International Paper's Mark Sutton - Executive Papermaker of the Year - www.paperage.com
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www.paperage.com MARCH/APRIL 2017 International Paper’s Mark Sutton Executive Papermaker of the Year
WHEN YOUR DEPOSIT CONTROL WORKS BETTER LONGER, YOUR PAPER MACHINE WILL TOO. Switch to more stable, longer lasting Busan® 1215 from Buckman. You’ll see significant improvements in runnability and speed with fewer boilouts and washups and lower chemistry costs. And that’s just the beginning. Busan 1215 can also help you: REDUCE ODOR caused by volatile fatty acids and sulfate-reducing bacteria. INCREASE SAFETY with proprietary feed equipment that provides leak detection, built-in separation of active ingredients, auto flushing and more. IMPROVE PAPER QUALITY with fewer holes and sheet defects and reduced off-grade production. PROTECT THE ENVIRONMENT by reducing the potential toxicity of your mill’s effluent. Let Busan 1215 protect your equipment, your people, the environment and the bottom line. Contact your Buckman representative or visit buckman.com, and see just how easy it is to upgrade your deposit control program. © 2017 Buckman Laboratories International, Inc. All rights reserved.
contents
MARCH/APRIL 2017, VOLUME 133, NUMBER 2
C O L U M N S
20 P
olicy Matters
U.S. paper and wood products manufacturers
strive to build on industry sustainability prog-
ress; set greenhouse gas reduction goal of 20
percent by 2020 under Better Practices, Better
Planet 2020 initiative.
22 M
arket Grade: Uncoated Freesheet
North American uncoated freesheet demand
contracted further in 2016 and it’s expected
to shrink further this year. On the bright side,
demand for uncoated papers has held up bet-
ter than other graphic grades.
D E P A R T M E N T S
4 Editor’s Note
6 Industry News
18 People
19 Calendar
26 24 Industry Recognition
Mohawk’s Tom O’Connor Jr. and
Ted O’Connor earn 2017 Peyton
Shaner Award from the Association of
F E A T U R E S Independent Printing Paper Merchants.
26
Serving Growing Markets with 25 Innovation Matters
an Eye on Profitable Growth Metsä Board introduces innovative
International Paper’s Chairman and Chief one-piece paper cup, Lidloc, which features
Executive, Mark Sutton, has positioned IP to an innovative design that completely
take advantage of its experience and strengths, removes the need for a separate plastic lid.
while keeping a watchful eye on profitability.
38 Packaging Matters
A new study projects steady growth
32
An Old School Approach to for moulded fiber pulp packaging in
Western Europe.
Reducing Machine Failure
Lubrication-related equipment failure is a problem
that plagues industrial facilities of all sizes. It turns
S E R V I C E S
out, however, the newest weapon in the fight against 37 Classified Ads
industrial machine failure isn’t new at all, and it’s
generating substantial savings along the way. 37 Index of Advertisers
MARCH/APRIL 2017 3
editors note
How Life Unfolds MARCH / APRIL 2017
VOLUME 133, NO. 2
EDITOR IN CHIEF Jack O’Brien
By John O’Brien, Managing Editor PUBLISHER Michael C. O’Brien
jobrien@paperage.com MANAGING EDITOR John F. O’Brien, Jr.
CONTRIBUTING EDITOR Harold M. Cody
In July of 2015, the Paper and Packaging Board than 1 indicates that the benefit exceeds the cost.
CONTRIBUTING WRITER John Yolton
launched its “Paper & Packaging – How Life “Independent economists, like myself,
LAYOUT & DESIGN Betsy Gold Designs
Unfolds™ consumer campaign across televi- develop what are known as econometric mod-
sion, print, digital, outdoor and social media. els of all the demand factors that influence the
The campaign is the result of the Paper and demand for a commodity. Once all significant SALES OFFICE
20 Schofield Road
Paper-based Packaging Promotion and Research demand factors are accounted for, we can
Cohasset, MA 02025-1922
program better known as the Paper Check-off, get an accurate impact of advertising on the Phone: (781) 923-1016
which the paper industry voted overwhelm- demand for a commodity. Models provide a Fax: (781) 923-1389
email: mobrien@paperage.com
ingly to create in November of 2013. simple, but an accurate way to simulate the Web Site: www.paperage.com
Shortly thereafter, the USDA published impacts of advertising in the real world,”
EDITORIAL OFFICES / SUBSCRIPTION ENQUIRES
the final rule for the Paper Check-off (January Kaiser explains.
42A Country Way
2014), which established the program and Does he think check-off programs work? Scituate, MA 02066-3743
stated the assessment of 35 cents per short “Not only do these programs work, but they Phone: (781) 536-4925
Fax: (781) 923-1389
ton for manufacturers and importers annually work exceptionally well. Almost all past studies email: jobrien@paperage.com
producing or importing 100,000 short tons or indicate these programs have benefits that vast- Web Site: www.paperage.com
more of printing and writing, containerboard, ly exceed their cost. It is clear from the bulk Copyright ©2016 by O’Brien Publications, Inc. All rights
paperboard and Kraft paper. The assessment of past economic studies, that these promotion reserved. PaperAge (ISSN:0031-1081) is published six
times per year with those issues being January/February,
began on March 1, 2014. From those four programs are very profitable to the industry,” March/April, May/June, July/August, September/October,
November/December by O’Brien Publications, Inc.,
paper sectors, the campaign is collecting about Kaiser states. 20 Schofield Road, Cohasset, MA 02025-1922.
Periodicals postage paid at North Reading, MA.
