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Travels with Larry Archive
Thursday, June 02, 2011
members edition
Eka Chemicals
Weekly Spotlight
FPInnovations, Pointe‐Claire, Qué., Canada, this week inaugurated its new NanoCrystalline Cellulose (NCC) research facilities, consisting of a state‐of‐the‐art pilot plant, new high‐performance equipment for the Québec City laboratory, and two new research laboratories at Pointe‐Claire
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To start the process, the Global Reporting Initiative (GRI), Amsterdam, The Netherlands, is asking its network and the public to input into the first phase of development, to help shape the world's most widely used sustainability reporting framework.
Learn More...
 
Stora Enso, Helsinki, Finland, this week reported that it is taking a significant step forward in renewable materials innovation by building a pre-commercial plant at Imatra in Finland for the production of microfibrillated cellulose (MFC).
Learn More...
 
Honeywell, Morristown, N.J., USA, this past week announced that two Houston, Texas, high school seniors from one of the city's prominent engineering magnet schools have been awarded the Honeywell Engineer of the Future Scholarship, a program that highlights the significant role engineers can play in promoting environmental sustainability
Learn More...
 
Market Roundup
The cost of manufacturing pulp has trended upward in most regions of the world the past two years
Learn More...
 
Total U.S. printing and writing (P&W) paper shipments decreased 9% in April compared with April 2010
Learn More...
 
In April, European demand for newsprint edged up 2.5% (18,000 metric tons) compared with the same period last year, according to CEPIPRINT, Brussels, Belgium
Learn More...
 
Grays Harbor and Domtar have recently announced closure of ~2.7% of North American uncoated free sheet (UFS) capacity
Learn More...
 
More North American producers announced a $20/metric ton price hike on NBSK (northern bleached softwood kraft) pulps for June 1.
Learn More...
 
Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, reports that it has closed the sale of its 75% indirect interest in ACH Limited Partnership (ACH) to a consortium formed by a major Canadian institutional investor and a private Canadian renewable energy company
Learn More...
 
Ahlstrom, Finland, reports that it will invest in additional transportation filtration materials capacity at its site in Louveira, Brazil
Learn More...
 
Catalyst Paper, Richmond, B.C., Canada, says that total downtime at its Powell River, B.C., and Snowflake mills (Arizona, USA) in the second quarter is expected to be 25 days rather than 14 days as previously announced
Learn More...
 
Duratex S.A., Brazil, has ordered from Metso, Finland, complete woodyard equipment and Defibrator systems with chipwashers for two new Duratex MDF (medium density fiberboard) projects
Learn More...
 
Ahlstrom, Finland, has completed the divestment of buildings, land, and assets at its Ascoli plant in Italy to Eurocomet
Learn More...
 
Norske Skog, Lysaker, Norway, has agreed to sell all shares in its energy company Enerpar (Energias do Paraná Ltda) to a subsidiary of SN Power Invest AS in Brazil (SN Power Participações Ltda) for BRL 120 million
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Nalco, Naperville, Ill., USA, reports that it helped Suzano Pulp and Paper's industrial units in the cities of Suzano, Sao Paulo, and Mucuri, Bahia, in Brazil, significantly reduce water and chemical use in their papermaking process
Learn More...
 
Tak Investments Inc., Thatcher, Ariz., USA, has announced a proposal to operate a recycled tissue plant in Franklin, Va., and has entered into a Letter of Intent to complete the evaluation, including due diligence and feasibility analysis of this project
Learn More...
 
Containerboard/Packaging
RockTenn, Norcross, Ga., USA, and Smurfit-Stone Container Corp., Chicago, Ill., shareholders this past week approved the merger of the two companies
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RockTenn, Norcross, Ga., USA, has completed the acquisition of Smurfit Stone Container Corp., Chicago, Ill, (see article above), making it the No.2 player in North America
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Domestic old corrugated container (OCC) prices in the U.S. were essentially flat in May
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Yesterday, June 1, Moving Day Boxes, Chicago, Ill., USA, released its annual moving sentiment survey that illustrates the financial and emotional condition people who are moving are in
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ITC, India, reports that its Paperboards, Paper, and Packaging segment recorded another year of steady growth in revenues and profits
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New Products
Oasis Brands, Winchester, Va., USA, has introduced its fully-enclosed, touchless Nvi® Electronic Tissue Dispenser.
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Metsä Tissue Corp., Finland, this week introduced Green Spa, a new plastic-free sauna seat cover in its Katrin brand tissue group.
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Published Pricing
Torraspapel, Barcelona, Spain, part of the Lecta Group, has announced a price increase on its carbonless paper range, effective July 4
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TAPPI News
TAPPI member Darren Swales achieved his goal of earning a Ph.D. and establishing a successful career in chemistry despite some blinding obstacles.
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Paper Industry Students Must Apply by August 1, 2011

