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Travels with Larry Archive
Thursday, June 17, 2010
members edition
Honeywell
Weekly Spotlight
My father always told me that you could tell a great deal about an individual by what people said about them when they were not around. He also said that a person is reflected in the actions of those whose lives he influenced.
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Stora Enso, Stamford, Conn., USA, this week signed an agreement to provide its Memori card product to New-Jersey-based Meridian Health's electronic Health Journal for outpatient pain monitoring.
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TAPPI 's annual PaperCon Conference and Trade Fair, which took place May 2-5 in Atlanta, Ga., USA, had more than 1,200 registered attendees and 70-plus exhibiting companies, the highest ever for the three-year old event, and a 60% increase over 2009.
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Market Roundup
For the seventh straight month, U.S. containerboard paper production rose sharply compared with last year.
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U.S. domestic box shipments improved for the fourth straight month, inventories continued to drop, and operating rates remained high.
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On the surface, market pulp reports look OK, but currents below the surface are increasingly troubling.
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Total U.S. Kraft paper shipments were 126,100 tons, representing an 11.7% increase over May 2009, but 800 tons less than April 2010.
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Pulp & Paper
At a ceremony last week in North Carolina, Gov. Bev Perdue announced that Clearwater Paper Corp., Spokane, Wash., USA, has chosen Shelby as the location to build its newest tissue facility.
Learn More...
 
CMPC Celulosa's Santa Fe mill in Chile has ordered equipment from Andritz, Graz, Austria, for a capacity increase of its No. 2 pulp production line
Learn More...
 
M-real Corporation, part of Metsäliitto Group, Finland, this week agreed to divest part of its Reflex mill in Finland to Metsä Tissue Corp., also a part of Metsäliitto Group, for approximately EUR 10 million.
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NewPage Corp., Miamisburg, Ohio, USA, this week announced that E. Thomas Curley has resigned as president and CEO and as a director of NewPage and its affiliates.
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Smurfit Kappa in Germany has placed an order with Andritz, Graz, Austria, for a new PrimeCoat film press with a working width of 7.6 m and a roll width of 7.9 m. Its design speed is 1,200 m/min.
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rctic Paper, Sweden, reports that the Swedish Royal Court has selected its design paper, Munken, for invitations and other printed items for the impending Royal Wedding in the Stockholm Cathedral on June 19.
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Metsä Botnia, Finland, reportedly has concluded a preliminary sales agreement with an Asian buyer for parts of the machinery of its Kaskinen mill, which was closed in March 2009.
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Containerboard/Packaging
The Newark Group, Cranford, N.J., USA, this week announced that it has filed a voluntary petition under Chapter 11 in the U.S. Bankruptcy court in Newark, N.J. The company seeks court approval of its prepackaged plan of reorganization.

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PaperWorks Industries, Philadelphia, Pa., USA, and the United Steelworkers (USW), Pittsburgh, Pa., this week ratified a three-year collective bargaining agreement, applicable at PaperWorks' Philadelphia and Wabash mills.
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SIG Combibloc, Neuhausen, Switzerland, reports that it is investing in a packaging plant in Brazil.
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RockTenn, Norcross, Ga., USA, announced that its Specialty Paperboard Products mill in Chattanooga, Tenn., has achieved certification to Forest Stewardship Council's (FSC) chain of custody (CoC) standards.
Learn More...
 
New Products
Appleton Coated, Kimberly, Wis., USA, explains that its new "Print with Purpose" is designed to provide insight and inspiration to decision-makers involved in choosing print, and to all who play a role in its creation and execution.
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Mohawk Fine Papers, Cohoes, N.Y., USA, and Fasson Roll North America/Division of Avery Dennison, Mentor, Ohio, have partnered to introduce Superfine Premium Label, a specialty label grade manufactured specifically for high-end packaging that requires wet strength labeling systems.
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Published Pricing
Papierfabrik August Koehler AG, Germany, willt increase the price for its Reacto carbonless paper by 8% to 10%, with deliveries beginning July 1.
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Brigl & Bergmeist, Niklasdorf, Austria, has announced a price Increase of 6% - 8% on its label and flexpack papers, beginning July 1.
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Sustainability
Metsäliitto, Finland, reports that Riikka Joukio has been appointed senior VP, Sustainability and Corporate Affairs.
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People
TimberWest Forest Corp.,Vancouver, B.C., Canada, announced the appointment of Robert (Bob) Allen to the position of VP Finance and CFO, effective beginning this week.
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Cham Paper Group, Switzerland, has named Patrick Schmid its new CFO. Schmid has considerable experience in both the financial and the paper industry.
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TAPPI News
Abstracts for 2010 NetINC. (Innovative Nonwovens Conference) are due June 25, 2010.
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The ASPI 2010 Fall Customer Alignment Meeting is set for September 27-29, 2010 in Memphis, Tennessee, USA.
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The TAPPI Introduction to Kraft Pulping and Bleaching Course -- August 9-10 -- covers in only two days the introductory elements of four other excellent, more in-depth TAPPI courses on the same topics.
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Join the TAPPI Consulting Council, or TCC, a premium service that connects qualified and competent TAPPI members who are subject matter experts with potential clients.
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Program to feature multiple tracks focusing on a variety of hot topics
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An audience of approximately 200 people attended the Interactive Troubleshooting Session at the 2010 PLACE Conference.
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Be among the first in the industry to have a copy of Paper Machine QCS – Volume 1: Measurement Systems and Product Variability.
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Nominations for the major TAPPI 2011 awards are due by August 1, 2010.
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Make plans now to attend the 2010 TAPPI Extrusion Coating Course, August 24-26, 2010 in Charleston, South Carolina USA.
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Feel confident and knowledgeable among operators, technical staff, researchers, suppliers and customers.
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"He who thinks by the inch and talks ...
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Nalco Company
EKA Chemicals Inc.

