Tissue and paperboard maker Clearwater Paper Corp. is acquiring Cellu Tissue Holdings, Inc., an Alpharetta, Ga., USA, producer of tissue products.

Clearwater, of Spokane, Wash., USA, will acquire all of Cellu Tissue's outstanding common stock and pay stockholders $12 per share. Clearwater will pay for the acquisition with cash and $350 million of debt financing.

Cellu Tissue is valued at roughly $502 million, including equity value of approximately $247 million and about $255 million of debt. The merger is expected to be completed by the end of 2010.

Cellu Tissue's private label and specialty tissue businesses fit in well with Clearwater Paper's existing private label tissue and pulp and paperboard businesses. Clearwater makes premium consumer tissue, bleached paperboard, and wood products. The company's private label tissue is supplied to major retail grocery chains and its bleached paperboard is used by printers and packaging converters.

Clearwater leaders expect to be able to better serve private label tissue customers and expand into new private label channels as a result of the acquisition.

The merger is expected to create increased Through-Air-Dried (TAD) capacity and logistical improvements through shipping and transportation synergies. Combined company annual revenues are estimated at $1.9 billion.

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The U.S. Department of Commerce (DOC), Washington, D.C., USA, this week announced final antidumping and countervailing duty margins on coated paper imports from China and Indonesia. The announcement sets out the tariffs that will be applied to unfairly traded imports of coated paper from China and Indonesia that benefited from subsidies or were dumped in the U.S. market. The Department of Commerce's action updates the preliminary margins that were announced earlier in the consideration of the case which was filed jointly by the USW and the three companies.

U.S.-based companies Appleton Coated, NewPage Corp., and Sappi Fine Paper North America, together with the United Steelworkers (USW), had filed unfair trade cases on September 23, 2009 with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) alleging that certain coated paper from China and Indonesia had been dumped and subsidized, resulting in injury to the domestic industry and its employees. The paper products covered by the petitions include coated paper in sheet form used in high-quality writing, printing and other graphic applications, with a GE brightness rating of 80 or higher and weighing up to 340 g/m2.

The antidumping margins announced by DOC on imports from Indonesia were 20.13% and ranged from 7.6% - 135.83% on imports from China. Countervailing duties on products from Indonesia will be subject to tariffs of 17.94% and on Chinese imports range from 17.64% - 178.03%. If the ITC votes affirmatively in their upcoming injury determination, these rates will apply for the term of the relief. The ITC will vote on October 19 and the transmittal of its views to DOC will occur on November 4.

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The 9th Research Forum on Recycling, co-located at TAPPI PEERS Conference Oct. 17-20, is the world's premier event in recycling. Organized only once every three years by TA PPI and PAPTAC, this highly-regarded technical forum brings critical information for applying new research in the mill. Global recycling experts will present peer-reviewed technical papers and participate in engaging panel discussions and workshops.

This year's program will address the challenges affecting recycling efficiency, such as changes in digital print media, contaminant removal and quantification. Sessions will focus on measurement methods for digital inks and toners, as well as the full spectrum of options for dealing with stickies and other contaminants.

For more information on the program, visit www.tappipeers.org/recycling.asp

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Total U.S. printing and writing (P&W) paper shipments increased 3% in August compared with August 2009, according to AF&PA's August 2010 Printing-Writing Paper Report. Two of the four major printing-writing grades posted increases compared with last August. U.S. purchases (shipments + imports – exports) of P&W papers increased slightly, up nearly 1% in August. Total P&W paper inventory levels increased 2% from July 2010.

Some additional key findings include:

• Uncoated free sheet year-to-date shipments trail 2009 for first time this year
• Coated free sheet shipments increase year-over-year for the tenth consecutive month
• Coated mechanical shipments turn negative year-over-year for first time in the past ten months
• Uncoated mechanical shipments increase year-over-year for eighth consecutive month.

