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Weekly Spotlight
A new insight paper, "Workforce Rising: Why U.S. Manufacturing is Poised for a Comeback" was released this week by Reynders, McVeigh Capital Management, Boston, Mass., USA
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Verso Paper Corp., Memphis, Tenn., USA, reports that it has completed a $45 million renewable energy project at its pulp and paper mill in Quinnesec, Mich.
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CEPIPRINT, the Association of European publication paper producers, and CEPIFINE, the Confederation of European fine paper industries have joined forces to create a new Association based in Brussels, Belgium
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The environmental sustainability of Progroup AG's Propapier's PM 2 mill site in Germany has been successfully analyzed with Pöyry's Green Mill Index, Pöyry PLC, Finland, reported this past week
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Two Sides, Chicago, Ill., USA, a non-profit organization established to promote the responsible production, use, and sustainability of print and paper, today launched its U.S. website, www.twosides.us.
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Below is the latest listing of job openings in the TAPPI Career Center
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Market Roundup
In Europe, NBSK (northern bleached softwood kraft) producers are attempting to raise January ($850/metric ton) prices
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Domestic OCC appears to be stabilizing at $110 - $120/ton level and is beginning to rebound
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A two-yr run-up in prices is over. Kraft paper markets have weakened and prices are falling
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North American newsprint estimated prices were flat at $640/metric ton in December
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Pulp & Paper
Fabrica De Papel San Francisco S.A. de C.V., Mexicali, Mexico, has ordered a complete tissue production line from Metso, Finland, to startup in the second quarter of 2013
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Glatfelter, York, Pa., a producer of specialty papers and fiber-based engineered materials, this week inaugurated its newest festooning line at the company's Gatineau, Que., Canada, facility
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Nanaimo Forest Products, owner of the Harmac pulp mill in British Columbia, Canada, is building an electrical generation plant at the mill
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Kimberly-Clark, Dallas, Texas, USA, reports that its pulp mill at Everett, Wash., will permanently close by the end of March, after negotiations to sell it to Atlas Holdings recently broke down over environmental issues
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Metsä Tissue, part of the Metsäliitto Group, Espoo, Finland, reports that it will close its production, converting, and supply chain operations at the Konstancin-Jeziorna mill near Warsaw, Poland
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Metsäliitto Group, Finland, reported this week that it has begun testing of Finland's new FSC (Forest Stewardship Council) certification standard in part of its own forests
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AbitibiBowater Inc., Montreal, Que., Canada, doing business as Resolute Forest Products, this week announced that it would issue a notice of variation to the offer circular and other ancillary documentation in connection with its outstanding offer to acquire Fibrek Inc., Montreal, Que.
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White Birch Paper Co., Quebec City, Que., Canada, reports that it has presented a global proposal to employees of its idled Stadacona mill in Quebec City
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Containerboard/Packaging
KapStone Paper and Packaging Corp., Northbrook, Ill., USA, this week said that the U.S. Internal Revenue Service (IRS) has notified the company that the Joint Committee on Taxation approved its 2007-2009 examination reports as filed
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MeadWestvaco Corp., Richmond, Va., USA, is expanding its capabilities in targeted packaging end-markets with the acquisition of Polytop Corp., a designer and manufacturer of dispensing closures
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Orient Paper Inc., Baoding, Hebei, China, reports that it recently completed all testing operations and launched commercial production of its new corrugating medium paper production line
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Stora Enso, Helsinki, Finland, has signed an agreement with the European Investment Bank (EIB) for a EUR 150 million loan to be used for a new containerboard machine project at its Ostrołęka Mill in Poland
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New Products
Appleton, Appleton, Wis., USA, has introduced a new product that is says provides carbonless roll printers a way to compete in a forms market that relies more and more on digital printers and copiers for end-use applications
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People
Lars Winter has been appointed new CEO of Domsjö Fabriker, Sweden, succeeding Ola Hildingsson, beginning March 1
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Wausau Paper, Mosinee, Wis., USA, this past week appointed Matthew L. Urmanski to the position of SVP – Tissue, and Michael R. Wildenberg to the position of SVP - Tissue Strategy
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TAPPI News
January 20, 2012 meeting in Wilmington, Ohio presents a practical program that provides key perspectives on creating a culture of safety at the mill level.
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Meeting on February 23-24, 2012 in South Birmingham, Ala., includes mill tour and in-depth technical sessions on lime kiln and recausticizing area operations and maintanence.
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Webinar on January 19, 2012 shows potential speakers how to use the system to submit abstracts and upload files.
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January 30 Webinar: A Comparison of the FSC and SFI Forest Certification Standards Katie Fernholz, Dovetail Partners
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2012 Nanotechnology for Renewable Materials Conference extends deadline for submission. June 4-7, 2012 conference will be held in Montreal, Quebec.
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The industry's most important event will take place April 22-25 in New Orleans.
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Themed "Building a Sustainable Future", conference will focus on practical operations and new technology.
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Weekly Spotlight
A new insight paper, " Workforce Rising: Why U.S. Manufacturing is Poised for a Comeback" was released this week by Reynders, McVeigh Capital Management, Boston, Mass., USA. In the paper, Reynders, McVeigh suggests that economics and innovation are driving forces behind the return of American manufacturing.
