Special Report by Dr. A.F. Turbak, president of Falcon Consultants Inc. (*)

"Nano" is today's scientific buzzword and TAPPI, as the world's leading cellulose technical organization, now has established a Nanocellulose Division. So, what is nanocellulose, how is it made, what can it do, and why wasn't it used before?

Since the Chinese discovered how to make paper in 150 B.C., cellulose scientists have realized that cellulose in trees and plants is comprised of millimeter-size fibers made up of consecutively smaller macrofibers and microfibers that contain microfibrils of nanometer (10^-7- 10^-9 meter) dimensions and form the basic building blocks of cellulose from all sources. Researchers were convinced that separated nanosize microfibrils would have immense surface areas and strong bonding, resulting in new products with vastly improved strength and performance characteristics. For example, imagine using a lightly beaten pulp to make a strong paper simply by adding small amounts of nanocellulose fibrils with their huge fiber bonding capability.

Unfortunately, no one had ever made any nanocellulose from trees, none was for sale, and there were no literature references available describing how to make it. So for more than 2,000 years, nanocellulose was just a concept for scientific theoretical discussion—a sort of "holy grail" for cellulose chemists. In fact, no one had any idea of what nanocellulose from pulp should look like even if they found it.

In 1977 a research manager at the ITT Rayonier Eastern Research Division (ERD) Lab in Whippany, N.J., USA, who had used a Gaulin-type Milk Homogenizer to make edible breakfast sausage casings from cowhides, decided to run a 3% slurry of chopped pulp fibers through a high-pressure Manton Gaulin Milk Homogenizer. As the slurry reached 80°C at 8,000 psi, the fibers started to undergo a total phase change and turned into a translucent, firm "gel" that they called microfibrillated cellulose (MFC). Evidently, at the high temperature the high forces (pressure/cavitation/shear/impact) of the homogenizer acting in tandem or sequentially had broken down the cell walls of the microfibers and liberated the desired nanofibrils. More detailed info is available on Wikipedia (Nanocellulose/Cellulose/Biosynthesis).

Definitive studies subsequently established that this stiff gel Rayonier was calling microfibrillated cellulose was, indeed, the long sort-after nanocellulose, and it had been isolated by a simple method with little (10% - 15%) DP (degree of polymerization) loss. The Rayonier research efforts were presented in two papers at the Ninth International Cellulose Conference at Syracuse University (1981). In 1982 – 1983, world economics forced ITT to shutdown both Rayonier labs and curtail further efforts in this area, but by then 11 patents had issued covering the preparation and uses of MFC.

While Rayonier gave its pulp customers free license to all of these patents, there can be little doubt that the Rayonier MFC discovery was the birth of a totally new branch of cellulose technology, i.e. nanotechnology. For the next 30 years, all nanotechnology starting gels and developments that involved using the MFC high-pressure homogenizer procedure at some stage benefited from this discovery. Acid hydrolysis of nanocellulose produces nanocrystalline cellulose (NCC) rods that are capable of making products with unique properties and are currently under close scrutiny.

Many companies became active in the field and the three patents and two papers published by the Rayonier group in 1983 grew to 825 by 2007 and is much larger today. Various organizations used oxidized, derivatized, hydrolyzed, pre-swollen, enzyme-treated, and otherwise modified pulps as feed stocks with specially designed 30,000 – 45,000 psi homogenizers to lower energy requirements and vary nanoparticle-size distributions, which has simultaneously morphed MFC into NFC. These efforts have reportedly resulted in commercial MFC based scale-ups by Innventia (Sweden), Daicel (Japan),UPM Kymmene and VTT (Finland), Borregaard (Norway), and Rettenmaier (Germany), and should be applauded.

Nanocellulose gel should have surface areas much greater than those currently reported, and this needs to be resolved since it relates directly to the thickening, absorption, and flow properties of many materials or composites. Nanocellulose gels, and modifications thereof, are currently being developed or commercially used for:

• Making 10% lighter auto components,-- improving gas mileage 10%
• Making low calorie bread and baked goods with 300% extended shelf life
• Making healthier, low calorie desserts, gravies, and salad dressings
• Making high quality cosmetics to minimize or prevent skin wrinkles
• Improving diaper, non-woven, and catamenial fluid retention
• Stabilizing foams of all types, edible and non edible
• Making strong, translucent films
• Making non-settling sand, coal, and other pumpable solids suspensions
• Relieving arthritis joint pain
• Making artificial body parts
• Making nanochitosan used for instant blood clotting of severed arms and legs from IED casualties in Iraq.

As TAPPI's new Nanocellulose Division continues to mature, history will judge whether the Rayonier group in 1977 found the "cellulose holy grail" or, rather, somehow opened Pandora's Box.

(*) Dr. Turbak has served as national chairman of the Cellulose Division and of the Division Officers Group of the American Chemical Society, and as chairman of the High Purity Pulps Division of TAPPI. He was research director of the TeePak Division of Continental Can Co. and manager of basic research at Rayonier. He was professor and director of the Georgia Tech School of Polymer and Textile Engineering .Dr .Turbak has published many technical papers, consulted and lectured internationally, and holds more than 500 patents worldwide.

References

1. Turbak, A.F.; F.W. Snyder, and K.R. Sandberg (1983). "Microfibrillated Cellulose, a New Cellulose Product: Properties, Uses, and Commercial Potential." In A. Sarko (ed.) Proceedings of the Ninth Cellulose Conference, Applied Polymer Symposia, 37, New York, N.Y., USA: Wiley. pp. 815–827. ISBN 0-471-88132-5.
2. Herrick, F.W.; R.L. Casebier, J.K. Hamilton, and K.R. Sandberg (1983). "Microfibrillated Cellulose: Morphology, and Accessibility." In A. Sarko (ed.) Proceedings of the Ninth Cellulose Conference, Applied Polymer Symposia, 37, New York, N.Y., USA: Wiley. pp. 797–813. ISBN 0-471-88132-5.
3. Turbak, A.F.; F.W. Snyder, and K.R. Sandberg "Microfibrillated Cellulose—A New Composition of Commercial Significance," 1984 TAPPI Nonwovens Symposium, Myrtle Beach, S.C., April 16–19, 1984, pp 115–124. Publisher, TAPPI Press, Atlanta, Ga., USA.

