March 24, 2005

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AHLSTROM, Helsinki, Finland has announced a EUR 18 million (US$ 23.7 million) plan to expand its production capacity of supercalendered release base papers at its Turin, Italy plant. The worldwide demand for release base papers, used for the manufacturing of self-adhesive laminates and silicone coated release liners, is estimated to grow annually by 5-7%, on average. This is mainly driven by the increasing use of pressure sensitive adhesive (PSA) labeling for product identification, decoration and tracking. Ahlstrom's target is to exceed the average market growth in this business.

The investment in Ahlstrom Turin Paper Machine Number 8, scheduled for completion in January 2006, will include modification of several components of the paper machine and the off-line supercalenders. It will allow a significant machine speed-up, bringing Ahlstrom a capacity increase close to 20,000 metric tons annually.

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THE AMERICAN FOREST AND PAPER ASSOC. (AF&PA), Washington, D.C., USA announced its support for the statement released by ministers attending the "G8" meeting pronouncing a renewed commitment to address the pervasive problem of illegal logging. The world's major industrial nations agreed that the presence of illegally procured wood fiber affects the competitiveness of producers who operate legitimately within national and international environmental and trade rules. It undercuts legitimate producers and gives the entire forestry community a bad name.

Meeting in Derbyshire, United Kingdom, the Environment and Development Ministers of the G8 countries, along with the European Commissioners responsible for the environment and development, the European Union Presidency, and senior officials from the United Nations, World Bank, and IUCN--the World Conservation Union, discussed a wide variety of actions the global community can take to stem illegal logging.

A recent AF&PA study indicates that illegal logging steals billions of dollars (US) per year from developing countries and artificially depresses world timber prices by between 7% - 16%, on average. The study also reports that illegally harvested logs can be priced as much as 50% cheaper than legal logs. Since the cost of the log is the largest part of the cost of any forest product, that illegal log gives the bad actor a distinct cost advantage over a law-abiding company.

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APPLETON has named Mark R. Richards president and CEO. Richards succeeds Appleton's current chief executive officer, Doug Buth, who will continue as chairman of the board until his expected retirement on May 31, 2005. Richards, 45, currently serves as president of the Engineered Support Structures division of Valmont Industries, Inc. He will join Appleton as president and chief executive officer on April 4, 2005. Appleton is based in Appleton, Wisconsin, USA.

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CAL POLY, San Luis Obispo, California, USA said its Institute for the Study of Specialty Crops released a study which shows the cost of preparing state-mandated plans to harvest trees in California has increased more than 1200% over the last 30 years, making it difficult to manage forests and increasing the likelihood that forest land will be converted for other uses. The study found the typical harvest plan costs about US$ 30,000 to prepare, compared to US$ 2200 (adjusted to today's dollars) 30 years ago. The increasing cost of the harvest plans adds to the financial burden of managing forestland and economically squeezes landowners, the study concluded.

Major funding for the new report was provided by the California Institute for the Study of Specialty Crops (CISSC) at Cal Poly. The study included 607 timber harvest plans (THPs) with a median acreage of 73 acres. The study, "The Impact of California's Changing Environmental Regulations on Timber Harvest Planning Costs," can be found at the CISSC Web site at cissc.calpoly.edu/research.

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CASCADES FINE PAPERS GROUP, Rolland Division, Saint Jerome, Quebec, Canada is reducing emission of greenhouse gas (GHG) in partnership with Intersan and Gaz Métro. By implementing the plan, non-recyclable waste becomes a source of energy for the production of fine papers. Intersan captures biogas generated from the decomposition of waste buried at its Sainte-Sophie landfill, preventing its escape into the atmosphere. Gaz Métro transports the captured biogas through a 13-km pipeline to Cascades' paper mill where the biogas produces a good portion of the energy needed to power the paper production equipment. Cascades is forecasting that this green energy will fulfill 75% of its thermal power requirements.

