Over the Wire
TAPPI
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Packaging Corporation of America (PCA), Lake Forest, Ill., USA, will acquire all of the outstanding common shares of Boise, Boise, Idaho, for $12.55 per share in cash, for an aggregate transaction value of $1.995 billion, including $714 million of outstanding indebtedness by Boise. The transaction is expected to close in the fourth quarter.
The combined companies generated $5.5 billion in sales and $879 million in EBITDA (excluding special items) in the past 12 months ended June 30. The combined packaging business generated 75% of sales and 83% of EBITDA over the period, with the remainder generated by Boise's paper business. PCA's containerboard capacity will increase to 3.7 million tpy from its current level of 2.6 million tpy (a 42% increase), including the announced expansion of containerboard machine number 2 (D2) at Boise's DeRidder, La., mill. PCA's corrugated products volume will increase by about 30% as a result of the acquisition, and PCA's market presence will expand into the Pacific Northwest. Synergies are estimated to generate pre-tax benefits of approximately $105 million and are expected to be fully realized within three years of closing. The synergies are projected to come from mill grade optimization, sales mix and cost reductions, lower transportation costs, corrugated products optimization, and SG&A cost reductions. The purchase price represents a multiple of 6.7 times adjusted LTM EBITDA of $297 million (excluding special items), and including the $105 million in benefits from synergies, the purchase price represents a multiple of 5.0 times LTM EBITDA. The acquisition is expected to be accretive to earnings immediately. PCA Executive Chairman Paul Stecko said that "the acquisition is an excellent fit, both geographically and strategically, with unique and substantial synergies. It provides the containerboard that PCA needs to support our strong corrugated products growth. The DeRidder containerboard mill is low cost, located in a very good wood basket and, after the D2 machine conversion, provides almost one million tons of primarily lightweight containerboard. The combined company is expected to generate strong financial results and strong cash flow which will be used to pay down debt as well as to continue to return value to our shareholders." PCA CEO Mark Kowlzan added that "this acquisition allows us to apply our operating and sales expertise across a much larger system and provides significant growth potential. We look forward to working with the employees of Boise as we integrate our businesses. I am confident, that together, we will achieve significant operating benefits." Boise Board Chair Carl Albert said that "our Board and management team have thoroughly evaluated a broad range of strategic options for Boise, and we believe this transaction is the best way to maximize value for our shareholders." Boise CEO Alexander Toeldte said that "PCA's desire to acquire Boise is a testament to the performance delivered and dedication shown by our employees in our five years as a public company, and the value we have created in a very challenging economic environment. We have been committed to serving our customers with distinction and this transaction will enhance opportunities for even stronger customer service." The boards of directors of both Boise and PCA have unanimously approved the agreement. The tender offer is required to be commenced within 10 calendar days and to remain open for at least 20 business days after launch. Any shares not tendered in the offer will be acquired in a second step merger at the same cash price as in the tender offer. PCA is the fourth largest producer of containerboard and corrugated packaging products in the U.S., with sales of $2.8 billion in 2012. PCA operates four paper mills and 71 corrugated product plants in 26 states across the country. Boise's range of packaging products includes linerboard and corrugating medium, corrugated containers, and sheets, and protective packaging products. Boise's paper products include imaging papers for the office and home, printing and converting papers, and papers used in packaging, such as label and release papers. ##SHARELINKS##
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SCA, Stockholm, Sweden, will invest about SEK 150 million in local production of hygiene products in southwest India. Production at SCA's own plant is planned to commence in 2015.
"This investment creates a solid platform for us to leverage the favorable growth opportunities that exist in the hygiene products area in India. The investment is in line with our strategy of strengthening SCA's presence in emerging markets," says Jan Johansson, president and CEO of SCA. "India's large population and the low penetration of hygiene products provide the potential for future growth. The aim is to introduce SCA's hygiene products in the Indian market already in the latter part of 2013." The brands that SCA intends to launch in the Indian market include TENA, for incontinence products, and Tork, for away-from-home (AFH) tissue. The Libero brand for baby diapers and baby care products and Tempo for consumer tissue will also be introduced. SCA develops and produces sustainable personal care, tissue, and forest products. The Group has about 36,000 employees and sales in 2012 amounted to SEK 85 billion (EUR 9.8 billion). ##SHARELINKS##
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Domtar, Montreal, Que., Canada, will be joining businesses and individuals around the globe to participate in the Rainforest Alliance's third annual Follow the Frog Week that kicked off this past week, September 16, and runs through September 22.
Follow the Frog Week is a campaign that encourages shoppers to help create a healthier planet by choosing products that feature the Rainforest Alliance Certified™ green frog seal. This trustmark, found on coffee, tea, chocolate, fruit, furniture, and paper, is recognized by consumers globally as a symbol of sustainability. Products featuring the seal come from farms and forests that meet a rigorous set of criteria that protect wildlife, soils, and waterways and the well-being of workers, families, and communities. "We strive to be the preferred supplier of environmentally responsible paper to our customers, while leaving the smallest environmental footprint and helping them reduce theirs," notes Paige Goff, VP of sustainability and business communications. "This is why it's a natural fit for us to participate in this campaign to promote Rainforest Alliance Certified products." Domtar has worked together with the Rainforest Alliance for many years on responsible paper production and fiber sourcing. In 2005, Domtar and the Rainforest Alliance signed a collaborative agreement when the EarthChoice® product line was launched, later renewing the agreement in 2009, and again in 2012. More information on Follow the Frog Week is available online. ##SHARELINKS##
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The National Forest Foundation (NFF), Missoula, Mont., USA, this week announced results of a new nationwide survey of voters revealing strong personal connections many Americans have with the National Forests and the benefits these lands provide. These connections are so strong that four in five voters polled said despite federal budget problems, funding to safeguard National Forests should not be cut. Even more impressive, seven in ten Americans said they would support a small increase in taxes to provide additional funding to restore damaged forest land and conserve additional lands.