Co-authored by Patrick McVeigh, president and chief investment officer, and Chat Reynders, CEO and chairman of the firm, the insight paper outlines three major fields with significant growth potential based on the return of U.S. manufacturing: production, employment, and innovation.
"A perfect storm of economic conditions displaced manufacturing from the U.S. years ago, and there is no new perfect storm on its way to bring them back," writes Reynders, McVeigh. "However, manufacturing will return as China struggles with growing infrastructure and the emergence of its middle class, as industries built around U.S.-based resources solidify, and as innovation brings production to new levels of efficiency. There is no quick fix, but the gradual evolution of disparate elements is dispersing the clouds and giving rise to a new and viable landscape for American manufacturing."
More information from and about the report is available online.
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Verso Paper Corp., Memphis, Tenn., USA, reports that it has completed a $45 million renewable energy project at its pulp and paper mill in Quinnesec, Mich. The project includes design upgrades to the mill's existing combination boiler (which burns biomass from waste wood sources), a new biomass handling system, and a new turbine generator. The project is delivering 28 MW of additional green energy for consumption within the mill, which is equivalent to the amount of electricity consumed by 18,000 homes in a year.
"The completion of the Quinnesec renewable energy project is a milestone in the implementation of Verso's long-term energy strategy," said Verso President and CEO Mike Jackson. "Besides delivering annual energy savings, the project helps Verso deliver on our commitment to increase our use of renewable biofuel and thereby reduce our carbon footprint."
The boiler upgrades enable the mill to use renewable, carbon-neutral, wood-based biofuel for more than 95% of its on-site electricity generation. The new biomass handling system expands the mill's capabilities for processing residual wood such as tree tops, limbs, and bark. Verso ensures that the expanded harvesting of this logging residue meets forest sustainability standards. The mill's boilers also will continue to burn black liquor.
"In addition to reducing our carbon footprint, these improvements will improve boiler combustion and efficiency and will markedly reduce the mill's reliance on electricity produced from fossil fuels," said Verso VP of Energy and Technology Mark Daniel.
Verso began ordering major components for the project in May 2010, construction was begun in October 2010, and the project was completed with the commissioning of the new turbine earlier this month.
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CEPIPRINT, the Association of European publication paper producers, and CEPIFINE, the Confederation of European fine paper industries have joined forces to create a new Association based in Brussels, Belgium. The Association, to be known as Euro-Graph, will represent more than 30 companies, operating some 100-plus paper mills in Europe, with an annual capacity of approximately 45 million metric tons of graphic papers.
The merger allows the graphic paper sector, the largest within the European pulp, paper and packaging industry, to stand united before the common challenges posed by new and electronic media, the merged associations note, adding that the new entity "will aim to further improve the quality of market statistics and analysis for its members, as well as addressing cross-sector issues such as sustainability and communication, while benefiting from streamlined and simplified processes and working procedures."
In spite of the new name, which should help in reducing the confusion between different Associations, Euro-Graph will remain closely linked to CEPI, the Confederation of European Paper Industries. Members of Euro-Graph will continue to fully support the work and activities of CEPI.
Jyrki Ovaska, president of the paper business group at UPM and currently chairman of CEPIPRINT, will be chairman of Euro-Graph.
The organization will also be represented by Vice-Chairman of Fine Paper Paolo Mattei of Lecta/Cartiere del Garda, currently chairman of CEPIFINE, and by Vice-Chairman of Mechanical Paper Henrik Sjolund, managing director of Holmen Paper.
Emanuele Bona, currently director general of CEPIPRINT, will be in charge of the daily management of the association, taking on the same position in Euro-Graph.
Frank Leerkotte, managing director of CEPIFINE, will leave the association to concentrate all of his efforts on the Print Power/TwoSides campaign, a major communication project supported and funded by the entire print value chain.
"The transformation of the paper industry that we have witnessed over the past few years is now moving to the paper associations," Ovaska said. "The merger of CEPIPRINT and CEPIFINE into Euro-Graph represents a historic development for an industry that is aiming at improving its effectiveness, cohesion, and quality of products and services."
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The environmental sustainability of Progroup AG's Propapier's PM 2 mill site in Germany has been successfully analyzed with Pöyry's Green Mill Index, Pöyry PLC, Finland, reported this past week.
"We want to be forerunners concerning environmental sustainability issues. Pöyry's Green Mill Index gave us a complete overview of our production and mill site performance. Although our performance was excellent, there is always room for some improvement and we know now where to concentrate," Propapier said.
The Green Mill Index is a tool developed by Pöyry for pulp and paper mills. The index represents the relations of different indicators and overall environmental performance of a mill and helps to measure energy or water efficiency, for example. Many of the indicators used in Pöyry's Green Mill Index are based on European Commission standards for best available technology, known as BAT levels.
Progroup AG produces corrugated board formats as its core business. The Propapier PM 2 produces high-quality corrugated board base papers exclusively with recycled fiber. The special technology of PM 2 makes it possible to produce lightweight, fiber-saving new papers for lighter and at the same time more efficient corrugated boards of the "next generation," the company notes.
