Board Converting News, May 17, 2021

Board Converting News, May 17, 2021

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years May 17, 2021 VOL. 37, NO. 20

Gene Achieves High Marks For AICC Presentation In FL BY REBECCA RENDON AICC, the Independent Packaging Association, successfully execut- ed its long-awaited 2021 Spring Meeting in Amelia Island, Florida, last month. As it has done at each of its past gatherings, the Association and its staff provided an information-packed agenda of workshops, networking opportunities and as always, a stellar program of keynote presentations of greatest interest and importance to AICC members.

Paper Excellence Acquires Domtar

Richmond, British Colombia, Canada based Paper Excellence, a global diversified manu- facturer of pulp and specialty packaging pa- pers, and Domtar recently announced that they have entered into a strategic business combination under which the Paper Excel- lence group of companies will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash. The purchase price represents a premi- um of approximately 37 percent to Domtar’s closing share price on May 3, 2021, the last trading day prior to the Domtar’s statement responding to media reports regarding a po- tential business combination between Dom- tar and Paper Excellence, and a premium of approximately 44 percent to the 30-day vol- ume-weighted average price as of May 3, 2021. The all-cash transaction represents an enterprise value of approximately $3.0 billion. After the transaction closes, Paper Ex- cellence intends to continue the operations of Domtar as a stand-alone business entity. Domtar will continue to be led by its manage- ment team and Paper Excellence plans to re- tain its corporate and production locations.

An informal survey of meeting attendees revealed that one of the speakers — Gene Marks, columnist, author, small business owner, and CPA at his firm, The Marks Group — delivered a particularly relevant and entertaining presentation on “Post-COVID Opportunities and the Biden Administration: Issues, Challenges and Actions to Grow Your Business Over the Next Two Years” Among his many accomplishments, Marks writes weekly on the economy, business and technology for publications that include The Guardian , The Hill, The Washington Times , The Philadelphia Inquir- er , Forbes , and Entrepreneur.com. He is also the author of five books on business management and provides commentaries for Fox News, Fox Business, ABC Radio’s John Batchelor Show and for the Wharton School’s Business Channel on Sirius XM. In his “spare time,” Marks is the host of two popular business podcasts for The Hartford and Pay- chex. CONTINUED ON PAGE 24 Gene Marks, popular columnist, author and small business owner, delivered a compelling presentation at AICC’s Spring Meeting in Amelia Island, FL.

CONTINUED ON PAGE 5

WHAT’S INSIDE 6 Brunton’s Second ConneXion Virtual Expo Slated For June 1-8 8 AICC Recognizes Milestones, Safe Shop Award Winners 14 Dealing With W&H Regulations: Avoiding Overtime Penalties 36 FTA Announces Flexography Excellence Award Winners

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:

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May 17, 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.

DON’T GET LEFT BEHIND!

www.ProferoSystems.com

704-923-0990

PO BOX 950 DALLAS, NC 28034

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May 17, 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

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.

42# Kraft Liner 26#

Semi-Chem Medium

East West

$970.00

$960.00 $995.00

$1,015.00

Paper Excellence Acquires (CONT’D FROM PAGE 1 )

“We are excited to add Domtar and its employees to the Paper Excellence global family,” said Joe Ragan, Glob- al Chief Financial Officer of Paper Excellence. “This marks a major step in our global strategy of identifying well-posi- tioned assets and positioning them for growth. Domtar is a natural fit for our culture of operational excellence. We are enthusiastic about entering the American market as we continually improve Paper Excellence’s ability to serve its expanding blue-chip customer base. We have long ad- mired Domtar’s expansive global footprint and believe that it will be a valuable addition to Paper Excellence. We look forward to investing in Domtar’s assets and people for long-term growth.” “This agreement enables our shareholders to realize certain and immediate cash value at a significant premi- um for their shares,” said John D. Williams, President and Chief Executive Officer of Domtar. “This transaction vali- dates our long-term strategic plan for our leading paper and pulp businesses, and for our continued expansion into packaging.” Domtar is the largest integrated manufacturer and mar- keter of uncoated freesheet paper in North America, and one of the largest manufacturers of pulp in the world. Its network of 13 pulp and paper mills and 10 manufacturing and converting facilities gives it approximately 2.7 million tons of papermaking capacity.

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May 17, 2021

Brunton’s Second ConneXion Virtual Expo Slated For June 1-8 Brunton Business Publications is reprising its first award-winning virtual event with the second ConneXion Virtual Expo, which is set to run from June 1-8, 2021. The event is being supported by AICC, The Independent Pack- aging Association; the European Carton Makers Associa- tion, the Paperboard Packaging Council; and the UK Sheet Plant Association. The event is free and is open to converters from all over the world. It runs 24/7 via a standard web browser, tablet or mobile device. Visitors can connect with some of the industry’s leading OEMs, software and service suppli- ers and watch video content, view brochures and even en- gage in text, voice or video chats with exhibitors. Thanks to the easy-to-use navigation, attendees can also interact with other visitors and catch up with their news too. Exhibitors include Absolute, Avanti, Bahmüller, Baldwin Technologies, Baysek Machines, BOBST, CITO, Corr24, Domino, Dücker Group, EFI, E+L, Elitron, EMBA Machinery, Fosber, Friese, Helios, Highcon, Hybrid Software, ISRA Vi- sion, JB Machinery, JKSP Services, Koenig & Bauer, Koenig & Bauer Durst, Lamina System AB, Manroland, Marbach, Pamarco, Swanline Print, SUN Automation Group, TCY, Til- ia Labs, WH Leary, and Xeikon. Visit thepackagingportal.com 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