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Total August boxboard production was down 0.8% compared with July, but increased by 3.9% compared with August 2009, according to AF&PA's (Washington, D.C., USA, ) August 2010 U.S. Paperboard Report released this week. Year-to-date production was up 4.2% compared with 2009. The report includes unbleached kraft folding, solid bleached folding, recycled folding, and inventory of solid bleached kraft.
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Deutsche Bank's Senior Analyst Mark Wilde says that his summer stance in regard to market pulp was "too bearish." North American NBSK "list" prices in September remained flat at $990/metric ton, driven by improved seasonal demand, especially for domestic coated printing and writing grades, lower price erosion in U.S. spot markets, and a rebound in Chinese softwood markets. Hardwood prices remained flat in Sept, but the hardwood market remains weaker than softwood. Producers are offering higher discounts, ˜20% - 25% on effective list prices, according to Wilde.

Export prices to China offer a mixed picture, he adds. While softwood prices fell, one North American producer has announced a $20/metric ton increase on export NBSK. Chinese demand is picking-up. On the hardwood side, while Arauco's flat prices for Seember appear to have been accepted, there are reports of Chinese producers offering higher discounts on local prices. Terrace Bay is reportedly restarting its 350,000 metric tpy NBSK pulp mill by October 4, making it the fourth mill in five months to restart pulp production. In total, ˜5% of North American market pulp capacity has come back into the market.

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In the U.S. newsprint arena, west coast producers close the gap with east coast producers as newsprint list price in the west rise $20/metric ton in September to $610/metric ton, Wilde reports. With East coast prices flat in September, the gap is now down to $30/metric ton. Reports suggest that small customers are paying the full $40/metric ton increase this month. For large customers, price pass-thru is happening in two monthly installments of $20/mton each, Wilde says. In addition to the $40/metric ton September price increase, White Birch has announced a $25/metric ton price increase in the western markets, effective October 1. No other producer has yet announced a hike for October. Producers are increasingly focusing on alternative products (high brights and packaging grades) and off-shore markets such as Asia, Latin America, and the Middle East, where newsprint demand is growing, Wilde notes.
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Research and Market, Dublin, Ireland, has released a new report on the U.S. surface-coated paperboard manufacturing industry and its international trade. The surface-coated paperboard manufacturing industry includes companies that use laminating, lining, or surface coating of purchased paperboard to produce paperboard products.

Last year's revenue is estimated at $1.1 billion for the surface-coated paperboard manufacturing industry. Gross profit is estimated at 17.7%. In 2009, the industry was using 75% of its full production capacity. Working at full capacity, the industry could have increased its total shipment value to $1.5 billion.

The 169-page report includes market research on the industry's sales and shipment data. More than 40 industries are analyzed to provide insight into the supply chain cost structure, while more than 180 industries are analyzed for channel and pricing structure. The report also looks at companies' revenue share, market concentration, and a list of major companies. More information is available online.

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AbitibiBowater, Montreal, Que., Canada, reported this week that it has received creditor approval for its plan of reorganization under chapter 11 of the U.S. Bankruptcy Code, except with respect to Bowater Canada Finance Corporation (BCFC), a special purpose company subsidiary with no operating assets, which has been excluded from the chapter 11 plan. The chapter 11 plan of reorganization received overwhelming support from creditors, both in dollar amount of claims and in number of claim holders who voted on the plan.

Having obtained the requisite votes from creditors, except with respect to BCFC, the AbitibiBowater and its subsidiaries will exclude BCFC from the process and proceed with plan confirmation. The company does not believe that the exclusion of BCFC will affect the timing of its confirmation hearing that is scheduled to start on September 24 in the U.S. Bankruptcy Court in Delaware.

"We are pleased to have received approval by the vast majority of creditors under the U.S. Bankruptcy Code for our chapter 11 plan of reorganization," stated David J. Paterson, president and CEO, said. "We appreciate the support for our plans of reorganization as we work to create a more sustainable and competitive organization."

As previously announced, on September 14, the company received approval for its plan of reorganization from affected creditors under the Canadian Companies' Creditors Arrangement Act in Canada, except with respect to BCFC. Subject to the satisfaction of certain conditions provided for in the plans of reorganization, AbitibiBowater continues to expect emergence from creditor protection this fall.

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RockTenn, a paperboard and packaging producer in Norcross, Ga., USA, lost an employee last week at one of its plants. A 48-year-old man was crushed to death by a stacker at the RockTenn plant where he worked.

The Occupational Safety and Health Administration has been notified of the death.

RockTenn employs 10,000 people and operates more than 90 facilities in the U.S., Canada, Mexico, Chile and Argentina.

