Under the terms of the offer, Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the company into a 51% common equity ownership in a new specialty papers company. The Government of New Brunswick also agreed to convert its $35 million secured loan plus accrued interest into equity in the form of preferred shares of the new company. CIT Business Credit Canada Inc., the company's existing working capital lender, has agreed to provide a $50 million revolving credit facility from which its existing secured loans to the company will be repaid or otherwise satisfied on closing. The new company will also issue common shares, representing a 49% common equity interest and promissory notes to the unsecured creditors of Fraser Papers as further consideration for the assets purchased.

To ensure that the price under the proposed sale transaction maximizes value for the company's creditors, Fraser Papers will seek superior bids through a court-supervised process for a period of approximately 60 days. Potential bidders will be required to submit non-binding letters of intent on or before noon EST on January 22. PricewaterhouseCoopers, the court appointed monitor, will have the responsibility for managing this process, including identifying and contacting prospective purchasers, coordinating information requests, and receiving offers.

Proceeds from the sale of these assets will be used to partially settle the remaining claims against Fraser Papers. The company will accumulate the balance of proceeds from the initial sale, plus additional proceeds from the sale of the remaining assets in Fraser Papers, prior to distributing to its unsecured creditors. The other assets include a paper mill in Gorham, N.H., a hardwood kraft pulp mill in Thurso, Que., and, two lumber mills in Ashland and Masardis, Maine. The ultimate recovery for unsecured creditors will be dependent, in part, upon the long term success of the new company.

Fraser has filed similar materials with the U.S. Court in Delaware, which oversees the company's ancillary proceeding under Chapter 15 of the U.S. Bankruptcy Code.

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The exit will occur in two stages, with the first expected to be completed by the end of March 2010, and the second expected to be completed by the end of June 2010. In the event that both sites are ultimately closed in full, the overall net cash cost is expected to be around $10 - 20 million. The total cash closure costs before recovery of working capital and the sale of assets would be around A$120 million, including redundancies and environmental remediation costs over the full course of the exit.

Stage 1 of the exit will involve the closure of the No. 4 paper machine at Burnie (B4) and the No.11 and No. 12 machines at Wesley Vale (WV11 and WV12) by the end of March 2010. The Conversion Department of the Wesley Vale Mill will remain operational until all work in progress is converted (expected to take 4 - 6 weeks post closure of WV12). Actual closure dates will be determined following discussions with relevant stakeholders including customers.

Stage 2 will involve either the sale of the balance of the Burnie Mill, including the No. 10 paper machine (B10) and converting operations, or closure, which is expected to complete by the end of June 2010. PaperlinX continues to explore the potential for a sale with discussions ongoing.

As a result of the closures, approximately 252 Tas Paper jobs will be lost at the Wesley Vale and Burnie mills over coming months; while approximately 170 Tas Paper jobs will be maintained at Burnie pending the outcome of the sale discussions.

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"The talent crisis is occurring at precisely the time when the industry needs leadership the most," says Jonathan Graham, leader of Heidrick & Struggles' Paper and Packaging Practice, which conducted the survey. The global paper and packaging industry is roughly $600 billion. "As we head into 2010, paper and packaging companies are facing severe challenges on all sides. On top of reduced demand and skyrocketing costs is a global movement to develop more sustainable materials, spurred by events such as the Copenhagen climate conference. And these pressures are compounded by a hypercompetitive global environment as supply chains further expand into Asia," Graham added.

Key survey findings include:

• Talent and costs share top spot as primary concerns among executives. While materials cost has been a widely known drag on industry profits, the survey found that executives shared as great a concern about talent - ranging from hiring and firing practices to succession planning.
  
• Enormous gap between the perceived importance of talent and the ability of companies to address it. "While 73% of executives strongly agree with the importance of better talent management, only 4% are confident that their company's talent can meet challenges sufficiently."
  
• Human resources seen as one of the weakest company functions. "This neglect in attracting talent will likely compromise the effectiveness of all corporate roles," says Graham, "further weakening competitiveness."
  
• Companies overlooking important talent sources. "The industry knows it can no longer afford to keep ignoring talent development, but it must be more creative about where to look for the next generation of leadership. Instead of trying to compete for talent with consumer products companies, for example, the sector should be looking to find up-and-comers from areas such as the specialty chemical and other business-to-business industries - places where innovation and technology are thriving."

 

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The wood pellet industry in North America has grown six-fold since 2004, according to the latest issue of North American Wood Fiber Review (WFR), Seattle, Wash., USA. The dramatic expansion has resulted in higher costs for sawdust and wood chips in the regions with the greatest growth, including the Western U.S. and Canada.

WFR notes that wood pellet capacity in North America has increased from just over one million metric tons in 2004 to more than six million metric tons in 2009, according to a recent report from the USDA Forest Service. British Columbia was the first region to take advantage of inexpensive sawmill residues and to produce wood pellets for the fast growing European market. Capacity in the western province of Canada has not grown much the past few years, so in 2009, it is likely that the U.S. South will take over as the leading pellet-producing region in North America, according to WFR. Much of the investment in pellet capacity in the U.S. South has been driven by the export market in Europe. On the other hand, the second largest producing region in North America, the Western U.S., has so far only sold pellets into the domestic market.

