grade conversion - paperage€¦ · find out more. contact your buckman ... thiele_piggy...
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JANUARY/FEBRUARY 2016
www.paperage.com
GRADE CONVERSIONgives new life to papermaking line at Stracel mill
CONTAINERBOARDMarket remains balancedwith a careful eye onexports and growing capacity
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Find out more. Contact your Buckman representative or visit buckman.com.
Better drainageProduction on a recycled linerboard machine was limited due to drainage. Buckman’s Maximyze application improved drainage, so machine speeds could be increased by as much as 100 mpm. Steam use was reduced 8%, and CO2 emissions were reduced by 1806 metric tons per year.
Reduced energyA core and tube producer wanted to increase production, have greater flexibility in its fiber selection and reduce energy use. Buckman applied Maximize to the pulper, which conditioned the fiber faster with less refining energy, preserving fiber strength. Speed increased 10%. Refining energy decreased 30%. And tensile strength increased from 20 to 26 kgf/15mm.
Commitment makes the best chemistry.© Buckman Laboratories International, Inc. All rights reserved.
MaximyzePkgAd_PaperAge.indd 1 1/8/15 11:22 AM
c o n t e n t sJANUARY/FEBRUARY 2016, Volume 132, Number 1
F E AT U R E S
20 Reincarnation of a Paper Mill A grade conversion — from newsprint to light-
weight corrugated paper and testliner — gives third life to a papermaking line at the Stracel mill in Strasbourg, France.
24 Energy Savings Opportunities in the Dryer Section
New technologies and control strategies give paper mill operations even greater ability to man-age steam to ensure optimal energy use resulting in improved drying efficiency and machine run-nability, which can have a dramatic impact on the quality of your sheet and your bottom line.
C O L U M N S
16 Policy Matters AF&PA addresses the Federal Government’s “Clean Power Plan”, regulatory reforms, interna-tional trade and paper options for government services, which are going to make for an active 2016 . . . and the watch is on for midnight regula-tions as the Obama Administration winds down.
18 Market Grade: Containerboard Despite only modest economic growth, contain-erboard prices have remained solid for most part. And while box shipments only grew a minor amount, the containerboard market remained in overall balance. However, the underpinnings to this stability may face challenges in 2016 including pressure on export price and growing capacity.
D E P A R T M E N T S
4 Editor’s Note
6 Industry News
12 People
14 Outlook: Fluff Pulp The large hygiene end-uses consume the majority of global fluff pulp and drive the growth of the fluff pulp market. The fastest growing major end-use for fluff pulp is nonwovens. These hygiene end-uses are projected to increase fluff consumption in air dried tonnes by 3.4% annually through 2020.
15 Calendar
30 Of Interest: U.S. Now the Preferred Location for New Factory Capacity to Serve U.S. Market Of manufacturers planning to add production capacity over the next five years for goods con-sumed in the U.S., more plan to add that capacity in the U.S. than in any other country — a sharp reversal since as recently as two years ago.
S E R V I C E S
29 Classified Ads
29 Index of Advertisers
20
3PaperAge JANUARY/FEBRUARY 2016
4
By John O’Brien, Managing Editor [email protected]
While a number of paper grades face declining
demand due to electronic media, the same can’t be
said for containerboard because until scientists can
figure out a way to rearrange molecules and “beam”
packages from one place to another, producing con-
tainerboard remains an attractive business to be in.
In this issue, our cover story features the conver-
sion of a lightweight coated paper machine to the
production of corrugated and testliner grades at
Blue paper’s Stracel mill in France. As the title of
the story implies, the grade conversion was a “rein-
carnation” of the machine and the mill. It worked
well for the producer and the people employed by
the mill.
Here in North America, there are similar grade
conversion projects in nature. In addition, there are
plans for more than one greenfield mill, expansion
of existing containerboard capacity, countered by
machines being indefinitely idled and in some cases
permanently closed. The resulting picture from
the additions and subtractions of containerboard
capacity in the next couple of years remains unclear.
Analysts Chip Dillon and James Armstrong at
Vertical Research Partners say a “base case” scenario
of NA containerboard capacity in 2017 will be in
the vicinity of 40.5 million tons by 2017, when all
factors are taken into consideration. This would be
an increase of about 1.56 million tons from the
actual 2014 figure of 38.93 million tons. They also
point out that “North American capacity will be
little changed from now until at least the middle
of 2017.”
In the light of our cover story, I’ll highlight the
three paper machine grade conversion projects in
North America — one has been completed; one
is on the verge of starting up; and one has recently
been initiated.
A former newsprint machine that can now
produce both corrugating medium and light-weight
linerboard is at Packaging Corp. of America’s mill in
DeRidder, Louisiana. The reborn No. 3 machine has
the capacity to 355,000 tpy. It started up in October
2014 with production ramping up during 2015.
As of this writing, PCA may have No. 3 running
at 100% utilization, but I can’t say that for sure.
Back in November of 2014, FutureMark closed
its recycled coated printing and writing papers mill
in Alsip, Illinois. But Corrugated Supplies Co. (CSC)
of Bedford Park, Illinois in January 2015 bought
the mill at auction and decided undertake a grade
conversion for the mill’s coated paper machine.
The plan is for the machine to produce 190,000
tpy of recycled medium. Start-up was slated for
the beginning of this year, but there have been no
status updates as to when, exactly, the machine
will be producing product.
In September 2015, Kruger Packaging announced
an investment of $250 million to convert the No. 10
newsprint machine (PM10) at the company’s mill
in Trois-Rivières, Quebec to produce 100% recycled
lightweight linerboard. At the time of the announce-
ment, Kruger said it would be about 20 months
to complete the conversion and have the machine
up and running, which by my math puts start-up
in April or May of 2017. The reworked machine
will have an annual capacity of 360,000 metric
tonnes. The project will also be carried out with
the financial support of the Government of Québec.
Regardless of additional capacity projected
for the future, containerboard producers in 2015
demonstrated admirable discipline in matching
supply to customer demand, and that’s what it
will take in the next few years to control making
too much of a good thing.
Too Much of a Good Thing?JANUARY/FEBRUARY 2016
VOLUME 132, NO. 1
EDITOR IN CHIEF Jack O’Brien
PUBLISHER Michael C. O’Brien
MANAGING EDITOR John F. O’Brien, Jr.
CONTRIBUTING EDITOR Harold M. Cody
CONTRIBUTING WRITER John Yolton
LAYOUT & DESIGN Betsy Gold Designs
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4 JANUARY/FEBRUARY 2016 PaperAge
editors note
Thiele Kaolin Company • Sandersville, GA(877) 544-3322 • www.thielekaolin.com
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Thiele_Piggy PaperAge_0312_R1 3/21/12 3:35 PM Page 1
6 JANUARY/FEBRUARY 2016 PaperAge
industry news
Glatfelter to Build New Advanced Airlaid Materials Facility in the U.S.
Glatfelter will invest approxi-mately $80 million to build a new production facility in the United States for its Advanced Airlaid Materials business (AMBU). The company is currently evaluating location options, primarily in the southern United States. “Our Advanced Airlaid Materials business is a global growth platform that has a unique opportunity to capitalize on increasing and unmet demand in North America for the materials used in lighter-weight hygiene and disposable wipes products,” said Dante Parrini, Chairman and CEO. “Our plan to build this new facility is in direct response to customer needs for increased capacity in a tightening North American airlaid market.” The new facility is expected to have an annual capacity of approximately 22,000 short tons, increasing Glatfelter’s total global airlaid materials capacity to approximately 129,000 short tons.
In support of market growth, the investment is supported by customer commitment to purchase a significant amount of the annual capacity. In addition, the new facility will establish a specialty asset base in the United States and create a center of excellence for other lighter basis weight products, the company said in a press release. Glatfelter anticipates production will start in approximately two years and the project will be funded by a combination of cash on hand and its existing credit facility. Chris Astley, Senior Vice President & Business Unit President, Advanced Airlaid Materials, noted, “We are planning to locate this facility in close proximity to several key customers and highly effi-cient transportation routes in the southern U.S., as well as where we have additional access to a high-quality, skilled workforce.” Glatfelter’s Advanced Airlaid Materials Business Unit has lead-ing positions in the feminine hygiene, adult incontinence, wipes and home care markets globally, and its products are also used in food packaging and industrial applications. Its existing production facilities are located in Canada and Germany.
NORTH AMERICA
WestRock to Buy Cenveo’s Packaging Business for $105 Million
WestRock Company in December entered into a definitive agree-ment to acquire Cenveo Packaging, a provider of value-add folded carton and litho-laminated display packaging solutions with six facilities located in North America. Cenveo Packaging is a division of Cenveo, Inc. According to WestRock, Cenveo Packaging has generated more than $190 million in revenue over the past 12 months. “With attractive and complementary customers, markets and facili-ties, Cenveo Packaging will be an excellent addition to our consumer packaging business,” said Steve Voorhees, CEO of WestRock. “By combining our operating expertise in folding cartons and integrating WestRock paperboard with Cenveo Packaging’s packaging and print-ing capabilities, we will be able to better serve our customers while generating significant synergies and performance improvements.” Cenveo Packaging serves customers across North America with a focus on markets that value high-color printing and packaging capabilities, including food, beverage, pharma/nutraceutical, specialty tobacco and other consumer markets. At closing, WestRock will pay a total consideration of approxi-mately $105 million. WestRock expects to close the deal in early 2016 following regulatory approval.
OX Industries Acquires Two Paper Tube Plants from American Paper ProductsOX Industries has acquired two paper tube
plants, one located in Totowa, New Jersey
and the other in Framingham, Massachusetts.
The plants were purchased from American
Paper Products in Kulpsville, Pennsylvania.
Kevin Hayward, President of OX Industries, said, “American Paper
Products has served its loyal customers since 1929 and is one of the
oldest family owned paper tube companies in the United States. We
are excited to expand our geographic reach and continue to serve
America’s customers with excellent quality and offer additional
products and services.”
According to OX, the acquisition continues the strategy of vertically
aligning nationwide converting production with OX’s paper mills that
manufacture high strength, 100% recycled tube and core paperboard.
OX Industries (www.oxindustries.com) is a diversified and verti-
cally integrated manufacturer of 100% recycled paperboard, tubes
and cores, and engineered building products.
“Our plan to build this new facility is in direct response to customer needs for
increased capacity in a tightening North American airlaid market.”
– Dante Parrini, Chairman and CEO, Glatfelter.
© 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
*Independent testing by SpencerLab Digital Color Laboratory, commissioned by HP. The full October 2009 report, “Print Quality Analyses – ColorLok Media Evaluation: AiO Printers: Brother MFC-5490CN, Canon PIXMA MX860 & MX7600, Epson WorkForce 600, HP Officejet 6500 and Officejet Pro 8500,” is available for download at spencerlab.com
Looking good on paper matters. ColorLok® Technology gives paper more vivid colors, bolder blacks, and faster drying times.* Learn more at colorlok.com
A NEW LOOK FOR ECO-FRIENDLY PAPER Even recyclable paper looks better than ever, because ColorLok Technology gives printouts on recyclable paper a brighter, richer appearance. Plus, pigments sit at the surface of the paper, making recycling easier. So yes, you can look good and do good.
THE SCIENCE OF WOWING YOUR CUSTOMERSColorLok Technology turns everyday paper into a canvas of possibilities. Additives injected during the paper-making process enable the paper to ”lock” pigments at the surface. Without this technology, paper absorbs pigments deep into the fibers of the paper.
Without ColorLok Technology, pigment sinks into the paper, dulling appearances.
With ColorLok Technology, additives keep color near the surface for bold results.
VIVID COLORS BOLDER BLACKS FASTER DRYING
ECO-FRIENDLY CONSISTENCY
ALL PAPER IS NOT CREATED EQUAL.
8 JANUARY/FEBRUARY 2016 PaperAge
Gordon Brothers Purchases Assets Formerly Owned by Lincoln Paper and Tissue
Gordon Brothers Group, a global advisory, restruc-turing and investment firm, in December purchased the assets of Lincoln Paper and Tissue as part of a joint venture that includes Capital Recovery Group, PPL Group and Rabin Worldwide. The Maine-based tissue and paper mill filed for bankruptcy in late September 2015.
