Over the Wire
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August 20, 2009

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    This newsletter is developed, written, and edited by Ken Patrick
FROM THE WIRE

THE 2009 TAPPI ENGINEERING, PULPING & ENVIRONMENTAL (EPE) CONFERENCE AND THE INTERNATIONAL BIOENERGY & BIOPRODUCTS CONFERENCE (IBBC) are being held back-to-back October 11 - 16 in Memphis, Tenn., USA, at the Marriott Memphis Downtown. This year's event features 10 program tracks with more than 100 technical sessions and some 280 expert speakers from around the world. A key focus for this year's EPE conference is maintenance reliability and improved operating performance.

A total of 10 sessions on mill maintenance and operations examine the latest developments in process control, lubrication and hydraulics, process simulation, and the future of equipment reliability. M&R sessions include 25-plus mill-focused technical presentations, an industry roundtable, a panel discussion, and a full workshop on process simulation that will be free to all conference registrants. Workshop presenter, Larry Wasik, developed his first dynamic process simulator in 1972 and has been assisting, training and developing simulation applications for the pulp and paper industry for more than 35 years.

For more information on these conferences, contact TAPPI Member Services at 1.800.332.8686 (U.S.), 1.800.446.9431 (Canada), or +1.770.446.1400 (International), or visit the IBBC 09 web site and EPE 09 web site. For information on exhibit and sponsorship opportunities, contact Lindsay Beddingfield, +1.334.271.3318, elbeddingfield@tappi.org.


THIS WEEK'S MARKET ROUNDUP
WOOD COSTS were 53% of the total production costs for pulp mills worldwide in the first quarter of this year, according to Wood Resource Quarterly (WRQ), Seattle, Wash., USA, drawing from data in the Fisher International database. Both the relative and nominal costs of wood have declined during the past year, with wood fiber costs in the second quarter at their lowest levels in more than two years, WRQ notes.

Wood cost is often the No. 1 factor determining competitiveness of a pulp mill. This cost typically varies between 40% and 65% of the total cash cost depending on product grade and the costs of other components such as chemicals, energy, and labor, WRQ explains. Countries with the lowest wood cost component (as a percentage of total manufacturing cost) were New Zealand, Russia, and Western Canada. Japan. China and Finland had the highest wood cost percentages. The current issue of WRQ shows historical trends for each country.

Average wood fiber costs for pulp manufacturers worldwide have fallen by about 15% during the past 12 months, WRQ continues. The Global Conifer Wood Fiber Index (GCFI) was at $90.01/odmt and the Global Non-Conifer Wood Fiber Index (GNCFI) was $94.92/odmt in the second quarter. The biggest price decline for conifer fiber occurred in Finland, Germany, and Russia, while non-conifer wood costs have fallen the most in France, Japan, Germany, and Finland. Wood fiber costs appear to have bottomed-out in many markets and likely will begin increasing later this year, WRQ concludes.

PAPER DEMAND in North America and Western Europe during the next 15 years will shrink 23% and 20%, while Eastern Europe and Asia will grow 49% and 39%, respectively, according to the first of an annual set of 15-year forecasts released this week by RISI (Boston, Mass., USA). In North America, aggregate paper demand is the lowest seen since the mid-1980s, the report notes. The current recession represents an acceleration of a predominately structural decline started post-2001. In the case of printing and writing papers, 24 years of growth have been wiped out in less than two years. The market will average 2% declines through 2024, at which point the market will have contracted an additional 18% from today's levels, the report predicts.

In Western Europe, the report forecasts that in every paper and newsprint grade and in every major end use, demand in 2024 will be less than in 2009. Western European graphic paper in 2024 is expected to be 20% less than 2009 levels, thus representing 6.6 million metric tons of loss. Eastern European markets will be increasing, but will not reach the per capita usage levels of Western Europe until after 2024. Additionally, low cost producers in Asia have been increasing their exports when their domestic demand has fallen, thus displacing further European producers.

China is the dominant paper growth story in the world, the RISI report emphasizes. Having eclipsed the U.S. as the world's largest producer of paper in 2008, the trend looks to continue. However, within the forecast period RISI predicts that consumers and advertisers will focus more on the Internet and the growth story will moderate. This represents a significant development that is not currently occurring in China, but is expected to develop shortly. More information is available online.


