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Weekly Spotlight
MeadWestvaco, (Richmond, Va., USA), VOW Resources (Terre Haute, Ind.), and Zera Energy (Woodville, Texas) this week announced a strategic, collaborative development to enable the conversion of organic waste streams into biogas and other value added products.
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An article this past week in the Nanaimo News Bulletin, Nanaimo, B.C., Canada, reported that years of losses for Vancouver Island's beleaguered forest industry could be at an end, if Conference Board of Canada predictions prove correct.
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This summer, four regional community colleges across the U.S. hosted National Network for Pulp & Paper Technology's (NPT2) Student/Faculty Summer Institutes.
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Market Roundup
The Softwood Wood Fiber Price Index (SFPI) fell in the 2Q for the first time since early 2009, while global hardwood fiber prices trended downward in U.S. dollar terms in most regions.
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Market pulp production increased 8% during the first five months this year, with global pulp markets started to soften in July.
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After two weeks of downbeat news, North American containerboard producers got some encouraging signs this week.
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Coated recycled board (20-pt clay coated) producers in North America implemented a $20 - $30/ton (announced = $40/ton) price increase in August.
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List prices for coated unbleached kraft board (20-pt folding carton) were flat in August after the $40/ton price increase in June/July (first increase since August 2008).
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Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, announced this past week that nine individuals have been selected to serve, along with current Board Chairman Richard B. Evans and President and CEO David J. Paterson, on a newly constituted board of directors.
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CalciTech Synthetic Minerals Europe, Geneva Switzerland, his week signed a cooperation agreement with a group of partners, including the Papiertechnische Stiftung (PTS), the German Paper Research Centre, and Verein Deutscher Zementwerke (VDZ), the German Cement Works Association, and two of the largest paper and cement companies in Europe, to study the recycling of paper minerals.
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Cogent Fibre, Stamford, Conn., USA, an exporter of pine wood chips from the east coast of the U.S., has been ranked No. 402 overall and No. 7 in its industry category of manufacturing, by Inc. Magazine in its 29th "Annual 500," a ranking of the nation's fastest-growing private companies.
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Domtar Corp., Montreal, Que., Canada, this week announced that it has expanded a licensing agreement with World Wildlife Fund to now cover all of the company's EarthChoice products, including office paper.
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Stora Enso, Helsinki, Finland, reported this week that it will permanently shutdown a 195,000 metric tpy newsprint machine at its Maxau Mill in Germany by the end of November.
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A news report in Helsingin Sanomat, Helsinki Finland, this past week ran an article concerning a possible newsprint joint venture/merger between Stora Enso (Finland) Holmen (Sweden), and Norske Skog (Norway).
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Tembec,Temiscaming, Que., Canada, this week announced the permanent closure of its newsprint mill in Pine Falls, Manitoba, Canada.
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Verso Paper Corp., Memphis, Tenn., USA, this week announced the launch of its corporate Facebook page with an initial focus on increasing the reach of the company's college recruiting initiatives.
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Containerboard/Packaging
MeadWestvaco, Richmond, Va., USA, will sell its global media and entertainment packaging business to Atlas Holdings LLC, which owns a family of companies that span multiple industries including consumer packaging, steel, and pulp and paper, for $68 million in cash, subject to certain closing conditions.
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PrePak Holdings, Cookeville, Tenn., USA, a group of companies focused on contract manufacturing and packaging, has acquired TestPak, a health care supply chain company in Whippany, N.J.
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Tetra Pak, Lausanne, Switzerland, reports that it will begin supplying carton packages in Switzerland with the Forest Stewardship Council (FSC) label.
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The global consumer packaging market is worth around $400 billion, according to a new report by Research and Markets, Dublin, Ireland, titled "The Packaging Materials Future Outlook: Key Trends in New Materials, Lightweighting, and Emerging Applications."
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New Products
SCA Tissue North America, Philadelphia, Pa., USA, has launched its Tork Performance line of wiper dispensers.
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Published Pricing
Iggesund Paperboard, Sweden, has announced a price increase for both its solid bleached board, Invercote, and folding box board range, Incada.
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Korsnas AB, Sweden, is increasing the price of its White Top Kraftliner by EUR 50 per metric ton., effective October 1.
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RockTenn, Norcross, Ga., USA, this week announced a $40 per ton price increase on its CartonMate bleached paperboard products.
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People
Mohawk Fine Papers, Cohoes, N.Y., USA, announced this week that Jonathan Stone has joined the company as District Sales Manager, South Central.
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TAPPI News
TAPPI member Rick Croker says one of the best ways to learn is to teach, and he's been doing both for more than 35 years!
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The 2010 TAPPI Nominating Committee announces the 2011 TAPPI Board Slate.
