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Over the Wire

TAPPI

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Weekly Spotlight

The USDA Forest Service Forest Products Laboratory (FPL), Madison, Wis., USA, recently hosted a centennial event to commemorate 100 years of service to the American public, and to dedicate its new Centennial Research Facility (CRF). More than 300 guests attended the dedication ceremonies and toured the new Centennial Research Facility.

The special tour featured 16 demonstrations that included a timber bridge taken to failure, roundwood tension testing, and a weathering chamber. The new 87,000-square foot CRF (photo below) allows scientists to perform full-scale testing of wood-framed buildings, formulate new environmentally-friendly pre­servatives, and develop composite products in a manufacturing-friendly space. Its one-of-a-kind weathering chamber simulates temperature, humidity, sunlight, wind, and rain to test the durability of wood products.

The CRF is qualified for Silver certification by the Leadership in Energy & Environmen­tal Design (LEED) rating system developed by the U.S. Green Building Council. As such, it was designed to improve performance across the most important efficiency metrics: en­ergy savings, water usage, carbon dioxide emissions reduction, improved indoor environmental quality, and stewardship of resources including sensitivity to their impacts. Researchers in engineering mechanics can assess the strength of full-scale structures while durability researchers test wood products in the punishing weather simulation chamber. Modern preservation testing equipment will replace the older vessels previously used, while an efficient and manufacturing-friendly floor plan will help advance wood- and bio-based com­posites research.

As a combination wood, steel, and concrete structure; the CRF has composite wood fins highlighting each column of tall tinted windows facing west and south. A white rubber-membrane roof system blankets two stories rising in the west, while a single-story high-bay space overlooks interior laboratory functions. Equipment and laboratories are housed in four main areas of research: Composites, Durability, Engineering Mechanics, and Preservation.

Invited speakers at the commemorative event included representatives from the USDA Secretary of Agriculture’s office, U.S. Senator Herb Kohl’s office, Forest Service Chief Tom Tidwell, Deputy Chief of Research Ann Bartuska, University of Wisconsin-Madison College of Agriculture and Life Sciences Dean Molly Jahn, and TAPPI President Larry Montague (in photo to the right).

As Montague noted, TAPPI and FPL have had a synergistic relationship for 95 years. TAPPI also has co-chaired an annual industry review of FPL’s pulp and paper research for more than 60 years, and gives valuable advice on how FPL can better position itself and its programs to transfer technology and solve important technical problems faced by industry.

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GP Harmon, a recycling subsidiary of Georgia-Pacific, Atlanta, Ga., USA, and Starbucks stores in Chicago, Ill, will cooperate in a special pilot recycling project later this year. As detailed in an article this week in the Green Bay Press-Gazette, Green Bay, Wis., select Starbucks stores in the Chicago area will provide cups, sleeves, corrugated containers, plastic lids, cups, and other material for recycling. GP Harmon will collect, sort, market, and sell the Starbucks materials.

The paper-based waste will come to GP Harmon’s Broadway mill in Green Bay, where it will be combined with other recycled paper, including coated papers, paper with sticky surfaces, and paper previously used for food wrapping/packaging, to make napkins for Starbucks. G-P already is a napkin supplier to Seattle-based Starbucks. GP Harmon will find other buyers for the plastic-based waste.

"It's going to be an interesting pilot program," Mary Jo Malach, spokeswoman for G-P in Green Bay, stated in the newspaper article. "What will be new about this project is it will be the first time we are doing a dedicated stream that will be turned into a specific product for a specific client." She noted that the length of the pilot project will be determined closer to its kickoff in the fall.

Starbucks is pursuing several initiatives to ensure that 100% of its cups are reusable or recyclable by 2015. Its goal is to serve 25% of its beverages in reusable cups and have front-of-store recycling in all company-owned stores by that deadline, according to the company's "2009 Global Responsibility Report." Starbucks has some 16,000 retail locations worldwide. It estimates that the use of reusable cups in company-owned stores in the U.S., Canada, and the U.K. diverted nearly 1.2 million lb of paper from landfills in 2009.

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Richard J. Carota, one-time union laborer who rose to become Paper Industry Executive of the Year as chairman, president, and CEO of Glens Falls, N.Y., USA-based Finch, Pruyn & Co., and its successor, Finch Paper LLC, died this past weekend (Saturday, July 10) at Ellis Hospital in Schenectady, N.Y. He was 73 years of age and had determinedly fought an illness that began in September 2009.

Carota retired from Finch on Feb. 2, 2009, after 53 years of service, 26 of which were served as the company's chairman, president, and CEO. He was the first person who was not a member of the founding families of Finch, Pruyn to be elected chairman, president, and CEO of the now-145-year-old company. He was also one of the few former labor union officers to become the CEO of a major American paper manufacturer.