In 2004, the pellet industry was practically non-existent in the U.S. South, WFR continues, and this sector has now grown and will reach a capacity of almost two million tons in 2009. Although these capacity numbers may sound impressive, the actual pellet manufacturing operating rates have been surprisingly low in both the U.S. and Canada, WFR adds. In 2008, production was about 66% of capacity in the U.S. and 81% of capacity in Canada, estimates USDA-FS. Major reasons for the low rates include startup problems for newly built plants, financial difficulties for some companies, and a lack of affordable wood fiber supply.

With increased demand for wood fiber, pellet manufacturers have increasingly had to accept higher-cost wood fiber sources than the commonly used sawdust from local sawmills. More pellet companies are now using wood chips that traditionally have been used by the pulp industry. Partly as a result of the expansion of the biomass sector, wood chip prices, sawdust prices, and woody biomass prices have moved up in the U.S. this fall.

In the U.S. Northwest, sawdust prices have gone up substantially the past five years. In 2004, average sawdust prices were $28/odmt as reported by WFR. These prices reached a peak of $74/odmt in late 2008 and have since fallen, averaging $64/odmt in the 3Q/09. The price increases that have occurred in the Western U.S. are likely to be seen in other regions experiencing rapid expansion of their pellet industries. More information is available online.

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Shipments and earnings for the paper and forest industry are expected to show some recovery in 2010, contributing to a modestly improved credit profile for the sector, according to Fitch Ratings, Chicago, Ill., USA. Capacity rationalizations and cost deflation were the highlights of earnings releases in 2009, discounting the money that poured into the paper industry from U.S. alternative fuel tax credits. Sales volumes and prices both shrunk, causing top-line revenues to plummet. By historical standards demand will still be weak, Fitch notes.

"Paper producers should see better volumes in some grades next year but will have to raise prices to protect margins from cost inflation," said Dennis Ruggles, director at Fitch. "With no significant forces pushing revenues, there will only be modest improvements in leverage metrics."

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In the P&W Papers sector, uncoated freesheet and coated mechanical papers appear to be stabilizing, Fitch reports. Although y/y comparisons of monthly and YTD shipment data are still in negative territory, the pace of decline has reversed. More ambiguous are trends in coated freesheet and uncoated mechanical papers, the product of lower advertising budgets, choices where those dollars are being spent, and declining newspaper circulations, Fitch adds. Trends favor higher volumes in 2010 for uncoated freesheet and coated mechanical papers, whereas coated freesheet and uncoated mechanical papers could face another hardship year. Back To Top

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Pulp prices have increased six times in as many months and are now around $175/metric ton higher, up from $605/metric ton for southern bleached softwood kraft, according to Fitch. The demand pulling pulp prices is not North American but Chinese. North American pulp consumption, as well as European, is down around 14% YTD, but the demand from China is much higher and accounts for 22% of world pulp consumption, Fitch says. This cost factor is pushing paper prices higher, whereas other costs, i.e. caustic soda and energy, have probably seen their limits of deflation with the costs for calcium carbonate, kaolin, and titanium dioxide already rising. Back To Top

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In the containerboard and paperboard arena, U.S. corrugated box shipments, measured in rolling 12-month periods to smooth seasonality, have been declining since April 2007, Fitch points out. The pace of decline seemed to turn last August. Containerboard production is still soft, down 12% y/y through last September, with mills operating at 83% of capacity. Exports have been holding at just over 9% of production, courtesy of the weak U.S. dollar. Mirroring the rise in feedstock pulp prices, recycled paper prices (which feed 27% of U.S. containerboard capacity) have doubled since the first quarter of 2009, also due to Chinese demand. To preserve operating margins, the industry has announced a first-quarter price increase, which will likely set the pattern for 2010 as latex and energy join rising fiber costs, according to Fitch.

Fitch is not expecting a significant improvement in North American corrugated volumes, but overall operating profits should be flat to modestly higher. Paperboard by virtue of its linkage to disposable consumer products has been more resilient than corrugated boxes in this recession, Fitch explains. Growth in paperboard volumes will probably trail that of corrugated packaging in 2010.

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AbitibiBowater, Montreal, Que., Canada, this past week closed on a series of transactions related to the sale of its 60% indirect interest in the 335 MW hydroelectric facility currently owned and operated by Manicouagan Power Co. (MPCo), to Hydro-Quebec for gross proceeds of C$615 million. AbitibiBowater says it will use proceeds from the sale in a manner specified in the orders of the Superior Court of Quebec, including:

• Repayment of all amounts outstanding under the $100 million Super Priority Senior Secured Debtor-in-Possession (DIP) Credit Facility
• C$200 million partial repayment of amounts due under its senior secured notes
• C$282 million set aside temporarily with a wholly-owned, unlimited liability company subsidiary which may lend interest free, subject to certain approvals, up to C$230 million to the Abitibi-Consolidated subsidiary
• Repayment of certain transaction costs, indemnities, and holdbacks as specified by the orders.