$25 million annually. The Paper and Packaging Board added that
The question I’ve asked myself is: How does checkoff programs have successfully provided Canadian Mail distribution information:
Publication Mail Agreement #40112731
the industry measure the results? return on investment for a number of indus-
Ontrac International
The Paper and Packaging Board engaged tries. For each dollar invested in the program, P.O. Box 25058, London BRC.
economist Harry Kaiser of Cornell University the pork industry estimates a rate of return for Ontario, Canada N6C 6A8
to discuss the importance of the checkoff pro- every dollar invested of $4.79; while the beef POSTMASTER: Please send change of addresses to:
gram as an investment. In a series of informa- industry reports $11.20; the soybean industry PaperAge, 20 Schofield Road, Cohasset, MA 02025-1922.
tive of videos (www.paperandpackaging.org), $6.75; and the watermelon industry slightly
Subscriptions: PaperAge is mailed without charge in the
Kaiser says check-off programs are extremely more than $10. U.S. and Canada (upon written request) to qualified
effective marketing tools and the use of According to the Paper and Packaging individuals in the pulp, paper, paperboard, and paper
converting industries. To all others there is a subscription
econometric models allow us to see how each Board, a preliminary assessment shows that a charge of $54.00 in the U.S., $60.00 in Canada, and
demand factor, on its own, including advertising, $25 million per year Check-off maintained for $90.00 in all other countries. Single copies may be
purchased for $10.00 each. All payments must be made
affects the ups and downs of product demand. seven years would only need to lift sales of the
in U.S. funds and checks must be drawn from a U.S. bank.
“In order to evaluate the effectiveness of four covered categories of paper by approxi- Credit cards are accepted.
adverting check-off programs, economists mately one-quarter of one percent relative to Reproduction of by any means of the whole or part of
compute the aggregate benefits and compare baseline to generate a return of investment of PaperAge, without written permission, is prohibited.
those with the cost of the program,” says Kaiser. 20 percent.
“Typically, a so-called benefit cost ratio, or BCR, In the past year or so I’ve noticed a positive
is computed. And as the name implies, a ben- change in consumers’ perception of paper
efit cost ratio is simply the ratio of the benefits and the industry. It will be interesting to see
of the program to the cost of the program. how the Paper Check-off program unfolds
So obviously, a benefit cost ratio that is greater going forward.
4 MARCH/APRIL 2017 4
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got you down?
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industry news
NORTH AMERICA
Clearwater Paper Announces Second Tissue Machine and
Converting Facility in NC
INNOVATE
Clearwater Paper recently announced plans
to build a new tissue machine and related
SOFT converting equipment for producing pre-
mium and ultra-premium grades of private
label tissue products at a site adjacent to
Discover how our nature-based the company’s existing facility in Shelby,
polymers increase softness and North Carolina.
bulk while achieving the dry “Clearwater Paper’s customers are requir-
strength you need. Improve ing more premium and ultra-premium
turnup performance and reduce products, which we are addressing with the
dusting and linting at the same new capacity. These high growth segments machine, converting equipment and build-
time. Collaborate with the have increased 3.5 times faster than the ings, and approximately $57 million for
Ingredion Idea Labs™ experts. the purchase and expansion of an existing
overall tissue market, and we are committed
to growing with our strategic customers and warehouse that will consolidate all south-
positioning ourselves to add new customers,” eastern warehousing in Shelby.
said Linda K. Massman, President and CEO Clearwater Paper projects that the con-
of Clearwater Paper. struction of the new facility will be com-
As a result of extensive analysis of the pleted in early 2019 and fully operational
project, Clearwater will install a 200-inch in 2020.
Valmet NTT tissue machine and related Clearwater Paper intends to start con-
converting equipment. At full production struction during the second quarter of this
capacity, the new tissue machine is expected year. Converting and warehouse operations
to produce approximately 70,000 tons of are expected to be completed during the
tissue products annually. second half of 2018, and the tissue machine
The estimated cost for the project includes is expected to be completed during the first
approximately $283 million for the tissue quarter of 2019.
See us at PaperCon 2017
ingredion.us/papermaking Sappi Slates $165 Million to Boost Capacity of Somerset Mill
1-800-443-2746
Sappi has announced the approval of a Mark Gardner, President and CEO of
US$165 million capital project to expand Sappi North America, said, “Somerset’s
Sappi North America’s manufacturing capa- existing world class infrastructure together
bilities and flexibility to include a variety of with its talented workforce and access to
consumer packaging products. high quality fiber makes the mill an excellent
The project involves Paper Machine No. 1 and obvious choice for this investment.
at Sappi’s Somerset Mill in Skowhegan, Increasing our flexibility and expanding
Maine, that will increase paper production the paper mill’s capability and capacity
capacity to almost one million tons per year. will ensure that we continue to make
Currently, the Somerset mill’s annual superior products at Somerset for years
production capacity is 795,000 metric tons of to come.”
The INGREDION and INGREDION IDEA
LABS marks and logo are trademarks of the publication grade paper (used for magazines, The planned project at the Somerset Mill
Ingredion group of companies. All rights
reserved. All contents copyright © 2017. catalogs, advertising brochures, direct mail, is expected to come online early in 2018.
etc.) and 525,000 metric tons of pulp.
6 MARCH/APRIL 2017
The Perfect Fit
Introducing The New SINAMICS
PERFECT HARMONY GH180
Medium Voltage Drive
usa.siemens.com/newperfectharmony
industry news
NORTH AMERICA
Nippon Paper Industries to Sell Port Angeles Paper Mill to
Bio-Pappel
INNOVATE
Nippon Paper Industries Co., Ltd. announced
the sale of the Port Angeles, Washington
STRONG paper mill and cogeneration assets, which
are owned and operated by Nippon Paper
Industries USA to McKinley Paper Company.
Increase strength with less fiber McKinley is the US subsidiary of Bio-
as you reduce your reliance on Pappel, a producer of paper and paper
synthetics. New starch solutions products in Mexico.
from Ingredion Idea Labs™ Terms of the deal were not disclosed. to produce more than 200 tons per day of
science-based problem solving Nippon Paper Industries noted that it high quality recycled pulp.
help you improve your current acquired the Port Angeles mill in 1988 in In December of 2014, Nippon Paper
packaging and create super order to produce and sell printing and writing curtailed production of the mill’s No. 2
strong, lightweight products.
papers including telephone directory paper. Paper Machine, and according to a recent
Although the operation performed well news story in the Peninsula Daily News,
for many years, it has recently been facing Nippon Paper curtailed paper production
a challenging business environment due to on the mill’s remaining paper machine as of
diminishing demand for its products. January 21, 2017 for market-related condi-
The Port Angeles mill was built in 1920 tions. However, the co-generation facility at
and operated under the name Crown Zeller- the site is continuing to run.
bach. Daishowa Paper of Japan purchased it Nippon Paper Industries expects the
in 1988 and later merged to become Nippon sale to close on March 31, and noted that
Paper Industries USA. The mill is a fully “McKinley has an intension to sustain Port
integrated pulp and paper mill with the Angeles mill operation.”
capacity to produce about 325 tons per day Currently, McKinley Paper Company
of lightweight printing and specialty papers. operates paper collection and recycling
The recycled deinked pulp mill was built centers in New Mexico, Texas, Arizona
in in the early 1990’s and has the capacity and Colorado.
