Over the Wire
TAPPI
Weekly Spotlight
Early registration discounts have been extended to April 13 for TAPPI's PaperCon 2010 and the co-located Twenty-Third Process Industry Reliability & Maintenance (PIRM) Conference at the Hyatt Regency Atlanta, Atlanta, Ga., USA, May 2-4. Hotel rooms for both events, however, are selling out fast and should be reserved before April 9 for the best rates.
A special feature of this year's PaperCon event is a one-day Sustainability Forum focused on non-governmental initiatives that will transform how we think about sustainable packaging. This forum will hear directly from several of the most influential developers of sustainability concepts, from the scientists guiding prominent advisory groups to the top engineers designing systems and products. In one content-rich program, you'll be up-to-date on the latest developments in the field and better prepared to assess the goals and plans of your own organization. Learn more online about this one day forum.
Another special addition to this year's PaperCon program is the Young Professionals Track. Focusing on topics such as "Interviewing and Networking," "The Essence of Project Management," and "Coating 101," this new program track provides up-to-date pertinent information, connections, and networking to young professionals who represent the future of the industry—pending graduates, recent graduates, and young professionals.
Also at PaperCon 2010, more than 50 exhibitors will bring the latest innovations in products and services right to you. Bring your wish list and spend some time doing side-by-side comparisons, talk directly with product experts and come back to work with new ideas and solutions
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NewPage, Miamisburg, Ohio, USA, announced this week that it will co-develop a new 60 MW biomass co-generation facility at its Port Hawkesbury, Nova Scotia, mill (Port Hawkesbury Corp.) in partnership with Nova Scotia Power Inc. (NSPI), Halifax, Nova Scotia. The development entails an NSPI investment of $200 million, including $93 million in construction costs for new facilities, $80 million to purchase assets from NewPage, and other related costs. NewPage will be responsible for construction and operation of the co-generation facility and completely responsible for fuel supply. Targeted startup is late 2012.
Only "stem wood" will be used in the project's biomass energy generation. Tree stumps, tops, and branches will not be removed from the forest floor, NewPage notes, "as they are necessary in restoring nutrients in the soil so new trees can grow."
The proposed co-generation project represents another important step toward meeting Nova Scotia's renewable energy commitments while at the same time creating and sustaining jobs in the province. The local biomass fueled co-generation facility could supply Nova Scotians with approximately 400 GWh annually, representing approximately 3% of the province's total electricity requirement. The project is expected to create an estimated 150 new jobs in Northern Nova Scotia, primarily in the forestry sector, in addition to maintaining the Port Hawkesbury mill's existing workforce of approximately 550 employees. Approximately 50 person-years of employment will also be created during the construction phase.
"This co-generation project is one more step in our continuing journey to make the Port Hawkesbury mill the most energy efficient and environmentally sustainable in the industry," said Bill Stewart, drector, Woodlands and Strategic Initiatives, NewPage Port Hawkesbury. "This will help the Port Hawkesbury mill move towards elimination of fossil fuel use at our mill site." The Port Hawkesbury mill has the capacity to produce 190,000 metric tpy of standard and improved newsprint and 360,000 metric tpy of SC papers for the catalogue and magazine paper markets. The company's Woodlands Unit currently manages approximately 600,000 hectares of Crown land in the seven eastern counties and an additional 20,020 hectares of company-owned land.
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This year, the Syracuse Pulp and Paper Foundation Inc., Syracuse, N.Y., USA, will celebrate 50 years of helping recruit and educate bright young people for the pulp, paper, and affiliated industries. During the past half century, nearly one thousand State University of New York College of Environmental Science and Forestry (SUNY ESF) paper graduates have benefitted from the $3.5 million given by the foundation in scholarships.
Celebration events will begin on Friday, October 15, at Drumlins Country Club in Syracuse (a wholly-owned subsidiary of Syracuse University) with a golf outing at 10 am. Later that evening, the Beater Rat's Ball will provide an opportunity to reminisce and socialize with alumni, faculty, and students. On the following Saturday and Sunday, October 16 – 17, special activities are planned for the ESF Alumni and Friends Weekend. It's Syracuse University's homecoming, with the football team playing Pittsburg in the Carrier Dome. Kick-off will be celebrated at the Walters Hall tailgate party, hosted by the Paper and Bioprocess Engineering students. Further information is available on the SUNY ESF website.
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To celebrate Earth Day (April 22), Dr. Art Ragauskas, professor at the Georgia Institute of Technology, Atlanta, GA., USA, plans to hold a global poster session on his website dealing with the conversion of forest materials (bioresources) to biofuels, biopower, bio-based materials, and chemicals. The poster session will open Earth Day and be available to the general public.
