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Travels with Larry Archive
Thursday, January 27, 2011
members edition
Metso Paper
Weekly Spotlight
RockTenn, Norcross, Ga., USA, and Smurfit-Stone Container Corp., Chicago, Ill., earlier this week (Sunday, January 23) approved a definitive agreement under which Smurfit-Stone will become a wholly owned subsidiary of RockTenn
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Peter Wallace will receive the 2011 TAPPI Herman L. Joachim Distinguished Service Award, established in 1994
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The listing of job openings in the TAPPI Career Center has increased recently as the U.S. and global economy, particularly in the pulp, paper, and forest products sectors, has continued to improve
Learn More...
 
Market Roundup
Total U.S. printing and writing (P&W) paper shipments decreased 1% in December compared with December 2009
Learn More...
 
The U.S. paper industry consumed 31.3 million tons of recovered paper in 2010, a 7% increase over 2009 consumption levels
Learn More...
 
Some 87% of the U.S. population has access to curbside and/or drop-off paper and paperboard recycling programs, according to results of the AF&PA 2010 Community Recycling Survey released this week
Learn More...
 
Pulp & Paper
Asia Pulp & Paper Group (APP), Jakarta, Indonesia, has announced a series of social and environmental initiatives to help kick off the United Nations Year of the Forest and to support Indonesia's two-year moratorium on new forest conversions
Learn More...
 
Fuel and forestry conglomerate Empresas Copec SA, Santiago, Chile, reports that it will pursue a capital expenditure plan of between $900 million and $1.1 billion this year
Learn More...
 
Domtar, Montreal, Que., Canada, this week celebrated the startup of its newly installed 50 MW biofueled steam turbine generator at its Marlboro (Bennettsville) mill in South Carolina
Learn More...
 
AkzoNobel, Amsterdam, the Netherlands, reports that it has invested close to EUR 90 million in a new facility being built in Brazil
Learn More...
 
Eldorado Papel e Celulose Ltda., Eldorado Brazil, has ordered from Andritz, Graz, Austria, a complete fiberline and other major equipment for its new pulp mill in Três Lagoas, Brazil
Learn More...
 
Kimberly-Clark Corp., Dallas, Texas, USA, announced this week that it plans to restructure its pulping and tissue making businesses, which will involve exiting its integrated pulp manufacturing operations
Learn More...
 
Orient Paper, Hebei, China, a producer and distributor of diversified paper products, reported this week that it will replace two old steam boilers that were removed this past July with two new energy efficient units
Learn More...
 
UPM, Helsinki, Finland, reports that to improve wood procurement options and to support self-sufficiency in wood supply to its Fray Bentos pulp mill, its plantation company Forestal Oriental has acquired about 25,000 hectares of land in Uruguay from a private land owner
Learn More...
 
Containerboard/Packaging
Demand for green packaging in the U.S., comprised of recycled content, reusable, and degradable packaging, is projected to increase 3.9% yearly to $41.7 billion in 2014
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Packaging Corporation of America (PCA), Lake Forest, Ill., USA, recently announced that Charles J. (Jack) Carter has been named VP, Containerboard with responsibility for the company's four containerboard mills and support operations
Learn More...
 
Published Pricing
The price increase becomes effective February 1
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Kemira, Finland, will raise paper chemicals prices in all major markets, effective February 1 or as contracts allow
Learn More...
 
Energy
Porvoon Energia, Finland, has ordered a biomass boiler plant from Finland-based Metso for combined heat and power production (CHP) in the township of Tolkkinen, Finland
Learn More...
 
U.S. Agriculture Secretary Tom Vilsack this past week announced three biofuels and biomass energy projects that will receive a total of $405 million in guarantee loans as part of the USDA, Washington, D.C., USA, Biorefinery Assistance program
Learn More...
 
People
Hassan Loutfi, P.E., Process Engineer with Baisch Engineering in Kaukauna, Wis., USA, has been recognized by the Association of Professional Engineers and Geoscientists of New Brunswick, Canada, for his contribution to the organization and was awarded Lifetime Membership
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Manzer will have overall operational responsibility for the Jesup, Ga., and Fernandina Beach, Fla., mills as well as the company's Georgia-based lumber operations
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M-real Corp., Espoo, Finland, part of Metsäliitto Group, has appointed Sari Pajari SVP, Business Development and a member of the Corporate Management Team
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TAPPI News
TAPPI member Richard H. Guimond passed away in May 2010.
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PaperCon 2011 will highlight this important and profitable industry segment during PaperCon's one-day Tissue Forum on May 3 to give you a perspective on business and market trends through peer-reviewed papers on the latest technical innovations, and safety and reliability best practices for yankee dryers.
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The Gulf Coast Local Section of TAPPI invites you to attend its Annual Winter Meeting and Conference to be held at the RockTenn Demopolis, Ala., Training Center on February 17.
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TAPPI is pleased to announce the call for papers for the 2011 TAPPI PEERS conference (formerly the TAPPI EPE Conference).
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The TAPPI Building & Industrial Mat Committee will be having its annual Spring Meeting in Hilton Head, S.C., in May 2011.
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TAPPI and the Recycled Paperboard Technical Association (RPTA) announced today that RPTA will locate its annual Production-Technical (P-T) Seminar at TAPPI's PaperCon 2011 on May 2-3, 2011, in Covington, Ky., USA, near Cincinnati.
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Lake States TAPPI and North Central PIMA have jointly arranged a one-day conference "Maintenance - Maximize Uptime" on February 16 ...
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Join your colleages for the 13th TAPPI European PLACE Conference, 30 May to 1 June 2011 at the Festspiel- und Kongresshaus in Bregenz, Austria.
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"Never doubt that a small group of thoughtful committed people can change the world ..."
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Xerium Technologies, Inc.

