Board Converting News, April 26, 2021

Board Converting News, April 26, 2021

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years April 26, 2021 VOL. 35, NO. 17

Acme Corrugated Box Begins Post-Pandemic Expansion In PA BY LEN PRAZYCH As the world continues to recover from the pandemic, there is still a sense of uncertainty as the nation’s manufacturers begin to fully re- open their doors to embrace a “new normalcy.” What isn’t in question, however, is the unprecedented and explosive demand for corrugated boxes in a questionably “post-pandemic” world. Ask any independent

Volk Packaging To Establish New Division In Sanford, ME Derek Volk, owner and CEO of Biddeford, Maine based Volk Packaging Corporation, has announced his company’s plans to es- tablish a new division – Volk Pack – and set up shop later this spring in nearby Sanford, Maine, about 18 miles away. “We are really pleased with the facility lo- cation and the extensive preparatory work completed on the building by developer 43 North,” said Volk. “We are hoping to provide some Sanford area folks with good stable work. The support we received from Peter DelGreco at Maine & Company and JimNimon at the Sanford Regional Economic Growth Council (SREGC) was appreciated and helped make our decision easier.” Volk’s expansion plans in Sanford include Volk Pack handling business-to-business, and business-to-consumer fulfillment, repackag-

CONTINUED ON PAGE 5

box maker and the answer is the same: “Backlogs like we’ve never seen before.” “Busier than we’ve ever been.” “Can’t get enough sheets fast enough to fill customer orders.” “Had to add a second shift.” Or in the case of especially successful independents, Acme Corrugat- ed Box Co. among them, “Need to invest $35 million and build a new 80,000-square-foot expansion.” “This expansion demonstrates our commitment to our overall growth and enhanced sophistication of the company,” said Acme’s President, Bob Cohen. “It will allow us to increase manufacturing capacity, further embrace innovation of new products and flute profiles, and give us a greater ability to serve our customers.” With the thawing of the northeast soil and the pandemic apparently under control, the company recently broke ground on an addition to its existing 250,000-square-foot facility in Hatboro, a 1.5-square-mile town 15 miles outside of Philadelphia, Pennsylvania, where Acme was founded in 1918 by Bob Cohen’s father, Edward J. Cohen. In the sto- ry of the independent spirit worth retelling and remembering, Edward packed his horse-drawn wagon with scrap paper and traveled through CONTINUED ON PAGE 30 An architectural rendering of Acme Corrugated Box’s 80,000-square-foot expansion of its facility in Hatboro, Pennsylvania.

WHAT’S INSIDE

10 Consolidation Versus

Competition Of Containerboard

14 ICPF Virtual Teleconference Draws 400 Students, Faculty 16 AICC Emerging Leaders Offer Learning And Networking 26 Changing Lanes To Move Forward 42 The Perfect Storm Keeps Improving 66 Cal Poly Graduates Maximize

Power Of Packaging Value Chain

72 Bobst Opens Virtual Doors

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April 26, 2021

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April 26, 2021

Volk Packaging (CONT’D FROM PAGE 1 )

AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.

ing and prepackaging assembly, including for medical supplies. Volk Pack anticipates having around 20 people on site in Sanford immediately, and could hire as many as 20 additional workers in the next year. Interested appli- cants can apply through the company website at volkbox- es.com. Volk says that much of the space will be used as a warehouse for Volk Packaging, but there is also potential to use some of the new building for manufacturing over- flow, as the company will lease about 90 percent of the existing square footage. Volk Packaging, a third-generation family business founded in 1967, was celebrated in a recent Portland Press Herald article as the winner of the Biddeford-Saco Cham- ber’s 2020 Large Business of the Year. The story noted that “Volk was recognized for their consistent investment in their employee’s health and safety, and their passionate ongoing support for our nation’s military, highlighted by their Heroes Wall installation adjacent to their facility. They continuously invest in their people and the community as a core component of their company culture.” “City officials have worked with 43 North developers over many months to modernize an underutilized indus- trial site,” SREGC’s Jim Nimon. “We’re really proud of the work we accomplished together, and we’re especially de- lighted to welcome Volk Packaging to our community.”