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June 13-17 course in Raleigh, NC, USA teaches the basics of pulp and paper manufacturing
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August 16-19 course in Nashville covers latest in equipment, technology and materials for extrusion coating operations
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Two-day course, June 7-8, provides insight into improving up time, reducing costs and increasing profits
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TAPPI member Scott Pantaleo has turned his active membership participation into a fountain of knowledge and shared learning.
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"Calendering effects on coating pore structure and ink setting behavior" chosen as best paper out of eight nominated.
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Annual PIMA golf tournament in Auburn, ME, June 10, 2011, benefits scholarships
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New book scheduled for release this summer provides a chemist's perspective on papermaking process.
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The 2011 TAPPI International Conference on Nanotechnology for Renewable Materials is scheduled for June 6-8, 2011. The poster session features findings from top researchers as well as a student poster competition.
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Nalco Company
Sweed Machinery, Inc

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Weekly Spotlight

FPInnovations, Pointe‐Claire, Què., Canada, this week inaugurated its new NanoCrystalline Cellulose (NCC) research facilities, consisting of a state‐of‐the‐art pilot plant, new high‐performance equipment for the Québec City laboratory, and two new research laboratories at Pointe‐Claire. The laboratories are dedicated primarily to NCC chemistry, as well as to NCC and nanocomposites characterization. The new laboratory equipment in Québec City is being used in the development of advanced wood materials in the appearance, structural, and composite wood products sector.

The cost of constructing the facilities and the acquisition of the research equipment totaled $4.1million. The Ministère du Développement économique, de l'Innovation et de l'Exportation du Québec provided financial support for 80% of the expenses, and Natural Resources Canada provided 20% support under its Transformative Technologies Program. The project will make it possible to retain 11 full‐time scientists and technicians dedicated to NCC research.

"Our support for creation of the pilot plant and new crystalline nanocellulose labs demonstrates our commitment to making Québec a state‐of‐the‐art center for advanced research. Forthcoming R&D projects in these innovative facilities will build on Québec's leadership in the forest nanotechnologies sector and open the door to high‐potential markets for Québec's wood industry," said Geoffrey Kelley, member for Jacques‐Cartier and Minister responsible for Native Affairs.

"We are proud to participate in this unique partnership that embodies the technological innovation and leadership essential for the renewal our forest sector," added the Minister of Natural Resources Canada, Joe Oliver. "Emerging technologies such as nanocrystalline cellulose hold the potential to transform the forest sector and create new, high‐value opportunities in global markets. The Government of Canada's investment in this project will help build on Canadian leadership in the commercialization of this exciting technology."

The pilot plant, with a production capacity of 3 kg per day, contains equipment based on leading edge technology that ensures a rapid transfer of research results into industrial‐scale production. Automatic control measures for the equipment and prevention measures have been put in place to enhance product standardization and to respect the applicable standards for health and safety at work and the environment.

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The next generation of Sustainability Reporting Guidelines—G4—is now under development. To start the process, the Global Reporting Initiative (GRI), Amsterdam, The Netherlands, is asking its network and the public to input into the first phase of development, to help shape the world's most widely used sustainability reporting framework.

The overall aim of the first development phase is to take a close look at GRI's Guidelines with a fresh perspective. GRI invites you to provide your views and register your interest in participating in the process by using the forms provided below.

The "Call for sustainability reporting topics" aims to collect input on what new topics should be covered in G4. Revisions of existing topics also will be considered.

The GRI Guidelines' development is influenced by changes in the reporting field, such as the introduction of new concepts, trends and tools, and requests by new players. The landscape of sustainability reporting is evolving; this should influence the development of G4. More stakeholders than ever—including regulators, investors, rating agencies, and NGOs—are asking for non-financial data.

The public is invited to submit topics they think should be considered for G4, using the following online and downloadable Adobe pdf forms:

  1. The online form is the preferred method for submitting topics
  2. The downloadable Adobe pdf form is designed for use by those who have limited access to the internet. The pdf version requires Adobe reader version 6 or later. Please save the file to your computer before filling it in.

The closing date for sustainability reporting topic submissions is June 30.

GRI's guidance is based on the views of as wide a range of stakeholders as possible. The first G4 Public Comment Period will begin in August and continue for 90 days. You formally register your interest in participating in G4's first Public Comment Period by filling out the online form.

All registrants will be emailed when the Public Comment Period opens.

Registration will also indicate the regional balance and diversity of potential participants, enabling GRI to undertake additional recruitment in under-represented areas. This will help ensure the views of a regionally balanced and diverse group of stakeholders are taken into account.

Registration for the first public comment period is available online. Registration closes July 31.

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Stora Enso, Helsinki, Finland, this week reported that it is taking a significant step forward in renewable materials innovation by building a pre-commercial plant at Imatra in Finland for the production of microfibrillated cellulose (MFC). The new type of renewable material will be used in existing and new fiber-based paper and board products, barrier materials, and other potential future applications.

The microfibrillated cellulose technology project, including the Imatra pre-commercial plant, is estimated to cost a total of approximately EUR 10 million. The plant is scheduled to start production by the end of this year.

