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Travels with Larry Archive
Thursday, August 05, 2010
members edition
Weekly Spotlight
Lanworth, Chicago, Ill., USA, a natural resource intelligence provider, has updated its forest inventory analysis to reflect recent changes in rates of forest usage in the Southeastern U.S.
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The Washington Post Co. this week sold Newsweek magazine to audio magnate Sidney Harman.
Learn More...
 
In celebration of its Environment Papers line, Neenah Paper, Alpharetta, Ga., USA, has launched an "Eco-Trip for Two" sweepstakes in which one winner will have the opportunity to help make the world a better place through an environmental adventure to the Osa Peninsula in Costa Rica.
Learn More...
 
Lake States TAPPI and North Central PIMA will hold their 2010 kick-off meeting on Tuesday August 24 at the Bull’s Eye Country Club in Wisconsin Rapids, Wis., USA.
Learn More...
 
Market Roundup
The global corrugated board packaging market is forecast to grow to 98 million metric tpy in 2015, a new study by Pira Internationa, Leatherhead, U.K., reveals.
Learn More...
 
The just-released 25th edition of "Demand and Supply Statistics," an annual report published by CEPIPRINT (Association of European Publication Paper Producers), shows that total deliveries of mechanical publication papers were "tightly squeezed" last year as the knock-on effect of the global economic recession filtered through all of the links in the paper supply chain.
Learn More...
 
Global pulp prices are expected to decline $30 - $50/metric ton in August as more producers announce price cuts.
Learn More...
 
All major North American containerboard producers have already announced a third $60/ton price increase, effective early August, "and we expect their box hike to follow."
Learn More...
 
Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, announced that in connection with its ongoing creditor protection proceedings, the U.S. Bankruptcy Court for the District of Delaware this past Monday approved the company's solicitation materials for its U.S. plan of reorganization.
Learn More...
 
Catalyst Paper, Richmond, B.C., Canada, has made several changes to its board of directors, effective immediately. Assuming the role of chairman is Benjamin Duster IV, former chairman of Algoma Steel.
Learn More...
 
Certified Paper Rolls and Paper Tech, Charlotte, N.C., USA, a paper distributor owned and operated by Susan Bock and Frances Silvus. was sold this week to Discount Paper Depot Inc., which is owned and operated by Morad and Rola Slaich and Simon and Adriane Brais.
Learn More...
 
Chenzhou Yunong Paper Co., Hunan province, China. has ordered a new bleached chemi-mechanical pulping (CTMPc) line from Metso, Finland.
Learn More...
 
FPInnovations, Pointe-Claire, Que., Canada, this week announced a new license agreement with Technidyne Corp., New Albany, Ind., USA, to bring FPInnovations' new macrostickies measurement technology, FPAutoSpeck, to the worldwide pulp and paper industry.
Learn More...
 
Georgia-Pacific, Atlanta, Ga., USA, this past week completed the acquisition of Alabama River and Alabama Pine pulp mills in Perdue Hill, Ala., from Parsons & Whittemore.
Learn More...
 
M-real Corp., part of Metsäliitto Group, Finland, reports that it will start statutory negotiations at the Äänekoski paper mill in Finland on August 9.
Learn More...
 
The Newark Group, Cranford, N.J., USA, this past week reported that it has obtained court approval of its prepackaged plan of reorganization.
Learn More...
 
NewPage Corp. Miamisburg, Ohio, USA, recently received a "Best of the Bullseye" award from Target Corp.
Learn More...
 
Suzano Papel e Celulose, Sao Paulo, Brazil, plans to invest up to $1.3 billion to create a renewable energy unit to produce and sell wood pellets to European electricity generators.
Learn More...
 
Containerboard/Packaging
KapStone Paper and Packaging Corp., Northbrook, Ill., USA, has elected Matthew H. Paull as a director of the company. Paull was elected as a Class C director with a term expiring in 2012.
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ayr-Melnhof Packaging, Germany, has acquired a 70% participation in Marinetti S.A., located in Santiago de Chile.
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RockTenn, Norcross, Ga., USA, has received triple chain-of-custody (CoC) certification for all of its corrugated packaging facilities including converting, graphics and preprint locations.
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SCA, Sweden, will upgrade the existing Pope reel and purchase a new winder and a new roll transport system for its Munksund Mill in Piteå, Sweden.
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Published Pricing
Caraustar Industries, Inc. Atlanta, Ga., USA, will increase prices by $40 per ton on all coated recycled paperboard grades produced by its mills, including Britone Newsback, Pearlback, Freezetone, and Whitone.
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Graphic Packaging International (GPI), Marietta, Ga., USA, , a subsidiary of Graphic Packaging Holding Co., has announced a price increase of $50 per ton on its SUS coated unbleached kraft paperboard, effective with shipments on or after August 23.
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The Newark Group, Cranford, N.J., USA, is increasing prices on all of its coated grades of recycled paperboard..
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People
NewPage Corp., Miamisburg, Ohio, USA, this week elected George F. Martin president and CEO and a member of its board of directors, effective immediately.
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Avery Dennison Corp., Mentor, Ohio, USA, has named Darrell Hughes its new VP and GM for Fasson Roll North America.
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Smurfit-Stone Container Corp., Chicago, Ill., USA, reported this week that its Recycling division has named Alex Ding sales director in China.
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TAPPI News
Combining the strategy of who you know with what you know, TAPPI member Dick Olsen has networked his way to success!
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The technical program is now available for the TAPPI 11th Advanced Coating Fundamentals Symposium. The symposium will be held October 11-13, 2010 at one of the world's leading paper research centers, PTS (Papiertechnische Stiftung) in Munich, Germany.
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By attending the Extrusion Coating Course August 24-26 you will enhance your troubleshooting skills and gain a better understanding of materials and the extrusion processes to enable you to improve your existing extrusion coating operation.
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Hiroyuki Yano, Andriy Kovalenko, and Hadi Mahabadi will present keynotes at the upcoming Nanotechnology Conference.
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The 5th Annual Pacific Section Golf Tournament will be at the Lewis River Golf Course, Woodland, Washington, on Friday, August 27, 2010.
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If you have not yet made your decision about the TAPPI Introduction to Tissue Manufacturing Course, now is the time. It's coming up soon -- August 11-12 -- in Kennesaw, Ga.
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Event will feature latest developments in recycling technologies and operations, a mill tour and special events.
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The 2010 Fall Golf Outing will be held at Kingswood Golf Club, Hudson Falls, New York, on Thursday, October 7, 2010.
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"Without deviation from the norm ...
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Metso Paper
Weekly Spotlight

