Board Converting News, July 18, 2022

Board Converting News, July 18, 2022

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 38 years July 18, 2022 VOL. 38, NO. 29

Saica Pack: Open For Business In The U.S. BY DAN BRUNTON

Rusken Packaging Expands Footprint With TN Acquisition Cullman, Alabama based Rusken Packag- ing has announced the acquisition of a small sheet plant in Knoxville, Tennessee. This ac- quisition is effective as of July 1, 2022. “It gives me great pleasure to announce that we now have manufacturing capability in Knoxville, Tennesse,” said Randy Whiteak- er, Rusken COO. “As you may know, we have had assembly and warehousing in Knoxville for some time. With the acquisition of a small sheet plant, we have now added a second lo- cation and are working toward a full manufac- turing production schedule in the near future.” Rusken’s growth in East Tennessee will be led by Rusken’s Susan Brackett as Knoxville Site Manager and Jason Warner as Oper- ations Manager. This acquisition is part of a strategic focus to expand Rusken’s footprint throughout the Southeast, further growing its existing capabilities and customer base in the Knoxville and East Tennessee market. Rusken operates corrugated facilities and sheet plants in Cullman, AL; Heflin, AL; Lu- verne, AL; Jackson, TN; Clarksville, TN; Knox- ville, TN; Charlotte, NC; Cowpens, SC; Atlanta, GA; Conyers, GA; Harrisburg, AR; New Orle- ans, LA; Jackson, MS; and Tupelo, MS.

Saica Pack, the third largest European producer of recycled paper for corrugated board, has officially expanded into the U.S. market, starting up its first box plant in April. Located in Hamilton, Ohio, about 20 miles north of Cincinnati, the 360,000-square-foot greenfield plant is a mod- el of efficiency, exemplifying European innovation in every detail.

The plant is in the process of building volume, courting a list of high profile customers, and is currently operating one shift with 32 employ- ees. The goal is to have 120 employees by the end of 2023 operating three shifts. The production capacity target is 1,500,000 MSF (140m sqm) per year of corrugated board, which Gonzalo Aragüés, Industrial Projects Director, says will be achieved by 2029. The projected target for this year is 265,000 MSF (25m sqm). Customers are primarily consumer goods companies in the logistics and food and beverage markets. The U.S. plant also provides corrugat- ed sheets to local sheet plants. The percentage mix of shipped boxes versus sheets is 50/50 with the goal of changing that to 80 percent boxes and 20 percent sheets. Box styles are mostly single and two-col- or RSCs and trays. About 10 percent of finished goods is warehoused on-site. Focus On Automation The modern two-story plant is expansive. The reception entrance, administrative offices and training and conference centers are inviting CONTINUED ON PAGE 22 Gonzalo Aragüés, Industrial Projects Director, left, and Akin Burak Önder, GM, at Saica Pack’s greenfield plant in Hamilton, Ohio.

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x 4 2022 Innovator Of The Year Award Competition Is Open 6 TAPPI/AICC Opens Registration For Corrugated Week 2022 10 ICG Names Clearwater Paper Its 2021 Supplier Of The Year 12 PPC Celebrates Inaugural PPC Week In Springfield, MA

It’s What is on the Inside & Outside That Counts The SUN 625 RDC brings together two-sided printing in a single pass, ideal for high-speed and high-volume production

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exceptional productivity in a variety of segments. This vertically opening flexo printing machine was engineered to be a versatile, high-producing workhorse while keeping maintenance costs low. This true 125" RDC has the ability to run 200 kicks per minute and up to 12,000 sheets per hour

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Custom messaging and branding has never been easier. SUN provides two-sided printing solutions to transform your existing press proficiency. This single pass solution is engineered to integrate seamlessly with a variety of OEM equipment, including the SUN 625. Email [email protected] and ask about our Spectrum Inside Print units & Color Master blade systems

INNOVATOR of the YEAR

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.

Tools and tooling – Education or employee incentive programs – Employee retention programs – Efficiency, productivity and safety innovations , and more. Share your innovative ideas! Boxmakers! Entry deadline - Friday, August 19, 2022 Open to all AICC Boxmaker members It’s easy to enter!

