Ecorr February 10, 2009


	February 10, 2009 Contents Out of the Box: Industry News New Products and Equipment Orders News from TAPPI Sponsored by Additional Resources TAPPI BUYER'S GUIDE TAPPI CALENDAR OF EVENTS CORRUGATING INTERNATIONAL ARCHIVE JOIN TAPPI For information on sponsoring this newsletter or other sponsorship opportunities with TAPPI, contact Eric Fletty at efletty@tappi.org or by calling +1 770-209-7535. Explore TAPPI's updated website for the latest in news, products and services, and all of your member needs at www.tappi.org. TAPPI assumes no responsibility for statements of fact and opinion; they are not intended nor should they be construed as a solicitation of or suggestion by TAPPI for any agreed-upon course of conduct or concerted action of any kind. Tell a friend to subscribe to TAPPI CI E-Corr or send a blank email to subscribe-ci_ecorr@list.tappi.org.	OUT OF THE BOX Help CPC elect new leadership TAPPI's Corrugated Packaging Division is seeking nominations to fill four elected positions on the Corrugated Packaging Council (CPC). Nominations are being accepted for a Vice Chair of the Corrugated Packaging Division, two industry suppliers-at-large and one converting member-at-large for the Corrugated Packaging Council. As the governing body of the division, the CPC includes members from Temple Inland, International Paper, Georgia Pacific, Smurfit-Stone Container Corporation, Packaging Corporation of America, Weyerhaeuser Company, The Royal Group and Buckeye Box. Both the industry supplier-at-large and converting member-at-large positions are three-year terms. The Vice Chair position is a two-year term, followed by a two-year term as Chairman of the Division. Nominations will be accepted until June 12, 2009, and must be accompanied by a completed Candidate Data Sheet. Contact Kristi Ledbetter at TAPPI, kledbetter@tappi.org, to obtain Data Sheets. All members of TAPPI's Corrugated Packaging Division will receive a Call for Nominations by May 1, 2009; election results will be announced at the 2009 CorrExpo® event, September 1-2, 2009 in Chicago, IL. Direct any questions to Kristi Ledbetter at 1-770-209-7319. Please consider this an opportunity to "give back" to the CPD, and help set the direction for the corrugated division of your association! Scott Friedman RodencalTAPPI'S NEW BOARD OF DIRECTORS will include Dr. Gary M. Scott (SUNY), Davide R. Friedman (General Mills), and Thomas E. Rodencal (consultant), who have been elected to begin their three-year terms in March 2009. They will join Jeffrey J. Siegel (Mica Corp.) and Norman F. Marsolan, who will serve two-year terms as TAPPI chair and TAPPI vice chair, respectively. Friedman is a 30-year veteran of the packaging industry and has served as senior packaging scientist at General Mills since 1985. Rodencal has been active in the paper industry for more than 30 years. He is a consultant based in Duluth, Ga., and focuses on improving operations and the technical aspects of the paper industry. Scott has worked in the paper industry for more than 25 years and is currently professor and chair of the Department of Paper and Bioprocess Engineering at the State University of New York, College of Environmental Science and Forestry. Siegel, Marsolan, Scott, Friedman, and Rodencal will join the following Board of Directors members who will continue to serve on the TAPPI Board: Carlos A. Aguiar (Aracruz Cellulose SA), Thomas J. Garland (PaperWorks Industries Inc.), Larry N. Montague (TAPPI), Dr. Vince F. Newberry, Nicki S. Slusser (International Paper), Jukka Tiitinen (Metso Paper USA Inc.), and Mark Watkins (MeadWestvaco). TAPPI'S 2009 GUNNAR NICHOLSON GOLD MEDAL will be presented to Dr. Gary A. Baum, currently president and partner of PaperFuture Technologies LLC, during the PaperCon '09 Conference in St. Louis, Missouri, USA, May 31 through June 3. The award, established in 1928, recognizes Dr. Baum's achievements in world's pulp, paper, board, and forest products industries, and the other industries that TAPPI serves. The Gunnar Nicholson Gold Medal is the premier honor bestowed in the industry. Dr. Baum has had a long and distinguished career in the paper industry. Prior to forming PaperFuture Technologies in 2002, he was VP, Research and Academic Affairs and Professor of Physics at the Institute of Paper Science and Technology (formerly IPC). He also served as tenured professor and Head of the Department of Wood and Paper Science at North Carolina State University from 1994 to 1996. From 