Lanworth, Chicago, Ill., USA, a natural resource intelligence provider, has updated its forest inventory analysis to reflect recent changes in rates of forest usage in the Southeastern U.S. The analysis has confirmed upwards of a 50% reduction in rates of harvested acres in some active forest markets, compared with an equivalent time span from 2004-2007. Recent economic changes have decreased the need for lumber in the U.S. and Lanworth's recent update of forest cover captures the impact of the economic downturn on available forest product.

"Knowing the rate of available forest cover is strategically very important for our clients. Using our data allows clients to reduce their procurement cost by targeting their fiber procurement activities or locating harvest operations at the most optimal location," Shailu Verma, Lanworth's president and founder said. "Many in the industry rely on USFS FIA analysis, which was captured during the rise of the housing market and does not represent current forest age status."

Lanworth's Forest Age Maps show current forest age and allow users to identify the most profitable target at a time when minimizing costs is essential. The implications of the rapid rise and fall of the housing market will impact available forest product for the next decade, Lanworth notes.

"We find the current and accurate information provided by Lanworth to be an important data source for our wood procurement business. We have used Lanworth's data to focus our procurement activities in the ongoing effort to reduce the total delivered cost of wood fiber into our mills," said Jay Watrous, general operations leader, Wood Supply, Temple Inland.

More information about the Lanworth analysis of 2010 forest cover is available on the company’s website.

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The Washington Post Co. this week sold Newsweek magazine to audio magnate Sidney Harman. Harman, the 91-year-old founder and chairman emeritus of Harman International, reportedly plans to keep 250 of Newsweek’s current staff of 325. The Washington Post Co. says it will retain the pension assets and liabilities and certain employee obligations arising prior to the sale. Financial terms of the deal were not disclosed

Newsweek’s editor, Jon Meacham, reportedly will leave the magazine after the sale is completed. CEO Tom Ascheim is expected to remain in his role under Harman's ownership.

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In celebration of its Environment Papers line, Neenah Paper, Alpharetta, Ga., USA, has launched an "Eco-Trip for Two" sweepstakes in which one winner will have the opportunity to help make the world a better place through an environmental adventure to the Osa Peninsula in Costa Rica.

The Neenah "Eco-Trip for Two" sweepstakes runs to September 30. Until then, designers, printers, and anyone with a passion for the environment can enter to win by registering online. One winner will be randomly selected from all entries to receive the all-expenses-paid grand prize trip for two that includes airfare, ground transportation, six days and five nights of accommodations at an ecologically friendly resort, as well as a guided day-trip to the Neenah Reforestation Project, a project in partnership with the Natural Resources Foundation of Wisconsin and Friends of the Osa. Neenah will offset the carbon footprint for the winner’s entire trip with carbon credits.

The trip to the Osa Peninsula was inspired by Neenah’s support of the region. In 2009, the company, with mills, finishing, and distribution in Wisconsin, partnered with the Natural Resources Foundation of Wisconsin and Friends of the Osa to help reforest this conservation property in Costa Rica. One of the most biologically diverse regions in the world, the Osa Peninsula is widely acknowledged as a global conservation priority by organizations such as the Nature Conservancy and Conservation International. In addition, this forest provides a critical habitat for 54 species of Wisconsin’s migratory birds that winter in the Osa Peninsula. Eighteen of those species are conservation priorities, three are threatened, and one is endangered.

The Osa Biodiversity Center, surrounded by a sea of forest in the photo below, lies in the heart of the Osa National Wildlife Refuge.

 

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Lake States TAPPI and North Central PIMA will hold their 2010 kick-off meeting on Tuesday August 24 at the Bull’s Eye Country Club in Wisconsin Rapids, Wis., USA. A morning shotgun, scramble golf outing is planned with dinner to follow. Prizes will be awarded and individual pin events will be held. Registration fees remain the same as last year. Those submitting their registration with their fee, postmarked by August 10, will be assigned holes on a first-come, first-serve basis. Later registrations will be assigned as space is available. Foursome sponsors and all singles will be notified of their hole assignment via phone, fax, or email.