"The MFC pre-commercial plant is another proof point of rethinking within Stora Enso. It is not only an example of pathfinding innovation together with institutions and universities for the benefit of consumers and even the planet, it is also a proof point of Stora Enso's commitment to accelerating the development of the next generation of renewable materials. With MFC we will be able to develop lighter, stronger renewable packaging materials, a lot more with a lot less. The pre-commercial plant will put us into a unique position to accelerate customer-driven innovation and product concepts from this technology. In the longer term, as we continue to renew and challenge ourselves, the applications of this renewable material may well extend to replacing today's fossil-based materials such as plastics and some specialty chemicals, and aluminum—revolution instead of evolution," said Stora Enso CEO Jouko Karvinen.

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Honeywell, Morristown, N.J., USA, this past week announced that two Houston, Texas, high school seniors from one of the city's prominent engineering magnet schools have been awarded the Honeywell Engineer of the Future Scholarship, a program that highlights the significant role engineers can play in promoting environmental sustainability. Christopher Foster and Nicholas Robbins, who each attend the High School for Engineering Professions (HSEP), were recognized for their ideas for reducing pollution at industrial manufacturing plants.

"Christopher and Nicholas exemplify that with innovative thinking, leadership, and hard work, engineering can make a positive difference in creating a sustainable world," said Norm Gilsdorf, president, Honeywell Process Solutions. "We were impressed by the high-level of thought, creativity, and analysis in their recommendations. Engineers are critical to our planet's future, and we are glad to support their continuing education as well as raise awareness of the important contributions they make."

Foster and Robbins each wrote 500-word essays describing their recommendations to reduce carbon emissions produced by industrial facilities. Foster received the top prize of $2,500 for recommending ways to capture and commercialize carbon emissions and transitioning to wireless technologies. Robbins was awarded a runner-up prize of $500 for discussing how to re-engineer industrial plant components to work together as a more-efficient system. Foster will attend Texas A&M University in the fall to study petrochemical engineering, while Robbins will study mechanical engineering at Rice University.

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Market Roundup
The cost of manufacturing pulp has trended upward in most regions of the world the past two years, reports the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. Much of the increase has been the result of higher wood fiber costs which, depending on pulp grade and region, currently vary between 48% and 72% of the total variable production costs, according to Fisher International. The cost of wood is the cost component that often decides a pulp mill's competitive advantage in the global market place. Wood fiber costs (in U.S. dollars) have gone up because of high demand due to strong pulp markets, tight supplies of sawmill residues, and a weakening U.S. dollar against most other currencies.

Global pulp markets have bucked the trend forecasted by many analysts a year ago. Rather than the predicted retraction in market pulp prices this spring, prices stayed strong and actually increased to record-high levels of more than $1,000 per ton for softwood market pulp (NBSK) in the month of April, WRQ says.

The Softwood Wood Fiber Price Index (SFPI) increased 1.9% in the first quarter, reaching $105.60/odmt, the highest level since the third quarter of 2008, just before the financial crises. The SFPI is a weighted average of delivered wood fiber prices for the pulp industry in all regions tracked by WRQ. These regions together account for 85% - 90% of the world's wood-based pulp production capacity. The U.S. Northwest, Europe, Chile, Australia, and New Zealand markets saw the biggest softwood fiber price increases in the first quarter, while there were only modest price changes in the U.S. South, Canada, and Brazil.

The Hardwood Wood Fiber Price Index (HFPI) was also up 1.9% from the fourth quarter of last year, and is now close to an all-time high of $110.33/odmt. Fiber prices were up in many of the same markets as those for softwood fiber, with the highest increases in Europe, Australia, and Chile, and only small upward prices adjustments in Canada and Russia. Hardwood fiber costs even declined in the U.S. South. Both the SFPI and HFPI were almost 20% higher than two years ago.

During most of the past 23 years since the launching of the wood fiber indices in the WRQ in 1988, the softwood price index has been higher than the hardwood price. This relationship reversed in late 2008, and the hardwood price index is now 4% higher than the softwood price index.

More information is available online.

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Total U.S. printing and writing (P&W) paper shipments decreased 9% in April compared with April 2010, according to the AF&PA (Washington, D.C., USA) April 2011 Printing-Writing Paper Report released this week. All four major P&W grades posted decreases compared with last April. U.S. purchases (shipments + imports – exports) of P&W papers decreased 5% in April. Total P&W paper inventory levels increased 3% compared with March 2011.

Some points of interest from the report include:

  1. March exports of uncoated free sheet (UFS) increased year-over-year for the first time in eight months
  2. Inventory of coated free sheet (CFS) increased for the third time this year in April
  3. The coated mechanical (CM) inventory month-over-month increase is in the double digits for the second time this year
  4. Uncoated mechanical (UM) shipments were down in the double digits year-over-year for the first time since November 2009.
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In April, European demand for newsprint edged up 2.5% (18,000 metric tons) compared with the same period last year, according to CEPIPRINT, Brussels, Belgium. However, total shipments were down 2.5% (22,000 metric tons) due to a drop in exports of the grade. Shipments overseas fell 32.5% (53,000 metric tons) in April, partly due to a slump in exports to the Far East, CEPIPRINT reports.

