Voith Paper

Over the Wire


Tesa Tape, Inc.
Weekly Spotlight
Fortress Paper Ltd., Vancouver, B.C., Canada, through its wholly owned subsidiary, Fortress Global Cellulose Ltd. ( Fortress Global), this week signed an asset purchase agreement (APA) with 9109-3294 Quebec Inc., a wholly owned subsidiary of the Quebec Ministere du Developpement economique, de l'Innovation et de l'Exportation (9109), and Domtar Inc., Montreal, Que., Canada. Global will acquire the buildings, equipment, and other ancillary property relating to the non-operating pulp mill located at Lebel-sur-Quevillon, Quebec (LSQ Mill) and 9109 will acquire the lands relating thereto.

In connection with the acquisition, Fortress Global intends to enter into arrangements with 9109 allowing Fortress Global to have full and unconditional ownership and access rights to the LSQ Mill assets. Fortress Global intends to convert the LSQ Mill into a low cost dissolving pulp operation. Concurrently, Fortress Global will acquire a 30 MW non-operating cogeneration facility at the LSQ Mill that it intends to restart, resulting in material net energy savings (income). An additional cogeneration project will provide up to 50 MW of total power for which the company is seeking a long-term power supply agreement with Hydro Quebec.

Upon completion of the acquisition of the LSQ Mill, the corporation intends to invest estimated capital expenditures of approximately $222 million to convert the non-operating northern bleached softwood kraft pulp mill into a low cost, high quality dissolving pulp mill and to increase the capacity of the cogeneration facility. In connection with the proposed capital expenditures, Fortress Paper has arranged certain financing initiatives to fund the conversion and cogeneration projects.

The LSQ Mill is planned to have an annual production capacity of approximately 236,000 a.d. metric tons (ADMT) and is expected to be completed in late 2013. The LSQ Mill would significantly increase Fortress Paper's annual dissolving pulp production capacity to more than 437,000 ADMT, initially targeting viscose fiber (rayon) products.

Chad Wasilenkoff, CEO of Fortress Paper, noted that "the acquisition of the LSQ Mill and its planned conversion into a dissolving pulp operation represents an important milestone towards Fortress Paper becoming a leader in the global dissolving pulp industry. This project demonstrates the insight and perseverance of the Quebec Government and Fortress Paper in developing a unique opportunity that has been latent for several years, but when completed will revitalize the community of Lebel-sur-Quevillon and the surrounding areas of Northern Quebec. We are very pleased to be able to partner with Investissement Quebec on this project to build from our recent successful conversion of the Fortress Specialty Cellulose Mill, and also look forward to working closely with the city of Lebel-sur-Quevillon."

According to terms of the APA, at closing Fortress Global will pay a nominal cash amount and agree to contribute pursuant to a trust agreement in escalating tranches over the next five years an aggregate of $7.5 million and an additional contingent amount of $2.5 million only in the event of a permanent closing of the LSQ Mill in respect of environmental remediation costs.

The closing of the APA is subject to various conditions, including (1) Fortress Global entering into a collective agreement with the unionized employees of the LSQ Mill, (2i) Fortress Global entering into a loan agreement with Investissement Quebec securing financing to implement its proposed business plan at the LSQ Mill, (3) the parties to the APA entering into a trust agreement, (4) Fortress Global and 9109 entering into satisfactory lease and other ownership and access agreements, (5) Fortress Global finalizing satisfactory fiber supply arrangements with the Quebec Government, (6) an order in council by the Quebec Government authorizing the transaction, and (7) Domtar completing its agreement with the City of Lebel-sur-Quevillon in respect of certain property taxes. The closing of the APA is expected to occur within 75 days.

The cost structure of the LSQ Mill will be materially impacted by the ability of Fortress Global to upgrade the cogeneration facility and to service the facility through a long-term power supply agreement with Hydro Quebec on satisfactory terms. In addition, Fortress Global is negotiating with the City of Lebel-sur-Quevillon for a mutually beneficial, long-term municipal tax arrangement in respect of the capital expenditure program at the LSQ Mill, which will assist in revitalizing the Northern Quebec region. Training and relocation grants discussions are ongoing with various government agencies, although no formal commitments have been provided at this time.

Investissement Quebec (IQ) has committed, by way of an agreement in principle, to grant Fortress Global a loan in the amount of up to $132.4 million comprised of two tranches to support Fortress Paper's proposed business plan in respect of the LSQ Mill. The loan will be secured by the capital assets of Fortress Global and will accrue interest at a fixed rate of 5.0% per annum for the first five years, followed by a rate not to exceed 5.5% per annum for the remaining five years, and will include an equity compensation in the form of 715,000 share purchase warrants of Fortress Paper on terms to be determined. The first tranche of $102.4 million will have a term of 10 years and the second tranche of $30 million will have a term of three years. The loan is subject to completion of definitive documentation. As no definitive agreement has been entered into with respect to the IQ financing, there can be no assurance at this time that such financing will be completed on terms acceptable to Fortress Global or at all.

Fortress Paper has also signed a subscription agreement with a Quebec financial institution providing for the subscription of an unsecured convertible debenture of Fortress Paper in the aggregate principal amount of $25 million maturing in five years with an interest rate of 7% per annum. The Quebec financial institution will have the option to convert its debenture, in whole or in part, into common shares of Fortress Paper at any time after closing of the APA at a conversion price equal to the volume weighted average price of the common shares of the corporation on the Toronto Stock Exchange for the five trading days immediately preceding the closing of the APA plus a premium equal to 50% of such trading price.

Catalyst Paper Corp., Richmond, B.C., Canada, reported this week that it has decided to file for creditor protection under the Companies' Creditors Arrangement Act (CCAA) of Canada. The terms and conditions of a restructuring plan have not yet been determined by the company.

Operations of the company and its subsidiaries will continue as usual and obligations to employees and suppliers during the restructuring process are expected to be met in the ordinary course, Catalyst noted, adding that its management will remain responsible for day-to-day operations of the company. The company expects that the Interim Order from the Supreme Court of British Columbia will provide that, while the company and its subsidiaries are under CCAA protection, all proceedings on the part of its creditors will be stayed.