Key findings from the bipartisan poll, conducted in partnership with research firms Public Opinion Strategies and Fairbank, Maslin, Maullin, Metz & Associates, include:
"The NFF has long recognized Americans' personal connections to their National Forests through our work bringing people together to restore and enhance these public lands. This survey not only reveals these connections, but also shows there is strong support for funding of National Forest land and water," said Bill Possiel, president of the National Forest Foundation. "More than 160 million people visited a National Forest last year, generating $13 billion for the U.S. economy and helping sustain 223,000 jobs in local communities. This survey illustrates that respondents believe our National Forests have an impact on their overall well-being, and they appreciate the environmental benefits these forests provide." This expression of voter support for the National Forests comes at a time when funds are being diverted from forest restoration, wildfire prevention, and other categories in the U.S. Forest Service budget to bridge the gap in funding needed to fight wildfires. In fact, this year the Forest Service has already allocated $1.5 billion to fire-related activities, $600 million more than anticipated. Other findings of the survey include:
The NFF national poll surveyed 800 registered voters nationally in a statistically valid telephone survey. Respondents were contacted on both landline and cell phones. The survey was conducted from July 20-24, 2013, and yields a margin of error of ±3.46% overall. More information about the National Forest Foundation, including how to download an infographic about the survey, is available online. ##SHARELINKS##
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The Forest Products Association of Canada (FPAC), Ottawa, Ont., Canada, is opening nominations for its annual Skills Award for Aboriginal Youth, as part of its effort to attract more Aboriginal workers to the forest sector. The award will honor a First Nations, Metis, or Inuit individual with strong academic standing who is committed to his or her field of study and to a career in the forest sector. The $2,500 award is targeted at youth from 18 to 25 who are now enrolled in an apprenticeship program, in college or in university.
"We recognize the special historic bond between Aboriginal communities and the forest products industry," says David Lindsay, president and CEO of FPAC. "It is vitally important for the forest sector to reach out to our neighbors and long-time partners in rural forest communities, and that includes Aboriginal youth." Under Vision2020, FPAC has set the ambitious "people" goal of refreshing the workforce with an additional 60,000 workers by the end of the decade. This includes a desire to hire more Aboriginals, as well as more women and new Canadians. The other Vision2020 goals are to increase economy activity by $20 billion through new products and markets and to further enhance the sector's environmental performance by another 35%. This is the second year that FPAC will hand out this award. The first Aboriginal Skills award went to Baillie Redfern, an M.Sc graduate student studying Genome Science and Technology at the University of British Columbia. Redfern, a member of the Painted Feather Woodland Metis Tribe in Ontario, is studying how to use bio-ingredients from wood fiber to create bio-products such as pharmaceuticals and cosmetics. Nominations for the annual Skills Award for Aboriginal Youth will be open until November 30, 2013. Information on how to apply is available online. About 17,000 Aboriginal people now work in the forest products industry, making the sector the largest employer of Aboriginal workers. ##SHARELINKS##
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TAPPI, Atlanta, Ga., USA, will organize another tissue program to be held at its PaperCon 2014 Conference, scheduled for April 27-30 in Nashville, Tenn. The program will focus on technical advances in tissue making, converting, and on tissue education.
"We received fantastic feedback from our first Tissue360° Forum in Atlanta," says Larry Montague, president and CEO of TAPPI, "so we wanted to provide more of what tissue makers need. Several of our outstanding members have stepped up to organize another program this year." The tissue market is growing globally, with private label growing faster than national brands. This is especially true in North America, where more than half of the new capacity has been structured sheet technology for private label customers. In Europe, dramatic new converting technologies have developed to improve tissue quality and performance. These trends are creating an increasing need for credible technical information and training. TAPPI responded by organizing the first Tissue360° Forum in April, 2013. The forum attracted a large crowd to its three-day program of peer-reviewed non-commercial technical papers. The 2014 Tissue360° Forum will feature more of the same, with an emphasis on converting technologies and TAPPI courses for those who want to grow their knowledge of this dynamic segment. The editorial team from Tissue360° will assist TAPPI tissue experts in the development of the program content. Tissue360° magazine is TAPPI's semi-annual print and online publication for the tissue and converting industry. More information about Tissue360° is available online. PaperCon is TAPPI's annual pulp and papermaking conference that attracts nearly 1,800 executives and technical professionals from around the world. It is the largest technical program in the world and the largest industry trade fair in North America. More information about PaperCon also is available online. ##SHARELINKS##
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August prices for North American NBSK (northern bleached softwood kraft) averaged $945 per metric ton, which is $5 per ton less than the July average price, according to Mark Wilde, senior analyst at Deutsche Bank. Prices ranged between $600 and $1,100 per metric ton. ##SHARELINKS##
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As reported by Mark Wilde of Deutsche Bank, the price for U.S. lightweight coated (LWC) grades (No. 5 – 40 lb.) averaged $875 per ton in August, which was flat compared with July. LWC prices ranged from $680 to $1,240 per ton.
Coated free sheet (No. 3 rolls - 60 lb.) in the U.S. averaged $955 per ton in August, up $5 per ton compared with July. Prices ranged from $720 to $1,100 per ton. August prices for uncoated free sheet (20 lb – repro bond) ranged from $650 to $1,200 per ton, averaging $1,015 per ton, which was flat compared with July, according to Wilde. . U.S. August newsprint prices averaged $605 per ton, generally flat compared with July. Newsprint prices ranged between $415 and $800 per ton, Wilde reported. ##SHARELINKS##
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 Hansol Paper Co., a South Korean paper producer, this past week reported that its wholly-owned investment unit Hansol Denmark ApS has bought a 97.5% stake in a Danish thermal paper retailer for 41.9 billion won ($38.7 million) "to obtain new growth engines." The stake purchase in the Danish company, Schades Holdings A/S, is aimed at securing its sales channel in the world's biggest European thermal paper market, which takes up 32% of the whole global demand, according to a report by the Yonhap News Agency.
