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Travels with Larry Archive
Thursday, April 29, 2010
members edition
Weekly Spotlight
Papermakers and other industry professionals are registering for PaperCon 2010 at a pace exceeding previous years.
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The mid-year program meeting for the TAPPI 2010 PEERS (Pulping, Engineering, Environmental, Recycling and Sustainability) Conference (formerly the Engineering, Pulping and Environmental Conference), was recently held at TAPPI's headquarters in Norcross, Ga., USA.
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Market Roundup
Uncoated groundwood N.A. list prices in April rose for both offset and supercalendered (SC) grades.
Learn More...
 
Coated groundwood April list prices in N.A., also were reportedly up around $5/ton.
Learn More...
 
Continuing in the mechanical papers realm, April newsprint list price for 30-lb U.S. East rose $10/metric ton to $575/metric ton, while prices in the West remained flat at $535/metric ton.
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The 2009 international financial crisis had a major negative impact on worldwide demand for pulp and paper products. As a result, the consumption of wood chips and pulpwood for pulp production was lower and global trade of wood chips fell 14%.
Learn More...
 
Pulp & Paper
Catalyst Paper, Richmond, B.C., Canada, says it will appeal to the Supreme Court of Canada following dismissal of its appeal concerning the North Cowichan 2009 tax bylaw by the Court of Appeal for British Columbia.
Learn More...
 
Grant Forest Products Earlton, Ont., Canada, received approval this week from the U.S. Bankruptcy Court in Delaware, facilitating the Georgia-Pacific (Atlanta, Ga., USA) acquisition of Grant's Allendale and Clarendon, S.C., USA, facilities.
Learn More...
 
The Parkway School District of Chesterfield, Mo., USA, this past week received AF&PA's (Washington, D.C.) annual School Recycling Award.
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NewPage Corp., Miamisburg, Ohio, USA, this past week agreed to supply Spicers Paper, Santa Fe Springs, Calif., with a private label brand of coated papers known as Discovery, effective immediately.
Learn More...
 
Stora Enso, Helsinki, Finland, will sell its integrated mills at Kotka in Finland and its laminating paper operations in Malaysia to private equity firm OpenGate Capital.
Learn More...
 
A new labor agreement this week between the Swedish Forest Industries Federation and the Swedish Paper Workers Union ended a 10-day strike that impacted six mills in Sweden that began April 16.
Learn More...
 
Stora Enso, Helsinki, Finland, had announced last August that it planned to permanently close down its Varkaus mill in Finland by the end of 2010 unless there were a robust recovery in the supply and demand balance for office paper that would allow clearly profitable operation. Since then, the company says that supply and demand balance and pricing of office paper have improved, and that it therefore is able to keep the pulp mill and fine paper mill in production.
Learn More...
 
Suzano Papel e Celulose Ltda, Brazil, has awarded Pöyry, Finland, a contract for pre-engineering and preparatory work for mill infrastructure for a 1.3 million metric tpy bleached eucalyptus market pulp mill to be built in the state of Maranhao, Brazil.
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Containerboard/Packaging
Green Production Technologies is the title of a new compendium of German innovators and market leaders in the area of efficient technology.
Learn More...
 
M.A., Kibbutz Ein Hamifratz, Israel, a corrugated manufacturer producing in excess of 80,000 metric tpy, and Kiwiplan, Cincinnati, Ohio, USA, report the successful completion of an upgrade to I.M.A.'s manufacturing and QMS applications.
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MeadWestvaco Corp., Richmond, Va., USA, this week is showcasing its newest line of moisture-resistant paperboard packaging for frozen seafood at the European Seafood Exposition in Brussels.
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SCA, Stockholm, Sweden, this week reported that it has signed an agreement to sell its Asian packaging operations to International Paper Co., Memphis, Tenn., USA, and will focus on hygiene growth in Asia.
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New Products
Mohawk Fine Papers, Cohoes, N.Y., USA, has produced a new video featuring Thomas O'Connor, Jr., chairman and CEO, who discusses why he thinks the company's new Mohawk Loop and Mohawk Solutions additions to the paper marketplace to be a courageous business move in today's shrinking market.
Learn More...
 
As part of an ongoing commitment to sustainability, Sappi Fine Paper North America, Boston, Mass., USA, has announced the launch of eQ Tool, an interactive web based tool that allows the exploration of a full range of factors behind choosing a sustainable paper.
Learn More...
 
Smart Papers, Hamilton, Ohio, USA, continuing its drive to produce coated printing and packaging papers with FSC-certified post-consumer waste fiber, this past week launched in a coated 1-side (C1S) and coated 2-side (C2S) offering.
Learn More...
 
