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NOVEMBER/DECEMBER 2015
www.paperage.com
PAPERMAKING 4.0Bringing together contemporary automation, data exchange and manufacturing technologies
MARKET PULPExchange rates and sluggish demand drive dip in pulp prices
© 2015 Buckman Laboratories International, Inc. All rights reserved. Above photo: light micrograph of pine stem cross section.
You don’t just want to manufacture pulp. You want to make it more profitable and sustainable. That’s why Buckman offers a total solution with technical expertise, advanced chemistries and greener technologies for every phase of your pulp operation, including:
We can help you save energy, lower costs, enhance quality and protect the environment. Learn more. Contact your Buckman representative or visit buckman.com.
PULP SOLUTIONS to take you from wood chips to sheet. And from investment to profit.
• Washing aids • Pitch control • Scale control
• Cooking aids • Metals management • Enzymatic bleach boosting
• Lime mud dewatering • Green liquor clarification
c o n t e n t sNOVEMBER/DECEMBER 2015, Volume 131, Number 6
F E AT U R E S
20 Papermaking 4.0 – Networked Solutions Optimize Paper Manufacturing
Industry 4.0, Big Data or the Internet of Things — the networking of processes and communication between machines — are what will shape the future. Digital advances are making it possible, especially a powerful and widely accessible Internet.
24 The Fragmented European Tissue and Towel Business
Flat market conditions create an environment where profitable growth is more likely to come from M&A than from organic expansion. Most European M&A in the tissue and towel market will have to be driven by efficiencies and synergies from technology, cost-sharing, brands, low-cost platforms, etc.
26 Purge Your Nozzle Woes Away Plugged spray nozzles on a paper machine are not
only frustrating, they negatively impact the machine’s performance and product quality. But keeping those nozzles clean may be simpler than you thought.
C O L U M N S
18 Market Grade: Market Pulp A sluggish global economy coupled with the con-tinued strength of the U.S. dollar is contributing to the subdued short term outlook for and recent drop in pulp prices. However, while prices may remain weak into early 2016, limited capacity growth coupled with rising demand could set the stage for a rebound in prices next year.
30 AF&PA Sustainability Awards: Honoring Members’ Accomplishments AF&PA recently recognized seven member companies for their commitment to sustainability through the 2015 AF&PA Sustainability Awards. The awards recognize exemplary sustainability achievements in the paper and wood products manufacturing industry.
D E P A R T M E N T S
4 Editor’s Note
6 Industry News
16 Of Interest Lexus creates life-size car crafted from recyclable
cardboard sheets.
14 People
15 Calendar
S E R V I C E S
29 Classified Ads
29 Index of Advertisers
20
3PaperAge NOVEMBER/DECEMBER 2015
4
By John O’Brien, Managing Editor [email protected]
There’s been a lot reported about the best way for
children and adults to not only comprehend what
they read, but also enjoy the act of reading in itself.
The argument, of course, pits bricks and mortar
paper against the dazzle of digital. But a portion
of the digital tide is beginning to ebb, and there is
growing evidence that the two ‘combatants’ may
be able to coexist comfortably in the future.
A report from the Organisation for Economic
Co-operation and Development (OECD) examined
the impact of school technology on international
test results, such as the Pisa tests taken in more than
70 countries and tests measuring digital skills. The
report says education systems which have invested
heavily in information and communications tech-
nology have seen “no noticeable improvement” in
Pisa test results for reading, mathematics or science.
The OECD goes on to say that frequent use of
computers in schools is more likely to be associated
with lower results. OECD’s education director,
Andreas Schleicher pointed out that school tech-
nology had raised “too many false hopes.”
“If you look at the best-performing education
systems, such as those in East Asia, they’ve been
very cautious about using technology in their
classrooms,” said Schleicher. “Those students who
use tablets and computers very often tend to do
worse than those who use them moderately.”
Yet another report shows grade school children
still choose paper over digital for learning. According
to the Paper and Packaging Board’s 2015 Annual
Back-to-School Report, which surveyed 3,200 stu-
dents, parents and educators, 94 percent of students
say it’s easier to concentrate while reading a paper
copy than a digital version, and 80 percent of K-12
teachers say their students comprehend information
better when they read on paper.
And in higher education, more and more studies
show that college students prefer print over ebooks.
In a survey conducted by Direct Textbook, seven
out of ten college students prefer print textbooks
over ebooks simply because “print textbooks are
easier to read” and “reading ebooks makes their
eyes hurt.”
Michael Rosenwald, a reporter for The Washing-
ton Post, wrote a story titled, “Why digital natives
prefer reading in print. Yes, you read that right.”
The following is an excerpt from the story, which
very nicely puts ‘print vs. digital’ into perspective.
“Textbook makers, bookstore owners and col-
lege student surveys all say millennials still strongly
prefer print for pleasure and learning, a bias that
surprises reading experts given the same group’s
proclivity to consume most other content digitally.
A University of Washington pilot study of digital
textbooks found that a quarter of students still
bought print versions of e-textbooks that they
were given for free.”
Naomi S. Baron, an American University lin-
guist who studies digital communication (she also
contributed to the 2015 Annual Back-to-School
Report), is quoted in Rosenwald’s story in refer-
ence to millennials. “These are people who aren’t
supposed to remember what it’s like to even smell
books. It’s quite astounding.”
In closing, I have to say I like my smart phone
and computer and would be lost without them and
the instant access they provide to, well, everything.
On the other hand I also like reading paper versions
of magazines, books and newspapers just because
doing so is more comfortable for me. And that’s
what it’s all about, figuring out what works best,
even if it’s as old fashioned as picking up a pencil
and paper.
From everyone at PaperAge, have a safe and happy
holiday season, and a fantastic start to the New Year.
Learning Something New – the Old Fashioned Way
NOVEMBER/DECEMBER 2015VOLUME 131, NO. 6
EDITOR IN CHIEF Jack O’Brien
PUBLISHER Michael C. O’Brien
MANAGING EDITOR John F. O’Brien, Jr.
CONTRIBUTING EDITOR Harold M. Cody
CONTRIBUTING WRITER David Price
CONTRIBUTING WRITER John Yolton
LAYOUT & DESIGN George H. Dean Co.
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email: [email protected]
Web Site: www.paperage.com
Copyright ©2015 by O’Brien Publications, Inc. All rights
reserved. PaperAge (ISSN:0031-1081) is published six
times per year with those issues being January/February,
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4 NOVEMBER/DECEMBER 2015 PaperAge
editors note
Thiele Kaolin Company • Sandersville, GA(877) 544-3322 • www.thielekaolin.com
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additive! DEKA can replace up to half of costly
surfactants, improve pulp brightness, and lower
ink residual numbers as well.
Sound too good to be true? In documented
mill tests, DEKA has replaced fully 50 percent of
expensive surfactant dosage without adversely
affecting deinking performance. And laboratory
studies prove DEKA usage can increase pulp
brightness up to 5 GE brightness points. Plus,
additional lab deinking tests have demonstrated
ERIC values lowered by up to 74 percent.
DEKA is also versatile—flotation or wash
deinking processes both benefit from this
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Contact Thiele today for details on how your
deinking process might benefit from using DEKA.
We’ll be glad to show you the test results and set
up a trial in your mill.
How deinkerssave three wayswith one additive
Thiele_Piggy PaperAge_0312_R1 3/21/12 3:35 PM Page 1
6 NOVEMBER/DECEMBER 2015 PaperAge
industry news
NORTH AMERICA
SCA to Acquire Wausau Paper for $513 Million
SCA announced that it will acquire Wausau Paper for $10.25 per share or total consideration of $513 million in cash. The boards of directors of both companies have unanimously approved a defini-tive merger agreement. The merger consideration represents a premium of 40.6% to Wausau Paper’s closing price on October 12, 2015 and a premium of 11.3% to the Wausau Paper 52-week volume weighted average price. SCA has funding available.
Wausau Paper is one of the largest Away-from-Home tissue companies in North America. With approximate ly 900 employees, the company manufactures and mar-kets Away-from-Home towel and tissue prod-
ucts along with soap and dispensing systems through its Artisan™, DublNature®, DublSoft® and EcoSoft® brands. Following completion of the acquisition, SCA will continue to honor Wausau Paper’s existing customer contracts and programs. “The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America,” said Magnus Groth, President and CEO of SCA. “The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region.” Michael C. Burandt, Chairman and CEO of Wausau Paper, commented, “Our Board has undertaken a thorough process to explore all of Wausau Paper’s options and has determined SCA’s offer creates substantial value and is in the best interests of the company and its shareholders. Our customers will benefit from expanded products and services from a company that shares similar values around customer service and sustainability.” Wausau Paper reported sales of $175 million for the first half of 2015 and sales of $532 million for 2014. The acquisition is expected to generate annual synergies amount-ing to approximately $40 million with full effect three years after closing. Synergies are expected in sourcing, production, logistics, reduced imports, increased volumes of premium products and reduced SG&A costs, SCA said. The restructuring costs are expected to amount to approximately USD 50 million, SCA added. The completion of the deal, which expected to take place during the first quarter of 2016, is subject to Wausau Paper shareholder and regulatory approvals.
Tranlin Breaks Ground in Virginia for $2 Billion Tissue Paper and Fertilizer Plant
Tranlin, Inc., the U.S. subsidiary of Shandong Tranlin Paper Co., Ltd. (a Chinese pulp and paper company), officially broke ground on October 22 for its first U.S. operation — a $2 billion manufacturing facility. Tranlin’s investment is located in Chesterfield, Virginia and will generate more than 2,000 direct jobs in Virginia by 2020, the company said. According to Tranlin, the future facility will use proprietary technology to produce tree-free, natural color, straw fiber paper tissue products made exclusively from agricultural field waste such as wheat straw and corn stalks. In addition, the facility will produce humus-based organic fertilizer products using residues from the papermaking process. “We are even more confident now than we were a year ago that our project is being built on a solid foundation that will allow it to be successful in Chesterfield, Virginia,” said Hongfa Li, the Chair-man and President of Shandong Tranlin Paper Company Limited. “After another year of extraordinary work by the entire Tranlin team and many supportive friends in Virginia, we know that all the key factors including environmental, legal, cultural, market, engineering and human resources are in place.” Jerry Peng, the Chairman and CEO of Tranlin, Inc., said, “We are so excited to be embarking on this next phase of our work together in Virginia, and more importantly, we are so grateful of and encour-aged by the supportive community in Chesterfield and Virginia. It is clear we chose wisely when we chose Virginia and Chesterfield. “We will continue the close collaboration with all the stakeholders here. It is our goal to build a very sustainable partnership with the local community, the farming sector and our vendors. “Over the past year we have built an excellent core team who have driven the project this far. We expect to accelerate our recruit-ing and project development,” Mr. Peng added. Tranlin noted that it has already begun working with many farmers in the region to procure needed agricultural products for manufacturing operations.