In 1993 Carota was honored as the Paper Industry Executive of the Year by the Paper Industry Management Association (PIMA). At the time, he told hundreds of industry executives gathered in his honor in San Diego, Calif., that "I've never considered myself the only idea person at Finch, Pruyn. I've had more responsibility than other people, but I've believed the only way we could succeed was if we pooled everyone's ideas. Teamwork has helped us accomplish some great things."

Carota's leadership was widely credited for keeping the Finch mill operating during the late 1990s and early 2000s as dozens of other American paper mills were forced to close due to economic conditions. Among his most significant career accomplishments at Finch, Carota expanded the company's market presence and product mix, developing a nationwide network of Finch Paper merchants, spearheaded the company's entrance into the premium text and cover paper market, with the introductions of the Finch Fine and Finch Premium Blend products, and championed Finch's receipt of the coveted Forest Stewardship Council and Sustainable Forestry Initiative (SFI) green certifications for the company's forestry practices and its products. He also oversaw a $20-million modernization of the company's largest and most productive paper machine, the development of a $25-million cogeneration plant that has made the company largely energy-independent, and the company's $10-million conversion to an elemental chlorine-free pulp bleaching process.

In 2007, Carota guided Finch Pruyn & Co. through the sale of the business by its local owners to the partnership of Atlas Holdings LLC and Blue Wolf Capital Management LLC.

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Market Roundup

Pulp pricing is deteriorating faster and more dramatically than expected, reports Mark Wilde, senior analyst with Deutsche Bank, adding that China is the "epicenter of the upheaval." Last week, Arauco cut July prices by $40 - $50/metric ton on all grades. Trade reports suggest pressure for much larger cuts. Wilde says.

"More recently, a major Russian player is reported to have cut prices far more dramatically than Arauco. These latter cuts are so sharp that we expect global reverberations over the next several days. How quickly will producers respond to falling prices? Without black liquor credits, some high-cost U.S. mills may react more quickly than in the first quarter of 2009. Although visible inventories appear to be in good shape, slower summer demand coupled with restarts in Europe and North America, along with the June startup of April's 1.3 million metric ton Rizhao, China, mill, suggest a growing market imbalance. Lower prices seem certain," Wilde notes. Earlier this month, trade reports suggested that U.S. spot NBSK fell $35/metric ton (approximately 12% of June U.S. list price) to $870 - $920/metric ton, he adds.

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As reported in earlier editions of Over the Wire, RockTenn and Norampac, two of the three largest coated recycled board (CRB) producers in North America, are both out with $40/ton price hike initiatives for early August. Graphic Packaging and PaperWorks this week announced similar price hikes on CRB (see items below in this edition of Over the Wire). Wilde points out that if successful, this would be the third hike of the year, after prices rose $30/ton in January and $35/ton in April. The recent price hike is driven by improved order backlogs, higher operating rates and an overall improving demand, Wilde explains.. However, with domestic OCC prices down $59/ton since March 10, CRB producers may find it difficult to pass-thru the latest price increase, he adds.

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All major North American containerboard producers announced a third $60/ton price increase, effective in early August. Hikes in January and April have added $110/ton to domestic list prices. While industry fundamentals are very favorable, macro indicators (soft employment, easing in ISM index, etc.) are suggesting that hike No. 3 will be tougher-than expected, Wilde believes. Industry fundamentals point to a snug market, he continues—on-going recovery in box shipments (May +5.3% y/y), high operating rates (95%), and inventories at 30-year lows.

Permanent capacity reductions of ˜3 million tons since the fourth quarter of 2008 and spring maintenance downtime have further tightened the markets. Conditions are tight elsewhere. Brazil’s Klabin announced $70 - $110/metric ton in Latin America, EUR 50/metric ton in Europe, and $50/metric ton in Asia, Africa, and the Middle East, all for implementation in July. China appears to be the key weak spot in an otherwise strong global containerboard market, Wilde says.

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Chesapeake Energy Corporation
Pulp & Paper

Appleton, Appleton, Wis., USA, this past week announced that it will sell its Performance Packaging operations to a newly formed company named NEX Performance Films Inc. which is owned by Mason Wells, a Milwaukee, Wis.-based private equity firm. The sale of the Performance Packaging operations is a strategic move to consolidate Appleton's offerings and to allow the company to focus on its core business. The purchase price is approximately $58 million. The companies expect the transaction to be completed this month.

Appleton's Performance Packaging operations produce high-quality single and multilayer polyethylene films and are comprised of two wholly-owned subsidiaries—American Plastics Co., located in Rhinelander, Wis.; and New England Extrusion Inc., which has facilities in Turners Falls, Mass., and Milton, Wis.