Patents
Turbak, A.F.; Snyder, F., and Sandberg, K.R. U.S. Patents 4,341,807; 4,452,721; 4,464,287; 4,483,743; 4,5 00,546; 4,374,702; 4,378,381; 4,487,634. Herrick, F.W. U.S. Patent 4,481,076; 4,481,077.

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Consumers for Paper Options (CPO), Washington, D.C., USA, this week formally launched an effort to urge the U.S. Congress to preserve access to government information for all Americans, regardless of their ability to access or utilize digital technology.

"It is a crucial priority for millions of Americans to have access to paper options regarding their social security checks, social security annual earnings statements, and tax forms," said CPO Executive Director John Runyan. "With more than 31% of U.S. households (almost 1 in 3) without access to the Internet, the government cannot simply shutoff the flow of paper-based information regarding critical programs," Runyan added.

CPO notes that its goal is not to hinder the natural evolution of technology but to prevent discrimination against those who may not have access to or cannot use technology. "Getting this policy right would achieve important efficiency improvements without shifting extra cost burdens to the consumers who can least afford them," Runyan said.

This week the CPO delivered a statement to the House Social Security Subcommittee urging its assistance in reinstating the annual Social Security earnings statement. The Social Security Administration announced in April it would end the mailing of the annual earnings statement for all workers over age 25. An online tool allowing citizens to estimate their eventual retirement pay is available, but doesn't fully replace the detailed earnings history that was included in the annual earnings statement. A July 2011 study by the Government Accountability Office (GAO) concluded that the statement is a critical financial literacy tool that should continue to be provided to all workers, including those without Internet access.

Beyond the earnings statement issue, CPO urges Congress to reinstate the mailing of annual tax forms to those who still file by mail and continue to provide paper Social Security checks to those who do not want to be forced into using an electronic debit card or mandatory direct deposit. "The impact of these policies on our non-Internet using citizens must be more carefully examined before sweeping changes are implemented in the future," CPO emphasizes.

Consumers for Paper Options is a group of individuals and organizations who believe paper-based communications are critically important for millions of Americans, especially those who are not yet part of the online community.

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The TAPPI Tissue Properties & Manufacturing Course, to be held next week (August 10 – 11) at TAPPI's headquarters in Norcross, Ga., USA, delivers a comprehensive and structured overview of tissue manufacturing processes, and their effects on product performance for those operations and administrative personnel that are new to the industry or process of tissue production.

"The course is specifically designed to increase the ability of attendees to improve manufacturing operations and produce a more competitive product," says Michael J. Kocurek, PhD, Professor Emeritus at North Carolina State University, who chairs this course.

Kocurek adds that "we have put together a ‘top notch' team of instructors to make sure that attendees receive a well-rounded overview of the processes." The team of instructors for this course will include Lucyna M. Pawlowska, tissue process application specialist, Kemira North America; Peter E. McCabe, tissue business leader, AstenJohnson; and Roger Banks, tissue press felt section presenter, AstenJohnson.

Kocurek has taught this course for a number of years with TAPPI and has also taught this curriculum to operators at multiple mills and corporations.

Course topics will cover:

• Tissue properties and tests and how these relate to sheet structure
• Performance effects of fiber raw materials, pulp mill, and recycling operations
• Stock prep refining for tissue
• Chemicals for tissue
• Tissue machine wet end operations and effects on sheet structure and properties, including multilayer headboxes, formation, fiber orientation, dewatering, and fabrics for sheet forming and sheet structure
• TAD and yankee drying and effects on properties Wet felts for obtaining desired sheet structure
• Creping
• Calendering.

More Information about this course, including registration, is available on the course webpage.

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In the aftermath of the collapsed Management Investment Schemes (MIS), plantation ownership and management of the Australian timber resources is in a transitional mode, reports the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. The MIS was launched in 1997 with the objective of pooling funds from small investors to make large investments in forest plantations. The MIS companies established, managed, and marketed the timber investments on behalf of the individual investors.

During 1997 until the partial collapse in 2009, the plantation area in Australia grew from 1.1 million hectares (ha) to about 1.9 million ha, with Eucalyptus being the preferred species planted, according to WRQ. At that time, MIS companies managed about 75% of the hardwood plantations and 6% of the softwood plantations.

Since 2009, a number of MIS forest companies have gone into receivership, including the FEA Group, Great Southern Plantations, Environinvest, Willmott Forestry, and Timber Corp. There are reportedly a number of timber companies and investors showing interest in taking over the management responsibility of the MIS schemes, WRQ notes.

Unexpectedly, an investment company in the province of Alberta, Canada, recently announced it would acquire 240,000 ha of timber assets from the largest MIS company, Great Southern Plantations, WRQ further reports. The institutional investment company, AIMCo, which invests globally on behalf of pension and government funds, will partner with the Australia New Zealand Forest Fund. The new ownership may create a more stable long–term supply source for forest and energy companies in Asia.

According to WRQ, there is continued interest from foreign investors both to acquire pulp mills and forest plantations. The latest development is the Singapore-based pulp company APRIL, with pulp mills in Indonesia and China, which is considering the purchase of forest plantations and export chip loading facilities. The intention would be to export Eucalyptus wood chips to the company's pulp plant in Rizhao, China, WRQ says.

Plantation Eucalyptus log production in the first quarter of this year was significantly higher than the same quarter last year, WRQ continues. This development came at the same time as availability of roundwood and wood chips from natural forests declined substantially. Prices for pulp logs have not shifted much the past year in local currency, with plantation hardwood continuing to be about 24% higher for plantation wood compared with wood from natural forests.

