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Board Converting News, June 14, 2021

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RECOMMEND FLIP-BOOKS

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years June 14, 2021 VOL. 37, NO. 24

Liberty Packaging’s Values: Customer, Culture & People BY JACKIE SCHULTZ Strategic acquisitions and investments have redrawn the landscape for Liberty Packaging’s market presence across major regions of the U.S., expanding the business’s scale and geographic reach, particularly in the Midwest and Southwest. Based in Minneapolis, Minnesota, the fam- ily-owned company has changed considerably since its founding 103 years ago as a supplier of refurbished wooden boxes.

Deadline For SCE Boxmaking Olympics Extended 1 Week Be a part of history this year with the 2021 Box Manufacturing Olympics at SuperCorrExpo 2021. Historically in even years, TAPPI’s Cor- rugated Packaging Division has sponsored the elite biennial competition for box makers known as the CorrPak Competition. In odd years, the mainstay event for AICC has always been the Packaging Design Competition. In 2021, TAPPI and AICC will unite their packaging competitions at the first-ever Box Manufacturing Olympics to be held at TAPPI/ AICC’s SuperCorrExpo 2021, August 8-12 in Orlando, Florida. The deadline to enter has been extended to Friday, June 18, 2021. Take advantage of this extra time to get your entry in to compete. Entry is open to corrugated, folding carton and rigid box manufacturers worldwide who have produced commercial corrugated pack- aging products between October 21, 2016, and June 11, 2021. All entries will be on display throughout the 2021 SuperCorrExpo event at the Orange County Convention Center. For years, the CorrPak and Packaging De- sign Competitions have showcased creative talent across the industry and around the

Four generations of the Fiterman family have facilitated continued growth and expansion while preserving their independent family cul- ture that is held up as the business model for success. Today, Liberty Diversified International (LDI) is one of the largest privately held com- panies in the Midwest. “We work every day to have the mindset of a smaller, independent packaging business while being able to invest in the talent, equipment and resources necessary to provide the complex solutions global man- ufacturers need. We believe there are very few companies that can do both of these well,” says Matt Homan, LDI President and CEO. Paper and packaging is the largest segment of the LDI portfolio, which also includes office and building products. The segment is divid- ed into North and South business units. Combined, there are five sheet plants, four corrugator plants, a sheet feeder, distribution facilities and a 100 percent recycled linerboard mill across seven states and Mexico. CONTINUED ON PAGE 24 The LDI and Omaha Box team, from left, Terry Johnson, Matt Homan, Mad- die Moore, Greg Theis, Mike Vanyo, Tabitha Antoniak, Rebecca Steffes and Ron Kenkel.

CONTINUED ON PAGE 4

WHAT’S INSIDE 10 NAM: Hourly Earnings Jumped 4.5% Since Pandemic Began 12 AICC Releases 2021 Sales Compensation Report 34 NDP: It’s The Best Time In 20 Years To Sell Your Business 46 DS Smith Commits To Net Zero Emissions By 2050

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.

www. thacker i ndus t r i a l . com (682) 552 5852 For more Information:

June 14, 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

Calling Profero Systems just another equipment supplier is like calling the Tour just a bike ride. Profero Systems

Proven unsurpassed customer service over the long run, commitment to our customers is second to none!

Add value to your Corrugating Process, be the go-to Company for your customers.

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June 14, 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 indicated 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

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

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

Deadline For SCE (CONT’D FROM PAGE 1 )

world, from simple sophistication to creatively comprehen- sive. The Box Manufacturing Olympics is set to bring more excitement and prestige to the industry’s most talented teams of independent and integrated creative thinkers. Best of Industry awards will be presented to the winner in each category. Attendees will also have the opportunity to vote the “Attendees’ Choice” Winner. Winners need not be present to enter or win. Get start- ed now to enter this premier competition. Visit supercorr- expo.org/bmo to get the latest details on how you can win at the first-ever Box Manufacturing Olympics. SuperCorrExpo is one of the most influential corrugat- ed packaging-focused trade shows in the Western Hemi- sphere and is happening live and in-person from August 8-12, 2021, at the Orange County Convention Center (OCCC) in Orlando, Florida. For the first time since 2016, the corrugated industry will have a major trade show at which to safely gather and conduct business. This is a box maker’s best opportunity to discover and witness live machinery solutions on the expo floor, all designed to solve production challenges. Suppliers will have the opportunity to create new business opportunities and grow their networks with exclusive re- lationship-building events. Booth exhibition and sponsor- ship opportunities are still available. Visit www.supercorrexpo.org for more information.

