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Board Converting News, August 3, 2020

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BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years August 3, 2020 VOL. 36, NO. 31

The Highs (And Lows) Of Cannabis Packaging BY JACKIE SCHULTZ

Sonoco To Invest $83M In SC Facility Upgrades

Hartsfield, South Carolina based Sonoco has announced plans to upgrade its corrugated medium machine in Hartsville, South Carolina, with an investment of $83 million. The move to transform the machine into a new recycled paperboard machine with a production ca- pacity of 180,000 tons per year is aimed at further bolstering the company’s recycled pa- perboard mill system. With this investment, Sonoco is expected to become one of the largest, lowest-cost pro- ducers of recycled paperboard in the world. The transformation will be carried out as part of Project Horizon and will reduce electricity consumption in the Sonoco’s U.S. and Canada paper mill system by 16 percent. The compa- ny will also be able to reduce greenhouse gas emissions by 16 percent while its total water usage by mills will decrease by 25 percent. “We are calling this investment Project Horizon because it ensures the long-term viability of our Hartsville paper mill complex and places our U.S. and Canada recycled pa- perboard mill system into the top quartile of performance from a cost perspective,” said Sonoco President and CEO Howard Coker

Cannabis is a dynamic market that is presenting new opportunities for folding carton converters, especially in the U.S. Of the 50 states, 11 have legalized its recreational use, 33 have legalized medical canna- bis, and the remaining states are evaluating legalization in one form or another.

With legalization and decriminalization, the market is poised to ex- plode and with it so will the cannabis packaging market. According to the research firm Smithers in the report, “The Future of Cannabis Packaging to 2024,” the value of the legal cannabis market globally will more than double from $21 billion in 2019 to $55 billion in 2024. The value of packaging for legal cannabis products will more than triple from $493 million to exceed $1.63 billion in 2024. This is equivalent to a year-on-year growth rate of around 24 percent. U.S. cannabis packaging represented 63 percent of the world mar- ket in 2019, and by 2024, North America will account for more than 80 percent of the world cannabis packaging market by value, according to the Smithers report. Most people know this product as marijuana, although the preferred name is “cannabis.” It comes in several forms, from smokable to edible. CBD (cannabidiol), which comes from the cannabis sativa plant, is a hemp extract that has less than 0.3 percent THC (tetrahydrocannabi- All Packaging Company received the PPC Paperboard Package of the Year for this cannabis packaging.

CONTINUED ON PAGE 4

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x

The Compostability Of Paper 10 Safety Program Helps Zumbiel Packaging Reach Milestone American Carton Expands Folding Carton Capabilities

1 ICPF Identifies Qualified

Candidates For Industry Careers

CONTINUED ON PAGE 24

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

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

Manufacturing & Distribution Software for Packaging

215.369.7800 • [email protected] • advantzware.com

August 3, 2020

www.boardconvertingnews.com

Sonoco To Invest (CONT’D FROM PAGE 1 )

Core Competency

said. “More than 80 percent of our consumer packaging sales are linked to food products, and we are being called on to meet an increased demand for consumers who are staying close to home. I’m extremely proud of how our as- sociates have rallied to our customers’ calls for help during this crisis.” Sonoco has also released its 2019-20 corporate re- sponsibility report, which highlights environmental mile- stones Sonoco achieved in the past year, including reduc- ing normalized greenhouse gas emissions by one percent and water usage by two percent. Since 2009, the compa- ny has reduced normalized greenhouse gas emissions by 24.6 percent, including a 33.6 percent reduction in direct emissions from operations, and water use by 42.4 percent. The report also looks ahead at some of the company’s commitments for sustainable use and increased recyclabil- ity of packaging by 2025. Those commitments include: • Increasing the amount it recycles or causes to be recy- cled from 65 percent to 85 percent, relative to the vol- ume of packaging it places into the global marketplace; • Increasing the use of postconsumer recycled resins in its plastic packaging from 18 percent to 25 percent; and • Ensuring that about 75 percent of its rigid plastic pack- aging can carry the relevant on-package recyclable claim. Visit www.sonoco.com for more information.