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Weekly Spotlight
RockTenn, Norcross, Ga., USA, and Smurfit-Stone Container Corp., Chicago, Ill., earlier this week (Sunday, January 23) approved a definitive agreement under which Smurfit-Stone will become a wholly owned subsidiary of RockTenn. The aggregate consideration, consisting of 50% cash and 50% RockTenn stock, is valued at $35 per-share of Smurfit-Stone common stock, and represents a 27% premium to Smurfit-Stone's closing stock price on January 21. The aggregate equity value of the transaction, based on the closing price of RockTenn's common stock, is approximately $3.5 billion.

This strategic transaction, unanimously approved by the boards of directors of both companies, will create a $9 billion leader in the North American paperboard packaging market. Upon closing, RockTenn will maintain its headquarters in Norcross.

Smurfit-Stone has manufacturing mill capacity of 7.0 million tons, and when combined, RockTenn will have 9.4 million tons of total production capacity, including 7.5 million tons of mill production in the containerboard market.

RockTenn's Chairman and CEO, James A. Rubright, said that "RockTenn's acquisition of Smurfit-Stone is another major step in our transformation of RockTenn to be the most respected company in our business with a laser focus on exceeding our customers' expectations and creating long term shareholder value. The containerboard and corrugated packaging industry is a very good business and U.S. virgin containerboard is a highly strategic global asset. With this acquisition, RockTenn's fiber input ratio will be 55% virgin and 45% recycled. We believe this transaction provides the greatest possible career opportunities for our co-workers from both companies."

Smurfit-Stone's CEO Patrick J. Moore added that "the Smurfit-Stone management team and the board of directors are sharply focused on creating value for shareholders. This transaction immediately achieves this objective, creating a stronger combined company that is well positioned to deliver long-term value to shareholders and high-quality, innovative packaging solutions to its valued customers."

Combined, RockTenn and Smurfit-Stone will be the No. 2 producer of North American containerboard and the No. 2 producer of coated recycled board. It will have a management team with a strong record of shareholder value creation and excellent record of integrating acquisitions. The combined operations will have a balanced fiber input mix with 55% virgin fiber and 45% recycled fiber. The merger-acquisition expands RockTenn's geographic footprint to the U.S. Midwest and West Coast.

The transaction is expected to close in the second calendar quarter,and is subject to customary closing conditions, regulatory approvals, and approval by both RockTenn and Smurfit-Stone stockholders.

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Peter Wallace will receive the 2011 TAPPI Herman L. Joachim Distinguished Service Award, established in 1994. Recognizing an individual for voluntary leadership and service that has significantly and demonstrably contributed to the advancement of TAPPI, the award will be presented to Wallace, business director of Industrial Specialties with ARCLIN, at the Tuesday evening, May 3, awards dinner during the 2011 PaperCon Conference  at the Northern Kentucky Convention Center in Covington, Ky., USA.. This award carries a generous cash honorarium.

"Pete's leadership and dedication, particularly in the TAPPI Nonwoven Division, has been crucial to the success of the division," said Larry N. Montague, president and CEO of TAPPI. "He has been instrumental in numerous committees and conferences, and continues to contribute to the division and to TAPPI."

A graduate of the New York State College of Forestry & Environmental Science at Syracuse University with a B.S. degree, Wallace worked in the wood products industry before moving into resins. He held positions at Reichold Chemical, BTL Chemical, and Borden Chemical that later became Hexion Specialty Chemical. He currently is with ARCLIN, where he serves as Business Director of Industrial Specialties.

Wallace has been a member of TAPPI since 1980, working to form the Building and Industrial Mat Committee in the TAPPI Nonwovens Division. He started the committee's annual meeting, the only committee of the Nonwovens Division to have an independent annual meeting. He has served in all committee offices, including chair of both the Building Industrial Mat and the Binders and Additives committees.