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Four regional community colleges across the nation recently hosted National Network for Pulp & Paper Technology's (NPT2) Student/Faculty Summer Institutes.
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Sponsored by TAPPI’s NET (Nonwovens Engineers & Technologists) Division and the Nonwovens Institute (NWI), the Innovative Nonwovens Conference (NETInc), November 10-12, 2010 in Raleigh, NC USA, is the only technical conference developed by engineers and technologists to help you understand the innovation behind the science and how it impacts the market.
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The paper coating community will be converging in Munich, Germany 11-13 October 2010 for the TAPPI 11th Advanced Coating Fundamentals Symposium. This biennial event attracts the world's foremost experts in coating technology and is the preeminent symposium for leading-edge research.
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Complete Agenda Announced for Specialty Papers 2010 -- Register today!
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"The weakest living creature, by concentrating his powers on a single object, can accomplish something....
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Weekly Spotlight
MeadWestvaco, (Richmond, Va., USA), VOW Resources (Terre Haute, Ind.), and Zera Energy (Woodville, Texas) this week announced a strategic, collaborative development to enable the conversion of organic waste streams into biogas and other value added products. The companies will immediately begin construction on a demonstration plant adjacent to MWV's Evadale, Texas, USA,mill.
VOW Resources, an organic waste management and resource recovery company, will provide the design, engineering, and testing of the process to be used at the plant. Zera Energy will be responsible for the construction and operation of the plant, and MWV will determine the technical and commercial feasibility of the biogas generation process and, upon successful testing, will apply the technology to its waste treatment operations.
Construction of the demonstration plant is expected to be complete this November. Initially, the biogas facility will create approximately 30 construction jobs and provide 12 full-time positions at the demonstration plant. Terms of the agreement were not disclosed.
"This is an exciting opportunity to apply advancements in green technology to enhance our operations and generate renewable energy sources," said Jim Gresham, VP, MWV's Evadale Operations. "We anticipate numerous benefits from this collaborative effort, including reducing consumption of water and natural gas, lowering our landfill requirements, and creating a valuable organic fertilizer."
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An article this past week in the Nanaimo News Bulletin, Nanaimo, B.C., Canada, reported that years of losses for Vancouver Island's beleaguered forest industry could be at an end, if Conference Board of Canada predictions prove correct. The board analyzed six of Canada's key industrial sectors including the pulp and paper industry and the wood products sector. While Canadian paper producers lost about $3 billion in the past two years, the research organization forecasts an end to losses in 2011.
According to the article by Jenn McGarrigle, the board also forecasts that major losses in the wood products industry are at an end and profits country-wide could reach $1 billion as early as 2012. A bright spot for both industries, said Michael Burt, the board's associate director of industrial economic trends. is the growing demand for pulp, paper, and wood products in China. "China is becoming a major producer of wood and paper products, but they don't have a lot of fiber domestically," he said. But both industries also face significant challenges, Burt added. Demand for newsprint and other communication papers is expected to continue to decline due to the trend towards online reading and advertising, he pointed out.
In the article, Levi Sampson, president of Nanaimo Forest Products, which owns Harmac mill, said while there are signs of a turnaround, things could change quickly. "Our biggest challenge will probably be staying competitive in a global market," he said. "You need to lower your costs, increase efficiencies, reinvest back into the mill." Harmac has operated in the black for about a year, Sampson said. He attributes that partly to finding new markets for pulp and paper products other than newsprint and a growing market in China, and partly to the mill's shift to an employee-owned model, which lowered operating costs.
While the Conference Board expects modest growth in the pulp and paper industry, Burt said the wood products industry might see significant growth in the next four years. China is a growing market and Canadian companies need to start adapting wood products to match that country's needs, he said, such as producing lumber in metric instead of imperial units.
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This summer, four regional community colleges across the U.S. hosted National Network for Pulp & Paper Technology's (NPT2) Student/Faculty Summer Institutes. The recently completed institutes provided a forum for high school students, high school advisors, and college educators to gather. While there, they explored the products, processes, and career opportunities in the pulp and paper industry.
This year's annual institutes, held in Maine, Washington, Alabama, and Minnesota, provided participants with hands-on exposure to pulp and paper processes and included visits to local pulp and paper production facilities. Many students visited the University of Maine's campus to observe ongoing research in the area of cellulosic biofuels.
"I realized it involved more technological skill than I initially believed," said one student participant at Itasca Community College in Grand Rapids, Mich. "It made me want to consider working in the paper industry."
Each institute is designed to enable participants to achieve several goals:
- Describe key processes including pulping, papermaking, and paper recycling
- Demonstrate scientific principles related to pulp and paper technology
- Develop methods to incorporate pulp and paper concepts and learning materials into the classroom
- Provide information about career opportunities in the industry.
