Georgia-Pacific, Atlanta, GA., USA, yesterday agreed to purchase the Alabama River and Alabama Pine pulp mills in Perdue Hill, Ala., from privately-held Parsons & Whittemore, Rye Brook, N.Y. The acquisition includes the assets of the pulp mills, Alabama River Woodlands, the tall oil plant, the biodiesel plant, the chip mills at Elba and Jacksons Gap, Ala., and a pulpwood yard at Demopolis, Ala. All employees of these operations will be offered employment with Georgia-Pacific. The sale is expected to close in the third quarter of this year.

"With the help of literally thousands of people over the past 35 years, we have built a world-class business, with pulp mills that rank among the highest in quality, productivity, safety, and environmental responsibility," said George Landegger, Parsons & Whittemore chairman and CEO. "Sincere thanks goes out to our employees for their diligent and dedicated efforts, and to all those in the local communities, such as landowners, wood suppliers, and public officials, who had faith in us and who have assisted us greatly.

Landegger added, "I am proud of the relationships that we have developed in the Monroe County area and will continue to be active in local economic and social development. The sale to Georgia-Pacific represents a very good fit within the industry, and the pulp mills can look forward with confidence to a secure and successful future."

Jim Hannan, Georgia-Pacific CEO and president, said that "Georgia-Pacific is committed to strategic growth of our businesses, both organically as well as through acquisition and innovation. The employees and assets of Alabama River and Alabama Pine will be fully integrated into our GP Cellulose business unit. We believe this investment will add long-term value to our company, our cellulose business, and the communities where we operate."

Pat Boushka, GP Cellulose president, added that "we are excited to integrate the talented employees and high quality assets of Alabama River and Alabama Pine into our GP Cellulose business. We look forward to serving the existing customers of these businesses and the completion next year of the current fluff conversion project so that we can continue to grow with our global fluff customers."

GP Cellulose is a non-integrated supplier of market and fluff pulp to global markets, with pulp mills in Brunswick, Ga., and New Augusta, Miss. GP Cellulose's Brunswick and Leaf River mills produce an array of pulp for a variety of markets.

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The world's first pilot plant making it possible to work with nanocellulose on a large scale basis is currently under construction in Stockholm, Sweden. Research company Innventia, based in Stockholm, reports to be using a highly energy efficient production process for the new super material.

Extracted from wood fibers, nanocellulose (photo on right) has very high strength properties, but unlike other light-weight, high strength materials based on fossil fuels, nanocellulose is completely renewable, Innventia points out. "For a long time, there's been a great deal of interest from industry in utilizing nanocellulose as a strengthening component in other materials, such as paper, composites, and plastics," says Mikael Ankerfors, a research manager at Innventia. "We can also create new, more effective, environmentally compatible and renewable barrier films for packages used for foodstuffs."

Nanocellulose will have many areas of use in the future, Innventia notes. For example, it can be used to make membranes and other reserve parts for the human body. It also can be used as a provider of viscosity in foodstuffs; i.e., to replace carbohydrates and other additives in low calorie food products. "Nanocellulose will be something revolutionary for the foodstuff industry," Ankersfors says.

With the new pilot plant, nanocellulose will be produced on a large scale for the first time, using an economically efficient process that reduces overall energy consumption by a total of 98%, Innventia explains, adding that the homogenizing stage in the process previously was much too demanding energy-wise. For comparison, Ankersfors emphasizes that the relative energy savings with its new process is equivalent to saving 29,000 KWH per metric ton. "Consider that the heating of a normal sized house takes approximately 18,000 KWH per year. For a full-sized mill that furnishes a paper machine with nanocellulose, this means a savings in energy that would be equivalent to 8,000 houses a year."

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Last week's Over the Wire included a news item about a book being authored by Bill Beck, titled "The Mill at the Falls–100 Years of Papermaking on the Border." A detailed history of Boise Inc's International Falls, Minn., USA, mill now celebrating its 100-year history, the 310-page book's final three chapters are being printed this week at the North Star Publishing Co. of International Falls. The printed pages will be at the bindery the first two weeks of this month and the books should be shipped to the mill by June 18. Employees, retirees, and customers will be given copies of the book, and remaining copies will be donated by Boise Inc. to the Koochiching County Historical Museum, 214 6th Ave., International Falls, MN 56649 for the museum to sell. The museum director is Ed Oerichbauer at (218) 283-4316. The book will be registered with the Library of Congress.

