November 10, 2005

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THE AMERICAN FOREST & PAPER ASSOCIATION, (AF&PA) Washington, D.C., UDSA reports the formation of an alliance with the Occupational Safety and Health Administration (OSHA) and the Pulp & Paper Safety Association (PPSA) to focus on reducing the frequency and severity of musculoskeletal disorders (MSDs) in employees of the forest, pulp and paper industries. The alliance will educate companies on ergonomic options to improve the health and safety of their employees. Members of the alliance will develop training and education materials on ergonomics techniques and applications in the industry and present them in appropriate forums. AF&PA, along with PPSA, will cross-train OSHA personnel and industry safety and health professionals in effective approaches for reducing safety hazards in the industry. Additionally, members plan to share information on potential ergonomics issues and possible solutions with others in the industry and publicize the results through outreach and web postings. The alliance will meet yearly to discuss the application of these goals.

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THE ASSOCIATION OF SUPPLIERS TO THE PAPER INDUSTRY (ASPI), Falls Church, Virginia, USA held its fall meeting in Stone Mountain, Georgia with over 60 industry executives in attendance for the educational session and networking opportunity. ASPI's Spring Meeting will be held March 15-19, 2006 at Amelia Island Plantation, Amelia Island, Florida. More information is available online.

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BILLERUD, Solna, Stockholm, Sweden is the only forest company to make the list of top companies recognized by Folksam, a Swedish insurance company, in its annual analyses of the performance of climate work, carbon dioxide emissions, and reporting of emissions by Swedish companies. Billerud was awarded with five stars out of five by Folksam. Billerud, according to the insurance company, has very high standards for its climate work, and it has a good record for reporting its carbon dioxide emissions.

Billerud is pro-active in its environmental work and all of the company's mills have ISO 14001 certification. The Swedish units are accredited with EMAS and improving energy efficiency while replacing fossil fuels with bio-fuel is a top priority for the mills. Bio-fuel currently accounts for 90% of the fuel requirement for heating and electricity production. Billerud also aims to reduce the amount of truck-based transport, while increasing the amount of train and boat transport. At the present time 39% of total transportation is by train and 56% is by boat.

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CASCADES INC., Kingsey Falls, Quebec, Canada, has announced that its Greenfield division in Château-Thierry, France has obtained certification from the Forest Stewardship Council (FSC) for its recycled pulp. Cascades now has four units to claim FSC certified products. Cascades said the Château-Thierry operation is the first market deinked pulp (DIP) producer to claim the FSC certification in Europe. Greenfield customers will now be able to make a 100 % FSC A4 copy paper and to produce a quality similar to the best virgin pulp A4s.

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DOMTAR, Montreal, Quebec, Canada will one again support for The Literacy Foundation in its campaign to raise awareness for the literacy cause for a ninth consecutive year. Domtar announced its commitment to two Foundation projects: "Domtar's Paper Christmas for Literacy" and "The Gift of Reading®". Under the first program, annual paper supplies are distributed to 200 Quebec agencies working for adult literacy. The second project provides new books for children up the age of 12 who are living in disadvantaged situations. The program is designed to battle illiteracy and reduce school dropout rates. In Quebec today, 309,340 young people under 17 are still living in poverty, according to Domtar, and more than a million people in the province are held back by some form of reading or writing problem.

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FREEDONIA GROUP INC., Cleveland, Ohio, USA has released a new study, "Nonchemical Water Treatment." Highlights of the study, available at pr@freedoniagroup.com or (440) 646-0484, include:

• US demand for nonchemical water treatment supplies and equipment is projected to increase 6.7% annually to US$ 6.3 billion in 2009, increasing its overall share of the water treatment market. While the filtration and separation segment is expected to continue to account for a large majority of demand, disinfection equipment is projected to register faster growth as water treatment operators turn to nonchemical techniques, both to assure that water is clean and safe and to reduce reliance on chlorine and other chemicals in the interest of workplace safety and reducing risks posed by disinfection products. As a result, both UV radiation and ozone generating equipment are expected to post growth approaching 20% annually.
• The industrial segment is projected to register faster growth than the municipal or residential commercial markets
• The municipal water treatment segment, the largest outlet for nonchemical treatment, is expected to continue to register steady growth, though not on pace with the industrial segment.