Hansol Paper also said it had already been operating the production line of the highly profitable thermal paper. The thermal paper is a special fine paper coated with a chemical that changes color when exposed to heat. It is used in the thermal printers of adding machines, cash registers, and credit card terminals. Schades Holdings, which was established in 1874, has its 12 subsidiaries in seven European countries including France, Germany, and Britain. It is a leading company on the European market for documentary paper rolls and self-adhesive labels for specialty applications. With the investment in Schades, Hansol is getting a 25% market share in Europe. "For a number of years, we have aimed to consolidate our position in Europe like we have already done in North America and Asia. With the acquisition of Schades, we can truly start to expand in the region," said Sanghun Lee, president and CEO of Hansol Paper. Schades is producing plain and printed paper rolls, self-adhesive labels, and food wrapping products for food retail chains, non-food retailers, office stationery, as well as financial institutions. The company is running production sites in Germany, Denmark, France, and the U.K. and has sales offices in Belgium, Sweden, and Finland. In 2012, Schades had sales of DKK 634 million (EUR 85 million) and had approximately 200 employees. ##SHARELINKS##
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Stora Enso (Helsinki, Finland) and Arauco, Santiago, Chile, report that the startup of their joint-venture Montes del Plata pulp mill project in Uruguay is being delayed. Startup of the mill was expected to begin at the end of the third quarter of 2013, but the main technology contractors have informed Montes del Plata that they will not be able to complete the work according to the agreed timetable. The mill site is 92% complete and the commissioning of certain areas has already begun.
Montes del Plata is supporting the contractors and all local stakeholders to expedite the startup process. The operational EBIT impact of the delay for Stora Enso during 2013 is estimated to be EUR 7 million. A further update on the progress and timetable will be issued when Stora Enso's third quarter results are announced on October 22. ##SHARELINKS##
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Voith Paper, Heidenheim, Germany, this week reported that it is preparing for a further worsening of the global paper market with a package of measures. The aim of the planned measures is to ensure the profitability and lasting competitiveness of Voith Paper under worsening market conditions. For this purpose, competences will be pooled together at individual locations and capacities adapted to the lowered market volume. Associated with that is a planned cut-back of another approximately 560 jobs at various locations in Germany and Austria.
For some time now, Voith says it has seen its business with new machines and large rebuilds at locations in Germany and Austria severely stressed by a structural reduction in demand for graphic paper machines. This structural change will also continue in the coming years. In addition, there is a weakening economic situation in the global paper market that is more severe than expected. In particular, the Chinese market is growing noticeably more slowly than predicted by market analysts in the past year. The Chinese paper market continues to grow, but substantially more slowly. Thus expectations in comparison with the previous year have once again been noticeably clouded. As a result of paper consumption that is less than expected, the willingness to invest in new paper machines on the part of Voith Paper's customers is also cooling off further. This concerns all paper grades except sanitary paper (tissue). In Europe, Voith stresses that it is not counting on a market recovery in the coming years. Rather, the business with new machines will remain at a low level. In China, predictions are for growth to increase again in the next two years. But this demand is mostly oriented to compact, locally produced machines of medium size – a trend that is further intensifying and to which Voith Paper has already reacted with specific restructurings. By contrast, the need for paper machines of the larger size segment, which Voith previously produced mainly at its European locations, remains "very slight." "With the worsening of the market outlook and the intensifying of the structural changes on the demand side, the foundations for our future planning in Germany and Austria have also changed once again. The slackened demand in Europe can no longer be balanced by large orders from China. Thus there is no way around an adjustment of capacities at our main locations in Germany and Austria," says Dr. Hans-Peter Sollinger, CEO at Voith Paper. Against the background of this development, a jobs cut-back in Germany and Austria is unavoidable. The Voith Paper locations in Krefeld (around 210 jobs), Ravensburg (around 50 jobs), Neuwied (around 10 jobs) and in St. Poelten, Austria (around 290 jobs) are affected by this. In addition, as already announced in August, 240 jobs are being eliminated at Voith Paper in Heidenheim that are part of the Group-wide package of measures for the Heidenheim location. Despite the adjustments in capacity, the existing competence centers will remain at the respective locations. Krefeld will continue to be the competence center for calenders and winders, St. Poelten for rolls, Ravensburg for stock preparation systems, environmental technologies, and specialty paper machines; and Neuwied remains the center for quality control systems. The Management Board of Voith Paper this week informed the works council committees and employees at the locations affected. In the next step, Voith will take up discussions with the workers' representatives for implementing the cut-back. Current planning envisages that the measures should be implemented by Sept. 30, 2014. Terminations for operational reasons at individual locations cannot be ruled out at this point, the company notes. "This cut is bitter and painful. However, after careful consideration, it is unavoidable in order to align our capacities in Europe to the changed demand. This is a prerequisite to stay profitable and competitive under the changed market conditions," says Dr. Sollinger. Voith Paper's portfolio remains unchanged despite the bundling of capacities. "We will continue to support our customers in the future with solutions for the entire papermaking process and for all paper grades. The paper industry will also remain an attractive business segment in the future for the Voith Group. In the next years, we will rely even more heavily on the possibilities for growth offered by the already installed paper machines. Above all, we see opportunities in the servicing and rebuilding of machines already in operation," explained Dr. Sollinger. ##SHARELINKS##
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Wausau Paper's mill in Brainerd, Minn., USA, reportedly has a possible buyer, according to several area newspaper reports, but city officials have not yet released the suitor's name. The Brainerd mill, which produced specialty and tape papers, closed this past April, putting some 130 workers out of work.
City administrator Theresa Goble told the Brainerd Dispatch this past week that local officials will soon meet with the potential buyer "to discuss options or alternatives that might be available to facilitate the return of the mill to productive operations." City Councilman Gary Scheeler said in the newspaper article that "we hope it works out with the potential buyer. To put a business in this plant would be extremely good news for the area. It's too early to tell exactly what the outcome will be." The city has placed its own bid on the plant's 2.5 MW hydroelectric dam, which is being sold separately from the facility itself, and both sides are now finalizing the deal. Goble said the purchase price is not public information yet. Wausau Paper closed the non-integrated, single-machine mill after spending $28 million on an additional capacity and upgrade project that was to help the operation turn out more and higher quality masking tape base paper (unsaturated tape-backing paper) as well as food and industrial papers, according to RISI, which added that the upgrade of PM 7 was completed in 2011. After shifting the company's focus to tissue paper earlier this year, Wausau sold its two other specialty and technical paper mills in Wisconsin to Expera Specialty Solutions, and permanently shut its Brokaw, Wis., uncoated free sheet paper mill last year. Wausau Paper had acquired the Brainerd mill for $9.4 million in 2004. ##SHARELINKS##
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 Earlier this week, International Paper Co., Memphis, Tenn., USA, announced a reinvestment in its Rome, Ga. containerboard mill on the Coosa River in Floyd County. The company was not specific about what the investment would be for, or in which process arena, though it indicated that it would expand overall production capacity.