“Our purchase of this mill provides a significant opportunity for a strategic operator to restart the mill. In the event an operator does not materialize, we will provide buyers with the chance to purchase some highly desirable, late model paper and tissue equipment,” stated Bob Maroney, President of the Commercial & Industrial Division of Gordon Brothers Group. “We are investing capital to maintain a warm idle and would like nothing more than to have an operator restart the plant and create jobs,” said Bill Fire-stone President of CRG on Dec. 10. Lincoln Paper and Tissue’s bankruptcy filing resulted from a series of chal-lenges as the company sought to improve its business following a boiler explo-sion in 2013 and the subsequent loss of a major customer. The company faced headwinds due to trends towards foreign manufacturing of similar products and earlier this fall made the strategic decision to file for bankruptcy.
Graphic Packaging CEO David Scheible to Retire, Michael Doss Named Successor
Graphic Packaging Inter-
national, Inc. announced
the retirement of David W.
Scheible as Chief Executive
Officer on December 31,
2015.
Mr. Scheible had served as
a Director, President and CEO
of Graphic Packaging since January 1, 2007. In
May of 2013, he was appointed Chairman of the
Board of Graphic Packaging Holding Company. Mr.
Scheible was also named as PaperAge’s “Executive
Papermaker of the Year” in March of 2015.
Michae l P. Doss, who has served as
P r e s i d e n t a n d C h i e f
Operating Officer since
O c t o b e r 1 , 2 0 1 5 , a n d
held the position of COO
from January 1, 2014 until
September 30, 2015, succeeds
Mr. Scheible as President and
Chief Executive Officer.
Since joining Graphic Packaging International
Corporation in 1990, Mr. Doss has served in a
variety of positions, including Executive Vice
President, Commercial Operations of Graphic
Packaging Holding Company and Senior Vice
President, Consumer Packaging Division. Prior
to the Altivity transaction, he was Senior Vice
President, Consumer Products Packaging of Graphic
Packaging Corporation and Vice President of
Operations, Universal Packaging Division.
Mr. Doss was also Director of Web Systems
for the Universal Packaging Division as well as
Plant Manager at the Gordonsville, Tennessee and
Wausau, Wisconsin plants.
industry news
NORTH AMERICA
Verso Stevens Point Mill Earns 2015 Green Masters AwardVerso Corporation announced that its mill in Stevens Point, Wisconsin, has earned a 2015 Green Masters Award for the second year in a row. Verso is among an exclusive group of leading companies in Wisconsin that was recognized by the Wisconsin Sustainable Business Council for significant and ongoing sustainability practices.
“Sustainability is one of Verso’s founding principles and is integral to the decisions we make across our business every day,” said Becky Burris, Verso Vice President of Environmental, Health, Safety and Sustainability. “As we seek to reduce our environmental footprint, we challenge ourselves and our suppliers to find new and better ways to use resources more efficiently and further reduce air emissions, water discharges and waste. We are very proud to be recognized by the Green Masters Program for our sustainability initiatives at the Stevens Point Mill.” The Stevens Point Mill was judged in a competitive process on a com-prehensive range of key sustainability areas, including energy, water, waste management, emissions and transportation, as well as educational and com-munity outreach. The mill produces specialty papers for food, beverage and consumer goods applications.
David Scheible
Michael Doss
9PaperAge JANUARY/FEBRUARY 2016
SOUTH AMERICA
Smurfit Kappa Acquires Containerboard Mills, Corrugating Facilities, in Brazil
S m u r f i t K a p p a on Dec. 31, 2015 acquired two inte-grated paper-based packaging businesses, Industria de Embala-gens Santana and Paema Embalagens, based in Brazil, for a total consideration of
approximately EUR 186 million (R$805 million). Both INPA and Paema are privately-owned, and the combined operations have three recycled containerboard mills with a total capacity of 210,000 tonnes and four corrugated facilities servicing the Northeast of Brazil, through the Rio and Sao Paulo regions and the South of the country. The size and location of the combined operations will build on the Group’s leadership position as the largest pan-regional corrugated packaging supplier in Latin America. SKG will also enhance the two businesses through the application of the Group’s best-in-class operating systems and design and innovation capability. Furthermore, the Group’s enlarged global footprint will improve its packaging offering to multinationals operating throughout The Americas region. The combined business employs over 1,700 people and the Group currently expects to generate synergies of approximately EUR 6 million (R$28 million) to be delivered by the end of 2017, primarily through operational improvements and supply chain optimization as the businesses are integrated.
industry news
BillerudKorsnäs Secures 10 Percent Stake in EcoXpacBillerudKorsnäs in January purchased
a 10 percent stake in the Danish pack-
aging innovation company EcoXpac.
EcoXpac is based in Denmark and
specializes in advanced 3D-forming
of fiber-based structures. The company was founded in 2005.
BillerudKorsnäs said the investment strengthens its competence
in formable packaging and forms the foundation for collaboration.
“BillerudKorsnäs has in addition to a solid foundation in innova-
tion, including the continuous development of our existing materials
and solutions, also an ambition to take on a number of larger, more
fundamental and long-term challenges in the packaging sector. This
is done in order to find solutions and develop entirely new packaging
concepts that can challenge plastic, glass and aluminium. One such
concept is to produce a bottle completely made of paper. Through
collaboration and by combining the knowledge and experience of
BillerudKorsnäs and EcoXpac the aim is to achieve this,” the company
said in a press release.
MEXICO
Graphic Packaging Completes Acquisition of G-Box
Graphic Packaging International Holdings Mexico recently com-
pleted the acquisition of G-Box, S.A. de C.V., one of Mexico’s
leading folding carton producers.
“The acquisition of G-Box, with folding carton converting plants
in Monterrey and Tijuana, Mexico, strengthens our geographic
footprint in the growing Mexican food and beverage marketplace,”
said Michael Doss, Graphic Packaging’s President and CEO. “These
assets also broaden our customer base and allow us to offer our
current customers a wider range of products.”
EUROPE
Sappi Europe to Build EUR 12.6 Million Paper Storage Facility in GermanySappi Europe will build a new, multi-purpose paper storage logistics facility close to Wesel, Germany. According to Sappi, the rail-linked facility will hold more stock keeping units for German and Benelux customers in particular. The logistics services linked to this additional warehouse space will also be made available to other customers thanks to the operational support provided by long-standing partners. The facility will be fully operation by the end of 2016. Sappi has implemented a full train concept with a dedicated train between its Gratkorn Mill and the Wesel hub. Six trains per week carry paper and pulp between the sites. Hans-Juergen Peichler, Manager Logistics, Sappi Logistics Wesel GmbH, has been closely involved in the initiative. “We have put a lot of emphasis on analyzing both outbound and inbound logistics, working with our procurement and logistics teams to find synergies and to better utilize existing networks. The logistics services that we offer have been fine-tuned and are as multi-modal as possible. The Wesel facility supports this drive.”
10 JANUARY/FEBRUARY 2016 PaperAge
industry news
ASIA
Vinda to Acquire SCA’s Hygiene Business in SE Asia, Taiwan and South Korea
In mid-January, Vinda’s shareholders approved the acquisition of SCA’s business in South East Asia, Taiwan and South Korea. The deal is expected to close on February 1, 2016. SCA is the majority shareholder in Vinda, one of China’s largest hygiene companies.
The purchase consideration amounts to HKD 2.8 billion (approx. SEK 3.1 billion) on a debt-free basis. As part of the deal, SCA and Vinda have signed an agreement regarding the exclusive license to market and sell the SCA brands; TENA (incontinence products), Tork (Away-from-Home tissue), Tempo (consumer tissue), Libero (baby diapers), and Libresse (feminine care) in South East Asia, Taiwan and South Korea. With this agreement, Vinda will hold the rights to these product brands in these Asian markets. Vinda will also acquire SCA brands Drypers, Dr.P, Sealer, Prokids, EQ Dry and Control Plus in these markets. SCA said that it will continue to provide innovation and technical support for the business. SCA’s hygiene business in South East Asia, Taiwan and South Korea had net sales of approximately SEK 2.2 billion in 2014. The business has approximately 1,600 employees and three personal care production sites in Malaysia and Taiwan. As a result of the transaction, SCA’s Shanghai office will cease operations.
NPTA Presents Bill Koehn with 2016 Stanley O. Styles Industry Excellence Award
The National Paper Trade
A s s o c i a t i o n ( N P TA )
announced that Bill Koehn,
Vice President, Printing &
Publishing Papers for Domtar,
is the recipient of the 2016
Stanley O. Styles Industry
Excellence Award. Mr. Koehn’s 30-plus years in the
industry, dedication to supporting industry-wide
initiatives, and commitment to the people he works
with make him deserving of NPTA’s highest honor.
After graduating from the University of Wis-
consin, Madison in 1980, Koehn began his career
as a sales trainee at Consolidated Papers in 1981.
He quickly moved into a full-time sales role at
Consolidated and moved from Wisconsin to New
York City in 1982. Koehn then joined Weyerhaeuser
Co. in 1986 and progressed rapidly through the
ranks. In 2007, Weyerhaeuser’s fine paper business
merged with Domtar and Koehn moved into his
present role of Vice President, Printing & Publish-
ing Papers for Domtar.
Ken Wallach, Executive Chairman, Central
National-Gottesman, commented, “I cannot think
of a better or more deserving candidate. Bill has
been a vigorous supporter of paper and the entire
printing and publishing industry. He has devoted
his whole career to the paper industry, holding
positions of increasing responsibility at several
companies until achieving his current position as
Vice President, Printing Papers for the largest U.S.
uncoated paper producer.”
Koehn will accept the Stanley O. Styles Industry
Excellence Award during Paper2016, which will
take place March 6-8 at the New York Palace.
For information about Paper2016, please visit:
www.paper2016.com.
AUSTRALIA
Graphic Packaging Proposes to Acquire Australian Folding Carton Producer ColorpakGraphic Packaging International on Jan. 11 agreed to offer to purchase 100% of the outstanding shares of Colorpak, a leading folding carton supplier in Australia and New Zealand. “We are very pleased to announce the agreement to acquire Colorpak,” said Michael Doss, Graphic Packaging’s President and CEO. “Similar to our strategy in the U.S and Europe, we are committed to growing our business in developed food and beverage end markets and optimizing our global supply chain. “While Graphic Packaging currently has a well-established presence in Australia, the acquisition of Colorpak and its three world class folding carton manufacturing facilities allows us to expand our proven integrated supply chain in the Australia and New Zealand food, beverage and consumer product markets.” Colorpak operates three folding carton facilities that convert approximately 38,000 tons of paperboard annually into folding cartons for the food, bever-age and consumer product markets. The folding carton facilities are located in Melbourne, Australia, Sydney, Australia and Auckland, New Zealand. The acquisition is subject to Colorpak shareholder approval, court and regula-tory review, and standard closing requirements. Subject to those conditions, the transaction is expected to close in the second quarter of 2016.
11PaperAge JANUARY/FEBRUARY 2016
industry news
INDUSTRY SUPPLIERS
Valmet Awarded Supply Deal for SCA’s Ostrand Pulp Mill Expansion Project
Valmet has received a major order to deliver cooking, fiber line and evaporation plant to SCA’s Ostrand pulp mill located in Timra, Sweden. This delivery is part of SCA’s invest-ment to upgrade the production of bleached softwood kraft pulp at the Ostrand mill
from its current capacity of 430,000 tons to 900,000 tons per year. The value of the deal was not disclosed. A large part of the order will be delivered from Valmet’s Swedish units — the cooking plant from Karlstad, fiber line from Sundsvall, and evaporation plant from Gothenburg. Valmet’s delivery includes a Compact Cooking G2 together with a TwinRoll press-based fiber line for both ECF and TCF pulp production at a capacity of 2,850 air dry tons per day. The evapo-ration plant consist of 7 effects with a TUBEL superconcentrator for high dry solids and has a capacity of 1,150 tons of evaporated water per hour. The total package is optimized for exceptional water and energy efficiency, Valmet said. The final start-up of the renewed pulp mill is scheduled for May 2018.