Wallace has twice received the TAPPI Nonwovens Leadership Award for his work in developing and growing the Building and Industrial Committee in 1996 and his work as Chairman of the Nonwoven Division in 2006. He brought together TAPPI and INDA to combine their respective annual meetings, which resulted in the new joint International Nonwovens Technical Conference. He also became the leader in forming the TAPPI Nonwovens Insulation Committee in 2003.

Through his leadership, Wallace has continued to persuade people to actively serve on newly created committees, resulting in gaining new members for TAPPI.

In 1994 Herman L. Joachim made a gift to TAPPI that was used to establish the Herman L. Joachim Distinguished Service Award Fund. Joachim was a TAPPI member for more than 70 years. He joined TAPPI while working as a chemist at the Bogalusa Paper Co. in Louisiana. He later managed paper mills throughout the U.S. and was responsible for expansions and modernizations in the industry. He also enjoyed a successful career as an engineering consultant.

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The listing of job openings in the TAPPI Career Center has increased recently as the U.S. and global economy, particularly in the pulp, paper, and forest products sectors, has continued to improve. Current job openings in the TAPPIi Career Center include:

Dart Container Corporation Senior Materials Engineer #270
GAF Materials Corporation Controls Engineer, Dallas or Baltimore
Georgia Pacific Process Control Engineer
Georgia Pacific Sr Process Control Engineer
Georgia Pacific Engineer - Converting
Georgia Pacific Director Division Engineering
Georgia Pacific Utilities Optimizer
Konecranes Key Account Manager - Pulp and Paper Industry
Plasmine Technology, Inc. Technical Service Representative
Sappi Fine Paper, North America - R&D Base Paper Engineer/Scientist
Southern Company Power Generation Engineer
Strapack,Inc. Industry Sales Manager
Unifrax I LLC Senior Development Engineer
University of Minnesota Assistant Professor-tenure track

More information about these jobs is available online.

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Market Roundup
Total U.S. printing and writing (P&W) paper shipments decreased 1% in December compared with December 2009, according to the American Forest & Paper Association's (AF&PA, Washington, D.C., USA) December 2010 Printing-Writing Paper Report released this week.

Two of the four major P&W paper grades posted increases compared with last December. U.S. purchases (shipments + imports – exports) of P&W papers also decreased, down 1% in December. Total P&W paper inventory levels increased 2% compared with November 2010.

Some additional key findings include:

  • Uncoated free sheet (UFS) inventory increased versus last month for the third consecutive month
  • Coated free sheet (CFS) shipments increase year-over-year every month in 2010
  • Coated mechanical (CM) year-to-date shipments lead 2009 for the twelfth consecutive month
  • Uncoated mechanical (UM) shipments increased year-over-year for the eleventh time in 2010.
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The U.S. paper industry consumed 31.3 million tons of recovered paper in 2010, a 7% increase over 2009 consumption levels, according to the December 2010 Recovered Paper Monthly Report published this week by the American Forest & Paper Association (AF&PA), Washington, D.C., USA. However, consumption in December was approximately flat when compared with the previous month.

The U.S. exported 1% less recovered paper in November than in October. Year-to-date exports of recovered paper are down 2% compared with the same months last year.

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Some 87% of the U.S. population has access to curbside and/or drop-off paper and paperboard recycling programs, according to results of the AF&PA 2010 Community Recycling Survey released this week.

Paper recycling access was an important factor in helping the industry exceed its 60% recovery goal three years ahead of schedule, AF&PA notes. In 2009, a record-high 63.4% of paper used in the U.S. was recovered for recycling.

The Community Survey is a national study that measures and tracks the growth of access to community-level paper and paperboard recycling in the U.S. The 2010 study is the latest in a series of such studies funded by AF&PA and conducted by R. W. Beck since 1994.

Key findings from the survey include:

  • 87% of the U.S. population (273 million people) have access to curbside and/or drop-off paper recycling programs, including:
    • 63% of the U.S. population (193 million people) have access to curbside recycling programs
    • 68% of the populations (213 million) have access to drop-off recycling programs
  • Increased access for some grades collected in existing paper/paperboard recycling programs
  • Continued growth in curbside recycling programs employing single-stream collection systems.

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Naylor, LLC
Pulp & Paper
Asia Pulp & Paper Group (APP), Jakarta, Indonesia, has announced a series of social and environmental initiatives to help kick off the United Nations Year of the Forest and to support Indonesia's two-year moratorium on new forest conversions.