President of the Greater Rome Chamber of Commerce Al Hodge called it a very significant reinvestment and attorney Andy Davis said the investment will be to the tune of $100 - $150 million dollars, according to a report by the Rome News-Tribune. The report follows an announcement by IP a week earlier that it will permanently close its giant uncoated free sheet mill in Courtland, Ala., early next year. The Floyd County development authority passed a resolution this past Tuesday morning approving taxable revenue bonds for the acquisition and installation of additional machinery, equipment, and other items for the proposed expansion of the Coosa mill. The aim is to "modernize operations at the plant," which would occur in three different phases over the next three years, the newspaper report noted. "I am proud that one of our oldest industries is continuing to invest in their operations in our community," said Irwin Bagwell, Floyd County Commission chairman. "International Paper's widely known through our community as an outstanding corporate citizen." IP employs some 70,000 people worldwide and has operations in more than 24 countries. ##SHARELINKS##
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Tetra Pak, Switzerland, this week released the findings of its 5th bi-annual environment survey, highlighting a rising demand for renewable materials and environmental labeling among consumers worldwide. The report also shows that recycling remains a fundamental expectation of both consumers and food industry stakeholders.
This year's survey sees a significant rise in the attitude towards renewable materials among food industry stakeholders, driven by the recent development of new technologies. They rank the use of bio-based materials as one of the most important environmental trends shaping the future of beverage packaging.
The report also identifies a growing consumer demand for more environmental information. To make informed choices, 37% of consumers regularly search for environmental logos on food packaging. Today, 54% of consumers trust environmental labels, compared with 37% in 2011 One in five consumers in the survey recognize the Forest Stewardship Council (FSC) logo, with most able to associate it with sustainable forestry. Sorting and setting aside packaging for recycling remains the number one environmental activity among consumers, as it has been since 2005. Meanwhile, the ability to recycle packaging material is regarded as a top priority among food industry stakeholders when developing a product or a service. "The findings of this year's report reinforce the importance of putting environment at the heart of our strategic agenda," says Dennis Jönsson, Tetra Pak president and CEO. "We have set firm commitments to reduce our environmental footprint across the value chain, to develop sustainable products, and to increase recycling rates; and we are making good progress towards the goals that we have set for ourselves in each of these important areas." The survey has been conducted every two years since 2005. The 2013 Environmental Research polled more than 7,000 consumers and more than 200 food industry stakeholders in a total of 13 countries, including the U.S., Brazil, U.K., France, Germany, Belgium, the Netherlands, South Africa, Turkey, India, Russia, China, and Japan. Tetra Pak uses this survey to gain a "360° understanding" of attitudes about the environment and packaging, helping to secure a solid basis for environmental communication and ultimately to guide its future strategy and product development. For more information, contact Linda Bernier at Tetra Pak. ##SHARELINKS##
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Meanwhile, consumers continue to rate carton the most "environmentally friendly" packaging type, due to the use of paper as a renewable material, and more than 50% of them believe that the use of bio-based plastic will further improve the environmental performance of carton packaging.
 Walki Group's new greenfield packaging materials plant in Wroclaw, Poland, was inaugurated this past week. As the markets for both consumer and industrial packaging is growing in Eastern Europe, Poland is the ideal location for Walki to build a platform for future growth, the company notes. The new plant in Wroclaw has a capacity of about 50,000 metric tpy, and employs 50 people. Initially, the plant will focus on catering to the customer segments Consumer Packaging and Forest Industry.
Walki Group is a producer of technical laminates and protective packaging materials, specializing in the production of fiber based, multilaminate products for markets as diverse as energy saving facings and construction membranes for barrier packaging applications. For the paper industry, Walki produces specialty products such as wrappers for paper industry reels, including reel end discs, and printed wrappers for A4 and A3 cut size and folio reams. The greenfield plant was completed in less than seven months after construction work commenced. The main technology used is extrusion technology. Experiences of the new facility have so far been very positive. Walki has production facilities in Finland, Germany, the Netherlands, Poland, the U.K., Russia, and China. The company's annual net sales amount to EUR 300 million, and it has a workforce of about 900 people. Walki also develops multilaminates for flexible packaging applications as well as for barrier board and lining materials for the solid case and corrugated industry. Specialist barrier coated and laminated materials are used to protect packed products, reduce waste, and improve functionality of the finished pack, for example, by using easy open tear-strip features. ##SHARELINKS##
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Tetra Pak, Switzerland, has inaugurated the world's most advanced liquid dairy plant in automation and integration in Vietnam with Vinamilk. Known as the Vietnam Milk Factory, the new facility, which covers 20 hectares in Binh Duong Province with an investment of $110 million, has an annual capacity of 400 million liters of milk in the first phase, and features the industry's most advanced technologies including:
"The Vietnam Milk Factory is by far the most advanced plant in automation and integration that Tetra Pak has ever built," said Bert Jan Post, managing director of Tetra Pak Vietnam. "And thanks to the Tetra PlantMasterT system, all of the individual machines are working together 'as one' to deliver optimal performance, with factory-wide integration ensuring high levels of efficiency and uncompromising food safety." Madam Mai Kiu Liên, Vinamilk's chair and general director, said that "Vinamilk's mission is to provide world-class quality milk products at an affordable price. This new plant has laid a solid foundation for Vinamilk to achieve its goals to become one of the world's top 50 dairies with more than $3 billion in revenues by 2017." ##SHARELINKS##
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Cerealus, Waterville, Me., USA, reports that it has developed Cerefiber® to create strength for paper and packaging mills by treating fiber with a patent pending starch encapsulation technology. The company notes that the new product has been created to provide mills with increased bond or tensile strength, which can enable material reductions in basis weight, increased stiffness, less pulp refining, or further optimization of less expensive furnish. Cerefiber reportedly can treat every form of pulp fiber, including recycled fiber, chemical pulp, semi-chemical, and groundwood, while maintaining specified strength and paper qualities.