Appleton's CEO Mark Richards said the Performance Packaging operations no longer complement the company's long-term strategic direction, which is to focus on its specialty paper and Encapsys microencapsulation businesses. "Our core strengths in specialty paper production and microencapsulation have been the foundation of our company's success for more than a century, and they will be the focus of our growth strategy in the future," said Richards. He added that Appleton will leverage the operational strengths of the company and its recent capital investments in its thermal and Encapsys businesses to expand its market leadership positions in specialty paper and encapsulation.

Appleton simultaneously acquired American Plastics Co. and C&H Packaging Co. in April 2003. C&H Packaging, located in Merrill, Wis., prints and converts flexible plastic packaging materials for companies in the food processing, household, and industrial products industries. The company sold C&H Packaging to The Interflex Group in December 2009. It acquired New England Extrusion in January 2005.

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Arctic Paper Kostrzyn S.A has ordered from Andritz, Graz, Austria, stock preparation components that will improve the quality of fine paper grades produced at its Kostrzyn mill in Poland. The stock at Kostrzyn is used to produce copy paper and offset paper. Startup of the new components is scheduled for January 2011.

The scope of supply includes a complete thick stock screening and ShortFlow blending system, the paper machine approach system (including machine screens), a cleaner plant upgrade, and the new ShortFlow Deaeration system. ShortFlow Deaeration is an advanced solution for partial air removal that combines a white water silo and conventional deaeration system in one unit. Arctic Paper’s project goals are improved paper quality from better pulp cleanliness and better paper machine stability by removing excess air from the white water. Andritz also will provide installation supervision, basic engineering, startup, and training.

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Borders Group, Ann Arbor, Mich., USA, this week reported that it will sell its Paperchase Products to Primary Capital, a U.K.-based private equity firm. Paperchase, a wholly-owned subsidiary of Borders Group, is a retailer of stationery, cards, and gifts based in the U.K. Under the agreement, Borders will continue to purchase and carry products designed and sourced by Paperchase in its U.S. stores.

Boprders will receive proceeds of approximately $31 million (based on current exchange rates) upon closing, which is expected within the next week. It is required to use $25 million of the proceeds to reduce the amount outstanding under its $90 million term loan credit facility. The completion of the sale is subject to customary closing conditions.

Borders Group acquired a majority interest in Paperchase in 2004. Virtually all Borders stores nationwide feature Paperchase gifts and stationery products. In addition to having a presence in all Borders stores in the U.S., Paperchase operates 106 outlets in the U.K. including concessions in selected department stores run by House of Fraser, Selfridges, and Harrods, as well as in the Netherlands, Ireland, and the Middle East. The vast majority of Paperchase's merchandise is developed specifically by and for Paperchase and, as such, can only be found in Paperchase stores.

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Fraser Papers Inc., Toronto, Ont., Canada, this past week announced that the Ontario Superior Court of Justice has granted a further extension of the initial order under which the company, together with its subsidiaries, was granted creditor protection under the Companies' Creditors Arrangement Act (CCAA) of Canada. This extension is through October 29 and was supported by PricewaterhouseCoopers Inc., the court appointed monitor of the company's CCAA process.

Fraser also announced that it has obtained final approval from the court to complete the sale of its paper mill in Gorham, N.H., to an investment fund managed by MerchantBanc LLC of Manchester, N.H. Approval was also sought from the U.S. Bankruptcy Court for the District of Delaware at a subsequwent hearing this week. Fraser Papers expects to complete the sale of the Gorham mill on or before August 31.

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Meriturn Partners, Raleigh, N.C., USA, this week announced the sale of Dunn Paper Acquisition Inc., Port Huron, Mich., to Wingate Partners, a private investment firm based in Dallas, Texas. Meriturn co-invested with Dunn's management team in October of 2003 to purchase the assets through an out-of-court liquidation from Curtis Paper after the Port Huron mill had been shut down.

Dunn CEO Brent Earnshaw explained that "our relationship with Meriturn enabled us to transform Dunn Paper from an out-of-service mill to an industry leader in manufacturing specialty papers. We look forward to partnering with Wingate as we continue to grow our market position."

Meriturn Partner and outgoing Dunn Chairman Mark Kehaya noted that "Dunn Paper was the Meriturn Fund's first investment. Dunn's successful transition over the past seven years is a testament to the hard work of the company's management team and employees with the support of Meriturn Partners. We are excited about the value that has been created, not only for investors, but also for the employees of Dunn Paper and the community of Port Huron. Meriturn looks forward to continuing our relationship with Dunn as a minority equity holder."