Anyone wishing to submit a pdf poster should send it to Bob Davies at bob.davies@ipst.gatech.edu along with the poster pdf, submit the following info: poster title, author, organizational affiliation, a two- to three-sentence abstract, and four key words. Indicate the Poster Focus Area: Bioresources, Biofuels, Biopower, Biomaterials, or Bio-based Chemicals.The poster should be in English and more than one submission is welcomed. Please submit early so that all pdf posters can be uploaded. Please do not use any confidential information in the poster as it will be open to the public.
Finally, all posters need present material following the same guidelines as practiced by ACS (American Chemical Society). Dr. Ragauskas notes that "we are looking for posters summarizing research and not an advertisement for commercial products." He adds that "we reserve the right to deny posting a poster if the material is not consistent with general ACS publication policies. We hope that this can become a student focused event on Earth Day and bring our community closer together."
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Market Roundup
Positive indicators suggest that demand in the global forest, paper, and packaging (FP&P) sector will strengthen during 2010, according to a new report by the Toronto, Ont., Canada-based Deloitte Global Manufacturing Industry group titled Compass 2010: Global forest, paper, and packaging sector outlook. As the global economy shows signs of improvement, a moderate rise in sales from key end markets including construction and pulp will help the sector to fare better in 2010, the report notes.
"Companies are taking a more disciplined approach in executing their corporate strategies," says Luc Martin, Deloitte's FP&P sector leader. "As a result, companies are better able to combat challenges of overcapacity and manage prices to anticipate future demand."
According to the report, consolidation activity is expected to continue this year in certain product lines such as containerboard. Restructuring through bankruptcy is expected to continue in North America and Europe while companies with the financial health to do deals will still face distressed credit markets and the need to look for alternative financing options. In this depressed market, assets are undervalued and private equity will look to take advantage of the potential upside once restructuring of the industry is completed. Private equity will increasingly be involved in the industry over the next few years with likely deals emerging in forestry markets such as Uruguay and Argentina. A strong appetite among investors for paper-type assets that can provide shorter-term attractive valuations is also an emerging trend.
Out of the tough economic conditions, industry players will likely refocus efforts towards innovation as a source of growth. Biofuels is just such an opportunity. "Growing investments in biofuels from wood residues could improve operating margins and create a lower dependence on fossil fuels for producing energy internally," says John Dixon, Deloitte's Paper & Packaging leader in the U.S. "Several European and North American companies are placing bets in biofuels for future revenue growth."
Martin adds that "with biofuel, sustainable products and wind generation, the traditional FP&P company has begun to peek beyond the traditional offerings and embrace the next generation of growth while continuing to maintain a diligent focus on operational effectiveness in their mills. Broad growth may be difficult to come by this year in North America and Europe, but the global FP&P sector in 2010 will likely see recovery in key subsectors with stronger growth in markets like South America and China,". A copy of the report is available on Deloitte's website.
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As detailed in a separate news item below, later this month Norske Skog will restart its Bio Bio newsprint mill in Chile, following the massive earthquake there in February. And as reported in previous OTW issues, the pulp industry in Chile is also expected to begin recovery and restart operations this month. Deutsche Bank Senior Analyst Mark Wilde reports that Deutsche Bank recently visited Chile's earthquake-rattled Concepción region. "We believe the 'Chile effect' on global pulp supply could easily stretch to six months," he reports, "and result in some 750,000 to 800,000 metric tons of lost production."
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Domestic softwood sawlog prices increased in Russia last year, both in Ruble and in U.S. dollar terms, reports the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. In the 4Q, average pine log prices were more than 30% higher than in the 1Q/09 (in Ruble terms they were up 15% during the year), according to WRQ, which notes that the major reason for the price jump was that production of lumber and plywood picked up towards the end of last year, and demand for logs was slightly higher.
Softwood pulpwood cost also went up during 2009 in Ruble terms, but hardwood pulpwood prices fell. The hardwood log market changed dramatically during 2009 because of the sharp reduction in exports of birch logs to Finland. The export volumes were down by 8.5 million m3, or 72%, from 2008 mainly as a result of reduced demand for hardwood fiber in the Finnish pulp industry. The Russian government's ambiguity and lack of clarity regarding the future policies of log export taxes has resulted in a reluctance from foreign companies to invest in Russia, and many forest companies are considering other regions for their long-term supply of wood raw-material, WRQ points out.
Russia's Prime Minister Putin announced last year that the current log export tax for softwood timber will remain at 20% of the log value (with a minimum of EUR 15/m3) for 2010. He also hinted that this tax might be extended to 2011 if the demand for Russian forest products had not improved by that time. The key message in the Prime Minister's statement was that Russia has no intentions of suspending the export tax altogether as had been requested by the Finnish Government and by the EU. There are, however, indications that the duty-exemption for birch logs night be raised from top-diameter 15 mm to 24 mm.
