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Weekly Spotlight
Menasha Corp., Neenah, Wis., USA, this week announced plans to install five wind turbines for electrical generation at its office and manufacturing complex on the southwest side of Neenah along Highway 41
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The North American tissue division of SCA, Philadelphia, Pa., USA, is awarding environmental education grants totaling nearly $25,000 to schools and non-profit organizations in communities where its employees work and live
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Georgia-Pacific LLC, Atlanta, Ga., USA, reported this week that it will expand its forest protection and sustainability efforts with an updated policy to better identify and protect endangered forests in the U.S., promote conservation of forest diversity, and enhance its sustainable forestry and recycling practices
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The goal of the trial is to determine if a common platform for information sharing can lead to reduced in-transit damage to paper rolls
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Market Roundup
U.S. kraft paper shipments in October were 124,500 tons, an increase of 0.7% compared with October 2009, but a decrease of 7.2% compared with September 2010
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Global market pulp list prices remained flat in November, but the underlying market continues trending lower
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U.S. UFS shipments were disappointingly weak in October
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Preliminary CFS October shipments were +3.5% y/y (YTD +19.3% y/y)
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Strong domestic demand and higher OCC costs (November = +$10 - $30/ton m/m) are driving U.S. recycled boxboard prices
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Pulp & Paper
Cascades, Montreal, Que., Canada, this week announced what it calls a "different way to think about the Holiday Season"—a 100% recycled Christmas tree with a small environmental impact
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The mill will have an annual production capacity of approximately 444,000 metric tons
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FutureMark Paper Co., Alsip, Ill., USA, this past Monday (November 15)—America Recycles Day—announced it has recycled more than 1.5 billion lb of paper since its mill first began producing coated publication paper eight years ago
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To increase the competitiveness of No.51 and No. 53 paper machines at its Braviken, Sweden, mill, Holmen Paper AB will install Voith (Germany) OnQ quality control systems on each
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Marcal Paper Mills, Elmwood Park, N.J., USA, this week named Fred Smagorinsky its new CEO
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NewPage Corp., Miamisburg, Ohio, USA, this week announced the upload of a new episode in its On Paper sustainability podcast series, featuring REI (Recreational Equipment Inc.), a national outdoor gear and clothing retailer
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West Fraser, Vancouver,m B.C., Canada, will proceed with an energy efficiency upgrade of its Hinton Pulp pulp machine
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Containerboard/Packaging
Korsnäs, Sweden, reports that it is now offering its Packaging Performance Service (PPS) to all customers, regardless of what material they buy from the company
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MeadWestvaco Corp., Richmond, Va., USA, this week said that it will grow its corrugated packaging business in the Brazilian market by expanding operations at Rigesa, the company's Brazilian subsidiary
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PT. Pelita Cengkareng Paper & Co., Indonesia, is relocating a containerboard machine to its Subang mill in Indonesia
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Smurfit-Stone Container Corp., Chicago, Ill., USA, reports that the UNIK Local 34 union (UNIK) at the company's La Tuque, Que., Canada, mill rejected its contract offer tendered on November 10
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Nonwovens
A Texas Tech University, Lubbock Texas, USA, fabric researcher will receive an honorary fellowship from the world's largest textile and fiber association
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Published Pricing
Caraustar Industries Inc., Atlanta, Ga., USA, will increase prices on all grades of uncoated recycled paperboard, effective with shipments on and after December 6
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Caraustar Industries Inc., Atlanta, Ga., USA, also this week announced today that it will increase prices by $35 per ton on all of its coated recycled paperboard grades
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Eka Chemicals, Sweden, the AkzoNobel Pulp and Paper Chemicals business, will increase prices across its entire European Paper and Bleaching Chemicals product range immediately, or as contracts permit
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KaMin LLC, MaCON, Ga., USA, this week announced a price increase for kaolin clay products it supplies to the global paper industry, effective January 1or as contracts allow
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RockTenn, Norcross, Ga., USA, also will implement a $35 per ton price increase on all grades of uncoated recycled paperboard
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Thiele Kaolin Co., Sandersville, Ga., USA, this week announced that it will increase the price on kaolin products for all markets, effective January 1
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TAPPI News
TAPPI has announced its course schedule for the first quarter of 2011. It will include three TAPPI courses and one North Carolina State University course.
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The world's leading pulp and paper event, SPCI, takes place in Stockholm, Sweden, May 17-19, 2011.
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The University of Maine Pulp and Paper Foundation in Orono, Maine, recently distributed more than $262,000 in scholarship funds to engineering and forestry students interested in pulp and paper industry-related careers.
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A new name and expanded high-quality content make the 2011 TAPPI International Conference on Nanotechnology for Renewable Materials the not-to-miss event
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The Call for Papers for the 2011 Progress in Paper Physics Seminar is underway.
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Sessions on sustainability, the environment and biorefineries drew a large number of attendees at 2010 TAPPI PEERS Conference and the 9th Research Forum on Recycling, held October 17-21 in Norfolk, Va.
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Staying in touch with business colleagues continues to evolve at dizzying speeds. To provide members of the TAPPI community with a way to communicate on the go, TAPPI has created a foundation of social media tools to help you.
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The 2011 Student Summit will take place January 15-17 in Kingsport, Tenn. It will draw students from around the country to focus on "New Directions" and promising developments in the pulp and paper industry.