Dunn Paper produces a broad spectrum of specialty waxed, coated, and uncoated MG papers used in various food packaging and specialty label applications.

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The latest episode of the "On Paper" sustainability podcast series, sponsored by NewPage Corp., Miamisburg, Ohio, USA, features Mark Buckley, VP of environmental affairs for Staples Inc., who addresses ways in which companies, as well as individuals, can make a difference in protecting the environment. Focused on Staples’ EcoEasy environmental program, the presentation details the company’s environmental efforts in three major areas—products, recycling services, and internal operations.

By offering customers innovative environmental products and services, to implementing energy conservation, waste reduction, recycling, and green building initiatives in their own internal operations, Staples has been able to achieve measurable results and capture accolades from some of the nation's top green business lists. When discussing the concept of democratizing sustainability, making it accessible to the general public, Buckley explains to On Paper listeners that "our strategy is to fundamentally change the way that products get brought to market. We ask how we can create more opportunities across other categories in our business, where customers don't necessarily have to make that trade-off in terms of price."

In an Entrepreneur magazine article published earlier this year, Staples illustrated for readers how to "green" an existing office space by making smarter choices in their product selection and processes. During this On Paper episode, Buckley further explains that process to listeners and provides tangible actions to pursue. This latest episode can be downloaded at the On Paper website.

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Stora Enso, Helsinki, Finland, reported this past week that it will permanently close down newsprint and directory paper production at its Varkaus mill in Finland by the end of the third quarter. Reasons for the planned capacity closure announced on April 22 have not changed, the company notes—the European newsprint and directory paper market is strongly and structurally oversupplied and sales prices have fallen significantly. As a result, newsprint production at Varkaus is expected to remain unprofitable in the long term.

"The overcapacity position in the European newsprint and directory paper market has persisted in 2010. Consequently, sales prices have fallen significantly. In the longer term, demand in Europe is expected to decline further, as has been happening in North America. In addition, the competitiveness of Varkaus is weakened because newsprint production at Varkaus relies on less-competitive virgin fiber, the availability of wood raw material in Finland is not stable, and Varkaus is far away from most of its customers and main markets," says Juha Vanhainen, executive VP, Publication Paper Business Area, and country manager, Finland.

The closure of the two newsprint machines, PM 2 and PM 4, at Varkaus Mill will reduce newsprint and directory paper annual production by 290,000 metric tons. The co-determination negotiations at Varkaus were concluded at the end of June. As a result of the ending of newsprint production, 175 employees will be made redundant. There are currently 506 employees at Stora Enso's Varkaus Mill.

The Varkaus mill site will continue to produce pulp and fine paper after newsprint and directory paper production ends. The operations of the sawmill and the NSE Biofuels Oy biofuel joint venture with Neste Oil and its demonstration plant will also continue. The ending of newsprint production will not substantially affect the amount of renewable energy produced at Varkaus.

Stora Enso will support redeployment of those affected by the plans through efficiently offering jobs internally and eligibility for outplacement services. The Group works closely with local employment and economic development centers to find new job opportunities for people affected. Stora Enso will also support financially those who would like to start their own business.

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UPM, Heslinki, Finland, this past week sold to the State of Minnesota (USA) Department of Natural Resources a conservation easement on 187,876 acres (76,000 hectares) of UPM-owned forest land in Northern Minnesota. UPM will receive $44 million (approximately EUR 36 million) for the easement and will record a pre-tax capital gain of $42 million (approximately EUR 34 million) in the company's third quarter results.

Under the conservation easement, UPM retains ownership of the land and its Blandin paper mill in Grand Rapids, Minn., will continue to use it as a working forest. The easement provides the public with access for recreational purposes such as hunting, fishing, hiking, and snowmobiling in perpetuity. UPM's Blandin mill will continue to manage the forest under its Smart Forestry system, which is designed to enhance productivity and support economic and environmental sustainability. The land is certified to comply with the Sustainable Forestry Initiative.

The easement preserves conservation values that protect the recreational, working forest, and natural and scenic resources of the affected land. Blandin can satisfy its obligations under the easement by continuing its certification by the Sustainable Forestry Initiative. The Minnesota Department of Natural Resources will conduct audits for compliance.

"UPM believes in the multiple uses of our forest resources for economic, ecological and public benefit, and our forestry professionals have always managed the land for these varied uses," said Joe Maher, GM at UPM Blandin. "This landmark conservation easement in the U.S. shows vision and cooperation, to the benefit of all groups who care about our forest lands. UPM is pleased to be part of it."