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Korsnäs, Sweden, reported this week that its Frövi paperboard mill in Sweden, and the regional energy company, Linde Energi, are taking further steps toward a long-term climate-smart solution for district heating, using surplus heat from the mill. To date, the collaboration between Linde Energi and the Frövi mill has significantly benefitted the environment. Now, the two parties are taking another step in that direction with a major joint investment.

A 46-meter-high accumulator tank with a diameter of 14 meters will be built in the town of Lindesberg, not far from the Frövi mill. Surplus heat from the mill will be stored in the accumulator tank, with the objective of cutting oil consumption in Linde Energi's district heating system to a minimum. The investment in the accumulator tank is estimated at around 20 million Kronor.

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Major pulp producers announced a $20-$30/metric ton June 1 price increase for NBSK and BEK., according to Mark Wilde, senior analyst at Deutsche Bank. If implemented, NBSK will rise to $1,020/metric ton in North America, $980/metric ton in Europe, and $890-$900/metric ton in China. The latest price hike is driven by a fall in pulp producer inventories by 1 day of supply to 25 days, Wilde explains, adding that in N.A., market conditions are still fairly tight, driven by strong demand, reduced supply from Chile, and spring maintenance downtime. U.S. NBSK spot prices rose to $900-$940/metric ton in the East and Midwest. However, falling Chinese resale prices, weakening of the Euro against the U.S. dollar (˜6% from April 1 levels), and pending restart of close to 2 million metric tpy of market pulp capacity in Canada and China from this month through August suggest that pulp prices are peaking, Wilde says.

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List prices for various uncoated free sheet grades in North America were up $30-$40/ton (announced = $60/ton) in May, Wilde says, adding that 50-lb offset rolls were up ˜$30/ton to $915-$935/ton and 20-lb repro bonds were up ˜$40/ton to $1,090-$1,135/ton. Producers expect to realize the balance increase in June and July as contract prices are revised and smaller suppliers implement the price increase. This is the second price increase of the year following the $40/ton price increase in both cut-size and roll grades in March. The recent price increase is driven by capacity cuts (Domtar, IP), low inventory levels (-17% y/y), and sharply higher pulp prices, Wilde explains. Most big UFS producers in N.A. are integrated, so rising pulp prices are of little concern.

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The tenor of the North American coated free sheet market is improving, according to Wilde. List prices in May were +$5/ton. Producers announced a $40/ton price increase, effective early May/June 1. Suzano recently announced a 6% price increase in LatAm markets effective June 1. Recent data suggest a pick-up in activity (preliminary April shipments +33.3% y/y, operating rate = 98%). Also, the coated sheet market will get a large boost as restrictions on Chinese and Indonesian imports take effect. Recently, the U.S. imposed anti-dumping duties on Chinese and Indonesian imports. For Chinese mills, this adds 31%-90% to the 4%-13% duties already in place, and Indonesian mills face an additional 11% on top of the previous 18%. With the market set to enter the seasonally strong period for commercial printers, the price hike has a lot going for it, Wilde points out.

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List prices for SC-A rose $10/ton to $740-780/ton and SC-B rose $15/ton to $690-$710/ton, while 35-lb offset and directory paper prices remained flat in May, Wilde reports. Producers announced a second price increase of $60/ton on SC grades, effective early May/June 1. The increase is driven by substantially improved demand (SC March shipments +69.3% y/y), capacity rationalization, and higher spot prices.

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In the meantime, North American coated groundwood market dynamics are improving, Wilde says. List prices on coated mechanical grades increased ˜$5/ton in May. Producers announced a $60/ton price increase effective early May/June 1. The price increase is driven by supply cuts (closure of Kruger's 170,000 metric tpy Trois-Rivieres mill in Canada and closure of Domtar's Columbus, Miss., mill in the U.S.) and significantly improved shipments (preliminary April shipments +22.2% y/y). "However, we caution that much of the gain in shipments owes to a 'lapping' of weak numbers from April 09 (-36.2% y/y), Wilde cautions.

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Cascades Inc., Kingsey Falls, Que., Canada, reports that its Specialty Products Group broke ground this week for a $10 million investment at the company's East Angus, Que., mill. The investment is for a new unit that will allow production of kraft recycled pulp at the mill.

A new building will be added to the premises to house a pulper, loading platforms, and a warehouse for waste paper. The unit will be able to convert more than 200 metric tpd of old corrugated containers (OCC) into recycled pulp. The integration will also enable Cascades to increase the recycled content of its kraft papers from 43% to 70%.