Hongfa Li, Chairman, Shandong Tranlin Paper Company; and Jerry Peng, Chairman and CEO, Tranlin, Inc., spoke at the ground-breaking ceremony.
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8 NOVEMBER/DECEMBER 2015 PaperAge
Georgia-Pacific to Invest $110 at Alabama River Cellulose MillGeorgia-Pacif ic has
announced plans for
$110 million in upgrades
to its Alabama River
Cellulose (ARC) mill.
The investments include
replacing one of the mill’s
two existing wood yards
that process incoming
logs, upgrading the other
wood yard and a major
upgrade to one of the mill’s machines that produce pulp.
According to G-P, the ARC project will allow the mill to better
serve customer needs and remain competitive. Work on the project
is slated to begin early next year.
“We are pleased to announce this major investment at Alabama
River Cellulose,” said Jim Hannan, President and CEO of Georgia-
Pacific. “This reflects our company’s strong commitment to our
cellulose business, to the global competitiveness of skilled Georgia-
Pacific employees, to the states that understand the value we create
and to the support of the communities where we operate.”
Tim McIlwain, Vice President of Operations at Alabama River
Cellulose, commented, “Our Alabama River Cellulose team is proud
of our company’s ongoing investments in our facility and the faith
in our team to complete these investments and better serve our
customers. Georgia-Pacific’s top priority is to operate the ARC mill
safely and reliably. These updates allow our mill team to continue to
operate with the highest safety standards while efficiently providing
a quality product to our customers.”
The ARC facility includes two independent wood yards — ARC7 and
ARC8 — that process over 4.5 million tons of wood per year making
the facility one of the largest wood consumers in North America.
The facility has two machines that have the capacity to produce
hardwood bale pulp, softwood bale pulp, and roll fluff pulp.
Graphic Packaging Acquires Converting Assets of Carded GraphicsGraphic Packaging International
recently acquired the converting
assets of Staunton, Virginiabased
Carded Graphics, a printed folding
carton producer with a strong regional
position in the food, craft beer and
other consumer product markets.
“The acquisition of Carded Graphics’
assets represents a continuation of our
strategy to grow in key geographies
and end markets,” said Michael Doss, Graphic Packaging’s President
and Chief Operating Officer. “The addition of this state-of-the-art
converting facility increases our east coast presence allowing us to
better service new and existing customers in that region, specifically
the growing craft beer markets.
“We are also pleased to welcome Murry Pitts, President and
CEO of Carded Graphics, and his outstanding leadership team to
the Graphic Packaging team,” Doss added.
The transaction will be funded with existing cash and borrow-
ings from Graphic Packaging’s revolving line of credit.
Cascades Invests $26.4 Million at Drummondville PlantCascades Inc. announced that it is investing $26.4 million at its
Norampac corrugated board conversion plant in Drummondville,
Quebec to install a new corrugator, thus increasing its production
capacity. The current building will also be expanded.
The 45,000 sq. ft. building expansion will be completed in mid-
November and the new corrugator will be operational as of January 2016.
NORTH AMERICAPratt Starts Production at New Recycled Paper Mill in Indiana
Pratt Industries announced on
Oct. 5 that its new $260 million
recycled paper mill in Valparaiso,
Indiana had started production.
The mill, which employs 120
people, has the capacity to produce
370,000 tons per year of recycled
linerboard and corrugated medium.
According to company chairman Anthony Pratt, the mill “repre-
sents the single biggest investment we’ve ever made in the U.S.,” and
“the new mill would also increase the company’s annual revenues
from approximately $2.1 billion to approaching $2.5 billion.”
The mill, located 50 miles southeast of Chicago, is on the same
site as Pratt’s corrugated box plant. It will supply that facility as well
the company’s other box-making sites throughout the region with
recycled paper.
Pratt also noted that the company will open a new $50 million
corrugated box plant in Beloit, Wisconsin in the fourth quarter.
The company now has some 130 facilities in the U.S.
industry news
(l-r) Jim Hannan, President and CEO, G-P; Robert Bentley, Governor of Alabama; and Tim McIlwain, Alabama River Cellulose VP of Operations.
© 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
*Independent testing by SpencerLab Digital Color Laboratory, commissioned by HP. The full October 2009 report, “Print Quality Analyses – ColorLok Media Evaluation: AiO Printers: Brother MFC-5490CN, Canon PIXMA MX860 & MX7600, Epson WorkForce 600, HP Officejet 6500 and Officejet Pro 8500,” is available for download at spencerlab.com
Looking good on paper matters. ColorLok® Technology gives paper more vivid colors, bolder blacks, and faster drying times.* Learn more at colorlok.com
A NEW LOOK FOR ECO-FRIENDLY PAPER Even recyclable paper looks better than ever, because ColorLok Technology gives printouts on recyclable paper a brighter, richer appearance. Plus, pigments sit at the surface of the paper, making recycling easier. So yes, you can look good and do good.
THE SCIENCE OF WOWING YOUR CUSTOMERSColorLok Technology turns everyday paper into a canvas of possibilities. Additives injected during the paper-making process enable the paper to ”lock” pigments at the surface. Without this technology, paper absorbs pigments deep into the fibers of the paper.
Without ColorLok Technology, pigment sinks into the paper, dulling appearances.
With ColorLok Technology, additives keep color near the surface for bold results.
VIVID COLORS BOLDER BLACKS FASTER DRYING
ECO-FRIENDLY CONSISTENCY
ALL PAPER IS NOT CREATED EQUAL.
10 NOVEMBER/DECEMBER 2015 PaperAge
industry news
MEXICO
Grupo Gondi and WestRock Form Joint Venture in Mexico
Grupo Gondi and WestRock have agreed to combine their opera-tions in Mexico to form a joint ven-ture, creating a leading paper and packaging company in the country.
Grupo Gondi currently operates ten production sites that hold six
paper machines, seven corrugated packaging plants and four modern high graphic folding carton plants with pre-printing capacity. WestRock operates three facilities in Mexico that produce corrugated packaging. WestRock will contribute these facilities, located in Mexicali, Monterrey and Querétaro, and cash to the joint venture in exchange for a 25 percent equity stake in the combined entity, which will operate as Grupo Gondi. As the majority shareholder, the Grupo Gondi senior manage-ment team, led by Eduardo Posada, will manage the joint venture, and WestRock will provide technical and commercial resources to the combination. The business will employ 6,800 people. The joint venture will be implemented as soon as the transac-tion is formally approved by Mexico’s Antitrust Authority, the Comisión Federal de Competencia Económica (COFECE).
EUROPE
BillerudKorsnäs to Close Tervasaari Paper Mill by Q3 2016BillerudKorsnäs announced that it will permanently cease production at its Tervasaari paper mill in Finland no later than the third quarter of 2016. The mill employs about 55 people. The decision was based on unsat-isfactory profitability levels, the company said. The Tervasaari mill operates one paper machine and has the capacity to produce 100,000 tonnes per year of machine glazed (MG) Kraft paper, which is used in applications such as consumer bags, food packaging, envelopes and technical papers. BillerudKorsnäs noted that the paper machine is unintegrated to pulp production, which results in an unfavorable cost position, despite the fact that the machine is among the largest of its kind. In August of this year, BillerudKorsnäs started a feasibility study investigating, among other things, the potential of moving the Tervasaari machine to Skärblacka in Sweden. Skärblacka would offer integration of pulp production and, with the Tervasaari machine, Skärblacka would strengthen its position as one of the world’s most efficient production units for white MG papers. The study is on-going and will be finalized during the first half of 2016, the company said. “The closure of production at Tervasaari is a first step in stream-lining our production structure,” said Christer Simrén, COO and Executive Vice President, BillerudKorsnäs. “There is right now intensive work being done in the form of feasibility studies that will lead us in our further development of our production structure. “The machine in Tervasaari is one of the largest of its kind and our staff has done a great job to improve profitability through creative ideas and committed efforts, but unfortunately this has not been enough due to external factors,” Simrén concluded.
WEPA Starts Up New Tissue Production Line in FranceWEPA Group has successfully started-up a new Toscotec tissue paper production line installed in Lille, France. With a net web width of 2820 mm and a maximum drying capacity of 120 tons per day, the new tissue line has a capacity of 35,000 tons per year. According to Toscotec, the machine is run-ning at the maximum operating speed of 2,000 mpm. The WEPA Group, based in Arnsberg, Germany, produces toilet paper, kitchen roll, pocket tissues, cosmetics tissues, serviettes, industrial rolls and paper towels, and operates 11 plants in Europe.
EUROPE
Metsä Board Installing New Folding Boxboard Machine at Husum MillMetsä Board said that from mid-October through the beginning of January 2016, the company is installing a new folding boxboard machine, BM1, at its Husum mill in Sweden and closing down paper machines PM6 and PM7. The project is a continuation of a EUR 170 million investment program at the Husum mill. Metsä Board noted that it is marketing the new board machine’s 400,000 tonnes per year (tpy) capacity to the Americas, as well as to food service end-uses such as cups, plates and trays globally. Metsä Board has also converted PM8 at Husum (now BM2) for the production of bleached linerboard with a capacity of 300,000 tpy. The board machine’s production is targeted mainly to the Americas and Europe, both for food and general packaging. Based on the company’s increasing linerboard production and the closure of PM6 and PM7, approximately 500,000 tpy of paper production capacity will be removed from the market by the end of 2015. Following the Husum investments, Metsä Board’s paperboard capacity will exceed 2 million tpy, from the beginning of 2016.