The scramble will have prizes and individual pin events. Check-in registration will be at the main entrance of the golf course club house. Golf clubs will be unloaded, tagged, and placed on golf carts for assigned holes. Beverage carts will also be available throughout the day on a cash basis. Lunch will be provided at the turn, with the standard fine cuisine of brats, hamburgers, and beverage. Prizes and donations will be awarded after dinner. In the past, various suppliers to the paper industry have been generous in donating raffle prizes. These types of donations will be appreciated again this year. Recognition will be provided during the presentations and will be published in the next issue of the "Reflections" for those who have been so generous. Please make sure the raffle items identify your company.

Registration fees are $110 per person (includes golf with cart, dinner, prize drawing, and Lake States TAPPI membership fee). For the dinner only, prizes, and Lake States TAPPI membership, the registration fee is $40 per person. Send registration fees (postmarked by August 10) to Clark H. Schabo, Schabo Printing, W5562 Center Valley Road, Black Creek, WI 54106. Make check payable to: Lake States Section of TAPPI. More information and the registration form are available on the Lake States TAPPI web site. For more information, you can also call Clark Schabo at 920-734-5073. Completed forms and credit card registration can optionally be faxed to Clark Schabo at 920-830-9610

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Market Roundup

The global corrugated board packaging market is forecast to grow to 98 million metric tpy in 2015, a new study by Pira Internationa, Leatherhead, U.K., reveals. According to the study, the sector is to grow by a CAGR of nearly 5% between 2010 and 2015, with the highest expansion rates forecast in Brazil, Russia, India, and China (the BRIC countries), and Poland.

Actual consumption of corrugated board was 77 million metric tons in 2009, with an exconverter value of almost $82 billion. Asia was 44% of total corrugated board production, China was almost 25% and the U.S. was 20%. Pira expects the overall market to rise 1.2% in 2010 to 78 million metric tons. For the period to 2015, the outlook is more positive with a forecast CAGR of 4.7%, taking the market to 98 million metric tons in 2015.

More than 60% of corrugated board is used to package non-food products. The largest single end-use sector is the electrical goods market. Processed food is 25% of the total demand and all food is just under 40%. Pira expects the strongest prospects will be found in personal and household care products, glassware, electrical goods, and chemicals. Processed food will be 25% of incremental volume, more than 5 million metric tons of additional demand between 2010 and 2015. In food markets, the BRIC countries offer the most exciting growth prospects, along with Poland and Brazil. Forecast incremental demand in BRIC countries for 2010 - 2015 is 7 million metric tons, with China taking 4 million metric tons..
The Future of Corrugated Board Packaging to 2015 offers up-to-date information on the state of the global corrugated board market plus rational forecasts of future demand, broken down by country, print process, end use, and other factors. The study also contains an in-depth analysis of the sector in terms of its key players, supply chain, geographic structure, key drivers and the shares of individual uses of corrugated board.

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The just-released 25th edition of Demand and Supply Statistics, an annual report published by CEPIPRINT (Association of European Publication Paper Producers), shows that total deliveries of mechanical publication papers were "tightly squeezed" last year as the knock-on effect of the global economic recession filtered through all of the links in the paper supply chain. As a result of the squeeze, total shipments recorded a drop of 17% (4.6 million metric tons) in 2009. The level of deliveries of Western European mechanical publication grades fell to 22.1 million metric tons, the lowest point in more than a decade.

Total Western European deliveries of newsprint fell 14% (1.3 million metric tons) over the previous year, much more than the average drop of 1.3%/year recorded since 2000. Spain took the biggest hit to demand last year, closely followed by the U.K., France, and Italy. Italy and the U.K. suffered the most from cuts in paid-for circulation, but the negative effects reached across the whole of Europe and beyond, the CEPIPRINT report notes.

On the uncoated mechanical side, total deliveries were down 19% (560,000 metric tons) y-o-y. Last year saw demand for this paper grade decline due to falling retail sales and a sharp reduction in advertising expenditures. Uncoated mechanical improved (UMI) suffered greater losses than uncoated mechanical others (UMO), largely as a result of its exposure to the negative effects of the recession through newspapers and the lack of advertising. On the other hand, UMO was less directly affected by the recession-related cutbacks through its main end-uses such as books and telephone directories.

SC-magazine deliveries totaled 4.4 million metric tons last year, down 14% (725,000 metric tons) y-o-y. Despite the drop, this paper grade was the strongest performer of all European publication grades in 2009. The level of deliveries was supported by downgrading from coated mechanical reels, LWC in particular. The impact of such downgrading can be seen in the reduction of total deliveries for coated mechanical reels, which fell 22% (2.0 million metric tons) in 2009 compared with the year-earlier period. Grade-switching was certainly one reason for the drop, but also the steep decline in the main mechanical grades end-use segments of magazines, catalogs, and promotional materials.

Total Western European capacity for mechanical publication papers was reduced by 4.4% (1.3 million metric tons) last year, the third consecutive year of capacity contraction, after the previous two years saw capacity cut by 1.7% (2007) and 1.4% (2008). With total capacity standing at 27.3 million metric tpy in 2009, it was the first time the level has dipped below 28 million metric tpy since 2003. The Demand and Supply Statistics report is downloadable from CEPIPRINT’s website.

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Global pulp prices are expected to decline $30 - $50/metric ton in August as more producers announce price cuts, reports Mark Wilde, senior analyst, Deutsche Bank. Fibria announced a $50/metric ton price drop on bleached eucalyptus kraft (BEK) in North America, Europe, and China, effective at the beginning of this month. Domtar announced a $50/metric ton cut on U.S. bleached hardwood kraft (BHK), also effective at the beginning of this month.

