Economic activity in the U.S. manufacturing sector expanded in October for the 27th consecutive month, and the overall economy grew for the 29th consecutive month, according to U.S. supply executives in the latest Manufacturing ISM Report on Business. The report was issued this week by Bradley J. Holcomb, chair of the Institute for Supply Management (Tempe, Ariz., USA) Manufacturing Business Survey Committee.

The PMI registered 50.8%, a decrease of 0.8 percentage point from September's reading of 51.6%, indicating expansion in the manufacturing sector for the 27th consecutive month. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

Of the 18 manufacturing industries, eight are reporting growth in October, in the following order: computer and electronic products; petroleum and coal products; food, beverage and tobacco products; nonmetallic mineral products; primary metals; fabricated metal products; paper products; and machinery. The six industries reporting contraction in October (listed in order) are: plastics and rubber products; chemical products; apparel, leather, and allied products; printing and related support activities; electrical equipment, appliances and components; and miscellaneous manufacturing.

The New Orders Index increased 2.8 percentage points from September to 52.4%, indicating a return to growth after three months of contraction. The Prices Index, at 41%, dropped 15 percentage points, and is below the 50% mark for the first time since May 2009 when it registered 43.5%. Inventories decreased to 46.7%, which is 5.3 percentage points below the September reading of 52%. Comments from respondents are mixed, indicating positive relief from raw materials pricing and continuing strength in a few industries, but there is also more concern and caution about growth in this uncertain economy.

The eight industries reporting growth in new orders in October (listed in order) are: petroleum and coal products; nonmetallic mineral products; plastics and rubber products; computer and electronic products; primary metals; electrical equipment, appliances, and components; food, beverage, and tobacco products; and miscellaneous manufacturing. The nine industries reporting decreases in new orders in October (listed in order) are: wood products; textile mills; chemical products; furniture and related products; printing and related support activities; paper products; transportation equipment; machinery; and apparel, leather, and allied products.

ISM's Production Index registered 50.1% in October, which is a decrease of 1.1 percentage points compared with the September reading of 51.2%, and indicates growth for the second consecutive month. An index above 51%, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.

The eight industries reporting growth in production during October (listed in order) are: wood products; primary metals; nonmetallic mineral products; food, beverage, and tobacco products; fabricated metal products; paper products; computer and electronic products; and miscellaneous manufacturing. The nine industries reporting a decrease in production in October (listed in order) are: plastics and rubber products; textile mills; furniture and related products; printing and related support activities; electrical equipment, appliances and components; chemical products; transportation equipment; machinery; and apparel, leather, and allied products.

ISM's Employment Index registered 53.5% in October, which is 0.3 percentage point lower than the 53.8% reported in September. This is the 25th consecutive month the Employment Index has been above 50%.

Of the 18 manufacturing industries, eight reported growth in employment in October in the following order: textile mills; primary metals; fabricated metal products; petroleum and coal products; transportation equipment; paper products; machinery; and computer and electronic products. The six industries reporting a decrease in employment in October (listed in order) are: plastics and rubber products; electrical equipment, appliances and components; miscellaneous manufacturing; chemical products; apparel, leather, and allied products; and food, beverage, and tobacco products.

The Inventories Index registered 46.7% in October, 5.3 percentage points lower than the 52% reported in September. The five industries reporting higher inventories in October are: textile mills; furniture and related products; computer and electronic products; food, beverage and tobacco products; and machinery. The 11 industries reporting decreases in inventories in October (listed in order) are: apparel, leather, and allied products; miscellaneous manufacturing; electrical equipment, appliances, and components; primary metals; chemical products; nonmetallic mineral products; printing and related support activities; transportation equipment; fabricated metal products; plastics and rubber products; and paper products.

More information about this report, including expanded data, is available online.

Back To Top

---

 

International Paper Co., Memphis, Tenn., USA, has committed to use 15% less energy and to reduce its absolute greenhouse gas emissions by 20% by 2020. Using 2010 as a baseline, these goals are the first in a set of comprehensive sustainability goals IP says it will announce in the next six months. The company plans to achieve these reductions by increasing manufacturing efficiencies, exploring new technologies, and engaging employees to find innovative solutions in its operations.

"Our commitment to sustainability spans our 110-year history and these goals are a natural next step in demonstrating that we can make the products that matter to people in a way that matters," said David Kiser, VP, environment, health, safety, and sustainability. "The goals of improving energy efficiency and reducing greenhouse gas emissions go hand-in-hand. Less energy means fewer emissions, and in the last five years we have been able to reduce our energy usage by 12%."

IP announced the goals in conjunction with recent recognition it received from the U.S. Environmental Protection Agency's (EPA) Climate Leaders program for achieving voluntary fossil fuel greenhouse gas emission reductions of more than 40% from 2000 to 2010.

EPA's Climate Leaders program is an industry-government partnership that works to develop comprehensive climate change strategies. Participating companies commit to reduce their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas emissions based on a quality management system, setting aggressive reduction goals, and annually reporting their progress to EPA. Program participants are recognized by the EPA as corporate environmental leaders.

Back To Top

---

 

M-real Corp., Finland, part of the Metsäliitto Group, plans to restructure its coated paper business to achieve an approximate EUR 20 million improvement in annual operating results. Paper production at the company's Husum mill in Sweden will be reorganized. The mill's coated paper capacity will be increased from 285,000 metric tpy to about 340,000 metric tpy without material investments. The reel production of M-real's Äänekoski paper machine in Finland will be transferred to Husum.