See us at PaperCon 2017
ingredion.us/papermaking
1-800-443-2746 Cascades Sonoco to Expand Its Birmingham Coating Facility
Cascades Sonoco, a joint venture of Sonoco coatings designed to replace the standard
Products Company and Cascades Inc., LDPE coating used in take-out container
announced the investment of approxi- folding carton applications, as well as wax
mately $16 million for the expansion of replacement technology for the corrugated
its existing Birmingham, Alabama facility. industry. They offer solutions that are recy-
This investment in water-based coating clable, repulpable and compostable.
technology will provide coated paper and Installation of the new equipment and
paperboard substrates using its new Flex- expansion of the existing Birmingham facil-
Shield, FluteSHIELD and SurfSHIELD ity will begin early this year, and start-up is
coating technology. expected in the second quarter of 2018.
According to Cascades Sonoco, these Once at full capacity, the new water-based
The INGREDION and INGREDION IDEA
LABS marks and logo are trademarks of the coatings, recently introduced to the folding coating line will be capable of producing
Ingredion group of companies. All rights
reserved. All contents copyright © 2017. carton and corrugated industries, are inno- 40,000-50,000 tons of sustainable coated
vative water-based functional and barrier materials annually.
8 MARCH/APRIL 2017
James Ross Limited Introduces:
TM
F abri C are
Simple!
Reliable! DEWATER I NG
Economical!
DEWATER I NG
The next generation in paper
machine clothing cleaning systems
The FabriCare TM ECOfficiency concept uses high pressure needle jets to
clean the paper-side of the fabric directly on a roll. The needle jet has the Wet End
highest cleaning capacity but using low cleaning pressure and low water
consumption. The rebound of the water jet from the fabric and roll surface
carries the released contamination into the cleaning head. The vacuum
created directly inside the head transports the debris further to the save all.
No moving parts on the head = extreme low maintenance
Roll specific radius to keep the distance cleaning head to fabric as small as
Dry End
possible = high vacuum level = efficient discharge of impurities
The demand for energy to produce the water jet and the water consumption is
very low
Vacuum produced by using low amount of mill air supply - no need
for additional evacuation sources like vacuum pumps or regenerative
blowers in combination with a water separator.
The application prescribes the quantity and size of the nozzles – variable adaption
The FabriCare design does not require a suction hose inside the beam which
could get clogged.
s t e m
S olutions
y
S
For technical information please contact:
North American Director of Sales - Michael Psenicska • Phone (610) 715-3882 • e-mail: mpsenicska@jamesross.com • www.ibs-ppg.com
industry news
NORTH AMERICA
Resolute Indefinitely Idles Thorold Newsprint Mill
Resolute Forest Products on March 10 indefi-
INNOVATE nitely idled its paper mill located in Thorold,
Ontario. The facility, which employed over
Resolute is collaborating with
Stone House Investments
SMOOTH 100 workers, has an annual production capac-
ity of approximately 197,000 metric tons of
Holdings Inc., an independent
third party interested in convert-
newsprint on one machine using 100 percent ing Thorold to production of
Elevate coverage to achieve recycled furnish.
uniform coating and an alternative product.
Resolute said the difficult decision to
improved print quality with
proceed with the indefinite idling is driven by the alternative product.
PEN-COTE® D coating binder.
It’s nature-based, ready ongoing significant decline in North American Resolute added that it recognizes the
for use and engineered newsprint consumption, coupled with the impact of this decision and believes conversion
to perform. Get Ingredion increasing cost of recovered paper. The of the mill would provide a more sustainable
Idea Labs™ science-based company had already been taking downtime future for the operation, its workforce and
problem solving. at the operation since mid-December 2016. the surrounding community.
Resolute is collaborating with Stone The company remains committed to
House Investments Holdings Inc., an customer service and delivery of high-quality
independent third party interested in products, and is working closely with customers
converting Thorold to production of an to ensure a smooth transition.
Pratt Industries Opens New Corrugated Box Factory in Beloit, WI
Pratt Industries on March 20 officially opened that under Walker’s leadership unemploy-
its newest corrugated box factory — a $60 ment in the state had fallen from 8 percent
million investment in Beloit, Wisconsin. to under 4 percent.
Governor Scott Walker, who was on hand “And this plant is only a punt kick away
for the ribbon cutting and a tour of the from the Chicago area, the world’s biggest
See us at PaperCon 2017 350,000 sq. foot facility, hailed the company box market.”
ingredion.us/papermaking for creating “good paying jobs here and across At capacity, the Beloit factory will employ
1-800-443-2746 the United States.” 140 people and produce 600 tons of 100
“We’re thrilled at this commitment,” the percent recycled boxes every day.
Governor told more than 150 customers The new investment is part of the com-
and employees. “As an international leader pany’s continued expansion plans into the
in paper and packaging, Pratt Industries Midwest and beyond.
had numerous options when it came to “We currently operate 68 factories and
establishing operations in the Midwest and employ 7000 people and we want to continue
their decision to expand here in Wisconsin to grow those numbers,” Pratt said. “Just here
is another indication that our reforms are in the Midwest alone we’ve invested almost
working.” $500 million dollars since the beginning
Chairman Anthony Pratt said putting the of 2015.”
new factory in Wisconsin was an easy decision. Pratt is America’s 5th largest corrugated
The INGREDION, INGREDION IDEA LABS and
PEN-COTE marks and logo are trademarks of “It’s due to Gov. Walker’s great leadership packaging company and the world’s largest,
the Ingredion group of companies. All rights
reserved. All contents copyright © 2017. that we are located here in this businesslike- privately-held 100% recycled paper and
friendly, manufacturing area,” he said, noting packaging company.
