Voith Paper

Over the Wire

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Sensor Products Inc
Weekly Spotlight
As part of the Myllykoski integration, UPM, Helsinki, Finland, reports that it has completed a comprehensive review of the long term competitiveness of its publication paper mills. The review covered asset efficiency, production input availability, and costs as well as end-use markets. As a result of the review, UPM says it plans to adjust magazine paper capacity to match the needs of its global customer base. The company will start negotiations with employees on a plan to permanently remove 1.2 million metric tpy of magazine paper capacity in Finland, Germany, and France, and 110,000 metric tpy of newsprint capacity in Germany. The plan also includes restructuring of the overlapping paper sales and supply chain networks and global functions.

The planned measures include:

  • Permanent closure of the UPM Myllykoski mill in Kouvola in Finland
  • Permanent closure of the UPM Albbruck mill in Germany
  • Permanent closure of PM 3 at the UPM Ettringen mill in Germany
  • Transfer of sheeting lines from UPM Albbruck mill to UPM Plattling mill in Germany
  • Sale or other exit of the UPM Stracel paper mill from UPM Paper Business Group
  • Restructuring of overlapping paper sales and supply chain network as well as global functions.

In addition, UPM plans to temporarily close PM 2 producing uncoated fine paper at UPM Nordland Papier in Germany and streamline operations in Pietarsaari pulp and paper mills in Finland.

The planned closure of the Myllykoski and Albbruck mills and PM 3 at UPM Ettringen would be scheduled by the end of 2011. The Stracel mill sales process would start this autumn and is expected to be completed within twelve months.

The implementation of the plan would reduce the number of employees by approximately 1,170. Based on the plan, UPM will book in the third quarter of 2011 an approximately EUR 70 million write-off in fixed assets and make a provision for costs of approximately EUR 200 million. Net cash impact from the restructuring plan amounts to approximately EUR 170 million. Annual synergy benefits of the Myllykoski acquisition including the planned actions are estimated to total approximately EUR 200 million.

"The paper industry faces severe challenges due to high raw material, energy and logistics costs, and considerable overcapacity. The profitability of our paper business is clearly below the level required to run long-term sustainable operations. The planned restructuring would further strengthen the cost competitiveness of UPM's paper operations and reduce the future need for major maintenance investments," said UPMs President and CEO Jussi Pesonen.

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The Global Conifer Sawlog Price Index (GSPI) reached a new all-time high of $92.27 per cubic meter in the second quarter (see graph), according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA. This was 5.6% more than the previous quarter, and an almost 20% jump from a year ago. The GSPI has gone up every quarter since the first quarter of 2009 when the Index was at $66.10 per cubic meter. This almost 40% increase in two years is due not only to a weakening of the U.S. dollar against all other currencies in the Index, but also to the higher costs of logs in local currencies, WRQ notes.

Wood fiber costs for the global pulp industry have trended upward for over two years, WRQ adds. The Softwood Fiber Price Index (SFPI) reached $109.52/o.d. metric ton in the second quarter, a 3.7% increase from the previous quarter and a 23% increase from Global Wood Fiber Price Indices 1988 - 2Q/2011 two years ago. In local currencies, fiber prices increased the most in the U.S. Northwest, Western Canada, Russia, and Finland. The weakening U.S. dollar against most global currencies resulted in higher fiber prices in all regions covered by the WRQ in U.S. dollar terms.

The Hardwood Fiber Price Index (HFPI) reached a new all-time-high in the second quarter at $116.44/o.d. metric ton, which was 5.5% higher than the first quarter and almost 27% higher than in early 2009. Recently, hardwood prices have increased the most in Indonesia, Finland, Russia, and Brazil, WRQ reports.

Global pulp markets continued to be surprisingly strong in the second quarter, setting record high prices for most market pulp grades, according to WRQ, NBSK pulp prices ranged between $1,010/ton and $1,040/ton both in Europe and in North America, while prices in China were around $850 - $930/ton. Global production of market pulp was up as much as 8% during the first five months of this year compared with 2010. The highest increase occurred in Latin America. The gain in Europe was somewhat smaller.

Lumber exports from the Nordic countries slowed during spring, and prices fell slightly. The average export prices of lumber from Finland and Sweden have fallen from last fall and were 3% - 6% lower in April than in October of last year, WRQ says. Lumber production in the US fell by 13% from March to April because of slowing domestic demand, and the average operating rate for U.S. sawmills was down to 67%. With the persistent weak demand for lumber in the U.S., sawmills in Eastern Canada continue to struggle, as they are so dependent on the health of the U.S. market for their survival. The operating rate so far in 2011 has been only 55% of capacity. Lumber imports to China continue to set new records. During the first five months of 2011, the importation of softwood lumber was up 72% from the same period last year, WRO points out.

Prices for woody biomass, including mill residues and forest residues, increased slightly in all major biomass-consuming regions of the U.S. in the 2Q, WRQ continues. Pellet prices in Europe were unchanged or slightly lower in the second quarter compared with the first quarter, but the long-term trends are still upward with prices being close to record levels. Asian demand for biomass energy is finally beginning to emerge, WRQ adds. Japan, China, and South Korea have recently announced policies to increase the use of biomass.

