Over the Wire

If an astute investor asked a Canadian forest industry executive just five years ago about lumber sales to China, the answer would probably have been: "China? China doesn't buy our lumber." How times have changed, reports Reuters in a news report released from Vancouver, B.C., Canada, this week. China has become a bright spot on the balance sheets of companies still waiting for a recovery of the U.S. housing sector, its mainstay market for decades, the report notes.

It's so bright, a trade mission that set off to China last week included the chief executives of West Fraser Timber, Canfor Corp, Tolko Industries, International Forest Products, and Conifex Timber, along with other top industry and union officials, the report says. "The (Chinese) economy is moving ahead, and they're getting more comfortable buying from us," Hank Ketcham, CEO of West Fraser, North America's largest softwood lumber producer, was quoted in the report as telling analysts last week.

A report this month by British Columbia, Canada's largest lumber exporting province, estimated its producers had sold C$342 million ($335.3 million) in lumber to China in the first eight months of the year, up 71% from a year ago.

Canada has benefited both from China's surging demand for lumber and Russia's 2007 decision to sharply raise duties on logs exported to Chinese sawmills, Gerry Van Leeuwen, a vice-president of International Wood Markets Group, said in the Reuters report. The research firm forecasts Canada will overtake Russia this year as the largest lumber exporter to China. The U.S. remains Canada's largest lumber export customer, but U.S. demand soured with the collapse of its housing market. Few Canadian industry executives predict it will make a significant recovery soon, according to Reuters.

A stark example of China's new role can be seen in Canfor's decision in May to restart its Quesnel, B.C. sawmill. The mill had been idled because of slack U.S. demand, and its production now goes exclusively to China, Reuters pointed out.

Nearly all the lumber exports to China come from sawmills in Western Canada. But analysts say that still benefits eastern sawmills by diverting wood that might otherwise be shipped to the U.S., the report continues. Because much of the China-bound lumber is used for purposes such as concrete forms and pallets, it has also become a ready market for lower-grade lumber cut from trees killed off in Western Canada's mountain pine beetle infestation. Industry officials say, however, they are now getting more Chinese purchases of higher grade lumber, such as that used for wood-frame construction.

"It will be a market that will consume both the lower and upper grades, but over time I would expect the (higher grades) to continue to increase," Canfor chief financial officer Thomas Sitar said in the Reuters report.

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Directory paper producers are pushing for a 7.5% increase in 2011 annual contract prices on the back of a $50-80/ton increase in spot prices since July, reports Mark Wilde, senior analyst with Deutsche Bank. Typically, Wilde explains, contract sales account for ˜85% of total North American directory sales and the level of spot prices determine next year's contract price. In September 2010, 22.1-lb directory paper prices were flat at $670/ton (+$70/ton y/y).

However, compared with September 2008, prices are still $45/ton lower. List prices for other grades were up in September: 35-lb offset was up $45/ton and SC grades (both A & B) rose $30/ton. All of the major producers announced $60/ton price increase on uncoated mechanical grades, effective mid-September/early-October. The increase is driven by improving fundamentals and a pick-up in advertising demand and catalog business (3Q magazine ads were +3.6% y/y), according to Wilde.

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In the North American uncoated free sheet area, September volumes were disappointing, -7.1% y/y, -4.8% m/m & YTD -1.5% y/y, Wilde reports, adding that "this is the worst y/y comp in almost one year.

"Since September 2009 was an easy comp (-7.3% y/y), it's hard to put a happy face on these numbers. Between the two grades, UFS roll shipments appear stronger due to recovery in commercial printing, while cut-size shipments are still hit by high unemployment levels. These numbers are apt to increase pressure on prices. We are hearing some reports of spot deals on both cut-size and offset rolls. UFS ‘list' prices in September were flat versus August levels. While prices for both offset and repro bonds are up $40-50/ton since May, recent shipments data and conversation with trade contacts suggest prices could come under increasing pressure in the coming months," Wilde says.

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Recycled boxboard markets look solid, Wilde continues. All major producers announced URB price increases for late-September/mid-October. Sonoco, Rock-Tenn, Ox Paperboard, Paperworks, Caraustar, and Graphic Packaging announced $35/ton increases, while Newark announced a $30/ton hike. Sonoco also announced a EUR 40/metric ton price increase in Europe, effective mid-October.

URB list prices were flat at $610-640/ton in September (+14.7% y/y), after two rounds of price increases of $30/ton in February and $40/ton in April (announced = $60/ton). In CRB, prices rose $5/ton to $845-$865/ton in September (+12.9% y/y). Since July, prices are up $30/ton (announced = $40/ton).