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Containerboard/Packaging

KapStone Charleston Kraft, North Charleston, S.C., USA, a producer of unbleached kraft paper and lumber, has upgraded its SFI fiber sourcing certification to the Sustainable Forestry Initiative SFI 2010-2014 Standard across its five chip mills, Summerville Lumber Mill, and Charleston Kraft paper mill. KapStone was previously certified to the SFI 2005-2009 fiber sourcing standard and continues its SFI certification in chain-of-custody (CoC). KapStone Charleston Kraft is wholly owned by KapStone Paper and Packaging Corp, Northbrook, Ill..

An SFI fiber sourcing label tells consumers the fiber in a product is from a legal and responsible source, regardless of whether the forest is certified. In the U.S. and Canada, there must be an auditable procurement process in place showing that, among other things, participants are supporting landowners in promoting reforestation, protecting threatened and endangered species, and strengthening best management practices to protect water quality. When sourcing fiber from outside of North America, program participants must perform risk assessments to avoid controversial sources such as illegal harvesting operations or areas of civil unrest, and must promote the conservation of biological diversity.

KapStone Kraft Paper Corp. operates paper mills in Roanoke Rapids, N.C., and North Charleston, S.C., a lumber mill in Summerville, S.C., and five chip mills in South Carolina. The business employs approximately 1,550 people.

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Terry Fulwiler, CEO of WS Packaging Group Inc., Green Bay, Wis., USA, has been selected winner of the R. Stanton Avery Lifetime Achievement Award, as part of the 2010 Label Industry Global Awards voted on by the international label industry judging panel at the recent FINAT Congress in Valencia, Spain. The award is sponsored by Avery Dennison.

Fulwiler joined his father’s company, in 1972 when there were 25 employees and he served in a variety of management positions leading to his promotion to CEO in 1987 upon his father’s retirement. He is credited with the unprecedented decision in 2000 to take the company from a mid-size player in the tag and label industry to the next level with the merger of Wisconsin Label Corp. founded in 1966, and Superior Label Systems, Inc., founded in 1970, which then resulted in nine company acquisitions in the past nine years. With more than 1,775 employees at 17 locations across the U.S. and Mexico, the company produces printing, flexible packaging, and promotional products.

Fulwiler was selected Converter of the Year for 2000 by his peers in the Tag and Label Manufacturer’s Institute (TLMI), the trade organization for the tag and label industry, in which he served on the board of directors and is an active member, and supports key company management to participate as active members. He is chairman of the board for Bellin Hospital, on the board of directors for several area businesses, including the Green Bay Packers, and serves in an advisory capacity for various local organizations and groups.

FINAT (an abbreviation of the French title: Féderation INternationale des fabricants et transformateurs d'Adhésifs et Thermocollants sur papiers et autres supports) is the global association for manufacturers of self-adhesive labels and related products and services. It was founded in Paris in 1958, and since then has been representing the whole self-adhesive supply chain.

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The Newark Group, Cranford, N.J., USA, has arranged a $110 million credit facility for financial support through its bankruptcy process. The restructuring financing is being provided by a group of five lenders led by ORIX Finance Corp, Dallas, Texas. With the support of all relevant stakeholders, Newark filed for Chapter 11 bankruptcy protection on June 9, and now expects to exit bankruptcy in August with financing in place.

Newark notes that although its business was operationally sound, it needed to restructure debt following the severe industry-wide decline in sales due to the general slowdown of the U.S. economy in 2008-09. Prior to filing, Newark reached an agreement for a consensual restructuring with the holders of its Senior Subordinated Notes.

To facilitate Newark’s restructuring process, ORIX worked with other lenders and stakeholders to provide the financing solution needed for a speedy reorganization process. ORIX led and arranged the $110 million debtor-in-possession (DIP) and exit term loan facility. The DIP term loan repaid Newark’s pre-petition term loan and provided additional cash to increase Newark’s liquidity. The Exit Term Loan will provide term financing to support the company’s operations as it comes out of reorganization.

"When Newark needed help, our team was able to build consensus among a group of diverse creditors and assemble a financing package to help the company restructure its balance sheet," said Chris Smith, senior managing director of ORIX Finance. "The financing also provides capital to continue to grow the business and support all of its stakeholders, including customers, vendors and more than 2,500 employees."

Founded in 1912, Newark is a vertically-integrated, global producer of 100% recycled paperboard and paperboard, including core board, folding carton, and industrial converting grades of paperboard.

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Recycled Paperboard Technical Association (RPTA), Elgin, Ill., USA, reports that Deborah White has been named its new executive director. Prior to joining RPTA, White was SVP and chief legal officer at the Food Marketing Institute (the supermarket industry’s trade association) and an attorney at Keller & Heckman, the law firm that RPTA uses for the Food Safety Protocol. Dave Ruby will serve RPTA as executive director emeritus until October 31. Joanne Arnold and Fran McGowan will continue their tradition of service in their roles at RPTA.

