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Travels with Larry Archive
Thursday, April 15, 2010
members edition
Metso Paper
Weekly Spotlight
Ilim, Russia's largest pulp and paper company (50% owned by International Paper, Memphis, Tenn., USA), announced this week that it is moving ahead with construction of a 720,000 metric tpy softwood pulp mill in Bratsk, Siberia.
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Attendees at PaperCon 2010, May 2 -4, at the Hyatt Regency Atlanta, Atlanta, Ga., USA, will be treated to two dynamic keynote addresses.
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Catalyst Paper, Powell River, B.C., Canada, and the City of Powell River report that they have agreed in principle to twin objectives of reducing the Class 4 property tax rate paid by Catalyst's Powell River mill while assisting the City in reducing significantly its capital expenditures for future municipal service infrastructure.
Learn More...
 
The keynote address at the twenty-third Process Industry Reliability & Maintenance (PIRM) Conference being co-located with PaperCon May 2-5 in Atlanta will be delivered by Robert (Bob) Taylor, CEO of Neucel Specialty Cellulose.
Learn More...
 
Market Roundup
Prices are rising in almost every pulp, paper, and paperboard grade.
Learn More...
 
"We are finally starting to see signs of genuine demand improvement," Wilde continues.
Learn More...
 
The big cost issue in recent months has been fiber costs.
Learn More...
 
The global pulp market remains tight, and April North American NBSK prices are expected to rise.
Learn More...
 
Virtually all of the major producers (˜75% of North American UFS capacity) announced a $60/ton ($3/cwt) price increase across different UFS grades, effective early May.
Learn More...
 
Pulp & Paper
AK GIDA SAN ve TİC A.Ş, Turkey, has ordered a tissue line from Metso Paper, Finland, to be installed at the company's new mill in Pamukova, which is located in Sakarya province.
Learn More...
 
BASF AG, Germany, reports that it is repositioning its global pigments business following its acquisition of Ciba.
Learn More...
 
Through a partnership with the U.S. National Park Foundation, International Paper Co., Memphis, Tenn., USA, is launching a series of commemorative national park cups, available for use by parks, concessionaires, and others.
Learn More...
 
Max Fortune Industrial Ltd., Hong Kong, will install a new Metso Paper (Finland) tissue line at its greenfield mill near Fuzhou city, Fujian province, China.
Learn More...
 
PaperlinX Ltd, Australia, this week announced that its Burnie Mill in Tasmania will be closed.
Learn More...
 
Rayonier, Jacksonville, Fla., USA, reports that the first day of its 6,200-acre land auction this past week drew a capacity crowd to Waycross' Exchange Club Center (Waycross, Ga.).
Learn More...
 
Launching its "Be TENAcious" campaign this week with six-time Olympian Anne Abernathy and HealthyWomen, SCA North America, Philadelphia, Pa., USA, said that "more than one in forty women over 40 face bladder control issues and many are suffering in silence and not seeking out solutions that can enable them to lead the lives they desire."
Learn More...
 
According to several news reports this week, Labor talks broke down this past weekend between the Swedish Paper Workers' Union (Svenska Pappers) and the employers' Forest Industry Association (Skogsindustrierna, SFIF).
Learn More...
 
As Swedish paper worker strikes loom, the Finnish Forest Industries Federation and the Finnish Paper Workers' Union late last month reached an agreement covering workers in the paper industry.
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The City of Virginia Beach, Va., USA, this week received the 2010 American Forest & Paper Association (AF&PA) Community Recycling Award.
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Containerboard/Packaging
The Paperboard Packaging 2010 Conference being conducted by TAPPI and Pira International June 22 -24 in Budapest, Hungary, brings together leading minds in paperboard and associated industries.
Learn More...
 
Orient Paper, Baoding, China, reported this week that it will purchase a new corrugating medium paper production line from Henan Qinyang First Paper Machine Ltd, of China.
Learn More...
 
Chesapeake, Amersham, U.K., will acquire Cezar S.A., a Poland-based producer of labels and cartons.
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Packaging Graphics LLC, Pawtucket, R.I., USA, reports that it has extended a licensing agreement with MeadWestvaco for its Natralock security packaging products.
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Tetra Pak, Switzerland, this week inaugurated its new Technology Centre in Pudong, Shanghai, China.
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New Products
Domtar, Montreal, Que., Canada, has release its new Colors and Hots stocking brochure, which includes specifications, stocking information, and color palettes that detail each shade.
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Mohawk Fine Paper, Cohoes, N.Y., USA, has introduced a new swatchbook known as Mohawk Loop, which it notes contains "the largest collection of premium environmental papers in the world."
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Published Pricing
International Paper Co., Memphis, Tenn., USA, reportedly is raising uncoated free sheet prices $60/ton, effective May 3.
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Södra, Sweden, reported this week that it will raise the price of its softwood pulps by $30 per metric ton to $960 per metric ton.
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Sustainability
Kimberly-Clark Professional, Roswell, Ga., USA, this week launched the "Green Patrol," a program that will bring employees and other volunteers to communities throughout the U.S. to help plant trees and aid in cleanup and recycling projects as well as other environmental efforts.
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Energy
Domtar Corp., Montreal, Que., Canada, says it will proceed with two projects to improve energy conservation, increase renewable power generation, and reduce particulate emissions at its Kamloops, B.C., Canada, pulp mill.
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People
Leena Lie, VP, Communications, Kemira (Helsinki, Finland) has been appointed VP, Marketing and Communications and a member of the Strategic Management Board of Kemira.
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Metsä Tissue, Finland, reports that Paavo Liestalo, SVP Marketing and Business Development, Consumer Business, will leave the company on May 7.
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UPM, Helsinki, Finland, has combined its group level Finance and Control and Strategy under one management.
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TAPPI News
TAPPI Lean Manufacturing - Flexo & Die Cutters – Course is May 25-27 in Norcross,Ga.
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Entry deadline for finest commercially produced corrugated packaging is August 27.
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Division Technical Award and Leadership & Service Award nominees are requested.
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TAPPI's NET Division announces 2010 NET INC., November 10-12, in Raleigh, N.C., USA.
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Popular program moves to larger hotel venue so participants can lodge where they learn, April 19-21, in Norcross, Ga.
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Unique event to focus on practical ways for converting a broad range of biomass resources to renewable energy.
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The TAPPI International Conference on Nanotechnology for the Forest Products Industry solicits program info for 2010.
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"You will either step forward ..."
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Nalco Company
EKA Chemicals Inc.