INGR-5410_K1_FP_Paper_v2a.indd KEYLINE 1
Saved: 9/10/15 Prepared by: Sarah Elwyn
312-970-5800
CLIENT Ingredion BLEED 9" x 11.0625" CREATIVE DIR Kelley Fead
DESCRIPTION Paper - Innovate faster. TRIM 8.5" x 10.8125" ART DIRECTOR Elisa Ivany
COLORS 4CP LIVE 7.25" x 10" COPYWRITER Annie Busiek
DESTINATION Paper Age LINE SCREEN N/A TRAFFIC Alexis Kuennen
ROUTE SIGNOFF AS_________ AE__________ CD__________ COPY__________ AD__________ AAD__________ PROOF__________ PROD__________
INGR-5410_K1_FP_Paper_v2a.indd 1 9/10/15 1:29 PM
12 NOVEMBER/DECEMBER 2015 PaperAge
industry news
EUROPE
SCA to Close Newsprint Machine at Ortviken Paper Mill
SCA said that it will close down a newsprint machine at its Ort-viken paper mill in Sundsvall, Sweden by the end of 2015. The machine has a capacity of 135,000 tons per year and is the smallest and oldest of the
four paper machines at Ortviken paper mill. “The global demand for publication paper has declined in recent years, particularly for newsprint, and we have weak profitability at Ortviken paper mill,” said Ulf Larsson, President of SCA Forest Products. “By closing down our smallest and oldest paper machine, we will be able to focus on profitable orders for the more efficient paper machines. “Ortviken remains one of the world’s largest publication paper mills and we have the prerequisites to become one of the most competitive. We have developed several new publication paper products, which in a short time have captured considerable market shares in a declining market. We are now focusing on producing and developing profitable publication paper products,” Larsson added. In conjunction with the closure of the paper machine, SCA intends to reduce staffing in production, transport and sales by approximately 95 positions.
UPM Kymi Pulp Mill Expansion Ramping Up on ScheduleUPM said that the ramp-up of an expansion project at its Kymi pulp mill in Finalnd is going well and on schedule. The EUR 160 million project began in the spring of 2014 and is currently in the final stages. Kymi’s new debarking plant started operation in June, the mod-ernization of the softwood fiber line was finished in August, and the biggest segment of the project, the new pulp drying machine, started-up in August-September — about one month ahead of schedule. During the ramp-up, pulp production has exceeded expecta-tions and the quality of pulp has improved, the company said. UPM noted that the investment in the Kymi pulp mill strength-ens the company’s position in the growing end-use sectors of the global pulp market. As the result of the investment, annual produc-tion capacity at Kymi will increase by 170,000 tonnes per year to 700,000 tpy of bleached northern softwood and birch pulp.
ASIA
International Paper to Exit Chinese Coated Board Joint Venture, IP-SunInternational Paper on Oct. 9 announced that it entered into a definitive agreement with its Chinese coated board joint venture partner, Shandong Sun Holding Group Co., Ltd., to sell its 55% equity interest in the joint venture (IP-Sun JV). As consideration for the sale, International Paper will receive approximately US$23 million (RMB 149 million) in cash. Additionally, International Paper will remove approximately $400 million of currently outstanding debt from its balance sheet, along with the other assets and liabilities of the IP-Sun JV, follow-ing completion of the transaction. International Paper also announced that it is pursuing strategic options for its corrugated box business in China and South East Asia and has signed a non-binding letter of intent with a prospec-tive buyer based in China. “International Paper undertook a thorough review of its posi-tion in serving the Chinese and Asian markets,” said Mark Sutton, International Paper’s Chairman and CEO. “The Company remains committed to serving these very important markets, but concluded we could be more effective supplying this region with globally competitive products primarily through our Ilim joint venture in Russia and from the U.S.” The IP-Sun JV transaction is expected to be completed within the next five months, subject to satisfaction of closing conditions, including obtaining required Chinese governmental approvals. International Paper estimates the agreement to sell the Chinese coated board joint venture, which started in 2006, will result in net pre-tax noncash asset write-offs of approximately US$200 million to be recorded in the third quarter of 2015.
Mondi Group to Acquire KSPMondi Group signed an agreement for the acquisition of 95% of the outstanding share capital in KSP, Co. and related interests. KSP is a flexible packaging company that specializes in high barrier film lamination and converting for commercialized applica-tions for the food and beverage industries. The company’s main manufacturing site is located in South Korea and it holds an interest in a plant near Bangkok, Thailand. KSP exports about two thirds of its production — primarily to the US, Europe and other Asian countries. For the twelve months ended December 31, 2014, KSP generated revenues of approxi-mately US$50 million. The deal remains subject to regulatory clearance and other customary closing conditions and is expected to be completed during the fourth quarter of 2015.
13PaperAge NOVEMBER/DECEMBER 2015
industry news
Kadant Awarded $7 Million Order for Recycled Fiber Processing Line in EuropeKadant announced that it received an order totaling approximately $7 million from a paper producer in Southern Europe for recycled fiber processing equipment to be used in the production of packaging. “We are pleased to have been selected to provide this turn-key recycled fiber processing line for a major rebuild project in Southern Europe,” said Jonathan Painter, President and CEO of Kadant. “This rebuild is significant in that it is part of a broader trend of converting a machine’s production from printing and writing grades to containerboard used for packaging. “As these types of conversions make increasingly more economic sense to the paper industry, Kadant is well positioned to leverage its expertise and broad product offerings used in containerboard production,” he added.
Valmet will deliver key technology to Clearwater Paper’s Lewiston, Idaho, pulp and paper mill upgrade project. Valmet’s delivery includes a CompactCooking G2 pulp cooking system, a new plant for generating polysulfide and a minor upgrade of existing bleach plant. Construction of the upgrade project got underway in October and completion is expected in September 2017. This delivery is part of Clearwater Paper’s $160 million project to install a continuous pulp digester that will replace 12 batch digesters. Benefits from the project include significant reduction in air emissions, improved pulp quality, increased production and a more efficient utilization of wood chips. John Deuser, Project Manager in Lewiston, said, “The efficient uti-lization of raw material is a vital part from a sustainability perspective. We decided to base our new cooking process on polysulfide to optimize yield. The concept and process included in the CompactCooking system from Valmet was a perfect match to our targets.”
INDUSTRY SUPPLIERSValmet to Deliver New Pulp Cooking System to Clearwater Paper
Pöyry Awarded Paper Machine Engineering Contract from APRIL Pöyry has been awarded a detailed engineering services contract from APRIL for the fine paper machine project in Pangkalan Kerinci site in Riau Province, Indonesia. The contract covers detailed engineering services for the new paper machine and Balance of Plant (BOP). The new paper machine, PM3, will use 100% plantation fiber from existing sources and produce 330,000 tpy of digital-ready fine papers, increasing APRIL Group’s existing production capacity to 1.150 million tpy with much of the new capacity destined for export markets. “The global demand for digital paper products continues to grow and APRIL aims to ensure we remain in position to leverage this opportunity,” said Tony Wenas, Managing Director of APRIL Group Indonesia. “Our product, PaperOne, offers the high quality that the digital market needs and is made from 100% renewable fiber from certified plantations.” Start-up of the new machine is scheduled for the third quarter of 2016.
14 NOVEMBER/DECEMBER 2015 PaperAge
PA P E R
n Clearwater Paper announced the retirement of Danny G. Johansen as president of the company’s pulp and paper-board division. Patrick T. Burke, who currently serves as the company’s president of the consumer products divi-sion, will assume the newly created consolidated role of group president overseeing both the pulp and paperboard and consumer products businesses. Johansen is expected to continue to serve the company until the end of March 2016 to assist with the transition.
n Greif, Inc. announced that David Fischer stepped down as President and Chief Executive Officer and as a member of the Board of Directors of the company on October 31. Pete Watson, who has served as Chief Operating Officer of the company since January 2014, suc-ceeds him. Fischer will remain with the company through December 31, 2015 to assist with the transition process. From September 2012 until December 2013, Watson was the Vice President and Group President, Paper Packaging & Services, Global Sourcing and Supply Chain and Greif Business System. Since he joined the company in 1999, Watson has served in a variety of positions, including Division President, Paper Packaging & Services, and President of CorrChoice (a division of the company).
n PaperWorks announced that Brandon Clairmont has joined the company as Senior Vice President of Packaging Sales. Clairmont has more than two decades of experience with food manufacturing, foodservice and packaging companies, most recently as vice president of sales for McCormick & Company, Inc. His career has included sales and account management leadership roles at Command Packaging, Huhtamaki, Sweetheart Cup and Gilbert Foods.
n SCA has appointed Anna Sävinger-Åslund as its new Senior Vice President, Group Function Human Resources. Formerly, she held the position of Vice President Human Resources – SCA Incontinence Care Europe.
n WestRock announced that John Fortson has has been named Chief Financial Officer of Ingevity, the company’s spe-cialty chemicals business. Fortson comes to Ingevity from AAR Corporation, a leading global aviation and aerospace company, where he served as CFO and treasurer.
INDUSTRY SUPPLIER
n Kemira has appointed Olli Turunen as Vice President, Investor Relations, effective November 17. Turunen has previously worked for Sanoma Oyj, an international media company, as Head of Investor Relations.
RECOGNITIONn Pete Grogan of International Paper is the
recipient of the prestigious Phil Alpert Memorial Award by The Paper Stock Industries (PSI) Chapter of the Institute of Scrap Recycling Industries (ISRI). The award was named in tribute to Phil Alpert, a former president of the PSI chapter. The recipient of the Alpert Award must have been involved with the PSI Chapter for at least 10 years as well as made a significant contribution to the overall betterment of the paper recycling industry.
Grogan has been involved in the recycling industry for more than 40 years, working tirelessly for the success of the paper and recycling industries. He has worked in a number of capacities in the industry, including at R.W. Beck and Associates, Weyerhaeuser Containerboard and Recycling and most recently with International Paper.
n Valmet has appointed Kari Saarinen as Chief Financial Officer, effective November 15. He succeeds Markku Honkasalo, who is leaving the company at the end of November. Previously, Saarinen held the position of Senior Vice President, Strategy and Operational Development. He will continue as the member of Valmet’s Executive Team.