The Äänekoski mill's coated fine paper machine will be closed and the sheeting capacity converted fully to folding boxboard sheeting. Statutory negotiations related to the possible closure of paper production and the development of sheeting capacity covering the whole of Äänekoski paper and board mills' personnel of approximately 370 people will begin on November 9. Personnel at the Äänekoski mills will be reduced by 180 maximum.

Currently, the Äänekoski paper mill has one paper machine with an annual capacity of approximately 200,000 metric tons of coated fine paper. After the planned closure of paper production, the paper and board sheeting operations at the site will be combined, increasing folding boxboard sheeting capacity and improving M-real's profitability, the company notes.

In the future, M-real's coated papers will be sold by Sappi Fine Paper Europe. Based on the planned measures, M-real's annual coated paper capacity would be reduced by approximately 145,000 metric tons. Its annual sales would be reduced by some EUR 60 million and its operating result would increase by about EUR 20 million based on the actual performance of coated paper production in the first half of 2011. The full annual financial impact of the planned measures is expected to be seen from 2012 onwards.

"Profitability of coated paper production is very weak due to the worsened market situation and the structural overcapacity in Europe. The situation is not expected to materially improve in the future either, due to which we are planning to reduce our coated paper production and to focus it to our most efficient unit in Husum where M-real has one of the most modern and efficient coated paper production lines in Europe. Husum is one of Europe's largest paper and pulp integrated sites, where productivity has been increased to a very good level thanks to successful improvement measures," says M-real's CEO Mikko Helander.

Back To Top

---

 

Iggesund Paperboard, Sweden, reports that it has earmarked EUR 361 million to transform energy systems at its mills in Iggesund, Sweden, and Workington, England. The company is installing the latest energy technology so that both mills will operate exclusively on biofuel.

"We're increasing efficiency and ensuring our long-term energy supply," explains Guy Mallinson, director of sales to the graphic and packaging sector in Europe. "In this context, it's natural for us to move to bioenergy because there's a risk that fossil fuels will become scarcer and more expensive in the future, not least due to political targets for lower fossil carbon emissions."

When the investments are complete, Iggesund will likely have the two paperboard mills with the lowest fossil carbon emissions in the world. The company notes, however, that so far this biofuel focus has not overtly affected customers' commercial preferences. "We're not seeing that customers are choosing materials based on our environmental work or our low carbon emissions," Mallinson says. "However, major brand owners are insisting on getting information about our carbon footprint, even though they're not yet communicating that information any further. But their interest does indicate that a good environmental record could become a stronger selection criterion in the future."

Iggesund, which sells its flagship product Invercote in more than 100 countries, says it has noticed that the environmental debate differs around the world. "In Britain, people talk almost solely about carbon footprint, in the States the focus is on how much recycled content that companies can mix into their products, while in Asia, people are keen that the origins of raw materials are both documented and environmentally sound," Mallinson says. "But of course, we can't let the current debate in any particular part of the world govern our environmental efforts. We must take a comprehensive, broad-based environmental approach, regardless of what happens to be high profile news in the media yesterday, today, or tomorrow."

Back To Top

---

 

The Paperboard Packaging Council (PPC), Springfield, Mass., USA, has released its annual 2011 Trends: Industry Outlook and Market Data Report, an analysis of what lies ahead for the paperboard packaging industry. The report identifies growth markets and analyzes trends for 17 key market segments of the paperboard packaging industry, including beverages, cereals, dairy, cosmetics, and pharmaceuticals.

End-use markets analyzed in the full 2011 Trends Report include food products, (beverages, cereals/milled grains, confectionery, dairy, dry foods, frozen foods, meat, perishable bakery goods, and retail carry-out foods) as well as non-food products (cosmetics, hardware and household supplies, converted paper products, pharmaceuticals, recreational products, soap and detergent, tobacco, and miscellaneous end-use markets).

According to the report, although the recession is over, consumers are still struggling financially, as is the folding carton industry, whose shipments fell 1% in 2010. Over the last decade, folding carton shipments have lagged about 2% behind overall growth in consumer spending on nondurable goods. Shipments are expected to begin to grow slowly by 2012, and then accelerate heading into 2013 - 14.

To receive a free Trends Summary Report, contact Kim Guarnaccia at (413) 686-9193 or email kim@ppcnet.org.

Back To Top

---

 

Wastepaper prices are under intense pressure, according to Mark Wilde, senior analyst with Deutsche Bank. Reports, he notes, suggest a sharp drop in Chinese demand. Slower demand, tight credit, and inventory reductions are all part of the story, he says, adding that the drops should provide cost relief in the fourth quarter of this year and the first quarter of 2012, but could eventually put pressure on prices.

Back To Top

---

 

In further wastepaper news, the AF&PA, Washington, D.C., USA, reports that total U.S. industry consumption of recovered paper in September was 2.46 million tons, 7% lower than September of last year, and 4% lower than August 2011. The decrease was observed across all grades of recovered paper, most noticeably in pulp substitutes at 10%. Overall, the year-to-date decrease in consumption compared with the same period in 2010 remains around 4%. On the other hand, inventories increased to their highest levels for this year, led by a 12% increase in mixed inventories.

U.S. exports of recovered paper increased slightly in August compared with July. Year-to-date exports in 2011 continue to be 14% higher than last year by volume. Despite growing imports and decreasing consumption, estimated year-to-date recovery (consumption + exports – imports) is 2.6% higher than the same period last year, fueled by consistently strong exports of recovered paper.