This past week, The Netherlands-based paper producer Van Houtum introduced what it says is "the most environmentally friendly toilet paper in the world."
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Published Pricing
M-real, Finland, will increase the price of its Kemiart coated and uncoated white top kraftliner grades, effective June 15.
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RockTenn, Norcross, Ga., USA, announced this week that, effective with shipments on or after May 24, it will increase corrugated box prices by 10% and corrugated sheets by 12%.
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TAPPI News
TAPPI and its member companies like Kemira use social media to connect internally and externally. Do you?
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TAPPI to partner with Pira International for the Specialty Papers Conference, November 10-11, in Chicago.
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TAPPI Lean Manufacturing - Flexo & Die Cutters – Course is May 25-27 in Norcross,Ga.
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Entry deadline for finest commercially produced corrugated packaging is August 27.
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Division Technical Award and Leadership & Service Award nominees are requested.
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Unique event to focus on practical ways for converting a broad range of biomass resources to renewable energy.
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The TAPPI International Conference on Nanotechnology for the Forest Products Industry solicits program info for 2010.
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"The reasonable man adapts himself to the world. The unreasonable man ..."
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Nalco Company
EKA Chemicals Inc.

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Metso Paper
Weekly Spotlight

Papermakers and other industry professionals are registering for PaperCon 2010 at a pace exceeding previous years. With attendance currently exceeding 1,000, the event is on track to set new attendance records. "The strong participation in PaperCon reflects the importance of face-to-face interaction, even in today's electronic-based environment", says Larry N. Montague, TAPPI president and CEO. "Our members repeatedly tell us the contacts they make at conferences help them become more knowledgeable and more effective in their jobs."

The 2010 event, to be held May 2-5 in Atlanta, will focus on the talent, technology, and transformation needed to ensure long-term competitiveness. The meeting begins with keynote speakers from Starbucks and the Magazine Publishers Association, offering unique insights into the future of the industry. PaperCon will also feature a program of peer-selected and peer-reviewed presentations organized by TAPPI and PIMA. Delegates can choose from tracks that reflect their interest whether they are industry executives or production and technical.

For paper industry management professionals, PaperCon offers sessions on industry performance, innovation, and carbon management, as well as executive panel discussions. For production and technical experts, sessions will include paper, board, and tissue making innovations, wet-end chemistry and microbiology, headbox, forming, and process control innovations, and coating and digital printing, inkjet papers, nanotechnology, ink/paper interaction, and multi-layer structures.

New in 2010, PaperCon features a Sustainability Forum and Showcase exploring "The Science Behind Sustainability." This one-day forum on Tuesday, May 4, addresses the needs of paper and board product managers, technical marketers, merchants and others interested in learning the basics of sustainability.

Information and forms for registering and viewing the latest program for PaperCon and the Sustainability Forum are available online.

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The mid-year program meeting for the TAPPI 2010 PEERS (Pulping, Engineering, Environmental, Recycling and Sustainability) Conference (formerly the Engineering, Pulping and Environmental Conference), was recently held at TAPPI's headquarters in Norcross, Ga., USA. This event will take place October 17–20 at the Marriott Norfolk Waterside in Norfolk, Va., USA.

Attending the mid-year program meeting (shown l-r in the photo below) were: Ed Robie (TAPPI), Craig McKinney (TAPPI), Garnett Bremmer (Nalco), Chris Jackson (Power Specialists Associates), Dan Curry (RMT), Paul Glogowski (Metso Paper), Dan Connell (EKA Chemicals), Doug Singbeil (FPInnovations), Brian Brogden (International Paper), Chris Verrill (International Paper), Dave White (Herty Advanced Materials Center), Andy Jones (International Paper), Danny Haynes (EKA Chemicals), and Scott Springmeir (TAPPI).

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Market Roundup

Uncoated groundwood N.A. list prices in April rose for both offset and supercalendered (SC) grades, reports Marke Wilde, senior analyst with Deutsche Bank. Wilde notes that 35-lb MF offset rose $5/ton to $580-$600/ton and SC-A rose ˜$10/ton to $750/ton. Producers had announced a $30/ton price increase on SC grades for April.

Since most of the SC-A shipments are on contract basis with customers having price protection, the full impact of the price increase will show only in July, Wilde explains, adding that SC-B, however, is mostly non-contract in the first half and prices were +$25/ton to $670-$700/ton in April. SC-B also benefited from substantially improved demand, capacity rationalization, and higher spot prices. "With the SC-B market tight, reports suggest that producers are considering another hike in July," Wilde says.

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Coated groundwood April list prices in N.A., also were reportedly up around $5/ton. "The market direction appears to be turning, aided by better volume comparisons and supply cuts," Wilde says. Domtar's plans to shutter its Columbus, Miss., mill and sell the inventory and brands to NewPage will trim N.A. LWC supply by 4.5%, he points out, adding that major N.A. LWC producers are integrated, so rising prices are a relatively modest issue for them.