The current price increase in both grades is driven by somewhat improved consumer packaging demand, strong order backlogs, and higher operating rates, Wilde says. With domestic OCC costs up for the third month in a row (October = +$12/ton m/m to $147/ton), driven by strong Chinese demand and stock rebuilding. Producers' resolve to implement this hike may strengthen, he adds.

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Total printing and writing (P&W) paper shipments decreased 1% in September compared with September 2009, according to the AF&PA's September 2010 Printing-Writing Paper Report. Two of the four major P&W paper grades posted increases compared with last September. U.S. purchases (shipments + imports – exports) of P&W papers increased slightly, up 1% in September. Total P&W paper inventory levels decreased 6% from August 2010. Some additional key findings include:

• Uncoated free sheet (UFS) year-to-date shipments trail 2009 slightly
• Coated free sheet (CFS) shipments increased year-over-year for the eleventh consecutive month
• Coated mechanical (CM) shipments increased year-over-year for the eighth time this year
• Uncoated mechanical (UM) shipments decrease year-over-year for the first time in nine months.

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Total U.S. industry consumption of recovered paper was 2.63 million tons, 8% higher than September of last year, according to the September 2010 Recovered Paper Monthly Report published by AF&PA, Washington, D.C., USA. However, consumption in September was 3% lower than in August.

The U.S. consumed 9% more recovered paper in the first nine months of 2010 than during the same period last year. U.S. exports of recovered paper were down 3% in August compared with July. Year-to-date exports of recovered paper are 2% lower than during the same months last year.

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 Pulp production in Finland through the third quarter was up 26% and paper and paperboard was up 14%, compared with the same period last year, according to the Finnish Forest Industries Federation. The Federation estimates that the value of domestic production in January-September was around EUR 14 billion, about 25% more than a year ago.

"Output of forest industry products continued to grow in the third quarter. The growth figures are indicators of improved demand, but the period of 2009 being compared to was unprecedentedly weak as well," Timo Jaatinen, director general of the Federation, said. "Forest industry companies have already done lots to improve their profitability. Costs have been cut, structures trimmed, and unprofitable capacity shutdown," he added.

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Ahlstrom, Finland, and Longkou Yulong Paper, China, have agreed to establish a new manufacturing facility in the Zhuyouguan Industrial Park in Longkou, northeastern China, for the production of medical papers, used for example in sterilization wraps and masking tape substrates for the building industry in sia.

Ahlstrom will have a 60% share in the joint venture and Longkou Yulong Paper will have a 40% share. The total estimated investment amounts to EUR 21.9 million, of which Ahlstrom will invest EUR 13.1 million. Startup of the new plant is planned for the summer of 2012.

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Fujian Qingshan Paper Industry Co., Qingzhou city, Fujian province, China, has ordered a new fiberline for dissolving pulp from Metso, Finland. Startup is scheduled for the first half of 2012. The value of the order is more than EUR 10 million.

Metso's delivery will include design and supply of the main equipment of the fiberline from cooking to bleaching. The batch cooking plant is designed according to the prehydrolysis process and wash presses will be used in all washing positions.

Fujian Qingshan Paper Industry is a China-based company primarily engaged in manufacture and sale of paper products. In 2009, the company had 12 subsidiaries and close to 2,500 employees with a net sales of about EUR 140 million.

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Metsä Tissue Corp., Finland, this week announced plans to invest nearly EUR 30 million in its newly acquired capacity at the Düren mill in Germany. The sum includes approximately EUR 10 million invested in a paper machine (PM5), related real estate, and infrastructure assets purchased from M-Real in a deal announced last week. The transaction closed this past Tuesday. The mill will specialize in producing the company's baking and cooking papers sold and marketed under the SAGA brand.

The investment program will kick off immediately with a machine rebuild scheduled to be ready during the second quarter of 2011. The rebuilt paper machine will be equipped with enhanced coating options and supported by five converting lines and other related equipment. One of the converting lines is brand-new and the others will be moved gradually from Finland. Converting is scheduled to startup between February and July 2011. Baking and Cooking production at the company's Mänttä mill will be downsized from two paper machines to one during the first half of next year when the 82-year-old paper machine is shutdown.

"With the help of these newly acquired and rebuilt assets, we will further enhance SAGA's product quality and launch new products and categories strengthening the brand. We will do this in close cooperation with our end-users," says Raija Mörö, SVP, Baking & Cooking business.

