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Sustainable packaging fuels growth and innovation in specialty papers, new Smithers data reveal

Demand for more greener packaging is aligning with innovation in industrial applications to future drive sales of specialty papers, according to the latest Smithers research.

Data from its new study – The Future of Specialty Papers to 2028 – show  production of these engineered premium paper grades will reach 26.52 million  tons in 2023, up from 24.23 million tons in 2018. Despite challenging economic conditions in several core markets, an overall positive growth trajectory is forecast by Smithers expert data modeling. Consumption of specialty papers is forecast to increase at a +2.1% compound annual growth rate (CAGR) across 2023-2028, adding an extra 2.97 million tons of demand, globally, over the five[۱]year period.

The specialty paper market remains febrile, recent changes in paper sales  patterns, in particular declining demand for office and printing grades, has seen several graphic paper assets retooled to make specialty grades. Modern papermaking innovations allow these to produce specialty grades on larger more efficient paper machines, threatening the margins of smaller established  specialist paper converters.

 

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VTT finds unprecedented extensible limits for formable cellulose-based food packaging to replace single-use plastic

Enabled by foam forming technology, VTT’s formable cellulose-based webs with 30% extensibility were used to make rigid packages using an industrial product packaging line. This opens up the manufacturing of a wide range of sustainable packaging solutions.

In a pilot-scale study to find alternative raw materials for rigid plastic packages, VTT Technical Research Centre of Finland has obtained unprecedented maximum limits of its highly extensible formable cellulose-based webs used for rigid packaging applications. The results enable the manufacturing of a wide range of sustainable 3D packaging solutions that were previously unattainable.

 

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SPG completes acquisition of complete packaging

Specialized Packaging Group (SPG), a leading, vertically integrated provider of protective packaging products, today announced the acquisition of Monroe, Michigan-based Complete Packaging (Complete), a portfolio company of the Spell Family Office. Complete provides custom-designed packaging solutions for a diverse array of end markets, including automotive, heavy truck, energy, aerospace, defense, heavy equipment, and general industrial.

SPG, one of the largest independent protective packaging manufacturers in North America, is a portfolio company of Altamont Capital Partners. The acquisition will enhance SPG’s existing capability set by expanding the company’s engineered packaging offerings and geographic reach while adding approximately 90 employees to its 1,600-person workforce. Complete’s leadership and full workforce will continue to operate in their current locations in Detroit and Monroe, Michigan.

 

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EETC secures Nine Dragons Paper Jingzhou ESP Project

Enelco Environmental Technology Co., Ltd. (EETC) today announced that it has been selected to supply electrostatic precipitators (ESPs) to Nine Dragons Paper (Hubei) Co., Ltd. The contract includes delivery of a 4,600 tds/d recovery boiler ESP and a 700 t/d lime kiln ESP as part of Nine Dragons’ Phase III expansion for chemical pulp production. The contract is the second collaboration between the two companies and the fourth time EETC has supplied ESPs to Nine Dragons Paper.

Nine Dragons Paper is the world’s top-ranking papermaking group with integrated forest and pulp operations. The company specializes in various eco-friendly packaging paper, high-quality virgin wood pulp, and upstream and downstream industry chains.

 

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Settlement agreed on insurance coverage for Norske Skog Saugbrugs

Norske Skog has worked closely with the insurance company, equipment suppliers, and other parties to determine the extent of damages following the rockslide on 27 April. The rockslide caused significant damage to buildings, cranes, machinery, and equipment associated with paper machine 6 (PM6). A settlement has now been reached between Norske Skog Saugbrugs and the insurance company regarding insurance coverage for both business interruption and property damage, estimated up to NOK 2.4 billion, which will jointly be covered by the insurance company, the Norwegian Natural Perils Pool, and reinsurers.

“The rockslide on 27 April this year was a traumatic experience for Saugbrugs employees, Halden residents, and Norske Skog. Fortunately, no one was physically injured in the rockslide, but PM6 and its associated building structures sustained substantial damage. After significant efforts from mill employees and other stakeholders, we are pleased to have reached an agreement with our insurance company for both business interruption and property damage, estimated up to NOK 2.4 billion. We have had an excellent dialogue and been treated very fairly by our insurance company throughout the process,” says Geir Drangsland, CEO of Norske Skog.