The effect of these transactions will be to provide the Abitibi-Consolidated subsidiary with additional net liquidity of approximately C$168 million. The company has also signed a power supply agreement with Hydro-Quebec's distribution division for the supply of electricity to the company's Baie-Comeau, Que., paper mill.

"With the sale of MPCo, the company has completed a significant milestone in our overall plan to improve liquidity and financial flexibility. We are pleased to repay the US$100 million credit facility guaranteed by Investissement Quebec. Furthermore, AbitibiBowater and its employees appreciate the ongoing support and collaboration of the Quebec government," David Paterson, president and CEO, said. The additional DIP will support AbitibiBowater's business continuity while we continue to implement our restructuring program."

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Web Inspection Systems, used by the pulp and paper industry to inspect the surface of paper as it is being produced, can see and report many types of defects including holes, spots, and streaks. Using patented neural classifiers, ABB adds intelligence to the system by letting papermakers know exactly what type of defects are occurring, thus reducing rejects, saving fiber, and reducing energy consumption. ABB, through its ULMA business, has been an industry pioneer in Web Inspection Systems for 40 years.

According to Roger Bailey, global manager of ABB's Pulp and Paper business, the decision to merge the Web Inspection factory into the new Quality Control systems factory in Shanghai was based on ABB's continuing strategy to align its footprint with the market demand. "Given our significant investment in a new state of the art facility to manufacture Quality Control Systems, moving the Web Inspection business is a logical conclusion of that."

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Ahlstrom Corp., Helsinki, Finland, reports that it concluded personnel negotiations concerning all personnel (160 people) at its Altenkirchen mill in Germany, and has begun implementing personnel reductions in two phases. Beginning last week, and through the end of 2009, the number of personnel will be reduced by 34 positions, impacting both blue-collar and white-collar employees. The second phase will take place in 2010 and could result in a further reduction of up to 30 positions. During this period, the mill will also continue to adjust the production volumes to the demand through a temporary layoff system available in Germany. The company will offer an outplacement service to laid off personnel. The Altenkirchen mill employs some 117 blue-collar and 43 white-collar employees. It is part of Ahlstrom's Technical Papers business area. The main production at the mill is sealing and shielding materials as well as base paper for calender bowls. Those specialty materials are used for automotive, building, and industrial applications. Back To Top

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Production curtailments reduced the industry's operating rate in 2009 to 73.1%, the lowest level since 1975, but even that was not enough to offset this year's sharp drop in demand, the report said. According to Reuters, the board further said that the market has begun to improve, but that the industry may not benefit from economic recovery because the appreciation of the Canadian dollar and changes in the paper products that are in demand may reduce its ability to compete.

Canadian pulp producers have benefited from lower prices for wood chips, but the availability of lower-cost chips has been limited by shutdowns of lumber sawmills caused by the weak housing market, Reuters pointed out.

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The new power boiler will be part of CMPC's Santa Fe pulp mill's energy project for green energy generation. Rebuild of an existing recovery boiler into a biomass fueled power boiler as well as a digester rebuild and brown stock washing upgrade, including the installation of the press technology, are part of the Laja Mill modernization project. The commercial operation is scheduled to start in 2011 - 2012.

CMPC Celulosa is the Pulp Business Unit of Empresas CMPC S.A., established in 1920. It is the oldest paper producing company in Chile. The company has a diversified export sales network reaching more than 200 clients in 30 countries.

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Ecopaper Inc., Costa Rica, has recently doubled its production capabilities and sales of "Bagasse Sugar Cane Paper," according to its parent company, SGD Holdings, Ventura, Calif. The company also announced that this paper has received the international "Black Label Grading" for quality. Ecopaper makes its various products (bagasse paper, banana paper, coffee paper, etc.) from the 230,000 metric tons of agro-industrial waste that are dumped yearly in Costa Rica alone. The company makes a range of papers from exotic tropical fibers in this waste materials stream. CEO Harry Johansing noted that some of Ecopaper's products are being sold to companies including Starbucks, Dole, and Whole Foods. Back To Top

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In 2006, IP entered into a 90-year agreement in which Fibria agreed to furnish pulp and certain utilities to IP's co-located paper mill for the production of up to 250,000 tons of paper annually. The agreement also granted IP the option to build a second paper machine and to be provided with certain utilities and pulp to produce up to an incremental 250,000 tons of paper annually. The three-year extension is the only change to the original agreement. If IP were to exercise this option, the second paper machine would need to begin production between Jan. 31, 2014, and Jan. 31, 2015.

IP explains that this agreement to extend the option, which is aligned with the business strategies of both companies, will allow more time for the completion of all technical and commercial analyses, and will provide greater flexibility to startup the second machine in line with Latin American market demand growth.

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The four age-appropriate lesson plans Marcal has developed can be used for elementary, middle, and high school students. The curriculum includes:

• Hands-on environmental activities, projects, and games to educate and encourage recycling, reduction, and reuse of waste materials
• Background information highlighting facts about waste, deforestation, recycling, and climate change
• Interactive discussion guides with suggested environmental topics
• Recommended reading material and additional online resources.