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Metso Paper
Weekly Spotlight

My father always told me that you could tell a great deal about an individual by what people said about them when they were not around. He also said that a person is reflected in the actions of those whose lives he influenced.

I heard a few people saying some very special things about an individual over the past few weeks. "He was truly a visionary." "He was a great leader." He believed that you had to earn your stripes before you could attend a TAPPI meeting." "He was a family man, a loving husband, father, grandfather, brother and mentor."

I have also seen how special he was by his reflection in his son Jeff, and in some of his current and former employees—Bruce Foster, Rob Hammond, and Ginger Cushing. I have had the opportunity to work with these four in various ways during the past few years with TAPPI. They all possess a very special attitude, work ethic, and personality that were influenced by Dan Siegel.

Daniel Siegel, 84, of Westport, CT, died June 9, 2010, at home. He lived in Westport since 1953 with his wife Alice.

Dan was the founder and chair of Mica Corp., a supplier of primers, coating, and adhesives to the flexible packaging industry. His innovations in water-based adhesive technology were game changers of their time and continue to be the standard for world-wide manufacturers of flexible packaging materials.

Dan joined TAPPI early in his career in 1968. He attended many TAPPI events over the years and played a key role in encouraging his employees to become active in TAPPI. As all great people, Dan will be missed by all of those he influenced directly as well as those who have been influenced by his reflection. Our thoughts and prayers go out to his family and friends during these trying times.

Larry N. Montague
President/CEO
TAPPI

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Stora Enso, Stamford, Conn., USA, this week signed an agreement to provide its Memori card product to New-Jersey-based Meridian Health's electronic Health Journal for outpatient pain monitoring. Meridian Health, a not-for-profit health care organization, maintains the Health Journal to help understand patient responses to pain medications and treatments in outpatient environments such as oncology practices and pain management clinics.

"We are working closely with Meridian to provide our design and packaging expertise to produce a fluid and tactile application for effective outpatient monitoring," says Ralph Mendoza, sales and marketing manager at Stora Enso. "Understanding and listening to patients' challenges is the key as we develop the solutions to meet their needs through fiber-based, easy-to-use, scaleable packaging applications."

Previously, Stora Enso has successfully combined paperboard with electronics in its award-winning intelligent solution for pharmaceutical packaging, the Stora Enso Pharma DDSi. The new Memori card builds on the same technical platform. Stora Enso is collaborating with Cypak in Sweden for the creation of the system environment in terms of the technical platform and the microchip used. The Health Journal for pain program is the one of the first projects resulting from the recently announced intended partnership between Cypak and Meridian Health.

"One of the most common reasons patients see their physician is because of pain," says Sandra Elliott, Director, Consumer Technology and Service Development at Meridian Health. "Unfortunately, it is very hard for patients to keep accurate accounts of their pain, and subsequently physicians can only rely on the patients memory or incomplete notes to determine if their regimen is working well for the patient. We expect the health journal will not only make it easy for patients to keep better track of their pain and other symptoms but also translate the information into easy to read objective data trended over time."

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TAPPI 's annual PaperCon Conference and Trade Fair, which took place May 2-5 in Atlanta, Ga., USA, had more than 1,200 registered attendees and 70-plus exhibiting companies, the highest ever for the three-year old event, and a 60% increase over 2009. "This was clearly the best PaperCon ever," said Larry N. Montague, TAPPI President and CEO, "It is clear the industry has turned around and the informal discussions and presentations I heard reflected that. The success can also be attributed to volunteer organizers from our PIMA, Coating, Engineering, Paper & Board, Process Control, and Process and Product Quality Divisions who put together an outstanding program."

Keynote speaker Nina B. Link (photo at right) from the Magazine Publishers of America spoke to a standing room only crowd and gave a frank, yet optimistic portrayal of the challenges facing publishers today. "Magazine publishers must find innovative ways to work with electronic media as well as find more efficient ways to publish their products. But paper is still a vital link in the supply chain," she said.

Jim Hanna, director of Environmental Affairs from Starbucks Coffee Co., shared Starbuck's environmental philosophy and explained the company's goal to develop a 100% recyclable cup by 2012. He called on the assembled pulp and paper industry experts to help Starbucks meet this challenge and shared anecdotes about being both environmentally responsible and responsive to consumer demands.

Four pulp and paper company presidents took the podium to discuss the enormous transformational changes their companies have faced. Suzanne Blanchet, president and CEO of Cascades Tissue Group, described how her company has grown through acquisition to become a $4 billion corporation producing tissue and packaging products, mostly from recycled fiber. Today Cascades is the fourth largest tissue producer in North America.

Randy Nebel, president of Longview Fibre Paper and Packaging described his company's "transformation to excellence." Longview established a framework on which to operate based on safety and environmental aspects supporting operational excellence, capital management, and commercial excellence. It also set about instilling a performance-based, results-driven culture in which the top 15% of employees receive career mentoring.

David Scheible, president and CEO of Graphic Packaging gave a lively presentation during which he described some of the changes that have taken place within his company, a $4.2 billion corporation that through acquisition has increased its percentage of the North American Folding Carton Market from 13% in 2001 to 32% today. "A good strategy is not enough," said Scheible. "You also need good execution."