The company previously had announced a consensual recapitalization transaction under the Canada Business Corporations Act (CBCA) that had support of certain of the holders of the company's 11% senior secured notes due 2016 and 7 3/8% senior notes due 2014 who were parties to a Restructuring and Support Agreement. The Agreement provided that, among other conditions, the recapitalization transaction was subject to the following two conditions being met by Jan. 31, 2012: (a) a new labor agreement ratified by all six union locals at the company's British Columbia mills and (b) two-thirds support of all 2014 and 2016 note holders. Since these conditions will not be met, the company will not be proceeding with a recapitalization under the CBCA.

"Our debt restructuring objective remains clear and unchanged though our path forward was altered by recent setbacks," said Catalyst President and CEO Kevin J. Clarke. "Without the new labor agreement, and without two-thirds support of 2014 note holders, the economics of the previously announced consensual restructuring transaction was undermined. After reviewing this matter carefully with our board of directors and advisors, we have elected to begin the CCAA proceeding," he said. "The board, management, and our advisors believe this approach will best facilitate the completion of a recapitalization transaction that delivers the improvements to our liquidity and capital structure necessary to put our company on firm financial and competitive footing in the current business and economic environment."

Catalyst produces specialty printing papers, newsprint, and pulp. The company operates four mills in British Columbia and Arizona, with a combined annual production capacity of 1.9 million metric tons.

Below is the latest listing of job openings in the TAPPI Career Center. The current listing includes a variety of technical specialist and paper mill operations positions, as well as sales representative openings and engineers. Current, specific job openings at companies and locations in the TAPPI Career Center include:

Employer Title Location
RockTenn Safety Manager West Point, Va., Mill
Filcon America Technical Sales Rep Southeastern USA
Metso Product Mgr, PM Clothing
GL&V USA Field Service Rep, Pulping Southwestern U.S.
Confidential Steam Chief - Alberta Newsprint Whitecourt, AB
Lydall Filtration/Separation Development Engineer Rochester, N.H.
Rayonier Area Manager, Pulp Machine Fernandina Beach, Fla.
Global Paper Industry Supplier Product Mgr - Chemical Pulping Cincinnati, Oh.
Global Paper Industry Supplier (Senior) Application Engineer Cincinnati, Oh.
Glatfelter Enterprise Mfg Applications Mgr Spring Grove, Pa./Chillicothe, Oh.
Cognex Paper Industry Sales Engineer Near Major U.S. Airport
Confidential Chemical Sales/Support Southeast U.S.
Confidential Specialty Chemical Sales Agent Western Canada
Burrows Paper Corp. Operations Specialist III Pickens, Miss.
Burrows Paper Corp. Quality Manager Lyonsdale/Pickens, Miss.

More information about these jobs is available online.

Eka Chemicals
Tesa Tape, Inc.
Market Roundup
Reduced activities in the housing construction sector in China decreased that country's importation of softwood logs and lumber in late 2011, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. Despite a decline in the fourth quarter, total imports during 2011 reached a record high, making China the largest importer of logs and lumber in the world.

Importation of softwood logs and lumber to China has increased continuously over the past 15 years, and in 2011 the country was the largest importer of softwood lumber and logs in the world, WRQ notes. Total import value equaled almost $8 billion last year, which was an increase of 57% from 2010, and up from only $70 million 15 years ago. Annual growth during the past five years has been almost 30%, and during the past 15 years, the CAGR has been as high as 36%.

Imports of softwood lumber have increased faster than imports of softwood logs in the past few years, but log imports still constitute a higher share of the total import value of softwood products. After having increased for seven consecutive quarters, the importation of softwood logs and lumber fell for the first time in the fourth quarter last year because of reduced domestic demand and high inventories at many of the country's ports. The decline was 14% from the third quarter, but the total import value was still higher than the fourth quarter of 2010.

By volume, importation of softwood log and softwood lumber to China fell 10% in the fourth quarter compared with the previous quarter. Importation of logs and lumber from Russia decreased the most, while lumber from New Zealand and logs from Canada actually increased slightly during the fourth quarter.

Much of the increased import demand for softwood raw-material has been, and continues to be, driven by the fast expansion in the house construction sector combined with the fact the China lacks domestic forest resources to meet the growing demand for most forest products.

A tightening monetary policy with a restricted money supply resulted in reduced activities in the construction sector in the second half of 2011. It has also been reported that there were overstocked inventories of real estate (more than 20 months of unsold inventory in Beijing and Shanghai), and that housing transaction volumes in many big cities fell by more than 50% in the fourth quarter. Societe Generale reported that housing starts were down 25% in December compared with the same month in 2010.

The housing market in China likely will continue facing headwinds during the first half of 2012 unless the Chinese government steps in to ease the country's monetary policy. As a consequence, the prospects for log and lumber imports will be faced with uncertainty short-term, but will propbably continue to trend upward long-term.

More information is available online.

North American softwood pulp markets remain weak, but hardwood appears to have bottomed, reports Mark Wilde, senior analyst with Deutsche Bank. December data released by PPPC were better-than-expected, he adds. Hardwood inventories fell eight days of supply to 33 days, largely driven by a big jump in shipments to China. In contrast, softwood inventories rose one day to 36 days of supply. January U.S. NBSK (northern bleached softwood kraft) prices fell $20/metric ton to $870/metric ton. Spot prices at $600 - $650/metric ton remain well below list price levels.

"We think spot prices are at/below mill cash-cost for higher-cost producers. This is apt to be among issues behind the continued idling of the 350,000 metric tpy Terrace Bay, Ont,, Canada, mill. In the hardwood grades, producers are attempting to raise offshore prices for some grades. In the softwood grades, while no producer has announced February price levels, we think the risk is skewed to the downside. The fluff pulp market is also weak with prices down ˜$35/metric ton m/m in January," Wilde says.

The demand for coated groundwood is weak and prices are falling, Wilde continues. Estimated prices on No. 5, 40-lb offset rolls fell $15/ton to $860 - $900/ton in January, he notes, adding that in December, prices fell ˜$30/ton. According to PPPC, December ship's were down 10.2% y/y (2011 -7.6% y/y). Mills operated at 89% capacity in December (2011 = 90%). Citing "demand headwinds" and rising inputs, Verso recently shutdown PM 2 at its Bucksport, Me., mill (90,000 tpy). Other producers have announced supply moves – UPM in Europe and Newpage in North America, according to Wilde.

