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Board Converting News, July 20, 2020

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BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years July 20, 2020 VOL. 36, NO. 29

Balancing Clean Air & Reopening Amid New COVID-19 Guidelines BY MONA KELLEY In the aftermath of sweeping stay-at-home orders and a three-month shutdown of many businesses, life in a post-COVID world is going through a “new normal” – a different way of doing things than were done in the past. With a wide range of challenges facing commercial building owners as a result of the coronavirus, the heating, ventilation, and air conditioning (HVAC) and related industries are no exception.

Hood Container To Invest $50M For Expansion In LA Atlanta, Georgia based Hood Container an- nounced it is expanding and upgrading its pa- per mill in West Feliciana Parish, near St. Fran- cisville, Louisiana. The company and the state announced the $50 million project last week. It is expected to support 75 construction jobs. Hood Container acquired the 61-year-old former Crown Zellerbach and Tembec mill in 2015, after it emerged from federal bankrupt- cy protection filed by an interim owner. Since the acquisition, Hood has committed more than $100 million in capital investments to up- grade the facilities. The project will increase the efficiency of the facility’s pulp-refining operation through the installation of two digester blow-line refin- ers. The expansion also will include installa- tion of a secondary headbox and additional dryer cans, which will allow increased paper production with better paper quality. The state offered the company a $200,000 Modernization Tax Credit to be allocated over a five-year period. Hood Container also is ex- pected to utilize the state’s Industrial Tax Ex- emption Program. Hood plans to retain 306 existing employees and a $23 million annual payroll at the mill.

COVID-19 has shined a spotlight on indoor air quality and ventila- tion. It seems clear that business owners, employees, and customers with chronic respiratory illnesses like asthma, COPD, and emphysema all benefit from improved indoor air quality and whole building ventila- tion. This is true even outside of the flu and respiratory illness season. Short and long-term exposure to any poor air quality can not only cause exacerbations of chronic respiratory illness and reduce lung function, these same factors have been associated with increased se- verity of COVID-19 pneumonia and increased risk of contracting air- borne illnesses in people both with and people WITHOUT chronic re- spiratory illnesses. As a result of these factors relating to COVID concerns, experts from the commercial building industry, US EPA Energy Star program, and American Society of Heating, Refrigeration, Air-conditioning Engineers (ASHRAE) met in May to discuss how to best operate HVAC and related systems, and to offer recommendations on Building HVAC Operations amid COVID-19. Takeaways and Q & A included:

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x 4 AICC Crafts Business Interruption Template 6 NAM: Job Openings Improve But Well Below 2019 Levels 0 John S. Carman, Formerly Of Stand Fast, Dies At 90 12 McLean Packaging Commits To Full Renewable Energy

CONTINUED ON PAGE 24

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

for working so hard thru all the distractions of COVID-19 to keep the supply chain moving for the food and medical industries. Packaging Producers

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215.369.7800 • [email protected] • advantzware.com

July 20, 2020

www.boardconvertingnews.com

AICC Crafts Business Interruption Template

Core Competency

AICC, The Independent Packaging Association, has craft- ed a template that can serve as an agreement between an AICC member and another in the event that the mem- ber company cannot complete work due to pandemic, natural disaster, or other unforeseen circumstances. This template, crafted by AICC legal counsel Da- vid Goch, of the firm Webster, Chamberlain & Bean, is meant to serve as a guide for an AICC member compa- ny to complete customer commitments with the support of another converter in the event of a business interrup- tion, while also respecting all applicable fair trade and anti-trust laws. AICC recommends that this document be reviewed and modified to suit by the member’s attorney. This downloadable template is available under “white- papers” at www.AICCbox.org/Store free of charge to AICC members and for $250.00 to non-members. David Goch will speak about the need for a business interruption agreement and best practices for utilizing such a document during the next AICC packaging indus- try COVID-19 videoconference on Friday, July 24, at 2:00 pm EST. More information about the videoconference is available at www.AICCbox.org/Calendar . A recording of the videoconference will be available the following Monday, July 27.