Don Rubright, president and CEO of CP Kelco, described approaching transformation within his company by analyzing the "commercial gearing" of the company and in doing so discovered that the company wasn't structured to meet customer needs. Today the company has changed so that innovation and technological innovations can now exist at any point.

Many PaperCon visitors were drawn by TAPPI's first ever Sustainability Forum, which provided an overview of existing and developing sustainability standards, metrics and labeling practices. Speakers from Colgate-Palmolive, MeadWestvaco (MWV) and GreenBlue highlighted the program. The program was well received and a second Sustainability Forum is being planned for PaperCon 2011.

 PIMA's dynamic program featured two tracks exploring critical areas for the pulp and paper industry. Innovation for pulp and paper was discussed in three sessions which touched on both the corporate cultural factors nurturing innovation and specific technological developments in the pipeline at leading supplier companies. Nobel Laureate and global energy policy expert Dr. Marilyn Brown highlighted a series of presentations on carbon footprinting, carbon life cycle analyses, changing energy issues and policies, national energy security, global trade, balance of payments, altered business sustainability fundamentals, print versus digital carbon tradeoffs, and the emergence of biofuels/biochemicals businesses.

Innovation was highlighted from the perspective of a paper company (Appleton), suppliers (Metso, ABB, EKA Honeywell, ACA Systems), and several innovation experts.

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Market Roundup

For the seventh straight month, U.S. containerboard paper production rose sharply compared with last year, according to the AF&PA (Washington, D.C., USA) U.S. Containerboard Statistics Report for May 2010. Total production last month increased 238,100 tons or 9.1% over May 2009. Total production amounts increased over April 2010, with average daily production up 0.3%. Year-to-date 2010 production increased 12.6% over 2009. The containerboard operating rate for May 2010 rose 12.2 points over May 2009 to 95.2%.

As with total containerboard, linerboard production experienced seven months of large increases over last year. May's production level was 10.4% higher than in May 2009. Linerboard production rose as did the average daily production compared with April 2010. Production for exports decreased 4.0% over this time last year but increased 1.9% compared with April 2010. Linerboard's May operating rate mirrors the rise, increasing 12.6 points over May 2009 to 95.5%.

May corrugating medium production was up 43,500 tons or 5.8% from May 2009. May's production rose 1.3% compared with last month, but the average daily production showed 2.0%. Exports reported an increase, posting a 26.8% rise over same month last year but fell 10.0% from April 2010. The May corrugating medium operating rate of 94.5%, showing an increase of 11.0 points over May 2009.

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U.S. domestic box shipments improved for the fourth straight month, inventories continued to drop, and operating rates remained high, reports Mark Wilde, senior analyst with Deutsche Bank. The April $60/ton containerboard price hike was implemented and one producer (Longview Fiber) has just introduced an additional $60/ton price hike for July 1. Industry margins are poised to expand nicely in the second half of this year. The rising U.S. dollar and global economic uncertainty do represent risks, however, Wilde notes.

Box shipment volumes rose 5.3% y/y in May (same number of shipping days), Wilde continues. May figures compare with "blended" (actual and average week numbers) comps of +4.8% in April, +2.1% in March, +6.0% in February, and -1.6% in January.

Total containerboard inventories fell 6.5% m/m in May. Combined mill and box plant inventories fell 134,200 tons m/m. Looking over the past 10 years, inventories typically fall by an average of 53,700 tons m/m in May. At 1.93 million tons, industry inventories (box plants + mills) are at 30-year lows, Wilde points out.

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On the surface, market pulp reports look OK, Wilde says, but currents below the surface are increasingly troubling, he adds. Market pulp prices rose $20 - $30/metric ton in June—potentially the last leg in the 13-month price runup. U.S. and Europe appear OK, but Asian markets (especially China and Korea) seem weak. Pending restart of nearly 2 million metric tpy in Canada and China and the return of Chilean mills suggests that prices may be reaching near-term peak.

"In Europe, we find a combination of rising U.S. dollar prices and a falling Euro very troublesome. A number of Deutsche Bank trade sources are pointing to mills increasingly eager to cut 'deals.' Some such reports suggest that prices on 'spot' deals could be falling markedly. We are working to gain a better sense of the degree to which markets may have shifted direction," Wilde notes.

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Total U.S. Kraft paper shipments were 126,100 tons, representing an 11.7% increase over May 2009, but 800 tons less than April 2010, according to AF&PA's May 2010 Kraft Paper Sector Report released this week. Total kraft paper inventory was 68,200 tons, 5,400 tons more than last month.

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Chesapeake Energy Corporation
Pulp & Paper

At a ceremony last week in North Carolina, Gov. Bev Perdue announced that Clearwater Paper Corp., Spokane, Wash., USA, has chosen Shelby as the location to build its newest tissue facility. The company had previously announced the project, which includes a Through-Air-Dried (TAD) paper machine and seven converting lines capable of producing ultra grades of private label tissue products.

"After nearly a year of analysis—looking at important aspects such as current customer base and growth opportunities, logistics, and transportation infrastructure, available workforce skills and abilities, tax structure, incentives and quality of life, and subject to local and state incentives being granted, Clearwater Paper has chosen Shelby to be the home of our newest tissue facility," said Gordon Jones, chairman, president and CEO of Clearwater Paper. "From the Governor to the Department of Commerce to Cleveland County's economic development team, we found North Carolina to be not only very responsive to our company's business needs, but endowed with a dedicated, positive group of people who are a pleasure to work with."

Clearwater Paper intends to move forward as soon as possible with construction of the facility, which will include a 200-in. TAD tissue machine together with a total of seven converting lines, and has estimated the project will cost $260 million to $280 million. Over the next 12 years, state and local incentives associated with the project are expected to be worth nearly $50 million in the aggregate.

