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January 23, 2007

Contents
Out of the Box: Industry News
New Products and Equipment Orders
News from TAPPI

Sponsored by
TAPPI Corrugated Packaging Division

Additional Resources

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.

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OUT OF THE BOX

CARAUSTAR INDUSTRIES is closing its Lafayette uncoated recycled boxboard mill in Lafayette, Ind. The mill has an annual production capacity of 64,000 tons. Caraustar also will close four tube and core converting facilities in Amarillo, Texas, Vacaville, Calif., Grand Rapids, Mich., and Leyland, U.K. The company additionally announced an investment of $4 million in five high-speed tube winders to be installed throughout the Caraustar system this year.

IN OTHER CARAUSTAR NEWS, the Atlanta, Ga.-based company announced a $25/ton price increase on all of its coated recycled paperboard grades effective with shipments beginning March 1. Caraustar is an integrated manufacturer of converted recycled paperboard, serving the tubes, cores, and composite cans market as well as folding cartons, gypsum facing paper, and other specialty paperboard product markets.


GRAHAM PACKAGING plans to close its manufacturing plant in North Charleston, S.C., effective in mid-February. The plant's 23 employees will receive severance based on years of service. The customer for which automotive lubricant bottles were produced at the plant has moved its operation. Future production of the bottles will be transferred to other Graham Packaging sites. The company, which will now operate with 84 plants worldwide, is a manufacturer and distributor of blow-molded plastic containers for the branded food and beverage, household, personal care/specialty, and automotive lubricants product categories.


GREIF INC., Delaware, Ohio, intends to offer up to $300 million of senior notes due 2017. The net proceeds from this offering will be used to fund the purchase of the company's 8-7/8% senior subordinated notes due 2012 and for general corporate purposes. If the tender offer, initially announced January 11, is not consummated, Greif will not issue the new senior notes. The company produces steel, plastic, fiber, corrugated and multiwall containers, protective packaging and containerboard, and provides blending and packaging services for a wide range of industries. It also manages timber properties in North America.


IMPERIAL BAG & PAPER CO., Bayonne, N.J., has received a subordinated debt and equity investment of $12 million from Key Principal Partners (KPP), in relation to Imperial's recent acquisition by Robert Tillis and management. Tillis, now CEO of Imperial, was a senior executive with Ampac Packaging, a Cincinnati, Ohio-based manufacturer of paper and plastic packaging products and a former KPP portfolio company. He has successfully owned and operated three different businesses in the packaging industry comparable to Imperial, a distributor of consumable paper and plastic packaging and supplies sold primarily to the restaurant and retail industries in the greater New York City area.


INTERNATIONAL PAPER will cease uncoated paper production at its Pensacola, Fla., Mill in April or May and begin converting its 350,000-tpy uncoated paper machine there to a 500,000-tpy lightweight linerboard machine. IP says it had originally planned to cease uncoated paper production at Pensacola in July, but moved the date forward to provide more time for the conversion and to allow an on-schedule startup on lightweight linerboard this fall. The conversion is part of the company's transformation plan to focus on its global uncoated papers and packaging businesses, as well as xpedx, its North American distribution business.


JK PAPER LTD, a group within the India-based J.K. Organization, is set to begin producing multi-layered packaging boards during the next three months from its Surat mill in the State of Gujaret in India, according to recent news reports. JK Paper currently has two integrated paper manufacturing operations-Paper Mills in the Eastern part of the State of Orissa with 125,000 metric tpy of coated, uncoated, and market pulp manufacturing capacity, and Central Pulp Mills in the Western part of the State of Gujarat (Surat) with 55,000 metric tpy paper and market pulp capacity. Both mills produce premium grade writing and printing papers, primarily map litho or copy papers. The company reportedly will begin producing around 60,000 metric tpy of packaging boards at the Surat facility, having invested some Rs 300 crore (approximately $68 million) to attain the capacity.