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Naylor, LLC
Weekly Spotlight

Ilim, Russia's largest pulp and paper company (50% owned by International Paper, Memphis, Tenn., USA), announced this week that it is moving ahead with construction of a 720,000 metric tpy softwood pulp mill in Bratsk, Siberia, according to Mark Wilde, senior analyst with Deutsche Bank. Built on an existing site, the mill will cost an estimated $700 million and is slated for a second-half 2012 startup. Production will be targeted at the growing Chinese market. 

The decision to move ahead with this project, Wilde notes, reflects the combination of an improving global economy, rising pulp prices, and more accommodating capital markets. The project represents more than one-third of the capital program announced when IP entered the Ilim joint venture. That program was delayed by the global economic crisis. Withthis week's announcement of the new mill at Bratsk, it appears the Ilim capital program is back on track, Wilde adds. Engineering and construction will reportedly start immediately. Equipment orders have already been placed.

With this surprise announcement, Ilim has "leap-frogged" to the head of a line-up of new pulp mill projects, Wilde points out. "On our recent Latin American tour, we heard about projects that could boost Latin American market pulp capacity by as much as 12-15 million metric tpy over the next five to six years. With an improving economic backdrop and capital markets re-opening, the project pipeline appears to be quickly reloading. Judging by what we heard in Latin America, a few weeks ago and announcements like Ilim's, this could prove to be one of the greatest waves of new pulp capacity in history."

According to Wilde, the Ilim project appears to have the advantage of being the "early mover" as well as the only pure softwood (long fiber) project on the list. Virtually all of the Latin American projects will produce hardwood (short fiber) pulp. "The unit capital cost at Bratsk (about $1,000/metric ton) appears to be in-line or slightly below the numbers we heard in Latin America," he adds.

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Attendees at PaperCon 2010, May 2 -4, at the Hyatt Regency Atlanta, Atlanta, Ga., USA, will be treated to  Impact, will deliver his presentation titled "It Takes a Village - Starbucks Quest for the Recyclable Cup." Hanna will provide an overview of Starbucks efforts to significantly reduce its environmental footprint  through energy and water conservation, recycling, and green construction. He will also discuss Starbucks aim to achieve recyclability or compostability - in form and in practice - for all of its single-use cups by 2012. Hanna joined Starbucks in 2005, leading the company's initiatives to minimize its environmental impact through green building, energy conservation, international procurement, waste minimization, and collaboration with partner corporations and NGOs.

On Monday, May 3, Nina B. Link, president and CEO of the Magazine Publishers of America (MPA), will kick off the third annual pulp and paper conference with her keynote presentation focused on "Magazine Publishing: Looking Forward." In her presentation, Link will explore the disruption and transformation of the magazine industry brought about by technology and changing consumer and advertising demands. Joining MPA as president and CEO in 1999, Link has applied her depth of knowledge in several areas of the consumer magazine industry, She has reinvigorated the organization through highly strategic plans in key areas such as government affairs, advertising, circulation, and promotion and professional development. More Information about Papercon 2010, its technical program, technology exhibit, workshops, and showcases is available on the event's website. Registration information is also available on this website.

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Catalyst Paper, Powell River, B.C., Canada, and the City of Powell River report that they have agreed in principle to twin objectives of reducing the Class 4 property tax rate paid by Catalyst's Powell River mill while assisting the City in reducing significantly its capital expenditures for future municipal service infrastructure.

"Council committed to looking for solutions to the major industry property tax in Powell River," said Mayor Stewart Alsgard. "We have held frank, realistic discussions with Catalyst, culminating in a very positive outcome that reflects the needs of the community and provides for a way forward under challenging circumstances."

The City agreed that the company's annual property taxes will not exceed $2.25 million for five years. In addition, the City and Catalyst agreed to jointly pursue environmental permit amendments and related arrangements that would enable a 20-year service agreement valued at $750,000 annually in the first five years, under which Catalyst will treat the City's liquid waste using the mill's effluent system and burn the City's bio-solids in the mill's waste wood boiler.

"We saw that we both had a cost problem associated with municipal services. And we came to a shared conclusion that, going forward, the City's circumstances could be addressed more cost-efficiently by making our mill infrastructure available for municipal use," said Richard Garneau, Catalyst president and CEO. "Cooperation and flexibility helped us take a big step toward the $1.5 million property tax goal, and together the City and Catalyst were able to find a solution that's right for Powell River."

The agreement will see Catalyst drop its legal appeal of the City's 2009 municipal tax levy and pay into trust $2.5 million in outstanding 2009 municipal property taxes, including penalties and interest, pending the City's completion of arrangements for implementing its 2010 business plan with the provincial government. Related commitments by the company include sale to the City of the mill's unoccupied administration office building and associated lands for a nominal price, and a four-year mortgage extension to PRSC LLP, a three-way partnership with the City and Tla'Amin First Nation formed in 2006 to facilitate local economic diversification through land sales.

The City and Catalyst will also explore a variety of joint economic development initiatives and a revenue upside contribution arrangement, capped at $500,000 annually, based on the Powell River paper mill's ability to achieve a return on capital employed in excess of 10%.