"The N.A. industry is apt to see further restructuring in 2010 as European players have been re-assessing their N.A. operations. There are also a number of 'orphan' LWC mills that could change hands," Wilde says.

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Continuing in the mechanical papers realm, April newsprint list price for 30-lb U.S. East rose $10/metric ton to $575/metric ton, while prices in the West remained flat at $535/metric ton, Wilde reports. As in previous months, the increase varied by region and size of the customer. Producers implemented the full price increase ($25/metric ton) for some small buyers in the East. However, for medium sized customers, price is up approximately $10-$12/metric ton in the East and for large customers the price increase is only about $5-$7/metric ton (East).

Major N.A. producers have also announced a $50/metric ton price increase, to be implemented in two installments of $25/metric ton each on May 1 and June 1, Wilde notes. "With April price hikes not yet fully implemented, the Canadian dollar strengthening against the U.S. dollar, demand levels still weak (newsprint consumption by U.S. daily newspapers -13.1% y/y in March) and far below existing supply levels, and a widening gap between West Coast ($535/metric ton) and East coast ($575/metric ton) prices, producers and customers will remain at battle," he says.

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The 2009 international financial crisis had a major negative impact on worldwide demand for pulp and paper products. As a result, the consumption of wood chips and pulpwood for pulp production was lower and global trade of wood chips fell 14%, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. China bucked this trend, almost tripling its imports to become the world's second largest importer of wood chips last year.

As WRQ explains, wood chip trade had increased on average 5% per year between 2002 and 2008, reaching an all-time high of 31 million o.d. metric tons in 2008. This upward trend was broken last year when trade fell 14% from the previous year, WRQ reports. International trade of wood chips has historically been driven by pulp manufacturers' need for either unique wood fiber properties not available locally, for fiber competitively priced, or for strategic reasons. Despite the recent decline, global trade of wood chips has more than doubled in 20 years.

The trade reduction in 2009 was equal for both softwood and hardwood chips, and most countries cut back fiber imports. The only major exceptions were Turkey, which increased its imports by 50% last year, and China, which almost tripled its imports. China has evolved from having been a net exporter of chips five years ago, to being a major chip consumer. The country now imports almost 20% of all chips traded in the Pacific Rim and is now the world's second largest importer of woodchips after Japan, according to WRQ. Trade of wood chips is still the highest in the Pacific Rim, accounting for about 55% of the total global trade and more than 95% of water-born trade.

The major exporting countries in 2009 were Australia, Chile, the U.S., Vietnam, and South Africa, which together exported just over 16 million o.d. metric tons. A majority of the shipments were eucalyptus wood chips destined for pulp mills in Japan and China. The most dramatic reductions in export volumes last year occurred in Australia (-22%), the U.S. (-25%, a majority bound for Canada), and South Africa (-45%), according to WRQ. In contrast, Vietnam and Russia both increased their shipments last year. Outside of the top five, it is worth noting that shipments from Uruguay declined by almost 50% last year, WRQ said..

Trade of wood raw-material, including logs and wood chips, is likely to increase in 2010 as the global economy slowly recovers and as a consequence, the demand for most forest products will improve. In addition, many energy companies in Europe are searching for new sources of biomass, which will further expand the overseas trade of wood chips. More information is available online.

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Naylor, LLC
Pulp & Paper

Catalyst Paper, Richmond, B.C., Canada, says it will appeal to the Supreme Court of Canada following dismissal of its appeal concerning the North Cowichan 2009 tax bylaw by the Court of Appeal for British Columbia. In its April 22 decision, the Appeal Court declined to strike down the tax bylaw while calling the "extreme imbalance" perpetuated by the District of North Cowichan a political problem requiring a policy decision by elected officials. While keeping its legal avenues open, Catalyst notes that it also has been working with others to demonstrate broad-based support for interim relief and a long-term, made-in-B.C. solution outside of the courts.

In the February 2010 Throne Speech, Premier Campbell announced a joint committee on municipal property tax reform, and the committee is expected to table its recommendations this fall. "We were encouraged by the premier's leadership on this matter," said Richard Garneau, Catalyst president and CEO, "and the Appeal Court decision now makes it even more critical that the joint committee does its work, does it well, and does it quickly." In the meantime, the City of Powell River and Catalyst have signed an agreement in principle that would reduce the Class 4 property taxes paid by the mill while assisting the City in reducing significantly its capital expenditures for future municipal service infrastructure.

"The competition for business and markets is fierce and other jurisdictions are actively encouraging businesses here to abandon their existing B.C. communities and set up shop outside of this province, even outside of Canada," said Garneau. "Powell River city council clearly understands that survival is about everyone working together to reduce taxes and costs in order to keep existing jobs and create new ones in this post-recession global economy. The days are gone when municipalities could set tax rates that ignored competitive reality and not pay a steep community price."

