January 25, 2007
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FROM THE WIRE
THE FIRST U.S. PULP AND PAPER-BASED BIOREFINERY has moved another step closer to reality with Flambeau River Biorefinery of Wisconsin signing an agreement this week with American Process Inc. of Atlanta, Ga., to provide project management and engineering services for its cellulosic ethanol biorefinery to be constructed adjacent to the Flambeau River Papers mill in Park Falls, Wis. The mill, which produces 400 tpd of book printing and copy grades on three paper machines, recently announced plans to replace its natural gas boilers with a biomass boiler or gasifier, making Flambeau River Papers the first energy independent integrated mill in North America.
The biorefinery will be designed to produce 20 million gal of cellulosic ethanol per year from the mill's spent pulping liquor. Technology selected for the project is American Process' AVAP, which enables production of ethanol without putting additional pressure on the wood basket and without fossil fuel consumption. As designed, the new biorefinery will have a positive carbon impact of ~140,000 tpy, i.e., it will displace carbon dioxide from the atmosphere. Once in operation, expected to begin in 2009, it will increase employment at the Park Falls area by approximately 100 people.
BUCKEYE TECHNOLOGIES intends to sell its fiberline operation in Lumberton, N.C. Chairman John Crowe explained that "when Buckeye entered the bleached cotton fiber market in 2001, the new line at Lumberton complemented the existing cotton linter fibers operation. In August 2003, we consolidated the Lumberton cotton linter fibers operation into our Memphis facility due to a decline in demand for cotton content printing and writing papers. Since 2003, the Lumberton team has made necessary modifications to costs and product mix to become a profitable, growing, and labor efficient stand-alone operation. However, with the closure of the cotton linter fibers operation, Lumberton is no longer a strategic component of our future plans and we believe it could provide a strategic growth opportunity for the right owner. If a suitable sales arrangement is not found, we intend to continue to operate and optimize Lumberton."
DOMTAR AND WEYERHAEUSER have announced a 13-member board for the new company being formed by combining Domtar with Weyerhaeuser's fine paper and related assets, craeating the largest fine paper company in North America. Members are: Jack Bingleman, president of Indian River Asset Management; Marvin Cooper, senior VP, at Weyerhaeuser from 2002 to 2006; Louis Gignac, a corporate director and consultant; Brian Levitt, a director of Domtar since 1997; Harold MacKay, counsel to the law firm MacPherson Leslie & Tyerman; W. Henson Moore, former AF&PA president and CEO; Michael Onustock, retired senior VP at Weyerhaeuser; Raymond Royer, president, CEO, and a director of Domtar; Robert Steacy, a Domtar director since May 2005; William Stivers, retired executive VP of Weyerhaeuser; Pamela Strobel, retired executive VP of Exelon; Richard Tan, founder, president, and CEO of Pacific Millennium Holdings; and Denis Turcotte, president and CEO of Algoma Steel.
A JAPANESE PAPER COMPANY, undisclosed at this time, will install a large Metso Paper OptiConcept papermaking line, scheduled to come on stream during the second quarter of 2008. Valued at more than EUR 100 million, it will produce more than 400,000 metric tpy of woodfree coated paper. Metso's scope of supply contains stock preparation equipment, a 1,800 m/min, 10.7-m-wide paper machine, air systems, auxiliary systems, and automation systems.
KAPSTONE PAPER AND PACKAGING CORP. (KP&P) 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 some 700 people.
KIMBERLY-CLARK DE MEXICO is planning to spend $350 million to expand capacity in the next two years, CFO Jorge Lara recently told analysts. Lara noted that the company expects sales this year to rise between 8% and 9% from 2006, with volumes up 7%. He added that the company will raise its prices in the first quarter, and expects competitors will do the same. Company Treasurer Sergio Camacho said during the conference call that the $350 million investment will be used to expand tissue, disposable diapers, and wet wipes capacity. Kimberly-Clark de Mexico, which earlier sold its industrial products unit (pulp, printing paper, and notebooks) to focus on its consumer products, reported 2006 sales of $1.84 billion, up 8% from the previous year.