Back To Top

---

 

September North American pulp shipments were better-than-expected, Wilde reports, but pulp prices remain under pressure. Key issues, he says, are soft European pulp demand and an uncertain global environment. "We've heard reports of high pulp inventories in China, but these are difficult to substantiate. Canfor's $50/metric ton price cut in NBSK (northern bleached softwood kraft) for China (new level = $790/metric ton) for October underscores weak demand. Canfor had earlier announced flat prices to China for October. We continue to monitor FX movements closely," Wilde says.

Back To Top

---

 

North American containerboard looks like the best bet for "relative" stability, says Wilde. "Even so," he adds, "we are ratcheting down estimates. We are revising our FY12 linerboard and corrugating medium prices to $595/ton and $565/ton, respectively, a $35/ton cut from our earlier forecasts. Compared with Deutsche Bank's estimated FY11 average, we forecast a y/y decline of ˜$45/ton. For the fourth quarter, we're forecasting a modest slippage of ˜$5/ton q/q."

Back To Top

---

 

Wilde says that Deutsche Bank is also trimming its FY12 price forecasts for most North American printing and writing (P&W) paper grades, with the biggest decline in uncoated free sheet (UFS). "We're now forecasting FY12 50-lb offset rolls at $870/ton, -$120/ton relative to our earlier forecast and -$69/ton versus Deutsche Bank's estimated FY11 average.

"FY12 20-lb repro bond is trimmed to $1,035/ton, -$115/ton relative to our earlier forecast and -$56/ton versus our FY11 average. A number of factors are at work. UFS demand remains weak. In August, shipments were down 2.9% y/y (ytd -2.8% y/y). Not surprisingly, there appears to be excess supply in the market. At the same time, falling pulp prices could create some ripples into UFS prices. The recent strengthening of the U.S. dollar against the euro could also pull more imports from Europe," Wilde explains.

Back To Top

---

 

Buckeye Technologies Inc., Memphis, Tenn., USA, will increase high-end specialty wood pulp capacity by 42,000 tons at its Buckeye Florida "Foley" operation. The cost of the project is expected to be approximately $79 million with an anticipated rate of return of 15% to 20%. Engineering and design work is nearing completion, and construction is expected to begin in January, with project startup planned for December. The investment will be funded by cash flow from operations.

Buckeye's Chairman and CEO John Crowe said that "this specialty expansion project will provide much needed high-purity specialty volume for strategic customers in all of our high-end markets, including casings, tire cord, ethers, filtration, micro-crystalline cellulose, and acetate. Additionally, this will improve our overall plant product mix from 42% specialty wood pulp to just over 50% specialty wood pulp, while maintaining the Foley plant's existing total capacity at 465,000 tpy. This is the type of high-return organic growth opportunity that we will continue to target as we allocate our free cash flow to its highest and best use. We believe this project will provide excellent value to our customers and our shareholders."

Back To Top

---

 

Cascades Inc., Kingsey Falls, Que., Canada, has finalized the acquisition of 50% of the shares that it does not hold in its affiliated company Papersource Converting Mill Corp. (Papersource), located in Granby, Que. The amount of the transaction is approximately $60 million.

Papersource is a tissue paper converting plant that manufactures products for the away-from-home market. It employs more than 160 employees. The quality of the equipment in the plant will make it a model plant within the Tissue Group, Cascades noted.

Commenting on the transaction, Suzanne Blanchet, president and CEO of Cascades Tissue Group said that "this plant is at the cutting edge of technology and it will enable us to effectively optimize our production in the northeastern U.S., in Québec, and in Ontario. We anticipate that it will have a positive effect on our profitability. Moreover, I am confident that the arrival of the founder of Papersource, Benoit Laferrière, will be most beneficial for the development of our organization."

Back To Top

---

 

Cascades, Kingsey Falls, Que., Canada, recently received two corporate responsibility awards—Excellence in Corporate Responsibility, awarded by Green Living Enterprises, and Greening the Supply Chain, awarded by the Canadian Association of Importers and Exporters. The Excellence in Corporate Responsibility award, presented during the October 26 CATIE Awards Gala in Toronto, Ont., Canada, was attributed to Cascades' online boutique that offers products respectful of the environment, such as Christmas trees, children's furniture, and pet homes, all made of recycled cardboard. "We are happy that our sustainable business practices and our dedication towards the creation of eco-responsible products have been recognized," Carl Blanchet, corporate director of business development at Cascades, said.

The Greening the Supply Chain award was presented at a gala in Toronto on October 17. The award was attributed to Cascades for its commitment to render its supply chain more respectful of the environment and to reduce its carbon footprint. "We are particularly proud to receive this award in view of the outstanding reputation of the other finalists in the area of responsible procurement," said Christine Lemieux, director of International Operations at Cascades.

Back To Top

---

 

Clearwater Paper Corp., Spokane, Wash., USA, reports that it will sell its Lewiston, Idaho, sawmill to Idaho Forest Group of Coeur d'Alene, Idaho. The transaction includes the sale of Clearwater Paper's sawmill, planer mill, dry kilns, and related assets, along with log and finished goods inventories and timber under contract, in the aggregate amount of approximately $30 million. As part of the transaction, the two companies have entered into a long-term residual fiber supply agreement with the goal of delivering consistent supplies of chips and sawdust to Clearwater Paper's Lewiston pulp mill from Idaho Forest Group Mills.

