International Paper Co. (Memphis, Tenn., USA) and Temple-Inland Inc. (Austin, Texas) yesterday announced that they have agreed to merge. The transaction has been approved by the boards of both companies, and is expected to close in the first quarter of 2012. According to the agreement, IP will acquire all of the outstanding common stock of T-I for $32.00 per share in cash, plus the assumption of $600 million in T-I's year end debt. The total transaction value is approximately $4.3 billion,

IP will terminate its existing tender offer to acquire all of the outstanding common shares of T-I for $30.60 per share, and T-I will hold a special meeting of its stockholders to vote on the transaction. In addition to the approval of T-I's stockholders, the transaction is subject to customary closing conditions, including antitrust approvals.

The combination is expected to yield synergies of approximately $300 million annually within 24 months of closing, derived primarily from the areas of operations, freight, logistics, selling expense, and overhead. The companies have a shared focus on low-cost mills, complementary converting systems, and high levels of box integration. IP notes that T-I's products and manufacturing facilities are an excellent strategic fit with its current offerings and facilities.

IP Chairman and CEO John Faraci said that "the strategic benefits of this combination are clear and we are pleased to be able to move forward on terms that are financially attractive for both sets of shareholders. Acquiring Temple-Inland enhances our ability to generate additional cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we integrate our businesses and create an even stronger company with substantial benefits for our customers, employees and shareholders."

Temple-Inland Chairman and CEO Doyle R. Simons added that "this transaction creates value for both Temple-Inland and International Paper shareholders. The combined company will be positioned to be a leader in providing high quality products for its customers."

IP has manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, as well as xpedx, the company's North American distribution company. The company employs about 59,500 people in more than 24 countries. Its 2010 net sales were more than $25 billion. T-I is focused on corrugated packaging and building products. Its fully integrated corrugated packaging operation consists of 7 mills and 59 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial, and repair and remodeling markets.

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NewPage Corp., Miamisburg, Ohio, USA, reported yesterday that its corporate parent, NewPage Group Inc., and certain of its U.S. subsidiaries have commenced voluntary cases under Chapter 11 of the U.S. Bankruptcy Code. The cases are pending in the U.S. Bankruptcy Court for the District of Delaware. NewPage says that it's filing Chapter 11 bankruptcy "to facilitate an orderly debt restructuring and position the overall business for long-term success." The company's Consolidated Water Power Co. subsidiary is not part of the filing.

Separately, the company's Canadian subsidiary, NewPage Port Hawkesbury Corp., has brought proceedings before the Supreme Court of Nova Scotia under the Companies' Creditors Arrangement Act of Canada (CCAA). To maximize efficiency in both the U.S. and Canadian Court processes, NewPage Corp. and NewPage Port Hawkesbury Corp. have executed a Settlement and Transition Agreement, subject to approval by the Canadian Court.

Through the Chapter 11 process, NewPage expects to work closely with its creditors and other stakeholders in the U.S. to formulate a Chapter 11 plan that details how it intends to satisfy its liabilities and restructure its balance sheet to emerge as a financially stronger company. The company expects to continue operating its U.S. businesses as usual throughout this process with an undiminished focus on providing customers with high-quality paper and employees with a stable and safe working environment. To help ensure it has adequate liquidity to achieve these objectives and continue to operate and compete successfully throughout the restructuring, NewPage has obtained a commitment led by J.P. Morgan for up to $600 million in Debtor in Possession (DIP) financing.

Additionally, NewPage has filed a series of customary First Day Motions in the U.S. Bankruptcy Court that, subject to court approval, would allow it to continue its U.S. employee wages and benefits programs, honor obligations for customers served by its U.S. businesses, and provide additional protection to various other stakeholders. These motions are typical of the Chapter 11 process and are generally granted in the days immediately after a filing, the company notes.

"We strongly believe that the court-supervised restructuring we began today is the most effective means of strengthening our financial position and enhancing our standing as the leading producer of printing and specialty paper in North America," said George F. Martin, president and CEO of NewPage. "We expect to continue to provide our customers with the exceptional service and high-quality products they have come to expect. We recognize customers have choices, and NewPage needs to continue to earn their trust and loyalty every day. We expect to continue to run safe and efficient operations, be candid with all of our stakeholders, and act as a responsible community member both during and after our financial restructuring."

NewPage Port Hawkesbury Corp. brought proceedings before the Supreme Court of Nova Scotia in Halifax, Nova Scotia. The Canadian entity is in discussions with potential buyers and hopes to complete a successful sale of the mill while under the anticipated court protection.

On August 22, NewPage announced that it would take downtime at NewPage Port Hawkesbury Corp. due to market and economic conditions that had prevented it from profitably operating the mill for more than a year. NewPage Port Hawkesbury Corp. plans to use funds arising from its Settlement and Transition Agreement to continue a "hot idle" at the mill and preserve the value of its assets while it continues discussions with potential buyers.

The NewPage production portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint, and specialty papers. The company owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin, and Nova Scotia. These mills have a total annual production capacity of approximately 4.1 million tpy of paper, including 2.9 million tpy of coated paper, 1.0 million tpy of uncoated paper, and 200,000 tpy of specialty paper.

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As many as 36 mills across the U.S. and more than 20,000 primary pulp and paper industry jobs would be at risk of elimination due to the costs of implementing the U.S. Environmental Protection Agency's (EPA) pending Boiler MACT and other air regulations, according to a new study by Fisher International, South Norwalk, Conn., USA. These job losses would amount to 18% of the primary pulp and paper industry workforce. The job losses rise to more than 87,000 if supplier and downstream industries are figured into the equation, and those losses would result in about $4 billion in reduced wages and $1.3 billion in lost state, local, and federal taxes (including FICA taxes).

