March 17, 2005

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THE AMERICAN FOREST AND PAPER ASSOC. (AF&PA), Washington, D.C., USA says U.S. paper and board capacity will likely rise slowly through 2007. Following three consecutive years of contraction, U.S. paper and paperboard capacity held stable in 2004 at about 100 million tons, according to the AF&PA's 45th Annual Survey of Paper, Paperboard, and Pulp Capacity. Paper and paperboard capacity previously contracted 1.9% in 2001, 1.3% in 2002, and 0.4% in 2003. The number of permanent mill shuts fell from thirteen in 2002 and twelve in 2003 to seven in 2004. Machine closures dropped from 40 in 2002 and 39 in 2003, to 21 in 2004. Firming demand for paper and paperboard products and the industry's improved financial performance may have played a role in stabilizing capacity. View more complete information on the 45th Annual Survey online.

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THE CAMPBELL GROUP LLC, Portland, Oregon, USA has successfully completed an independent third party audit of its management practices on forestland owned by Cathlamet, Pacific West, and Rainier Timber Companies. PricewaterhouseCoopers LLP, an internationally recognized independent auditing and accounting firm, has certified that The Campbell Group met the standards required under program guidelines of the 2002-2004 Sustainable Forestry Initiative(R) Standard. The Campbell Group now manages more than 500,000 acres of forests under the SFI Standard in Oregon and Washington.

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GEORGIA-PACIFIC (G-P), Atlanta, Georgia, USA has been ordered to pay US$ 9.3 million in an asbestos verdict. A Dallas, Texas, jury has awarded the money to the family of a Texas man who died from a cancer caused by exposure to asbestos fibers as a child, according to a report by the Atlanta Business Chronicle. In the lawsuit, the family of Timothy Shawn Bostic said the man was exposed to asbestos while working with his father as a child and teenager in the 1960s and 1970s. The jury found G-P negligent for failing to warn about the asbestos dangers, and awarded his family US $3.1 million in compensatory damages and US $6.2 million in punitive damages. G-P stated that its product did not cause Bostic's illness, and that the trial court erred in several significant rulings. G-P plans an appeal, according to the report.

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INTEGRATED PACKAGING CORP. (IPC), New Brunswick, New Jersey, USA announced the opening of a new corrugated manufacturing plant in Alexandria, Louisiana. With plans to employ more than 50 people, the 60,000 square-foot sheet plant will make shipping boxes for liquid detergent packaging. Currently the facility operates one shift and plans to have three shifts by May 2005. IPC is the largest African-American owned corrugated manufacturing company in the U.S. The plant, which will be run by IPC, is a joint-venture operation with Georgia-Pacific Corp., Atlanta, Georgia.

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INTERNATIONAL PAPER (IP), Stamford Connecticut, USA announced it has signed an agreement to sell its Industrial Papers Business to Kohlberg and Co., LLC, Mt. Kisco, New York for approximately US$ 180 million subject to certain adjustments at closing. The Industrial Papers Business includes the lightweight packaging papers and pressure sensitive papers segments and related converting assets. The companies expect to close on the sale in the second quarter of 2005, subject to various closing conditions and any required regulatory approval.

Included in the Industrial Papers sale agreement are paper mills in DePere and Kaukauna, Wisconsin; the Akrosil business with paper converting facilities in Menasha, Wisconsin, Lancaster, Ohio, and Heerlen, Netherlands; and Thilmany Packaging located at the Kaukauna Mill. These operations employ approximately 1400 people. The agreement with Kohlberg also includes a supply contract for IP to produce lightweight specialty papers at its mill in Androscoggin, Maine.

IN OTHER IP NEWS: IP and The Conservation Fund, Arlington, Virginia will provide national recognition and US$ 10,000 cash grants to two conservation/environmental education leaders at an awards ceremony in Washington, D.C., this summer. IP, one of the world's largest paper and forest products company and the largest tree seedling grower worldwide, partners each year with The Conservation Fund, a non-profit organization seeking sustainable conservation solutions for the 21st century, to sponsor the IP Conservation Partnership Award and the IP Environmental Education Award. The $10,000 awards are unrestricted grants from the IP Co. Foundation. Award nominations are being accepted through April 15, 2005. For complete information and nomination, go to IP's website, www.internationalpaper.com, or The Conservation Fund's website, www.conservationfund.org.

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KESKO FOOD, Helsinki, Finland, which operates in the grocery trade and UPM, Helsinki are testing electronic price display systems at K-Citymarket Malmi in their home city. About 150 electronic price labels of different size have been installed in the food department of the hypermarket. This is the first pilot in Finland that is based on paper-like display technology. Its focus is to test how electronic price display works in the store environment and how paper-like display technology suits this purpose. The companies also want to gain experience and customer feedback on electronic price display.