10 MARCH/APRIL 2017industry news
NORTH AMERICA Resolute Starts-up New Tissue
Tembec to Invest $136 Million in Quebec Operations Machine at Calhoun
Tembec announced a four-year $136 “I want to acknowledge thesignifi- Resolute Forest Products announced the successful
million capital investment program in cant support of the Government of start-up of its new tissue machine in Calhoun, Ten-
its Quebec facilities to improve com- Quebec for investment projects which nessee. The first tissue parent roll was produced on
petitiveness, centered on its specialty improve the long-term competitiveness February 28, 2017.
cellulose pulp operation at the Temis- of Tembec’s manufacturing operations The machine will continue its scheduled ramp-
caming manufacturing site. in Quebec,” said James Lopez, Tembec’s up through 2017 and is expected to be producing
According to Tembec, this invest- President and CEO. at maximum capacity toward mid-2018. With its
ment qualifies the company to benefit The proposed investments will fully operational converting facility, converted tissue
from electricity rebates applicable to cover a number of upgrades at the products sold from Calhoun are now manufactured
large industrial power users under the Temiscaming site, including the long- entirely from parent rolls produced on-site.
Electricity Discount Program for Con- planned replacement of 11 existing The Calhoun tissue operation, built at Resolute’s
sumers Billed at Rate “L”. Tembec will pulp digesters — a project required for pulp and paper mill, has the capacity to manufacture
be reimbursed for an amount of up to the site to remain competitive in global 66,000 short tons (60,000 metric tons) annually of
$55 million, representing 40% of the markets. Work is already underway, with premium private-label tissue, including bath and
$136 million investment. one digester replaced to date. towel, aimed at the at-home market.
The program, introduced in the In addition, portions of the capital Resolute said, “With its state-of-the-art machine,
Government of Quebec’s 2016-2017 investment will go toward reducing three converting lines and integration of pulp from
budget, applies to significant invest- greenhouse gas emissions, while the the existing Calhoun pulp mill, this will be one of
ments in the four-year period up Temiscaming site’s high-yield pulp and the most efficient and cost-competitive tissue
to the end of calendar 2020 which coated bleached board manufacturing operations in North America once full production
increase productivity or improve facilities will also benefit as will the is achieved, positioning Resolute as a key player
energy efficiency. Matane high-yield pulp facility. in this growing market segment.”
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12 M A R C H / A P R I L 2 0 1 7industry news
EUROPE
Merger of Munksjö and Ahlstrom Gain Approvals from Shareholders and EC
The European Commission in mid-March and service offerings e.g., filtration and
approved the merger between Ahlstrom The proposed combination abrasives to the automotive industry as well
Corporation and Munksjö Oyj. as food and beverage packaging and release
Earlier in the year, Munksjö and Ahlstrom would have preliminary com- liners to the food and beverage industry.
each held Extraordinary General Meetings The two companies have complemen-
bined annual net sales of
(EGM) in Helsinki, Finland and both sides tary geographical footprints, as Munksjö
approved the combination of the companies’ approximately EUR 2.2 billion. has strong market positions in Europe and
business operations through a statutory South America and Ahlstrom has strong
absorption merger of Ahlstrom into Munksjö. market positions in Europe, North America
The proposed combination would have a more pronounced impact expected from and Asia.
preliminary combined annual net sales of the fourth quarter of 2017. The name of the combined company
approximately EUR 2.2 billion and adjusted The combination will create a com- will be Ahlstrom-Munksjö Oyj, with head-
EBITDA of EUR 249 million. Annual cost pany with leading global positions in the quarters located in Helsinki, Finland. The
synergies are estimated to be about EUR main product areas of decor, filtration and new company will have approximately 6,200
35 million. The cost synergies are expected release liners. Together, the companies will employees as well as production in 14 countries.
to be gradually realized over two years fol- be able to serve a broad range of end-market The merger is expected to be completed
lowing completion of the combination with segments with complementary product on or about April 1, 2017.
Stora Enso to Shut Down One SC Paper
Don't let this Machine at Kvarnsveden Mill
Stora Enso in mid-February announced reorganization plans for its
happen to you! Kvarnsveden Mill in Sweden that include the permanent closure of
paper machine (PM) 8. The planned actions would affect a maxi-
mum of 140 employees.
PM8 has an annual capacity of 100,000 tonnes of supercalendered
(SC) uncoated magazine paper, and it is planned to be shut down
by the end of the second quarter of 2017.
The plan would result in annual cost savings of EUR 12 million,
A cast metal blower fan deteriorated during operation at high rpm. Stora Enso said
Shards of metal destroyed the blower housing. The Stroud Ballistic “We plan to reorganize Kvarnsveden Mill to ensure its competitive-
Blanket in place, successfully contained the shrapnel. Injury to ness in the structurally declining paper market,” said Kati ter Horst,
personnel and damage to other equipment was prevented. EVP Paper division. “This plan includes the permanent shutdown of
Stroud Ballistic Blankets are available in Kevlar PM8, which, due to its small size and technical age, is unfortunately
and Ballistic Nylon, and designed with no longer competitive in the current market conditions.”
fitments and straps for your equipment
The closure of PM8 would not impact Stora Enso’s SC paper
containment requirements.
Our products are field-proven to offering, the company noted.
contain projected debris that results In Europe, Stora Enso continues to produce SC paper at Kvarns-
from catastrophic equipment failure. veden Mill on PM12, as well as its Maxau Mill in Germany and
Langerbrugge Mill in Belgium. The group also serves its SC customers
INDUSTRIAL MADE IN
THE USA!
from Dawang Mill in China.
SAFETY SOLUTIONS Production at Kvarnsveden Mill would continue on two lines,
STROUDINDUSTRIALSAFETYSOLUTIONS.COM • 800-554-4648
PM10 for improved newsprint paper and PM12 for SC papers.
