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Board Converting News, November 9, 2020

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BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years November 9, 2020 VOL. 36, NO. 45

Return To Normalcy: Economy Continues Recovery Post-COVID BY PHILIP PERRY Relief is in sight. Battered by the pandemic and scrambling to shore up finances, businesses can look forward to an easing of the pain over the next 12 months. Economists anticipate a gradual but noticeable recov- ery fueled by a surge in corporate profits, a strong housing market, and the successful roll out of a vaccine.

SupplyOne Acquires Riverside Paper Co.

Newtown Square, Pennsylvania based Sup- plyOne, Inc., a consolidator of specialty pack- aging manufacturers, packaging equipment and supply distributors, announced that it has acquired Riverside Paper Co., Inc., a privately held business in Miami, Florida. Founded in 1973, Riverside Paper Co. Inc. is a family-owned corrugated manufacturer and packaging distributor that has earned distinction as a premier industrial packaging manufacturer, converter, and distributor in South Florida. In addition to custom corrugat- ed and die-cut corrugated products, the com- pany provides a comprehensive selection of shipping, packaging, warehouse, and mainte- nance products to its customers with next-day delivery and shipping from Distribution Cen- ters in Miami, Tampa, and Orlando. Riverside also sells and services packaging equipment throughout the state of Florida. SupplyOne entered the Florida market- place in 2012 with the acquisition of Melco, Inc., in Tampa, and has increased its footprint within the state. The acquisition of Riverside Paper is SupplyOne’s second in Miami. The company acquired GTI Industries, Inc. in 2019.

“The COVID-19 recession is over, and the economy is currently in an early-cycle expansion,” says Sophia Koropeckyj, Managing Director of Industry Economics at Moody’s Analytics, a research firm based in West Chester, Pennsylvania. ( economy.com ). The healthier the economy, the better for business profits. And Moody’s expects the nation’s Gross Domestic Product (GDP) to increase at a four percent clip for 2021. That’s a welcome rebound from the pre- vious year’s decline, expected to come in at four percent when figures are finally tallied. (The GDP, the total of the nation’s goods and services, is the most commonly accepted measure of economic growth.) Faster economic growth, says Moody’s, should in turn help boost corporate profits by an expected 17.1 percent in 2021--a dramatic turn- around from the 13.8 percent decline of the past 12 months, and reason for optimism about a return to the aggressive capital expenditures so critical to an economic rebound. Slow And Steady For most businesses, the return to normal should be gradual. During The economy is currently in an early-cycle expansion, according to the Man- aging Director of Industry Economics at Moody’s Analytics.

CONTINUED ON PAGE 4

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x Golden West Acquires Two California Produce Packagers 10 ND Paper To ‘Transform’ ME Mill, Expand Packaging Grades Unicorr Packaging Group Opens New Design Center In CT 18 ISM: Manufacturing Expands Again In October

CONTINUED ON PAGE 22

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

Peachtree Packaging & Display for being named a 50 P.O.P. Company by CREATIVE Magazine Top

“Advantzware's corrugated ERP plays a big role in helping to optimize our workflow on a daily basis. We are extremely grateful for the support and innovation they provide."

Chad Wagner, CEO Peachtree Packaging and Display

November 9, 2020

www.boardconvertingnews.com

Supply One Acquires (CONT’D FROM PAGE 1 )

Core Competency

“Riverside’s strong customer focus mirrors our own,” explains William Leith, CEO, and President of SupplyOne. “Throughout their history, the exceptional team at River- side has earned their customers’ trust by providing the highest levels of service, quality products, and innovative solutions designed to enhance their customers’ profitabil- ity. We look forward to welcoming their outstanding em- ployees to our team.” SupplyOne is one of the largest independent packag- ing companies in the United States and has made custom- er service central to everything it does. Since 1998, Sup- plyOne’s operating model has been built around providing custom packaging solutions to midsized manufacturers, food processors, and distributors. Their unique business model includes custom corrugated manufacturing, plastic thermoforming, packaging equipment and supplies, and services from a single point of contact. Visit www.supplyone.com for more information. CORRECTION: Arkansas, NOT Arizona The right column article on page 1 in the November 2 issue of Board Converting News , The BoxMaker To Acquire Tan- go Press In Arizona, was incorrect. Tango Press is located in Springdale, Arkansas. We apologize for the error.