The quantitative study, titled "Economic Impact of Pending Air Regulations on the U.S. Pulp and Paper Industry," was commissioned by the AF&PA, Washington, D.C., as a follow-up to its study released less than a year ago under a similar title. The 2011 update was necessitated by changed EPA proposals.

While the Fisher study focuses on the impact to the pulp and paper industry, the EPA's proposed Boiler MACT rules also set emission limits for boilers and process heaters located at universities, in small municipalities, food product processors, furniture makers, federal facilities, and a wide range of manufacturers. The rule is so stringent that it could create serious disincentives for the use of renewable energy. It is currently being reconsidered by EPA.

The study also looked beyond the possible effect of the proposed Boiler MACT rule to include the entire suite of EPA air regulations. It found 38,060 potential jobs lost in the pulp and paper sector from those cumulative air regulations. Looking again at the additional impact felt along the supply chain and surrounding community, job losses from these regulations could reach as high as 161,755.

The full "Economic Impact of Pending Air Regulations on the U.S. Pulp and Paper Industry" study is available online.

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According to a report in Printed Electronics World (PEW) this past week, Welsh scientists intend to use the latest printing technologies to develop a low cost biosensor capable of diagnosing a range of health conditions. The aim is to place living antibodies into a suitable ink that would then be printed onto a compatible substrate or material to form a disposable sensor, capable of being mass produced at low cost.

As the article explains, antibody based assays are routinely used to detect specific medical conditions, but use of these tests is limited because they need to be carried out in laboratories by highly skilled technicians, which is costly and time consuming. By contrast, a printed array of antibodies speeds up the testing process while reducing the expertise and complexity of equipment needed, introducing the possibility of hand held electronic scanners and much quicker diagnosis. It allows this aspect of patient care to be moved from hospital or laboratory to the GP surgery, releasing expensive hospital resources for other activities. It could also prove invaluable for use in emergency humanitarian situations and in remote areas.

The project is supported by the Welsh Government's Academic Expertise for Business (A4B), an EU funded initiative to stimulate and encourage collaboration between educational institutions and industry. Edwina Hart, Minister for Business, Enterprise, Technology, and Science, said A4B supports the commercial exploitation of new ideas in Wales and in this instance, in the high growth area of medical diagnostics.

"This is a good example of how we can maximize the economic impact of our universities by bringing together world leading expertise in our research centers with the high tech expertise of industry," Hart said in the PEW article.

The industrial collaboration is led by Swansea University's Welsh Centre of Printing and Coating, which is teaming up with the Institute of Life Science and industry. The partnership includes Micropharm, which produces antibodies at its base in Newcastle Emlyn, Abertawe Bro Morgannwg University NHS Trust, and Innovia Films of Cumbria, which will provide advice on the choice of substrate and materials.

Professor Tim Claypole, who is leading the research, said the project is at the forefront of international research and represents a major advance in the printing of biomedical sensors. "It builds on previous research on the printing of functional materials, but is a completely novel application that would not progress without the support of Welsh Government funds. The availability of low cost, disposable sensor technology is a core requirement for the early diagnosis of disease. The use of antibodies as sensors targeted to detect specific human conditions is regarded as one of the next major advances in health care.

"Volume printing is also the most practical method to achieve low cost disposable sensor technology. This will take innovation from the bench to the bedside and develop the tools and technologies to move the process of diagnosis forward and bring it into the surgery and home," Professor Claypole explained in the PEW report. The initial focus will be developing a proof of concept device that will open opportunities to develop antibody sensors

In the photo on the right, Professor Tim Claypole (left) and Dr Chris Phillips, Senior Research Officer, at Swansea University in Wales, U.K., compare a printed array with a multi-well plate that is currently used.

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The Dissolving Pulp Forum at this year's TAPPI PEERS Conference, October 2 -5, at the Oregon Convention Center in Portland, Ore., USA, examines the still-evolving specialty cellulose "gold rush" from three basic perspectives. Following a Sunday afternoon (October 2) opening presentation by global consultants, The dp Group, on latest process developments and technologies worldwide, suppliers including Andritz and Metso, will explore systems approaches being used in several major conversion and expansion projects underway around the world. Jacobs Engineering then examines options, directions, and considerations for companies evaluating dissolving pulp production. The Sunday sessions are capped by a special panel session with seven experts in the arena, including speakers from the earlier sessions. This discussion session responds to specific, submitted questions and comments from the attendee audience.

On Monday morning (October 3), the Forum shifts focus with a special bridge session into the main PEERS program that looks at current market developments around the world and the developing outlook for dissolving pulp production and demand for the next two to three years. During this session, RISI and Poyry International will examine the dissolving pulp "path" into the foreseeable future and explore forces likely to control progress as well as setbacks along the way, including recent successes as well as failures of global cotton crops.

More information, including registration, is available online for the Dissolving Pulp Forum and 2011 PEERS, as well at the 2011 International Pulp Bleaching Conference being held at the Oregon Convention Center immediately following PEERS, on October 5-7.