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Weekly Spotlight
Menasha Corp., Neenah, Wis., USA, this week announced plans to install five wind turbines for electrical generation at its office and manufacturing complex on the southwest side of Neenah along Highway 41. The installation of five wind turbines is the largest announced by a business to date in Northeastern Wisconsin.
"Our renewable energy project is part of the corporation's support of alternative energy solutions and our focus on becoming a leader in sustainability," said Jim Kotek, Menasha Corp.'s president and CEO. "Earlier this year, we identified sustainability as one of the critical areas in which Menasha must step forward and take a market leadership position. We have now made an important commitment to our community, customers, employees, and shareholders by demonstrating that we are serious about improving the environment by using clean energy sources."
Menasha is purchasing five 20 KW wind turbines from Renewegy in Oshkosh, Wis., which specializes in manufacturing wind energy turbines. The turbines are expected to produce enough electrical power to provide for the basic office needs for the 115 employees at the corporation headquarters and Menasha Packaging.
"Both of our companies—Menasha Packaging, which provides paper-based packaging solutions and ORBIS Corp., which supplies reusable plastic packaging—have been collaborating with our customers to provide innovative packaging and supply chain solutions that help build a sustainable future," said Mike Waite, president of Menasha Packaging. "The turbine project adds wind energy to the list of sustainability projects we have undertaken in our operations over the past couple of years to lessen our impact on the environment. From corrugator upgrades to high efficiency lighting to capturing the latent heat coming off of our corrugators to heat other parts of the building, we've made significant advancements in reducing our carbon footprint." In addition to the renewable energy project, the company is also implementing a number of energy-saving electrical improvements at its Neenah office.
Construction of the five wind turbines for Menasha Corp. will make a total of 20 installations made by Renewegy. Jeff Ehlers, president of Renewegy, said that "we are very pleased to be partnering with Menasha Corp. on the new installations. Wind is the lowest-cost renewable energy source available to us in the Midwest and installations such as this bring increased attention to the opportunities we have to take advantage of a natural resource that will always be here and one that's free to use."
Menasha has received approval from the City of Neenah's Planning Department for the project and has also completed a site assessment. The company expects to begin construction on footings for the turbines by mid-November, and the project will be completed by the end of the year. The turbines will be installed in the greenway between Menasha Packaging's manufacturing plant and its north office building on Bergstrom Road.
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The North American tissue division of SCA, Philadelphia, Pa., USA, is awarding environmental education grants totaling nearly $25,000 to schools and non-profit organizations in communities where its employees work and live. The fourth annual awarding of the environmental grants is part of SCA's commemoration of America Recycles Day (Monday of this week, November 15). Since the inception of the education grant program in 2007, SCA has provided nearly $120,000 in environmental education funding to schools in Arizona, Alabama, New York, and Wisconsin.
This year's grant recipients include a total of 14 elementary, middle, and high schools located in Alabama, Wisconsin, Arizona, and upstate New York. Individual grants range from $576 to $2,500, with winning applicants each getting the full amount requested for their projects. Those projects involved recycling programs and equipment, water conservation, lake research, soil study, community recycling events, gardens, solar power experiments, an environmental field trip, and an outdoor classroom.
As part of America Recycles Day, SCA also offered free paper and electronics recycling to its employees at all of its plants.
"Our commitment to sustainability—a core principle in the way we conduct our business—extends to the communities where our employees live and work," said Don Lewis, president of SCA's North American tissue division. "We view these grants as a natural extension of our commitment to producing environmentally friendly Tork products and driving sustainable business practices."
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Georgia-Pacific LLC, Atlanta, Ga., USA, reported this week that it will expand its forest protection and sustainability efforts with an updated policy to better identify and protect endangered forests in the U.S., promote conservation of forest diversity, and enhance its sustainable forestry and recycling practices. The policy update is the result of ongoing discussions with customers and suppliers, and several years of consultation with a number of environmental organizations, including the Rainforest Action Network, the Natural Resources Defense Council, and the Dogwood Alliance, G-P notes. In addition, the group worked with Liz Kramer, Ph.D, from the University of Georgia, to develop the scientific methodology that is a focus of the updated policy.
"This policy continues our commitment to sustainability in the fiber we source and the products we make," said Jim Hannan, G-P CEO and president. "We continue to believe it is possible to operate in a way that is environmentally responsible and also economically sound. This policy also gives us the opportunity to address issues of increasing interest to our customers and to consumers."
Key provisions of the updated policy include:
- Work collaboratively to help define and map endangered forests and special areas where the company will not source fiber
- Encourage the conservation of natural hardwood forests through measures to evaluate the existing level of natural hardwood forest, and not promoting future conversion of such forests to pine plantations
- Continue to not source fiber from the Tongass National Forest in Alaska, until roadless areas identified in the 2001 Roadless Area Conservation Rule are permanently protected
- Continue requiring loggers to use both mandatory and voluntary state forestry best management practices
- Continue certification of the company's wood and fiber procurement practices
- Increase the internal rate of post-consumer recycled fiber within the company's total recycled fiber supply system to 50%.
"This expanded policy on forest protection and sustainable practices outlines our new commitments, but also reaffirms the sustainable forestry activities and processes we already have in place," said Deborah Baker, VP of sustainable forestry, environmental, and community outreach. "Working with the environmental groups helped us make sure that we had outside input, which we believe helped us formulate a better policy statement."