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Two Sides, Chicago, Ill., USA, a non-profit organization established to promote the responsible production, use, and sustainability of print and paper, today launched its U.S. website, www.twosides.us. The site, filled with facts from well-known, credible sources, provides an easily accessible resource for anyone who wants trustworthy information about the environmental impacts of paper-based communication.
"Print and paper have a great environmental story to tell, but that story often gets lost among misleading claims, misconceptions, and one-sided communications," says Two Sides President Phil Riebel. "On the Two Sides website, we present information from a wide range of authoritative sources—organizations like the World Resources Institute, the U.N. Food and Agriculture Organization, the U.S. Forest Service, and the World Business Council for Sustainable Development—to dispel the myths and help people better understand the true sustainability of print and paper."
In addition to a "Myths and Facts" section, the website offers a host of other resources, including reports, case studies, and news on the sustainability of print and paper, a question and answer page where website visitors can submit relevant questions, and links to networking opportunities like the Two Sides blog and social network pages. The site also provides information on how to join Two Sides and offers additional members-only benefits. To date, more than 50 companies in the U.S. print and paper value chain have joined Two Sides.
"Two Sides is helping our industry send a positive, credible, and consistent message based on facts," says Chris Creighton, president, PaperlinX North America. "Its presence in the U.S. will also greatly strengthen the international network committed to the sustainability of print media."
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Below is the latest listing of job openings in the TAPPI Career Center. The current listing includes a variety of maintenance specialist positions as well as a pulp and paper internship, safety manager, and executive director of a paper industry association. Current, specific job openings at companies and locations in the TAPPI Career Center include:
Employer |
Title |
Location |
Catalyst Paper |
Maintenance Supervisor – E&I |
British Columbia, Canada |
Catalyst Paper |
Maintenance Engineer – Mech. |
British Columbia, Canada |
Catalyst Paper |
Maintenance Supervisor – Mech. |
British Columbia, Canada |
Catalyst Pape |
Maintenance Planners |
British Columbia, Canada |
GL&V USA INC. |
Pulp and Paper Internship |
Nashua, N.H. |
Land O Lakes |
Sr. Process Engineer |
Hampton, Iowa |
Pratt Paper |
Paper Mill Process Engineer |
Shreveport, La. |
Rayonier Inc. |
Production Engineer, Utilities |
Fernandina Beach, Fla. |
Recyc. Paperbd. Tech. Assn |
Executive Director |
Work from home |
RockTenn |
Safety Manager |
West Point, Va. |
More information about these jobs is available online.
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Market Roundup
"Are global NBSK prices approaching a bottom?" asks Mark Wilde, senior analyst with Deutsche Bank, who notes that in Europe, NBSK (northern bleached softwood kraft) producers are attempting to raise January ($850/metric ton) prices. Canfor recently announced January North American NBSK at $870/metric ton, -$20 m/m, he adds. "We remain cautious. Pulp demand in Europe is weak, paper demand in other developed countries remains soft, and pulp inventories remain high. A weakening euro is reducing the ‘break-even' point for high-cost European pulp mills and could drive U.S. $-based prices lower," Wilde says.
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Domestic OCC appears to be stabilizing at $110 - $120/ton level and is beginning to rebound, up ˜$5/ton in the past two weeks, driven largely by renewed export demand, Wilde reports. "We view this as positive for containerboard producers as high OCC prices translate into a higher global containerboard cost curve. At the same time, improving OCC demand is typically an indicator of strength in the global containerboard market," he says.
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A two-yr run-up in prices is over. Kraft paper markets have weakened and prices are falling. Trade papers are reporting a $30/ton m/m decline in estimated extensible sack kraft prices (December North American kraft paper is at $1,120 - $1,140/ton, +7.6% y/y), with a possibility of further declines in January, and 70-lb and 30-lb grocery bag prices were both down $30/ton m/m, Wilde reports. The key issue, he points out, is weakness in Europe and its ripple effect on domestic supply/demand balance. "Reports suggest European spot prices are ˜$50/ton below domestic levels. Natural multiwall prices were flat in December. KapStone's efforts to implement its $50/ton kraft paper price hike by the first quarter of this year looks increasingly difficult to us," Wilde says.
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North American newsprint estimated prices were flat at $640/metric ton in December, according to Wilde. While demand is soft from a cyclical standpoint, secular pressures remain intense, he adds. White Birch, he points out, has idled its big 550,000/metric tpy Stadacona newsprint mill in Quebec City, Canada (see article in Pulp & Paper section below).
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Pulp & Paper
Fabrica De Papel San Francisco S.A. de C.V., Mexicali, Mexico, has ordered a complete tissue production line from Metso, Finland, to startup in the second quarter of 2013. The value of the order has not been disclosed, but according to Metso, this kind of production line is typically valued at EUR 10 - 15 million, depending on capacity and scope of delivery.
Metso's scope of delivery will include a complete tissue machine equipped with a headbox, a yankee cylinder, a yankee hood, sheet control, tail threading equipment, a dust management system and a reel. The new tissue line will use 100% recycled fiber as raw material.