In addition to a decline in demand for Russian logs, the wood supply increased in the second half of 2009. The winter was very cold in western Russia this year, which was good for logging. More timber is expected to be available in the spring and with substantial log inventories, costs for both sawlogs and pulplogs can be expected to decline later in the spring. Official statistics show that timber harvests were down 15% in 2009 compared with the previous year. This seems low considering the substantial decline in log exports and the reduced domestic production of lumber, wood-based panels, and pulp last year. WRQ estimates that the actual decline in timber harvests last year was closer to 20%. More information is available online.
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Lumber prices in the U.S. have been falling for four years and prices are expected to decline in 2009 also, according to a new report from Research and Markets, Dublin, Ireland, titled Timber, Wood & Lumber Market Data & Forecast—USA to 2014. In September 2009, mill prices of framing lumber on an average declined by 13.2% compared with 2008 prices. This makes the year 2009, the fifth year for consecutive price declines, which is 48.0% below the 2003 price.
Softwood lumber consumption in the U.S., the R&M report points out, declined 34.3% in January 2009, compared with year-before, due to the apparent decline in housing markets. Other wood and lumber products consumption also declined due to apparent lack of demand. Given this situation, most of the manufacturers have reduced their production of wood. More information about this report is available online.
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Pulp & Paper
Fraser Papers, Toronto, Ont., Canada, and its subsidiaries today announced that the company obtained final approval this week from the Ontario Superior Court of Justice to complete the sale of its specialty papers business to Twin Rivers Paper Co. At a hearing yesterday afternoon in the U.S. Bankruptcy Court for the District of Delaware, the court approved recognition of the Canadian Court Order and the sale of the U.S. assets. Fraser and Twin Rivers expect to close the Transaction within the next few weeks.
Under the terms of the Transaction, the creditors of Fraser Papers will receive promissory notes and a 49% common equity interest in the purchaser, Twin Rivers. Brookfield Asset Management Inc., a secured creditor, has agreed to convert its secured claim against the company into a 51% common equity interest in Twin Rivers, and the Government of New Brunswick has agreed to convert its $35 million secured loan and accrued interest into preferred shares of Twin Rivers.
Fraser also announced today that the court has granted a further extension of the initial order under which Fraser was granted creditor protection under the Companies' Creditors Arrangement Act (CCAA). This extension is through July 9, and was supported by PricewaterhouseCoopers Inc., the court appointed monitor of the company's CCAA process. Fraser Papers produces a broad range of specialty packaging and printing papers, with operations in New Brunswick, Maine, New Hampshire and Quebec.
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Norske Skog's (Norway) Bio Bio newsprint mill in Chile, closed since the February earthquake there, will reportedly re-start later this month. The Bio Bio mill, located near Concepcion south of Santiago, has a newsprint production capacity of some 130,000 metric tpy. According to international media, several pulp and paper mills in Chile, which have been closed since the earthquake, are coming back on-stream.
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SCA, Sweden, reports that its Ortviken, Sweden, and Laakirchen, Australia, paper mills produced 45% more FSC-certified publication paper in 2009 than in 2008. "The greatest demand for FSC-certified publication paper is in Sweden, Britain, and Germany, Jan Knuts, head of LWC paper production at SCA, says, adding that "it also grew in France during the year." The company points out that customer interest in FSC-certified publication paper is still growing. Some 14% of publication paper deliveries from SCA's Ortviken and Laakirchen mills in 2009 were FSC-certified, thus meeting the Forest Stewardship Council's standards for wood raw material from forests that are responsibly managed.
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Tembec, Temiscaming, Que., Canada, this week announced that its European subsidiary, Tembec SAS, is in advanced negotiations with Paper Excellence B.V. for the sale of two kraft pulp mills located in Tarascon and Saint-Gaudens, France. This potential transaction would be the culmination of a process first announced in November 2009.
As currently proposed, Paper Excellence B.V. would acquire 100% of the shares of Tembec Saint-Gaudens SAS and Tembec Tarascon SAS, two subsidiaries of Tembec SAS. Total consideration for the proposed transaction would be approximately EUR 100 million (C$137 million), allocated as between shares and assumption of debt, subject to closing working capital adjustments.
Due to the advanced nature of the negotiations, Tembec SAS has initiated the process of consultation with mill employee committees, as required under French Law. Tembec SAS expects to finalize the transaction shortly after the consultation process is complete.
"This contemplated transaction is consistent with the Strategic Plan launched by the company following the February 2008 recapitalization of our balance sheet and, in our view, represents fair value for these assets," said James Lopez, president and CEO of Tembec.
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Tervakoski, Finland, part of the Delfortgroup of Austria, reportedly will retire one of its five paper machines. PM 4, which produces cigarette paper, will be shuttered this year, resulting in the loss of 56 jobs at the mill. The mill's five machines have a combined annual capacity of more than100,000 metric tons of specialty papers. In addition to ThinPrint papers, the mill also produces paper for tobacco-related products, releasebasepaper, cable paper, and watermarked specialties. Its primary production focus is coated ThinPrint papers, and it also produces some hand-made papers.
