November 18, 2004
Out of the Box: Industry News
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Welcome to a Special "SuperCorrExpo Wrap Up" Edition TAPPI's Corrugating International*E-Corr, a free biweekly electronic newsletter designed specifically for professionals in the international corrugated containers industry.
Editor's Note: Due to the Thanksgiving holiday, E-Corr will not be published next week. The next edition of E-Corr will be published on December 8.
OUT OF THE BOX
TAPPI/AICC SUPERCORREXPO® EXCEEDS EXPECTATIONS
More than 7,200 people from the worldwide converting industry attended SuperCorrExpo® in Atlanta last week. Living up to its billing as the largest corrugated machinery show in the Western Hemisphere, SuperCorrExpo® attracted thousands of converters from all over the world and from more than 570 plant locations. Notable end users registered included Hickory Farms, Fuji, Clorox, Colgate Palmolive, JC Penney, Oxy-Dry, Tyson Foods, and Eastman Kodak.
The 300 exhibiting companies brought a combined total of 2.5 million pounds of machinery and equipment to display during the five-day show. According to Clare Reagan, TAPPI Director of Corporate Relations, the success of the show reflects the turnaround in the industry. Take an online virtual tour of the show floor hosted by Ms. Reagan. Several converters sent buying teams to the show to actively seek out new technology and equipment. Many exhibitors reported sales of machines at the show.
TAPPI's Corrugated Packaging Conference and AICC's Annual Meeting were held in conjunction with the exhibit and provided participants with a variety of high quality educational opportunities. The TAPPI Corrugated Packaging Conference sponsored by the Corrugated Packaging Division featured a keynote address by Georgia-Pacific CEO A. D. "Pete" Correll, Correll said, "Packaging must squeeze out costs at every level of the supply chain, particularly the last 100 yards between the stock room and the shelf." TAPPI conference attendees also heard from Tom Herlihy, Executive Vice President, Green Bay Packaging. Herlihy spoke on working with customers on the value equation versus price. Conference attendees particularly enjoyed the informative session on RFID adoption, which featured a presentation by Ron Moser of Wal Mart. In addition to the conference, international visitors to SuperCorrExpo participated in plant tours of Pratt Industries and the Institute of Paper Science and Technology at Georgia Tech. Tour participants got a first hand look at the corrugated packaging research being conducted by Michael Shaepe of IPST.
At the AICC Annual Meeting, keynote speaker Stuart Varney, formerly host of CNBC's broadcast of The Wall Street Journal Editorial Board with Stuart Varney and co-host of CNN's Money Line News Hour, shared his thoughts on the New Realities of the Global Market Place. In addition, AICC participants heard speakers from around the world discussing world-class manufacturing. Larry Rubrich of WCM Associates explained how implementing lean manufacturing and world-class enterprise improves company-wide productivity and eliminates waste. Paul Erickson, Manager of Supply Management Services at John Deere Worldwide, discussed the manufacturing critical-path time reduction model he helped to develop at John Deere. On Saturday morning, AICC boxmaker members participated in critical issues "think tank" moderated by Seth Kahan, author of "Building Beehives: A Handbook for Creating Communities that Generate Returns". The session ended with a closing address by DiNesh D'Souza entitled "What's So Great About America".
Several individuals and companies were honored throughout the week. Dennis Roberts of Weyerhaeuser received the TAPPI Corrugated Packaging Division Leadership and Service Award. Pete Snyder of Harper Love Adhesives received the TAPPI Corrugated Packaging Division Technical Award and Bettendorf Prize. Thomas Fullove, Green Bay Packaging, was presented a plaque as outgoing chairman of the Corrugated Packaging Division. Cassie Rothstrom, Walla Walla Environmental was honored for organizing the TAPPI Golf outing since its inception. Joseph R. Palmeri, CEO of Jamestown Container Companies in Falconer, NY was inducted into the AICC/Paperboard Packaging Hall of Fame. Larry Cooper, C & B Corrugated, was honored for his work over the past year as AICC's board chairman, and Lee Shillito, Triad Packaging Inc. of TN, assumed the AICC chairmanship reins.