Catalyst Paper produces specialty mechanical printing papers, newsprint, and pulp. It has six facilities located in British Columbia and Arizona, USA, with a combined annual production capacity of 2.5 million metric tons.

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Grant Forest Products Earlton, Ont., Canada, received approval this week from the U.S. Bankruptcy Court in Delaware, facilitating the Georgia-Pacific (Atlanta, Ga., USA) acquisition of Grant's Allendale and Clarendon, S.C., USA, facilities. This approval was the last in a series of governmental requirements on both sides of the U.S. and Canadian borders that included approvals of the acquisition by the Canadian court overseeing the Grant Forest Products Companies' Creditors Arrangement Act filing, the Canadian Competition Bureau, the U.S. Federal Trade Commission (FTC), and Investment Canada.

With this latest approval, G-P expects to complete the purchase of Grant Forest Products' oriented strand board (OSB) and related facilities in Englehart and Earlton, Ont., and Allendale and Clarendon, S.C., in the near future.

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The Parkway School District of Chesterfield, Mo., USA, this past week received AF&PA's (Washington, D.C.) annual School Recycling Award. Parkway School District's recycling program serves more than 18,000 students in 29 school buildings.

The school district's program began in 1990 after several elementary students made a presentation to the board of education requesting that the district be a better steward of the environment. Since that time, expanded efforts have resulted in an Environmental Services Department that oversees all District sustainability efforts. Results include the recovery of more than 1,031 tons of newspaper, magazines, catalogs, direct mail, office paper, envelopes, and brochures, and more than 138 tons of paper-based packaging in 2009.

Sudents remain actively engaged, collecting paper in each classroom in deskside totes. Parkway Materials Recovery Specialists then make their rounds through their school collecting the full totes and taking them to green and yellow Paper Retriever bins, a centralized recycling location. The paper is then recycled through AbitibiBowater's Paper Retriever program, which pays the Parkway School District for each ton of paper recycled through the bin. Parkway uses these earnings to pay for school supplies, technology, or other worthy projects. The bins are also easily accessible to so that families and the surrounding community can participate in the paper recycling program.

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NewPage Corp., Miamisburg, Ohio, USA, this past week agreed to supply Spicers Paper, Santa Fe Springs, Calif., with a private label brand of coated papers known as Discovery, effective immediately. Discovery is a long-standing Spicers Paper brand that is the foundation of the company's Advantage Grade family of coated paper products. Discovery, supplied by NewPage, provides customers a domestically-produced product that is widely available and manufactured across an efficient and flexible papermaking infrastructure.

Spicers is a diversified, full-service distribution company with operations extending from the west coast to the upper midwestern regions of the U.S. It is the only distribution company in the U.S. with an extensive investment in custom sheeting Centers of Excellence that now total 12 sheeters across seven U.S. locations. The company is part of PaperlinX, Australia, its PaperlinX North America operations, which is made up of Spicers Paper and Kelly Paper in the U.S. and Spicers Canada and Coast Paper in Canada.

In the U.S., NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin, and also operates a mill in Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.4 million tons of paper, including 3.2 million tons of coated paper, 1.0 million tons of uncoated paper, and 200,000 tons of specialty paper.

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Stora Enso, Helsinki, Finland, will sell its integrated mills at Kotka in Finland and its laminating paper operations in Malaysia to private equity firm OpenGate Capital, Los Angeles, Calif., USA. Stora Enso says that selling these operations is in line with its Aug. 19, 2009, announcement to re-focus the company's business portfolio. Total consideration of the sale, including earn-out, is up to EUR 24 million. The divestment is expected to be finalized during the second quarter.

As part of the transaction, Stora Enso will divest its laminating paper, special coated magazine paper, and sawmill businesses at Kotka, also including the fully-owned laminating paper subsidiary in Malaysia, and the business operations of the Tainionkoski paper machine No. 7, which will remain in Stora Enso's ownership, but will be leased to the new owner. The Kotka mill site and its buildings are included in the divestment.

Based on 2009 annual figures, the divestment is estimated to reduce Stora Enso's annual sales by EUR 203 million, improve its annual operating profit by EUR 11 million, and reduce its working capital by EUR 24 million. The divestment will reduce Stora Enso's annual production capacity by 180,000 metric tons of machine-finished coated paper (MFC), 200,000 metric tons of laminating paper, 40,000 metric tons of Imprex products, and 230,000 cubic meters of sawn wood. The 570 employees affected, including 480 working at Kotka, 50 at Tainionkoski, and 40 in Malaysia, will transfer to the service of the new owner. Stora Enso and OpenGate Capital will make an agreement about wood supply as part of the divestment.