14 M A R C H / A P R I L 2 0 1 7industry news
SOUTH AMERICA MEXICO
Suzano Announces Major 2017 Investment SCA to Invest $105 Million in One of its
Projects in Brazil Tissue Operations in Mexico
Suzano Pulp and Paper will invest about R$720 million by SCA said that it will
year-end in a set of projects intended to diversify its operations invest about US $105
in Brazil through higher-value products, boost structural com- million in one of it’s
petitiveness, cut costs and enhance environmental initiatives. tissue facilities in
The investments will be used to build two tissue lines — one Mexico to further
at the Mucuri Unit in Bahia state and the other at the Impera- strengthen competi-
triz Unit in Maranhão state. tiveness and enable
Suzano will also build a lignin production line at the Limeira future growth in that
Unit in São Paulo state. region.
Suzano noted that a project to debottleneck its Imperatriz SCA explained that the investment in Mexico will support its
Unit will be concluded this year, as will projects to expand and high-quality tissue offering under the Regio brand.
modernize the wastewater treatment plant and the installation “The investment is aligned with the company’s strategy to
of a new crystallizer on Line 2, both at the Mucuri Unit. streamline production and secure capacity for future growth
“These projects are included in our investment plan for 2017, in order to increase value creation in the Tissue business area,”
which is estimated at R$1.83 billion and also includes R$1.11 SCA said.
billion in maintenance initiatives, including in the forestry and In addition, SCA will also invest about EUR 40 million in
industrial operations. The maintenance investments aim to facilities in Europe to strengthen its offering of baby diaper
ensure the good operating conditions of our assets, as well as to products. SCA did not disclose specific facilities in Europe that
cultivate and preserve green areas,” the company said. would be involved in the investment.
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MARCH/APRIL 2017 15industry news
CHINA PA K I S TA N
Nine Dragons to Install Two Containerboard A&R Carton and Packages Limited Sign
Machines in China Partnership Agreement
Nine Dragons Industries Co., Ltd. announced plans to install two A&R Carton AB of Lund, Sweden,
new containerboard machines at its mills in China. The new produc- and Packages Limited of Lahore,
tion lines — PM 39 in Quanzhou and PM 40 in Chongqing — will Pakistan, have signed a strategic part-
produce testliner and fluting grades with a basis weight range of nership agreement with the intent
75 - 140 g/m2 using 100 percent recycled raw materials. to collaborate in the manufacture,
The two machines and auxiliary equipment will be supplied procurement, sale and marketing of
by Valmet. paper-based packaging in Pakistan and neighboring markets.
Nine Dragons said PM 39 will have a production capacity of “In line with our strategy to expand our footprint outside of Europe,
about 350,000 tpy, while PM 40 will have the capacity to produce our partnership with Packages Limited will further strengthen our
550,000 tpy. platform and benefit our global customer base,” said Harald Schulz,
Nine Dragons expects to start up the machines in the fourth President and CEO of AR Packaging.
quarter of 2018. “After having been a founding partner of Packages Limited in
Nine Dragons is largest producer of containerboard in Asia with 1956, we are very pleased to join forces with such an established
total design production capacity of 13.7 million tpy. The company company again to collaborate on new target markets,” he said.
produces a wide variety of packaging paper products, including Syed Hyder Ali, CEO of Packages Ltd, added, “I am very pleased
linerboard (kraftliner, testliner and white top linerboard), high to announce this partnership agreement with AR Packaging who
performance corrugating medium and coated duplex board, as helped in setting up of Packages Limited in 1957. The partnership
well as the production and sale of recycled printing and writing with AR Packaging will further strengthen our domestic market
paper (including uncoated woodfree paper, copy paper, etc.) and position and give us entry to the international markets.”
specialty paper. A&R noted that this agreement does not constitute a joint venture
or an equity participation.
I N D U S T RY S U P P L I E R S
Bolzoni Auramo Introduces Paper Roll
Handling Program
Paper handling equipment
company Bolzoni Auramo
announced the development
of a special program that turns
roll and bale handling into an
efficient damage free opera-
tion. The program includes
information such as selection
of the right clamp for dedi-
cated handling; determining the correct clamping force; identifying
the most suitable contact pad.
In addition, Bolzoni offers a variety of optional damage-reduction
and quality control tools that help reduce the risks for damage to
rolls throughout the logistics chain.
Bolzoni Auramo has manufacturing plants in Italy, Germany,
Finland, America and China, with a network of direct branches and
independent dealers throughout the world. For further information,
please visit: www.bolzonigroup.com.
16 M A R C H / A P R I L 2 0 1 7industry news
I N D U S T RY S U P P L I E R S
Siemens Optimizes Converting Machines Asia Symbol Starts-up New Fine Paper
with New Compensation Functions Machine from Valmet
Siemens has expanded its Simotion Motion Control solutions for Valmet announced that a fine paper production line it supplied to
converting machines to include prismatic winding and Learning Error Asia Symbol Paper Company’s paper mill in Xin Hui, Guangdong
Compensation (LECo). Prismatic winding compensates for path length province in southeast China, successfully started up on January 29
differences on non-circular winding bodies. The advantages are higher — one month ahead of schedule. The new production line, PM 12,
winding quality, machine speed and process reliability. produced high quality, saleable fine paper from the start.
The new self-learning LECo function compensates for periodic Valmet’s delivery included a complete fine paper making line
disturbance variables in the process, and quickly restores the process from stock preparation to reel with an approach flow system, white
and product quality. Deviations, such as position errors of a process water systems, air systems, and machine clothing, as well as a winder.
axis triggered by mechanical shock, are already largely compensated Valmet also supplied a comprehensive automation package comprises
for after just one cycle. The new Simotion applications are used, for Valmet DNA process, machine and drive controls and conditioning
example, in the processing of corrugated cardboard or material webs. monitoring as well as Valmet IQ quality control system and profilers.
