Board Converting News, October 19, 2020

Board Converting News, October 19, 2020

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years October 19, 2020 VOL. 36, NO. 42

Customer Commentary: Price Is Not The Only Factor BY ANONYMOUS

Opus Packaging Acquires Arvco’s Assets In Indiana Opus Packaging – Indianapolis has an- nounced that it has entered into an agree- ment to acquire significantly all of the assets of Arvco Container Corporation’s Indianapolis location (Arvco Indianapolis) and has offered employment to all current Arvco Indianapolis employees, effective October 5, 2020. The acquisition demonstrates the Opus Packag- ing Group’s (Opus) commitment to the India- napolis market and strengthens its ability to enhance the performance of its customers. Arvco Container Corporation (Arvco) pur- chased the Arvco Indianapolis operation in 2006. Earlier this year, a key Arvco Indianap- olis customer moved their manufacturing re- quirements to Michigan. With their lease ex- piring at the end of the year and the impact of the COVID-19 pandemic, Arvco decided to find a company willing to purchase the oper- ation. Arvco’s President and CEO, Greg Arvani- gian, said, “After exploring several options, Arvco concluded that Opus provided the best fit for their employees and customers. Arvco and Opus have had a long-standing busi- ness relationship that spans two generations.

Editor’s Note: The following article was written by a customer of Ari- zona Corrugated Container, which has requested that the customer remain anonymous : We are a small manufacturer of special boxes for the fast-food in- dustry with multiple out-of-state locations. When our Phoenix, Arizo- na, production’s break-even caused cash-flow concerns, we decided to outsource, similar to Amazon, all manufacturing (but not sales and marketing) to the largest independent box maker in the state, Arizona Corrugated Container (ACC). ACC had a similar entrepreneurial culture, their own new corrugator and state-of-the-art machinery. Our strategy was an option to selling the company. At the request of this valued supplier, we have omitted our identity but not our business philosophy, which I am explaining here. As a small business, we have always encouraged entrepreneurial behavior. As an integral part of our culture, this attitude of independent thinking has served us well for many years. For a while, our spending operated under this philosophy. It was decentralized and conducted at the local level with little emphasis on combining our buying power. Buyers at each production site were responsible for purchasing our packaging requirements and received performance ratings based upon the perception of how well they managed price. They operated under the old mentality of getting three bids, taking the lowest bid and then going back and telling all bidders they had to do better. It was a game that we had to play. But who was the winner of this game? No one. As a result of these adversarial and strictly price-driven business practices, it was not un- common to often switch supply base in the interest of obtaining a bet- ter price point. This emphasis on price encouraged other behaviors: • Use of several suppliers per site to maintain that competitive spirit, and make sure no supplier felt too secure in owning the business. • Volume changes amongst suppliers would be used as purchasing power to reward thrifty bidders and punish those who didn’t sharp- en their pencils enough. On the other side, a small overall increase in sales price can offset a much larger reduction in volume. Are Good Suppliers As Important As Customers? One doesn’t have to be a business graduate to understand that such behaviors between seller and customer did not create efficien- cies in either production or logistics for the manufacturing facility. As a CONTINUED ON PAGE 22

CONTINUED ON PAGE 4

WHAT’S INSIDE 6 Sonoco Announces Price Hike For Corrugated Medium Grades 12 Hood Container To Hire 100+ Employees In Owensboro, KY 14 AICC Announces Winners Of Student Design Competition 16 Domtar To Convert TN Mill To Produce Containerboard

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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October 19, 2020

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

Opus Packaging (CONT’D FROM PAGE 1 )