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The keynote address at the twenty-third Process Industry Reliability & Maintenance (PIRM) Conference being co-located with PaperCon May 2-5 in Atlanta will be delivered by Robert (Bob) Taylor, CEO of Neucel Specialty Cellulose. Titled "The Reliability Paradox -- Understanding the Basic Causes and Means to Resolve," Taylor's presentation will explore recent and emerging trends in paper industry R&M practices. Specifically, he will examine and analyze how the reliability paradox can develop at today's pulp and paper mills and what some companies are doing to successfully overcome it.

Taylor joined Neucel as CEO in November 2007 with more than 25 years of industry manufacturing experience. Prior to Neucel, he spent one year as VP of Operations for the Building Products Division of Armstrong World Industries where the reliability focus established during that period at all of its U.S. plants continues to bring outstanding business results to the bottom line. Bob spent three years as VP of Manufacturing for Sappi Fine Papers North America where, in addition to having responsibility for operations at all the company's facilities, he was also responsible for Wood Procurement, Pulp Sales, Corporate Engineering, and Capital Planning. Prior to that, Taylor served in several manufacturing leadership positions encompassing several different pulp and paper businesses during a 23-year career with International Paper Co., finishing as VP of Manufacturing Systems for the Printing and Communications Division in 2003.

More information about PIRM 2010, including registration, program, and the Maintenance Alley exhibit section of PaperCon 2010, is available on the event's website.

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Market Roundup

Prices are rising in almost every pulp, paper, and paperboard grade, according to Mark Wilde, senior analyst with Deutsche Bank, who adds that "it's mostly a supply-side story." The sharp demand decline in late 2008 and early 2009, he explains, caused the industry to announce substantial capacity closures. In recent months, supply has been further restricted, because many mills have been subject to downtime or slowbacks due to fiber issues resulting from unusually wet weather. Some grades are also being impacted by the Chilean earthquake.

In almost every paper grade, tight markets and elevated fiber costs are pushing prices higher, Wilde notes. Perhaps the most notable hike initiative is in containerboard, where producers are out with a $60/ton increase for April 1. This follows a $50/ton increase on January 1. "While a second hike in such a short order appears surprising, we think that producers have a good chance to push it through,"Wilde says.

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"We are finally starting to see signs of genuine demand improvement," Wilde continues, pointing out that gains to date in most grades are only modest, however. In most grades, the magnitude of y/y volume gains is exaggerated by the extremely easy comps of early 2009. "Still, even modest gains in domestic demand are leading to tighter markets, because of supply discipline and favorable trade flows. "Moreover, with broad economic indicators such as GDP and the ISM's manufacturing index showing strength, we expect further demand gains in the months ahead," Wilde explains.

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The big U.S. cost issue in recent months has been fiber costs, according to Wilde. "OCC costs in particular saw a massive surge through most of the first quarter. Virgin fiber costs were also increased (and supply reduced), as unusually wet weather in many parts of the country limited access to trees. In recent weeks, it appears that fiber costs are starting to moderate. Most other cost elements remain at moderate levels," he says.

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The global pulp market remains tight, and April North American NBSK prices are expected to rise to $960/metric ton (+$50/metric ton over March and +$325/metric ton or 51% since last May), Wilde reports. Recent mill restarts by Arauco and CPMC are bringing Chilean capacity back into the market. "However, even with these restarts, we believe the "Chile effect" on global supply could easily stretch to six months. Add to this a further decline in inventories in March, robust global demand, spring maintenance downtime by North American mills, and a sharp rise in North American NBSK spot prices (+$20/metric ton to $810-$850/metric ton), and a further run-up in prices appears likely," WIlde says.

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Virtually all of the major producers (˜75% of North American UFS capacity) announced a $60/ton ($3/cwt) price increase across different UFS grades, effective early May, according to Wilde. The announcement follows successful price increases for both cut-size ($40/ton) and roll grades ($35-$40/ton) in March. The recent announcement, Wilde adds, is driven by a sharp rise in pulp costs, wood fiber shortages in parts of the U.S. South, improved February shipments (+5.9% y/y), and capacity cuts. The major UFS producers in North America are largely integrated, so rising pulp prices are a relatively modest issue for them, Wilde explains. Smaller producers, he adds, including a number of private players, are struggling to keep their heads above water. "We wouldn't be surprised to see some of these smaller mills shutter in the next two to three months," he says.

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Naylor, LLC
Pulp & Paper

AK GIDA SAN ve TİC A.Ş, Turkey, has ordered a tissue line from Metso Paper, Finland, to be installed at the company's new mill in Pamukova, which is located in Sakarya province. Startup is planned for the second quarter of 2011. The value of the order was not disclosed, but Metso notes that the market value of a tissue production line of this type ranges from EUR 15 million to 20 million, depending on the scope of delivery and production output.

Metso will deliver the complete tissue production line, including a stock preparation system and a tissue machine. The tissue machine will be equipped with a headbox, a press, a yankee cylinder, a hood adapted for co-generation, a dust management system, and a reel. The stock preparation system includes pulpers, conical refiners, and machine screens. The delivery also includes an extensive automation package with machine and process controls, and quality controls. Complete engineering, installation supervision, training, startup, and commissioning are also included in the delivery.

The new line will produce 60,000 metric tpy of facial, handkerchief, toilet, and towel grades. The raw material will be virgin fiber. The production line will be optimized to save energy and enhance final product quality.

AK GIDA SAN ve TİC A.Ş aims to expand its operations into the field of tissue products with the new mill in Pamukova. With 140,000 m2 of production area, Athe company currently produces some 400 different dairy products at the Pamukova facilities.

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BASF AG, Germany, reports that it is repositioning its global pigments business following its acquisition of Ciba. After an in-depth analysis of the combined operations, the company says it will eliminate specific products and "adapt production capacities to market developments."