In the U.S., several major producers have already announced a $30/metric ton price cut on northern bleached softwood kraft (NBSK), effective August 1. These list price reductions don't capture the bloating discounts given to medium/large customers or the low prices seen from some producers of northern hardwood pulp, Wilde says. Discounts appear to be as high as 20% - 25%, rendering "list" prices less and less relevant.

June pulp data came as a positive surprise—inventories down 2 days of supply to 25 days, global shipments +9% m/m, and operating rates of 96% (May = 87%). However, Wilde notes, with U.S. spot prices coming under increasing pressure, Chinese demand weak, additional mills restarting in August, and seasonally slower summer demand, North American prices seem destined to continue correcting downward. A sharp fall in pulp prices could lead to some high-cost Canadian and U.S. mills announcing curtailments/downtime, he warns.

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All major North American containerboard producers have already announced a third $60/ton price increase, effective early August, "and we expect their box hike to follow," Wilde points out. Hikes in January and April added $110/ton to domestic list prices. "While industry fundamentals are very favorable (June box shipments +3.7% y/y, high operating rate of 96.7%, and inventories still at 30-year lows), macro indicators (soft employment, easing in ISM index, etc.) suggest that hike No. 3 will be tougher than expected," Wilde says.

Permanent capacity reductions of ˜3 million tons since 4Q08 and spring maintenance downtime have tightened markets, Wilde adds, noting that conditions are also tight elsewhere. Smurfit Kappa & Mondi recently announced a EUR 60/metric ton price increase on unbleached kraft linerboard in Europe, effective September 1. European producers have already boosted prices by EUR 150/metric ton ($176/short ton) in 2010. Last week, Mexican producers announced a $40 - $50/ton containerboard price increase, effective August 1, Wilde reports.

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Pulp & Paper

AbitibiBowater, Montreal, Que., Canada, announced that in connection with its ongoing creditor protection proceedings, the U.S. Bankruptcy Court for the District of Delaware this past Monday approved the company's solicitation materials for its U.S. plan of reorganization. On July 9, the company had obtained the Quebec Superior Court's approval for the mailing of solicitation materials and related disclosure documents for its plan of reorganization under the Companies' Creditors Arrangement Act (CCAA) of Canada. These approvals now enable AbitibiBowater to start soliciting votes from creditors to accept or reject its restructuring plans, in accordance with the applicable court orders.

The unsecured creditors committee supports the plans and the disclosure documents, AbitibiBoiwater notes, adding that the company expects to begin mailing the solicitation and voting materials in connection with the creditor protection proceedings to its unsecured creditors, including employees, on or about August 9.

"These developments signal significant progress in AbitibiBowater's restructuring process," David J. Paterson, president and CEO, said. "We are on track to emerge in the fall a stronger, more sustainable company." Before emerging from creditor protection, the company must obtain adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plans of reorganization. Ultimately, the company's plans of reorganization will require creditor approval and confirmation by the U.S. and Canadian Courts.

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Catalyst Paper, Richmond, B.C., Canada, has made  several changes to its board of directors, effective immediately. Assuming the role of chairman is Benjamin Duster IV, former chairman of Algoma Steel. Duster joined the Catalyst board in December 2007, bringing 20 years of Wall Street experience. He is a graduate of Harvard Business and Harvard Law Schools and was admitted to the Illinois Bar in 1985. He is also a director on several corporate boards including Jazz Air Holding GP Inc.

Retiring from the board is Michel Desbiens who has served as a director since 2006 and as chairman since 2007. Desbiens, a 40-year veteran of the industry, brought extensive senior management, executive, and governance experience in the pulp, paper, and printing sector to his role with Catalyst. "Catalyst Paper has weathered one of the most challenging periods in the industry's history by focusing on operating and financial fundamentals over the past four years. It was my pleasure to preside over board matters and to work with my fellow directors during this period of accelerated change," Desbiens said.

Also leaving the board is Amit Wadhwaney of Third Avenue Management, LLC. He joined the board in December 2006, bringing forest industry experience and a global equities focus as portfolio manager and senior research analyst for the Third Avenue International Value Fund and for Third Avenue's private and institutional advisory business. "It was an honor to serve on the board of Catalyst Paper. I believe that the company has the right leadership to move the company in a positive direction. Third Avenue Management remains a large shareholder of, and continues to support, Catalyst Paper Corp." Wadhwaney noted.

Duster added that "on behalf of the board, I would like to extend our thanks to both Michel and Amit for their service, insights, and leadership as directors during a particularly challenging period of industry and business restructuring."

With five mills in British Columbia and Arizona, Catalyst has a combined annual production capacity of 2.5 million metric tons. Effective in September 2010, the Elk Falls, B.C., mill will be permanently shutdown, bringing annual capacity to 2.0 million metric tons.

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Certified Paper Rolls and Paper Tech, Charlotte, N.C., USA, a paper distributor owned and operated by Susan Bock and Frances Silvus. was sold this week to Discount Paper Depot Inc., which is owned and operated by Morad and Rola Slaich and Simon and Adriane Brais. Serving greater Charlotte area for more than 30 years, Certified Paper Rolls and Paper Tech distributes a diverse line of paper products including cash register rolls, point of sale receipts, restaurant paper products, and wide format paper. It also offers promotional products, ribbons, and ink jet and laser cartridges. VR Mergers & Acquisitions Charlotte managed the transaction.