"Teaching sustainability is an indispensable tool for ensuring that the future of our planet will be preserved," says Tim Spring, CEO of Marcal. "We have created lesson plans that teachers can easily integrate into their classrooms. We want to provide students with a fun and informative way to understand the importance of saving the environment."

 

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Metso, Finland, reported this past week that it has concluded employee negotiations regarding the Fiber business line's (FBL) units in Sundsvall, Karlstad, and Hagfors, Sweden. As a result of the negotiation process initiated this past September 30, the following reductions in personnel will be made: Sundsvall 150; Karlstad 64; and Hagfors/Solna 25. The reductions will commence immediately, according to legal terms of notice. Originally the reduction notice applied to 168 persons in Sundsvall, 94 in Karlstad, and 26 in Hagfors. The company explains that these reductions are part of a process to streamline FBL's operations and cost structure, to improve its competitiveness in a changing business environment. Metso's FBL units in Sundsvall, Karlstad, and Hagfors supply chemical and mechanical pulp industry customers with machinery and equipment as well as aftermarket and expert services. Currently, some 900 people are employed in FBL's operations in Sweden. Back To Top

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Paper machines 1 and 5 will be closed at the Reflex mill, accounting for 80,000 metric tpy of annual capacity. The production of carbonless papers will be transferred to Gohrsmühle mill but the converting is to remain at Reflex, which will continue the production of premium fine and digital imaging papers. Product offering and supply capability of M-real Zanders will remain unchanged.

"The production conversion at M-real Zanders has been implemented according to targets. Despite the unfavorable general market situation, the new uncoated fine papers were successfully launched in a short time and customer feedback has been very positive. Work to improve the profitability of M-real Zanders continues based on the measures announced today," says Mikko Helander, CEO of M-real.

Negotiations to implement the planned machine closures and organizational changes will start in January, and implementation of the planned measures is planned for the first half of 2010.

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Recovered paper is mixed in the TwinDrum with water at a stock consistency of 25%, which is gently pulped and then separated from the reject. The TwinDrum consists of a pulping drum and a sorting drum, which provide the ideal conditions for both processing steps. As a result, compared with conventional, single-section drum pulping systems, it is possible to reduce the use of chemicals by 20% - 40% in addition to reducing the energy used by about 20%.

The TwinDrum for King's Lynn is the largest drum pulping unit that Voith Paper has ever delivered. The second of these giants, Voith reports, is already in the construction phase.

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The plant has operated in Finland for 137 years. "We recognize this is a difficult decision affecting our employees, their families, and the communities surrounding the mill," said Berry Wiersum, CEO of Sappi Fine Paper Europe. "Unfortunately this action was necessary to address the impact of the global recession, which has caused a structural drop in demand for mechanical coated paper." Sappi, together with local municipalities, says it is investigating possible use of the site as an industrial area in the future.

The Kangas mill Galerie Silk range will be supplied to customers from the Sappi Lanaken mill in Belgium and a complementary grade, Galerie Fine Silk, will be introduced from the Sappi Kirkniemi mill, thereby widening Sappi's coated magazine paper range. There will be no supply interruption to customers during the mill closure and transfer of production, the company notes.

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SFK Pulp Fund, Longueuil, Que., Canada, has extended the annual maintenance shutdown of its Saint-Felicien Mill in Quebec, to perform additional repairs following a breakdown at the recovery boiler. The production of NBSK pulp is scheduled to resume by December 22. Meanwhile, the company says, it will continue to fulfill its customers' demands as scheduled. Management estimates that this extension should remove an additional 10,000 metric tons of NBSK pulp from production in the fourth quarter. The cost of these additional repairs will be covered, net of deductible, by the company's insurance. SFK Pulp operates three mills located in Saint-Felicien, Fairmont, W. Va., and in Menominee, Mich., USA The SFK Pulp workforce totals a little more than 500 employees. The company has a total production capacity of up to 745,000 metric tpy. Back To Top

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Marcy Thompson, division VP and GM, Sonoco Recycling, said the company is investing approximately $2.5 million to expand its facility by 14,700 ft2 to include new state-of-the-art sorting and conveyor equipment, as well as a new high-speed baler to increase single-stream waste volumes. Work on the expansion is underway with an anticipated completion date of late March or April 2010.

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The Chetwynd mill, which produces high yield pulp and has an annual capacity of 240,000 metric tons, has been shutdown since February of this year due to market conditions. It employs some 160 people, of whom 115 are covered by the new collective agreement. The mill also provides employment for 35 First Nation workers through their company, Three Nation Ventures.

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Dan Fulton, president and CEO, added that "our company will be enhanced by the REIT structure. This conversion will position us to be more competitive in our timberlands business. In addition, we are able to convert with our existing business mix of Timberlands, Wood Products, Cellulose Fibers, and Real Estate."