AHLSTROM reports that it will temporarily layoff approximately 260 employees at its specialty products plant at Karhula, Finland. Some 200 will be blue-collar employees, with the remaining 60 being white-collar employees. The duration of the layoffs is estimated to be 90 days, at the most, and will be carried out during the latter part of this year. Ahlstrom's plant in Karhula is part of the company's Glass and Industrial Nonwovens business area. It employs about 360 employees, of which roughly 260 are blue-collar and 100 are white-collar employees. The company produces nonwovens and specialty papers used in the manufacture of filters, wipes, flooring, labels, tapes, etc.


AMCOR, Melbourne, Australia, has offered to acquire parts of Alcan Packaging, Paris, France, from the U.K.-based Rio Tinto Group for $2.025 billion, including Alcan Packaging Global Pharmaceuticals, Alcan Packaging Food Europe, Alcan Packaging Food Asia, and Alcan Packaging Global Tobacco. The combined company will be one of the world's leading packaging companies. The parts of Alcan that Amcor if offering to acquire would add some $4.1 billion in sales and 14,000 employees across 80 plants in 28 countries. The proposed acquisition will also support Amcor's objective of growing in its strategic business areas of flexible packaging and folding cartons packaging. Closing of the acquisition is not expected to occur for several months.


KADANT INC., Westford, Mass., USA, this week announced that William Rainville will become executive chairman and Jonathan Painter will be named CEO and a director effective January 3, as part of a succession plan adopted by the board of directors. Painter has been promoted to president and COO effective September 1. The company also announced that Eric Langevin will become COO and an executive VP effective January 3. Both Painter and Langevin are currently executive officers of the company. Painter has been an executive VP of the company for 12 years, and served in several capacities, most recently as head of the company's fiberline businesses, consisting of its stock preparation and fiber-based product lines. Langevin has been a senior VP and head of the company's paperline businesses, consisting of its paper machine accessory equipment, fluid-handling, and water management product lines, since 2006.


KIMBERLY-CLARK PROFESSIONAL NORTH AMERICA, Roswell, Ga., USA, reports that it has received Forest Stewardship Council (FSC) chain-of-custody certification for a broad range of tissue and towel products, making it the first away-from-home tissue products provider in North America to receive this distinction. The certification applies to a variety of the company's tissue products marketed under the Kleenex and Scott brand names for the away-from-home market. The products will feature the FSC label on their packaging starting next month.


MOORIM PAPER GROUP has ordered a new integrated line to produce woodfree coated, machine finished coated, and woodfree uncoated paper grades at its DongHae pulp mill in Ulsan, South Korea. The new PM 1 will have the capacity to produce some 450,000 metric tpy of fine papers in a basis weight range of 75 to 150 g/m2 according to supplier Voith Paper of Germany. It will have a wire width of 9,300 mm and a design speed of 1,500 m/min. Startup is scheduled for spring 2011. With the new machine, Moorim's total fine paper production will increase to more than 1 million metric tpy, making it the largest fine paper producer in South Korea. Moorim also produces fine papers at its Jinju and Daegu mills in South Korea.


PACKAGED GOODS MANUFACTURERS WILL BOOST SPENDING IN 2010, according to a new report released this past week. Titled Global Packaging and Converting Industry Outlook to 2010: Buyer Spend and Procurement Strategies and the Impact of Recession and Recovery, the new report, published by Global Markets Direct in association with ICD Research and marketed by Research and Markets of Dublin, Ireland, analyzes how the consumer goods manufacturer's packaging business is being affected by the recession. In the report, buyers identify what suppliers need to do to maintain their business and the key actions being taken by industry players to overcome the leading business threats. About 41% of packaged goods manufacturers are looking to actively boost their spend on packaging and related services over the next 12 months, and a further 28% are looking to maintain it at current levels. However, with many claiming to be re-evaluating their supplier base, the market open to competition is expected to increase during the coming year. Some 43% of packaging buyers are seeking to engage in partnerships to optimize working capital and reduce costs, the report notes. Closer cooperation between suppliers and buyers is being sought during this time of market uncertainty. Only 21% of industry buyers do not regularly evaluate suppliers to ensure they meet high ethical and environmental standards. More information is available online.