REGION E. Coast Midwest Southeast Southwest

42# Kraft liner $955.00-960.00 $970.00-980.00 $970.00-980.00 $970.00-980.00 $1000.00-1010.00 $973.00-982.00

26# Semi-Chem. Medium

Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.

$890.00-940.00 $905.00-925.00 $905.00-925.00 $905.00-925.00 $925.00-945.00 $908.00-928.00

West Coast U.S. Average

SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets

E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.

200# 275#

$62.26

$72.05

$62.69 $82.80

$85.35 119.54

$73.13 101.29

97.32

99.89

90.86

113.65

OYSTER UP-CHARGE 8.34

8.34

8.34

8.34

8.34

8.34

275# DBL-WALL 350# DBL-WALL

107.46 118.45

114.69 129.32

116.54 137.25 117.82 145.56

141.08 148.46

122.76 131.80

CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.

42# Kraft Liner 26#

Semi-Chem Medium

East West

$970.00

$960.00 $995.00

$1,015.00

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April 26, 2021

Machinery and Handling for the Corrugated Board Industry

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month December 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

34.916 31.332

11.4

8.729 7.833

11.4

Industry Total

Year-to Date

December 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

406.776 393.483

3.4

8.071 7.838

3.0

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2020 2019

2.7727 2.5660

8.1

33.0739 32.3005

2.4

P E R F O R M A N C E D E L I V E R E D • HEAVY, DENSE BALES • RELIABLE AUTOMATIC TIER • LOW OPERATING COST PER TON AMERICAN BALER TAKES PERFORMANCE TO NEW HEIGHTS! 800.843.7512 AmericanBaler.com I N T E G R I T Y I Q U A L I T Y I R E L I A B I L I T Y I VA L U E

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Dec. Nov.

1.8921 1.7912

5.6

2.7 2.5

8.0

Shipping Days

Year

Month

Year-to-Date

2020 2019

20 20

252 251

SOURCE: Fibre Box Association

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April 26, 2021

Cascades To Establish Vaccination Hub In Kingsey Falls, Quebec Responding to the government’s call to businesses, Kingsey Falls, Quebec based Cascades is announcing that it will set up a COVID-19 vaccination hub in Kingsey Falls this coming May. This site will support the actions of the health and social services network in the Mauricie – Centre-du-Quebec region. It will provide supervised vac- cinations, in the order of priority established by the public health authorities, of Cascades employees, their families, and the general population. “The decision to contribute to the vaccination effort was made without hesitation,” said Mario Plourde, Pres- ident and Chief Executive Officer of Cascades. “This ini- tiative is the natural extension of all the measures put in place at Cascades to fight against COVID-19. It is also an expression of our desire to help the entire community during these difficult times.” “Cascades is well known for a long time in our region for its community involvement. So it’s no surprise to see the company getting involved and lending a hand in the COVID-19 vaccination drive. We are grateful for its par- ticipation in this government initiative to accelerate the vaccination of the population” said Gilles Hudon, Asso- ciate CEO of Centre intégré universitaire de santé et de CONTINUED ON PAGE 10

Core Competency

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Consolidation Versus Competition Of Containerboard BY JOHN WIDERA The dominant driver of consolidation comes from Wall Street, where shareholder value rules. So why is it that small asset independent box making businesses have disproportionate- ly taken the biggest hits during the last 40 years of consolidation? Only 10 percent of U.S. businesses are considered large businesses. In the slightly fragmented paper industry, U.S. mills sell 91 percent of all con- tainerboard. Indeed, only the strong survive when consol- idation reduces competition. In most cases, I’m just as much a capitalist pig as the John Widera