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Containerboard/Packaging
U.S. demand for corrugated and paperboard boxes is projected to increase 2.4% annually through 2014, to $36.4 billion, with gains driven by an expansion in manufacturing output after the real declines registered during the 2004-2009 period, according to a new report by The Freedonia Group, Cleveland, Ohio, USA, titled Corrugated & Paperboard Boxes to 2014. In particular, an acceleration in shipments of nondurable goods such as food and beverages will support demand for related boxes. Box demand will also be supported by trends favoring Internet-based shopping, the report notes.
Additionally, box demand will benefit from the increasing importance of higher-value boxes that can support improved printing and graphics as producers continue to look for ways to heighten the visual appeal of boxes in order to offset competition from alternative packaging formats. Although boxes with superior graphics capabilities are more prevalent in the folding carton segment, the continued popularity of mass retailers and warehouse club stores has compelled many boxmakers to develop corrugated boxes that can serve as appealing product billboards, the new Freedonia report explains.
Sales of corrugated and solid fiber boxes, which accounted for more than 70% of demand in 2009, will increase 2.7% annually through 2014. Advances will be aided by their well-entrenched position as the shipping container of choice in nearly all manufacturing sectors. Demand will also benefit from the favorable environmental profile of corrugated boxes, which will become increasingly important as producers continue to seek ways to adopt sustainable packaging practices. Moreover, value gains will be bolstered by heightened demand for more costly linerboard grades that can support high-quality printing and graphics.
Demand for folding paperboard boxes will rise 1.8% per annum through 2014, the report continues, slower than the corrugated box annual pace of growth as folding cartons face stiff competition from alternative packaging (e.g., pouches, blister packs, and clamshells) in many markets.Source reduction efforts, many of which involve the elimination or downsizing of cartons, will also restrain demand. However, gains will be supported by advances in printing and graphics capabilities and a more favorable environmental profile than plastic packaging. Set-up box demand will be supported by its widespread use in high-end confectionery, silverware, and jewelry applications.
More information about this report is available on the Freedonia website.
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ConAgra Foods, Omaha, Neb., USA, this week announced five sustainability goals to be achieved by 2015. The goals build on the company's sustainability accomplishments that began in 1992 with the the company's Sustainable Development Awards program. This is the first time ConAgra Foods has set company-wide sustainability goals. The goals for 2015 include:
- Packaging. Compared with 2008, the company will (a) reduce packaging by 10% per pound of product produced, (b) increase the amount of packaging made of renewable resources from 45% to more than 50%, and (c) increase the use of recycled content in packaging overall by 25%
- Greenhouse gas emissions. Reduce greenhouse gas emissions by 20% per pound of product produced compared with 2008 emissions
- Water. Reduce water use by 15% per pound of product produced compared with 2008 water use
- Solid waste. Divert solid waste from landfills by at least 75% compared with 2011 levels
- Supply chain engagement. Encourage continuous improvement of the supply chain in the areas of energy, water, materials and waste, and work with growers to further enhance sustainable farming practices that optimize yield while improving land stewardship.
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Pactiv Corp., Lake Forest, Ill., USA, this past week completed purchasing the stock of PWP Industries, Vernon, Calif. PWP's 2009 sales were approximately $140 million. The purchase price of the acquisition is $200 million. PWP primarily manufactures a range of foodservice containers for several channels, including packer processor bakeries, supermarkets, and quick service restaurants. It operates three manufacturing facilities in the U.S. and employs some 600 people.
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Propapier GmbH has brought its new Metso-supplied linerboard and fluting grades machine online at Eisenhüttenstadt, Germany, near the Polish border. The new PM 2 line at the greenfield mill has a capacity of 650,000 metric tpy producing 70-130 g/m2 containerboards. The 10.85-m wide OptiConcept paper machine has a design speed of 1,900 m/min.
Propapier is part of Progroup, a group of companies providing products and services for the corrugated board-processing industry. Before startup of the Eisenhüttenstadt mill, the company was producing 320,000 metric tpy of testliner and corrugated medium. With the startup of PM 2, production at Progroup's two paper mills will approach one million metric tpy of containerboard.
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Published Pricing
Myllykoski, Finland, has increased prices on all of its publication paper grades by EUR 40 per metric tons, effective April 1. Henrik Björnberg, executive VP of Marketing & Business Development, attributed the increase to rapidly rising raw material costs during the year, especially pulp and other fibers. At the same time, demand has clearly improved in all publication paper grades, he added.
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Norske Skog, Lysaker, Norway, has increased the price of its SC and CMR publication paper grades by EUR 35 per metric ton. The price increase became effective April 1. Norske Skog is producing SC magazine paper at its Saugbrugs mill in Norway, and CMR at its Follum mill in Norway, Walsum mill in Germany, and Bruck mill in Austria. The company's total annual production capacity is 550,000 metric tpy of SC and 850,000 metric tpy of CMR.