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HISTORIC RITTENHOUSE TOWN, Philadelphia, Pennsylvania, USA is the recipient of several grants to support the site's education program that includes interactive papermaking. Historic Rittenhouse Town, the site of North America's first paper mill, offers thousands of students each year educational programs. Those awarding the grants include the Connelly Foundation, The Philadelphia Cultural Fund, The Arcadia Foundation, and the Pennsylvania Department of Community and Economic Development.

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KIMBERLY-CLARK CORP. (K-C), Dallas, Texas, USA has received the Radio Frequency Identification (RFID) Early Adopter Award from Consumer Goods Technology magazine at its Fall 2005 Conference. The award, presented for the first time this year, recognizes the consumer goods company that has most successfully implemented RFID technology. K-C was selected for the honor through nominations from consumer goods companies, retailers, and technology vendors. The magazine's editorial advisory board determined the winner. Accepting the award for K-C were: Cheryl Perkins, senior vice president and chief technical officer; and Terry Assink, vice president of management information services.

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METSO PAPER, Helsinki, Finland, reports settlement of a claim resulting from a project at the Papiers Gaspésia mill in Quebec, Canada. In 2002, Metso Paper received an order for a rebuild of an extensive printing and writing paper line from Papiers Gaspésia in Chandler, Quebec, Canada. A mid 2004 completion was planned for the project, but it was stopped in 2004 for financing reasons. Metso Paper's accounts receivable were consequently written off by EUR 15 million (US$ 17.7 million), included in 2004 financials.

In an October 2005 arrangement, the Papiers Gaspésia mill will be transferred to the development company owned by the city of Chandler. Part of the arrangement says the previous owners of Papiers Gaspésia will pay creditors and the city a part of the liabilities and expenses. Metso, with no remaining obligations to the project, received a lump sum EUR 4 million (US$ 4.7 million) payment, which will improve operating profit during the last quarter of 2005.

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THE NATIONAL FOREST STRATEGY COALITION, Ottawa, Canada has just released a report outlining its accomplishments called, "Highlights of Accomplishments: Two Years of Progress-Advancing the National Forest Strategy (2003-2008)." The full report is available at online. Canada's diverse forest community has:

• established a national council to coordinate and enhance research and development efforts among government and industry;
• developed new strategies for dealing with forest threats, such as insects, fire, and climate change; and
• collaborated to advance boreal forest conservation.

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NORSKE SKOG, Lysaker, Norway received approval from the Australian Commerce and Consumer Commission (ACCC) fir the company's acquisition of the remaining 50% of the shares in Pan Asia Paper Co. from Abitibi-Consolidated. The deal is expected to close on November 18, 2005 at which time the transfer of funds will also take place, and PanAsia will be fully consolidated into Norske Skog financial accounts.

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THE PAPER INDUSTRY HALL OF FAME (PIHF), Appleton, Wisconsin, USA hosted 400 guests for the 11th annual Paper Industry International Hall of Fame induction ceremony, held on October 13, 2005 in Appleton as six notable paper industry innovators were added to the roster of industry icons. Bringing the total of inductees to 70, the honorees representing the worldwide paper industry were:

