.

"The restructuring measures are extremely unfortunate for the affected employees. However, it's important to face the realities and to look ahead. UPM will support the affected employees in finding a new job," said Jyrki Ovaska, president, Paper Business Group.

CEPI (Confederation of European Paper Industries), Brussels, Belgium, reports that the European paper-based packaging industry has agreed on a European-wide self-commitment to phase out the use of printing inks based on mineral oils for printing paper and board packaging, and mineral oil-based process chemicals for food contact paper and board packaging material.

CEPI points out that recent studies on mineral oils found in foodstuffs have raised concerns about consumer safety. According to these studies, it notes, traces of mineral oils migrate to food from inks found on the printed surface of packaging and in recycled packaging papers. Although no toxicological studies on the effects of human exposure to mineral oil traces currently exist, the paper-based packaging industry takes this matter very seriously and is proactively working to address any concerns, CEPI emphasizes.

Despite the absence of clear scientific and regulatory guidance, the industry has already made significant progress towards reducing the levels of mineral oils contained in its processes and products. In some cases a reduction of up to 90% in mineral oil levels has been observed over the last 24 months, CEPI says.

Additional information is available online.

Graphic Packaging Holding Co., Marietta, Ga., USA, has combined its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft (DNK) and Mid-America Packaging (MAP), both wholly owned subsidiaries of Capital Five Investments (CVI).

Highlights of the transaction include:

  • Combination creates North America's only vertically integrated multi-wall bag business
  • Graphic Packaging owns 87% of combined business and will consolidate its results
  • Newly added companies recorded trailing annual revenues of approximately $150 million
  • Transaction does not impact Graphic Packaging's net leverage ratio
  • Combination expected to yield $20 - $25 million in synergy opportunities and be accretive to earnings per share by 2013.

"We are excited about combining our multi-wall bag and specialty plastics packaging assets with those of Delta Natural Kraft and Mid-America Packaging," said David Scheible, Graphic Packaging's president and CEO. "The combined entity further strengthens our position as a provider of these products, while vertically integrating our converting assets with the kraft paper production capacity of Delta Natural Kraft. The combination will allow us to better serve our customers through the expanded operations, yield numerous synergy opportunities, and position us well for a rebound of the end markets served by these products. We are also pleased to have Mark Van Dame, CEO of Delta Natural Kraft and Mid-America Packaging, and his leadership team join the Graphic Packaging family."

Under the terms of the transaction, Graphic Packaging formed a new limited liability company and contributed the assets of its multi-wall bag and specialty plastics packaging businesses, while CVI contributed its ownership interests in DNK and MAP to the newly formed company. Neither party received cash consideration as part of the transaction. However, the new company assumed approximately $25 million in third party debt of DNK and MAP. Concurrent with the transaction, a majority of this assumed debt was repaid with the proceeds of an intercompany loan from Graphic Packaging. After the combination, Graphic Packaging owns approximately 87% of the new company and will consolidate its results of operations.

The DNK and MAP businesses had annual revenues of approximately $150 million and the combination does not impact Graphic Packaging's net leverage ratio. The remaining 13% of the new company is owned by CVI. The transaction was structured as a tax-free combination and will allow for tax efficient distribution of profits to the owners of the newly created entity.

The Holmen Group, Sweden, which includes Iggesund Paperboard, has been awarded the prize for Best Swedish Sustainability Reporting for its report of the 2010 financial year. Holmen won the prize in the "large enterprise" category. The Holmen Group has issued separate sustainability reports since the early 1990s. With the 2010 report, the Group for the first time integrated the sustainability report into the annual report and subjected it to external audit

"The international trend is that more and more companies are moving from having extensive and detailed sustainability reports to having integrated ones," comments Åse Bäckström, who chairs the Swedish accounting industry association FAR's working group for sustainable development. "Holmen has done so without losing its educational approach to key goals, strategies, and results."