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Energy
NewPage, Miamisburg, Ohio, USA, this past week reported that it completed the sale of its hydroelectric facility in Kimberly, Wis., to Kaukauna Utilities, Kaukauna, Wis. The facility has 2.7 MW of installed capacity; Kaukauna Utilities paid $6.1 million for the assets.
Kaukauna Utilities, a community-owned utility founded in 1912, owns and operates seven additional hydroelectric facilities on the Fox River with a total installed capacity of 23.0 MW. NewPage notes that the sale of the hydroelectric facility has no material impact on the remainder of the NewPage Kimberly facility, as it only supplied some 2% of the mill's required electric power during periods of mill operation. NewPage says it is continuing to work with Sanabe & Associates to help identify a qualified buyer for the Kimberly mill.
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People
George H. Tomlinson II, former TAPPI Director, TAPPI Gold Medalist, and TAPPI Fellow, passed away March 16, 2010, at the age of 97. He was also an honorary life member of the Technical Section, CPPA.
After receiving his B.A. Degree in Chemistry from Bishop's University in 1931, and his Ph.D in Chemistry at McGill University in Canada in 1935, Dr. Tomlinson worked in the Industrial Cellulose and Chemistry Department at McGill for a year before joining Howard Smith Chemicals of Ontario, Canada, as chief chemist. He spent his entire career with Howard Smith and its successor companies, being appointed director of research at Howard Smith Paper Mills in 1941, and then director of Research at Domtar (Montreal) in 1961, becoming VP or research and environmental technology there in 1970, a position from which he retired in 1977. After retirement he remained associated with Domtar for many years as senior scientific advisor.
Dr. Tomlinson joined TAPPI in 1942, serving on several committees and the TAPPI Editorial Board. He was elected a TAPPI Fellow in 1969, and was awarded the TAPPI Gold Medal the same year. He was named an honorary life member of CPPA in 1980. Dr. Tomlinson's accomplishments are recorded in more than 40 papers and 19 patents, of which he was author or co-author. He is especially remembered for his work with lignin and black liquor oxidation, as well as development of the Magnefite sulfite process and the Alkafide process in the alkaline pulping area.
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Bob Kearney has joined Klass Associates Inc, Redington Beach, Fla., USA, as a senior associate. Kearney specializes in starch and starch applications for the paper industry. His strengths are problem solving, size press applications, starch in coating formulas, and the use of starch at the wet end of the paper machine.
Kearney has 45 years of starch experience, having worked for Penford, ADM, Cargill and Western Polymer. He is active in the TAPPI Coating and Graphic Arts Division, has served as division chairman, and received the Coating and Graphic Arts Division Leadership and Service Award in 2004.
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Owens-Illinois Inc., Perrysburg, Ohio, USA, has named Radhika Batra VP and chief procurement officer. Batra will be responsible for leading O-I's global strategic sourcing function and driving synergies across the company's regional operations to maximize buying power. Batra joins O-I from Solutia Inc., a manufacturer and marketer of chemical and engineered materials, where she was VP of business process in the CPFilms segment. Previously, she served as VP of supply chain and global procurement at Solutia.
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Rottneros, Sweden, has appointed Tomas Hedström CFO. Effective May 1. Hedström, who has among other things been engaged as an accountant at PricewaterhouseCoopers, joins Rottneros from the SCA Group where he was responsible for the Corporate Finance Department. Prior to that, he held various financial posts within SCA's Swedish and global operations. Hedström replaces Karl Ove Grönqvist, who leaves Rottneros in May.
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SCA, Stockholm, Sweden, this week named Camilla Weiner senior VP Corporate Communications. Weiner has extensive experience from senior positions in communications. She currently holds the corresponding position at Axfood. Her former employers include Ahlsell and Securitas, where she held senior communications positions in both companies. As head of the Corporate Communications staff, Weiner will be a member of SCA's Corporate Senior Management Team, reporting to CEO Jan Johansson.
"Camilla Weiner has a very broad background in marketing, branding, and financial communication on the senior management level, and I am confident that Camilla will make a positive contribution to the development of SCA," Johansson said.
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Travels with Larry
What a deal! A guy grows up in Pittsburgh, graduates from college in 1984 when there aren't many job opportunities in that area, and reads a help wanted ad: "Looking for a technician trainee to go into a 2-year training program. Relocation is required." This isn't so out of the ordinary, except the job was in Italy! What a deal for a single, newly graduated guy whose travel experience was limited at the time. Talk about jumping in with both feet!
On a recent trip through Wisconsin, Eric Fletty and I had the opportunity to visit with that very guy -- Jeff Pallini, President of Fosber America, as we toured the Fosber plant in Green Bay. Jeff currently serves as TAPPI's Corrugated Packaging Council Chair, as well as Chair for TAPPI's Chicago Local Section.
