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Travels with Larry Archive
Thursday, December 22, 2011
members edition
Eka Chemicals
Weekly Spotlight
TAPPI is, and has always been, a product of its members' efforts
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Sony, Japan, this week is demonstrating at Eco-Products 2011 in Tokyo an organic battery that generates electricity by literally "digesting" paper
Learn More...
 
Below is the latest listing of job openings in the TAPPI Career Center
Learn More...
 
U.S. and Canadian union members who work for Resolute Forest Products (formerly AbitibiBowater) have" joined forces to speak with one voice to the company"
Learn More...
 
Market Roundup
Total U.S. printing and writing (P&W) paper shipments decreased 4% in November compared with November 2010
Learn More...
 
U.S. Containerboard production was down in November, decreasing 1.8% compared with October 2011
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Total U.S. boxboard production decreased by 2.2%, compared with November 2010, but increased 3.1% from last month
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Total U.S. kraft paper shipments in November were 125,000 tons, a decrease of 9.8% compared with November 2010
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Arauco, the world's No. 2 pulp producer is studying a new 1.3 million metric tpy pulp mill, and is working on plans for a project in southern Chile
Learn More...
 
Pulp & Paper
Domtar, Montreal, Que., Canada, has ordered from Metso, Finland, the world's first commercial installation of LignoBoost technology
Learn More...
 
Guanhao High-tech Specialty and Coated Paper Co., Guangdong Province, China, has inaugurated its new specialty and coated paper production base in the Zhanjiang Development Zone of Donghai Island District
Learn More...
 
Ilim Group, Russia's largest producer of forest products, and Akzo Nobel Chemicals International BV (associated company of AkzoNobel), the Netherlands, this past week signed a long-term joint venture agreement regarding a sodium chlorate production plant to be located in Koryazhma, in the Arkhangelsk Oblast region of northwestern Russia
Learn More...
 
International Paper Co., Memphis, Tenn., USA, and Temple-Inland Inc., Austin, Texas, this week said they have agreed with the U.S. Department of Justice (DOJ) to extend the review period for their pending merger until Jan. 27, 2012
Learn More...
 
Laibin ZhengFa Paper Ltd., Guangxi Province, China, has begun construction of a new 100,000 metric tpy high-grade tissue paper production line
Learn More...
 
Qingshan Paper, Fujian Province, China, recently started up a new dissolving pulp line with an annual production capacity of 96,000 metric tpy
Learn More...
 
AbitibiBowater Inc., doing business as Resolute Forest Products, Montreal, Que., Canada, this week said that it has formally commenced its offer to purchase all of the issued and outstanding common shares of Fibrek Inc.
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Resolute Forest Products (AbitibiBowater), Montreal, Que., Canada, reports that it is extending the shutdown at its mill in Fort Frances, Ont., Canada
Learn More...
 
Södra, Sweden, reports that its executive committee has set an appropriation limit that will permit a number of offensive investments in 2012
Learn More...
 
The Stora Enso, Finland, Langerbrugge Mill in Gent, Belgium, has selected PMT Italia S.p.A., Italy, as the supplier for its PM 3 press section upgrade
Learn More...
 
UPM, Helsinki, Finland, says it will strengthen its research on eucalyptus fiber and build a competence center at the Fray Bentos pulp mill in Uruguay
Learn More...
 
Wausau Paper, Mosinee, Wis., USA, this week agreed to sell the its remaining timberland holdings, totaling approximately 80,200 acres in Northern Wisconsin, for $42.9 million
Learn More...
 
Containerboard/Packaging
During a meeting with investors and analysts this past week, MeadWestvaco Corp., Richmond, Va., USA, detailed a profitable growth strategy for its global packaging business
Learn More...
 
SCA, Sweden, reports that it will invest a total of SEK 540 million to strengthen kraftliner production in Munksund, Piteå, Sweden
Learn More...
 
Twin Rivers Paper Co., South Portland, Maine, USA, a producer of lightweight specialty packaging, label, and publishing papers, has broadened its Acadia NSR product offering with two new lightweight options
Learn More...
 