KAPSTONE PAPER AND PACKAGING CORP. announced that Andrea Tarbox is joining the company as VP and CFO, effective immediately. Tarbox most recently was a financial consultant for Stone Arcade Acquisition, which changed its name to KP&P after completing its purchase of International Paper's Kraft Papers Business earlier this month .Headquartered in Northfield, Ill., KP&P is the parent company of KapStone Kraft Paper Corp., which includes a paper mill in Roanoke Rapids, N.C., and a Ride Rite dunnage bag plant in Fordyce, Ark.. The business employs approximately 700 people


MEADWESTVACO will discontinue operations at its media packaging plant in Louisville, Ky., and its healthcare packaging plant in Garner, N.C., in an effort to improve overall operating efficiency. The closures will enable the company to maximize productivity at its U.S. manufacturing facilities. Production at the Louisville facility will discontinue and be moved to other U.S. facilities by March 31. The company will transfer production at its Garner facility to its manufacturing plant in Mebane, N.C., by April 30. Approximately 240 employees will be affected by the move and will receive 60-day notification and appropriate termination benefits as part of the transition.


OWENS-ILLINOIS has retained advisors to review strategic options for its plastics packaging business, including a possible sale. For the 12 months ended Sept. 30, 2006, O-I Plastics had revenues of some $770 million. The group manufactures healthcare packaging, closure systems, and specialty products for the pharmaceutical, healthcare, food and beverage, household, chemical and personal care industries. It has plants in the U.S., Mexico, Brazil, Hungary, Singapore, and Malaysia. O-I has retained Goldman, Sachs & Co. as its financial advisor in the matter.


SMURFIT KAPPA GROUP, Dublin, Ireland, reportedly has confirmed that it is considering a possible initial public offering (IPO). According to news reports, the company will be seeking approval from its lenders to amend certain terms of its senior credit facility which would facilitate an IPO during 2007. Smurfit Kappa was formed in late 2005 by the merger of Jefferson Smurfit Group and Kappa Packaging. It is owned by Madison Dearborn Partners, Cinven Limited, and CVC Capital Partners, and by management. The company is one of the world's largest producers of containerboard, corrugated and solid board containers, folding cartons, and paper bags.


ORBIS CORP., a subsidiary of Menasha Corp., recently completed it previously announced acquisition of the North American material handling business of Linpac Group. Included in the purchase are Linpac's manufacturing facilities in Georgetown and Bardstown, Ky., and sales, engineering, and testing capabilities in Shanghai, China. Orbis, based in Oconomowoc, Wis., develops plastic reusable packaging systems. Neenah-based Menasha specializes in corrugated packaging and high-quality point-of-purchase displays, plastic returnable packaging, in-store consumer promotion and pharmaceutical labeling and packaging. The company has more than 2,900 employees in facilities across North America.


AUTOMATÄN INC., based in Plover, Wis., has been purchased by Milwaukee-based private equity fund Lakeview Equity Partners. Automatän produces lithographic labeling equipment sold to the corrugated packaging industry worldwide. Lakeview Equity president W. Kent Velde said the company's products make it possible to add high-quality graphics to corrugated packaging. A partner in the acquisition, Kevin Widder, will serve as the new president and CEO of Automatän. Widder, who has more than 20 years of experience in the capital equipment industry, was previously president of Sheboygan packaging and sheeting systems manufacturer Pemco.


NEWS FROM TAPPI

Early-Bird Registration Ends on January 26th!
Corrugated Press Hands-On Maintenance Workshop
February 21-23, 2007
Charlotte, North Carolina
Participants in the Corrugated Press Hands-On Maintenance Workshop will acquire practical knowledge that they can apply immediately. This interactive course uses actual converting machinery, and is being held on the facility floor of Harper Machinery Corporation.

Class size is limited for the intimate, hands-on setting for this workshop. Register before January 26th for the best registration and hotel rates.

For more information visit www.tappi.org/07CORRMAIN, or call TAPPI Registration at + 1-866-850-0999 (toll free US and Canada), + 1-404-760-8177, or email registration@tappi.org.


Presentations Sought for 8th Research Forum on Recycling
The International Program Committee for the 8th Research Forum on Recycling announces an Invitation to Present at the 2007 event. Research engineers, scientists, and practitioners are encouraged to submit presentations on all aspects of recycling technologies and operations for raw materials, ranging from newsprint to mixed office waste. Presentation submissions should focus on basic and applied research results. Topics of special interest for the 2007 Research Forum on Recycling are listed online [www.tappi.org/07RECYCLE].

Those interested in submitting presentations for consideration may complete a submission online . The deadline for submissions is 9 February 2007.

The 2007 8th Research Forum on Recycling will be held 24-26 September 2007 in Niagara Falls, Ontario, Canada, with a recycle related tour on September 27th. The event is co-hosted by TAPPI and PAPTAC.