The Network was created to provide the pulp and paper sector of the U.S. forest products industry with a Technologically Advanced Workforce (TAW). NPT2 achieves this goal by offering exciting and effective education and training. The Network is an alliance of community colleges, universities, industry partners, and the National Science Foundation. NPT2 is a part of the TAW platform supported by TAPPI, the leading association for the worldwide pulp, paper, packaging, and converting industries and the American Forest and Paper Association's special project group, Agenda 2020.
More information is available from T. J. Murphy, executive director, NPT2, tjmurphy@ascc.edu, +1 (334) 637-3193.
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Market Roundup
The Softwood Wood Fiber Price Index (SFPI) fell in the 2Q for the first time since early 2009. The SFPI was $98.29/odmt, which was down 1.2 % from the previous quarter but 9.1% higher than the 2Q/09, according to the recently released Wood Resources Quarterly (WRQ), Seattle, Wash., USA. Softwood fiber prices fell the most in the U.S., Eastern Canada, Germany, and the Nordic countries, while prices were higher quarter-over-quarter in Western Canada, Russia, and New Zealand.
Global hardwood fiber prices trended downward in U.S. dollar terms in most regions covered by the WRQ. The biggest declines occurred in the U.S., Australia, and most countries in Europe. As a result, the Hardwood Wood Fiber Price Index (HFPI) was down 2.3% from the previous quarter to $103.37/odmt, but was still 9% higher than 12 months ago.
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Market pulp production increased 8% during the first five months this year, WRQ adds. The biggest increases have been in Western Europe and selected countries in Eastern Europe, Russia, Indonesia, Thailand, and Taiwan.
Global pulp markets started to soften in July after strengthening for almost 12 straight months. Actual transaction prices, if not list prices, have leveled off and market observers believe the peak has been reached for now and that prices will be lower in the fall
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After two weeks of downbeat news, North American containerboard producers got some encouraging signs this week, Mark Wilde, senior analyst with Deutsche Bank, reports. The ISM's manufacturing index, he notes, rose from 55.5 in July to 56.3 in August. Rising OCC prices suggest stronger demand and, perhaps, more producer discipline. Outages at Smurfit's Hopewell, Va., linerboard mill are reducing supply. The $60 August price hike remains a real challenge, Wilde reports.
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Coated recycled board (20-pt clay coated) producers in North America implemented a $20 - $30/ton (announced = $40/ton) price increase in August, Wilde notes. The current price increase, he adds, is driven by improved demand, strong order backlogs, and higher operating rates. This is the third price increase of the year after the $30/ton increase in January and $35/ton increase in April. At current levels, prices are up 15.6% from year-ago levels.
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List prices for coated unbleached kraft board (20-pt folding carton) were flat in August after the $40/ton price increase in June/July (first increase since August 2008), Wilde reports. At current levels of $865- $925/ton, prices are up 4.7% y/y. The recent price increase was driven by strong beverage demand and pick-up in back-to-school activity. This increase will help in restoring the spread with CRB prices, which rose in Septemer 09, January 2010, Apil 2010, and August 2010.
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Pulp & Paper
AbitibiBowater, Montreal, Que., Canada, announced this past week that nine individuals have been selected to serve, along with current Board Chairman Richard B. Evans and President and CEO David J. Paterson, on a newly constituted board of directors. The term of this new board will begin when the company's Plans of Reorganization receive creditor approval and confirmation by the U.S. and Canadian Courts, and the company emerges from creditor protection under Chapter 11 of the U.S. Bankruptcy Code and the Companies' Creditors Arrangement Act (CCAA) in Canada.
The designated non-executive chairman of the board will be Richard B. Evans, continuing AbitibiBowater's current governance practices of having a non-executive serve as chair and a majority of independent directors. The following directors will join Richard Evans and David Paterson on the new board:
Pierre Dupuis (Sutton, QC) is a board member of Norbord Inc. and Brookfield Renewable Power Fund. Previously, Dupuis was VP and COO of Dorel Industries Inc. Prior to his appointment at Dorel, he was president and COO of Transcontinental Inc. and a senior executive with Domtar Inc.
Richard Falconer (Toronto, Ont., Canada) is vice chairman and managing director of CIBC World Markets Inc. He joined Wood Gundy in 1970 and previous roles include financial analyst, director of research and co-head of Investment Banking. Falconer is a board member of the Bridgepoint Health Foundation and chair of its Campaign Cabinet Committee.
Richard Garneau (Montreal, Que.) has been a director of AbitibiBowater since June 2010. Garneau most recently served as president and CEO of Catalyst Paper Corp. Prior to his tenure at Catalyst, he was executive VP, Operations at Domtar. He also held a variety of roles at Norampac, Copernic.com, Future Electronics, St. Laurent Paperboard, Finlay Forest Industries, and Donohue Inc.