Published Pricing
DuPont Titanium Technologies, Wilmington, Del., USA, this week announced a price increase of $0.15/lb, or as permitted by contract, for all of its Ti‑Pure® titanium dioxide sold in North America
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Stora Enso, Finland, reportedly will increase its price for NKSK (northern bleached softwood kraft) pulp in Europe and China to $850/metric ton and $670/metric ton, respectively
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People
Bastech, Jacksonville, Fla., USA, has appointed Russell L. Rathfon VP of Pulp & Paper Business Development
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The Confederation of European Paper Industries (CEPI), Brussels, Belgium, has named Jussi Pesonen, president and CEO of UPM-Kymmene Corp. of Finland since January 2004, its next chairman
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TAPPI News
Three contributors mistakenly omitted from annual report are recognized in letter from TAPPI President and CEO.
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Cornell named winner of the Stephen Stryon Award, which recognizes outstanding contributions by a volunteer leader for the assocation.

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Eleven TAPPI members were honored in 2011 when they were nominated and appeared in the popular Member Spotlight feature on TAPPI's website.
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TAPPI/PIMA Student Summit in Jacksonville, Florida to be held Jan. 14-16, features mill tours, onsite company interviews and students from around the world.
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"Renewing the Renewable Industry", a December 7 TAPPI webcast production, featured Agenda 2020, the technology alliance driving innovation and renewal in the forest products industry.
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The only leaderhip and management course focused on the pulp and paper industry will be held March 28-31, 2011 in Memphis, Tenn.
Learn More...
 
Xerium Technologies, Inc.

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Naylor, LLC
Weekly Spotlight
TAPPI is, and has always been, a product of its members' efforts.

Because of you, TAPPI is the recognized worldwide resource for information in the paper, packaging, and converting industries, offering 244 industry-setting Standards, 280 Technical Information Papers (TIPs), an e-Library with more than 18,000 documents, and dozens of pioneering conferences, classes, and courses. Thanks to your leadership, we broke new ground in 2011 in Nanotechnology and Bioenergy, and expanded our horizons in Nonwovens and Polymers, Laminates, Adhesives, Coating and Extrusions (PLACE).

Immediate access to valid, reliable information in today's rapidly changing environment is a key driver in moving yourself, and your company, forward. To quote the venerable Yogi Berra, "You've got to be very careful if you don't know where you are going because you might not get there." Rest assured TAPPI's resources will help you successfully arrive at your chosen destination – be it today, tomorrow, or well into the future.

As 2011 speeds to a close, please accept my thanks for your continued support. We remain indebted to each of you for our growth this year, increasing diversification, solid financial footing, and ongoing efforts to provide value-added services and programs. Looking ahead, it is clear that the continued success of TAPPI depends on your participation because that is really what makes us an active, vibrant, and vital organization. Your assistance in our effort to add new members, attendance at events, and general support all contribute to making TAPPI the leading worldwide resource for the paper, packaging, and converting industries.

Best wishes to all for a happy, healthy, and successful 2012!

Larry N. Montague

TAPPI President and CEO

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Sony, Japan, this week is demonstrating at Eco-Products 2011 in Tokyo an organic battery that generates electricity by literally "digesting" paper. The process is similar to that used by termites to digest wood and generate energy.

The "biobattery" uses a mixture of water and enzymes (cellulase) to break down cellulose in the paper to glucose, while another batch of enzymes then "picks apart" the resulting pieces. The reactions leave behind hydrogen ions and electrons.

The electrons flow through an outer circuit and generate electricity, while the hydrogen ions mix with oxygen from the air and form water vapor. The prototype battery generates sufficient energy to power a small fan.

The paper "fuel" can be either pieces of corrugated board (see photo at right) or shredded paper.

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Below is the latest listing of job openings in the TAPPI Career Center. The current listing includes a variety of positions, from maintenance supervisor to VP of operations, electrical engineer, chemist, sales and service, and immediate opportunities at a greenfield tissue mill. Current, specific job openings at companies and locations in the TAPPI Career Center include:

Employer Job Title Location
Ace Chemical Products Sales and Service Wisconsin
GL&V USA Inc. Pulp and Paper Internship Nashua, N.H.
Zilkha Biomass Energy VP of Operations Houston, Texas
Zilkha Biomass Energy Electrical Engineer Houston, Texas
Burrows Paper Corp. Operations Specialist-III Pickens, Miss.
Recycled Paperboard Tech. Assn. Executive Director Work from home
Rayonier Inc. Production Engineer, Fiberline Jesup, Ga.
Buckeye Technologies Inc. Plant Development Chemist Perry, Fla.
Kimberly-Clark Engineer III Process Fullerton, Calif.
First Quality Tissue Greenfield - Immediate Opportunities SE & Central, Pa.
Filcon America, Inc Regional Sales Rep, SE Region SE U.S.
Catalyst Paper Maint. Supervisor – Electrical/Instr. B.C., Canada
Catalyst Paper Maint. Engineer - Mechanical B.C., Canada
Catalyst Paper Maint. Supervisor - Mechanical B.C., Canada
Catalyst Paper Maintenance Planners B.C., Canada
Land O Lakes Sr. Process Engineer Hampton, Iowa
Pratt Paper (LA) LLC Paper Mill Process Engineer Shreveport, La.