Electronic price labels enable the updating of product prices on-line from the checkout system. Prices on the label and in the checkout system are therefore always identical and there are no extra delays in the price updates. Electronic price displays are tested at K-Citymarket Malmi for the products whose prices change fast, such as fruit, vegetables and special offers.

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THE NEW YORK BOARD OF TRADE (NYBOT), New York, New York, USA announced new trading hours for the pulp futures and options contracts. Markets will open at 7:55 AM and close at 9:00 AM. All times are Eastern, and changes were effective Monday, March 14, 2005.

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PLUM CREEK TIMBER CO., Seattle, Washington, USA has been recognized by Georgia Governor Sonny Perdue and the Georgia State Department of Natural Resources as a 2004 Forestry for Wildlife Program (FWP) Partner for the company's outstanding contributions to the state's wildlife and wild places. FWP is a voluntary annual program designed to promote the integration of wildlife conservation into corporate forest management practices. Plum Creek practices sustainable forestry using techniques that protect wildlife on all of its timberlands, with approximately 8 million acres in 19 states. The company manages more than 950,000 acres of timberlands in Georgia and employs more than 90 people in the state.

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SCA, Stockholm, Sweden announced that competition authorities have approved its acquisition of Munksjö's tissue operations. The acquisition is expected to be complete early in the second quarter of 2005. The acquired tissue operations will be integrated into SCA's business group, Tissue Europe. From 2005, SCA's global tissue operations will be reported as a joint segment in the external accounts.

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THE FOOD AND AGRICULTURE ORG. OF THE UNITED NATIONS (UN-FAO), New York, New York, USA said its Ministerial Meeting of Forests and the Committee of Forestry, meeting this week in Rome, have discussed several key issues including: international cooperation on forest fires; combating deforestation and the role of the forest sector in post-tsunami rehabilitation; and Millennium Development Goals. Talks included, specifically:

• More discussions will follow for the international cooperation on forest fires: Globally, an average of 400 to 500 million hectares burn each year from forest fires. As a response, bilateral and multilateral cooperation in forest fire management has increased over the past few years. Until now, however, cooperation on forest fire management has focused on fire suppression rather than prevention.
• The ministers discussed, among other things, the role of forestry in the rehabilitation of Asian communities following the recent tsunami disaster.
• Regarding Deforestation and Millennium Goals, the ministers decried the state of global forest degradation and reconfirmed their commitment to sustainable forest management and to improved coordination of economic, environmental and social policies for enhanced contribution of forests to development and achievement of the Millennium Development Goals.
• Some 400 representatives of member countries, non-governmental organizations, and members of the private sector will discuss ways to implement the commitments to which ministers agreed during a previous meeting. The State of World's Forests 2005, a biennial FAO publication, will also be launched during the committee meeting. The committee meets every two years in Rome to debate key global forestry issues and give advice to FAO on its work program on forests. It is one of the committees of the FAO's Council.

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THE U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA), Washington, D.C., USA has announced the availability of funding for demonstration or verification of alternatives to fixed industrial gauging devices using radioisotopes. Specifically, the funding is for: the demonstration or verification of existing alternative gauges (non-nuclear or reduced activity gauges), and emerging technologies (e.g., research and development funding).

This is an opportunity for companies interested in moving away from nuclear-based gauges to work with gauge manufacturers to seek funding to demonstrate an alternative technology or further explore the development of an alternative technology. In recent years, TAPPI has worked with EPA and its contractor, Trinity Engineering Associates, in exploring the feasibility of alternatives to fixed industrial gauging devices using radioisotopes. The response deadline is March 28, 2005. Requests for Quotes (RFQs) and Statements of Work (SOWs) are now available on EPA's website.

For Current Technologies: www.epa.gov/oamhpod1/admin_placement/0500116/index.html

For Future Technologies:
www.epa.gov/oamhpod1/admin_placement/0500117/index.html

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UNIVERSAL FOREST PRODUCTS, Grand Rapids, Michigan, USA announced its plans to donate cash, goods, and services worth up to $100,000 or more to Habitat for Humanity International. Universal, the nation's leading supplier of wood and wood- alternative products announced the gift to commemorate the company's anniversary, "50 years of building success." Universal will present $1000 to Habitat for Humanity affiliates in each of the 86 communities in which the company has operations. In addition, many of Universal's local plants will supplement the corporate donation with additional gifts of products and labor.


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

ONLINE EXCLUSIVE OF THE WEEK
"Bringing headboxes up to their potential", by Björn Engström. This article explores the need for flow stabilizing elements in older headboxes and several improvement strategies.