Despite a difficult market, Cascades notes that it continues to invest in the production of environmentally sound paper products. "The East Angus plant initiated a shift a few years ago towards products that were more respectful of the environment. The integration of recycled content and obtaining FSC certification were some of the actions that were implemented, but also the reduction of water and energy consumption," said Mario Plourde, president and COO of Cascades Specialty Products Group. "Whether it is for the production of envelopes, bags, packaging, or construction products, Cascades kraft papers will better serve its diversified customers by offering eco-friendly advantages."

OCC that will be converted will come from the company's sorting centers. "This investment integrates perfectly with our desire to include maximum recycled fiber content in our products," Alain Lemaire, president and CEO of Cascades, explained. "It is an effective way of reusing local materials that would have probably ended up in a landfill site, while ensuring the longevity of the plant."

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Holmen Paper, Stockholm, Sweden, reported this week that its mill in Madrid, Spain, has received an award from the Autonomous Community of Madrid for its extensive environmental work. Madrid's Environment Award for 2009 was based on the mill's management of water, recovered paper, waste products, and energy. The annual award is a joint initiative of the Community of Madrid, its chamber of commerce, and local business organizations

Freshwater is in short supply in Spain. Holmen Paper's development work in partnership with water supplier Canal de Isabel II and Complutense University of Madrid has led to a future where the paper mill will be able to use recycled water instead of purified drinking water in its manufacturing process. According to Holmen, this will make the mill the first in Europe to make paper based only on recycled water and recovered paper.

The mill's recovered paper operation deals with the majority of all recovered paper in the capital itself and outlying areas. As much as 93% of waste products from production are also recycled. For example, sludge from the recycling process is used in building material and in agricultural applications, with any metals arising from the process sent on to metal industries.

Two highly efficient steam turbines take care of energy production for the mill, producing steam and electricity totaling 77 MW. Holmen Paper Madrid recently became the first paper industry in Spain to receive UNE 216 301 energy certification.

Mill manager Mikael Wirén (on left in photo below) received the Madrid Environment Award from Esperanza Aguirre, president of Madrid. "We are naturally proud to receive this recognition of our comprehensive environmental work. We work efficiently with renewable and recyclable resources in our manufacturing process, while always maintaining respect for people and the future," Wirén noted.

  

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Iggesund Paperboard, Sweden, a subsidiary of Holmen AB, has ordered a 2,400 metric tpd High Energy Recovery Boiler (HERB) from Andritz, Graz Austria. As reported in last week's edition of Over the Wire, the EUR 238 million investment will provide the Iggesund mill greater energy efficiency, enabling it to be self-sufficient in electricity, and give it a production process that is completely free from any fossil fuel use.

In terms of its power-to-heat ratio, the new boiler will be the most efficient recovery boiler in the world. It will increase Iggesund's electricity production from 210 to 520 GWh/a. The Andritz delivery also includes process and building instrumentation and electrification for the boiler, process control systems for the boiler island, as well as process simulator and process control solutions. Startup is scheduled for the second quarter of 2012.

Holmen, Sweden, is a forest products group manufacturing and selling printing paper, paperboard, and sawn timber. The group also owns forest and power assets. Iggesund Paperboard is owner and manufacturer of Invercote and Incada paperboards.

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Ilim Group, St. Petersburg, Russia, a joint venture with International Paper, Memphis, Tenn., USA, has ordered the main technology for its new kraft pulp mill, to be built in Bratsk, Irkutsk Oblast, Russia, from Metso, Finland. The value of the order is approximately EUR 180 million.

Metso's scope of supply will cover a complete fiber line including a digester, a screen room, an oxygen delignification system, brown stock washing and bleaching plants with wash presses, and a drying line with a fourdrinier wet end and two baling lines. Integral to the Bratsk reconstruction program are a new Metso recovery boiler and an upgrade of the evaporation plant. Metso will also deliver an automation system for all process areas, and necessary analyzers and special equipment for quality and runnability management. The new pulp mill is scheduled to startup during 2012.

The new pulp mill will produce 720,000 metric tpy of bleached softwood market pulp, bringing the overall annual pulp production at Bratsk to more than 1 million metric tons. When in operation, the Bratsk mill will be one of the world's largest and most modern softwood pulp production facilities. Ilim Group's overall investments in the project are about EUR 570 million (nearly $700 million).

The total annual pulp and paper production volume of Ilim Group is more than 2.3 million metric tons. The company employs more than 20,000 people.

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Natural Resource Partners (NRP), Houston, Texas, USA, and International Paper (IP), Memphis, Tenn., this week agreed to form a joint venture to own and manage current leases as well as further development of more than 7 million mineral acres currently held by IP. NRP will be the managing and controlling partner with a 51% interest, including a cumulative preferred distribution from the joint venture before profit sharing commences. NRP will pay IP approximately $42.5 million at closing, which is anticipated to occur in mid-June.

