Thursday, March 21, 2019 - Member
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In This Issue |
Weekly Spotlight
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From The Experts
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Market Roundup
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Pulp & Paper
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Containerboard/Packaging
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Legislative
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Nanotechnology
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New Products
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Published Pricing
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Sustainability
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Energy
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People
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TAPPI News
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Weekly Spotlight
When producing chemical wood pulp from pines / coniferous trees, sulfate turpentine may be condensed from the gas generated in Kraft process pulp digesters. Although different than gasoline and even ethanol in some fundamental ways, engines nevertheless successfully used abundant Turpentine oil from trees in Japan's tough post-World War II years when fossil transport infrastructure was deliberately destroyed. Japanese turpentine oil of the late 1940s would effectively run in a 2 cycle Honda motorbike engine. If enough post-consumer wooden waste was diverted from landfills, could Turpentine create power output beyond the local mill's power boiler, perhaps even for civilian use via increased burn on additional boilers?
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Using similar wood fermentation as what is used to produce biofuel, they were able to remove toxins and make it flavorful. Their method pulverizes the wood into a creamy paste, adds yeast and an enzyme to start the fermentation process without using heat which preserves the specific flavor of each tree’s wood. They have used cedar, birch and cherry thus far.
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Pixelate's fourth-quarter 2018 Ad Fraud Update found the U.S. had an average fraud rate of 21%, up from 17% in the third quarter. The company determines the rate of ad fraud by examining invalid traffic across 80 million domains and 1.5 million apps. This may represent yet another "digital pitfall" adding to the list of reasons for companies to possibly fall back on the reliability of conventional media, including print-on-paper.
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From The Experts
MediaPost's recent addition, Jason Gaunt, has so far made a name for himself as an advocate for effective 21st century print-on-paper marketing. Hired in Dec. 2018, Gaunt has penned only two pieces, but both are common in their title on the defense of print media - though the contents of each are indeed unique. Time will tell if Gaunt is indeed a well-informed ally of the industry in an unfortunate era of "greenwashing" against renewable forest products, but so far his perspective seems rather sharp and promising. Both articles are linked, though the most recent feature is described in OTW's title.
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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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Market expected to expand at a CAGR of 3.9% during the forecast period; roughly consistent with expectations by market research firms for packaging papers such as paperboard (similar to Kraft sack paper except with considerably higher gsm thickness) where the forecast heading into the mid-2020s generally predicts a figure between 3% and 5% CAGR.
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Pulp & Paper
"With the start-up of the Saint-Félicien capture unit, CO2 Solutions has achieved an exciting milestone, not only for the Corporation but also for the carbon capture industry," stated Richard Surprenant, CO2 Solutions’ Chief Technology Officer. "This unit, a 3x scale-up from our currently operating 10-tpd unit in Montreal-East, confirms the position of our proprietary enzymatic technology as the world’s most advanced second-generation carbon capture technology. We have demonstrated once again the dependability and simplicity of our enzymatic technology."
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"This acquisition is a continued step towards Paper Excellence Canada’s long-term growth plan within Canada’s pulp and paper industry and clearly demonstrates its commitment to the province of British Columbia," said Brian Baarda, Paper Excellence Canada CEO. "Together these combined operations will improve efficiency and sustainability in the forest industry in British Columbia and Canada."
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The decrease in coated paper demand over the last several years resulted in overcapacity in our industry. The worsening of this trend observed in the last months is the main reason for the temporary line 8 shutdown at the Condat mill. Condat product range and service levels during this period are guaranteed due to efficiency improvements and streamlining on Condat line 4 as well as contribution of the group’s other coated paper mills.
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The first phase includes TIPS Production Planning and Trim Solutions implementation for Sun Paper’s 7 mills and 14 paper machine lines with the needed ERP integrations. The parties have also agreed to expand the collaboration for wider use of the TIPS MES and the Manufacturing Execution System.
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Containerboard/Packaging
This bespoke agreement sees ABP handling paper reels destined for consumer packaging, from a weekly container shipment from Ghent at the Hull Container Terminal. It is then offloaded into the UK’s only All Weather Terminal storage area. VPK has moved its shipments to the Humber area to enhance ease of distribution by road and strengthen its customer relations. A fully-integrated IT system enables live visibility of stock.