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Chenzhou Yunong Paper Co., Hunan province, China. has ordered a new bleached chemi-mechanical pulping (CTMPc) line from Metso, Finland. The line will have a capacity of 500 metric tpd and is to be commissioned in the second quarter of 2011. The order value is below EUR 10 million.

The delivery from Metso involves a conical disc high consistency refiner, low consistency refiners, screens in the screen room, as well as technical assistance during erection, startup,and commissioning. The mill uses eucalyptus as raw material.

Chenzhou Yunong Paper Co. Ltd is part of the Yunfu Starch Processing Group. Chenzhou Yunong Paper was founded in 2008 at a greenfield area with a focus on production of mechanical market pulp. The pulp production is scheduled to be in operation in 2011.

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FPInnovations, Pointe-Claire, Que., Canada, this week announced a new license agreement with Technidyne Corp., New Albany, Ind., USA, to bring FPInnovations' new macrostickies measurement technology, FPAutoSpeck, to the worldwide pulp and paper industry. The FPAutoSpeck is a fully automated analyzer that determines light and heavy macrostickies in recycled pulp using image analysis.

FPInnovations notes that this technology is the first in the world to provide real-time feedback since it automatically counts and categorizes macrocontaminants from up to four different process lines. Whether the unit is operated in the manual mode for the survey of contaminants in a mill or in the automatic mode for control, it saves time and money by providing immediate feedback to operators when evaluating incoming stock, screening, and chemical processes, according to FPInnovations.Technidyne will provide installation, training, instrument repair, parts sales, preventative maintenance, and 24-hour customer support.

FPInnovations will be presenting research and application information on the FPAutoSpeck technology at the upcoming TAPPI PEERS Conference in Norfolk, Va., October 17-20. Technidyne will be exhibiting the FPAutoSpeck in Booth No. 5.

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Georgia-Pacific, Atlanta, Ga., USA, this past week completed the acquisition of Alabama River and Alabama Pine pulp mills in Perdue Hill, Ala., from Parsons & Whittemore. The purchase also includes Alabama River Woodlands, the tall oil plant, the biodiesel plant, the chip mills at Elba and Jackson's Gap, Ala., and a pulpwood yard at Demopolis, Ala. Terms of the deal were not disclosed. GP Cellulose will operate the pulp facilities as a single Alabama River Cellulose mill, continuing to run both production lines manufacturing hardwood and softwood pulps. As announced earlier, a fluff conversion project currently under way will continue.

"We are excited about the completion of this acquisition and look forward to integrating the Alabama River Group operations into our GP Cellulose business," said Pat Boushka, president - GP Cellulose. "This is a great operation that will complement our existing mills. Our goal is for a seamless transition and we are confident this strategic investment will add long-term value for our business, our customers, and the communities where we operate."

GP Cellulose is a non-integrated supplier of market and fluff pulp to global markets, with state-of-the-art pulp mills in Brunswick, Ga., and New Augusta (Leaf River), Miss. Business offices are located in Atlanta, Zug, Switzerland, Montevideo, Uruguay, and Hong Kong and Shanghai, China. GP Cellulose's Brunswick and Leaf River mills produce an array of pulp grades that are delivered to every region of the world for a wide variety of end uses and converting technologies.

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M-real Corp., part of Metsäliitto Group, Finland, reports that it will start statutory negotiations at the Äänekoski paper mill in Finland on August 9. The statutory negotiations notice, released at the beginning of this week, covers the total workforce of about 250 personnel at the Äänekoski mill, with a maximum reduction need estimated to be 50 people, the company notes. Effects on the personnel are expected to be realized during 2011, at the latest.

M-real explains that the statutory negotiations are based on efficiency improvement measures at the Äänekoski mill to improve its profitability. This past March 29, the company announced its plan to invest approximately EUR 6 million in sheeting operations at the mill, to increase sheeting capacity, streamline the conversion process, and improve package quality and the mill’s profitability.

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The Newark Group, Cranford, N.J., USA, this past week reported that it has obtained court approval of its prepackaged plan of reorganization. The plan was approved by the U.S. Bankruptcy court in Newark, New Jersey just 51 days after commencement of the case. The company expects to exit Chapter 11 around the middle of this month.

The Newark Group’s two impaired creditor classes voted in favor of the plan by greater than 90%, and its two impaired classes of equity interests also voted in favor of the plan by greater than 90%, allowing the company to enter Chapter 11 with a fully supported prepackaged plan. Shortly thereafter, the company closed on its two DIP loans, a $50 million revolver and a $110 million term loan led by ORIX Finance.

"We are pleased to have the continued support of our note holders and lenders as we move forward to strengthen our balance sheet for sustainable growth," said Robert Mullen, president and CEO. "Throughout this process, we have maintained our focus on customers and we remain the same company with no change in facilities or capacities. We appreciate the support and commitment we have received from our stakeholders, and are excited about our future."

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NewPage Corp. Miamisburg, Ohio, USA, recently received a "Best of the Bullseye" award from Target Corp. The award is presented to creative agencies, production, and paper partners as well as individuals who exceed Target's expectations in one of four award categories--effectiveness, innovation, leadership, and collaboration. NewPage received the award for effectiveness in being a valued paper supplier. The company has been supplying paper for Target weekly circulars from its Duluth, Minn., mill for more than 20 years.