Factors the board will consider in determining the timing of converting to a REIT include the state of the economic recovery, changes in tax policy including shareholder tax rates, and the distribution of earnings and profits required under tax laws for REIT election. By the end of the year of conversion, Weyerhaeuser must issue a special, taxable dividend to stockholders of its undistributed earnings and profits. As of the beginning of 2010, Weyerhaeuser expects earnings and profits to total just under $6 billion. Weyerhaeuser said it intends to pay a significant portion of the dividend in stock. This will require shareholder approval to increase the authorized number of shares at the annual shareholder meeting in April. Shareholders will receive information on this proposal, and the proposed governance changes announced earlier (see next news item) in the 2010 proxy statement to be mailed in February.

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Weyerhaeuser, Federal Way, Wash., USA, this week announced that its board of directors has approved amendments to the company's articles of incorporation to eliminate its classified board structure and remove existing super majority voting provisions. "The board regularly reviews the company's corporate governance practices and has made a number of changes over the last few years as standards of corporate governance have evolved," said Chuck Williamson, chairman. "The board believes that these amendments are in the best interest of the company and its shareholders." The board will ask shareholders to approve these amendments at Weyerhaeuser's annual shareholder meeting in April 2010. It will take a 66 2/3% favorable vote of the outstanding shares to approve the amendments. Shareholders will receive information on these proposals in the 2010 proxy statement to be mailed in February. Back To Top

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"NV Publications and Brunton Business Publications have long provided cornerstone publications for our industry," Montague notes. "I am extremely excited about teaming up with this group of seasoned professionals as we enter 2010. We look forward to strengthening our Corrugated Packaging Division membership both in the U.S. and internationally. The end game of this agreement is that working together with NV and Brunton, we can provide more value to our members and our industry."

Vilardi adds that "we are honored to be credited with this appointment from TAPPI. In the short time that we have been publishing CORRUGATED Today with our partners, Brunton Business Publications from the U.K., we have clearly established this magazine as the best source of technical articles and in-plant stories for converters in the U.S. and Canada. We are very much looking forward to working closely with Larry and his team at TAPPI to further broaden the potential membership base for TAPPI."

Editor-In-Chief Jackie Schultz says that "I am delighted TAPPI chose CORRUGATED Today as its official publication. The Corrugated Packaging Division (CPD) has always been a valued technical resource. Adding a special TAPPI section to each issue is a win-win for both CORRUGATED Today subscribers and CPD members."

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The Ontonagon mill, which produces 280,000 tons of corrugating medium annually, and the Missoula mill, which produces 620,000 tons of linerboard annually, are high-cost facilities that do not provide adequate returns over the long term for the company, Smurfit-Stone said.

"These decisions were made to ensure the company's long-term growth and profitability and do not reflect on the hard work and commitment of employees at the Ontonagon and Missoula mills," said Steve Klinger, president and COO, adding that "we recognize that closing facilities is always difficult on our employees, their families, and the communities, and we will work with our employees, union representatives, and public officials during these transitions."

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Nestle Prepared Foods Co., Solon, Ohio, USA, announced this week that its Stouffer's brand will adopt new paperboard packaging in its Family and Large Family Size multi-serve products. President and CEO, Angelo Iantosca, explained that Nestle "is always searching for efficiencies and ways to reduce our impact on the environment. One area we've explored is converting CPET, or plastic, trays to paperboard. We tested paperboard packaging with the launch of our three Stouffer's Easy Express items earlier this year. Not only was the launch of the Easy Express line successful in delivering convenient, quality meals to moms in 20 min or less, but the tray material performed well, meeting our strict standards in the areas of product safety and quality. Based on that success, we've decided that we will use the paperboard tray across the Stouffer's Family Size business." Back To Top

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Amcor will be organized into seven business groups:

• Amcor Flexibles - Europe and Americas (Peter Brues)
• Amcor Rigid Plastics (Bill Long)
• Amcor Australasia (Nigel Garrard)
• Amcor Tobacco Packaging (Peter Konieczny)
• Amcor Flexibles-Asia Pacific (Ralf Wunderlich)
• Amcor Sunclipse (Eric Bloom)
• AMVIG (Billy Chan)

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Georgia-Pacific Packaging, Atlanta, Ga., USA, reports that its subsidiary, Georgia-Pacific RPC LLC, has acquired ORBIS Container Services, a reusable plastic container (RPC) business, from ORBIS Corp, a subsidiary of Menasha Corp. Terms of the deal were not disclosed. G-P notes that this strategic acquisition of the Fresno, Calif.-based business enhances its existing RPC business and the company's ability to provide a variety of packaging solutions to meet customer needs. Similar to G-P's RPC business, ORBIS Container Services provides and manages pools of RPCs that move fruits and vegetables throughout the produce supply chain. The purchase includes service facilities in King City and Holtville, Calif., and Garland, Texas. G-P has a wash facility in Memphis, Tenn. Georgia-Pacific Packaging manufactures paper for a variety of end-uses, including multi-wall bags, folding cartons, cups, plates, and high graphic and traditional corrugated packaging. Back To Top