Some 500 of the combined company's 2,900 jobs in global pigment production will be redundant, and thus eliminated. These job reductions, which mainly concern azo pigments and phthalocyanines, will begin this year and are expected to be completed by 2013. BASF currently operates 22 production sites for pigments worldwide. "We will close individual production plants at six sites in North and South America as well as in Europe. At six other sites in Asia and Europe, we will expand existing capacities or make better use of them," said Markus Kramer, president of BASF's Dispersions and Pigments division.

In Europe, about 320 positions will be cut by 2013. This will mainly affect the sites in Paisley, G.B., and in Grenzach, Germany. About 90 positions will be cut at the South American site in Guaratinguetá, Brazil. Redundancies at the company's U.S. sites in Louisville, Ky., and Elyria, Ohio, will total about 80 positions.

"By streamlining our portfolio we will mainly eliminate overlaps within our combined portfolio. At the same time we are reducing overcapacities," said Andreas Türk, group VP of the BASF unit Global Restructuring Management Pigments. All sites that are not directly involved in the production consolidation process will undergo regular checks establishing optimization potential.

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Through a partnership with the U.S. National Park Foundation, International Paper Co., Memphis, Tenn., USA, is launching a series of commemorative national park cups, available for use by parks, concessionaires, and others. The cups - IP's commercially compostable ecotainer - feature eight different artistic renderings of iconic national parks along with an educational message about conservation and environmental stewardship. The cups use paperboard from the company's Riegelwood, N.C., mill that is coated at its Prosperity, S.C., extrusion plant, and formed into cups at its Kenton, Ohio, foodservice facility.

IP will donate one penny for each commemorative cup sold, up to $1 million, to the National Park Foundation to be used to support the Foundation's efforts to promote and protect U.S. national parks. The ecotainer cups can be purchased for use by any national park, concessionaire, or other organization that would like to support the parks. The cups feature iconic national parks - five hot cup designs and three cold cup designs – and come in assorted sizes.

"International Paper has a strong legacy of environmental responsibility, and our ecotainer compostable foodservice products are just one example of our stewardship," said John Faraci, IP's chairman and CEO and National Park Foundation board member. "We are proud to honor our national parks through this commemorative cup and are looking forward to working with the parks and others to develop composting and recycling solutions."

In conjunction with the launch of the national park cup, IP has recently partnered with the Grand Teton Conservation District to conduct a waste characterization study at the Grand Teton National Park. The study, funded in part by IP, is aimed at identifying best practices in foodservice waste reduction and composting solutions in order to transfer that knowledge to national parks throughout the country. The national park ecotainer cup is being used as part of the study.

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Max Fortune Industrial Ltd., Hong Kong, will install a new Metso Paper (Finland) tissue line at its greenfield mill near Fuzhou city, Fujian province, China. The line will startup in March 2011. The value of the order has not been disclosed, but Metso notes that the market value of a tissue production line of this type is in the range of EUR 15-20 million, depending on the scope of the delivery and the production output.

The new line will produce 60,000 metric tpy of facial, toilet, and towel grades. The raw material for the new line will be virgin pulp. Metso will deliver a complete production line with stock preparation equipment and a tissue machine, including a multi-layer head box, a yankee cylinder, a hood, a dust management system, and a reel. Metso also will supply the automation package, including machine, process, and integrated drive controls, as well as the quality control system.

Max Fortune Industrial is a manufacturer and exporter of paper products, with plants in China and Vietnam. Its range of products include gift bags, greeting cards, gift wraps, and tissue wrapping papers. The company employs more than 5,000 people, supplying customers in North America, Europe, and the Far East.

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PaperlinX Ltd, Australia, this week announced that its Burnie Mill in Tasmania will be closed. The closure of the remaining operations at the Burnie Mill is the final stage of PaperlinX's exit from its Tasmanian paper manufacturing operations, with the balance of operations already closed. On completion of this closure, PaperlinX will be solely a merchanting company, with businesses distributing paper, sign, and display graphics solutions and industrial packaging to customers in Australia, New Zealand, and Asia, Europe, and North America.

The overall total net cash cost of PaperlinX's exit from Tasmania is still expected to be around A$10-20 million, while PaperlinX is expected to include after tax significant items in its 2010 full year results of around A$170 million, including non-cash accounting items as a result of the closure, in line with previous guidance. A$134 million of the total after tax significant items was already included in the first half results released in February, and Tas Paper results will be reported under "Discontinued Operations" for the 2010 financial year.

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Rayonier, Jacksonville, Fla., USA, reports that the first day of its 6,200-acre land auction this past week drew a capacity crowd to Waycross' Exchange Club Center (Waycross, Ga.), with 80 registered bidders competing for land that ultimately sold for $2,467,300. In all, 16 bidders emerged as successful buyers in the sale, which attracted hunters, investors, and others seeking the Rayonier woodland. The land sold for $1,722 per acre on average.

The auction continued this past Saturday in Dublin, Ga., with the final 50 tracts available in Telfair, Laurens, Coffee, Irwin, Dodge, Pulaski, and Wilcox counties. The auction reversed a general policy or practice by Rayonier to not sell its woodlands in the area to neighbors, hunting clubs, and individuals—at least not in small tracts.

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Launching its "Be TENAcious" campaign this week with six-time Olympian Anne Abernathy and HealthyWomen, SCA North America, Philadelphia, Pa., USA, said that "more than one in forty women over 40 face bladder control issues and many are suffering in silence and not seeking out solutions that can enable them to lead the lives they desire." The company's latest advocacy campaign is designed to open a dialog, inform, and inspire women to overcome the challenges of bladder control issues with a simple message: "Be TENAacious."

Tenacious, the company notes, is defined by Merriam-Webster as "persistent in maintaining, adhering to, or seeking something valued or desired," and embodies the mission of the "Be TENAcious" campaign. Starting in April, TENA will begin to highlight real, tenacious women who are confronting the condition head-on to help millions of women with bladder control issues break their silence. Leading the charge will be Abernathy, six-time Olympic luger who has made a career of breaking barriers, and will now add bladder control issues to her list. She will share her inspiring story about her experience with bladder control issues to kick off the campaign that will also feature educational content developed by HealthyWomen, a U.S.-based, independent health information source for women.

