Board Converting News, September 7, 2020

Board Converting News, September 7, 2020

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years September 7, 2020 VOL. 36, NO. 36

SuperCorrExpo 2020 Postponed: TAPPI, AICC Explain What’s Next BY JACKIE SCHULTZ In April, Larry Montague, President and CEO of TAPPI, and Mike D’An- gelo, President of AICC, The Independent Packaging Association, an- nounced the postponement of SuperCorrExpo 2020 due to the spread of Coronavirus. The new date is August 8-12, 2021, at the Orange

Mill Rock Packaging Acquires TrojanLitho

New York City based Mill Rock Packaging Partners, LLC, a new platform created by Mill Rock Capital, a private equity firm, an- nounced that it has acquired Renton, Wash- ington based Trojan Lithograph Corporation from Arbor Investments. TrojanLitho is a lead- ing, value-added provider of graphic paper packaging solutions to various consumer end markets. Terms of the TrojanLitho acquisition were not disclosed. Mill Rock Capital created Mill Rock Packag- ing Partners LLC to invest in growth-oriented companies with advanced service and prod- uct capabilities in the specialty packaging industry. Mill Rock Packaging Partners is led by Chairman and Mill Rock Senior Partner Ed Rose and a senior leadership team including its board of directors: • Dr. Robert Beckler, formerly President, Packaging Solutions of WestRock • Robert Feeser, formerly President, Con- sumer Packaging of WestRock • Charles Obermeyer, formerly SVP Global Operations – Folding at WestRock • Alexander Zalesky, formerly General Man- ager of Amcor Latin America

County Convention Center in Orlando, Florida. Following is an inter- view about their decision to reschedule the event and the addition of new programs. BCN: What criteria did you use to determine the new SuperCorrExpo date of August 8–12, 2021? LM: SuperCorrExpo is one of the largest events of its kind in the world so moving it was no easy task. And, with so many organizations doing the same, our options were limited. Our teams worked 24/7 to find the right space and dates. We were left with two choices: to move it to August of next year, or cancel and wait until 2024. TAPPI’s Corrugated Packaging Division was presented with both options and, after discuss- ing the pros and cons of each, the unanimous decision was August 8 – 12, 2021. We feel this gives our members, attendees and exhibitors more time to focus on their operations and production goals. We know everyone’s focus right now is on continuing to get essential products out to the people who need them. We recognize that and we’ll be ready The Orange County Convention Center in Orlando, Florida, will be empty this September 14-18, when SuperCorrExpo 2020 was to have taken place. The event has been rescheduled for August 8-12, 2021 at the same location.

CONTINUED ON PAGE 4

WHAT’S INSIDE

6 AICC: Exceed Customer Expectations With KPIs 8 ISM: Manufacturing, Economy Grow Again In August 10 IP To Invest $175M In Eastover, SC Mill 14 Beyond The Virus: Webinar To Share Growth Opportunities

CONTINUED ON PAGE 24

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.

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September 7, 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

Mill Rock Packaging Acquires (CONT’D FROM PAGE 1 )

• Mill Rock Senior Principals Diane Parisi and Eric Popham “Together our team brings more than 200 years of glob- al experience across every commercial and operational facet of the consumer packaging industry,” said Rose. “We are excited about the future growth of the platform. “TrojanLitho is an ideal foundation upon which to build a full-service packaging platform, with a complete spec- trum of design, engineering and fulfillment solutions, and production capabilities spanning single-face laminate and folding carton,” stated Dr. Robert Beckler. TrojanLitho, Mill Rock Packaging Partners’ charter ac- quisition, is a leading, full-service provider of high-end, graphic paper packaging to blue chip and emerging brands in food and beverage, personal care, healthcare and other consumer end markets. TrojanLitho offers a full suite of design-intensive, sustainable packaging solutions. The company’s differentiated “end-to-end” service offer- ing includes program development, design and engineer- ing, pre-press and on-press, finishing and logistics. “The company is on an impressive trajectory, having cultivated an attractive customer base underpinned by consumers’ daily needs. Going forward we will seek to ac- celerate organic growth, meaningfully expand operating capacity and support President and CEO Ian May and his accomplished team in completing strategic acquisitions in this highly fragmented market,” added Rose.

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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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

INCREASE YOUR PRODUCTION WITH AN INTEGRATED SQUARING AND STRAPPING SYSTEM

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.