REGION E. Coast Midwest Southeast Southwest

42# Kraft liner

26# Semi-Chem. Medium

$1005.00-1010.00 $1020.00-1030.00 $1020.00-1030.00 $1020.00-1030.00 $1050.00-1060.00 $1023.00-1032.00

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

$940.00-990.00 $955.00-975.00 $955.00-975.00 $955.00-975.00 $975.00-995.00 $958.00-978.00

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.

Visit aiccbox.org/invboxmaker or scan this code for details!

42# Kraft Liner 26#

Semi-Chem Medium

East West

$970.00

$960.00 $995.00

$1,015.00

T HE I NDEPENDENT P ACKAGING A SSOCIATION

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July 18, 2022

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2022 Innovator Of The Year Award Competition Is Open

Core Competency

AICC, The Independent Packaging Association, and Board Converting News are accepting submissions for the 2022 Innovator of the Year Competition. This year’s category is open to AICC General Members (box makers) to showcase innovations developed since September 2017. The Innovator of the Year Competition is a video based competition. Winners will be selected by member vote at the AICC/TAPPI 2022 Corrugated Week Conference in San Antonio, Texas, during the general session on Tues- day, September 20, 2022. The winners will be announced on Wednesday, September 21, 2022, during the general session. The Innovator of the Year Competition provides an outlet for AICC’s boxmaker members to showcase their innovations that increase plant productivity, improve plant efficiency, enhance the workforce’s skill, safety and/or well-being or serves as the solution to a specific produc- tion or management problem. Previous winners include: Bay Cities in 2017, President Container Group in 2013, and Jellco Container Inc. in 2009. Competition entry brochure and entry form is available at www.AICCbox.org/innovator . Questions can be direct- ed to Cindy Huber, AICC Director of Conventions & Meet- ings, at [email protected] or (703) 836-2422.

BloApCo Floor Shredders easily handle Cores and Sheet Waste

▲ All converting scrap handled by one BloApCo Shredder. ▲ Energy efficient. Low HP. Low RPM. Low noise. ▲ Industry leading 3-year warranty.

See the video at : BloApCo.com/horizontal-floor-shredder

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© Blower Application Company, Inc., Germantown, WI 2020

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July 18, 2022

Why is it unusual to see a “used”

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TAPPI/AICC Opens Registration For Corrugated Week 2022

• FISCOTEC Meeting • Multiple Exhibit Hall Receptions • TAPPI Young Professionals Reception • AICC Emerging Leaders Reception • Tuesday Evening Event at Tejas Rodeo • Corbotec Meeting • Networking Receptions

TAPPI/AICC have announced the opening of registration for Corrugated Week 2022, taking place at the Henry B. González Convention Center in San Antonio, Texas. The Conference kicks off Monday, September 19, and offers exclusive show dates on September 20-21. The Grand Hy- att Hotel serves as the official host hotel. Corrugated Week 2022 features over 14 exclusive net- working events, giving you more opportunities to connect and grow your business: • Corrugated Week Classic Golf Tournament • Opening Night Reception • Networking Breakfasts

Take your corrugated vision to the next level with these cutting-edge program topics where you can learn from some of the industry’s top thought leaders: • Interactive Digital Printing Panel • Supply Chain Disruptions • How Can We Do More with Less? • Artificial Intelligence/Robotics/Automation • Emerging Leaders/Young Professionals Employee Re- cruitment/Retention As an added bonus, attendees can also register for the pre-conference course, “Effective Methods to Maximize Diecutting,” on Sunday, September 18.