Indonesia's commitment on Reducing Deforestation and Forest Degradation (REDD) will see a suspension on new forest and peat licenses granted. APP says it believes this is an important opportunity for the Indonesian forestry industry and affected stakeholders to have the chance to improve spatial planning and sustainable forestry best practices nationwide. During this timeframe, APP will move ahead with a planned series of activities and programs aimed at assessing and enhancing its sustainable practices, including:

  • An independent study on the impact of plantation development and greenhouse gas emissions on all soil types
  • Enhancing key conservation areas, including creation of valuable wildlife corridors
  • Research and pilot programs involving the protection of key Indonesian endangered species, including the Sumatran Tiger, Javan Rhino, and Orangutan
  • A pilot program to develop a bio-village in the Giam Siak Kecil Biosphere reserve in Riau Province;
  • Developing a verifiable carbon conservation model at Kqampar Carbon Reserve, the world's first pulpwood plantation REDD+ project
  • Development of eco-friendly housing with Habitat for Humanity Indonesia for a poverty stricken community in Central Java
  • Expansion of legality, chain of custody, and sustainable forest certification management programs to meet 2020 vision
  • Expansion of CDM programs

A commitment by APP and its pulpwood suppliers to plant 1 million trees a day as part of its afforestation program.

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Fuel and forestry conglomerate Empresas Copec SA, Santiago, Chile, reports that it will pursue a capital expenditure plan of between $900 million and $1.1 billion this year. During the past 20 years, Copec has made capital expenditures of some $11 billion, with around $800 million invested in 2010.

Copec's Celulosa Arauco y Constitucion SA forestry and pulp subsidiary is one of the world's top pulp producers. A massive 8.8-magnitude quake that rocked Chile's central-southern regions last February damaged and temporarily shutdown some of Copec's pulp plants.

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Domtar, Montreal, Que., Canada, this week celebrated the startup of its newly installed 50 MW biofueled steam turbine generator at its Marlboro (Bennettsville) mill in South Carolina. Domtar invested approximately $40 million in 2010 to complete this project. Now fully operational, the new turbine has made the mill more energy efficient.

Domtar has entered into a 15-year agreement with Santee Cooper, South Carolina's state-owned electric company, for the purchase of up to 50 MW of green power. The renewable energy generated by the turbine would be enough to power roughly 31,000 South Carolina homes.

Domtar notes that it has been long committed to sustainable business practices and has implemented energy efficiency programs at all of its facilities to help reduce the impact of its operations on the environment. Since 2002, the company's increased reliance on lower-emitting biomass as a fuel source has resulted in a 20% reduction in greenhouse gas emissions intensity.

Domtar's self-generation of electricity is at approximately 67%, representing a 26% increase since 2002. Its use of renewable energy stands at approximately 74% of total energy use, which represents an 18% increase since 2002.

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AkzoNobel, Amsterdam, the Netherlands, reports that it has invested close to EUR 90 million in a new facility being built in Brazil. The plant, operated by the company's Pulp and Paper Chemicals business, Eka Chemicals, will supply the world's largest pulp mill. The agreement – with Eldorado Celulose e Papel – emphasizes the importance of high growth markets to AkzoNobel and will help drive the medium-term strategy of doubling revenue in Brazil to EUR 1.5 billion.

The investment – AkzoNobel's biggest ever in Latin America – is centered on further expanding Eka Chemicals' sustainability focused Chemical Island concept. It will involve supplying, storing, and handling all chemicals for the 1.5 million metric tpy greenfield mill being constructed in the northern part of Três Lagoas City. The mill is expected to come on stream in September 2012.

"This 15-year agreement confirms our intention to accelerate growth and expand our activities in the world's high growth regions," said Rob Frohn, the AkzoNobel board member responsible for Specialty Chemicals. "We are about to make one of the biggest investments in our history, which emphasizes both the importance of Latin America to our growth ambitions and our commitment to the pulp and paper industry."

Pulp and Paper Chemicals General Manager Jan Svärd added that "future demand for pulp and paper chemicals in Latin America is projected to increase substantially over the next 15 years. This agreement therefore represents an exciting opportunity for us to expand our operations in the region."

Svärd further noted that Eka Chemicals will be building a world scale sodium chlorate production unit to supply the projected demands of the Eldorado mill, which has been designed to accommodate three pulp lines. The new Eka Chemicals facility will also supply other key customers in Brazil. Work on the new pulp mill site started in June last year.

Commenting on the agreement, Eldorado President Rogerio D'Alcantara Peres said that "building the world's largest pulp mill requires working with reliable partners who can provide the best technology. AkzoNobel's Chemical Island concept, together with the company's world class expertise and strong commitment to sustainability, meant that they were a natural choice for this major project."

The new facility will expand Eka Chemicals' pulp and paper activities in Brazil, where the business already operates its Chemical Island concept at several mills, as well as running production units in Jacareí, Eunapolis, Três Lagoas, Rio de Janeiro, and Jundiaí.