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White Birch Paper Co. of Greenwich, Conn., USA, this week received bids for the sale of its operations and held an auction. Operations at the second-largest newsprint manufacturer in North America are expected to continue during the sale process. All bids are for the operations as a going concern. The company, which has operations in Canada and the U.S., will seek final court approval of the winning bid in Canada on September 24 and in the U.S. on September 30. The company anticipates completion of the sale in late November, subject to regulatory approvals and other conditions.

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The Howe Sound Pulp and Paper Limited Partnership in Port Mellon, B.C., Canada, will receive $36.7 million from the Government of Canada to invest in technology that will create renewable energy. With funds from the Pulp and Paper Green Transformation Program, Howe Sound Pulp and Paper will use technology to allow the mill's boiler to operate at full power and increase its capacity to burn wood waste.

The boiler is expected to generate 127,000 additional MW hours of renewable electricity a year, and the company will be able to sell its surplus energy to BC Hydro. Howe Sound will become one of the largest independent producers of renewable electricity in British Columbia.

"This investment will position Howe Sound Pulp and Paper at the forefront of clean energy production from wood biomass in British Columbia," said the Honourable Stockwell Day, president of the Treasury Board of Canada and minister for the Asia–Pacific Gateway. "The Green Transformation Program is helping to drive the renewal of the country's pulp and paper sector by supporting smart investments that enhance a mill's energy efficiency and the production of renewable energy."

After the upgrade, Howe Sound's boiler will also decrease natural gas consumption by 6.5 million cubic metres a year and reduce its greenhouse gas emissions by 12,000 metric tpy.

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For the seventh year in a row, MeadWestvaco Corp. is listed on the Dow Jones Sustainability World Index, the company announced this past week. This year, the Richmond, Va., USA, provider of packaging solutions for multiple industries is also best in class in the Containers & Packaging sector for the sixth year. The DJSI World recognizes leading companies for economic, environmental, and social performance, and evaluates organizations based on their commitment to and success in integrating sustainability into core business objectives and performance.

MWV scored above its peers in the environmental dimension, reflecting a commitment to developing innovative processes and solutions that make its operations more environmentally efficient, such as reducing greenhouse gases.

"MWV's commitment to environmental stewardship and sustainable business practices are key drivers in both our long-term strategy and our day-to-day decisions," said John A. Luke, Jr., chairman and CEO of MWV.

With 20,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards.

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The Gores Group, LLC, a Los Angeles, Calif., USA-based private equity firm, announced that it led an investor group in acquiring a high purity cellulose mill from Weyerhaeuser Co. Terms of the transaction were not disclosed.

Located in Cosmopolis, Wash., the high purity cellulose (or dissolving wood pulp) mill will operate under the name of Cosmo Specialty Fibers, Inc. The Gores Group will refurbish and restart the mill. Weyerhaeuser had announced closure of the mill in October 2005.

Paper and packaging industry veteran Dermot F. Smurfit, chairman of the board of Cosmo Specialty Fibers, Inc., noted that the mill's primary products, namely viscose and acetate, are currently in tight supply worldwide.

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Minerals Technologies Inc., New York, USA, announced that it has signed an agreement with Double A (1991) Public Company Ltd., formerly Advance Agro Public Company Ltd., to expand production capacity of precipitated calcium carbonate (PCC) at its Tha Toom, Thailand paper mill.

With the expansion, capacity at Minerals Technologies' existing satellite PCC plant will increase from 50,000 metric tons to 70,000 metric tons during the second quarter of 2011.Thailand's largest papermaker, Double A produces uncoated freesheet paper at the Tha Toom paper mill.

"This agreement builds on our long-term relationship with this well-respected paper company, which exports its premium quality office paper to over 100 countries worldwide," said Joseph C. Muscari, chairman and CEO. "The expansion is also part of the realization of Minerals Technologies' growth initiative to increase use of our PCC across the Asia region."

Minerals Technologies built its first PCC satellite plant in 1986, and now has 52 satellite plants in operation or under construction. The company's total sales were $907.3 million in 2009.

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UPM Shotton, the largest newsprint mill in the U.K., has entered a long-term agreement with waste management company PHS Special Contracts, part of PHS Wastetech, to reprocess all of its rejected material. The paper mill currently recycles 650,000 metric tons of recovered paper per year in its newsprint manufacturing process, combusts deinking residues to create energy, and reuses ash from the combustion process.