• TAPPI Awards • AICC Awards

Visit corrugatedweek.org for general registration as well as pre-conference course registration and travel information. For infor- mation on exhibiting, contact Linda Cohen at (914) 544-0135 or [email protected]. NAM: Consumer Spending Continues To Weaken Consumer spending has continued to weak- en in recent months, according to Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufacturers (NAM). Monthly personal consumer expen- diture growth slowed to 0.2 percent in May (from 0.6 percent in April), as households’ income could not keep pace with inflation, and supply chain disruptions still limited the range of available products. Durable goods spending was the most affected (-3.2 per- cent). In real terms, consumer expenditures declined 0.4 percent in May. Consumers are concerned increasingly about inflation, particularly rising gas and food prices. These concerns have pushed the Conference Board Consumer Confi- dence Index further down in June from 103.2 to 98.7. Consumer expectations for the next six months tumbled to their lowest level since March 2013. Despite a decrease in the number of job openings for the second month in a row to 11.3 million in May (11.7 million in April), the job market remains very strong with the number of job openings per unemployed worker still close to historical highs at 1.9. The largest CONTINUED ON PAGE 8

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July 18, 2022

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decreases occurred in professional and business ser- vices and in manufacturing while openings continued to increase in retail trade and leisure and hospitality. Hires and separations were largely unchanged. The strength of the labor market was confirmed by the June employment situation, which showed the U.S. econ- omy added 372,000 jobs in June, and unemployment re- mained stable at 3.6 percent. Shipments and new orders for manufactured durable goods remained strong in May (at +1.2 percent and +0.7 percent, respectively). Despite weaker consumer spend- ing, businesses continue to rebuild inventories. The June ISM Manufacturing PMI contracted to 53 per- cent from 56.1 percent in May, indicating that the expan- sion continues but at a slower pace. New orders dropped 5.9 percentage points to 49.2 percent, signaling that the inventory rebuilding may have run its course. The Semiconductor Industry Association released the latest World Semiconductor Trade Statistics monthly glob- al semiconductor sales numbers for May last Tuesday. While year-over-year monthly sales remained strong in May at 18 percent, they have decelerated throughout the year, indicating the semiconductor market is moving into a cyclical downturn. The question is to what degree will the macroeconomic headwinds described above weaken chip demand? NAM: Consumer Spending (CONT’D FROM PAGE 6)

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month March 2022

Year

Actual

Percent Change Avg Week Percent Change

2022 2021

37.675 37.992

-0.8

8.190 8.259

-0.8

Industry Total

Year-to Date

March 2022

Year

Actual

Percent Change Avg Week Percent Change

2022 2021

102.648 102.938

-0.3

8.019 8.170

-1.8

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2022 2021

3.1027 3.0967

0.2

8.4866 8.4625

0.3

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Mar. Feb.

2.2693 2.3081

-1.7

3.4 3.5

-2.9

Shipping Days

Year

Month

Year-to-Date

2022 2021

23 23

64 63

SOURCE: Fibre Box Association

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.

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July 18, 2022

ICG Names Clearwater Paper Its 2021 Supplier Of The Year

and excellent technical support. We are grateful for Clear- water Paper’s hard work to increase member sales.” Clearwater Paper is one of North America’s largest in- dependent producers of premium solid bleached sulfate (SBS) paperboard for quality-conscious printers and pack- aging converters.

The Independent Carton Group (ICG) has announced the presentation of its 2021 Supplier of the Year award to Clearwater Paper. The announcement was made at their quarterly meeting at Winston Packaging in Winston-Salem, North Carolina on March 17, 2022. The ICG and its members rate over 30 suppliers on a biannual basis on a series of criteria including: • Timeliness of delivery

• Quality of materials • Quality of service • Expertise of staff • Contractual compliance

• Administration / invoicing accuracy • Compliance with shipping instructions • Reporting and payments

Through the evaluation process ICG leadership works with national account managers from all their suppliers to improve the quality of service each supplier brings to ICG members. “The bottom line is to get best-in-class suppliers serving our members and that is what this awards program is helping to assure our members ofsaid Jay Willie, ICG Executive Director “Through this award, we want to rec- ognize Clearwater Paper for their exceptional paperboard product, superior service from both sales and production,

“We are immensely proud of our more than 20-year partnership with the ICG and its members,” said Clive Gil- landers, Director of Sales for Clearwater Paper’s Pulp and Paperboard Division. “Together, we have built a long-term relationship of trust and we look forward to continuing that relationship with the ICG for many years to come.” ICG Executive Director Jay Willie, right, presented the Supplier of the Year Award to Clive Gillanders of Clearwater Paper.