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This past May 17, the TAPPI SRW Damage Prevention Trial Program kicked off. The goal of the trial is to determine if a common platform for information sharing can lead to reduced in-transit damage to paper rolls. More than 25 locations are participating in the trial, including major mills, printers, publishers and carriers. In the three months following start of the trial, the system processed 1,099 pre-load equipment inspections with an acceptance rate of 94.6%. Of the 5.4% of railcars rejected, 100% had holes, 35.6% contained dunnage, and 33.9% had bad door seals. The system database now contains more than 1,300 individual railcars for which it maintains the current repair status.
Shipping and receiving inspections are monitoring the performance of load protective measures. There have been 871 total shipments so far with the largest single dunnage failure item being wall protection devices. Twenty-one railcars have contained damaged paper with wet, torn, and split edges being the most common types of damage reported. Complete statistics have been posted on the TAPPI website.
The trial is being conducted using software designed and managed by VoIPcare Technology in Cedar Rapids, Iowa, USA. VoIPcare's qMetrix for Transportation creates a standardized reporting infrastructure designed to help the industry identify the root causes of paper damage and measure the impact of process changes.
More information is available online about the trial and how to participate in it. VoIPcare qMetrix product information is also available online, or by contacting Robin Mangold, rmangold@voipcaretechnology.com, 319-383-3230. Additional information about the TAPPI SRW Committee and the mid-project results of the SRW Damage Prevention Trial Program is available on the TAPPI website.
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Market Roundup
According to the American Forest & Paper Association's Total U.S. kraft paper shipments in October were 124,500 tons, an increase of 0.7% compared with October 2009, but a decrease of 7.2% compared with September 2010, according to the AF&PA's (Washington, D.C., USA) October 2010 Kraft Paper Sector Report released this week. Total year-to-date shipments rose 12.1% over last year. Total inventory was down 2.4% from last month. Additional key findings from the report include total unbleached kraft shipments and total bleached kraft shipments.
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Global market pulp list prices remained flat in November, but the underlying market continues trending lower, reports Mark Wilde, senior analyst with Deutsche Bank. Softwood markets remain relatively snug, but could weaken in the seasonally slower December/January period, Wilde notes, adding that hardwood markets appear weaker than softwood. BHK list prices in Asia were reportedly down $20 - $50/metric ton in October. Late last week, Chilean producer CMPC announced a $50/metric ton decline on its Asian BEK prices, effective December 1. With news of additional supply coming onboard in the next two to three months (Kertas Nusantara, Indonesia = 525,000 metric tons, APRIL's third line at Kerinci, Indonesia, and additional capacity of ˜200K metric tons at Rizhao), prices are apt to come under some additional pressure during the winter months, according to Wilde.
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U.S. UFS shipments were disappointingly weak in October. Preliminary data show that shipments were -7.8% y/y –weakest y/y comp of the year (September = -6.8% y/y), Wilde says. "Considering that October 2009 was still a relatively easy comp (-8.9% y/y), it's hard to put a cheerful face on these numbers. Prices are coming under increasing pressure. We are hearing reports of producers offering increased discounts on list prices. Cut-size pricing is reportedly down as much as $20/ton in October and offset roll price is down ˜$5/ton. It's not just the U.S. On a trip thru Europe last week, we heard reports of pricing pressure in the European UFS market," Wilde reports.
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Preliminary CFS October shipments were +3.5% y/y (YTD +19.3% y/y), according to Wilde. "This increase is the weakest we've seen since December 2009, mostly due to tougher y/y comps," he says, noting that CFS shipments are likely benefiting from anti-dumping duties recently placed on Asian imports. This could boost North American pricing and exacerbate a serious oversupply situation in Asia, he adds, pointing out that "on our recent tour of China, we saw first-hand evidence of bulging CFS inventories." If the Europeans move ahead with similar anti-dumping cases, Wilde warns, it could force serious restructuring in Asian supply. In North America, the tenor of the CFS market has improved. List prices in October were flat with September levels. In September, list prices for most grades were up $10 - $25/ton. Verso, NewPage, Sappi NA, and Appleton have all announced $40 - $60/ton price increases. NewPage also announced a $40/ton price increase on some of its coated paper grades.
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Strong domestic demand and higher OCC costs (November = +$10 - $30/ton m/m) are driving U.S. recycled boxboard prices, Wilde notes. Caraustar and Sonoco have announced a $30/ton price increase on URB, effective December 6 and November 29, respectively. Since the beginning of the year, URB prices are up $95/ton. In October, URB prices rose $25/ton (announced = $35/ton) to $635 - $665/ton, +17.1% y/y. In CRB, Graphic Packaging is still the only producer to announce a price increase: +$40/ton, effective December 1. As with URB, list prices for CRB are up $95/ton since December 2009. Discussions with trade contacts suggest that with CRB order backlogs easing in recent weeks, producers may not be able to pass-thru the full price increase this year. Part of the strength in CRB is due to continued substitution from SBS grades.
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Pulp & Paper
Cascades, Montreal, Que., Canada, this week announced what it calls a "different way to think about the Holiday Season"—a 100% recycled Christmas tree with a small environmental impact. In collaboration with its Italian partner Reno De Medici, the company has simultaneously launched two web stores that allows North-American and European households to order and receive the tree of their choice. With long, detachable pieces that function similar to a puzzle, Cascades says that assembly of the Christmas tree "becomes a true child's game, and once the Holiday Season is over, it can easily be stored."