Winding on non-circular cylindrical, near elliptical bodies creates PM 12 is a 9.35 meter-wide (wire) machine producing woodfree
web length changes between the material support point and the uncoated paper grades in the basis weight of 80 g/m2. The produc-
deflector roller. These were previously compensated mechanically or tion capacity of the machine is approximately 1,700 tons per day
by a variable winding speed. The new Siemens Motion Control solu- and the design speed is 1,800 m/min.
tion for prismatic winding calculates cyclically in advance the support Asia Symbol is part of RGE (Royal Golden Eagle) Group, a leading
points of the material on the deflector roller and winding body, and producer of pulp and paper. The Group has an annual production
feeds these into the controller. The machine constructor benefits from capacity of 1.8 million tons of pulp, 1.0 million tons of fine paper
higher winding quality, higher machine speed and process reliability. and 470,000 tons of paperboard.
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MARCH/APRIL 2017 17people
PA P E R
och Industries has named
n K Hathorn as Group CEO. Hathorn joined Mondi in 1991 and
Jim Hannan executive has served as CEO since 2000.
vice president and CEO – Sappi Europe has appointed Maik Willig as
n
Enterprises, a newly created Mill Director of the company’s Ehingen Mill
leadership position. Hannan in southern Germany. Willig joined Sappi in
has served as President Jim Hannan Christian Fischer
2012 as Production Manager and became Paper
and CEO of Koch subsidiary Georgia-Pacific since 2007. Mill Manager of Ehingen at the beginning of
Succeeding Hannan as President and CEO of Georgia-Pacific 2015. Willig holds a master’s degree from the Maik Willig
is Christian Fischer, who has been with GP since 1989. University of Munich in Pulp and Paper Engineering.
n International Paper announced
that Thomas J. Plath has RECOGNITION
been elected as Senior Vice
President, Human Resources The Association of Suppliers for the Paper Industry (ASPI)
n
and Global Citizenship. announced that Michael Doss, President and Chief Executive
Plath joined International Thomas J. Plath Thomas G. Kadien Officer of Graphic Packaging Holding Company, has been
Paper in 1991, serving most recently as Vice President, Human recognized as the ASPI 2017 Customer Executive of the Year.
Resources, Global Businesses. IP also announced the retirement ASPI also announced that Jack Bray, Vice President,
of Thomas G. Kadien, Senior Vice President, Human Resources, Manufacturing Operations at Domtar, has been selected to
Government Relations and Global Citizenship. Kadien joined the receive ASPI’s 2017 Excellence in Leadership Award.
company in 1978 and will retire effective June 30, 2017.
I N D U S T R Y A S S O C I AT I O N S
International Paper announced that
n
Rampraveen Swaminathan, President -
The American Forest & Paper Association (AF&PA) announced
n
International Paper India and Chairman
the election of Clearwater Paper Corporation President and
& Managing Director of International
CEO Linda Massman as the new AF&PA Board Chair.
Paper APPM Limited has decided to
leave the company to pursue his profes- Rampraveen Swaminathan The National Paper Trade Association (NPTA) announced that
n
sional interests. Don Devlin, Vice President, Corporate Audit Tom Wernoch has been elected as its new Chairman. Wernoch
for International Paper will succeed Swaminathan. Devlin is Director of Sales, Printing and Imaging Papers at Glatfelter.
has nearly 20 years of experience with IP, holding vari-
ous leadership roles. He will be based in Hyderabad, India. INDUSTRY SUPPLIERS
Swaminathan will continue in his current responsibilities and
support a smooth transition until end of April 2017. Buckman announced
n
that Steven B. Buckman,
Monadnock Paper Mills announced that
n
President and CEO, will
Dr. Fuushern Wuu has joined the company
retire effective April 28. Mr.
as Senior Product Manager in its R&D,
Buckman has led the com-
Technical Services Department. Dr. Wuu is
pany’s nine global operating Steven B. Buckman Junai Maharaj
the author of several patents and has extensive
companies for more than 16 years. Junai Maharaj, currently
experience with wet-end paper chemistry and Dr. Fuushern Wuu
Managing Director of Buckman Europe, Middle East and Africa,
specialty coatings.
will become the CEO of Buckman effective April 28. In addition,
Mondi Group said that David Hathorn, Group CEO, has
n Kathy Buckman Gibson, Buckman International’s President and
informed the Boards of his decision to retire, effective COO, will become Chairman of the Board of Directors begin-
May 11. Peter Oswald, currently an Executive Director and ning April 28, 2017. Otto Heissenberger, Jr. will retire as
CEO of the Europe & International Division, will succeed Chairman and plans to continue to serve as a board member.
18 M A R C H / A P R I L 2 0 1 7calendar
MARCH 26-28, 2017 APRIL 26-28, 2017 JUNE 18-21, 2017
Paper2017 AICC Spring Meeting PPSA Annual Safety Conference
AF&PA and NPTA Association of Independent Pulp and Paper Safety Association
Trump Hotel Chicago Corrugated Converters Charleston Marriott
Chicago, Illinois, USA Hyatt Regency Lost Pines Resort & Spa Charleston, South Carolina, USA
www.paper2017.com Austin, Texas, USA www.ppsa.org
aiccbox.org
MARCH 29-31, 2017 SEPTEMBER 19-21, 2017
PPC Spring Outlook and MAY 7-10, 2017 Specialty Papers US 2017
Strategies Conference International Pulp Week TAPPI and Smithers Pira
Paperboard Packaging Council Pulp and Paper Products Council Pfister Hotel
Charlotte Marriott City Center Hyatt Regency Hotel Milwaukee, Wisconsin, USA
Charlotte, North Carolina, USA Vancouver, British Columbia, Canada www.specialtypaperconference.com
www.paperbox.org www.internationalpulpweek.com
SEPTEMBER 25-27, 2017
APRIL 10-12, 2017 JUNE 5-8, 2017 PPI Transport Symposium 22
Biomass Conference & Expo Nanotechnology for Renewable Materials RISI and IFPTA
BBI International TAPPI Savannah International Trade
Minneapolis Convention Center Hyatt Regency Montreal and Convention Center
Minneapolis, Minnesota, USA Montreal, Quebec, Canada Savannah, Georgia, USA
www.biomassconference.com www.tappi.org www.transportsymposium.com
APRIL 23-26, 2017 JUNE 7-10, 2017 OCTOBER 3-6, 2017
PaperCon 2017 PACWEST Conference Tissue2017 – Conference & Expo
TAPPI Western and Pacific Coast PAPTAC Branches TAPPI and RISI
Minneapolis Convention Center The Fairmont Chateau Whistler Eden Roc Miami
Minneapolis, Minnesota, USA Whistler, British Columbia, Canada Miami, Florida, USA
www.papercon.com www.pacwestcon.net www.risiinfo.com
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MARCH/APRIL 2017 19policy matters
U.S. Paper and Wood Products
Manufacturers Strive to Build on
Industry Sustainability Progress
Set Greenhouse Gas Reduction Goal of 20 percent by 2020 Under Better
Practices, Better Planet 2020 Initiative
By Donna Harman, President and CEO, American Forest & Paper Association
U.S. paper and wood products
manufacturers have long embraced
sustainable business practices to keep
our industry competitive, our forests
strong and our environment pro-
tected. Our member companies pro-
actively engage their supply chain to
ensure that renewable resources used
to make essential everyday products
are readily available to future genera-
tions. For that, we say thank you.