To operate in a lean manner, Target does not carry paper inventory and been trusting NewPage to deliver paper in a timely way. "Reliability from our suppliers is critical," noted Chuck Herrig, VP, marketing for Target Stores. "As a retailer, our stores are very dependent upon the circular to be a reflection of our stores and drive consumers through our doors. NewPage has demonstrated superior reliability, quality, and a true dedication to us as customers, which can be pretty rare in this industry."

Target conducts paper trials twice a year to test for a number of quality issues. NewPage paper receives the highest ratings in all of these trials and has been awarded several quality awards over the years. In addition to factors such as reliability and quality, sustainability plays an important role in the paper that NewPage supplies to Target, which contains 30% recovered or recycled materials from the Duluth mill.

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Suzano Papel e Celulose, Sao Paulo, Brazil, plans to invest up to $1.3 billion to create a renewable energy unit to produce and sell wood pellets to European electricity generators. According to Reuters news service, the unit, Suzano Energia Renovavel, would build three timber pellet plants, each having a capacity of 1 million metric tpy, with operations starting between 2013 and 2014. Most likely clients for the wood pellets would be European Union utilities that could use them to meet curbs on carbon emissions.

According to Suzano, the amount of resources and time necessary to produce 1 million metric tons of pellets could be less than half of that required to produce the same quantity of pulp. Initial annual revenues are estimated at $480 million, Reuters reports, adding that two facilities could be built between 2018 and 2019 to meet demand.

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Containerboard/Packaging

KapStone Paper and Packaging Corp., Northbrook, Ill., USA, has elected Matthew H. Paull as a director of the company. Paull was elected as a Class C director with a term expiring in 2012. He was senior executive VP and CFO of McDonald's Corp. from July 2001 until he retired from that position in January 2008. He was named to Best Buy Co. board of directors in September 2003 and in June 2010 was elected the lead independent director of the Best Buy board.

Paull also serves as an advisory director of Pershing Square Capital and on the Advisory Board of the One Acre Fund, a charity focused on improving the productivity of family farms in Africa. Previously he served as a board member of the Loyola Ronald McDonald House and as an advisory council member for the Federal Reserve Board of Chicago.

KapStone paper and Packaging is a North American producer of unbleached kraft paper products and linerboard. It is the parent company of KapStone Kraft Paper Corp. which operates paper mills in Roanoke Rapids, N.C., and North Charleston, S.C., a lumber mill in Summerville, S.C., and five chipping mills in South Carolina.

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Mayr-Melnhof Packaging, Germany, has acquired a 70% participation in Marinetti S.A., located in Santiago de Chile. The former family shareholders hold the remaining shares.

Marinetti produces folding carton packaging for multinational as well as local producers of branded goods. Currently the company employs some 650 people and generates annual sales of approximately EUR 45 million.

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RockTenn, Norcross, Ga., USA, has received triple chain-of-custody (CoC) certification for all of its corrugated packaging facilities including converting, graphics and preprint locations. The company’s certified corrugated converting facilities include locations in Athens, Ala., Camillus, N.Y., Dayton, N.J., Deer Park, N.Y., Devens, Mass., Gallatin, Tenn., Hauppauge, N.Y., Lancaster, Pa., Mooresville, N.C. Murfreesboro, Tenn., Newark, N.J., Norcross, Ga., and Spartanburg, S.C. Certified graphics and preprint operations include locations in Dayton, N.J. Hebron, Ky., and Mississauga, Ont., Canada.

These facilities are now independently certified to standards of the Sustainable Forestry Initiative (SFI), Forest Stewardship Council (FSC), and Programme for the Endorsement of Forest Certification (PEFC), representing the leading global forestry certification bodies. These organizations provide standards for third-party validation of each plant's documented processes and chain-of-custody monitoring.

Additionally, all facilities are certified to SFI's fiber sourcing procurement requirements. This combination of certifications provides RockTenn customers with the highest degree of flexibility in making chain-of-custody or fiber sourcing claims.

"The certifications will help our facilities meet growing customer demands for verification of fiber sourcing and proof of sustainable forest/fiber management," said Jim Porter, executive VP, RockTenn. "We are proud to provide our customers with the most stringent fiber certification possible, along with satisfying their needs as a high quality, low cost producer."

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SCA, Sweden, will upgrade the existing Pope reel and purchase a new winder and a new roll transport system for its Munksund Mill in Piteå, Sweden. Voith Paper, Germany, was chosen as the major supplier for these projects. Munksund intends to optimize and automate the entire process from the Pope reel, thus improving both its offering and paper production capability. The 7.1 m wide PM 1 produces kraftliner and white top kraftliner in a basis weight range of 125 to 440 g/m2.

Voith will rebuild the old Pope reel to achieve larger roll diameters and will deliver new reel spools. Parent roll handling and parent roll/reel spool transport systems will be renewed as well. The biggest single unit will be the VariFlex winder with flying splice for parent roll changing and a new type of start-and-end gluing. A pulper and an automatic core cutter are also included in the scope of supply. A transport system will be installed to transport the finished rolls to the existing wrapping equipment.

The VariFlex winder at the Munksund mill will have a maximum operating speed of 2,700 m/min. The SCA Group has had considerable experience with Voith winders in various mills and again decided on a Voith winder after having placed its latest order for Aschaffenburg, Germany, with Voith.