Pine and Eucalyptus pulp log prices, in U.S. dollar terms, have climbed steadily in Australia for almost two years, WRQ says. Prices are currently the highest ever recorded since WRQ started tracking Australian prices in 1990. During the past nine years, Eucalyptus log prices have more than tripled, with only Sweden, Spain, and Germany currently having higher hardwood pulpwood prices.

More information is available online.

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North American pulp prices remain under pressure in August, reports Mark Wilde, senior analyst with Deutsche Bank. Canfor, Domtar, and Mercer have all announced $30/metric ton price cuts for August 1. This takes U.S. NBSK "list" prices to $990/metric ton, he adds. The key issues, according to Wilde, are China demand and a two-day rise in global softwood inventories in June.

July NBSK prices are down ˜$60/metric ton in China. There are two other issues pressuring the market, Wilde points out—ripples from a sharp decline in spot dissolving pulp prices (more than $1,000/metric ton) and integrated papermakers selling more market pulp. "The trade papers are reporting spot NBSK deals as low as $760 - $770/metric ton. Surprisingly, no hardwood producer has yet announced a price decline for August in North America. Trade reports suggest prices on hardwood are falling. Reports suggest NBHK deals in low – to mid-$600s," Wilde says.

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According to Wilde, repro bond estimated prices rose $5 - $15/ton to $1,075 - $1,130/ton in July, -1.6% y/y. So far, he notes, producers have implemented $30 - $35/ton out of the $60/ton June 1 price hike. While demand remains weak, higher prices are aided by supply cuts, lower inventories, and favorable trade flows. In offset papers, estimated prices are up only $25 of a $40/ton April 1 price hike. "Looking ahead, a key variable will be the extent of pulp price declines. If pulp falls sharply, it could ripple over into UFS prices," Wilde says.

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U.S. export OCC to China appears to have dipped $2 - $3/ton in the past couple of weeks, according to Wilde, who adds that YTD export OCC prices have been at record levels. The recent decline is mostly due to lower-than-expected package demand in China, he explains. In the domestic U.S. market, OCC jumped $15/ton to $177/ton (+43.9% y/y) in July. "It's not hard to see why OCC prices have been so healthy in 2011. Through May, U.S. OCC exports were up 82.3%," Wilde notes.

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Cascades Inc., Kingsey Falls, Que., Canada, this week announced that its Norampac division has ordered from Voith, Germany, an OCC recovered paper system, designed for 1,710 tpd, and an anaerobic effluent treatment plant for its new Greenpac Mill project in Niagara Falls, NY, USA. Voith Paper Fiber & Environmental Solutions will supply the entire new OCC recovered paper system from the pulper feed conveyors through dewatering, the containerboard machine's approach flow system, and the water, sludge, and rejects handling processes.

Equipment components in the system include the IntensaPulper R furnish pulper, complete coarse cleaning and screening systems, fine cleaning with EcoMizer Technology, and fine slotted screening with C-bar slotted baskets and MF power-saving rotors. In addition, Voith will supply the anaerobic effluent treatment plant for degradation of dissolved organic waste produced by the system.

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Coldwater Seals Inc., Atlanta, Ga., USA, this week announced that it has acquired the assets and personnel of Centers Tech Services of Carlisle, Ohio, effective July 29. Gordon (Gordy) Centers will lead the paper machine headbox services portion of the Coldwater Tech Services group, expanding the service capabilities on the wet end that already include formation and drainage and edge control.

Coldwater Group President David Withers said that "I've worked with Gordy before and known him for more than 20 years. He fits very well with our service philosophy and brings experience and expertise in headboxes to our CTS team."

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Georgia-Pacific, Atlanta, Ga., USA, and the United Steelworkers (USW), Pittsburg, Pa., this week reached an agreement setting terms that will be offered in USW labor contracts as they are renewed at 13 of G-P's pulp and paper mills between 2011 and 2014.

The Master Economic Agreement ratified by USW members at the 13 mills establishes terms for wage increases, health care benefits, and employee pension benefits over the four years, continuing local bargaining on all other issues. The agreement also allows G-P to institute incentives at these mills, consistent with its ongoing companywide employee wellness efforts.

The four-year deal will be applied to mill agreements in Brunswick, Ga., Naheola, Ala., Brewton, Ala., Big Island, Va., Halsey, Ore., Green Bay, Wis., Palatka, Fla., Monticello, Miss., Cedar Springs, Ga., Pt. Hudson, La., Plattsburg, N.Y., Crossett, Ark., and Wauna, Ore.

"We appreciate the United Steelworkers' efforts to reach this agreement, which we believe will provide greater efficiency in contract negotiations at our USW-represented pulp and paper mills during the next four years," said Jim Hannan, Georgia-Pacific CEO and president. "We also believe this gives us a foundation from which to continue working with our employees on making our operations more competitive in an increasingly challenging global market."

USW International VP Jon Geenen, who heads the USW paper sector collective bargaining program, added that "because Georgia-Pacific is such a prominent employer in the industry and our members made great strides in bargaining, this agreement represents another historic milestone in the paper sector. This deal provides security and stability for both our members and the company."

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Ilim Group, St Petersburg, Russia, reports that, based on results for the first six months of 2011, its mills have produced 1,268,000 metric tons of pulp and paper products, which is 5% more than for the same period of the previous year. Market pulp production totaled 799,000 metric tons. This is 3.5% more than in January-June of 2010.

Market containerboard production has gained 6%, reaching 362,000 metric tons. Paper output amounted to 107,000 metric tons, which is 9% more than in the first six months of 2010. A total of 28,000 metric tons of sack paper, 50,000 metric tons of offset paper, and 15,000 metric tons of paper for wallpaper manufacturing purposes were produced. Pulp cooking grew by 3% to 1,333,000 metric tons.

During the first six months, OAO Ilim Gofra manufactured 59,060,000 sq. meters of products (corrugated board and boxes). This is 33% more than in the three quarters of the previous year.