David Fischer
John Fortson
Olli Turunen
Pete Grogan
Pete Watson
Kari Saarinen
Brandon Clairmont
Anna Sävinger-Åslund
people
15PaperAge NOVEMBER/DECEMBER 2015
calendar
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NOVEMBER 17-19, 2015European Paper WeekCEPIThon Hotel EUBrussels, Belgiumwww.cepi.org/epw
JANUARY 19-21, 201657th Annual Paper Distribution ConferenceNPTARitz Carlton Golf ResortNaples, Florida, United Stateswww.gonpta.com
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MAY 15-18, 2016PaperCon 2016TAPPIDuke Energy Convention CenterCincinnati, Ohio, United Stateswww.papercon.com
16 NOVEMBER/DECEMBER 2015 PaperAge
There has never been a Lexus like it: sheet metal, glass and plastics have been set aside for the creation of a one-off life-size model crafted in precision-cut cardboard. The remarkable Lexus Origami Car is a faithful replica of the new IS saloon, produced as a celebration of the human craftsmanship skills that go into every car Lexus makes. The skilled men and women – known as takumi – who work on the Lexus production lines, hone their dexterity skills by learning how to fold paper into an origami model cat, using only their non-dominant hand. The Origami Car takes the spirit of this talent to a far higher level, while also embracing the spirit of Lexus’s Creating Amazing global brand campaign. The Origami Car has a fully fitted interior, func-tioning doors, headlights and rolling wheels. Thanks to an electric motor mounted on its steel and alumi-num frame, it can even be driven. In terms of size and complexity, the project was an unprec-edented undertaking for LaserCut Works and Scales and Models, UK-based specialist companies with extensive experi-ence in the design and creation of prototypes, architectural models and bespoke commissions. Ruben Marcos, Scales and Models Company founder and director explained: “This was a very demanding job, with five people involved in the digital design, modelling, laser cutting and assembly.”
The creative process presented the team with a series of tough challenges: “The seats took a few attempts to get just right and the wheels required a lot of refining. Once we could see the physical pieces taking shape, we could identify where we needed to make improvements – as with anything, there were some elements of trial and error, but as we had all the resources we needed in-house, this made the changes easier to produce.” Lexus provided the team with a digital 3D model of the IS, which was then divided into a series of principal parts, such as the main body, dashboard, seats and wheels. These were then digitally rendered in 10mm ‘slices’ to provide the two-dimensional profiles needed for the laser cutting of each of the 1,700 sheets of 10mm-thick of cardboard – supplied by packaging experts DS Smith. Each layer was given its own reference number to help ensure it was assembled in the right sequence and the entire assembly was done by hand. A water-based/wood glue was used, which had to be left to set for 10 minutes after each application. Accuracy was vital, as changes couldn’t be made once the glue had dried. In all, the Origami Car took three months to build. “In effect we created our own vehicle production line,” said Ruben. “There was a lot of repetition in the process and we had to work with military precision, just like the teams that make the real Lexus cars.”
of interest
Lexus Creates Life-size Car Crafted from Recyclable Cardboard Sheets
A full size Lexus IS made of 1,700 laser-cut sheets of corrugated board on a steel and aluminum frame.
The Origami Car has a fully fitted interior, functioning doors, headlights and rolling wheels
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18 NOVEMBER/DECEMBER 2015 PaperAge
The pulp market has really been a mixed bag in recent months. Overall
demand has been increasing, but growth varies widely worldwide. Pricing has sim-ilarly varied widely by grade and region. For example, softwood pricing has been steadier in North America although it has slipped a bit this year, while soft-wood spot prices in Asia fell consider-ably for several months before flattening out this past summer. Recently, however, prices began a more widespread slide in North America and overseas for both softwood and hardwood grades. The question is whether they continue to fall or whether it’s just a short term blip. As noted, while demand for market pulp has continued to grow on a global basis, growth has varied widely by region, and it has been considerably stronger for hardwood than softwood. In 2014, mar-ket pulp world shipments grew 2% to 45.5 million tonnes. Shipments to N.A. fell 0.2% while shipments to Europe grew modestly, rising 0.7% to 14.3 mil-lion tonnes. Shipments to China posted a 2.5% gain to 10.7 million tons. Shipments to other regions rose 4.8% to 12.8 million tons. At the end of 2014, inventories stood at 34 days or supply for all grades. This trend has continued into 2015, driven by growing world demand for both long and short fiber for use in tis-
sue and printing and writing grades. Tissue has become one of the largest markets globally and has been a key factor sustaining market pulp demand growth in emerging markets such as China. Printing and writing demand has continued to contract in North America and Europe, but in other regions
Exchange Rates and Sluggish Demand Drive Dip In Pulp PricesA sluggish global economy coupled with the continued strength of the U.S. dollar is contributing to the subdued short term outlook for and recent drop in pulp prices. However, while prices may remain weak into early 2016, limited capacity growth coupled with rising demand could set the stage for a rebound in prices next year.
By Harold M. Cody
market grade
Global chemical pulp demand is up 4% through the third quarter of 2015 with softwood shipments up 1% and hardwood up 7%.
19PaperAge NOVEMBER/DECEMBER 2015
market grade
these grades continue to grow. Global chemical pulp demand is up 4% through the third quarter of 2015 with softwood shipments up 1% and hardwood up 7%. Chinese demand is up 13%. The concern going forward is the direction of a sluggish world economy and fears it could drag down pulp demand. After a slow start the US economy picked up a bit in the second quarter, giving the first half of the year a solid, but certainly not stellar, annualized growth rate of 2.3 percent — only slightly below the 2.4% rate in 2014. However, weakness continued in several sectors and the trade bal-ance shifted to favor imports owing to the strength of the U.S. dollar. The European economy appears to actually be in decent shape overall but there are worrisome concerns about the impact of a large surge of immigrants and continued problems in areas such as Greece. Certainly, China is the biggest unknown. In both the first and second quarters, real GDP was up 7.0 percent from a year earlier — the slowest rate of growth since 2009 — which sent shivers through the global economy. In addition, industrial production has been rising at a low rate not seen since 2009. Exports have declined in part due to weak global demand, but also due to exchange rates as the dollar’s rise have sent the renminbi soaring against the euro and the Japanese yen. As noted, prices have been weak particularly since mid-summer of this year. NBSK prices have fallen considerably in Asia where they are down from the $750 level posted early this year to $650 or lower recently, while North American NBSK list prices fell in early November for the first time in several months to the mid $950s range after riding at over $1,000 for most of 2014 and about $980 in the first half of the year. Hardwood has been a different story as prices improved in the first half of 2015 from low levels reached last fall before they dipped in most regions over the late summer and fall. The weakness in price, however, isn’t solely demand or supply driven; rather it’s in part in response to a huge swing over the last year in exchange rates. The strong U.S. dollar has become a key factor for all commodities including market pulp. Both the Euro and Canadian dollar and other currencies have fallen 20-25% from peak levels reached in early 2014 and this has made mills in Canada and other regions very competitive as pulp is priced in dollars. It’s also significantly
raised local currency prices for pulp. However, some of this pressure may have eased, or at least hasn’t gotten any worse. After falling
steadily for several months last year from a level of about 1.4 USD/Euro in early 2014, the Euro has stabilized in recent months at about 1.10. The Canadian dollar has remained very low at about $0.75 to $0.77 since July and has continued to lag year ago levels. Exchange rates have also changed the competitive landscape a bit by putting U.S. mills at a disadvantage.
CAPACITY GROWTHCapacity growth is another factor that’s been a concern, mainly for hardwood pulps, since softwood capacity is flat by comparison. Hardwood capacity is growing most notably for BEK in South America. In fact, in early 2015 there were fears this new capacity would undermine prices more sig-nificantly. As noted, hardwood prices did fall last year, but in early 2015 they recovered. The recent weakness has been modest and thus the capacity has apparently come onto the market more slowly than first envisioned, including CMPC’s 1.3 million tpy mill in Brazil that started up this past sum-mer. In addition, Arauco is scheduled to bring 1.2 million tpy online in Brazil in the fourth quarter. A key factor, however, recently helping to support prices somewhat, or at least avoid a larger slip, has been the shut-down of the huge APRIL hardwood mill in China due to a water shortage.
LOOKING AHEADLooking forward, it appears that prices could continue to slip for the next few months. However, it appears that supply and demand could swing back to favor producers by some-time next year and possibly even continue into 2017. There is only limited softwood capacity scheduled to come online next year and overall market growth may be able to absorb the new hardwood capacity that’s planned. If the global economy can continue to stumble forward and China continues to grow even at reduced rates of “only 7%” annually, pulp demand will slowly expand and operating rates should return to stronger levels that could support a recovery in pricing next year.
Harold Cody is a contributing writer for PaperAge. He can be reached by email at: [email protected].
The weakness in price, however, isn’t solely demand
or supply driven; rather it’s in part in response to a
huge swing over the last year in exchange rates
20 NOVEMBER/DECEMBER 2015 PaperAge
Editor’s note: Industry 4.0 (Industrie 4.0 or the fourth industrial revolution) is a collective term embracing a number of contem-porary automation, data exchange and manufacturing technolo-gies. Industry 4.0 facilitates the vision and execution of a “Smart Factory.” Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decen-tralized decisions. Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real time, and via the Internet of Services, both inter-nal and cross-organizational services are offered and utilized by participants of the value chain.¹
A paper machine that detects a break before it happens; maintenance materials are ordered automatically —
online and on-demand; self-setting machine configuration; the industry is using more and more cyber physical systems. With Papermaking 4.0, Voith is making an intelligent con-tribution to increasing the efficiency, productivity and quality
of the entire paper production process supply chain, even in existing systems and equipment. “The term has been chosen deliberately to address Industry 4.0,” says Dr. Christian Naydowski, Vice President Technology for Papermaking 4.0 at Voith Paper. Which IT measures are going to be the key to the smart factory? Voith, for one, is offering specific product solutions — and not just for new plants and equipment. “To put it in a nutshell, there are three aspects involved: visualization, stabilization and optimization,” Dr. Naydowski says. “We are creating processes that work transparently in our customers’ paper machines and can be stabilized by means of actuators and controls. A logical consequence is that we are then able to also optimize processes that are stable. Connecting lots of sub-processes with one another to utilize quality data in stock preparation through to the finished product, for example, results in a measurable mon-etary benefit. In this context, dispensing with the excessive
papermaking 4.0
Industry 4.0, Big Data or the Internet of Things — the networking of processes and communication between machines — are what will shape the future. Digital advances are making it possible, especially a powerful and widely accessible Internet.
By Voith Paper
Papermaking 4.0 – Networked Solutions Optimize Paper Manufacturing
21PaperAge NOVEMBER/DECEMBER 2015
use of valuable resources plays a crucial role. Energy, chemi-cals, fibers and time are all sources for this added value.”