The campaign will feature a number of online and offline programs, including the creation of two web portals, BeTENAcious.net (in the U.S.) and BeTENAcious.ca (live in Canada in May), housing new web content powered by HealthyWomen and TENA's websites featuring information and education on bladder control issues and inspirational insights from Abernathy.

Abernathy is no stranger to facing challenges, SCA says. She holds the Guinness World Record for the oldest woman ever to compete in the Winter Olympics and is the first woman over fifty to participate in the Winter Games, single-handedly changing the perception of age in her sport (leading to her nickname "Grandma Luge"). Her eighteen-year Olympic career started after the age of thirty, when most athletes typically retire, and continued through life-threatening injuries, cancer, and sixteen knee surgeries. She is now featured in the book, "Women of True Grit," written by Eddie Hand and Tina Savas. Abernathy will serve as the first spokeswoman for the Be TENAcious campaign, sharing her unique views and experiences on overcoming personal and professional challenges, including bladder control issues.

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According to several news reports this week, Labor talks broke down this past weekend between the Swedish Paper Workers' Union (Svenska Pappers) and the employers' Forest Industry Association (Skogsindustrierna, SFIF). An overtime and new staff ban and a blockade of temporary workers started at all Swedish papers mills on Monday evening of this week, and if no agreement is reached in the meantime, selective strikes will begin at six Swedish pulp and paper mills on April 16. The mills affected by the strike are SCA Munksund, Iggesund, Korsnäs Gävle, Stora Enso Skoghall, Billerud Skärblacka, and Södra Cell Värö.

Negotiations between Svenska Pappers and Skogsindustrierna have been going on since the middle of December last year. The previous collective agreement ended March 31. The Scandinavian pulp and paper industry has been already hit twice this year, by the earthquake in Chile and the Finnish stevedores strike.

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As Swedish paper worker strikes loom, the Finnish Forest Industries Federation and the Finnish Paper Workers' Union late last month reached an agreement covering workers in the paper industry. An agreement covering the salaried employees was also achieved.

The two-year collective agreement raises wages by 0.5% during the first year. In addition, the parties agreed on considerable development of the collective agreement to strengthen the industry's competitiveness and to maintain as many jobs as possible. The parties also agreed to develop the collective agreement to support wellbeing at work together with continuous improvement of competitiveness and productivity, to provide new working hours models, and to clarify the agreement. Both agreements cover the period April 1, 2010 - March 31, 2012.

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The City of Virginia Beach, Va., USA, this week received the 2010 American Forest & Paper Association (AF&PA) Community Recycling Award. The annual award recognizes outstanding community, business, and school paper recycling programs across the country.

In 2009, Virginia Beach recovered nearly 23,800 tons of paper and paper-based packaging for recycling, more than 68% of all recyclables collected. Virginia Beach residents were educated about the recycling program through print and online promotional recycling resources that featured a Catch the Wave...Recycle! slogan and clear visuals depicting recyclable materials. Community-wide events and activities, such as the annual Virginia Beach Earth Day Celebration and Virginia Beach Celebrates America Recycles Day, helped to further promote the recycling program, and resulted in a 67% participation rate in 2009.

The City's curbside recycling program was developed and implemented in1997 in conjunction with TFC Recycling. The program currently services 124,000 households at curbside, with additional recycling services provided to 94 city schools and related buildings, 106 municipal buildings, and 5 public-use recycling drop-off sites.

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Containerboard/Packaging

The Paperboard Packaging 2010 Conference being conducted by TAPPI and Pira International June 22 -24 in Budapest, Hungary, brings together leading minds in paperboard and associated industries, creating a forum where the current challenges and opportunities facing converters, mills, and end users involved in paperboard will be discussed and real solutions proposed. This unique, global forum includes:

  • Market forecasts by geographic region, material type, and end use over the next five years
  • Consumer, retailer, and brand owner future requirements and expectations
  • Sustainability challenges and opportunities for paperboard packaging
  • Latest innovations in printing and decoration technologies
  • Regulatory and legislative landscape for the future
  • Advances in paperboard manufacture and converting.

 A conference brochure and registration forms can be downloaded on the Paperboard Packaging 2010 website . The early bird registration rate for this event ends tomorrow, April 16.

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Orient Paper, Baoding, China, reported this week that it will purchase a new corrugating medium paper production line from Henan Qinyang First Paper Machine Ltd, of China. With a price tag of RMB 190.0 million (approximately $27.8 million), the new machine will have a production capacity of 360,000 metric tpy of corrugating medium. Qinyang Paper Machine will complete installation of the new production line at Orient's mill in Hebei, China, within the next six months. Orient Paper expects to begin trial production on the new line at the beginning of the fourth quarter.

After successfully completing the trial production, around the end of the year, the company plans to begin large scale production of corrugating medium and achieve a utilization rate of approximately 70% in fiscal year 2011. "With the additional 360,000 tons of corrugating medium paper production capacity, we are set to expand our market share in northern China's rapidly growing paper industry," said Zhenyong Liu, chairman and CEO. "The newly acquired production line will increase our total production capacity from the existing 280,000 metric tpy to 640,000 metric tpy by 2011. The continued progress and development of our regional economy and the domestic consumer and packaging industries have resulted in robust demand for corrugating medium paper products. We believe the additional capacity will enable us to better serve the growing demand for corrugating medium paper, contributing to our future revenue growth and profitability."

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Chesapeake, Amersham, U.K., will acquire Cezar S.A., a Poland-based producer of labels and cartons. Chesapeake notes that the operation complements its existing facilities and further extends its supply network to develop and support its presence in Central Europe.