According to Cerealus, mills using Cerefiber can achieve bond and tensile strength of 40% or more. The new starch encapsulation technology directs the starch to attach to the fiber without impacting machine chemistry, charge, or BOD, the company explains. Current mill users of Cerealus strength technologies include various paper products, such as: newsprint, coated free sheet, uncoated free sheet and coated groundwood. Cerefiber is a "leverage" technology that enables a mill to trade increased strength for economic or production benefits. "Cerealus is proud to offer an additional solution for paper and packaging mills. Cerefiber has clear benefits and offers competitive cost advantages to our customers," explains Tony Jabar, CEO of Cerealus. Tom Moore, president of Cerealus, adds that "we challenge any mill to answer the question, what would you do with additional strength?" Cerefiber joins Cerecarb® in the Cerealus portfolio of strength technologies. Cerecarb was introduced in 2011 to enable paper mills to increase filler content and enhance printability. ##SHARELINKS##
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FutureMark Paper Group, Westport, Conn., USA, a producer of "responsibly made" recycled printing papers, has launched Future JetTM, the industry's first high-recycled, coated digital inkjet paper. Compatible with both dye- and pigment-based printers, Future Jet has excellent print quality on the greenest paper available.
"After extensive product development testing and industry collaboration, we're thrilled in more ways than one with Future Jet. Not only did we develop the first coated recycled digital ink jet paper, but we've also created a product that performs beautifully with outstanding print fidelity," said Steve Silver, president and CEO of FutureMark Paper. "Our testing on dye-based printers has revealed that Future Jet paper provides breakthrough print quality, with the added benefits of consuming less ink and no need for an extended media dryer." FutureMark tapped a group of leading paper and coating scientists to assist in the creation of the industry's first coated digital inkjet paper made with more than 90% recycled fiber. Following two years of development and testing, the resulting Future Jet product offers a high quality recycled digital inkjet solution for book publishers, direct mail providers, and commercial printers. Customer tests indicate Future Jet offers high print quality, even on four-color applications where there are demanding facial tones and heavy coverage forms. ##SHARELINKS##
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Kemira, Finland, has announced 5% - 10% price increases for its sodium percarbonate products in the EMEA region. The increase will be effective for all deliveries on or after October 1, or as specific contract terms allow.
Kemira notes that the costs for key raw materials have increased and supply has tightened. While the company continues to take actions to minimize the impact of escalating raw material costs, it is necessary to adjust pricing to compensate for the increased freights, energy impact, and other raw material costs. ##SHARELINKS##
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Sonoco Alcore S.a.r.l., Brussels, Belgium, reports that it will increase the price of coreboard and uncoated recycled board in Europe by EUR 50, effective October 1. Sonoco Alcore S.a.r.l. is wholly owned by Sonoco, U.S., and operates 28 tube and core plants and five paperboard mills in Europe.
"We have absorbed higher energy, freight, and other material prices throughout 2013 and the current market conditions are such that we must finally increase prices of coreboard and uncoated recycled board," said Phil Woolley, director, Sonoco Alcore Paper. ##SHARELINKS##
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Mikko Forsell, M. Sc. (Econ.), M. Sc. (Tech.), has been appointed Metsä Tissue's (Finland) CFO and a member of the Metsä Tissue management team, effective Jan. 1, 2014. He will report to Mika Joukio, CEO, and he will be located in Espoo, Finland.
Forsell joined Metsä Tissue in 2005 and has since held various positions in Finance at the company. He is currently working as VP, Purchasing. Forsell replaces Markus Holm, who has been appointed CFO for Metsä Board Corp., effective Jan. 1, 2014 (see article below). ##SHARELINKS##
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International Paper Co., Memphis, Tenn., USA, has elected Admiral Jay L. Johnson to its board of directors effective October 1. Admiral Johnson retired as chairman and CEO of General Dynamics in December 2012, one of the largest defense contractors in the world. Prior to leading the aerospace and defense company, he was the CEO of Dominion Virginia Power, where he oversaw the electric transmission and distribution services to more than 2.3 million customers in Virginia and North Carolina. Admiral Johnson also served as the chief of naval operations and as a member of the Joint Chiefs of Staff from 1996 until 2000, highlighting his more than 30 years of military service.
"Jay's career in both the military and business, and his outstanding record of leading organizations, bring a unique and valuable perspective to the International Paper Board of Directors," said John Faraci, chairman and CEO. "We are extremely pleased to have him join our board." With the election of Admiral Johnson, the size of the board has been increased to 11 members. ##SHARELINKS##
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Larry Korf, former CEO of valve manufacturer DeZURIK Inc. Sartell, Minn., USA, announced the appointment of Bryan Burns to the position of president and CEO of DeZURIK, effective this past Monday, September 16. "Bryan has earned the leadership responsibility and has my full endorsement along with our owners and the board of directors," Korf said.
As part of a planned DeZURIK leadership transition, Korf will retain a position on the DeZURIK board and assist in the CEO transition period for the balance of 2013. Burns joined DeZURIK in 2010 as VP of Operations and was promoted to COO in January 2012 and president and COO in March 2013. Previously, he was employed by the Brunswick Corp., where he was president of the Crestliner Division. He is a graduate of Pennsylvania State University and earned his MBA from Duke University. ##SHARELINKS##
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Markus Holm, M. Sc. (Econ), has been appointed Metsä Board Corp.'s (Finland) CFO and member of the management team as of Jan. 1, 2014. Holm joins Metsä Board from Metsä Tissue where he has worked as CFO since 2008. Both Metsä Board and Metsä Tissue are part of Metsä Group.
Holm has extensive experience in financial management in the consumer goods industry. Prior to Metsä Tissue, he worked as Finance and ICT director at GlaxoSmithKline plc and in various managerial positions in finance, treasury, purchasing, and investor relations at Huhtamäki Oyj. Metsä Board's current CFO Matti Mörsky will retire on Feb. 28, 2015. Until his retirement, Mörsky will continue working for Metsä Board as senior advisor in project tasks assigned by the CEO. ##SHARELINKS##
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The Sustainable Forestry Initiative (SFI), Washington, D.C.., USA, reports that conservation professional Paul Trianosky has joined SFI as senior director of conservation partnerships. Trianosky brings nearly 30 years of diverse leadership experience in forest conservation, nonprofit management, and forest certification to SFI.