More information about these jobs is available online.

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U.S. and Canadian union members who work for Resolute Forest Products (formerly AbitibiBowater) have" joined forces to speak with one voice to the company," according to United Steel Workers International (USW) and the Communications, Energy, and Paperworkers Union of Canada (CEP). Some 100 union delegates from 10 Canadian Resolute mills in Ontario, Quebec, and Nova Scotia and four U.S. mills in Georgia, South Carolina, Tennessee, and Alabama met this past weekend in Montreal. The delegates adopted a solidarity pledge to coordinate activities and work together, leading to the 2014 pattern and master agreement negotiations with the company in both countries.

"Resolute is on notice that American and Canadian workers will not compete against each other," said USW VP Jon Geenen. "We have decided instead to make sure that we are informed and coordinated across the border and local-to-local about how this company is treating workers and communities."

CEP National President Dave Coles added that "we believe it was the sacrifices of our members in both countries that made it possible for AbitibiBowater to restructure and become Resolute. We have every right now to insist on consultation and discussion of alternatives before more corporate decisions are taken that affect our members and their communities."

At the two-day joint meeting in Montreal, local delegates reported to each other on cost reduction and job cut demands by the company at every location, often on the basis of comparisons with other mills in each country.

A statement adopted December 18 called for an end to "job blackmail." The joint statement noted that "USW and CEP members at Resolute Forest Products today demand respect and fairness. We reject absolutely any form of contrived intimidation between workers and mills. We insist that the company respect our bargaining caucuses, our pattern agreements, and end any form of job blackmail between the local unions."

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Market Roundup
Total U.S. printing and writing (P&W) paper shipments decreased 4% in November compared with November 2010, according to the AF&PA's (Washington, D.C., USA) November 2011 Printing-Writing Paper Report released this week. All four major P&W paper grades posted decreases compared with last November. U.S. purchases (shipments + imports – exports) of P&W papers decreased 4% in November. Total P&W paper inventory levels increased 2% compared with October 2011.

Some points of interest from the report include:

  • Purchases of uncoated free sheet (UFS) increased year-over-year for the second time in 2011
  • Shipments of coated free sheet (CFS) decreased year-over-year for the twelfth consecutive month, following 13 consecutive months of year-over-year increases
  • Coated mechanical (CM) shipments decreased for the eighth consecutive month
  • Uncoated mechanical (UM) shipments decreased year-over-year for the eighth consecutive month, following 15 consecutive months of year-over-year increases.
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U.S. Containerboard production was down in November, decreasing 1.8% compared with October 2011, according to the AF&PA's (Washington, D.C., USA) November 2011 U. S. Containerboard Statistics Report issued this week. However, the month-over-month average daily production increased 1.4%. The containerboard operating rate for November 2011 rose slightly over November 2010, from 96.0% to 96.5%.

Additional key findings from the report include: ·

  • Linerboard production increased compared with last year ·
  • Corrugating medium average daily production was up over last month.
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Total U.S. boxboard production decreased by 2.2%, compared with November 2010, but increased 3.1% from last month, according to the AF&PA's (Washington, D.C., USA) November 2011 U.S. Paperboard Report released this week. Other key findings of the report include:
  • Unbleached kraft folding production increased over the same month last year, but decreased compared with last month
  • Total solid bleached boxboard and liner production decreased compared with November 2010, but increased compared with last month
  • The production of recycled folding decreased compared with November 2010, and decreased compared with last month
  • Inventory of solid bleached kraft paperboard grew over a year ago.
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Total U.S. kraft paper shipments in November were 125,000 tons, a decrease of 9.8% compared with November 2010, according to the AF&PA's (Washington, D.C., USA) November 2011 Kraft Paper Sector Report published earlier this week. Total inventory was 83,500 tons for November.

Additional key findings from the report include:

  • Total unbleached kraft shipments increased compared with October 2011
  • Total bleached kraft shipments increased compared with the same 11 months in 2010.
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Containerboard prices remained unchanged in December, reports Mark Wilde, senior analyst with Deutsche Bank. "Trade papers reported flat domestic prices, but noted continued erosion in export prices to Southern Europe and the Middle East. We expect lower prices in the first half of 2012," he says.