1989 through 1994, he was the Director of Corporate Research and Development with James River Corp. (now part of Koch Industries). Dr. Baum became a TAPPI member in 1972, was elected a TAPPI Fellow in 1987, and received the Process and Product Quality Division Award and Hunter Prize in 1986 as well as the R&D Division Award and Aiken Prize in 1994. He has served on the TAPPI Board of Directors and the TAPPI Foundation Board of Directors. THE 2009 TAPPI HERMAN L. JOACHIM DISTINGUISHED SERVICE AWARD will be presented to Dr. James C. Abbott, consultant, Cincinnati, Ohio, during the PaperCon '09 Conference in St. Louis, Mo., USA, May 31 - June 3. This award is the highest honor the association can bestow upon an individual for exemplary leadership that has significantly contributed to the advancement of the Association. Dr. Abbott joined Procter & Gamble in 1964 as an analytical chemist and became associated with that company's paper and disposable products businesses in 1971, remaining in that business area until his retirement in 1994. He joined TAPPI in 1972, and has held various leadership positions since that time, including all chairs in the Process and Product Quality Division (previously the Testing Division), as well as chairing the various committees within that Division. Dr. Abbott has served as session chairman, technical program chairman, and general chairman for recent Process and Product Quality Division seminars and conferences. Het continues as a member of the Process and Product Quality Division and several of its committees. Dr. Abbott served on the TAPPI Board of Directors from 1991 through 1994 and chaired or was a member of Board Committees in the areas of Test Methods, TAPPI Journal, and Publications, and was a member of the TAPPI Technical Operations Council during his service as a Process and Product Quality Division officer. He served on the former Test Methods Review Board, then later as Chair of the former Test Methods Management Committee. He is currently a member of the Quality and Standards Management Committee of the Board. AICC (the Association of Independent Corrugated Converters), Alexandria, Va., USA, reports that U.S. Senator Orrin Hatch (R-Utah) will deliver the keynote address at its 2009 Spring Meeting being held April 1 - 3 in Washington D.C. On the morning of April 2, Senator Hatch will discuss the initiatives in the economic stimulus package geared to helping the U.S. manufacturing sector and ensuring its viability now and in the future. COLBERT PACKAGING CORP., Lake Forest, Ill., USA, a supplier of cartons, paper boxes, and paperboard products, is 50 years of age this year. The company continues to diversify its packaging line with paperboard specialty products, flexographic packaging, tamper-proof blister packaging, pressure-sensitive labels, and a growing line of pharmaceutical packaging solutions. EVERGREEN PACKAGING, Pine Bluff, Ark., USA, will shutdown its PM 1. According to the Pine Bluff Commercial newspaper, the shutdown is temporary. However, details, including the impact on employees, aren't yet known. In addition, 138 workers will be laid off at the company's Canton, N.C., packaging mill. The temporary layoff will not affect the company's Waynesville plant or the company's other workers, a union representative said. Evergreen, formerly employee-owned Blue Ridge Paper Products, merged with New Zealand-based Rank Group in June 2007. FIBERMARK, Brattleboro, Vermont, U.S.A., is laying off 38 workers at its two packaging plants here. Fibermark said that demand for its products, such as boxes for jewelry and watches and book coverings, has dropped 35%. FiberMark operates six plants in the U.S. and has had to layoff 80 employees company-wide. According to its CEO, the plants are not in danger of closing, stating that both are core manufacturing units within FiberMark. INTERNATIONAL PAPER, Memphis, Tenn., USA, will permanently close its St. Paul, Min., USA, corrugated container plant at the end of March due to overcapacity in the region. Management says the plant has limited expansion potential and its other area facilities are better equipped. The plant was acquired by IP in August 2008 from Weyerhaeuser and produces 500 million ft2 of corrugated packaging each year for use in the processed food, beverage, and paper industries. IN OTHER IP NEWS, the company says it will also close its corrugated cardboard container facility in Howell, Mich., USA, at the end of March. IP cites the declining auto industry and