The project required a C$ 2 million (US 1.7 million) investment by Cascades and is being implemented in partnership with Intersan and Gaz Métro. Biogas reclamation will divert 470,000 metric tons of CO2 to the mill annually; the use of biogas at the mill will result in a reduction of 70,000 metric tons of CO2 annually. Combined, the equivalent would be removing about 120,000 cars from the road.

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CORENSO NORTH AMERICA, Wisconsin Rapids, Wisconsin, USA said it recently affirmed its commitment to a systematic management approach that meets customer needs. The mill has achieved ISO 9001:2000 registration for a quality manufacturing system. Corenso North America is an operating unit of Corenso United Oy Ltd.

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CPBIS and PIMA are sponsoring a course "Management Development for Enhanced Performance" from May 9 to 13, 2005 at the Institute of Paper Science and Technology, Georgia Institute of Technology (GIT), Atlanta Georgia. Designed for managers and leaders at all level and in all functions of the industry, the course is taught by faculty of GIT, practitioners from the pulp and paper industry, and guest speakers. Learning objectives include:

• Learning about current and future competitive challenges that will affect the industry.
• Becoming proficient in the use of analytical tools to evaluate finance and accounting data for use in deciding alternate courses of action.
• Discovering approaches to manage diverse groups of individuals and creating a more cohesive team.
• Learning how to successfully deal with and manage change.
• Understanding critical traits of effective leadership.
• Achieving strategic outcomes at the negotiation tables with contractors and suppliers.
• Using effective approaches to select, motivate, involve and energize the work force.
• And more.

TAPPI members are eligible for a 2-for-1 discount on the US$ 2500-course. Those who register by April 1, 2005 will receive an additional US$ 100 off of published pricing. More information about the program, accommodations, and registration are available at www.cpbis.gatech.edu and at www.PimaWeb.org, or by calling Charley Burney at 404-894-1488.

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THE FREEDONIA GROUP, Cleveland, Ohio, USA has released "World Nanomaterials," a new study that projects world nanomaterials demand to reach US$ 90 billion in 2020. The 439-page report is available for US$ 5200 at the company's web site www.freedoniagroup.com or at 440-684-9600. Highlights of the study include:

• While many of the most ambitious, potentially world-changing applications are still years away, nanomaterials have begun to make a commercial impact, particularly in the advanced areas including the United States, Japan, and Western Europe.
• To date, nanomaterial use on a commercial scale has been limited to a few applications, like wafer polishing, textile treatments, and sunscreen lotions. In the longer term, nanomaterials hold the potential to improve the human condition via more effective drugs to treat disease, technologies to create safe water supplies for the world's poorest regions, and more efficient power generation.
• World demand for nanomaterials is expected to grow more than five-fold to US 3.7 billion in 2008, and by 2020 reach US$ 90 billion.
• The US will remain the largest market for nanomaterials, due to its large technologically advanced economy and its leading position in nearly every manger nanomaterials outlet, including high-end electronics, pharmaceuticals, construction materials, and consumer goods.
• Japan is a smaller nanomaterial market than the US, but it is significantly larger than any other nation, and is by far the leading investor in R&D on a per capita basis.

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INTERNATIONAL MECHANICAL PULPING CONFERENCE, IMPC 2005, is planned in Oslo, Norway for June 7-9, 2005. Mill tours will be on June 10, 2005. The conference covers most aspects of mechanical pulping, its manufacture and use, including fiber characterization, wood properties, grinding, fundamentals of refining, as well as bleaching and production and use of chemi- mechanical pulp. IMPC 2005 coincides with the celebration of the 100-year anniversary for Norway as an independent nation, and a visit to Oslo in June with for sure be a memorable experience. The organizer of the conference is The Technical Association of the Norwegian Pulp and Paper Industry (PTF). The conference will be held under the EUCEPA label, and co-sponsors are TAPPI, PAPTAC, SPCI and PI. For further information and registration form please see www.impc2005.no or e-mail: impc2005@congrex.no.