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Arauco, the world's No. 2 pulp producer is studying a new 1.3 million metric tpy pulp mill, and is working on plans for a project in southern Chile, Wilde continues. If approved, he adds, the mill would cost an estimated $1.9 billion and startup in November 2015.

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Pulp & Paper
Domtar, Montreal, Que., Canada, has ordered from Metso, Finland, the world's first commercial installation of LignoBoost technology. The equipment will be integrated with Domtar's Plymouth, N.C., USA, pulp mill. The LignoBoost process separates and collects lignin from pulping liquor. The LignoBoost plant will be in commercial operation in early 201. The value of the order was not disclosed.

Separation of a portion of the mill's total lignin production off-loads the recovery boiler and allows an increase in pulp production capacity. The lignin recovered will be used for internal and external applications.

"This project is a potential game changer for the pulp and paper industry because it will allow pulp mills to have a new, more profitable value stream from a product that was traditionally burned in a recovery boiler," says Gene Christiansen, GM–Business Development Innovations at Metso's Power Business Line for North America in Charlotte, N.C.

The LignoBoost project is based on the 24 tpd demonstration plant in Bäckhammar in Sweden. The Bäckhammar plant is owned and operated by Innventia since 2006. In 2008, Metso acquired the LignoBoost Technology from Innventia and the companies have since then been working together on commercialization of the process.

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Guanhao High-tech Specialty and Coated Paper Co., Guangdong Province, China, has inaugurated its new specialty and coated paper production base in the Zhanjiang Development Zone of Donghai Island District. The company plans to invest RMB 7.6 billion ($1.2 billion) in the new production base, which will have a total annual production capacity of 750,000 metric tpy (including 355,000 metric tpy of coated paper).

The new production base will include production lines for specialty base papers and coated paper converting plants, six existing coating production lines relocated from old production plants, and a power house. Production in the new base is expected to startup by the end of 2012.

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Ilim Group, Russia's largest producer of forest products, and Akzo Nobel Chemicals International BV (associated company of AkzoNobel), the Netherlands, this past week signed a long-term joint venture agreement regarding a sodium chlorate production plant to be located in Koryazhma, in the Arkhangelsk Oblast region of northwestern Russia. The plant will be majority-owned and operated by AkzoNobel.

The sodium chlorate production plant will be fully managed and operated by AkzoNobel's Pulp and Paper Chemicals business, Eka Chemicals, in cooperation with on-site partner Ilim Group.

Paul Herbert, CEO of Ilim Group, noted that "we are glad that our cooperation with one of the world's leading chemical producers is reaching truly new levels. Ilim is the leading pulp and paper company in Russia, so it was crucial for us to find a strategic partner who would be interested in the long-term development of our non-core asset. I am sure that our cooperation will be mutually beneficial."

Ruud Joosten, managing director of Eka Chemicals, added that "this fits very nicely into the AkzoNobel growth strategy for markets such as Russia. By entering into this venture, we look forward to further expanding our opportunities in a market with high future potential."

Byron Smith, SBU Director of Eka Chemicals Europe, said that "we are delighted to become a local producer of bleaching chemicals in Russia, as this gives us an extended platform for future growth in both pulp and paper chemicals in the country."

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International Paper Co., Memphis, Tenn., USA, and Temple-Inland Inc., Austin, Texas, this week said they have agreed with the U.S. Department of Justice (DOJ) to extend the review period for their pending merger until Jan. 27, 2012. Previously, the companies had agreed with the DOJ not to consummate their merger prior to December 31, 2011. The companies also agreed to extend the outside date under their merger agreement from June 6 to June 28, 2012.

International Paper SVP and General Counsel Sharon Ryan said that "we continue to cooperate with the Department of Justice and look forward to satisfying the closing conditions for the completion of this transaction."

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Laibin ZhengFa Paper Ltd., Guangxi Province, China, has begun construction of a new 100,000 metric tpy high-grade tissue paper production line. The total investment for this project is estimated at RMB 380 million ($60 million). Raw materials will be mainly bagasse pulp with some wood pulp, the company reports.

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Qingshan Paper, Fujian Province, China, recently started up a new dissolving pulp line with an annual production capacity of 96,000 metric tpy. The company invested RMB 470 million ($74 million) in the project, which is the first, largest, and most advanced pulping project of its kind in China. Construction began Oct. 20, 2010.

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Resolute is making the offer together with RFP Acquisition Inc., a wholly-owned subsidiary.