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PaperWorks Industries, Philadelphia, Pa., USA, reports that its Wabash, Ind., mill logged its one millionth consecutive hour without an accident this past Sunday, July 31. "This is a very rare and impressive accomplishment for not only our industry, but any industry," said Joe Atkinson, director of safety at PaperWorks. "Setting this kind of safety record in two years is nothing short of amazing." Atkinson was the initiator of a company-wide safety program that was implemented across the company's mills in 2009, and has since begun being instituted in its other facilities."

Fred Kalakay, GM of the Wabash mill, added that "safety is a core value at PaperWorks. Achieving more than two years without a lost time incident and more than a million man-hours without a recordable incident can only happen with the attention and actions of all mill employees. These results are supported by a common-sense approach to the development of safety standards, communications, actions, and audits, with a mill safety committee that has allowed employees to build a safety culture based on care and awareness."

Founded in 2008, PaperWorks Industries' Packaging Group produces specialized folding cartons, serving clients of all sizes across North America from 11 facilities. Its Paperboard Group manufactures approximately 300,000 tons of 100% recycled paperboard every year for a variety of end uses, and further specializes in the cutting and distribution of all paper types. The company has more than 1,850 employees across 18 North American locations, with annual sales in excess of $600 million.

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Rayonier, Jacksonville, Fla., USA, will convert its C fluff pulp line at Jesup Ga., to produce dissolving pulp. The $300 million investment in the CSE (cellulose specialties expansion) will create some 350 construction jobs and more long-term stability, the company noted this past week. The converted line is expected to startup in mid-2013.

The Rayonier Performance Fibers mill at Jesup currently has three production lines—the A and B lines produce cellulose specialties, and the C line produces commodity-grade absorbent fluff pulp materials used in diapers and feminine-hygiene products. Following the C line conversion at Jesup, the company's dissolving pulp capacity, including its Fernandina Beach, Fla., mill, increases to 650,000 metric tpy.

Rayonier is a key global producer of high quality dissolving pulps, but is a relatively small player in commodity fluff pulp markets. With the C line conversion at Jesup, the company will exit commodity-grade fluff pulp production.

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Sappi Southern Africa, Johannesburg, will shutdown its Adamas paper mill in Port Elizabeth, South Africa. Permanent closure of the mill is expected to be finalized at the end of August. This brings to a conclusion the process announced this past May to investigate continued operation of the Adamas mill.

The company says it concluded an agreement with mill employee representatives and redundancy notices have been issued to the staff specifying redundancy terms and provisions for outplacement and training support for all employees. The Adamas mill, which has operated in Port Elizabeth for 47 years, employs 213 people.

Alex Thiel, CEO of Sappi Southern Africa, said that "when we began the consultation process, we fully recognized and commended the enormous efforts that employees and mill management have put in to try to make the mill competitive and to find a way to create a future for the mill. Unfortunately these efforts have been unsuccessful. We recognize this is a difficult decision affecting our employees, their families, and the local communities and we would like to thank all of them for their hard work and support. Unfortunately, this action became necessary to address the severe cost pressure that we are facing and the uncompetitive nature of this old and small mill."

Volumes produced at the mill have been transferred to the company's Enstra and Tugela mills. Sappi expects to take a charge of approximately $5 million in respect of these closure costs in the fourth financial quarter ended September 2011. The company will maintain its presence in the Eastern Cape in regard to marketing and sales as well as the collection and purchase of collected fiber (used for recycled paper) through Sappi ReFibre.

Furthermore Sappi, in partnership with AsgiSA-EC, has developed a joint proposal with a strategic goal of accelerating the establishment and management of 30,000 hectares (ha) of commercial tree plantations by 2020 in the Eastern Cape. It is anticipated that these partnerships will be developed between Sappi and communities that hold land rights, with Sappi being the "implementation partner" as a provider of technical, managerial, and administrative support to the community businesses. This development is expected to create 1,400 direct and permanent unskilled jobs and a further 125 jobs for skilled workers. Using industry trends, it is expected that some four to five indirect jobs would be created for each direct job, meaning almost 8,000 additional jobs. In rolling out the project, Sappi and AsgiSA-EC have already developed close to 150 ha in conjunction with the Mkambathi and Sinawo communities.

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Sappi Fine Paper North America (SFPNA), Boston, Mass., USA, reports that its Somerset Mill in Skowhegan, Maine, has been certified by the Center for Resource Solutions' (San Francisco, Calif.) Green-e Marketplace program. The Somerset Mill secured the qualification through new investments in renewable energy generation. Sappi invested $49 million this past fall to upgrade the Somerset pulp mill's recovery boiler and related equipment.

Even before this recent investment, SFPNA notes, it has led the industry in the use of renewable energy and already has the lowest reported carbon footprint among domestic coated paper suppliers, with more than 85% of the total energy being derived from renewable resources at its coated fine paper mills.

Under the Green-e certification, 100% of the electricity used to manufacture Opus web paper at the Somerset Mill is Green-e certified renewable energy that is generated onsite by Sappi. Opus web now joins the line-up of SFPNA's current Green-e certified product offerings: Sappi's McCoy web, sheets and digital, Opus sheets and digital, Opus 30 web, and Flo sheets and digital, all of which have been Green-e certified via renewable energy generated at the Cloquet Mill in Minnesota.

Based on the audit conducted for this certification, initial estimates indicate the amount of Green-e certified renewable electricity generated from renewable resources at Sappi's Somerset Mill is approximately 260 million kWh annually, which is comparable to the yearly electrical usage of approximately 24,000 homes consuming nearly 11,000 kWh per year.

In addition to obtaining Green-e certification through the recovery cycle upgrade project, Sappi's Somerset Mill has also implemented several other major projects to improve energy efficiency and reduce the site's carbon footprint over the past year. This includes work underway to improve the efficiency of the pumping systems of PM 3 for which Sappi received an Efficiency Maine grant.

In 2008, already operating significantly better than industry average, Sappi established a five-year goal of reducing emissions from fossil fuels by 40% over its 2007 baseline. The metric for this goal includes both direct emissions from Sappi Fine Paper North America's mills, as well as emissions associated with purchased electricity. In terms of the Greenhouse Gas Protocol, this is known as Scope 1 and Scope 2 emissions. At the end of the company's 2010 fiscal year, Sappi says it had already achieved more than a 40% reduction in just three years, outpacing targets proposed by climate change legislation.