Such deep commitment and fore-
thought have returned significant
sustainability achievements along the
Our results show progress toward increasing energy efficiency,
way. And we are proud to showcase improving safety, reducing water use, broadening paper recovery
those measurable results in our Better for recycling and expanding sustainable forestry practices.
Practices, Better Planet 2020 project,
launched in 2011 as one of the most In our 2016 report, we announced to stay productive and competitive
extensive sets of sustainability goals our members’ collective achievement of while protecting the viability of our
for a U.S. manufacturing industry. a GHG emission reduction of 16 per- natural resources. That’s why we took
Our results show progress toward cent, surpassing the 15 percent reduc- their sustainability success story on
increasing energy efficiency, improving tion goal ahead of schedule. Instead the road during a series of “Advocacy
safety, reducing water use, broaden- of stopping while ahead, our members Days” at State Capitols in Maryland,
ing paper recovery for recycling and chose to set the bar higher with a new Washington and Oregon. In meetings,
expanding sustainable forestry practices. goal of reaching 20 percent reduction briefings and presentation, we illustrat-
Additionally, member companies have by 2020, from the original baseline ed to policy makers that sustainability
attained laudable greenhouse of 2005. gains — and GHG emission reductions
gas (GHG) emission reductions and AF&PA announced the new bench- in particular — can be reached with-
set a new GHG reduction goal for mark on February 2 and will be sup- out expensive and complicated regula-
the future — a result that deserves a porting our manufacturers’ efforts by tory policy.
seat in the spotlight. advocating for policies that allow them With the Printing and Graphics
20 M A R C H / A P R I L 2 0 1 7policy matters
Association MidAtlantic, we met with Our sustainability story is worth tissue and wood products manufacturing
legislators in Annapolis, Maryland on sharing, over and over again, in the industry through fact-based public policy
January 31. In Olympia, Washington, hopes of inspiring more manufacturers and marketplace advocacy.
we joined forces with the Northwest in our sector and others to follow suit. The forest products industry accounts for
Pulp and Paper Association and the You can count on us keep telling it. approximately 4 percent of the total U.S.
Washington Forest Protection Assoc- The American Forest & Paper manufacturing GDP, manufactures over $200
iation on February 8 to do the same. Association (AF&PA) serves to advance billion in products annually, and employs
And, on March 7, in Salem, Oregon, a sustainable U.S. pulp, paper, packaging, approximately 900,000 men and women.
we collaborated with the Oregon
Forest Industries Council and the
Northwest Pulp and Paper Association
to share our GHG reduction accom-
plishments to date and goal for the
road ahead.
The results we presented displayed
a common thread woven across the
industry. Efficient production and use
of large quantities of carbon-neutral
biomass energy, sustainable forest
management and procurement prac-
tices, wise use of water and paper
recycling are among the steps that
can make burdensome regulations
unnecessary.
We continue to oppose overly
burdensome regulations like the
Environmental Protection Agency’s FMW Blended Bed Stacker Reclaimer Systems
Clean Power Plan. In our book, this
EPA rule seeks emissions reductions 2000 2006 2016 TODAY
that are beyond the agency’s legal
authority and could increase energy FMW introduces the world‘s North America‘s 42 systems Put our experience
costs, decrease the reliability of the first 360° Blended Bed 1st Blended-Bed worldwide sold
to work for YOUR
Stacker/Reclaimer Stacker/Reclaimer (13 in US)
electric system and set adverse prec- (6 systems sold within System (Oregon) project.
edent for potential GHG regulation months)
of our industry.
At the federal level, we also remain
committed to reaching an effective
FMW - The Stacker/Reclaimer-folks:
legislative solution that recognizes the
carbon benefits of biomass energy in
forest products manufacturing facilities.
We hope that the regional and state
lawmakers who are considering or
Walter D. Lampp Martin Größ Herbert Schibich Wolfgang Berger
implementing steps to reduce GHG (North American Sales Managing Director Senior Technical Senior Service
emissions recognize the success of Manager) Advisor Advisor
( +1 706 829-3337 ( +43 2743 82450 or welcome@fmw.co.at
market-driven and voluntary steps w.lampp@fmw.co.at
to reduce them. To policy makers on
Capitol Hill, we say the same. we know how we know how
MARCH/APRIL 2017 21market grade
Uncoated Freesheet Market Fights to
Regain Balance against Drop in Demand
North American uncoated freesheet demand contracted further in 2016 and
it’s expected to shrink further this year. The market was relatively in balance
through mid-2016 before weakening and likely requiring additional capacity
withdrawals to sustain operating rates. On the bright side, demand for
uncoated papers has held up better than other graphic grades.
By Harold M. Cody
North American uncoated freesheet
markets haven’t really made much noise Imports from China
in recent months so it’s really a case of and Indonesia, where
whether you view this segment of the tariffs were implement-
industry from a “glass half full or glass ed, fell from roughly
half empty” perspective. The market 750,000 tons in 2015
continues to fight falling demand as to under 400,000 tons
technology replaces or steadily reduces last year. However,
many common uses for office and print- imports from other
ing papers. However, there were also countries such as
selected bright spots relating to demand Portugal and Brazil
in recent months, and while prices rose and partially
slipped and gave back some gains from offset decreases from
last year, mills remain profitable. these areas.