FAR is the Swedish institute for authorized public accountants, approved public accountants, authorized consulting accountants, tax consultants, advisers, and other specialists, such as in sustainability accounting, and has almost 7,000 corporate members in Sweden.

"We can see a clear trend that the longer a company has been doing sustainability accounting, the better and more forward looking it is," Bäckström adds.

According to the jury awarding of the prize to Holmen and Iggesund, "Holmen has succeeded with its transition from having an extensive sustainability report to having a more focused one within its annual report. We regard Holmen's sustainability report for 2010 as an excellent first step toward integrated accounting."

RockTenn, Norcross, Ga., USA, reports that, as part of its fiber quality initiative, recovered fiber grade specification standards have been implemented throughout the company's mill supply system.

"By formalizing our recovered fiber standards, we are able to better communicate to our suppliers and the market which materials we will accept at each of our mills. This will help us to streamline our receiving practices while monitoring the quality of our fiber supply," said Linda Leone, VP of Fiber Mill Supply.

The recovered fiber mill specification sheets are located by facility on RockTenn's website

SCA, Sweden, reports that it will invest a total of SEK 540 million to strengthen kraftliner production in Munksund, Piteå, Sweden. The intention is to upgrade the mill's paper machine and refurbish its soda-recovery boiler,

The main aim of the investment is to increase production of the share of value-added products, such as white-top kraftliner, which, for example, is used for packaging of consumer goods with high-quality print.

As a result of the investment, Munksund will be able to increase its total annual kraftliner capacity to 415,000 metric tpy, from the current level of 360,000 metric tpy. The bulk of the investment, SEK 400 million, will be used to upgrade the paper machine. The remaining SEK 140 million will finance the replacement of the pressure vessel in the soda-recovery boiler, which will enhance heat recovery and enable increased future output.

The upgraded equipment is expected to be fully operational during 2013.

"The investment facilitates increased production of white-top kraftliner, a strong specialty paper for the corrugated board industry that is experiencing a high growth rate. The investment is in line with the company's strategy, which is to increase production and sales of products and services with a higher degree of refinement that adds value for our customers," says Jan Johansson, SCA's president and CEO.

Published Pricing
BASF, Germany, reports that, effective immediately or as contracts allow, it is raising kaolin clay prices globally for paper applications. The price hike depends on the product, with increases up to 7% for hydrous and calcined clay products. The company's energy surcharge policy remains unchanged with the threshold at $5/million btu.

Södra Cell, Sweden, this week appointed Marcus Hellberg the new business area manager for Tissue & Board, effective immediately. Hellberg, who has an M.A. in Business Economics from the University of Växjö, Sweden, began his career at Unilever in the consumer goods business before gaining experience both in dental care and the golf industry, the latter as exports manager for Galvin Green. He has been with Södra for four years, first as Investment Project Coordinator, then Team Leader for Operative Procurement, and most recently Procurement Manager, Transport.

"This is a whole new area for me but I'm hoping my experience in procurement and consumer goods will prove useful," Hellberg said. "I have only been in this position for a couple of weeks but know Södra Cell has a great story to tell here. I'm looking forward to working with tissue and with our customers."

Hellberg is based at the company's head office in Växjö and reports to Ulf Edman, president of Södra Cell International. He replaces Dick Carlsson who has left the company.

The Confederation of European Paper Industries (CEPI), Brussels, Belgium, has named Jussi Pesonen, president and CEO of UPM-Kymmene Corp. of Finland since January 2004, its next chairman. Pesonen will begin his chairmanship on January 1. Barry Wiersum, current CEPI chairman, will take the position of vice-chairman for the next two years to help assure a smooth transition.

Pesonen noted that "the forest fiber industry is the leading producer of bioenergy and renewable wood-based bioproducts in Europe. European consumers are most definitely interested in seeing positive progress in substituting oil-based products with renewable and recyclable bioproducts. Therefore, European policy makers should ensure a competitive operating environment for this industry."

