Board Converting News, June 22, 2020

Board Converting News, June 22, 2020

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years June 22, 2020 VOL. 36, NO. 25

Covington Box Reaps Benefits Of Solar Power, Green Initiatives BY LEN PRAZYCH The story of how Waterloo, Indiana based Covington Box & Packaging, Inc. was founded is similar to that of several other successful indepen- dent sheet plants: a visionary entrepreneur working for an integrated box maker seeks to fill customers’ needs that aren’t being entirely met by his employer; he quits said employer to strike out on his own with a

FBA: Shipments Drop Again In May

Industry shipments of corrugated products decreased 9.3 percent, from 34.47 bsf in May of 2019 to 31.28 bsf in May of 2020, the Fibre Box Association (FBA) reported. The decline is partially due to the fact there were two less shipping days in May 2020. Average week shipments decreased 0.2 percent, from 7.835 bsf in 2019 to 7.821 bsf in 2020. Shipments of corrugated products are up 1.1 percent year- to-date. Containerboard consumption decreased 13.6 percent, from 2.846 million tons in May of 2019, to 2.459 million tons in May of 2020. Consumption is down 0.2 percent year-to- date over 2019. Containerboard inventory at corrugator plants increased 1.4 percent, from 2.2914 million tons in April to 2.3246 million tons in May 2020. Weeks of supply grew from 3.6 in April to 3.8 in May, or 5.6 percent. “After a strong first quarter start, the pan- demic’s impact on box shipments has been to reduce them to no increase, a 0.1 percent gain through the first five months of the year,” not- ed Dick Storat in his Scoring Boxes newsletter. “Economic activity awakened last month, as evidenced by a strong rebound in retail sales,

few pieces of equipment and a handful of employees in a small ware- house and begins satisfying customers in ways his former employer didn’t; and he repeats the process again and again while growing his wildly successful independent sheet plant…for nearly four decades. In this story the visionary is Dean Kelly, who founded Covington Box in 1981, when he was also half-owner of Lime-O-Sol Chemical Co., a manufacturer of toilet bowl cleaners and drain cleaners. Dean’s son, Glen, is a part owner and “silent partner” of Covington Box but his fo- cus is on owning and running the Glendarin Hills Golf Club in Angola, Indiana, the course he and his father built 16 years ago. Dean Kelly has since stepped back from day-to-day operations in the sheet plant, hav- ing appointed 30-year employee and part-owner, Tony Fifer, as presi- dent of the company. The fourth and final partner of Covington Box & Packaging is long-time employee, Mike Rogers, Covington’s General Manager. The people involved in making Covington Box’s solar initiative a reality are, from left, Tim Newby of Famers State Bank; Pam Howard, Waterloo Town Manager; Jim Straeter and Eric Straeter of AG Technologies; Michael Dora Indiana State Director of USDA; Mike Rogers Covington Box GM; and Tony Fifer, Covington Box President.

CONTINUED ON PAGE 4

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x Colbert Packaging Does ‘The Next Right Thing’ 12 Domino Launches X630i Digital Ink Jet Corrugated Press 6 PMMI Prevails In Lawsuit Over Fraudulent Use Of Logo 0 Baldwin Technology Acquires Western Quartz Products

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

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

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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3

June 22, 2020

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FBA Shipments Drop (CONT’D FROM PAGE 1 )

Core Competency

which advanced by 17.7 percent in May after falling by 14.7 percent in April. Average week box shipments also recov- ered from April’s level, with a 2.8 percent monthly gain.” Storat also noted that the production of containerboard for export was “remarkably strong considering the great- ly diminished global economic activity.” Nearly half a mil- lion tons of containerboard, mostly unbleached kraft lin- erboard, was made for foreign markets, a “surprising 17.5 percent advance from April’s setaside.”

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AF&PA Releases May 2020 Boxboard Monthly Report

AF&PA has released its May 2020 Boxboard Monthly report. Total Boxboard production in May increased two percent compared to May 2019. It was down one percent when compared to the same five months of 2019. The box- board operating rate was 96.6 percent, up 5.3 points from May 2019 and up 0.9 points year-to-date. Solid Bleached Boxboard production in May increased two percent compared to May 2019. It was down three percent when compared to the same five months of 2019. Recycled Boxboard production in May increased four per- cent compared to May 2019. It was essentially flat when compared to the same five months of 2019.