The more than 7 million acres are located in 31 states and consist of reserves of oil and gas, coal and aggregates, as well as the rights to develop coal bed methane, geothermal, CO₂ sequestration, water rights, cell towers, other precious metals, industrial minerals, and base metals. Royalties are currently generated from active leases from oil and gas, coal, aggregates, and cell towers with upside potential from additional leasing and development. Approximately three-fourths of the acreage is located in the U.S. Gulf Coast Region, with the second largest area being the Pacific Northwest.

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Net Impact, San Francisco, Calif., USA, this week announced finalist universities for a case competition with International Paper, Memphis, Tenn., and Staples, Boston, Mass. The competition teams MBA students from the Net Impact network to identify recycling solutions to help improve each company's environmental performance and bottom line.

From a pool of 10 teams, the three finalist universities selected to participate in a semester-long process are:

• Blekinge Institute of Technology (Karlskrona, Sweden)
• Columbia University School of International and Public Affairs (New York, N.Y.)
• University of Michigan, Stephen M. Ross School of Business / School of Natural Resources & Environment (Ann Arbor, Mich.).

The three finalist teams have been working since February with key leaders at International Paper and Staples, discussing questions and reviewing the progress of their strategic plans. The teams are in the process of submitting their final plans, which will be evaluated by a panel of judges. The winning team will be announced in late June and will receive a $5,000 cash prize, one-year passes to the national parks, and free registration with a travel stipend for the Net Impact Conference at the University of Michigan in November—where the team will present its winning proposal. The other two finalist teams will receive $1,000 each.

"Our partnership with International Paper and Staples is a win-win," says Liz Maw, executive director, Net Impact. "While Net Impact student members are helping IP and Staples come together to uncover environmental opportunities, we are helping build environmentally responsible future business leaders."
Mark Buckley, VP, environmental affairs, Staples, adds that "working with Net Impact and IP on this case competition is a way for Staples to leverage some of the world's top students to apply their business and process expertise to address an issue with significant environmental implications."

David Kiser, IP's VP, environment, health, safety and sustainability, notes that "exploring creative business solutions will help recover more renewable paper products and put them back to use. It will also support improving environmental footprints, sustaining socially responsible business practices, and increasing economic returns."

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NewPage Corp., Miamisburg, Ohio, USA, and the World Resources Institute (WRI) today are conducting an "All About Sustainability" webinar that explores environmental, social, and economic impacts of palm oil plantation expansion in Southeast Asia and examined solutions that benefit the industry, the environment, local people, and buyers of forest products around the world.

In this webinar titled "The Link Between Palm Oil and Paper," guest speakers Craig Hanson, WRI director of the people and ecosystems program, and Amber Garwood, NewPage VP of communications and government affairs, explain how palm oil sourcing impacts the market for certified papers and share how conscientious supply chain choices in sourcing certified papers can make a difference to the global environment. As an ingredient used in consumer goods such as snack foods, soaps, and cosmetics, demand for palm oil is growing. To meet this growing demand, large tracts of forest land are being converted to oil palm plantations, endangering virgin forests in Indonesia, Malaysia, and Papua New Guinea, NewPage notes.

Additionally, webinar participants will receive an update on Project POTICO, a joint initiative of WRI and NewPage to help conserve rainforests in Indonesia by creating opportunities for ecologically and fiscally sustainable palm oil. The project is entering its second year.

Registration for this free webinar will be accepted until the 2:00 p.m. EDT start time today (June 3). Any business that sources paper and is concerned about their supply chain choices, in particular sourcing teams, brand managers and their distribution channel partners, are encouraged to attend. This webinar and previous seminars are archived for 90 days after the live event. To learn more about the series contact Gina Reid at rw32@newpagecorp.com.

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Rottneros Group, Stockholm, Sweden, will cease production at its Vallviks Bruk mill in Sweden for about 10 days for maintenance work on the evaporation plant. The company estimates the loss of production will amount to about 6,000 metric tons of NBSK (long-fiber chemical pulp), adding that costs in addition to the lost production will be limited. As part of a SEK 77 million investment program approved by the board last December, parts of the evaporation plant will be exchanged during the annual maintenance stop this autumn.

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SCA, Stockholm, Sweden, reports that several of its felling teams are now driving in accordance with a method called RECO (Rational Efficient Cost Optimization) to help increase productivity and reduce fuel consumption in forestry. Petter Karltun, project manager at SCA, explains that RECO is "not about driving faster, only about performing the work aspects that are essential to drive in the correct manner and thus be able to save fuel and time."