Estimated coated free sheet (CFS) prices (No. 3 60-lb rolls) fell $10/ton to $985 - $1,005/ton in January, Wilde also reports. In December, he says, prices fell ˜$15/ton. According to PPPC, December shipments were essentially flat, +0.5% y/y. "This is better than the 2011 decline of 4.1% y/y. December operating rate = 85% (2011 = 91%). We continue to watch NewPage closely in the wake of its bankruptcy filing," Wilde points out.

Pulp & Paper
Fushun Mining Group, China, has successfully started up a new Andritz (Graz, Austria) PrimeLine tissue machine. With the startup, Fushun Mining Group, active in China's mining and oil shale processing sectors, has now embarked on the production of sanitary papers.

The components for this machine were manufactured at Andritz production facilities in Europe and China. The order, awarded to Andritz Pulp & Paper in May 2010, includes the complete stock preparation system, a two-layer headbox with dilution water control, an 18-ft cast yankee dryer, a web stabilizing unit, wet dust removal system, and the automation system. The PrimeLine TM W8 tissue machine has a design speed of 2,000 m/min at a width of 5.6 m and utilizes 100% market pulp as the furnish.

International Paper Co., Memphis, Tenn., USDA, and Temple-Inland Inc., Austin, Texas, have agreed to extend the U.S. Department of Justice's (DOJ) review period with respect to IP's acquisition of T-I until February 13. The extension will provide all parties time to enter into binding documentation to resolve the DOJ's concerns with respect to the pending transaction.

IP Chairman and CEO John Faraci said that "we have been working constructively with the DOJ to address their concerns and anticipate entering into a definitive agreement on terms that are acceptable to all parties. The acquisition of Temple-Inland is a compelling value proposition for International Paper shareholders, and will create numerous benefits for our customers and employees."

IP has manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. IP employs about 59,500 people in more than 24 countries and serves customers worldwide. Its 2010 net sales were more than $25 billion.

T-I is focused on corrugated packaging and building products. The full-integrated corrugated packaging operation consists of seven mills and 59 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial, and repair and remodeling markets.

KapStone Kraft Paper Corp., North Charleston, S.C., USA, has ordered from PMT, Italy, a new secondary headbox for its PM 1. The scope of the rebuild, planned for a spring startup this year, is to replace the existing 6.2-m secondary headbox with a new PMT M3 design. PMT will also provide startup and commissioning services fro the rebuild project.

Allimand, France, has ordered from Metso, Finland, an extensive automation package for a paper machine it will install at the new Miquel y Costas' mill in la Pobla de Claramunt, Spain. Allimand is a paper machine manufacturer that designs and builds completes turnkey machines of 4- to 8-m wide and also supplies rebuilds to existing paper machines.

The new production line, which is the latest generation, will allow Miquel y Costas to expand its range of papers and develop new products.

The delivery will include a Metso DNA automation system for machine, process, and drive controls, Metso Process and Quality Vision for web inspection and web break analysis, and a Metso IQ quality control system including MD and CD quality controls with Metso IQ Moisturizer. Commissioning is scheduled for the last four-month period of 2012. Incorporated in 1929, Miquel y Costas consists of 13 companies, all centered on the paper industry and covering everything from marketing to services.

Neenah Paper, Alpharetta, Ga., USA, on Tuesday of this week (January 31) purchased the branded premium paper portion of Wausau's Fine Paper division. The transaction includes the following:
  • Premium fine paper brands Astrobrights®, Astroparche®, Royal Linen®, Royal Fiber®, Royal Laid®, Royal Complements®, Royal Cotton®, Royal Marble®, Royal Metallics®, Royal Resource®, Wausau Bright White and Creative Collection™.
  • Exclusive license rights for a portion of Exact® brand specialty business, including Exact Brights, Exact Coated, Exact Digital, Exact Index, Exact Tag, and Exact Vellum Bristol.

"The acquisition of Wausau brands strengthens the breadth of our existing Fine Paper business with added scale in the marketplace, prospects for growth in new channels such as retail, and the opportunity to provide our customers with better service," said Julie Schertell, president, Neenah Fine Paper.

Schertell added that Astrobrights "is the market leading brand in the bright, vivid color segment of our market. We are excited to add this strong brand to our portfolio, as well as the complimentary textures in the Royal brand family. I'm very pleased with our customers' responses following our initial announcement, as well as the support we have received from the Wausau organization throughout the initial transition phase. As of today, we are taking orders on our new brands and we're well-positioned for a smooth transition with our customers."

Neenah's primary focus in the coming months will continue to be the integration effort.

Sappi Fine Paper North America, Boston, Mass., USA, this week launched its 2011 Sustainability Report, its first ever regional report focusing on environmental and social responsibility performance. The report illustrates how sustainability is fundamental to Sappi's business strategy and future success, underscoring its commitment to corporate transparency.

Among its most recent initiatives, Sappi has extended its participation in a pilot project in Maine with the Sustainable Forestry Initiative (SFI). It has also become a member of the Forest Stewardship Council FSC) to support sustainable forestry through chain of custody certification.

The report highlights the company's performance against its current five-year goals and outlines new five-year goals that measure Sappi's impact on the environment, its social responsibility to employees, customers, and constituents in the communities in which it operates, and its prosperity as a business. These goals were designed by Sappi to establish best practices across the company and produce results in key areas of public concern and operational impact.

"Four years ago, we laid out an ambitious set of sustainability goals and implemented a corporate governance structure and business strategy to achieve them," said Mark Gardner, president and CEO of Sappi Fine Paper North America. "Our performance over the past four years has been exceptional and I am confident that Sappi's new goals and strategy will lead to deeper improvements, enabling the continued investment in our people, assets and service."

The 2011 Sustainability Report also publishes Sappi Fine Paper North America's position and performance data on current environmental issues facing the pulp and paper industry, including sustainable forestry, energy, and greenhouse gas emissions, and the responsible use of recycled paper.

On track to meet or exceed all but one of its original 2008 - 2012 goals, Sappi has developed a new set of aggressive five-year goals for 2012 - 2016. Its new goals span the areas of planet, people, and prosperity, and consist of the following:


  • Increase the amount of fiber (both purchased and Sappi produced pulp) sourced from certified forests to 65% 
  • Reduce the amount of total energy expended in making each ton of product by 10% 
  • Reduce fiber and papermaking raw material waste by 10%.