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INTERNATIONAL PAPER (IP), Stamford, Connecticut, USA announced that it has once again been named by Fortune magazine as the number one company for the "Forest and Paper Products" sector in the magazine's annual report of "America's Most Admired Companies." The survey assessed companies on eight key attributes of reputation: innovativeness, employee talent, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment value and quality of products and services. The "Most Admired" survey was conducted by an independent management-consulting firm on behalf of Fortune.

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JIANGXI CHENMING PAPER CO. LTD., China has started up a large LWC paper production line. The new 1213 mtpd Metso OptiConcept production line, delivered to the greenfield paper mill in Nanchang, Jiangxi province, is one of the largest LWC lines in China.

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MOHAWK PAPER MILLS INC. has named Thomas O'Connor Jr. chairman and CEO. Prior to this appointment, O'Connor, Jr., was President and CEO. O'Connor represents a third generation of the O'Connor family closely identified with the family-owned business.

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NIAGARA MOHAWK POWER CORP., Syracuse, New York, USA has received approval from the New York state Public Service Commission to build an electric transmission line connecting a planned power plant in Rensselaer to the grid. The commission voted to approve the 8.1-mile-long overhead electric transmission line, connecting Besicorp-Empire Development Co.'s planned power plant to the bulk electric grid at the Reynolds Road Substation in North Greenbush. Besicorp, an affiliate of Besicorp Development Inc., Kingston, New York received state approval to build the 505-megawatt natural gas fired power plant in September 2004. A recycled newsprint manufacturing plant will also be located at the site.

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RESEARCH AND MARKETS, Dublin, Ireland reports that China's demand for pulp and paper chemicals has grown at a fast pace in the past decade. In the next five years, both production and demand will continue to grow. The Chinese market demand for pulp and paper chemicals will increase by 7.5% annually to reach 8,163,400 metric tons in the year 2010. Pulp and paper chemicals output reached 1,632,000 metric tons in 1990 and the figure was about 3,930,000 metric tons in 2000 with the average annual growth rate of 9.2% in the past ten years. China will remain a large exporter of pulp and paper chemicals throughout this century. China will also keep importing certain types of pulp and paper chemicals due to the surging demand and insufficient supply of top grade products by the domestic market. For more information visit http://www.researchandmarkets.com/reports/c14311.

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STORA ENSO, Helsinki, Finland said it would acquire UPM's 29% minority shareholding in Corenso United Oy Ltd, gaining 100% ownership of the company. Stora Enso is buying the shares to gain full control of the company and to develop independently this strategic business area. The transaction is subject to approval by competition authorities and is expected to close by the end of the second quarter 2005. Corenso United Oy Ltd is a leading producer of coreboard and cores and tubes for industrial use. The main users of cores and tubes made from Corenso's coreboard include manufacturers of paper and board, textile yarn, plastic films and flexible packaging, and metal foil.

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THE UNITED NATION'S FOOD AND AGRICULTURE ORGANIZATION (UN FAO), New York, New York, USA released several of its conclusions of the 2005 edition of the State of the World's Forests (SOFO 2005), a report presented by FAO in Rome, Italy the week of March 17 to about 100 heads of national forestry agencies at the international Committee on Forestry. Those conclusions include:

• Economic viability, including the environmental and social benefits deriving from forests, is a pre-requisite for wider adoption of sustainable forest management practices.
• Enhancing economic benefits from forests and trees, and their equitable distribution, are also critical factors in the development of forested areas.
• Marginalization of forestry in social and economic development may fuel armed conflicts, whereas sustainable forestry that creates employment and generates income can help to avert the emergence of conflicts and promote post-conflict rehabilitation.

More information is available at: http://www.fao.org/newsroom/en/index.html.