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August 3, 2020

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The Compostability Of Paper BY MARY DRAIN

our preferred option is recycling, but composting is “…sug- gested as an alternative disposal option that can reduce reliance on landfills and provide additional benefit through the production of a valuable soil amendment.” The report introduction states that, while there are general recommendations for composting paper, relative- ly little attention has been given in the scientific literature to the biodegradability and compostability of paper and what impacts it may have on the final compost product. This review is a summary of some of the research that has been done to investigate the suitability of using paper and paper products in a composting environment. Sections include information on biodegradation of woody material in a soil environment, biodegradation in a compost environment and biodegradation of paper in compost environment and the connections among them. Highlights from the report include: • As a wood-based product, the biodegradation of paper

The National Council for Air and Stream Improvement (NCASI) recently released to the public a report titled “The

Use of Paper and Paper Products in a Composting Environment.” NCASI serves the forest products industry by providing scientific research and technical information necessary to achieve the industry’s environmental and sustainability goals.

The information on compostability of paper detailed in the report is beneficial to the corrugated packaging indus- try and other paper-based packaging allies, to the com- posting industry and to all eco-minded consumers. This topic isn’t addressed very often in the industry, because Mary Drain

follows a similar path to that of wood in a natural soil environment, with microbial communities metabolizing wood fibers. • When properly maintained, composting using paper feedstock can result in a fi- nal product that is high in quality, suffi- ciently stable, free of odors, and can be marketed for agricultural uses. • Composted paper has also been shown to have no impact on plant germination rates. In fact, results from one study showed final yields for plants grown in paper compost were higher than for plants grown in compost without paper or commercial growth substrates. • In lab experiments, the biodegradability of bleached, high density paper with sil- icone coating was 75 percent, but was eventually able to achieve 100 percent biodegradability with sufficiently long composting times. Paraffin wax coatings have been shown to be biodegradable. • Recommendations for including paper and paper products during compost- ing are commonly contained in general guidance documents concerning this subject. These recommendations make sense given that paper is a natural prod- uct derived from wood, which should make it ideal for composting. • Unbleached paper may not be 100 per- cent biodegradable during composting due to the higher lignin content, but the modified lignin resulting from compost- ing produces a stable humic-like sub- stance valued in the final compost. FBA commends NCASI for seeing the importance and value of this document and sharing it with the public.

www.boardconvertingnews.com

August 3, 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

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 n higher plate surface temperature

Benefits

MHIA Names Christine Little New Senior Sales Manager

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

The Corrugating Machinery Division of Mitsubishi Heavy Industries America (MHIA) has announced the hiring of

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

34.392 31.916

7.8

7.816 7.979

-2.0

Industry Total

a new Senior Sales Manager for North America. Christine Little will be heading up sales efforts for the North American market, compris- ing the United States, Canada and Mexico, effective August 3. The 20- year packaging industry veteran will work in close collaboration with Ya-

Year-to Date

June 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

196.619 193.934

1.4

7.741 7.696

0.6

Industry Total

Containerboard Consumption (Thousands of Tons)

Christine Little

Year

Month

Percent Change Year-to-Date Percent Change

sushi Kitahara, the company’s Vice President and Direc- tor of Sales, and regional sales managers John Bacot, Greg Kukla and David Moulder. “We’re thrilled to welcome Christine to the MHIA team,” said Kitahara. “Her two decades of experience, understanding of our industry’s value chain, and lead- ership ability will prove to be invaluable as we continue to grow and deepen our customer partnerships across North America.” Little joins MHIA from Packaging Corporation of Amer- ica, where she served as a sales professional. Prior to that, she worked at Circle Incorporated and Badger Pack- aging. Little earned her MBA in marketing management and BA in marketing from Saint Martin’s University.