  • Target 30,000 hr of education and training for customers through the Sappi ETC. (Education, Training and Consulting) program
  • Enhance job performance and managerial skills for all employees by offering training and education at an average rate of 75 hr per employee annually.


  • Achieve or exceed an annual 12% return on net assets for Sappi Fine Paper North America.
SCA, Stockholm, Sweden, has ordered a new tissue machine from Voith Paper, Germany, to be installed at SCA's Kostheim mill in Germany. The order includes a new tissue machine (TM 5) that will have an 18-ft-dia. yankee dryer and an UltraHood high performance drying hood, the entire electrical system, and full automation. In addition, stock preparation will include an IntensaPulper for high energy efficiency. Voith also will provide the entire engineering package and all machine clothing, Startup is set for spring of 2013.

The new machine, which involves an earlier announced investment of some EUR 120 million, will have a wire width of 5,500 mm and a production capacity of about 60,000 metric tpy of high-quality, primarily away-from-home (AFH) tissue paper at a basis weight of 20.5 gsm.Page Content

Södra Cell, Norway, reports that its mill in Mörrum, Sweden, has begun production of "textile" pulp (dissolving pulp) from hardwoods. When in full operation, the company notes, the mill's annual production of textile pulp is expected to amount to 170 000 metric tons .

Södra made a decision to invest in the production of textile pulp in December 2010. The Group is anticipating strong market development for textile pulp as it is renewable and timber-based, and it will replace oil-based and cotton fibers. Since this decision was made, implementation of the investment and development of a new market organization for the new customer segment have been taking place in parallel.

"We are focusing on textile pulp as this is a growing market to which we can supply a certified, renewable forest raw material," says Gunilla Saltin, president of Södra Cell.

"For Södra Cell Mörrum, this is an important step in the reinforcement of the profitability and competitiveness of the mill," says Magnus Olsson, site manager for Södra Cell Mörrum.

Södra's executive committee has also made a decision in principle about an appropriation limit for production of textile pulp on a further pulp line at one of the company's pulp mills. A definitive decision on a second textile pulp line at Södra will be made later this year, the company said.

UPM, Helsinki, Finland, will build a new, combined heat and power plant at its Schongau mill in Germany. The goal is to significantly reduce energy costs as well as to secure the energy supply. The gas power plant will replace the old plant facility which has operated more than 40 years. The total investment will be EUR 85 million, with startup planned by the end of 2014

The new power plant will generate process heat as well as electricity for the mill. It will also provide sustainable and energy efficient district heating for roughly 750 households and public institutions such as local school and a hospital in Schongau. The renewed energy supply at the mill will be based on the highly efficient combined heat and power technology utilizing gas as a fuel.

"The new gas power plant will improve the security and self-sufficiency of energy supply to our mill," explains Winfried Schaur, GM at the Schongau mill. "Renewal of the energy generation ensures efficient production and will safeguard the competiveness of the mill. Furthermore, it guarantees a sustainable paper production loop based on innovative and low-emission technologies."

UPM says it aims to achieve improved energy efficiency and energy savings in all of its businesses. The company favors a wide range of low-emission energy sources. During the past decade, UPM has invested more than EUR 1 billion on carbon neutral power and heat generation at its mill sites.

UPM has 23 paper mills in Finland, Germany, the U.K., France, Austria, China, and the U.S. Many of them are large recycling centers and bioenergy producers, as well as paper manufacturers. In 2011, the business group's net sales amounted to EUR 7.2 billion.

The UPM Schongau mill produces newsprint and uncoated magazine papers. Its three production lines have a combined annual capacity of 770,000 metric tons. Founded in 1887 and located in Bavaria, South Germany, the mill employs 550 people.

Billerud Finland Oy, a wholly-owned subsidiary of Billerud AB, Solna, Sweden, will acquire UPM-Kymmene's (Helsinki, Finland) packaging paper business in Pietarsaari and Tervasaari, Finland, with sales of approximately EUR 220 million (SEK 2 billion) in 2011. Billerud will pay EUR 130 million (approximately SEK 1.2 billion) for the business. The acquisition will significantly reduce Billerud's pulp exposure and strengthen its offering within packaging paper. In addition, the currency exposure is also reduced.

"We see great potential in the acquired business as it will now be integrated in a business focused on packaging paper. The acquisition will give us a strong platform to continue developing our offering within smarter packaging solutions. In addition, the acquisition significantly reduces our pulp exposure and adds a much larger euro cost base, which we view positively," says Per Lindberg,president and CEO of Billerud.

The acquisition includes one paper machine in Pietarsaari and one paper machine in Tervasaari. Both machines rank among the largest and most efficient of their kind in Europe and are assessed as well as invested and well maintained. The machines produce packaging paper (sack/kraft paper) used in a broad range of areas such as food, retail, construction, and other industries. Annual production capacity is approximately 300,000 metric tons. The business has approximately 185 employees. Other activities at the mill sites will remain owned and operated by UPM.

Annual net synergies are estimated to be approximately SEK 30 million with full financial impact from year-end 2013. Synergies are mainly obtained through increased production flexibility within the Billerud Group. One-off costs associated with the separation of the acquired business from UPM is estimated to be approximately SEK 22 million during 2012.

The acquired business achieved sales of approximately EUR 220 million (SEK 2 billion) and EBITDA of approximately EUR 18 million (SEK 165 million) in 2011 (pro forma). The acquisition is expected to be cash flow positive from day one after closing. With full effect from synergies, Billerud's earnings per share is expected to increase by approximately SEK 1.20.

Long-term agreements have been signed between the parties where UPM, among other things, will deliver production inputs such as pulp, steam, and electricity to Billerud. In the signed pulp agreement, Billerud will purchase pulp at market price. Following the transaction, Billerud will purchase an annual pulp volume corresponding to approximately 85% of Billerud's current market pulp sales volume. As a result, the acquisition will significantly reduce Billerud's exposure to pulp market and Billerud will therefore no longer report sales of market pulp separately.

The acquisition, subject to applicable regulatory clearances, will be financed by a combination of cash at hand and debt via existing credit facilities. The impact on Billerud's net debt/equity ratio is +24 percentage points. The new net/debt ratio is assessed to be well below the Group's target level, like-for-like. In case the acquisition is not completed, Billerud has agreed to pay UPM a termination fee of EUR 5 million.