Mixed waste materials from UPM Shotton's pulping process will be used to make recycled plastic products such as railway sleepers, furniture, and plastic board.

"We are delighted to have found an innovative solution through PHS Allclear for this most difficult of waste materials. We are now really heading towards zero waste from the site," said Andrew Bronnert, Head of Energy & Utilities at UPM Shotton.

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Temple-Inland, Austin, Texas, USA, has reportedly laid off 17 workers at its Garden City, N.J., box plant. Although the company has not confirmed or denied the layoffs, Eric Depperschmidt, Finney County Economic Development Corp. president, has been quoted as saying that the layoffs resulted from the loss of a major account earlier this year.

The Garden City plant's 60 employees convert sheets of corrugated containerboard to boxes.

Temple-Inland has 11,000 employees at 83 locations throughout the U.S., Mexico, and Puerto Rico. It is the third-largest corrugated packaging producer in North America.

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M-real Corp., part of Metsäliitto Group, Finland, is planning to increase the annual folding boxboard capacity of its Simpele mill by about 80,000 metric tons, bringing the mill's total capacity to about 300,000 metric tpy. Sheeting capacity will also be expanded next summer, with the total value of the potential investments in Simpele estimated at EUR 26 million.

"Demand outlook for folding boxboard is very good and through the innovative product and service development, M-real's market shares have steadily increased. After the potential investment, the Simpele machine will be the biggest and most competitive folding boxboard machine in Europe," says CEO Mikko Helander.

To improve profitability, M-real is considering transferring the Simpele specialty paper production to the Gohrsmühle mill in Germany and closing the Simpele paper machine. A maximum of 80 jobs could be cut.

"M-real is a leading European specialty paper producer. M-real is further focusing its specialty paper business to packaging related grades. The planned transfer of Simpele specialty paper production would strengthen the competitiveness of Gohrsmühle mill and improve M-real's profitability," said Helander.

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Xerium Technologies, Inc., Raleigh, N.C., USA, manufacturer of rolls used primarily in the paper production process, announced a technologically advanced new series of roll cover products designed for improved machine performance, better wear and longer, more efficient product life. The company's latest roll cover products are designed to reduce operational costs and maximize the output of existing equipment, while enhancing product customization capabilities.

Some of Xerium's latest roll cover products utilize nanoparticle technology for more durability and have significantly more high strength fiber reinforcement per cover surface area. With its Thermaguard base, Genesis provides the ultimate temperature consistency across the cover face. Rebel is an exclusive new generation of polyurethane covers for maximum tissue machine performance. Xtreme covers are high strength, extremely tough rubber materials that are cool running and maintain very stable nip conditions. Xtreme TS and Hyperpress X roll covers provide superior running conditions and long life in both conventional and TAD pressure roll applications.

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Due to the "continuing escalation of costs in paper manufacturing and distribution," M-real reports that it is increasing the price of one-side-coated label and flexible packaging papers produced at its Simpele mill in Finland and its M-real Zanders Gohrsmühle mill in Germany.

The price increase of 5% - 6% (depending on grade and region) is effective October 1.

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Effective immediately, Eka Chemicals, Marietta, Ga., USA, will implement a $100 per ton price increase for all non-contracted sodium chlorate shipments in the NAFTA region. Sodium chlorate pricing for contracted customers will increase according to individual supply agreements.

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Glatfelter, York, Pa., USA, global manufacturer of specialty papers and fiber-based engineered products, this week announced the appointment of Janis Jesse as VP-Information Technology (IT), effective September 20.

In this role, Jesse will have overall responsibility for the global IT organization and will report to John Jacunski, SVP and CFO. She will lead global IT operations and align IT strategy and resources with critical business objectives.

Jesse brings more than 30 years of global experience in senior leadership and program management roles. She had corporate responsibility at International Paper Corp. (IP) for IT strategy development, enterprise architecture, IT investment and governance, and project management processes. She has also served as a Business CIO at IP with responsibility for two major business sectors. Early in her career, Jesse held various positions at Texas Instruments. Most recently, she was COOr for the Memphis Academy of Science and Engineering.