 

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Valmet has completed the acquisition of Körber’s Business Area Tissue

Valmet has completed the acquisition of Körber’s Business Area Tissue, the provider of innovative process technologies and related services for converting tissue jumbo reels into final tissue products. The closing of the transaction follows the agreement that was announced on July 7, 2023.

By combining the complementary offering and competencies of Valmet and the acquired business, Valmet creates the markets’ widest technology, automation and services offering for the growing tissue industry covering the entire tissue value chain from fiber to finished products.

The new Tissue Converting business will operate as a business unit integrated in Valmet’s Paper business line. It focuses on delivering and serving converting lines for rolled and folded tissue products, packaging equipment and on providing digital solutions and services. The acquired business enables Valmet to serve the tissue industry with wider expertise, process technologies and services covering end-to-end solutions including automation systems and flow control equipment.Pasi Laine, President and CEO of Valmet:

 

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Metsä Group and Valmet to develop a joint sustainability model for industrial investment projects

Metsä Group and Valmet are jointly developing a comprehensive operating model to ensure sustainability in technology and maintenance investments. The model will address various aspects of sustainability related to the environment, social responsibility and governance (ESG). It will be used to verify the sustainability of the process technology projects delivered by Valmet to Metsä Group and the related supply chains. Metsä Group and Valmet have set up a joint working group to develop and deploy the sustainability model. The goal is to adopt the model by 2027.

“As part of its strategic 2030 sustainability targets, Metsä Group is committed to ensuring that its supply network operates sustainably. Valmet is a large technology and service provider in the forest industry’s value chain, and its operations and procurement cover an extensive geographical area. By jointly scrutinising the chain’s sustainability in ever greater detail, we ensure that the forest industry’s positive impacts spread beyond the wood-processing value chain,” says Jari Voutilainen, Metsä Group’s SVP, Sourcing and Logistics.

 

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Ilim Group appoints new CEO

The Board of Directors appointed Aleksei Lomko as Chief Executive Officer of  Russian JSC Ilim Group effective from October 30, 2023. Aleksei Lomko is one of key opinion leaders in corporate law, management, legal support, and re-engineering of large companies.

 

Mr Lomko is a graduate of the Ural Legal Academy and holds MBA degrees from the Northwestern University (U.S.) and Hong Kong University of Science and Technology.

He joined Ilim Group in 2005 as Deputy Director Legal.

Aleksei stood at the origin of the corporate formation of Ilim Group. In 2007, he took charge of the Group’s Legal Department that provided legal support for the establishment of a Russian-American joint venture and its investment activity.

When the management architecture was changed in 2013, Mr Lomko was appointed Vice President Legal and later in 2018 became Senior Vice President Legal. He interacted directly with the Board of Directors and served as acting CEO on multiple occasions.

Aleksei received awards for his excellent performance, including those from Ilim Group’s Board of Directors.

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Gutex produces first fibers for insulation board with new Andritz fiber preparation system

Wood fiber insulation board manufacturer Gutex has successfully produced first fibers with its new ANDRITZ fiber preparation system in Eschbach, Germany. This is the second system ANDRITZ has delivered to GUTEX.

Oliver Bauch, Plant Manager, GUTEX, says: “The new line will perfectly support the environmentally friendly production approach for our ecological insulation board products. Thanks to the excellent cooperation and the great effort of the whole ANDRITZ team we were able to produce first fibers even ahead of schedule.”

Michael Rupp, Vice President for Panelboard Systems, ANDRITZ, adds: “We are proud that GUTEX again chose to collaborate with us and that we had the opportunity to provide them with our complete front-end technology.”

 

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Iberpapel Gestión reports a net profit of €۳۴.۹۶ million

Iberpapel reported operating profit of €۱۳.۷۷ million in the first nine months of the year, compared to €۶.۲ million in the same period of 2022. Having successfully defended its sales prices and margins, the company managed to eke out growth of 122% in a complicated environment marked by slowing demand in Europe and growing imports (especially from Asia), driving a drop in sales volumes and lower capacity utilisation.