2020 2019

2.8208 2.6371

7.0

16.1361 15.9772

1.0

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Jun. May

2.0865 2.3246

-10.2

3.3 3.8

-13.2

Shipping Days

Year

Month

Year-to-Date

2020 2019

22 20

127 126

SOURCE: Fibre Box Association

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August 3, 2020

SETTING STANDARDS in Corrugated Solutions

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Safety Program Helps Zumbiel Packaging Reach OSHA Milestone Hebron, Kentucky based Zumbiel Packaging is cele- brating reaching 400,000 accident-free (referred to as “recordable-free” by OSHA) production hours due in no small part to its newest safety program,“Taking Safety to the Floor.” Spearheaded in 2019 by Mark Barton, VP of Oper- ations, this unique program helps to better ensure the safety of nearly 300 valued employees at their 500,000 square-foot facility in Hebron. “We had an effective pro- gram in place before, holding monthly safety meetings for each of our four shifts, but this program takes safety to the next level using what we call “Toolbox Talks,” said Barton. “The primary differences are first we now limit the size of the meetings to just a crew, usually 10-15 employees which is the ideal size for group interaction. And second, we an- nounce the specific safety topic in advance (a particular machine or process) and encourage our employees to ac- tively participate with questions, concerns, ideas for injury avoidance or threat reduction. By sharing the information in this forum together we can identify and mitigate injury risks.” The program is working. While Barton agreed it was easier and more time efficient to just have four big meet- ings once a month, he knows this approach allows the

company to zero in on potential risk areas more effectively than ever before. “Sure, we could have just continued with the big monthly meetings as our safety track record was good, but why settle for good when we can get to great?” Cascades To Close Ontario Containerboard Packaging Plant Kingsey Falls, Quebec, Canada based Cascades Inc. has announced that it will close its Etobicoke, Ontario Con- tainerboard packaging facility as part of the strategic repo- sitioning of its Containerboard platform in Ontario and the Corporation’s continuing global optimization initiatives. “An integral part of our strategic plan is to optimize our operational platform in Ontario,” said Charles Malo, Presi- dent and COO. “As a result, we will be gradually redeploy- ing production from the Etobicoke facility to our other units within the region. This decision will reinforce our opera- tional positioning for mid and long-term success by better aligning present production capacities, improving produc- tivity, reducing fixed costs and further strengthening our service offering for our valued customers.” Cascades’ Etobicoke Containerboard Packaging op- erations will permanently close no later than August 31, 2021, and the property will be put up for sale. Cascades will work to minimize the impact of this announcement on the 125 employees impacted by the closure.

www.boardconvertingnews.com

August 3, 2020

American Carton Expands Folding Carton Capabilities

Mansfield, Texas based American Carton Company has installed a six-col- or Komori Lithrone GX40 (GLX640) press with both conventional UV and UV LED to increase its folding carton print capacity. As folding cartons are the company’s primary product, and American Carton currently holds a number of certifications to meet the quality and U.S. FDA safety com- pliance requirements of its clients in the pharmaceutical, medical device,

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food, personal care products and retail markets, American Carton chose the GLX640 for its ability to meet both complex packaging requirements and high-end commercial print applications, making it possible to expand on what the company can offer its customers. Key to American Carton’s success is the full range of services it offers, from design and prototyping through printing to die-cutting, embossing and finishing. General Manager, Trent Tucker, expects the GLX640 to be- come the company workhorse. He noted, “The UV allows us to do val- ue-added specialty effects, whether it is raised UV or strike-through, and it also prints on non-absorptive substrates like foil. The GLX has so many features that are specific to folding cartons. One in particular is the ease with which it handles paperboard in the feed and delivery, versus a press that is really meant for paper but could run paperboard.” American Carton is a certified woman-owned company. Joe Harris, founder of Harris Packaging, a corrugated manufacturer in Haltom City, Texas, launched American Carton in 1992 with a partner and became the company’s sole owner in 1997. In 2006, the second generation of the fam- ily, Jana Harris and Jenise Harris Cox, joined the firm and three years later became majority shareholders in both American Carton and Harris Pack- aging. Currently, Jana Harris serves as CEO and Jenise Harris Cox as CFO. The company has grown steadily under their leadership and is recognized among the fastest-growing businesses in the region. American Carton has been operating Komori presses since 1999. The GLX640 is its third Komori press installation. The new press replaces an older Komori press and will run alongside an existing eight-color Komori GL40, also equipped with UV capabilities. “Even though we decided to CONTINUED ON PAGE 14 From left, American Carton’s Ron Kinney, First Pressman; Jenise Cox, owner and CFO; Jana Harris, owner and CEO, Trent Tucker, General Manager; and Danny Smithson, Plant Manager.

www.boardconvertingnews.com

August 3, 2020

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