Thursday, February 7, 2019 - Member
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In This Issue |
Weekly Spotlight
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Market Roundup
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Pulp & Paper
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Containerboard/Packaging
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New Products
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Published Pricing
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Sustainability
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People
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TAPPI News
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Weekly Spotlight
Central to all stories is the book, which appears to be going through another transition. After years of having their sales steadily eroded by digital formats, the print book is back on the rise, with sales across a number of European and international markets increasing.
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Market Roundup
Summaries combined with scientifically transcribed notes are combined into a new presentation. Edited into an abstract / outline as well as highlighting newest industry data and industry future trends as part of a sneak preview allowing readers to explore how this type of report can identify the products and factors driving revenue growth and profitability. CAGR 20%+ recorded for 2014-2017. Sector predicted to approx. double growth from now through 2022.
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Pulp & Paper
Machinists Local 2740, which has 74 members, ratified the contract this past Thursday evening after an earlier contract offer was unanimously rejected in a vote last week, after which the union then voted to authorize a strike. The union said in a news release that it went back to the bargaining table with Sappi and won significant improvements in the contract offered by the company.
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SCA (Sweden) and Latvian Forest Company have signed a letter of intent for SCA to acquire 10,000 hectares of forest land in Latvia. Latvian Forest Company owns and runs a number of forest farms in Latvia. The purchase-sum would amount to approximately SEK 260 million (EUR 26 million).
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BASF will own 49% of the combined company and 51% is collectively owned by Solenis management and funds managed by Clayton, Dubilier & Rice (CD&R). The new Solenis has approximately 5,200 employees, with increased sales, service and production capabilities across the globe.
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Stora Enso is implementing a profit protection program of EUR 120 million targeting reductions in variable and fixed costs, as market uncertainty increases. The program will include all divisions and corporate functions. The group estimates that some effects will be visible already during 2019 with full impact by the end of 2020.
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Containerboard/Packaging
As this was the last regulatory approval required to complete the pending acquisition, Greif and Caraustar Industries expect the acquisition to close on Feb. 11, subject to customary closing conditions.
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From here Marbach will supply materials to Mexican and North American die and packaging manufacturers. In addition, training in the application of technologies will be offered. Marbach's goal is to support the Mexican market in its further development.
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Most of the participants stated that they would prefer paperboard because of its recyclability but commented that they wanted to see the product better. Based upon the overall findings, the participants were willing to pay more for the paperboard carton than the plastic box, which demonstrates that consumers are now actively looking for alternatives to plastic.
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"We are pleased to have completed an amendment to our Revolver, TLA and TLB facilities, which provides us with the appropriate liquidity and structural flexibility to complete our pending acquisition of LSC, and maintain a strong, flexible balance sheet," said Dave Honan, Quad/Graphics EVP and CFO.
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Two Sides member, Smurfit Kappa, has been the first company to personalize the publication. By adding its organization’s text and imagery to the booklet, Smurfit Kappa has created a powerful tool which can be used to raise awareness of paper packaging’s sustainability to customers and wider stakeholders. Learn more and download the booklet.
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New Products
Creaset HG HWS is ideal for beer and wines, whose labels require high-resistance to low temperatures and ice water, guaranteeing a flawless image throughout their useful life. It also offers excellent performance on labeling lines, adapting to the bottle perfectly and, thanks to its anti-moisture treatment, avoiding raised borders, blistering and creasing of labels.
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A team of specialists from Smurfit Kappa’s (Dublin, Ireland) Nervion and Sangüesa Paper Mills worked with the INTIA (a research center for agrifood technology in Spain) to identify a way to use long pine fibers from sustainably managed local forests as a basis for the new paper to be used for farming.
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Arla (Finland) wants to provide consumers with new opportunities to choose more responsible products. This year, Arla has been the first company in Finland to use renewable wood-based bioplastics in gable top paperboard cartons for milk, yoghurt and cooking products.The tall oil-based raw material is a Finnish innovation by UPM.
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RafMore label adds transparency, reduces inefficiencies and waste, and improves the user experience for e-retailers, logistics providers and consumers. The information attached to the label can be updated online or by scanning the code without needing to print a new label for the package.
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Published Pricing
Effective with orders shipping on or after Mar. 1, Evergreen Packaging is increasing the transaction prices for all grades by $3.00/cwt ($60/ton). All other standard upcharges will continue to apply.
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Pricing will increase 5-7% on the following grades: Finch 94 Rolls; Finch Offset Rolls; Finch Reply Postcard Rolls; Finch ThruPut Wove, Finch ThruPut Advantage, and Finch Image DME; Finch Forms Bond; Finch MOCR Laser; Finch Engineering Bond; Finch Inkjet Products; Finch Pub Book; Finch Technical Specialty Products; Finch Office Papers.