EXPLOITING THE OPPORTUNITY OFFERED BY INDUSTRIAL CHANGE The fact is that in recent years the Internet has dominated and changed our daily lives and has consequently influenced economic processes to a much greater degree than many people would ever have imagined. Every day more than 200 billion emails are sent, while Google’s search engine executes some 3.5 billion searches, and 8.4 billion videos are watched on YouTube. These figures are from March of 2015, and it can be reasonably assumed that this trend will continue. “Only those who face up to these developments and see this global change as an opportunity will be able to leverage
existing potential for excellence and exploit new possibili-ties,” Dr. Naydowski emphasizes. And as with all technologi-cal developments, growing acceptance goes hand in hand with increasing expectations. “At Voith, we know that our customers want forward-thinking solutions that offer clear added value and a tangible economic benefit. We regard Industry 4.0 as a sphere of activity for new business models, provided that the five cru-cial technological areas to achieve this have been mastered.” These are embedded systems (cyber physical systems, CPS), smart factory, robust data networks, data transfer in real time and absolute IT security.
MORE PRODUCTIVE, LESS EXPENSIVE In order to better understand the environment of the new digital opportunities, it is worth reviewing what today’s sce-nario involves. In the context of Voith’s paper machine tech-nology, the numbers tell the story. A modern board machine already incorporates 20,000 I/O (input/output processes), transmits around 160,000 data signals per second, and uses 7,000 actuators. To make this possible, 900 metric tons of copper cable had to be installed in this machine. Even these figures, Dr. Naydowski believes, will “definitely multiply”
with the next machine as a result of technological advances. “But that is exactly what we do not want any more. Today, for example, copper cable can be reduced thanks to modern, fast LAN networks, although the number of signals will increase substantially. The Internet is now making this possible.” Voith has set for itself the goal of helping to shape the future with technological developments, so that in the paper industry, costs are reduced while productivity and flexibility are increased. Voith has defined concrete figures for this ambitious goal, says Dr. Naydowski. “We believe that 10 percent more productivity and a 10 percent reduction in costs are absolutely realistic.”
DIGITAL SOLUTIONS Voith has developed OnEfficiency to maximize the paper machine’s potential. With this system consisting of several sub-systems, processes are stabilized and more scope is cre-ated for optimizations. For example, with OnEfficiency it is possible to improve the yield from the DIP flotation process. We can also achieve strength targets for board with minimal use of starch and adjust the porosity of newsprint or base papers on the running paper web toward one target variable. OnEfficiency Forming gets right to the process at the heart of papermaking: sheet formation. This is measured and analyzed with a package of sensors so that dewatering, reten-tion and flocculation can be stabilized and at the same time coordinated. As a result of the stable process, raw materials and chemicals can be saved and energy usage reduced. It is
papermaking 4.0
Voith measurements on various paper machines taken over a longer period have shown that over time, the quality diverges from the defined corridors for dewatering, retention, formation or porosity.
22 NOVEMBER/DECEMBER 2015 PaperAge
at this point that we come full circle to the three aspects mentioned by Dr. Naydowski at the beginning: visualization, stabilization and optimization. Sensors and actuators are the technical basis for visualization and for creating transparency in the individual processes in a paper machine. Regardless of which solution is used, (i.e. OnEfficiency Forming or OnEfficiency DIP, which proactively adjusts the downstream flotation and bleaching process in the deinking process and therefore reduces the use of recovered paper, energy and chemicals), the aim is process stabilization, the outcomes of which offer the paper manufacturer a cost benefit. But that is not all. Every paper manufacturer wants quality that is as consistent as possible, but the reality is often very different. “Although the paper quality might still be right when the machine starts up, the values can start changing after just a few weeks or months,” says Dr. Naydowski. Voith measurements on various paper machines taken over a longer period have shown that over time, the quality diverges from the defined corridors for dewatering, retention, formation or porosity. The basic conclusion is that the huge volume of data available in paper manufacturing cannot be effectively managed with manual methods over longer inter-vals. But that is exactly what Voith’s “Papermaking 4.0” with its various systems, is able to do. OnCare is another of these systems. It identifies the smallest of malfunctions and can diagnose initial damage to roll bearings before it becomes a problem. This prevents unscheduled and costly machine downtimes. OnCare moni-tors important areas of the paper machine online, such as pressure pulsation in the approach flow system or the vibra-
tions of presses, coating units and calenders. In case of irregu-larities in the paper, the cause is automatically identified via synchronous averaging. A high-frequency online analysis investigates quality data such as basis weight, thickness and moisture. With this analysis tool, Voith has created a mobile and fixed option for data collection. In the mobile version, operation and quick diagnosis can be performed using any mobile device directly at the machine.
PAPERMAKING 4.0 – ALREADY PROVEN IN PRACTICE Regardless of whether it is based on visualization or stabi-lization solutions, smart preventive maintenance virtually announces and runs itself before the papermaker at the machine is even aware of it. And another innovative aspect is that OnEfficiency has a modular structure. Every module as such already pro-vides a measurable benefit. When installed consecutively, the modules network with one another. The end result is a Papermaking 4.0 concept. “We can document through many examples that Papermaking 4.0 — the use of intelligent systems that network with other systems — pays off within just a few months and delivers the targeted cost and optimization ben-efits,” says Dr. Naydowski.Reference.1 Hermann, Pentek, Otto, 2015: Design Principles for Industrie 4.0 Scenarios.
For more information about Papermaking 4.0 by Voith, please contact: Dr. Christian Naydowski: [email protected] or Matthew Watts: [email protected].
papermaking 4.0
A modern board machine already
incorporates 20,000 I/O (input/output processes), transmits around 160,000 data signals per second,
and uses 7,000 actuators.
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By Jon Kerr, Senior Consultant, Fisher International
The Fragmented European Tissue and Towel Business
europe – tissue & towel sector
Mature markets consolidate for a variety of reasons. Typically con-
solidation happens when large players, answering to investors, look to wring additional profits out of the market by acquiring a larger share of the produc-tion capacity and therefore benefitting from synergies and efficiencies that come from the larger volume. Moreover, with a large enough share, companies can optimize the use of their capacity to maintain their profitability despite market volatility or even declining demand. But the benefits conferred from such M&A strategies do not seem to hold sway in Europe, and the European tissue and towel market is no exception. Looking at the demand side, tissue and towel historically grows with the population of a given market. In Europe, the expectation is that the market will be fairly flat for tissue and towel, with pockets of modest growth anticipated in the Western and Nordic countries. The impact, if any, of the refugee migration crisis notwithstanding, Eurostat projects a notable 2.6% decline in Germany’s population, but there are gains in both the UK (3.5%) and France (2.2%) which levels out the data to a mere 0.5% increase over the next eight years.
There are distinct segments in the tissue and towel business: commer-cial, consumer, and specialty. The specialty market is quite small — about 2% of the total. The commer-
cial segment accounts for just 13%
of the 10 million tonnes produced
in Europe, with the consumer grade
accounting for the majority at 85%.
LIGHT CONSOLIDATIONAs Figure 1 indicates, there has been relatively little consoli-dation in the market since 2007. Kimberly-Clark sold off one mill in 2010 and three mills in 2012, but still maintained most of the company’s capacity. Effectively, the spinning off of their mills to single buyers actually reversed consolidation. P&G sold their European tissue and towel operations to SCA in 2007 and Georgia-Pacific exited Europe in 2011, also selling their mills to SCA, currently the market’s largest shareholder with 23% share. LPC sold their mills to Sofidel in 2010 and Kartogroup sold to Wepa in 2007, which clearly made the market more consolidated, but not significantly so, since there are still a
Most European M&A in the tissue
and towel market will have to be
driven by efficiencies and syner-
gies from technology, cost-sharing,
brands, low-cost platforms, etc.
25PaperAge NOVEMBER/DECEMBER 2015
large number of small competitors distributed across the continent (Figure 2). All-in-all, Europe has 142 companies making tissue and towel in 234 mills; clearly numbers large enough to keep any one participant from having significant market power.
WHERE WOULD FURTHER CONSOLIDATION COME FROM?So the question is whether there is likely to be additional consolidation in the European tissue and towel market. While it is theoretically feasible for a company to purchase enough capacity to amass at least a 30% share (characteristi-cally, consolidation requires the leading player to have ≥30% share if market dynamics are to change), the cost of acquir-ing such capacity would be high. Moreover, only half of the benefits of consolidation — those coming from synergies and efficiencies — would be available until the very end of the consolidation process. Other benefits of consolidation — the ability to optimize the supply/demand balance — would not come until the consolidator’s share reached the critical thresh-old of around 30%. With its 23% market share, SCA may be the participant most able to achieve full market consolidation. For others, would it be more cost-effective to simply add on to existing company-owned facilities, assuming that they are strategically placed and can produce competitively in the market? Or are there older, smaller mills poised to be retired, taking sufficient capacity off the market so larger firms gain share by default? The cost curve (Figure 3) shows a num-ber of fourth quartile mills that are small and independent who perhaps would be vulnerable were market conditions to become difficult. On the other hand, the cost curve also shows a large number of small but low-cost assets that would likely not leave the market under such duress. Flat market conditions create an environment where prof-itable growth is more likely to come from M&A than from organic expansion. Most European M&A in the tissue and towel market will have to be driven by efficiencies and syner-gies from technology, cost-sharing, brands, low-cost platforms, etc. European tissue and towel M&A events will depend on the specifics of each potential combination — how logistics would integrate; how product lines match; what each mill’s technology allows it to make; what buying power can be cre-ated for purchases of fiber, chemicals, etc.; and others. There is a rich pool of candidates to draw from. Analysts using FisherSolve™’s detailed data on each mill will undoubtedly find profitable combinations.
This analysis was compiled by Jon Kerr, Sr. Consultant at Fisher International, using FisherSolve™, the premier data and analytics resource for pulp and paper industry professionals making important capital and operating decisions. FisherSolve accurately describes the assets, capacity, and costs of every pulp and paper mill in the world making 50 TPD or more to deliver the information and perspective necessary to make business decisions more reliably. To learn more, please visit www.fisheri.com.
europe – tissue & towel sector
Figure 2: T&T production is already close to the population density in Europe.
Figure 3: Cost curve of companies producing tissue and towel in Europe. Note the collection of smaller companies that oper-ate higher cost mills. These firms are more likely to drop out of the market should prices drop.
Figure 1: Market share of production capacity by company shows that half the market is served by only four companies.