production overcapacity as reasons for the closure. The plant produces 900 million ft2 of corrugated packaging each year for automotive and industrial customers. Additionally, IP's Pineville, Texas, kraft linerboard mill recently took a six-week shutdown, affecting 180 workers. Management said that the drop in orders beginning in late 2008 is ongoing, resulting in the need to take downtime to balance supply with less demand. KFC, the fast food chicken chain, announced recently that it will switch from cardboard to paper wrapping in a move aimed at eliminating 1,400 tons of packaging annually. The wrapping is made from 100% renewable sources and is 100% recyclable and biodegradable. KFC recently stopped offering eat-in meals in cardboard boxes. KORSNÄS AB, of Sweden, reports that it is upgrading the coating section of a packaging board machine at its Frövi, Sweden, mill. The work is being undertaken to improve board quality and reduce downtime. Last October, Korsnäs ordered an upgrade to the drying section of PM 5 at its Gävle mill. MEADWESTVACO CORP., Richmond, Va., USA, has announced a series of actions "that will address the current economic challenges and also enable the company to capture the highest-value opportunities in targeted global packaging end markets." These actions include further reducing corporate and business unit overhead expenses, generating $100 million in cost savings in 2009, and closing or restructuring 12 - 14 manufacturing locations, creating a savings of $25 million, for a total of $125 million in pre-tax savings during the year. This will result in the elimination of approximately 2,000 positions, or 10% of MWV's global workforce, by year end, with some 800 of the reductions expected to be completed by the end of the first quarter. In taking these actions, the company said it is accelerating a longer-term strategic cost management plan begun last year to reduce its overhead cost structure, optimize its manufacturing footprint, and realize sourcing savings throughout its supply chain. PACKAGING CORP. OF AMERICA, Lake Forest, Ill., USA, has reported positive income for 4Q 2008, despite what Chairman & CEO Paul T. Stecko described as the most difficult quarter PCA has ever faced operationally. PCA's box volume was down almost 10% and mill downtime and slow-backs amounted to 90,000 tons. Containerboard inventories at year end stood at 2,000 tons below year-end 2007 levels. Even with unusually high cost inflation during the first half 2008, coupled with the economic downturn in 4Q, PCA's 2008 earnings were the second best since becoming a stand-alone company in 1999. PCA has four paper mills and 67 corrugated product plants in 26 states, making it the fifth largest producer of containerboard and corrugated packaging products in the U.S. PLASTIC PACKAGING will continue outpacing paper in selected markets where the two compete. According to an industry study, "Paper Versus Plastic in Packaging," plastic is expected to increase its share of the market to 49% (in pounds) in 2012. Historical demand for 1997, 2002, 2007, plus forecasts for 2012 and 2017, are provided by product and market. The study also considers market environment factors, evaluates company market share and profiles 40 U.S. industry players. SCA, Stockholm, Sweden, has awarded its 2008 Alf de Ruvo scholarship to Malin Bergenstråhle for her research involving contributions to the development of cellulose composites, and Stefan Lindström for research related to the consolidation of paper webs. Bergenstråhle's research is relevant to packaging materials, such as corrugated board products, and on future paper products with the focus on using renewable materials to replace fossil-based barriers. Lindström's research makes it possible to simulate what occurs at the micro level in the formation process, through use of computer-based modeling and simulation techniques, resulting in a fundamental understanding of how paper and paperboard structures are created during the formation process. This will result in a better design of the forming section of the paper machine and a correspondingly better-designed paper material for packaging, papers, and hygiene products. SMURFIT-STONE CONTAINER CORP., Chicago, Ill., USA, and its U.S. and Canadian subsidiaries recently filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del. The Canadian subsidiaries will file to reorganize under the companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Canada. Smurfit-Stone plans to use this