Adding in the gain on the sale of forest land in Uruguay, total reported net profit rises to €۳۴.۹۶ million, year-on-year growth of 463.4%.

In 2023, the company expects to invest over €۲۲.۵ million 2023 in Papelera Guipuzcoana de Zicuñaga. As part of that work, the replacement of the lime kiln at the Hernani plant is slated for completion in October and will translate into cost savings, while considerably improving the facility’s environmental performance.

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Spain’s paper and paperboard imports decline slightly to $1.1M in July 2023

In July 2023, after two months of growth, there was significant decline in purchases abroad of paper and paperboard (creped, crinkled, embossed or perforated), when their volume decreased by -15.6% to 380 tons. In general, total imports indicated a pronounced increase from July 2022 to July 2023: its volume increased at an average monthly rate of +2.5% over the last twelve months. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period.

Based on July 2023 figures, imports increased by +35.8% against April 2023 indices. The most prominent rate of growth was recorded in January 2023 with an increase of 142% month-to-month. In value terms, paper and paperboard imports contracted to $1.1M (IndexBox estimates) in July 2023. Over the period under review, total imports indicated tangible growth from July 2022 to July 2023: its value increased at an average monthly rate of +2.4% over the last twelve months. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on July 2023 figures, imports increased by +21.8% against April 2023 indices. The pace of growth appeared the most rapid in August 2022 when imports increased by 79% m-o-m. As a result, imports attained the peak of $1.5M. From September 2022 to July 2023, the growth of imports failed to regain momentum.

 

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Suzano invests R$490 million to expand fluff pulp capacity

Suzano, the world’s largest market pulp producer, announces it will invest R$490 million (approximately US$100 million) in a new fluff pulp line.

The new capacity will enable Suzano to meet rising global demand and improve sustainability standards for absorbent, personal hygiene products, including baby and adult diapers, feminine hygiene, and pet pads.

This investment will support the conversion of a BHKP pulp line at Limeira mill into a flex machine to produce Suzano’s Eucafluff® or BHKP. Suzano’s annual installed capacity of fluff pulp production will increase from 100,000 to 440,000 ton, with production expected to begin by Q4 2025.

 

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AF&PA Releases Q3 2023 containerboard quarterly report

The American Forest & Paper Association (AF&PA) released its Q3 2023 Containerboard Quarterly report. According to the report, total Containerboard production in the third quarter of 2023 decreased 1% when compared to Q3 2022 and was down 8% compared to the same 9 months last year. Highlights include:

  • Operating rates for all major grades decreased compared to Q2 2023 while total production was up 4.2%; Q3 has one more production day than Q2.
  • Total production for export was up 16.2% from Q2 2023 and also up 16.3% from Q3 2022, though it was 10.7% lower year-to-date.
  • New supply of containerboard (domestic production plus imports) increased for the third consecutive quarter but was still down 7.1% year-to-date.
  • Mill inventories ended the quarter at 370,500 short tons, 11.6% lower than at the end of Q3 2022.
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Toscotec to supply drying section upgrade to Panda Paper Mills in Israel

Panda Paper Mills (1997), a subsidiary of Israeli leading manufacturer Sano Enterprises, has selected Toscotec for the supply of a complete drying section rebuild of PM1 at their Netanya production facility in Israel. PM1 produces high quality tissue from recycled fibres for the Away from Home market. The upgrade aims to substantially increase the machine’s drying capacity and is planned for the second half of 2024.

Toscotec will supply a TT SYD Steel Yankee Dryer of latest generation, the entire steam and condensate removal system and high-efficiency TT Hoods. The service package includes the engineering, erection supervision, training, commissioning and start-up assistance. The new dryer section is set to slash PM1’s energy consumptions and increase production efficiency.

 

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Asia Symbol brings in ABB to provide manufacturing execution system at three tissue mills in China

As Asia Symbol Group, one of the biggest wood pulp producers in China, expands its pulp and paper business into tissue manufacturing, it has selected long-term strategic partner ABB to deliver the ABB Ability™ Manufacturing Execution System (MES) and system integration at three of its tissue mills in China.