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SCA, Stockholm, Sweden, is acquiring 95% of the Turkish hygiene products company San Saglik, producer of incontinence care products, from the family-owned MT Group. The purchase consideration corresponds to SEK 95 million on a debt-free basis. SCA has a purchase option on the remaining 5% of the company. The transaction is expected to be completed during the third quarter of this year

San Saglik has rapidly captured market share since the company was founded in 2008, and is now the second largest player in incontinence care products in Turkey. The acquisition includes local production and access to strong brands.

"The acquisition of San Saglik supplements the acquisition of Komili, a producer of baby diapers, feminine care products, and toiletries that SCA recently announced. SCA will have a complete personal care product portfolio in Turkey. The strong distribution network in retail that it accessed through Komili is now also extended to healthcare.

Turkey is a growth market with 70 million inhabitants and a rapidly growing population, according to Jan Johansson, CEO and president of SCA. San Saglik generates annual revenues of approximately SEK 100 million.

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UPM, Helsinki, Finland, this week reported that it has completed the acquisition of Myllykoski Oyj of Finland and Rhein Papier GmbH (Myllykoski) in Germany. The acquisitions consist of seven publication paper mills in Germany, Finland, and the U.S. Their total annual paper production capacity is 2.8 million metric tons. The transaction also includes Myllykoski Oyj's 0.8 % stake in the Finnish energy company Pohjolan Voima Oy.

The enterprise value of all the businesses acquired is approximately EUR 900 million. UPM will report a one-off gain of approximately EUR 40 million in the third quarter. UPM estimates that the transaction will have an immediate positive impact on cash flow and a positive impact on earnings per share from 2012. UPM has announced a preliminary estimate of annual cost synergies in excess of EUR 100 million.

For the financing of the acquisition, UPM will issue five million new UPM shares to the direct and indirect owners of Myllykoski Oyj and Rhein Papier GmbH and has drawn EUR 800 million in long term debt.

"UPM has been very determined in implementing its long term strategy of being the cost leader in the European paper industry and the global leader in magazine papers. Consolidation and restructuring are the best way to make fundamental improvements in terms of cost efficiency and to create value in the paper business. Our position as a frontrunner in the industry enables us to make a step change in the profitability of our Paper Business," says UPM's President and CEO Jussi Pesonen.

Jyrki Ovaska, president of UPM's Paper Business Group, added that "the planning work to identify cost synergies is still ongoing. As the transaction is now completed, we have access to detailed information on Myllykoski operations and business units and we can verify the various options. The planning is proceeding towards announcement as soon as possible, however, latest by mid-September."

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Weyerhaeuser Co., Federal Way, Wash., USA, has completed the sale of its hardwoods business to American Industrial Partners, New York, N.Y. Total proceeds from the sale will be approximately $108 million. The business manufactures and distributes appearance lumber and plywood for use in cabinets, moldings, architectural millwork, panel furniture, and retail boards. It also makes material for use in pallet cants and ties.

Assets included in the transaction are located in Tuscumbia, Ala., Elkhart, Ind., Grand Rapids and Lewiston, Mich., Brainerd, Minn., Coos Bay, Eugene, and Garibaldi, Ore., Titusville, Pa., Arlington, Centralia, and Longview, Wash., and Dorchester and Onalaska, Wis.

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MeadWestvaco Corp., Richmond, Va., USA, this week launched the second video in the company's GreenToGo educational series dedicated to helping foodservice operators make their businesses more sustainable. The latest video explores the use of paper-based foodservice packaging and shares the story of how sustainable forestry supports a healthier planet.

"Foodservice operators have many options when it comes to selecting single-use foodservice packaging," says John Sanfacon, president, MWV Food Service. "It's easier to make good choices when you understand the source for packaging materials and are better equipped to decide which options fit your sustainability goals. Our GreenToGo site is a resource to help foodservice operators make educated choices when it comes to making their operations greener."

The GreenToGo website, encourages operators to explore opportunities to improve their environmental profile through programs such as composting and sourcing packaging from responsibly managed companies or from certified sources, etc. The site features concise educational resources, including videos, a case study that shows composting in action, and information about how to start a composting program. Also on the site are resources to help operators source sustainable packaging and information about why paper is a great option. MWV plans a full series of informative videos that will be introduced this year.

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Premium Board Finland Oy, Finland, acquired the assets of former board manufacturer Stromsdal Oy in March of this year and reports to have restarted the mill located in Juankoski in Eastern Finland. Main customers for the mill's production are brand owners in the food, cosmetics, and healthcare industry. The mill has separate paperboard and coating machines.

The board machine produces three-layer folding boxboard with mechanical pulp in the middle and chemical pulp in the top layers. The coater was modernized in 2008 and has a coating station on both sides of the web, enabling production of symmetrical paperboard. The coating stations can, in addition, also use different kinds of coating methods, such as blade-coating and rod-coating. The trim width of the offline coater is 2,450 mm. The capacity of the coater is about 100,000 metric tpy and the board machine produces some 80,000 metric tpy.

The former owner Stromsdal had developed the biodegradable Tecta dispersion-coated barrier board made at the Juankoski mill. Packaging made of virgin Tecta barrier board is used for delicate food products without the need of inner pouches or plastic layers. The water vapor and grease proof barrier coatings are water based and contain no fluorochemicals, heavy metal compounds, or waxes. Tecta is BfR-approved for use in food contact applications. The packaging can be repulped, composted, or incinerated for energy recovery without having to separate out coatings or layers manufactured from other materials, Premium Board notes.

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Sonoco-Alcore S.a.r.l., Brussels, Belgium, a wholly owned subsidiary of Sonoco, Hartsville, S.C., USA, reports that it is making multi-million dollar investments in three of its European uncoated recycled paperboard (URB) mills to improve energy efficiency, product range, and environmental performance. The projects will be completed during scheduled downtime this month and in September.