• Robert C. Buchanan, non-executive chairman, Fox River Paper Co., was inducted under the categories of leadership and entrepreneur for enhancing Fox River Paper's position as a manufacturer of premium paper products through his approach to internal expansion and product positioning.
• Professor Johan Erik Gullichsen, chairman Ahlstrom Corporation and CEO, Arhippainen, Gullichsen & Co., Hirsjarvi, Somero, Finland, was inducted in the categories of research & development, entrepreneur and academic for his innovations in the processing of pulp fiber suspensions at medium consistency. He is the recipient of more than 60 patents and has over 180 publications around the world.
• Dr. Michael J. Kocurek, professor and department head of Wood & Paper Science at North Carolina State University in Raleigh, North Carolina, was inducted in the academic category as one of the world's most recognized educators in pulp and paper. James F. Kress, chairman, Green Bay Packaging, Inc., Green Bay, Wisconsin was inducted for his leadership abilities, leading Green Bay Packaging to manufacture in a more ecologically responsible manner.
• Bruce Barton Purdy, vice president (retired) of Appleton Wire Works and director (retired) Albany International Corp., Incline Village, Nevada, was inducted in the technology category, for his transformation of the early 1900s wire weaving technology for paper machine clothing through his revolutionary development of an automated wire looming operation.
• Dr. W. Howard Rapson, (deceased) professor of Chemical Engineering at the University of Toronto, Toronto, Ontario, Canada, was inducted posthumously for technology and may be considered to be the father of chlorine dioxide bleaching, one of the major developments in the history of the pulp and paper industry.

In addition to the induction ceremony, the PIHF event coincided with the second annual "Paper Days in the Paper Valley," a four-day celebration of the Pulp and Paper Industry and a collaborative effort of the following organizations: Lake States TAPPI, North Central PIMA, Paper Discovery Center/Paper Industry International Hall of Fame, Wisconsin Paper Council, USDA Forest Products Laboratory, UWSP-Paper Science Program, and The World of Market Pulp Seminar.

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THE PORT OF TACOMA COMMISSION, Tacoma, Washington, USA has approved a US$ 12.5 million settlement with Weyerhaeuser Company as compensation in eminent domain proceedings brought by the Port in September 2004. The agreement calls for a $12.5 million payment to Weyerhaeuser, which will, in turn, vacate the site by May 31, 2006. The Weyerhaeuser Puget Sound Chip Center is located along a narrow section of the Blair Waterway. To accommodate larger vessels and ensure safe navigation, the Port will begin widening this section of the waterway in July 2006. The Port exercised its right of eminent domain as part of its program to widen portions of the Blair Waterway. The settlement is compensation for the remaining 12 years on the lease and for Weyerhaeuser facility improvements.

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SMURFIT-STONE CONTAINER CORP., Chicago, Illinois, has announced a "comprehensive redefinition of its strategy" to dramatically improve the company's performance and better position the company for long term growth. The company plans to reduce annual costs by $600 million and drive incremental revenue growth of $650 million. The company redefines its strategic direction on three pillars: 1) significant cost reduction initiatives to improve its position in the marketplace, 2) an innovative marketing model and 3) organizational changes to enable the cost reduction and revenue enhancing strategy.

In order to drive major structural cost reduction, by 2008 the company expects to close up to 20 percent of its corrugated container facilities and transfer the business to larger plants. Scale will be achieved through investment in high speed corrugators and finishing equipment, in addition to a common business system to standardize processes and information across the company. Other cost initiatives will optimize the company's integrated business system and centralize certain functions currently performed at the plant level.

To drive growth, the company will expand its marketing approach with an agency model that allows it to act as an agent on behalf of its customers to coordinate the full range of services and expanded product offerings. Many of these services and products will be provided in-house by Smurfit-Stone. Some will be sourced from strategic partners specializing in those services or products.

The company expects to invest approximately $400 million in capital to implement its strategic initiatives. Smurfit-Stone is evaluating strategic options for its consumer packaging segment. Proceeds from the possible sale of all or part of these businesses will fund the company's initiatives and reduce debt.