Kemira Continues Investment in Growing Market for Bleaching ChemicalsIn 2014, Kemira announced a substantial capital investment in its Oulu plant to capture the growth potential in the tight bleaching chemical market. The new hydrogen peroxide production process was successfully started during the third quarter in 2015 and the new volume has been sold out. Positive development in the fiber markets and the ongoing pulp mill capacity investments drive Kemira’s investments in bleach-ing chemical capacity. Kemira has started a pre-engineering study for additional capacity in the Nordics in order to invest in new production lines in Finland and debottleneck the existing units. Kemira has several bleaching chemical production units in Europe; Äetsä, Joutseno and Oulu in Finland, Helsingborg in Sweden and Europoort in Netherlands.
Buckman Asia Receives Singapore Sustainability AwardBuckman Asia was recognized for its commitment to sustainable business practices at the Singapore Sustainability Awards (SSA). Buckman was one of 10 organizations to receive the annual award from the Singapore Business Federation (SBF), and received its award in the Sustainable Business Awards category. “We are very honored to be recognized by the Singapore Sus-tainability Awards. Sustainability is something Buckman takes very seriously, and we are constantly searching for ways to improve in this area,” said Buckman Asia’s managing director, Leigh Mann. “We are seeing success because we are always focused on our goal to achieve zero accidents and zero negative environmental impact.”
Akzonobel Acquires Full Control of Hydrogen Peroxide JVAkzoNobel announced that it has strengthened its position in the North American hydrogen peroxide market after acquiring the outstanding shares in EkO Peroxide LLC from joint venture partner OCI Peroxygens LLC (a subsidiary of OCI Enterprises Inc.). Established nine years ago and headquartered at AkzoNobel’s site in Columbus, Mississippi, the joint venture owned and controlled the 70,000 short tons per annum (nameplate capacity) hydrogen peroxide manufacturing facility. Hydrogen peroxide is a key component of AkzoNobel’s bleaching chemicals product portfolio and is marketed by the company’s Pulp and Performance Chemicals business. It has essential applications in various markets, notably pulp bleaching, chemical processing and mining.
Voith to Supply Sack Kraft Production Line to Segezha PPM in RussiaVoith will supply a complete sack paper production line (PM 11)
for Segezha Pulp and Paper Mill (Segezha PPM) located in the
Russian republic of Karelia.
The new paper machine will produce sack papers from unbleached
sulfate pulp, which has a wire width of 4,950 mm and design speed
of 800 m/min. The machine’s annual capacity is 110,000 metric
tons, which will boost the mill’s production by 40 percent.
Sergey Pomelov, Segezha Group President, said, “Following the
startup of the PM 11, the Segezha Group intends to move up the ranks
to become the world’s second largest producer of sack papers. We are
confident that we can achieve this goal in collaboration with Voith.”
Segezha currently ranks fourth on the international market and
second on the European market.
Voith’s scope of supply includes the complete production line
with stock preparation, a MasterJet headbox, a single NipcoFlex
press, a MasterReel reeler, a VariFlex winder and the entire process
know-how. Voith will also supply the complete automation, electrical
installations and initial clothing package for the production line.
12 JANUARY/FEBRUARY 2016 PaperAge
PA P E R
n Appleton Coated announced the following new appoint-ments: John Mazuroski has been promoted to the new role of executive director, uncoated and specialty products; Jim Bird joins the company as product manager – uncoated and specialty products; Amy Ambos is promoted to the new position of product manager – inkjet products; and Jenni Birkholz has been appointed senior marketing specialist – publication papers and sustainability.
n Cascades has named Charles Malo as President and Chief Operating Officer of the Norampac Group, which is the containerboard unit of Cascades. Malo succeeds Marc-André Dépin, who, on Jan. 13, announced his decision to step down as President and Chief Executive Officer of Norampac. Malo joined Norampac in 1997 and has served as COO since April 2015.
n Heinzel Group has appointed Kurt Maier as new Chief Executive Officer of Heinzel Holding GmbH, effective March 31. Maier is currently CEO of Zellstoff Pöls AG (Austria), a subsidiary of Heinzel Group. Maier succeeds Alfred Heinzel, who will withdraw from the operational business and join the Supervisory Board.
n Packaging Corp. of America announced that Mark W. Kowlzan became Chairman and CEO of the company on Dec. 31, 2015. Kowlzan has served as CEO since July 2010. In a related move, Paul T. Stecko stepped down as non-executive chairman, but will continue to serve on the Board of Directors. Stecko has served as Chairman of the Board since 1999.
n Rolland announced that Renée Yardley has joined the company as Vice-President Commercial Sales Canada and North American Marketing. Yardley was previously Vice President Sales and Marketing for paper at Tembec. In addition, Normand Champagne, Vice-President Sales & Marketing, will lead the Security Paper business.
n Sappi Europe recently announced that Thomas Rajcsanyi has been appointed as the new Managing Director of the company’s Alfeld pulp and paper mill in Germany. He replaces Stefan Karrer, who has left for personal reasons.
n UPM has appointed Bernd Eikens as Executive Vice President responsible for the UPM Paper Asia business area, effective February 1. Eikens has been with UPM since 1998 and is currently responsible for UPM Paper in Europe and North America.
INDUSTRY SUPPLIER
n Valmet appointed Juha Lappalainen as Senior Vice President, Strategy and Operational Development. Lappalainen succeeds Kari Saarinen, who was appoint-ed Valmet’s CFO in November of 2015.
n Xerium announced that John Schauer has joined the com-pany as Product Manager – Nonwovens Market. Schauer comes to Xerium with 30 years of management and tech-nical leadership experience.
RECOGNITION
n Don Forst, Director-Global Sourcing, International Paper, is the recipient of the Association of Suppliers for the Paper Industry’s 2016 Excellence in Leadership Award, which recognizes outstanding lead-ers within the paper industry. The award honors unique and creative leadership of employees, company and key suppliers through major projects or ongoing relationships.
INDUSTRY ASSOCIATIONS
n CEPI in January announced that its Director General, Marco Mensink, will leave his role on March 15 to take up the role of Director General in CEFIC (chem-ical industry trade federation). CEPI is in the process of finding a replacement.
Bernd Eikens
Don Forst
Juha Lappalainen
Marco Mensink
Kurt Maier
Normand ChampagneRenée Yardley
Thomas Rajcsanyi
people
13PaperAge JANUARY/FEBRUARY 2016
AF&PA Priorities for the 114th Congress
International Trade Opportunities
The 114th Congress is in full swing.
Republicans now control both
chambers of Congress for the first
time in eight years. With Rep. John
Boehner of Ohio’s 8th District as
speaker of the House and Sen. Mitch
McConnell of Kentucky as Senate
majority leader, the Congress has
embarked on an aggressive agenda
for 2015 aimed at highlighting the
contrasts between the GOP and
President Obama. Priorities include
challenging several of the presi-
dent’s signature policies on health
care, energy, banking, and the
environment. However, issues for
potential bipartisan action this
year could also include trade and
infrastructure, such as highway re-
authorization.AF&PA Congressional Priorities AF&PA is working to educate mem-
bers of Congress about our indus-
try’s economic impact and our com-
mitment to sustainability. Every
issue the industry faces has an effect
on its 900,000 workers — whether
dealing with marketplace challenges
or stifling government regulations.
By working with our member com-
panies and industry allies, AF&PA
has identified several priority is-
sues for 2015 including regulatory
reform, greenhouse gas regulations,
air regulations, transportation poli-
cies, promoting access to paper op-
tions, and trade and tax policies.Regulatory ReformAF&PA believes that Congress
should unleash the power of the U.S.
economy by passing legislation to
reduce the investment-stifling regu-
latory burden. Congress should con-
sider initiatives to ensure that federal
rulemakings are based on sound sci-
ence, use of the best available scien-
tific and technical information, long
term certainty, transparency, eco-
nomic considerations, and flexible
approaches.
T U E S D A Y , M A R C H 1 7 , 2 0 1 5
(continued on page 6)
AF&PA is advocating for biparti-san solutions to address the most
pressing problems facing paper and
packaging manufacturers who must
compete in a global marketplace and need regulatory certainty to
make new investments.
The improving economic condi-tion in the U.S., in contrast to the
negative or slow growth in other
major world economies, resulted
in an increase in 2014 U.S. imports.
Paper, paperboard and converted
products imports rose 4.3 percent, to 12.4 million metric tons.
(continued on page 2)
Note: All events are being held at
the Trump Hotel Chicago. TUESDAY, MARCH 17, 2015
Schedule of Events
Convention Daily• 7:00 am – 4:00 pm Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)• 8:00 am – 12:00 pm Official Hospitality Suites Open*
• 8:00 am – 4:00 pm Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor• 8:45 am – 9:45 am Special Session: Paper
Industry Initiatives – Building New Roadways to Success Skyline Room, 16th Floor (open to all Paper2015 registrants)
• 10:00 am – 11:30 am RISI Global Paper Market Trends and Forecast Skyline Room, 16th Floor
(open to Full Access Pass Paper2015 registrants only)• 12:00 pm – 2:15 pm Paper2015 Luncheon (sponsored by International Paper) Grand Ballroom, 16th Floor
(suites closed; separately ticketed event)
• 2:15 pm – 6:00 pm Official Hospitality Suites Open** Suite access is by appointment only.
Contact each company directly to
make appointments as they maintain
their own schedules.
PAPER2015
DIGITALCONVERTINGSECURITY
CARBONLESSBOOK
UNCOATEDSPECIALITIES
INNOVATIONS
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Visit suite 2128 to learn more about our high-speed digital inkjet solutions.
of the print market will be dominated by digital.
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3/3/15 9:34 AM
The global economy expanded at a
moderate but an uneven pace dur-
ing 2014. Among the developed
economies, the U.S. experienced an
annual growth rate of 2.4 percent
in 2014, with declining unemploy-
ment, while the economic situation
in Europe has been precarious, with
a number of eurozone countries on
the brink of recession. Growth rates
in developing countries and econo-
mies in transition diverged more
during 2014, as a sharp decelera-
tion occurred in many large emerg-
ing economies, particularly in Latin
America. In contrast, East Asia, in-
cluding China, experienced only a
mild economic slowdown. Global
growth is projected at 3.5 percent for
2015, according to an International
Monetary Fund report issued earlier
this year. Lower oil prices and the
depreciation of the euro and yen —
the flip side of the appreciation of
the U.S. dollar — support growth,
but structural issues persist in other
economies. The U.S. represents a
bright spot among major economic
players.U.S. Imports and Exports in 2014
U.S. exports of paper, paperboard
and converted products amounted
to an estimated 14.3 million met-
ric tons in 2014, unchanged from
the previous year, according to U.S.
Bureau of Census data. Exports of
newsprint, printing-writing paper
and bleached paperboard were low-
er, but exports of kraft linerboard
rose. On a regional basis, exports
of paper and paperboard were up
Due to comprehensive networking of Paper2016 attendees, the Paper2016 Convention Daily offers a unique advertising opportunity for:
The Paper2016 Convention Daily will be distributed to all attendees at the convention and feature editorial content such as:
• Pulp producers
• Paper manufacturers
• Tissue manufacturers
• Paperboard producers
• Paper converters
• Paper merchants
• Suppliers of equipment and service
• A complete, up-to-date schedule of meetings and activities
• Program reviews
• Session reports
• Industry news and statistics
• Hospitality suite locations and contact information
For further information on advertising opportunities in the Paper2016 Convention Daily, please contact:
Mike O’Brien, Publisher • O’Brien Publications, Inc./PaperAge • 20 Schofield Road • Cohasset, MA 02025-1922 Telephone: 781.923.1016 • Fax: 781.923.1389 • e-mail: [email protected]
The Paper2016 Convention Daily will be published in three separate editions (March 6, March 7, March 8) and distributed to all attendees of the convention. The Paper2016 Convention Daily is published by O’Brien Publications, Inc.