In 1984, Jeff answered that ad and took the job with Perini. At that time, Perini was manufacturing tissue converting equipment. In the middle of his Technical Sales tenure with Perini, Jeff was summoned into the owner's office. He was told that Perini would like to have him work on a market study for two months in the U.S. The strange part of this request was that the market study was not in the tissue industry and was to be conducted on Dry End manufacturers in the corrugated industry. Jeff's mission was to find out if there was room for another manufacturer in the U.S. It turns out that the market study revealed that there was indeed room for another Dry End manufacturer.
Jeff finished his market study and went into the owner's office to make the presentation. Jeff shared with me that he honestly thought this was the end of his role in the study and that he would go back to his previous job. At the close of the presentation, Jeff was told by the owner that he was in agreement with the market study, and wanted to know if Jeff would like to start up the new company in Green Bay, Wis. Well, as you might imagine, he was elated and said yes! But why Green Bay? Perini was already in the area to service the massive tissue industry there.
In 1992, Fosber America was founded. It focused on the corrugator dry end and grew its market share to 70%. By 2002, with industry changes taking place, it was time for Fosber to branch out into the corrugator wet end, so that it now offers complete corrugators.
Fosber was founded in Italy in 1978 by two gentlemen, Mr. Fossaluzza and Mr. Bertani. The initial concentration was on material handling and down stackers. In 1988, Fabio Perini S.P.A. acquired 100% of Fosber S.R.L. In 1989, Fosber was established in the U.S., selling corrugator components from Italy.
Two projects were sold in the summer of 1989, and it was off to the races! In 1992, Perini sold Fosber to the present owners.
When Jeff started, there were approximately 700 corrugators in the U.S. Consolidation in the industry has reduced that number to less than 550. There were 16 major integrateds, and there are now just five. Fosber's business is spilt 80/20 between integrated versus independents.
Jeff adds that there have been other major changes, such as demands on equipment performance and volume, more foreign competition, shortened lead times, consortiums between sheet plants owning a corrugator, and the need for 24-hour full service capability.
How is business? Booming. So far in 2010, the U.S. currently has backlogs for seven new corrugators, with pent up demand causing a surge in new orders. Of those seven corrugators, Fosber has four -- two of which were postponed from 2008 and two others that are new business.
Fosber is an American company with Italian roots. All of the decisions, drawings, components, and deployment are from the U.S. It has approximately 300 visitors each year tour its Green Bay plant.
Service is the key to Fosber's success. Its customers know Jeff personally. "The personal relationships get us in the game, and taking care of our customers after the sale keeps us there," he says.
One of Fosber's great assets that keeps them in the game comes in the form of training. Jon Porter, Senior Trainer/Process Specialist, took us on a tour and demonstration of the company's training facility. This service is offered to Fosber's customers so they have firsthand, real-time experience with running their equipment.
Jeff is a big Green Bay Packers football fan. As you might imagine, Brett Favre was, and still is, one of his favorite players. Knowing this, I emailed him the day the Vikings were coming to Green Bay with Favre as their new QB. I asked him who he would be pulling for, and in classic Pallini style, he replied, "I love the guy but you always have to go with the team." Go Packers!
Jeff and Fosber exude that team spirit in person as well as on the company website, where it emphasizes family: "At Fosber you are not just buying a machine, you're joining our family!"
For more information on Fosber, please go to www.fosber.com.
For more informaion on TAPPI, please go to www.tappi.com.
There are two types of people in our industry, TAPPI members and those who should be.
Until next time-Larry
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TAPPI News
The Awards Committee of the TAPPI Pulp Manufacturing Division is requesting nominations for the Division Technical Award (and Johan Richter Prize), and the Division Leadership and Service Award (and Joseph Perkins Prize). Nominations are requested for both awards, but only one will be selected to be awarded at the Fall PEERS (formerly EPE) Conference to be held in Norfolk VA.
The Division Technical Award is intended to recognize outstanding accomplishments or contributions, which have advanced the pulp manufacturing processes and methods. It was last awarded to Dr. Richard Berry of FPInnovations at the 2009 EPE Conference in Memphis, Tenn., USA. The Division Leadership and Service Award is intended to recognize an individual for outstanding leadership and exceptional service to the Division. The Division Leadership award was last presented to Dr. Gopal Goyal of International Paper Company at the 2008 EPE Conference in Portland, Ore.
Completed nomination forms should be sent to Alan Rudie at arudie@fs.fed.us or by mail to Alan Rudie, Forest Products Laboratory, One Gifford Pinchot Dr., Madison, WI 53726. The form may also be downloaded here.
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TAPPI's NET (Nonwovens Engineers & Technologists) Division is pleased to announce that plans are underway for 2010 NET INC. (Nonwovens Engineers & Technologists Innovative Nonwovens Conference). The conference will take place November 10-12, 2010 in Raleigh, N.C., USA.