Alliance Machine Systems International was presented the AICC/BCN Innovator of the Year award for their Robotic Palletizer System. In addition, Lewisburg Container took home the Corrbie Best of Show at the 2004 TAPPI CorrPak® competition.
The AICC Student Packaging Design Competition winners were Humber College, Ontario, Canada, in the Design to a Problem category for their Wine Shipping Container; Clemson University, Clemson, South Carolina, USA, in the Open Design Competition for their Candy Casino; and University of Wisconsin-Stout, in the Corrugated As Art category for their gingerbread house. The first and second place winners in the Design to a Problem and Open Design will compete in the International Corrugated Packaging Foundation (ICPF) Best of the Best competition in January 2005. Sanjay Bisht, Michigan State University, was presented with the J. Richard Troll Memorial Foundation Scholarship award for academic excellence in a packaging major.
Plans are well underway for the next AICC/TAPPI SuperCorrExpo®. Included in the 70 firms already contracted for space at SuperCorrExpo® 2008 in Atlanta, are:
INTEGRATED BOX COMPANIES QUARTERLY FINANCIAL REPORTS
Georgia-Pacific, Atlanta, Georgia reported a $239 million income in the 2004 third quarter, compared with a $184 million income in the third quarter 2003. Net sales were $4.7 billion for the quarter, down from $5.1 billion for the same quarter last year.
International Paper, Stamford, Connecticut reported net earnings of $208 million for the 2004 third quarter, an 84 percent increase from $114 million in net earnings during the same period last. year. The company's Industrial and Consumer Packaging segment had an operating profit of $183 million in the 2004 third quarter, compared with $111 million in the 2004 second quarter.
Packaging Corporation of America (PCA), Lake Forest, Illinois reported a net income of $26 million fur the 2004 third quarter, compared with a net loss of $32 million for the same quarter in 2003.
Smurfit-Stone Container Corp., Chicago, Illinois reported a net income of $28 million for the 2004 third quarter, compared with a net loss of $75 million in the 2003 third quarter. Net sales for the 2004 third quarter were $2.2 billion, up from $1.9 billion in the 2003 third quarter. Smurfit-Stone's corrugated container and containerboard segment reported an operating profit of $134 million for the 2004 third quarter, more than double the $65 million reported a year ago.
Temple-Inland, Austin, Texas reported a net income of $41 million for the 2004 third quarter, compared with a net loss of $3 million in the 2003 third quarter. Net sales for the quarter were $1.19 billion, up from $1.17 billion in the 2003 third quarter. The company's corrugated packaging business reported a six-fold increase in the 2004 third quarter, with profits increasing to $42 million compared with $7 million a year earlier.
Weyerhaeuser, Federal Way, Washington reported 2004 third quarter net earnings of $594 million, seven times 2003 third quarter net earnings of $82 million. Net sales for the third quarter were $5.85 billion, up from $5.18 billion in the 2003 third quarter.
SONOCO, Hartsville, South Carolina, USA has acquired a Chinese paper tube operation from Yatai in the city of Pinghu, Zhejiang, China. Yatai, with current annual sales of approximately US$ 4.5 million, is one of the larger tube producers in China, principally serving the man-made fiber segment of the Chinese textile market. The acquisition brings Sonoco's total number of tube plants in China to five. Jiangsu province, where Yatai is located and operates, and the adjoining Zhejiang province are home to the highest polyester production volume in China, according to Sonoco. Sonoco most recently acquired Ahlstrom Corp.'s paper tube operation in Shouguang to serve the rapidly growing Chinese market for paper mill cores.
VPK PACKAGING GROUP, Belgium has purchased two companies in Belgium: Ecotube, Menen; and Recyclagebedrijf Van Assche, Dendermonde.
Ecotube, produces cores for the foil industry and has annual sales of EUR 1.2 million (US 1.6 million), expanding VPK's core division. Six plants produce sales of EUR 45 million (US$ 58.5 million). These production units serve the major markets in Europe, including the United Kingdom, Scandinavia, Germany, France, and the Benelux.