Late last month RPTA relocated to a "virtual" office, and its physical office was closed. The The main telephone number for RPTA will remain the same: (847) 622-254, and individual straff members can be reached by pressing: 1 for Dxeborah White, 2 for Joanne Arnold, 3 for Fran McGowan, and 4 for Dave Ruby. E-mail addresses are as follows: Deborah White (dwhite@rpta.org), Joanne Arnold (jarnold@rpta.org), Fran McGowan (fmcgowan@rpta.org), and Dave Ruby (druby@rpta.org). RPTA’s mailing address is: Recycled Paperboard Technical Association, PO Box 5774, Elgin, IL 60121-5774. To send a package, please contact the appropriate RPTA staff member for a street address.

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New Products

Michelman. Cincinnatti, Ohio, USA, this week introduced Michem Flex P1883, a water-based extrusion primer that provides adhesion to aluminum foil and paper, bonds to extrusion coated resins, and protects foil from corrosion. The primer also provides chemical resistance to water, many acids, and spices, fragrances, and flavors. Because of its adhesive properties, it also helps prevent packages from delaminating when in contact with aggressive contents.

The new primer is ideal for applications including foil-based packages for condiments such as ketchup, mustard and salad dressings, soup and seasoning packets, dry milk powders, fruit juice powders, gummy candies, and virtually any type of paper/poly/foil/poly pouches or paper-based cans found on grocery shelves.

Michem Flex P1883 features 25% solids content and high freeze/thaw stability. The relatively high solid content means converters buy and shipping less water and more of the solids they need to achieve desired dry coat weights. It further reduces costs since it requires less drying time.

Michelman’s Michem Flex primers are water-based extrusion primers designed specifically for converters of flexible packaging substrates including paper, film, and foil. They meet regulations for food packaging, and come as concentrated dispersions, minimizing shipping costs. They can be applied with smooth roll, flexo, or gravure coaters and dried with hot, circulating air.

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Published Pricing

Eka Chemicals, Marietta, Ga., USA, the AkzoNobel Pulp and Paper Chemicals business, has increased prices across its entire North American Paper Chemicals product range by up to 20%. "Dramatic increases during the past year in the cost of basic materials have impacted Eka Chemicals’ cost structure." says Greg Bengtson, VP, Sales and Marketing, Eka Chemicals Inc. North America. "Our continual efforts to optimize operational costs are being outpaced by these increases. It is therefore necessary for prices to be increased in order to maintain a sustainable business model."

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Graphic Packaging International, Marietta, GA., USA, a subsidiary of Graphic Packaging Holding Co., will increase the price of its PaceSetter coated recycled board (CRB) by $40 per ton. The increase becomes effective with shipments on or after August 9.

Graphic Packaging is a producer of paperboard packaging solutions for a variety of products to food, beverage, and other consumer products companies. The company is one of the largest producers of folding cartons and holds leading market positions in coated-recycled boxboard and specialty bag packaging

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PaperWorks Industries (PWI), Philadelphia, Pa., USA, this week announced price increases on all grades of its coated recycled paperboard by $40 per ton, effective August 9. The increases apply to all North American customers and will include all MasterWorks CRB grades, including the News, Plus, Blister, Freeze, Lite, and Beverage grades. PWI says it will continue to minimize these increases with ongoing cost savings initiatives.

PWI’s Paperboard Division manufactures approximately 300,000 tons of 100% recycled paperboard annually, and its Packaging Division operates specialized folding carton facilities in the U.S. and Canada. With more than 1,000 employees at nine North American locations, the company has annual sales in excess of $325 million.

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People

Multi-Color Corp., Cincinnati, Ohio, USA, this week appointed Sharon E. Birkett VP and chief financial and accounting officer of the company. She succeeds Dawn H. Bertsche who will no longer serve as senior VP of finance, chief financial and accounting officer of the company.

Birkett relocated to the U.S. from Australia in February 2010 when she was appointed as Multi-Color’s VP and corporate controller. Prior to this appointment, following the company’s acquisition of Collotype International Holdings, she served two years as VP of finance, international, and prior to the acquisition, as Collotype's CFO for five years.

Nigel Vinecombe, president and CEO, noted that "Sharon not only will continue to provide very strong financial skills and knowledge to our business, she also brings to our global leadership group important strategic, commercial, and teamwork attributes we need to help grow our existing businesses and acquire new ones."

Multi-Color's Chairman of the Board Larry Kellar added that "the company is grateful for Dawn's contributions to Multi-Color the past 10 years, including her leadership of the accounting and finance team and the guidance she has provided to the organization." 