Clearwater Paper is expected to ramp down production in the coming weeks in preparation for Idaho Forest Group to officially take possession later this quarter. Clearwater Paper's approximately 250 affected employees will receive severance and all provisions subject to the WARN Act, which includes up to 60 days' worth of pay and benefits.

"We believe the tough times in the lumber industry will continue into the foreseeable future, and that the mill will be operated by a company whose core focus is lumber," said Tom Colgrove, president of pulp and paperboard at Clearwater Paper. "We believe IFG has the people, resources and the business structure to make the Lewiston sawmill very successful."

Clearwater Paper produces consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard, and pulp at 15 manufacturing locations in the U.S. and Canada.

Back To Top

---

 

CMPC Tissue S.A., Santiago, Chile, has ordered a new tissue line from Metso, Finland, to be installed at its Talagante mill in Chile. The line will be started up during 2013. The value of the order was not disclosed. However, Metso notes that this kind of production line is typically valued at EUR 20 - 30 million, depending on the scope of the delivery and the production output.

Metso's delivery will include a complete tissue production line with stock preparation equipment and an Advantage DCT 200+ tissue machine with an OptiFlo II TIS headbox, a Metso yankee cylinder, an Advantage AirCap hood, an Advantage WetDust dust management system, and an Advantage SoftReel reel. The production line will be optimized to enhance final product quality and save energy.

The delivery will also contain an extensive Metso automation package, including a Metso DNA process automation system for machine, process, and drive controls as well as a Metso IQ quality control system.

With a width of 5.6 m, the new production line will produce 50,000 - 60,000 metric tpy of high-quality facial, toilet, and towel grades. The raw material for the new line will be virgin pulp and deinked pulp.

CMPC Tissue is part of the larger pulp and paper group Empresas CMPC, and is a leading tissue products supplier in Latin America with industrial operations in eight countries of that region.

Back To Top

---

 

In Canada, C$42 million in federal funding for the pulp and paper industry's "green transformation" was announced in early October. The 15 associated projects will be among the last to receive funding from the $1-billion Pulp and Paper Green Transformation Program, which was established in 2009 by the Canadian federal government and concludes in March 2012.

In the west, Cariboo Pulp & Paper Co., Quesnel, B.C., is receiving $5.5 million to make the facility's processes more green and lower its environmental footprint by reducing the amount of chemicals delivered to the mill. West Fraser Mills Ltd., also in Quesnel, is receiving $2 million for its Quesnel River Pulp mill Waste Water Heat Exchanger Upgrade Project to improve the mill's energy efficiency through the installation of four heat exchangers. West Fraser Mills is also receiving $5.1 million to reduce greenhouse gas emissions and improve the energy efficiency of its Slave Lake Pulp mill, in Slave Lake, Alta. Tolko Industries Ltd. in The Pas, Manitoba, is receiving $2.5 million for three projects to reduce steam consumption and fossil fuel use.

Four companies in Quebec will also proceed with PPGTP projects. Fortress Specialty Cellulose Inc. in Thurso is receiving $9.9 million to generate more renewable thermal energy and reduce its greenhouse gas emissions. Kruger Wayagamack Inc. in Trois-Rivières is receiving $6.3 million for five projects to improve environmental performance through upgrades to mill processes. Domtar Inc. in Windsor is receiving $5.5 million for two projects that together are expected to reduce the mill's water use and energy consumption while improving energy efficiency and increasing production of renewable electricity. Fibrek S.E.N.C. in Saint-Félicien is receiving $5.1 million to increase the mill's energy efficiency and environmental performance.

Collectively, these 15 projects are expected to generate enough renewable energy to power nearly 5,600 homes. They are also expected to save enough energy to heat an additional 18,000 homes while reducing greenhouse gas emissions by 49,000 metric tpy.

Back To Top

---

 

Fortress Paper Ltd., Vancouver, B.C., Canada, has resumed construction at its Specialty Cellulose Mill in Thurso, Que., Canada, after all employees of contractors engaged by the company reported to the construction site October 27. The Fortress Specialty Cellulose Mill began experiencing instances of construction worker absenteeism in the evening of Thursday, October 20, with certain trade workers failing to report, in increasing numbers, to the construction site the following day and throughout the weekend.

Fortress stated in a press release that "while at the time the company did not consider that these actions were likely to materially impact the timing of the conversion project at the mill, the unexpected full walkout by the construction workers on Monday, October 24, has impacted the critical path of the project. The company expects construction activity to reach normalized levels once the construction workforce is fully remobilized and construction activities are fully ramped-up. However, it is possible that labor relations could change as a result of ongoing opposition to proposed government legislation."

Fortress says it is actively seeking to mitigate any delays, and, assuming the construction workforce continues to be fully engaged in the project going forward, it expects that dissolving pulp production will commence no later than the middle of this month.

Fortress 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 and graphic and technical papers. The company's pulp business includes specialty pulp produced at the Fortress Specialty Cellulose Mill, which is currently in the process of converting this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

Back To Top

---

 

Glatfelter, York, Pa., USA, a global producer of specialty papers and fiber-based engineered materials, this week announced capacity expansion plans for its Composite Fibers business unit, that serves the growing global tea and single serve coffee markets, among others. The company will invest $50 million at its Gernsbach, Germany, facility to expand its inclined wire capacity by nearly 20%, or approximately 10,500 short tons, by converting a conventional flat wire paper machine to a state-of-the-art, inclined-wire paper machine used to manufacture filter papers for tea bags and single-serve coffee applications as well as certain composite laminate products and technical specialties.