This latest contract for mills in Guangdong, Shandong and Jiangxi affirms the strong, long-standing relationship between ABB and Asia Symbol, part of the global RGE Group (Royal Golden Eagle).

In recent years, this has seen the provision of paper machine drives and quality control system (QCS) products, and the successful extension of ABB’s MES service to Asia Symbol’s three fine paper production lines in Guangdong.

 

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Suzano to Invest R$1.66 billion in new tissue paper mill

Suzano, the world’s largest producer of market pulp, announces on October 26th a series of projects aimed at expanding its installed production capacity and which will enhance its operational efficiency. It will invest R$650 million in the construction of a tissue paper mill in Espírito Santo, where it will also invest R$520 million to replace a biomass boiler. The company will also invest R$490 million to expand the supply of fluff pulp in São Paulo.

The total investment of R$1.66 billion, announced during the disclosure of the 3Q23 results, is aligned with Suzano’s strategic business avenues and underscores its commitment to constantly adapt its operations to evolving demand in Brazil and the global markets.

 

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Metsä Board commences change negotiations on possible temporary layoffs in Finland

Metsa Board, part of Metsa Group, will initiate change negotiations on possible temporary layoffs for its paperboard and BCTMP mills in Finland. The negotiations involve a total of approximately 1,100 employees at the Joutseno, Kaskinen, Kemi, Kyro, Tampere, Simpele and Äänekoski mills.

The possible layoffs would last a maximum of 90 days and could be implemented in several instalments during 2024.

The change negotiations will start in week 45 and are estimated to last two weeks. With the change negotiations, Metsä Board is preparing for a possible continuation of the adjustment of production to match the low delivery volumes, if the demand situation for paperboards does not improve in 2024. The allocation and amount of layoffs will be specified during 2024.

Metsä Board has announced on similar layoffs on May 17, 2023, which may continue until the end of 2023. The possible layoffs announced now would be scheduled for 2024, and will therefore have no impact on Metsä Board’s operating result for January–September 2023 and January–December 2023.

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Ilim Group enters into a strategic partnership agreement with China’s Xiamen C&D Inc

Ilim Group presented to Chinese partners its new pulp and paperboard mill (the KLB Mill) in Ust-Ilimsk. The Mill’s output will reach 600 thousand tons of kraftliner per year. Thereby, Ilim’s aggregate exports to China will surge to 2.4 million tons per year

Ilim has been operating in the Chinese market for over 27 years. More than 500 mills in 20 regions of China have become the consumers of Ilim’s products since the cooperation began. By developing in the world’s largest market through its go-to-market strategy, Ilim Group has become No. 1 supplier of virgin corrugating materials to China. At last year’s end,

 

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4evergreen announces its first Circularity Success Stories initiative

The 4evergreen Alliance today unveils five selected projects from its first “Circularity Success Stories” initiative, which showcases members’ remarkable efforts to increase the recycling rate of fiber-based packaging to 90% by 2030.

Three years on from its inception, 4evergreen invited members to share groundbreaking projects, whether developed individually or collaboratively, that have been spurred by the alliance and can serve as inspiring examples of fiber-based packaging circularity and sustainability.

A total of 22 inspiring projects have qualified, and five will be showcased during 4evergreen’s annual conference, “The Pathway to Circularity: from Guidance to Action,” on 20 November in Brussels and online.

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International Paper to permanently close its Orange mill

International Paper announced a series of actions to further strengthen and optimize its manufacturing system to meet customers’ needs. The company will permanently close its containerboard mill in Orange, Texas, and will permanently cease production on two of its pulp machines – the #20 machine in Riegelwood, N.C., and the #4 machine in Pensacola, Fla.

“Decisions like these are extremely difficult, because of the impact on our employees, their families and the communities in which we operate,” said Chairman and CEO Mark Sutton. “We are grateful to our employees in Orange, Riegelwood and Pensacola for their significant contributions to the company over the years. We are committed to providing severance benefits, outplacement assistance and more to help employees during this time.”

 

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