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A new labor agreement this week between the Swedish Forest Industries Federation and the Swedish Paper Workers Union ended a 10-day strike that impacted six mills in Sweden that began April 16. The strike began over a wage dispute and affected the SCA Munksund, Iggesund, Korsnäs Gävle, Stora Enso Skoghall, Billerud Skärblacka, and Södra Cell Värö. More than 3,000 union members took part in the strike.The new agreement reportedly is for 22 months, giving workers a 3.3% pay increase.

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Stora Enso, Helsinki, Finland, had announced last August that it planned to permanently close down its Varkaus mill in Finland by the end of 2010 unless there were a robust recovery in the supply and demand balance for office paper that would allow clearly profitable operation. Since then, the company says that supply and demand balance and pricing of office paper have improved, and that it therefore is able to keep the pulp mill and fine paper mill in production as long as financially viable and there is competitive fiber available for the Group in the long term. Operations of the sawmill and, as announced earlier, the biofuel joint venture with Neste Oil, NSE Biofuels Oy, and its demonstration plant also will continue.

At the same time, the situation in newsprint has dramatically deteriorated. Because of the overcapacity in newsprint and directory paper, and resulting weak earnings, Stora Enso plans to permanently close down newsprint production at Varkaus, with combined annual capacity of 290,000 metric tons, by the end of the third quarter of 2010. The proposed closure would affect about 200 people out of 512 people employed at the Varkaus mill. The plan will not substantially affect the amount of renewable energy production at Varkaus, the company adds. Stora Enso notes that the European newsprint market is structurally oversupplied, with 18% excess capacity expected this year. Consequently, newsprint sales prices have fallen significantly. In the longer term, newsprint demand in Europe is expected to continue to decline, as has already been happening in North America for some time. In addition, newsprint production at Varkaus relies on less-competitive fresh fiber, and Varkaus is far away from most of its customers. Weak market conditions have already caused the temporary shutdown of Varkaus newsprint machine PM 2. As a result of the co-determination negotiations that were announced this February, PM 2 production is temporarily curtailed until further notice, Stora Enso announced.

The restructuring actions in Wood Products, including the recent closure of Tolkkinen sawmill and the divestment of Kotka sawmill, are improving the customer and business portfolio for the remaining Wood Products units, including Varkaus sawmill, which will continue to operate, Stora Enso says.

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Suzano Papel e Celulose Ltda, Brazil, has awarded Pöyry, Finland, a contract for pre-engineering and preparatory work for mill infrastructure for a 1.3 million metric tpy bleached eucalyptus market pulp mill to be built in the state of Maranhao, Brazil. The value of Pöyry's assignment is about EUR 7.3 million. The client is expected to make the final investment decision in spring next year.

According to Pöyry, the concept of the mill is based on the use of best available technologies and the best environmental practices, which constitute a state-of-the-art level pulp mill. Using existing eucalyptus plantations as raw material, the mill is to produce more with less use of natural resources, at low production costs, progressive environmental impact reduction, and minimum risk of accidents at work.

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Containerboard/Packaging

Green Production Technologies is the title of a new compendium of German innovators and market leaders in the area of efficient technology. The 600-page publication was initiated by the German Federal Ministry of Education and Research (BMBF) and edited by the German Engineering Association (VDMA). The European-based STI Group was commissioned with designing and producing a limited edition slipcase that "turns the book into something extra special." The highlight is a solar cell-powered OLED that illuminates a portion of the slipcase and represent the world's first integration of this futuristic technology into the packaging of today.

OLEDs stand out for their extraordinary energy efficiency, STI notes. They also produce their light without any backlighting, with light distributed along the entire surface of the OLED. With normal LEDs the light is created from one single point. The light source is powered by a single solar cell integrated into the spine of the book. The system was developed at the Fraunhofer Institute for Photonic Microsystems in Dresden, Germany.

The book is packaged using environmentally friendly corrugated paper made of FSC-certified material and enhanced with various varnish effects, including an open-face corrugated inlay to offer an interesting contrast. The slipcase houses the entire OLED technology, including solar cell and cabling.

The STI Group also handled the assembly work for the complex units. "For our company, taking part in this future-oriented project is part of our philosophy of innovation. Cooperation with leading technology partners makes it possible for us to deliver future-looking packaging that adds value for our customers," reports Dr. Frank Ohle, Chairman of the Board at the STI Group. "At the same time we are glad to help support a commitment to sustainability, since we in our corporate group are also striving for a harmony between ecology and economy."