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The TAPPI NETInc Innovative Nonwovens Conference being held September 13 - 15 at the Hyatt Regency, Atlanta, Ga., brings together the industry's top experts from its manufacturing and supplier sides as well as academia, R&D, and marketing to share breakthroughs in technology, emerging developments, and trends on the global horizon. This is the only event worldwide designed, developed, and conducted exclusively by movers and shakers in the fast-moving nonwovens arena. The program concept, session topics, and selection of speakers have been determined and hand-picked on a peer-reviewed basis by a special committee of worldwide nonwovens experts. NETInc is a one-of-a-kind, can't-miss exploration of the current and future direction of nonwovens and the complex dynamics shaping its unfolding destiny.

Organized into 13 sessions, NETInc begins with a special Filtration Tutorial (included in conference registration) on Tuesday afternoon, September 13, that examines methods and approaches to understanding and predicting air resistance and particle capture efficiency in fibrous webs. Following this tutorial, the event's opening keynote session includes presentation of the TAPPI NET Division's Innovation in Nonwovens Award to Dr. Anthony Atala from Wake Forest Baptist Medical Center for his work using nonwoven scaffolds for regenerative medicine. Dr. Atala will then discuss his work and provide his view of the future of nonwovens in the medical area.

The Markets Trends & Analysis session following the Innovation in Nonwovens award and keynote address takes an in-depth look into the raw materials world of nonwovens and developing trends in the global disposable diaper marketplace. Alex Lidback of HIS provides an up-to-the minute forecast and outlook for a broad range of raw materials, while Carlos Richer of Richer Investment reports on emerging diaper markets and how they compare with developed markets.

Session 8 on Wednesday afternoon, September 14, focuses on evolving nonwovens developments and applications in the medical sector. Idris Cerkez and Royall Broughton of Auburn University will present a new, inexpensive, and practical way of creating multi-functional (antimicrobial and durable press) cotton fabrics. Wan-Ju Li, John Barber, and Andrew Handorf of the University of Wisconsin-Madison then discuss a new study on "Braiding Electrospun Nanofibers for Tendon/Ligament Tissue Engineering." This study centers on the successful fabrication of a new tissue engineered scaffold that has favorable biological and mechanical properties for tendon/ligament tissue engineering. These braided nanofibrous scaffolds are able to enhance cell activities and matrix production in bioreactor culture. Rounding out the medical session, Elizabeth Loboa of North Carolina State University looks at scaffold based strategies for functional bone tissue engineering that involve the use of three-dimensional, biocompatible, biodegradable structures to provide an adequate template for ex vivo cell expansion and maturation, native tissue ingrowth, and restoration of the original tissue qualities with respect to bone's biochemical constituents, morphology, form, and function. Her presentation focuses specifically on the creation and use of nanofibrous and nanocomposite nonwoven scaffolds.

Session 11 on Thursday afternoon, September 15, provides an up-close examination of two new emerging technologies now on the nonwovens applications stage. Dr. Behnam Pourdeyhim of North Carolina State University" describes "A New Generation of Splittable Fibers for Technical Applications." According to Dr. Pourdeyhim, a new core modified trilobal fiber has been developed that allows the formation of unique micro-denier structures with enhanced tear, breathability, durability, and hand. These structures, he notes, open new possibilities for nonwovens in durable applications. Mohit Ajitkumar Raina of the Institut Fur Textiltechnik reports on new applications of nonwovens in the automotive sector, including a di-electric measuring system for determining the distribution of fiber in a multi-component nonwoven structure. With this system, he says, it is possible to judge the localized homogeneity of a nonwoven fabric. Another automotive application is an algorithm for image processing. Processed images of nonwoven structures allow determination of the percentage of thick and thin areas and the unevenness coefficient. The rising quality demands of the automotive industry necessitate online measuring systems, Raina notes.

More information on these and other sessions and activities at NetInc 2011, including online registration, is available on the event website.

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Pulp prices could come under further pressure in September, according to Mark Wilde, senior analyst with Deutsche Bank. July pulp data was weaker-than-expected, he notes. Inventories rose by five days of supply to 39 days. August North American NBSK (northern bleached softwood kraft) list price was at $990/metric ton. "We've received reports of U.S. spot NBSK deals in the mid-$700s. In China, we're hearing reports of some pick-up in demand. North American and European producers have not yet announced September prices. But with the latest data, the bias is on the downside. In China, Arauco has announced flat prices for September and Ilim has announced a $40/metric ton increase," Wilde reports.

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U.S. uncoated free sheet (UFS) demand also remains weak, Wilde reports, noting that AF&PA data show July shipments falling 4.7% y/y (YTD -2.8% y/y). Inventories, he adds, are rising: +5.3% m/m. In August, repro-bond estimated prices rose $5 - $10/ton to $1,085 - $1,135/ton, -0.9% y/y. So far, producers have implemented $35 - $40/ton out of the $60/ton June 1 price hike. Pricing has been aided by supply cuts, lower inventories, and favorable trade flows. Offset estimated prices fell $10/ton to $935 - $955/ton, +0.5% y/y. With the August decline, producers have been able to implement only $15 of a $40/ton April 1 price hike. Looking ahead, the state of the economy and extent of pulp price declines are apt to be key issues for UFS prices.

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U.S. uncoated groundwood demand also is weak, Wilde continues, noting that, as per AF&PA, July shipments were down 10.8% y/y (YTD -8.8% y/y). Inventories are rising: +3.2% m/m. August estimated prices for directory papers were flat at $790- $810/ton, +8.1% y/y. In July, estimated prices rose ˜$70/ton. August 35-lb offset estimated prices were also flat at $680 - $720/ton, +6.1% y/y. Supercalendered prices increased by ˜$5/ton.