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THE ST. JOE CO. (JOE), Port St. Joe, Florida, USA announced that the city commission of Port St. Joe, Florida has adopted a zoning ordinance allowing for a mix of residential and commercial uses on 166 acres formerly occupied by the mill. JOE owns 40 acres of the site while the remaining 126 acres is owned by a joint venture between JOE and Smurfit-Stone Container Corp. The city commission also approved the annexation of the new phase of JOE's WindMark Beach, a beachfront resort destination with 1662 residential units on 2020 acres, into the city of Port St. Joe.

The paper mill site redevelopment is currently being planned for approximately 600 residential units, mostly multifamily units on the bay front, an includes 350,000 square feet of retail space that is being designed as a civic gathering place and entertainment district for the city. The plan provides for a public waterfront on the St. Josephs Bay. An additional 150,000 square feet of office space is designated to house the growing need for professional services. Plans also call for a 150-room hotel and 500 wet and dry boat slips. A new Town Hall with city government offices is also provided for in the plan.

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STORA ENSO, Stamford, Connecticut, USA appointed Shaughnessy Kniep Hawe, St Louis, Missouri to be new distributor for the company's line of coated and uncoated papers, effective November 1, 2005. The addition of Shaughnessy strengthens Stora Enso's distribution system in the Midwest with locations at: St. Louis and Springfield, Missouri; Plainfield, Indiana; Lenexa, Kansas; Tulsa, Oklahoma; Des Moines, Iowa; and Louisville, Kentucky. Shaughnessy will be responsible for distributing well-known Stora Enso brands, such as coated wood-free grades Centura®, Productolith® and Fortune®; the company's publication papers; and its complete line of digital and cut-size papers.

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VOTORANTIM CELULOSE E PAPEL (VCP), Porto Alegre, Brazil announced it has entered into the social and environmental licensing process for implementation of a bleached eucalyptus pulp factory to be built in Rio Grande do Sul. Plans are for the mill to occupy an area of roughly 450 to 500 hectares in the Rio Grande-Pelotas-Arroio Grande region, said CEO Jose Luciano Penido. The announcement was made during a reception in the Palacio Piratini, the seat of Rio Grande do Sul state government, in the presence of Governor Germano Rigotto and other authorities.

The company plans to invest US$ 1.3 billion in the mill and forest base, which is designed to produce one million metric tons/yr of pulp. According to Penido, VCP is applying the best business practices in this project. The idea of the enterprise is being praised as a concrete option for the region's economic development, where VCP has already invested R$310 million (US$ 141 million) and directly and indirectly generated 3400 jobs with forestry planting and infrastructure. It is likely 8000 jobs will be created during construction, slated for 2009 through 2011. Another 2000 direct and indirect jobs will be offered in the new plant. Production will be targeted to the European, Asian, and American markets with shipments carried out through Rio Grande Port. An environmental licensing study is expected to conclude by 2007, and basic engineering and technical proposals will be developed from 2008 to 2009, when the project will be reviewed for approval by VCP's board of directors.


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

UPM, Helsinki, Finland, said the twenty-first edition of the renowned Brockhaus Encyclopedia has been printed on UPM Finesse bulky matt, the company's new high-volume paper. The massive encyclopedia encompasses 30 volumes and 24,500 pages, is bound in distinguished materials such as leather and linen, takes up 1.7 meters of shelf space and weighs around 70 kg. The encyclopedia is printed on UPM Finesse bulky matt in sheets. The wood-free matt-coated grade is primarily designed for book publishers. UPM says it gives printed products more bulk, a pleasant feel, and excellent readability. Its greater stiffness yields excellent technical machinability, and its high whiteness makes it an ideal addition to the UPM Finesse art paper selection. The UPM Finesse bulky matt papers have a bulk of 1.05 cm³/g in reels and 1.1 cm³/g in sheets. Brockhaus released the first six volumes at the Frankfurt Book Fair October 19-23, 2005, and remaining volumes will be published in series of six every three months until September 2006.