26 NOVEMBER/DECEMBER 2015 PaperAge
paper machine – shower nozzles
Purge Your Nozzle Woes AwayPlugged spray nozzles on a paper machine are not only frustrating, they negatively impact the machine’s performance and product quality. But keeping those nozzles clean may be simpler than you thought
By Steve Corlew
You may be surprised at how many nozzles on any given paper machine right now are plugged, and those are only the ones an operator can see from
the side of the machine. And what about the nozzles in the middle of the machine that are out of sight? The fact of the matter is, nozzles are eventually going to plug; it’s inevitable. The result of all these plugged nozzles are frustrated pulp and paper mills who assume a new showers is the answer. At Southern Paper Group (SPG), we supply a wide range of equipment and services to the paper industry, and one of those pieces of equipment are showers. And as much as we like to build them, there are times when a new type of nozzle may be a more cost effective and longer term solution to the problem of constantly plugged nozzles. To back up a bit, for some applications, a new brush shower is a perfect solution. However, in many cases, chang-ing the nozzle type to nozzles that clean themselves, i.e. spring purge nozzles, and keeping the existing shower header in service, will lead to better nozzle performance.
The purpose of this article is to explain how and why
the decades-old spring purge nozzle type works, how it can
improve your process, and what needs to happen to keep the
nozzles spraying for a very long time.
WE HAVE A PROBLEMWhen it comes to brush showers, a frequent request is, ‘We would like a quote for a new brush shower assembly as ours is worn out’ or ‘what we have is not working and we need a solution that will keep our nozzles from plugging.’ The real-ity is this: nozzles are going to plug sooner or later regardless of how clean a mill’s water supply is and/or how many filters are in place in the system. In some case, nozzles eventually plug even with a brush installed. To compound the problem, the brushes themselves begin to degrade the moment they go into use and progressively wear out depending on the application. Although brushes can be replaced every 5 years or so, the alternative is to sim-ply change the nozzles, which is much easier than changing out a brush assembly. Before going further, it’s important to note that users of spring purge nozzles either like them or they don’t. In regards to the latter, the frustration is not unsubstantiated. But, there is hope and a proven path forward. Success with spring purge nozzle types has less to do with the nozzle itself and more to do with the supplier schooling the user on the workings and operation of this type of nozzle. Furthermore, it is of the utmost importance that these nozzles
27PaperAge NOVEMBER/DECEMBER 2015
paper machine – shower nozzles
are accompanied by an operation manual, which SPG offers for both spring purge nozzles and the automation process that can be implemented to work with the nozzles.
PURGE THEM, AND PURGE THEM OFTEN.So your mill’s current spring purge or non-spring purge nozzles aren’t doing the job expected of them and you’re thinking about a new shower to replace the existing header. But what if it’s a case of plugged nozzles? This problem can be remedied quite easily, quickly, and doesn’t necessitate a capital project to accomplish. It simply requires the user understanding what makes the nozzles in question operate properly over the long term. The answer: purge them, and purge them often. How often should nozzles be purged? We recommend at least one purge cycle every 24 hours. The daily purging regenerates the nozzles to a clear state for most freshwater applications and allows the nozzle to open and close, i.e. allows the moving parts to move and eliminate any debris that has built up inside the nozzle area. In some cases, depending on what is in the shower water, the user may want to purge every 30 minutes (via a valve on a timer) as purged nozzles can work well in applications where solids loading can be as low as 20 ppm to as high as 1,000 ppm.
To clarify the term “purge” when related to spring purge
nozzles means decreasing the water supply to the nozzle so
that the internal spring can allow the internal piston and top
button to separate and allow low-pressure water to wash out
any debris that may be plugging the nozzle orifice. The noz-
zle orifice, in this case, exists when the nozzle is in “operating
condition,” which means the piston and button at the top of
the nozzle are mated together and create the spraying orifice.
Whether it be a fan or needle jet, the process is the same.
Spring purge nozzles can be employed in a variety of
showering applications including: oscillating high-pressure
needle jet, fan shower applications — knock off, chemical, lube, breast roll apron, rotating gravity strainer showers, etc.Benefits of clean nozzles include: • Improvement in moisture profile.
• Decrease in sheet defects.
• Increase lifetime of consumables, such as wear surfaces (UHLE box covers, wear strips, doctor blades, rolls, high cost consumables, i.e. forming fabrics and press felts.
• Consistent sheet dewatering characteristics at the forma-tion level that transfer through to the press section, and continue all the way to the finished product.
CLEAN SPRAYING NOZZLESOf course we all want unplugged clean spraying nozzles, and spring purge nozzles can help us accomplish that easily, economically and safely via automation — no manual valve manipulation required — and in most applications without having to purchase new shower headers. Almost all shower header nozzle bases can accept an adapter that will allow the installation of a standard spring purge nozzle. In some cases, such as brush showers with worn brushes, users have removed the brushes (or left them in) and installed custom-size threaded spring purge nozzles that screw directly into their existing shower head-ers. Automation is not required, and a manual inlet valve can also allow for purging. However, climbing a paper machine to turn a valve can be a safety concern that can be eliminated via automation. Once the spring purge adapter and nozzles have been installed, the shower header is then typically rotated to accommodate the non-perpendicular spray from the cen-terline of the shower header. The new spring purge nozzles transform the once ‘pain in the neck’ shower to something that, with an automated AutoPurge™ valve, can be a ‘set it and forget it’ solution.
Nozzle on left shown in “purge” or cleaning state (or inlet valve to shower header closed). Nozzle on right shows Nozzle in normal operation state with piston and button mated together creating a precision metal to metal orifice seal which creates the fan or jet pattern (depending on nozzle type of fan or jet).
Trim knock-off conversion from quarter NPT to spring purge nozzles.
28 NOVEMBER/DECEMBER 2015 PaperAge
paper machine – shower nozzles
The AutoPurge system is an automated inlet valve controlled via a PLC in a NEMA 4 enclosure with a few adjustable parameters that can be factory preset and also changed onsite by the user to fine-tune the purge frequency for each shower. By simple adjustments of timers, it is possible to have showers running off the same water source purge at different times so there is only one shower purging at a time. In addi-
tion to the repeat timer purge cycle, there is also a purge “on demand” function, which, for example, is helpful for during a clarified whitewater upset condition.
RESULTSActual reported results from customers using spring purge nozzles in the manner described above: • Up to 50% increase of life in press felts.
• Greatly reduced wear on Herringbone, Slotted and Wear Strips on UHLE box wear surfaces.
• Moisture profile consistency markedly improved due to machine cross direction fabric uniformity directly related to changing only the past nozzle type to spring purge type nozzle (and purged often).
When nozzles are spraying so well that you forget you have showers, then you’ve purged away your water woes, and that’s a nice place to be.
Steve Corlew is Director of Operations – Spray Division, Southern Paper Group. He can be reached by email at: [email protected].
HP needle jet conversion from brush to spring purge with custom nozzles.
With all Best Wishes for a Joyous Season and a very Happy New Year!
—From Everyone at PaperAge
29PaperAge NOVEMBER/DECEMBER 2015
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COMPANY PAGE WEBSITEAF&PA (Paper2016) 23 www.paper2016.comAldon Company 15 www.aldonco.comBuckman 2 www.buckman.comColorLok 9 colorlok.comEdwin X. Graf 29 [email protected] 13 iesclean.comIngredion 11 papermakinginnovation.com/createKemira 32 www.kemira.comPapermachine Service Industries 29 papermachine.comSandar Industries 17 www.sandar.comThiele Kaolin Company 5 www.thielekaolin.comValmet 7 www.valmet.com
index of advertisers
STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION
Publication Title: PaperAge USPS Number: 0031-1081
Frequency of Issue: Bi-Monthly for a total of 6 issues published annually. Mailed free of charge to qualified recipients. To all others: $54.00 in the U.S., $60.00 in Canada and Mexico, and $90 in other countries.
Complete Mailing Address of Known Office of Publication: 20 Schofield Rd., Cohasset, MA 02025. Complete Mailing Address of Headquarters, or General Business Office of Publisher: 20 Schofield Rd., Cohasset, MA 02025.
Full Names and Complete Mailing Address of Publisher, Editor, and Managing Editor: Publisher, Michael C. O’Brien, 20 Schofield Rd., Cohasset, MA 02025. Managing Editor, John F. O’Brien, Jr., 42 Country Way, Scituate, MA 02066.
Owner: O’Brien Publications, Incorporated. Michael C. O’Brien, 20 Schofield Rd., Cohasset, MA 02025; John F. O’Brien, Jr., 42 Country Way, Scituate, MA 02066.
Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None
Tax Status: Has not changed during preceding 12 months.
Issue Date for Circulation Data Below: Sept/Oct. 2015
Extent and Nature of Circulation: a. Total Number of Copies; Average No. Copies Each Issue During Preceding 12 Months – 10,650; b.(1) Outside County Paid/Requested Mail Subscriptions – 7,875; b. (2) In County Paid/Requested Mail Subscriptions – 0; b. (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non- USPS Paid Distribution – 442; b. (4) Requested copies distributed by other mail classes through the USPS – 4. c. Total Paid and/or Requested Circulation – 8,321. d.(1) Outside County Nonrequested copies – 2,174; d.(2) In County Nonrequested copies – 0; d.(3). Nonrequested copies distributed through the USPS by other classes of mail – 0. d. (4) Nonrequested copies distributed Outside the mail – 133. e. Total nonrequested distribution – 2,307. f. Total distribution – 10,628. g. Copies not Distributed – 22. h. Total – 10,650. i. Percent Paid and/or Requested Circulation – 78.2%.
Extent and Nature of Circulation: a. No. Copies of Single Issue published Nearest to Filing Date – 10,300; b.(1) Outside County Paid/Requested Mail Subscriptions – 7,629; b. (2) In County Paid/Requested Mail Subscriptions – 0; b. (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution – 439; b. (4) Requested copies distributed by other mail classes through the USPS – 4. c. Total Paid and/or Requested Circulation – 8,072. d. (1) Outside County Nonrequested copies – 2,105; d.(2) In County Nonrequested copies – 0; d.(3). Nonrequested copies distributed through the USPS by other classes of mail – 0. d. (4) Nonrequested copies distributed Outside the mail - 0. e. Total nonrequested distribution – 2,105. f. Total distribution – 10,177. g. Copies not Distributed – 123. h. Total – 10,300. i. Percent Paid and/or Requested Circulation – 79.3%.