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Mississippi tree farmers look forward to new biomass facilities in the state providing a new market for wood, according to an article published this past week in the Jackson, Miss., USA-based Clarion-Ledger. The newspaper reported that the state's future as a biomass and biofuels hub was one of the topics discussed at a recent forestry summit at the Old Capitol Museum hosted by Lt. Gov. Phil Bryant. The current nationwide recession has dramatically lowered demand for Mississippi lumber, prompting closings of plants and mills across the state, the report noted.

Those closings have led to a plentiful supply of timber statewide, helping spur plans for biomass energy plants to go up across Mississippi in the next few years. National Clean Fuels (NACF) is partnering with the Center for the Environment, Commerce & Energy to build a biomass-to-electricity (BTE) plant in Port Gibson, Miss. Plans call for the new Port Gibson plant to generate electricity by gasifying sawdust and woodchips to power a turbine, according to the Clarion-Ledger. Wayne Tucker, who heads the Mississippi Institute for Forest Inventory, told the newspaper that the state is growing more trees than it is harvesting, leading to ample local supply for biomass plants.

As detailed in the report, NACF President Maurice Stone announced the completion last week of a second productive scoping trip to Port Gibson. NACF inked a letter of intent with the City of Port Gibson in September to devise plans for biomass and solar-energy production in and around the municipality as well as other potential means of green energy production. The Center for the Environment, Commerce & Energy, which signed an option agreement with NACF earlier this month, will assist in the planning and implementation of the project.

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Neenah Paper Inc., Alpharetta, Ga., USA, announced that it has sold the land and remaining assets of its closed fine paper mill in Ripon, Calif. to Diamond Pet Food Processors of Ripon LLC for a purchase price of $9 million. The company notes that it will recognize a pre-tax gain on the sale of approximately $3 million in the fourth quarter.

Neenah Paper is a global manufacturer of performance-based papers and specialty products used in a variety of applications, including filtration, printing and writing, and as backing and component materials for various specialized industrial and consumer applications. The company has paper manufacturing operations in the U.S. and Germany

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The folding carton, through its widespread specification, amounts to 94% of 2009 paper-based container sales, according to a recently released study by Research and Markets, Dublin, Ireland. The report, titled "Folding Cartons: Key to Paper-based Packaging Prospects," notes that food and tobacco are core applications, constituting 81% of carton sales.

Pressures on use remain pertinent as health and convenience factors challenge growth as apparent in cigarettes and bar soap, the report points out, adding that the carton's ability to add value makes it an expected component in beauty care. This will not disappear even if the economic downturn has certainly brought about a contraction in growth, it emphasizes.

The "Folding Cartons: Key to Paper-based Packaging Prospects" global briefing provides an insight into to the size and shape of the packaging market, highlights the effect of emerging geographies, categories and consumer trends on the packaging landscape. It identifies the leading pack types and offers strategic analysis of key factors influencing the packaging market, be they packaging innovations, consumption growth, category switching, economic/lifestyle influences, legislation, or environmental issues. Forecasts illustrate how the market is set to change and criteria for success.

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The global value of the paper packaging market is $228.3 billion in 2010, according to a new Visiongain report just released by MarketResearch.com, Rockville, Md., USA, titled "The Paper Packaging Market 2010-2020." Growth is expected to accelerate for the period of 2010-2020, mainly driven by the Asian region, especially emerging nations, including China and India. Both India and China are expected to be key contributors in the industry's growth over the next few years. There is also optimism that the overall paper packaging sector in China, India, and Brazil will see expansion by the end of 2011, the report says.

Dynamic growth, burgeoning food processing sectors, and an increased presence of multinational players will support the boost. Moreover, rising demand for eco-friendly, disposable, and recyclable packaging options are likely to further strengthen the market growth.

As the global paper packaging market undergoes regional shifts and technological changes, the future of the industry will look very different, leading to growth opportunities, the new report exp[lains. Moreover, the industry is likely to experience several revolutions and reformations, as new products and processes will be introduced to the world market, along with improved grades of paper packaging. These business opportunities are described in detail within the report.

The report surveys recent market trends among major companies and reveals where the market will experience growth, laying out the market's strengths and weaknesses with targeted forecasts.

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Sonoco, Hartsville, S.C., USA, has been ranked in the top 25% of the 500 largest publicly traded U.S. companies at 125th in Newsweek magazine's Green Rankings for a second consecutive year. The company's reputation was rated third in the General Industrials sector and 33rd overall. Sonoco's Green Policies and Performance ranking was 109th overall and fifth in the General Industrials sector.

