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Board Converting News, February 8, 2021

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BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years February 8, 2021 VOL. 37, NO. 6

Consumer Trends Shift In Covid’s Wake BY GREG KISHBAUGH

FBA: Shipments Jump Again In December

According to the Fibre Box Association (FBA), which released its audit of corrugated ship- ment, inventory and consumption statistics on February 1, industry shipments of cor- rugated products increased an impressive 11.4 percent, from 31.332 bsf in December of 2019 to 34.916 bsf in December of 2020. Average-week shipments also increased 11.4 percent, from7.833 bsf in 2019 to 8.729 bsf in 2020. Shipments rose to 3.4 percent year-to- date over 2019’s rate. Containerboard consumption increased 8.1 percent, from 2.5660 million tons in De- cember of 2019 to 2.7727 million tons in De- cember of 2020. Consumption increased 2.4 percent year-to-date over 2019, from 32.3005 million tons to 33.0739 million tons. Containerboard inventory at corrugator plants increased 5.6 percent, from 1.7912 mil- lion tons in November 2020 to 1.8921 million tons in December 2020. Weeks of supply also increased, from 2.5 to 2.7, or 8.0 percent. According to AF&PA statistics, U.S. capac- ity reached a new high of 3.62 million tons per month in December. “Recently, most of the capacity additions have been recycled

Consumer trends typically follow a somewhat predictable arc from year to year. But, as with all things, the pandemic has accelerated some trends and inexorably altered others. Mintel has released its 2021 Global Consumer Trends report, which analyzes what packaging producers can expect from the market in the coming year.

CONTINUED ON PAGE 8

WHAT’S INSIDE 6 GBP To Expand With Acquisition Of Third Dimension Inc. 8 Greif, PCA Announce $70/Ton Price Increases 16 More Webinars Added To AICC All Access Pass 30 Supplier Reports: Part 2

One result of the pandemic is an increasing awareness of wellbe- ing by consumers. Months of isolation and uncertainty have unmoored many consumers and made them realize the importance of better tak- ing care of themselves. Mintel suggests that a playbook for how to respond to this burgeon- ing awareness does not yet exist and that brands have an enormous opportunity if they position themselves at the forefront of this trend. CONTINUED ON PAGE 20

T H A C K E R I N D U S T R I A L S E R V I C E C O M P A N Y

O P E R A T O R T R A I N I N G T A I L O R E D T O Y O U R G O A L S Before any training star ts, we need to know your goals. We’ l l help you identi f y them, customize them, measure them and help achieve the expectations set by your team. Our intensive training wi l l encompass two ful l days at your faci l ity for al l par ticipants, during the week or on a weekend. Al l you need is a room for training your group and the machine you want to train on.

O U R T E A M

Our Training team consists of three corrugated industry exper ts with nearly 100 years of combined experience. Their backgrounds are in both integrated and independent companies with roles ranging from Machine Operator to Director of Operations. Making them more than qual i f ied to tackle any machine and training issue. Cal l today to learn how your team can benef it from the industry ’s premier training program.

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February 8, 2021

C u r r e n t O p e r a t o r E x p e r i e n c e

S T E P 1

M a c h i n e t y p e G o a l s / E x p e c t a t i o n s

I s s u e s

Q U E S T I O N N A I R E

P l a n 2 d a y s w i t h i n y o u r s c h e d u l e

S T E P 2

1 d a y c l a s s r o o m a n d 1 d a y a t m a c h i n e

S C H E D U L E

1 - B o x S e t u p C a l i b r a t i o n T o o l i n g

S T E P 3

T R A I N I N G

T r o u b l e s h o o t i n g

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February 8, 2021

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

The Price is Right More readers rely on Board Converting News’ containerboard pricing to negotiate their contracts. SUBSCRIBE TODAY.