More information is available online.

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There are no new or unknown risks from seven of the most commonly used nanomaterials, according to a new report from the Danish Environmental Protection Agency (DEPA). But the agency said "a fundamental lack of knowledge" meant it was unable to give the nano-substances its full safety backing.

In a 136-page document, scientists from Denmark provided an overview of the functions of the most used materials and identified potential areas of concerns linked to their usage. But while declaring their work brought to light no new risks from the substance, the group also clearly stressed that a decisive risk assessment was beyond current knowledge. "Much remains unknown with significant more research crucial to deepen understanding," the report noted.

Noting the lack of consensus of the definition of nanomaterials, DEPA said they are "often" described as "materials having one or more external dimensions in the nanoscale (1 nm to 100 nm) or materials that are nanostructured (possessing a structure comprising contiguous elements with one or more dimensions in the nanoscale but excluding any primary atomic or molecular structure)."

The seven nanomaterials examined were titanium dioxide, cerium dioxide, fullerenes (carbon balls), silver, zero-valent iron, silicium dioxide, and Nanoclay. While the authors identified cosmetics, sports equipment, and lubricants as the most current common uses of the technology, areas such as food packaging and formulation are generally acknowledged as two other areas where potential future use is greatest. Nanosilver is used for its antimicrobial properties in packaging while adoption of nanoclay is centered on its oxygen barrier abilities.

The research found that titanium dioxide, nanoclay, and silicium dioxide were the materials used most in Denmark. "The use of nanosilver has not been confirmed, but indications exist that some products/brands may contain nanosilver,", the authors added.

The use of nanosilver in food and cosmetics products is a hotly debated one. In June 2010 the German Federal Risk Assessment body (BfR) declared there was "no place" for the substance in the applications until there was conclusive proof of its safety.

Use of cerium dioxide remained unconfirmed and no was available on fullerenes and zero-valent iron.

The report sets out a raft of information - characteristics, uses, manufacture, and possible hazards – but it also underlines that "the specific knowledge base is limited and that more information is needed for sufficient characterization of the nanomaterials and for illustration of the relevant (eco) toxicological endpoints." There are also significant knowledge gaps "with regard to fate, behavior, and kinetics" and, crucially, there is a need for consensus on methodology for risk assessment.

"Conclusive risk assessments were therefore not possible to develop within the framework of the present project," said the group. It added that "based on the reviewed literature, the seven selected nanomaterials were not found to exhibit new and completely unknown risks to the consumer or to the environment in the current application." It estimated that products in the form of liquids or free particles would lead to the highest exposures in the environment and to humans - particularly liquids intended to come in direct contact with the body.

The group cautioned that potential risk is likely to increase with increased exposure – but added again that more research was need, especially relating to engineered nanomaterials. A key question was whether risk assessments regarding the bulk counterpart of such substances as titanium dioxide could be applied to nanoscale materials. A further debate topic is that while some nanomaterials are naturally occurring and have been used for decades, they can be modified with different surface coating, which can alter their physical-chemical properties and toxicity, DEPA added.

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A return of manufacturing to the U.S. will accelerate as companies take into account the full costs of outsourcing to China and the strategic advantages of making products closer to consumers in North America, according to a new report by The Boston Consulting Group (BCG), Chicago, Ill., USA. The report, titled "Made in America, Again: Why Manufacturing Will Return to the U.S.," was released this past week.

"Made in America, Again" expands on earlier BCG research into the structural cost shifts that are likely to lead to what the firm has called a "manufacturing renaissance" in the U.S. That analysis, released in May, forecasts that, over the next five years,15% to 20% annual increases in Chinese wages, a strengthening yuan, and other factors will nearly erase China's manufacturing cost advantage versus low-cost U.S. states for goods imported into North America, when higher U.S. labor productivity is factored in.

The new report analyzes those cost shifts in greater detail and explains why the U.S. will gain manufacturing even if Chinese productivity accelerates. Although Chinese productivity will continue to grow at an impressive 8.5% annually for the next five years, factory wages will rise twice as fast. Even if Chinese factories install the same highly automated assembly lines used in U.S. factories, that would not be enough to preserve China's fast-eroding manufacturing cost advantage for many products, the report notes.

"Greater automation would undercut the primary advantage of outsourcing to China, which is access to cheap labor," said Harold L. Sirkin, a BCG senior partner and lead author of the study. "Once companies carefully look at all the costs, many will find they'll be better off making their products closer to customers in the U.S."

Companies also are paying more attention to the strategic advantages of locating production of many goods closer to U.S. consumers—and to the downside of operating extended global supply chains. "When you include things like transportation, duties, and currency appreciation, any gains from sourcing in China may not be worth the many risks and headaches associated with operating supply chains extending halfway around the world," explained Michael Zinser, a BCG partner who leads the firm's manufacturing work in the Americas.