Cezar's main production site is based near Bialystok, northeast Poland, a two hour drive from Warsaw. Cezar also has a satellite operation across the Polish border in Belarus. The business produces folding cartons as well as wet-applied, self-adhesive, and in-mould labels. Employing more than 300 people, Cezar is a substantial business focused on the alcoholic drinks, pharmaceutical, confectionery, and beauty-care markets supplying both pan-European and local customers.

Commenting on the acquisition, Jerry Kerins, chairman and CEO, said that "Cezar is an impressive, well-respected operation and an ideal partner to further extend our position in Central and Eastern Europe. Cezar operates to exceptionally high production standards and benefits from new generation machinery, establishing them firmly as a world-class manufacturer. This acquisition extends our service to customers, and Cezar's rigorous quality standards, proactive approach to innovation, and customer service closely match our own philosophy."

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Packaging Graphics LLC, Pawtucket, R.I., USA, reports that it has extended a licensing agreement with MeadWestvaco for its Natralock security packaging products. Under the agreement, Packaging Graphics will use MeadWestvaco's Natralock technology to manufacture and market theft-deterrent packaging products in North America until the year 2015.

Packaging Graphics has had a licensing agreement with Meadwestvaco for Natralock since 2007. Since that time, the company has produced Natralock packaging for customers in almost every retail market, including home and personal care, cosmetics, electronics, and office products.

Natralock security packaging features a proprietary tear-resistant paperboard that can be RF-sealed, with approximately one-third the energy required for plastic clamshells, or heat-sealed on most existing equipment. Offered in both SBS and CNK grades, Natralock paperboard can include 30% to 50% recycled content, is a renewable, easy-to-recycle material that reduces the use of plastic by 50% to 60%, and provides superior price stability. The glare-free billboard can be custom designed to differentiate consumer products and supports high quality reproduction for bolder graphics and special printing effects to enhance branding.

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Tetra Pak, Switzerland, this week inaugurated its new Technology Centre in Pudong, Shanghai, China. The Centre, which brings together resources from product development and engineering, technical service, training, sourcing and distribution, provides Chinese customers with a one-stop service in food processing and packaging solutions.

"The Technology Centre in Pudong creates a world-class resource for customers, ideally placed to address the unique challenges of food and beverage packaging, processing, and distribution in China," said Dennis Jönsson, president and CEO of the Tetra Pak Group. "This facility will make us more responsive to local needs, ensuring that our activities, our innovation pipeline, and our service offerings are sharply focused on helping local customers better deliver their products to the people of China."

Engineering solutions geared specifically to the China market will be a special feature of the Shanghai Centre. For example, the new facility will include the first Chinese road condition analysis lab, with state-of-the-art equipment that accurately records road conditions across the country and provides data that customers can use to reduce potential transportation problems.

Tetra Pak operates 16 technical training centers, 41 technical service centers, and 11 research and development facilities around the world.

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New Products

Domtar, Montreal, Que., Canada, has release its new Colors and Hots stocking brochure, which includes specifications, stocking information, and color palettes that detail each shade. The Domtar Colors sunny pastel palette is designed for manuals, menus, folders, and business reports, while adding impact to flyers, publications, and newsletters. Domtar Hots, with pure and vivid colors, are designed for memos, presentations, newsletters, and direct mail. Both Colors and Hots are available in a wide range of colors, weights, and sizes, are guaranteed on laser and inkjet printers, and are made acid-free for archival longevity.

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Mohawk Fine Paper, Cohoes, N.Y., USA, has introduced a new swatchbook known as Mohawk Loop, which it notes contains "the largest collection of premium environmental papers in the world." With Mohawk Loop, the company adds that there is "no more wading through piles of swatchbooks looking for the right recycled content, trying to decipher all of the environmental logos and claims, searching for a PCW offering with contemporary colors, or crossing product lines in an attempt to coordinate a complete system."

The new line merges Mohawk Synergy, Mohawk Genesis, Mohawk Passport, and Mohawk Proterra with new Mohawk Loop shades and finishes. It includes 35 shades (with 95-bright white), 21 shades with 100% PCW content, six finishes (including the new 50% PCW Silk Coated finish), weights from 24 lb to 160 lb douible thick cover and a new 18 pt. folding board, new 100% PCW Inxwell with i-Tone, and envelopes stocked in commercial and announcement sizes in a range of shades. FSC-certified Mohawk Loop is made with Green-e certified windpower, made carbon neutral through the purchase of Verified Emission Reduction credits (Vers), and is packaged in Mohawk's new environmental preferable packaging materials.

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Published Pricing

International Paper Co., Memphis, Tenn., USA, reportedly is raising uncoated free sheet prices $60/ton, effective May 3. The price hike applies to xerographic, offset, envelope, and other converting grades. The announcement is in the wake of several $35-$40 industry price increases for cut-size and roll grades in March.

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Södra, Sweden, reported this week that it will raise the price of its softwood pulps by $30 per metric ton to $960 per metric ton. The price increase is effective beginning May 1. "Södra's deliveries of pulp are at a high level and stocks are very low. Our outlook for the second quarter is a strong market," said Ulf Edman, president of Södra Cell International.

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Sustainability

Kimberly-Clark Professional, Roswell, Ga., USA, this week launched the "Green Patrol," a program that will bring employees and other volunteers to communities throughout the U.S. to help plant trees and aid in cleanup and recycling projects as well as other environmental efforts. The Green Patrol will also provide rewards to people for random acts that benefit the environment, such as putting trash into recycling bins or bicycling to work.

"The Green Patrol is a hands-on effort to make a positive impact on the environment, city-by-city and state-by-state," says Kevin McVeigh, associate marketing director for sustainability for Kimberly-Clark Professional North America. "Throughout this year, which marks the 40th anniversary of Earth Day, we are going to be putting feet on the street at events that support clean air, reforestation, recycling, composting, as well as other activities that benefit the environment."