Jeffrey Hearn (Bluffton, S.C., USA) retired from International Paper in April 2009 where he served as an officer and held various general business management and technology management positions in the U.S. and Brazil. Prior to his return to the U.S. with International Paper, Hearn was president and CEO of Weldwood of Canada. He was chair of the Paperboard Mfg. and Converting Section of the American Forest Products Association, and former vice-chair of the Forest Products Association of Canada. He was also Industry CEO representative for the B.C. Forest Products Forest Practices Reform Initiative.
Sarah Nash (New York, N.Y., USA) is a board member and head of the Audit Committee of Merrimack Pharmaceuticals and director of Knoll Inc., where she serves on the Compensation and Audit Committees. Nash is also a director of Blackbaud Inc. and serves on its Nominating and Governance Committee. In August 2005, she retired as vice chairman of J.P. Morgan Chase & Co.'s Investment Bank, where she was responsible for many of the firm's client relationships. Prior to these responsibilities, she was the regional executive and co-head of Investment Banking for North America.
Alain Rheaume (Outremont, Que.) is a managing partner at Trio Capital Inc. Most recently he was EVP and president of Fido, with Rogers Wireless—a role he assumed when Microcell was acquired by Rogers. With Microcell Telecom, Rheaume was president and COO and previously served as chief financial officer of Microcell Telecommunications Inc. Previously, he was associate deputy minister of finance from 1987 to 1992 and deputy minister of finance from 1992 to 1996 in the Quebec Government. Rheaume currently serves on the Canadian Public Accounting Board and the Canadian Investors Protection Fund.
Paul Rivett (Toronto, Ont.) has been a member of the AbitibiBowater board of directors since April 2008. He has been VP and chief legal officer of Fairfax Financial Holdings Limited since 2004 and also serves as VP and COOr of Hamblin Watsa Investment Counsel Ltd. He was an attorney at Shearman & Sterling LLP in Toronto, before joining Fairfax in 2004. Rivett serves on the boards of Mega Brands Inc. and The Brick Group Income Fund.
Michael Rousseau (Oakville, Ont./Montreal, Que.) has been executive VP and CFO of Air Canada since October 2007. Previous to Air Canada, he was president of Hudson's Bay Co. (HBC). Prior to Joining HBC in 2001, he held senior executive financial positions at other large international corporations, including Moore Corp. in Chicago, Silcorp Ltd and the UCS Group (a division of Imasco Ltd). Rousseau currently serves on the board of Consumers' Waterheater Income Fund.
David Wilkins (Greenville, S.C.) was nominated by President George W. Bush to become the U.S. Ambassador to Canada in 2005, a position he held until Jan. 20, 2009. Prior to his appointment as Ambassador, Wilkins practiced law for 34 years in Greenville and has extensive experience in civil litigation and appellate practice. He was elected to the South Carolina House of Representatives in 1980 and served 25 years, culminating in his service as Speaker of the House. Wilkins is currently a partner at Nelson Mullins Riley & Scarborough LLP and chairs the Public Policy and International Law practice group. He also serves on the board of Porter Airlines.
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CalciTech Synthetic Minerals Europe, Geneva Switzerland, his week signed a cooperation agreement with a group of partners, including the Papiertechnische Stiftung (PTS), the German Paper Research Centre, and Verein Deutscher Zementwerke (VDZ), the German Cement Works Association, and two of the largest paper and cement companies in Europe, to study the recycling of paper minerals. The partners agreed to study the optimization of CalciTech's process for converting the waste stream from recycled paper production into the industrially valuable materials Synthetic Calcium Carbonate (SCC) and Sustainable Metakaolin (SMK).
By implementing this process, CalciTech notes, the paper industry can save millions of Euros in waste disposal charges and taxes, recover carbon dioxide that would otherwise be lost to the environment, and receive the SCC material that has more superior properties than the original mineral.
The cement industry is responsible for about 5% of global carbon dioxide emissions and is searching for ways to reduce its carbon footprint. Cement is made from clinker produced in energy intensive kilns. Substituting clinker is an important part of the industry's carbon reduction plans. SMK has been shown to have good pozzolanic properties and its use as a substitute for clinker in Portland cement is being evaluated.
Due to the attractive environmental benefits and the innovative nature of the CalciTech process, it is expected that European government funding will be granted to support the project. The industrial partners will also contribute and will be beneficiaries when the process is implemented.
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Cogent Fibre, Stamford, Conn., USA, an exporter of pine wood chips from the east coast of the U.S., has been ranked No. 402 overall and No. 7 in its industry category of manufacturing, by Inc. Magazine in its 29th "Annual 500," a ranking of the nation's fastest-growing private companies.