Dante C. Parrini, chairman and CEO, said that "shipments for our Composite Fibers business have increased by approximately 20% over the past two years, led by the strong worldwide demand for beverage filter papers. While our continuous improvement initiatives have generated significant incremental capacity, the rapid growth of this business is simply outpacing our organic capacity gains. This expansion will not only allow us to continue to meet the growing demand of our market-leading customers with sophisticated and innovative products, but it will solidify our leading position in this rapidly growing global category."

The project will take place primarily in 2012, with the new machine expected to begin production in the first quarter of 2013. The company says it expects to achieve a 15% to 20% return on this investment within three years, has ample liquidity to fund the project, and expects it will be financed from cash balances or the company's revolving credit facility.

Iggesund Paperboard produces Invercote, a solid bleached board, at its mill in Sweden. In England the company makes Incada, a folding boxboard. "All of our paperboard products are made exclusively with virgin fiber," Mallinson says. "It gives us the best performance in terms of how much material is required to protect the packaged product. And of course there is absolutely no worry in terms of hygiene and purity, factors that are becoming more and more important. The big advantage of virgin fiber is that we know where it comes from and what properties it has, which is unfortunately not always the case with recycled fiber."

Back To Top

---

 

Metso, Finland, reported this week that it has acquired Fabco Inc. (Fabrication Company of Maine), located in Winthrop, Maine, USA. The acquired business, employing 20 people, was affiliated to Metso's Paper and Fiber Technology segment - Filtration Services, effective November 1. The value of the transaction was not disclosed.

The acquisition will complement Metso's current services, technology, and product offering to the pulp industry in North America, and is in line with the company's strategy to increase the level of business in the services sector.

Fabco Inc. has been manufacturing and servicing filtration components for the pulp and paper industry for more than 30 years. The filtration solutions are offered for different parts of the paper mill—woodyard, pulp mill, paper machine, and waste water treatment. Some of the key manufactured products are disc filter sectors, drum filter covers, belt press belts, sector covers, vibrating and polishing filter screens, and recausticizing products.

Back To Top

---

 

The West Linn Paper Co., West Linn, Ore., USA, this week announced that it will invest more than $3 million in major capital improvement projects that will get underway in the first half of 2012. The company has committed to several projects but the two most prominent will focus on increasing production and energy conservation.

One of the two projects will address moisture content and sheet strength on the mill's No. 1 paper machine and is expected to improve the quality of the mill's heavyweight products, while increasing production on this machine by 13% or more. PM 1 produces coated free sheet web rolls that range from 70 lb – 146 lb basis weights, as well as matte reply card.

The second of the planned projects will provide cleaner whitewater that will better enable reuse throughout the mill and reduce associated heat loss to the effluent. This project is expected to reduce fuel costs and has the potential to reduce effluent flows by as much as 20%.

"The coated paper market is extremely volatile right now, but West Linn Paper has been able to successfully adapt to changing conditions. We believe that strategic investment in the appropriate areas will help us continue to remain competitive," says COO Brian Konen. "An increase in machine efficiency, product quality, and energy savings is a solid investment and a win for both the mill and our customers."

The bulk of the work is scheduled for the second quarter of 2012, requiring a machine outage of less than a week. The company does not expect that the minimal down time will affect customer shipments.

West Linn Paper is an independent manufacturer of coated free sheet web paper and is the oldest and only active free sheet manufacturer in the western U.S.

Back To Top

---

 

For the past five years, an annual study by Packaging Digest, Oak Brook, Ill., USA, and the Sustainable Packaging Coalition, Charlottesville, Va., has shown sustainability's steady growth as a driver of change and innovation in the packaging sector. New data from the just-released 2011 survey indicate that this momentum might be slowing.

The "Sustainability in Packaging" study indicates some slippage on key questions, according to John Kalkowski, Packaging Digest editorial director. He explains that this does not mean that sustainability's importance among packagers has declined. Rather, its impact is still growing, although at a slightly slower pace.

The 2011 survey was conducted in September, drawing 674 responses from a cross section of the packaging industry that includes consumer packaged goods companies (CPGs), retailers, packaging services, and converters, as well as machinery and materials suppliers.

Major findings from the study include:

• The number of respondents reporting high or moderate familiarity with the issues of sustainability dipped to 80% in 2011 versus 83% in the 2010 survey, still well above the 52% at the same level of familiarity in 2007, the first year the survey was conducted
• A growing number of study participants (41%) say the emphasis on sustainability within their companies has stayed the same in the past year, compared with 31% a year ago, while 55% said the emphasis had grown within their company in 2011
• When asked how they'd rate their company's success in achieving sustainability, less than one quarter of respondents say the business they work for had achieved levels beyond similar companies
• Consumer demand, pricing pressure, and retailer/brand owner requirements were cited most often as the main influences on companies' sustainable packaging efforts
• Economic conditions were cited as a major reason that some businesses have scaled back their activities in sustainable packaging.

Again in 2011, study participants identify Walmart as the leader among retailers for its sustainability practices, followed by Target and Whole Foods Markets. Among consumer product goods companies, Procter & Gamble was most-recognized for sustainability, followed by Coca-Cola and PepsiCo, which both introduced plant-based packaging in 2011.