A copy of "Made in America, Again" is available online.

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Focusing on innovations in the nonwovens area that are changing the world we live in and re-shaping the future of nonwovens, three special keynote speakers kick off the TAPPI NETInc Innovative Nonwovens Conference being held September 13 - 15 at the Hyatt Regency, Atlanta, Ga., The first speaker (photo on right), Dr. Anthony Atala, M.D., from Wake Forest Baptist Medical Center and Chair of Urology at Wake Forest Baptist Medical Center in North Carolina (awarded the first annual 2011 Innovation in Nonwovens Award for his work using nonwoven scaffolds for regenerative medicine) will discuss his work and also provide his view of the future of nonwovens in the medical arena. Dr. Atala will report on the first lab-grown organ to be implanted in a human and future experimental fabrication technology to "print" human tissue on demand. His team engineered the first lab-grown organ to be implanted into a human—a bladder—and is developing experimental fabrication technology to "print" human tissue on demand. Dr. Atala was number 71 on Fast Company Magazine's Top 100 Most Creative People in Business and has been featured on the Oprah Winfrey Show as well as CNN.

Peter Mayberry (photo on right), Mayberry & Associates, the second keynote speaker, will discuss his report, "Medical Devices and the Public Health: The FDA 510(k) Clearance Process at 35 Years," which could ultimately have a chilling impact on innovation to all sorts of nonwovens, including feminine hygiene products (tampons and pads), single-use surgical drapes, single-use surgical gowns and other operating room apparel, and bandages and other types of wound dressings—virtually all of which are classified as either Class I or Class II medical devices under U.S. law. After this presentation, audience members should have a thorough understanding of the process used by the U.S. government to approve new/improved medical devices made from nonwovens and other technical textiles.

Don Scott, VP of marketing and business development, Malnove Packaging and Packaging Solutions, will present a true innovation success story from a company that has successfully used nonwovens in a new packaging solution that is gaining national recognition. His company's nonwovens packaging solution was recently highlighted on CNBC and featured in Package Design Magazine. Sustainable packaging is a hot topic and a driving force for shelf space and consumer demand. Scott's company is leading the way.

More information about the keynote speakers and other sessions and activities at NetInc 2011, including online registration, is available on the event website.

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The latest listing of job openings in the TAPPI Career Center include a variety of positions, from sales and service to maintenance management, planner/scheduler, plant manager, process engineer, and a pulp and paper internship. Current job openings in the TAPPI Career Center include:

Employer Title Location
Ace Chemical Products Sales and Service Wisconsin
Advance Packaging Corp. Corrugator Supervisor Grand Rapids, MI
AIRTHERM Corp. Sales Engineer Longview, WA
BASF, The Chemical Co. Research Associate Sr. II - Paper Binder Technology - Charlotte, NC Charlotte, NC
Cargill Territory Manager Minnesota
Confidential Director, Operations Excellence, Reclamation Atlanta, GA
Confidential Planner/Scheduler - Corrugated Converting Plant Central California,
Confidential Plant Manager - Corrugated Converting Plant California
Confidential Corrugator Supervisor
Crane & Co., Inc. Sr. Process Control Engineer Dalton, MA
Finlay Partners Pty Ltd Head of Maintenance - Electrical/Instrumentation (Australia) Melbourne,
GL&V USA INC. Pulp and Paper Internship Nashua, NH
Solo Cup Co. Lead Paper Design & Tooling Engineer Lake Forest, IL

More information about these jobs is available online.

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The Dissolving Pulp Forum at this year's TAPPI PEERS Conference, October 2 -5, at the Oregon Convention Center in Portland, Ore., USA, examines the still-evolving specialty cellulose "gold rush" from three basic perspectives. Following a Sunday afternoon (October 2) opening presentation by global consultants, The dp Group, on latest process developments and technologies worldwide, suppliers including Andritz and Metso, will explore systems approaches being used in several major conversion and expansion projects underway around the world. Jacobs Engineering then examines options, directions, and considerations for companies evaluating dissolving pulp production. The Sunday sessions are capped by a special panel session with seven experts in the arena, including speakers from the earlier sessions. This discussion session responds to specific, submitted questions and comments from the attendee audience.

On Monday morning (October 3), the Forum shifts focus with a special bridge session into the main PEERS program that looks at current market developments around the world and the developing outlook for dissolving pulp production and demand for the next two to three years. During this session, RISI and Poyry International will examine the dissolving pulp "path" into the foreseeable future and explore forces likely to control progress as well as setbacks along the way, including recent successes as well as failures of global cotton crops.

More information, including registration, is available online for the Dissolving Pulp Forum and 2011 PEERS, as well at the 2011 International Pulp Bleaching Conference being held at the Oregon Convention Center immediately following PEERS, on October 5-7.