As an example of the RECO method, one way of saving energy is to reduce the RPM of machines being operated. For a driver of a harvester, it could also entail finding the shortest route to a tree or not idling. For scooter drivers, finding the right technique for loading and unloading timber could be of major significance. By the autumn, SCA says that the new driving method will be evaluated. If the results are favorable, the company plans to train more felling teams in smart driving

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Uni Core Holdings Corp., an "incubator" of mid- to large-size companies in China, this week closed its acquisition of APT Paper Group of China from five companies: FG Management Co., Global Golden Group Investments Co., Wise Link Management Ltd., Plan Star Development Limited, and Sure Strong Limited. The company name changes from APT Paper Group to Uni Core Holdings Corp.

Senior management of the acquisition will be Chia Hsun Wu, CEO, and Thomas Lee, CFO and COO. The company headquarters will remain at Wanchai, Hong Kong. APT's paper mill in Shenzhen, China, is the acquired company's key production site. The mill manufactures honeycomb packaging materials for LED and plasma products for several large companies, including Walmart, Costco, Sam's Club, Sony, Nokia, DHL, Haier, and Hisense.

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The Paperboard Packaging conference in Budapest, Hungary, begins later this month. This 1.5-day event, June 23 -25, features an unrivaled agenda as well as an excellent networking platform. More details  on presentations, who will be there, and regular event updates is available on the conference web site.

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Chesapeake, U.K., has established a trading alliance with Papcart, a French supplier of premium cartons. Papcart, which supplies cartons to customers in the Champagne, Cognac, and cosmetic sectors, will work in partnership with Chesapeake's Branded Packaging division to jointly develop new business in the French wine and spirit sectors.

Chesapeake already has four operations in France serving customers in the pharmaceutical and industrial chemical sectors. This alliance further extends Chesapeake's global supply network, offering local support to customers in a key market for premium packaging. It is expected that the alliance will facilitate cooperation with joint customers and support technical and marketing initiatives. The alliance will also allow each party to offer a greater range of products and to jointly develop new solutions.

Commenting on the alliance, Tim Whitfield, VP – Chesapeake Branded Packaging, said that "Papcart is an excellently equipped business with very impressive facilities. The markets it serves and the quality of its work ideally complements Chesapeake's existing facilities. We believe this alliance will enhance our service to customers while providing mutual opportunities."

Papcart's main production site is based in Getigne, Nr Nantes, France, and it also has a satellite operation in Jarnac, close to Cognac. The business has a turnover of EUR 25 million and employs around 175 people. Jean-Louis Moreau, Papcart's president, added that "there is a good fit between the companies, and I believe the new alliance will help us both to serve our customers even better."

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Another North American containerboard price increase is possible for this year, according to Mark Wilde, senior analyst at Deutsche Bank. "While there have been no formal announcements, we are increasingly convinced of the third price hike attempt in 2010," Wilde says, pointing out that hikes in January and April added $110/ton to domestic list prices.

Wilde notes that Industry fundamentals remain strong: box shipments +4.8% y/y in April, operating rate = 95%, domestic and offshore supplies are tight). The biggest question mark, he says, appears to be box pricing. Most European producers have announced a third price increase of EUR 50/metric ton on unbleached kraft linerboard, effective June 1. For U.S. exporters, strengthening of the dollar against the Euro will trim any benefit from the Euro price increase. OCC prices to China fell $10/ton this week and reports suggest that prices could fall another $30-$35/ton in coming weeks. Domestic OCC price fell $10/ton in May, according to Wilde.

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M-real Consumer Packaging, Finland, has carried out box compression tests that uniquely study the performance of cartonboard packaging in real life situations such as stacking and palletizing. According to M-real, the tests have confirmed that lighter weight boards can be used without compromising the quality or performance of finished cartons, resulting in both cost savings and sustainability benefits as less raw material is required in their manufacture.

The studies, undertaken by an external research institute, performed box compression tests on dummy cartons. Results showed that the bending stiffness of a board shows the best correlation with the box compression strength. Higher bending stiffness improves the board's resistance to bulging and cracking, creating cartons with higher rigidity.

Good rigidity and high stacking strength are particularly needed when cartons are loaded onto pallets on top of each other, and secondary packaging, such as a corrugated case, is not being used. In such end uses it is vital to choose the right raw material for cartons.