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TAPPI News

TAPPI welcomed its newest members on Wednesday, as partners of Verus Carbon Neutral toured TAPPI headquarters, and remained for a discussion of Sustainability issues. Pictured at right are Larry N. Montague - TAPPI President & CEO, Eric Taub - Founder/Managing Partner of Verus Carbon Neutral, Colleen Walker - Project Manager & Technical Lead for TAPPI, and Andrew Keenan, Partner/CMO of Verus Carbon Neutral

To learn more about Verus Carbon Neutral, visit their website or email e.taub@verus-co2.com or a.keenan@verus-co2.com.

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The early bird registration deadline for the Introduction to Linerboard/Medium Manufacture Course extended to July 23.

Knowledge is power. The TAPPI Introduction to Linerboard/Medium Manufacture Course is designed to give you increased confidence and understanding of linerboard and medium manufacture and properties. By participating in this course you will be able to interact more knowledgeably with experienced process engineers and operators as well as increase your ability to improve paperboard mill operations and help troubleshoot product quality problems.
   
If you are new to the topics or the pulp and papermaking processes, you may also want to participate in the optional Introduction to Pulp and Paper Seminar, 1 to 5 p.m. on Monday, August 2, 2010. Additional registration is required. Learn more about the seminar and the course.
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Dr. Peter Vukusic of the University of Exeter will make the keynote presentation at the TAPPI 11th Advanced Coating Fundamentals Symposium, October 11-13, 2010, at PTS (Papiertechnische Stiftung) in Munich, Germany. Held every two years, this highly regarded  symposium provides a forum for research and development professionals, chemists and technical service managers involved in paper coatings to discuss the latest technical developments. 

Dr. Vukusic will present "Natural Systems for Bio-Inspired Designs: an Introduction to the Physics of Coloured Appearances in the Biological World" on Monday, October 11, 2010. He is the Associate Professor in Natural Photonics and Bioinspiration at the University of Exeter School of Physics.

Vukusic graduated from Imperial College, London in 1989 and from the University of Exeter in 1993 with a PhD in Optical Physics and then with a PGCE in physics. He completed a research fellowship at CSIRO Melbourne in 1994 and subsequently taught science in schools from 1994 to 1998. Vukusic returned to Exeter in 1998 as a research fellow to investigate structural color in natural systems. In 2001 he was awarded a 5-year Personal Fellowship from the BBSRC, and in 2003 was appointed permanent lecturer at the University of Exeter School of Physics. He became Associate Professor of Natural Photonics in 2008.

His work is frequently featured on scientific programs of the BBC and National Geographic.  He regularly lectures on the science of light and color to schools, adult groups and to international audiences.

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The TAPPI Research Management Committee requests your nominations for the Research and Development Technical Award and the William H. Aiken Prize.

The award is presented for outstanding accomplishments or contributions that advanced the technology of the paper and related industries. More specifically, they should be in the field of research and development. The nomination should contain:

    * A summary of the nominee's technical achievements
    * The impact and relevance of the research on industry
    * Education, work history
    * Examples of the impact that they have had on others
    * Other pertinent activity such as involvement in TAPPI

The $500 prize is funded by an endowment from the estate of William H. Aiken, TAPPI president in 1967-1968. He was vice president of technology for the former Union Camp Corporation at the time of his death in 1974. Dr. Aiken also won the TAPPI Gold Medal, the association's highest honor, in 1971.

Nominations for the Research and Development Technical Award and the William H. Aiken Prize should be submitted by August 1, 2010, to David Bell dbell@tappi.org at TAPPI, 15 Technology Parkway South, Norcross, GA 30092, USA, or fax +1 770-446-6947.

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Designed to help you learn 'why' things happen on a paper machine, the 2010 TAPPI Paper Machine Operations Course is a three-day course, to be held in Norcross, Georgia USA on August 24-26, 2010. The course will focus on improving your understanding of the overall paper machine operation and improving paper machine operations and product quality.

Participants of this course will gain an improved understanding of the overall paper machine operation.  In addition, a fundamental understanding of fiber properties and the way the mechanical components function on the paper machine will give the participant the tools needed to more quickly troubleshoot operational problems and improve paper machine operations and product quality.

After successfully completing this course, participants should be able to:

•    Describe how the mechanical components and operations of the paper machine affect the structure of paper and thus the quality.
•    Identify design and operating features of the paper machine that affect machine performance.
•    Identify ways to improve paper machine efficiency and product quality based on a new understanding of the overall operation.

To learn more about this course and to register, visit the online course information.
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The TAPPI Introduction to Tissue Manufacturing course is coming up soon in Kennesaw, Georgia, August 11-12.  If you register by July 28, you'll get the early-bird discounted rate for participation!