To develop the 2010 Green Rankings, Newsweek magazine collaborated with MSCI ESG Research, which served as lead research organization, Trucost, which specializes in quantitative measurements of environmental performance, CorporateRegister.com, the world's largest online directory of social responsibility, sustainability, and environmental reports, and ASAP Media. The goal of the rankings was to assess each company's actual environmental footprint and management of that footprint (including policies and strategies) as well as its reputation among environmental experts. The 500 companies included in the rankings are the largest U.S. companies as measured by revenue, market capitalization, and number of employees.

"We are very pleased to be rated so highly again this year, especially given the extensive in-depth research that was done to develop the Green Rankings," said Harris E. DeLoach Jr., Sonoco chairman, president, and CEO. "To have our commitment to setting the standard for sustainability in the packaging industry recognized again is extremely gratifying for all of our employees and other stakeholders."

In September, Sonoco was also one of only two U.S-based packaging companies selected to join the 2010/2011 Dow Jones Sustainability World Index.

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Making it easier for consumers to take a "green step" at home, Kimberly-Clark, Dallas, Texas, USA, this week introduced the first toilet paper in the U.S. without the cardboard tube for use at home. Scott Naturals Tube-Free bath tissue eliminates the cardboard tube that has been the central fixture of rolled toilet paper for more than 100 years The new product is currently being tested exclusively at select Walmart and Sam's Club stores in the northeast U.S.

"The Scott brand was the first to put bath tissue on a cardboard tube, and is now the first brand to eliminate the tube," said Doug Daniels, brand manager of strategy and innovation for the Scott brand. "Scott Naturals Tube-Free bath tissue performs as well as traditional rolled toilet paper – while reducing material in the waste stream."

U.S. households use an estimated 17 billion bath tissue tubes annually, equivalent to 160 million pounds of waste, equal to the weight of more than 250 Boeing 747 airliners. The cardboard tubes can be recycled, but often are not. In fact, in a survey by Scott Naturals brand of about 1,000 participants, more than 85% said that they throw it out with the trash most often.

"By eliminating the tube, we are making it easy for consumers to help tangibly improve the environment, without compromising on product quality or performance," said Daniels. "We know that it all adds up, and we're helping our consumers make a positive impact."

Scott Naturals Tube-Free bath tissue is easily placed on a regular tissue spindle and dispenses the same way as the traditional product. There is no change to the user's normal routine. The product will be priced the same as current Scott Naturals bath tissue with the tube.

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MeadWestvaco (MWV), Richmond, Va., USA, has introduced a new snack container that combines MWV's design and engineering expertise in barrier packaging and Interpress' new converting technology in a "next-generation" paperboard container for packaged foods specifically designed to be more efficient and customizable. MWV developed the product and is partnering with Interpress Technologies, a printing and custom forming food packaging products company.

"By designing a snack packaging solution that is paperboard based, we achieve a higher level of shipping efficiency due to its lighter weight and nestability features," said Douglas Reid, marketing director, new business development, MWV. "The snack container has the potential to ship 8.3 times more containers on one pallet compared with composite cans, equaling sizeable savings."

According to MWV, the snack container options help enhance brand visibility, appearance, and ease of retailer handling due to the shape. Unlike traditional round containers, which on average face the wrong direction 16% of the time, the snack container prevents confusion at shelf level, the company notes.

MWV and Interpress are working on a second iteration of the product that offers both an oxygen barrier and an airtight, hermetically-sealed lid, especially effective for packaging nuts, chips, and other snacks that contain oils. The seal is essential to preserve the quality of these perishable types of food.

All MWV paperboards are compliant with a full range of rigorous, global food contact and safety standards including USFDA, ISEGA, CONEG, ASTM, and RoHS.

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Sappi Fine Paper North America, Boston, Mass., USA, this week announced the release of The Standard No. 4, Scoring & Folding, a Sappi guide to designing for print. Containing tips, techniques, and methods for achieving optimum printing results for communications materials, the publication tackles one of the most common print challenges and underutilized creative tools—scoring and folding.

Created and designed by legendary designer Kit Hinrichs, Studio Hinrichs, with content provided by Trish Witkowski, foldfactory.com, The Standard by Sappi Fine Paper North America features examples of successful folds that have communicated, enticed, and surprised their recipients. By featuring real examples and sharing critical steps in print production, readers can access the information they need to create their own successful folds. Additionally, The Standard demonstrates how folding can elevate a printed piece from interesting to unforgettable.