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Newsprint demand in North America remains very anemic, Wilde reports. According to the NAA, consumption by U.S. dailies fell 16.6% y/y in July and was -15.6% y/y in June. Citing the strong Canadian dollar, NewPage announced plans to close its 190,000 tpy newsprint PM 1 at Port Hawkesbury, Nova Scotia on September 10. With demand continuing to slip, the closure is unlikely to have much impact on newsprint demand and supply. August estimated 30-lb prices in the East were flat at $640/metric ton. Producers have been focusing on exports. Even so, a strong Canadian dollar (big issue for Canadian mills) and rising inputs are squeezing margins, Wilde notes.

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AbitibiBowater, Montreal, Que., Canada, has received Forest Stewardship Council (FSC) certification for the Black Spruce and Dog River-Matawin Forest areas, north of Thunder Bay, Ont. This area covers approximately 2.5 million hectares of forest stretching from Lake Nipigon to Quetico Provincial Park.

The FSC certification process took more than a year to complete and the certification audit entailed four auditors interviewing stakeholders including local citizens committees, community leaders, First Nations communities, and various forest contractors working in the region. The two forest regions were certified by the SmartWood Program of the Rainforest Alliance using the National Boreal Standard of FSC. The certificate (FSC-C107523) is valid for five years subject to the annual Surveillance audits.

AbitibiBowater and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing the three pillars of sustainability linked to human activities: economic, social, and environmental.

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Domtar Corp., Montreal, Que., Canada, this past week completed its acquisition of Attends Healthcare Inc. from KPS Capital Partners, L.P. for $315 million, pursuant to a definitive agreement entered into on August 12. Attends produces a complete line of incontinence care products and washcloths marketed primarily under the Attends brand name. The management team of Attends will remain in place, and the acquired business will be presented as a reportable segment in Domtar's financial statements.

Attends has a wide product offering encompassing more than 170 SKUs, and it serves a diversified customer base in multiple channels throughout the U.S. and Canada. It operates a 775,000 sq ft facility with nine production lines and a state-of-the-art distribution center in Greenville, N.C. Attends had approximately 330 employees, annual sales of approximately $200 million, and an estimated run-rate EBITDA of $39 million.

"This is a good transaction that allows us to take measured steps into the consumer products market in a product area where high single-digit global growth is expected," said John D. Williams, president and CEO of Domtar. "We believe there is the potential to double Attends' earnings within five years and we are committed to unleashing the great organic growth potential. With this acquisition, we will consume internally some of our high quality Lighthouse fluff pulp produced in our nearby Plymouth, N.C., mill. Domtar will continue to look for innovative ways to build growing businesses based on sustainable wood fiber."

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Fortress Paper Ltd., Vancouver, B.C., Canada, this week reported that construction to convert its Quebec, Canada, specialty cellulose mill from a NBHK (northern bleached hardwood kraft) pulp operation to dissolving pulp is proceeding substantially on schedule. However, due to rescheduling of the delivery and installation of specialized equipment, the enhancement of certain processes, and other ancillary matters, the company has decided to marginally delay mill shutdown to make tie-ins and upgrades on existing equipment. Accordingly, production of dissolving pulp is now scheduled to commence in early November. The company believes that enhancements to certain processes will provide for a smoother startup and ramp up to full production capacity.

Deferment of dissolving pulp production is partially mitigated by the mill's existing production of specialty pulp, which yields a higher margin compared with NBHK pulp. This specialty pulp is manufactured in strict accordance with certain technical specifications requested by the company's customers. The company believes that the extensive development and training required to achieve such tolerances will better position the mill for a more efficient transition to dissolving pulp production later this year.

Fortress is a global producer of security and other specialty papers and products. The company operates three mills—the Landqart Mill in Switzerland, the Dresden Mill in Germany, and the Fortress Specialty Cellulose Mill in Quebec. The company's security papers include banknote, passport, and visa papers and its specialty papers include non-woven wallpaper base products, graphic, and technical papers. Fortress' pulp business includes specialty pulp produced at the Quebec mill.

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Swiss company Perlen Papier AG has signed a service agreement with Voith Paper Automation, Germany, for the automation components of its PM 4 and PM 7 in Perlen, Switzerland. Voith already had a service agreement with Perlen Papier for the PM 4 quality control system since 2004. The new PM 7 went online in September 2010. The machine, which is working at full capacity, is expected to produce 300,000 metric tpy of newsprint this year.

Following the final acceptance inspection of PM 7, the two companies are now going one step further in signing the service agreement effective the beginning of this month. PM 7 will have a complete Voith automation package that covers the recovered paper preparation, the paper machine and winder, as well as the packing and transport.

Dirk Breuer, technical director at Perlen Papier, explains why Perlen is relying on external service support when it has a very experienced and well-trained maintenance team on site. "The automation in a paper machine is becoming increasingly complex. This is why we need experts to provide us with professional support. And in Voith we have found the perfect partner to rely on."

The agreement includes a remote diagnostic service of the automation system. A Voith service technician logs into the Perlen system via an online connection to check the current status and if necessary eliminate malfunctions or carry out optimizations. In addition, the Emergency on Call service module provides a 24-hr/7-day standby service by Voith's service team with a contractually guaranteed response time. This ensures that Perlen Papier's maintenance team gets fast, direct support.

The service agreement also stipulates preventive maintenance schedules. Thus, the automation components MCS and DCS including system technology, and the quality control system with scanners, actuators, and controls are checked. The downstream processes at the winder or packaging system are also monitored and constantly improved by the Voith service technicians.