This course is ideal for anyone who could benefit from an introductory- to intermediate-level course on tissue.  The content can help build confidence for more effective interactions with others on the job like operators, technical staff, researchers, suppliers and customers.

The TAPPI Introduction to Tissue Manufacturing course is one of very few available that covers introductory content of this nature.  It enables those who attend to:

- Contribute more toward improved tissue manufacturing operations
- Play a stronger role in producing better, more competitive products

You'll learn from one of most distinguished professionals in the industry!  Dr. Michael J. Kocurek, PhD, Professor Emeritus at North Carolina State University, is the course instructor and has taught this curriculum to multiple corporations and mills.  He is a TAPPI Fellow and has taught TAPPI's oldest and highly ranked short course on Introduction to Pulp & Paper for more than 37 years.  In 2005, he was inducted into the Paper Industry International Hall of Fame, an honor bestowed on those who have made preeminent contributions to the global pulp & paper industry.

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Check out the recently published "Fundamentals of the Kraft Recovery Process," by Jeff Empie. It details the chemical engineering fundamentals of the kraft recovery process, including mass and energy balances, thermodynamics, fluid dynamics, phase separations, heat and mass transport phenomena, and reaction kinetics. Each kraft recovery unit operation, including multiple effect evaporation, recovery boiler operations, green liquor processing, causticizing, and white liquor processing is discussed in detail.

Sample problems are posed and detailed solutions are presented. Additional instructive process problems are included at the end of each chapter for analysis and solution.

Academicians, Mill Engineers: This book is ideal for senior or graduate level courses for pulp and paper, chemical, and mechanical engineers, as well as a valuable reference resource for practicing pulp mill engineers who want to better understand the kraft recovery process they operate each day.

View the  Table of Contents.
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Dr. Hadi Mahabadi will make a keynote presentation at the 2010 International Conference on Nanotechnology for the Forest Products Industry. This event is sponsored by TAPPI and hosted by VTT. It will take place September 27-29, 2010 at the Dipoli Congress Centre in Espoo, Finland. The theme of this year's event is "Getting Down to Business with Nanotech Products."

Dr. Mahabadi will present "Bio Based Nano Particles and a Greener Printing Industry" on Wednesday, September 29, 2010. He is the Vice President and Center Manager for the Xerox Research Centre of Canada (XRCC). XRCC is part of the research and technology organizations in the Xerox Innovation Group. Dr. Mahabadi joined Xerox in 1981 and has held a variety of managerial positions at XRCC.  He has been instrumental in creating an environment to increase innovation and successful commercialization of many breakthrough materials technologies at XRCC. Examples include novel solid inks for Xerox ink jet printers and Emulsion Aggregation toner for many Xerox products introduced into the market after 2000.

This Nanotechnology Conference brings together leading researchers, industry experts, government representatives and other stakeholders. In technical sessions and face-to-face meetings, they share developments, perspectives and discuss new ideas and breakthrough concepts on nanotechnology-based advances. Visit www.tappi.org/10nano for additional keynoters and presentation updates.


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Nominations for the major TAPPI 2011 awards are due by August 1, 2010. The awards that may be presented in the upcoming year are:

•    Gunnar Nicholson Gold Medal Award - The Association's highest technical honor may be presented annually to recognize an individual or individuals for preeminent scientific and engineering achievements of proven commercial benefit to the world's pulp, paper, board, and forest products industries and the other industries that TAPPI serves.

•    Herman L. Joachim Distinguished Service Award - The Association's highest award for service, may be presented annually to recognize leadership and service which have significantly and demonstrably contributed to the advancement of the Association.

•    Paul W. Magnabosco Outstanding Local Section Member Award – The highest honor for Local Sections may be presented annually to recognize an individual for outstanding leadership and exceptional service to one or more Local Sections, which have resulted in significant and demonstrable benefits to the Local Section members.

•    TAPPI Fellow - TAPPI Fellows are Individuals who have been members of TAPPI for not less than 10 years prior to the nomination, and who have contributed meritorious service to the Association and/or the paper and related industries. Retiring members of the TAPPI Board of Directors become Fellows automatically at the end of their term.

The TAPPI Awards and Honors page has links to these awards which will show the qualifications required and links to the nomination forms that must be completed. You may submit all nomination forms by email to standards@tappi.org, or you may fax them to the attention of the awards department at +1-770-446-6947, or send by mail to TAPPI, Awards Department, 15 Technology Parkway South, Norcrosss, GA 30092, USA.

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"The longer I live, the more I see that I am never wrong about anything, and that all the pains I have so humbly taken to verify my notions have only wasted my time."  - George Bernard Shaw


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Hyster
EKA Chemicals Inc.