Pesonen added that "we need the continued carbon-leakage status for 2015 - 2020 to remain competitive. Also, the EU Renewable Energy Policy, by subsidizing biomass for energy use, threatens the supply of essential raw materials for our industry. At a regional level, the sulfur directive of marine fuels increases transport costs in Northern Europe to uncompetitive levels."


An Invitation to Present has been announced for TAPPI's 2012 International Bioenergy and Bioproducts Conference (IBBC), October 14-17, 2012 in Savannah, Georgia.

IBBC will focus on technical advancements and commercialization of bioconversion technologies that leverage the forest products manufacturing infrastructure and will include technical presentations, expert panels, case studies, and reports from projects that address:

Feedstock and harvesting improvements to increase yield and quality of biomass

  • Bioelectricity using combined heat and power (CHP)
  • Bioconversion technologies for wood and biomass
  • Production of chemicals and transportation fuels from wood and biomass
  • Policies and incentives for bioconversion projects

Presentations are sought in the following areas:

Advances in Technology: strong technical papers with a focus on presenting new findings

  • Biomass Supply & Demand
  • Advances in Conversion Pathways
  • Biomass Harvesting & Preparation
  • Advances in Bioproducts

Commercialization Activities: case studies and updates from pilot scale, commercial, and pre-commercial operations

  • Biorefineries
  • Repurposing the Traditional Pulp and Paper Mill
  • Harvesting and Preparation
  • Technical Economic Analyses
  • Commercial Collaborations for Enabling Technologies
  • Project Deployment Issues

Impacts of Policies and Incentives: analysis of existing or proposed bioconversion policies at State, Provincial or Federal levels

  • Public policy proposals
  • Pulp/paper incentives that support bioconversion progress
  • Assessing common ground between pulp/paper and agricultural bioconversion policies

Limited space is available for poster presentations.

Abstract Submission Information: Authors interesting in presenting a paper should upload their abstract to the TAPPI's Speaker Management System .

Abstract Requirements: Abstracts should be no more than 200 words.

Submission Deadline: March 9, 2012

Presentations Deadline: September 17, 2012

Authors will be notified of acceptance by April 20, 2012.


Matthew Kanneberg, Division Safety Manager, Containerboard Mills with RockTenn is TAPPI's newest member. He visited TAPPI's headquarters to discuss not only how TAPPI can support RockTenn's efforts but to explore partnering opportunities between the Pulp and Paper Safety Association (PPSA) and TAPPI.

Matthew commented "I've been around the industry all of my life – with a Dad who worked a 43 career in the industry primarily with former Willamette, to my first industry job at 18 at a corrugated medium mill, to now helping develop new cooperative projects between PPSA and TAPPI. I am excited to get more active in and collaborate with TAPPI on key safety initiatives that will truly help our industry!" Welcome to TAPPI Matthew!

To learn more about the Pulp & Paper Safety Association.


2012 Student Summit Goes Global

The 2012 TAPPI/PIMA Student Summit will be held this year in Jacksonville, Florida; with tours of Rayonier and Rock-Tenn mills at Fernandina Beach. This year's Summit is shaping up to be one of the best yet with approximately 150 students and 25 industry participants. Students are coming to the Summit from as far away as India, France, and Canada as well as our domestic students from the frozen North: Washington, Minnesota, Michigan, and Maine.

There will be over one dozen companies onsite to perform interviews for full time and co-op positions. Sessions will include, "Hey there's paper in my electronics", "the Future of Fiber", and "Dissolving Pulp". Thank you to the following sponsors: Ashland Hercules Water Technologies, BASF, Boise Paper, Buckman, Chemstone, Domtar, First Quality Enterprises, Georgia-Pacific, International Paper, KapStone, Kruger, MWV, Nalco, OMNOVA Solutions Foundation, Orchids Paper, Rayonier, Rock-Tenn, Weyerhaeuser, and the many TAPPI members who support the TAPPI Foundation with their annual gifts.


"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 is now available on TAPPI's website .