Robyn Smith at 910-553-4055 /[email protected] Len Prazych at 518-366-9017 / [email protected]

www.boardconvertingnews.com

February 8, 2021

GBP To Expand With Acquisition Of Third Dimension Inc. Green Bay, Wisconsin based Green Bay Packaging Inc. (GBP) is planning an expansion with their acquisition of Third Dimension Inc. The announcement was made in October of 2020 that Green Bay Packaging, Inc. acquired Third Dimension, Inc. The planned expansion of 112,000- square-feet will be at the Geneva Facility located on Pleas- ant Avenue in Geneva, Ohio. The plan is to break ground this spring with a comple- tion date in the forth quarter of 2021. The expansion will house new box converting equipment, which will provide additional production capabilities. Final approval is pend- ing upon notification of a tax abatement. Started in 1933, Green Bay Packaging Inc. is a fam- ily-owned, vertically integrated company consisting of corrugated container plants, folding cartons, recycled and virgin linerboard mills, pressure-sensitive label roll stock, specialty converting operations, timberlands, and a sawmill facility. Headquartered in Green Bay, Wisconsin, Green Bay Packaging Inc. is dedicated to the innovative development of its products and forestry resources, with a focus on quality, sustainability, and continuous improve- ment throughout all its manufacturing facilities in 14 states. Visit www.gbp.com for more information about Green Bay Packaging Inc.,

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February 8, 2021

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

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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

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

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

containerboard, however, the additions to capacity be- tween November and December have been primarily in the virgin containerboard sector,” noted Dick Storat in his Scoring Boxes newsletter. “Recycled containerboard now accounts for more than 35 percent of total U.S. container- board capacity. This growth has occurred over the past 12 years, from a level of 24 percent at the start of 2009.” Greif, PCA Announce Price Increases Delaware, Ohio based Greif, Inc. announced last week that it is implementing price increases on its paperboard and containerboard products. A $50/ton price increase for all grades of uncoated recycled paperboard (URB), a $70/ton price increase on recycled and semi-chemical medium, and a $60/ton increase on recycled linerboard will be ef- fective with shipments on and after March 4, 2021. Lake Forest, Illinois based PCA announced a $70/ ton hike, effective March 1. “This is the biggest domestic hike in memory and comes just four months after a $50 increase,” said Mark Wilde Ph.D. at BMO Capital Markets. “With markets very tight, other producers are sure to fol- low, but whether they can get $70 is another matter. We expect this attempt to garner more push-back from box customers than the November hike.”

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

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

www.boardconvertingnews.com

February 8, 2021

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RusCorr Celebrates Record-Breaking Shift With BHS 110-Inch Corrugator November 18, 2020, marked yet another milestone of achievement for Corrugated Supplies’ RusCorr sheet feeder located in Cullman, Alabama: its second shift corru- gator crew set a new 8-hour record averaging 57,720 FPH (962 FPM) with zero down time. They produced a total

over 96 percent of the maximum speed is testimony to the pride our team takes in running our corrugator fast, keep- ing it clean and maintaining it to BHS standards.” Scott Hogeland, RusCorr’s Maintenance Manager, add- ed, “For the last eight months of 2020, every monthly av- erage was better than the last. Including maintenance and downtime, our monthly average speed in May was 798 FPM. In December, our average rose to 823 FPM (49,380 FPH) for the month. We finished the year with a 12 month

of 3,653,458 square-feet of board with 67 dry end order changes. BHS presented a Platinum Performer award on January 12 to celebrate RusCorr’s achievement. According to Joel Wilemon, RusCorr Facility Manager, “Our 110-inch BHS Corrugator is over 17 years old and has a max speed of 1000 FPM. The fact that my guys averaged

average of 47,580 FPH (793FPM). Total downtime for the year was 1.45 percent of maintenance downtime and 1.39 percent of production downtime. However, it’s how our team performs every day, as well as the overall support we receive from BHS that makes it possible to support our customers with the highest quality and consistency.”

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February 8, 2021

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U.S. Ecommerce Grows 44 Percent In 2020

merce 360’s analysis of the latest U.S. Department of Commerce figures. This is the highest growth since 1999. Digital Commerce 360 studies non-seasonally adjust- ed Commerce Department >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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