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UNISOURCE, Atlanta, Georgia, USA has been awarded SmartWood certification for its largest fine paper division, located in Addison, Illinois. The certification recognizes Unisource for offering paper that comes from forests managed to protect wildlife habitat and invigorate communities. SmartWood, a program of the Rainforest Alliance, is an independent, third party certifier accredited by the Forest Stewardship Council (FSC), the global body that sets standards for responsible forest management. Unisource is the largest privately held paper distributor in the United States,

Unisource-Addison purchases paper from mills including Domtar, Neenah Paper, Mohawk, and Finch Pruyn, whose pulp comes from forests that meet the FSC's standards for environmental and social responsibility. SmartWood/FSC chain-of-custody certification tracks paper all along the supply chain, from the forests where the trees are harvested to the retail store, ensuring that it is produced in accordance with strict criteria.

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WEB HANDLING RESEARCH CENTER at Oklahoma State University (OSU), Stillwater, Oklahoma, USA announces "IWEB 2005," the 8th International Conference on Web Handling, which will be held at OSU June 5 - 8, 2005. The purpose of the conference is to expand the knowledge base in web handling, and to provide researchers and engineers from various countries a forum to exchange ideas, present technological advances, and discuss future directions. Over 1000 engineers and scientists from fourteen countries attended the first seven International Conferences on Web Handling.

Papers will be presented on air support conveyances; measurement techniques; lateral mechanics, dynamics and control; out-of-plane dynamics; winding and unwinding; slitting and runnability; longitudinal dynamics and tension control-mechanical and electrical aspects; wrinkling; sensors and signal processing. For information about the conference contact Conference Coordinator Linda Rogers at 405-744-9217 or rogerlm@okstate.edu. More information is also available at www.engext.okstate.edu.


For more detail on the stories above, visit the Industry News section of the TAPPI website.

NEW PRODUCT OF THE WEEK: Clariant Shading Guides
Three new technical guides deal with the shading of paper, covering shading of white paper, pigment dispersions for shading white paper, and dyestuffs for shading. Detailed descriptions of the type of products available, their preparation and application, methods and levels of use, advantages and disadvantages, plus general recommendations are included for all three subjects. More information is available online.

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MICHIGAN STATE UNIVERISTY (MSU) - SCHOOL OF PACKAGING, East Lansing, Michigan, USA and its Center for Food and Pharmaceutical Packaging Research, recently conducted freeze/thaw tests which found MeadWestvaco's Coated Natural Kraft(R) (CNK) folding cartonboard outperformed bleached board (SBS), poly-coated SBS, and coated recycled board (CRB). MSU's School of Packaging, which provides scientific testing, research, and product evaluations, began the long-term research project in April 2004 to measure the varying compression strength among the paperboard options currently available to frozen food manufacturers.

MSU researchers reproduced a typical freeze/thaw distribution cycle, and subjected 50 identical carton samples each of CNK, SBS, CRB and polyethylene- coated SBS to one-hour of freezing at 0 degrees F followed by 30 minutes thawing at 72 degrees F. Samples were run through the cycle five times, and compression strengths were measured at each cycle. By the end of the five testing cycles, CNK's compression performance was about double that of SBS, the poly-coated SBS and CRB.

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NEENAH PAPER, Alpharetta, Georgia, USA announced its launch of a new brand of fine papers called the Eames(TM) Paper Collection. The brand features three palettes and unique surface finishes previously unexplored on paper and was inspired by the legendary designers Charles and Ray Eames. The finishes not only embrace the Eames spirit in principle, but also specifically connect to the textures, patterns and colors found in their architecture, design and photography and the Collection was developed to give graphic designers and paper enthusiasts a new toolkit of papers to inspire their printed promotions and projects.

Commentary by Jim Thompson
Contributing Editor
jim.thompson@tappi.org

The 1970s were known for many things, including spinning mirror balls, funny clothes and amazing hairstyles. I also remember them as a time when manufactured goods were often of questionable quality. Automobiles in particular come to mind, especially those made in the USA. I know--I bought six new ones in that decade made by the Chevrolet Division of General Motors (do not remind me, I already know a sign of insanity is repeating the same behavior expecting a change in outcome).