The first three models of the Collection Reno Carton 3D, the Classico, Moderno, and Piccolo trees, are manufactured in high quality cardboard. "In white, they offer a beautiful canvas for kids and adults to use their imagination in decorating and customizing the tree to their taste. For the traditionalists, the green is available, while design aficionados will love the trendy printed version with its resolutely modern look," Cascades notes. Manufactured entirely with recycled fibers, the Christmas trees are FSC certified. Sufficiently resistant to be reused for many years, the product can then be recycled, ending its life where it began.
Cascades adds that it does not intend to shutdown its online boutique after the holiday season. The online store will gradually shift to a range of novelty products, all in line with the company's ecological philosophy, such as a cardboard children's playhouse which is already available, and cardboard children's furniture which will appear in 2011.
More information about the recycled Christmas tree and boutique are available online.
Cascades produces, markets, and converts packaging products and tissue paper, made mainly of recycled fibers. The company employs some 12,500 people in more than 100 operating units located in North America and Europe. The Reno De Medici Group is the second-ranked European producer of cartonboard based on recycled material. It has a production capacity split among several mills in Italy, Spain, France, and Germany.
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Domtar Corp., Montreal, Que., Canada, reports the on-schedule startup of its new fluff pulp machine in Plymouth, N.C., USA. The mill will have an annual production capacity of approximately 444,000 metric tons.
"This is another successful step in our strategic roadmap of pursuing growth opportunities that capitalize on our existing strengths and core competencies," said John D. Williams, president and CEO of Domtar. "The reconfiguration of the Plymouth mill to 100% fluff pulp production provides Domtar with a stronger presence in a growing global market and positions us as a leading fluff pulp manufacturer." Williams added that "the Plymouth mill is a competitive, world-class asset and I am confident that this will bring a renewed sense of purpose to its workforce and stability to the community. I would like to congratulate my colleagues at the mill for delivering this project on schedule and with an excellent safety record."
The Domtar-Plymouth mill's conversion to 100% fluff pulp production was previously announced in October 2009. Once running at full capacity, the mill will exclusively produce fluff pulp and operate two fiber lines and one fluff pulp machine. Fluff pulp is bleached softwood cellulose fiber used worldwide in absorbent applications such as baby diapers, feminine hygiene, and adult incontinence products.
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FutureMark Paper Co., Alsip, Ill., USA, this past Monday (November 15)—America Recycles Day—announced it has recycled more than 1.5 billion lb of paper since its mill first began producing coated publication paper eight years ago. FutureMark, manufacturer of up to 100% recycled lightweight coated paper for magazines and catalogs, reached the 1.5 billion lb milestone last month. To illustrate the impact of this achievement, the amount of paper recycled by FutureMark averages about 530 lb for each person in Chicago. The company says that it has reused enough waste paper to displace 2.48 million cubic yards of landfill space and to save more than 12 million trees.
Since 2003, FutureMark Paper Co. has produced lightweight coated papers. The company notes that it is on track to recycle more paper in 2010 than it has in any previous year to meet the rising demand for recycled paper among environmentally progressive publishers and retailers.
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To increase the competitiveness of No.51 and No. 53 paper machines at its Braviken, Sweden, mill, Holmen Paper AB will install Voith (Germany) OnQ quality control systems on each. According to Holmen, crucial factors for converting the existing automation technology to an OnQ quality control system include "robustness of the Voith LSC scanner and the innovative sensors." The combination of these two factors can be expected to give the lowest total cost of ownership (TCO) of the equipment, the company notes.
Along with the standard sensors for measuring basis weight, moisture, and ash content, the package also includes the 100% non-contacting caliper sensor Voith LSC QuantumSens and a Voith LSC color sensor. In addition, new Voith color control will now be used on both machines to achieve uniform color quality along with high profile quality. The existing steam box and the re-moisturizer will be completely integrated into the OnQ quality control system.
In the highly competitive European newsprint paper market, Holmen Paper's Braviken mill produces 180,000 metric tpy of white and colored directory paper and light newsprint grades on the PM 51. The 8,900 mm-wide PM 53 produces up to 300,000 metric tpy of newsprint.
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Marcal Paper Mills, Elmwood Park, N.J., USA, this week named Fred Smagorinsky its new CEO. Smagorinsky most recently served as CEO of New Jersey-based Schofield Stone, a privately held quarrier, fabricator, wholesaler, and retailer of natural stone products, where he made key, strategic acquisitions, significantly expanded the company's presence in the southeastern region, and navigated a challenging economic climate through disciplined cost, asset, and cash management.
"I'm joining a talented team at an exciting time, with consumer awareness of recycled paper goods and their environmental benefits growing rapidly," Smagorinsky said. "I've been a longtime fan of Marcal's products and recycled production process, so I come here with a special sense of enthusiasm and energy," he said. "This is a company with not just great products, but great people who embrace our company's green heritage, people who know what they do matters, and will be our strongest asset in taking Marcal to the next level."