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The Québec Forest Industry Council (CIFQ), Quebec, Canada, announced on Seember 20 the appointment of attorney André Tremblay to the position of CEO as of January 1. Tremblay will take over for Guy Chevrette, the outgoing CEO, while also overseeing the CIFQ's Communications and Public Affairs Direction. Chevrette is retiring after heading up the council for five years.

The Executive Committee was seeking a leader with thorough knowledge of the challenges facing the forest sector. Although Tremblay previously pursued a law career, he has been active in the forest industry since 2004 as general manager of Produits Forestiers Saguenay Inc.

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Four industry experts will present a State of the Industry panel discussion at the opening session of the Innovative Nonwovens Conference (NETInc). It will occur on Wednesday, November 10, 2010, from 1 to 3 p.m. and be moderated by TAPPI President and CEO Larry N. Montague. Panelists include Pierre Wiertz, general manager of EDANA; Michael Jänecke, brand manager of Techtextil; Rory Holmes, president of INDA; and Stephen Warner, CEO and president of IFAI. More information about this session can be found online. The conference will take place in Raleigh, N.C. from November 10-12, 2010.

"Conference organizers have brought together industry experts and opinion leaders from the leading technical textiles and nonwovens organizations to discuss the current markets and applications, industry needs, and the future of the industries," said Behnam Pourdeyhimi. He is Associate Dean for Industry Research & Extension, William A. Klopman Distinguished Professor & Executive Director of The Nonwovens Institute. "These experts will also provide insight into the research and emerging technologies ongoing in the academic and industry settings."
Visit www.NETIncevent.org to learn more about the event, including the Technical Program and registration. Back To Top

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Not only is NETInc (Nonwovens Engineers and Technologists Innovative Nonwovens Conference)  the only conference with a technical program developed by engineers and technologists, it also includes a tour of the Nonwovens Institute's Pilot Facilities on Wednesday, November 10, 2010 from 4:30 to 6 p.m.

During the tour, you and your colleagues will have a chance to see the Nonwovens Institute's (NWI) pilot facilities for manufacturing various types of nonwovens. The Staple Nonwovens Lab showcases two opening and blending systems, carding, crosslapping, needling, and thru-air bonding. This lab also has a lab-scale wetlay machine and a Scanfeed system.

NWI's Partners' SpunMelt Pilot Lab represents a unique world-class research and product development laboratory. This lab showcases both spunbond and meltblown bicomponent technologies.  Both machines are 56cm wide with in-line hydroentangling for bonding and splitting bicomponent fibers and thermal bonding equipment.

Register for the conference today to get a sneak peek at this facility! Back To Top

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For corrugating professionals, this year's "must attend" event is the (TAPPI/AICC Corrugated Week) taking place in Baltimore, Maryland, October 4-8, 2010.  There's still time to register but do it now.  If you need a printable form to show your boss, print the form. Clear your calendar and do whatever is required to take advantage of all that's offered at this Conference and Trade Show.

The reasons to attend are numerous.  You will discover new products and services at the sold-out exhibit hall; make valuable contacts from among the hundreds already registered; and gain firsthand access to top-level expertise during the TAPPI Technical Sessions.  It's an entire week devoted to corrugated topics, where you'll find discussion on hot-button issues like:

• What does the retail industry expect from corrugated and how can you deliver?
• How do your company's products match up against new safety and security standards for packaging?
• In what ways can you learn from America's top beverage company with its success in color consistency?

Find out!  But, your window of opportunity is closing fast. Don't be left out of this very important information exchange for your industry.   Register while space is still available. Back To Top

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A new international exchange program has been launched for Paper Science and Engineering undergraduate students at UW-Stevens Point and North Carolina State University.  The Trans-Atlantic Paper Science Undergraduate Dual Degree Program (TAPS) is an innovative program that involves five universities and will allow some students at UWSP and NCSU to study at selected schools in Europe and to receive a degree both here and abroad (dual degree). The European partners are Munich University of Applied Sciences (Munich, Germany), TAMK University of Applied Sciences (Tampere, Finland), and Jyvaskyla University of Applied Sciences (Jyvaskyla, Finland).  Particpating students and faculty are pictured here.