In the SC-magazine paper sector, exports climbed 21.9% (13,000 metric tons) in April. The rise in shipments overseas helped to offset the flat level of shipments to Europe, which fell just 0.5% (1,000 metric tons) compared with the year-earlier period.

There was a similar picture in the Coated Mechanical Reels sector in April, with exports of the grade rising 38.3% (41,000 metric tons). Shipments to Europe were down 1.1% (5,000 metric tons), but thanks to the boost from exports in April, the level of total shipments of CMR was up 5.5% (35,000 metric tons).

In the uncoated mechanical sector, European demand was level at 182,000 metric tons in April 2011 against April 2010. Shipments overseas were down 2.5%, but this only represented a drop of 1,000 metric tons. As a result of the flat development, total European shipments of the grade remained unchanged at 218,000 metric tons in April.

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Grays Harbor and Domtar have recently announced closure of ˜2.7% of North American uncoated free sheet (UFS) capacity. According to Mark Wilde, senior analyst with Deutsche Bank, this will tighten the UFS market and should provide a much-needed boost to current industry pricing initiatives: $60/ton on cut-size, effective June 1 and $40/ton on offset, effective April 1. Estimated process for 20-lb repro bond fell $15/ton in May to $1,045 - $1,095, -3.8% y/y. Demand is lackluster: -3.7% y/y and -11.3% m/m in April, Wilde reports.

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More North American producers announced a $20/metric ton price hike on NBSK (northern bleached softwood kraft) pulps for June 1. If implemented, North American NBSK will rise to a record level of $1,040/metric ton, Wilde reports. According to PPPC, he adds, April pulp shipments were -15.0% m/m, but +3.3% y/y. The m/m decline was mostly due to lower shipments in China after a record March. Inventories rose by one day of supply (+2 on softwood, +1 on hardwood). In Europe, producers have set NBSK at $1,040/metric ton, +$30/metric ton m/m. However, a strong euro has limited margin gains for euro-based mills.

Meanwhile, Asian prices remain under pressure. In China, trade contacts suggest that local NBSK prices have fallen ˜$70 - $80/metric ton from May's $920 - $930/metric ton list price level in recent weeks, Wilde continues. Fall-out of higher pulp prices? he asks. With paper demand sluggish, producers may find it difficult to raise paper prices, forcing non-integrated P&W mills to curtail/shutdown production. Last week's news that Grays Harbor Paper is closing is one such example, Wilde explains.

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Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, reports that it has closed the sale of its 75% indirect interest in ACH Limited Partnership (ACH) to a consortium formed by a major Canadian institutional investor and a private Canadian renewable energy company. As previously announced, cash proceeds for AbitibiBowater's interest will amount to approximately C$300 million, $185 million of which the company intends to use to redeem a portion of outstanding 10.25% senior secured notes due 2018, while the balance of proceeds will be used for general corporate purposes.

"With the sale of our interest in ACH, the company is able to pay off a considerable amount of debt and further improve our financial flexibility. We will continue to focus on reducing AbitibiBowater's debt, and this represents an important step forward in line with our commitment," said Richard Garneau, president and CEO.

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Ahlstrom, Finland, reports that it will invest in additional transportation filtration materials capacity at its site in Louveira, Brazil. The investment will be completed in the first quarter of 2012.

"We have been pleased to grow with our key customers and as a commitment to the filtration business we are expanding the operation. This is another important step in our global growth roadmap where we have strengthened our global platform in Europe, Asia, and now in South America. We will continue to keep our focus on our markets in all four geographies, enabling Ahlstrom to be a global supplier in the filtration market with a full offering of filter media," said Gary Blevins, VP, Transportation Filtration.

Ahlstrom is a major manufacturer of filtration materials globally with 11 production sites across four continents. In 2010, the company acquired a transportation filtration plant in Binzhou, China, and announced a EUR 17.5 million investment to expand capacity in Turin, Italy.

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Catalyst Paper, Richmond, B.C., Canada, says that total downtime at its Powell River, B.C., and Snowflake mills (Arizona, USA) in the second quarter is expected to be 25 days rather than 14 days as previously announced. In addition, a cable equipment tray fire at the Powell River mill late Friday afternoon has idled the mill's No. 9 paper machine until later today or tomorrow (Friday) and the No. 10 paper machine until late next week as repairs are completed.

At Powell River, the total mill outage in May was increased from 5 to 10 days to enable additional repairs and testing of equipment in the main steam line serving the mill's operations. The outage also permitted the mill to complete the necessary tie-ins for the G12 energy project preventing further impacts on the mill's operation later in the year. The $12 million G12 project is funded through credits from the Federal government's Green Transformation Program.