More information about the survey is available online.

Back To Top

---

 

Sonoco Recycling Inc., a wholly-owned subsidiary of Sonoco, Hartsville, S.C., USA, this week completed the acquisition of American Recycling of South Carolina's Greenville location, a large material recovery facility (MRF). The new facility is expected to significantly increase Sonoco Recycling's ability to meet rising demand in the Upstate.

"With this acquisition, Sonoco Recycling has significantly expanded its single-stream recycling capabilities in the Upstate," said Jim Brown, VP, Sonoco Recycling. "The Greenville MRF will help accelerate Sonoco Recycling's current goal of doubling the volume of tons collected by 2014."

The acquisition of the Greenville facility as Sonoco Recycling's fifth MRF will expand Sonoco's operations in one of the largest metro cities in South Carolina. The company already has operations in Charleston, Columbia, and Spartanburg.

Currently, Sonoco Recycling's reclamation rates in South Carolina save approximately 843,000 cubic yards of landfill space, equating to enough landfill space for the annual disposal needs of more than a million South Carolinians. The company annually collects more than 3 million tons of old corrugated containers, various grades of paper, metals, and plastics.

Back To Top

---

 

KapStone Paper and Packaging Corp., Northbrook, Ill., USA, this week completed the acquisition of U.S. Corrugated, Inc. (USC). Under the terms of the sale, KapStone acquired USC, including a 240,000 ton recycled containerboard paper mill in Cowpens, S.C., and 14 converting facilities in the eastern and mid-western U.S.

"Today we are welcoming USC's team as the newest members of KapStone," said Roger W. Stone, chairman and CEO. "We look forward to building on their momentum. The acquisition of USC now transforms KapStone into a much more profitable and stronger company."

Funding for the acquisition came from cash on hand and borrowing under a new $525 million senior secured credit facility consisting of a $375 million term loan maturing over five years and a $150 million revolving credit facility. At closing, KapStone's previously existing $101 million term loan was repaid. The company now has a $375 million, 5-yr term loan at an initial interest rate of 2.25%. The revolver was unused and is available for working capital requirements.

KapStone Paper and Packaging is a producer of unbleached kraft paper products, linerboard, and shipping containers. The company is the parent company of KapStone Kraft Paper Corp., which includes paper mills in Roanoke Rapids, N.C., North Charleston, S.C., and Cowpens, S.C., 14 converting locations in the east and Midwest, and a lumber mill in Summerville, S.C. It employs some 2,700 people.

Back To Top

---

 

Sonoco Recycling, a wholly owned subsidiary of Sonoco, Hartsville, S.C., USA, reports that it has broken ground on a new materials recovery facility (MRF) in Charleston County, S.C. Expected to be complete in February 2012, the new MRF will service both residential and commercial-industrial recycling.

"Our new facility represents a $1 million investment into the greater Charleston community," said Jim Brown, VP, Sonoco Recycling. "We've been in Charleston County since 1972, and are excited to continue our growth in this area by offering expanded services to local residents and businesses."

Located at 2025 Tellico Road in North Charleston, the MRF will add 15 new jobs in addition to the 200 people currently employed by Sonoco Recycling in South Carolina. With the new facility, Sonoco Recycling aims to grow capacity by 25%, increasing processing capabilities by expanding the list of materials accepted in Charleston County. Additionally, the new MRF will be equipped to process residential single-stream (commingled) materials.

Currently, Sonoco Recycling's reclamation rates in Charleston save nearly 150,000 sq ft of landfill space and more than $2 million in avoided landfill fees for local businesses. The company maintains relationships with more than 150 businesses in the area, and is involved in numerous environmental initiatives such as the Carolina Recycling Association, Keep South Carolina Beautiful, and the Southeastern Recycling Coalition. Sonoco Recycling also participates as an environmental partner in many local events such as the Charleston Green Fair, the Cooper River Bridge Run, and the BB&T Charleston Wine and Food Festival.

Sonoco Recycling annually collects more than three million tons of old corrugated containers, various grades of paper, metals, and plastics. In addition, the company has experts who provide secure, reliable, and innovative recycling solutions to residential and commercial customers.

Currently, Sonoco Recycling operates four MRFs and serves more than 125 communities in which curbside-collected residential and commercial materials are processed.

Back To Top

---

 

Sonoco, Hartsville, S.C., USA, has been rated the top packaging company and the top company in the Materials Sectors in Newsweek magazine's 2011 Green Rankings, which assess the largest 500 U.S. public companies on their environmental footprint, environmental policies, and reputation. Sonoco was also rated 202nd overall, placing the company in the Green Ranking's top 40% for the third consecutive year.

To create the 2011 Green Rankings, Newsweek collaborated with environmental research providers Trucost and Sustainalytics to evaluate each company's environmental footprint, management. Trucost used publicly disclosed environmental data to evaluate company performance on more than 700 environmental impact metrics and determine each company's environmental impact score. Sustainalytics also evaluated the policies, programs, targets, and certifications each company uses to manage its environmental performance. To benchmark each company's performance against its industry peers, Sustainalytics supplemented more than a dozen core environmental indicators with more than 40 sector-specific indicators. The 500 companies included in the 2011 Green Rankings are the largest U.S. companies measured by revenue, market capitalization, and number of employees.