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$920.00 $965.00

$910.00 $945.00

AVERAGE CONTAINERBOARD PRICES.indd 1

3/7/19 2:04 PM

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September 7, 2020

AICC: Exceed Customer Expectations With Key Performance Indicators AICC, The Independent Packaging Association, has re- leased a new free online course for members, Key Per- formance Indicators (KPI), which are dashboard level mea- surements that allow users to monitor their performance. This course shows the process of creating meaningful KPIs that drive better performance. Because the measures are developed to meet or ex- ceed customer expectations, they help create a positive impression with customers as promises are kept. KPIs also help break down the negative perceptions that often exist within a company’s various departments by encouraging them to think of one another as a string of suppliers and customers. This 90-minute course includes assignments to define customer wants and the KPIs that will help participants ex- ceed customer expectations, how to gather the required information, and what to do with it. As with all AICC Pack- aging School Courses, Key Performance Indicators in- cludes a quiz to ensure participant comprehension. More information can be found at www.AICCbox.org/ packagingschoo l. Questions can be directed to Taryn Pyle, Director of Education & Leadership Development, [email protected] or Chelsea May, Education & Training Manager, [email protected] or (703) 836-2422.

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September 7, 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.

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ance from steam to paper surface results in fast heat flow

ISM: Manufacturing, Economy Grow Again In August 2020

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

Economic activity in the manufacturing sector grew in Au- gust, with the overall economy notching a fourth consecu- tive month of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee: “The August PMI registered 56 percent, up 1.8 percentage points from the July reading of 54.2 percent. This figure indicates ex- pansion in the overall economy for the fourth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth. “The New Orders Index registered 67.6 percent, an increase of 6.1 percentage points from the July reading of 61.5 percent. The Production Index registered 63.3 percent, up 1.2 percentage points compared to the July reading of 62.1 percent. The Backlog of Orders Index reg- istered 54.6 percent, an increase of 2.8 percentage points compared to the July reading of 51.8 percent. The Employ- ment Index registered 46.4 percent, an increase of 2.1 per- centage points from the July reading of 44.3 percent. The Supplier Deliveries Index registered 58.2 percent, up 2.4 percentage points from the July figure of 55.8 percent. CONTINUED ON PAGE 38

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

34.784 33.734

3.1

7.905 8.032

-1.6

Industry Total

Year-to Date

July 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

231.403 227.669

1.6

7.765 7.744

0.3

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2020 2019

2.7993 2.7517

1.7

18.9354 18.7289

1.1

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Jul. Jun.

2.0214 2.0865

-3.1

3.2 3.3

-3.0

Shipping Days

Year

Month

Year-to-Date

2020 2019

22 21

149 147

SOURCE: Fibre Box Association

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September 7, 2020

FOR PEAK PERFORMANCE TURN TO THE CORRUGATOR STEAM SYSTEM EXPERTS

BSP engineers have the advanced analytical capabilities and problem-solving expertise to achieve and sustain peak productivity from any corrugator. We offer efficiency audits, steam system surveys, and piping drawings to identify specific problems and map out the most effective improvements.

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IP To Invest $175M In Eastover, SC Mill

Weyerhaeuser To Add To Oregon Timberlands

Memphis, Tennessee based International Paper (IP) will in- vest $175 million during the next 10 years in its Eastover, South Carolina mill. The investment will support cost effi- ciency as well as environmental and maintenance initia- tives, according to a news release from Richland County. “International Paper’s ongoing investment in its Rich- land County operations is a testament to the success a business can experience in our community due to our business-friendly environment and skilled workforce,” said Richland County Council Chair Paul Livingston in a news release. “With this $175 million investment, the company is demonstrating a commitment to continued reinvestment in our area.” The Eastover facility has approximately 700 employees and contributes around $90 million in annual economic impact, according to the release. The plant manufactures uncoated freesheet paper and pulp that is converted into products used for education, communication and hygiene. “Our planned investment represents our ongoing fo- cus on maintaining safe and reliable operations, meeting the needs of our customers and providing good jobs to the region,” said Hai Ninh, Eastover Mill Manager. “We are grateful for the support of county leaders and our commu- nity partners as they play an important role in our success.”

Seattle, Washington based Weyerhaeuser Company an- nounced it has entered into two distinct agreements to purchase timberlands from and sell timberlands to funds managed by Hancock Natural Resource Group, a Manulife Investment Management company. The company is purchasing approximately 85,000 acres of timberlands in mid-coastal Oregon in one transac- tion, and selling 149,000 acres of timberlands in southern Oregon in a second transaction. The net cost of these two separate transactions is approximately $40 million in cash. “These two agreements represent a unique opportunity to further enhance Weyerhaeuser’s Western timberlands portfolio with exceptional land that is contiguous with our existing ownership,” said Devin W. Stockfish, President and Chief Executive Officer. “Through these transactions, we are acquiring highly productive timberland with low operating costs and strong access to key domestic and export markets, and we expect them to deliver immediate and long-term value for our shareholders.” The transactions are subject to customary closing con- ditions and are expected to close in the Q4 2020. Weyerhaeuser owns nearly 12.4 million acres of timber- lands in the U.S. and manages an additional 14.0 million acres timberlands under long-term licenses in Canada.