Then we had books such as "In Search of Excellence..." and other such tomes that got us manufacturers off our collective duffs (along with the fact that our hungry competitors were beating the pants off us) and quality became important. In fact, in the 1980s we learned that top quality was no more expensive to manufacture than poor quality if you got your act together, held people to high standards and simply tried.

It seems as though we have experienced significant recidivism, especially in the area of service, but I would argue that there has been a general slip in product quality as well.

An example in service comes from the hapless U.S. Post Office. This example happens to me often. In one of my businesses we send out sales mailers to paper mills. Many mills operate from two zip codes (postal codes in the rest of the world)--one for their business mailbox and one for their physical address (the second needed if you are sending a courier delivered package). So what happens if you send something in the U.S. mail and happen to mix up the postal codes? It is kicked back with a big stamp: "no such address." Now apologists for the U.S. Postal Service may say, well, these things are all read by computers these days and that is why such things happen, and besides, Jim, your organization made the mistake. Agreed, but my response would be that computers can be programmed, and they can be programmed to handle this problem, too. What happened to the Post Office that was dedicated to delivering the mail? It is an attitude at the top of the organization that lets this condition exist.

As for manufacturing, I think in response to the quality emphasis, computer manufacturers, control equipment manufacturers and other similar suppliers rushed to fill the void and fix the quality problems in the 1980's and 1990's. Now, that game may have played out, and if it has we are going to have to hold employees, salaried, hourly and at all levels, accountable for doing their jobs. Admit it--many get by with little consequences for their day-to-day actions where you work. Management teams that can instill an esprit de corps and hold employees accountable for excellent results just may be the next big management wave. Expect insightful corporate managements to find ways to overcome their fear of discharged employee lawsuits and find ways to hold employees responsible for every minute of every day. It just may be the difference between survival and obscurity.

By the way, you might be a slovenly bureaucrat if ... you have no idea who the top five customers of your facility and your company are.

For ethics this week, if we followed you around your workplace all week with a video camera, would you be proud to show us the tape? We will talk next week.

Editor's Note: The opinions expressed in this column are those of the author only, not TAPPI.

TAPPI Practical Papermaking Conference offers topics important to everyone in today's paper industry
May 22-26, 2005, Milwaukee, WI
Attend the TAPPI Practical Papermaking Conference in conjunction with TAPPI Paper Expo in Milwaukee to find out how you can optimize existing systems and equipment. Plus, take home practical ideas and ways to make your mill more productive and more cost efficient. Find out more online.

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March issue of Frontline Focus now online
The second issue of Frontline Focus, TAPPI's new newsletter written by and for maintenance and operations personnel, is now available. Subscribe your mill, read previous issues, and learn more about Frontline Focus online.

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It's not too late to register for TAPPI Short Courses in April
Don't miss your opportunity to attend one of seven TAPPI Short Courses offered next month. Topics include maintenance, winding operations, tissue runnability, wet end operations, and more. Get all the details online.

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TAPPI Coating Conference Pre-Registration Deadline is this Friday
Save when you register for the TAPPI Coating Conference and Exhibit by March 25. Attendees will learn about the latest developments in coated paper, network with peers and industry experts, and experience new coating industry products and services at the Supplier Exhibit.

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Upcoming TAPPI Virtual Seminars Cover Safety and Corrugated Topics
TAPPI will offer four Virtual Seminars in April on a variety of topics including safety, corrugator centerlining, corrugated engineering audits, and one-box set up. For program details and registration information please visit the TAPPI website.

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Plan Now to Attend the European PLACE Conference
TAPPI's European PLACE Conference is the premier technical event for the European flexible packaging and converting industry. Find out more online!

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Web Tip of the Week
Ask the Experts is a free online service exclusively for TAPPI members that connects members with experts throughout the pulp, paper and converting industry. More than 50 industry experts have volunteered to share their expertise with other TAPPI members via email. To take advantage of this service, login at www.tappi.org and click on the People & Resources heading located on the left side of the page. You'll then see the link for Ask the Experts. Once on the Experts page, simply choose an expert from the list, then submit a question and you will have your response in two business days.