PCA (Packaging Corp. of America), Lake Forest, Ill., USA, has announced the retirement of William Sweeney as executive VP of Corrugated Products, effective September 15. He will continue in an "emeritus relationship" with the company and serve in an advisory capacity structured to continue through 2011. Thomas Hassfurther, a 32-year veteran of PCA and currently senior VP, Sales and Marketing, will replace Sweeney. Hassfurther currently serves as chairman of the Fibre Box Association. Sweeney, also a past chairman of the Fibre Box Association, has been with PCA since 1990 and has worked in the corrugated products industry since 1966.


SCA, Stockholm, Sweden, reported today that it has begun a search for a new president of SCA Packaging Europe, noting that Phil Almond, current president, will leave his position. Meanwhile, David Stead, CFO, will take on the duty as acting president. According to SCA, the European packaging business is facing major industry challenges. SCA Packaging represents some 25% of the Group’s sales, but its profits have decreased sharply and now represents only 2% of the Group’s profit, the company said. An efficiency-improvement program, resulting in SEK 1,070m in lower annual costs, was launched for the European packaging operations during the spring. The program, SCA reports, is running according to plan, adding, however, that “further adaptations to the market conditions remain and calls for a leadership capable of leading major changes and with thorough industrial experience.”


SINCLAIR GROUP, Woodlands, Texas, USA, has formed a joint venture with Vision Hunters Oy, a European-based strategy consulting company. The JV combines strategy and operations into one management consulting company, which will serve the forest products and related industries throughout Europe. Markku Tynkkynen has been named president of the joint venture. Tynkkynen's work history includes 27 years of service with UPM-Kymmene, including numerous roles in technology, business development, and operations. Prior to joining Vision Hunters, he was UPM-Kymmene's executive VP responsible for global business functions. Henri Haggblom will interface as leader of Sinclair Group's Global Forest Products Business. Haggblom's work history includes more than 20 years with several European and U.S. paper companies, including 13 years at International Paper where his most recent position was director of corporate strategic planning.


ST. REGIS, Kemsley, Kent, U.K., reports a successful startup of PM 6, which was rebuilt to produce lightweight fluting and liner grades. The machine manufactures the U.K.'s only domestically produced lightweight packaging paper. Branded K-light, the 100% recycled board is made on a converted fine paper machine. A new Voith Paper stock preparation "E Line" makes K-light's stock preparation process one of the most technically advanced in Europe. Voith Paper also supplied the clothing for the press and dryer sections as well as two QualiFlex grooved sleeves for the new shoe press and DuoCleaner Express dryer cleaning units. The machine has a production capacity of 260,000 metric tpy.


WEYERHAEUSER, Federal Way, Wash., USA, will sell 140,000 acres of Oregon timberlands for about $300 million, and is in talks to sell an additional 82,000 acres in southwestern Washington State, according to a Reuters news report. The sale, to an entity affiliated with timberland investment management firm The Campbell Group, is expected to contribute about $100 million to Weyerhaeuser's third-quarter earnings, after taxes, it said in a statement. The land sold and for sale represents about 10% of Weyerhaeuser's holdings in the Pacific Northwest.


TAPPI NEWS

2010 ICRC Call for Papers
TAPPI has issued a call for papers for the 2010 International Chemical Recovery Conference. The ICRC Conference, sponsored by TAPPI and PAPTAC, is held every three years and is the preeminent conference for chemical recovery technology in the pulp and paper industry. It offers an excellent opportunity to present work to an international audience at an important and respected event.

Abstracts should be submitted via email to ICRC2010@tappi.org by August 31, 2009. Authors will be notified of acceptance by October 26, 2009 and must provide a full text manuscript by January 5, 2010 for inclusion in the conference.

The theme of the 2010 conference is "Optimizing Chemical Recovery Technology for Today's Marketplace." The event will provide an update on new technologies from around the globe as well as showcase ways to improve existing technology. The Technical Program Committee has provided a list of specific topics (see the Call for Papers), but will also consider technically sound papers on any topic related to chemical recovery.