"We are extremely pleased to have our commitment to setting the standard for sustainability in the packaging industry recognized again this year and to be ranked the top company in the Materials Sector," said Harris E. DeLoach Jr., Sonoco chairman and CEO. "It is also very gratifying for our employees and other stakeholders to be rated so highly, given the extensive and detailed research involved in developing the Green Rankings."

Back To Top

---

 

Temple-Inland, Austin, Texas, USA, reports that its will open a new, state-of-the-art display and graphics facility in January, in Chicago, Ill. Temple-Inland Display and Packaging Chicago will offer the combined services and expertise of the Elgin Corrugated Box and Mack Packaging brands from a single, newly renovated plant in Carol Stream, Ill.

With the opening of this new facility, Temple-Inland says it is positioned to provide high-end corrugated packaging, displays, and fulfillment to current Mack, Elgin, and Temple-Inland customers plus new customers throughout the country. The facility, working in concert with the company's entire network of operations, including the newly opened (April, 2011) Aurora box plant, allows Temple-Inland to meet the packaging and display needs for boutique businesses as well as large, high-volume corporations with national brands demanding global consistency.

According to the company, "Temple-Inland Display and Packaging Chicago will be the premier operation in the Midwest, offering creative solutions to all packaging needs and producing the widest array of products with unsurpassed service. We take projects from concept to reality at the speed of retail."

Back To Top

---

 

Korsnäs AB, Sweden, has introduced Korsnäs Artisan, a new cartonboard grade with a "silky smooth surface and excellent printing capabilities." The new board has a very soft touch allowing for new unique packaging experiences, the company notes.

Korsnäs Artisan is a high-white, multi-layered board made of 100% virgin fiber. "The long, tough, and resilient fibers make for an extremely strong and formable material and the single-coated, silky smooth surface offers excellent printing properties," the company explains. The combination of "outstanding shapeability" and printability makes it an ideal packaging material for luxury products such as cosmetics, perfume, and exclusive confectionery. The new product meets the strictest hygiene requirements and is approved for direct contact with food, Korsnäs adds. It is available in grammages from 270 to 390 gsm. The material is recyclable and made of compostable ingredients.

Back To Top

---

 

Albany International, Menands, N.Y., USA, this week introduced its Coated Dura-Drive™ Lagging EZ, which its says allows corrugated paper manufacturers to reduce costs associated with the expensive, time-consuming process of removing and gluing roll lagging. The new lagging installs on most drive pulleys without glue, enabling customers to install it on both rolls in a fraction of the time currently required, in many cases less than an hour, the company notes.

With no gluing, there is no costly downtime waiting for the glue to cure. In addition, it is environmentally friendly because no toxic glue is used. Also, there is no need to grind the old lagging off.

Joe Siciliano, global product manager for Albany International Corrugator Belts, points out that "there's no longer a need to shutdown an entire operation over a weekend just to re-lag your rolls. With no grinding or gluing, there is a significant reduction in overall costs to a plant in both manpower and downtime. In addition, since the Coated Dura-Drive Lagging EZ is installed in sections, if lagging is damaged in one section, you can replace only the section and not have to replace the entire roll covering."

Back To Top

---

 

Mission NewEnergy Ltd., San Antonio, Texas, USA, a producer of environmentally sustainable biofuels, announced this week that it has materially completed its 2011 Jatropha tree planting season, adding 40,264 new acres and 14,331 new Jatropha contract farmers. The company reported strong progress on the expansion of its acreage profile and now has a total of 234,587 acres under contact around the world, representing a total of more than 164 million trees.

Over the lifespan of each acre, Mission anticipates receiving 115 barrels of Jatropha oil. By adding acreage, it increases the company's crude Jatropha oil supply (a comparable concept to crude oil well reserve). "As our acreage matures," the company notes, "our harvest yields expand (a comparable concept to crude oil well flow rate)."

"We are delighted to be steadily growing our acreage and we see no impediment to future expansion. Our contract farming business model, coupled with advanced management technology, allows us to effectively plant on otherwise unusable land, giving Mission access to land at no capital cost," said Nathan Mahalingam, group CEO of Mission NewEnergy. "We expect significant year-on-year Jatropha oil yield growth into the foreseeable future, from the combination of continual acreage expansion and Mission's already maturing acreage profile. We look forward to reporting our 2011 harvest yields in the coming months."

This planting season Mission has, on a trial basis, planted high yielding varieties from third parties including JOil and Quinvita. It is expected that these higher yielding Jatropha varieties will also significantly reduce the maturation cycle. Mission says it will monitor the relative progress of all varieties planted and roll out the best performing varieties in future planting seasons.

Jatropha Curcas grows on the most arid, marginal lands, producing an inedible seed containing oil that is an ideal biofuels feedstock. The Jatropha tree begins to yield seeds from the third year and provides an annual supply of oil for 30 years.

Operating in Asia, India, Australia, Europe, and North America, Mission NewEnergy is a biodiesel producer and one of the world's largest Jatropha plantation companies. At full capacity, it can produce 105 million gal of biodiesel and have more than 234,587 acres of plantation, representing a sustainable, non-edible oil supply of an estimated 27 million barrels.

Back To Top

---

 

Kemira Oyj, Finland, reports that President and CEO Harri Kerminen will retire April 1, 2012, after completing 26 years with the company. Wolfgang Büchele, appointed new president and CEO effective April 1, has been a member of Kemira's Board of Directors since 2009.

