Board Converting News, June 7, 2021

Board Converting News, June 7, 2021

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years June 7, 2021 VOL. 37, NO. 23

Using Buy-Sell Agreements For Family Business Survival BY PHILLIP M. PERRY A California-based family business was facing the worst crisis in its his- tory. Not only was its founding patriarch and CEO starting to exhibit signs of mental deterioration, but his erratic behavior was threatening the bottom line. Business decisions were being neglected. Customers were being mistreated. Top employees were headed out the door.

Kruger To Open Its First U.S. Corrugated Plant In Kentucky Montreal, Canada based Kruger Packaging has announced it will open a 400,000-square- foot box manufacturing facility in Elizabeth- town, Kentucky. The project will be Kruger’s first corrugated box plant in the U.S. and is expected to create at least 147 jobs in coming years, according to a media report. “Kruger Packaging will be a strong em- ployer in central Kentucky for years to come and I look forward to watching the company grow and help build a better future for Ken- tuckians,” said Kentucky Gov. Andy Beshear. Founded in 1904, Kruger Packaging’s par- ent company, Kruger Inc., produces every- thing from premium papers, publication and specialty papers, to 100 percent recycled con- tainerboard products, cellulosic biomaterials and even a line of wines and spirits. The com- pany is also a major North American recycler of paper and paperboard. Kruger operates 19 facilities across 10 sectors in Canada and the U.S., including locations in Maine, New York, North Carolina, Rhode Island, Tennessee and Virginia. “Kentucky’s pro-business climate was in- strumental in our decision to invest in Hardin

With the future of their company at stake, the other family members at the third-generation enterprise realized they needed to find answers to three questions: How could they convince the CEO to relinquish control before he damaged the organization irretrievably? Who would shoulder his responsibilities? And where would they find the money to purchase his corporate shares? Buy-Sell Agreements Our opening story is not unusual. Family businesses everywhere can find their future imperiled when a critical shareholder can no lon- ger exercise managerial duties. Sometimes the cause is physical or mental disability. Other times it is an unexpected death, resignation, termination, retirement, or divorce. Luckily, the California business was able to resolve its crisis by re- sorting to a tool available to family businesses everywhere. A docu- ment called a “buy-sell agreement,” drawn up years earlier, mandated the terms by which the family business stock was bought and sold and the procedures for responding to unexpected events threatening the CONTINUED ON PAGE 24

CONTINUED ON PAGE 4

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x 10 Registration Open For ICPF Holiday Weekend In New York 12 Articles On Corrugated Demand Disregard Sustainability 6 ISM: Manufacturing, Economy Grow Again In May 3 Deadline Extended To Enter Box Manufacturing Olympics

Machinery and Handling for the Corrugated Board Industry

Machinery and Handling for the Corrugated Board Industry

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

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

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

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

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June 7, 2021

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Kruger To Open (CONT’D FROM PAGE 1 )

Core Competency

County, and we are grateful for the support we received fromGov. Beshear, Team Kentucky and Elizabethtown-Har- din County to make the announcement a reality,” said Mi- chael Lafave, Senior Vice President and Chief Operating Officer of Kruger Packaging. To encourage investment and job growth, the Kentucky Economic Development Finance Authority preliminarily approved a 10-year incentive agreement Thursday with the company under the Kentucky Business Investment program. The performance-based deal can provide up to $3.45 million in tax incentives based on the company’s in- vestment of $114.2 million and annual targets of 147 Ken- tucky-resident, full-time jobs across 10 years with an aver- age hourly wage of $32.50, which reflects both benefits and pay. Additionally, the finance authority approved Kruger Packaging for up to $1.58 million in tax incentives through the Kentucky Enterprise Initiative Act, which allows ap- proved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. In addition, the state said the company can tap resourc- es of the Kentucky Skills Network which provides no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Visit www.kruger.com for more information.

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

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June 7, 2021

A Century of Innovation In Every Machine Celebrating 100 Years: 1920-2020

FALCON 2-minute run-to-run times and world-class production @ 21K/HR

IBIS 2-minute run-to-run times and total product flexibility @ 15K/HR

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UK Box Maker Invests In Baysek C-170 Die Cutter

The new C-170 was installed and commissioned in May 2021. Robert Jess, Sales Manager, UK & Europe, Baysek Machines, adds, “It was a pleasure to work with Mark and the team at CCC and further cement our relationship. Re- peat business with customers is testament to the manu- facturing excellence of Baysek. We are happy to contin- ue working with such a great company. The servo-driven C-170 represents a big investment and will give CCC the ability to handle higher volume runs and increase capacity even further to produce more complex jobs.” IP Launches Signature Pro Bono Initiative Memphis, Tennessee based International Paper (IP) re- cently announced the kick-off of the Signature Pro Bono Initiative, marking a significant milestone for the legal com-

UK-based The Corrugated Case Co (CCC) has recently taken delivery of a new Baysek C-170 die cutter, replacing an existing Baysek machine. “We have invested heavily in our team and process- es, combining the latest technology with extensive indus- try knowledge and expertise, designing, developing and manufacturing packaging that fulfills the needs of our customers, which is why we chose to replace our existing Baysek die cutter with the latest model C-170,” said Mark Wilcockson, Managing Director, CCC. “Baysek has been an integral part of our business for many years and the machine is one of the busiest in our factory, having served us well for almost 15 years. The new C-170 will improve both quality and productivity across our entire operation.”

munity in Tennessee and for individuals liv- ing in the state’s underserved communities. As part of the Tennessee Pro Bono Services Alliance, this initiative will help deliver equal justice to Tennessee residents by focusing specifically on expungement, voter rights restoration and driver’s license reinstate- ment. International Paper is honored to part- ner with the following organizations for this initiative: Butler Snow LLP; Bass, Berry & Sims PLC; Memphis Area Legal Services; and Just City. More than 130 attorneys and paraprofessionals attended the initiative’s virtual kick-off event held in mid-May. Now, IP and its initiative allies are asking lawyers around the state to volunteer their time and knowledge to help bring awareness to these issues, to be an advocate on behalf of indi- viduals in the criminal justice system, and to address the root causes that prevent equal justice for all residents in Tennessee. “This initiative will help confront the is- sues within our criminal justice system that prevent our fellow citizens from moving forward and becoming responsible and productive citizens,” said Sharon R. Ryan, Senior Vice President, General Counsel, In- ternational Paper. “We are excited to partner with these amazing organizations and chal- lenge others throughout the state to join our efforts. Through our work we can advocate for change that will improve the lives of ev- eryone in our communities and throughout our great state.” If you’re a member of the legal commu- nity and would like to help, contact Susan Mills at [email protected] or call (901) 419-7160.

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June 7, 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

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 n higher plate surface temperature

Benefits

New-Indy Issues Statement Concerning Odor Complaints

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

Ontario, California based New-Indy has issued the follow- ing statement regarding recent complaints: “We at New-In- dy are working diligently to address odor complaints from residents of York and Lancaster counties in South Caroli- na, and Union county in North Carolina and to comply with directives of state and federal agencies. “New-Indy and the U.S. Environmental Protection Agency (EPA) are continuously monitoring levels of hydro- gen sulfide at our Catawba mill and in several surrounding neighborhoods. We launched a dedicated website, new- indycatawba.com , with daily reports explaining the EPA’s independent hydrogen sulfide >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

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