Prior to Schofield Stone, Smagorinsky served as COO of Management Leadership for Tomorrow, a nonprofit organization addressing the under-representation of minorities in leadership positions in corporations, entrepreneurial ventures, and nonprofit organizations. He capped a 14-year career at global food and specialty packaging company Sealed Air Corp. as VP, corporate sales and marketing, spearheading worldwide strategic initiatives and the revamping of the company's North American industrial sales organization. He' had previously served as VP of manufacturing for the company's Packaging Products division, and as managing director of its Australia and New Zealand operations
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NewPage Corp., Miamisburg, Ohio, USA, this week announced the upload of a new episode in its On Paper sustainability podcast series, featuring REI (Recreational Equipment Inc.), a national outdoor gear and clothing retailer. In this episode of On Paper, Kirk Myers, REI's corporate social responsibility manager, explains how the company is transforming its environmental key performance indicators from backward-looking metrics into forward-looking business tools, to further integrate sustainability into standard business operations and strategy.
Titled "Next Generation Environmental CSR," REI's program to create synergy between profit and planet is the result of a journey the company hopes others may learn from. "We're living in an increasingly resource constrained world and things are changing very, very quickly," Myers shares. "The path forward looks different than the path behind. So where we've had successes, is not necessarily where we'll have success in the future."
Accountability is important to the program's success and Myers explains to On Paper listeners how new ideas and solutions from REI's people helps drive innovation. "We make more work for our employees, we make it more challenging. But I'd argue we make our work lives more engaging also."
After hearing about REI's journey to and implementation of the "Next Generation Environmental CSR" program, readers can then read online the company's stewardship report. The report details REI's progress to address its operational environmental impact, efforts to introduce people to nature and protect outdoor spaces, and performance in providing an inclusive and rewarding workplace.
Now in its third season, the On Paper podcast series is an ongoing solutions-based dialogue that provides a platform for professionals to share how their organizations implement sustainable practices. With more than thirty episodes featuring representatives from the most innovative of corporate America, across a variety of industries, On Paper has garnered more than one million downloads.
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West Fraser, Vancouver,m B.C., Canada, will proceed with an energy efficiency upgrade of its Hinton Pulp pulp machine. The project, which is expected to cost approximately $37 million, will be funded with credits earned under the Canadian federal government's "Pulp and Paper Green Transformation Program."
The pulp machine upgrade will allow Hinton Pulp to produce more pulp with greater energy efficiency and produce additional energy. The additional energy will be enough to power approximately 720 average homes. The mill's natural gas consumption is expected to be reduced by more than 55,000 gigajoules per year and greenhouse gas emissions are expected to be reduced by more than 2,750 metric tons annually. As a result of this project and other initiatives, pulp production is expected to increase to 420,000 metric tpy, returning the mill to levels achieved when it ran two production lines. The successful completion of this project is expected to be an important step for Hinton Pulp in improving its overall competitiveness and long-term outlook.
West Fraser is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp, and newsprint. The company has operations in western Canada and the southern U.S.
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Containerboard/Packaging
. This service involves a team of experts who solve packaging problems, develop new solutions, improve packaging features, and design packages, Korsnäs explains, adding that their expertise includes printing techniques and shelf impact as well as user friendliness. The team also submits packaging to physical testing and offers consulting services for assessments and recommendations.
One of the expert services, for example, is "lightweighting," which means material reduction. A lightweighting project aims to reduce the amount of material, usually by improving the design of the package and using a lower grammage. "Our experts know our material and how it performs, and they have the methods, advanced equipment, and competencies to offer a high-performance product that weighs less," Korsnäs says. The advantages of lightweighting are obvious. Less weight means lower cost. There is less material to pay for while the amount of waste at all stages (manufacturing, converting, packing, and post-consumer handling) is effectively reduced. Less weight means better resource utilization. Less raw material is required for manufacturing, less energy is used, smaller volumes are transported, and the environmental footprint is smaller, Korsnäs notes.
The company adds that it has "every intention of staying ahead in climate-smart packaging, adding that "we will continue to push towards sustainability in all aspects of our operations—responsible forestry, sourcing, production processes, energy management, and distribution and logistics systems.
Korsnäs has three production facilities in Sweden: Gävle, Frövi, and Rockhammar. It has a combined production capacity of 1.1 million metric tpy of cartonboard and paper, with integrated pulp production. The company develops, manufactures, and sells virgin fiber-based packaging materials. Korsnäs also produces bio fuel pellets at two plants in Latvia. The company exports approximately 90% of its products. It employs 1,800 people, and has annual sales of SEK 8,039 m (2009), and is a wholly-owned subsidiary of Investment AB Kinnevik.
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MeadWestvaco Corp., Richmond, Va., USA, this week said that it will grow its corrugated packaging business in the Brazilian market by expanding operations at Rigesa, the company's Brazilian subsidiary. MWV will invest approximately $480 million to develop its existing facility located in Santa Catarina State, including the installation of a new, state-of-the-art paperboard machine that will double capacity of its Três Barras mill. Construction of the new machine is expected to be complete in mid-2012. It will produce 300,000 metric tpy of kraft linerboard for use in the company's packaging converting operations throughout Brazil.
"The strategic decision to expand our Rigesa business signifies our strong commitment to continued growth and market leadership in Brazil," said John A. Luke Jr., chairman and CEO of MWV. "Our experience, knowledge-base, and existing infrastructure in Brazil, along with the country's emergence as an economic powerhouse, make further investment in our business there very logical and attractive. We are confident that it will be a tremendous source of value for our shareholders and continue to be a long-term competitive advantage for MWV."