This year, Trianosky was recognized as a "Conservation Hero" by The Nature Conservancy of West Virginia, and he has served as a gubernatorial appointee to the Tennessee Forestry Commission since 2004. He most recently worked at the American Forest Foundation, where he served as director of southern forest conservation. In that role, he developed and implemented strategies to engage family landowners in AFF's programs and services across the southern region. Prior to joining AFF, Trianosky spent 18 years in various positions with The Nature Conservancy. He was a co-founder and first chairman of the Partnership for Southern Forestland Conservation, a partnership to leverage the work of dozens of public, private, and non-profit organizations to achieve conservation of 20 million acres of working forest by 2020. He has also worked as a county forester with the Virginia Department of Forestry and as a natural community ecologist with the West Virginia Natural Heritage Program. In 2010, SFI first invested $400,000 to create the SFI Conservation and Community Partnerships Grant Program to foster partnerships and conservation research that improve forest management in the U.S. and Canada, and responsible procurement globally. In a few short years, by leveraging partner contributions, SFI has achieved a total investment of $4.8 million in conservation partnerships and research, supporting more than 40 grants with 150 partners across North America. ##SHARELINKS##
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TAPPI's Papermaking and Water Removal Committees present an exciting two part webinar on October 7 at 2:00 p.m. EST. Doug Sweet, of Doug Sweet and Associates, will present "Paper Machine Vacuum Systems 101." This free webinar will review some of the typical issues with the vacuum system including instrumentation and vacuum control, seal water systems, and cooling towers, flatboxes and uhle boxes, separators, and extraction pump and vacuum pump reliability. Doug is an engineer with more than 35 years of experience, and his presentations have been one of the highlights of past TAPPI papermaking conferences. Additional information about the webinar and instructor is available at the course website. Following Doug's presentation, a round table discussion with leading papermaking experts will be held. The distinguished panel includes: Gary Nyman, International Paper; John Neun, Albany International; and Dave Burton, Asten Johnson, all with more than 30 years of experience in the papermaking industry. This roundtable will be an open forum for any questions you have on papermaking topics. These experts can offer you sound solutions to any challenges you may be facing. You may register and submit a question for the panel by visiting the Papermakers Roundtable website. The Papermakers and Water Removal committees are very active in planning program content for TAPPI's PaperCon conference being held next year in Nashville Tenn., USA, April 27-30. For more information visit www.papercon.org. ##SHARELINKS##
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The 2014 conference co-chairs invite you to submit an abstract for a presentation at the 2014 TAPPI International Conference on Nanotechnology for Renewable Materials, June 23-26, 2014, at the Fairmont Hotel Vancouver in Vancouver, B.C., Canada. Abstracts addressing the latest advances in characterization, functionalization, modeling, new products, applications, and health and safety issues of renewable and sustainable nanomaterials are sought. For the 2014 conference, abstracts focused on additive manufacturing, 3D printing, and other industrial manufacturing applications are preferred. Abstracts are due November 5, 2013. This year's conference features several opportunities for students to achieve recognition for their work. View the Call for Abstracts to learn more. ##SHARELINKS##
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The TAPPI Microbiology and Microbial Technology committee has announced the next webinar in its series on Microbes in Papermaking. "Microbial Control: Protecting Mineral Slurries and Papermaking Additives from Spoilage" will be held on October 16 at 12:00 p.m. EST. The webinar will be hosted by Sherrill Gammon, Sr. Research Scientist in the Microbiology Group of Kemira Chemicals, and will focus on the challenges presented when protecting additives in storage against the growth of ever changing microorganisms. The preservation of mineral slurries and other additives for pulp and paper processes can be a challenge given the dynamic nature of the microorganisms, characteristics of individual biocides, and the chemistry of the products to be preserved. A review of microbial control in the world of white pigments and additives combining the tools of biocides, microbiology, monitoring, and housekeeping will be discussed to make the job of protecting these additives a little easier. This webinar is offered at no charge. Additional details are available on the course website. The Microbiology and Microbial Technology committee is an active committee and has produced a successful webinar series on this and other important topics. It also conducts presentations at TAPPI's PaperCon Conference being held next year in Nashville, Tenn., USA. April 27-30. For more information visit www.papercon.org. ##SHARELINKS##
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During the Young Professional Panel at the TAPPI PEERS Conference in Green Bay, Wis., USA, yesterday, participants discussed how young professionals and older professionals can better communicate and transfer knowledge. Shown (left to right) during yesterday's panel session are: John Vanderkolk, Paperchine; Sabrina Burkhardt, Econotech; Marshelle Slayton, Sonoco; and Julie Hess, Voith.