"Our Cirie (TO), Italy, mill will benefit from a new DCS, a new energy-from-biogas system, and CHP upgrades, and we are improving our effluent treatment system," said Dino Kiriakopoulos, director of Sonoco-Alcore's European operations. "Our investment in Cirie continues our 2010 capital investment efforts, which are focused on lowering energy costs and continuing to be good stewards of the environment."

Kiriakopoulos said that Sonoco-Alcore also will be making additional investments at its Kilkis, Greece, and Nordhorn, Germany, mills this summer. "At Kilkis, we will be installing a new high-efficiency boiler, heat recovery system, and drive upgrades that will significantly lower energy costs and provide some capacity expansion. At Nordhorn, we are upgrading our refining and press sections to further reduce the steam and electricity consumption for each ton of the high quality specialty board produced there."

Sonoco-Alcore S.a.r.l. operates six paper mills and 32 converting plants along with a recycling division in Europe, and is the largest producer of tubes, cores, and coreboard in Europe.

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Stora Enso, Finland, this week reported that it has completed the acquisition of 51% of the Chinese packaging company Inpac International. The enterprise value of the company is EUR 80 million. Stora Enso will also purchase the production plant site and buildings at Qian'an in northern China for approximately EUR 13 million.

Following the acquisition, the new Inpac business unit will be reported as part of Stora Enso's Industrial Packaging segment results from the third quarter of 2011 onwards.

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Thimm Verpackung, Germany, will acquire the corrugated packaging division of Tektura Opakowania Papier (TOP), a company based in the southern Polish town of Tychy. The manufacturer of corrugated board transport and sales packaging, which achieved a turnover of EUR 17 million in 2010, employing 170 people, will be taken over after approval by the Polish anti-monopoly office. The company will be jointly owned by the Northeim-based Thimm, with a 51% percent stake, and Spanish company Saica (S.A. Industrias Celulosa Aragonesa), with a 49% stake. These two family businesses have been working together in a strategic sales alliance since the late 1990s. TOP's paper and board divisions are not part of the acquisition deal.

Jeremiasz Zaleski, GM of TOP Packaging Division said that "my colleagues and I are delighted that we have been acquired by two such prestigious international companies who have previously not been present in the Polish market. Significant additional investment is planned to increase our capacity and widen our capabilities, which we are confident will make TOP an even more attractive supplier to an extended range of local, national, and multi-national customers."

This move into the Polish market will also allow Thimm to continue its growth strategy in Central and Eastern Europe. The company is already operating its own production facilities in the Czech Republic and Romania. With the newly acquired plant in South Poland, it will be in a position to serve much of Poland and neighboring export markets.

Jens Fokuhl, managing director of the Thimm Group, notes that per-capita consumption of corrugated cardboard in Eastern Europe currently lies well below that of Western Europe. Thimm expects substantial growth thanks to positive economic development in the region, especially in Poland, he notes.

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The Fibertect nonwoven textile wipe developed at Texas Tech University (TTU), Lubbock, Texas, USA, and invented by Dr. Seshadri Ramkumar of TTU, has received additional funding from the U.S. Army. The funding, part of a major research program by the Zumwalt Program at TTU, is aimed at enhancing Fibertect wipe's applications.

The Institute of Environmental and Human Health (TIEHH) at Texas Tech recently received a $1.1 million research award from the U.S. Army's Research Development and Engineering Command to continue funding the Admiral Elmo R. Zumwalt Jr. National Program for Countermeasures to Biological and Chemical Threats. Ron Kendall, director of TIEHH, said this was the first funding cycle of a new three-year contract for the program, which was chartered at Texas Tech in 1999.

"This will allow us to continue our work in countermeasures to chemical and biological threats – in other words, counterterrorism measures," Kendall said. "The program has enjoyed a lot of success in working with the Army in the last several years, publishing more than 100 scientific publications, a major textbook and critical patents such as the Fibertech decontamination wipe."

Specifically, Fibertect has received $90,000 for a one year project. Recently, cotton-carbon Fibertect was found to have oil absorption capabilities. More information is available online.

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DuPont Titanium Technologies, Wilmington, Del., USA, this week announced a price increase of $0.10 per pound, or as permitted by contract, for all DuPont Ti-Pure® titanium dioxide (TiO2) sold in North America (U.S. and Canada) into plastics, laminates, and specialty applications. This increase, to become effective August 15, is in addition to any previously announced increases for North America.

DuPont Titanium Technologies serves customers globally in the coatings, paper, and plastics industries. The company operates plants at DeLisle, Miss., New Johnsonville, Tenn., and Edge Moor, Del., in the U.S., as well as at Altamira, Mexico; and Kuan Yin, Taiwan, all of which use the chloride manufacturing process. It also operates a mine in Starke, Fla.

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PaperWorks Industries Inc., Philadelphia, Pa.,announced that as a result of ongoing higher recovered paper, energy, chemical, freight, and other costs, it will increase prices on all grades of coated and uncoated recycled paperboard by $40 per ton. This will affect all North American customers with shipments as of August 22, and impact the entire MasterWorks product line.

The company also anticipates increasing all lightweight and specialty grade up-charges, which will impact the MasterWorks Blister, Freeze, Lite, and Bev product lines. PaperWorks also noted that its customers can expect a review of upcoming changes with their account managers in the coming weeks.

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Papierfabrik Scheufelen, Lenningen, Germany, will raise prices for its coated wood free papers by 8% in all countries, beginning with shipments on and after September 1. The company attributes the price increase to continuing increases in raw materials and energy costs.

Scheufelen, founded in 1855, was acquired by the Dutch company Paper Excellence this past May. At the Lenningen site, some 550 employees produce up to 300,000 metric tpy of premium coated wood free paper from FSC and PEFC certified pulps.