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I.M.A., Kibbutz Ein Hamifratz, Israel, a corrugated manufacturer producing in excess of 80,000 metric tpy, and Kiwiplan, Cincinnati, Ohio, USA, report the successful completion of an upgrade to I.M.A.'s manufacturing and QMS applications. The latest installation involved Kiwiplan's Quality Management System (QMS). QMS is an application for defining quality tests in the lab, at the corrugator, and at the conversion machines, and for entering and displaying results of the tests. "Improving the quality of the board at the source allows for improved conversion machinery throughput and less waste," I.M.A. notes.

I.M.A was established in 1963, developing since then from a small workshop into a leading corrugated producer. Holding approximately 25% of the Israeli corrugated cardboard market, I.M.A. is listed among the 150 largest industries in Israel, employing more than 270 workers from the kibbutz and surrounding towns. Kiwiplan installed I.M.A's corrugator scheduling module and direct link to the corrugator in July 1991, followed by additional modules, including the introduction of Kiwiplan's full plant scheduling in November 1992.

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MeadWestvaco Corp., Richmond, Va., USA, this week is showcasing its newest line of moisture-resistant paperboard packaging for frozen seafood at the European Seafood Exposition in Brussels. The line includes:

  • Printkote HMR, a SBS paperboard designed for extremely wet conditions and multiple freeze-thaw cycles
  • Custom Kote Shrimp Base, a high-performing, single sheet paperboard that provides strength and durability for seafood products such as shrimp that are packaged, stacked, and frozen at sea
  • Printkote Ovenable, designed to be heat resistant, with the ability to take seafood from the freezer case right to the oven (conventional or microwave)
  • MWare molded tray, for chilled seafood and ready-to-eat meals (heat-resistant tray can be put in the oven directly, and stays cool to the touch).

"The needs of the frozen seafood industry are evolving, and we're developing packaging solutions to meet these needs," said Chris Moser, global marketing manager, MWV Food Packaging. "Over the past few years, there has been an emphasis on sustainability in the harvesting of seafood, but little thought has been given to its packaging. Our paperboard solutions offer more sustainable options that are made from renewable and certified sustainably harvested resources. We are also on the cutting edge working with new biopolymer-based coatings to offer high performing, more environmentally conscious packaging alternatives for the seafood industry."

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SCA, Stockholm, Sweden, this week reported that it has signed an agreement to sell its Asian packaging operations to International Paper Co., Memphis, Tenn., USA, and will focus on hygiene growth in Asia. The reported purchase price is $200 million in cash. In 2009, SCA's Asian operation reported sales of some $250 million and had approximately 4,500 employees at 13 corrugated box plants and two specialty packaging facilities, primarily in China, but also in Singapore, Malaysia, and Indonesia.

"We divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there," says Jan Johansson, president and CEO of SCA. The transaction is expected to be finalized during the second quarter, subject to approval from relevant authorities.

"We're buying good facilities at a good price as well as gaining an excellent team of 4,500 employees," said Paul Brown, president, IP Asia. "SCA's facilities complement our existing converting system of 12 corrugated box plants, which are principally in China. The combination strengthens our packaging business in Asia and will make it more competitive, more profitable, and better able to serve customers."

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New Products

Mohawk Fine Papers, Cohoes, N.Y., USA, has produced a new video featuring Thomas O'Connor, Jr., chairman and CEO, who discusses why he thinks the company's new Mohawk Loop and Mohawk Solutions additions to the paper marketplace to be a courageous business move in today's shrinking market.

O'Connor, head of the third generation, family owned business, believes these two new paper lines are a solid investment in the future of Mohawk Fine Papers and explains how they address pressing market demands to simplify the clutter and choices for merchants, printers, designers, and all customers, make every paper choice an environmental choice, and meet every premium printing and specialty print need. The video is available online.

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As part of an ongoing commitment to sustainability, Sappi Fine Paper North America, Boston, Mass., USA, has announced the launch of eQ Tool, an interactive web based tool that allows the exploration of a full range of factors behind choosing a sustainable paper. The eQ Tool illustrates Sappi's approach to carbon management, explores the best use of recycled fiber, and brings to life its progress in forest certification and waste reduction.

To develop the eQ Tool, Sappi worked with IDEO, a global design and innovative consultancy. eQ Tool users can explore:

  • Greenhouse Gas Emissions
  • Renewable Energy
  • Managing Process to Minimize Waste
  • Carbon Offsets
  • Sustainably-Harvested Wood
  • Initiatives for Sustainability
  • Recycled Fiber.

 The eQ Tool also provides users the ability to generate a customized product statement.

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Smart Papers, Hamilton, Ohio, USA, continuing its drive to produce coated printing and packaging papers with FSC-certified post-consumer waste fiber, this past week launched in a coated 1-side (C1S) and coated 2-side (C2S) offering. The premium matte coated board is manufactured with 50% total recycled content including 40% PCW, and features a 92-bright, cool white shade, in calipers ranging from 7- to 14-point. It offers manufacturers, packaging converters, packaging printers, and greeting card publishers environmental credentials and excellent print fidelity, as well as excellent stiffness and convertibility.