As previously announced, three factors at Snowflake – limited availability of affordable waste paper, a total mill planned maintenance outage, and a storage yard fire – have increased mill downtime by six days in the quarter over the earlier forecast of nine days.

Catalyst Paper produces specialty printing papers, newsprint, and pulp. With four mills located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.9 million metric ton.

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Duratex S.A., Brazil, has ordered from Metso, Finland, complete woodyard equipment and Defibrator systems with chipwashers for two new Duratex MDF (medium density fiberboard) projects. Equipment for the first project in Itapetininga, São Paulo, will be delivered in December and for the second project at a later date. The order value is less than EUR 25 million.

The woodyard in both cases will include GentleFeed log receiving, EasyTyre drum debarker, Camura chipper, CSE chip screens, and RRR reclaimers for chips and bark storage. The refining system for each project includes Metso's advanced large capacity EVO 70 Defibrator as well as chipwasher.

The two new MDF plants will have an effective capacity of 1.2 million cubic meters per year when completed.

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Ahlstrom, Finland, has completed the divestment of buildings, land, and assets at its Ascoli plant in Italy to Eurocomet. The value of the transaction, announced this past March 18, was approximately EUR 4 million. Ahlstrom says it will book a non-recurring gain of approximately EUR 2.5 million in its second quarter financial results.

Ahlstrom permanently closed the Ascoli plant and ceased production of one-side coated papers there in early 2008 due to unsatisfactory profitability. Eurocomet will develop the site for purposes other than papermaking and the machinery will be scrapped. Ahlstrom noted that it will keep some of the machinery parts.

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Norske Skog, Lysaker, Norway, has agreed to sell all shares in its energy company Enerpar (Energias do Paraná Ltda) to a subsidiary of SN Power Invest AS in Brazil (SN Power Participações Ltda) for BRL 120 million, equivalent to NOK 410 million at the current exchange rate. The agreement secures the delivery of energy to Norske Skog's Pisa paper mill in Brazil through the end of 2014, and gives SN Power an annual supply of 1.2 TWh electric power from 2015 and up to December 31, 2025. SN Power Invest AS is owned 60% by Statkraft and 40% by Norfund. 

"We have had excess energy in Brazil over a period of time. Through this sale, we secure energy at competitive terms for the Pisa mill, while at the same time realizing the real value of the long-term energy contracts. We are very satisfied with this, and the sale is an important step in our efforts to strengthen Norske Skog's financial position," said CEO of Norske Skog, Sven Ombudstvedt.

The cash effect after transaction costs is on the order of NOK 400 million, and reduces the gearing ratio from 0.90 at the end of the first quarter of this year to pro forma 0.85 after the sale. A minor gain is expected. The final accounting effect of the transaction will be announced in connection with publishing of the figures for the second quarter.

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Nalco, Naperville, Ill., USA, reports that it helped Suzano Pulp and Paper's industrial units in the cities of Suzano, Sao Paulo, and Mucuri, Bahia, in Brazil, significantly reduce water and chemical use in their papermaking process. Suzano, the second largest global producer of eucalyptus pulp and regional leader in the paper market, developed a new set of KPIs (key performance indicators) for its papermaking operations and asked Nalco to find ways to improve its performance, reduce costs, and optimize the use of natural resources.

The Nalco team identified the combination of a new retention, drainage, and formation program with PARETO Mixing Technology to enhance the wet end of the papermaking process. By using the PARETO Optimizer solution, improved mixing was achieved, leading to the desired decrease in water and chemical usage.

With the implementation of these new technologies, total fresh water demand in both mills decreased more than 79 million gal per year, leading to a significant improvement in the sustainability performance.

"As a sustainability-oriented company, Suzano is always looking to increase its business competitiveness while at the same time implementing effective solutions that strengthen innovation," said Ernesto Pousada, executive director of operations at Suzano.

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Tak Investments Inc., Thatcher, Ariz., USA, has announced a proposal to operate a recycled tissue plant in Franklin, Va., and has entered into a Letter of Intent to complete the evaluation, including due diligence and feasibility analysis of this project. The proposed project would include operating an existing recycled fiber plant in Franklin and processing post-consumer recycled fiber into tissue, towel, and napkin products for converters.

The project calls for the modification of a paper machine into a tissue machine that would produce up to 70,000 tpy of recycled tissue and the creation of approximately 80 permanent jobs initially. The facility is targeted to be operational in the third quarter of 2012.

Regarding the project, Tak Investments said that "we think the regional market is in need of a cost-competitive, world class recycled tissue machine and Franklin offers a great location for this facility. We are looking forward to being a part of economic development and job growth in the Franklin community."

Tak Investments currently owns and operates a 70,000 tpy recycled tissue mill (ST Paper) in Oconto Falls, Wis.

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Containerboard/Packaging
RockTenn, Norcross, Ga., USA, and Smurfit-Stone Container Corp., Chicago, Ill., shareholders this past week approved the merger of the two companies. More than 99% of the RockTenn shares that voted at the meeting voted "for" the merger and more than 91% of the Smurfit-Stone shares that voted at the Smurfit-Stone meeting also voted "for" the merger. RockTenn thus has completed its acquisition of Smurfit-Stone.