The investment will be funded through a combination of internal and external sources. When the mill is fully operating, the company expects to employ some 800 people. MWV has operated Rigesa since 1953 and currently employs more than 2,500 people in Brazil. Rigesa operates two paper mills, four corrugated packaging plants, one consumer packaging plant, and owns 54,000 hectares of forests certified by Cerflor – Brazilian Program of Forestry Certification.
With 19,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards, and has been named to the Dow Jones Sustainability World Index for the seventh consecutive year.
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PT. Pelita Cengkareng Paper & Co., Indonesia, is relocating a containerboard machine to its Subang mill in Indonesia. Startup of the relocated machine is scheduled for the last quarter of 2011. The value of the order will not be disclosed. However, according to Metso, Finland, which is handling the relocation, the typical market value of this type of project ranges from EUR 5 to 10 million, depending on the scope of services.
A Tampella-manufactured (currently Metso technology) kraftliner machine will be reconditioned and modified to manufacture testliner and corrugating medium grades. Metso's delivery will include a broad scope of services including dismantling and packing supervision, engineering, installation supervision, and startup support of the machine.
Metso will also modernize the dryer section with a new hood and dryer fabric cleaners. A complete automation upgrade package with machine and process controls, quality measurements, and drive controls for the entire production line is also included in the delivery.
Established in 1974, PT. Pelita Cengkareng Paper produces kraftliner, corrugating medium, duplex board, chipboard, and wrapping paper. Its current production capacity is 190,000 metric tpy. Through expansion in a new site at Subang, the annual capacity will increase to 540,000 metric tons.
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Smurfit-Stone Container Corp., Chicago, Ill., USA, reports that the UNIK Local 34 union (UNIK) at the company's La Tuque, Que., Canada, mill rejected its contract offer tendered on November 10. The offer was rejected by approximately 53% of the voting union members. Smurfit-Stone has confirmed its position with UNIK leadership that its current offer remains unchanged and a lockout will remain in effect until an agreement is reached.
According to Smurfit-Stone, on November 8, UNIK initiated a work stoppage at the La Tuque mill without notice, despite a meeting that was planned to take place on November 10 to continue with talks. The company said it has been attempting to negotiate with UNIK since early 2010. An agreement similar to the offer made to UNIK had already been reached some months ago with the Communications, Energy and Paperworkers Union (CEP), which covers roughly 270 production and office employees at the mill. UNIK, an independent union not affiliated with CEP, covers approximately 140 paper machine workers at the La Tuque mill.
"We have negotiated in good faith all along and again presented a fair and competitive offer," said Pierre Pacarar, GM of the La Tuque mill. "It is our position that the offer was consistent with other contracts in the industry and we are disappointed with this result."
Throughout the lockout, Smurtit-Stone says, management and a small group of hourly employees will ensure that the mill's assets are maintained and the company continues to meet all of its environmental obligations.
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Nonwovens
A Texas Tech University, Lubbock Texas, USA, fabric researcher will receive an honorary fellowship from the world's largest textile and fiber association. Seshadri Ramkumar, manager of the Nonwovens and Advanced Materials Laboratory at The Institute of Environmental and Human Health (TIEHH), will be given the honorary fellowship January 28 by The Textile Association (India), with members topping 22,000. The award will be given during the 66th annual conference of the society in Bangalore, India, said P.R. Roy, director of Fibre2Fashion and president emeritus of The Textile Association. Since 1946, 57 people have been honored with the fellowship. The association was founded in 1939.
"Fellowship recognition is of significant importance to academics and scientists," Ramkumar said. "The Textile Association's honorary fellowship is conferred only to very few with lifetime contributions. Only very senior distinguished scientists who are directors, senior professors, and industry leaders have received this award, and I accept it with delight and humility."
Roy, also an honorary fellow of the association, added that "our association is pleased to honor Dr. Ramkumar with the highest research award for his research accomplishments in nonwovens and technical textiles and also his collaborative efforts with India in the textiles field,"
Ramkumar specializes in technical textiles, and is best known for creating Fibertect, a decontamination technology developed in 2005. With his team at TIEHH at Texas Tech, Ramkumar leveraged the absorbent capabilities of cotton to create the Fibertect wipe that can absorb and neutralize gases and liquids that might be used in chemical warfare. The process has received a patent and has been validated for use as a low-cost decontamination wipe for the U.S. military. Also, the wipe's qualities were re-engineered to create a better absorbent material to pick up the "chocolate mousse" oil slicks inundating Gulf Coast beaches following the Deepwater Horizon disaster.
"I offer hearty congratulations to Dr. Ramkumar for this accomplishment," said Provost Bob Smith. "This is outstanding news, and a very high-level honor and recognition for him, TIEHH, and Texas Tech. It also serves as recognition of the high-caliber research we do at Texas Tech that will usher us to Tier One status."
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Published Pricing
Caraustar Industries Inc., Atlanta, Ga., USA, will increase prices on all grades of uncoated recycled paperboard, effective with shipments on and after December 6. The increase will be an incremental $30 per ton above previously communicated increases.
Caraustar is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. The company 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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Caraustar Industries Inc., Atlanta, Ga., USA, also this week announced today that it will increase prices by $35 per ton on all of its coated recycled paperboard grades, including Britone Newsback, Pearlback, Freezetone, and Whitone. The increase is effective with shipments on and after December 20.
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Eka Chemicals, Sweden, the AkzoNobel Pulp and Paper Chemicals business, will increase prices across its entire European Paper and Bleaching Chemicals product range immediately, or as contracts permit. Depending on the product type, increases will range from 5% to 30 %, as raw material availability and costs dictate, the company notes.