"Fast growth at any time is a big achievement; fast growth during the past few years is just short of miraculous," said Inc. editor Jane Berentson. "The Inc. 500 consists of these just-short-of miraculous companies, the ones that through ingenuity and ambition have increased revenue, hired employees, and grown fast in difficult economic times."
Cogent Fibre's wood chips are produced from the tree thinning of private timberlands in the southeastern U.S. and are used in the manufacture of pulp, particleboard, medium density fiberboard, and for biomass fired power plants. To date, Cogent Fibre has exported more than two million metric tons of pine wood chips. The company is the exclusive exporter of pine chips from its partner East Coast Terminals facility in Savannah, Ga., which is the only currently active wood chip terminal in the eastern U.S., having a 150,000 metric ton wood chip storage capacity.
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Domtar Corp., Montreal, Que., Canada, this week announced that it has expanded a licensing agreement with World Wildlife Fund (WWF) to now cover all of the company's EarthChoice products, including office paper. The sale of all papers from EarthChoice, Domtar's family of socially and environmentally responsible paper products, will now support WWF's mission. Domtar will make an annual contribution of $350,000 to WWF from the sale of its EarthChoice products.
Since its launch, more than a million tons of EarthChoice papers have been sold, all of which have been certified to the standards of the Forest Stewardship Council (FSC) and are publicly supported by both WWF-Canada and the Rainforest Alliance.
"Domtar is proud to further support WWF's conservation work through this agreement," said Lewis Fix, Domtar VP of Brand Management and Sustainable Product Development. "Domtar is committed to the responsible sourcing of fiber and to the credible forest certification of its suppliers. We can meet our customers' needs for quality, performance, versatility, and value without sacrificing the needs of the environment."
On top of the EarthChoice licensing agreement, Domtar participates in WWF's Global Forest & Trade Network, an initiative to eliminate illegal logging and improve the management of valuable and threatened forests. In addition, Domtar's work with WWF has included efforts to help increase FSC forest certification and protect areas throughout Canada and to increase access to forest certification for small, private landowners in the U.S, .
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Stora Enso, Helsinki, Finland, reported this week that it will permanently shutdown a 195,000 metric tpy newsprint machine at its Maxau Mill in Germany by the end of November. Newsprint production at Maxau will end due to weak European market outlook and high production costs, the company says, adding that sales prices have fallen significantly while recovered paper and wood costs have risen strongly. "As a result, there is no realistic prospect of newsprint production at Maxau Mill becoming profitable again in the foreseeable future," the company stated in a release.
Juha Vanhainen, EVP, Publication Paper Business Area, noted that "the European newsprint market is structurally heavily oversupplied and there has been no substantial recovery in demand since consumption collapsed in early 2009. The outlook for demand is negative too. In addition, the availability of wood and recycled fiber in Germany has been limited, so costs have been rising fast recently."
The permanent shutdown of the newsprint machine at Maxau Mill will reduce European newsprint capacity by approximately 1.5%. It will affect about 180 of the 617 people employed at the Maxau Mill. Stora Enso is working on a social plan for the employees affected by the restructuring measures. The two uncoated magazine paper machines with total annual capacity of 530,000 metric tpy will remain in operation.
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A news report in Helsingin Sanomat, Helsinki Finland, this past week ran an article concerning a possible newsprint joint venture/merger between Stora Enso (Finland) Holmen (Sweden), and Norske Skog (Norway). Stora Enso subsequently issued a statement that "there are no discussions ongoing concerning the matter mentioned in Helsingin Sanomat."
Reportedly, stock market trading in the three companies halted for six hours following the newspaper report. Holmen and Norske Skog have so far declined to comment on the article.
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Tembec,Temiscaming, Que., Canada, this week announced the permanent closure of its newsprint mill in Pine Falls, Manitoba, Canada. The mill had been indefinitely idled due to a labor dispute on Sept. 1, 2009. After examining a full range of options, the company initiated a sales process for the mill in early January 2010. This sales process has proved unsuccessful. After a thorough analysis of the situation, the company concluded that the permanent closure of the facility was the only viable option. Approximately 230 employees will be affected.
"Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision," said Chris Black, Tembec's executive VP and president, Paper Group. "The company intends to act in a manner that will ensure that employees receive their severance pay in accordance with the collective agreement."
As a result of this announcement, a net charge of approximately $8 million related to the closure will be recorded in the quarter ending September 25.
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Verso Paper Corp., Memphis, Tenn., USA, this week announced the launch of its corporate Facebook page with an initial focus on increasing the reach of the company's college recruiting initiatives. The Verso Facebook page will provide potential college recruits with the company's campus recruitment schedule and news about Verso, including features on the company's sustainability initiatives and community activities.