Perlen Papier AG was founded in 1873 and is a key manufacturer of magazine paper and newsprint in Switzerland. In 2010 the family-owned company had a workforce of 381 and posted a net turnover of EUR 182 million.

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Pöyry, Finland, this week released its Green Mill Index for analyzing the environmental sustainability of pulp and paper mills. The index represents the relations of different indicators and overall environmental performance of a mill. The analysis can be used, for example, to measure environmental sustainability, as a benchmarking or due diligence tool, or as a means of pinpointing weak areas that need performance improvements.

"In many companies, sustainability is connected to the company principles and needs to be communicated to various stakeholders. Currently there are no standards available that put all of the relevant factors together in a way that gives a comprehensive overview. The Green Mill Index was developed to fill this need," Päivi Käki, a technology specialist at Pöyry, explains.

"Thinking green is not only good for the environment," Käki continues, "it can also provide improvements in efficiency that have a direct impact on the bottom line. By seeing the full picture, you can understand what areas to target."

Many of the indicators used in Pöyry's Green Mill Index are based on European Commission standards for best available technology, known as BAT levels. For example, the Green Mill indicators for emissions and efficiency refer to the BAT levels. Other indicators are based on actual statistical data collected from several mills.

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SCA, Sweden, is acquiring the Brazilian hygiene products company Pro Descart for SEK 450 million on a debt-free basis. Pro Descart has annual sales of SEK 360 million. SCA notes that Brazil is the most highly populated country in South America, with 190 million inhabitants and a favorable economic growth, adding that the market for hygiene products has a good growth potential, especially for incontinence care products, having shown double digit growth.

Pro Descart is a family-owned company focused on incontinence care products, but also sells baby diapers and wet wipes. The company, with approximately 400 employees, has manufacturing facilities in the Sao Paulo area.

"I am very happy that we are now establishing ourselves in Brazil, which is also of strategic significance," said Jan Johansson, president and CEO of SCA. "We have for some time worked on finding the right solution for entering this important, emerging market. With this acquisition of Pro Descart, we now have a presence throughout Latin America."

Johansson added that "Pro Descart has a number two position in Brazil's incontinence care market. In view of the fact that SCA is the world leader within incontinence protection with its TENA brand, we have good opportunities to develop our new Brazilian operation."

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SCA, Sweden, reports that it will invest SEK 460 million in a tissue machine upgrade in the U.S. The company also has decided to rebuild a paper machine in Sweden for the manufacture of improved newsprint, an investment totaling SEK 350 million.

The existing U.S. tissue machine, not identified by SCA, has a capacity of 70,000 metric tpy, which will remain unchanged. Production is estimated to commence during late 2012 or early 2013.

The newsprint machine in Ortviken, Sundsvall, will be rebuilt to allow production of improved newsprint. The machine's capacity is currently 245,000 metric tpy, which will increase marginally since it is possible to produce higher density paper at the same speed. At the same time, capacity for pulp bleaching and water treatment will increase. The rebuilt machine in Ortviken will startup during the third quarter of 2012.

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Södra, Sweden, this week reported that it is creating a new unit for the group functions of purchasing, productivity, and logistics. A new Södra-wide logistics function, Södra Logistics, is being formed with a view to guaranteeing added value from logistics across the entire Södra group.

Oskar Karlsson will take over as the new director of purchasing, effective September 15, and recruitment of a head of logistics is set to commence immediately. There will be no changes in productivity. The heads of the three areas (Purchasing, Logistics, and Productivity) will be reporting to Beatrice Kämpe Nikolausson, who will be the director of the new collective unit.

More in-depth charting of existing logistics operations will take place over the autumn, before the future organizational structure for Södra Logistics is decided. Staff will be allocated to the new function in the spring of 2012. Operational responsibility for call-offs, receiving, and loading will remain with the relevant business areas.

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Stora Enso Sachsen, Germany, has ordered from Voith Paper, Germany, the rebuild of its Eilenburg PM 1. PM 1 produces newsprint and telephone directory paper in a basis-weight range of 34 - 48.8 gsm from 100% recovered paper.

The rebuild includes the former, press, dryer section, as well as calender and air system. A new NipcoFlex press will be installed and the existing calender will be rebuilt to a Janus calender by reusing some of the existing components.

The PM 1 project goal is to improve Stora Enso Sachsen's paper quality as well as runnability. Additionally, the operating speed of the production line will increase to 2,000 m/min. The rebuild is scheduled for May 2012.

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For its greenfield pulp mill project in Brazil, Suzano Papel e Celulose has contracted Engineering, Procurement and Construction Management (EPCM) services for the Balance of Plant (BOP), and the Owners' Engineering services during the project implementation to Pöyry's Industry Business Group (Finland). The value of the assignment was not disclosed.

The capacity of the new state-of-the-art pulp mill will be 1.5 million metric tpy, and startup of the project is planned for the third quarter of 2013.

Pöyry has been involved in the project since April 2009 when Suzano awarded it a contract for conceptual and environmental studies. In March 2010, Pöyry was also awarded pre-engineering and preparatory work for the mill infrastructure.

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Cascades, Kingsey Falls, Que., Canada, and its partners, La Caisse de dépôt et placement du Québec, Jamestown Container, and another industry partner, yesterday (September 7) conducted the official groundbreaking for its Greenpac Mill LLC, a new state of the art containerboard mill in Niagara Falls, N.Y., USA. The ceremony was attended by Niagara Falls Mayor Paul Dyster; Sam Hoyt, ESD SVP for Regional Economic Development; Cascades' founders Bernard, Laurent, and Alain Lemaire; and Marc-André Dépin, president and CEO of Norampac.