TAPS is a partnership that is producing graduates who have a strong scientific background in paper science engineering, a global view, a multi-cultural understanding, and who are bilingual.  This project is the result of a four-year grant totaling $447,000 from the Fund for the Improvement of Postsecondary Education (FIPSE).  FIPSE monies are allocated to improve the quality of and access to postsecondary education that supports reform and innovation. Back To Top

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TAPPI has named its Engineering Division and Pulp Manufacture Awards for 2010. The awards will be presented at the 2010 PEERS Conference October 17-20 in Norfolk, Va.

The recipients and their awards are: Ken Hill, Kadant Johnson Inc. in Lenoir City, Tenn., Engineering Division Technical Award and Beloit Prize; Margaret Gorog, Weyerhaeuser Company in Federal Way, Wash., Engineering Division Leadership and Service Award; and Charles Courchene, GP Cellulose in Atlanta, Ga., Pulp Manufacture Division Leadership and Service Award and the Joseph K. Perkins Award. Robert Perry Fisher, Ph.D., vice president, biological and chemical assessment with the National Council for Air and Stream Improvement, Research Triangle Park, N.C., is the recipient of the TAPPI Environmental Technical Award and Roy F. Weston Prize. Back To Top

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BioPro Expo & Marketplace, the largest biomass conference in the Southeast, will be held on March 14-16, 2011, at the Atlanta Hilton in Atlanta, Georgia, USA. The conference will benefit farmers, dedicated energy crop producers, local and state governments, wood waste producers, and manufacturers.
 
BioPro Expo & Marketplace 2011 includes a new Marketplace. This expanded feature of the conference allows for a more extensive presentation of the ‘near term' biomass technologies that the attendees are wanting to learn more about.
 
In addition, the 5th Annual International Bioenergy & Bioproducts Conference (IBBC) will be held at the same time as the BioPro Expo & Marketplace event. IBBC is the only event that focuses on deploying wood-based biorefineries and using forest products industry resources.


To register and for more information: Visit www.bioproexpo.org. Back To Top

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A Call for Papers or Posters has been issued for the Papermaking Program at PaperCon 2011 being held May 1-4, 2011, in Covington, Kentucky, USA.

The deadline for submission of titles and abstracts for technical papers, posters as well as for panel sessions and roundtables is November 15, 2010.

Paper company personnel, suppliers, students and academics are strongly encouraged to submit abstracts, as TAPPI is interested in providing a forum for new concepts and speakers. 

See the full list of recommended topics and submittal details and learn more about PaperCon 2011. Back To Top

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On a recent visit to the IPST Student Chapter at Georgia Tech, TAPPI Staff members David Bell and Simona Marcellus had the opportunity to sit down and talk with several members of this growing chapter.  The students agreed that their greatest needs were more networking opportunities with industry and jobs when they graduate. They are enthusiastic about having industry professionals speak to their chapter members on these topics. The chapter officers are pictured here.

The chapter has been reinvigorated by IPST's new director and faculty advisor, Norman F. Marsolan, and they are focused on recruiting new members and finding new ways to actively participate in TAPPI.  They have also started to develop a new website and are exploring a presence through social media channels. 

TAPPI student chapters conduct fundraising events to cover their operational costs and travel expenses to TAPPI conferences and events.  If you are interested in helping the IPST student chapter, please contact their president Mikhail Levit or David Bell if you'd like more information on other TAPPI Student Chapters. Back To Top

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A direct lightning strike on TAPPI offices in late August has affected the telephone and voicemail systems.  We are taking corrective action and our evaluation indicates that a total system replacement is required and should be completed early November. Please bear with us as it will take a few weeks to correct the current shortcoming and implement a new solution to better serve you.

In the meantime, if you are calling TAPPI, you may not be able to leave a voicemail or it may cut-off in mid message. If you experience this difficulty, please either send an e-mail to memberconnection@tappi.org or call Member Connection number toll free at 800-332-8686 (U.S.) or 800-446-9431 (Canada). If busy, please use +1 770-209-7212.

We apologize for any inconvenience and thank you for your understanding while we find creative ways to meet your ongoing needs. Back To Top

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"Every man feels instinctively that all the beautiful sentiments in the world weigh less than a single lovely action." – James Russell Lowell, poet, editor, and diplomat (1819-1891)
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