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Price up 5-7% for the following categories of paper grades: • FRP Envelope Papers • FRP Glacier Opaque • FRP Torchglow Opaque and Multipurpose Pastel Papers • FRP Reply Card Papers • FRP Index, Vellum Bristol and Tag Papers • FRP InkJet Papers • FRP MOCR and Ledger Papers • FRP 100% PCW Papers • FRP Book Papers.
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Effective with shipments Mar. 1, International Paper (IP) will increase prices by 5%-7% on the following products: Williamsburg Rolls, Offset, Return Postcard, and Treated Inkjet. Additionally, Hammermill® and HP® recycled products will increase by $5/cwt.
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Effective with shipments on or after Mar. 4, Midwest Paper Group will be increasing prices by 5-7% on Ethos Offset, Ethos Offset 30% PCRF and Ethos Offset 100% PCRF. The increase applies to all basis weights, finishes and private label grades.
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Company will be increasing the price of Orca, Natural Choice and papers as well as all private label cut-size brands by 6-7%. Covers the following NORPAC papers: Orca Offset, Orca Envelope (white wove), Orca Book, Orca Digital, Orca Engineering Bond, Orca Copy Paper, Orca 30 Copy Paper, Natural Choice Copy Paper, Natural Choice 30 Copy Paper, Natural Choice Digital.
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Pixelle Speciality Solutions (Ohio, USA) is announcing a price increase for carbonless roll products and security papers sold in U.S. and Canadian markets. Productivity and efficiency improvement efforts implemented by Pixelle Specialty Solutions continue to be outpaced by the inflation of a variety of input costs.
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Company will raise the price of its uncoated freesheet grades noted below by 6% to 7% effective with shipments on or after Mar. 1. This includes: Resolute Connect, Resolute Connect Smooth, and Resolute Bag. Increase will apply to all basis weights, and includes all upcharges.
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Company announced it will increase our prices by an average of 5-7% on Rolland Enviro® Copy & ReproPlus®, effective with shipments on or after Mar. 1. Price increases apply to all; rolls, folio and cut size. All standard upcharges will remain unchanged.
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On Mar. 1, Suzano (Brazil) will increase prices by 5-8% on the following products: Suzano® Branded and Private Label Office Papers; Prisma Bright® Offset Rolls. All current standard upcharges and terms of sale remain in effect until further notice.
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Effective with orders shipping Mar. 1, Navigator North America (Conn., USA) will increase the price of all cut size offce papers, including Navigator, Pioneer and Discovery by about 5-7%.
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Effective with all new and existing orders with confirmed delivery dates of Mar. 1, or later, Verso is increasing the transaction price of all Uncoated Freesheet grades, including but not limited to: Ideal® Offset by as much as 7%. Increase applies to all aspects of Uncoated Freesheet grades.
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Sustainability
Specific chemical oxygen demand was slashed by a third. In addition, the cessation of pulp purchases resulted in a drop in sulphur emissions and solid landfill waste. The alteration to production has also had a generally positive impact upon the consumption of externally generated electricity with a cut of around 10% per metric ton of finished product.
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Over 5,000 companies submitted information to be independently assessed against CDP’s supplier engagement rating methodology. Of the companies that participated in CDP’s supply chain program during 2018, only 3% were awarded a place on the leader board.
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Partnership builds on SFI’s previous work to create a Small Lands Group Certification Module, draws on AFF’s expertise in family woodland conservation, adding elements to clarify support for long-term landowner engagement, ongoing monitoring, and forest management practices to enable lands in the U.S. to be certified to ATFS, and in Canada to SFI.
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According to a new industry headline article sponsored by UPM, the chemical industry can only become a sustainable sector once it bids farewell for good to fossil raw materials such as crude oil, natural gas and coal, and uses nothing but renewable carbon as a raw material in organic chemistry.
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People
Michael Ostrowski is a 30-year veteran of the forest products industry. Most recently, he held the position of VP, Supercalendered Sales at West Linn Paper Company where his primary area of responsibility had been the sale of graphic papers to both end user and merchant accounts.
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Stan Blakney brings to the role 20-plus years of senior leadership experience in manufacturing, which includes domestic and international operations expertise, as well as a proven track record of successfully transforming business performance in challenging capital equipment manufacturing environments. He most recently served as COO at Goss Intl.
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The appointment of Adolfo Orive follows the decision by Dennis Jönsson to step down from his position after 14 years as President & CEO and 36 years with the company. Adolfo Orive, presently Cluster VP North Central and South America, joined Tetra Pak in 1993.
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TAPPI News
Don’t miss out this March on Flexible Packaging training that teaches not just one method, but two! The TAPPI Blown and Cast Film Extrusion Course features the latest industry tips, techniques, and technologies in both extrusion methods.
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What can mills do today to remain competitive? TAPPI’s PaperCon 2019 asked Todd Varner of Jacobs to share insights into critical issues facing the industry today and how mills can overcome them. Learn more about Todd’s interview and what key trends and issues will also be addressed at PaperCon 2019.
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