Greenpac will be constructed for a total cost of $430 million and will manufacture a lightweight linerboard, made with 100% recycled fibers, on a single machine having a width of 328 in. (8.33 meters) with a production capacity of 540,000 short tpy. The building and the machinery will be designed for optimal energy efficiency and many operations will be automated. Also, process water will be treated and reused to reduce consumption as much as possible, and a state of the art management system will be used for recycled fibers.

The paper machine will be manufactured by Metso, Finland. Voith, Germany, will provide the stock preparation equipment and anaerobic effluent treatment plant, and Siemens will provide the power and control technology. MiniMill Technologies, Inc. (MMT) has been chosen to support Norampac and its partners in the project management.

"Greenpac is the result of a close collaboration between Norampac and its partners, and its realization symbolizes the beginning of a new era for our company and our industry. Through Greenpac, Norampac will be able to offer high performance and innovative products that will better respond to the growing demand for lightweight packaging," Dépin noted.

Alain Lemaire added that "furthermore, this investment is consistent with our development strategy, which aims at positioning the company among the leaders in terms of productivity and profitability in the packaging and tissue sectors."

Cascades points out that construction of the Greenpac mill has been made possible by financial participation of several organizations in New York State, such as the Empire State Development, the Buffalo Niagara Enterprise, and other local partners, which have established favorable economic conditions for the creation of the new company. Greenpac has been granted $60 million in brownfield tax credits administered by the New York State Department of Taxation and Finance, and $9 million were granted in Empire Zone tax credits. In addition, the New York State Energy Research and Development Authority (NYSERDA) provided a $3.7 million incentive through its Industrial and Process Efficiency Program to purchase and install energy efficient process and support systems. Finally, 10 MW of low-cost power have been granted by New York Power Authority (NYPA).

President, CEO, and Commissioner of Empire State Development Kenneth Adams said that "under the leadership of Governor Cuomo, Empire State Development is working steadfastly to improve New York's business climate, support new investments in our economy and drive private sector job growth. The decision by Norampac to build a new facility in Niagara Falls is just another example that New York is truly 'Open for Business.' I commend the numerous state and local partners who contributed to the advancement of this project, and congratulate Norampac on its continuing success in the region."

Construction will last until 2013 and allow the creation of more than 300 jobs, mostly in the region, between 2011 and 2013. The new mill will have a total surface area of 300,000 sq. ft. and will allow the creation of 108 jobs in New York State at startup, planned for the summer of 2013.

Norampac owns 37 facilities manufacturing and converting corrugated products and folding cartons in North America, including one medium containerboard mill and three corrugated conversion plants in the State of New York.

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Huhtamäki Oyj, Finland, has acquired the assets and business of Paris Packaging Inc., a manufacturer of specialty folding cartons in the U.S., for a purchase price of EUR 22.8 million ($32.5 million). Paris Packaging, owned by 21st Packaging Holding, employs some 300 people at three manufacturing units in Paris, Texas, Andalusia, Ala., and Hopkinsville, Ky. It had net sales in 2010 of EUR 43 million ($62 million).

"This acquisition is an example of the quality growth Huhtamaki is focused on as we leverage our solid financial position to become even more competitive," says Jukka Moisio, CEO of Huhtamäki Oyj.

"We are pleased to have acquired such a high quality business," adds Clay Dunn, EVP North America, Huhtamäki. "The addition of a new specialty folding carton product platform complements our existing offering of tableware, cups, containers, carriers, trays, and service ware, and demonstrates our commitment to growth in North America."

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Smart Papers, Hamilton, Ohio, USA, reports that its Kromekote Label 60-lb. IN-fusion premium lightweight cast-coated label and packaging papers are now RIT certified to run on HP Indigo WS4050, WS4500, and WS6000 label and packaging presses. Kromekote cast gloss is the first lightweight cast-coated paper to be performance certified by RIT for use on HP Indigo narrow web presses. The newly certified products are Kromekote Label for cut and stack glue-applied labels as well as Kromekote Label Converting for pressure-sensitive label applications.

Smart Papers produces digital printing papers guaranteed to run on all major digital print engines including those by HP, Xerox, Kodak, Canon, Epson, Oce, and Ricoh. Mohawk Fine Papers is the marketer of Smart Papers products including Kromekote, Knightkote Matte, and Smart Digital premium coated papers through the North American paper merchant channel.

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Stora Enso's Barcelona Mill in Spain reports to have started up its new, award-winning recycling process September 6. The mill processes used beverage cartons from several European countries.

Stora Enso's Barcelona Mill receives used milk and juice cartons from Spain, France, Portugal, and the U.K. The new recycling process enables full recovery of all of the materials used in the beverage cartons, including the fiber, plastic, and aluminum.

"The innovation is that we are now able to recycle all of the constituent parts of beverage cartons," says Håkan Molden, VP Carton Board at Stora Enso Packaging. "The fact that we are able to fully recycle the cartons means less waste going to landfill. It is good for the environment and the climate. It also makes great business sense as we are able to recover usable materials and recycle them into energy and new products."

The plastic-aluminum laminate from recovered beverage cartons is separated by the mill's new processing technology, thus enabling both fiber and aluminum to be fully reused and the plastic to be utilized to generate energy in the mill. The recovered fiber is used for the production of white lined chipboard at Stora Enso's Barcelona Mill.

The process is based on pyrolysis, i.e. heating up the material in the absence of oxygen. This makes the long chains of polyethylene divide into gases and light oils, while the aluminum remains un-oxidized and can be recycled and re-melted without problems. This is the first use of pyrolysis to separate plastic and aluminum.