The 2010 ICRC Conference will be held March 29-April 1, 2010, in Williamsburg, Virginia, USA.


Manufacturers benefit from CorrExpo deal
As a benefit to corrugated manufacturers, box plants, and converters dealing with the effects of our current economic climate, TAPPI once again will offer them a special registration package for CorrExpo 2009 [www.correxpo.org], TAPPI's annual conference and exhibit for the corrugated packaging industry. The event will take place September 1-2, 2009 in Chicago, Illinois, USA at the Hyatt Regency Chicago, and features a strong technical program and an exhibit featuring approximately 100 industry suppliers.

This special registration program means that any box plant or converter location may send as many employees to the technical training workshops as they want, for one low price of US$1295. This single registration payment covers an unlimited number of employees from any converter or box plant location. Training - teambuilding - scouting new products - CorrExpo 2009 offers box plants and converters an unprecedented opportunity for training and knowledge building.

"We plan to offer several small group workshops that will address more advanced topics and will extend for more than twice the amount of time than in previous years," says Kristi Ledbetter, TAPPI Converting Division Manager. "This will allow attendees to receive more advanced training and dive into topics of interest. We have also added a management track this year to expand the audience appeal."

Register online today, or view the Exhibitor Application, to be a part of CorrExpo 2009.


4th Annual Pacific Section TAPPI Golf Tournament
Date: Friday, August 28, 2009
Venue: Lewis River Golf Course
Location: Woodland, WA
Join TAPPI's Pacific Section for its annual Golf Outing, featuring a Modified Shotgun Start, 4 person scramble tournament. The registration fee covers Green Fees, Cart, two beverage tickets, prizes, a country-style BBQ dinner after the tournament, and LOTS OF FUN! Suppliers may sponsor a hole -- Proceeds help support the TAPPI scholarship fund. We'd love to have you join us at this outstanding course. Questions: Contact Vince Hochanadel, 1 360-606-1461.


Empire State TAPPI/PIMA Fall Golf Outing
Date: Friday, September 18, 2009
Venue: Kingswood Golf Club
Location: Hudson Falls, NY
A 9:00 am shotgun start will kick off Empire State TAPPI's 4-person scramble tournament. This popular annual event includes all-you-can-eat hot buffet, salads, dessert, beverages, and prizes after the round. Sponsorships are greatly appreciated, and help support the group's scholarship efforts. The Registration deadline is September 10 - spaces are limited to 72 players, so register early. Fun and networking with TAPPI/PIMA members make this a worthwhile event! Contact Ken Nelson at 802-773-5690 or knelson@surpasschemical.com.


New Member Book Deal!
Knowledge is key to surviving tough times - and free stuff helps, too! So what could be better than free knowledge? With TAPPI's New Member Book Deal, that's exactly what you can get.

If you are NOT already a member, simply join TAPPI before August 31, 2009 to receive a free TAPPI PRESS book. Choose from a long list of titles made available for this special program, and take pride in supporting TAPPI's efforts to strengthen and educate our industry. By joining TAPPI, you now have access to networks and access to knowledge that make TAPPI membership so valuable to thousands of industry professionals.

If you're already a member, don't be jealous - you can earn a free book, too, through our TAPPI Member Referral Program. By joining TAPPI, the person you refer gets the access to networks and access to knowledge that make TAPPI membership so valuable to thousands of industry professionals - and you will receive a special reward as well. So get the word out about joining TAPPI! Your colleagues gain the benefits of TAPPI Membership, and you get another volume for your library.


2009 INTC delivers nonwovens expertise
Date: September 21-24, 2009
Location: Denver, Colorado
INDA and TAPPI's NET (Nonwovens Engineers and Technologists) Division have teamed up to deliver the most important gathering of professionals in the Nonwovens and related industries. A new Innovations track features presentations including:
  • Smart Textiles
  • Nanocoatings and Composite Nanofibers
  • Cool Sensors for Nonwovens
  • Transdermal Medical Delivery
  • Radiation Blocking Technology
  • New Personal Care Products
  • Government R&D Programs
  • Much, much more!
A Table-top showcase of new technologies, a Graduate Research competition, plus networking events and breakout sessions round out a conference that nonwovens professionals will NOT want to miss. View the conference brochure for more details, and explore registration options online today.