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Eldorado Papel e Celulose Ltda., Eldorado Brazil, has ordered from Andritz, Graz, Austria, a complete fiberline and other major equipment for its new pulp mill in Três Lagoas, Brazil. Startup is scheduled for the third quarter of 2012. The value of the order was not disclosed. It involves:
  • Woodyard--three complete wood receiving and chipping lines, conveyors, stacker/reclaimer, four chip screens, and biomass handling.
  • Fiberline--single vessel continuous digester with Lo-Solids cooking, washing, screening, and low-impact bleaching based on the DD washer technology by Andritz.
  • Pulp drying plant—including automated baling lines. The two dewatering machines (working width 6.67 m each) will be based on twin wire former technology that has already been proven in several high-capacity pulp mill projects around the world.
  • White liquor plant (recausticizing and lime kiln)—designed to produce 15,700 m3/day of white liquor for the cooking plant. The plant will feature green liquor filtration based on X-Filter technology, the CD-Filter for white liquor filtration, and LMD-Filter for lime mud washing. The lime kiln will be the largest to be installed in South America.

With an annual production of approximately 1.5 million metric tons of bleached eucalyptus market pulp, Eldorado will be the largest pulp mill in the world.

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Kimberly-Clark Corp., Dallas, Texas, USA, announced this week that it plans to restructure its pulping and tissue making businesses, which will involve exiting its integrated pulp manufacturing operations. As part of this effort, K-C will streamline, sale, or close five to six manufacturing facilities around the world. Basically, the company said that it plans to get out of the business of making the pulp used in its paper products, as it copes with rising costs for oil, fiber, and other commodities. The restructuring is expected to be completed by the end of 2012.

K-C said that exiting pulp manufacturing should improve its profitability and return on invested capital of its consumer tissue and K-C Professional units. Facilities to be streamlined, sold, or closed include the company's pulp and tissue plant in Everett, Wash., and its two Australian facilities that make pulp and tissue. It will also move some production to lower-cost locations. K-C did not indicate how many jobs might be lost in the overhaul.

The total cost of the restructuring is expected to be $280 to $420 million after tax ($400 to $600 million pre-tax). Cash costs are projected to be 25% to 50% of the total charges. As a result of the restructuring, the company expects that by 2013 annual net sales will decrease by $250 to $300 million and operating profit will increase by at least $75 million. Most of the restructuring will impact the consumer tissue business segment.

At this point in time, K-C expects that $195 to $265 million of the after tax charges ($280 to $380 million pre-tax) will occur in 2011, while benefits from the restructuring in 2011 are expected to be immaterial. In 2011 and 2012 the company will report adjusted results, which will exclude the costs of the restructuring. The company will report on the progress of the restructuring on a quarterly basis or when material developments occur.

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Orient Paper, Hebei, China, a producer and distributor of diversified paper products, reported this week that it will replace two old steam boilers that were removed this past July with two new energy efficient units. Replacement of the old boilers was required by the Baoding City Environmental Protection Agency, in connection with the government's approval of the company's pending new 360,000 metric tpy corrugating medium paper production line.

Zhenyong Liu, chairman and CEO of Orient Paper, said that "with the installation of the new boilers, we have now resumed full production on our corrugating medium paper and offset printing paper lines. We continue to see growing market demand for paper products in China and tightening regional supply conditions resulting from government-mandated closures of regional paper mills."

With installation of the two new boilers completed, the company also announced that the same independent third-party appraisal firm has been retained to complete the production capacity checks and the formal, independent valuation appraisal on the operating production lines previously affected by the removal of the old boilers, including one production line of corrugating medium paper and two production lines of offset printing paper.

Orient Paper, through its wholly owned subsidiary, Shengde Holdings Inc., controls and operates Baoding Shengde Paper Co., and Hebei Baoding Orient Paper (HBOP) Milling Co. Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium, offset papers, and other paper and packaging-related products in China. The company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009, and located in Baoding, produces digital photo paper.

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UPM, Helsinki, Finland, reports that to improve wood procurement options and to support self-sufficiency in wood supply to its Fray Bentos pulp mill, its plantation company Forestal Oriental has acquired about 25,000 hectares of land in Uruguay from a private land owner. The purchase includes several different plots of land.

About half of the land, UPM says. is either already planted or suitable for eucalyptus plantations. The total price for the land acquisition including the standing wood reserves is about EUR 65 million.

Forestal Oriental is UPM's plantation company in Uruguay. It has been operating since 1990. The head offices are located in the cities of Paysandú and Montevideo. Forestal Oriental is focused on the sustainable production of eucalyptus in Uruguay, UPM explains. The company owns about 225,000 hectares of land, out of which about 135,000 ha is used for plantations. The majority of the wood harvested is supplied to UPM Fray Bentos pulp mill.