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Market Roundup
Pulp prices could come under further pressure in September, according to Mark Wilde, senior analyst with Deutsche Bank. July pulp data were weaker-than-expected, he notes. Inventories rose by five days of supply to 39 days. August North American NBSK (northern bleached softwood kraft) list price was at $990/metric ton. "We've received reports of U.S. spot NBSK deals in the mid-$700s. In China, we're hearing reports of some pick-up in demand. North American and European producers have not yet announced September prices. But with the latest data, the bias is on the downside. In China, Arauco has announced flat prices for September and Ilim has announced a $40/metric ton increase," Wilde reports.

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Newsprint demand in North America remains very anemic, Wilde reports. According to the NAA, consumption by U.S. dailies fell 16.6% y/y in July and was -15.6% y/y in June. Citing the strong Canadian dollar, NewPage announced plans to close its 190,000 tpy newsprint PM 1 at Port Hawkesbury, Nova Scotia on September 10. With demand continuing to slip, the closure is unlikely to have much impact on newsprint demand and supply. August estimated 30-lb prices in the East were flat at $640/metric ton. Producers have been focusing on exports. Even so, a strong Canadian dollar (big issue for Canadian mills) and rising inputs are squeezing margins, Wilde notes.

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Total printing and writing (P&W) paper shipments decreased 6.8% in July compared with July 2010, according to the AF&PA (Washington, D.C., USA) July 2011 Printing-Writing Paper Report. All four major P&W grades posted decreases compared with last July. U.S. purchases (shipments + imports – exports) of P&W papers decreased 4% in July. Total P&W paper inventory levels increased 6% compared with June 2011.

Some points of interest from the report include:

  • June exports of uncoated free sheet (UFS) increased year-over-year for the fourth consecutive month
  • Purchases of coated free sheet (CFS) decreased for the fourth time this year
  • Coated mechanical (CM) exports increased year-over-year for the first time in 2011
  • Uncoated mechanical (UM) shipments decreased year-over-year for the fourth consecutive month.
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Naylor, LLC
Pulp & Paper
AbitibiBowater, Montyreal, Que., Canada, this week said that it has a capital investment plan that will lead to the restart and upgrade of its currently idled sawmill located in Ignace, Ont. The C$32 million investment includes the addition of an energy system and kilns to dry lumber, and a planer and packaging system to allow for the production of finished lumber ready for market.

Engineering, design and construction activities will occur over the next two years, with a return to production forecast for 2014.The investment is subject to the company reaching an acceptable labor agreement with the United Steelworkers union and finalizing an agreement on municipal matters with the Township of Ignace.

"We are currently planning on a design and construction schedule running through 2012-13, and a return to full production in late 2013/early 2014. The sawmill will also contribute to improving the cost of fiber for our pulp and paper mills in Thunder Bay and Fort Frances," said Yves Laflamme, SVP, Wood Products, Global Supply Chain and Information Technology.

This is the fourth significant announcement by AbitibiBowater in Ontario, resulting in more than C$100 million in investments.

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Chinese papermakers Nanning Jindaxing Pulp Co. (greenfield mill) and Shandong Tralin Paper Co., have placed orders for advanced automation technology with Metso, Finland. Nanning Jindaxing ordered a Metso DNA automation system for its new fiberline and a Metso MAP wet end analyzer and a Metso RM3 retention analyzer for its fine paper machine.

Additionally, Metso has signed an agreement with Nanning Design Institute of Light Industry for the delivery of analyzers and measurements, such as Metso Kappa Q, bleaching sensors, consistency transmitters, and Kemotron sensors, to Nanning Jindaxing Pulp Co. After startup, the greenfield mill will be the biggest pulp and paper producer in the Guangxi area with a capacity of 120,000 metric tpy of newsprint, 200,000 metric tpy of fine paper, and 170,000 metric tpy of pulp.

Another Metso DNA automation system will be supplied to Shandong Tralin Paper Co., in Gaotang City, Shandong Province. The company is one of the main manufacturers of straw pulp, fine paper, LWC, coated board, and unbleached tissue in China. The investment in a new process control system is part of the mill's modernization and environmental protection project.

"China has been and continues to be a significant market area for Metso's automation technology. In addition to new pulp and papermaking lines, we increasingly supply products for second-hand machines," said Ye Zhongde, regional VP, Metso.

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The Dayton Business Journal has listed NewPage, Miamisburg, Ohio, USA, among its top 10 healthiest employers in the Dayton, Ohio, area. The Journal engaged Healthiest Employers, an independent organization dedicated to promoting wellness in business, education, and non-profits, to review the nominations and choose the winners. All nominees were measured using six core areas of workplace wellness:
  • Cultural and leadership commitment
  • Foundational components
  • Strategic Planning
  • Communication and marketing
  • Programming and interventions
  • Reporting and analysis.

NewPage launched its Wellness Initiative in January 2010 with the goal to create a wellness environment for NewPage employees by increasing awareness and engagement in personal wellness through a variety of NewPage activities and programs, including those offered by the company's health care plans. To reach this goal, the NewPage Wellness Committee has planned several program activities aimed at reducing the incidence of the most prevalent conditions experienced by NewPage plan participants. Such activities include preventative doctor visits and testing, biometric screenings, flu shots, health fairs, and, most recently, friendly company-wide weight-loss and fitness competitions. In addition to wellness activities, NewPage also offers several programs that provide wellness coaching and comprehensive management for employees with health conditions such as diabetes and asthma.