M-real notes that grades with high bulk and optimized layer structures demonstrate very good stiffness for a given grammage. In a market where substance equals weight, and heavier weight equals higher cost, it becomes apparent that desirable carton rigidity can be achieved in tandem with cost savings. A better quality carton can decrease the amount of wasted products and even eliminate the need for slip sheets during stacking, saving the additional cost of using these altogether, the company explains.

Further box compression tests evaluated how different design elements, specifically carton dimension or board fiber direction and surrounding climate conditions, can affect carton strength. The results found that changing carton size—height and width of the side panels—had no notable effect on the BCT value, as it is the corners that bear most of the load.

Rotating fiber direction can, however, make a dramatic difference. Most cartons use horizontal fiber direction to improve runnability on the packaging lines and give more rigid feel when handled. But when fiber direction was changed to run parallel to compression, stacking strength was increased as much as 20%. This benefit has, however, to be weighed against the more usually accepted advantages of horizontal fiber direction mentioned above.

Finally, tests found that increasing the relative humidity of air lowers the strength of a board because it is made from a natural raw material—wood fibers. Both board and carton strength decreased when relative humidity rose from 50% to 80%. Box compression strength decreased 15% to 25%, depending on board grade. This is important to consider when cartons are exposed to humid conditions during transport or storage, M-real points out.

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Fibertect Cotton-Soaking (CS), a three-layer flexible, inert, nonwoven, non-particulate decontamination system that has been proven to be successful in absorbing and adsorbing chemical warfare agents, may now prove useful in recovery efforts in the British Petroleum (BP) Deepwater Horizon disaster and other oil spills of similar size and severity. Fibertect CS was developed by Texas Tech University's (Lubbock, Texas, USA) The Institute of Environmental and Human Health (TIEHH) Associate Professor Seshadri Ramkumar and is manufactured by Hobbs Bonded Fibers for First Line Technology, Chantilly, Va.

As of May 29, Fibertect CS is officially approved by the U.S. Environmental Protection Agency. This past Tuesday (June 1) the Fibertect CS technology was featured on CNBC's Power Lunch as a plausible solution to the BP Oil Spill. The three layers of material consist of a top and bottom fabric with a center layer of fibrous activated carbon that is needle punched into a composite fabric. The top and bottom layers provide structural coherence, improving mechanical strength and abrasion resistance while the center layer holds volatile compounds, like oil.

Ramkumar said that documented research published by many scientists show that raw cotton can absorb up to 20 times its weight. But when chemically modified, the material can hold more than two to three times that amount. And unlike synthetic materials such as polypropylene that are currently used in many oil containment booms, Fibertect made from raw cotton and carbon is biodegradable.

Fibertect has already proved to be effective in the bulk decontamination of chemical warfare agents and toxic industrial chemicals, but our proposal here is to use it to aid in the clean-up efforts in the Gulf," said First Line Technology President Amit Kapoor. "Fibertect allows for a green, environmentally safe, biodegradable technology that is perfect for the expanding effort to protect and decontaminate coastal lands and wildlife. We welcome the opportunity to work with the government, BP, or other oil companies in a joint effort to defend and preserve our planet."

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Pregis Corp.'s Hexacomb business unit. Ermelo, The Netherlands, this week implemented a 6% price increase on all grades and sizes of its product line shipped to customers in the U.K., Germany, France, Belgium, and The Netherlands. Pregis notes that the latest price increase has become necessary due to additional upward pricing pressure from paper, fuel, and adhesives. Testliner prices rose approximately EUR 30 per metric ton during April, it adds, which puts the increase at more than 25% since October 2009.
"World demand for pulp, which is the primary component of our linerboard, is continuing its two year climb. This, coupled with the other escalating raw material prices, is forcing us to increase our prices so that we can maintain our quality supply. Superior raw material is a critical component in helping us deliver the high level of engineered performance required by our customers," said Jeff Kellar, president, Hexacomb.

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RockTenn, Norcross, Ga., USA, this past week announced a $50 per ton price increase on its CartonMate bleached paperboard products. The increases will become effective with shipments beginning June 28. RockTenn has operations in the U.S., Canada, Mexico, Chile, and Argentina.

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Biomass has now surpassed oil to become the number one source for energy generation in Sweden, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. The increased competition for logs and wood chips between the pulp industry and energy sector has pushed wood fiber prices to new highs.

Sweden has come the furthest on the road toward fossil fuel independence, WRQ notes. Last year, the Swedish government approved a plan to have renewable energy reach 50% of the total energy consumed in the country by the year 2020. In addition, the country aims to be totally independent of imported fossil fuels for the transportation sector by 2030. Although this might seem like an improbable ambition considering today's high dependency on gasoline and diesel, the government's push toward a society without fossil fuels has created much research and many investments in the renewable energy sector over the past few years, WRQ explains.