UPM Finesse bulky matt was released for sheet-fed offset printing from Nordland Papier in Germany in spring and for web offset printing from Kymi, Finland this autumn. Both grades have been matched to each other in terms of optical characteristics, so that reel and sheet papers can easily be used together to achieve visually attractive combinations of for example text and cover.

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KIMBERLY-CLARK CORP. (K-C), Dallas, Texas, USA announced that its consumer tissue business is notifying customers of plans to raise prices. Prices for bathroom tissue, paper towels, napkins, and flushable moist wipes will be increased effective February 5, 2006. Prices for facial tissue will be increased effective April 2, 2006. In total, the increases will average approximately 6%.

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

I write this on Friday afternoon, November 4th while seated in my aunt's room in a hospice in Florida. For those of you who do not live in the US or are not familiar with the word "hospice," this is the last stop facility before many flowers are bought in your name and great words are said over you. I use this as a place of reflection and the focal point this week, not out of disrespect or cavalierly, but with the idea that there is a good counterpoint lesson regarding our daily professional lives.

This is a wonderful facility, where great attention is paid to the comfort of the patients and their families. As I write, my aunt, sleeping soundly, is covered with a handmade blanket and there are several others in the room--all made and donated by volunteers. I can smell cookies baking in the kitchen, and everyone, including us visiting family members, is given all they want to eat. Doctors check on patients, but no one is scolded for being overweight, too high cholesterol readings or anything else. When you arrive here, those days are over.

I was struck by the similarities between this experience and our careers and our industry. Many of us, both individually and as companies, seem to figuratively want all the cookies and milk to eat every day. Yet, that is not the way life or business works. When we get to the point of cookies and milk, all we want, every day, the game is over.

Sometimes the tensions I write about here strike some of you wrong, and I make no apologies for that. For those of us who are vibrant must keep probing, searching and striving for the best and most efficient industry we can build. I hold to these beliefs: education is superior to and the opposite of ignorance-strive for education. Likewise, efficiency is superior to and opposite of cronyism and favoritism, strive for efficiency. Most of my efforts here and elsewhere are striving for education and efficiency in our great industry worldwide. Don't come to me whining over favoritisms destroyed, at the individual or company level.

Back to this place. When the end comes, they close the door and hang an angel on the doorknob. I have seen them do that twice on this one hall just today. And here, they are efficient-in about three hours the room is sterilized, organized and ready for someone else.

Be safe and we will talk next week.

The opinions expressed in this column are those of the author only, not TAPPI. “Nip Impressions^®” is a registered trademark of Talo Analytic International, Inc.

TAPPI President Wayne H. Gross, CAE, To Retire January 1, 2006
TAPPI President Wayne H. Gross, CAE, has announced his retirement effective January 1, 2006, capping a thirty-year career with the Association. Gross has been at TAPPI's helm since 1996, serving as Executive Director and more recently President.

TAPPI's Chairman Willis J. Potts, Jr. and Vice Chairman Mark R. McCollister are working with the Board of Directors to ensure a smooth transition in staff leadership while continuing to focus on changing the Association to better serve members, their companies, and the pulp, paper, packaging and converting industries.

During this transition, TAPPI Senior Vice President Susan M. Blevins, CAE, CEM, a 23-year veteran of the TAPPI staff, will assume many of Wayne's responsibilities including day-to-day operations. Susan and the staff Vice Presidents will work closely with members and industry leaders to ensure that TAPPI continues to help members elevate their performance by providing solutions that lead to better, faster, and more cost effective ways of doing business.

Plans to celebrate Wayne's 30 years of service to TAPPI will be announced soon.

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Test Methods News --Proposed Change to T 809
A proposal has been made to split out the rigid support method from T 809 "Flat Crush of Corrugating Medium (CMT test)." A revision of T 809 with the rigid support method eliminated is currently in ballot. A new Standard-Specific Interest Group (SSIG) needs to be formed to ballot the new method.