I certify that all information furnished is true and complete.
John F. O’Brien, Jr., Managing Editor
TECHNICAL SALES OPPORTUNITY Manufacturer of World‐class Paper Machine Clothing
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30 NOVEMBER/DECEMBER 2015 PaperAge
AF&PA recently recognized seven member companies for their commitment to sustainability through our 2015
AF&PA Sustainability Awards. The awards recognize exemplary sustainability achievements in the paper and wood products manufacturing industry. These annual awards are part of the industry’s demonstration of continuous improvement under AF&PA’s Better Practices, Better Planet 2020 initiative. AF&PA sustainability award applicants are considered in two primary categories, leadership and innovation. Projects that sup-port the Better Practices, Better Planet 2020 sustainability goals are considered for “Leadership in Sustainability” awards. Within the Leadership category, there are five possible awards that correspond to the goals: Paper Recovery for Recycling, Energy Efficiency/Greenhouse Gas (GHG) Reduction, Sustainable Forest Management, Safety, and Water. The “Innovation in Sustainability” award is reserved for projects that merit recognition for their contribution to sustainable business practices, rather than one of the specific goals. Seaman Paper Company received a Leadership in Sustainability Award (small company) for Energy Efficiency and GHG Reduction for their Soft Steps Forward Initiative. Seaman Paper sought to decrease their purchased fuel and electricity dependency. The company now produces 97 percent of their steam requirements from carbon-neutral biomass, and installed a backpressure turbine that runs on steam to meet their electricity needs. These measures helped decrease Seaman Paper’s total energy cost despite the sharp increases in oil and electricity costs over the past decade. WestRock Company also received a Leadership in Sustainability Award for Energy Efficiency and GHG Reduction. Their Covington Power Island Project uses carbon-neutral bio-mass to generate renewable electricity for sale to the grid and supplies clean energy to their Covington, Virginia paper mill. It has enabled the mill to become electrically self-sufficient, greatly reduce coal use and greenhouse gas emissions, decrease freshwa-ter usage and generate less waste water. Evergreen Packaging was recognized with the Leadership in Sustainability Award for Paper Recovery for Recycling for the On-Packaging Recycle Use project. Surveys show that consumers look for a recycle logo on a carton to determine whether it is recyclable. Evergreen developed and implemented a tracking system to find out which customers did not use a logo on their cartons. This information is used to get more customers to include the logo on their cartons and communicate to consumers that those cartons are recyclable, thereby increasing recovery.
Resolute Forest Products received the Leadership in Sustainability Award for Safety for their Working Towards Zero Incidents project. A multi-disciplinary task force at Resolute took the initiative to design a safer, watertight, more comfortable, breathable chemical protective suit that is appropriate for all mill- related working requirements. In addition, the new suits can be used for at least a year, as opposed to the previous disposable suits, of which an employee would use and discard about five per month. International Paper was awarded the Leadership in Sustainability Award for Water for their Pensacola Mill/Emerald Coast Utilities Authority (ECUA) Partnership project. Through the partnership, International Paper’s containerboard mill in Pensacola, Florida receives treated effluent from ECUA that it uses in its industrial processes. This allowed International Paper to reduce its freshwater consumption, while ECUA has found a beneficial outlet for its treated effluent. Domtar received two awards. The first was the Leadership in Sustainability Award for Sustainable Forest Management for their Marlboro FSC Partnership. FSC certification can be pricey for small landowners, but paper companies often need FSC certified fiber to meet specific customer demands. Through the Marlboro FSC Partnership, Domtar covers certification costs and pays a premium to receive certified fiber, and landowners receive advice and support in getting their wood certified. Domtar’s second award was an Innovation in Sustainability Award for the Plymouth K-Lime Project. Their Plymouth, North Carolina mill reduced its waste stream to zero by creating K-Lime, a substitute for traditional fertilizer that consists of byproducts of the manufacturing process that were previously sent to landfill. K-Lime is all-natural and works just as well as traditional fertil-izer, and Domtar provides it to farmers at a third of the cost. Verso Corporation was also recognized with an Innovation in Sustainability Award. The Identifying and Mapping Vernal Pools on State Lands in Michigan’s Upper Peninsula project is a public-private partnership focusing on vernal pools: small, shallow, temporary bodies of water that are important for healthy forest ecosystems because they provide food, water and habitat for a number of animal and plant species. Aerial photograph interpre-tation and other technologies are used to identify and map vernal pools, so that they will not be overlooked and unintentionally damaged or destroyed. These award-winning initiatives demonstrate AF&PA mem-bers’ commitment to better business practices and the sustain-ability of our industry, our communities, and our environment. The number of high quality project submissions continues to grow each year, representing the numerous concrete actions our industry is taking to improve the sustainability of our processes and products. For more information about AF&PA’s Sustainability Awards program and Better Practices, Better Planet 2020 initiative, visit www.afandpa.org/sustainability.
AF&PA Sustainability Awards: Honoring Members’ AccomplishmentsBy Donna Harman, President and CEO, AF&PA
George Jones, President of Seaman Paper Company, accepts a Leadership in Sustainability Award for his company’s Soft Steps Forward Initiative.
AF&PA Priorities for the 114th Congress
International Trade Opportunities
The 114th Congress is in full swing.
Republicans now control both
chambers of Congress for the first
time in eight years. With Rep. John
Boehner of Ohio’s 8th District as
speaker of the House and Sen. Mitch
McConnell of Kentucky as Senate
majority leader, the Congress has
embarked on an aggressive agenda
for 2015 aimed at highlighting the
contrasts between the GOP and
President Obama. Priorities include
challenging several of the presi-
dent’s signature policies on health
care, energy, banking, and the
environment. However, issues for
potential bipartisan action this
year could also include trade and
infrastructure, such as highway re-
authorization.AF&PA Congressional Priorities AF&PA is working to educate mem-
bers of Congress about our indus-
try’s economic impact and our com-
mitment to sustainability. Every
issue the industry faces has an effect
on its 900,000 workers — whether
dealing with marketplace challenges
or stifling government regulations.
By working with our member com-
panies and industry allies, AF&PA
has identified several priority is-
sues for 2015 including regulatory
reform, greenhouse gas regulations,
air regulations, transportation poli-
cies, promoting access to paper op-
tions, and trade and tax policies.Regulatory ReformAF&PA believes that Congress
should unleash the power of the U.S.
economy by passing legislation to
reduce the investment-stifling regu-
latory burden. Congress should con-
sider initiatives to ensure that federal
rulemakings are based on sound sci-
ence, use of the best available scien-
tific and technical information, long
term certainty, transparency, eco-
nomic considerations, and flexible
approaches.
T U E S D A Y , M A R C H 1 7 , 2 0 1 5
(continued on page 6)
AF&PA is advocating for biparti-san solutions to address the most
pressing problems facing paper and
packaging manufacturers who must
compete in a global marketplace and need regulatory certainty to
make new investments.
The improving economic condi-tion in the U.S., in contrast to the
negative or slow growth in other
major world economies, resulted
in an increase in 2014 U.S. imports.
Paper, paperboard and converted
products imports rose 4.3 percent, to 12.4 million metric tons.
(continued on page 2)
Note: All events are being held at
the Trump Hotel Chicago. TUESDAY, MARCH 17, 2015
Schedule of Events
Convention Daily• 7:00 am – 4:00 pm Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)• 8:00 am – 12:00 pm Official Hospitality Suites Open*
• 8:00 am – 4:00 pm Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor• 8:45 am – 9:45 am Special Session: Paper
Industry Initiatives – Building New Roadways to Success Skyline Room, 16th Floor (open to all Paper2015 registrants)
• 10:00 am – 11:30 am RISI Global Paper Market Trends and Forecast Skyline Room, 16th Floor
(open to Full Access Pass Paper2015 registrants only)• 12:00 pm – 2:15 pm Paper2015 Luncheon (sponsored by International Paper) Grand Ballroom, 16th Floor
(suites closed; separately ticketed event)
• 2:15 pm – 6:00 pm Official Hospitality Suites Open** Suite access is by appointment only.
Contact each company directly to
make appointments as they maintain
their own schedules.
PAPER2015
DIGITALCONVERTINGSECURITY
CARBONLESSBOOK
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of the print market will be dominated by digital.
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3/3/15 9:34 AM
The global economy expanded at a
moderate but an uneven pace dur-
ing 2014. Among the developed
economies, the U.S. experienced an
annual growth rate of 2.4 percent
in 2014, with declining unemploy-
ment, while the economic situation
in Europe has been precarious, with
a number of eurozone countries on
the brink of recession. Growth rates
in developing countries and econo-
mies in transition diverged more
during 2014, as a sharp decelera-
tion occurred in many large emerg-
ing economies, particularly in Latin
America. In contrast, East Asia, in-
cluding China, experienced only a
mild economic slowdown. Global
growth is projected at 3.5 percent for
2015, according to an International
Monetary Fund report issued earlier
this year. Lower oil prices and the
depreciation of the euro and yen —
the flip side of the appreciation of
the U.S. dollar — support growth,
but structural issues persist in other
economies. The U.S. represents a
bright spot among major economic
players.U.S. Imports and Exports in 2014
U.S. exports of paper, paperboard
and converted products amounted
to an estimated 14.3 million met-
ric tons in 2014, unchanged from
the previous year, according to U.S.
Bureau of Census data. Exports of
newsprint, printing-writing paper
and bleached paperboard were low-
er, but exports of kraft linerboard
rose. On a regional basis, exports
of paper and paperboard were up
Due to comprehensive networking of Paper2016 attendees, the Paper2016 Convention Daily offers a unique advertising opportunity for:
The Paper2016 Convention Daily will be distributed to all attendees at the convention and feature editorial content such as:
• Pulp producers
• Paper manufacturers
• Tissue manufacturers
• Paperboard producers
• Paper converters
• Paper merchants
• Suppliers of equipment and service
• A complete, up-to-date schedule of meetings and activities
• Program reviews
• Session reports
• Industry news and statistics
• Hospitality suite locations and contact information
For further information on advertising opportunities in the Paper2016 Convention Daily, please contact:
Mike O’Brien, Publisher • O’Brien Publications, Inc./PaperAge • 20 Schofield Road • Cohasset, MA 02025-1922 Telephone: 781.923.1016 • Fax: 781.923.1389 • e-mail: [email protected]
The Paper2016 Convention Daily will be published in three separate editions (March 6, March 7, March 8) and distributed to all attendees of the convention. The Paper2016 Convention Daily is published by O’Brien Publications, Inc.