The 2012 TAPPI PEERS Conference, October 14-17 in Savannah, Georgia, has announced the Call for Papers. PEERS is the perfect forum for paper industry professionals both to acquire practical operating insights and to network with industry peers in technical sessions, tutorials, round tables, new technology sessions and workshops.

Topics suggested for the 2012 technical program are as follows:

  • Fiber and Pulping
  • Mill Operations and Engineering
  • Steam and Power
  • Recycling
  • Environmental Management and Regulation
  • Sustainability

Abstracts on other topics are welcome.

Learn more.

Authors interested in presenting a paper should upload their extended abstract to TAPPI's Speaker Management System by March 9, 2012.

Authors will be notified of acceptance by April 20, 2012 and must provide a full text manuscript by July 20, 2012.

For more information please contact Craig McKinney, TAPPI Program Manager at +1.770.209.7294


Coming to you in the Mail Soon!

The 2012 TAPPI Catalog will be mailed to you with your copy of the January/February issue of Paper360. The catalog will be available for viewing online shortly.


The MICA Corporation and the Siegel Family have endowed the Daniel Siegel Scholarship Fund. The fund will assist deserving youth in pursuit of a career in the field of packaging. This gift will be a testament to Daniel Siegel's interest in TAPPI and higher education for all.

The Daniel Siegel Scholarship Fund comes at a crucial time in American Manufacturing. "A chronic shortage of engineering students threatens America's role as the world's leading innovator and continues to impede our nation's fragile economic recovery," wrote Paul Otellini, a member of the President's Council on Jobs and Competitiveness, in a recent opinion piece for The Washington Post. This shortage of engineers is even more acute in the manufacturing sector and threatens America's ability to retain its innovation edge.

This fund will help to encourage promising students to continue their studies and become the next great innovators for the packaging industry. On behalf of the Board of Directors and the staff here at TAPPI and all the young people who will benefit from your generosity; we thank you for this important gift.


Learn the Critical Leadership & Management Skills To Take Your Job to that Next Level

Foundations of Leadership Excellence is a course focused on the fundamentals of leadership & management skills for emerging leaders, high-potentials, and area operating managers and other technical professionals. This course will be held March 28-31, 2012 at the University of Memphis campus, in Memphis, Tennessee, and is being co-produced by TAPPI and the University of Memphis.

This course is the ONLY leadership & management course available that is focused on the Pulp & Paper industry.

  • The course instructors have approximately 100 years of combined experience in leadership, management and human resource roles within the pulp & paper industry.
  • Course curriculum covers industry specific, real-world scenarios.

Participants will develop personal leadership skills through the use of influence. They will learn to impact organizations from a 360 degree perspective and how to address the challenges of team building, accountability, performance management and other critical factors of organizational success.

View the course website to learn more.


Gulf Coast TAPPI February 2012 Meeting

  • Dates: Technical Sessions 2/23/12; Mill Tour 2/24/12
  • Location: Technical Sessions - South Birmingham, AL area (possibly Marriott on Grandview Parkway, just off 459 & 280)
  • Mill Tour: Resolute Forest Products - Coosa Pines, AL
  • Subjects: Lime Kiln & Recausticizing Operations & Maintenance

The program's primary focus will be on recent projects in these areas to improve efficiency, productivity & up-time.

Planned Presentations

  • Lime Kiln Dust Collection System Retrofit at Coosa Pines - Mill staff will present and discuss recently completed dust collector project which directly addressed off gas system build-up problems and reduced downtime required to clean out the system. The plan is to tour the kiln area and view the new system in operation

There will be one or two additional presentations focusing on similar lime kiln dust collection system projects and the benefits gained.

  • Kiln Maintenance Issues - one to two presentations on general PM for kilns and comparisons regarding hot vs. cold alignment procedures for rotary kilns.
  • There will be several presentations focused on similar type projects/subjects in the recausticizing area.

For questions about this program, please contact: Glenn Hanson at (404) 432-4498 or Glenn.Hanson@metso.com

Xerium Technologies, Inc.