Cascades To Establish (CONT’D FROM PAGE 8)

services sociaux de la Mauricie-et-du-Centre-du-Québec (CIUSSS MCQ). Cascades has its own health expertise centre which serves all of its operations in North America. Drawing on its experience with influenza vaccination in recent years, the company has the expertise to ensure the implementa- tion of this vaccination clinic, in compliance with the rec- ommendations of the CIUSSS MCQ. In cooperation with other companies and organizations in the region, some resources necessary to ensure the project’s success will also be utilized, especially those in logistics and communi- cations. Cascades will also recruit dozens of volunteers to ensure the operation runs smoothly. Cascades will also work in partnership with other com- pany-based vaccination sites to support our Quebec em- ployees in their vaccination process.

next guy and I don’t begrudge anyone mak- ing a buck, but constantly raising prices on the remaining independent box makers and not passing all of the increase on to your big loyal customers ultimately benefits the “rich getting richer.” This isn’t market-based capitalism anymore. In the long run, it’s a grotesque insult of misunderstanding of government antitrust power. The poet Wal- ter Scott summed it up best: “Oh, what a tangled web we weave, when first we prac- tice to deceive.” If you’re sitting on unlimited funds or have a large credit line, be bold. Now can be the time to pick up more market share at a bar- gain. But a word of caution: Integration is of- ten a losing proposition because the bigger you become, the more misplaced priorities and ever-changing is the costly technology required to compete. Integration eventually creates other problems: shareholder ROI, job competencies and the threat of large European or Chinese competitors entering the US market. Due to more demand and a strain on supply, an integrated’s indepen- dent customers are now afraid to talk pub- licly for fear of less receiving less container- board. Why the disruption? • E-commerce growth: paper mills control the digital market by setting their own commodities with low prices and dedi- cated capacity at the expense of small customer orders. • Mills buy employee loyalty with higher wages and buy customer loyalty with lower prices. Yet, there is little value. • High M&A offerings, sometimes as high as 10x EBIDTA. Making the deal is just a

CONTINUED ON PAGE 12

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40 ft of paper travel from preheater to hot plates 3 seconds of heat, glue and bonding 1 chance to get it right! the ZONE

Design & Production

Chicago Electric offers 10 technology solutions to control ‘the Zone’ CORRUGATOR Sectoral preheating plate

Our sectoral preheating plates provide direct heat by means of a double steam circuit, allowing for efficient heating in hard-to-access locations, as well as to act as a steam shower to open the paper’s fibre, making it receptive to absorbing the heat and the glue.

This translates into increased speed and improved quality of the cardboard sheet finish.

The system’s main advantages are as follows:

• The plate may only be used to heat, only to humidify, or both options at the same time. • The plate is sectored, which allows for applying humidity to the sections. • It provides temperature in previously inaccessible locations and near the location needed. • It compensates the loss of temperature dissipated due to distance, speed or limitations of the exiting preheaters. • Quick transferring of heat to the paper. • The combination of the hot plate and steam shower allows for providing heat even to the hardest papers to heat. • Does not dry out the paper. • Possibility of operating as a humidifier and pre-conditioner. • Maintains and improves the fibre’s elasticity. • Acts according to the operator’s needs. • Facilitates the paper’s hygroscopy to absorb the glue and improve rubberising.

CONTROLLABILITY

1. Wrap Arm - Position & Temperature 2. Preheater Direct Drive

DOUBLEBACKER IMPROVEMENT

3. Steam Plate 4. Contact Roll 5. Glue Machine Direct Drive Touch Productivity Issue—Glue Unit Many glue units run with a rider roll or a guiding bar system. The rider roll with paper gap allows a precise glue application, but requires frequent Contact Roll

PRODUCTIVITY

C/ Orfeó Català 13-15 · 08440 Cardedeu (Barcelona) telf: +34 93 846 01 06 · [email protected] WWW.AL-GAR.COM

DOUBLEBACKER IMPROVEMENT

calibrations and settings. Bar systems avoid this, but compensate this with the risk of exces- sive glue application. The system contains many wearing parts. Solution The contact roll combines the ad antage of both systems and ensures minimum contact between board and applicator roll. The system uses small pneumatic cylinders in order to achieve a “soft touch.”