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KapStone Paper and Packaging Corp., Northbrook, Ill., USA, has filed an application to list its common stock on the New York Stock Exchange (NYSE). Subject to the approval, KapStone expects its common stock to begin trading on the NYSE on or about January 4. The company will change its common stock ticker from NASDAQ:KPPC to NYSE:KS. The company's common stock will continue to trade on the NASDAQ until the transfer is completed. KapStone operates unbleached kraft paper and linerboard mills in Roanoke Rapids, N.C. and North Charleston, S.C., as well as a lumber mill in Summerville, S.C., and five chipping mills in South Carolina. Back To Top

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To support continued growth in high end flexible packaging and narrow web markets, Pamarco Global Graphics, Atlanta, GA., USA, announced this week that it will be installing a new ALE multi-beam 500 W solid state laser at its Warrington, U.K., anilox manufacturing plant during the first quarter of 2010. The company will also be adding a complete clean room facility for the new and existing lasers. This is part of a five-year plan to add and upgrade all lasers to solid state technology. In addition to new laser technology, the company has also introduced new engraving technology, E-Flo, which is a unique cell structure combined with an improved cell angle profile that will provide a more consistent and increased ink lay-down. This unique cell angle profile now allows printers to work with the expanded color gametes, in particular high definition or Opaltone technology, without concern of the angles clashing with the printing plate. Back To Top

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San Miguel Corp. (SMC), the Philippines, announced this week that through its subsidiary, San Miguel Yamamura Packaging International Ltd (SMYPIL), the company has entered into a sale share and subscription agreement for the acquisition by SMYPIL of a majority stake in the Cospak Group. Based in Sydney, Australia, the Cospak Group is the largest packaging trading firm in Australasia. Although the Group operates largely in Australia and New Zealand, the company has trading outposts in South Africa and Italy. SMYPIL hopes to make the Cospak Group the vehicle for its Australasian and rapidly growing exports business. With packaging businesses in Malaysia, China, Vietnam, and Indonesia, SMYPIL is a joint venture of SMC and Nihon Yamamura Glass Co. of Japan. Back To Top

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Invensys Operations Management, Plano, Texas, USA, this week unveiled version 3.5 of its Wonderware Enterprise Integrator software solution, enabling secure integration of Wonderware manufacturing execution software (MES) applications, such as Operations, InBatch, Intelligence, and other shop-floor applications, with enterprise resource planning, product lifecycle management, supply chain management, laboratory information management, and other enterprise systems. The Wonderware Enterprise Integrator 3.5 solution allows a consistent approach in operations-to-enterprise integration, eliminating high maintenance point-to-point integration scenarios. The newest version of the Wonderware Enterprise Integrator solution represents the latest evolution of Invensys Operations Management's enterprise integration capabilities. The software offers out-of-the-box, site-to-enterprise integration services for Wonderware MES, with complete message history, secured delivery and store forward. Technology support for industry standards such as S95 and B2MML, as well as for service-oriented architectures, helps further reduce the total cost of ownership of integration and IT landscapes. For more information about the Wonderware Enterprise Integrator solution, send e-mail to Invensys Operations Management at contact@invensys.com or call 1-888-869-0059. Back To Top

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A web monitoring system (WMS) contains a network of high-speed video cameras linked to a computer running specialized software that controls the acquisition, storage, and synchronization of video from each of the cameras. Papertech's WebVision Digital product, when combined with a web inspection (WIS) solution such as Papertech's WebInspector, provides a total machine vision integrated solution to resolving various paper break, defect, and other paper machine production and quality robbing issues. TotalVision WMS, with its WIS solution, now automatically identifies and classifies defects, and then rapidly allows the papermaker to identify the root cause of the defect all the way to the wet end of the paper machine.

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NewPage Corp., Miamisburg, Ohio, USA, announced this week that its No. 3 sheetfed coated paper product, Gusto, now offers cover weights that are 7 pt. and 9 pt. caliper guaranteed for direct mail and other printed materials that require a specific thickness to meet U.S. Postal Service mailing requirements. Gusto is also readily available in text and cover weights, in both gloss and satin finishes, and is manufactured, stocked and serviced in North America. Gusto caliper guaranteed cover weights are available for any orders placed on or after Monday of this week. For samples of the entire Gusto line, or any NewPage product, contact NewPage ExSamples at 800-638-3313. Back To Top

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Ahlstrom, Helsinki, Finland, has announced price increases on its nonwoven wiping fabrics, "as a consequence of the rise of raw material costs." The price increase will affect nonwoven grades sold globally for a wide range of consumer and industrial wipes applications. Specific details will be discussed with each customer individually by the appropriate business teams in the coming days, the company says. Back To Top

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Botnia, Finland, is increasing NBSK (Northern Bleached Softwood Kraft) pulp prices in Europe by $30 per metric ton, effective January 1. Botnia's price accordingly increases from $800 to $830 per metric ton. Back To Top

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Imerys Pigments for Paper North America, Atlanta, Ga., USA, has increased its prices for kaolin and calcium carbonate, subject to any provisions in individual customer contracts. Prices of kaolin manufactured in the U.S. and Brazil, including calcined kaolin products, will increase by 5% to 7%. Prices for ground calcium carbonate (GCC) will increase by 2% to 3%. In addition to this announced increase, the natural gas trigger price for the kaolin energy surcharge program will be standardized at $5.00 per MMBtu for all non-contract customers. The company says that cost increases in logistics, mining, chemicals, fuel, and power are key factors in this decision, adding that "despite Imerys' continual improvement programs and cost reductions to mitigate these effects, the price increases are necessary to achieve a sustainable pigment business." Back To Top