Volume 4 takes the reader from folding basics, a glossary of terms and a list of do's and don'ts to a demonstration of scoring differences, actual in-use case studies, and seven folding samples that readers can hold and try themselves. The book includes an inserted wall-size poster featuring all of the folding "families" at a glance.

The Standard is assembled not only to educate designers, printers, and production professionals, but also is a three-dimensional folding demonstration in itself. More information is available online.

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Graphic Packaging International (GPI), Marietta, Ga., USA, a subsidiary of Graphic Packaging Holding Co., has announced a price increase of $40 per ton for its PaceSetter coated recycled board (CRB), and a price increase of $40 per ton on its SUS coated unbleached kraft paperboard (CUK), effective with shipments on or after December 1.

The SUS board increase effects GPI's coated folding carton grades, Omni-Kote and Pearl-Kote, as well as its carrier grade, Aqua-Kote.

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Kemira, Finland, has announced price increases for its pulp and bleaching chemical products. The increase will range from 15% - 35% for products such as sodium chlorate, sodium hydroxide, hydrogen peroxide, sulfur products, and hydrochloric acid. The increase became effective for all deliveries on or after November 1, as specific contract terms allow.

While Kemira continues to take actions to minimize the impact of escalating raw material costs, it is necessary to adjust pricing in order to compensate for the energy impact, other raw material costs, and increased freight costs of the pulping and bleaching chemical product lines, the company notes.

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SCA, Sweden, reports that it will merge its operations in the field of renewable energy into one new business unit. In addition to encompassing such existing business operations as wind power, forest-based fuel, and fuel pellets, the new unit, which will be called SCA Energy, will assume responsibility for the development of new business opportunities in the energy sector.

"Our annual sales of renewable energy already total about SEK 800 million," says Åke Westberg, who has been appointed Manager of SCA Energy.

The new business unit will include SCA Norrbränslen, SCA'S forest-based fuel business that delivers logging residues, peat, and other unprocessed fuels, SCA BIOnORR, a producer of fuel pellets from sawdust and other residual products from sawmills in facilities in Härnösand and Stugun, and SCA's wind-power business.

"Interest in renewable energy production is growing, and new companies and business opportunities are materializing in Sweden and abroad. SCA has significant unutilized resources, both in terms of biofuels and wind power. Accordingly, we aim to concentrate our resources in the field to also become an attractive partner for large customers and energy producers. The new business unit will also coordinate SCA's development initiatives in the energy area. The energy supply to SCA's own production units will continue as before and is not included in the new business unit. SCA Energy will commence business operations at the end of this year.

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Nova Scotia Power (NSP), Halifax, Nova Scotia, Canada, and NewPage Port Hawkesbury, Nova Scotia, are proceeding with the 60-MW biomass co-generation facility recently approved by the Nova Scotia Utility & Review Board. The sale of certain mill assets is expected to close in the near term. Project planning, engineering, and procurement work have been ramped up in the past few weeks, recognizing the need to have the plant in service by early 2013.

"This development in cooperation with our largest customer provides benefits for all ratepayers," said Robin McAdam, EVP, Sustainability for NS Power. "It creates and protects jobs in Nova Scotia, redirects spending on fuel from foreign suppliers to Nova Scotians, and helps meet our renewable energy goals. I want to emphasize NS Power's commitment to ensuring that sustainable forestry management practices are used in the fuel supply process."

 Bill Stewart, director, Woodlands and Strategic Initiatives, NewPage Port Hawkesbury, noted that "the new biomass facility is important for NewPage, for the Port Hawkesbury Mill, and for rural Nova Scotia. In addition to supporting the local economy, it helps our mill remain a model for sustainable operation."

The $208 million biomass project is expected to create an estimated 150 new jobs in Northern Nova Scotia, primarily in the forestry sector, and approximately 50 person-years of employment will also be created during the construction phase. The co-generation facility will produce about 400 GW hours of energy a year, or about 3% of Nova Scotia's total electricity requirements.

NewPage is responsible for construction and operation of the co-generation facility as well as the fuel supply. Biomass is one of Nova Scotia's options for renewable energy, as outlined in the Renewable Electricity plan. Only "stem wood" will be used to make electricity. Tree stumps, tops, and branches will not be removed from the forest floor because they're necessary to restore nutrients in the soil, NSP notes.