The upgrade of the PM 1 in Munksund will be completed in several stages, beginning this fall. The winder will come on stream in spring 2011, and finally, in fall 2011, the existing Pope reel will be rebuilt.

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Published Pricing

Caraustar Industries, Inc. Atlanta, Ga., USA, will increase prices by $40 per ton on all coated recycled paperboard grades produced by its mills, including Britone Newsback, Pearlback, Freezetone, and Whitone. The increase is effective with shipments on and after August 16.

Caraustar is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. It serves the four principal recycled boxboard product end-use markets: tubes and cores, folding cartons, gypsum facing paper, and specialty paperboard products.

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Graphic Packaging International (GPI), Marietta, Ga., USA, , a subsidiary of Graphic Packaging Holding Co., has announced a price increase of $50 per ton on its SUS coated unbleached kraft paperboard, effective with shipments on or after August 23. The increase affects GPI's coated folding carton grades, Pearl-Kote and Omni-Kote, as well as the Aqua-Kote carrier grade.

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The Newark Group, Cranford, N.J., USA, is increasing prices on all of its coated grades of recycled paperboard.. The $40 per ton increase by the company’s Paperboard Mill Division becomes effective with shipments beginning August 23.

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People

NewPage Corp., Miamisburg, Ohio, USA, this week elected George F. Martin president and CEO and a member of its board of directors, effective immediately. Martin joined Westvaco as a chemist in the corporate research department in Charleston, S.C., in 1983. From 1983 to 2005, he held various operating, technical, and staff roles at Westvaco and MeadWestvaco. Key roles included technical director of the Tyrone, Pa., coated paper mill, production manager at the Luke, Maryland, paper mill, and mill manager at the Escanaba, Mich., mill. In 2005, he was promoted to senior VP of operations for NewPage where he was responsible for the manufacturing operations of 10 mills, strategic sourcing and logistics, environmental, health and safety, order management, and engineering and maintenance.

"George has 27 years of proven leadership and operations experience in the paper industry, as well as demonstrated success in improving the overall cost structure and productivity for NewPage. He possesses the knowledge and expertise critical to profitably lead the company forward during very challenging times for the paper industry," said Robert L. Nardelli,chairman of the board of NewPage and its affiliates. "Today's news concludes a rigorous process in which the board looked at numerous and highly qualified internal and external candidates. The decision to elect George into this position was unanimous, and speaks to the board's confidence in his ability to lead the company.

"Following the recent leadership changes, George demonstrated his commitment and dedication to NewPage as he stepped up to take a lead role in running the business," Nardelli added. "His tenure at the organization will lend stability and continuity for the organization to achieve long term success."

NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin, and Nova Scotia, Canada, with a total annual production capacity of approximately 4.4 million tons of paper, including 3.2 million tons of coated paper, 1.0 million tons of uncoated paper, and 200,000 tons of specialty paper.

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Avery Dennison Corp., Mentor, Ohio, USA, has named Darrell Hughes its new VP and GM for Fasson Roll North America. Responsible for strategic development and growth of the North American Roll Materials business, Hughes will spearhead initiatives targeting sales profitability through innovation and new products, differentiated service programs, and value-added selling initiatives. He brings more than 20 years of business management and product development experience to his new position, most recently serving as president and GM of SABIC Innovative Plastics, Specialty Film, and Sheet Business, Mount Vernon, Ind.

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Smurfit-Stone Container Corp., Chicago, Ill., USA, reported this week that its Recycling division has named Alex Ding sales director in China. Ding, in his new role based in the company's Shanghai office, will focus on maintaining and developing preferred supplier relationships with Smurfit-Stone's customers, government agencies, and service providers. He has extensive knowledge of the paper and recycling industries, and will lead Smurfit-Stone's Recycling sales team in China and represent its interests in global packaging solutions, corporate procurement, cross-divisional sales, and business opportunities in China.

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TAPPI News
Wheaton, Ill., resident and long-time TAPPI member Richard H. (Dick) Olsen made his debut in Member Spotlight this Monday, August 2, becoming the fourth (and first corrugated!) member to share insights into his life and career.

A Vice President with the Corrugated Machinery Division at Mitsubishi Heavy Industries, this former Eagle Scout credits the numerous contacts and relationships cemented over a 30-year membership with having contributed greatly to his professional success.   As a self-described networker, Dick says he relies on his TAPPI contacts and conferences for help in solving corrugated dilemmas.

Spotlight participants are often recommended by fellow members and staff.  If you would like to nominate a member (or even yourself!) just send their name (or names) to MemberSpotlight@tappi.org.  We will forward a Spotlight Questionnaire to fill out and return. 

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The technical program is now available for the TAPPI 11th Advanced Coating Fundamentals Symposium. The symposium will be held October 11-13, 2010 at one of the world's leading paper research centers, PTS (Papiertechnische Stiftung) in Munich, Germany.

Held every two years, this highly regarded  symposium provides a forum for research and development professionals, chemists and technical service managers involved in paper coatings to discuss the latest technical developments. 

The technical program at this year’s symposium includes 30 peer-reviewed papers covering a wide range of topics like advanced printing fundamentals, sustainable barrier coatings, liquid interactions, optical control and advanced understanding of curtain coater application. 