The delivery is a repeat order from Fabrica De Papel San Francisco. The company now successfully operates two Metso tissue machines at its Mexicali facility, one started up in 2006 and the other in 2009.
Fabrica De Papel San Francisco currently operates four tissue production lines and converting facilities, delivering tissue products for the Mexican market.
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Glatfelter, York, Pa., a producer of specialty papers and fiber-based engineered materials, this week inaugurated its newest festooning line at the company's Gatineau, Que., Canada, facility. The multi-million technology investment virtually doubles the company's North American capacity in rapidly growing global markets for disposable and absorbent hygiene and personal care, home care, and food packaging products.
Glatfelter notes that its proprietary technology delivers a sustainable competitive advantage for manufacturers of nonwoven goods by lowering total logistical costs, improving material handling, and increasing converting run-times, while reducing dust generation. "In today's challenging global economy, these are critical performance features for manufacturers of end-use nonwoven goods," said Glatfelter chairman and CEO Dante Parrini.
Glatfelter adds that the inauguration also represents its continued commitment to the Gatineau community, and an anticipated increase in local employment opportunities as the line becomes operational and worldwide demand for festooned airlaid products continues to rise.
Jonathan Bourget, VP and GM of the company's Advanced Airlaid Materials Business Unit, added that "the investment in this technology allows us to more closely align with our sustainable manufacturing philosophy while improving our ability to deliver quality products to our customers in a timely fashion."
Glatfelter's U.S. operations include facilities in Spring Grove, Pa., and Chillicothe and Fremont, Ohio. International operations include facilities in Canada, Germany, France, the U.K., and the Philippines, a representative office in China, and a sales and distribution office in Russia.
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Nanaimo Forest Products, owner of the Harmac pulp mill in British Columbia, Canada, is building an electrical generation plant at the mill. The company reached a 15-yr deal with B.C. Hydro to produce 25 MW of power at the mill, enough electricity to light 17,000 homes.
Wood biomass will be used to generate steam that will power the generator. The power generation plant is expected to cost $45 million and take 18 months to build. Levi Sampson, president of Nanaimo Forest Products, said the company plans to begin construction of the new generation plant immediately. The company will cover all costs of the project, and will use $27 million in federal funding it received under the federal Pulp and Paper Green Transformation Program. Some 85 construction and technical jobs will be created during the construction.
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Kimberly-Clark, Dallas, Texas, USA, reports that its pulp mill at Everett, Wash., will permanently close by the end of March, after negotiations to sell it to Atlas Holdings recently broke down over environmental issues. Most of the mill's some 700 employees will soon be out of a job, with the facility being operated by a skeleton crew. Eventually, the waterfront site will be razed and sold for development, according to a local newspaper report.
K-C had announced in January 2011 that it was closing down the last of its pulp operations, including the Everett mill. On September 1, the company announced it would lay off workers if a buyer could not be found by the end of the year.
The newspaper report noted that the environmental issues were related to Everett's East Waterway, which is part of the governor's Puget Sound Initiative to clean up pollutants. Scientists are studying the area's pollution and who should be responsible to clean it up. The waterway has been identified to contain dioxin, a carcinogenic toxin produced during bleaching of pulp with elemental chlorine.
The Everett mill was started up in 1931 as Puget Sound Pulp and Timber Co. It became Soundview Pulp Co. in 1935 and was purchased by Scott Paper in 1951. Scott merged with K-C in 1985. Since the merger, K-C has invested some $300 million in the Everett operations, installing major wastewater treatment systems, adding a new effluent outfall, and switching its pulp bleaching from elemental chlorine to chlorine dioxide.
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Metsä Tissue, part of the Metsäliitto Group, Espoo, Finland, reports that it will close its production, converting, and supply chain operations at the Konstancin-Jeziorna mill near Warsaw, Poland. Operations will be terminated in April.
The company says it has carefully analyzed three alternative options for the future use of the Konstancin-Jeziorna site, which were initially communicated in May 2010. The three alternatives were to use the site for warehousing and converting, to use it solely for warehousing, or to rezone it for residential development. The company has now confirmed that all production at the site will cease in April and the two latter options are to be studied further.
"As our Polish and other Eastern and Central European customers can be served by our other mills in Poland, Slovakia, Germany, and the Nordic countries, after weighing our options, this decision – though not easy – was the only sensible course of action. The closure will affect up to 140 employees," said Hannu Kottonen, CEO of Metsä Tissue. The company has initiated a consultation procedure with the Polish employee representatives.
"We made this decision to close our operations in Konstancin-Jeziorna also due to the obsolete infrastructure, which would have required significant short- and long-term investment and would have been unsustainable for the company," added Lars Warvne, SVP, Technology and Operations, Metsä Tissue.
Since the initial announcement in May 2010 and during the evaluation of the three options, Metsä Tissue has been working intensively with local authorities to find sustainable solutions to offset the impact of the closure on the community infrastructure. Metsä Tissue has been discussing the option of rezoning the site for alternative uses with local authorities. The rezoning option could support the city's development as an attractive residential area close to Warsaw. At this stage, the company wants to keep alternative uses of the site open.