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The U.S. Department of Agriculture (USDA), Washington, D.C., USA, has announced the creation of four additional Biomass Crop Assistance Program (BCAP) project areas in six states. The move will expand the availability of non-food crops for use in the manufacturing of liquid biofuels. USDA has allocated up to $45 million for contracts that range between less than five years and up to 15 years. Set-aside acres in California, Kansas, Montana, Oklahoma, Oregon, and Washington will be used for the production of renewable energy crops that will provide the feedstocks to produce more than 2 million gal of biofuels annually.

Two of the new BCAP project areas, targeted for California, Montana, Washington, and Oregon, will grow camelina on a significant scale. Camelina, an oilseed that can be a jet fuel substitute, is a rotation crop for wheat that can be established on marginally productive land. Another project area will encourage growth of hybrid poplar trees in Oregon on up to 7,000 acres. Additionally, a BCAP project area in Kansas and Oklahoma has been designated to grow up to 20,000 acres of switchgrass.

BCAP helps farmers and forest landowners with the startup costs of planting non-food energy crops for conversion to heat, power, bio-based products, and advanced biofuels. The program is designed to ensure sufficient biomass is available to reduce America's reliance on foreign oil, improve domestic energy security, reduce pollution, and spur rural economic development and job creation. The deadline to sign up for the project is September 16. More information is available online.

The biofuels potential of non-food plants such as prairie cordgrass (photo on the right) will get a boost from the new USDA BCAP program.

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AbitibiBowater Inc., Montreal, Que., Canada, reports that Jo-Ann Longworth will become CFO, effective August 31. Longworth succeeds William G. Harvey, SVP and CFO. Currently, she is serving as special advisor to president and CEO Richard Garneau, focusing on specific mandates and ensuring an effective transition with Harvey who will continue to serve as an advisor until March 2012.

Longworth served from 2008 to 2010 as SVP and chief accounting officer with World Color (formerly Quebecor World), and helped transition the company to Quad/Graphics Inc. after its acquisition of World Color. She also served as CFO with Skyservice Inc., a private corporate aircraft and air ambulance services provider, from 2007 to 2008, and as VP and controller with Novelis, Inc. in Atlanta, Ga., from 2005 to 2006. Prior to the Novelis spin-off, she held a number of financial and operational roles over a 16-year career within Alcan Inc.

Harvey has served as CFO with AbitibiBowater since the merger of Abitibi-Consolidated Inc. and Bowater in October 2007. Prior to this, he held the position of EVP and CFO of Bowater.

"We are pleased to welcome Jo-Ann to the AbitibiBowater team. She has extensive experience and a proven track record with public companies in manufacturing," Garneau said. "Her knowledge and expertise will be a valued addition to our executive team. On behalf of the board of directors and employees of AbitibiBowater, I would like to thank Bill for his valued counsel and dedication to the company. Among other contributions, Bill played a critical role during the company's restructuring. We wish him our very best in his future endeavors," Garneau added,

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Michelman, Cincinnati, Ohio, USA, has announced the retirement of 30-year veteran P. Marshall Wiseman. Wiseman's career began at Michelman in 1981 when Dr. John Michelman hired him to be the very first salesman for the company's line of water-based specialty wax emulsions. Until that time, Michelman was involved in coatings for paper only.

Marshall became a leading force behind Michelman's growth in North America, and was the company's first salesman in Europe and Asia. According to Steve Shifman, Michelman's president and CEO, "Marshall's dedication and sacrifice has been great. At one time, he relocated to China where he lived for three years while the company established a foothold in the Asia Pacific region. Marshall initiated and has nurtured many of the relationships we currently enjoy with current customers around the world, as well as with many of the agents and distributors around the globe who represent Michelman."

Michelman is a global developer of water-based barrier and functional coatings for paperboard, corrugated cartons, and flexible film packaging, as well as water-based surface modifiers, additives, and polymers for several industries.

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TAPPI and Pira International are pleased to announce the agenda for the Specialty Papers Europe 2011 Conference, examining the current state of the market and the latest technology and application developments in the specialty papers arena.

The conference program will cover:

• Analysis of global markets and trends
• Advances in manufacturing processes and equipment ·
• Technology and applications developments ·
• Innovations in fibres
• Printed electronics applications

For further details and to find out more go to Specialty Papers Conference

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There's still time to register for the 2011 TAPPI Extrusion Coating Course. This course takes place August 16-18 in exciting Nashville, Tennessee, USA.

Learn from Leadership

The slate of instructors scheduled to lead this event represent decades of experience. You'll benefit from the expertise shared by an elite roster of industry professionals.

Enjoy "Music City" in Summer

This is a great time to visit Nashville, along the banks of the broad Tennessee River. Special events are planned for attendees, including a reception and local tour that's sure to haunt your experience.

Bring Back a Valuable Resource

You'll receive your own copy of the Roll and Web Defect Terminology, Second Addition for attending the entire three-day program. (You must stay until the end of the course to receive your book.) This is a must-have communication tool for suppliers and their customers to assist in the identification and elimination of roll and web defects, such as those commonly found in paper, film, nonwoven webs and wound rolls.

Boost Your Company's Brand

Sponsorship opportunities are available where you can position your company's brand in front of a highly distinguished group of decision makers. Your products and services will be visible among an expressly targeted group of extrusion engineers, supervisors, operators, directors, technical staff and R&D personnel who are attending to learn more about their business and improve their performance.

Contact Jennifer Affrunti at 1-770-912-6760 to select the package that best meets your sales objectives.
We thank you for your continued support of TAPPI's educational resources and look forward to seeing you in Nashville, Tennessee very soon!

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You're invited to the 6th Annual Pacific Section Golf Tournament! The tournament format is a Modified Shotgun Start, 4 person scramble, 144 spots open - First Come/First Serve. The entry fee is $125/person - Includes Green Fees, Cart, 2 beverage tickets, prizes, meal afterwards, and LOTS OF FUN!
Awards: 1st Place Team, 2nd Place Team, 3rd Place Team, M/W: Longest Drive, KP, and Longest Putt. Also Door Prizes/Raffle!