RockTenn, Norcross, Ga., USA, has opened a new single-stream recycling facility in Memphis, Tenn., expanding its recycling capabilities and increasing its presence and service capabilities. The new 150,000 sq-ft facility will complement RockTenn's established Tennessee single-stream recycling plants in Chattanooga and Knoxville.

The automated, single-stream system allows designated recyclable materials to be fully commingled during collection instead of separated into different bins, a process that offers significant benefits to homes and businesses.

The opening of the Memphis plant, as the first single-stream facility in the city's metropolitan area, represents a key investment in RockTenn's Recycling and Waste Solutions growth plan. This is RockTenn's ninth single-stream system within its 39 recycling facilities. The company will continue to expand its recycling powers nationwide in the upcoming year to reinforce its commitment to provide easy recycling solutions to better serve customers worldwide.

"We are investing in new facilities across the country to support demand and provide full-service solutions through innovative technology. Our growth is focused on making recycling easy by increasing our single-stream capabilities and supporting our customers' sustainability initiatives across the country," said Mike Oswald, SVP and GM, RockTenn Recycling and Waste Solutions.

RockTenn's 39 Recycling and Waste Solutions facilities partner with venders across the U.S. to provide innovative ways to recycle items that are not main stream. The company's Recycling and Waste Solutions employees are dedicated to managing waste streams, recovering recyclables, and finding new life for old items, in addition to educating companies and communities about the importance of recycling and reducing the amount of materials that enter landfills.

RockTenn's Recycling and Waste Solutions business is one of the largest recycling operations in the world, processing more than 9 million tpy of papers, plastics, metals, and more through its 39 facilities in North America.

The Paperboard Packaging Council (PPC), Springfield, Mass., USA, reports that members are now invited to submit their best package designs to PPC's 69th annual North American Paperboard Packaging Competition (NAPPC). Administered and hosted by PPC and judged by a jury of packaging professionals, industry experts, professors, and magazine publishers, the NAPPC is for carton manufacturers involved in the concept, design, print, performance, and shelf appeal of paperboard packaging.

To be eligible for the competition, each entry must be submitted by a PPC member and converted in its facility. Unless it is a self-promotional piece, each entry must have been produced and sold by a PPC member for the first time between June 1, 2011, and May 1, 2012.

The packages must be designed to distribute, market, and protect a product and must consist of at least 50% paperboard visible to the end user (laminated grades made from E-flute, F-flute, and other small flute paperboard qualify). In addition, each entry must not have been submitted into a previous NAPPC competition.

Packaging companies can compete in the General, Eco, and Innovation categories. All entries compete for the top Paperboard Package of the Year award. Other top awards include the Rigid Box of the Year, Folding Carton of the Year, the Innovation Award (which recognizes outstanding design based on processing and structural integrity), and the Eco Award (which celebrates sustainable uses of paperboard as an original or replacement substrate). Winners will be announced at PPC's Outlook & Strategies Conference, October 17-19 in Las Vegas, Nev.

Winners also receive national recognition via publication in the competition awards program, articles in multiple trade publications, recognition on PPC's website and Facebook page, award fliers, plaques, and trophies, and other valuable promotion.

"Our annual carton competition is a great opportunity for members to exhibit the package design innovation they have been working on over the year," said PPC President Ben Markens. "It is also an occasion where our members can celebrate the sustainability, ingenuity, originality, and utilitarianism inherent to the paperboard packaging industry."

The early bird entry deadline is May 1 (and offers one free entry), while the regular entry deadline is June 1. Contest materials, including the Call for Entries Guide, the official entry form, and competition details are available online.

Saica Containerboard, U.K., reports that it's Metso (Finland)-supplied new containerboard production line, PM 11, successfully came on-stream on January 15 at Partington, near Manchester in the U.K. The record-breaking startup speed was 1,105 m/min with a basis weight of 95 gsm.

Three days later, on January 18, the first sellable paper reels were produced and tested, leaving the mill and reaching the first customers shortly afterwards.

Francisco Carilla, industrial projects director, Saica, and Federico Asensio, deputy managing director, Saica Paper, reported to be very satisfied with the Metso teams at all project stages. "In commercial proposals, design, construction, startup, and maintenance activities, the Metso teams' efforts responded to our requirements, taking into consideration our papermakers' technical advice and previous projects experiences," they said.

The new 8.2-m-wide PM 11 has an annual production capacity of approximately 400,000 metric tons of lightweight testliner and fluting grades in the basis weight range of 75 to 125 gsm, out of 100% recycled raw material. The design speed is 1,700 m/min.

Metso's delivery included a complete OptiConcept board-making line from headbox to reel with an approach flow system, pulpers, air systems, press section clothing, and a high-capacity WinDrum Pro winder. A comprehensive Metso DNA automation package included process, machine, and quality controls as well as machine condition monitoring. A Metso DNA process control system was also supplied for the mill's new heat and power station and effluent treatment plant.

Metso Mill Service will have full responsibility for the mill maintenance operations as well as for maintenance management of continuous improvement programs for the OCC stock preparation system, board production line, power stations, and wastewater treatment plant at the Partington mill.

Saica Containerboard UK is a subsidiary of SAICA, a privately owned Spanish company and a world leader in the production of corrugated containerboard from recovered paper. The company currently employs more than 8,000 people in Spain, France, Portugal, Italy, Ireland, and the U.K. SAICA has an annual turnover of EUR 1.8 billion.

Hemco Industries Inc.
New Products
Mohawk Fine Papers, Cohoes, N.Y., USA, has partnered with MOO.com to create a custom paper line for MOO's new Luxe Business Cards that launched this week. As Mohawk notes, this is the first super thick, letterpress-quality paper line created specifically for use in the on-demand, digital print space.

The MOO design team approached Mohawk last year with a challenge to create thick, luxurious paper stock that could take full advantage of MOO's HP Indigo printing capabilities and Printfinity software platform. The Mohawk team, lead by Christopher Harrold, VP of Business Development, and Gavin Gaynor, VP Research and Development, worked closely with MOO to leverage Mohawk's papermaking, technical, and digital print expertise with the qualities of Mohawk Superfine, Mohawk's premium text and cover line.