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September 7, 2020

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P+PB Film Shines Light On Paper And Packaging Industry Innovation The Paper and Packaging Board (P+PB) has announced the release of a new documentary that provides an in- side look at the U.S. paper and packaging industry’s de- cades-long legacy of environmental stewardship. A story of grit, passion and dedication, “Paper Makers” provides a rare and intimate insight into how the industry’s foresters, mill workers and engineers have cared for the land, work- ing in tandem with nature for generations. In a critical decade for climate action, “Paper Makers” looks at the philosophy and practices that have made the U.S. paper and packaging industry a vocal advocate for re- sponsible land management, sustainable design and the protection of our planet’s most valuable resources. Paper is at the forefront of environmentally friendly in- novation with top brands and corporations across person- al care, food and beverage and fashion, making the switch to paper packaging as part of their sustainable business strategies. There’s new attention on paper-based materi- als to provide solutions for some of society’s biggest envi- ronmental challenges. But how did the industry get here? “For generations, our mill workers and foresters have protected the natural resources they’re charged with. The industry gives back more than it takes and helps manage forests and the ecosystems that depend on them,” said Mary Anne Hansan, President of the Paper and Packag- ing Board. “Trees are our planet’s only fully renewable resource. The paper and packaging industry’s environ- mental practices are inherently designed to protect and cultivate this vital circular system. Telling that story through the eyes of industry workers — folks who are truly the van- guards of environmental stewardship — is really important for people to understand.” “Paper Makers” offers an intimate look at one of Amer- ica’s oldest natural industries through the eyes of the workers who cultivate the sustainable forests it depends on and develop technologies that will nurture and protect them for years to come. The film aims to educate pack- aging designers, environmental engineers and business leaders on how paper can help them design the sustain- able solutions of tomorrow and show consumers why pa- per can be a sustainable choice for the planet. The film unearths little-known facts about how the in- dustry works to regenerate important resources: • The paper and packaging industry helps make cleaner air by planting roughly twice as much wood as it har- vests every year. • The industry is, in many cases, self-sufficient, making ⅔ of its power from non-fossil-fuel sources and even producing enough to send power back to the grid. • Paper is one of the most recycled materials on the planet, at a rate of 66.2 percent per year. Visit www.howlifeunfolds.com/paper-makers to watch the film.

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September 7, 2020

Beyond The Virus: Webinar To Share Growth Opportunities For Packaging Industry The COVID-19 pandemic has forced many B2B organizations to focus on navigating this new normal. But it’s just as critical that companies discov- er new growth opportunities to ensure success after the crisis. With this in mind, Delia Associates, an award-winning branding and marketing agency in Whitehouse, New Jersey, will present Beyond the Virus, an in- teractive webinar. Hosted by the New Jersey Packaging Executives Club (NJPEC), the event takes place September 10, 2020, from 11:00a.m.-12:15 p.m. EST.

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

Ed Delia, President of Delia Associates, will be joined by several of the organization’s B2B branding experts to provide insights tailored to the packaging industry. “Building a strong branding foundation is more critical than ever,” notes Delia. “My team will share how reexamining, redefining and repositioning brands now can lead to post-pandemic success later.” Topics to be explored include how to strengthen brand messaging, create effective brand designs, and build better brand en- gagement with audiences. Successful branding is of particular importance to the New Jersey packaging industry, which employs thousands of workers across hun- dreds of organizations. Segments include health and beauty, pharma- ceutical, food and beverage and industrial applications. NJPEC Presi- dent Gene Kistler explains, “Our members want to understand the implications of the pandemic on their businesses right now, as well as what they can do in this competitive landscape to ensure growth once the pandemic is behind us.” Exclusive to this webinar is an easy-to-use, interactive technology that fosters engagement with the speakers and amongst attendees. Fol- lowing the main presentation, which includes a live Q&A, attendees will virtually “move” into smaller breakout sessions, emulating a traditional, in-person networking event. The breakout sessions will consist of topi- cal questions and discussions, and additional insights from the experts, who will join the conversations. “Essentially, we are hosting a physical event, but in a virtual space,” says Kistler. “Just like a traditional in-person NJPEC event, attendees will be able to meet and connect to colleagues in a personal and meaningful way.” For more information or to register for the event, go to: https://live. remo.co/e/delia-associates-or-njpec-or-vir-4/register.

  

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September 7, 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

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