The Port Hawkesbury Mill has been in operation since 1962. It has a current production capacity of 190,000 metric tpy (210,000 tpy) of newsprint (standard and high brightness) on PM 1 used to produce retail inserts, supplements, and special newspapers and 360,000 metric tpy (396,000 tpy) of supercalendered (SC-A++, SC-A+, and SC-A) paper on PM 2 used to produce magazines, catalogs, advertising materials, and flyers. A thermomechanical pulp line, commissioned in 2004, provides high-quality furnish for the paper mill.

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Smurfit-Stone Container Corp., Chicago, Ill., USA, reports that its President and COO Steven J. Klinger intends to resign from the company, effective December 31. Klinger will also resign from the company's board of directors.

"Steve has had an enormous influence on Smurfit-Stone since he joined the company nearly five years ago," said Patrick J. Moore, CEO. "He helped lead a multi-year operational transformation plan that resulted in greatly improved efficiencies, more modern equipment, an aligned sales and marketing function, and a more cost-effective business model. Steve's passion for building high-performing teams has resulted in our ability to attract and retain top talent and will have a lasting impact on this organization."

Klinger noted that "I am proud of all that the Smurfit-Stone team has accomplished over the past few years. Our employees are the best in the industry. In spite of the challenging economy, the industry slow-down, our transformation, and financial restructuring, we have solidly positioned Smurfit-Stone for long-term profitable growth. These are exciting times for the company and I am honored that I had the opportunity to be a part of it."

Smurfit-Stone's board announced in August that it has launched a search for a CEO successor to Moore, who has announced his intent to retire.

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Smurfit-Stone Container Corp., Chicago, Ill., USA, named Craig A. Hunt to the position of chief administrative officer and general counsel, effective the beginning of this week (November 1). Hunt currently serves as SVP, secretary, and general counsel.

"Craig has provided critical leadership to the company, especially throughout the restructuring process. He will be a key member of the senior leadership team going forward," said Ralph F. Hake, chairman of the board of directors.

Hunt joined the legal department of the former Jefferson Smurfit Corp. in 1990, and has served as general counsel for the past 12 years.

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Thiele Kaolin Co., Sandersville, Ga., USA, this week reported that Sam Smith will retire as the company's president effective Feb. 1, 2011. Paul Kirschling, current VP and technical director of the company, has been named as Smith's successor.

"The decision to retire was certainly made with mixed emotions," Smith noted in a memo to Thiele employees. "Thiele Kaolin Co. and its employees have been a big part of my life for more than 45 years."

A graduate of the Georgia Institute of Technology, Smith joined Thiele in 1965 as a Research Group Leader, becoming research director in 1971, where he served until 1985. He then served as technical director from 1985-2000 and from 2000-2004 served as VP and technical director. Smith became president of Thiele in 2004 and in 2008 was named chairman of the board of directors.

"Paul has been a tremendous asset to Thiele for the past 34 years," said Smith. "I am pleased to pass the presidency to him and look forward to seeing the great things that are in store for the company under his leadership."

Kirschling, a graduate of the University of Wisconsin – Eau Claire, joined Thiele in 1976 as a technician in the Reedy Creek Division's quality control lab, where he remained for three years. In 1979, he was promoted to quality control lab foreman and supervisor. Kirschling then became assistant operations manager at Reedy Creek in 1988 and served in that role until 1989, when he became manager of research and development in Sandersville. Since 2004, he has served as VP and technical director.

"It is a great honor to be chosen to lead Thiele Kaolin Co. into the future," Kirschling said. "The dedication and skill of our employees is unmatched in the industry. With their support, Thiele will continue to provide innovative and high performance products and services that have become synonymous with the Thiele name."

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Rayonier, Jacksonville, Fla., USA, has elected Mark E. Gaumond to its board of directors, effective immediately. Gaumond retired earlier this year as senior vice chair – markets of Ernst & Young, where he oversaw the assurance, tax, transaction, and advisory service lines in the Americas region. Previously, he was managing partner of the firm's San Francisco, Calif., office.

Prior to joining Ernst & Young in 2002, Gaumond spent more than 25 years with Arthur Andersen LLP, where he served as the audit partner for several multi-national companies operating in a variety of industries.

"We are delighted to have Mark join our board. His 35 years of managerial, financial, and accounting experience will be an excellent resource," said Lee M. Thomas, chairman and CEO.

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This November, get to know TAPPI member Richard "Dick" Target as he stars in the Member Spotlight . Dick is currently owner of On Target Consultants  which serves the paper and converting industries and also develops new technology for box plants around the world.