As reported on November 28, holders of common shares of Fibrek will have the opportunity to elect to receive, for each share:

  • Cash and Share Option: C$0.55 in cash and 0.0284 of a Resolute share
  • Cash Only Option: C$1.00 in cash (subject to proration, as described in the Offer Documents) 
  • Share Only Option: 0.0632 of a Resolute share (subject to proration, as described in the Offer Documents).

Based on Fibrek's most recent publicly disclosed number of 130,075,556 issued and outstanding Fibrek common shares, the maximum amount of cash consideration available under the Offer is C$71,541,556 and the maximum number of shares of Resolute common stock available to be issued under the offer is 3,694,146.

As of November 28, the date on which Resolute announced its intention to make the offer, the offer price represented a premium of approximately 39% over the closing price of Fibrek's Shares on that date, and a premium of approximately 31% over the volume weighted average trading price of the shares on the Toronto Stock Exchange for the 20 trading days ending on that date.

The acquisition of Fibrek will allow Resolute to expand its market pulp business and provide greater overall balance to its product offering. The offer provides an opportunity for Fibrek shareholders to elect immediate liquidity or choose to participate in the future of Resolute.

The offer will expire at 5:00 p.m. (EST) on January 20, 2012, unless it is extended or withdrawn by Resolute.

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Resolute Forest Products (AbitibiBowater), Montreal, Que., Canada, reports that it is extending the shutdown at its mill in Fort Frances, Ont., Canada. Late last month, the company announced it would be curtailing papermaking operations at Fort Frances for the last five weeks of 2011 due to poor market conditions. However, the company said the kraft mill would still operate. Now, due to pulp market conditions, the kraft mill will go down at Christmas, Resolute explained.

The restart of the mill at the end of January is dependent upon an improvement in market conditions.

More than 300 employees are affected by the temporary closure. A skeleton crew will be kept on during the downtime. Other employees will be allowed to take vacation time.

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Södra, Sweden, reports that its executive committee has set an appropriation limit that will permit a number of offensive investments in 2012. Group President Leif Brodén, noted that "in addition to earlier decisions concerning our participation in the development of wind power in 2012, we have now decided on an appropriation limit of SEK 1,895 million.

"This will permit a number of offensive investments to be made. We intend to continue investing in product improvements, but first and foremost we now perceive opportunities for further investments in bioenergy. We are taking into account an investment in Lignoboost at Södra Cell Mörrum that will involve a potential investment in new biomaterials in the future, as well as make the mill fossil fuel-free. We envision an investment in a new lime kiln at Värö, and even more pellet production capacity. It is important for us to make the most of the business opportunities available to us in bioenergy when our traditional products are finding things considerably more difficult."

The company adds that its budget also allows for another investment in textile (dissolving) pulp. Its plan is to convert another pulp line to the production of textile pulp.

"Hopefully we will have time to identify which of our lines is most suitable prior to the fourth quarter of 2012. Textile pulp offers major benefits in terms of quality, sustainability, and ecology, and we believe we will see good growth in years to come. Production of textile pulp will be commencing at Södra Cell Mörrum this month."

The company's forecast results for 2011 indicate an operating profit of almost SEK 1 billion and a return of 10% on capital employed. "We are seeing a similar result level in our budget for 2012, with uncertain environmental factors," Brodén concluded.

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The Stora Enso, Finland, Langerbrugge Mill in Gent, Belgium, has selected PMT Italia S.p.A., Italy, as the supplier for its PM 3 press section upgrade. Startup is planned for March 2012.

PM 3, a 6,5 m-wide machine producing SC paper, will be rebuilt by partly replacing the existing press section steel framework with a completely new stainless steel one, giving PM 3 a longer life time and providing the necessary flexibility for future implementations as well as the development in press technology.

PM 3's existing top former will also be equipped with a new cleaning and mist removal system.

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UPM, Helsinki, Finland, says it will strengthen its research on eucalyptus fiber and build a competence center at the Fray Bentos pulp mill in Uruguay. The new center, including expansion of the existing laboratory facilities, will be operational during the first half of 2012.

The new competence center will focus on the research of eucalyptus species and their impact on end product properties. The Fray Bentos competence center will evaluate the aspects of the eucalyptus species growing in Uruguay with the aim to accelerate the process of selecting the best trees to be planted in the future.

"At the Fray Bentos mill site we can combine our expertise in the pulp process with the plantation forestry operations know-how in an innovative way. The new competence center will also enable us to strengthen the cooperation with our customers in product development," says Sami Saarela, VP of UPM's pulp production. UPM's approximately 300 R&D professionals work in five research centers around the world. Each research center has its own dedicated focus area.

