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Coldwater Seals, Inc.
 
Thursday, August 23, 2018 - Member In This Issue
Weekly Spotlight
Market Roundup
Pulp & Paper
Containerboard/Packaging
Legislative
New Products
Published Pricing
Energy
People
TAPPI News
Cristini
Weekly Spotlight
New plant, featuring TAD tissue making technology, will be adjacent to an existing facility of the Kruger Group and will produce at maturity approx. 70,000 metric tpy of bathroom tissue and paper towels. The project will create more than 180 new jobs. Construction is expected to begin in early 2019, and the plant is scheduled to open in early 2021.
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Lindsay Goldberg acquires Glatfelter's Specialty Papers Business for approximately $320 Million and will assume $40 million of retiree healthcare liabilities. Net sales for the business unit in the 12 months ended June 30, 2018, were approximately $783 million.
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Marketing professionals and branding experts may naturally place greater emphasis on consumer-facing packaging, but packaging experts know that paper and plastic serves a role at every stage in the realization of a consumer product, from manufacturing and transport, to retail marketing efficacy and shelf-life predictions.
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Smithers Pira said that they see the packaging industry responding to and initiating its own response to this challenge. While incremental reductions in environmental cuts will still be possible – major future reductions often rest on implementing new disruptive technology.
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Merichem Company
Market Roundup
Bill Moore, president of Moore Associates, discussed the U.S. and international recovered paper markets outlook during Stifel conference call and expressed "cautious optimism" for OCC markets moving forward. He also believes that mixed waste paper prices will not go any lower than their current value.
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Earlier this year, the top North American publicly traded recovered fiber end users estimated their benefits from China’s import restrictions would be temporary. They recently reported those benefits, such as lower feedstock costs, continued through the second quarter.
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According to the AF&PA, total P&W paper shipments decreased 5% compared to this same time during the past year (July 2017). Total P&W paper inventory levels increased 1% compared to June 2018. Imports of P&W grades increased by 11% in June 2018 compared to June 2017 while exports declined 19% compared to June 2017.
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The AF&PA recently published its statistics for U.S. boxboard production. Compared to this time last year production is slightly down (July 2017 vs. July 2018) but production has risen comparing month-to-month (July to Aug. 2018). Recycled boxboard production increased compared to last year and has also risen month-to-month.
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According to the AF&PA in their July, 2018 report total U.S. packaging papers shipments in July 2018 were up 5.7% compared to July 2017 and up 1.3% year-to-date.
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AF&PA reports containerboard production rose by 4.2% compared to this same time during the past year (July 2017) and is up by 1.5% year-to-date. The month-over-month average daily production compared to June 2018 was 3.8% higher.
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Includes only the companies active in the American market that the assemblers were able to acquire for appropriate up-to-date information as of Aug. 2018.
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Warehouse Specialist
Pulp & Paper
Clearwater sold the facility for $72 million as it does not align with their strategy of producing ultra-high quality segments of tissue. "The additional capacity at Ladysmith will enable faster growth in the specialty tissue/absorbent market and their recycled fiber source is well suited for a variety of applications within the Dunn portfolio," Said Dunn Paper's CEO.
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Cited as reasons motivating the sell of the division were higher prices for wood pulp purchased elsewhere, while regular maintenance shutdowns covering a broad scope of work at both the Ohio and Pennsylvania facilities and a slower ramping back up of production than also expected negatively impacted profitability.
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Global Win Wickliffe (China) signed a purchase agreement August 16 for the former Verso mill in Ballard County. Governor Matt Bevin's office said in a news release that the company plans to invest $150 million and hire 500 people. Company officials say they plan to produce pulp and brown paper for packaging use at the site.
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"There have been changes in the marketplace recently," said a G-P spokesperson in regard to short-term demand spikes driven by a Chinese decision on imports. "But that hasn't changed the fact that demand for printing paper has been declining over a long period of time... producing printing paper at Camas wasn't profitable for the long-term."
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JK has made a major domestic acquisition doubling P&W capacity and is building new facilities. The company exported paper products to over 54 countries during the past year, including the U.S., the UK, Sri Lanka, Australia, Singapore, Malaysia, West Asia, and Africa. Its prime area of focus will continue to remain the domestic Indian market for now.