process to restructure its debt, resulting in a capital structure more suited to support its long-term growth and profitability. The company's normal day-to-day operations will continue without interruption. All operations outside of the U.S. and Canada are excluded from this process and none of Smurfit-Stone's subsidiaries or operations outside of the U.S. and Canada commenced Chapter 11, CCAA, or similar proceedings. The company also announced that, pending court approval, it has received commitments for up to $750 million in debtor-in-possession financing to fund continuing operations. IN OTHER SMURFIT-STONE NEWS, the company reports that its Coshocton, Ohio, USA, containerboard mill operated throughout 2008 without a recordable injury based on Occupational Safety and Health Administration (OSHA) standards. The mill's 221 employees worked 507,766 injury-free hours while exceeding production goals by more than 400 tons during the one-year period. It is the first calendar year the mill has ever achieved zero recordable injuries. Smurfit-Stone has led the major integrated companies in the pulp and paper industry in safety performance every year since 2001. TEMPLE-INLAND, Austin, Texas, USA, has been granted rights by The Giddy Gander Co., Ridgewood, N.J., to use the Baby Wumbler image on all corrugated boxes and bins used for shipping and storage of watermelon to supermarkets and similar facilities. The deal centers on the Baby Wumbler, the focus of The Wumblers animated children's series as well as the entire Wumbler Patch brand. Baby Wumblers, according to The Giddy Gander Co., "are born from watermelon and provide a fun means to educate children to their social, global, environmental, and humanitarian responsibilities to humankind and the world." TETRA PAK, Sweden, has been recognized by the Forest Stewardship Council (FSC) for selling more than 100 million FSC-certified packages only one year since it launched the world's first FSC labeled food and liquid carton. Tetra Recart was the first package from Tetra Pak to be labeled with the FSC logo on supermarket shelves in Sainsbury's stores in the U.K. In 2008, the company expanded its sales of FSC labeled cartons to Italy, Denmark, Brazil, and the U.S. The company expects continued growth in 2009. VISY'S $300 MILLION expansion of its kraft linerboard mill in Tumut, NSW, Australia, is on track with completion expected by October, according to a local newspaper article. The project will increase linerboard output from 320,000 metric tpy to 700,000 metric tpy. The article stated that, currently, the mill exports about 150,000 metric tpy, which is expected to rise to 450,000 metric tpy once the project is completed. New Products and Equipment Orders CARAUSTAR INDUSTRIES, Austell, Ga., USA, has re-branded its construction tube product line to KlimatePRO/easy- POUR. The tubes, manufactured with 100% recycled paperboard, are made of weather-resistant fiber and adhesive that allow users to complete projects in inclement weather. TAPPI News There is still time to register for the Printing Enhanced Graphics on Corrugated Substrates! Date: February 25-27, 2009 Venue: PrintCon Corrugated Labs, Clemson University Location: Clemson, SC USA If you have never seen Clemson University's Printing and Converting Research Center, this is your opportunity to visit a state-of-the-art research facility while improving your skills and knowledge. This three-day seminar teaches what is required for printing enhanced graphics on combined corrugated board through a balanced mix of presentations and hands-on sessions. Led by industry experts and Clemson's training staff, you'll experience the entire flexographic printing process for corrugated from press components, fingerprinting, and color separations to platemaking and proofing. Learn how to plan a print job all the way through by making color decisions learned from press capabilities and using contract digital proofs. Online registration for the 2009 Printing Enhanced Graphics on Corrugated Substrates seminar is now open; or contact Kristi Ledbetter at kledbetter@tappi.org for more information. Chicago TAPPI tackles corr issues Date: March 3, 2009 Location: Oakbrook, IL Are you considering an upgrade or a new machine at your plant? Then you'll want to attend this meeting of Chicago TAPPI [www.chicagotappi.com]! This corrugated-centered group has planned an evening program that includes dinner and networking, followed by a program on "Upgrading vs. Buying a New Machine." Only