"This award recognizes the commitment we have to the health and wellness of our employees," noted Glenn Grill, VP, Human Resources. "We appreciate being acknowledged and plan to continue initiatives designed to increase our employees' awareness and engagement in personal wellness."

NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin, and Nova Scotia, Canada, with a total annual production capacity of approximately 4.1 million tpy, including 2.9 million tpy of coated paper, 1.0 million tpy of uncoated paper, and 200,000 tpy of specialty paper.

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Double A Public Co., (also known as Advance Agro Public Co.), Thailand, has ordered a winder from PMT Italia (Italy) for the new PM 3 (premium copy papers) at its subsidiary company, Advance Paper Mill 3, located in the Thatoom, Prachinburi province of Thailand. Startup is scheduled for the second quarter 2012.

The new winder completes the scope of supply by PMT Italia for the full line. PMT will build the complete paper machine from headbox to the winder. The 5,280 m-wide (at the reel) PM 3 will have a capacity of 290.000 metric tpy. The new machine, designed to run mainly with short fibers, will have an operating speed of 1.300 m/min.

In addition to the complete paper machine, PMT Italia will supply all of the major auxiliary systems.

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NewPage Corp., Miamisburg, Ohio, USA, this week released its 2010 Sustainable Development Report titled Big + Little. George F. Martin, president and CEO, noted that "as a pulp and paper producer, we strive to make sustainable practices -- big and little -- a part of everything we do at NewPage from responsibly managing and sourcing natural resources; to operating cost-effectively utilizing best practices; to producing dependable products that are transported efficiently; to collaborating with our customers to improve and grow our businesses; to giving back to the communities in which we operate.

"The report title, Big + Little, emphasizes that the path to sustainability at NewPage is not just one of big, global programs or small, individual actions day in and day out, but one that encompasses both," Martin added.

The 2010 report highlights the following achievements for each of these key areas:

  • 49% of the fiber NewPage used came from certified and recycled sources and the company continued to support several initiatives to increase the amount of certified forest acreage in its wood procurement regions. Additionally, NewPage continued to work to promote responsible management of forests globally through initiatives such as Project POTICO (Palm Oil, Timber, Carbon Offsets) with the World Resources Institute (WRI) to combat illegal logging and preserve virgin rainforests in Indonesia by diverting new palm oil plantations to degraded lands.
  • 51% of the energy used in 2010 was produced from biomass fuels, a renewable energy source primarily derived from the company's manufacturing byproducts. NewPage is actively researching and supporting new ways to generate renewable energy through a number of partnership projects such as a biorefinery in Wisconsin Rapids, Wis., a wind farm in Mineral County, West Virginia, and a biomass cogeneration facility in Port Hawkesbury, Nova Scotia.
  • Approximately 70% of ingredients used to manufacture NewPage products come from renewable resources such as wood fiber, recycled fiber, and starch. In 2010, products containing recycled fiber accounted for 16% of total sales, and chain-of-custody certified fiber accounted for 26% of total sales.
  • NewPage continued to invest in its employees through safety, training, and health and wellness programs. Capital of $68 million was invested in 2010 to make improvements in areas such as safety, equipment reliability, and product quality.

Nearly $1 million was contributed to charitable organizations and nonprofit strategic partnerships in 2010. In addition, employees donated countless hours to volunteer programs in their own communities.

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SCA Tissue North America, Philadelphia, Pa., USA, this past week announced its Tork "Better Business" podcast series. The first episodes in the series discuss the benefits of sustainability and hygiene and create first-hand understanding for listeners on why these topics are vital to any business. Future episodes are slated to examine other customer-focused subjects pertaining to restaurant, higher education, and healthcare facility management.

"These Tork podcasts are part of our ongoing effort to share unique industry insights through a variety of media channels," said Cindy Stilp, SCA Tissue North America director of marketing and communications. "It's a convenient way to deliver educational content to our customers to help enhance their bottom lines."

The Tork "Better Business" series features members of the Tork Green Hygiene Council (TGHC), which was formed to help SCA enhance global awareness of proper sustainability and hygiene. These experts include:

  • Dr. Allison Aiello, associate professor of epidemiology at the University of Michigan School of Public Health
  • Donna Duberg, assistant professor of clinical laboratory science at Saint Louis University
  • Josh Radoff, co-founder and Principal of YRG sustainability consultants.

The first podcast - Clean Business, Happier Customers - is led by Aiello and Duberg and enforces how prioritizing hygienic practices can lead to happier customers and a thriving business. The experts also provide valuable insight into consumer and professional perspectives on hygiene and infection control.

The second episode - Driving Success with a Sustainable Business Model - features commentary from TGHC member Josh Radoff and SCA sustainability marketing manager Mike Kapalko on best practices to consider when incorporating sustainability into a business and the benefits it has on profitability.