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WAUSAU PAPER, Mosinee, Wisconsin, USA has introduced OptiCore^TM brand bath tissue and coordinating dispensing systems in its Bay West® line of "away-from-home" products. The patented system features increased capacity and a two-part core to ensure maximum use of each tissue roll in the dispenser, lowering costs for end-use customers by reducing product waste and maintenance time. OptiCore tissue is available in premium DublSoft® and 100% recycled EcoSoft^TM Green Seal ® products and features improved embossing. The OptiCore tissue system is also compatible with the company's new Revolution^TM 3-Roll and Dubl-Serv® 2-Roll Side-by-Side dispensing systems, which feature sleek, contemporary styling and a locking cover.

ASHLAND SPECIALTY POLYMERS AND ADHESIVES, Dublin, Ohio, USA is increasing prices on all pressure-sensitive adhesives, including solution and emulsion acrylics, and solvent and hot-melt rubber-based products. The 5 - 10% adjustment will be effective globally on April 15, 2005.

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DOW CHEMICAL CO., Midland, Michigan, USA said it will increase list and off-list prices of VERSENE* Chelating Agents by US$ 0.04/lb. in North America, effective April 1, 2005, or as contracts allow. This price increase will apply to all grades and forms of the following products: VERSENE 100, VERSENE 100 LN, VERSENE 100 XL, VERSENEX* 80, VERSENOL* 120, VERSENE Diammonium EDTA, and VERSENE Tetraammonium EDTA.

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DUPONT TITANIUM TECHNOLOGIES, Wilmington Delaware, USA announced a price increase for all DuPont titanium dioxide grades sold in several markets effective April 1, 2005 or as contracts allow.

• In North America, the increase will be US$ 0.05 per pound. This is in addition to the US$ 0.06 per pound increase announced in December 2004.
• In Europe, the increase will be 110 Euros (US$ 147) per metric ton.
• In the Middle East and Africa, the increase will be US$ 150 per metric ton.
• In Asia Pacific, excluding Japan, the increase will be US$100 per metric ton.

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KERR-MCGEE CHEMICAL LLC, Oklahoma City, Oklahoma, USA and its affiliates will raise prices on TRONOX(R) titanium dioxide pigments effective April 1, 2005 or as contracts allow. While other increases may be announced locally within each region, the prices will increase in the following manner:

• In North America, a US$ 0.05 per pound increase.
• In Canada, a C$.06 (US$ 0.05) per pound increase.
• In Europe, a EUR 110 (US$ 146) per metric ton increase.
• In the Middle East and Africa, a US$150 per metric ton increase.
• In Asia and the Pacific area (excluding Japan), a US$100 per metric ton increase.

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KRONOS WORLDWIDE INC., Crabury, New Jersey, USA announced price increases for all Kronos titanium dioxide grades sold in all markets worldwide. This announcement follows the December 2004 and January 2005 increases on all Kronos titanium dioxide grades, which are expected to be fully implemented by April 1, 2005.

Effective April 1, 2005, or as permitted by contract, prices will increase as follows:

• In the United States, by US $0.05 per pound.
• In Canada, by C $0.06 (US$ 0.05) per pound.
• In Europe, by EUR 100 (US$ 1.33) per metric ton.
• In Eastern Europe, by US $150 per metric ton.
• In the Middle East and Africa, by US $150 per metric ton.
• In South and Central America, by US $150 per metric ton.
• In Asia Pacific, by US $150 per metric ton.

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

You may recognize our title this week as Boeing's corporate tag line. I do not know if they have it trademarked or not, so I am going to give them credit right here and now for it.

Yes, Boeing, set some new frontiers this past week when they sacked CEO Harry Stonecipher for "...actions inconsistent with Boeing's Code of Conduct." The March 7th press release went on to say, "The Board concluded that the facts reflected poorly on Harry's judgment and would impair his ability to lead the company." In case you were on Mars last week, Stonecipher admitted to having an affair with a female Boeing employee.

Now, butchering a quote from a favorite book of mine, you might say, "let those without dalliances cast the first Stonecipher", or perhaps, as my kids would say, "whatever." Yet I think the Boeing board of directors is on to something.

First, modern culture is clearly heading for a more conservative stance. This is not surprising--over time cultures move from tolerance of liberal personal actions to complete intolerance. Then the cycle repeats. We have just experienced a relatively long period of personal action liberalism (forty plus years) and now the pendulum is swinging the other way.

The important matter for all of us, though, is that corporations, and particularly their boards of directors, are learning that employees cannot compartmentalize actions that fall in the legal, ethical and moral areas. In other words, it is very likely if one is misbehaving (by whatever standards one wants to use) in one area of life, they may be doing so in other areas. The Board of Boeing said so in the quote above. What they did not say, but implied was something like this: we do not know if Mr. Stonecipher is misbehaving in other areas of this life, especially those that affect his performance at Boeing, but we are not going to take a chance.

I would like to say I saw all this coming over a year ago when there was what was labeled a "wardrobe malfunction" at a certain sporting event. To me that was the pivotal moment when liberal personal actions started to become unacceptable--it was the first time there was a challenge to ever more liberalism in the public media.