Sponsored by TAPPI and the Nonwovens Institute (NWI), NET INC. is the only technical conference developed by nonwovens engineers and technologists.
NET's acronym comes from its makeup of nonwovens engineers and technologists. Division members come from a variety of disciplines – technical directors, engineers, professors, research and development managers, sales and marketing professionals, and corporate management. They work collaboratively in volunteer groups to share knowledge with peers throughout the world in all segments of the nonwovens industry – from hygiene and fabrics to filtration, insulation and more.
Those wishing to learn more about participating in the development of this event can contact Craig McKinney, program manager, cmckinney@tappi.org, +1-770-209-7294.
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When: Wednesday, April 14, 2010
Where: Liberty Hall, Kimberly, Wis.
The Lake States TAPPI / North Central PIMA Meeting program will provide insight on the concept of sustainability and its different aspects for the pulp and paper business. Both the technological and the economic side of sustainability as well as real-life examples will be presented. The event will close with a roundtable discussion to explore the consequences of sustainability with current and anticipated changes.
This program is designed for Environmental Engineers, Process Engineers, Paper Machine, Stock Prep, Coating, Production, Purchasing, R&D and Lab Personnel, Suppliers, and anyone else interested in learning more about sustainability and related business concepts for the pulp and paper industry.
Pre-registration fee: $110.00
On-site registration: $135.00.
Students and retirees reduced rate if pre-registered: $25.00 / $45.00 on-site
For further details call Michael von Grumbkow at 920-540-1030 or visit the Lake States TAPPI website: www.lakestates.org.
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Offered for the first time in years, TAPPI is pleased to unroll the Tissue Runnability Course, April 19-21, 2010 – an essential program for paper professionals at TAPPI's Atlanta headquarters. This course offers a comprehensive understanding of the tissue making process at many levels that can be applied immediately on the job. Instructional topics are focused on helping attendees improve the quality of their products, diminish waste and poor output and reduce frustrating down-time. The course material is designed with the objective of helping participants thrust production into high gear.
The Tissue Runnability Course is designed expressly for engineers, machine supervisors, technical resources, lead operators and technical personnel in tissue and towel mills. The three-day event covers the impact of recycled furnishes on paper characteristics, the principles of wet-end chemistry with machine operation, cleaning and conditioning of felts and wires, causes of tissue runnability problems in the press/Yankee/hood drying systems, identifying improvement opportunities on the dry-end of the paper machine, and pinpointing problems with the Yankee dryer steam, coating, and hood systems to increase machine productivity. The course schedule is led by industry-recognized instructors.
Registration for this course has been so robust, the training room has moved to a larger venue – the Hilton Atlanta Northeast in Norcross, Ga. This means, you can stay in the same location as the training sessions for even more convenience. Lodge Where You Learn!
Hilton Atlanta Northeast
5993 Peachtree Industrial Blvd
Norcross, GA 30092
Telephone: +1.770.447.4747
Tissue Runnability is still open, but prompt registration is still encouraged for this course!
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Event: PulPaper 2010
Date: June 1-3, 2010
Location: Helsinki,Finland
For the seventh time, the global pulp, paper, board, and converting industry will meet in Helsinki for the PulPaper exhibition and conference. The event, organized by Adforum in cooperation with the Paper Engineers' Association, AEL and The Finnish Fair Corporation, will be the largest show for the pulp, paper, board and converting industry worldwide in 2010. Exhibitors and visitors travel from all over the world to take part in this international event. The last PulPaper show in 2007 attracted more than 16,000 visitors from 78 countries. TAPPI is co-sponsoring the nanotechnology session.
Along with the exhibition, there will be a conference with the theme of "Implementing the new rise." The theme will cover topics that the forest products industry must address to maintain its position and improve results in a changing environment.
Registration is now open and early bird fees are valid until April 16.
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What's high in the middle and round on the ends? Well, Ohio of course, and TAPPI's Ohio Local Section is high on planning for their next meeting (April 9, 2010 at Miami University, Oxford, Ohio). Ok, bad joke – but no where near a bad meeting!
Recently, Larry Montague and Eric Fletty had the pleasure of visiting Appleton's West Carrollton Mill and not only saw TAPPI members (from both Appleton and Ashland – Hercules) in action but discussed plans for the upcoming Ohio TAPPI Local Section Meeting. The Local Section has undergone a reinvention of itself and has a great event planned. For just $10, (register by March 26th for this early bird rate) you get:
- 9:00 AM - Upgrades and modernization of stock prep systems - J. Kerr, ANDRITZ
- 10:00 AM - Doctor blade setting - S. Cockerham, KADANT
- 11:00 AM - Paper machine water management for the Fourdrinier -S. Stewart, JOHNSON FOILS
- Lunch (provided)
- 2:00 PM - Automation: Color control & air systems, air dryers, heat recovery -T. Betteridge & M. Harrison, METSO
- 3:00 PM - How CD moisture actuators can save energy - J. Spachman, ABB
Registration couldn't be easier – just e-mail Prof. Doug Coffin at Prof. Doug Coffin at coffindw@muohio.edu. Additional information can be found at this link.