M-REAL, as part of a company restructuring program announced this past October, reported that it will permanently shutdown paper machine Nos. 6 and 7 at its Gohrsmühle mill in Germany. The two machines have a total capacity of 100,000 metric tpy of coated woodfree paper and their operations employ approximately 35 people. Production on PM 6 and 7 is scheduled to cease at the end of February. Also part of the restructuring effort, M-real also previously announced that it will close its mill in Sittingbourne in the U.K. by the end of this month, and possibly will close its Wifsta mill in Sweden.
SCA'S NORTH AMERICAN PACKAGING OPERATIONS have been sold to Metalmark Capital for $400 million in cash, with closure of the deal set for this quarter. The operations have annual sales of some $430 million. The sold operations, comprised of protective packaging, consumer packaging, and temperature-assurance packaging solutions, have a total of approximately 2,100 employees and account for about 10% of SCA's total sales within its Packaging business area. Metalmark Capital is a private equity firm established by the principals of Morgan Stanley Capital Partners.
SMURFIT-STONE CONTAINER has announced five key appointments to its sales and marketing organization. Doug Keim has been named chief marketing officer and VP of innovation, John Caplice has been appointed VP of national sales, and John Eaton has been named VP of packaging solutions. George Moretti has been appointed VP of sales for the corrugated container division, and Tim Sullivan has been named VP of display and graphics.
STORA ENSO NORTH AMERICA's United Steelworkers union (USW) members have ratified a new contract with the company's Wisconsin operations in Stevens Point, Biron, Whiting, and Wisconsin Rapids, that USW is labeling "a new approach to bargaining in the paper industry." The first negotiated with Stora Enso since the PACE merger with the USW in 2005, the pact sets common contract expiration dates for company facilities and gives the union a voice in restructuring and redesigning the workplace for greater efficiency. Once the restructuring is finished, workers will get a $1,000 bonus. The union will be represented on Stora Enso's European Work Council, and successorship "language" guarantees that the contract will remain in effect if the business is sold, leased, or transferred. The company agreed to be neutral, i.e. not interfere in worker attempts to organize for union representation at non-union SENA facilities. Base wages will increase by 9% over the term of the contract, and workers will receive a $3,000 signing bonus. Stora Enso will pay 80% of the health care premiums and employees will pay 20%. Retirees will also maintain a high level of health care coverage. The pension multiple will increase from $40 to $55/yr of service.
TEMPLE-INLAND may be urged by billionaire investor Carl Icahn to divest one or more businesses, according to a recent Reuters news report. The report also noted that Icahn, who holds a 6.7% stake in the packaging and building materials company, said in a U.S. regulatory filing that he may consider engaging in a proxy contest to replace one or more members of the company's staggered board, but no decision has been made in that regard. According to the report, Icahn said he acquired the shares because "they were undervalued" due to the company's structure, with various disparate and noncomplementary businesses combined under one corporate umbrella. In the filing with the U.S. Securities and Exchange Commission, he reportedly stated that he believes "this structure obfuscates the true value" of its assets. The report said that Icahn's representatives may try to hold talks with Temple-Inland's management to discuss ways to enhance shareholder value by divesting or spinning off businesses, which may include the company's Guaranty Bank, the corrugated packaging business, timberland holdings, the building products business, and the real estate division.
WEYERHAEUSER has elected Debra Cafaro, to its board of directors, effective February 15. Cafaro will stand for election at the company's 2007 annual meeting of shareholders on April 19. She is chairman, president, and CEO of Ventas, a health care real estate investment trust (REIT). The Wall Street Journal profiled Cafaro in 2004 as one of the "50 Women to Watch" and she was voted one of the "Best of the Best" REIT CEOs by a poll of institutional investors in 2003.
MONDI'S BUSINESS PAPER DIVISION has introduced the first application of nano-hybrid technology in paper production. Neox, the company says, combines the advantages of coated and uncoated paper in a single sheet structure. With the new technology, one sheet of standard A4-size paper is covered by 25 trillion nano-particles on each side, creating a smooth, homogenous, nano-structured paper surface that unites the gloss and smooth surface feel of a coated paper with the whiteness and stiffness of uncoated paper.
SONOCO has launched its new Sonotube Commercial concrete form in North America. The new product's tear resistance and strength allows it to stand up to full liquid head pressures of up to 20 ft. The paper form is highly water resistant and is able to withstand 72 hr or more of rainfall. It is generally lighter and more versatile than steel and fiberglass forms, and is thus easier to handle and can help make a job site safer. It is available in standard sizes, from 6 to 60 in. in diameter, and in lengths of either 12 or 20 ft. Custom sizes are also available.