As an incentive to use more environmentally friendly vehicles in Sweden, there are currently no taxes on ethanol while there are high energy and carbon dioxide taxes (approximately $0.70/liter) on conventional gasoline and diesel. There have also been tax incentives for purchasing low-carbon dioxide emission vehicles since 2006.

Total energy consumption generated from biomass in Sweden grew from 88 terrawatt hours (TWh) to 115 TWh between 2000 and 2009, while the usage of oil-based products (all imported) declined from 142 TWh to 112 TWh during the same period, according to the Swedish bioenergy association, Svebio. Biomass surpassed oil to become the number one source for energy generation in 2009, accounting for 32% of the total energy consumption in the country. It is projected that biomass consumption will continue to increase by another 10% in 2011.

Energy companies in need of additional biomass are increasingly using roundwood that also could be used by pulp mills, WRQ continues. With the rapid expansion of energy capacity generated from biomass, it is clear that the wood fiber market in Sweden has forever been transformed to a more competitive market place with two fiber-consuming sectors having quite different expansion plans for the future. Sawmill residues and small-diameter logs can now be used either to manufacture pulp or to generate energy.

Historically, the pulp and paper market has been the major driver of wood fiber prices, but with the entry of the energy sector, there are now different market forces in place, according to WRQ. As a result, prices for smaller logs have been driven to new highs the past few years, and not likely to go back down to the levels seen during the period 1997-2006. In local currency (Swedish krona), pulplog prices in the 1Q/2010 were almost 20% higher than five years ago and 36% higher than 10 years ago, WRQ says. More information is available online.

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Florida, USA-Based Gainesville Regional Utilities (GRU) and American Renewables report they received approval for a 100-MW biomass power plant on May 27 from the Florida Public Service Commission. American Renewables plans to build, own, and operate the facility, which will be called the Gainesville Renewable Energy Center. Under a 30-year contract, GRU will purchase all of the power produced by the facility, which will generate power from urban wood waste, wood processing wastes, and logging residues. American Renewables plans to build the facility at GRU's Deerhaven Generating Station, which currently features an 80-MW unit that can run on natural gas or oil and a 235-megawatt coal-fired power plant. The company plans to begin construction in December and achieve commercial operation in late 2013

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Catalyst Paper, Richmond, B.C., Canada, has appointed Denis Jean, a current director of the board, as the company's interim president and CEO, effective immediately. A veteran of the industry, Jean was president and CEO of Cascades Fine Papers Group from 2002 to 2005. Prior to that, he held executive roles with Abitibi Consolidated and Donohue.

As interim president and CEO, Jean takes the reins from Richard Garneau who left the company May 28 for personal reasons to be closer to his family in eastern Canada. The company's board initiated an executive search for a new executive officer following Garneau's announcement in late January.

"We are fortunate to be able to draw on the industry expertise of a fellow director," said Catalyst board chairman Michel Desbiens. "Denis knows the industry well and he understands the company's challenge, having served as a director on the board since 2007. We appreciate his willingness to serve as the company's interim chief executive as the search for Garneau's successor is completed." Jean's appointment will enable the board to complete the executive search with assurance of a seamless transition to a new CEO in due course, the company notes.

Catalyst Paper produces diverse specialty printing papers, newsprint, and pulp. With six mills located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 2.5 million metric tpy.

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EcoSynthetix Inc., Lansing, Mich., USA, has appointed Philip Greenall sales director – Europe. Prior to joining EcoSynthetix, Greenall had been with BASF for 28 years in sales and service of paper coating latex. He is a member of TAPPI, and PITA, and has served as PITA deputy chairman. He will be based in Osthofen, Germany.

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Our 6th annual Runnability Run/Walk on May 5 raised more than $8400 for student scholarships!   These proceeds will be split evenly between the Paper & Board and Process Control Division scholarship funds.  This wouldn't be possible without your support.

We would like to thank all of our sponsors and give special recognition to our 6-year sponsors. Buckman, Kadant Johnson, Nalco, PaperTech, and Voith have been with us since the beginning!   We're also pleased to add Mallard Creek Polymers and Panther Systems to our sponsor family this year.  Other sponsors include ABB, Ashland Hercules Water Technologies, BASF, Event Capture Systems, Lorentzen & Wettre, Omya, OpTest, Paperchine, Papertech, Technidyine, Thiele Kaolin, TMI and Wells Enterprises.

Please check at www.tappi.org/funrun  for this year's results, photos, and results from previous years. Look for us to return at PaperCon '11 in Covington, KY next May 1 – 4.