"Kemira's Board of Directors started the CEO succession process this summer due to Harri Kerminen's anticipated retirement in 2013. The process was faster than expected and therefore we agreed with Harri Kerminen that he will retire earlier than planned. As a member of Kemira's pension fund, he has the right for this," said Pekka Paasikivi, chairman of the board.

Büchele brings to Kemira broad, extensive industrial knowledge combined with international experience and networking, especially in the fast developing Asian markets. He has spent most of his career, from 1993 until 2007, in BASF's Fine Chemicals organization in Europe, China, and the U.S. Since 2009 he has been member of the board and CEO of BorsodChem Zrt. in Hungary.

Back To Top

---

 

The Newark Group, Cranford, N.J., USA, named Gregg R. Kam VP and CFO, effective yesterday, November 2, replacing Joe Byrne. Kam's career began as a senior accountant and senior financial analyst at a private CPA firm, Holmes Protection and Unilever, and later he was CFO of International Specialty Products.

"Gregg brings to The Newark Group turnaround financial experience coupled with an outside perspective. He is eager to challenge the "status-quo" while driving new initiatives," said Frank Papa, president and CEO.

Back To Top

---

 

For 20-year member Tom Dunn, personal access to industry professionals and online access to tens of thousands of scientific and technical documents via TAPPI's e-Library were key components in establishing a very successful career. That accessibility to information created the means to research and learn beyond the confines of his chosen field.

"I recognized early on that TAPPI provided access to both technical information and the experts who have that information in ways that helped me do my job better," says Tom. "The organization's approach to teamwork and sharing provides members – individuals and companies – with much more than they could achieve on their own." Find out more by reading this month's Member Spotlight .

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member 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!

Back To Top

---

 

Program & Speakers Announced for Water Sustainability Workshop Co-Produced by TAPPI and AIChE

The Water Sustainability for the Pulp and Paper Industry workshop, to be held November 10-11, 2011 at the Providence Biltmore Hotel in Providence, RI, is a two-day intensive workshop related to water sustainability issues in the pulp and paper industry. The objective is to develop a more detailed best practices effort as the pulp and paper industry moves forward in reducing their water footprint and investing in expanding their water sustainability initiatives.

Confirmed speakers (as of October 28) include: Laura Thompson, Director of Technical Marketing & Sustainable Development, SAPPI; Nicole Tanner, Assistant Water Roundtable Coordinate, WWF-US; Jerry Schwartz, Senior Director of Environmental Policy, AF&PA; Barry Malmberg, Sr. Research Engineer, NCASI; Ron Brown, Executive Director, Agenda 2020 Technology Alliance; Steven Hatch, Global Technology Leader, Nalco Company; Vincent Caprio, Chief Operations Officer, Water Innovations Alliance; and Christian Bauer, Staff Scientist, Pall Corporation. See the most current list of speakers at the AIChE Conference website.

SPECIAL TAPPI MEMBER RATES - Discounted registration rates will apply for TAPPI members who use Promo Code "TAPPI24" when registering. Learn more about this workshop at register at the AIChE website.

Back To Top

---

 

Specialty Papers Europe to Provide Global Market Update

Rod Fisher, President of Fisher International, a leading paper industry consulting firm and operator of FisherSolve™, the industry's premier analytical tool, provides the following overview of the specialty papers market: "While only 3% of total global paper volume, nearly 13% of the world's mills make Specialty papers. Europe is the leading region producing specialty papers at 47% of world share, Asia is second largest at 25% and growing, according to FisherSolve™."

A more in-depth overview of global specialties and insight into finding new business in specialties will be presented by Rod Fisher at Specialty Papers Europe, November 29- December 1, 2011 in Frankfurt, Germany.

Register for this event using the promo code TAPPI and save 15%! Learn more about this event and register before November 15 to avoid the late registration fee.

Back To Top

---

 

Upcoming Courses That Make Training Maintenance Teams as Easy as 1-2-3!

Three upcoming courses in December will help to train your Maintenance Teams on processes that help to sustain equipment, minimize production downtime, and increase safety procedures.

In partnership with TAPPI, IDCON will be holding these courses in Raleigh, NC. The three courses include:

• Planning & Scheduling
  December 5-7, 2011
• Reliability-Based Spare Parts & Materials Management Training
  December 8, 2011
• Practical Root Cause Problem Elimination
  December 13-14, 2011

Learn more about these courses at the TAPPI website.

Back To Top

---

 

Trade Routes Key Topic at Paper Recycling Europe

Factors that cause recovered fibre to flow from one part of the world to another will be the topic of a much-anticipated session at Paper Recycling Europe 2011. Organised by the Recycling Today Media Group and Pira International, the event takes place 9-10 November in Barcelona.

A conference session on November 10 will examine developments in global trade patterns for recovered fibre. "The Trading Triangle" features a distinguished panel that includes:

• Niels van Binsbergen, managing director of ACN Europe, based in the Netherlands;
• Francisco Donoso, director of Spain-based Reciclajes Dolaf;
• Philippe Chantrain, sales and marketing manager at the Cellmark office in Sweden;
• Marc Forman, president of United States-based GP Harmon Recycling.

The two-day conference features more than a half dozen sessions covering fiber supply and demand, fibre quality, recycling technology, trade, legislation and the outlook for the paper and board industries.

Paper Recycling 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. As it has every year since 2005, Paper Recycling Europe in 2011 will provide a forum for recyclers, consuming mills, recycling officials and traders to network and share ideas while also gaining insight into regional trends in key markets in Europe and leading export destinations.

For further event information

Back To Top

---