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Papierfabrik August Koehler AG, Germany, has announced a price increase for its Point-of-Sales thermal papers worldwide, as a result of rising raw material and other input costs. Prices will increase by 5% - 10% with shipments effective January 18, depending on region. Koehler manufacturers fine papers and special papers, colored papers and technical papers, thermal papers, carbonless papers, and décor papers. It is headquartered in Oberkirch, with mills in Kehl and Greiz. Back To Top

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Mitsubishi HiTec Paper, Flensburg, Germany, this past week announced a worldwide price increase for its Thermoscript Point-of-Sales thermal papers, effective February 1, varying according to currency area. The company notes that prices for raw materials have been increasing for some time, which it has been absorbing as long a possible. However, after cost increases of the past months, this is now no longer possible, it adds. Back To Top

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Södra Cell, Sweden, this week announced a $30 per metric ton price increase for its softwood pulps, effective January 1. The increase raises the company's pulp price to $830 per metric ton. "The pulp market is robust. The stocks remain on a historically low level and the demand keeps being strong," says Ulf Edman, president of Södra Cell International. Back To Top

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Walki Group, Finland, a producer of protective packaging materials and technical laminates, this week announced price increases on all of its Technical Products grades, due to the rise of raw material and energy costs. Simultaneously, the company notes, customers' payment terms will be harmonized to reflect standards set for each specific geographical market. These changes will affect the products in the company's Flexible Packaging, Heavy Duty, Insulation & Construction, and Technical Papers businesses. The price increase and the payment term harmonization will be effective as of February 1. The level of increase will depend on the markets, the constituents of the products, and the structure of the agreements in place. The increase range will vary up to 10%. Specific details will be discussed with each customer individually by the appropriate business teams in the coming days, the company notes. Back To Top

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Crown Holdings, Philadelphia, Pa., USA, has promoted Thomas Kelly to Senior VP - Finance, effective immediately. Kelly will be the company's primary investor relations contact in addition to his continuing responsibilities overseeing Crown's financial reporting, tax, and risk management functions. His previous position was senior VP and corporate controller and prior to that he served as assistant corporate controller. Kelly joined Crown in 1992 from PricewaterhouseCoopers. The company also announced that Kevin Clothier was promoted to succeed Kelly as VP and corporate controller. Clothier is responsible for the company's internal and external financial reporting, budgeting, and forecasting. He has been with the company since 1993 in a variety of financial capacities of increasing responsibility. He has been assistant corporate controller since 2000 and a VP since 2006. Crown Holdings is a leading supplier of packaging products to consumer marketing companies around the world. Back To Top

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Domtar Corp., Montreal, Que., Canada, has appointed Melissa Anderson as Senior VP of Human Resources, effective January 25. In this capacity, Anderson will be responsible for all human resources activities across the company, including labor relations and HR corporate functions. She will be based in Fort Mill, S.C., the company's operations center. Anderson was most recently senior VP, human resources and government relations, at The Pantry Inc., an independently operated convenience store chain in the southeastern U.S. Previously, she held increasingly senior management positions with IBM over the span of 17 years, including VP of human resources, global financing segment, from 2003 to 2006. Back To Top

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Mohawk Fine Papers, Cohoes, N.Y., USA, reports that Paul Stamas, VP of Information Technology, has been named a 2010 Premier 100 IT Leaders honoree by Computerworld magazine. This year's Computerworld Premier 100 spotlights 100 award leaders from both the technology and business sides of companies for their exceptional technology leadership, innovative ideas to business challenges, and effectively managed IT strategies. "The Premier 100 awards program shines a spotlight on the best of IT leadership and innovation," said Scot Finnie, editor in chief of Computerworld. "Despite a tough economy, these senior IT leaders are seizing this rare moment to steer measured growth, embark on innovative pilots, and build loyalty in their most valued workers. We're pleased to honor the achievements of these 100 men and women who epitomize calm and steady IT leadership." Back To Top

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Owens-Illinois Inc., Perrysburg, Ohio, USA, announced that Catherine Neel has been named VP and treasurer. Neel will be responsible for management of the company's worldwide financial assets and domestic and international financing. She also will lead the company's global treasury and risk management functions. She was formerly VP and corporate controller at NII Holdings, a multi-billion dollar telecommunications services company. In addition to her 10 years at NII Holdings, Neel worked for 10 years at Bellsouth Corp. in treasury, tax, and internal auditing roles. Back To Top

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The Nominating Committee has recommended a slate of three candidates. Members are encouraged to visit the TAPPI website to review members of the current Board and learn more about the slate of three nominees.

Online voting is fast and easy. Voting began December 1, 2009, and will end on January 15, 2010. Be sure to cast your ballot, which is available online for your convenience -- have your ballot number and TAPPI Member number ready.