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July 18, 2022

PPC Celebrates Connection & Innovation At Inaugural PPC Week In Springfield, MA The paperboard Packaging Council (PPC) hosted a week filled with folding carton insights and education at its first PPC Week event at MGM Spring- field (MA) on June 6-10. PPC Week commenced with a record-breaking Folding Carton Boot Camp on June 6-7 and continued with Drupa in

Packaging ERP Algorithmic Scheduling Web-Based Access Online Customer Portals Paperless Workflows Mobile Sales Systems Digital Signage Production Monitoring Mobile Logistics Analytics & Reporting Cloud Hosting IT Management Services Cyber Security Management

Springfield from June 8-10. An unparalleled number of folding carton in- dustry newcomers attended PPC’s signature training program, with atten- dance to Bootcamp up by 120 percent from maximum attendees in previ- ous years. Approximately 70 professionals attended. Folding Carton Boot Camp, PPC’s signature “Carton 101 Training,” kicked off PPC Week by covering topics such as structural design and workflow, inks and coatings, laminating, digital diecutting, gluing and ad- hesives, rigid box, manufacturing and more. Instructors included key lead- Paperboard Packaging Council President Ben Markens, right, with happy grad- uates of the PPC’s Folding Carton Boot Camp.

600 + Plants 60,000 Users North America Latin America

ers within the folding carton industry who shared insights, developments, and technical information on each of their given topics. Hosted for the first time at MGM Springfield, attendees received hands-on learning opportu- nities on topics that span the full breadth of the folding carton industry. Boot Camp concluded with a graduation ceremony that celebrated grad- CONTINUED ON PAGE 14

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July 18, 2022

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PPC Celebrates (CONT’D FROM PAGE 12)

of Tamarack Products. Inc.; Stu Lurie of Wilmington Paper; Jeff Bates of Leary, W.H.; George Folickman of Tilia Labs, Inc.; Carl Hirsch of Ink Systems Inc.; Chris Merendino of IMPACT Converting & Systems Solutions; and Chris Leary of Gietz-Vinfoil Americas. In addition to the case study presentations from mem- bers, PPC also invited thought leaders such as John Fraro, Director of Deli, Bakery and Food Service at Big Y World

uates for their desire to learn, understand, and grow both professionally and personally. The week continued with Drupa in Springfield, a dy- namic forum that showcased PPC Associate Members who shared the latest tools and technologies in the indus- try through comprehensive case studies. In total, 14 asso-

ciate members presented on key company learnings and insights, including Bill Rice of Heidelberg; Birgit Backofen Rothacker of ACTEGA North America; Eric Frank of Koenig & Bauer; Mark Hopkins of Komori America; Rob Bradshaw of Baumer hhs Corp.; John Pettus of Wikoff Color Corpora- tion; Doug Herr of Bobst North America, Inc.; Gayle Harrop Class Market, Dr. Steve Sobel, a renowned author, moti- vational speaker and educator, and Kevin Karstedt, Chief Executive Officer of Karstedt Partners, LLC, to speak on how their perspectives, experiences, and strategies have helped move their respective industries forward. CONTINUED ON PAGE 16 PPC Week included Drupa in Springfield, a forum that showcased PPC Associate Members who shared their technologies.

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July 18, 2022

Humility Patience Perseverance Fortitude...

... Just a few words that describe the amazing man we all knew and loved, Mike Lee. As an individual, Mike was someone who treasured the life that he was given. He was giving of his time and never shied away from those in need. He was steadfast in his principles and an inspiration to all. As a professional, he was a leader in the corrugated industry who conducted himself with integrity and respect for others. Customers loved him. Not only was he a master of his craft, but he was also an incredible mentor. Those of us at Haire Group and the industry who have learned from Mike are not naive to what an extraordinary opportunity it was. The legacy that Mike demonstrated to all customers and their machines will live on in spirit with every client interaction. We were all blessed to have known Mike. May God bless his family and all the lives he touched here on this earth.