But all of this affects us in our industry as follows. Expect personal actions to be pulled more and more into the overall judgment of your performance at work. In some cases this will be a good thing, in many it will be a bad one. For some people, a little pressure will cause them to clean up their act. For others, it will cause them to go underground with personal actions they feel are no one else's business. The important thing is this: the rules of personal conduct are at an inflection point, reaching from the janitor to, obviously, the boardroom. This may be the biggest business culture shakeup of the next decade.

By the way, you might be a slovenly bureaucrat if ... you hold a meeting whose only result is to have another meeting (many people liked this feature last week, so we will continue it for a while).

Be safe this coming week. The first calendar quarter is ending soon--how is your facility's safety record going? This is a good time to examine it and offer praise if it is going well and revaluate your safety programs if the first quarter has not been all that great. We will talk next week.


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

Nominations Sought for TAPPI Board of Director Candidates
Individuals or member groups who would like to nominate a candidate for TAPPI's 2006 Board of Directors election should contact the office of the TAPPI President by May 15, 2005. The candidates must be TAPPI members. Nominations should be submitted by email to Nominating Committee Chair Kathleen.bennett@tappi.org or by mail to TAPPI President, 15 Technology Parkway South, Norcross, GA 30092 USA.

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TAPPI Coating Conference Features Panels, Technical Papers, Training Sessions
Don't miss the annual TAPPI Coating Conference and Exhibit, April 17-20, 2005 in Toronto. At the TAPPI Coating Conference, the number one gathering of coating formulators in the world, you'll learn about the latest developments in coated paper, network with peers and industry experts, experience new coating industry products and services at the Supplier Exhibit and improve your skills. Everyone associated with the coating and graphic arts industry will benefit from attending this conference. Register by March 25 and save!

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Upcoming Events
View the complete list of upcoming TAPPI Events, conferences, and short courses online.

Gulf Coast Local Section
"Size Press & Finishing" Technical Meeting
March 31, 2005, Columbus, GA

Shipping, Receiving and Warehousing Workshop
April 4-6, 2005, Nashville, TN

TAPPI Extrusion Coating Short Course
April 4-6, 2005, Holiday Inn Presidential Conference Center Hotel
Little Rock, Arkansas

TAPPI/IDCON: Maintenance & Operations Reliability Week
April 4-7, 2005, Perdido Beach Hotel, Orange Beach, Alabama

TAPPI Wet End Operations Short Course
April 4-7, 2005, Perdido Beach Hotel, Orange Beach, Alabama

TAPPI Web Handling and Converting Short Course
April 4-5, 2005, Perdido Beach Hotel, Orange Beach, Alabama

BLRBAC SPRING 2005 Meeting
April 4-6, 2005
Crowne Plaza Hotel/Atlanta Airport, Atlanta, GA

TAPPI Brown Stock Washing Short Course
April 4-6, 2005, Perdido Beach Hotel, Orange Beach, Alabama

Empire State TAPPI Trade Show and Spring Conference in Conjunction with New York / Canadian PIMA
April 7th - 8th, 2005, Saratoga Springs, New York

TAPPI Winding Operations
April 6-7, 2005, Perdido Beach Hotel, Orange Beach, Alabama

Maine - New Hampshire Local Section
Maine Forest, Pulp, Paper and Allied Industry Symposium
April 6 - 8, 2005, University of Maine, Orono, ME

TAPPI Improving Screening & Cleaning Efficiencies Short Course
April 6-8, 2005, Perdido Beach Hotel, Orange Beach, Alabama

Value of Bi-Annual Corrugated Engineering Audits to your Organization Virtual Seminar
April 8, 2005, 1:00 - 3:30 p.m. U.S. Eastern Time

IPST Papermakers' Classic - 2005
April 9, 2005, Wolf Creek Golf Course, Atlanta, GA

Lake States Local Section
"Paper Machine Operations & Testing" Interactive Learning Sessions
April 12, 2005, University of Wisconsin at Stevens Point, Stevens Point, WI

Increased Profits Through Centerlining Your Corrugator Virtual Seminar
April 15, 2005, 1:00 p.m. - 3:30 p.m., U.S. Eastern Time

TAPPI/PPSA Role of Accountability in Achieving Safety Excellence Virtual Seminar
April 21, 2005, 1:30 p.m. - 3:00 p.m. U.S. Eastern Time

One Box Set-up for Flexos and Die Cutters Virtual Seminar
April 26, 2005, 1:30 - 2:30 p.m.

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Web Tip of the Week
It's easy to renew your membership or join online at www.tappi.org. Simply click on the Membership heading located on the left hand side of www.tappi.org. Join/Renew TAPPI Membership appears immediately underneath the main heading.