Both podcasts explore research and insights from business owners and their patrons, published in the recently released 2011 Tork Report: Healthy People, Healthy Planet. The podcasts can be downloaded free of charge.

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Södra, Sweden, this week reported that it is creating a new unit for the group functions of purchasing, productivity, and logistics. A new Södra-wide logistics function, Södra Logistics, is being formed with a view to guaranteeing added value from logistics across the entire Södra group.

Oskar Karlsson will take over as the new director of purchasing, effective September 15, and recruitment of a head of logistics is set to commence immediately. There will be no changes in productivity. The heads of the three areas (Purchasing, Logistics, and Productivity) will be reporting to Beatrice Kämpe Nikolausson, who will be the director of the new collective unit.

More in-depth charting of existing logistics operations will take place over the autumn, before the future organizational structure for Södra Logistics is decided. Staff will be allocated to the new function in the spring of 2012. Operational responsibility for call-offs, receiving, and loading will remain with the relevant business areas.

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Containerboard/Packaging
Prospects for an autumn containerboard hike attempt have faded, according to Mark Wilde, senior analyst with Deutsche Bank. Key issues, he explains, are economic jitters and overhang from the IP/Temple-Inland bid. While pressure on box prices appears to have eased, the market remains highly competitive, he says.

The kraft paper market remains tight, Wilde continues, adding that producers implemented the full $60/ton price hike on extensible sack kraft. August estimated prices rose to $1,150 - $1,170/ton, +10.5% y/y. Key drivers are strong export demand and limited supply, Wilde says.

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Smart Papers, Hamilton, Ohio, USA, reports that its Kromekote Label 60-lb. IN-fusion premium lightweight cast-coated label and packaging papers are now RIT certified to run on HP Indigo WS4050, WS4500, and WS6000 label and packaging presses. Kromekote cast gloss is the first lightweight cast-coated paper to be performance certified by RIT for use on HP Indigo narrow web presses. The newly certified products are Kromekote Label for cut and stack glue-applied labels as well as Kromekote Label Converting for pressure-sensitive label applications.

Smart Papers produces digital printing papers guaranteed to run on all major digital print engines including those by HP, Xerox, Kodak, Canon, Epson, Oce, and Ricoh. Mohawk Fine Papers is the marketer of Smart Papers products including Kromekote, Knightkote Matte, and Smart Digital premium coated papers through the North American paper merchant channel.

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The Newark Group, Cranford, N.J., USA, will close its Yorktowne Paperboard mill, located in York, PA, and its Newark Graphicboard-BCI plant, located in Fitchburg, Mass. The company will also cease operations on one of the two paperboard machines at its Newark America mill, also located in Fitchburg.

The remaining paperboard machine at Newark America is being reconfigured to accommodate both graphic board production and other grades of uncoated recycled board. Each facility will continue to operate until business is transitioned to other Newark locations.

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Published Pricing
M-real Office Papers, Finland, reports that it will implement a 6% price increase across European markets. This price rise will take effect September 15 and will impact all uncoated fine papers and recycled products.

The company says the price increase is needed due to cost increases of key raw materials such as pulp, energy, starch, and other chemicals.

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Energy
U.S. Secretary of Agriculture Tom Vilsack, U.S. Secretary of Energy Steven Chu, and U.S. Secretary of the Navy Ray Mabus this week announced the next step in the creation of a public-private partnership to develop drop-in advanced biofuels. The secretaries issued a Request for Information (RFI) laying out the Administration's goals, assumptions, and tools and requesting from industry specific ideas for how to leverage private capital markets to establish a commercially viable drop-in biofuels industry. Information gathered through this process will help accelerate the development and use of biofuels, reduce the nation's demand for foreign oil, and strengthen rural America. The RFI is viewable online.

The initiative responds to a directive from President Obama issued in March as part of his Blueprint for a Secure Energy Future, the Administration's framework for reducing dependence on foreign oil. Drop-in biofuels serve as direct replacements or supplements to existing gasoline, diesel and jet fuels, without any changes to existing fuel distribution networks or engines.

"Energy independence is critical to the military and critical to national security. That is why the Department of Navy is partnered in the effort to create a biofuels market," said Secretary Mabus. "Our reliance on foreign oil means that the most volatile regions in the world impact whether our aircraft fly and our ships sail. Home-grown biofuels will create a more stable market for fuel and greater security for the Navy and the nation."

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People
Georgia-Pacific LLC, Atlanta, Ga., USA, this past week announced that Bill Sleeper, president – Georgia-Pacific Professional Washroom and Wiper Solutions, will retire from the company in January after more than 40 years of service. Effective immediately, Scott Light, currently president – Communications Papers, will assume leadership for the Washroom and Wiper business, and has been promoted to president – Georgia-Pacific Professional Washroom and Wiper Solutions and Communication Papers. He will continue to report to Kathy Walters, EVP – Global Consumer Products. Sleeper and Light will work closely together over the next several months prior to Sleeper's retirement.