The Luxe Business Cards are twice the thickness of a standard MOO Card and three times as thick as a standard online business card. A Quadplex layering technique fuses four layers of Mohawk paper together to create a 32-point paper. The two outer, printable layers are Mohawk Superfine Eggshell. An optional seam of color, which runs through the middle of the paper stock is available in black, cyan, magenta, or white.

Previously, the technologies and design processes used to create similar cards were reserved exclusively for specialty orders at traditional lithographic print houses and specialty printers, according to Mohawk. This is the first time, it adds, that letterpress-quality paper and card stock thickness is available in the on-demand digital print space.

Naylor, LLC
Published Pricing
Papierfabrik August Koehler AG, a member of the Koehler Paper Group, Oberkirch, Germany, this past week announced that it will increase the prices for its thermal papers in North America by 5%, effective April 1. The company related the price increase to continued escalation of raw material costs.

With a turnover of EUR 640 million and sales of 482,000 tons of paper, the Koehler Group produces paper at three locations—Oberkirch, Kehl, and Greiz, Germany.

Koehler Holding GmbH & Co. KG and the management board of Papierfabrik August Koehler AG, Oberkirch, Germany, report to have established a new subsidiary of Koehler Holding GmbH & Co. KG and filed for its entry in the trade register. The company's name is Koehler Renewable Energy GmbH, and its purpose is the founding of renewable-energy companies, as well as the purchase and management of investments in other renewable-energy companies.

The Koehler Group runs an energy-intensive enterprise that has been investing in its own energy supplies for many years now. As a result, the company currently operates power plants at all of its locations, many of which have been expanded in recent years. For example, at Oberkirch there is a circulating fluidized-bed combustion power station and a cold reserve, commissioned in 2011, plus four hydroelectric power stations. At Kehl, Germany, Koehler operates a biomass combined heat and power (CHP) plant, with a second block commissioned in 2011 in a joint venture with RWE Innogy, while a new power station with highly efficient CHP generation was inaugurated at Greiz (Thüringen), Germany, in 2011, and two further hydroelectric power plants were opened at Weisenbach, Germany.

The founding of Koehler Renewable Energy GmbH represents the latest major step in this direction. The aim is to work together with business partners in project companies, investing above all in CHP generation to develop a new line of business by exploiting in-house expertise in operating this kind of plant. The company also is planning to invest in wind energy.

UPM, Helsinki, Finland, reports that it will invest in a biorefinery producing biofuels from crude tall oil in Lappeenranta, Finland. The industrial scale investment is the first of its kind globally. The biorefinery will produce some 100,000 metric tpy of advanced second generation biodiesel for transport. Construction of the biorefinery will begin in this summer at UPM's Kaukas mill site and be completed in 2014. UPM's total investment will amount to approximately EUR 150 million.

"The biofuels business has excellent growth potential. The quality of our end product and its environmental characteristics has gained significant interest among a wide range of customers, and the investment is profitable. Lappeenranta is the first step on UPM's way in becoming a significant producer of advanced second generation biofuels. This is also a focal part in the realization of our Biofore strategy," said UPM President and CEO Jussi Pesonen.

UPM 's advanced biodiesel, UPM BioVerno, is an innovation that will decrease greenhouse gas emissions of transport up to 80% in comparison with fossil fuels. The product's characteristics correspond to those of the traditional oil-based fuels and highly complement today's vehicles and fuel distribution systems.

"Our biorefinery in Lappeenranta is the first significant investment in a new and innovative production facility in Finland during the ongoing transformation of the forest industry," Pesonen noted.

Construction of the biorefinery will offer work for nearly 200 people for approximately two years. When production commences, the biorefinery will directly employ nearly 50 people and indirectly about 150 people. UPM has not applied for a public investment grant for the project.

According to UPM, the demand for biofuels is expected to grow by approximately 7% a year in the EU. The target of the EU is to increase the share of biofuels in transport fuels to 10% by the year 2020. In Finland, the corresponding target is even more challenging with an increase of 20%. The annual production of UPM's biorefinery will contribute approximately one fourth of Finland's biofuel target.

UPM's biofuels exceed the current and continuously tightening sustainability requirements set by both the EU and Finland.

The main raw material of UPM's hydrotreatment biorefinery in Lappeenranta is crude tall oil, which is a residue of chemical pulp production, mainly generated in the production of kraft pulp from softwood. A significant part of the raw material comes from UPM's own pulp mills in Finland.

The decision to construct a biorefinery in Lappeenranta does not affect UPM's other existing biorefinery plans. The company has planned to build another biorefinery either in Rauma, Finland, or in Strasbourg, France. This biorefinery would use energy wood as raw material and different technology to that of the Lappeenranta biorefinery.

UPM will assess its other biorefinery plans after the EU has decided on its investment grants. The EU is expected to decide on the NER300 grants in the second half of 2012. In addition to an investment grant, the investment decision will be significantly impacted by the long-term outlook for wood price and availability in the market.

Mercer International Inc., New York, N.Y., USA, this week reported that Ken Shields has resigned as a director of the company. Shields, who served as a director and vice-chairman of Mercer, noted that "due to demands from my other business interests, including the potential for increasing overlap between them and the company in the energy segment, I felt it was appropriate to resign at this time. I wish the company every success in the future."

Jimmy Lee, president and CEO, added that "we regretfully accepted Ken's resignation as a director and, on behalf of the whole board and myself, wish to thank him for his invaluable service and contribution to the company over the past eight years. We will miss his guidance and contribution and wish Ken all the best in all of his future endeavors."


The well-attended (2012 Hands-On Workshop for Pulp and Paper Basics) begins March 5-9 at North Carolina State University in Raleigh, NC. Reserve your place so that you can:

- Find out how different processes affect paper properties
- Perform hands-on laboratory experiments to support your understanding of the process
- Run a pilot plant paper machine
- Solidify your knowledge from close interaction with professors in small, interactive groups

Be among the first 32 people to register for this five-day workshop, and you'll gain an invaluable overview of pulping, bleaching, chemical recovery, recycling, papermaking and converting. You'll receive course notes, a CD, a polo shirt and 3.7 CEUs!

This workshop is ideal for new process engineers, manufacturing operators and technicians, sales and service personnel, machine operators, and maintenance personnel--everyone who wants a better understanding of the pulp and paper business.

This course typically fills quickly, so don't wait too long.