IN MEMORY, WE HONOR ONE OF OUR OWN

OCTOBER 21, 1957 – JUNE 6, 2022 MIKE LEE

His legacy will live on forever through his team, his family, his friends, and every life he touched.

PPC Celebrates (CONT’D FROM PAGE 14)

Fraro shared the grocery retailer perspective in his key- note, reaffirming that collaboration through key strategic partnerships will pave the future for continued success in the industry. “Beyond labor, our packaging supply line is one of our largest spends, and it needs to keep evolving so we can expand offers,” Fraro said. He also posed the question to attendees: “What are your companies doing to not be transactional, but thoughtful, specific, and stra- tegic about your futures?” Fraro shared that Big Y is doing this by streamlining their offerings, stating, “Aggregation is going to be a huge path forward for both packaging and products.” Fraro also touched on the ideal qualities retailers are looking for in their packaging partners.“Social responsibili- ty, sustainability, and government advocacy are imperative for us to want to partner with you. Change is coming in the

packaging world, and we need to be strategically aligned in order to embrace it.” John Fraro, Director of Deli, Bakery and Food Service at Big Y World Class Market, shared the grocery retailer perspective.

Lastly, Fraro stated how important it is for packaging suppliers to present innovative products to retailers. “Unfortunately, the pan- demic stunted innovation – limiting our abil- ity to create meaningful partnerships within the industry. However, recently meeting with packaging manufacturers has been great for opening our communication channels to see what others are doing outside of our market.”

DESIGNS THAT INCREASE PRODUCTION

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ASDI offers: • 34 years of experience with separators, cyclones and conveyors • Sequential, Zero-Defect and various types of Scrap Systems • Each system is guaranteed to meet customer specifications • Turnkey Systems-handling all grades of paper and paperboard • In ground and overhead return conveyor systems direct to balers • Replace your undersized or aging cyclone over a two or three-day weekend • Representing a complete line of shredders, wet scrubbers and filters • NFPA compliant systems, ISN Network

PPC’s President, Ben Markens was thrilled with the outcome of the week-long celebra- tion of packaging innovation and growth say- ing, “Drupa in Springfield provided a unique opportunity for Associate Members to partner with carton converter members who use their products firsthand, all while showcasing the latest and greatest cutting-edge technology within the paperboard packaging industry. We’re looking forward to continuing to deep- en relationships, inspire connections, and pro- vide value for members at our Fall Meeting & Leadership Conference in Austin.” Registration is now open for PPC’s Fall Meeting & Leadership Conference at the Hy- att Regency in Austin, Texas, from October 26- 28, 2022. Visit paperbox.com for more.

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July 18, 2022

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Brian Hunt Named President Of Southern Champion Tray

The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets

Chattanooga, Tennessee based Southern Champion Tray LP (SCT) has announced the appointment of Brian Hunt

as President, effective July 1, 2022. Hunt follows John Zeiser, who has served as President since 1993 and recently celebrated 40 years with SCT, which has operations in Chat- tanooga; Mansfield, Texas; and Fair- field, Ohio. Zeiser will become Chair- man of the Board, and his brother,

Brian Hunt

Bruce Zeiser, will serve as Vice Chairman. “While our family will remain active and fully commit- ted to SCT, we are confident in Brian’s abilities to lead the company into its next chapter of growth,” said John Zeiser. “Brian is a proven leader who values people and has more than 30 years’ experience in the paperboard industry. His strong technical skills and industry expertise will be critical to guide our growth.” Hunt is the first non-family President of SCT and will be responsible for the overall strategic direction of the Com- pany, leading over 850 associates in continuing the com- pany’s 95 year track record of growth. He currently serves as Chairman of the Board of Directors of the Paperboard Packaging Council.

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Randy Banks Launches Job Board Specifically For Corrugated Industry Randy Banks of Sharp International has announced the creation of a job board specifically for the corrugated in- dustry at www.corrugated-jobboard.com . For the employer, the website is very intuitive, allows for a variety of reports, and features an interactive world map. A searchable >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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