Sleeper joined the company in 1969 and has held roles in nearly every aspect of managing the business, and has experience in paperboard and flexible packaging, communication papers, and consumer products. He worked in pricing, strategic planning, operations, marketing, product development, and business management. He was promoted to his most recent position as president in 2007.

Light joined G-P in 1999 as a business analyst. He has held a number of key leadership positions in the paper business, including director of finance, VP – sales, marketing and business development, and VP and GM. He was promoted to president of communication papers in 2009. Prior to joining G-P, he worked for Price Waterhouse LLP, Specialty Brands, and Frito-Lay.

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AkzoNobel, the Netherlands, has named Jonathon Atack, a British national, corporate director of investor relations, effective October 1. Atack was until recently CFO at ING Investment Management in the Netherlands. He has held several roles within ING since 2004, including positions in investor relations as well as finance and risk management. Prior to ING, he worked in investor relations at easyJet, Royal Bank of Scotland, and Six Continents.

"We are delighted to welcome Jonathan to AkzoNobel. His extensive experience at a variety of multinationals will bring valuable expertise to our team and further improve the professionalism of our investor relations," said Keith Nichols, AkzoNobel's Chief Financial Officer.

Atack holds a degree in Engineering Science from the University of Oxford and an MBA from London Guildhall University.

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TAPPI News

No matter where you work in the paper industry, you are likely to have been asked about sustainability issues and how they relate to your area of expertise. If not, you are probably still aware of the importance of sustainability. Sustainability covers a wide range of topics, many with significant economic impacts. Are you aware of your customer's concerns around sustainability? Do you have all of the information that you need around these issues?

In an effort to provide TAPPI members and the broader community with pertinent and timely information about sustainability issues, TAPPI invites you to complete this short survey (< 20 questions).

This survey asks you to rank the importance of several sustainability topics – from forest certification, LCAs, global reporting, and the best use of recycled fiber. This survey was created by the Technical Program Committee for TAPPI's 2012 Sustainability Forum, taking place during PaperCon 2012. Committee members Craig Liska (Verso Paper), Laura Thompson (Sappi Fine Paper North America) and Lela Gerald (Buckman International), all experts in sustainability, want to develop topics that bring you the information on sustainability that you and your customers want. Results from this survey will also be used to guide the development of webinars and other information sharing activities on sustainability topics.

Pass this along! Ask your colleagues, your customers, and your suppliers to complete the survey – sustainability impacts the entire supply chain.

Results from this survey will be shared with TAPPI members. If you aren't a member, join so that you can see what our industry wants to know about sustainability. Learn more about joining TAPPI.

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TAPPI will be performing its fiscal year end inventory counting starting August 30th. As a result, TAPPI will not be processing TAPPI PRESS orders from August 30th through September 5th. Orders received during this time will be shipped in the order they have been received during the week of September 5th. All payment processing will resume the week of September 5th.

We apologize in advance for any inconvenience and thank you for your patience. This process allows us to better serve our members.
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Save thousands with the TAPPI PEERS Conference Mill Discount Program

TAPPI is offering a special discount for pulp and paper mills and their corporate offices to attend the 2011 PEERS Conference - allowing an unlimited number from your mill or office to attend for one day, one hour, or just drop in to see the exhibit area for one flat fee.

Why is attending important? With the role and scope of mill-based engineering changing and spending for infrastructure modernization and expansion decreasing, today's mills are focused on maintenance to extend the operational life and safety of existing systems.

Attend TAPPI PEERS and you and your team can learn, discover and explore mill-proven routes to higher efficiency in the Practical Mill Engineering sessions, attend training workshops, network and share solutions, and see the latest products and services available to the marketplace. Program highlights include: Keynote Speaker Miles P. Drake from Weyerhaeuser; Dissolving Pulp Forum; Pumped Systems Assessment Workshop; Sustainability Sessions and more. Learn more about the TAPPI PEERS Conference.

To learn more about the Mill Discount Program, contact Craig McKinney cmckinney@tappi.org at +1.770.446.7294.

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Having the chance to learn from a true expert and discuss best practices in mill and plant safety on a casual Wednesday afternoon doesn't happen too often, unless you're a TAPPI Young Professional member. This past Wednesday, August 17th , the TAPPI Young Professionals (YP) Committee held its usual monthly call only this time with an extra bonus. The committee was joined by Chris Redfearn, past president of the Pulp and Paper Safety Association (PPSA) and current Director of Health & Safety Technical Services with Weyerhaeuser Company, who helped discuss Best Practices in Safety, a hot topic voted on previously by the YP Committee.

To start the discussion, each member took turns describing what they do and what role safety plays in their work environment. A couple of issues shared by the majority were improving safety culture and sustaining safe work practices. Other discussion topics included:

  • Tips for YP's entering the work environment to build a good safety foundation
  • Safety investigations and audits
  • Demonstrating safety leadership in positive and effective ways
  • Tips to help mills and plants become accident free
  • Transitioning from compliance based safety management to a caring approach.