The scope of this method is as follows: This method describes a procedure for measuring the crushing resistance of a laboratory fluted strip of corrugating medium, and provides a means of estimating, in the laboratory, the potential flat crush resistance of a corrugated board. Other grades may not correlate with their potential.

Any TAPPI members who are interested in this method may join the Standard-Specific Interest Group (SSIG) to receive ballots when this method is ready for vote. If you would like to join the SSIG for this project, please notify Charles Bohanan at TAPPI (cbohanan@tappi.org) or fax at +1-770-446-6947 before February 1, 2006.

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Your Opinions are Wanted and Needed! - TAPPI Survey on the Way

Opening the survey - 1 minute
Answering the survey questions - 7 minutes
Providing input that enhances my TAPPI membership - Priceless

At TAPPI, we strive to provide you with the highest quality products and services that help you conduct your business better, faster and smarter. We can only do that with your valuable input and feedback. Our new membership research project will help us discover ways to add more value to your membership.

Four distinct groups of TAPPI members will receive email surveys: pulp and paper manufacturers, PLACE suppliers and manufacturers, corrugated suppliers and manufacturers, and consultants and suppliers in general. We've already sent the PLACE survey. The pulp and paper survey will go out shortly, followed by the other two segments.

Please watch your e-mail for these important surveys and take the 8 minutes to voice your needs, opinions, and suggestions so that we can continue to improve your TAPPI experience. Thank your time and commitment to the industry. If you have any questions about this research project please contact TAPPI's Membership Director Cindy Seel at 770-209-7418 or cseel@tappi.org.

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Research Management Committee Requests Nominations for William H. Aiken Prize
The TAPPI Research Management Committee requests nominations to be submitted for the Research and Development Award and the William H. Aiken Prize. The $500 prize is funded by an endowment from the estate of William H. Aiken, TAPPI President in 1967-1968 and vice president of technology for the former Union Camp Corporation at the time of his death in 1974. Dr. Aiken also won the TAPPI Gold Medal, the association's highest honor, in 1971. The award is given for outstanding accomplishments or contributions which have advanced the technology of the paper and related industries in the field of research and development.

Nominations for the Research and Development Award and the William H. Aiken Prize should be submitted by May 1, 2006, to Charles Bohanan (cbohanan@tappi.org) at TAPPI (15 Technology Parkway South, Norcross, GA 30092, USA, or fax +1 770-446-6947). The nomination should contain a summary of the nominee's technical achievements, personal data (such as education and work history), and information of other pertinent activity (such as TAPPI activities or memberships in other associations).

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Southeastern TAPPI November 17 Conference and Six-Sigma Workshop are POSTPONED
There are an unusually high number of maintenance shutdowns scheduled by mills in the Southeastern TAPPI region during the week of November 14-18. Many Southeastern TAPPI members (both mill and supplier) have indicated their inability to attend the upcoming conference. The Southeastern TAPPI Board of Directors is concerned about quality of the conference and the opportunities for networking. Therefore, the Board has decided to postpone the upcoming conference scheduled for November 17 and the Six-Sigma Green-Belt workshop scheduled for November 14-16. This conference will be re-scheduled after the holiday season. A Six-Sigma Green-Belt workshop is scheduled for December 7-9 at TAPPI headquarters in Norcross, Georgia. For more info, e-mail southeasterntappi@yahoo.com.

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TAPPI's new Optimizing Paper Machine Performance Course
January 9-11, 2006 St. Petersburg, Florida

TAPPI's new Optimizing Paper Machine Performance Course explores proven methods and tools that will help participants identify opportunities and implement efforts to reduce costs, improve efficiency, and enhance product quality.

After successfully completing this course, participants will be able to….

• Establish a paper machine performance audit
• Benchmark paper machine operations against industry standards
• Identify areas of paper machine performance that are sub-standard
• Apply performance audit data to optimize performance

Register by December 15th and Save! Get all the details online. Course sponsored by Metso Paper.