KEMIRA reports that it will increase its pulp and paper chemicals prices in Europe up to 10 %, depending on product segment, as contracts allow. All of its chemicals will be affected, the company said. Kemira noted that rising costs for raw materials, energy, and shipping have forced the price hikes.
TAPPI elects three to join Board of Directors in 2007
TAPPI members have elected three individuals to the TAPPI Board of Directors for the 2007-2009 term:
- Carlos Augusto Lira Aguiar, President & CEO, Aracruz Celulose S.A. - Brazil
- Jukka Tiitinen, President, Metso Paper North America
- Mark T. Watkins, Senior Vice President, MeadWestvaco Corporation
The following directors will continue their terms in 2007:
- Katherine Buckman Gibson, Chairman of the Board, Buckman Laboratories Inc., Memphis, TN, USA
- John W. Fox, Vice President Manufacturing/Quality for Weyerhaeuser Company in Aurora, IL, USA
- Charles E. Hodges, Sr. Vice President, Georgia-Pacific Corporation, Crossett, AR, USA
- W. Densmore Hunter, VP Technology, Weyerhaeuser Company, Federal Way, WA, USA
- Asko Hyttinen, Sr. VP Strategy, Investments, M & A, Stora Enso International Ltd., London, United Kingdom
- Norman F. Marsolan, Director of Research and Development for International Paper in Loveland, Ohio, USA
- John R. Martin, Vice President Manufacturing for Packaging Corporation of America in Lake Forest, IL, USA
- Gerard F. Ring, Professor & Interim Chair, University of Wisconsin, Stevens Point, WI, USA
FIRST-EVER JOINT CONFERENCE BROUGHT TO YOU BY TAPPI AND PIMA IN 2007!
2007 TAPPI Papermakers & PIMA International Leadership Conference
Partners Collaborating for Progress
March 11-15, 2007
Hyatt Regency Jacksonville Waterfront
Jacksonville, Florida, USA
By combining forces, PIMA and TAPPI bring the best of the PIMA Manufacturing Reliability, Management, and IT Conference and TAPPI's Papermakers Conference to the jointly-presented 2007 conference. Attendees will have the opportunity to explore and exchange information about the most critical challenges and the intriguing, emerging solutions in the industry today.
Pulp and paper professionals at all levels and from all areas of papermaking are invited. The full conference brochure, technical program with abstracts, and a detailed schedule of events is available at www.tappiandpima.org or www.pimaandtappi.org.
Register online now. Or contact us at +1.866.850.0999 9toll free US and Canada) or +1.404.760.8177, or by email at registration@tappi.org.
Reminder: Technical Submissions Due
8th Research Forum on Recycling
24-26 September 2007
Niagara Falls, Ontario, Canada
Co-hosted by TAPPI and PAPTAC
Technical Presentation submissions for the 8th Research Forum on Recycling are due 9 February 2007. Presentations may be submitted online at www.tappi.org/07RECYCLE.
2007 TAPPI PLACE Conference
September 16-20, 2007
St. Louis, Missouri, USA
Authors interested in presenting a paper for the 2007 TAPPI PLACE Conference may submit their extended abstract or formal paper by March 30, 2007. Submissions can be made online.
New Standard Proposed
A new TAPPI Standard Guideline has been proposed: "Production indices for paper production." This Standard describes the fundamentals needed to calculate the key production data of any paper or board producing machine line. The physical borders start at the paper machine fan pump and end at the mill gate (excluding sheeting), when the paper is shipped to the customer. All paper (finished product), which is returned from an external warehouse, sheeting operations or as customer returns back to the mill, must be included in the efficiency calculation (i.e,. it must be subtracted from production). Every machine line's efficiency is a sum of losses on any sub processes, which is included in the production line. The proposed standard is based on "Production Indices for Paper Production," published by Zellcheming and used by permission.
Any TAPPI members who are interested in this standard may join the Standard-Specific Interest Group (SSIG) to receive ballots when this Standard is ready for vote. If you would like to join the SSIG for this project, please notify the Standards Department at TAPPI (standards@tappi.org) or fax to +1-770-446-6947 before April 1, 2007.
TAPPI is the leading technical association for the worldwide pulp, paper, and converting industry.
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