Recyclagebedrijf Van Assche, collects recovered paper in East Flanders. In 2003, Van Assche sorted 20,000 metric tons of recovered paper and its sales were EUR 1.5 million (US$ 1.95 million). Together with its two other Flemish establishments, VPK's recycled paper capacity will reach 100,000 metric tons.
NEW PRODUCTS AND EQUIPMENT ORDERS
APPLETON, based in Appleton, Wisconsin, USA, has introduced MoistureBloc(TM) for Corrugated, a linerboard that features an exclusive moisture barrier coating. The product is completely repulpable and 100 percent recyclable.
Boxes or roll headers that offer high barrier properties to protect against moisture damage typically contain wax or poly-based coatings that prevent them from being easily recycled. "MoistureBlocTM for Corrugated contains a patent pending coating that provides outstanding moisture barrier protection and crack resistance. Our linerboard product will run smoothly on existing converting equipment and, because it is equivalent to 100 percent clean OCC, it is fully repulpable" said Steve Sakai, vice president of performance packaging at Appleton.
Old corrugated cardboard (OCC) is a category of recycled waste that includes kraft linerboard and containerboard cartons of corrugated paper, as well as brown paper grocery bags.
MoistureBlocTM for Corrugated is available in most standard linerboard weights ranging from 26 lb. to 69 lb.
"We see tremendous value in Appleton's MoistureBloc for Corrugated product and have expanded our portfolio of moisture-resistant corrugated products to include those made with MoistureBloc," said Mike Riegsecker, general manager-Neenah Complex, Menasha Packaging Company LLC.
MoistureBlocTM for Corrugated is the fourth in a family of moisture-resistant products developed by Appleton. MoistureBlocTM for Folding Carton - protects consumer dry goods like detergents, rice, potato flakes and baby cereal; MoistureBlocTM for Ream Wrap - protects cut-sheet paper reams; and MoistureBlocTM for Roll Wrap - protects paper rolls. All MoistureBlocTM products are repulpable and 100 percent recyclable, and deliver outstanding moisture barrier protection. ADD ONE, MoistureBlocTM for Corrugated.
NEWS FROM TAPPI
Top Ten Best Sellers at the TAPPI PRESS Bookstore at SuperCorrExpo®
Check out the most popular titles at the TAPPI PRESS on site bookstore during SuperCorrExpo®:
Conference Highlights Coming Soon on Video
Highlights of the TAPPI Corrugated Packaging Conference will be available on video soon. The CD-ROM will include video footage of all three Masters Forum sessions of the 2004 Conference and will be available for sale through TAPPI PRESS.
TAPPI Survival Packs Proved Popular
To illustrate how TAPPI membership can help you stay focused for survival, TAPPI offered free Survival Pack CD-ROMs to all SuperCorrExpo attendees. The CD-ROM included a TAPPI Test Method, TIP, a presentation from last year's conference, and more.
TAPPI Short Course on Lean Manufacturing to be offered in February
The TAPPI Implementing Lean Manufacturing for Flexos and Die Cutters Short Course will be offered at TAPPI Headquarters February 1 - 2, 2005. Details will be available shortly.
Six New Publications and Products introduced at SuperCorrExpo
Human Resource Guide for the Corrugated IndustryFor more information or to place an order, contact Maria Frustaci at 877-836-2422 or email@example.com or visit AICC's on-line store at www.aiccbox.org/store.
AICC Fall Meeting General Sessions and Workshops Available on tape and CD-ROM
All of the AICC General Sessions and Workshops are available for purchase on tape and CD-ROM. To place an order, contact Maria Frustaci at 877-836-2422 or go to www.aiccbox.org/meeting for an order form.
AICC Holds First Ever Fall Meeting Training Class
On Thursday and Friday during AICC's Fall Meeting, Bob Forrest facilitated a training session on World Class Leadership. The two-day session was attended by 15 participants. Topics covered included management of change, leadership, motivation, team building, communication, discipline, and goal setting. Given the success of this training program, AICC plans to conduct similar programs in conjunction with future meetings.