Pursuant to the Agreement and Plan of Merger, each outstanding share of Smurfit-Stone common stock (other than dissenting shares), has been converted into the right to receive $17.50 in cash and 0.30605 of a share of RockTenn class A common stock. Pursuant to the Agreement and Plan of Merger, Timothy J. Bernlohr, Terrell K. Crews, and Ralph F. Hake have joined the RockTenn board of directors from the Smurfit-Stone board of directors, increasing the number of directors from 10 to 13.

RockTenn Chairman and CEO James A. Rubright said that "we are pleased with the strong support that both RockTenn and Smurfit-Stone shareholders had for this transaction and are excited about the opportunity to create additional value for our customers, shareholders, and employees. The acquisition of Smurfit-Stone brings us one step closer to making RockTenn the most respected and profitable integrated paperboard and packaging company in North America. We welcome the former Smurfit-Stone customers to RockTenn and look forward to providing them with exceptional product quality and service."

In conjunction with the acquisition of Smurfit-Stone, RockTenn closed on $4.3 billion of debt financing, consisting of a $1.475 billion, five-year revolving credit facility; a $1.475 billion, five-year term loan facility; a $750 million, seven-year term loan facility; and a $625 million, three-year accounts receivable securitization facility.

The borrowings under the new debt facilities were used in part to finance the merger, to repay outstanding indebtedness of Smurfit-Stone, to refinance RockTenn's existing credit facilities, to pay for fees and expenses incurred in connection with the acquisition of Smurfit-Stone, and to provide liquidity for general corporate purposes of approximately $1 billion.

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RockTenn, Norcross, Ga., USA, has completed the acquisition of Smurfit Stone Container Corp., Chicago, Ill, (see article above), making it the No.2 player in North America, Mike Wilde, senior analyst with Deutsche Bank, points out, noting that the challenge for Jim Rubright and company now is to integrate Smurfit Stone with RockTenn. "We think uneven market conditions may prompt RockTenn to make capacity decisions sooner rather than later," he says.

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Domestic old corrugated container (OCC) prices in the U.S. were essentially flat in May, Wilde reports, down $1/ton to $155/ton. Key drivers are lower OCC generation in April, strong domestic and export demand, and expectation of higher OCC demand from the startup of several new machines in China in the coming months. Export OCC to China was down slightly in May, Wilde adds.

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Yesterday, June 1, Moving Day Boxes, Chicago, Ill., USA, released its annual moving sentiment survey that illustrates the financial and emotional condition people who are moving are in. "Another way of looking at the sentiment survey is are people happy or unhappy to be moving?" says Matt McCabe, co-founder and president of Moving DayBoxes.com.

"Unfortunately," McCabe notes, "since November 2008 more and more moves have been forced upon people for reasons outside of their control. That is moving back home because of a job loss, moving in with parents or relatives to save money, or moving into a smaller residence that is less expensive."

One particular survey question showed a very troubling trend. When asked "were the circumstances surrounding your last move happier than this move?" more than 70% of survey respondents answered "yes." "This answer was the most surprising," says McCabe "because the number of people that are unhappy about moving is nearly four times higher than the historical average."

While there is some troubling data in this moving sentiment survey, there was one bright spot. The number of moves as a result of a foreclosure was down 10% from 2010.

Other findings in the survey include a trend towards self-moves or hybrid moves. McCabe notes, "More and more people are moving themselves to save money, and if they are hiring a mover it is just to help with part of the move, perhaps moving heavy furniture or a piano, but people are doing more and more themselves."

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ITC, India, reports that its Paperboards, Paper, and Packaging segment recorded another year of steady growth in revenues and profits. Segment revenues grew by 13% over the previous year with segment results reflecting a growth of 20%. ITC notes that in the overall Indian paperboards segment, it currently holds a value market share of about 26% and a significantly higher share of the fast-growing value-added paperboards segment.

The company adds that its Packaging and Printing business continues to invest in "best- in-class" technology and skills to provide the highest value delivery in paper, paperboard, and flexible packaging. The company continues to be a key supplier of value-added packaging to the consumer electronics and FMCG segments.

ITC is one of India's top private sector companies with a market capitalization of more than $30 billion.

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New Products
Oasis Brands, Winchester, Va., USA, has introduced its fully-enclosed, touchless Nvi® Electronic Tissue Dispenser. The standard-sized dispenser is designed to reduce waste and labor cost while minimizing the risk of cross-contamination, and serving as an aid to users with a limited range of mobility.

 

Cross-contamination is one of the most pressing concerns in the healthcare industry and it affects the sick as well as caregivers, Oasis Brands notes. "This fully-enclosed electronic tissue dispenser helps to create a more sanitary environment with no exposed rolls. The ADA compliant dispenser system also meets the needs in handicapped stalls for people with limited mobility," the company explains

"Oasis Brands believes there needs to be a player in the industry who has the willingness to invest in brand development," said "In an era when new technologies are expected to improve people's lives in all areas of building management and maintenance, the washroom is often overlooked. Oasis recognized an unmet need in the current washroom offering and committed to product development to offer a solution," Philip Rundle, chairman and CEO of Oasis Brands, said.