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Nominations are now open for management level awards through PIMA's prestigious and well-established industry awards program. All the awards recognize accomplishment and expertise in the field of management. The first three highlight leaders who have made significant contributions to the paper industry over time. The deadline for submission is January 31, 2010.

Nominations are open for the following awards:

• PIMA'S Executive of the Year: PIMA's highest honor, traditionally presented to senior-level executives in the pulp, paper or converting industries for excellence in management and outstanding contributions to the industry as a whole.
• Mill Manager of the Year: Recognizes the mill manager who has best demonstrated outstanding leadership, management, and organizational skills leading to improved results at the facility for which he or she is responsible.
• The Brookshire Moore Superintendent of the Year: Recognizes the mill superintendent who has shown high personal standards and professional management qualities that contribute to the betterment of those under their management and in their company.
• Technologist of the Year
• Ray H. Cross Community Service Award
• Delano L. "Del" Boutin Local Section Service Award
• Thomas F. Sheerin, Sr. Service Award
• IT Service Award
• Kenneth H. Phillips Specialist Group Award
• Student of the Year Award

The one-page Nomination Forms are available online, in both a printable PDF format or as an interactive online form. Complete award descriptions are also available online. Honor your peers, coworkers, and managers, and help promote management excellence in our industry, by making your nominations for PIMA Awards.

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Attend the 2010 TAPPI/PIMA Student Summit and find out what's really happening in the pulp and paper and packaging industries directly from professionals challenged with the day-to-day operations. The Student Summit will give you direct interaction with industry leaders for valuable info on employment and career development within the industry.  Program highlights include:

• State-of-the-Industry Address on "Sustainability and Eco-Confusion"
• Effective networking
• The Annual Engineering Challenge
• Job recruitment interviews with hiring companies
• Sessions on job transition and getting the right job
• Area mill tour

Need travel money? TAPPI has two ways to help you cover up to US$500 in travel costs:

1) The Deborah Ann McNutt Memorial Student Summit Stipend: Thanks to the generosity of Hercules, there are four stipends available. Each one will fund up to US$ 500 in travel costs. Requirements and application details are available online. (Apply no later than December 18, 2009.)

2) TAPPI Travel Stipend Drawing: If you would like to enter your name, send your resume to dtrimmer@tappi.org by December 18, 2009 and agree to be interviewed at the Summit. A random drawing will determine the winner of the stipend, and the winner's resume will be reviewed by our participating companies.

Everyone who attends the Student Summit is a winner and here's your chance to be a special winner compliments of TAPPI & PIMA. So mark your calendar and act now while there's still time!

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Gulf Coast TAPPI will offer a two-part program sure to deliver great ideas to your mill. The meeting will also feature a mill tour of Abitibi-Bowater in Coosa Pines.

First, the Corrosion & Materials Engineering Committee will be conducting a free, one-day Corrosion & Materials Engineering Seminar seminar on TIPs and topics relating to the identification and control of corrosion within the pulp mill processes. The Friday Technical Session will focus on topics relating to the Recovery processes.

Call for Papers: Gulf Coast TAPPI is looking for presentations, preferably with direct mill experiences or applied research, relating to the following topics, or other current topics in the recovery area:

• Na/S; white/green liquor balance
• Sulfidity purge strategies
• Purge for chlorides
• Dissolving tank controls
• Black Liquor Evaporator operations
• Liquor cycle impact on digesters, lime kiln, caustic plant, recovery boiler

If you are interested in presenting information for the benefit of our industry, please contact Chris Dietel at dietelc@dteenergy.com.

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We want to have all 2010 Membership renewals completed on time so no member will miss a day of TAPPI benefits. Please note that membership payment is due December 31, 2009. Also, TAPPI's Code of Ethics has been updated and is now available online.

To renew online simply login to TAPPI's website (www.tappi.org) with your username and password and choose the Renew TAPPI Membership link in the Membership drop down listing on the home page.  For faster service you can renew by phone (with a credit card) by calling TAPPI's Member Connection Center at 1-800-332-8686(US), 1-800-446-9431 (Canada), or +1-770-446-1400.

New Multi-year Membership: Save time and money! Receive two full years of TAPPI membership for US $328, and save $20 off the list price; join for three years and save $42. Call Member Connection at the number above to take advantage of this offer.

If you're NOT already a TAPPI Member: Don't despair!  Just give us a call. Also, check out the Value Proposition on page two of our membership flyer; it will help you make a business case to management about the value of TAPPI Membership. Easy!  We can't wait to welcome you aboard.

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He was a chemical engineering graduate of the City University of New York (1947) and received an MS and Ph.D. in sanitation from Rutgers University in 1950 and 1951 respectively. As a member of TAPPI, in 1975 he was named a TAPPI Fellow, and received the Environmental Division Award. He was also a member of the American Institute of Chemical Engineers, Water Pollution Control Federation, American Society for Testing and Materials, Air Pollution Control Association and Sigma Xi.

 

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Share YOUR favorite advice -- about life, business, 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 jbottiglieri@tappi.org. We value the input of our OTW readers.

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