Reach Decision Makers
Note: All events are being held at the Trump Hotel Chicago.
MONDAY, MARCH 16, 2015• 7:00 am – 5:30 pm
Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor
• 7:00 am – 5:30 pm Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)
• 8:00 am – 4:00 pm Official Hospitality Suites Open*
• 4:00 pm – 5:30 pm Industry Leadership Session - CEO Panel (sponsored by Sappi North America) Grand Ballroom, 16th Floor (suites closed; open to Full Access Pass Paper2015 registrants only)
• 5:30 pm – 6:30 pm Paper2015 Reception (sponsored by Domtar) Grand Foyer, 16th Floor (suites closed; open to Paper2015 registrants only)
TUESDAY, MARCH 17, 2015• 7:00 am – 4:00 pm
Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)
• 8:00 am – 12:00 pm Official Hospitality Suites Open*
• 8:00 am – 4:00 pm Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor
• 8:45 am – 9:45 am Special Session: Paper Industry Initiatives – Building New Roadways to Success Skyline Foyer, 16th Floor (open to all Paper2015 registrants)
• 10:00 am – 11:30 am RISI Global Paper Market Trends and Forecast Skyline Room, 16th Floor (open to Full Access Pass Paper2015 registrants only)
• 12:00 pm – 2:15 pm Paper2015 Luncheon (sponsored by International Paper) Grand Ballroom, 16th Floor (suites closed; separately ticketed event)
• 2:15 pm – 6:00 pm Official Hospitality Suites Open*
* Suite access is by appointment only. Contact each company directly to make appointments as they maintain their own schedules.
Schedule of Events Mapping our Future at Paper2015
On behalf of the American Forest & Paper Association (AF&PA) and the National Paper Trade Association (NPTA), welcome to Paper2015, our industry’s most important annual event.
One of the barriers to increased pa-per recovery for recycling is the dis-tinction made between so-called “pre-consumer” and “post-con-sumer” fiber. Mandates that dic-tate “post-consumer” content in products often result in distortions in the market-driven demand/sup-ply balance by driving up prices for some usable fiber while placing an artificial barrier to the use of other equally environmentally beneficial recovered paper.
Benefits accrue from utilizing all available sources of recovered fiber, not by singling out a specific source as the one that “counts.” It is some-what ironic that the paper industry, despite the great strides made in recovering our own products, con-tinues to be the only commodity where attention regarding this man-date is placed.
Certification Bodies are Shifting StandardsFortunately, major third-party for-est products certification groups have taken action recently to elimi-nate the distinction between and fully value both “pre-” and “post-consumer” recovered paper. Both the Sustainable Forestry Initiative
(SFI) and Forest Stewardship Coun-cil (FSC) are updating their chain-of-custody standards. The SFI board of directors voted in November 2014 to approve the final draft of the SFI 2015-2019: Standards and Rules. AF&PA filed comments supporting proposed
changes that eliminate the distinc-tion between “pre-consumer” and “post-consumer” fiber in SFI’s defi-nition of recycled content and in la-beling standards for the products that contain recycled content. The new SFI standard, which went into effect on January 6, 2015, recognizes both “pre-consumer” and “post-
consumer” recycled fiber as quali-fying as certified recycled content. The change also allows SFI chain-of-custody certificate holders that use recycled content in their products the ability to choose to incorporate a Mobius loop in on-product labeling stating the percentage of recycled content in the product.
FSC recommended revising its chain-of-custody standard in late 2013 with a view to include all re-covered paper materials as inputs towards FSC credit. FSC received
Why the Distinction between “Pre-” and “Post-consumer” Recovered Fiber Should be Eliminated
M O N D A Y , M A R C H 1 6 , 2 0 1 5
Mark GardnerAF&PA Board Chairman
Hilton MazeNPTA Board Chairman
(continued on page 6)
Benefits accrue from utilizing all available sources of recovered
fiber, not by singling out a specific source as the one that “counts.”
PAPER2015Convention Daily
We invite you to join in mapping our industry’s future. Paper2015 brings insightful sessions and nu-merous opportunities to connect with colleagues and chart the best course for tomorrow’s success. We’ll officially kick off Paper2015 with this afternoon’s Industry Lead-ership Session, where a panel of CEOs representing key segments of the paper industry will pro-vide their unique perspective on issues of importance to our business. We hope to connect with you at the
Paper2015 Reception immediately following the panel. Company suites are open today and tomorrow so that you may check in with your key clients and suppliers, strengthen your existing business relationships, and meet promising new contacts.
Thank you for participating in Pa-per2015. We’re looking forward to mapping our future with you. Mark Gardner is president and CEO of Sappi North America and Hilton Maze is president and CEO of Simon Miller Paper & Packaging.
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DIGITAL
CONVERTING
SECURITY
CARBONLESS
BOOK
UNCOATED
SPECIALITIES
INNOVATIONS
of gross U. S. business revenues will be lost due to fraud. Visit suite 2128 to learn how we can help protect your investments.
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3/3/15 9:34 AM
Paper2015 Welcomes You
Welcome to Paper2015! On behalf
of the American Forest & Paper
Association (AF&PA) and the
National Paper Trade Association
(NPTA), we are thrilled that you
have joined us in Chicago.
This year, we’re Mapping our
Future through timely sessions and
unparalleled networking oppor-
tunities. We hope the insights
and connections you make at
Paper2015 will be essential to
your business for years to come.
At Monday’s Industry Leadership
Session, a distinguished panel of
CEOs representing key segments of
the paper industry will provide their
unique perspectives on issues of
importance to our industry’s success.
Tuesday starts with the Special
Session: Paper Industry Initiatives
– Roadways to Success, where
representatives from key U.S. paper
industry organizations will share
how their programs are informing
the marketplace and helping you in
your business.
At RISI’s annual seminar, Ken
Waghorne and Derek Mahlburg
will present the market outlook for
paperboard, recovered fiber and
printing-writing paper.
The Paper2015 Luncheon features
Robert O’Neill, who served as an
operator and team leader with the
legendary Navy SEAL Team Six.
He will translate his unique
expertise into high-impact,
actionable insights on leadership,
decision-making, operating in
uncertain environments, and how
to become the ‘best of the best.’
During the Luncheon, Morris
Dennis of Dennis Paper will receive
the NPTA Stanley O. Styles Industry
Excellence Award.
Thank you for participating in
Paper2015. We hope you enjoy
your experience.
Paper-based communications are
critically important for millions of
Americans – especially for seniors
and citizens without online access.
Yet federal and state governments
continue to take actions to phase
out or eliminate paper-based op-
tions, imposing hardships for mil-
lions of vulnerable Americans and
having negative consequences for
the paper industry. These efforts,
under the rationale of cost saving,
are imposed without any congres-
sional oversight or input from citi-
zens. AF&PA is ramping up its ad-
vocacy to educate legislators and
regulators about the unintended
cost shifting and access barriers
that elimination of paper-based in-
formation and services imposes for
many people who depend on or pre-
fer paper.
Nearly 36 million American house-
holds do not have Internet access at
home. Almost 19 million senior citi-
zens don’t own a computer. These
enormous numbers of Americans
are left behind by digital-only ac-
cess to government services. AF&PA
believes this government “rush to
digitize” is short-sighted and causes
harm to citizens.
The U.S. Treasury Department,
for example, on January 1, 2012,
stopped sales of over-the-counter
paper savings bonds and forced
people to buy them online via Trea-
sury Direct, requiring the intended
recipient’s taxpayer ID number,
Social Security number, bank
AF&PA Steps up Efforts for Government
to Include Paper Options
S U N D A Y , MA R C H 1 5 , 2 0 1 5
Donna Harman
Kevin Gammonley
From Donna Harman, President & CEO, AF&PA
and Kevin Gammonley, CEO, NPTA Alliance
(continued on page 4)
Schedule of Events
PAPER2015
Convention Daily
Note: All events are being held
at the Trump Hotel Chicago.
SUNDAY, MARCH 15, 2015
• 12:00 pm – 6:00 pm
Paper2015 Registration Desk
& Convention Daily Desks
Grand Foyer, 16th Floor
• 12:00 pm – 6:00 pm
Connections Lounge
(sponsored by Glatfelter)
Mezzanine (access via elevator
or stairs from hotel lobby)
• 3:00 pm – 6:00 pm
Official Hospitality
Suites Check-in
• 4:00 pm – 6:00 pm
Official Hospitality
Suites Open*
MONDAY, MARCH 16, 2015
• 7:00 am – 5:30 pm
Paper2015 Registration Desk
& Convention Daily Desks
Grand Foyer, 16th Floor
• 7:00 am – 5:30 pm
Connections Lounge
(sponsored by Glatfelter)
Mezzanine (access via elevator
or stairs from hotel lobby)
• 8:00 am – 4:00 pm
Official Hospitality
Suites Open*
• 4:00 pm – 5:30 pm
Industry Leadership
Session - CEO Panel
(sponsored by Sappi
North America)
Grand Ballroom, 16th Floor
(suites closed; open to
Full Access Pass Paper2015
registrants only)
• 5:30 pm – 6:30 pm
Paper2015 Reception
(sponsored by Domtar)
Grand Foyer, 16th Floor
(suites closed; open to all
Paper2015 registrants)
* Suite access is by appointment only.
Contact each company directly to
make appointments as they maintain
their own schedules.
DID
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DIGITAL
CONVERTING
SECURITY
CARBONLESS
BOOK
UNCOATED
SPECIALITIES
INNOVATIONS
of the U.S. population touches
a Glatfelter product every day.
Visit suite 2128 to learn more about our diversified offerings.
40%
gla3762-1-PaperWk15-BnrAds-D1.indd 1
3/3/15 9:34 AM
Paper-based communications
are critically important for
millions of Americans –
especially for seniors and
citizens without online access.
Place an ad in the Paper2016 Convention Daily
Paper2016 will take place in the Lotte New York Palace, March 6-8, 2016
14 JANUARY/FEBRUARY 2016 PaperAge
Global demand for fluff pulp was 5.4 million air dried tonnes in 2015, up from 4.7 million air dried tonnes
in 2010. Projected demand in 2020 is 6.5 million air dried tonnes for a projected annual growth of 3.6% by 2020, according to a new report from Smithers Pira, The Future of Fluff Pulp to 2020. Historically, fluff pulp has been a specialty pulp grade with higher prices and margins than the more common papermaking pulp grades. Accounting for about 10% of the total pulp market globally in 2015, fluff pulp has apparently ended decades of regular price fluctuation with only minor variations over the last five years. “Fluff pulp is a very desirable pulp product, with production costs lower than for dissolving pulp, and prices higher than for papermaking grades,” said Phillip Mango, author of the report. “The outlook for fluff pulp pricing is that it will not vary as much as it has in the past and list price will stay high while actual discounted prices slowly drop from 2015 through 2020. This will make fluff pulp even more attractive versus other fibers.” Fluff pulp is one of the most sustainable raw materials on earth, based on tree species grown with no irrigation and few or no pesticides on land that has little value for food production. Despite continuing reduction in fluff pulp content in its major end uses, fluff pulp has proven amazingly resilient, gaining vol-ume in adult incontinence and increasing baby diaper/nappy sales in emerging markets. The large hygiene end-uses consume the majority of global fluff pulp and drive the growth of the fluff pulp market. The fastest growing major end-use for fluff pulp is nonwovens. These hygiene end-uses are projected to increase fluff consump-tion in air dried tonnes by 3.4% annually through 2020, while nonwovens are projected to increase their fluff pulp consump-tion by 5.4%. The competitive landscape for fluff pulp is dominated by large pulp and paper companies located in North America, thanks to the optimal growing conditions in this region.