All together the call was very informative and beneficial to YP Committee members, who are looking forward to next month's call. Ideas for hot topics are gladly welcome as are newcomers! To join our next call (Wednesday, September 14th 3:00pm EST), please contact Libby Settle (lsettle@tappi.org). The YP Committee has many exciting projects underway such as YP networking events, putting together YP sessions to be presented at TAPPI conferences, forming a mentoring group, and implementing more of these great YP hot topic experiences! Find out more about the TAPPI Young Professionals and the Pulp and Paper Safety Association.

 

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Ohio Valley TAPPI is holding its golf outing this year the week after labor day in Springboro, Ohio. Springboro is located between Dayton and Cincinnati. Details are:

Location: Heatherwoode Golf Club, 88 Heatherwoode Boulevard, Springboro, OH, 45066, tel:
937.748.3222.

Date: Thursday, September 8th, 2011 1:30 p.m.

Details: Shotgun Start Dinner and prized afterward; Cost per foursome is $275.00;
Suppliers encouraged to bring raffle and door prizes.

For outing registration contact:

Judy Mann
Vail Rubber Works 
Middletown Service Div.
513-705-2060
 judymann@vailrubber.com

or

Sam Flannery,
Williams-Gray Co
513 702-4480 sam@williams-gray.com

Make checks payable to: Miami Valley Paper Industry and Suppliers (MVPs)

Send to: Judy Mann, P.O. Box 44-919, Middletown, OH, 45042 or Sam Flannery, 137 Apgar Dr., Loveland, OH, 45140

 

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CorrExpo 2011, September 26-27, 2011 in Fort Worth, Texas USA, is your chance to gain the technical knowledge you need and see all your suppliers in one place.

The final registration discount expired on August 29. However, attendees can make their reservation at the Worthington Renaissance until September 2 to receive the special conference rate.

Registrations for the Corrugated Classic Golf Outing are due September 15. Hole sponsorships are available.

Learn more about the event by viewing the conference brochure or watch our video on YouTube.

 

 

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Papers are now being invited for presentation at the 66th APPITA Annual Conference and Exhibition. The event, which showcases the latest innovations, technologies and techniques in pulp and paper manufacturing and converting processes is to be held on April 15-18, 2012 in Melbourne, Australia.

The 2012 event themed "PEOPLE, PRODUCTIVITY, PROFITS" will explore new opportunities and techniques to drive Performance, Productivity and Profits in a new energy economy.

The conference will feature:

  • Two Technical Streams on Resources, Pulp, Paper, Packaging & Printing
  • Clean Energy Summit
  • People, Productivity, Profits Summit
  • Safety Forum
  • Mill Managers Forum
  • Procurement Forum
  • Print/Packaging Seminar
  • Industry Innovations

Please click here for further details.

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Learn the value of implementing a pumped system assessment program at paper mills and other industrial plants at the Pumped System Assessment Workshop  to be held during the TAPPI PEERS Conference, October 2-5, 2011 in Portland.

Attend this one-day workshop and you'll get a thorough introduction to the 2009 Energy Assessment for Pumping Systems ASME EA-2-2009 standard. Attendees will learn what is necessary to create an assessment team and how to gather the design data required along with the operating data needed to perform the assessment. Multiple examples will be presented to demonstrate the various steps involved with implementing and performing pumped system assessments within a typical paper mill.

This workshop is free for full conference or single day attendees of the TAPPI PEERS Conference. Learn more.

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This year's Papiertechnische Stiftung (PTS) Germany Coating Symposium is the 25th annivesary of the event. The BMW-Welt as a particularly attractive venue and a new concept will make the event, to be held September 14-17, 2011 even more appealing to participants and exhibitors.

The first two conference days (September 14-15) are dedicated to recent results from research and technology and their implementation.

"Innovations in coating technology will take centre stage in these sessions – from raw materials to printing. Renowned experts from science and industry will present interesting approaches to the design of new products, efficient use of resources and improvements in manufacturing processes and product quality," explains Dr.-Ing. Reinhard Sangl, event director.

Lectures on the first conference day will be presented at the Holiday Inn hotel in Munich. After the lectures, attendees will be transferred to the BMW Welt for the traditional "Symposium Party" in the exhibition area.

The third day includes a variety of presentations on markets and strategy. The day concludes with ceremonies marking the 60th anniversary of PTS. The keynote speaker will be Professor Hans-Juergen Papier, former president of the German Federal Constitutional Court.

On Saturday, September 17,  delegates will be able to witness how innovations are pushed forward at the VESTRA pilot coater of PTS. 

The revised conference format also includes new ticket offers: While fees for the complete event have remained unchanged at 1,410 €, the all-inclusive ticket offers a special plus – it is now transferable. Employees belonging to the same company location can take turns attending at the various conference days. The ticket for the first two days focusing on research, technology and operations costs 1,180 €. Anyone wishing to take part in the sessions on strategic issues and the ceremonial act on day three only can book this day separately for 790 €.

Please visit the Symposium homepage 

 

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Xerium Technologies, Inc.
Panther Systems, Inc
Sweed Machinery, Inc







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