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Join us on Thursday, September 26, at 1:00p.m. EDT as Thanh Trung, VP of Technology for FITNIR Analyzers Inc., presents a free webinar on Advanced Online Process Analyzers for Pulp Mill Control. With increasing competition worldwide, pulp and paper manufacturers, particularly those in North America, require greater emphasis on cost reduction and increased efficiency and product quality. Optimization must also focus on minimizing chemical and energy consumption, particularly for those mills that could utilize the excess steam to drive a turbine for electrical generation, allowing for diversification of the revenue stream. To this end, process measurements and control play an important and critical role. In the late-1990s and mid-2000s, Fourier-Transform Near Infrared (FT-NIR) technology was extensively tested and is now a well proven and accepted technology for online analyzer for measurements of true liquor compositions of various pulping process streams. These online FT-NIR process liquor analyzers have shown excellent up-time while requiring minimal maintenance requirements. In this webinar, we will briefly review the technology and give further details on economic impacts achieved through the installation of rugged process online FT-NIR analyzers when coupled with advanced process control strategies. Register Today! ##SHARELINKS##
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CorrExpo 2013 attendees will be able to learn about cutting edge trends in employee relations, retail packaging, and lean manufacturing via three new, concurrent, 60-min. workshops. In addition to paid conference attendees, these workshops are also open to all exhibit visitors at no extra charge.The workshops will be held on Wednesday, Oct. 9, 2013, immediately prior to the exhibit opening that day. CorrExpo will be held October 7-9, 2013 at the JW Marriott in Indianapolis, Ind., USA. "The workshops touch on key areas critical to the successful operation of any box plant or board mill--employee management and relations, retail packaging, and improving manufacturing efficiency," notes Larry N. Montague, TAPPI president and CEO. "They will provide 2013 CorrExpo attendees an invaluable learning opportunity on top of what is already the industry's best technical program and an exhibit featuring the latest in technology." Workshop 1: Racing Toward Employee Engagement - Jill Kopanis, corporate director, Human Resources, Dynamic Dies Inc., will demonstrate why Employee Engagement requires a committed team and ongoing preventative maintenance. Attendees will walk through the important four "tune-ups" and learn about the nine key "pit crew positions" that help to make employee engagement happen. "Any business, particularly manufacturing, will find increased employee engagement valuable," Kopanis says. "For truly engaged companies, the average return on investment is 27% higher. Whether you're in a service industry, packaging, or other manufacturing – if you don't want to see 27% higher profits, you're in the wrong business." Workshop 2: Why Hasn't Lean Worked in the Corrugated Industry? - Baskar Kotte, president and CEO, Quality Systems Enhancement, will discuss why efforts to enact lean manufacturing didn't work as well as anticipated. "Lean Manufacturing has been around for a while, but not many practitioners are getting the results they want," Kotte says. "They're missing things –and the first mistake is that the initiative often ends up being about 80% training, and 20% implementation. We have to flip it. A better ratio is to spend 20% of the time and effort on training, and 80% on implementation." According to Kotte, another mistake plants make is lack of follow-up on results. "If they know what the impact is – through financial analysis, and other tools – plants will be more successful," he says. Workshop 3: Retail Ready Packaging - Drew Gilchrist, owner, Gilchrist Packaging and Principle Associate, CHAINalytics LLC, and Rick Putch, managing director, Dicar Consulting Services Worldwide, developed the presentation. Retail Ready Packaging has gained a foothold in North America as retailers discover benefits including reduced operational costs and improved in-stock rates. "RRP is an initiative that began in Europe, and it's very well penetrated in Western Europe, where they're basically using corrugated or secondary packaging, to help products load onto the store shelves more efficiently," Gilchrist says. "Think of it as Lean Manufacturing principles applied to retail stores." The workshop will focus on Shelf Ready Packaging, one of four types of RRP, which allows a case containing more than one consumer selling unit to be placed on the store shelf in one motion. Studies have shown a 48% improvement in shelf stocking time by using SRP. CorrExpo 2013 is TAPPI's annual world-class event dedicated to the corrugated packaging industry. It will feature educational programs as well as exhibits highlighting supplier innovations. CorrExpo's Exhibit will highlight suppliers' innovations and provide ample opportunities for you to learn about their products and services. ##SHARELINKS##
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Piping System Training is a course anyone in the piping system industry can use. This course provides real-world practical knowledge for junior engineers, is a good refresher course for senior engineers, and helps operations and maintenance supervisors, design and process engineers, and operators and maintenance personnel better understand how piping systems operate. Attend Piping System Training courses planned for two locations coming this fall:
Visit the course website to find more information and register. Earn 1.6 CEUs and carry back with you two indispensable manuals as well as greater confidence in your work. ##SHARELINKS##
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Calls for Papers have been issued for PaperCon 2014. After a record attendance in 2013, PaperCon will again bring together CEOs, mill managers, superintendents, scientists, process engineers, and suppliers for the largest pulp and paper technical program in the world. The event will take place April 27-30, 2014, in Nashville, Tenn., USA. Learn more about PaperCon 2014. For 2014, PaperCon is once again co-located with the Tissue360° Forum, NETInc (Innovative Nonwovens Conference), RPTA (Recycled Paperboard Technical Association) P-T Seminar, and the OpEx Reliability Workshop. Each of these events is open to full PaperCon registrants and papers in these areas are welcome. Calls for Papers and Posters have been issued. The conference theme is In Tune for Stability, Agility, and Profitability, and authors are encouraged to include this within their papers. Papermakers Program: The Papermakers Program encourages topics on paper machine upgrades, product development, stability, agility, and fluid fundamentals, and recycled paperboard. The deadline for submission of abstracts is Nov. 10, 2013. Abstracts for panel discussions and roundtables are welcome. See Papermakers Program Call for Papers. Coating and Graphic Arts Program: The Coating and Graphic Arts Program will focus on The Future of Print and its Demands on Paper and Coatings. The deadline for extended abstracts for this program is October 16, 2013. See the Coating and Graphic Arts Program Call for Papers. All abstracts must be submitted using TAPPI's Speaker Management System for consideration by the TAPPI and RPTA program committees. ##SHARELINKS##
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TAPPI's problem-solving course designed for those working in industrial settings returns this fall. Root Cause Problem Elimination Training October 8-10 in Raleigh, N.C., USA. This maintenance course is designed to show you how to cut to the core of problems - and eliminate them - by tying cause and effect together with logical thought processes and easy-to-grasp diagrams. You'll learn from case studies and predictive maintenance tools to better analyze root cause and repeat failures. ##SHARELINKS##
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This seminar will reveal how your organization can build and sustain successful reliability and maintenance improvements. Results Oriented Reliability and Maintenance Management Course October 22 in Seattle, Wash., USA. Reliability isn't accomplished with a focus on one fix or another as you know. It's an ever-changing system of many different practices. Improve overall maintenance reliability by learning more about the tools, processes, indicators, and obstacles from a one-day training course that's consistently rated among the best. This is the final time this course will be offered in 2013. ##SHARELINKS##