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November 9, 2020

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Golden West Packaging Acquires Two Produce Packagers In CA Golden West Packaging Group, a West Coast special- ty packaging business, announced it has acquired Berry Pack and Progressive Packaging Group, two independent, California based fresh produce packaging and distribution providers with operations in California, Arizona and north- ern Mexico. Berry Pack, based in Salinas, California, provides branded, hand-fold, custom-design, field-ready packaging systems including primary, secondary, and tertiary pack- aging. The business converts 350-million-square-feet of corrugated sheets annually through WestCorr, its facility in Oxnard, California. In addition, Berry Pack operates four assembly and distribution operations, with two located in Oxnard and one each in Santa Maria, California, and Wat-

sonville, California. Distribution operations include plan- ning, warehousing, inventory management, logistics and execution. Progressive Packaging Group, also based in Salinas, provides corrugated packaging, flexible packaging, ties and bands. In addition, the business operates four assem- bly and distribution operations located in Salinas, Oxnard, Santa Maria, California, and Yuma, Arizona. Services in- clude item forecast and usage management, research and development, project management, direct shipment track- ing, real-time inventory management, customized report- ing, on-time delivery, short haul deliveries, end-of-season transfers, and storage. Commenting on the acquisition, Golden West Presi- dent Brad Jordan said, “Golden West focuses on acquiring well-established packaging businesses and further devel- oping them into high-performing partners to their custom- ers. Berry Pack and Progressive Packaging Group are ex- cellent examples of this strategy.”

Berry Pack and Progressive Packaging Group founder Barry Johnston said, “This is an exciting development for our customers and employees. Joining Golden West will enable Berry Pack and Progressive Packag- ing Group to invest in, enhance, and accel- erate our customer experience.” Progressive Packaging Group co-found- er Eli Riddle added, “Our customers have come to expect that we listen, understand, and respond to their unique needs. Golden West understands this and has their own track record of investing in and further de- veloping great customer service systems and teams. This is a very positive develop- ment for our customers.” This is Golden West’s fourth acquisition, following its February 2017 acquisition of five northern California-based packaging providers (Capital Corrugated, Heritage Solutions, Packaging Innovators, Package One, and Cal Sheets), its February 2018 ac- quisition of southern California based Fleet- wood-Fibre Packaging & Graphics, and its March 2019 acquisition of Washington State-based Allpak Container. Golden West was founded in 2017 by Lindsay Goldberg in partnership with Ste- ven Klinger, Steve Strickland, and Craig Hunt, who have worked together for more than three decades building high-perfor- mance packaging businesses. The execu- tives are also involved with Lindsay Gold- berg’s investments in Crown Paper Group and specialty papers manufacturer Pixelle Specialty Solutions, and were previously senior executives with Smurfit Stone Con- tainer, Georgia-Pacific, and Unisource.

www.boardconvertingnews.com

November 9, 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

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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

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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

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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

TAPPI: Last Call For 2020 ‘What’s New: Tech Talks’

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

Join some of the industry’s top leaders for the next, and final, installments of the virtual series “What’s New: Tech Talks” on Tuesday, November 10, and Thursday, Novem- ber 12. This innovative series showcases some of the lat- est and most innovative products being brought to the market today and has become an industry favorite. This free, virtual learning series is part of 2021 Super- CorrExpo (SCE), the industry’s most powerful corrugated event in the western hemisphere hosted jointly by TAPPI and AICC. Tech Talks features solution-focused talks for seven-minutes each, followed by live question and answer sessions. This interactive format offers participants a one- on-one way to engage with exhibitors, and one another, in a chat format. Exhibitors on Tuesday, November 10, are: Lewisburg Printing Company, Metsä Board Americas Corporation, Mid America Paper Recycling, OM Partners and Tilia Labs. Exhibitors on Thursday, November 12, are: Teufelberger Ges.m.b.H, The JM FRY Company, Lenze Americas, Two10 Technologies and National Steel Rule Co. Both sessions begin at 10:00 a.m. EST. For more infor- mation, contact Kristi Ledbetter at [email protected] or (404) 271-6780, or Cindy Huber at [email protected] or call (877)836-2422.

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

34.858 32.039

8.8

8.300 8.010

3.6

Industry Total

Year-to Date

September 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

300.546 294.203

2.2

7.868 7.783

1.1

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2020 2019

2.8485 2.6312

8.3

24.5900 24.2028

1.6

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Sep. Aug.