"The Shelby facility will increase our ultra and premium offerings to our existing Southern and East Coast customers," said Bob DeVleming, VP, consumer products division. "We believe it will also create new opportunities to expand our private label consumer tissue business to other retail grocery chains in the region, and we are very pleased with the initial work by North Carolina officials. We are ready to get started."

The company intends to break ground during the third quarter of this year. Build-out and startup for the converting lines will come in phases, with the first two lines expected to begin production during the second half of 2011. The paper machine is expected to take two years to build from completion of engineering, and the company anticipates beginning production on the machine in the second half of 2012. At full production capacity, the facility will produce approximately 10 million cases or 70,000 tons of bathroom tissue and household towels annually.

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CMPC Celulosa's Santa Fe mill in Chile has ordered equipment from Andritz, Graz, Austria, for a capacity increase of its No. 2 pulp production line. The delivery includes a new debarking and chipping line for eucalyptus, as well as equipment for and modifications to the existing fiberline, pulp drying line, and white liquor plant. All of these areas were supplied on an EPC basis by Andritz Pulp & Paper in 2006. The new order value amounts to approximately EUR 40 million. Startup after the upgrade is scheduled for September 2011.

The original design capacity of Line 2 was 780,000 metric tpy. The upgrade and new equipment will enable the line to produce 1,126,000 metric tpy of prime grade market pulp. Andritz received an order to upgrade the mill's existing Andritz recovery boiler to support this capacity increase in October 2009.

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M-real Corporation, part of Metsäliitto Group, Finland, this week agreed to divest part of its Reflex mill in Finland to Metsä Tissue Corp., also a part of Metsäliitto Group, for approximately EUR 10 million. The planned divestment includes PM 5 and related real estate as well as certain infrastructure assets. Metsä Tissue is planning to convert the paper machine to grades that are not competing with M-real's grades. Based on preliminary plans, Metsä Tissue would employ about 50 employees, reducing the corresponding amount of redundancies as earlier agreed at the Reflex site.

If the transaction is consummated as planned, M-real books a positive EUR 15 million non-recurring item in Speciality Papers business area's operating result related to the transaction proceeds and the partial reversal of earlier announced personnel cost provisions. Cash impact would be approximately EUR 10 million positive, taking into account certain investments needed in the Premium Papers production at the site. The transaction is expected to be closed during the fourth quarter of this year. M-real will continue to further develop the paper park concept at Reflex.

M-real had announced this past May 21 that the Reflex mill will be developed based on a paper park concept and that the target is to find industrial partnerships and thus create new jobs at the mill site. At the same time, it was announced that negotiations to reduce M-real Zanders mills' headcount by 220 were finalized and the Speciality Papers business area's second quarter operating results would include an approximately EUR 16 million non-recurring cost provision.

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NewPage Corp., Miamisburg, Ohio, USA, this week announced that E. Thomas Curley has resigned as president and CEO and as a director of NewPage and its affiliates. In addition, NewPage announced that the boards of directors of NewPage and its affiliates have accepted the resignations of Mark A. Suwyn as chairman and a director of the companies, and the resignation of Michael Edicola as VP, human resources.

NewPage also announced the appointment of Robert L. Nardelli as a director and non-executive chairman of the board of NewPage and its affiliates. Nardelli is currently the CEO of Cerberus Operating and Advisory Company, an affiliate of the controlling stockholder of NewPage, a role that he will continue while acting as non-executive chairman of NewPage and its affiliates.

"We thank Mark, Tom, and Mike for their accomplishments at NewPage, and wish them well in their future endeavors," Nardelli said. "I will be involved on an ongoing basis as NewPage undergoes this transition to new leadership."

The NewPage board has formed an executive search committee to identify, interview, and recommend to the Board a new CEO. The committee will consider both internal and external candidates for the position.

NewPage is the largest coated paper manufacturer in North America, based on production capacity, with $3.1 billion in net sales for the year ended December 31, 2009. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint, and specialty papers. The company owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin, and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.4 million tons of paper, including 3.2 million tons of coated paper, 1.0 million tons of uncoated paper, and 200,000 tons of specialty paper.

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Smurfit Kappa in Germany has placed an order with Andritz, Graz, Austria, for a new PrimeCoat film press with a working width of 7.6 m and a roll width of 7.9 m. Its design speed is 1,200 m/min. The scope of supply also includes an air glide system and a threading system (PrimeFeeder). Startup is scheduled for February 2011.

The applicator die of the PrimeCoat film press applies different coatings and coat weights to either side of the paper web. A metering rod defines the quantity of coating, and excess is returned to the system. Due to its compact design, the PrimeCoat film press requires very little space in the production line.

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Arctic Paper, Sweden, reports that the Swedish Royal Court has selected its design paper, Munken, for invitations and other printed items for the impending Royal Wedding in the Stockholm Cathedral on June 19. In preparation for the wedding of Crown Princess Victoria and Daniel Westling, all invitations have been printed on Munken Pure.

The Court's own profile manual has formed the basis for the design. Against the royal seraphim-blue and summer-like lime blossom green, which were chosen for the wedding, the cream shade of Munken Pure created perfect harmony, with embossing and gold foil as effects. As an additional compliment, the high white design paper, Munken Polar, is also being used as an entry and response card to the actual wedding in the Stockholm Cathedral.