www.boardconvertingnews.com

June 14, 2021

New-Indy Taking Steps To Reduce Odors From Catawba Plant In SC According to local media reports, the Environmental Pro- tection Agency (EPA) has released New-Indy Contain- erboard’s final remediation plan to eliminate a foul odor coming from its Catawba, South Carolina, plant, which has led to thousands of complaints and concerns about future health impacts. Both the EPA and South Carolina’s Department of Health and Environmental Control (DHEC) determined the odor is the result of the facility releasing high levels of hydrogen sulfide. Homeowners have said the odor has caused nausea, headaches and nosebleeds. New-Indy is facing a June 15 deadline to submit cor- rective action plans to DHEC, which details how it’s going to reduce hydrogen sulfide levels. One of the corrective plans must focus on New-Indy’s wastewater treatment plant, which is one of the areas being investigated as a source of the odor. In the meantime, the company contin- ues to remove solid crust from the surface of its outdoor lagoons. It will also begin testing its stacks and vents to see if emissions have increased. New-Indy can’t start any tests without DHEC scientists present. New-Indy also has a deadline on June 27 from the EPA. The company must consult with a toxicologist and come up with a plan to ensure the odor problem will never hap- pen again.

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month March 2021

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

37.992 34.784

9.2

8.259 7.906

4.5

Industry Total

Year-to Date

March 2021

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

102.939 99.108

3.9

8.170 7.743

3.0

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2021 2020

3.0967 2.8627

8.2

8.4625 8.1907

3.3

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Mar. Feb.

1.9332 1.9337

0.0

2.9 3.0

3.4

Shipping Days

Year

Month

Year-to-Date

2021 2020

23 22

63 64

SOURCE: Fibre Box Association

www.boardconvertingnews.com

June 14, 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

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 w orking 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

PPC To Host Virtual Design And Innovation Program

The Paperboard Packaging Council (PPC) has invited the corrugated and folding carton industries to join a virtual program on June 16, from 1:00-2:00 p.m. EDT, when guest speaker, Matt McLelland, VP of Sustainability and Innova- tion at Covenant Logistics, will talk about the importance of looking at problems from a different perspective. Innovation might be one of the most overused business buzzwords, but when put into practice, it can foster signif- icant positive change. In this engaging session, McLelland will establish a common definition for the word innovation, talk about how it exploded during the COVID-19 crisis and argue that it doesn’t always have to be difficult. McLelland’s high-energy, inspirational presentation will be followed by a compelling roundtable and Q&A session. Senior designers from Graphic Packaging International, Southern Champion Tray, and WestRock will join the virtu- al stage for conversation. The event will close with rapid breakout-room conversations. Attendees should be graphic and structural designers at any career stage, those involved in process efficien- cies and continuous improvement, university students in design, packaging, and innovation, and those who want to learn more about design and innovation in paperboard packaging. Visit paperbox.org to register.

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

June 14, 2021

WE MAKE PEAK EFFICIENCY AND PRODUCTIVITY EASY AND AFFORDABLE

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Whether you need to design and build a new corrugator steam system or a perfectly matched retrofit, turn to Boiler & Steam Performance for the most efficient process and reliable solution. We also offer specialized expertise to solve complex challenges and practical support to help you maintain peak performance. BACKED BY A 30 YEAR HERITAGE OF QUALITY AND PERFORMANCE.