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Wausau Paper, Mosinee, Wis., USA, this week agreed to sell the its remaining timberland holdings, totaling approximately 80,200 acres in Northern Wisconsin, for $42.9 million. Marketed and brokered by LandVest Timberlands, Wausau Paper reached separate agreements to sell approximately 72,800 acres to The Lyme Timber Co. and approximately 7,400 acres to The Forestland Group. Both transactions are expected to close prior to the end of this year.

Income tax obligations resulting from the sale transactions are expected to be offset by losses associated with the previously announced 2012 closure of the Paper unit's Brokaw, Wis., manufacturing facility, bonus depreciation associated with recent capital investments, and remaining cellulosic biofuels tax credits. The available tax offsets provide cash efficiency by effectively deferring the tax obligation associated with the transactions for a period of up to six years.

"Sale of our remaining timberlands is consistent with our approach to support investment and growth in our highly successful tissue business," said Thomas J. Howatt, president and CEO. "Sales proceeds will allow us to reduce financing requirements associated with the tissue expansion project and, combined with our recently-announced exit from the Print & Color markets, narrows our focus to attractive away-from-home tissue and growth-oriented technical markets."

Wausau Paper produces specialty papers for industrial, commercial, and consumer end markets as well as a complete line of away-from-home towel and tissue products.

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Containerboard/Packaging
During a meeting with investors and analysts this past week, MeadWestvaco Corp., Richmond, Va., USA, detailed a profitable growth strategy for its global packaging business. Senior company leaders presented strategies for achieving average annual growth of 5% -10% by continuing to leverage the strong packaging platform the company has built to serve targeted end markets, including food, beverage, tobacco, personal care, home and garden, healthcare, as well as corrugated packaging in Brazil.

MWV highlighted the strategies it is executing across three principal growth levers—commercial excellence, innovation, and emerging markets—to deliver on the target. The company believes these strategies can deliver more than $1 billion of incremental revenue over the next three to five years.

"We have the ability to drive sustainable, profitable growth by bringing our packaging capabilities, including deep end-market knowledge and consumer insights, to create partnerships with our customers that leverage our entire global platform," said John A. Luke Jr., chairman and CEO. "We are growing with our customers, particularly in faster growing emerging markets where we already have significant and scalable platforms. As we deliver the packaging solutions our consumer packaged goods customers need to grow their businesses around the world, we are creating higher value for our shareholders."

In regard to commercial excellence, MWV detailed its approach to identifying top priority customers based on profit potential, and then building or enhancing partnerships with those customers to create innovative solutions. The company's strategy is centered on leveraging its broad packaging capabilities to grow its share of business with the world's largest and most successful consumer packaged goods and retail companies to take advantage of new and expanding revenue opportunities over the next three to five years.

In relation to the innovation growth lever, MWV provided a first-hand look at how the company is commercializing new products based on market and consumer insights. The company outlined how it is using consumer insights capabilities in conjunction with open innovation and expertise in materials science, and packaging design to accelerate speed to market with new products. MWV featured several examples of innovative new products that are in later stages of development. These innovations will help drive increased high-margin revenue over the next three to five years.

MWV noted that it has a long and successful history in emerging markets, and is already expanding its advantaged platform in Brazil (MWV Rigesa). But, it also reviewed strategies for growing its substantial business in China, as well as scaling up its participation in India. The company is addressing each region's unique needs and opportunities with a broad set of packaging capabilities and believes continued penetration of its packaging products and solutions in these markets will generate greater incremental revenue over the next three to five years.

MWV also detailed its transformed business model, which targets 5% - 10% average annual revenue growth. "We have built a strong business model that is already delivering improved financial performance," said Mark Rajkowski, SVP and CFO. "The profitable growth plans for our packaging businesses that we outlined today centered on packaging reflect a growth engine that will deliver higher operating margins and substantial cash flows that we will use to reinvest in our business and to increase returns to shareholders."

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SCA, Sweden, reports that it will invest a total of SEK 540 million to strengthen kraftliner production in Munksund, Piteå, Sweden. The intention is to upgrade the mill's paper machine and refurbish its soda-recovery boiler,

The main aim of the investment is to increase production of the share of value-added products, such as white-top kraftliner, which, for example, is used for packaging of consumer goods with high-quality print.

As a result of the investment, Munksund will be able to increase its total annual kraftliner capacity to 415,000 metric tpy, from the current level of 360,000 metric tpy. The bulk of the investment, SEK 400 million, will be used to upgrade the paper machine. The remaining SEK 140 million will finance the replacement of the pressure vessel in the soda-recovery boiler, which will enhance heat recovery and enable increased future output.