"We believe our use of Facebook as an avenue to communicate with potential job applicants will help us continue attracting the right candidates to Verso," said Lyle Fellows, senior VP of Manufacturing and Energy. "Finding and retaining the right talent for our manufacturing and corporate locations is critical to the ongoing success of our company."
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Containerboard/Packaging
MeadWestvaco, Richmond, Va., USA, will sell its global media and entertainment packaging business to Atlas Holdings LLC, which owns a family of companies that span multiple industries including consumer packaging, steel, and pulp and paper, for $68 million in cash, subject to certain closing conditions. Completion of the transaction is expected September 30.
The MWV media business specializes in packaging for DVDs, music, and video games and has approximately 1,450 employees. Included in the sale is the global network of media packaging businesses that operate under the names AGI Media, AGI Amaray, and AGI Polymatrix. Principal operations are in the U.S., the U.K., Austria, France, Ireland, Germany, Poland, The Netherlands, and Australia.
"This transaction allows us to further sharpen our focus on the growing global consumer packaging markets we have selected and dedicate our resources to ensure we are leveraging our capabilities in these key markets," said John A. Luke, Jr., MWV chairman and CEO. "The media and entertainment business team has achieved great success in this market and continues to be at the forefront of innovative packaging for music, movies, and video games. We are confident that under Atlas' ownership, the media and entertainment business will continue to have a market-leading position in this sector."
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PrePak Holdings, Cookeville, Tenn., USA, a group of companies focused on contract manufacturing and packaging, has acquired TestPak, a health care supply chain company in Whippany, N.J. Founded in 1983,TestPak offers a wide range of contract packaging, development, and logistics services to clients in the pharmaceutical, nutritiona,l, and consumer products industries. It specializes in solid-dose packaging into several different configurations.
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Tetra Pak, Lausanne, Switzerland, reports that it will begin supplying carton packages in Switzerland with the Forest Stewardship Council (FSC) label. Starting with a range of packages for Coop stores later this month, Tetra Pak plans to offer around 340 million FSC-labeled packages to Swiss customers next year, representing around 60% of its annual sales in this market.
Currently, only 5% of the global forest stocks are FSC certified, and Tetra Pak says that it is working with its partners to support an increase in supply. The world's first FSC-labeled liquid food cartons were introduced in the U.K. in 2007. Since then, Tetra Pak has introduced more than 2.3 billion through 2009.
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The global consumer packaging market is worth around $400 billion, according to a new report by Research and Markets, Dublin, Ireland, titled The Packaging Materials Future Outlook: Key Trends in New Materials, Lightweighting, and Emerging Applications. The market has been relatively resilient in the face of economic ups and downs, but the current recession has taken its toll—2009 saw a downturn in market value. The new report pinpoints the reasons why, highlights consumer and industry trends, and takes a speculative look at the future.
"There is no doubt that consumer goods and consumer packaging are now facts of modern life, but the market is evolving and it is only prudent to understand the drivers of change and to take this understanding into planning for the future," the report notes.
The inexorable rise of plastic packaging has been the key market narrative, a rise driven by cost, convenience, and the entirely natural desire to do ever more with ever less, the report emphasizes. Plastic, however, is made from petrochemicals and raw materials are becoming increasingly costly. More significant still, plastic has relatively poor environmental credentials and is profoundly disliked by consumers, particularly in the developed West. Nevertheless, the plastics sector continues to receive the lion's share of R&D into new technology, although bioplastics and nano-enhanced super packaging are both some way from being commercially viable, the report continues.
Paper-based packaging is still the largest sector and has very strong environmental credentials, according to the report, Improving paper's barrier properties is a crucial step in increasing its viability as a packaging material. Glass has an enviable reputation as a premium material and as a packaging medium out of which food and drink taste better. Lightweighting is helping make glass easier to handle and more cost-effective in production and distribution. The rise of the aluminum beverage can has helped sustain the metal packaging sector in other areas.
The report assesses the relative weights of all of these trends and sets the packaging market in its context: social, economic, environmental and cultural. It examines this complex and dynamic market organically, from the viewpoints of suppliers and end-users and looks in detail at regional drivers, as developing markets increasingly shape the future.
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New Products
SCA Tissue North America, Philadelphia, Pa., USA, has launched its Tork Performance line of wiper dispensers. The new dispenser is engineered to be functional and reliable, while helping reduce costs, improve hygiene, and decrease waste. It featrures an ergonomic design and comes with new color options.
"This assortment of wiper dispensers will improve our customers' productivity and minimize waste to boost their bottom line," said John Drengler, VP of product and marketing, SCA Tissue North America. "The innovative new systems will also meet our customers' needs for a hygienic work environment, while cutting down on product waste."