Event Date: August 26, 2011 (Friday) at 11:00 AM
Event Location: Lewis River Golf Course

Proceeds go to the TAPPI scholarship fund! For questions, contact Vince Hochanadel @ (360) 606-1461 or via email: vince.hochanadel@kemira.com.

For additional details and the registration form can be found at  Golf Tournament Link

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A distinguished panel of recovered fiber traders will provide their insight on global trading patterns at Paper Recycling Conference Europe 2011. The event, hosted by The Recycling Today Media Group and Pira International, will take place November 9-10,2011 at the Barceló Sants Hotel in Barcelona.

In Thursday's session, titled "The Trading Triangle," Bill Moore of Moore & Associates, Atlanta, will moderate a discussion among four panelists who collectively trade hundreds of thousands of tonnes of recovered fibre each year. The four panelists are: • Niels van Binsbergen, Managing Director, ACN Europe • Francisco Donoso, Director, Reciclajes Dolaf • Philippe Chantrain, Sales and Marketing Manager, Cellmark • Marc Forman, President, GP Harmon Recycling.

Paper Recycling Conference Europe is designed for European and international paper recycling professionals – recovered paper merchants, government recycling officials, consuming mills, traders and brokers – who wish to stay ahead of industry developments in order to remain competitive in the global marketplace. Programme topics will examine the supply, demand, trading, collection and processing of recovered fibre. The agenda will also cover the key issues affecting the whole paper recycling supply chain, as identified by an expert program advisory committee, including opportunities in new markets, progress and implications of the End of Waste legislation and concerns over decreasing fibre quality.

Conference organisers still have a limited number of exhibit spaces and sponsorship opportunities available for organisations wishing to take part in the conference. Interested parties should contact Stacey Ludlow at +44 (0) 1372 80 2052 or stacey.ludlow@pira-international.com.

Those seeking additional information about the event can visit the website.

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One of Scott Frasca's first managers in the pulp and paper industry was adamant about one thing: join TAPPI! Taking that advice to heart, Scott not only joined, he instantly became an actively engaged member and leader in TAPPI, PIMA and several Local Sections. A firm believer that you get way more than you give Scott has been involved in multiple committees and assignments since joining 25 years ago. Those activities were recently recognized when he was named the 2010 Paul Magnabosco Outstanding TAPPI Local Section Member Award winner.

A skiing devotee and Harley rider, Scott is also a real fan when it comes to being involved in TAPPI as a way to develop leadership skills and technical knowledge. He recommends committee volunteering as a fast-track to involvement and skill development, noting that "new volunteers are always welcome and generally put to work right away!" Says Scott, "It's amazing what you can get out of membership with just a small investment of your time and how much benefit you derive for both you and your company!" Find out how by reading this month's Member Spotlight .  Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member (or even yourself!) just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire  to fill out and return.

We look forward to seeing you in the Spotlight!

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Make an impact: present at PaperCon! Call for Papers is underway for Papermakers Program, the Coating and Graphic Arts Program and Control Systems 2012. PaperCon 2012, April 22-25 in New Orleans, offers the world's largest program for the pulp and paper industry. Invitations to present have been issued for TAPPI's Papermakers Program, and the TAPPI Coating and Graphic Arts Program. Control Systems 2012 (being held in conjunction with PaperCon) has also issued an invitation, all Control Systems sessions will be open to PaperCon attendees. More information about all three programs, along with submission guidelines and deadlines can be found at PaperCon 2012.

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The Dissolving Pulp Forum kicks off four days of technical sessions, networking, and exhibits focusing on improving mill operations at the TAPPI PEERS Conference. Beginning last year, rapidly developing economies coupled with growing domestic demand for natural textiles, advanced health and hygiene products, and medical-food-and pharmaceutical ingredients in Asia, South America, and other areas of the world have created a literal "gold rush" for dissolving pulps and other fluff and cellulosic pulp-derived products. Global prices for dissolving pulps are currently at historical highs, and fluff pulps used in diapers and other personal hygiene products are also enjoying a technological and production renaissance as global demand rises.

The Dissolving Pulp Forum at this year's PEERS Conference reports on the specifics of this global specialty pulps "boom" worldwide, including:

• new and emerging process technologies
• recent and planned capacity expansions
• existing mill and plant conversions
• advances in product converting
• evolving market dynamics

After a detailed look at "who's doing what, how, and when" on Sunday afternoon, the Forum shifts focus on Monday morning with a special "bridge session" on current market developments around the world. the session will also cover the evolving outlook for dissolving and specialty pulp production and demand for the next two to three years.

Learn more about the Dissolving Pulp Forum and the TAPPI PEERS Conference 

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The 2011 International Pulp Bleaching Conference will be hosted by TAPPI on October 5-7, 2011 in Portland, OR in conjunction with the TAPPI PEERS Conference.

This conference is dedicated to all chemical and engineering aspects of pulp bleaching. Not held since 2008, it is the most important meeting on this subject and attracts a global audience to meet, learn and exchange ideas. This year's program will include a Weyerhaeuser Mill Tour. Space is limited on this tour, so make your reservations early! Full details on the conference, including the technical program and registration are available on the TAPPI website.

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The Preventive Maintenance/Essential Care & Condition Monitoring Course will be held September 12-13, 2011, in Raleigh, NC. TAPPI will be partnering with IDCON on a series of maintenance courses such as this.

Preventive maintenance is essential to achieving improved equipment reliability. The implementation of a preventive maintenance program will enable your plant to identify and minimize equipment failures.

This training in Preventive Maintenance/Essential Care and Condition Monitoring will teach participants how to set up a cost-effective process and provide practical exercises and techniques.

You will benefit from this training if you:

Plan preventive maintenance work

• Execute preventive maintenance tasks (operations and maintenance)
• Manage preventive maintenance
• Work with reliability improvements
• Manage and/or supervise maintenance personnel
• Work with a Computerized Maintenance Management System
• Work as a maintenance or reliability engineer
• Coordinate PM tasks between E/I, mechanical and operations
• Manage Operator Essential Care and inspections

Learn More and Register!

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