The upgraded equipment is expected to be fully operational during 2013.

"The investment facilitates increased production of white-top kraftliner, a strong specialty paper for the corrugated board industry that is experiencing a high growth rate. The investment is in line with the company's strategy, which is to increase production and sales of products and services with a higher degree of refinement that adds value for our customers," says Jan Johansson, SCA's president and CEO.

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Twin Rivers Paper Co., South Portland, Maine, USA, a producer of lightweight specialty packaging, label, and publishing papers, has broadened its Acadia NSR product offering with two new lightweight options, Acadia NSR in 15 lb and 16 lb, providing a range of alternatives from 15 lb – 75 lb (24x36/500). This uncoated, multi-purpose, machine finish paper is suited for a variety of waxing, laminating, and converting processes and for a host of end-use applications ranging from deli wraps and pouches to liners and interleavers, Twin Rivers explains. Acadia NSR is FDA compliant and available in wet strength options.

"We recognized the need for more options in today's competitive environment and our deep experience in lightweight paper manufacturing allowed us to quickly respond to customer needs with an enhanced Acadia NSR offering," said Dave Deger, director of Marketing and Business Development. "We remain committed to innovation and co-development and continuously look for ways to bring value to our customers through our technical expertise."

Acadia NSR is part of a growing portfolio of specialty packaging papers that also includes the Acadia SR and the Bladepak family of products. This portfolio is known for its high strength, printability, convertibility, and broad range of grease resistant, PFOA free, and wet strength options.

Twin Rivers has operations in New Brunswick, Maine, and Quebec, Canada.

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Published Pricing
DuPont Titanium Technologies, Wilmington, Del., USA, this week announced a price increase of $0.15/lb, or as permitted by contract, for all of its Ti‑Pure® titanium dioxide sold in North America (U.S, and Canada) into coatings, plastics, laminates, and specialty applications. The increase, to become effective January 1, is in addition to any previously announced price increases for North America.

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

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Stora Enso, Finland, reportedly will increase its price for NKSK (northern bleached softwood kraft) pulp in Europe and China to $850/metric ton and $670/metric ton, respectively. The price hikes are effective with deliveries beginning in January 2012, according to a RISI report this week.

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People
Bastech, Jacksonville, Fla., USA, has appointed Russell L. Rathfon VP of Pulp & Paper Business Development. Rathfon joins Bastech after 28 years in the pulp and paper industry with Betz/Paperchem/Hercules/Ashland.

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The Confederation of European Paper Industries (CEPI), Brussels, Belgium, has named Jussi Pesonen, president and CEO of UPM-Kymmene Corp. of Finland since January 2004, its next chairman. Pesonen will begin his chairmanship on January 1. Barry Wiersum, current CEPI chairman, will take the position of vice-chairman for the next two years to help assure a smooth transition.

Pesonen noted that "the forest fiber industry is the leading producer of bioenergy and renewable wood-based bioproducts in Europe. European consumers are most definitely interested in seeing positive progress in substituting oil-based products with renewable and recyclable bioproducts. Therefore, European policy makers should ensure a competitive operating environment for this industry."

Pesonen added that "we need the continued carbon-leakage status for 2015 - 2020 to remain competitive. Also, the EU Renewable Energy Policy, by subsidizing biomass for energy use, threatens the supply of essential raw materials for our industry. At a regional level, the sulfur directive of marine fuels increases transport costs in Northern Europe to uncompetitive levels."

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TAPPI News

Sometimes the best laid plans of mice and men do not work out exactly right.

The TAPPI Foundation has been around since September 7, 1990. Since that time, close to $7 million has been donated by the Foundation for awards and scholarships for TAPPI members. Every year the TAPPI Foundation provides approximately 14 scholarships for TAPPI student members from around the world.

These awards and scholarships could not be possible without the generosity of TAPPI members and friends of TAPPI. Annually we have close to 100 individuals and 120 companies who generously make donations to the TAPPI Foundation.

Each year we try to recognize these individuals and companies through our Foundation annual report. This year was no exception, however, we found out that we mistakenly left some of the contributors off the list for 2011.

These were:

Dave Carlson of Carlson Consulting,

Kathleen Bennett of Kathleen M. Bennett Consulting LLC,

Chuck Fiveash of Fiveash & Frost LLP, & Peter Kontio of Alston & Bird.

Please accept my humble apology for this oversight. We sincerely appreciate what you do for TAPPI and for the industries that we serve.

