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Board Converting News, December 21, 2020

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BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years December 21, 2020 VOL. 36, NO. 51

Year In Review, Part 1: 2020 Was A Year Like No Other BY LEN PRAZYCH It’s that time of year again: the END of the year that has been like no other, within and outside of the North American corrugated and folding carton industries. There’s nothing like a pandemic to upend everything we have come to know and expect about anything, all while grieving the loss of more than 302,000 Americans. Yet it’s time to take a breath, put 2020 behind us and continue working.

FBA: Shipments Jump Again In November

Industry shipments of corrugated products increased 4.8 percent, from 32.060 bsf in No- vember of 2019 to 33.612 bsf in November of 2020, the Fibre Box Association (FBA) report- ed. Average-week shipments also increased 4.8 percent, from 8.437 bsf in 2019 to 8.845 bsf in 2020, which is another record high, the first coming in October. Shipments have risen to 2.2 percent year-to-date over 2019’s rate. Containerboard consumption increased 3.5 percent, from 2.5847 million tons in No- vember of 2019 to 2.6756 million tons in November of 2020. Consumption is up 2.0 percent year-to-date over 2019, from 29.7345 million tons to 30.3291 million tons. Containerboard inventory at corrugator plants decreased 1.3 percent, from 1.8156 mil- lion tons in October to 1.7912 million tons in November 2020. Weeks of supply also de- creased, from 2.6 to 2.5, or 3.8 percent. “Consumer spending for packaging inten- sive non-durable goods coupled with relative- ly small decreases in production of food and other non-durable goods, as well as strong shifts from in-store to online consumer spend- ing, has translated into strong box demand,”

As the economy has been impacted and millions are without jobs and possibly, without homes, we in the industry can be thankful for the financial prosperity we have enjoyed during some of our nation’s dark- est days. Boxes are still in demand, now more than ever. Here is some of the news worth noting for the first six months of 2020: JANUARY • China Halts Tariff Increase On U.S. Recyclables : According to a report in Resource Recycling , the Chinese government will not im- plement a planned tariff increase on OCC and other recovered fiber imported from the U.S. after the two countries came to an agree- ment in recent trade talks. • Sonoco Acquires TEQ, Plastique Holdings Ltd : Hartsville, South Carolina based Sonoco announced it has completed the acquisi- tion of Huntley, Illinois based Thermoform Engineered Quality, LLC, and UK based Plastique Holdings, Limited, (together TEQ) for $187 million in cash.

CONTINUED ON PAGE 8

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x 6 AICC Opens Registration For New Package Design Webinar 12 Marvin Grossbard Of President Container Dies On December 9 6 How To Use Humor To Conquer Zoom Fatigue 45 Esko Announces Sale Of Kongsberg Business

CONTINUED ON PAGE 22

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 indi- cated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.

REGION E. Coast Midwest Southeast Southwest

42# Kraft liner $885.00-890.00 $900.00-910.00 $900.00-910.00 $900.00-910.00 $930.00-940.00 $903.00-912.00

26# Semi-Chem. Medium

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

$820.00-850.00 $835.00-855.00 $835.00-855.00 $835.00-855.00 $865.00-875.00 $838.00-858.00

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

275# DBL-WALL 350# DBL-WALL

107.46 118.45

114.69 129.32

116.54 137.25 117.82 145.56

141.08

122.76

148.46

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

$920.00 $965.00

$910.00 $945.00

AVERAGE CONTAINERBOARD PRICES.indd 1

3/7/19 2:04 PM

December 21, 2020

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Graphic Packaging Named To List Of ‘Most Responsible’ Companies Atlanta, Georgia based Graphic Packaging Holding Com- pany, a provider of paper-based packaging solutions to food, beverage, foodservice, and other consumer prod- ucts companies, has been named to Newsweek ’s 2021 list of America’s Most Responsible Companies based on a detailed analysis of Environmental, Social and Corporate Governance (ESG) factors. “We are honored to be named to the list of America’s Most Responsible Companies,” said Michael Doss, Pres- ident and Chief Executive Officer. “With our Vision 2025 goals published in 2019, we emphasized our commitment to redefine leadership in the paperboard packaging indus- try. To achieve this, we set goals and identified ways we can continue to innovate for a healthier planet, support and develop our employees, champion our partners with sustainable packaging solutions, engage with our commu- nities and operate responsibly.” America’s Most Responsible Companies were selected from a pool of over 2,000 companies based on publicly available key performance indicators derived from Annual Reports, Sustainability Reports and Corporate Citizenship Reports, in addition to an independent survey of 7,500 U.S. residents to evaluate company reputations. The final list spans 14 industries and recognizes 400 companies.