"Dramatic increases during the past year in basic raw materials have impacted Eka Chemicals' cost structure. The impact to margins over the past year leads Eka to have to take more than just raw material cost into future pricing considerations," said Jay Hunsberger, European marketing director. "It is no longer a matter of properly managing our supply chains; raw material cost increases in 2010 have often been faster and higher than the speed at which we can implement a strategy to minimize the impact to our finished goods cost."
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KaMin LLC, MaCON, Ga., USA, this week announced a price increase for kaolin clay products it supplies to the global paper industry, effective January 1or as contracts allow. The company did not specify the amount of the increase. The company also said this week that its 2011 energy surcharge policy, effective January 1, will remain unchanged from the KaMin 2010 energy surcharge policy. The threshold of $6/MM BTU and incremental surcharges by product type will remain the same. This policy applies to all slurry, spray-dried hydrous, and calcined kaolin grades sold to the paper industry globally.
"Natural gas prices have been unusually low in 2010 and the Energy Information Administration anticipates that high storage levels and resilient domestic production will keep prices around $4/MM BTU throughout 2011," said Tom Anderskow, commercial VP.
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RockTenn, Norcross, Ga., USA, also will implement a $35 per ton price increase on all grades of uncoated recycled paperboard. The price hike becomes effective with shipments beginning December 15. RockTenn has annual net sales of $3 billion and employs some 10,000 people at locations in the U.S., Canada, Mexico, Chile, and Argentina.
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Thiele Kaolin Co., Sandersville, Ga., USA, this week announced that it will increase the price on kaolin products for all markets, effective January 1. Prices will increase by 5% where contracts allow.
"As chemical, power, transportation, and other manufacturing costs continue to escalate, it has become necessary for Thiele to increase prices," said Eric Tillirson, VP of sales and marketing for Thiele Kaolin Co. "Thiele continues to aggressively pursue cost reductions through focused internal programs," he added.
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TAPPI News
TAPPI has announced its course schedule for the first quarter of 2011. It will include three TAPPI courses and one North Carolina State University course. The first courses – Introduction to Pulp and Paper and Kraft Recovery – are being offered January 10-13.
Taught by seasoned industry experts, these courses provide skill development and enhancement to professionals in the pulp, paper and converting industry. The courses include topic overviews, specific problem-solving sessions and solutions-oriented curriculum. The 2011 first quarter courses, their dates and locations include:
Introduction to Pulp and Paper Technology, January 10-13, St. Petersburg, Florida -- This course is ideal for anyone new to the pulp and paper industry. It offers a comprehensive overview of the entire pulping and papermaking process.
Kraft Recovery, January 10-13, St. Petersburg, Florida – The Kraft Recovery module is a thorough review of key recovery operations in kraft pulp mills. It is designed to help attendees improve pulp production efficiency ,minimize operating costs and reduce environmental impact.
Best Practices on the Corrugator, February 15-18, Norcross, Georgia – Through TAPPI Best Practices on the Corrugator, a range of plant employees will learn how to achieve higher productivity, better product quality and waste reduction during one comprehensive course.
Hands-On Workshop for Pulp and Paper Basics, March 14-18, NC State, Raleigh, NC --This hands-on workshop will provide a broad overview of Pulping, Bleaching, Chemical Recovery, Recycling, Papermaking and Converting. The 5-day course will consist of presentations in the morning and hands-on laboratory and pilot-plant exercises in the afternoon.
More information is available on the TAPPI courses website about the specifics of these offerings, including registration costs and deadlines.
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The world's leading pulp and paper event, SPCI, takes place in Stockholm, Sweden, May 17-19, 2011. For the 2011 event, the organisers, Adforum and the Swedish Paper Engineers Association, are introducing a brand new concept – The Magic Future of Pulp & Paper. The essence of the concept is simple but important – making it easier for people to meet.
The heart of the event will be the three squares in the hall. The squares will hold all major conference activities and entertainment during the three-day event. This means that the SPCI 2011 conference is free for all participants of the SPCI event. Each square will have a separate program and the three programs run simultaneously during the event, offering a variety of presentations for visitors and exhibitors.
The SPCI event in 2008 attracted almost 14,000 visitors from 61 countries making it the most international event in the industry. The booking and allocation of stands are already in progress. For more information and contact details, visit www.spcievent.com
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The University of Maine Pulp and Paper Foundation in Orono, Maine, recently distributed more than $262,000 in scholarship funds to engineering and forestry students interested in pulp and paper industry-related careers.
The fall 2010 semester scholarship recipients were announced at a Sept. 16 banquet attended by more than 80 students and 15 people who employ UMaine students through co-op programs or internships.
"The Pulp and Paper Foundation is a key resource for the future engineers of our industry," noted Dale Wibberly, Sappi Fine Paper North America's human resource manager at the event. "We are very excited about the quality of engineering students who have obtained their education from UMaine."
"Our scholarship budget in 2010 is more than $750,000, allowing us to support 90 students with full tuition scholarships – most of our scholarships are for engineering students, but several are targeted for forestry majors," added Jack Healy, the foundation's executive director. "The job market for engineers in the paper industry looks very strong over the next 10-15 years, primarily due to current engineers in our industry reaching retirement age."
The Pulp and Paper Foundation was founded in 1950 and has supported more than 3,000 students.