As part of Metsä Tissue's development program announced in May 2010, the company will invest in upgrading its Krapkowice mill in southern Poland to increase production capacity and to enhance the brand, product, and service offering. Implementation of the plan, which includes the closure of Konstancin-Jeziorna's operations, will contribute to better productivity and sustainability, while also ensuring that the company remains a reliable long-term partner for its customers.
Metsä Tissue has production units in Finland, Germany, Poland, Russia, Slovakia, and Sweden. It employees some 3,200 people, and its turnover for 2010 was about EUR 940 million. Metsä Tissue is part of the Metsäliitto Group.
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Metsäliitto Group, Finland, reported this week that it has begun testing of Finland's new FSC (Forest Stewardship Council) certification standard in part of its own forests. The Group's forests have already been certified according to the PEFC (Programme for the Endorsement of Forest Certification) standard. In the future, the FSC standard will be applied in these forests as well.
The project covers the forests owned by Metsä-Botnia and Metsäliitto Cooperative, both part of the Metsäliitto Group. The total surface area of the forests is approximately 35,000 hectares. Metsäliitto expects to get the FSC certificate by the end of 2012, and will then offer its members who have forest management service agreement the option to join Metsäliitto's FSC group certificate. Metsäliitto already offers a similar PEFC group certification to its members who have forest management service agreements.
"Forest certification is all about the sustainable use and management of forests. Certification systems are voluntary and support the well-being of forest and confirm the legal origin of the wood. Metsäliitto supports both of the current certification systems. With the new FSC certification, Metsäliitto members will have more choice in their forest certification process," says Juha Mäntylä, Group EVPt.
"We aim at a continuous increase in the volume of certified products," Mäntylä says, adding that "at the moment, approximately 80% of the wood used by Metsäliitto is PEFC or FSC certified, and we wish to promote forest certification in all our areas of operation."
The PEFC standard is the predominant certification system in Finland. Currently, approximately 95% of Finnish forests have been certified according to PEFC. Finland's new FSC standard was approved in May 2011, and 2% of the Finnish forests have been certified according to FSC. Only approximately 7% of the world's forests have been certified, two-thirds of that amount using the PEFC system
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AbitibiBowater Inc., Montreal, Que., Canada, doing business as Resolute Forest Products, this week announced that it would issue a notice of variation to the offer circular and other ancillary documentation in connection with its outstanding offer to acquire Fibrek Inc., Montreal, Que. The notice of variation will describe certain changes to the offer documents, including the registration statement filed with the U.S. Securities and Exchange Commission (SEC), the sole purpose of which are to address comments from the SEC in its customary review process. From the perspective of Fibrek's shareholders, Resolute notes, the terms of the offer are substantially consistent with the original offer.
Following Resolute's offer to acquire Fibrek this past November 28, Fibrex's board of directors filed a "Directors' Circular" on December 30 recommending that the company's shareholders reject the "unsolicited insider bid." The board also recommended that any shareholders who have tendered their common shares withdraw them. The Fibrex board noted that Resolute's bid "is timed to take advantage of turbulence in the capital markets and cyclical trough in pulp prices and deprives minority shareholders of significant intrinsic value in the NBSK pulp business, electricity production, and profitable long-term agreement in the RBK segment. "
We are committed to move forward and are addressing one of the regulatory steps in our offer to purchase Fibrek," said Richard Garneau, president and CEO. "We also acknowledge Fibrek's directors' circular filed on SEDAR on December 30. It does not change our firm belief that the offer we announced on November 28 presents Fibrek's shareholders with a compelling opportunity. The fact that three of their largest individual shareholders, representing approximately 46% of the outstanding shares, have agreed to tender their shares to our offer supports that belief."
Resolute says that Fibrek shareholders should consider the following factors in making their decision to accept the offer:
- The offer represents a substantial premium to Fibrek's pre-announcement trading price
- The offer is not subject to any financing condition
- Fibrek shareholders have the opportunity to exchange their shares of Fibrek, which had been thinly traded through to the date the offer was announced
- Resolute is uniquely positioned to integrate Fibrek into its existing operations
- Fibrek shareholders who become Resolute shareholders will own shares in a company that:
- is financially stronger
- has a diversified asset and product base
- is committed to continue improving its flexible, low-cost manufacturing position
- maintains a prudent capital structure, with a ratio of long-term debt to last 12 months adjusted EBITDA of 1.3x as of the end of the third quarter of 2011.
The offer, which Resolute is making together with RFP Acquisition Inc., a wholly-owned subsidiary, is more fully described in the offer circular and other ancillary documentation the company filed on December 15, 2011, on the Canadian Securities Administrators' website (SEDAR), as amended on January 9. The offer will expire at 5:00 p.m. (Eastern Standard Time) on January 20, unless it is extended or withdrawn by Resolute.
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White Birch Paper Co., Quebec City, Que., Canada, reports that it has presented a global proposal to employees of its idled Stadacona mill in Quebec City. Following a thorough analysis of the mill's cost structure, White Birch says the proposal represents a final opportunity to implement savings necessary for Stadacona to avoid permanent closure in light of significant manufacturing cost disadvantages, as well as the ongoing deterioration of economic conditions in the newsprint industry.