Gulf Coast TAPPI holds Pet Coke Meeting
Date: September 24-25, 2009
Location: Vicksburg, Mississippi
Gulf Coast TAPPI will be hosting a Pet Coke Users Meeting and Technical Meeting on Lime Recovery Kiln Operations. The Pet Coke Users Meeting will be on Thursday, September 24th and is being coordinated by Chris Dietel of DTE Energy; to learn more, please contact Chris at dietelc@dteenergy.com.

On Friday, September 25th, the event will focus more generally on Lime Recovery Kiln Operations. Organizers are seeking presentations that cover topics such as resolving kiln operating problems, firing alternative fuels, energy efficiency improvements, environmental issues, common maintenance problems related to operations, new innovations, and related topics. Presentations involving mill personnel and/or a tie to a specific mill project or projects are especially encouraged. Those interested in developing a presentation for this meeting should contact Glenn Hanson at glennhanson@metso.com.


BLRBAC Fall Meeting
Date: October 5-7, 2009
Venue: Crowne Plaza Hotel/Atlanta Airport
Location: Atlanta, Georgia, USA
The Black Liquor Recovery Boiler Advisory Committee (BLRBAC) promotes improved safety of black liquor recovery boilers and their auxiliaries through the interchange of technical knowledge, experience, and review of recovery boiler incidents. At BLRBAC's Fall, 2009 meeting, the group will review incidents that have been reported by operating companies during the past 6 months. Eight active subcommittees create Recommended Practices that are widely used throughout the industry.

Learn more about the BLRBAC '09 Fall Meeting at www.blrbac.org, where you can also view past meeting minutes, Recommended Practices, contact information, and other resources. Anyone concerned with the safety, operations, and/or maintenance of recovery boilers is encouraged to become active in this important organization.


Two great events, one convenient location
To help YOU get the most from your time and money, TAPPI's 2009 EPE and 2009 IBBC Conferences feature dual scheduling - they are scheduled consecutively, at the same venue - to help you double your opportunity. (See below for more information about each event.)

By registering for one event, attendees will receive half-off the registration fee for the second event. A special bridge session open to all attendees of both events will take place on Wednesday October 14, 2009 to end the EPE Conference and begin the IBBC event. Plus, learn about a special program for mills that allows you to send an unlimited number of employees to the EPE event for a single fee.

Suppliers, your customers in pulping, recycling, bleaching, biorefining, non-woods, energy, power and recovery, corrosion and materials, environmental, reliability and process control will be in Memphis looking for ways to be more productive, more effective and more valuable as employees. Make sure you're there! Excellent sponsorship opportunities let you choose either one or both of these important events. Contact Lindsay Beddingfield at elbeddingfield@tappi.org or +1.334.271.3318.
2009 EPE Conference
Date: October 11-14, 2009
Location: Memphis, Tennessee, USA
The 2009 Environmental, Pulping & Engineering Conference will feature an excellent peer-reviewed technical program focusing on Innovations in Energy, Fiber and Compliance. A trade fair, Hot Topic Breakfasts, and more round out this popular event. Here are just a few highlights:
  • Keynote speaker Rick Willett, NewPage Corp., on "Current Challenges and Opportunities in the Paper Industry"
  • Workshops on wastewater treatment, bleach plant ops, and stickies measurement
  • New Technology Showcase and Poster Sessions
  • Multi-track program lets attendees choose information that fits their needs
Plus, a special program for mills allows you to send an unlimited number of employees to the EPE event for a single fee. EPE is a learning opportunity that you simply can't replicate at your mill - don't miss this outstanding opportunity.

Convenient online registration is now open; customized sponsorship opportunities are also available. See you in Memphis!

