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Board Converting News, June 8, 2020

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BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years June 8, 2020 VOL. 36, NO. 23

The ‘New Normal’: Sustainability In A Post-Pandemic World BY TOM MURRAY So, if you have been following the news on the pandemic, you will have heard that when all is said and done, we will be entering a “new normal”. Frankly, I rather enjoyed the old normal. However, be that as it may be, let’s talk a bit about the new normal and how sustainability might play a role in defining it.

Coastal Group Acquires Veecor

Holland, Michigan based Coastal Group, a family investment management compa- ny, has acquired Veecor, a Louisiana based honeycomb packaging manufacturer. With the acquisition, Coastal Group has launched Coastal Honeycomb, LLC, which will produce the lightweight, durable packaging material in Holland and create an initial 12 jobs. The acquisition adds honeycomb to Coast- al Group’s range of packaging services that include design, testing, corrugated, packag- ing supplies and foam. “Coastal Honeycomb adds another com- petence to the growing suite of Coastal Group businesses all centered around an expertise in personal and product safety through high- ly engineered energy management systems,” said Paul Doyle, Coastal Group CEO. “Coast- al is the leader in protecting occupants in all forms of transportation and the products they are transporting.” Veecor has produced honeycomb pack- aging for over 50 years. In addition to pro- duction, Veecor manufactured and designed the honeycomb production equipment used by over 40 companies in the U.S. today. Key

First, let’s find an aspirational goal for what sustainability may look like in the new normal. We don’t have to look far to find one. Although the pandemic has been awful and terrifying, it has, unexpectedly, pro- vided for us a glimpse of what our environment might look like with a full expression of sustainability in the new normal. Some are referring to it as a natural experiment. With most of the globe in lockdown, flights canceled, cars idle and factories operating at base levels, we are see- ing significant reductions in the emission of air contaminants and the discharge of water pollutants. For example, in the canals in Venice, Italy, the water is so clear that for the first time in recent memory the locals are reporting that fish are now visible and that the swans have returned. For the first time in some 30 years, residents of Punjab, India, are enjoying the grandeur of the Himalayan mountain range, visible now from more than 100 miles away. Los Angeles, California, before and after the coronavirus lockdown. The re- duction of carbon monoxide and nitrous oxide emissions has resulted in the lifting of the city’s notorious smog. Photo: Getty/Reuters/Business Insider

CONTINUED ON PAGE 4

WHAT’S INSIDE Baysek, DPi Partner To Build Digital Printing Systems

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

ISM: Manufacturing Contracts, Economy Returns To Expansion False Arguments Are Promoting Consumer Recycled Content 2 PPC Signs On To Single-Use Plastics Joint Letter, Tech Paper

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

June 8, 2020

www.boardconvertingnews.com

Coastal Group Acquires (CONT’D FROM PAGE 1 )

Core Competency

members of the Veecor team are moving to Holland, Mich- igan to support the operation. Coastal Honeycomb was fully operational on May 26th and will hold all rights for the manufacture and sale of hon- eycomb equipment. The Coastal Group is a family-owned investment man- agement company with operating companies that include Coastal Automotive, Coastal Container, and TKP Invest- ments. Its mission is to invest for the long-term while creat- ing value for our employees, customers, suppliers, share- holders, and community. Greif Declares Q2 Dividend Delaware, Ohio based Greif, Inc., a world leader in industri- al packaging products and services, announced last week that its Board of Directors has declared quarterly cash div- idends of $0.44 per share on its Class A Common Stock, and $0.66 per share on its Class B Common Stock. The dividends are payable on July 1, 2020, to stockholders of record at the close of business on June 18, 2020. Founded in 1877 in Cleveland as a manufacturer of barrels, the company is now focused on producing indus- trial packaging and containers. In 2019, Greif purchased Caraustar for $1.8 billion

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June 8, 2020

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Baysek, DPi Partner To Build Digital Printing Systems BY JACKIE SCHULTZ

rugated Applications. Brownell says DPi was looking to expand its corrugated sales reach and manufacturing ca- pabilities through new OEM relationships. The company, which has been providing digital printing solutions to other printing and packaging industries for nearly 35 years, in- troduced digital printing machines for industrial corrugat- ed applications in 2018. Baysek, which manufacturers flat cutting die systems,

Nelsonville, Wisconsin based Baysek Machines, Inc. has signed a long-term contract with Fort Worth, texas based

DPi (Digital Print Inc.) to engineer, manufacture, sell and service stand- alone digital post-printing machin- ery. The partnership combines the technical competencies of DPi’s digi- tal printing technology with Baysek’s converting machine manufacturing. “It is a true strategic partnership

was also looking to expand. Mark Helbach, President, Baysek Ma- chines, says customers were ask- ing for low-cost printing solutions to complement Baysek’s diecutting technology, however he did not think the existing flexo or digital technolo- gy was a good fit.