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May 17, 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

AICC Recognizes Milestones, Safe Shop Award Winners

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

AICC, through its Member Milestone Program, recently recognized member companies celebrating significant level anniversaries at the 2021 Spring Meeting on April 26- 28: Isowa, 100 years; Tiruna, 100 years; Jamestown Con- tainer Companies, 65 years; Progress Container & Display, 50 years; and The BoxMaker, 40 years. AICC also presented its Independent Safe Shop Awards, an annual recognition of AICC companies for out- standing performance in plant safety in 2020 and 2021. For 2020, awards were presented to Air Conveying Corp.; Akers Packaging Service Group (Middletown); Akers Packaging Solutions (Decatur), Akers-Webster West Pack- aging (Evansville); Akers-Webster West Packaging (North Vernon); Lawrence Paper Company, American Packaging Division; Hoosier Container Inc.; McElroy Contract Pack- aging; Tecumseh Packaging Solutions; Unicorr Packaging Group/Vermont Container; and Wunderlich Fibre Box Co. For 2021, awards were presented to Akers Packaging Solutions (Decatur); Akers Packaging Solutions (Hunting- ton); Akers-Webster West Packaging (Evansville); Law- rence Paper Company, American Packaging Division; Ar- row Box Company; Box-Board Products, Inc.; Wunderlich Fibre Box; Jamestown Container Rochester, HP Neun Divi- sion; and Jamestown Container Cleveland.

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

34.916 31.332

11.4

8.729 7.833

11.4

Industry Total

Year-to Date

December 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

406.776 393.483

3.4

8.071 7.838

3.0

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2020 2019

2.7727 2.5660

8.1

33.0739 32.3005

2.4

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Dec. Nov.

1.8921 1.7912

5.6

2.7 2.5

8.0

Shipping Days

Year

Month

Year-to-Date

2020 2019

20 20

252 251

SOURCE: Fibre Box Association

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May 17, 2021

RELIABLE PERFORMANCE TO PROTECT YOUR ENTIRE SYSTEM

DEAERATORS MANUFACTURED TO SURPASS ASME STANDARDS COMPLETE SYSTEMS OR CUSTOM TAILORED TRIM PACKAGES LOWERS OXYGEN LEVELS TO .05 CCLITER OR BELOW VARIABLE CONTROL PACKAGES DURABLE COMPONENTS AND PROFESSIONAL FABRICATION

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.

706.453.2050 | www.BSPsteam.com/vessels

©2019 Boiler & Steam Performance, Inc. All rights reserved.

Manufacturing Employment Fell By 18,000 In April: NAM BY CHAD MOUTRAY

The unemployment rate edged up from 6.0 percent in March to 6.1 percent in April, with the number of unem- ployed workers rising from 9,710,000 to 9,812,000. The labor force participation rate rose for the second straight month, up from 61.5 percent to 61.7 percent, an eight- month high. Businesses continue to cite difficulties in finding enough talent, and manufacturers will need to identify 2.1 million more workers for the sector between now and 2030, according to new analysis from The Manufacturing Institute and Deloitte. Encouragingly, on the labor market front, initial unemployment claims fell to 498,000 for the week ending May 1, the lowest since the pandemic began. The ISM Manufacturing Purchasing Managers’ Index pulled back from 64.7 in March, the fastest pace since De- cember 1983, to 60.7 in April. New orders and production continued to expand very strongly, but supply chain dis- ruptions remained a significant challenge. Prices soared

Manufacturing employment fell by 18,000 in April, pulling back from solid gains in the prior two months, according to Chad Moutray, Ph.D. and Chief Economist at the National Asso- ciation of Manufacturers (NAM). The U.S. economy adding just 266,000 nonfarm payroll workers in April. This was a disappointing and somewhat unexpected re- port given the rebound in the U.S. economy, but it should not take away from the outlook for solid employment growth over the coming months. Chad Moutray

at the fastest rate since July 2008, and the backlog of orders was the highest on re- cord. New orders for manufactured goods rose 1.1 percent in March. Overall, factory orders continued to rebound strongly, ris- ing 3.3 percent since February 2020, or 5.7 percent with transportation equipment excluded. Durable goods orders increased even stronger, rising 4.3 percent over the past 13 months or 11.1 percent with transpor- tation equipment excluded. Likewise, new orders for core capital goods—a proxy for capital spending in the U.S. economy—increased 1.2 percent to $73.4 billion in March, a record high. As such, core capital goods orders have ris- en a robust 10.5 percent over the past 13 months, buoyed by confidence in the eco- nomic outlook. Manufacturing labor productivity edged up 0.1 percent at the annual rate in the first quarter, sustaining the 4.5 percent gain in the fourth quarter. Output in the sector rose a modest 2.4 percent in the first quarter, but these >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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