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Containerboard/Packaging
Demand for green packaging in the U.S., comprised of recycled content, reusable, and degradable packaging, is projected to increase 3.9% yearly to $41.7 billion in 2014, consuming 58 billion lb of material, according to a new report titled Green Packaging, released this past week by the Fredonia Group, Cleveland, Ohio, USA. Growth will outpace overall packaging demand but will remain relatively moderate due to the maturity of many products and the large existing presence of recycled content packaging in paperboard and metal packaging. The fastest gains, the report notes, are anticipated for degradable packaging and plastic recycled content packaging.

Degradable packaging is forecast to expand 13.6 % annually to $685 million in 2014, driven by price competitiveness with conventional resins, capacity expansions, and rising demand for environmentally friendly manufactured goods. Advances will also be based on enhanced performance properties resulting from blending and other modifications, initiatives by brand owners to improve the environmental footprint of their packaging, and legislative bans on polystyrene foam foodservice disposables in some parts of the country. Preventing faster advances will be the maturity of some product types (e.g., ring carriers, loose-fill), the lack of consumer composting networks in most areas of the U.S., and competition from emerging green packaging materials such as non-biodegradable bioplastics.

Recycled content packaging constitutes the vast majority of green packaging and demand is forecast to increase 3.6% annually to $37.3 billion in 2014. Gains will be supported by increased collection activity and processing capacity, coupled with greater use of recycled content packaging by firms seeking to demonstrate environmental responsibility and differentiate their products. Robust growth is anticipated for plastic recycled content packaging based on more concerted collection efforts and expanded processing capacity, especially for food-contact approved resin grades.

Reusable packaging demand is expected to post above-average growth through 2014, improving from the 2004-2009 pace based on a rebound in manufacturing activity from a weak base in 2009. Demand for reusable plastic containers and intermediate bulk containers will benefit from an upswing in manufacturing activity and inroads into lower capacity packaging types such as drums, pails, and shipping sacks.

More information about this report is available online.

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Packaging Corporation of America (PCA), Lake Forest, Ill., USA, recently announced that Charles J. (Jack) Carter has been named VP, Containerboard with responsibility for the company's four containerboard mills and support operations. Carter will report to Mark W. Kowlzan, CEO of the company. Kowlzan was previously responsible for mill operations prior to being named CEO in June 2010.

Carter joined PCA in March 2010 as director, Papermaking Technology. He has almost 30 years of forest products industry experience working in key management positions. Prior to joining PCA, he was VP and GM of Abitibi Bowater's Calhoun, Tenn., mill.

PCA is the fifth largest producer of containerboard and corrugated packaging products in the U.S. with sales of $2.15 billion in 2009. It operates four paper mills and 67 corrugated product plants in 26 states across the country.

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Published Pricing
DuPont Titanium Technologies, Wilmington, Del., USA, has announced a price increase of Yen 40 per kg for all DuPont Ti-Pure® titanium dioxide grades sold in Japan. The price increase becomes effective February 1.

In the U.S., DuPont Titanium Technologies operates plants at DeLisle, Miss., New Johnsonville, Tenn., and Edge Moor, Del. The company also operates plants at Altamira, Mexico, and Kuan Yin, Taiwan, all of which use the chloride manufacturing process. The company also operates a mine in Starke, Fla., USA.

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Kemira, Finland, will raise paper chemicals prices in all major markets, effective February 1 or as contracts allow. The increases will range from 5% to 15% depending on specific product. The company attributes the increases to escalating energy, raw material, and freight costs.

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Energy
Porvoon Energia, Finland, has ordered a biomass boiler plant from Finland-based Metso for combined heat and power production (CHP) in the township of Tolkkinen, Finland. The boiler plant will be delivered by the Metso-Wärtsilä joint venture MW Power. The plant, to cost below EUR 15 million, is scheduled to startup during the first quarter of 2013.

The biomass boiler plant will utilize bubbling fluidized bed (BFB) technology and will use a combination of wood chips, bark, and sawdust as the main fuel source. The plant will produce 38 MW of district heat to the Porvoo area and 12 MW of electricity for the national grid.

The parent company of Porvoon Energia, Porvoon Energia Oy, is a company owned by the city of Porvoo. The company strives to use the broadest possible range of biomass based fuels for its electricity and heat generation. Already, the company produces about 70% of its electricity in green power. The new power plant will be built on the same site with the current power plant from the year 1979.

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U.S. Agriculture Secretary Tom Vilsack this past week announced three biofuels and biomass energy projects that will receive a total of $405 million in guarantee loans as part of the USDA, Washington, D.C., USA, Biorefinery Assistance program.

In rural western Alabama, Coskata Inc. will get a $250 million loan guarantee to construct and operate a cellulosic ethanol biorefinery facility. This 55-million gpy renewable biofuel project will use woody biomass to produce ethanol. In Pontotoc, Miss., Enerkem Corp. has been selected to receive an $80 million loan guarantee to build and operate a biorefinery that will be capable of producing 10 million gpy of advanced biofuel (cellulosic ethanol) per year by refining some 100,000 metric tons of dried and post-sorted municipal solid waste through a thermochemical cellulosic process.