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June 22, 2020

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Colbert Packaging Does ‘The Next Right Thing’

up-to-date business continuity plan (BCP), as well as five key factors: 1. A willing and able workforce, 2. The right printing and finishing equipment, 3. Technology for qual- ity assurance, 4. Inventory availability and trusted supply chain, and 5. Supportive customer base. A Willing And Able Workforce Colbert is a 60-year-old family-owned business with more than 300 employees. As a secondary packaging producer for pharmaceutical and food-safe products, it was deemed an essential business during this pandemic. Upon BCP activation, Colbert’s IT team facilitated and se- cured home-based operations for its office staff, while pro- duction scheduling enacted drastic course corrections in each of its three facilities. Employees adapted and worked diligently to balance capacity with customer demand. The Right Equipment In keeping with its model of Safe, Smart, and Sustain- able paperboard packaging solutions for pharmaceutical,

When the leadership team from Lake Forest, Illinois based Colbert Packaging Corporation, a provider of paperboard packaging solutions, met to formalize its 2020 operating plan, little did they know how drastically the plan would change in a matter of weeks. Thanks to an experienced, dedicated workforce, the operations team mobilized for rapid response to demand for COVID-19 test kits and other pandemic-related products in need of packaging. “No one anticipated the magnitude of this pandemic but we knew the right thing to do was take action and do our part to keep employees safe and adhere to strict CDC safety guidelines,” says Colbert President & COO John Lackner, who attributes Colbert’s ability to supply the ur- gently needed pharmaceutical packaging orders to an

healthcare and consumer brands markets, Colbert Packaging was ready to respond. Recent investments in printing and finishing equipment provided the means to serve its customer base and meet the escalated de- mands of COVID-19 pharmaceutical pack- aging. Quality Assurance Even the most urgent demand for phar- maceutical packaging must comply with FDA requirements. No exceptions. Colbert Packaging supports its customers’ FDA re- quirements by maintaining cGMP standards for FDA-compliant quality management sys- tems and operating procedures. Colbert’s GMI certification, combined with its 100 percent vision inspection tech- nologies, ensure quality and accuracy in secondary packaging, saving time and ma- terials while working to exceed customer expectations. Trusted Supply Chain A trusted supply chain is critical during these challenging times. Careful inventory planning and warehousing and a reliable and flexible sourcing network position Col- bert to maintain its production flow, from The customer remains central to Col- bert’s focus. Unprecedented times call for open communications and voluntary agree- ment to work together for the common good of our communities. “Our customers have demonstrated the support and team- work needed to see us through this extraor- dinary time,” says Lackner. “We’re grateful to be in a position to do the next right thing.” Visit www.colbertpkg.com . raw materials to final delivery. Supportive Customer Base

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June 22, 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

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

W.H. Leary, Nosco Fastrack Delivery Of 250K Cartons

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

Tinley Park, Illinois based W.H. Leary Company, a supplier of cold glue application and quality assurance solutions, along with Nosco, a Gurnee, Illinois based digital supplier of pharmaceutical packaging, were recently faced with an opportunity to quickly deliver a COVID-19 carton. Nosco had been assigned the task of running 250,000 of these cartons with a short deadline. The pharmaceutical carton required 14 separate glue patterns as well as quality assurance monitoring. One solution would be to use the plant’s existing Leary Array controller equipped with eight gluing and detection pat- terns, but Nosco would need to run each carton through the gluer twice, which would have been time prohibitive. Nosco contacted Leary to figure out how to best make this application work, noting that production would need to run in three business days to meet the deadline. Leary provided an Array LS-924 controller, which has the capa- bility of 24 glue patterns with detection, as was needed. Leary would build, test and ship this controller along with additional gluing and detection stations in just two days. The necessary material was delivered for quick in- stallation by a Leary technician and Nosco was able to suc- cessfully deliver the required number of COVID-19 cartons to their customers.

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

31.283 34.474

-9.3

7.821 7.835

-0.2

Industry Total

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)

Year

Month

Percent Change Year-to-Date Percent Change

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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June 22, 2020

SETTING STANDARDS in Corrugated Solutions

YOUR PARTNER OF CHOICE

INSPIRE AUTOMATION IS A TURNKEY SOLUTION PROVIDER FOR YOUR MATERIAL HANDLING AND CONVERTING NEEDS. We are proud to offer the products, services and partnerships needed to grow our customers’ business. Inspire Automation specializes in providing the highest quality material handling, litho labeling, load handling, converting and aftermarket products to corrugated converters.