For more information about the Pulp and Paper Foundation Scholarship program visit www.mainepulpaper.org.
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Join industry experts, scientists, health and safety specialists, legal and government policy makers, and leading researchers June 6-8, 2011 in Arlington, Va., USA for the latest in nanotechnology research and development at the 2011 TAPPI International Conference on Nanotechnology for Renewable Materials.
Formerly known as TAPPI's International Conference on Nanotechnology for the Forest Products Industry, the title of this annual conference has been changed to reflect the advances in nanotechnology in renewable materials and their widespread applications in many other industries. The technical focus of the conference has been expanded to include other nanomaterials along with cellulose to fully embrace all nano-enabled biomaterials.
This year's conference theme is Nanotechnology for a Sustainable Future. You will find presentations focusing on several key thematic areas such as:
• Nanocellulosics and Nanocomposites
• Applications of Renewable Nanomaterials
• Nanostructured materials by Self Assembly
• Nanotech Coatings and Novel Nano-Enabled Functionalities
• Governmental & Environmental Issues
Abstracts are currently being accepted for this one-of-a-kind event. View the call for papers. Reduced conference rate available for speakers.
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The Call for Papers for the 2011 Progress in Paper Physics Seminar is underway.
Since 1980 the Progress in Paper Physics Seminar has been organized biannually by the TAPPI Paper Physics Committee. The 2011 event, taking place September 5-8 at Graz University of Technology in Graz, Austria, will cover all areas of fiber and paper physics, i.e. characterization, behavior and performance of fibers, papermaking processes and the final product. Both theoretical and applied research papers are welcomed. A poster session will provide the opportunity to discuss selected contributions peer-to-peer.
Learn more about the event and the call for papers. The deadline to submit is January 31, 2011.
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Sessions on sustainability, the environment and biorefineries drew a large number of attendees at 2010 TAPPI PEERS Conference and the 9th Research Forum on Recycling, held October 17-21 in Norfolk, Va. More than 370 forest and paper industry professionals participated in the four-day conference that also included a special Boiler MACT Town Hall Meeting. Attendees represented more than 30 paper companies and 20 universities from around the world and the exhibit hall showcased the latest technologies available to the marketplace from 23 companies.
Attendance was high at the Boiler MACT Town Hall and Committee meetings in anticipation of the upcoming US EPA announcement regarding new emission limits. Timothy Hunt of the American Forest and Paper Association cited estimates that the proposed new limits could cost the paper industry $4.5 billion and jeopardize as many as 72,000 jobs. Discussions centered on how the industry should react to the new limits. Among Hunt's suggestions for key fixes were setting the limits based on overall performance of actual sources, not a mythical boiler, and basing standards on the best performing 12 percent of sources, not "best of the best."
Another important gathering was a "Stickies Summit" in conjunction with the 9th Research Forum on Recycling. Co-organized by Mahendra Doshi of the TAPPI Journal editorial board and Danny Haynes with Eka Chemicals, the summit brought together recycling experts from Japan, U.S., Canada and Europe to discuss the need for global standardization of definitions related to stickies.
A discussion on company sustainability efforts and how they impact business was a popular panel session, as were sessions on hemicellulose extraction and pulp mill repurposing for ethanol production, which was led by TAPPI Journal editorial board member Peter Hart.
The 2011 TAPPI PEERS Conference is slated for October 2-5 at the Oregon Convention Center in Portland, Ore., USA. Abstracts are now being accepted and a formal call for papers will be issued in early 2011.
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Staying in touch with business colleagues continues to evolve at dizzying speeds. To provide members of the TAPPI community with a way to communicate on the go, TAPPI has created a foundation of social media tools to help you.
You can keep in touch with TAPPI news and events electronically with the TAPPI LinkedIn page. It's open to all TAPPI members. All you need to do is sign in to your LinkedIn account and search for the TAPPI Member Group. Members have started a number of useful discussions on the page, and currently there are about 450 members in the group.. Why don't you join in? Visit www.LinkedIn.com and find out what all the buzz is about!
TAPPI has a Facebook group called "Peace, Love, and Paper." It's new so you can be among the first people to "like" the page or join the group and enter a post on the Peace, Love and Paper wall. Participants in this group are committed to revolutionizing the paper industry. Visit www.facebook.com. Search for Peace, Love, and Paper then click "join group". You'll then be part of the "in" crowd.
You can also get the latest TAPPI news via Twitter. Sign up to follow TAPPI's Twitter account at www.twitter.com/TAPPITWEETS.
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The TAPPI/PIMA 2011 Student Summit will take place January 15-17 in Kingsport, Tenn. It will draw students from around the country to focus on "New Directions" and promising developments in the pulp and paper industry.
Attending students can meet with experienced industry professionals, interview for jobs, participate in a fun engineering competition and get to know fellow students. The event will include a range of valuable experiences including:
- a mill tour of Domtar
- a presentation on Biofuels
- a Mill Manager Roundtable and
- focused sessions on a variety of important topics.
Learn more about the TAPPI/PIMA 2011 Student Summit.
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"All I ask is this: Do something. Try something. Speaking out, showing up, writing a letter, a check, a strongly worded e-mail. Pick a cause -- there are few unworthy ones. And nudge yourself past the brink of tacit support to action. Once a month, once a year, or just once." – Joss Whedon, writer and film director (b. 1964)
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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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