Commenting on the proposal, Christopher Brant, president of White Birch said that "while I remain acutely aware of the pain that Stadacona's idling has already imposed on our valued employees and community, I must emphasize that the situation at the mill is extremely grave. Without significant reductions in salary, pension benefits, and other costs, Stadacona simply cannot survive."
Brant added that "in spite of the mill's dire economic situation, White Birch has made a final proposal to its unionized employees. Acceptance of this proposal is essential for the mill to resume operations and will help ensure the mill's long-term viability, while reestablishing its position as a valued employer in the Quebec community. The proposal we have submitted today represents the final opportunity to secure that outcome and I urge Stadacona's employees to give it serious consideration."
White Birch produces newsprint, directory paper, and paperboard, with mills in Canada and the U.S. It is the second largest newsprint manufacturer in North America.
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Containerboard/Packaging
KapStone Paper and Packaging Corp., Northbrook, Ill., USA, this week said that the U.S. Internal Revenue Service (IRS) has notified the company that the Joint Committee on Taxation approved its 2007-2009 examination reports as filed. As a result of the finalization of the IRS examination, KapStone will reverse in the fourth quarter $63.6 million of gross unrecognized tax benefits and accrued interest expense related to the company's position on alternative fuel mixture tax credits.
Upon reversal of this liability, KapStone's net income and diluted earnings per share for the fourth quarter of 2011 will reflect an increase of $63.6 million and $1.34, respectively.
KapStone Paper and Packaging Corp. is a producer of unbleached kraft paper products, linerboard, and shipping containers. It 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. The business employs approximately 2,700 people.
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MeadWestvaco Corp., Richmond, Va., USA, is expanding its capabilities in targeted packaging end-markets with the acquisition of Polytop Corp., a designer and manufacturer of dispensing closures. Terms of the acquisition were not disclosed.
Polytop's offices and manufacturing facilities in Slatersville, R.I., will remain in full operation and become an important part of MWV's primary plastic operations and global manufacturing platform. In addition to offering a broad range of standard dispensing closures, including its Spouted (Turret Cap), Tube and Polycam® (flip tops, hinged) lines, Polytop also produces custom-designed dispensing closures that utilize the company's orifice and dosing technologies.
The Polytop management team will remain in place and all 180 Polytop employees will become MWV employees.
"The acquisition of Polytop extends our participation in attractive packaging end-markets that we have targeted for profitable growth around the world," said John A. Luke Jr., MWV chairman and CEO. "With Polytop, we are expanding the innovative capabilities that we can bring to the world's leading brand owners to meet their global packaging needs."
Luke added that "we have an aggressive growth strategy that targets more than $1 billion of additional revenue over the next three to five years through initiatives centered on commercial excellence, innovation, and emerging markets that we will augment with bolt-on acquisitions that bring us new technologies or capabilities. Polytop exemplifies the high-return opportunities we will add to our packaging platform to deliver the best possible solutions to our targeted global customer base."
William Masser, retiring Polytop CEO, noted that "we see this as an excellent opportunity for Polytop Corp. Combining with MWV allows us to better serve the needs of our customers by broadening the range of dispensing products and expanding the technologies we can now offer, and doing so on a global basis."
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Orient Paper Inc., Baoding, Hebei, China, reports that it recently completed all testing operations and launched commercial production of its new corrugating medium paper production line. The company also has developed a video of the new 360,000 metric tpy corrugating medium paper production line that can be viewed online.
The video includes footage on sourcing of key raw materials, its pulping procedure, power supply system, and operation of the new production line. It provides a behind-the-scenes look at Orient Paper's new facility and its advanced manufacturing capabilities.
Zhenyong Liu, chairman and CEO of Orient Paper, noted that "the production launch of our new corrugating medium paper production line marks an important milestone for Orient Paper. We believe with the additional production capacity, we are set to expand our market share, revenue, and net income growth in fiscal year 2012 and beyond."
Orient Paper, through its wholly owned subsidiary, Shengde Holdings Inc., controls and operates Baoding Shengde Paper Co. and Hebei Baoding Orient Paper Milling Co. (HBOP). Founded in 1996, HBOP produces and distributes products such as corrugating medium, offset printing paper, and other paper and packaging-related products in China. The company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009, produces and distributes digital photo paper. As one of the largest paper producers in Hebei Province, HBOP is strategically located in Baoding, a city in close proximity to Beijing where the majority of publishing houses are based.
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Stora Enso, Helsinki, Finland, has signed an agreement with the European Investment Bank (EIB) for a EUR 150 million loan to be used for a new containerboard machine project at its Ostrołęka Mill in Poland. The loan matures in 2023.
Main items for the Ostrołęka project have been procured and construction work is progressing as planned, the company noted. The EUR 285 million containerboard machine at Ostrołęka is scheduled to be completed in the first quarter of 2013.
"The investment at Ostrołęka will strengthen our competitive position in corrugated packaging in the growing markets of Central and Eastern Europe, and is one more step in building sustainable and profitable growth for the Group. The new containerboard machine, with a modern product and greater capacity than the machine it replaces, will not only renew our product offering, it will also improve our overall cost position through efficient internal supply of lightweight containerboard made from recycled fiber," said Mats Nordlander, EVP, Packaging Business Area.