minutes from O'Hare International Airport, the Marriott Oakbrook in Oakbrook, IL will be the host venue. Don't miss this chance to meet the hardworking members of Chicago TAPPI and tackle this critical question. For reservations or detailed program information, contact Karen Small at 708-467-0729 or via email at kmsbox25@aol.com. Plan now for Sino-Corrugated 2009 With a projected show area up to 600,000 square feet, Sino-Corrugated 2009 is set to become one of Asia's largest packaging shows. Sino-Corrugated 2009 will be held at Shanghai New International Expo Center from April 7 to April 10, 2009. As a biennial global event in the corrugated industry, Sino-Corrugated will showcase exhibiting suppliers' competitiveness and give attendees access to the global packaging market. The 2009 edition will not only attract visitors from Southeast Asia, the Middle East, Africa and other areas with medium and low-end demands, but will also invite competitive buyers targeting medium- and high-end products from Europe, North America, Japan and South Korea. For more information visit the Sino-Corrugated 2009 website. Great SCE '08 info available online Whether you were in Atlanta for the 2008 SuperCorrExpo or merely wished you were, you can experience the highlights online by reading the recap, viewing session materials, or downloading the 2008 Show Dailies. The SuperCorr'08 Show Dailies for September 23 and September 25 are available for downloading from the TAPPI website - a great resource for those who may have missed the big event, and a handy remembrance for those who were in attendance. Sessions available include Energy Saving Ideas, Project Commissioning Techniques, and more. You can also view the winners of the CorrPak® 2008 Competition. CorrPak® 2008 recognizes the finest commercially produced corrugated package products manufactured between August 15, 2006 and August 1, 2008. Don't miss out! To see what you missed, or to relive the happy memories of attending, visit the SuperCorr'08 website today. FBA & TAPPI Help you benchmark plant performance TAPPI and the Fibre Box Association (FBA) are offering this updated FBA/TAPPI Productivity and Waste Survey, which provides useful benchmarking data that is otherwise unavailable from any other source. With the information provided in this report, companies can evaluate their productivity, waste and starch consumption data against participating plants. Surveying top performers, it includes information on machinery and labor operations, as well as waste from box plants from primarily U.S. operations as well as several international plants. For more information on the Productivity and Waste Survey, or to order your copy today, contact Peggy Lacy, FBA Director of Data Services at placy@fibrebox.org or 847-364-9600. TAPPI Members reap energy savings TAPPI's utility cost reduction affiliate, Power Systems Group, is beginning a pilot program with pulp, paper, and converting operations to offer utility cost reduction services and energy industry information. These services will be offered on a pay-for-performance basis at a significantly discounted rate for TAPPI Members. Power Systems Group's focus is to create competitive alternatives to drive down the rate and unit cost paid by commercial and industrial end-users of electricity, natural gas, and competing fuels. In short, the company will help you save money on energy costs. Combined with the TAPPI Member discount on services, it's a great benefit! Members can learn more about the PSG benefit by logging in at www.tappi.org and selecting My TAPPI. Save these important dates It's not too early to begin making plans for the 2009 CorrExpo at the Hyatt Regency Hotel in Chicago, Illinois, Sept 1 - 3, 2009. You won't want to miss your chance to recharge and reconnect with your industry colleagues. SuperCorrExpo only comes around every four years, so you'll want to mark your calendars now! Dates have already been set for SuperCorrExpo 2012 at the Georgia World Congress Center in Atlanta, October 1 - 5, 2012. We hope to see you at BOTH of these events. Corrugated Packaging Division Calendar of Events February 25 - 27, 2009 Printing Enhanced Graphics on Corrugated Substrates - TAPPI/Clemson Seminar Series Clemson University, Clemson, SC April 7 - 10, 2009 2009 Sino-Corrugated Conference & Exhibit Shanghai New International Expo Center Shanghai, China Sept 1 - 3, 2009 2009 CorrExpo Conference and Exhibit Hyatt Regency Chicago

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