Thanks for your support!

Sincerely,

The Runnability Planning Committee:
 
Lawrence Anker, Ashland Hercules Water Technologies
Shih-Chin Chen, ABB
Alfred Li, US Gypsum
Steve Ottone, Mallard Creek Polymers
Nancy Ross Sutherland, USFS Forest Products Lab
Frank Sutman, Ashland Hercules Water Technologies
Scott Yeakey, Omya
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TAPPI is pleased to announce the Call For Papers for the 2010 NETInc. Technical Program. NETInc. stands for the Innovative Nonwovens Conference organized by the Nonwovens Engineers and Technologists (NET) Division of TAPPI in collaboration with the Nonwovens Institute at North Carolina State University.

The deadline for submissions has been extended until June 25, 2010.

The following key areas of application will be of interest:Health & Well Being, Safety & Security, Environment & Sustainability, Energy & Infrastructure, Emerging Technologies/Market Trends, Nanotechnology and Training Future Leaders.

Authors interested in presenting a paper on these or related topics should submit an abstract with full contact information to NET@tappi.org. The deadline for submissions has been extended to June 25, 2010; authors will be notified in early July regarding acceptance. Extended Abstracts will be due on August 30, 2010.

For more information please visit www.netincevent.org or contact:Craig McKinney, TAPPI Program Manager at cmckinney@tappi.org or 770-209-7294.

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On Tuesday, June 1, Jeffrey (Jeff) A. Smith appeared as the second TAPPI member to be featured on the new website addition, Member Spotlight.  In May, Spotlight debuted with an article on longtime member Chuck Klass. 

Jeff, an active member since 1988, is an Account Manager with BTG Americas Inc.  A recent winner of the prestigious Paul W. Magnabosco Outstanding Local Section Member award, Jeff has been involved in numerous committees and projects, including serving as Membership Chair for the Gulf Coast section for nearly 20 years.

Would you like to be featured in the Spotlight?  It's easy to do.  Simply fill out the Spotlight Questionnaire and email it to MemberSpotlight@tappi.org.  If you would like to nominate a member, simply send their name (or names) to the same email address. Back To Top

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Registration is now open for the 2010 International Conference on Nanotechnology for the Forest Products Industry, 27-29 September 2010 at the Dipoli Congress Centre in Espoo, Finland.

For the first time, this annual meeting will be held outside of North America. Join industry experts, scientists, health and safety specialists, legal and government policy makers, and leading researchers from multiple disciplines to discover how nanotechnology can shape the next generation of value-added forest products.

Keynote presentations will be made by Andriy Kovalenko, Senior Research Officer, Group Leader – Theory and Modeling, NRC-NINT and Adjunct Professor, Department of Mechanical Engineering, University of Alberta; and Hadi Mahabadi, Vice President and Center Manager, Xerox Research Centre of Canada (XRCC).

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Harnessing the promise of technology, one of TAPPI's program partners, VoIPcare Technology, has started a six-month trial period with members of the pulp and paper industry. The purpose is to evaluate the benefits and ROI associated with the use of VoIPcare's qMetrix™ software product for Transportation applications. 

The trial program began out of efforts of the TAPPI's Shipping, Receiving and Warehousing (SRW) Committee following a yearlong study.  Because of their design philosophy and background in data collection and information delivery, VoIPcare was chosen by the SRW team to design and implement the system.

Information that used to take days and even weeks to gather is now ready immediately at each step in the supply chain.  As a result, participants throughout the supply chain transaction have access to the inspection data and photographs support the inspections.  The VoIPcare system provides detailed information necessary to help the industry reduce the amount of in-transit damage currently experienced. 

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For only ONE price, your entire plant can attend the TAPPI sessions and see more than 100 exhibitors at the 2010 Corrugated Week October 4-8 in Baltimore, Maryland.  We're calling it the Box Plant Offer.  And, it's a real deal, because when you consider the value, there is simply no better way to exponentially increase the knowledge of your plant employees with so little expenditure.  $1295.  That's it.

"What are they thinking!?!?!"

TAPPI exists to support the success of your business.  It's what we do.  Giving more people access to the largest, single-place gathering of corrugated professionals in the industry can only lead to one positive outcome – a stronger industry overall.

"So, what's the hold up?"

Get registered here for the Box Plant Offer. Or, go to www.corrugatedweek.org for more information.  We're looking forward to seeing you ALL soon!
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"Achievement is largely the product of steadily raising one's levels of aspiration and expectation." Jack Nicklaus (1940 - ), My Story Back To Top

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