The four largest fluff pulp producers are Georgia-Pacific, Weyerhaeuser, International Paper, and Domtar. These four account for about 80% of all fluff pulp production in 2015. The 10 largest producers account for about 99% of global fluff pulp production. Of the top 10 producers, six are in North America, one in South America and three in Western Europe. The trend in fluff pulp production is expansion in South America and North America, while Europe has concentrated on modifying pure fluff producing mills to more sustainable, more profitable, biorefineries. Geographically, consumption is driven by the large hygiene end-uses plus the growing nonwovens markets. Here, Asia is the market leader, with Western Europe and North America second and third respectively. The North American and Western European markets are relatively mature and as such have the lowest growth for fluff pulp, while Asia, South America and Eastern Europe all have higher growth rates. With comprehensive market data and industry analysis based on new primary research, The Future of Fluff Pulp to 2020 exam-ines the changing nature of the global fluff pulp market over the next five years. For further information about the report, please visit Smithers Pira website: www.smitherspira.com.
outlook – fluff pulp
Large Hygiene Markets and Fast Growing Nonwovens Drive Global Growth for Fluff Pulp
The large hygiene end-uses consume the majority of global fluff pulp and drive the
growth of the fluff pulp market.
15PaperAge JANUARY/FEBRUARY 2016
calendar
FEBRUARY 1-5, 2016PaperWeek CanadaPAPTACQueen Elizabeth HotelMontreal, Quebec, Canadawww.paperweekcanada.ca
FEBRUARY 24-26, 2016ASPI Spring MeetingAssociation of Suppliers to the Paper IndustryThompson Miami BeachMiami, Florida, USAwww.aspinet.org
FEB. 29 - MARCH 2, 2016RISI European ConferenceRISIRadisson Blu HotelBerlin, Germanywww.risiinfo.com
MARCH 6-8, 2016Paper2016AF&PA and NPTALotte New York PalaceNew York City, New York, USAwww.paper2016.com
MARCH 14-17, 2016Tissue World New OrleansUBMErnest N. Morial Convention CenterNew Orleans, Louisiana, United Stateswww.tissueworld.com
APRIL 4-6, 2016Specialty Papers EU 2016Smithers Pira and TAPPIHilton Manchester DeansgateManchester, United Kingdomwww.specialtypaperconference.com
APRIL 11-14, 2016Biomass Conference & ExpoBBI InternationalCharlotte Convention CenterCharlotte, North Carolina, USAwww.biomassconference.com
APRIL 13-14, 20169th Annual Converters ExpoPackaging StrategiesLambeau Field AtriumGreen Bay, Wisconsin, USAwww.convertersexpo.com
APRIL 26-29, 2016PPC Spring Outlook and Strategies MeetingPaperboard Packaging Council (PPC)Miami Marriott Biscayne BayMiami, Florida, USAwww.paperbox.org
MAY 1-4, 2016International Pulp WeekPulp and Paper Products CouncilFairmont Hotel VancouverVancouver, British Columbia, Canadawww.internationalpulpweek.com
MAY 4, 2016Global Forest & Paper Industry ConferencePwCHotel VancouverVancouver, British Columbia, Canadawww.pwc.com
MAY 15-18, 2016PaperCon 2016TAPPIDuke Energy Convention CenterCincinnati, Ohio, United Stateswww.papercon.com
INDUSTRIES Paper Tube & Core
R
16 JANUARY/FEBRUARY 2016 PaperAge
As we enter the Obama Administration’s final stretch and face a congressional agenda already impacted by the presi-dential election, AF&PA is working on its members’ behalf to advance a sustainable U.S. paper and wood products manufacturing industry though fact-based public policy and marketplace advocacy.
STRINGENT ENVIRONMENTAL POLICIES Last year was among the busiest we’ve seen on the envi-ronmental policy front. One of the most significant events that will reverberate into 2016 was the administration’s final Clean Power Plan (CPP) in August to regulate greenhouse gases from utilities. AF&PA made progress in our campaign to ensure the carbon neutrality of biomass for the energy we produce, but our work is not done. In 2016, we will work with states to achieve the least costly method for implemen-tation and seek inclusion of our biomass carbon neutrality principles in state plans. The U.S. Environmental Protection Agency (EPA) also finalized new ozone National Ambient Air Quality Standards at 70 parts per billion (ppb) down from 75 ppb; while we advocated that lowering the standard was wholly unnecessary,
others pressed for an even more stringent — and 10 times
more costly — 68 ppb. Our advocacy secured gains for our
members, and with continued in support of flexible imple-
mentation policies, we hope its effects on our operations will
be small.
EPA also has sought excessively stringent state-level human health water quality criteria in Washington, Maine and Idaho, and we’ve upped our advocacy in return. So to say that the administration’s engagement on issues affecting our industry is not slowing down as we enter the final year is an understatement.
By Donna Harman, President and CEO, American Forest & Paper Association
policy matters
Clean Power Plan, Regulatory Reforms, International Trade and Paper Options for Government Services Make for an Active 2016And the watch is on for midnight regulations as the Obama Administration winds down
“Our industry has met many costly regulatory challenges over the years, spending billions of
dollars as part of its environmental stewardship. However, the cumulative regulatory burden on
American manufacturing is unsustainable.” – Donna Harman, President & CEO, AF&PA
17PaperAge JANUARY/FEBRUARY 2016
Of course, we recognize that sensible regulations provide many important benefits, including protecting the environ-ment, public health and worker safety. Our industry has met many costly regulatory challenges over the years, spending billions of dollars as part of its environmental stewardship. However, the cumulative regulatory burden on American manufacturing is unsustainable. For our industry alone, more than $10 billion in new capital expenditures is expected over the next decade for regulatory compliance. Along with the cost, complexity and sheer number of regulations, the uncer-tainty in the federal regulatory process creates major chal-lenges for investment, capital planning and job creation. Two bills currently before Congress — H.R. 3438, the “Require Evaluation before Implementing Executive Wishlists Act of 2015,” and H.R. 2631, the “Regulatory Predictability for Business Growth Act of 2015” — would help to increase regulatory transparency, harmonize regulatory requirements, avoid wasting limited resources and increase regulatory certainty. AF&PA will be engaged on these and other initiatives to ensure that regulatory reform is a priority for the next administration.
INTERNATIONAL TRADEIn addition to environmental policy and general regulatory reform, AF&PA also will focus heavily on two other areas this year: international trade (specifically, the Trans-Pacific Partnership free trade agreement, or TPP) and government policies on paper use ranging from procurement guidelines to whether individuals can access government information in paper format. Exports account for more than 15 percent of our industry’s annual total sales, making free and fair trade critical to our success. Negotiators came to agreement in 2015 on TPP provi-sions, which include the speedy elimination of tariffs on paper, packaging and wood products and strong provisions commit-ting TPP countries to fight illegal logging and associated trade. This agreement will provide access to new markets in Vietnam and Malaysia and help our industry compete in the fast-grow-ing Asia-Pacific region.
PAPER OPTIONSAF&PA also will continue its (so far) successful advocacy in the government’s latest rush to digitize with the Securities and Exchange Commission (SEC) Proposed Rule 30e-3. If adopt-ed, the rule would create an opt-in system for paper forms where investors must request their financial institutions send information by mail. Investors would receive a one-time notice that financial reports about their holdings will be shifted to electronic delivery unless they take action. Such a move would cause confusion for investors and abandon those who lack
access to — or choose to not use — the Internet for financial transactions. In December, a bipartisan congressional letter led by Reps. Bruce Poliquin (R-Maine) and Kyrsten Sinema (D-Ariz.) went to the SEC requesting the rule be rescinded; AF&PA supports the representatives’ action and will continue to engage on the issue to ensure all Americans have secure access to their financial information. In addition to our known objectives, we expect this admin-istration will (as all do) push a potential slew of midnight regulations. AF&PA will remain vigilant, staying in close contact with Capitol Hill and regulatory agencies to ensure nothing gets by.
SUSTAINABILITYFinally, at the core of everything we do is a focus on sustain-ability. This July, we will release our next Better Practices, Better Planet 2020 Sustainability Report, marking the progress we’ve made toward goals developed by AF&PA member companies in 2011. In what will be our third report to-date, we expect to continue the positive trend on reducing greenhouse gas emissions and water use; increasing energy efficiency, paper recovery for recycling and sustainable forest certification; and improving workplace safety. In addition to our collective gains, 14 AF&PA member companies have been selected since 2011 to receive awards for exemplary leadership and innovation in the field. The industry’s overwhelming commitment to sus-tainability helps us to advocate for better — not more — regu-lations as we interface with government agencies and legisla-tors. I look forward to sharing the results with you soon.
policy matters
“Exports account for more than 15 percent of our industry’s annual total sales, making free
and fair trade critical to our success”
18 JANUARY/FEBRUARY 2016 PaperAge
2015 was a decent year for container-board mills, but what began on a very positive note ended with some doubt about the outlook for 2016. Markets entered 2015 on a roll following a strong showing in the manufacturing sector in late-2014 helped by improved consumer spending buoyed by the steep decline in energy costs, which freed up cash for consumers to spend. The downturn in energy prices, of course, has negative impacts on some sectors of the economy, but the good news is that these sectors typically are not major consumers of corrugated boxes. However, despite this good sendoff, the economy did not continue to post good growth in all sectors last year and thus box growth while positive was relatively weak. Owing to an extremely cold first quarter, industrial production started poorly, falling in both the first and second quarter 2015, down 0.3% and 2.3%, respectively, on an annual basis. In the third quarter industrial production rebounded by rising 2.9%. Industrial production for food and tobacco products, which are the key
sector for boxes, performed better,
growing 1.3% and 4.9% in the second
and third quarters of 2015, following
zero growth in the first quarter.
DEMAND SLUGGISH BUT STEADYBox demand has been sluggish in recent years, growing only nominally in 2013 followed by a gain of just under
While Facing Challenges Containerboard Market Appears Likely to Remain StableDespite only modest economic growth, containerboard prices have remained solid for most part. And while box shipments only grew a minor amount, the containerboard market remained in overall balance. However, the underpinnings to this stability — notably continued solid exports and high operating rates — may face challenges in 2016 including pressure on export price and growing capacity.
By Harold M. Cody
market grade
U.S. containerboard production over the January to October 2015 period is up 1.8% over the prior year level.
19PaperAge JANUARY/FEBRUARY 2016
market grade
1% in 2014. While this isn’t very exciting, it’s better growth than for many grades of paper and board. Unlike many other segments of the industry such as printing and writing grades, the packaging industry is supported by relatively stable demand for its key product: corrugated boxes. Similarly, slow growth occurred in 2015 as shipments are estimated to have grown about 1% or a little under. This was disappointing given that in early 2015 some analysts projected box demand to grow in the 1.5% to 2% range. With domestic demand sluggish, Kraft liner exports con-tinued to be the safety valve allowing producers to main-tain production levels. Export liner prices have been under pressure over the last couple of years owing to the roughly 20% appreciation of the dollar. The euro fell from about 1.4 Euro/dollar in early 2014 to 1.1 Euro/dollar by early 2015. However, over the last 12 months the Euro has remained in about the same range. Liner exports are quite diversified by region which has helped sustain shipments and prices. Markets and approximate share include: Europe (21%); Mexico/South/Central America (44%); Africa/Middle East (12%); Far East (8%); China (8%). In contrast, Canadian mills have seen the Canadian dollar continue to fall from about 90 cents to a low of 70 cents in early 2016. This has provided Canadian mills with added incentive to ship products to the U.S., and as a result, imports of containerboard from Canada have risen. While the strong dollar has made Kraft liner more expensive in other markets and reduced returns on overseas sales so far, it has not led to a decline in exports. Part of the reason for this is that virgin linerboard is a premium product and the U.S. is well positioned with low cost mills even though the change in currency and slippage in export prices in some areas has taken away a good part of this advantage on a cost basis.
CAPACITY GROWTHCapacity growth has also been a concern in trying to fore-cast the market for 2016 as U.S. containerboard capacity is projected to grow 1.9% in 2015 following a 1.4% increase in 2014. However, most of this increase is for recycled grades and corrugating medium. In stark contrast, Kraft liner capac-ity was flat in 2015 while recycled liner capacity rose 4.1% two years in a row. Recycled medium posted an even larger 8.8% gain in 2015 while semi-chem fell slightly. Thus, kraft supply remains tight while recycled grades are more avail-able — one result has been lower prices on recycled grades.