More information is available online.

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Metsä Tissue Corp., Finland, this week introduced Green Spa, a new plastic-free sauna seat cover in its Katrin brand tissue group. Completely biodegradable and fully compostable, Green Spa is the first product of its kind to be awarded the Nordic Swan Ecolabel.

"Although Green Spa contains no plastic, it's still fully water resistant," says Metsä Tissue Marketing Manager Juho Ristimäki.

Sauna seat covers are widely used in hotels, spas, and public swimming pools.

Part of the Metsäliitto Group, Metsä Tissue has production units based in Finland, Germany, Poland, Russia, Slovakia, and Sweden. The company employs some 3,200 people and has an annual turnover of about EUR 940 million.

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Published Pricing
Torraspapel, Barcelona, Spain, part of the Lecta Group, has announced a price increase on its carbonless paper range, effective July 4. The price increase will be from 5% to 7%, depending on product presentation and country.

The company said that the cost pressure on raw materials and other manufacturing inputs, especially energy, remain extremely high, making this price increase inevitable. "Our customers will be informed personally by our sales teams, who will provide any further information they might require," Torraspaper noted.

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TAPPI News

Darren Swales, Ph.D., has been an active, engaged member of TAPPI ever since first joining in 1996. He admits his passion for volunteering was fueled in large part by a university professor, Michael J. Jaycock, who steered Darren toward TAPPI during his pursuit of multiple degrees in chemistry. An ironic twist of events considering it was another academic many years before who had advised Darren not to pursue studies, or a career, in the sciences. Darren soon learned that Professor Jaycock's advice was not without merit, attending his first conference upon relocating to the United States and joining shortly thereafter.

Ask Darren how TAPPI has assisted his career over the last 15 years and he replies simply, but enthusiastically: Networking! "The more you put into membership, the more you get out of it," he advises. As the Applications Group Manager Paper for Kemira Chemicals, Inc., Darren understands the concept of smart work producing great results. So exactly why was this Ph.D. in Chemistry told he would never excel in the profession he has achieved so much success in?

Find out the reason why by reading this month's Member Spotlight 

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member (or even yourself!) just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire  to fill out and return. We look forward to seeing you in the Spotlight!

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TAPPI is still accepting applications for the William L Cullison Scholarship . Scholarship funds are currently awarded in increments up to $4,000 per academic year for the last two years of a student's undergraduate program. The deadline has been extended to August 1, 2011. All candidates will be notified of their application status by September 1, 2011.

Potential candidates must meet all of the following eligibility criteria to be considered. It is important to note that financial need is not a requirement to be eligible.
• Major in a pulp and paper science course of study at a college or university. Many of these colleges and universities sponsor a TAPPI Student Chapter.
• Maintain a 3.5 grade point average or better (on a 4.0 scale) through the first two years in a four-year program, or first three years in a five-year program.
• Demonstrate outstanding leadership abilities.
• Demonstrate significant interest in the pulp and paper industry.

TAPPI's selection committee has created a new, expedited process for applicants to submit their application. It recognizes that while students are seeking additional ways to cover the cost of their education, they also appreciate electronic solutions to facilitate application submission. The committee is happy to oblige and the online process is fairly straightforward.

For further information and to apply go to Scholarship Information

 

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The TAPPI Hands-On Workshop for Pulp and Paper Basics takes place June 13-17 at North Carolina State University in Raleigh, NC, USA. It's an essential course that teaches the basic concepts in pulp and paper manufacturing. It's for anyone wanting to improve their role in operations.

CEUs Available

TAPPI will award 3.7 continuing education units (CEUs) to participants who attend the education sessions and complete a final program evaluation.

Attendees Will Learn How To
- Discuss the structure and chemistry of wood
- Analyze the chip preparation operation
- Describe chemical and mechanical pulping processes
- Describe pulp processing operations
- Describe the stages and operations of bleaching
- Discuss the importance of chemical recovery in a pulp mill
- Discuss waste treatment and environmental regulation
- Identify the major grades and properties of paper
- Discuss stock preparation and the approach system
- Explain the operation of the wet end and dry end of the paper machine
- Discuss basic converting operations
- Discuss the recycling of paper

Workshop Materials

Participants will receive a set of course notes and CD (about 400 pages) prepared by the instructors to supplement the presentations made during the course. Students also receive a course polo shirt.
"The information was detailed and easily understood by both engineers and non-engineers. I will definitely suggest the course to others!" - Previous Attendee.

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The 2011 TAPPI PLACE Extrusion Coating Course will be held August 16-18 at the Sheraton Nashville Downtown in Nashville, Tennessee, USA.