Arctic Paper Munkedals, the mill where Munken design paper is produced, is located adjacent to the Gullmars Fjord in Bohuslän, Sweden. Because it is located amid a sensitive natural environment, the company has a long tradition of certified environmental work. Today, Arctic Paper Munkedals is one of the foremost mills in the world with regard to water usage and natural purification processes, the company emphasizes.

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Metsä Botnia, Finland, reportedly has concluded a preliminary sales agreement with an Asian buyer for parts of the machinery of its Kaskinen mill, which was closed in March 2009. Dismantling of the machinery will begin in August. The buyer's subcontractor will be in charge of the dismantling, and as part of the project some of the existing buildings also will be demolished. The buildings that will be torn down are not well suited for other activities than the process industry, Botnia notes.

The dismantling project will take a little more than one year, and at the peak there will be approximately 80 persons working at the site, mostly employed by the buyer's subcontractor. Botnia's part employs in addition to the project staff three to four persons on a temporary basis and some subcontractors.

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Containerboard/Packaging

The Newark Group, Cranford, N.J., USA, this week announced that it has filed a voluntary petition under Chapter 11 in the U.S. Bankruptcy court in Newark, N.J. The company seeks court approval of its prepackaged plan of reorganization. The company reports that its two impaired creditor classes voted in favor of the prepackaged plan by greater than 90%. Likewise, the company's two impaired equity interests also voted in favor of the plan by greater than 90%. Thus, the company enters Chapter 11 with a fully supported prepackaged plan. The Court will hold a hearing on July 30 to consider confirmation of the plan and that the company hopes to exit Chapter 11 shortly thereafter.

The court heard and approved 11 first day motions. All 11 were approved substantially as submitted. Most importantly, the court approved the DIP financing order allowing the company to access its DIP loans. The court also approved the company's motion to pay all prepetition vendors in full in the ordinary course.
Subsequently, the company closed on its two DIP loans, a $50 million revolver and a $110 million term loan led by ORIX Finance. Both loans have now funded.

"We are pleased to have the support of our note holders and lenders as we move forward to strengthen our balance sheet and position the company for profitability," said Robert Mullen, president and CEO of The Newark Group. "As we navigate this process, we will continue to focus on customers, servicing them better than anyone else and developing product solutions to address their most difficult issues."

None of the company's non-U.S. subsidiaries or affiliates were included in the filing. During the Chapter 11 case, thecompany will continue normal operations under current management and does not anticipate any changes to its overall business or its ability to produce quality products.

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PaperWorks Industries, Philadelphia, Pa., USA, and the United Steelworkers (USW), Pittsburgh, Pa., this week ratified a three-year collective bargaining agreement, applicable at PaperWorks' Philadelphia and Wabash mills. "The ratification of this agreement, which applies to hourly employees at both of our paperboard mills, provides our workers with wage increases that are competitive on both the local and industry-wide levels," says Dan Sassi, VP, Human Resources. "This agreement also provides workers with innovative healthcare benefits—not only will our workers be earning more, we're helping them save money in other essential areas as well."

PaperWorks Industries notes that it has launched a number of innovative programs in its mills since its inception in 2008. Its flagship safety program, SafetyWorks, has lowered accident rates in the mills and helped institute a safety culture that empowers workers to ensure their environments are secure. A new initiative, HealthWorks, is currently being implemented to put more tools in employees' hands as regards financial management, wellness, health planning, and mental health. "We enjoy positive relations with our manufacturing employees," Sassi says. "We're proud to work with our labor force to keep innovating to improve productivity through flexible scheduling and other accommodations. Our safety record at the mills is among the best in the industry."

Company President and CEO Thomas J. Garland agrees that this benefits all parties. "We value and appreciate our manufacturing employees at PaperWorks. This agreement ensures a continuation of our strong relationship with our employees, as well as ongoing stability and excellence across the board for all of our stakeholders," he says.

PaperWorks' paperboard division manufactures approximately 300,000 tpy of 100% recycled paperboard. Its products cover a broad range of end uses and are generally consumed by the consumer packaging market. The company employs approximately 1,000 employees at nine North American locations, and has annual sales in excess of $325 million.

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SIG Combibloc, Neuhausen, Switzerland, reports that it is investing in a packaging plant in Brazil. The production site for carton packs will be built in Campo Largo, in the Brazilian Federal State of Paraná. Total surface area of the plant will be 130,000 square meters, 12,000 square meters of which will be constructed during the first phase of building. Construction is already under way, and the first carton packs are expected in the second half of next year. The project involves a total investment of EUR 90 million and several development stages are planned. Once the first stage is completed, production will begin with an annual capacity of one billion carton packs. This can be doubled to two billion packs annually over a short period of time.

Rolf Stangl, CEO of SIG Combibloc Group, notes that "Brazil offers an outstanding environment from an overall economic perspective. Its GDP is enjoying significant growth—an increase of 5.5% is expected for this year. In international terms, it is one of the biggest economic growth markets. Its need for long-life packed food is growing. After China, Brazil has the highest consumption of products in aseptic carton packs—about 10 billion units per year."

According to SIG Combibloc, market analyses indicate that South America will record the greatest growth in demand for milk products, again following China. Aseptic carton packaging will have a clear role to play in this process. Additional demand by 2012 is estimated at 1.5 billion liters of long-life milk in aseptic carton packs, amounting to about 30% of overall growth world-wide. Equally positive development is also expected in the area of alcohol-free and non-carbonated drinks, particularly juices, nectars, and fruit and soy-based drinks. The forecast for South America by 2012 in this regard is for an additional 500 million liters of long-life product packed in aseptic cartons. This represents a 40% share of expected growth world-wide.