Containerboard capacity is rising a bit in Europe and its possible this could slow Kraft exports, but at this point it’s assumed this impact will be minimal.
SHIPMENTS/PRODUCTIONBased on data through October, it’s clear that the overall market continues to be balanced but sluggish. October inventories fell about 3.5% from September to 2.57 million tons. Box shipments posted mixed results in October, fall-ing 2.8% on an actual basis but rising 1.6% on an average week basis. Shipments were 32.4 billion sq. ft., bringing total shipments year to date to 308.6 bsf or an increase of 0.8%. Operating rates were about 94%, but down a bit from rates seen in the prior 2-3 months. U.S. containerboard production over the January to October 2015 period is up 1.8% over the prior year level. As noted, a key factor sustaining production and operating rates is continued solid export shipments. U.S containerboard exports in October 2015 were off 1.9% from 2014, but year to date exports are running 2% ahead of 2014.
BALANCED MARKETThe bottom line is that packaging markets were in overall balance last year and there is a good chance that this could continue to be the case for 2016 despite tepid box growth, uncertainty on the global market, and downward pressure on export prices. The continued consolidation of the business — the latest being the huge combination of RockTenn and MeadWestvaco to form WestRock — should only help the industry to man-age inventories and control shipments. In fact, WestRock announced plans in October to idle two machines and it’s reported they may cut output further. The willingness and ability of producers to manage supply means that most forecasts assume U.S. Kraft liner prices will remain stable in 2016. Of course there is downside risk if export prices continue to falter and uncertainty on the strength of the global econ-omy, including China, could undermine demand, and finally result in weaker exports. The growth in recycled capacity also poses some risk that this could undercut Kraft liner prices since recycled prices have fallen and the gap has increased.
Harold Cody is a contributing writer for PaperAge. He can be reached at [email protected].
20 JANUARY/FEBRUARY 2016 PaperAge
paper machine grade conversion
Grade conversion gives third life to a papermaking line at the Stracel mill in Strasbourg, France.
By Pauliina Purola, Marketing Manager, Valmet
REINCARNATION OF A PAPER MILL
It is a well-known fact that the paper industry and paper markets are evolving rapidly as the digital world changes everything around us. At the turn of the millennium,
the papermaking line at the Stracel mill in Strasbourg, France was facing its first revival, as the machine changed from being a newsprint machine to an LWC machine. The demands of the market simply required it. Another change of direction took place at the beginning of 2013, when the Stracel mill ceased production of coated magazine paper. However, the mill did not have to wait very long to be reborn, as the French joint venture Blue Paper
SAS restarted the machine in December 2013. The short down time of only one year was possible, because the joint venture partners had started to plan, engineer and prepare the conversion already two years earlier. In its third life the Blue Paper line produces liner and fluting from recycled waste paper. Blue Paper is a joint venture between Klingele Papierwerke and VPK Packaging Group, both privately-owned companies with a strong experience in paper manufacturing. Klingele and VPK have been partners in the European packaging alliance ‘Blue Box Partners’ for many years.
20 JANUARY/FEBRUARY 2016 PaperAge
21PaperAge JANUARY/FEBRUARY 2016
paper machine grade conversion
Together they have a yearly con-sumption of more than one million tonnes of paper for corrugated board. This captive market made it possible to realize this ambitious project. It was certainly a positive investment for the future.
PAPER MACHINE ASSESSMENTWhen a papermaking line is rebuilt into a boardmaking line, the rebuild task is very seldom a simple and straightforward project. Every single section of the papermaking line needed to be evaluated for its suit-ability for boardmaking. In the case of Blue Paper, almost no section of the machine remained untouched. Valmet assessed the entire paper-making line in cooperation with Blue Paper. This particular papermaking line was already familiar to Valmet, since both the installa-tion of the original machine and the grade conversion 13 years earlier had been performed by Valmet. As a result of the assessment, a number of improvements and changes were planned to reach the goal. Some prototype designs were even included to reach the desired results.
PILOT TESTS BEFORE THE BIG DECISIONIn a rebuild this big, customers always want to be on the safe side as far as risks are concerned. Because the designed form-ing section was first of its kind, the prototype was tested at the Paper Technology Center in Jyväskylä, Finland. With the promising results of the pilot tests, Blue Paper was willing to risk the rebuild with Valmet. Valmet Technology Centers provide a comprehensive range of testing and piloting services to manufacturers of board and paper worldwide. The pilot plants have the entire process covered, from stock preparation to winding and everything in between, providing customers with excellent service and reliable results to support them in their invest-ment decisions.
MAJOR CHANGES FOR HEADBOX AND FORMING SECTION The headbox was rebuilt with a new dilution profiling sys-tem to enhance profile and quality, and a turbulence genera-tor for better formation. Because optimal process profiles and end product quality require that the headbox is in good
mechanical condition, the entire headbox was overhauled. The dewatering capability of the forming section was not sufficient for the requirements of the new grade. A number of issues had to be considered before the design was com-pleted. Since the paper machine was designed 25 years ago, assessing the condition of the machine was a necessity. As the original design was intended for high speeds, the assessment proved that the basic structures, frames and overall condition of the entire forming section were in good shape. Wrap angle optimization for the forming roll was also a key issue in order to increase dewatering at the beginning of the forming section. A large wrap angle guarantees a high dewatering capacity at high production speeds, even with less easily filtered stock. In order to achieve a wrap angle large enough for packaging papers, major parts of the forming sec-tion had to be modified or replaced. The addition of new suction boxes and a multifoil shoe also helped to increase dewatering. The basis weight variations are today very low in the rebuilt forming section — the paper formation and basis weight profile in the cross direction are exceptional. All significant paper quality properties can be easily managed. Together with the headbox, forming enables good board machine runnability at high production speeds. The press section also needed to be rebuilt to achieve a higher nip load. A new shoe was installed for the SymBelt roll of the second press in order to reach this target.
A Complete Makeover. No machine section remained untouched.
22 JANUARY/FEBRUARY 2016 PaperAge
paper machine grade conversion
NO MACHINE SECTION REMAINED UNTOUCHEDThe use of recycled fibers brings new challenges to the con-verted boardmaking line compared to LWC. Stickies and other unwanted substances can easily cause harm to the boardmaking process. Traversing high-pressure water cleaners were installed to clean the fabric during machine operation. The sizer was converted from a coating sizer into a starch-applying sizer. The transformation required higher nip loads, which meant new sizer frames and nip rolls were needed, but the existing applicator beams were in such good shape that it was possible to reuse them. The old multinip calender was removed and replaced with drying cylinders. Moisture profiling equipment was added to further improve the profiles and the reel was equipped with a WaterJet turn-up device to increase turn-up efficiency.
SAFE WORKINGSafety at work has become ever more important in the papermaking industry. In the case of a new machine, safety is easily taken into account, but rebuilds are a bit different. When existing and new equipment are combined, it may be more difficult to get an overall picture of safety aspects. In other words: In a rebuild, safety is to be enhanced, not weak-ened. As a part of the project, Valmet performed a safety audit for the recycled fiber (OCC) and the whole paper machine line, from short circulation to pope, to support the customer in improving safety level. The target of the study was to
identify safety risks and to propose actions to improve safety without decreasing the level of operations. The audit report gave directions on how to remove the safety hazards identified.
EXPERIENCE COUNTSGrade conversion projects and installations are not simple tasks. Rebuild projects, in general, are quite challenging because the tolerances are small and quite often you have to improvise a solution simply because the drawings did not match the reality. In grade conversion projects, the changes are not made around just one item in the machine; almost every section requires some modifications. The changes in the layout drawing may seem to be quite simple, but the reality often couldn’t be further from “simple.”
Mill Site. The Blue Paper mill is situated in Strasbourg, France.
In grade conversion projects,
the changes are not made
around just one item; almost
every section requires
some modifications.
23PaperAge JANUARY/FEBRUARY 2016
paper machine grade conversion
Valmet is one of the companies who can cope with these types of projects. Planning the project is a highly sophisticat-ed process. Every step, from the initial designs to installation and start-up and beyond, is always scheduled. But even with a detailed plan, there will be surprises that need to be taken care of at the site. Whenever an old machine is rebuilt into something new, something totally unexpected will almost certainly happen, and experience in this type of project is a must.
LOWER SPEEDS, HIGHER CAPACITYIn the near future, a number of European papermaking lines will be facing the same need to make a grade conversion. Hopefully, they will be able to achieve the same results as the high-flying Blue Paper line. With a trimmed width of 8.5 metres, this paper machine in Strasbourg previously produced LWC paper at a speed of 1,600 m/min. After start-up, the paper machine began producing fluting paper and testliner ranging from 70 to 130 g/m2 at a speed of some 1,200 m/min.
At this point, the paper machine has reached everyone’s expectations. As it is typically for a rebuild, the start-up was more difficult than the start-up of a new greenfield mill. It took some time until the new and the old parts worked together well and everything was optimized to produce top quality paper. At a 72-hour guarantee test run, the machine reached the targeted production in less than 68 hours. Editor’s note: Today, the converted paper machine at the Strasbourg mill has an annual production capacity of more than 300,000 tons of lightweight corrugated paper and test-liner made from 100% recycled furnish. The majority of the mill’s production is delivered to corrugated sheet and box plants throughout Europe. Blue Paper’s corrugated board is available in three different grades: Blue Liner, Blue Flute and Blue One.
This article originally appeared in Valmet’s “Forward” magazine. For further information about this paper machine conversion project, please contact: Rauno Hänninen, Senior Project Manager, Valmet [email protected].
Grade Conversion. Formerly a newsprint and LWC machine, the rebuilt Blue Paper line today produces fluting and testliner.
24 JANUARY/FEBRUARY 2016 PaperAge
feature
By Mike Soucy, Vice President of System Technologies, Kadant Johnson
paper machine dryer section
Because energy drives the papermaking process, steam
is found in many energy streams in a paper mill.
Steam is used to cook fibers for improved sheet
strength, heat stock for improved drainage, heat process air
for ventilation, heat dryers to dry paper, and selectively heat
the web for improved gloss and smoothness. Steam is a highly usable and regularly used additive throughout the paper mill. And when it comes to the dryer section, it is the primary input used to evaporate moisture from the sheet allowing for desirable and profitable sheet characteristics to be created. Although condensing steam to dry paper is an inherently efficient process, the drying process can be inefficient.
Fortunately, new technologies and control strategies give even
greater ability to manage steam to ensure optimal energy use
resulting in improved drying efficiency and machine run-
nability. The following “tips” from Kadant Johnson answer
some of the more frequently asked questions when it comes
to energy efficiency in a paper machine’s dryer section.
WHAT COMMON METRICS ARE USED FOR MEASURING PAPER DRYING EFFICIENCY?
Two common metrics for measuring paper drying efficiency are drying load (amount of water evaporated per hour) and steam consumption (amount of steam used per hour). The Technical Association of the Pulp and Paper Industry (TAPPI)
Energy Savings Opportunities in the Dryer SectionThe dryer section of a paper machine consumes large amounts of energy and can have a dramatic impact on the quality of your sheet and your bottom line.
25PaperAge JANUARY/FEBRUARY 2016
recommends these metrics be indexed by the dryer surface area (resulting in pounds of water evaporated per hour per square feet of dryer surface area) and by the amount of water evaporated (resulting in pounds of steam per hour per pound of water evaporated). The indexed values are better indicators of dryer performance and overall energy efficiency of the drying process. Indexed values can be compared to similar machines as a benchmark of performance.
WHAT IS THE ROLE OF MONITORING IN OPTIMIZING A DRYER SECTION?