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NAM: Hourly Earnings Jumped 4.5 Percent Since Pandemic Began BY CHAD MOUTRAY. PH.D. Manufacturing employment rebounded somewhat, rising by 23,000 in May after falling by a downwardly revised 32,000 in April, according to Chad Moutry, Chief Econo- mist at the National Association of Manufacturers (NAM). There remained 509,000 fewer manufacturing employees relative to pre-pandemic levels, with 12,290,000 employ- ees in May. Despite job growth for the month, businesses continue to cite difficulties in finding enough talent. There is optimism for continued growth moving forward, with job openings continue to soar (see graph at right). The average hourly earnings of production and non- supervisory workers in manufacturing rose to $23.52 in May, with a 3.3 percent increase year-over-year but jump-

ing 4.5 percent since February 2020. Nonfarm payroll employment rose by 559,000 workers

in May, essentially doubling the increase of 278,000 in April, but the consensus was for a gain of roughly 700,000. The U.S. econ- omy continues to have 7,629,000 fewer workers today than in February 2020. The unemployment rate declined from 6.1% in April to 5.8% in May, a 14-month low. Initial unemployment claims fell to a post-pandemic low of 385,000 for the week ending May 29 but continuing claims increased. There were 15,435,982 Ameri- cans receiving some form of unemployment insurance benefit for the week ending May 15, 2021. The ISM Manufacturing Purchasing Man- agers’ Index edged up from 60.7 in April to 61.2 in May, buoyed by stronger demand. With ongoing supply chain disruptions and workforce challenges, supplier deliveries were the slowest since April 1974, with indi- ces for the backlog of orders and customer inventories notching unfortunate new re- cords. In addition, prices rose at the fastest rate since July 2008. New orders for manufactured goods fell 0.6 percent in April, and factory orders rose 0.5 percent. Overall, the manufacturing sec- tor continues to expand, increasing 4.8 per- cent since February 2020, or 7.8 percent. New orders for core capital goods—a proxy for capital spending in the U.S. econ- omy—increased 2.2 percent in April to a new record high, with a robust 15.5 percent growth rate over the past 14 months. Private manufacturing construction spending rose 0.4 percent in April, increas- ing to the best reading since July 2020 and providing some optimism in the construc- tion outlook.

BALEMASTER: 75 YEARS STRONG — 1946 - 2021 —

Wired. Proven auto-tie technology outputs tighter bales, faster . Our approach to auto-tie technology is a combination of an electro/mechanical process, operator-tested automation, and built-to-last construction and design principles. So, until wireless baling is invented, there’s nothing easier, more reliable or faster than a Balemaster auto-tie baler.

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June 14, 2021

AICC Releases 2021 Sales Compensation Report

2013 (1.5 percent), or between 2013 and 2011 (7.5 percent). Total compensation, which adds actual commission/bonus paid in 2020 with the January 1, 2021, base salary, aver- aged $141,310, which is almost identical to the average re- ported in 2019 ($141,517). The mean base salesperson salary at responding U.S. corrugator plants as of January 1, 2021, was $87,101, which is a 31.7 percent increase over the average reported in 2019 ($66,140). However, the average reported in 2019 was 17.7 percent lower than the average reported in 2017 ($80,339). Total compensation, averaged $213,475, which is an increase of 2.6 percent over the average reported in 2019 ($208,053). Both figures are much higher than re- ported in previous years. The Report offers detailed information on sales objec- tives, base salaries, bonus basis, CRM usage, social media activity, and more both as a national and regional view to allow independent sheet plants and corrugator plants to benchmark their companies. The report also reveals the responses to Covid-19 related questions about vaccination requirements, travel restrictions and more. While these re- sponses represent a snapshot in time, they still provide valuable insight into the sentiments of the industry. All participants in the survey received a complimentary copy of the report, which is available for electronic down- load for $225 for AICC Members and $415 for non-mem- bers. To order the report visit www.AICCbox.org/store or contact Patrick Moore at [email protected].

AICC, The Independent Packaging Association, has re- leased its 12th Independent Sales Compensation Report. Based on a survey conducted over the last few months, it is the most comprehensive survey of key sales compen- sation salaries and benefits being paid by independent corrugator plants and sheets plants in the United States. This report received >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

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