Happy Holidays

Larry N. Montague TAPPI President and CEO

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Mary Beth Cornell of TAPPI received the Stephen Styron Award from the Georgia Society of Association Executives (GSAE) at GSAE's recent Holiday Luncheon, Awards Show & Silent Auction, December 14 at the Georgia Aquarium.

The Stephen Styron Award is presented annually to an outstanding committee, Shared Interest Group or task force chair. It is named in honor of one of GSAE's past presidents. The award represents Mary Beth's active support in her role as the chair for GSAE's Professional Development committee.


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Congratulations to the Member Spotlight Class of 2011 Eleven TAPPI members were honored in 2011 when they were nominated and appeared in the popular Member Spotlight feature on TAPPI's website.  In only its second year, TAPPI's Member Spotlight has been a great success with TAPPI visitors! In 2011, eleven members were highlighted showcasing their professional talents and accomplishments in the pulp, paper and converting industry, along with personal interests and lives outside the confines of their careers.

Those featured in 2011 included: Bill Bittle, Tom Dunn, Rory Wolf, Hannu Melarti, Scott Frasca, Scott Pantaleo, Darren Swales, Hassan Loutfi, Uday Raval, Kerry Figiel and Ian Journeaux. If you would like to suggest a fellow member to profile in 2012, please send their name and contact information to Member Spotlight . The nominee is then contacted and sent a brief Membership Questionnaire to fill out and return.

All members spotlighted are also featured in Over the Wire and on the TAPPI website homepage, as well as in other relevant segment-specific publications such as Caught in the NET. We look forward to seeing you in the Spotlight!

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2012 Student Summit Goes Global

The 2012 TAPPI/PIMA Student Summit will be held this year in Jacksonville, Florida; with tours of Rayonier and Rock-Tenn mills at Fernandina Beach. This year's Summit is shaping up to be one of the best yet with approximately 150 students and 25 industry participants. Students are coming to the Summit from as far away as India, France, and Canada as well as our domestic students from the frozen North: Washington, Minnesota, Michigan, and Maine.

There will be over one dozen companies onsite to perform interviews for full time and co-op positions. Sessions will include, "Hey there's paper in my electronics", "the Future of Fiber", and "Dissolving Pulp". Thank you to the following sponsors: Ashland Hercules Water Technologies, BASF, Boise Paper, Buckman, Chemstone, Domtar, First Quality Enterprises, Georgia-Pacific, International Paper, KapStone, Kruger, MWV, Nalco, OMNOVA Solutions Foundation, Orchids Paper, Rayonier, Rock-Tenn, Weyerhaeuser, and the many TAPPI members who support the TAPPI Foundation with their annual gifts.

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"Renewing the Renewable Industry", a December 7 TAPPI webcast production, featured Agenda 2020, the technology alliance driving innovation and renewal in the forest products industry. The event attracted more than 100 registrants from about a dozen countries.

Panelists included Agenda 2020 president and executive director Ron Brown; vice president and technology director John Cowie; MWV senior vice president-technology and forestry Mark Watkins, who serves as chair of agenda 2020; and Beth Cormier, vice president-R&D, SAPPI Fine Papers-N.A and Agenda 2020 vice-chair Kathleen Bennett of Bennett Consulting served as moderator. Participants heard how this public-private consortium of companies, academia, and government offers a cost-effective research collaboration to promote development of new enabling technologies that can lead to new products, new markets, and new processes.

Agenda 2020's mission is to transform the industry by establishing the research priorities, driving collaborative research, and obtaining funding, striving to make the industry more sustainable—socially, environmentally, and economically.

The presentation is now available on TAPPI's website .

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Learn the Critical Leadership & Management Skills To Take Your Job to that Next Level

Foundations of Leadership Excellence is a course focused on the fundamentals of leadership & management skills for emerging leaders, high-potentials, and area operating managers and other technical professionals. This course will be held March 28-31, 2012 at the University of Memphis campus, in Memphis, Tennessee, and is being co-produced by TAPPI and the University of Memphis.

This course is the ONLY leadership & management course available that is focused on the Pulp & Paper industry.

  • The course instructors have approximately 100 years of combined experience in leadership, management and human resource roles within the pulp & paper industry.
  • Course curriculum covers industry specific, real-world scenarios.

Participants will develop personal leadership skills through the use of influence. They will learn to impact organizations from a 360 degree perspective and how to address the challenges of team building, accountability, performance management and other critical factors of organizational success.

View the course website to learn more.

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

TAPPI Over the Wire | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947

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