He has written several technical articles for Board Converting News and Corrugated Today, along with several Technical Manuals for TAPPI's Lean Manufacturing Course. He has served as a volunteer on multiple Production and Printing Committees and also serves as an instructor, as well as attends, numerous TAPPI classes, courses and conferences throughout the year.

Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member (or even yourself!) just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire to fill out and return.

We look forward to seeing you in the Spotlight!

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The 2011 Student Summit will take place January 15-17 in Kingsport, Tenn. It will draw students from around the country to focus on "New Directions" and promising developments in the pulp and paper industry.

Attending students can meet with experienced industry professionals, interview for jobs, participate in a fun engineering competition and get to know fellow students. The event will include a range of valuable experiences including:

•  a mill tour of Domtar
• a presentation on Biofuels
• a Mill Manager Roundtable and
• focused sessions on a variety of important topics.

Learn more about the 2011 Student Summit.

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The Technologically Advanced Workforce initiative (TAW) was created to help improve profitability related to human performance in the pulp, paper and allied industries. TAPPI began governing the TAW in 2009 at the request of the Agenda 2020 Chief Technology Officers Committee. This new advisory board has been formed to address general guidelines for the purpose, mission and strategic direction of the TAW initiative and NPT2.

Members of the newly created TAW Executive Advisory Board represent leadership from industry, union and government sectors. The Board held its first meeting in late September and industry representatives attending included: John Donahue, SAPPI Fine Paper N.A.; Lyle Fellows, Verso Paper; Curtis Sears, MWV; Ellsworth Townsend, Packaging Corp. of America; and Cindy Reinhart, Metso. Andrea Harper, Georgia Department of Labor, represented government and Keith Romig, United Steelworkers, was the union representative. T.J. Murphy represented National Network for Pulp and Paper Technology Training (NPT2) and TAPPI staff members were Larry N. Montague, Mary Beth Cornell and David Bell.

"A Jaakko Pöyry study on the pulp and paper industry has shown that at least 30 percent of the variability in profitability can be explained by performance of people in the workforce," Murphy said. "The TAW's mission is to be a catalyst for collaborations among industry, government, associations, workers, educators, trainers, community and technical college systems, and economic development organizations. These collaborations will be nurtured to attract and develop a technically superior workforce to operate, maintain and manage the new and advanced technologies essential to a globally competitive U.S. forest products industry. It has been forecasted that if successful, TAW could increase industry's profitability by 25 percent, as measured by return on capital employed (ROCE)."

TAW is one of the key focus areas of Agenda 2020 and was first envisioned at the Technology Summit in May 2001.

The NPT2 was established in 2004 as a national network of community colleges that produces technicians specifically skilled in the pulp, paper and allied industries. The objective of this initiative is to provide training and education to ensure that the technologies chosen to create the forest products industry of the future are continued. 

One of the goals of the TAW is to attract new employees to the industry. The National Association of Manufacturers reports that America will face a shortage of 13 million skilled industrial workers by 2020.
With this in mind, TAPPI and its partners have also developed a website: www.careersinpaper.org. This website hosts a speaker's kit that includes a video, brochure and PowerPoint presentation that people can present at their local schools. The video "5 Reasons to be a Paper Engineer" can also be seen on YouTube.

Co-chairs of the TAW Advisory Board are Larry N. Montague, TAPPI's President and CEO and T. J. Murphy, Director of NPT2. For more information about the TAW please contact David Bell.

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PIMA, the Management Division of TAPPI, has issued a call for nominations for its 2011 awards. The recipients will be honored at the 2011 PaperCon on May 3, 2011, at the Northern Kentucky Convention Center near Cincinnati, Ohio. The deadline for nominations is November 30, 2010.

Here are the awards and brief descriptions:

PIMA'S Executive of the Year --The Executive of the Year Award is the highest honor bestowed by PIMA, traditionally presented to senior-level executives in the pulp, paper or converting industries for excellence in management and outstanding contributions to the industry as a whole.

Mill Manager of the Year --The Mill Manager of the Year Award recognizes the mill manager who has best demonstrated outstanding leadership, management and organizational skills leading to improved results at the facility for which he or she is responsible. Nominees for this award are judged on four criteria: skill in people development; application of best management practices; effective use of external resources; and change management.

The Brookshire Moore Superintendent of the Year -- Recognizes the mill superintendent who has shown high personal standards and professional management qualities that contribute to the betterment of those under their management and in their company.