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RockTenn, Norcross, Ga., USA, announced that its Specialty Paperboard Products mill in Chattanooga, Tenn., has achieved certification to Forest Stewardship Council's (FSC) chain of custody (CoC) standards. NSF International Strategic Registrations, Ltd. independently audited and validated the mill's sustainable fiber sourcing practices against these standards.

Established in 1917, RockTenn's Chattanooga mill became the South's first recycled paperboard mill.. Today, it produces 100% recycled, uncoated specialty paperboard focusing on solid fiber partitions, tubes, cores, various chip grades, and paperboard.

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New Products

Appleton Coated, Kimberly, Wis., USA, explains that its new "Print with Purpose" is designed to provide insight and inspiration to decision-makers involved in choosing print, and to all who play a role in its creation and execution. Detailed statistics and supporting commentary explain how printed communication drives action and delivers results. The new resource defines the role of print in the rapidly-evolving marketing landscape and demonstrates its positive impact on the bottom line.

Appleton Coated notes that it based the data-rich content of "Print with Purpose" on discussions with direct marketing professionals, industry thought-leaders, and the most current industry research. "We've found print's role in the marketing mix is as vital as ever," says Phil Cavalier, VP of marketing at Appleton Coated. "Print's engaging, tactile, and interactive qualities create a personal connection, and through this emotional association, brands are built. It is portable and influential. It's the preferred format for senior executives for gaining insightful, informative analysis. Across all audiences, print ignites action online, sparks interest and trial, and leads to sales, response, and loyalty."

Designed by The Thorburn Group in Minneapolis, Minn., "Print with Purpose" features images by Minnesota-based photographer Ben McKean and photo stylist Maureen Burns. The Hennegan Company of Florence, Ky., printed the piece using Appleton Coated's extra bright U1X:Green cover and text papers. The techniques described in the page-by-page production notes in "Print with Purpose" detail how the richly saturated photos and the bold solids maximized each finish in the U1X:Green family. A copy of "Print with Purpose" can be requested online.

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Mohawk Fine Papers, Cohoes, N.Y., USA, and Fasson Roll North America/Division of Avery Dennison, Mentor, Ohio, have partnered to introduce Superfine Premium Label, a specialty label grade manufactured specifically for high-end packaging that requires wet strength labeling systems.

Aimed especially at designers of wine labels, gourmet food, boutique confections, luxury products, etc., Superfine Premium Label is available in five distinctive finish and shade combinations: Smooth White, Smooth Softwhite, Eggshell White, Coral White, and Handmade White. It is certified for HP Indigo roll-fed presses and features a surface treatment that produces enhanced toner adhesion and exceptional printed results on offset, flexography, and digital presses.

"Superfine Premium Label combines the lush tactility and perfectly balanced white shade of Mohawk Superfine with a surface technology that dramatically increases the density of the ink film and reduces dot gain on press," said Dave Van de Water, director of Product and Market Development at Mohawk. "It's a perfect storm of product attributes. Superfine Premium Label offers perfect aesthetics, breakthrough print performance and unparalled flexibility for the printer's workflow. We are extremely excited to offer this product to the packaging industry

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Published Pricing

Papierfabrik August Koehler AG, Germany, willt increase the price for its Reacto carbonless paper by 8% to 10%, with deliveries beginning July 1. The company notes that "despite the already realized increases during the course of this year, the current sales prices are not sufficient to cover the exorbitant increase of pulp and other costs. With the eleventh increase of pulp prices within 12 months, pulp prices have reached a historical high. Only this year, costs for pulp have increased by 60%. This dramatic development could not be foreseen to such an extent and therefore another prompt adjustment of sales prices is necessary."

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Brigl & Bergmeist, Niklasdorf, Austria, has announced a price Increase of 6% - 8% on its label and flexpack papers, beginning July 1. The company notes that the paper industry continues to face increases in the cost of pulp, chemicals, and energy. "Added to this," it says, "we also have the strengthening of the U.S. dollar. And as most of our raw materials are purchased in dollars, then this affects us directly and immediately. Brigl & Bergmeister has no option but to pass on these higher costs."

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Sustainability
Metsäliitto, Finland, reports that Riikka Joukio has been appointed senior VP, Sustainability and Corporate Affairs. Joukio has previously held the position of VP, Marketing, for M-real Consumer Packaging, Finland. She assumes her new position with Metsäliitto on June 21.
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People

TimberWest Forest Corp.,Vancouver, B.C., Canada, announced the appointment of Robert (Bob) Allen to the position of VP Finance and CFO, effective beginning this week. Bob joins TimberWest with a strong background in both the British Columbia forestry industry and financial management with 20 plus years of experience building, leading, and advising corporations through complex restructurings, acquisitions-divestitures, and capital market transactions. He is the former CFO of Ainsworth, where he worked for some six years. He has also occupied senior roles at Skeena and Western Forest Products. He started his career in 1986 with PriceWaterhouseCoopers, where he worked for five years as Senior Audit Supervisor.

As previously announced, Bev Park, executive VP and CFO of TimberWest and president and COO of Couverdon Real Estate, will move full-time into the real estate role.

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Cham Paper Group, Switzerland, has named Patrick Schmid its new CFO. Schmid has considerable experience in both the financial and the paper industry. Since 2007, he has been director of finance of Cham Paper Group Switzerland, the main plant of Cham Paper Group. The previous CFO of the group, Nicolas Frochaux, who has been CFO of Cham Paper Group since mid-2007, will ensure a smooth handover to Schmid and be available for running projects until the end of this year, the company notes.