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July 20, 2020

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NAM: Job Openings Improve But Well Below 2019 Levels BY CHAD MOUTRAY

The COVID-19 outbreak has altered the manufacturing labor market dramatically. Manufacturers hired 426,000 workers in May, the most since April 2001. At the same time, total separations have declined from an all-time high of 804,000 in March, to 762,000 in April, to 284,000 in May, the lowest since November 2016. Net hiring was 142,000 in May, rebounding after net declines of 505,000 and 436,000 in March and April, respectively. There were 1,314,000 initial unemployment claims for the week ending July 4, continuing to decelerate after peaking at 6,867,000 for the week ending March 28 but remaining highly elevated. Meanwhile, 18,062,000 Ameri- cans received unemployment insurance for the week end- ing June 27, or 12.4 percent of the workforce. U.S. consumer credit outstanding fell 5.3 percent in May, with Americans pulling back sharply on spending during the COVID-19 pandemic for the third straight month. In May, revolving credit (which includes credit cards and

There were 328,000 manufacturing job openings in May, up from 315,000 in April and improving for the sec- ond straight month after dropping to 310,000 postings in

March, which was the slowest pace since October 2016, according to Chad Moutray, Chief Economist at the National Association of Manufactur- ers (NAM). For comparison purpos- es, there were 482,000 postings one year ago. In the larger economy, non-

farm business job openings rose from 4,996,000 in April, the slowest pace since December 2014, to 5,397,000 in May, increasing after two months of declines. Chad Moutray

other credit lines) plummeted 28.6 percent, reflecting the anxiousness of the consumer and the extent to which purchases—at least those done on credit—have fallen sharply. Over the past 12 months, consumer credit outstanding has risen just 0.9 per- cent. Nonrevolving credit (which includes auto and student loans) increased 3.8 per- cent year-over-year, but revolving credit dropped 7.2 percent year-over-year. Producer prices for final demand goods and services declined for the fourth time in the past five months, down 0.2 percent in June. At the same time, producer prices for final demand goods increased 0.2 percent in June, extending the 1.6 percent growth in May. Core inflation for raw material goods, which excludes food and energy, edged up 0.1 percent in June. There continue to be deflationary pres- sures in the economy, even with some sta- bilization, due to COVID-19 and the global recession. Over the past 12 months, pro- ducer prices for final demand goods and services have decreased 0.8 percent, the same pace as in May and remaining the lowest since December 2015. At the same time, core producer prices were flat year- over-year in June (seasonally adjusted), up from being down 0.4 percent in May. Real value-added output in the manu- facturing sector declined an annualized 4.9 percent in the first quarter, pulling back for the second straight quarter from the all-time high in the third quarter of 2019. Manufac- turing continued to account for 11 percent of real GDP in the first quarter. Chad Moutray Ph.D. is Chief Economist at NAM.

www.boardconvertingnews.com

July 20, 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.

CORR24usa.com

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

Benefits

Fastmarkets RISI Names Pratt North American CEO Of The Year Fastmarkets RISI has announced that Anthony Pratt, Ex- ecutive Chairman of Pratt Industries USA and Visy of Aus-

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

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

31.283 34.474

-9.3

7.821 7.835

-0.2

Industry Total

tralia, has been named the 2020 North American CEO of the Year. Pratt will accept the award and give a keynote address during the Virtu- al North American Conference on October 6, 2020, on iVent. Pratt’s U.S. company, Pratt Indus- tries, was the fifth largest U.S. box-

Year-to Date

May 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

162.228 162.018

0.1

7.725 7.642

1.1

Industry Total

Containerboard Consumption (Thousands of Tons)

Anthony Pratt

Year

Month

Percent Change Year-to-Date Percent Change

maker in 2019 with a seven percent market share and an estimated 27.5 billion square-feet of shipments. The boxes are made mostly out of low-cost mixed paper. Pratt’s five containerboard mills with 1.91 million tons TPY of 100 per- cent recycled-content containerboard capacity are nearly fully integrated to 70 Pratt corrugated plants, including 30 sheet plants. Pratt U.S. last year generated more than $3 billion in sales and $550 million in EBITDA. The Fastmarkets RISI North American Conference will be conducted virtually on October 5-7 on iVent, a digi- tal event platform enabled to provide delegates with live and on-demand presentations and panel discussions, as well as open and round-table networking features. Along with Pratt, other executives will speak.

2020 2019

2.4591 2.8461

-13.6

13.3153 13.3401

-0.2

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

May Apr.