6. Gap Control 7. Curved Plate 8. Roller Shoe Press When it comes to a short-term increas of web tension, spring loaded systems with shoes or airpressure activated system have problems in compensating these. The system is lifted for a short time. This may result in de-lamination and in the ‘double kiss’ effect. Solution For a defined and exact bonding point of the web fiv weight rollers will be installed usually over the first flat hotplate of the heating section. The rolls are mounted into a frame, which is actuated by means of two pneumatic cylinders. P oductivity Issu —Double Kiss Bonding

PRODUCTIVITY

PRODUCTIVITY

DOUBLEBACKER IMPROVEMENT

Roller Shoe

DOUBLEBACKER IMPROVEMENT

9. Thin Wall Hot Plates 10. Pressure System Benefits —Exact glue application due to defined contact of applicator roll to web. Web is in contact to less flute tips compared to bar systems. • High precision glue application • Less moisture applied to web —No wear of shoes and springs —No adjustment of shoes or paper gap —Uniform glue application over entire working width for all flutes by use of pneumatic cylinders instead of springs — Less contamination by paper dust and glue remains —No jam of board because of web breaks caused by splice joints going through 630-784-0800 Benefits —Rollers secure exact defined first point of contact of liner and single-faced board - No double kiss —Frame design avoids unintended lifting of roller shoe (compared to spring or air loaded systems) - No double kiss —Pressure can be increased or released for special grades or products 490 Tower Blvd., Carol Stream, IL Contact Chicago Electric to GET IT RIGHT 630-784-0800 [email protected] chicagoelectric.com Solution The ProPress system ensures an optimum heat transfer to the board. It offers a wide range of set- tings. The loadi g pressure can be varied, the number of shoes can be lifted in accordance t the line speed. The outer shoes can be lifted in accordance to the paper width. The shoe bars will be delivered pre-assembled for a short installation time. —Liftable for easy paper infeed and for cleaning of the machine —Position adjustable in paper direction to avoid grooves in hotplate Press Productivity Issue—Poor Heat Transfer Rollers are usually limiting the heat transfer, since they often have contact mainly on the edges of the plates due to wear or bent plates. They also cause often loss of caliper and bearing need to be replaced frequently. Airpressure actuated systems can only supply a limited pressure and have com- pared to shoe systems a closed surface. Pressure Shoe

Plate vity Issue—Poor Heat Control l hotplates are slow to react to pressure due to high steam volume and massive y also have high heat radiation and heat profile. Worn plates can damage crease edge crush.

Thin-Wall Hot Plates

t by peripheral drilled hot plates. anufactured out of special wear and nt steel, through which a continuous is drilled, with one inlet and one outlet. ecured by a massive steel frame.

CORR24usa.com

ance from steam to paper surface results in fast heat flow

Consolidation (CONT’D FROM PAGE 10)

Puhl custom designs systems to meet your needs. • Moving to a new facility? Puhl has experience moving entire plant systems all while minimizing down time in BOTH plants during the transition. • Below roof AND above roof systems custom designed to meet your needs. • New and Remanufactured Equipment (balers, blowers, separators, filters and more). Our Remanufactured equipment includes a warranty and offers significant savings. • NFPA and OSHA compliant systems designed by our NFPA trained engineering team. • Dust Briquetters, Certified Explosion Isolation Valves, Flame Front Diverters and more to control dust and meet NFPA requirements. • PLC Touch Screen Controls with Real Time Pressure Balancing and Real Time Remote Monitoring available on your smart phone or computer. leging major containerboard producers engaging in illegal anti-competitive conduct with respect to the sales of con- tainerboard products. Although the hot breath of competition is not evil, within large consolidated organizations there is a penchant to be destructive, inefficient and wasteful. The time squandered in competing internally is better utilized collaborating to gain profitable sales growth and cash flow by working to- gether against the external competitors. In other words, competition is good, but it is not a helpful dynamic in a seamless collaborative team process such as consolida- tion. In effect, don’t let strengths become weaknesses. A new generation is coming to the workforce with on- line experience from playing quick-thinking video games. These influencers have figured out how to compete through software games that can prepare them to work, even at home with complex programs or organizing >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82

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