The process was refined in collaboration by Stora Enso's Barcelona Mill and Alucha Recycling Technologies. The innovation was selected as a winner of the 2010 "Best of the Best" LIFE Environment Projects award, granted by the European Union to recognize projects that have a positive impact on the environment.

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Tetra Pak, Lusanne, Switzerland, this week launched its latest intelligent cleaning-in-place (CIP) Tetra Alcip system. The company notes that, featuring a new automation platform, the Tetra Alcip improves accuracy over alternatives and reduces the risk of human error, helping food and beverage producers achieve uncompromising levels of food safety at lower environmental and operating cost.

"Tetra Alcip gives customers complete control of CIP to deliver perfect cleaning results, reduced environmental impact, and enhanced food safety," said Paul Wirtz, managing director, Tetra Pak Dairy & Beverage Systems AB. "Thanks to Tetra Pak's deep knowledge in cleaning technology and a patented automation structure, the new Tetra Alcip unit is now more intelligent and safer than ever."

The new intelligent automation platform continuously adjusts operation to deliver the highest performance levels. It uses the optimum amounts of water and detergent for the exact time needed, cutting water usage by up to 21% and detergent use by up to 7%, reducing both environmental impact and cost.

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Kemira, Finland, reports that it will increase prices for hydrogen peroxide products in EMEA (Europe, the Middle East, and Africa) by 15% - 25%. The increase will be effective immediately or as specific contract terms allow.

Kemira notes that while it continues to take actions to minimize the impact of escalating raw material costs, it is necessary to adjust pricing to compensate for the increased costs of raw materials, energy costs, and freight costs.

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Metsä-Botnia, Finland, reports that it is partnering in a feasibility study with energy companies Gasum and Helsingin Energia of Finland to construct a biorefinery for biogas production in Joutseno, southeastern Finland. If constructed, the biorefinery would produce biogas from renewable wood raw material for transmission to sites such as Helsinki Energy's Vuosaari power plant via the Finnish natural gas network.

According to the preliminary plan, Metsä-Botnia and its parent company Metsäliitto would be responsible for wood raw material procurement and biorefinery operation. The plan is to mainly produce biogas from forest chips and bark, both of which are available as by-products of pulp mill wood procurement. Production capacity of the planned refinery would be as high as 200 MW.

"Joutseno is a logistically excellent location for a biorefinery that produces biogas. The raw material supply chain is already in place and our pulp mill is already connected to the natural gas transmission network," said Ilkka Hämälä, president and CEO of Metsä-Botnia.

The planned biorefinery would gasify wood chips and refine them into at least 95% methane. The composition of the end product would therefore correspond to that of natural gas. According to the plan, Gasum would take care of biogas injection into the gas network and distribution to gas users.

The companies are launching a feasibility study into the technical concept and business operating model of the biorefinery. The aim is to complete the information required for a possible investment decision by 2013. The construction of the refinery will take two to three years from the go-ahead decision.

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James W. (Jim) Alexander has been promoted, from COO to president and COO of Container Graphics Corp., Cary, N.C., USA. Neil B. Saunders is passing on the role of president and remains the company's chairman and CEO.

Alexander has been COO of Container Graphics for the past nine years and "has done an excellent job," Saunders noted. "His promotion to president reflects my and the board of directors' continued confidence in his leadership. My title is being shortened, from president and CEO, to CEO. I look forward to working with Jim and his team for many years to come."

Alexander started with Container Graphics in 1976, and was most recently promoted to COO in 2002. Container Graphics is one of the world's largest manufacturers of printing plates and cutting dies for corrugated packaging production. The company operates 17 facilities worldwide.

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Register before September 9 to attend the TAPPI PEERS Conference (October 2-5, 2011 in Portland, Oregon) and benefit from the integration of both management and technical topics. At PEERS, you'll gain a better understanding how of the entire mill process works together – helping you Optimize the Lean Green Machine. Learn more about the program.

At PEERS, you'll discover and explore mill-proven routes to higher efficiency in the Practical Mill Engineering sessions, attend training workshops, network and share solutions, and see the latest products and services available to the marketplace. Program highlights include: Keynote Speaker Miles P. Drake from Weyerhaeuser; Dissolving Pulp Forum; Pumped Systems Assessment Workshop; Sustainability Sessions and more.

Learn more about the TAPPI PEERS Conference

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For the last several years, TAPPI member Hannu Melarti has been leading the charge to instill what he calls a Silicon Valley-type focus in the Paper & Pulp industry. He advocates unleashing employee creativity and then stepping back to see what new heights they can take your company, and the industry to. A guest speaker at PaperCon08, he also sings the praises of social media, saying it holds the power to engage the new, younger workforce now entering the market in ways the industry could not do before.

In 2010, he initiated and participated in a TAPPI taskforce with the objective to analyze and recommend how social media could be used to reinvigorate the industry and to bring back the excitement that characterized it in the early days. "I strongly believe that social media will be a very important tool in bringing sexy back," he says. 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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No matter where you work in the paper industry, you are likely to have been asked about sustainability issues and how they relate to your area of expertise. If not, you are probably still aware of the importance of sustainability. Sustainability covers a wide range of topics, many with significant economic impacts. Are you aware of your customer's concerns around sustainability? Do you have all of the information that you need around these issues?

In an effort to provide TAPPI members and the broader community with pertinent and timely information about sustainability issues, TAPPI invites you to complete this short survey (< 20 questions).