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The investment on new Advanced TMP plant, which produces ATMP from spruce wood chips exclusively, comes as Kabel (Germany) seeks to ensure future demand for raw materials. The new ATMP plant in Hagen, Germany is expected to have production capacity of approximately 100,000 metric tpy.
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WestRock CEO said the company is "now assessing the best use of the Newberg facility. It's going to take some time for us to determine the next steps, and we don't have an identified timeframe to make that decision." The company cancelled a deal that would have scrapped the mill but is not responding to buyers who would immediately restart operations.
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Tesa Tape, Inc.
Containerboard/Packaging
601,000ft² linerboard plant will contribute to Cascades’ future development by offering downstream converting capacity and strengthening the company’s containerboard operations. The project is expected to create up to 140 direct and indirect jobs for locals in Hanover County and the Commonwealth of Virginia.
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Design by Electronics for Imaging (Fremont, Calif., USA) delivers speeds of 246 linear ft. per min., or up to 10,000 35x35-in. boards per hour. The 71-in. wide press comes with print server / production system providing HQ color, advanced production tools, efficient job management, and ability to produce versioned / multi-SKU work or personalized packaging at full speed.
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After investing $500 million in Québec since 2015, Kruger continues to boost productivity and reduce environmental footprint of its packaging products with $20 million invested modernizing its Montréal and LaSalle plants. LaSalle has a $10 million new converting line operating as one of the fastest on the market. Improvements to Montréal plant will cut emissions by 15%.
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The company is working with international transport provider Scania to make a 50% reduction in its storage space for their truck window packaging services by now using exclusively paper-based solutions.
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Legislative
The visit to Combined Locks is part of the Wisconsin Democrat's "In Your Corner" eight-day campaign tour across 18 counties. "We were talking on this stop about some of the changes in policy that we’ve seen in China," Baldwin told USA Today Network-Wisconsin.
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U.S. Bankruptcy Court for the Southern District of New York confirmed its plan of reorganization, paving the way for the company to emerge from Chapter 11 in the coming weeks. Prior to filing, the company’s liabilities included approx. $1.1 billion in debt. Upon emergence, the company’s debt will be reduced by $800 million to approx. $325 million.
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New Products
Bag-in-Box packaging for edible oil and other oil-based liquids extends shelf life, preserves quality, dispenses reliably, and provides less environmental impact compared to conventional rigid containers.
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Typical applications are on hydraulic system reservoirs, gearboxes, diesel fuel storage tanks, and pumps.
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Camso
Published Pricing
The increases will be implemented through changes in list prices and package counts and are necessary to help offset significant commodity cost inflation. The percentage increases are generally in the mid-to-high single digits on average. Some increases will occur in Q4 of 2018 while most of the remaining increases will occur in Q1 of 2019.
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Sheets and reels will see a price increase of 6-8% effective on deliveries starting October 1 for all European and overseas markets.
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Energy
Due to energy efficiency measures in Kraft pulp mills, lignin availability has recently greatly increased. This surplus provides a readily available feedstock for conversion into a phenolic-rich bio-oil via hydrothermal liquefaction (HTL). This bio-oil product can then be processed into a product suitable for blending with fossil fuel.
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People
Company veteran Craig Boortz becomes VP of Sales for Paper. "As we deepen our commitment to continue growing our packaging and wide format segments, paper remains a core business segment for us," stated Mac Papers CEO David McGehee.
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TAPPI News
Get direct access to a record-breaking number of exhibitors and industry leaders.
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Wouldn’t it be great to discover new markets in a longstanding industry? Lignin-based product development is helping mills diversify product portfolios.
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The most comprehensive introductory tissue training available is coming to TAPPI.
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TAPPI will be performing its fiscal year-end inventory audit starting Aug. 28. As a result, TAPPI Press orders will not be processed from Aug. 28 through Sept. 3. Orders received during this time will be shipped in the order they have been received starting Sept. 4. All normal payment processing will resume on Sept. 4.
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