2009 IBBC Event
Date: October 14-16, 2009
Location: Memphis, Tennessee, USA
Find out what's working, what's not working, and how to move forward in this new area of opportunity! Now in its second year, the International Bioenergy & Bioproducts Conference is the only conference that primarily focuses on issues around biomass utilization in the forest products industry, with an emphasis on technology and its successful application and implementation.

The 2009 IBBC program will tackle exciting topics including biomass supply and demand development, technology and conversion pathways, biochemicals and bioproducts, yeasts and microorganisms, and practical biorefineries. Keynote speakers for 2009 include:
  • Michael Walsh, Executive Vice President, Chicago Climate Exchange
  • Mark Downing, Agricultural Economist and Senior Scientist, Bioenergy Program, Oak Ridge National Laboratory
  • Valri Lightner, Acting Biomass Program Manager, U.S. Department of Energy
  • Kelly Tiller, President & CEO, Genera Energy LLC and Director of External Operations for the Office of Bioenergy Programs at the University of Tennessee
Convenient online registration is now open; customized sponsorship opportunities are also available. See you in Memphis!

2009 Specialty Papers Conference
Date: November 3-5, 2009
Location: Chicago, Illinois, USA
For the first time, TAPPI and PIRA International are joining forces to produce a conference that will focus on the current state of the market and the latest technology and application developments in the specialty papers arena. The 2009 Specialty Papers Conference promises to be informative, innovative and provide great opportunities for networking and product development.

You will hear from end users, paper mills, technology providers and suppliers of materials and equipment on the breakthroughs in specialty papers applications in:
  • Labels
  • Flexible packaging: protective wraps, bags, pouches, tea bags
  • Inkjet paper
  • Release liners
  • Security papers
  • Filtration: engine, coffee, industrial
  • Electrical
  • Synthetics
  • Glassine, printing
Learn more about the Conference online, and keep checking back as details are added to the program.


India hosts 2009 Flexible Packaging Symposium
As a large and rapidly emerging market for flexible packaging products, India has become part of the growth strategy for many international companies. Recognizing the need for professional development and technical information in this critical region, TAPPI's PLACE (Polymers Laminations, Adhesives, Coatings and Extrusion) Division, PFFCA (Paper, Film & Foil Converters' Association of India) and SIES-SOP, the South Indian Education Society - School of Packaging, are sponsoring the 2009 Flexible Packaging Trends and Technology Development Symposium, a two-day event focused on sustaining efficient operations and developing profitable products.

Held in Mumbai, November 10-11, and in New Delhi, November 13-14, the symposium is designed for international packaging professionals ranging from engineers and research staff to CEOs and other high-level decision makers. Attendees will hear experts from around the world discuss the following topics:
  • Global Trends in Sustainable Flexible Packaging - regional market demographics, recycling options, state of the industry and more.
  • Process and Equipment Developments - including sensor technology, online quality control, and coating measurement techniques.
  • Advances in Raw Materials and Multi-Layer Structures - food and pharmaceuticals packaging, moisture resistant materials, surface treatment for package stability, production economics and more.
To learn more or to register for this unique packaging event, visit www.tappi.org/09indiaplc.


TAPPI Remembers
Past TAPPI President Terry O. Norris has passed away. Before his retirement in 1987, Norris was the vice president of research and development for Nekoosa Papers, where he enjoyed a career of more than 20 years. He was named a TAPPI Fellow in 1979.

Raphael "Ray" Katzen died in July at the age of 93. Katzen had been a member of TAPPI for 41 years, active on many committees within the Pulping Division. Katzen started his process-engineering firm, Raphael Katzen Associates International (now Katzen International) and guided it for 44 years.

TAPPI member Richard Seckel died in June, 2009. He joined TAPPI in 1994. Seckel served as Vice Chairman of the Suppliers Advisory Committee and was active in the Corrugated Division.


QUOTE OF THE WEEK
To be a leader, you have to make people want to follow you, and nobody wants to follow someone who doesn't know where he is going.

-- Joe Namath, American Professional Football Hall of Fame quarterback
Share your wisdom! Do you have a favorite quotation on life, business, or leadership that you'd like to share with Over the Wire readers? Email your quote suggestions, along with your name and company information, to jbottiglieri@tappi.org. We value the input of our OTW readers.

 

 

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