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New Products
Appleton, Appleton, Wis., USA, has introduced a new product that is says provides carbonless roll printers a way to compete in a forms market that relies more and more on digital printers and copiers for end-use applications. NCR PAPER brand Digital Sheet Quality (SQ) gives roll printers a cost-effective option to offer carbonless forms for the small quantity, variable data print forms their customers often run on digital equipment, Appleton notes.
NCR PAPER brand Digital SQ carbonless rolls require no upfront investment by roll printers because the product runs cleanly and smoothly on offset printing equipment. Clean-up procedures and costs are no different than those for other carbonless products, the company explains.
Digital SQ is 92 bright, and enhanced ink and toner adhesion provide a more high-end appearance. Edge padding performance provides the option to create individual glued form sets for specific information needs.
Digital SQ is also environmentally responsible and made in the U.S. at FSC-certified facilities with ISO 14001:2004-certified environmental management systems, according to Appleton. It is recyclable and includes vegetable-oil-based capsules. Appleton also offers FSC-certified sheet products in stock and on request.
Appleton has manufacturing operations in Wisconsin, Ohio, and Pennsylvania, employs approximately 1,900 people, and is 100% employee-owned.
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People
Lars Winter has been appointed new CEO of Domsjö Fabriker, Sweden, succeeding Ola Hildingsson, beginning March 1. Winter is a Licanciate of Technology and has broad experience from various previous positions in the forest industry. He currently occupies a position as VP Technology and Business Development at Holmen Paper.
Domsjö Fabriker operates a mill/refinery in Örnsköldsvik, specializing in refining forest raw materials into specialty cellulose, lignin, and bioethanol.
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Wausau Paper, Mosinee, Wis., USA, this past week appointed Matthew L. Urmanski to the position of SVP – Tissue, and Michael R. Wildenberg to the position of SVP - Tissue Strategy. Both appointments become effective March 1.
Urmanski, 39, joined Wausau Paper in 2000 and has most recently served as VP - Administration for the Tissue segment, responsible for Tissue strategy, finance, and supply chain operations. He has played an instrumental role in the development of the company's Tissue growth strategy and the building of its Tissue operating team.
Wildenberg joined Wausau Paper in 1981 and has served as SVP for Wausau's Tissue segment since 2009. He plans to retire in July and will work with the Tissue leadership team to insure a smooth transition.
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TAPPI News
How to Create a Safety Culture At Your Mill
Ohio TAPPI's upcoming meeting on January 20, 2012 has several insightful presentations that outline in details how to set up a safety oriented culture. The meeting program, however, does not "preach" about benefits of safety or use shocking stories about injuries to show why safety is important.
Instead, the program is designed to provide practical perspectives from employees, management, consultants and regulators on what it takes to implement a safety culture at a pulp and paper mill.
The meeting will be held at the Roberts Centre in Wilmington, Ohio, located just off 71 at the Route 68 exit (exit 50). Fees for TAPPI members are $25 for pre-registered and $40 at the door. Non-members fees are $50. In addition to information sesssions brief commercial breaks on safety solutions wil be provided by meeting sponsors.
Attendees can pre-register by contacting Glen Miller, Treasurer, at glen.miller@mohawkpaper.com.
For further details, see the Meeting Flyer.
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Gulf Coast TAPPI February 2012 Meeting
Dates: Technical Sessions, Thursday, February 23rd; Mill Tour, Friday, Feb 24th
Location(s): Technical Sessions, South Birmingham, Ala., at the Marriott on Grandview Parkway, just off 459 & 280; Mill Tour, Resolute Forest Products, Coosa Pines, Ala.
Subjects: Lime Kiln & Recausticizing / Operations & Maintenance
The primary focus of the technical sessions will be on recent projects in these areas to improve efficiency, productivity & up-time.
Planned Presentations:
- Lime Kiln Dust Collection System Retrofit at Coosa Pines
- Increasing Lime Production with First LimeFlash Feed System
- Impact of Fuel Type on Kilns with Suspension Dryers
- Improve Kiln Operations Using Inside-the-Kiln Mud MC Sensor
- Lime Kiln and Recausticizing Systems Advanced Process Controls
- Hot vs. Cold Kiln Alignment
- Latest Technology for Lime Mud Precoat Filter Media
- Innovations in Direct Steam Injection for Liquor Heating
- General Review of Lime Kiln PM Procedures
- Additional presentations will focus on other operational and maintenance topics related to kilns, as well as the Recausticizing area
Mill Tour: Resolute Forest Products, Coosa Pines, Alabama (Resolute reserves the right to restrict competitors).
Hotel: Birmingham Marriott (just south of I-459 on Hwy 280); Phone: 205-968-3775; Rate: $119 until Feb 8, Mention Gulf Coast TAPPI. Hotel Website.
Vendor Tabletops: $100, Contact Jim Thompson, 318-768-4581 or fthompson@TDC-home.com
For questions about this program, please contact: Glenn Hanson via phone at (404) 432-4498 or via email Glenn.Hanson@metso.com
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Training Webinar for TAPPI Speaker Management System
TAPPI is pleased to announce a training webinar for prospective Speakers on the Speaker Management System on Thursday, January 19, 2012 from 9:00 to 10:00 AM EST.