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TAPPI News
Abstracts for 2010 NetINC. (Innovative Nonwovens Conference) are due June 25, 2010.

Organized by the Nonwovens Engineers and Technologists (NET) Division of TAPPI in collaboration with the Nonwovens Institute at North Carolina State University, NetINC. is scheduled for November 10-12, 2010 in Raleigh, NC USA. NETInc. is the perfect forum for a new constituency of industry and academic researchers, the professionals from the nonwovens and affiliated industries and the academic community to enable connections and synergies that support capability development and innovation for industry growth. 

Organizers are looking for papers covering the following topics: Health & Well-Being, Safety & Security, Sustainability & the Environment, Energy & Infrastructure, and Emerging Technologies/Market Trends. View the Call for Papers. Back To Top
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The Association of Suppliers to the Paper Industry (ASPI) is pleased to announce that its 2010 Fall Customer Alignment Meeting will be held September 27-29, 2010 at the Peabody Hotel in Memphis, Tenn., USA, and will be hosted by Verso Paper Corp.  ASPI's Customer Alignment Meetings are designed to provide a forum for meaningful communication between the top executives of the Paper Industry and their suppliers.

"Verso is looking forward to welcoming suppliers and manufacturers within the Pulp and Paper Industry to Memphis for the ASPI Customer Alignment meeting," said Mike Jackson, Verso's President and Chief Executive Officer. "This forum offers an excellent opportunity for customers and suppliers to better understand each other's needs, as we work together to bring high quality pulp and paper products to consumers within the global marketplace."

As in past Customer Alignment meetings, Verso's top executives will spend a full day sharing how suppliers can support their corporate strategic directions.

Verso also plans to include a Mill Manager Roundtable, which will be facilitated by Joe Duffy, Vice President, Integrated Planning and Control.

ASPI, a non-profit association, is the leading association of companies that supply products and or services to the pulp, paper and board industry since 1933.  Member participation consists primarily of CEOs, owners, and senior management executives.  ASPI's mission is to assist its member supplier companies in providing increased economic benefits to their customers through collective knowledge, initiatives and efforts.  ASPI's unique value proposition is a combination of compelling program content and an influential business network.

Additional details on the program as well as registration information are available online at www.aspinet.org. Back To Top
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The TAPPI Introduction to Kraft Pulping and Bleaching Course -- August 9-10 -- covers in only two days the introductory elements of four other excellent, more in-depth TAPPI courses on the same topics.

This course will be held at the Kemira Training Room in Kennesaw, Georgia, and will help you:
  • Expand overall understanding of kraft pulp mill operations and bleaching processes
  • Broaden awareness of how one part of the process affects other operations
  • Demonstrate the affect of processes on kraft pulp quality
  • Build confidence for effective interaction among experienced process engineers and operators
  • Help you troubleshoot product quality problems

Why should your boss send you?

This course offers a fundamental overview of kraft mill fiber line operations.  It's perfect for anyone new to the kraft pulping processes, particularly engineers and operators.

View the Preliminary Course Schedule developed by instructor Dr. Michael Kocurek, one of the most recognized educators in the paper industry. He has taught undergraduates, graduates and in-mill courses for more than 3,000 industry professionals and operators for over 50 paper industry corporations and government agencies.  Register soon. Secure your seat before July 12 for the early-bird savings.  This course will sell out at 30 registrants.
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Join the TAPPI Consulting Council, or TCC, a premium service that connects qualified and competent TAPPI members who are subject matter experts with potential clients.

For consultants, TCC becomes a 24-hour business development rep. It also drives traffic to the consultant's site.  No site? No problem. It provides segment-specific marketing of the consultant's company and service capability on the TAPPI website. More importantly, it allows the consultant to take advantage of low-cost advertising that reaches decision makers needing expertise just like theirs.  In short, it's an excellent, cost-effective extension of the consultant's current marketing efforts.

Best of all, it allows consultants to negotiate fees and scope with the potential client who ultimately pays them directly. No middleman.

It delivers value that would cost them more than $64,000 a year for just a fraction of that cost. Want more details? Contact Kristi Ledbetter at kledbetter@tappi.org. Back To Top
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Formerly known as TAPPI Engineering, Pulping and Environmental Conference, the newly named TAPPI PEERS Conference is designed to answer the most pressing business and technical questions faced by pulp and paper companies as they manage raw materials, assets, regulatory requirements and production assets. With several focused tracks and more than 50 sessions, PEERS offers peer-reviewed papers, expert speakers, exclusive networking opportunities and new technologies that can help mills optimize operations. The following topics will be covered:
Business Trends (Sponsored by the PIMA Management Division of TAPPI)
Energy, Power and Recovery
Biorefinery
Corrosion and Materials
Practical Mill Engineering
Pulping and Bleaching
Recycling - 9th Research Forum on Recycling
Environmental

The PEERS Conference will also include workshops, a mill tour, Hot Topic Breakfast, a New Product Showcase, a Trade Fair, networking events, a spouse/guest program, a dinner cruise, and a 5K Fun Run.  Co-located with TAPPI PEERS this year is the 9th Research Forum on Recycling, co-organized by TAPPI and PAPTAC.  To accommodate tight budgets, one registration fee will allow attendees to access both conferences.  

For detailed information, go to www.tappipeers.org.
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From Left to Right  – Doug Howard -- Paper Engineering, Duane Smith -- Davis-Standard, Tony Lyons -- Imerys, Tom Dunn -- Printpack, George Fickau -- Coating Excellence International, Jim Lush -- Celplast Metallized Products, and Ginger Cushing – Michelman (Moderator). Presented remotely: David Roisum-Finishing Technology, and Giancarlo Caimmi-Nordmeccanica (Italy).