While Arvco regrets the need to withdraw from the India- napolis market, they are committed to assisting Opus in making this transition as smooth as possible for all of the parties involved.” “For Opus’ customers, this acquisition enhances our ability to serve their customer’s packaging needs by ex- panding their reach in the Midwest region and tapping into the expertise and expanded capabilities of the exist- ing facilities within the Opus Packaging Group,” said Opus Packaging Group co-owner Butch Stoner. “Opus has been providing innovative packaging solutions to its customers since 1984, and opened a brand new facility in Whites- town, Indiana, in 2019. With a vision of becoming a world class provider in packaging solutions while leading in the markets it serves, the acquisition of Arvco Indianapolis only puts us closer to achieving that goal.” Opus Packaging Group is comprised of five wholly owned entities: Opus Packaging – Indianapolis in Whites- town, IN; Opus Packaging – Grand Rapids in Caledonia, MI; Opus Packaging – Jackson in Jackson, MI; Opus Pack- aging – New Bremen in New Bremen, OH; and Opus Pack- aging – Wabash in Mt. Carmel, IL. “We are excited about this change and confident that the combination of the Opus Packaging and Arvco Indi- anapolis businesses will be beneficial to our valued em- ployees and customers,” said Stoner.

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]

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October 19, 2020

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

TRUST THE INDUSTRY LEADER

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.

THE BEST BUNDLER SOLUTIONS FOR SPECIALTY FOLDER GLUERS To learn more about our corrugated solutions visit www.eammosca.com/corrugated or contact us at [email protected] | 844-859-6968

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

High performance corrugated medium Coated and laminated papers

Greener innovations for wax replacement boxes

A new strain of recyclable corrugated board is your green defense against moist, wet processes and environments. Cartons made from FluteSHIELD ® corrugated medium and SurfSHIELD TM coated or laminated liners stand up stronger and last longer—all the way to the retailer. You get the strength you need (ECT, BCT, stiffness) plus the wax-free, recyclable, repulpable properties that your customers are demanding. Contact your Cascades Sonoco representative today to learn why FluteSHIELD medium and SurfSHIELD liners are fast becoming the picks of industry.

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October 19, 2020

Sonoco Announces Price Hike For Corrugated Medium Grades Hartsville, South Carolina based Sonoco announced last week that it is implementing a $50/ton increase on all domestic and export corrugating medium grades ship- ping from its Hartsville mill. The prices are effective with shipments on and after November 2, 2020. According to Tim Davis, Division Vice President and General Manager, Paper and Adhesives, U.S./Canada, Sonoco is responding to changes in market demand and order backlogs, in line with other North American containerboard producers. According to an industry analyst, the company’s focus on optimizing businesses through productivity improve- ment, standardization and cost controls will also aid its performance in the near term. In addition, the stable price of OCC is likely to offset the negative impacts of price/cost and improving operating margins. Sonoco expects its Consumer Packaging segment to gain from the demand from stay-at-home customers ow- ing to the pandemic. Approximately 80 percent of the segment’s sales flow in from food packaging, where the company is witnessing increased orders. Further, paper- board operations in North America are likely to be rela- tively steadier as elevated demand for the tissue and the towel market will help offset declines from some industrial converted-product businesses.

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More than a source. A resource.

1-219-663-4525

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October 19, 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

NAM: Seven Of Top Ten Export Markets Grew In September

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

According to Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufacturers (NAM), the J.P. Morgan Global Manufacturing PMI expanded in Septem- ber at the fastest pace in 25 months. In September, seven of the top 10 markets for U.S. man- ufactured goods had expanding manufacturing sectors, up from six in August and just one (China) in May. As such, these major trading partners have continued to improve after plummeting in April to levels that were either the worst since the Great Recession or at record lows. The World Trade Organization (WTO) predicts that global trade volumes could fall 9.2 percent in 2020, an improvement from the previous estimate of a 12.9 percent decrease this year. WTO predicts that global trade should rebound, rising by 7.2 percent in 2021. The U.S. trade deficit rose to the highest level since August 2006, with goods imports rising faster than the in- crease in goods exports. The goods trade deficit rose to a new record. At the same time, the service-sector trade surplus dropped to its lowest level since January 2012. In non-seasonally adjusted >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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