We look forward to seeing you in Raleigh, North Carolina next month!


Registration is now Open for the TAPPI Linerboard Medium & Corrugated Box Manufacture Course

Strengthen your understanding of the corrugating process, and linerboard and medium performance properties and manufacture with TAPPI's Linerboard Medium & Corrugated Box Manufacture Course, April 9-10, 2012 at the Holiday Inn in Neenah, Wisconsin.

With an emphasis on helping attendees improve corrugating box performance and runnability, this popular introductory- to intermediate-level course is ideal for process engineers and operators in linerboard and medium manufacturing facilities and corrugating and converting plants.

Instructors Michael J. Kocurek, Professor Emeritus, of Paper Science & Engineering at North Carolina State University and Jon Porter, Senior Trainer/ Process Specialist for Fosber America will address:

  • The Corrugated session (1/2 day) will cover how to achieve the strongest bond and highest quality combined board. You'll learn about (1) the equipment, (2) starch, (3) corrugated process technology, and (4) importance of linerboard & medium properties and runnability.
  • The Properties & Testing of Liner and Medium session (1/2 day) covers the tests, what they mean, and how the properties of the board affect the tests.
  • The Pulp and Paper Mill Operations session (1 day) will cover the technology of the pulp and papermaking processes, and how they affect the quality, properties, tests, and runnability of the liner & medium.

View the proposed course schedule.

Register by March 12 to take advantage of the Early Bird registration discount. Join TAPPI or renew your Membership for the best rates!


Registration Now Open for TAPPI Troubleshooting "Flexos" and "Die Cutters" Course

The TAPPI Troubleshooting "Flexos" and "Die Cutters" Sustain Board Caliper & Improve Printing Course is scheduled for April 10-12, 2012 in Neenah, Wisconsin. Join industry veteran Dick Target, founder of On Target Consultants, as he helps attendees identify and address downtime issues and develop a better understanding of machine calibration and how to maintain proper board caliper during the converting process.

Target will use an easy to understand format to help attendees improve the basic manufacturing process. Topics will include: methods to minimize caliper loss in the converting process; one- box set-up techniques; and waste reduction techniques. View the course schedule

Take advantage of the Early Bird Registration deadline by registering before March 13. Join TAPPI or renew your membership for the best rates!


Register Now for PaperCon 2012: April 22-25, 2012 in New Orleans

Designed by industry professionals, PaperCon brings together CEOs, mill managers, superintendents, scientists, process engineers and suppliers for the largest pulp and paper technical program in the world. No other event provides such a comprehensive program, networking opportunities and exhibit among such a distinguished group of industry leaders.

Take a moment to register and reserve your hotel room for this "must attend" event.

For 2012, PaperCon is about "Growing the Future", leveraging renewable, recyclable raw materials and developing human capital to ensure value for customers, long-term sustainability for shareholders, and a future for our peers. Located in the heart of the Southern USA pulp and papermaking region, New Orleans, PaperCon sessions will highlight today's dynamic packaging grades.

New this year:

  • Control Systems 2012: Open to PaperCon attendees, this is the first US appearance for this highly-respected bi-annual conference.
  • RPTA Production-Technical Seminar: Addresses the unique technical challenges and market dynamics of recycled paperboard manufacturing, making this a comprehensive conference for paperboard, linerboard, containerboard and packaging grade mills.
  • Sustainability Forum: A fresh look at the "Science Behind Sustainability".
  • OpEx Reliability Seminar: A two-day seminar designed for mill maintenance and reliability supervisors.
  • Coating 101 Course: An introductory level 1.5 day course covering basic science behind paper and board coating.

Additional Program Highlights include:

  • Executive Panel: Learn directly from Industry CEOs as they share their perspectives on the paper industry's outlook.
  • Largest PaperCon Exhibit Ever: Encompassing two ballrooms at the Sheraton New Orleans, 2012 is the largest exhibit in the event's history.
  • Young Professionals Program: Organized with the help of PIMA, these sessions are designed for pending paper science graduates and professionals new to the industry.

Learn more about PaperCon.


TAPPI and Stage-Gate International have reached an agreement that will allow TAPPI members to attend Stage-Gate International's new product development and innovation public seminars at reduced fees.

Stage-Gate International is the world's leading full-service provider of solutions which enable organizations to improve their Product Innovation System. Stage-Gate International co-founder, Stage-Gate creator and chemical engineer, Dr. Robert Cooper, is one of the most influential innovation thought leaders in the business world today. He pioneered the original research that led to many groundbreaking discoveries including the Stage-Gate Idea-to-Launch process.

Now implemented by almost 80% of North American companies, it is considered to be one of the most important discoveries in the field of innovation management. Stage-Gate International has assembled the world's most comprehensive research on the topic and through its seminars has helped train thousands on the Stage-Gate process. Over the last 25 years, the Stage-Gate process has proven instrumental in helping a wide variety of Pulp & Paper industry leaders win at new product development.

TAPPI members will receive 10% off the seminar cost when using our special code: TAP11

Seminars include:

  1. Feb 21-22: Developing a Product Innovation & Technology Strategy – Click here to learn more about this seminar
  2. April 17 – 18: Customizing an Idea-to-Launch Innovation process – Click here to learn more about this seminar
  3. May 15 – 16: Implementing an Idea-to-launch Innovation process – Click here to learn more about this seminar
  4. June 18 – 19: Maximizing Productivity in New Product Development – Click here to learn more about this seminar

Remember to use the code TAP11 when you register to receive your TAPPI member discount!


Walmart Announces Dates for the 2012 Annual Sustainable Packaging Expo - Every year Walmart hosts its Annual Sustainable Packaging Expo to bring together brand owners and packagers to explore new sustainable packaging solutions. The Expo is sponsored by the Walmart and Sam's Club Packaging Sustainable Value Network (SVN) and is designed to provide attendees with resources and information to learn about making product packaging more sustainable.

Walmart has tentatively scheduled this year's Expo for Monday, May 7th through Wednesday, May 9th. Based on feedback from last year's Expo, a new schedule will be adopted to allow attendees to focus on training sessions as well as touring the exhibition floor. More details will be available in the coming months.