2.3246 2.2914

1.4

3.8 3.6

5.6

Shipping Days

Year

Month

Year-to-Date

2020 2019

20 22

105 106

SOURCE: Fibre Box Association

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July 20, 2020

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John S. Carman, Formerly Of Stand Fast, Dies At 90

He was a founding member of AICC in 1974 and was active on AICC’s Board of Directors in the 1980s, first as Regional Vice President of AICC’s Region Six (Illinois and Wisconsin) and then as a Director at Large. He served on the Membership and Containerboard and Sheet Supply committees. He was also a founder and member of what was known as the Sheet Plant Owners and Operators Club, aka, the “SPOOC Group,” an informal club of AICC members whose primary purpose was an annual ski out- ing in Vail, Colorado. In addition to Carman, the club’s members included Bill Mazzaco of Packaging Innovators; Jerry Hardison, Lone Star Container Corp.; Douglas Volk, Volk Packaging and Jim Nelson of Nelson Container Corp. Recognizing the success of Stand Fast Packaging Products, the University of Illinois Institute for Entrepre- neurship Studies in 1985 named John to the Chicago Area Entrepreneurship Hall of Fame. He is survived by his wife of 64 years, Patricia; five sons, John Jr., Jay, Keith, Scott and Jeffrey; a daughter Kristin; 10 grandchildren and four great-grandchildren. Expressions of sympathy may be sent to the family c/o, Stand Fast Group, 710 Kimberly Drive, Carol Stream, Illi- nois, 60188. Memorial remembrances may be made to Chicago Alzheimer’s Association via https://www.alz.org/illinois or to Mercy Home in Chicago via https://www.mercy- home.org/ .

John S. Carman, former owner and president, Stand Fast Packaging Products (now Stand Fast Group) in Carol Stream, Illinois, passed away on Thursday, July 2, at 90. Born on April 18, 1930, in Chicago, Carman graduated from St. Gregory’s High School and Loyola University. He

was a U.S. Army veter- an and served in the Korean War from 1953- 1955. After his military service he began his career in the corrugat- ed packaging business working with Geor- gia Pacific. In 1967, he joined his colleague John Morris and found- ed Stand Fast Packag- ing Products in Addi- son, Illinois, beginning only with a bandsaw set up in his basement.

John S. Carman

Today, Stand Fast Group is a $50 million company employ- ing 120 people. It is led by his sons Jay Carman, along with sons John Carman Jr., Keith Carman and Scott Carman.

www.boardconvertingnews.com

July 20, 2020

McLean Packaging Commits To Completely Renewable Energy

Moorestown, New Jersey based McLean Packaging, a turnkey provider of rigid set boxes, folding cartons, corrugated displays and thermoformed packaging solutions with emphasis on the beauty and personal care sec- tors, has contracted with national energy advisory firm 5 and ENGIE Re- sources, LLC on a five-year energy agreement that supports the develop- ment of renewables. The deal supports McLean’s zero carbon transition and sustainability goals which include sourcing 100 percent of its electric- ity from renewable resources.

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McLean Packaging’s manufacturing footprint is robust – the compa- ny has three production facilities across New Jersey and Pennsylvania totaling nearly half a million square-feet – making its commitment to 100 percent green energy substantial. McLean utilizes a lengthy lineup of so- phisticated equipment – including industrial printing presses, folder/glu- ers, thermoformers, rigid box converters, and more – to meet its growing demands for concept-to-completion packaging solutions for customers in the beauty, personal care, confectionary, and other sectors. McLean’s usage will be 100 percent matched by Green-e certified Re- newable Energy Credits (RECs), as determined by the Center for Resource Solutions. The independently-verified credits play a critical role in making green power possible for electricity consumers nationwide, by providing revenue to support new projects. The RECs in this agreement include off- shore wind credits, representing environmental benefits equal to remov- ing more than 6,500 gasoline-powered passenger cars from U.S. roads. “From installing more than 75,000 solar panels to utilizing paper prod- ucts certified by the Forest Stewardship Council and Sustainable Forest Initiative, sustainability has been at the forefront of McLean Packaging’s operations for years,” said Jeff Besnick, Vice President of McLean Packag- ing. “As consumers continue to demand products that espouse eco-friend- liness, we are proud to play our part in providing packaging with as small a carbon footprint as possible – from power sourcing to materials.” CONTINUED ON PAGE 14 McLean Packaging entered a five-year agreement that supports its car- bon transition and sustainability goals, which include sourcing 100 per- cent of its electricity from renewable sources.

www.boardconvertingnews.com

July 20, 2020

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