Optimizing a dryer section begins with monitoring the dryer section operation and developing a baseline for dryer section performance. The baseline can be compared to the performance of similar machines producing similar grades. This baseline can also be used to evaluate the impact of changes made on the machine. Improvements, however, require an active program that follows and acts on the data. Daily production meetings should include a review of energy efficiency read-ings. This will help to identify losses as they occur. For example, an increase in steam going to a condenser may indicate the differential steam pressures are too high. A vent valve opening up may indicate a thermocompressor is running in a choked flow condition. An increase in the dryer steam flow (per ton of product) may indicate the exiting press mois-ture is increasing and it is time to change one of the press felts. An increase in steam pressure to the air heaters may indicate coils are fouled and need to be cleaned. Again, the first step is monitoring. The next steps involve acting on the results.
WHERE DO YOU START IN OPTIMIZING A DRYER SECTION?
The dryer section consumes large amounts of energy and it
can have a dramatic impact on both sheet quality and prof-
itability. The drying process, like other papermaking unit
operations, is a complex matrix of interacting systems: Pocket ventilation, steam system, drive system, tail thread-ing, sheet handling, energy recovery, and fabric conditioning, guiding, and tensioning. A good way to start an evaluation of the dryer section is to contact a drying systems supplier, consultant, or engineer-ing firm for a dryer audit. A professional dryer audit should include a complete set of dryer section measurements, an analysis of equipment sizing, recommendations for operational improvements, recommendations for equipment upgrades, lists of short-term and long-term improvement projects, and an analysis of the expected return for each project. Typical returns come from energy savings, increased dry ing capacity, reliable dryer drainage, reliable dryer drainage equipment, improved dryer section runnability, and enhanced drying uniformity. A comprehensive report identifies improve- ment opportunities and quantifies the associated benefits.
WHAT IS THE CORRECT OPERATING DIFFERENTIAL PRESSURE FOR A DRYER SECTION?
The correct operating differential pressure for maintaining dryer drainage depends on a number of parameters. Some of the more important variables are: dryer section steam pressure, steam condensing rate, type of dryer syphon
Two common metrics for measuring paper drying efficiency are drying load (amount of
water evaporated per hour) and steam consumption (amount of steam used per hour).
Optimizing a dryer section begins with monitor-ing the dryer section operation and developing
a baseline for dryer section performance.
paper machine dryer section
26 JANUARY/FEBRUARY 2016 PaperAge
(rotating, stationary, or scoop), syphon pipe sizes, machine speed, and dryer diameter. When it comes to setting the operating differential pressure, unlike the Ron Popeil 4000 rotisserie, operators cannot just “set it and forget it”. The operating differential pressures must be adjusted to reflect changes in operating conditions that come with start-ups, shut-downs, grade changes, and sheet breaks. Operators can make these changes manually, or they can use a supervisory control system, to make the changes automatically.
IS IT IMPORTANT THAT DIFFERENTIAL PRESSURE TRANSMITTERS BE CALIBRATED?
Proper calibration of instrumentation is at the heart of any
efficient dryer section operation. If a process parameter can-
not be properly measured, it cannot be properly controlled.
Differential pressure transmitters are particularly important.
Dryer drainage depends on it. Dryers with rotary syphons
will flood if the differential pressure is not high enough and
they will pass excessive amounts of blow-through steam if
the differential pressure is too high. Even with modern
stationary syphons, accurate differential pressure measure-
ment is very important. Only 3-4 psi differential pressure is
needed to drain the dryers with a stationary syphon, but with
a measurement error of only 2 psi, the blow-through flow
will easily be either inadequate or excessive. It does not end there, the differential pressure transmitters may be properly calibrated, but the pressure sensing lines may not be delivering the right pressure to the transmitter. Over half of the dryer sections surveyed by Kadant Johnson
had sensing lines that were improperly designed, installed, and maintained.
DOES THE GROUPING OF DRYERS AFFECT ENERGY EFFICIENCY?
The grouping of dryer cylinders in separate steam groups does not directly increase or decrease the amount of energy required to dry the paper web. The grouping of dryers does, however, have a direct effect on the design and ultimately on the performance of the dryer steam system. In a thermo-compressor steam system, for example, each thermocompressor must be sized to match the number of dryers in the section, their operating steam pressures, the differential steam pres-sures, and the resulting blow-through steam flow. In a cascade steam system, the down-stream dryer groups must be sized to use the blow-through steam flows from the up-stream dryer groups. The last of the steam groups must also be properly sized so that its blow-through steam is either used in a low-pressure process or low enough in quan-tity to be discharged to a condenser. Without a proper group-ing of dryers, the steam energy will be lost, either through vent valves to the atmosphere or to condensers.
WHY ARE DRYER SURFACE TEMPERATURES MEASURED IN A DRYER STUDY?
The surface temperature of a dryer is a good indicator of dryer performance. The temperature of the surface is com-pared to the temperature of supply steam (the “saturation” temperature that corresponds to the dryer steam pressure). The difference between the dryer surface temperature and the
Dryers with rotary
syphons will flood
if the differential
pressure is not high
enough and they
will pass excessive
amounts of blow-
through steam
if the differential
pressure is too high.
paper machine dryer section
27PaperAge JANUARY/FEBRUARY 2016
paper machine dryer section
steam temperature is an indica-tion of heat transfer efficiency from steam through the con-densate in the dryer, the cast iron dryer shell, contamination on the inside and outside of the dryer, and any other resistance between the steam and sheet. Interpretation of these results, however, requires some care. High dryer surface tempera-tures, for example, can be the result of very good heat trans-fer from the steam to the dryer shell, but they can also be the result of poor thermal contact between the dryer shell and the sheet. When used in conjunction
with other measurements (machine speed, trim width, grade, steam pressures, condensing load, fabric tensions, etc.), the dryer surface temperature measurements can provide valuable infor-mation on areas for potential improvement.
WHAT IS THE RECOMMENDED FREQUENCY FOR DRYER INSPECTIONS?
There may not be pressure vessel code, local jurisdictional, or other regulatory requirements for periodic dryer inspection, but it is a good practice to formally inspect dryers every five years. To make this process more manageable, mills and their insurance carriers will often adopt a program in which 20% of the dryers are inspected each year so that all dryers are inspected on a five-year cycle. These inspections include mag-netic particle testing of dryer heads, ultrasonic testing of head bolts, dryer shell thickness measurements, acoustic emissions examination, and external and internal visual inspections. Internal visual inspections should identify grooves in the shell, erosion under syphon shoes, loose dryer bars, loose dryer balance weights, visible casting flaws, and erosion or damage to syphon piping. Eroded syphon shoes, eroded syphon elbows, and leaks past syphon flange gaskets can lead to poor condensate evacuation, increased operating differen-tial pressures, and high blow-through steam flows. These in turn reduce the energy efficiency of the drying process
Mike Soucy is Vice President of System Technologies, Kadant Johnson. He can be reached by email at: [email protected].
Typical returns as a result of a professional dryer audit come from energy savings, increased drying capacity, reliable dryer drainage, reliable dryer drainage equipment, improved dryer sec-tion runnability, and enhanced drying uniformity.
For further information on advertising opportunities in the Paper2016 Convention Daily, please contact:
Mike O’Brien, Publisher • O’Brien Publications, Inc./PaperAge • 20 Schofield Road • Cohasset, MA 02025-1922 Telephone: 781.923.1016 • Fax: 781.923.1389 • e-mail: [email protected]
The Paper2016 Convention Daily will be published in three separate editions (March 6, March 7, March 8) and distributed to all attendees of the convention. The Paper2016 Convention Daily is published by O’Brien Publications, Inc.
Reach Decision MakersPlace an ad in the Paper2016 Convention Daily
Paper2016 will take place in the
Lotte New York Palace March 6-8, 2016
AF&PA Priorities for the 114th Congress
International Trade Opportunities
The 114th Congress is in full swing.
Republicans now control both
chambers of Congress for the first
time in eight years. With Rep. John
Boehner of Ohio’s 8th District as
speaker of the House and Sen. Mitch
McConnell of Kentucky as Senate
majority leader, the Congress has
embarked on an aggressive agenda
for 2015 aimed at highlighting the
contrasts between the GOP and
President Obama. Priorities include
challenging several of the presi-
dent’s signature policies on health
care, energy, banking, and the
environment. However, issues for
potential bipartisan action this
year could also include trade and
infrastructure, such as highway re-
authorization.AF&PA Congressional Priorities AF&PA is working to educate mem-
bers of Congress about our indus-
try’s economic impact and our com-
mitment to sustainability. Every
issue the industry faces has an effect
on its 900,000 workers — whether
dealing with marketplace challenges
or stifling government regulations.
By working with our member com-
panies and industry allies, AF&PA
has identified several priority is-
sues for 2015 including regulatory
reform, greenhouse gas regulations,
air regulations, transportation poli-
cies, promoting access to paper op-
tions, and trade and tax policies.Regulatory ReformAF&PA believes that Congress
should unleash the power of the U.S.
economy by passing legislation to
reduce the investment-stifling regu-
latory burden. Congress should con-
sider initiatives to ensure that federal
rulemakings are based on sound sci-
ence, use of the best available scien-
tific and technical information, long
term certainty, transparency, eco-
nomic considerations, and flexible
approaches.
T U E S D A Y , M A R C H 1 7 , 2 0 1 5
(continued on page 6)
AF&PA is advocating for biparti-san solutions to address the most
pressing problems facing paper and
packaging manufacturers who must
compete in a global marketplace and need regulatory certainty to
make new investments.
The improving economic condi-tion in the U.S., in contrast to the
negative or slow growth in other
major world economies, resulted
in an increase in 2014 U.S. imports.
Paper, paperboard and converted
products imports rose 4.3 percent, to 12.4 million metric tons.
(continued on page 2)
Note: All events are being held at
the Trump Hotel Chicago. TUESDAY, MARCH 17, 2015
Schedule of Events
Convention Daily• 7:00 am – 4:00 pm Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)• 8:00 am – 12:00 pm Official Hospitality Suites Open*
• 8:00 am – 4:00 pm Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor• 8:45 am – 9:45 am Special Session: Paper
Industry Initiatives – Building New Roadways to Success Skyline Room, 16th Floor (open to all Paper2015 registrants)
• 10:00 am – 11:30 am RISI Global Paper Market Trends and Forecast Skyline Room, 16th Floor
(open to Full Access Pass Paper2015 registrants only)• 12:00 pm – 2:15 pm Paper2015 Luncheon (sponsored by International Paper) Grand Ballroom, 16th Floor
(suites closed; separately ticketed event)
• 2:15 pm – 6:00 pm Official Hospitality Suites Open** Suite access is by appointment only.
Contact each company directly to
make appointments as they maintain
their own schedules.
PAPER2015
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UNCOATEDSPECIALITIES
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Visit suite 2128 to learn more about our high-speed digital inkjet solutions.
of the print market will be dominated by digital.
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3/3/15 9:34 AM
The global economy expanded at a
moderate but an uneven pace dur-
ing 2014. Among the developed
economies, the U.S. experienced an
annual growth rate of 2.4 percent
in 2014, with declining unemploy-
ment, while the economic situation
in Europe has been precarious, with
a number of eurozone countries on
the brink of recession. Growth rates
in developing countries and econo-
mies in transition diverged more
during 2014, as a sharp decelera-
tion occurred in many large emerg-
ing economies, particularly in Latin
America. In contrast, East Asia, in-
cluding China, experienced only a
mild economic slowdown. Global
growth is projected at 3.5 percent for
2015, according to an International
Monetary Fund report issued earlier
this year. Lower oil prices and the
depreciation of the euro and yen —
the flip side of the appreciation of
the U.S. dollar — support growth,
but structural issues persist in other
economies. The U.S. represents a
bright spot among major economic
players.U.S. Imports and Exports in 2014
U.S. exports of paper, paperboard
and converted products amounted
to an estimated 14.3 million met-
ric tons in 2014, unchanged from
the previous year, according to U.S.
Bureau of Census data. Exports of
newsprint, printing-writing paper
and bleached paperboard were low-
er, but exports of kraft linerboard
rose. On a regional basis, exports
of paper and paperboard were up
Note: All events are being held at the Trump Hotel Chicago.