The company notes that the new product also can be used in pharmaceutical, perfume, and other non-food product packaging. Other applications include direct mail, brochures, announcements, book covers, folders, post cards, tags, pocket folders, and menus The board is specially engineered to handle foil stamping, folding, scoring, aqueous coating, varnish, embossing and die-cutting. The C1S product, primarily for greeting card applications, delivers a smooth inside surface for imprinting and personalization.

Mohawk Fine Papers is the exclusive dealer and marketer of Smart Papers products, including Kromekote, Knightkote Matte, and Smart Digital premium coated papers to North American paper distributors.

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This past week, The Netherlands-based paper producer Van Houtum introduced what it says is "the most environmentally friendly toilet paper in the world." The company notes that its new "Satino Black" is the "only truly CO2-neutral toilet paper made with 100% recycled paper and an environmentally friendly production process, and yet it is just as soft and white as normal toilet paper."

The new tissue paper is made with 100% recycled fiber, using a new production process developed during the past 2 1/2 years "to replace all of the harmful chemicals with biologically degradable raw materials and additives," says Henk van Houtum, director of Van Houtum. "Black is the new green," adds Nick op den Buijsch, concept manager of corporate social responsibility at Van Houtum. "Consumers, companies, and governments worldwide are demanding ever more stringent product requirements while at the same time they want to make a contribution to the improvement of the environment."

The company points out that water and energy consumption for the production of Satino Black are already the lowest in the world in the market segment. "Carbon dioxide neutrality is guaranteed as a result of the utilization of 100% green energy. Cradle to Cradle guarantees that chemicals for the production of Satino Black are converted to natural and biologically degradable auxiliary agents," Van Houtum says.

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Published Pricing

M-real, Finland, will increase the price of its Kemiart coated and uncoated white top kraftliner grades, effective June 15. The increase will be EUR 50 per metric ton in continental Europe and GBP 50 per metric ton in the U.K. The price increase is necessary due to continuously rising raw material costs and also reflects strong market demand, M-real says.

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RockTenn, Norcross, Ga., USA, announced this week that, effective with shipments on or after May 24, it will increase corrugated box prices by 10% and corrugated sheets by 12%. With some 10,000 employees, RockTenn has production facilities in the U.S., Canada, Mexico, Chile, and Argentina.

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TAPPI News

Social media is quickly becoming a great channel to exchange information and connect with others in the industry and TAPPI has already embraced the social media wave! With input from our member companies, like Kemira, we have begun to strategize on how to connect with our members in a real-time, live, information-sharing forum.

During a recent visit with Kemira, Hannu Melarti, President North America, and Susan Flesher, Communications Manager for Kemira shared ideas on social media with TAPPI, explaining how they think it can help make the Kemira culture even "funkier" and more creative.

We'd love to know how you use social media, so drop an email to Raine Hyde (rhyde@tappi.org) and fill us in! If you haven't tried it yet, we encourage you to follow us on Twitter at TAPPITWEETS. Also, find us on FaceBook to become a TAPPI "Fan", and network with us on LinkedIn.

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TAPPI, in partnership again with Pira International, is pleased to announce the second annual Specialty Papers Conference, scheduled for November 10-11, 2010, at the Hotel Allegro Chicago, in Chicago, Ill. This year's program will focus on the current state of the market and the latest technology and application developments in the specialty papers arena.

Specialty Papers 2010 will feature approximately 18 expert presentations assessing market trends, technical developments, and application-related advances through presentations, question-and-answer sessions, and panel discussions. Topics new to this year's agenda include an update on the Chinese specialty papers market; choosing specific market pulps for various grades; and in-depth looks at packaging paper markets and developments; life cycle assessment; and regulations and certifications. Learn more at www.specialtypaperconference.com.

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If there's a best time to implement lean manufacturing into your operations, this is it. TAPPI is offering – 2010 TAPPI Lean Manufacturing - Flexo & Die Cutters – May 25-27 at TAPPI headquarters near Atlanta – an intensive three-day course focused on running Die Cutters and Flexo Folder-Gluers at maximum efficiency. The course is led by Dick Target, one of the industry's most well-respected and knowledgeable experts in lean manufacturing.

Target will concentrate on proven methods, such as Centerlining, "Time and Register" calibration, vendor certification, and Ink management. Other topics include zeroing the gear train in the press, implementing a successful Five-S program, tools for effective Waste Reduction, tooling use and purchase, and anilox roll care and maintenance. Presented in a direct, easy-to-understand manner, this course is valuable for everyone from senior operators and maintenance technicians to plant management.