The Green Patrol's first projects will be in Atlanta, near Kimberly-Clark Professional's Roswell headquarters, and Philadelphia, Pa. In Atlanta, on Saturday, April 17, more than 50 Kimberly-Clark employees will be volunteering for a Green Patrol project to clean up Proctor Creek, one of the most environmentally impaired creeks in metro Atlanta. The effort is also being undertaken as part of EarthShare of Georgia's Corporate Green Day Challenge, the first of three annual Earth Day events. In Philadelphia, the Green Patrol will be assisting with the recycling, composting, and cleanup of trash from the Clean Air Council 5K Run, also on April 17.

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Energy

Domtar Corp., Montreal, Que., Canada, says it will proceed with two projects to improve energy conservation, increase renewable power generation, and reduce particulate emissions at its Kamloops, B.C., Canada, pulp mill. The capital investment of C$57.6 million will be entirely funded by credits received from the Government of Canada's Pulp and Paper Green Transformation Program. The first phase of work related to these projects is expected to begin in late May, during the mill's annual maintenance shutdown.

"We welcome and appreciate the support we have received from Natural Resources Canada under this program," said Eric Ashby, GM at the Kamloops mill. "The funding for these projects, together with support from BC Hydro's 'Integrated Power Offer' for industrial customers, was instrumental for Domtar in moving forward with these important improvements."

 Domtar was allocated credits totaling C$143 million dollars for investments aimed at improving energy efficiency and environmental performance under the Pulp and Paper Green Transformation Program. It owns and operates a total of four pulp and paper mills in Canada, all eligible for this program. Domtar is also a participant in BC Hydro's Integrated Power Offer that promotes investment in energy efficiency and renewable energy generation.

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People

Leena Lie, VP, Communications, Kemira (Helsinki, Finland) has been appointed VP, Marketing and Communications and a member of the Strategic Management Board of Kemira. She reports to Harri Kerminen, Kemira's president and CEO.

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Metsä Tissue, Finland, reports that Paavo Liestalo, SVP Marketing and Business Development, Consumer Business, will leave the company on May 7. "We thank Paavo Liestalo for his valuable contribution and wish him every success in his future challenges in a different industry," Metsä Tissue said in a statement.

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UPM, Helsinki, Finland, has combined its group level Finance and Control and Strategy under one management. At the same time, the company announced several appointments of senior level strategists into the Management Teams of its Paper as well as Energy and Pulp Business Groups, effective May 1.

Tapio Korpeinen has been appointed CFO, and will also be responsible for Corporate Strategy. Korpeinen is currently president of the Energy and Pulp Business Group and has previously been the executive VP, Strategy. He continues to be a Member of the Group Executive Board, and will also be responsible for the strategic holding in the energy company Pohjolan Voima as well as UPM's Sourcing and Logistics and Information Technology functions.

The company's current CFO Jyrki Salo will leave the company on his own initiative and by mutual agreement. Heikki Vappula has been appointed president, Energy & Pulp Business Group and a member of the Group Executive Board, reporting to the CEO. Vappula is responsible for UPM's Sourcing since 2006. Prior to that he held several business management positions in Nokia's different businesses.

Anu Ahola has been appointed senior VP, Strategy Development, Paper Business Group, reporting to Jyrki Ovaska, president, Paper Business Group. Martin Björnström has been appointed senior VP, Strategy Development, Energy and Pulp Business Group. He will report to Vappula. Kari Ståhlberg has been appointed senior VP, Corporate Strategy, reporting to Korpeinen.

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TAPPI News

If there's a best time to implement lean manufacturing into your operations, this is it. TAPPI is offering – 2010 TAPPI Lean Manufacturing - Flexo & Die Cutters – May 25-27 at TAPPI headquarters near Atlanta – an intensive three-day course focused on running Die Cutters and Flexo Folder-Gluers at maximum efficiency. The course is led by Dick Target, one of the industry's most well-respected and knowledgeable experts in lean manufacturing.

Target will concentrate on proven methods, such as Centerlining, "Time and Register" calibration, vendor certification, and Ink management. Other topics include zeroing the gear train in the press, implementing a successful Five-S program, tools for effective Waste Reduction, tooling use and purchase, and anilox roll care and maintenance. Presented in a direct, easy-to-understand manner, this course is valuable for everyone from senior operators and maintenance technicians to plant management.

Early bird registration ends at the end of this month, April 30. And, with a $200 savings for early registration, this course is just too important to miss. CEUs are available.

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The corrugated industry's esteemed CorrPak® 2010 Competition is open to ALL corrugated manufacturers worldwide. Entries for corrugated package products manufactured between August 1, 2008 and August 1, 2010 are now being accepted. The competition identifies and recognizes the finest commercially produced corrugated package products in the industry. Sponsored by TAPPI's Corrugated Packaging Division, the CorrPak® 2010 Competition is held every other year. Don't miss this one: Deadline for entries is Friday, August 27, 2010.

View or print the rules and entry requirements.

Individuals or companies may submit more than one submission for consideration, even in the same category. The CorrPak Competition is an exceptional way to showcase outstanding creativity and ingenuity. The CorrPak Competition entries on display at the 2010 Corrugated Week conference will provide an enlightening glimpse of some of the industry's finest work. For previous examples, view photos from the 2008 CorrPak Competition.

Winning entries will be displayed during the TAPPI 2010 Corrugated Week conference held October 4-8 in Baltimore, Maryland, USA and the winner will be announced during the TAPPI conference. This event offers the most effective networking opportunity possible – where attendees can meet with all the sales and technical reps from their suppliers – in the convenience of one place, where, as one past attendee put it, "you get away from the shop for a couple of days and really focus on broadening your knowledge base."

Good luck to all 2010 entries!

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The Awards Committee of the TAPPI Pulp Manufacturing Division is requesting nominations for the Division Technical Award (and Johan Richter Prize), and the Division Leadership and Service Award (and Joseph Perkins Prize). Nominations are requested for both awards, but only one will be selected to be awarded at the Fall PEERS (formerly EPE) Conference to be held in Norfolk VA.