Learn "What's New" with Chicago TAPPI
"What's New in Corrugated" is the program title for the Chicago TAPPI Local Section meeting scheduled for Tuesday, February 6, 2007. Moderators will be Elaine Deak, Smurfit-Stone Container and Dennis Kaiser, Smurfit-Stone Container.

The meeting will be held at the Wyndham Drake Oakbrook in Oak Brook, IL. To register, or for more information, contact Ernie Moon at ErnieMGlor@aol.com or visit www.chicagotappi.com.


Visit TAPPI in Montreal!
If you plan to be in Montreal this February for Exfor 2007, be sure to stop by Booth #2026-2028. There you'll find the latest information from both TAPPI and PIMA, as well as selected TAPPI PRESS bookstore items, Paper360° issues and advertising information, and much more.

Exfor 2007 is co-hosted by the Pulp and Paper Technical Association of Canada (PAPTAC) and the Forest Products Association of Canada. The event is scheduled for February 5-9, 2007 at the Palais des Congres de Montreal in Montreal, Quebec, Canada. More information is available online.

Remember: If you plan to attend Exfor, visit TAPPI Booth #2026-2028 - it's a great way to meet TAPPI's headquarters staff and to learn more about our publications, membership benefits, and other opportunities.


History Channel this week features "Marvel"ous mill story
An innovative application of sustainable technology in papermaking will be featured in a segment on the History Channel's "Modern Marvels" program this week. The segment will air during the "Environmental Tech" episode on Wednesday, January 24, 2007 at 10pm (EST and PST), 9pm (CST) or 8pm (MST).

The segment will focus on technologies in use at Neenah Paper, Neenah, Wisconsin, a forerunner in the development of premium recycled papers nearly 20 years ago. According to the company, Neenah now uses a patented method to convert 5,000 tons of sludge per year into steam, electricity and glass aggregate. The company projects that the process will reduce its natural gas consumption by 80 percent a year. The "Modern Marvels'" web site states that the show celebrates "ingenuity, invention and imagination brought to life on a grand scale." TAPPI Members and others in the industry are encouraged to tune in on Wednesday and support the industry!


Withdrawal of TIPs
The following TIPs have been withdrawn due to lack of timely review as required by the guidelines. Any TAPPI members who wish to work on reinstating withdrawn TIPS should contact the Standards Department at standards@tappi.org or +1-770-209-7276.
  • TIP 0304-74 Understanding and troubleshooting hot melt adhesives
  • TIP 0305-07 Purchase order
  • TIP 0305-33 Cleanup procedures for flexo folder gluer/rotary diecutters
  • TIP 0305-35 Rotary diecutter urethane anvil maintenance
  • TIP 0305-36 Common operating problems and probable solutions: introduction
  • TIP 0305-42 Folding section
  • TIP 0305-44 Counter ejector section
  • TIP 0305-45 Squaring flap cut (center special) boxes
  • TIP 0305-49 Checklist: preparing diecuts for shipment
  • TIP 0305-06 Machinery considerations and selection
  • TIP 0305-23 Rotary cutting die maintenance
  • TIP 0305-32 Housekeeping at order and shift change and weekly
  • TIP 0305-43 Extruded glue mechanism supplement
  • TIP 0306-06 Drying and curing techniques for in-line flexographic printing
  • TIP 0402-23 Welding of duplex stainless steels
  • TIP 0412-02 Capacity chart for rotary table chip feeders (17 ft. diameter)
  • TIP 0412-09 Typical task time values - pulpwood handling
  • TIP 0508-10 An introduction to centrifugal cleaners
  • TIP 1101-03 Instrument symbols and nomenclature

Notice of TAPPI Test Methods in Ballot
The TAPPI Test Method regulations require public review of methods that are up for ballot. Normally this is available to TAPPI members on the web site, but this function is temporarily unavailable due to technical problems with the transition to the new TAPPI web site. This notice shall serve as the public notice of these reviews.

Listed below are TAPPI test methods that have recently gone out for ballot to the corresponding Standard-Specific Interest Group (SSIG). The date in parentheses is the closing date for voting. If you would like to review and comment on any draft and are not a member of the corresponding SSIG, you may request a copy of the draft being balloted by writing to standards@tappi.org.
  • T 245 cm-98 "Silicates and silica in pulp (wet ash method)" (February 5, 2007)
  • T 569 pm-00 "Internal bond strength (Scott type)" (February 12, 2007)
  • T 502 cm-98 "Equilibrium relative humidity of paper and paperboard" (February 12, 2007)


 

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