This webinar will teach you:
- How to submit an abstract for an event's technical program
- How to upload your files for an event
REGISTER NOW
This will be recorded and made available on the TAPPI website for those unable to attend the webinar.
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Leading up to the Sustainability Forum at PaperCon in April, a series of webinars are planned to help manufacturers and customers better understand key issues around sustainability. The first in this series reviews the updated FSC and SFI standards.
A Comparison of the FSC and SFI Forest Certification Standards
January 30, 11:00 am; Facilitated by: Katie Fernholz, Dovetail Partners
The Forest Stewardship Council (FSC) and Sustainable Forestry Initiative (SFI) standards offer two approaches to forest management certification. Both programs recently updated their standards for forest certification auditing in the United States. This webinar will review the FSC and SFI standards and some of their key differences. The information from this discussion will be helpful to land managers that are audited to these standards as well as to manufacturers and customers interested in understanding the requirements behind these eco-labels.
Learn more and make plans to participate.
PaperCon 2012 will take place April 22-25, 2012 in New Orleans, Louisiana, and will focus on "Growing the Future"; leveraging renewable, recyclable raw materials and developing human capital to ensure value for customers, long-term sustainability for shareholders, and a future for our peers. Located in the heart of the Southern USA pulp and papermaking region, PaperCon sessions will highlight today's dynamic packaging sector.
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Call for Presentations/Posters - Deadline Extended
The 2012 Technical Program Committee invites contributions from participants working in research, development and deployment of renewable nanomaterials. The deadline to submit abstracts and papers are outlined below. The 2012 TAPPI International Conference on Nanotechnology for Renewable Matgerials will be held June 4-7, 2012 in Montreal, Quebec, Canada, at the Hyatt Regency Montreal.
The conference technical focus has been expanded to include other nanomaterials along with cellulose. Abstracts that focus on new and novel uses are highly encouraged. Analysis of challenges and trends in emerging markets for renewable nanomaterials are sought to provide a foundation for new research and industrial activities. The organizers also encourage submissions on other aspects of nanotech products including law, policy, economics and environmental health and safety
ABSTRACT SUBMITTAL
Submit title and 300 word or less abstracts via TAPPI's Speaker Management System: click here to sign in. Due by January 20, 2012. Extended abstracts or papers due March 7, 2012.
Requirements for extended abstracts: 2 pages, single spaced, in a Word format. Papers need to be single spaced, also in a Word format.
See the Conference Flyer and Conference Website more information. Reduced conference rate available for speakers.
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Mark Your Calendar for PaperCon 2012
April 22-25, 2012 in New Orleans
Designed by industry professionals, PaperCon brings together CEOs, mill managers, superintendents, scientists, process engineers and suppliers for the largest pulp and paper technical program in the world. No other event provides such a comprehensive program, networking opportunities and exhibit among such a distinguished group of industry leaders.
For 2012, PaperCon is about "Growing the Future", leveraging renewable, recyclable raw materials and developing human capital to ensure value for customers, long-term sustainability for shareholders, and a future for our peers. Located in the heart of the Southern USA pulp and papermaking region, New Orleans, PaperCon sessions will highlight today's dynamic packaging grades.
New this year:
- Control Systems 2012: Open to PaperCon attendees, this is the first US appearance for this highly-respected bi-annual conference.
- RPTA Production-Technical Seminar: Addresses the unique technical challenges and market dynamics of recycled paperboard manufacturing, making this a comprehensive conference for paperboard, linerboard, containerboard and packaging grade mills.
- Sustainability Forum: A fresh look at the "Science Behind Sustainability".
- OpEx Reliability Seminar: A two-day seminar designed for mill maintenance and reliability supervisors.
- Coating 101 Course: An introductory level 1.5 day course covering basic science behind paper and board coating.
Additional Program Highlights include:
- Executive Panel: Learn directly from Industry CEOs as they share their perspectives on the paper industry's outlook.
- Largest PaperCon Exhibit Ever: Encompassing two ballrooms at the Sheraton New Orleans, 2012 is the largest exhibit in the event's history..
- Young Professionals Program: Organized with the help of PIMA, these sessions are designed for pending paper science graduates and professionals new to the industry.
Learn more about PaperCon.
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The 2012 TAPPI PEERS Conference, October 14-17 in Savannah, Georgia, has announced the Call for Papers. PEERS is the perfect forum for paper industry professionals both to acquire practical operating insights and to network with industry peers in technical sessions, tutorials, round tables, new technology sessions and workshops.
Topics suggested for the 2012 technical program are as follows:
- Fiber and Pulping
- Mill Operations and Engineering
- Steam and Power
- Recycling
- Environmental Management and Regulation
- Sustainability
Abstracts on other topics are welcome.
Learn more.
Authors interested in presenting a paper should upload their extended abstract to TAPPI's Speaker Management System by March 9, 2012.
Authors will be notified of acceptance by April 20, 2012 and must provide a full text manuscript by July 20, 2012.
For more information please contact Craig McKinney, TAPPI Program Manager at +1.770.209.7294
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TAPPI Over the Wire | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947
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