The Division Technical Award is intended to recognize outstanding accomplishments or contributions, which have advanced the pulp manufacturing processes and methods. It was last awarded to Dr. Richard Berry of FPInnovations at the 2009 EPE Conference in Memphis, Tenn., USA. The Division Leadership and Service Award is intended to recognize an individual for outstanding leadership and exceptional service to the Division. The Division Leadership award was last presented to Dr. Gopal Goyal of International Paper Company at the 2008 EPE Conference in Portland, Ore.

Completed nomination forms should be sent to Alan Rudie at arudie@fs.fed.us or by mail to Alan Rudie, Forest Products Laboratory, One Gifford Pinchot Dr., Madison, WI 53726. The form may also be downloaded here.

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TAPPI's NET (Nonwovens Engineers & Technologists) Division is pleased to announce that plans are underway for 2010 NET INC. (Nonwovens Engineers & Technologists Innovative Nonwovens Conference). The conference will take place November 10-12, 2010 in Raleigh, N.C., USA.

Sponsored by TAPPI and the Nonwovens Institute (NWI), NET INC. is the only technical conference developed by nonwovens engineers and technologists.

NET's acronym comes from its makeup of nonwovens engineers and technologists. Division members come from a variety of disciplines – technical directors, engineers, professors, research and development managers, sales and marketing professionals, and corporate management. They work collaboratively in volunteer groups to share knowledge with peers throughout the world in all segments of the nonwovens industry – from hygiene and fabrics to filtration, insulation and more.

Those wishing to learn more about participating in the development of this event can contact Craig McKinney, program manager, cmckinney@tappi.org, +1-770-209-7294.

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Offered for the first time in years, TAPPI is pleased to unroll the Tissue Runnability Course, April 19-21, 2010 – an essential program for paper professionals at TAPPI's Atlanta headquarters. This course offers a comprehensive understanding of the tissue making process at many levels that can be applied immediately on the job. Instructional topics are focused on helping attendees improve the quality of their products, diminish waste and poor output and reduce frustrating down-time. The course material is designed with the objective of helping participants thrust production into high gear.

The Tissue Runnability Course is designed expressly for engineers, machine supervisors, technical resources, lead operators and technical personnel in tissue and towel mills. The three-day event covers the impact of recycled furnishes on paper characteristics, the principles of wet-end chemistry with machine operation, cleaning and conditioning of felts and wires, causes of tissue runnability problems in the press/Yankee/hood drying systems, identifying improvement opportunities on the dry-end of the paper machine, and pinpointing problems with the Yankee dryer steam, coating, and hood systems to increase machine productivity. The course schedule is led by industry-recognized instructors.

Registration for this course has been so robust, the training room has moved to a larger venue – the Hilton Atlanta Northeast in Norcross, Ga. This means, you can stay in the same location as the training sessions for even more convenience. Lodge Where You Learn!
Hilton Atlanta Northeast
5993 Peachtree Industrial Blvd
Norcross, GA 30092
Telephone: +1.770.447.4747

Tissue Runnability is still open, but prompt registration is still encouraged for this course!

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Early discounted registration is now open for the 2010 BioPro Expo™ and Conference, slated for August 24-26 at the Cobb Galleria Centre in Atlanta. Providing program content and comprehensive exhibits created with multiple industries in mind, BioPro Expo™ explores practical methods for transitioning a variety of biomass feedstocks into energy and biofuel. This unique event will bring together diverse communities ranging from forest, agriculture, and biorefinery operations to power companies and technology suppliers – offering the Southeast's most powerful educational and professional networking experience in the bioenergy arena.

BioPro Expo will include in-depth case studies and technical sessions from experts in a variety of industries. In addition, there will be a comprehensive tradeshow and hands-on technology interaction. Additional input from governmental agencies will supplement this experience with perspective on the rapidly changing regulatory and funding environment impacting renewable energy efforts.

Registration fees are $485 for TAPPI members and $746 for non-members, if confirmed by July 2, 2010. Onsite registration is $735 for TAPPI members and $1,125 for non-members. Registration information is available at www.bioproexpo.org.

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A Call for Presentations/Posters has been issued for the 2010 TAPPI International Conference on Nanotechnology for the Forest Products Industry, 27-29 September, 2010, in Espoo, Finland. This annual, internationally recognized event brings together leading researchers, industry experts, government representatives, and other stakeholders to share  advances and perspectives on nanotechnology-based products for the forest products and related industries.

To leverage research advances and offer participants new opportunities for knowledge sharing, the 2010 Technical Program Committee invites contributions from participants working with nano-enabled bio-materials, products, and their processing. Analysis of challenges and trends in emerging markets for forest products that are based on nanotechnology are sought to provide a foundation for new research and industrial activities. The organizers also  encourage submissions on other aspects of nanotech products including law, policy, economics and environmental health and safety. View the Call for Papers.

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"You will either step forward into growth or you will step back into safety."
 
-- Abraham Harold Maslow (1908-1970), psychologist and writer
.
Share YOUR favorite advice or interesting ideas -- about life, business, the industry, work or leadership -- by sending in a quote to share with other Over the Wire readers. Email your quote suggestions, along with your name and company information, to mshaw@tappi.org. We value the input of our OTW readers.
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Ken Patrick Ramesh Gupta Larry N. Montague
Editorial Director International Editor President and CEO
770-209-7340 bsc_rcg@hotmail.com lmontague@tappi.org
kpatrick@tappi.org    
30 years' experience writing for the pulp,    
paper, packaging, and allied industries    
     
Karen Roman
Maria Luisa Valencia Eric Fletty
Production/Distribution Editor International Editor Vice President, Operations
770-209-7416 mlvalencia@une.net.co efletty@tappi.org
kroman@tappi.org    
     
  Shane Holt  
  Integrated Media Director, Naylor, LLC  
  352-333-3345  
  sholt@naylor.com  

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