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Amtech Sees Increase In EnCore Upgrades

Fort Washington, Pennsylvania based Amtech Software has reported that it is currently managing over 30 En- Core upgrade projects and that it is well into its second release of its software. “Even though COVID-19 has put a bump in the road for a lot of businesses, our customers are embracing this opportunity to become better and stronger and are up- grading their plants to EnCore,” says Michael DeNicola, Director of Client Engagement at Amtech Software. “Five years ago we saw a change in our market and we start- ed to think differently. We envisioned a system that was web-enabled, easily accessible from anywhere, support- ed cloud hosting, and that made our customers more productive.” As Vince from American Box states, “Our upgrade to EnCore went very smooth and we are running well.” Amtech is the backbone of more than 600 manufac- turing plants and is proud to offer a business system that is both innovative and comprehensive. With a complete suite of modules, multilingual and enterprise solutions, Amtech has the technology that businesses need to re- main competitive in an ever-changing industry. To start your upgrade to EnCore by Amtech, contact Michael DeNicola at [email protected].

P E R F O R M A N C E D E L I V E R E D • HEAVY, DENSE BALES • RELIABLE AUTOMATIC TIER • LOW OPERATING COST PER TON AMERICAN BALER TAKES PERFORMANCE TO NEW HEIGHTS! 800.843.7512 AmericanBaler.com I N T E G R I T Y I Q U A L I T Y I R E L I A B I L I T Y I VA L U E

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June 22, 2020

Domino Launches X630i Digital Ink Jet Corrugated Press With Aqueous Ink Set

On 16 June, on what should have been the first day of drupa 2020, Dom- ino Digital Printing Solutions announced the launch of the Domino X630i single pass, digital ink jet press supplied with the revolutionary Domino AQ95 CMYK aqueous ink set representing. “The new business model for corrugated box production.”

Packaging ERP Algorithmic Scheduling Web-Based Access Online Customer Portals

Paperless Workflows Mobile Sales Systems Digital Signage Production Monitoring Mobile Logistics Management Analytics & Reporting Cloud Hosting IT Management Services Cyber Security Management

600 + Plants 60,000 Users North America Latin America

Although Domino has been developing industrial ink jet technologies since 1978, this represents their first step into the digital corrugated print- ing space. Domino is part of an international group with its headquarters in Cambridge in the UK, who became part of the Japan based Brother In- dustries corporation in 2015. After launching into the label printing sector in 2012, Domino quickly established itself as the ink jet technology digital press market leader, and intends to repeat this success in the corrugated box printing market. The Domino X630i is a new digital ink jet printing solution designed for everyday corrugated production, enabling corrugated box printers to print with minimal set-up time and waste, significantly improving overall plant productivity. “We are delighted to be introducing this highly automated, single pass Domino X630i digital ink jet press which will enable you to profitably de- velop short and medium run market opportunities, facilitating new streams of business and providing a more complete range of capability for your customer base,” said Matt Condon, Corrugated Sector Business Develop- ment Manager at Domino Digital Printing Solutions. “The X630i is based on Domino’s proven and reliable Generation 6 ink jet platform, which is approaching 1000 worldwide industrial installations. “Digital printing allows you to remove the need for printing plates and the lost production time and waste associated with set-up and make-ready, thereby increasing your uptime, productivity and efficiency, and reducing cost and consumption. With speeds of up to 75m/min (246ft/min), 600 x 600dpi print resolution, and a maximum print area of 3000mm x 1345mm (118” x 53”), the Domino X630i ink jet press is designed for everyday corru- gated box production. This investment will enable you to move your short run, multiple SKU and short lead time jobs to digital, rebalancing produc- CONTINUED ON PAGE 14 The Domino X630i is a new digital ink jet printing solution designed for every- day corrugated production, enabling corrugated box printers to print with min- imal set-up time and waste, significantly improving overall plant productivity.

  

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June 22, 2020

“We can help you adapt and optimize with our proven, agile solutions.”

Cosmo DeNicola Chairman, Amtech Software

URGENT NEEDS

IMMEDIATE SOLUTIONS

Customer Service Disruptions Remote Workforce Platform

Online Customer Ordering Portals

Paper-BasedWorkflows

Paperless, Electronic Document Management

Out-of-Date Pricing

Automated, Real-Time Costing Update

Viruses

Move to the Amtech Cloud Network and >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

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