1.9511 1.9155

1.9

2.9 2.9

0.0

Shipping Days

Year

Month

Year-to-Date

2020 2019

21 20

191 189

SOURCE: Fibre Box Association

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November 9, 2020

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ND Paper To ‘Transform’ ME Mill, Expand Packaging Grades Oakbrook Terrace, Illinois based ND Paper reported that it is implementing a series of transformations at its Rumford Division in Maine to further expand into packaging grades. In its current configuration, the fully integrated Rumford Division operates three paper production lines, kraft and mechanical pulping assets, and a pulp dryer; its product mix is heavily weighted toward bleached grades serving printing and writing (P&W) markets. With the COVID-19 pandemic battering economic activity across the world, demand for P&W papers has plummeted; coated wood- free and coated mechanical papers – primary Rumford grades – are expected to decline 23.5 percent and 30.3 percent year-over-year, respectively, equivalent to over 1.4 million tons of output. To ensure a viable, profitable future for the Rumford Di- vision, ND Paper will be transforming the mill to increase its product flexibility and shift further into packaging grades: • Commissioning of an unbleached recycled pulp line to provide fiber flexibility to the R12 and R15 paper ma- chines • Conversion of its R15 paper machine from P&W papers into lightweight, high strength kraft linerboard products • Expansion of R12 paper machine capability to include unbleached recycled bag and converting papers, in

addition to its current offering of bleached and un- bleached papers • Continued operation of the R9 pulp dryer, including expansion into unbleached softwood kraft market pulp • Permanent curtailment of mechanical pulping opera- tions and R15 coating and supercalender assets The newly rebuilt R10 paper machine will continue to deliver high-quality P&W and Specialty products for ND Paper’s base of existing customers. Oxford C1S, Orion, Vi- sion, Escanaba, and Dependoweb grades currently pro- duced on R15 will be transitioned to the R10 and Biron B26 assets, minimizing disruption to loyal customers. Addition- ally, the R12 machine, with both bleached and unbleached capability, will manufacture Rumford Offset, as well as re- cycled and kraft papers for multi-wall bags, retail bags, and converting applications. “The onset of this unprecedented demand decline happened much more quickly than could possibly be an- ticipated,” said Group Deputy Chairman & Chief Executive Officer Ken Liu. “However, while other mills have exited the market and closed their doors, ND Paper is repurpos- ing the Rumford Division for a competitive future. Moving our largest Rumford machine into packaging grades helps to balance the deteriorating P&W market in North America, while simultaneously positioning us into bigger and more stable packaging paper markets.” ND Paper expects the transformation to be completed by the end of 2020.

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November 9, 2020

Unicorr Packaging Group Opens New Design Center In North Haven, CT

In an ongoing effort to develop successful solutions for clients’ brands and messaging, Unicorr Packaging Group has opened a comprehensive, state-of-the-art design center in North Haven, Connecticut. This new facil- ity enhances packaging development capabilities and merges structural and graphic designers into a collaborative and dedicated environment serving all of Unicorr’s corrugated production plants.

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

According to Gary Lenkeit, Corporate Creative Director of the Design Center, Unicorr focuses on creativity and innovative thinking while utilizing the latest CAD and graphics software systems to accommodate a wide range of client needs. “The future of corrugated products has just begun,” Lenkeit said. “With a rapidly expanding e-commerce frontier, combined with the growing im- portance of environmentally acceptable packaging, Unicorr is committed to ‘reinventing the box.’ This includes using Unicorr’s complete range of manufacturing capabilities to produce cost-effective solutions for e-com- merce, retail and retail-ready packaging that captivates consumers, pro- tects the product, is environmentally friendly, and reduces labor costs and packaging waste. We can develop several virtual solutions in less time than a single physical sample. After rendering approval, we will create a prototype to ensure production results.” Before joining Unicorr, Lenkeit worked in New York City and Chicago creating innovative, multi-media packaging for a number of Fortune 500 companies and was Global Design Director for Graphic Packaging’s Con- sumer Products Division (CPD) in the Midwest. His notable awards include a Grammy for Best Recording Package of a Bruce Springsteen music col- lection. Beyond corrugated packaging and displays, Unicorr’s team works with many materials such as wood, foam, and plastic corrugated for a variety of applications and end uses. The design team also collaborates with tech- nology providers to enable our customers to utilize new trends in connect- ed packaging such as embedded QR codes, VR applications, and the use of specialty inks to take packaging to the next level. Unicorr continually pushes the envelope by creating features that make packaging tamper- Unicorr Packaging Group focuses on creativity and innovative thinking while utilizing the latest CAD and graphics software systems.

CONTINUED ON PAGE 14

www.boardconvertingnews.com

November 9, 2020

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