MONDAY, MARCH 16, 2015• 7:00 am – 5:30 pm
Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor
• 7:00 am – 5:30 pm Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)
• 8:00 am – 4:00 pm Official Hospitality Suites Open*
• 4:00 pm – 5:30 pm Industry Leadership Session - CEO Panel (sponsored by Sappi North America) Grand Ballroom, 16th Floor (suites closed; open to Full Access Pass Paper2015 registrants only)
• 5:30 pm – 6:30 pm Paper2015 Reception (sponsored by Domtar) Grand Foyer, 16th Floor (suites closed; open to Paper2015 registrants only)
TUESDAY, MARCH 17, 2015• 7:00 am – 4:00 pm
Connections Lounge (sponsored by Glatfelter) Mezzanine (access via elevator or stairs from hotel lobby)
• 8:00 am – 12:00 pm Official Hospitality Suites Open*
• 8:00 am – 4:00 pm Paper2015 Registration Desk & Convention Daily Desks Grand Foyer, 16th Floor
• 8:45 am – 9:45 am Special Session: Paper Industry Initiatives – Building New Roadways to Success Skyline Foyer, 16th Floor (open to all Paper2015 registrants)
• 10:00 am – 11:30 am RISI Global Paper Market Trends and Forecast Skyline Room, 16th Floor (open to Full Access Pass Paper2015 registrants only)
• 12:00 pm – 2:15 pm Paper2015 Luncheon (sponsored by International Paper) Grand Ballroom, 16th Floor (suites closed; separately ticketed event)
• 2:15 pm – 6:00 pm Official Hospitality Suites Open*
* Suite access is by appointment only. Contact each company directly to make appointments as they maintain their own schedules.
Schedule of Events Mapping our Future at Paper2015
On behalf of the American Forest & Paper Association (AF&PA) and the National Paper Trade Association (NPTA), welcome to Paper2015, our industry’s most important annual event.
One of the barriers to increased pa-per recovery for recycling is the dis-tinction made between so-called “pre-consumer” and “post-con-sumer” fiber. Mandates that dic-tate “post-consumer” content in products often result in distortions in the market-driven demand/sup-ply balance by driving up prices for some usable fiber while placing an artificial barrier to the use of other equally environmentally beneficial recovered paper. Benefits accrue from utilizing all available sources of recovered fiber, not by singling out a specific source as the one that “counts.” It is some-what ironic that the paper industry, despite the great strides made in recovering our own products, con-tinues to be the only commodity where attention regarding this man-date is placed.
Certification Bodies are Shifting StandardsFortunately, major third-party for-est products certification groups have taken action recently to elimi-nate the distinction between and fully value both “pre-” and “post-consumer” recovered paper. Both the Sustainable Forestry Initiative
(SFI) and Forest Stewardship Coun-cil (FSC) are updating their chain-of-custody standards. The SFI board of directors voted in November 2014 to approve the final draft of the SFI 2015-2019: Standards and Rules. AF&PA filed comments supporting proposed
changes that eliminate the distinc-tion between “pre-consumer” and “post-consumer” fiber in SFI’s defi-nition of recycled content and in la-beling standards for the products that contain recycled content. The new SFI standard, which went into effect on January 6, 2015, recognizes both “pre-consumer” and “post-consumer” recycled fiber as quali-fying as certified recycled content. The change also allows SFI chain-of-custody certificate holders that use recycled content in their products the ability to choose to incorporate a Mobius loop in on-product labeling stating the percentage of recycled content in the product. FSC recommended revising its chain-of-custody standard in late 2013 with a view to include all re-covered paper materials as inputs towards FSC credit. FSC received
Why the Distinction between “Pre-” and “Post-consumer” Recovered Fiber Should be Eliminated
M O N D A Y , M A R C H 1 6 , 2 0 1 5
Mark GardnerAF&PA Board Chairman
Hilton MazeNPTA Board Chairman
(continued on page 6)
Benefits accrue from utilizing all available sources of recovered
fiber, not by singling out a specific source as the one that “counts.”
PAPER2015Convention Daily
We invite you to join in mapping our industry’s future. Paper2015 brings insightful sessions and nu-merous opportunities to connect with colleagues and chart the best course for tomorrow’s success. We’ll officially kick off Paper2015 with this afternoon’s Industry Lead-ership Session, where a panel of CEOs representing key segments of the paper industry will pro-vide their unique perspective on issues of importance to our business. We hope to connect with you at the
Paper2015 Reception immediately following the panel. Company suites are open today and tomorrow so that you may check in with your key clients and suppliers, strengthen your existing business relationships, and meet promising new contacts. Thank you for participating in Pa-per2015. We’re looking forward to mapping our future with you. Mark Gardner is president and CEO of Sappi North America and Hilton Maze is president and CEO of Simon Miller Paper & Packaging.
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Paper2015 Welcomes You
Welcome to Paper2015! On behalf
of the American Forest & Paper
Association (AF&PA) and the
National Paper Trade Association
(NPTA), we are thrilled that you
have joined us in Chicago.
This year, we’re Mapping our
Future through timely sessions and
unparalleled networking oppor-
tunities. We hope the insights
and connections you make at
Paper2015 will be essential to
your business for years to come.
At Monday’s Industry Leadership
Session, a distinguished panel of
CEOs representing key segments of
the paper industry will provide their
unique perspectives on issues of
importance to our industry’s success.
Tuesday starts with the Special
Session: Paper Industry Initiatives
– Roadways to Success, where
representatives from key U.S. paper
industry organizations will share
how their programs are informing
the marketplace and helping you in
your business.
At RISI’s annual seminar, Ken
Waghorne and Derek Mahlburg
will present the market outlook for
paperboard, recovered fiber and
printing-writing paper.
The Paper2015 Luncheon features
Robert O’Neill, who served as an
operator and team leader with the
legendary Navy SEAL Team Six.
He will translate his unique
expertise into high-impact,
actionable insights on leadership,
decision-making, operating in
uncertain environments, and how
to become the ‘best of the best.’
During the Luncheon, Morris
Dennis of Dennis Paper will receive
the NPTA Stanley O. Styles Industry
Excellence Award.
Thank you for participating in
Paper2015. We hope you enjoy
your experience.
Paper-based communications are
critically important for millions of
Americans – especially for seniors
and citizens without online access.
Yet federal and state governments
continue to take actions to phase
out or eliminate paper-based op-
tions, imposing hardships for mil-
lions of vulnerable Americans and
having negative consequences for
the paper industry. These efforts,
under the rationale of cost saving,
are imposed without any congres-
sional oversight or input from citi-
zens. AF&PA is ramping up its ad-
vocacy to educate legislators and
regulators about the unintended
cost shifting and access barriers
that elimination of paper-based in-
formation and services imposes for
many people who depend on or pre-
fer paper.
Nearly 36 million American house-
holds do not have Internet access at
home. Almost 19 million senior citi-
zens don’t own a computer. These
enormous numbers of Americans
are left behind by digital-only ac-
cess to government services. AF&PA
believes this government “rush to
digitize” is short-sighted and causes
harm to citizens.
The U.S. Treasury Department,
for example, on January 1, 2012,
stopped sales of over-the-counter
paper savings bonds and forced
people to buy them online via Trea-
sury Direct, requiring the intended
recipient’s taxpayer ID number,
Social Security number, bank
AF&PA Steps up Efforts for Government
to Include Paper Options
S U N D A Y , MA R C H 1 5 , 2 0 1 5
Donna Harman
Kevin Gammonley
From Donna Harman, President & CEO, AF&PA
and Kevin Gammonley, CEO, NPTA Alliance
(continued on page 4)
Schedule of Events
PAPER2015
Convention Daily
Note: All events are being held
at the Trump Hotel Chicago.
SUNDAY, MARCH 15, 2015
• 12:00 pm – 6:00 pm
Paper2015 Registration Desk
& Convention Daily Desks
Grand Foyer, 16th Floor
• 12:00 pm – 6:00 pm
Connections Lounge
(sponsored by Glatfelter)
Mezzanine (access via elevator
or stairs from hotel lobby)
• 3:00 pm – 6:00 pm
Official Hospitality
Suites Check-in
• 4:00 pm – 6:00 pm
Official Hospitality
Suites Open*
MONDAY, MARCH 16, 2015
• 7:00 am – 5:30 pm
Paper2015 Registration Desk
& Convention Daily Desks
Grand Foyer, 16th Floor
• 7:00 am – 5:30 pm
Connections Lounge
(sponsored by Glatfelter)
Mezzanine (access via elevator
or stairs from hotel lobby)
• 8:00 am – 4:00 pm
Official Hospitality
Suites Open*
• 4:00 pm – 5:30 pm
Industry Leadership
Session - CEO Panel
(sponsored by Sappi
North America)
Grand Ballroom, 16th Floor
(suites closed; open to
Full Access Pass Paper2015
registrants only)
• 5:30 pm – 6:30 pm
Paper2015 Reception
(sponsored by Domtar)
Grand Foyer, 16th Floor
(suites closed; open to all
Paper2015 registrants)
* Suite access is by appointment only.
Contact each company directly to
make appointments as they maintain
their own schedules.
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3/3/15 9:34 AM
Paper-based communications
are critically important for
millions of Americans –
especially for seniors and
citizens without online access.
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of interest
Of manufacturers planning to add production capacity over the next five years for goods consumed in the U.S., more plan to add that capacity in the U.S. than in any other country — a sharp reversal since as recently as two years ago. And a rising percentage of U.S.-based executives at the manufacturers say they are already in the process of reshoring production work from China. These are among the findings of new research released in December 2015 by The Boston Consulting Group (BCG).
INCREASING U.S. PRODUCTION
Thirty-one percent of respondents to
BCG’s fourth annual survey of senior
U.S.-based manufacturing executives
at companies with at least $1 billion in annual revenues said that their compa-nies are most likely to add production capacity in the U.S. within five years for goods sold in the U.S., while 20% said they are most likely to add capac-ity in China. Asked the same question in 2013, 30% of respondents said that China was the most likely destination for new capacity devoted to serving the U.S. market, while only 26% said capacity would be added in the U.S.
Even though China will remain
a major exporter to the U.S., which
accounted for around 18% of its total
exports through the first eleven months
of 2015, the suggestion that the U.S.
has surpassed China as the most likely
destination for new manufacturing
capacity is striking. The share of executives saying that their companies are actively reshor-ing production increased by 9% since 2014 and by about 250% since 2012. This suggests that companies that were considering reshoring in the past three years are now taking action. By a two-to-one margin, executives said they believe that reshoring will help create U.S. jobs at their companies rather than lead to a net loss of jobs. “These findings underscore how sig-nificantly U.S. attitudes toward manu-facturing in America seem to have swung in just a few years,” said Harold L. Sirkin, a BCG senior partner and a coauthor of the research, which is part of BCG’s ongoing series on the shift-ing economics of global manufacturing, launched in 2011. “The results offer the latest evidence that a revival of
American manufacturing is underway.”
LOGISTICS, SUPPLY CHAIN PUSHING CHANGE This year’s survey also con-firmed that factors such as logistics, inventory costs, ease of doing business, and the risks of operating extended supply chains are weighing heavily in executives’ deci-sions to bring manufacturing back to the U.S. Seventy-six
percent of respondents reported that a primary reason for reshoring produc-tion of goods to be sold in the U.S. was to “shorten our supply chain,” while 70% cited reduced shipping costs and 64% said “to be closer to customers.”“The fundamental economic forces that are prompting many companies to reassess their global manufacturing footprint have not changed,” explained Michael Zinser, a BCG senior part-ner and coleader of the firm’s global Manufacturing practice. “Given the big differences in wage growth and productivity — and the greater atten-tion companies are paying to total cost — there is good reason to believe that the cost-competitiveness of the U.S. compared with China and many other major export economies will continue to improve in the near term.”
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. For more information, please visit: bcg.com.
Made in America, AgainU.S. Now the Preferred Location for New Factory Capacity to Serve U.S. Market, Interest in Reshoring Stays Strong
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Paper2016 in New York City offers exceptional networking opportunities, timely sessions on emerging issues, and new insights and connections. Register today at Paper2016.com/registration!
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