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DS Smith outlines some of the key, primary challenges for pharma-packaging as well as significant opportunities in their innovation in a feature article by the company on their strategy. In addition to a large population growth stressing the world healthcare system, demanding more materials (sustainable) in the years and decades ahead, packaging must adapt to new tech. preparations in medicine as well as marketing, such as the advent of direct delivery of packages to patients instead of pharmacy handling.
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Investment would include a new world-class kraftliner line with a capacity of 450,000 mtpy and the modification of the pulp mill and drying machine to produce unbleached brown pulp, all with improved enviornmental performance. Conversion of Oulu enables Stora Enso to improve position in the growing packaging business. Aim of the change is to improve the competitiveness of Oulu Mill and to ensure a long-term future for the mill. Initial investment price has also been cut 50% for 2019-2021 from the original feasibility scope.
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"At Stora Enso, we believe diversity strengthens our competitiveness and we aim to reflect the societies in which we operate. Diverse working teams enable us to explore different perspectives and challenge our way of thinking, contributing to better decision-making," said Karl-Henrik Sundström, Stora Enso’s CEO.
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With the new production line PM 3, GSPP will produce high-quality testliner and fluting grades as well as strengthen its position in the Malaysian market. Start-up is scheduled for 2021. Total value of order of this type is typically around EUR 60-70 million.
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Legislative
Twin Rivers is leading a coalition that petitioned the court to vacate the rule as unlawful, arguing that the SEC failed to meet its statutory duty to consider comments and alternatives from the Investor Advisory Committee and that the SEC failed to properly consider the costs and benefits of the rule. Ken Winterhalter, President and CEO of Twin Rivers Paper Company said, "We were very pleased to see the close questioning the SEC was subjected to during the court argument on the SEC’s rule 30e-3."
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This week's budget commits more than $250M in funding to bolster Canada’s forest products industry, which employs more than 230,000 Canadians. "Today the government signaled that it recognizes and supports the transformation taking place in Canada’s forestry communities, noted Derek Nighbor, FPAC’s President and CEO.
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Nanotechnology
Nippon Paper will invest approximately 4.7 billion yen into this facility, which is planned to be completed in Nov. 2020. Upon construction, Nippon will re-establish a CMC production system and work toward a shift to high-value-added and high-quality fields such as special brands for food and lithium ion batteries developed with its unique technologies.
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New Products
This new line of products represents years of development and experience addressing the constant evolution of products used for the aerospace composite segment."The Ahlstrom-Munksjö Coated Products liners deliver solutions to the market using unique technologies that extend our products beyond traditional release liners," explained Harry Challender, VP of Coated Products.
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With the concept of "Imprinting Life for a Colorful World", the Inacopia brand offers its greatest attribute, a premium quality paper for color printing applications. Company will present the two Inacopia ranges – Elite and Office – which are positioned differently: the first is totally focused on high quality color applications, while the second is for office applications, where multifunctionality and trouble-free printing are key factors.
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Freshen Tech, part of the Away from Home range, developed for bars, hotels, restaurants, public facilities, public transport, etc., is the new toilet paper that neutralizes bad odors thanks to an active ingredient capable of modifying their molecular structure. Freshen Tech is the latest addition to an innovation-focused product range which Sofidel, under its Papernet brand, has developed for the AfH sector.
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By using one type of paper for multiple printers, the true benefit of digital is maximized, delivering high quality graphics combined with high flexibility. In addition, wastage is reduced and stock is easier to control. As well as digital printing, the paper is also suitable for both UV and water-based inks providing more choice for customers.
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Published Pricing
Solenis will increase prices by 5-20% on specialty chemicals for the pulp and paper industry in the Asia Pacific region. The company will also increase prices by 5-10%for polyacrylamide (PAM) products in the region. These price changes are necessary due to the increase in certain raw material costs combined with a tightening global supply chain.
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Product subject to price revisions: Overall newsprint; Markup: 100 Yen/ream; Timing of implementation: From April 1, 2019 delivery. In recent years, the demand for newsprint has continued to decline, but the company is striving to ensure stable supply and quality of newsprint while implementing various cost-cutting measures.