Reorganization of Walmart Sustainable Value Networks

Walmart's Packaging Sustainable Value Network (SVN) is one of several SVN's in Walmart. Walmart has just announced that there has been a reorganization of the SVNs into two councils – the Product Council and the Operations Council – to further enhance alignment with Walmart businesses. Each Council is lead by a team of senior executives from Walmart's domestic and international businesses. The Packaging SVN will report to the Product Council, reflecting internal recognition that packaging is key aspect in products, and not strictly an operational issue. This change will hopefully bring packaging professionals closer to buyers and brand owner to make greater strides in achieving sustainability goals.

TAPPI is a member of Walmart's Packaging SVN, and TAPPI staff member Dr. Colleen Walker sits on the SVN Steering Committee and participates in their monthly conference calls.


Dr. Do lk Lee, Adjunct Professor, Western Michigan University, has been named the recipient of TAPPI's 2012 Gunnar Nicholson Gold Medal Award. The award is the highest honor that the Association can bestow upon an individual. The award will be presented to Dr. Lee at the 2012 PaperCon Conference Awards Dinner, to be held on April 24, 2012 in New Orleans.

"TAPPI is very pleased to announce Dr. Lee as the recipient of this prestigious award in recognition of his many important contributions to latex technology research, development and applications," notes Larry N. Montague, president and CEO of TAPPI. "During a long and distinguished career he has made notable contributions that have been of great benefit to the industry and advanced the knowledge, science and use of this key coating and papermaking technology. He's served the industry, TAPPI and its members with great integrity and distinction in many roles."

Dr. Lee obtained a B. S. degree in Chemical Engineering from Seoul National University in Korea and both M. S. and doctoral degrees in Chemical Engineering from Columbia University in New York City. He has been a TAPPI member since 1972.

He joined The Dow Chemical Company in 1967 and retired from Dow in 2002. Currently he is Adjunct Professor in the Department of Paper Engineering, Chemical Engineering and Imaging at Western Michigan University.

Dr. Lee has been also teaching latex technology at the annual Lehigh University and Davos (European) short courses on "Advances in Emulsion Polymerization and Latex Technology." He also serves as Scientific Advisor for EcoSynthetix Inc., producing renewable biopolymer-based nanoparticle latexes for paper coating and adhesives applications. His research interests include all aspects of latex technology, emulsion polymerization, dispersion rheology, paper coating technology, and many others. He has published more than 50 peer-reviewed papers and made numerous presentations. He holds 27 U.S. and more than one hundred international patents.

Established in 1928, the Gunnar Nicholson Gold Medal is granted to those "who have made preeminent scientific and engineering achievements of proven applied benefit to the world's pulp, paper, board, and forest product industries." It's named for former TAPPI President and Gold Medal winner Gunnar W. E. Nicholson and includes a cash honorarium.


TAPPI member William S. "Bill" Fuller has had a long and storied career in the Pulp and Paper industry, serving in a variety of scientific and safety roles for 35 years with Weyerhauser Company. A sleuth at heart (he describes himself as a CSI "addict"), he joined TAPPI in 1966 to access a vast array of global connections in wood technology and pulp and paper science.

"Thanks to that network, whenever someone asks me who they should talk to about a technology or a problem, I can almost always direct them to a person or organization to help, or provide direction," Bill says. Find out how by reading this month's Member Spotlight.

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member 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!


Congratulations to TAPPI's new Directors: Michael Exner, (RockTenn), Steven J. Shifman (Michelman, Inc.) and E. Clayton Teague (National Nanotechnology Coordination Office – Retired)

Elected to begin their three year terms in March 2012, they will join Norman F. Marsolan and Thomas J. Garland who continue to serve as TAPPI Chair, and TAPPI Vice Chair, respectively.

Exner is currently Senior Vice President and General Manager of Corrugated Packaging - Containerboard Mills at RockTenn Company in Norcross, Georgia, and has had a long and distinguished career in mill management, working with International Paper for more than 30 years. Shifman is the President and CEO of Michelman and having joined the company in 1992, has held multiple corporate positions there including sales management, business unit management and chief financial officer. Teague has worked in the fields now known as nanotechnology since 1968 and most recently served as Director of the Federal National Nanotechnology Coordination Office (NNCO), and as Chair of the American National Standards Institute Technical Advisory Group to the ISO Technical Committee on Nanotechnologies (ISO TC 229).

Exner, Shifman and Teague will join these Directors who will continue to serve on the TAPPI Board: Robert J. Gallo, (Voith Paper North America), Jeff Hamilton (Sappi Fine Paper N.A.), Markku A. Karlsson (UPM-Kymmene Corporation), Sandra L. LeBarron (Finch Paper LLC), Chris O. Luettgen (Kimberly-Clark Professional Research and Engineering), Larry N. Montague (TAPPI), and Robert A. Snyder, (Orchids Paper Products Co.)

Former TAPPI Chair, Jeffrey J. Siegel (Mica Corp.) served as chairman of the 2012 Nominating Committee. Other committee members included Carlos A. Aguiar (Fibria – Retired), Alan F. Button (Buttonwood Consulting), John R. Martin (Packaging Corp. of America), Larry N. Montague (TAPPI), Richard B. Phillips (NC State), Lewis D. Shackford (GL&V), Peter D. Wallace (Arclin) and Mark T. Watkins (MWV)

Special thanks go to the following TAPPI Board of Director members: Davide R. Friedman (Fibre Tech Packaging Solutions), Thomas E. Rodencal (Nalco Company), and Gary M. Scott (SUNY-ESF) as they complete their terms in March 2012.


Running The Gauntlet is a rough-and-tumble guide for running and driving change through the business gauntlet. The book divides into three parts that parallel the three parts of change that every business leader must face: Getting Ready, Getting Going, and Creating and Sustaining Momentum. In each section, Hayzlett shows business leaders and owners how to develop the necessary mental, emotional, and (yes) physical toughness they must have for smart, strategic, and lasting change. Through this book, Hayzlett will force leaders to really get up in their own businesses – to take them over from the inside and drive change – gaining customers and profits in the process. Readers will be able to efficiently assess what kind of change their business needs and then summon the vision, courage, and passion to enact it.

Running the Gauntlet

Product code: 11RUNN
Author: Jeffrey Hayzlett
Format: Hard cover
Edition: First
Pages: 256

Member Price: $26.00

Non-Member Price: $26.00

Xerium Technologies, Inc.
SGS – Group Management Ltd