Early bird registration ends at the end of this month, April 30. And, with a $200 savings for early registration, this course is just too important to miss. CEUs are available.

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The corrugated industry's esteemed CorrPak® 2010 Competition is open to ALL corrugated manufacturers worldwide. Entries for corrugated package products manufactured between August 1, 2008 and August 1, 2010 are now being accepted. The competition identifies and recognizes the finest commercially produced corrugated package products in the industry. Sponsored by TAPPI's Corrugated Packaging Division, the CorrPak® 2010 Competition is held every other year. Don't miss this one: Deadline for entries is Friday, August 27, 2010.

View or print the rules and entry requirements.

Individuals or companies may submit more than one submission for consideration, even in the same category. The CorrPak Competition is an exceptional way to showcase outstanding creativity and ingenuity. The CorrPak Competition entries on display at the 2010 Corrugated Week conference will provide an enlightening glimpse of some of the industry's finest work. For previous examples, view photos from the 2008 CorrPak Competition.

Winning entries will be displayed during the TAPPI 2010 Corrugated Week conference held October 4-8 in Baltimore, Maryland, USA and the winner will be announced during the TAPPI conference. This event offers the most effective networking opportunity possible – where attendees can meet with all the sales and technical reps from their suppliers – in the convenience of one place, where, as one past attendee put it, "you get away from the shop for a couple of days and really focus on broadening your knowledge base."

Good luck to all 2010 entries!

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The Awards Committee of the TAPPI Pulp Manufacturing Division is requesting nominations for the Division Technical Award (and Johan Richter Prize), and the Division Leadership and Service Award (and Joseph Perkins Prize). Nominations are requested for both awards, but only one will be selected to be awarded at the Fall PEERS (formerly EPE) Conference to be held in Norfolk VA.

The Division Technical Award is intended to recognize outstanding accomplishments or contributions, which have advanced the pulp manufacturing processes and methods. It was last awarded to Dr. Richard Berry of FPInnovations at the 2009 EPE Conference in Memphis, Tenn., USA. The Division Leadership and Service Award is intended to recognize an individual for outstanding leadership and exceptional service to the Division. The Division Leadership award was last presented to Dr. Gopal Goyal of International Paper Company at the 2008 EPE Conference in Portland, Ore.

Completed nomination forms should be sent to Alan Rudie at arudie@fs.fed.us or by mail to Alan Rudie, Forest Products Laboratory, One Gifford Pinchot Dr., Madison, WI 53726. The form may also be downloaded here.

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Early discounted registration is now open for the 2010 BioPro Expo™ and Conference, slated for August 24-26 at the Cobb Galleria Centre in Atlanta. Providing program content and comprehensive exhibits created with multiple industries in mind, BioPro Expo™ explores practical methods for transitioning a variety of biomass feedstocks into energy and biofuel. This unique event will bring together diverse communities ranging from forest, agriculture, and biorefinery operations to power companies and technology suppliers – offering the Southeast's most powerful educational and professional networking experience in the bioenergy arena.

BioPro Expo will include in-depth case studies and technical sessions from experts in a variety of industries. In addition, there will be a comprehensive tradeshow and hands-on technology interaction. Additional input from governmental agencies will supplement this experience with perspective on the rapidly changing regulatory and funding environment impacting renewable energy efforts.

Registration fees are $485 for TAPPI members and $746 for non-members, if confirmed by July 2, 2010. Onsite registration is $735 for TAPPI members and $1,125 for non-members. Registration information is available at www.bioproexpo.org.

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A Call for Presentations/Posters has been issued for the 2010 TAPPI International Conference on Nanotechnology for the Forest Products Industry, 27-29 September, 2010, in Espoo, Finland. This annual, internationally recognized event brings together leading researchers, industry experts, government representatives, and other stakeholders to share  advances and perspectives on nanotechnology-based products for the forest products and related industries.

To leverage research advances and offer participants new opportunities for knowledge sharing, the 2010 Technical Program Committee invites contributions from participants working with nano-enabled bio-materials, products, and their processing. Analysis of challenges and trends in emerging markets for forest products that are based on nanotechnology are sought to provide a foundation for new research and industrial activities. The organizers also  encourage submissions on other aspects of nanotech products including law, policy, economics and environmental health and safety. View the Call for Papers.

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"The reasonable man adapts himself to the world. The unreasonable man persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man."
 
-- George Bernard Shaw (1856-1950),  Irish playwright
 
Share YOUR favorite advice or interesting ideas -- about life, business, the industry, work or leadership -- by sending in a quote to share with other Over the Wire readers. Email your quote suggestions, along with your name and company information, to mshaw@tappi.org. We value the input of our OTW readers.
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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  

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