The Tork Performance dispensers for centerfeed rolls and folded wipers are especially designed for kitchen and food preparation environments, industrial facilities, and hygiene sensitive areas as they are durable and protect the wiper, preventing cross-contamination. They are also available in a high-capacity model for more substantial tasks. In addition, wall and mobile floor stands are offered for larger rolls.
Each dispenser in the line is tailored to help control consumption, thus decreasing refill and disposal costs. Several of the wiper options in the Tork Universal and Advanced series are 100% recycled and third-party certified by EcoLogo Tork Performance dispensers are available in red and smoke as well as aqua and white color combinations.
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Published Pricing
Iggesund Paperboard, Sweden, has announced a price increase for both its solid bleached board, Invercote, and folding box board range, Incada. The prices for both products will be raised by EUR 100 per metric ton in European markets and £100 in the U.K. for all deliveries beginning October 18. The change will also affect all plastic coated and laminated Invercote and Incada products.
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Korsnas AB, Sweden, is increasing the price of its White Top Kraftliner by EUR 50 per metric ton., effective October 1. The increase will apply to all of its white top linerboard products, including its coated Design, Décor, and Supreme grades as well as its uncoated Classic grade
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RockTenn, Norcross, Ga., USA, this week announced a $40 per ton price increase on its CartonMate bleached paperboard products. The increase is effective with shipments beginning October 4.
RockTenn is a producer of paperboard, containerboard, and consumer and corrugated packaging, with annual net sales of approximately $3 billion. It has some 10,000 employees at facilities in the U.S., Canada, Mexico, Chile, and Argentina.
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People
Mohawk Fine Papers, Cohoes, N.Y., USA, announced this week that Jonathan Stone has joined the company as District Sales Manager, South Central.
Stone brings more than 19 years of sales experience in the fine paper industry. He worked most recently with CTI Paper Group as Sales and Promotion Manager. His responsibilities included developing and implementing strategies for selling specialty grades as well as growing existing business and obtaining and securing new accounts.
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TAPPI News
Stepping into the Member Spotlight this month is Richard "Rick" Croker, active member since 1975. As Director of Technical Services for Georgia-Pacific Containerboard LLC, Rick is responsible for setting all product specifications for the company's containerboard mills.
A two-time past Chairman of a TAPPI local section, Rick has also served as Chairman of several committees, taught numerous courses around the world, published 20 technical papers and co-authored 12 TIPs for TAPPI's Corrugated Packing Division. An avid scuba diver, he was also a PADI instructor for more than 18 years and firmly believes that teaching enables lifelong learning.
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.
We look forward to seeing you in the Spotlight!
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The 2010 TAPPI Nominating Committee announces the 2011 TAPPI Board Slate. Nominees and their respective positions are:
Chair – Norman Marsolan - Director IPST and Chemical Engineering Professor of the Practice, Georgia Tech IPST@GA Tech
Vice Chair – Thomas J. Garland - President and CEO, PaperWorks Industries Inc.
Directors –
• Sandra L. Le Barron, Director of Environmental, Health and Safety, Finch Papers
• Markku A. Karlsson, Senior Vice President of Technology, UPM-Kymmene Corporation
• Bob Snyder, President and CEO, Orchids Paper Products
Returning Directors
Davide R. Friedman, General Mills Inc., 2009-2011
Robert J. Gallo, Voith, 2010-2012
Jeff Hamilton, Sappi Fine Paper North America, 2010-2012
Chris Luettgen, Kimberly-Clark, 2010-2012
Thomas E. Rodencal, Rodencal Paper Consulting Inc., 2009-2011
Gary M. Scott, State University of New York, 2009-2011
Larry N. Montague, President and CEO, TAPPI
Other Nominations
Per TAPPI's Bylaws, the Association's membership has until November 1, 2010, to submit other nominations to the President and CEO of TAPPI, Larry N. Montague at lmontague@tappi.org. Such nominations must be signed by at least one percent of the voting members, and each voting member may sign for only one such nomination. Each such nomination must be accepted in writing by the nominee.
The name of each such nominee so submitted, signed and accepted shall be placed on the election ballot. The election ballot shall give voters the options of voting for or against the entire slate or for or against the individual candidate(s) for each position. Elections will begin December 1, 2010, and conclude January 15, 2011. Contact Mary Beth Cornell, + 1 770-209-7210 or mcornell@tappi.org with questions.
Retiring Officers and Directors
Jeffrey J. Siegel, Mica Corporation(Chair)
Vincent Newberry, Mondi Akrosil, LLC
Nicki S. Slusser, International Paper
2010 Nominating Committee
Chair
Mark R. McCollister, Paperchine Inc.