Nevertheless, uncoated freesheet
demand in North America continued to paper/copy paper, is estimated to have (ends September 2016), standard mail
decline last year, falling 4% in 2016 vs. declined by 4% or more. volume by weight rose 0.2% compared
2015. This follows on the heels of rela- Total North American demand is cur- to 2015, while pieces mailed rose 1.0%.
tively flat demand in 2015 as use stabi- rently about 8 million tons with business In contrast, first class mail posted declines
lized after a decline of over 5% in 2014. papers (cut-size grades) accounting for of 1.3% and 1.9%, respectively, in weight
about 3.8 million tons. Other major seg- and pieces, compared to 2015. In first
VARYING DEMAND ments include: offset, 1.7 million tons; quarter 2017 (ending December 2016),
The decrease varied by individual envelope 0.75 million tons; and form standard mail volume was off 3.7% by
sector/use with more modest declines bond, 0.5 million tons. The decline in weight, but the number of pieces rose
or even flat demand posted for grades uncoated freesheet demand was bet- by 1.3% vs. the prior year. The improve-
such as envelope and offset compared to ment in standard mail is in contrast to
ter than for grades such as coated and
a larger contraction for business papers the generally steady decline in all mail
uncoated mechanical papers, while coat-
and other grades. It’s not clear why these volume posted over the last several years.
ed freesheet posted a smaller decline.
uses did better, but likely reasons include One key indicator of uncoated IMPORT TARIFFS PARTIALLY
economic growth and employment freesheet use is U.S. postal mail data EFFECTIVE
gains. Demand in the largest segment, which showed some surprisingly good In our last report we discussed the
business grades, which includes cut-size results last year. For fiscal year 2016 importance of uncoated freesheet trade
22 M A R C H / A P R I L 2 0 1 7market grade
trends and in particular the impact of second quarter. However, prices retreat- the merger of Staples and Office Depot
tariffs imposed on some imported cut ed modestly in the September/October failed. According to estimates the two
size paper. This was a major event, but period and weakened again in early firms buy over 40% of the cut size paper
while the impact has been clear the 2017 as it’s reported that prices slipped sold in the U.S.
results have been a bit mixed. about $20/ ton on cut-size grades and With demand expected to decline
Tariffs have cut import tonnage from offset rolls. further in 2017 it’s expected that addi-
some areas and overall. For example, in A key reason for the price gains was tional capacity shuts will be needed oth-
2014 and in early 2015 cut size imports that U.S. capacity fell by an estimated erwise already weak prices will continue
rose to almost 25% of demand but they 2% last year vs. little loss in 2015. This to stumble as operating rates struggle
fell back to under 15% due to tariffs. was mainly due to Domtar’s $160 to hit the low nineties. Price pressures,
Imports from China and Indonesia, million conversion of PM 64 at the while they may be a bit reduced never-
where tariffs were implemented, fell Ashdown mill to fluff pulp as they move theless continue, owing to imports from
from roughly 750,000 tons in 2015 to assets from a declining market to one Europe and South America, as offshore
under 400,000 tons last year. However, showing solid growth. The conversion mills take advantage of the relatively
imports from other countries such as came online in mid-2016 and reduced high prices in the US owing to the
Portugal and Brazil rose and partially uncoated free capacity by 364,000 tpy. strong dollar. The key in 2017 and next
offset decreases from these areas. The project included a new wet end, year will be matching supply to demand.
PRICING A MIXED BAG DESPITE upgraded the dryer can section, new reel A 4% decline in use equals roughly
CAPACITY CUTS and winder and a new cutter lay boy 320,000 tons of capacity.
In first half 2016, capacity shuts, and bale handling line.
lower imports due to tariffs and steady Uncoated freesheet markets, at least
Harold Cody is a contributing writer for
demand led to moderate improvement from a mill perspective, were given PaperAge. He can be reached by email at:
and uncoated freesheet prices rose in the some other good news last year when HaroldCody@paperage.com.
PAPER TUBE & CORE
MARCH/APRIL 2017 23industry recognition
Mohawk’s Tom O’Connor Jr. and Ted O’Connor
Earn AIPPM’s 2017 Peyton Shaner Award
Mohawk announced that Tom O’Connor Association and on the boards of the American Forest
Jr., Mohawk’s CEO and Ted O’Connor, Products Association, St. Gregory’s School, and the Advisory
the company’s Senior Vice President Board of M&T Bank. He is also a former member of The
and General Manager of Envelopes and Capital Region Economic Development Council.
Converting, have been named 2017 Ted O’Connor has been in the paper business on and off
Peyton Shaner Award recipients by the since 1980. From 1980-1982 he worked as a sales rep for the
Tom O’Connor Jr Association of Independent Printing Paper Carter Rice Paper Company. In 1982, Ted joined Mohawk
Merchants (AIPPM). Fine Papers as a specification sales rep for the New York City
The Peyton Shaner award was estab- market and became the District Sales Manager for upstate
lished to commemorate the founder of New York and Canada in 1985. He was promoted to National
AIPPM. The recipients are recognized as Sales Manager in 1987.
someone who has shared Shaner’s passion In 1992, Ted left Mohawk to work in Bond Sales for
for the industry. Lehman Brothers in New York City, and returned to Mohawk
Ted O’Connor Tom O’Connor Jr. joined Mohawk in in 2008 as National Sales Manager for the Eastern Region.
1986 and was named Chairman and CEO in 2004. As CEO, In 2011, he was promoted to Senior VP Sales in the U.S. and
Tom doubled Mohawk’s business and positioned the organization Canada as well as Mohawk’s envelope business.
for the future by leading Mohawk into new areas of growth. Ted was promoted to his current position as Senior VP and
Tom has served as chairman of the National Paper Trade GM, Mohawk Envelope and Converting in 2016.
24 M A R C H / A P R I L 2 0 1 7You can also read