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Sustainability
"We manufacture paperboard-based folding cartons, which is a sustainable alternative to plastics," stated Colbert President and COO, John Lackner, "and now we are able to further our strategy to meet overall clean energy goals with wind energy credits. We firmly believe it’s important to make sustainable decisions with the future in mind – for our employees and their families, our customers and our community."
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Each year on March 21, we celebrate the International Day of Forests to raise awareness of the importance of sustainably managed forests. You’ve probably heard many common myths about the pulp and paper industry’s effect on forests, but the truth is that sustainable forestry practices are instrumental (not detrimental) to the health and vitality of our precious forest resources.
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Although paper systems do have a lower impact than synthetics, the recycling industry is nonetheless complex and in the process of evolving. Paper sustainability can be impacted by government regulation, market demand and recycling standards. However, high recyclability, innovations in manufacturing and government initiatives aimed at improving manufacturing suggest that new paper systems are bound to become sustainable.
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"With a focus on zero damage, we have worked extensively with training and information transfers between planning, harvesting and soil scarification. We can see that the most severe damages have been reduces and that we also have fewer damages on the most sensitive part of the remains." Correct placement of conservation stumps around cultural remains reduces the rate of damage. By planning their position and then felling trees to leave 1.3-meter-high stumps around the remains provides protection.
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Formed fiber products are manufactured from various chemical pulps and chemi-thermomechanical pulp (CTMP) by pressing it into a desired shape in a molding machine. The raw material is pulp made from wood from FSC and PEFC certified. Formed Fiber technology enables manufacturing of products that are designed for circularity, meaning that they are renewable, recyclable and biodegradable and do not contain any plastic.
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Energy
Kemsley Paper Mill Facility will replace the existing CHP and extend E.ON’s partnership at the site with DS Smith for the next 20 years. The facility has been specifically designed to set the standards in efficiency, sustainability and reliability. The new plant will enable a carbon reduction of 36,000mtpy. This is the equivalent of 30,000 medium-sized cars driving over 6000 miles1 a year.
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People
For the last decade and a half, Thomas McDonough was an executive manager for Bilcare Research and Tekni-Plex Inc., pharmaceutical packaging and specialty film manufacturers. At these companies, he executed commercial and operational initiatives at local, national, and multi-national levels.
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Mario Plourde, President and CEO of Cascades, has announced a change in leadership for the company’s Tissue Group: Jean-David Tardif will take over from Jean Jobin as President and COO. With a bachelor’s degree in mechanical engineering and an MBA, Tardif first joined Cascades in 1997.
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Construction of a new paper machine at site in Kehl on the Rhine river is part of development of the new product division headed by Eckhard Kallies. It will begin operation in Sept. while the new coating machine will begin operation in July. In addition to conventional papers for flexible packaging, Koehler’s decades of expertise in coating tech. will enable it to produce papers whose barrier properties will replace plastic in some areas of packaging.
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Dave Moore has accepted a promotion into an expanded role within the company. Dave currently works within Midland’s National division as President, National Printers. Dave will retain his title and current responsibilities, but in addition he will now take on a corporate role in which he will assist other Midland divisions with growing Midland’s share at key printing accounts.
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Kevin Wade, leaving officially on April 1, has been a senior executive at Midland since 2015, when Midland acquired Shaughnessy Paper based in St. Louis, Mo., USA. Wade began his career with Reliable Paper in Chicago in 1968. He subsequently worked for Curtis Paper (1971-1974), and then Lewis Paper (1975-1984), before starting his own company, Wade Paper, in 1984. Kevin ran Wade Paper successfully for 25 years, before selling the business to Shaughnessy.
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TAPPI News
Explore each major roll converting sub process through final product and more! Bring comfortable shoes because this is a training event where you’ll be moving around learning about tissue converting lines and working with a hands-on pilot converting line in workshops. TAPPI is presenting a comprehensive, three-day training to help you learn about the latest technologies and resources available in converting operations. This is a unique face-to-face educational course covering the entirety of converting operations.
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Where is the specialty paper market going? How has digitalization impacted paper and packaging? What new innovations and technologies will help the industry stay competitive in future? Get answers at Specialty Papers Europe 2019. Register today and save an additional 15% by entering the TAPPI promo code: SPEU19TAP
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Subheading: Industry recognized experts help you discover what the papermachine is capable of doing and how pushing those buttons impact the entire process.
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