This survey asks you to rank the importance of several sustainability topics – from forest certification, LCAs, global reporting, and the best use of recycled fiber. This survey was created by the Technical Program Committee for TAPPI's 2012 Sustainability Forum, taking place during PaperCon 2012. Committee members Craig Liska (Verso Paper), Laura Thompson (Sappi Fine Paper North America) and Lela Gerald (Buckman International), all experts in sustainability, want to develop topics that bring you the information on sustainability that you and your customers want. Results from this survey will also be used to guide the development of webinars and other information sharing activities on sustainability topics.

Pass this along! Ask your colleagues, your customers, and your suppliers to complete the survey – sustainability impacts the entire supply chain.

Results from this survey will be shared with TAPPI members. If you aren't a member, join so that you can see what our industry wants to know about sustainability. Learn more about joining TAPPI.

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The PTS Pulp Symposium will be held November 22-23, 2011 in Dresden. A highlight of the symposium will be discussions focusing on pulp applications in end products including specialty papers, and high-quality graphic papers and packaging papers.

Besides paper, the symposium will also focus on wood fibre composites and entirely new fibre-based products with specific properties. Other topics to be covered include nanotechnology and software-supported methods and models that will become key technologies in efficiently fine-tuning the supply of pulp to meet required product properties.

The conference will appeal to a wide range of companies and industry sectors including:

• pulp and paper mill production
• pulp trade
• chemical suppliers
• plant and equipment manufacturing and related industrial sectors
• suppliers of alternative fibres and fibre-based raw materials;
• engineers and developers involved with the production of composite materials
• converters and suppliers of fibre-based products
• market research and procurement of fibrous raw materials staff
• universities and research institutes

More information

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Save thousands with the TAPPI PEERS Conference Mill Discount Program

TAPPI is offering a special discount for pulp and paper mills and their corporate offices to attend the 2011 PEERS Conference - allowing an unlimited number from your mill or office to attend for one day, one hour, or just drop in to see the exhibit area for one flat fee.

Why is attending important? With the role and scope of mill-based engineering changing and spending for infrastructure modernization and expansion decreasing, today's mills are focused on maintenance to extend the operational life and safety of existing systems.

Attend TAPPI PEERS and you and your team can learn, discover and explore mill-proven routes to higher efficiency in the Practical Mill Engineering sessions, attend training workshops, network and share solutions, and see the latest products and services available to the marketplace. Program highlights include: Keynote Speaker Miles P. Drake from Weyerhaeuser; Dissolving Pulp Forum; Pumped Systems Assessment Workshop; Sustainability Sessions and more. Learn more about the TAPPI PEERS Conference.

To learn more about the Mill Discount Program, contact Craig McKinney cmckinney@tappi.org at +1.770.446.7294.

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On November 8-11, the 2011 PTS Environment Symposium will be held in Munich, Germany. The event will provide a  comprehensive three-day program providing discussing new developments in the area of water, waste water and energy.

The PTS Environment Symposium, with simultaneous translation into German/English, is a meeting point for the pulp and paper industry and its suppliers to discuss issues of water, energy, air, waste and environmental law. Speakers will provide insight into current trends, convey comprehensive information and report on the latest findings and developments in science and the industry. Make contact with potential partners, get informed and form your own opinion by discussing the topics with renowned experts.

Topics covered during the first day include ecological relevance and sustainability, safety of paper products and related topics. The second day of the symposium is devoted to wastewater as a resource, mill experiences, safe plant operation, new aspects in biology and use of additives. Presentations on day three focus on political and legal framework conditions and on technical options for reducing energy costs.

The conference is targeted at managers, specialists and executive staff of the pulp and paper sector and its related industries whose central task is to reduce environmental impacts and minimize the outlays required for these areas. The program is designed to be of intertest to staff  responsible for energy issues and environmental experts focusing on water protection and emission control, waste management officers, technical specialists and executives (plant, operations and production managers). In addition, engineering and consultancy firms, plant engineering and construction companies and chemical suppliers will find the program and networking opportunities to be of great interest and value..

For More Information

 

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Having the chance to learn from a true expert and discuss best practices in mill and plant safety on a casual Wednesday afternoon doesn't happen too often, unless you're a TAPPI Young Professional member. On August 17th , the TAPPI Young Professionals (YP) Committee held its usual monthly call only this time with an extra bonus. The committee was joined by Chris Redfearn, past president of the Pulp and Paper Safety Association (PPSA) and current Director of Health & Safety Technical Services with Weyerhaeuser Company, who helped discuss Best Practices in Safety, a hot topic voted on previously by the YP Committee.

To start the discussion, each member took turns describing what they do and what role safety plays in their work environment. A couple of issues shared by the majority were improving safety culture and sustaining safe work practices. Other discussion topics included:

• Tips for YP's entering the work environment to build a good safety foundation
• Safety investigations and audits
• Demonstrating safety leadership in positive and effective ways
• Tips to help mills and plants become accident free
• Transitioning from compliance based safety management to a caring approach.

All together the call was very informative and beneficial to YP Committee members, who are looking forward to next month's call. Ideas for hot topics are gladly welcome as are newcomers! To join our next call (Wednesday, September 14th 3:00pm EST), please contact Libby Settle (lsettle@tappi.org). The YP Committee has many exciting projects underway such as YP networking events, putting together YP sessions to be presented at TAPPI conferences, forming a mentoring group, and implementing more of these great YP hot topic experiences! Find out more about the TAPPI Young Professionals and the Pulp and Paper Safety Association.

 

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