In Vero Beach, Fla., the INEOS New Planet BioEnergy LLC has been selected to receive a $75 million loan guarantee to construct and operate a biorefinery capable of producing 8 million gpy of cellulosic ethanol and gross electricity production capacity of 6 MW. The feedstock for the process will include primarily vegetative waste (citrus and agricultural wastes), yard wastes, wood waste, and municipal solid waste.

As part of USDA's commitment to reduce America's dependence on imported oil by developing alternative, renewable energy sources, USDA says it will soon issue new rules for the Biorefinery Assistance Program, Section 9003; Repowering Assistance Program, Section 9004; and Bioenergy Program for Advanced Biofuels Payments To Advanced Biofuel Producers, Section 9005. The new rules will provide additional opportunities for development of advanced biofuels projects. Vilsack also noted that on the same date the rule for Section 9005 is published, a Notice of Funding Availability (NOFA) for FY 2010 funds will also be published.

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Hassan Loutfi, P.E., Process Engineer with Baisch Engineering in Kaukauna, Wis., USA, has been recognized by the Association of Professional Engineers and Geoscientists of New Brunswick, Canada, for his contribution to the organization and was awarded Lifetime Membership.

Loutfi has 42 years of process design engineering and project management experience. He has been a TAPPI member for 37 years.

Christina FitzGerald, Baisch business development and marketing manager, noted that Loutfi's "dedication and passion to engineering is highly commendable ... he is immersed in many facets of the field, from publishing articles to giving his time to engineering associations, and providing top-notch client service. Hassan is highly deserving of this Lifetime Membership Award."

Baisch Engineering has 80 employees and was founded in 1958.

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William Manzer has joined Rayonier, Jacksonville, Fla., USA, as VP, manufacturing operations. Manzer will have overall operational responsibility for the Jesup, Ga., and Fernandina Beach, Fla., mills as well as the company's Georgia-based lumber operations.

"Bill's considerable manufacturing experience will bring immediate benefits to Rayonier," said Jack Kriesel, senior VP, Performance Fibers. "His expertise in operations, maintenance, and reliability will strengthen our ability to meet the growing demand for our specialty cellulose products."

Manzer brings more than 30 years of process manufacturing experience to Rayonier. Most recently, he was with Fraser Papers in Maine, where he served as SVP, business strategy and projects. He holds a bachelor's degree in chemical engineering from the University of Maine, Orono.

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M-real Corp., Espoo, Finland, part of Metsäliitto Group, has appointed Sari Pajari SVP, Business Development and a member of the Corporate Management Team. Her main responsibilities are business development and total quality management. Pajari starts her new position on April 1 and reports to CEO Mikko Helander.

Pajari is moving to M-real from the position of SVP, CIO of Metsäliitto Group, which she has held since 2009. Prior to joining Metsäliitto Group in 2007, Pajari worked as a managing strategy consultant in Pöyry, PwC Consulting and IBM.

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TAPPI News
TAPPI member Richard H. Guimond passed away in May 2010. He had been a TAPPI member since 1964.

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PaperCon 2011 will highlight this important and profitable industry segment during PaperCon's one-day Tissue Forum on May 3 to give you a perspective on business and market trends through peer-reviewed papers on the latest technical innovations, and safety and reliability best practices for yankee dryers.

Highlights include...

- Tissue Market Overview
- State of the Tissue Industry-2011 and Onwards with speakers from Poyry Management Consulting USA, Inc., Procter & Gamble, and Kimberly-Clark
- Modeling and Simulation of the Crepeing Process
- Paper Towel Absorptive Properties
- New Polymers for Wet Strength-An Academic Perspective
- Yankee Dryer Safety and Reliability-Panel Discussion
- TAPPI Subcommittees address steam and condensate systems, air systems, cast iron dryer maintenance and inspections, and reducing chatter.
- Tissue Forming Systems-Panel Discussion
- Consistency Measurement and Control in a Tissue Mill–The Often Neglected Parameter
- Modeling of Crescent Former Dewatering

Learn more about PaperCon, May 1-4, 2011 in Covington, Ky. (Greater Cincinnati area) and the one-day Tissue Forum.

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The Gulf Coast Local Section of TAPPI invites you to attend its Annual Winter Meeting and Conference to be held at the RockTenn Demopolis, Ala., Training Center on February 17. The meeting will feature an informative conference entitled "Six Sigma Cost-Saving Projects Quality Management Systems."

Learn more about this event.