![](http://www.naylornetwork.com/PPI-OTW/assets/ohio.jpg)
Pictured (Left to Right): Tom Maleike, Manager – Utilities, Process Control, Technical, Appleton
Jim Fuller, Quality Manager, Appleton
Bill Levenderis, Process Control Engineer, Appleton
Larry N. Montague, President & CEO, TAPPI
Nicole Hartley, Technical Sales Representative, Ashland-Hercules
Philip B. Keegan, Sales Team Leader, Ashland-Hercules
Eric Fletty, Vice President Operations, TAPPI
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Early discounted registration is now open for the 2010 BioPro Expo™ and Conference, slated for August 24-26 at the Cobb Galleria Centre in Atlanta. Providing program content and comprehensive exhibits created with multiple industries in mind, BioPro Expo™ explores practical methods for transitioning a variety of biomass feedstocks into energy and biofuel. This unique event will bring together diverse communities ranging from forest, agriculture, and biorefinery operations to power companies and technology suppliers – offering the Southeast's most powerful educational and professional networking experience in the bioenergy arena.
BioPro Expo will include in-depth case studies and technical sessions from experts in a variety of industries. In addition, there will be a comprehensive tradeshow and hands-on technology interaction. Additional input from governmental agencies will supplement this experience with perspective on the rapidly changing regulatory and funding environment impacting renewable energy efforts.
Registration fees are $485 for TAPPI members and $746 for non-members, if confirmed by July 2, 2010. Onsite registration is $735 for TAPPI members and $1,125 for non-members. Registration information is available at www.bioproexpo.org.
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The 2010 International Bioenergy and Bioproducts Conference (IBBC) is now an important conference component of BioProExpo™. IBBC will include technical presentations, expert panels, case studies, and reports from projects that address the production of biofuels and bioproducts through: the use of forest and agricultural biomass resources; biorefining technology; feedstock and harvesting improvements to increase yield and quality of biomass; and leveraging forest products manufacturing infrastructure.
Presentations are being sought in the following topic areas:
Technology Track: Seeking strong technical papers with a focus on presenting new findings in Biomass Supply & Demand, Biomass Harvesting & Preparation, Advances in Conversion Pathways and Advances in Bioproducts.
Deployment Track: Seeking case studies and updates from pilot scale, commercial, and pre-commercial operations in Biorefineries, Repurposing the Traditional Pulp and Paper Mill, Harvesting and Preparation, Technical Economic Analyses, Commercial Collaborations for Enabling Technologies and Project Deployment Issues.
For more information on the IBBC Call for Papers, visit http://www.bioproexpo.org/ibbc_call.asp.
Abstract Requirements: Abstracts should be no more than 200 words.
Submission Deadline: March 22, 2010
Presentations Deadline: August 2, 2010
Submit Abstracts to: IBBC@tappi.org
Event Website: www.bioproexpo.org
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Date(s):
Spring 2010 -- April 12-14
Fall 2010 -- October 4-6
Spring 2011 -- April 4-6
Fall 2011 -- October 3-5
Location:
Crowne Plaza Hotel at the Atlanta Hartsfield-Jackson Airport
The Black Liquor Recovery Boiler Advisory Committee (BLRBAC) guides the safe installation and operation of recovery boilers at kraft paper mills. Their meetings draw attendees from all over the world, from the operating mills, the manufacturers of recovery boilers and associated equipment, to engineers from the insuring companies. Many members of BLRBAC are also TAPPI members that serve on the Steam and Power Committee.
Visit www.blrbac.org for registration information and additional details or contact David Parrish at david.parrish@fmglobal.com.
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A Call for Presentations/Posters has been issued for the 2010 TAPPI International Conference on Nanotechnology for the Forest Products Industry, 27-29 September, 2010, in Espoo, Finland. This annual, internationally recognized event brings together leading researchers, industry experts, government representatives, and other stakeholders to share advances and perspectives on nanotechnology-based products for the forest products and related industries.
To leverage research advances and offer participants new opportunities for knowledge sharing, the 2010 Technical Program Committee invites contributions from participants working with nano-enabled bio-materials, products, and their processing. Analysis of challenges and trends in emerging markets for forest products that are based on nanotechnology 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. View the Call for Papers.
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"Leaders are problem solvers by talent and temperament, and by choice."
-- Harlan Cleveland (1918 – 2008), American diplomat, educator, and author.
Share YOUR favorite advice or interesting ideas -- about life, business, the industry, work or leadership -- by sending in a quote to share with other Over the Wire readers. Email your quote suggestions, along with your name and company information, to mshaw@tappi.org. We value the input of our OTW readers.
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