Jackie Schultz

Mark Helbach

that will combine the best aspects of market knowledge, engineering/design, manufacturing and service of both Baysek and DPi,” says Stu Brownell, DPi Director of Cor-

With the DPi partnership, Baysek will focus on custom- ized stand-alone printers that print sheets to be fed into

any number of converting machines, includ- ing Baysek diecutters. “If set up correctly, one high-speed digital printer could feed multiple converting machines very efficient- ly,” Helbach says. The companies also have conceptual drawings for a direct integra- tion of a Baysek C170 diecutter, but to date, have not installed one direct. Customer Specific “One of the keys to the Baysek/DPi part- nership is the willingness to custom-build machines to fit customer’s specific applica- tions,” Brownell says. “We realize that dig- ital printing is new to industrial box makers and is evolving as customers begin to understand its poten- tial. DPi and Baysek want customers to ‘think outside of the box,’ and do not want to limit that thinking by only making specific machines.” The companies will design and build printing systems of any width with spot col- or configurations that can print at speeds up to 650 fpm and four-color process con- figurations in speeds up to 330 fpm. “Our focus is boxes printed on uncoated sub- strates printed with low cost water-based inks, which allow the box maker to have a cost structure similar to flexo, but with all of the advantages of digital printing,” Brownell says. Those advantages include no setups or wash ups, printing plates or flute crush and higher quality printing. “The proliferation of SKUs has created more shorter runs, which means more box Stu Brownell

CONTINUED ON PAGE 34

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June 8, 2020

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ISM: Manufacturing Contracts In May, Economy Returns To Expansion Economic activity in the manufacturing sector contracted in May, and the overall economy returned to expansion af- ter one month of contraction, say the nation’s supply exec- utives in the latest Manufacturing ISM Report On Business. The report was issued last week by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Manage- ment (ISM) Manufacturing Business Survey Committee: “The May PMI registered 43.1 percent, up 1.6 percentage points from the April reading of 41.5 percent. This figure in- dicates expansion in the overall economy after April’s con- traction, which ended a period of 131 consecutive months of growth. The New Orders Index registered 31.8 percent, an increase of 4.7 percentage points from the April read- ing of 27.1 percent. “The Production Index registered 33.2 percent, up 5.7 percentage points compared to the April reading of 27.5 percent. The Backlog of Orders Index registered 38.2 per- cent, an increase of 0.4 percentage point compared to the April reading of 37.8 percent. “The Employment Index registered 32.1 percent, an in- crease of 4.6 percentage points from the April reading of 27.5 percent. The Supplier Deliveries Index registered 68 percent; though down eight percentage points from the

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

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

31.964 32.653

-2.1

7.611 7.775

-2.1

Industry Total

Year-to Date

April 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

130.945 127.545

2.7

7.703 7.592

1.5

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2020 2019

2.6579 2.6904

-1.2

10.8562 10.4940

3.5

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Apr. Mar.

2.2914 2.1278

7.7

3.6 3.3

9.1

Shipping Days

Year

Month

Year-to-Date

2020 2019

21 21

85 84

SOURCE: Fibre Box Association

CONTINUED ON PAGE 37

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June 8, 2020

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ICCA Announces Officers, New Board Members

The International Corrugated Case Association (ICCA) Board of Directors elected Jan Klingele, Managing Part- ner at Klingele Paper and Packaging Group, as its 2020- 2021 chairman during its Board of Directors Meeting held by conference call on Thursday, May 28, 2020. Additional officer elections include First Vice Chairman Michael Lafave, Kruger Packaging LP; Second Vice Chair- man Yosuke Kawamoto, Rengo Company Limited; Immedi- ate Past Chairman Thomas Hassfurther, Packaging Corpo- ration of America; President, Dennis Colley; Vice President of Europe, Angelika Christ; Vice President of Asia, Ryo Ha- yama; and Vice President of the Americas, Rachel Kenyon. The association also acknowledged the approval of new Board members, including Fady Gemayel of Ge- mayel Freres SAL, representing the European Federation of Corrugated Board Manufacturers (FEFCO); Jose Lewis, Global Packaging Group; Markus Gaertner, Mondi; and Yosuke Kawamoto, Rengo Company Limited, represent- ing Leadership Members. ICCA was formed in 1961 to provide member services and activities that can be most effectively conducted by an international organization. It enhances the work of its members and contributes to the well-being of the world- wide corrugated packaging industry. Visit iccanet.org .

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June 8, 2020

False Arguments Are Promoting Post-Consumer Recycled Content BY JOHN MULLINDER

Don’t get me wrong. I fully support the use of more post-consumer ma- terial in packaging and products. Just not some of the BS that goes with

it. And this is important because governments are stipulating post-consumer content without knowing all the facts. Here are some of the false claims being made: False Claim # 1: That post-consumer is ‘environ- mentally better’ than pre-consumer content. Set- ting aside the big question of what ‘environmentally better’ actually means, I am not aware of any scien-

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tific evidence that one is ‘better’ than the other. In fact, they are really the same material, just coming from different places along the supply chain. In the paper industry, for example, there is no difference in the way that pre-consumer and post-consumer paper or board is originally manufac-

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tured in a mill. It is exactly the same material with the same environmental production inputs. The only difference is that they come back to the recy- cling mill from a different place (one from a converting operation and the other from the back of factories, supermarkets, offices or homes). In fact, it could be argued that pre-consumer has a lower environmental impact overall because it travels a shorter recycling loop back to the mill. False Claim # 2 : That post-consumer is ‘more circular’ than pre-con- sumer. Not true. Isn’t the circular economy all about minimising waste? So, what could be more circular than minimizing waste at the converting stage? Pre-consumer material is like the off-cuts left after you cut a sewing pattern from cloth. Since you’ve already paid for the cloth, you make sure your design makes maximum use of the cloth you have. And what you have left over you send back (in the paper industry’s case) to a mill to be incorporated into another recycled content product. Nothing is wasted. Sounds pretty circular to me. False Claim # 3 : That post-consumer is ‘better’ because it replaces virgin material. Hogwash. Both pre-consumer and post-consumer replace CONTINUED ON PAGE 14

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June 8, 2020

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