Technologist of the Year -- The Technologist of the Year Award recognizes a member of a technology or IT team from a paper or paper converting company who has best demonstrated outstanding leadership, management and organizational skills leading to improved results at the facility or enterprise for which he or she is responsible. Nominees for this award are judged on five criteria: effective application of technology, skill in people development; application of best management practices; effective use of external resources; and change management. This award is only available to employees of a paper company.

Ray H. Cross Community Service Award -- This award pays tribute to pulp and paper industry persons who have rendered outstanding service to their communities by involvement in the activities of local business, educational, civic and philanthropic organizations.

Delano L. "Del" Boutin Local Section Service Award -- The Del Boutin Division Service Award is presented to pulp and paper or affiliate members for devoted service to a PIMA Local Section. The award recognizes long-term dedication of PIMA members at the local division level.

Thomas F. Sheerin Sr. Service Award -- The Thomas F. Sheerin Sr. Service Award is presented to a supplier for outstanding contributions to the pulp and paper industry and/or the community.

IT Service Award -- This award is presented to an IT affiliate/supplier for outstanding contributions to the pulp and paper industry and/or the community.

Kenneth H. Phillips Specialist Group Award -- The Kenneth G. Phillips Specialist Group Award is presented to pulp and paper or affiliate members in recognition of outstanding service as a member of one of PIMA's Professional Specialist Group committees.

Student of the Year Award -- This award recognizes and supports outstanding students enrolled in paper science programs.

Nomination forms may be downloaded, completed and e-mailed to standards@tappi.org. There is also a downloadable PDF version that can be completed and mailed to TAPPI, PIMA Nominations, 15 Technology Parkway, Norcross, GA 30092. It may also be faxed to +1 770 446-6947.

TAPPI is the leading association for the worldwide pulp, paper, packaging and converting industries and publisher of Paper360°and TAPPI JOURNAL. Through information exchange, events, trusted content, and networking opportunities, TAPPI helps members elevate their performance by providing solutions that lead to better, faster, and more cost-effective ways of doing business. As the Management Division of TAPPI, PIMA helps management professionals address relevant industry issues and develop their management and leadership skills. To join TAPPI & PIMA, go to www.tappi.org/join. For more information, visit www.tappi.org or www.pimaweb.org.

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Registration is now open for TAPPI's popular course, Best Practices on the Corrugator, taking place February 15-18, 2011, at TAPPI's new training facility in Norcross, Ga. It's not too early to act. Your registration now will cost less than putting off the decision. And, this course has filled to capacity in the past with a sell-out limit at 25 participants for optimum interaction among knowledgeable instructors.

Operators of corrugators, production managers, box plant supervisors and engineers can all benefit from the content offered during this short course. Take a look at the Preliminary Course Schedule to see what's planned.

You can learn how to increase productivity, improve quality and minimize waste. Take home new ideas and operational methods to improve production. And, share your specific problems and issues with the experts who'll be onsite to answer them.

Don't just take our word for it. Here's what participants wrote in evaluations from the 2010 course:

• "The instructors were very knowledgeable and class participants were not all of an entry level. Great interaction."
  
• "I have a much better understanding of what's happening in all aspects of the operation."
  
• "Great networking; very intelligent instructors who really know their stuff!"
  
• "This course covers all aspects of the corrugating industry from paper to end products."
  

Register before January 14 to take advantage of your savings opportunity and the 2.4 CEUs offered for this 3.5-day course.

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There are some things that you can count on. For example, January begins the calendar year and each January brings two popular TAPPI courses.

The first is the TAPPI Intro to Pulp & Paper Technology Course, January 10-13, 2011. Led by Dr. Mike Kocurek, one of the industry's leading instructors, this course is ideal for anyone new to the pulp and paper industry. It delivers a comprehensive overview of the entire pulping and papermaking process. Historically, the course has been designed to meet the needs of pulp and paper company employees as well as chemical and equipment suppliers. Visit online to learn more about reasons to attend and what can be expected after completing the course.

Occurring at the same time is another perennial favorite, the 2011 TAPPI Kraft Recovery Course. The course chair is the venerable Honghi Tran, who also serves as Professor and Director of the P&P Centre at the University of Toronto. The course aims to meet the needs of pulp mill operations professionals. Assisting Professor Tran are a faculty of 14 field and veteran instructors. More information appears online.

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Daniel O. Adams recently passed away. He joined TAPPI in 1941 and was actively involved in the Southeastern Local Section and the Alkaline Pulping Committee of the Pulp Manufacture Division. In 1978 he was elected to serve a three-year term on the Board of Directors for TAPPI and in 1981 was named a TAPPI Fellow. He also was an active leader in other paper industry associations.

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