Reach Decision Makers
Note: All events are being held at the Trump Hotel Chicago.
MONDAY, MARCH 16, 2015• 7:00 am – 5:30 pm
Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor
• 7:00 am – 5:30 pm Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)
• 8:00 am – 4:00 pm Official Hospitality Suites Open*
• 4:00 pm – 5:30 pm Industry Leadership Session - CEO Panel (sponsored by Sappi North America) Grand Ballroom, 16th Floor (suites closed; open to Full Access Pass Paper2015 registrants only)
• 5:30 pm – 6:30 pm Paper2015 Reception (sponsored by Domtar) Grand Foyer, 16th Floor (suites closed; open to Paper2015 registrants only)
TUESDAY, MARCH 17, 2015• 7:00 am – 4:00 pm
Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)
• 8:00 am – 12:00 pm Official Hospitality Suites Open*
• 8:00 am – 4:00 pm Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor
• 8:45 am – 9:45 am Special Session: Paper Industry Initiatives – Building New Roadways to Success Skyline Foyer, 16th Floor (open to all Paper2015 registrants)
• 10:00 am – 11:30 am RISI Global Paper Market Trends and Forecast Skyline Room, 16th Floor (open to Full Access Pass Paper2015 registrants only)
• 12:00 pm – 2:15 pm Paper2015 Luncheon (sponsored by International Paper) Grand Ballroom, 16th Floor (suites closed; separately ticketed event)
• 2:15 pm – 6:00 pm Official Hospitality Suites Open*
* Suite access is by appointment only. Contact each company directly to make appointments as they maintain their own schedules.
Schedule of Events Mapping our Future at Paper2015
On behalf of the American Forest & Paper Association (AF&PA) and the National Paper Trade Association (NPTA), welcome to Paper2015, our industry’s most important annual event.
One of the barriers to increased pa-per recovery for recycling is the dis-tinction made between so-called “pre-consumer” and “post-con-sumer” fiber. Mandates that dic-tate “post-consumer” content in products often result in distortions in the market-driven demand/sup-ply balance by driving up prices for some usable fiber while placing an artificial barrier to the use of other equally environmentally beneficial recovered paper.
Benefits accrue from utilizing all available sources of recovered fiber, not by singling out a specific source as the one that “counts.” It is some-what ironic that the paper industry, despite the great strides made in recovering our own products, con-tinues to be the only commodity where attention regarding this man-date is placed.
Certification Bodies are Shifting StandardsFortunately, major third-party for-est products certification groups have taken action recently to elimi-nate the distinction between and fully value both “pre-” and “post-consumer” recovered paper. Both the Sustainable Forestry Initiative
(SFI) and Forest Stewardship Coun-cil (FSC) are updating their chain-of-custody standards. The SFI board of directors voted in November 2014 to approve the final draft of the SFI 2015-2019: Standards and Rules. AF&PA filed comments supporting proposed
changes that eliminate the distinc-tion between “pre-consumer” and “post-consumer” fiber in SFI’s defi-nition of recycled content and in la-beling standards for the products that contain recycled content. The new SFI standard, which went into effect on January 6, 2015, recognizes both “pre-consumer” and “post-
consumer” recycled fiber as quali-fying as certified recycled content. The change also allows SFI chain-of-custody certificate holders that use recycled content in their products the ability to choose to incorporate a Mobius loop in on-product labeling stating the percentage of recycled content in the product.
FSC recommended revising its chain-of-custody standard in late 2013 with a view to include all re-covered paper materials as inputs towards FSC credit. FSC received
Why the Distinction between “Pre-” and “Post-consumer” Recovered Fiber Should be Eliminated
M O N D A Y , M A R C H 1 6 , 2 0 1 5
Mark GardnerAF&PA Board Chairman
Hilton MazeNPTA Board Chairman
(continued on page 6)
Benefits accrue from utilizing all available sources of recovered
fiber, not by singling out a specific source as the one that “counts.”
PAPER2015Convention Daily
We invite you to join in mapping our industry’s future. Paper2015 brings insightful sessions and nu-merous opportunities to connect with colleagues and chart the best course for tomorrow’s success. We’ll officially kick off Paper2015 with this afternoon’s Industry Lead-ership Session, where a panel of CEOs representing key segments of the paper industry will pro-vide their unique perspective on issues of importance to our business. We hope to connect with you at the
Paper2015 Reception immediately following the panel. Company suites are open today and tomorrow so that you may check in with your key clients and suppliers, strengthen your existing business relationships, and meet promising new contacts.
Thank you for participating in Pa-per2015. We’re looking forward to mapping our future with you. Mark Gardner is president and CEO of Sappi North America and Hilton Maze is president and CEO of Simon Miller Paper & Packaging.
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3/3/15 9:34 AM
Paper2015 Welcomes You
Welcome to Paper2015! On behalf
of the American Forest & Paper
Association (AF&PA) and the
National Paper Trade Association
(NPTA), we are thrilled that you
have joined us in Chicago.
This year, we’re Mapping our
Future through timely sessions and
unparalleled networking oppor-
tunities. We hope the insights
and connections you make at
Paper2015 will be essential to
your business for years to come.
At Monday’s Industry Leadership
Session, a distinguished panel of
CEOs representing key segments of
the paper industry will provide their
unique perspectives on issues of
importance to our industry’s success.
Tuesday starts with the Special
Session: Paper Industry Initiatives
– Roadways to Success, where
representatives from key U.S. paper
industry organizations will share
how their programs are informing
the marketplace and helping you in
your business.
At RISI’s annual seminar, Ken
Waghorne and Derek Mahlburg
will present the market outlook for
paperboard, recovered fiber and
printing-writing paper.
The Paper2015 Luncheon features
Robert O’Neill, who served as an
operator and team leader with the
legendary Navy SEAL Team Six.
He will translate his unique
expertise into high-impact,
actionable insights on leadership,
decision-making, operating in
uncertain environments, and how
to become the ‘best of the best.’
During the Luncheon, Morris
Dennis of Dennis Paper will receive
the NPTA Stanley O. Styles Industry
Excellence Award.
Thank you for participating in
Paper2015. We hope you enjoy
your experience.
Paper-based communications are
critically important for millions of
Americans – especially for seniors
and citizens without online access.
Yet federal and state governments
continue to take actions to phase
out or eliminate paper-based op-
tions, imposing hardships for mil-
lions of vulnerable Americans and
having negative consequences for
the paper industry. These efforts,
under the rationale of cost saving,
are imposed without any congres-
sional oversight or input from citi-
zens. AF&PA is ramping up its ad-
vocacy to educate legislators and
regulators about the unintended
cost shifting and access barriers
that elimination of paper-based in-
formation and services imposes for
many people who depend on or pre-
fer paper.
Nearly 36 million American house-
holds do not have Internet access at
home. Almost 19 million senior citi-
zens don’t own a computer. These
enormous numbers of Americans
are left behind by digital-only ac-
cess to government services. AF&PA
believes this government “rush to
digitize” is short-sighted and causes
harm to citizens.
The U.S. Treasury Department,
for example, on January 1, 2012,
stopped sales of over-the-counter
paper savings bonds and forced
people to buy them online via Trea-
sury Direct, requiring the intended
recipient’s taxpayer ID number,
Social Security number, bank
AF&PA Steps up Efforts for Government
to Include Paper Options
S U N D A Y , MA R C H 1 5 , 2 0 1 5
Donna Harman
Kevin Gammonley
From Donna Harman, President & CEO, AF&PA
and Kevin Gammonley, CEO, NPTA Alliance
(continued on page 4)
Schedule of Events
PAPER2015
Convention Daily
Note: All events are being held
at the Trump Hotel Chicago.
SUNDAY, MARCH 15, 2015
• 12:00 pm – 6:00 pm
Paper2015 Registration Desk
& Convention Daily Desks
Grand Foyer, 16th Floor
• 12:00 pm – 6:00 pm
Connections Lounge
(sponsored by Glatfelter)
Mezzanine (access via elevator
or stairs from hotel lobby)
• 3:00 pm – 6:00 pm
Official Hospitality
Suites Check-in
• 4:00 pm – 6:00 pm
Official Hospitality
Suites Open*
MONDAY, MARCH 16, 2015
• 7:00 am – 5:30 pm
Paper2015 Registration Desk
& Convention Daily Desks
Grand Foyer, 16th Floor
• 7:00 am – 5:30 pm
Connections Lounge
(sponsored by Glatfelter)
Mezzanine (access via elevator
or stairs from hotel lobby)
• 8:00 am – 4:00 pm
Official Hospitality
Suites Open*
• 4:00 pm – 5:30 pm
Industry Leadership
Session - CEO Panel
(sponsored by Sappi
North America)
Grand Ballroom, 16th Floor
(suites closed; open to
Full Access Pass Paper2015
registrants only)
• 5:30 pm – 6:30 pm
Paper2015 Reception
(sponsored by Domtar)
Grand Foyer, 16th Floor
(suites closed; open to all
Paper2015 registrants)
* Suite access is by appointment only.
Contact each company directly to
make appointments as they maintain
their own schedules.
DID
YO
U K
NO
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DIGITAL
CONVERTING
SECURITY
CARBONLESS
BOOK
UNCOATED
SPECIALITIES
INNOVATIONS
of the U.S. population touches
a Glatfelter product every day.
Visit suite 2128 to learn more about our diversified offerings.
40%gla3762-1-PaperWk15-BnrAds-D1.indd 1
3/3/15 9:34 AM
Paper-based communications
are critically important for
millions of Americans –
especially for seniors and
citizens without online access.
Place an ad in the Paper2016 Convention Daily
Paper2016 will take place in the Lotte New York Palace, March 6-8, 2016
Strong bonds lead to unique possibilities – in business as well as in chemistry. And that’s precisely why we’ve acquired AkzoNobel’s paper chemicals business. Additional expertise. A broader technology base. Greater presence where you need us most. It all adds up to a winning partnership with a shared commitment to innovation.
We’ve extended our capabilities so you can extend yours. Let’s work together to build value into paper.
www.kemira.com/extend-your-capabilities
PaperAge Stronger bonds.indd 1 5/6/2015 3:28:41 PM