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December 21, 2020

A Century of Innovation In Every Machine Celebrating 100 Years: 1920-2020

FALCON 2-minute run-to-run times and world-class production @ 21K/HR

IBIS 2-minute run-to-run times and total product flexibility @ 15K/HR

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AICC Opens Registration For New Sustainable Package Design Webinar AICC, The Independent Packaging Association, has opened registration for The Influence of Sustainable Pack- age Design on Buyer Behavior, a new webinar to be held Monday, January 11, at 2:00 p.m. EST, with Dr. Andrew Hur- ley, Associate Professor, Clemson University. In this webinar, attendees will learn about a multi-year case study where various packages were optimized to communicate sustainability. Attendees will also receive three white papers that detail a process of aligning pack- age design, sustainability messaging, and promotion, which had a significant influence on shopper attention and decision-making. Being able to communicate successful storylines for package sustainability is important for sales, marketing, design, and R&D professionals.

Dr. Andrew Hurley is an Associate Professor of Pack- aging Science at Clemson University. He coordinates the packaging design curriculum, manages an internationally recognized consumer behavior research lab, and has de- livered over 100 presentations on package design glob- ally. Hurley’s research lab answers complex questions on product marketing and packaging. His experienced group has tested thousands of packages for hundreds of brands. Hurley’s efforts have resulted in multiple awards, patents, and increased sales by 40 percent for small and large businesses. The success of his lab catalyzed the forma- tion of Package InSight, a full-service package design and testing company in Greenville, South Carolina. He is also the lead instructor for Clemson University’s Center for Corporate Learning’s Certificate of Mastery in Packaging Management. This online curriculum teaches the necessary business acumen and professional vocab- ulary to work successfully within the packaging industry.

Registration for The Influence of Sustain- able Package Design on Buyer Behavior is $250 for members and $500 for non-mem- bers. This webinar is part of the All Access Pass. Pass holders can use their promo code to register at no additional cost. Register for The Influence of Sustain- able Package Design on Buyer Behavior at www.AICCbox.org/Calendar . Questions can be directed to Taryn Pyle, Director of Education & Leadership Devel- opment, at [email protected] or Chelsea May, Education and Training Manager, at [email protected] or (703) 836-2422. AF&PA Releases November 2020 Boxboard Report The American Forest & Paper Association (AF&PA) released its November 2020 Box- board Monthly report. Total Boxboard pro- duction in November decreased two per- cent compared to November 2019. It was down three percent when compared to the same 11 months of 2019. The boxboard operating rate was 91.3 percent, down 1.4 points from November 2019 and down 0.7 points year-to-date. Solid Bleached Boxboard production in November increased four percent com- pared to November 2019. It was down five percent when compared to the same 11 months of 2019. Recycled Boxboard production in No- vember decreased four percent compared to November 2019. It was down two per- cent when compared to the same 11 months of 2019.

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December 21, 2020

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

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.

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ance from steam to paper surface results in fast heat flow n higher plate surface temperature

Benefits

FBA: Shipments Jump (CONT’D FROM PAGE 1 )

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

noted Dick Storat in his Scoring Boxes newsletter. Containerboard operating rates, however, fell from 98.0 percent in October to 93.3 percent in November, ac- cording to the American Forest & Paper Association (AF&- PA). The rate was essentially flat (-0.4 pts.) from the rate in November 2019 and is up 2.5 points year-to-date. “The large drop in operating rates was a bit of a neg- ative surprise,” said Mark Wilde, Ph.D. and Senior Analyst at BMO Capital Markets Limited. “We suspect some of it owes to delayed maintenance from earlier in the year.” FBA To Change Publication Frequency Beginning in 2021, FBA will change the publication frequency of the Monthly Statistical Bulletin and publish summary >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

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