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 As a long-time executive with Stora Enso, and now the proprietor of Strategy First Ltd Oy, Asko Hyttinen has used nearly 20 years of TAPPI membership to fine tune his understanding of global behaviors specific to the pulp, paper, and packaging industry. He accomplished this over the years by attending numerous conferences and classes, networking with other members across North America and Europe, and through active participation on a number of TAPPI committees.Having lived extensively on two continents, including four moves back and forth "across the pond," Asko is familiar with the need to educate oneself on new environments. He applies that understanding to the P&P world, noting he has a pertinent desire to develop the paper and forest products industry inside and outside of industrial companies. "Developing a unique global knowledge and understanding of industry behavior and success factors is key to that," he says. Find out more by reading this month's Member Spotlight. Spotlight participants are recommended by fellow members and staff. If you would like to nominate a member just send their name (or names) to MemberSpotlight@tappi.org. We will forward a Spotlight Questionnaire for you to fill out and return. We look forward to seeing you in the Spotlight! ##SHARELINKS##
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 Kraft Recovery BoilersBy: T. N. Adams, W. J. Frederick, T. M. Grace, M. Hupa, K. Lisa, A. K. Jones, H. Tran Kraft Recovery Boilers is a comprehensive textbook that covers recovery boilers in great depth and pulls together information on combustion, safety, emissions, plugging, and corrosion. The book also covers fundamental chemical and mechanical engineering principles that bear directly on black liquor and recovery boilers. It contains information about typical values and the normal range of important variables, plus many example calculations, data tables, and charts of relevant material properties or constants and conversion factors. Written by a team of industry experts, the text includes a great deal of practical information such as simple tests to pinpoint problems, important observations to help understand issues for particular operations, and "rules-of-thumb" that are generally used in the industry. This text was written as a project of AF&PA and published by TAPPI PRESS. Product code: 0102B064 ##SHARELINKS##
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TAPPI has announced it will be organizing another tissue program to be held at the PaperCon 2014 Conference, scheduled for April 27-30 in Nashville, Tenn., USA. The program will focus on technical advances in tissue making, converting, and on tissue education. "We received fantastic feedback from our first Tissue360° Forum in Atlanta," says Larry Montague, president and CEO of TAPPI, "so we wanted to provide more of what tissue makers need. Several of our outstanding members have stepped up to organize another program this year." The tissue market is growing globally, with private label growing faster than national brands. This is especially true in North America, where more than half of the new capacity has been structured sheet technology for private label customers. In Europe, dramatic new converting technologies have developed to improve tissue quality and performance. These trends are creating an increasing need for credible technical information and training. TAPPI responded by organizing the first Tissue 360° Forum in April, 2013. The forum attracted a large crowd to its three-day program of peer-reviewed, non-commercial technical papers. The 2014 Tissue360° Forum will feature more of the same, with an emphasis on converting technologies and TAPPI courses for those who want to grow their knowledge of this dynamic segment. The editorial team from Tissue360° will assist TAPPI tissue experts in the development of the program content. Tissue360° is TAPPI's semi-annual print and online publication for the tissue and converting industry. PaperCon is TAPPI's annual pulp and papermaking conference that attracts nearly 1,800 executives and technical professionals from around the world. It is the largest technical program in the world and the largest industry trade fair in North America. ##SHARELINKS##
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Are you "in the know?" Want the latest on what's happening in the industry? Well, we have the answer.
TAPPI has created a web-based listserv environment for TAPPI staff, TAPPI members, and associated individuals to gather and share information on business topics that are important to them.
This online community also allows for groups to be formed that are focused on a wide range of industry topics and depth of conversation. Community members can share news and industry information, ask questions of your peers, collaborate on projects, engage in pertinent blogs, share meeting schedules, and so much more. The community site will also have a combined calendar, referencing meetings, conferences, and courses.
If you are interesting in learning more or joining the community, go to the community portal.
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 The Bleaching of PulpBy: Peter W. Hart and Alan W. Rudie Previous editions of The Bleaching of Pulp have provided comprehensive information on the technology used to bleach wood pulps. The 5th edition will continue this tradition as the premiere industry text on bleaching technologies but will be more focused on the modern industrial processes with less emphasis on fundamental science. New or more comprehensive sections are included on elemental chlorine free bleaching, enzymes, acid treatments for hexeneuronic acids, control of mineral scale, and multi-stage modeling as used to optimize bleaching among multiple stages. Preview table of contents and sample pages. Product code: 0101R331 Member Price: $155.00 Non-Member Price: $232.00 ##SHARELINKS##
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The Foundations of Leadership Excellence Course is the only leadership course specifically focused on the paper and packaging industry. Foundations of Leadership Excellence explains the fundamentals of leadership and management skills for emerging leaders, high-potentials, area operating managers, and other technical professionals. This three-day session takes place Oct. 22 - 24, 2013, at the TAPPI Training Facility in Metro Atlanta, Ga., USA. This course will sell out at 25 participants. The instructors for this course have approximately 100 years of combined experience in leadership, management, and human resource roles within the pulp and paper industry. Course curriculum covers industry specific, real-world scenarios. Participants will develop personal leadership skills through the use of influence. They will learn to impact organizations from a 360 degree perspective and how to address the challenges of team building, accountability, performance management, and other critical factors of organizational success. ##SHARELINKS##
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As TAPPI is getting ready to celebrate its 100th Year Anniversary in 2015, we were wondering how much industry expertise we have in this great group of professionals. So, we decided to post a discussion question on our TAPPI Social Media outlets. We asked, "How many years of paper and/or packaging experience do you have?" Who knew such a simple question would have such an impressive response. With more than 7,000 TAPPI members, all over the world, we have counted 650-plus years of industry experience! And that's just counting the first 30 people who have responded. Now you probably can't find that anywhere else . So why don't you join us? From those "born" into the industry to third generation professionals. From paper to packaging, to sustainability, environment, tissue, converters, and consulting. This TAPPI network has something for everyone. Become a part of this unique community of paper and packaging professionals, and add your expertise to our group, and network with others to learn something new. Visit our website to learn more today! ##SHARELINKS##
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The TAPPI Centennial Celebration will be a multi-year long series of outreach events and educational offerings showcasing the proud history and promising future of the global pulp, paper, packaging, and related industries. This once-in-a-lifetime event will expand public awareness, foster further connection, and provide outstanding opportunities for collaboration, growth, and investment in our future for all of those involved. Goals for the TAPPI Centennial Celebration are:
For more information on sponsorship and volunteer opportunities please contact dbell@tappi.org. The sponsorship prospectus can be downloaded online. ##SHARELINKS##
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Do you have a history book gathering dust on your shelf? TAPPI's 100th year is coming soon and we are looking for donations to the TAPPI Library. Specifically, we are interested in histories of companies and mills in the paper and packaging industry (both producers and suppliers). Each donated book will have a bookplate in the front cover recognizing the donor. For more information please contact 