The Symposium will also include a peer-reviewed poster session. Abstracts for the poster session are being accepted through August 27, 2010. View the details. Back To Top
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By attending the Extrusion Coating Course August 24-26 in Charleston, SC, USA you will enhance your troubleshooting skills and gain a better understanding of materials and the extrusion processes to enable you to improve your existing extrusion coating operation. Registration also includes a half-day Paper and Board Manufacture and Properties Workshop led by Chuck Klass

This workshop will cover an overview and terminology of paper & board grades that are PE extruded; properties of paper and paperboard grades used for extrusion coating; paper and board manufacturing variables that impact extrusion coating; and trends and new developments. View the complete course schedule. Learn more at www.tappi.org/10extru.
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Hiroyuki Yano, Andriy Kovalenko and Hadi Mahabadi will present keynotes at the upcoming Nanotechnology Conference.

The 2010 TAPPI International Conference on Nanotechnology for the Forest Products Industry is scheduled for 27-29 September 2010 at the Dipoli Congress Centre in Espoo Finland. The Technical program includes more than 80 papers, 40 posters and three keynote addresses. 

Hiroyuki Yano is a Professor at the Research Institute of Sustainable Humanosphere, Kyoto University. He will present "Potential of Cellulose Nanofiber-Based Materials" on Monday, 27 September. His research involves extraction of nanofibers from biomass resources such as wood, plant fibers, and crab and shrimp shells, and their utilization as a component of nanomaterials for optical and structural purposes.

Andriy Kovalenko is Senior Research Officer, Group Leader/Theory and Modeling, NRC-NINT and Adjunct Professor, Department of Mechanical Engineering, University of Alberta. He will present "Theory, Modeling and Simulation on Multiple Scales for Nanotechnology Applications" on Tuesday, 28 September. Dr. Kovalenko is a leading, internationally recognized expert in theoretical and computational methods of modeling on multiple space and time scales, including statistical physics and electronic structure theory. His focus is development of theoretical methods capable of predicting the behaviour of nanosystems.

Hadi Mahabadi, Vice President and Center Manager, Xerox Research Centre of Canada (XRCC), will present "Bio Based Nano Particle and Greener Printing Industry" on Wednesday, 29 September. He has been instrumental in creating an environment to increase innovation and successful commercialization of many breakthrough materials technologies at XRCC. Back To Top
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The 5th Annual Pacific Section Golf Tournament will be at the Lewis River Golf Course, Woodland, Wash., on Friday, August 27, 2010.  The fun begins at 1 p.m. with a modified shotgun start for the 4-person scramble format. There are 144 spots available, so reserve your space now!  The entry fee is $125 per person and includes Green Fees, Cart, 2 Beverage Tickets, Prizes, Meal, Awards and LOTS OF FUN!

For more information and registration: 5th Annual Pacific Section Golf Tournament.
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If you have not yet made your decision about the TAPPI Introduction to Tissue Manufacturing Course now is the time. It's coming up soon -- August 11-12 -- in Kennesaw, Ga.

This two-day course is one of very few available on tissue manufacturing. It delivers a structured examination of manufacturing processes and the effect that those processes have on product performance and quality.

View the Preliminary Course Schedule to find out more.

Register here.

Your instructor will be Dr. Michael J. Kocurek, PhD, Professor Emeritus at North Carolina State University and editor of books and many other publications. Kocurek is a TAPPI Fellow and Distinguished Service Recipient. In 2005, Kocurek was inducted into the Paper Industry International Hall of Fame, an honor bestowed on those who have made preeminent contributions to the global pulp & paper industry.

We look forward to seeing you August 11 and 12!
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The 9th Research Forum on Recycling will continue its history of highlighting cutting-edge research results from around the world. Held every three years, this event will provide participants an extraordinary opportunity to hear the latest in recycling research, discuss and debate technical and operating issues, learn and network with experts and peers, and identify future research needs of the recycling community. One registration will gain you access to both the PEERS Conference and Research Forum on Recycling programs.

Esteemed engineers, scientists and practitioners will lead sessions on all aspects of recycling technologies and operations for raw materials, ranging from newsprint to mixed office waste, during more than 35 cutting-edge presentations.
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The 2010 Empire State Fall Golf Outing will be held at Kingswood Golf Club, Hudson Falls, New York, on Thursday, October 7, 2010.   There is a 9 a.m. shotgun start, 4-Man Scramble. Included is an all-you- can-eat hot buffet, salads, desserts, beverages, and prizes after the round.  The registration deadline is September 24, 2010, and is limited to 72 players, so register early!

Help support this year’s event by sponsoring a hole! A $100 Sponsorship will have a sign denoting your contribution on a hole giving attendees the opportunity to see what you offer in the way of services, as well as an appreciation for supporting this year’s event.

For additional information and to register: Empire State Section Golf Tournament.
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"Without deviation from the norm, progress is not possible." – Frank Zappa, composer, musician, film director (1940-1993)

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Ken Patrick Ramesh Gupta Larry N. Montague
Editorial Director International Editor President and CEO
770-209-7340 bsc_rcg@hotmail.com lmontague@tappi.org
kpatrick@tappi.org    
30 years' experience writing for the pulp,    
paper, packaging, and allied industries    
     
Karen Roman
Maria Luisa Valencia Eric Fletty
Production/Distribution Editor International Editor Vice President, Operations
770-209-7416 mlvalencia@une.net.co efletty@tappi.org
kroman@tappi.org    
     
  Shane Holt  
  Integrated Media Director, Naylor, LLC  
  352-333-3345  
  sholt@naylor.com  

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