The 2010 TAPPI PLACE CONFERENCE focusing on Sustainability and Innovations in Flexible Consumer Packaging was held April 18-21, 2010 in Albuquerque, New Mexico, USA. With just under 300 registered attendees the event proved to be not only educational, but a great networking opportunity for both converters and brand owners.

An audience of approximately 200 people attended the Interactive Troubleshooting Session at the 2010 PLACE Conference. Each of the group of International panelists presented real work case studies on how they have used the TAPPI Press book "Roll and Web Defect Terminology" to solve real world troubleshooting problems faced in the web manufacturing and converting industries.

Two of these International panelists used interactive web technology to make their presentations.  Then an hour panel discussion using TWITTER allowed the audience to interact with this distinguished panel of experts with more than 250 years of troubleshooting
experience.

TAPPI President/CEO Larry Montague and TAPPI Vice President of Operations Eric Fletty both attended this session. Mr. Montague stated, "Bringing experts from around the world
into a single forum to address conference attendee's troubleshooting challenges significantly adds value to TAPPI Membership.  Interactive sessions like this, IS what TAPPI is all about!"  
 
For a full conference summary, please visit www.tappi.org/PLACE.
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You can be among the first in the industry to have a copy of Paper Machine QCS – Volume 1: Measurement Systems and Product Variability, an excellent resource to help paper machine professionals maximize output and minimize quality issues.

It covers five in-depth QCS measurements – Basis Weight, Moisture, Caliper, Ash and Color.

PLUS Volume 1 contains additional information about sensor performance measurement and reporting, impact of scanning, filtering, scanner designs and construction, and sensor calibration and correlation.

Paper Machine QCS, Volume 1 is a must-have to be competitive and productive in the papermaking industry.

Product Pricing:

List price $205
Member price: $135


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Nominations for the major TAPPI 2011 awards are due by August 1, 2010. The awards that may be presented in the upcoming year are:

•    Gunnar Nicholson Gold Medal Award - The Association's highest technical honor may be presented annually to recognize an individual or individuals for preeminent scientific and engineering achievements of proven commercial benefit to the world's pulp, paper, board, and forest products industries and the other industries that TAPPI serves.

•    Herman L. Joachim Distinguished Service Award - The Association's highest award for service, may be presented annually to recognize leadership and service which have significantly and demonstrably contributed to the advancement of the Association.

•    TAPPI Fellow - TAPPI Fellows are Individuals who have been members of TAPPI for not less than 10 years prior to the nomination, and who have contributed meritorious service to the Association and/or the paper and related industries. Retiring members of the TAPPI Board of Directors become Fellows automatically at the end of their term.

•    Paul W. Magnabosco Outstanding Local Section Member Award – The highest honor for Local Sections may be presented annually to recognize an individual for outstanding leadership and exceptional service to one or more Local Sections, which have resulted in significant and demonstrable benefits to the Local Section members.

The TAPPI Awards and Honors page has links to these awards which will show the qualifications required and links to the nomination forms that must be completed. You may submit all nomination forms by email to standards@tappi.org, or you may fax them to the attention of the awards department at +1-770-446-6947, or send by mail to TAPPI, Awards Department, 15 Technology Parkway South, Norcrosss, GA 30092, USA.

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Make plans now to attend the 2010 TAPPI Extrusion Coating Course, August 24-26, 2010 in Charleston, South Carolina USA. This three-day course will help you gain a better understanding of materials and the extrusion processes to enable you to improve your existing extrusion coating operation. Emphasis will be placed on enhancing your troubleshooting skills.

This course is ideal for Extrusion engineers, supervisors and operators; technical directors and superintendents; Technical assistants and R&D personnel.

To learn more, or to register, visit www.tappi.org/10extru. Back To Top
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The TAPPI Introduction to Tissue Manufacturing Course -- August 11-12 in Kennesaw, Ga. -- is ideal for those who could benefit from a comprehensive overview of tissue manufacturing processes and their effects on tissue properties.

This two-day course is one of very few available on tissue manufacturing, and it enables those who attend to:

-Contribute more toward improved tissue manufacturing operations
-Play a stronger role in producing better, more competitive products

Register early.  Sign up before July 14 for the early-bird savings.

Gain and Retain!

Attending the TAPPI Introduction to Tissue Manufacturing will help you increase your understanding of tissue performance properties and manufacturing. The course is designed to deliver a structured overview of manufacturing processes and the effect of processes on product performance.

Take a look at the Preliminary Course Schedule to find out exactly all that's offered.  Print it and encourage others around the workplace to attend, because you'll save on registration with three or more co-workers who also want to improve their knowledge and know-how.

Meet Your Instructor

Dr. Michael J. Kocurek
, Ph.D., Professor Emeritus at North Carolina State University is the course instructor. He has taught this tissue short course to operators at multiple corporations and mills. He has also taught paper properties for undergraduate students for 18 years at the University of Wisconsin-Stevens Point, and at North Carolina State University.

He is the editor of 11 books, including the recognized Pulp and Paper Manufacture series covering the entire field of pulp & paper, and has authored/co-authored 25 video publications, including the Introduction to Pulp & Paper series, which again covers the entire field of pulp & paper.

You can find more information about this course and many others at www.tappi.org under the Events tab.  We look forward to seeing you!

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"He who thinks by the inch and talks by the yard deserves to be kicked by the foot." – Unknown

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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  

TAPPI Over the Wire | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947

We would appreciate your comments or suggestions. Your email will be kept private and confidential.