Members
Kathy Buckman Gibson, Buckman
Scott Frasca, RohmNova
Charlie Hodges, Port Townsend Paper
Asko Hyttinen, Strategy First
Norman F. Marsolan(non-voting), IPST @ GA Tech
Larry N. Montague, TAPPI
Jeff Pallini, Fosber
Gerry Ring, University of Wisconsin--Stevens Point
Barb Russell, Sonoco
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Four regional community colleges across the nation recently hosted National Network for Pulp & Paper Technology's (NPT2) Student/Faculty Summer Institutes. The annual institutes provide a forum for high school students, high school advisers and college educators to gather. While there, they explore the products, processes and career opportunities in the pulp and paper industry.
The institutes are held in Maine, Washington, Alabama and Minnesota. They provide participants with hands-on exposure to pulp and paper processes and include visits to local pulp and paper production facilities. Many students visited the University of Maine's campus to observe ongoing research in the area of cellulosic biofuels.
"I realized it involved more technological skill than I initially believed," said a student participant from Itasca Community College in Grand Rapids, MI. "It made me want to consider working in the paper industry."
Each institute is designed to enable participants to achieve several goals:
• To describe key processes including pulping, papermaking, and paper recycling;
• To demonstrate scientific principles related to pulp and paper technology;
• To develop methods to incorporate pulp and paper concepts and learning materials into the classroom; and
• To provide information about career opportunities in the industry.
About NPT2
The Network was created to provide the pulp and paper sector of the US forest products industry with a Technologically Advanced Workforce (TAW). NPT2 achieves this goal by offering exciting and effective education and training. The Network is an alliance of community colleges, universities, industry partners and the National Science Foundation. NPT2 is a part of the TAW platform supported by TAPPI, the leading association for the worldwide pulp, paper, packaging, and converting industries and the American Forest and Paper Association's special project group, Agenda 2020.
More information is available from T. J. Murphy, Executive Director, NPT2, tjmurphy@ascc.edu, +1 (334) 637-3193. Visit www.npt2.org.
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Sponsored by TAPPI’s NET (Nonwovens Engineers & Technologists) Division and the Nonwovens Institute (NWI), the Innovative Nonwovens Conference (NETInc), November 10-12, 2010 in Raleigh, NC USA, is the only technical conference developed by engineers and technologists to help you understand the innovation behind the science and how it impacts the market. View the Technical Program for this breakthrough event.
NETInc is unlike any other nonwovens conference because the program is developed by the industry experts that drive innovation and new technology in the nonwovens arena. The NET Division volunteers have strived to build a strong technical program that you have come to expect from TAPPI as well as poignant keynote sessions, cutting edge technology and a tour of NWI’s Pilot Plant facility. For more details about this event, including registration, visit www.netincevent.org.
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The paper coating community will be converging in Munich, Germany 11-13 October 2010 for the TAPPI 11th Advanced Coating Fundamentals Symposium. This biennial event attracts the world's foremost experts in coating technology and is the preeminent symposium for leading-edge research. Your next opportunity won't come until 2012!
View the brochure to see the full schedule of speakers and topics. The technical program 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.
A peer-reviewed poster session will also be held.
In addition to learning about all the latest developments, you will enjoy fun and fellowship with your colleagues from around the world at the Advanced Coating Fundamentals Dinner.
Tradition and folklore will surround you on Tuesday, 12 October, in the lager cellar at the Augustinerkeller. Since 1812, the Augustinerkeller has been one of the most popular Bavarian restaurants in Munich.
This event is included in your registration. Transportation provided.
Registration and Sponsorship information is available at www.tappi.org/10acf.
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This November 10-11, join your colleagues in Chicago, Ill. USA for Specialty Papers 2010 -- the only conference devoted exclusively to the latest developments in the specialty papers sector.
The technical program includes 18 presentations from a cross-section of industry experts from organizations like Suntech Resources LLC, Hewlett Packard, Kimberly Clark, FPInnovations and Western Michigan University. You will find two days of in-depth coverage of global market trends; insights into how to improve the manufacturing process, reduce costs and increase competitiveness; the latest technology developments and the forecast for sustainability and LCA. The conference includes two round-table lunches covering the industry's hot-button topics (as determined by attendees!) where attendees can share and learn from successes and setbacks.
Register before August 27, 2010 to take advantage of the 'Super Early Bird' savings!
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"The weakest living creature, by concentrating his powers on a single object, can accomplish something. The strongest, by dispensing his over many, may fail to accomplish anything. The drop, by continually falling, bores its passage through the hardest rock. The hasty torrent rushes over it with hideous uproar, and leaves no trace behind." -Thomas Carlyle, essayist and historian (1795-1881)
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TAPPI Over the Wire | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947
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