During the course you will learn how to:
- Streamline processes
- Achieve product design requirements and end uses
- Maintain equipment
- Address safety concerns
- Anticipate and resolve problems

View the Course Schedule to see all that's presented by 10 expert instructors.
Enjoy beautiful Nashville this summer and learn!

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This is the course that can change the way you run your corrugated operations for the better.
The TAPPI Lean Maintenance for the Corrugated Industry Course  - June 7-8, 2011 – is designed to provide you with the information and knowledge required to create a smoothly functioning, effective and efficient maintenance team in your corrugated plant. And, the best part? Only two days of your time. Now, that's efficiency already.

W. Jeffrey Hahn is the course instructor and brings more than 50 years experience to this course, which is a leadership and management program for maintenance leaders, assistants, production managers, and anyone who wants to learn more about implementing a first-class operation to improve up time, reduce costs and increase profits.

The Proposed Course Schedule provides detail of the content offered. We'll see you here at TAPPI in Norcross, Ga., USA in June!

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TAPPI member Scott Pantaleo has consistently established his credentials as a Subject Matter Expert (SME) in headboxes, forming and approach flow systems throughout his career.

Since joining TAPPI in 1989, he has attended or taught at numerous conferences, courses and classes, and credits TAPPI's Standards and TIPs as being yet another "priceless on-the-job resource." One of the many benefits he has derived from his membership includes the opportunity to network with professionals both inside, and out, of his immediate area of expertise – leading to a new dimension of understanding beyond, but still aligned with his core competencies. For more than 15 years he has served as a course instructor for Wet End Operations, and is currently Chair of the Fluid Mechanics Committee and a member of the Papermakers Committee. He considers his relationship with TAPPI to be a major component in helping to build his SME reputation. Find out the reasons why by reading this month's Member Spotlight (http://www.tappi.org/Membership.aspx).

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member (or even yourself!) just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire (http://www.tappi.org/content/membership/spotlightquestionnaire.pdf) to fill out and return. We look forward to seeing you in the Spotlight!

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The editorial board of TAPPI JOURNAL has selected "Calendering effects on coating pore structure and ink setting behavior" by Peter Resch, Wolfgang Bauer, and Ulrich Hirn as TAPPI JOURNAL's Best Research Paper for 2010. The paper appeared in the January 2010 issue and was one of eight nominated for the award. Editorial board members assessed the research based on innovation, creativity, scientific merit, and clear and concise presentation of ideas. The paper and its authors were honored at the Awards Gala Dinner held in early May during PaperCon 2011, held May 1-4 at the Northern Kentucky Convention Center near Cincinnati, Ohio.

Peter Resch, Primary AuthorPrimary author Resch, who is quality manager at Sappi Austria in Gratkorn, used research presented in the paper as basis for his Ph.D., and publication in TAPPI JOURNAL counted towards partial fulfillment of his doctoral requirements at Graz University. Bauer is a professor and Hirn is a research assistant with Graz University of Technology's Institute for Paper, Pulp and Fibre Technology in Graz, Austria.

 

 


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The 2011 Northeast PIMA Annual Scholarship Tournament is set for next Friday, June 10, 2011. It features:

  • Shot gun start: 8:00 AM sharp
  • Entry Fee: $100.00 (golf, cart, BBQ, prizes, range, etc.)
  • Registration deadline: When Full
  • Event location: Fox Ridge Golf Club, 427 Harmons Corner Road, Auburn, ME 04210 

All proceeds from this tournament will go to the Northeast PIMA Scholarship Fund. This tournament supports a great cause. Try to register very soon as last year we filled up. On behalf of Northeast PIMA and its affiliates, your continued support is appreciated to the utmost. Note: Cancellations cannot be accepted after June 5th.

For more information please go to:

http://www.tappi.org/Groups/Local-Sections/MH/Announcements/PIMA-Annual-Scholarship-Tournament-2011.aspx

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Presenting a chemist's perspective on the papermaking process, The Chemistry of Modern Papermaking is an extensive collection of data that combines the organic chemistry of paper with its potential applications. Within each chapter, paper chemicals are organized based on their chemical structure.

After an introduction and brief history, the book explores the papermaking process, retention aids, temporary wet strength resins, wet strength resins, dry strength resins, internal sizing agents, creping adhesives and softeners, and chemicals for paper surface treatment.  Included are over 3000 references to facilitate further study. It's scheduled for a summer 2011 release.

Pre-order your copy now!

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The 2011 TAPPI International Conference on Nanotechnology for Renewable Materials is scheduled for June 6-8, 2011 at the Sheraton Crystal City in Arlington, Virginia USA. The comprehensive Technical Program includes over 60 papers and five keynote presentations.

The event's Poster Session will feature findings from the leading researchers from around the world as well as a Student Poster Competition! Abstracts that focus on new and novel uses are highly encouraged. Analysis of challenges and trends in emerging markets for renewable nanomaterials are sought to provide a foundation for new research and industrial activities. Prizes and certificates will be awarded to the first and second place winner.

Learn more about the event.

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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

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