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TAPPI is pleased to announce the call for papers for the 2011 TAPPI PEERS conference (formerly the TAPPI EPE Conference). The TAPPI PEERS Conference is the perfect forum for paper industry professionals both to acquire practical operating insights and to network with industry peers in technical sessions, tutorials, round tables, new technology sessions and workshops. For a full list of topics please visit the full Call For Papers.

Authors interested in presenting a paper should upload their extended abstract to TAPPI's Speaker Management System by March 9, 2011. Abstracts should be 1-2 paragraphs in length. Authors will be notified of acceptance by April 15, 2011 and must provide a full text manuscript by July 15, 2011.

For more information please contact: Craig McKinney, TAPPI program manager, cmckinney@tappi.org or direct: 770-209-7294.

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The TAPPI Building & Industrial Mat Committee will be having its annual Spring Meeting in Hilton Head, S.C., in May 2011 (dates TBD). The B&IM committee is the only TAPPI NET (Nonwoven Engineers & Technologists) Committee that has a spring meeting. Attendees will stay abreast of market trends, product/process developments and regulatory issues that are or will be impacting our industries.

The committee is currently looking for speakers to participate in their technical program. As an incentive, we have a "Best Paper" award process where the audience votes for the best three papers given. Awards of $150, $100 and $50 are given for 1st, 2nd and 3rd place.

2011 Spring Meeting Information & Call For Papers

Those wishing to learn more about participating in the development of this event can contact Craig McKinney, program manager by phone at 770-209-7294 or email cmckinney@tappi.org.

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TAPPI and the Recycled Paperboard Technical Association (RPTA) announced today that RPTA will locate its annual Production-Technical (P-T) Seminar at TAPPI's PaperCon 2011 on May 2-3, 2011, in Covington, Ky., USA, near Cincinnati.

"Co-locating our event with PaperCon will allow RPTA members more educational and networking opportunities," said Deborah White, executive director of RPTA. "We are very excited to hold our conference at TAPPI's world-class event."

RPTA members will have access to the PaperCon Opening Session and Keynote, Executive Panel, Trade Fair, New Technology Showcase, Poster Sessions and hospitality receptions, in addition to the popular P-T Seminar sessions organized by RPTA expressly for the recycled board industry. Likewise, PaperCon attendees will be permitted to join the P-T sessions.

"We've been fans of RPTA for a long time and are excited to have our RPTA friends join us at PaperCon," said Larry N. Montague, president and CEO of TAPPI. "Recycled paperboard is an important market segment and the information shared by co-locating our two meetings will only benefit the industry."

PaperCon is North America's largest pulp and paper conference, bringing together industry leaders, technical experts, and manufacturing professionals from around the world. In 2011, the theme is "Rethink Paper: Lean and Green," highlighting new ways to improve efficiency, use less water, fiber and air, and achieve operational excellence. The unique program of peer-reviewed papers and invited speakers will attract CEOs, mill managers, superintendents, scientists and engineers from around the world.

PaperCon brings together members with decades of experience in leading, producing and advancing technology for the pulp and paper industry as well as a strong history of more than 90 years in organizing key industry educational programs, conferences and exhibits. PaperCon combines TAPPI's expertise in papermaking, coating, and leadership/management topics with information from producers, government and academic entities, technology suppliers, consumers and associations in multiple industries looking for more cost effective and profitable ways of doing business. New for 2011, special forums are planned on tissue making, sustainability and maintenance.

For program details visit www.papercon.org.

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Lake States TAPPI and North Central PIMA have jointly arranged a one-day conference "Maintenance - Maximize Uptime" on February 16 at the Westwood Conference Center in Wausau, Wis. The program focuses on improving the uptime/availability/time efficiency of paper production lines and includes papers by Verso Paper, Packaging Corporation of America, and many others.

For your information, an overview of the conference program as well as directions to the event, visit the Lake States TAPPI website or contact Clark Schabo at 920-734-5073.

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Join your colleages for the 13th Annual European PLACE Conference30 May to 1 June 2011 at the Festspiel- und Kongresshaus in Bregenz, Austria.

The technical program for this biennial conference will have a special emphasis on the latest trends and technologies relating to extrusion, coating, and lamination of web-based materials.

This is your opportunity to hear presentations focusing on:

• Packaging & Society
• Polymers and Paper
• Solid Conveying
• Laminator Hardware
• Sustainability
• Adhesion Issues
• Resin Tool Box
• Interactive Packaging
• Curtain Coating
• Ultrasonic Sealing
• Adhesives
• Inspection
• Regulatory
• Extrusion Coating Process
• Innovation Counter
• Packaging Performance

In addition to these topics, the program will also include a Poster Session and Table Top Walk.

Register online now or download the faxable registration form

Sponsorship opportunities are available.

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"Never doubt that a small group of thoughtful committed people can change the world: indeed it's the only thing that ever has!" – Margaret Meade

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

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