BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years October 19, 2020 VOL. 36, NO. 42
Customer Commentary: Price Is Not The Only Factor BY ANONYMOUS
Opus Packaging Acquires Arvco’s Assets In Indiana Opus Packaging – Indianapolis has an- nounced that it has entered into an agree- ment to acquire significantly all of the assets of Arvco Container Corporation’s Indianapolis location (Arvco Indianapolis) and has offered employment to all current Arvco Indianapolis employees, effective October 5, 2020. The acquisition demonstrates the Opus Packag- ing Group’s (Opus) commitment to the India- napolis market and strengthens its ability to enhance the performance of its customers. Arvco Container Corporation (Arvco) pur- chased the Arvco Indianapolis operation in 2006. Earlier this year, a key Arvco Indianap- olis customer moved their manufacturing re- quirements to Michigan. With their lease ex- piring at the end of the year and the impact of the COVID-19 pandemic, Arvco decided to find a company willing to purchase the oper- ation. Arvco’s President and CEO, Greg Arvani- gian, said, “After exploring several options, Arvco concluded that Opus provided the best fit for their employees and customers. Arvco and Opus have had a long-standing busi- ness relationship that spans two generations.
Editor’s Note: The following article was written by a customer of Ari- zona Corrugated Container, which has requested that the customer remain anonymous : We are a small manufacturer of special boxes for the fast-food in- dustry with multiple out-of-state locations. When our Phoenix, Arizo- na, production’s break-even caused cash-flow concerns, we decided to outsource, similar to Amazon, all manufacturing (but not sales and marketing) to the largest independent box maker in the state, Arizona Corrugated Container (ACC). ACC had a similar entrepreneurial culture, their own new corrugator and state-of-the-art machinery. Our strategy was an option to selling the company. At the request of this valued supplier, we have omitted our identity but not our business philosophy, which I am explaining here. As a small business, we have always encouraged entrepreneurial behavior. As an integral part of our culture, this attitude of independent thinking has served us well for many years. For a while, our spending operated under this philosophy. It was decentralized and conducted at the local level with little emphasis on combining our buying power. Buyers at each production site were responsible for purchasing our packaging requirements and received performance ratings based upon the perception of how well they managed price. They operated under the old mentality of getting three bids, taking the lowest bid and then going back and telling all bidders they had to do better. It was a game that we had to play. But who was the winner of this game? No one. As a result of these adversarial and strictly price-driven business practices, it was not un- common to often switch supply base in the interest of obtaining a bet- ter price point. This emphasis on price encouraged other behaviors: • Use of several suppliers per site to maintain that competitive spirit, and make sure no supplier felt too secure in owning the business. • Volume changes amongst suppliers would be used as purchasing power to reward thrifty bidders and punish those who didn’t sharp- en their pencils enough. On the other side, a small overall increase in sales price can offset a much larger reduction in volume. Are Good Suppliers As Important As Customers? One doesn’t have to be a business graduate to understand that such behaviors between seller and customer did not create efficien- cies in either production or logistics for the manufacturing facility. As a CONTINUED ON PAGE 22
CONTINUED ON PAGE 4
WHAT’S INSIDE 6 Sonoco Announces Price Hike For Corrugated Medium Grades 12 Hood Container To Hire 100+ Employees In Owensboro, KY 14 AICC Announces Winners Of Student Design Competition 16 Domtar To Convert TN Mill To Produce Containerboard
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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October 19, 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
Opus Packaging (CONT’D FROM PAGE 1 )
While Arvco regrets the need to withdraw from the India- napolis market, they are committed to assisting Opus in making this transition as smooth as possible for all of the parties involved.” “For Opus’ customers, this acquisition enhances our ability to serve their customer’s packaging needs by ex- panding their reach in the Midwest region and tapping into the expertise and expanded capabilities of the exist- ing facilities within the Opus Packaging Group,” said Opus Packaging Group co-owner Butch Stoner. “Opus has been providing innovative packaging solutions to its customers since 1984, and opened a brand new facility in Whites- town, Indiana, in 2019. With a vision of becoming a world class provider in packaging solutions while leading in the markets it serves, the acquisition of Arvco Indianapolis only puts us closer to achieving that goal.” Opus Packaging Group is comprised of five wholly owned entities: Opus Packaging – Indianapolis in Whites- town, IN; Opus Packaging – Grand Rapids in Caledonia, MI; Opus Packaging – Jackson in Jackson, MI; Opus Pack- aging – New Bremen in New Bremen, OH; and Opus Pack- aging – Wabash in Mt. Carmel, IL. “We are excited about this change and confident that the combination of the Opus Packaging and Arvco Indi- anapolis businesses will be beneficial to our valued em- ployees and customers,” said Stoner.
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 /rsmith@nvpublications.com Len Prazych at 518-366-9017 / lprazych@nvpublications.com
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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
TRUST THE INDUSTRY LEADER
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
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.
THE BEST BUNDLER SOLUTIONS FOR SPECIALTY FOLDER GLUERS To learn more about our corrugated solutions visit www.eammosca.com/corrugated or contact us at info@eammosca.com | 844-859-6968
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
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October 19, 2020
Sonoco Announces Price Hike For Corrugated Medium Grades Hartsville, South Carolina based Sonoco announced last week that it is implementing a $50/ton increase on all domestic and export corrugating medium grades ship- ping from its Hartsville mill. The prices are effective with shipments on and after November 2, 2020. According to Tim Davis, Division Vice President and General Manager, Paper and Adhesives, U.S./Canada, Sonoco is responding to changes in market demand and order backlogs, in line with other North American containerboard producers. According to an industry analyst, the company’s focus on optimizing businesses through productivity improve- ment, standardization and cost controls will also aid its performance in the near term. In addition, the stable price of OCC is likely to offset the negative impacts of price/cost and improving operating margins. Sonoco expects its Consumer Packaging segment to gain from the demand from stay-at-home customers ow- ing to the pandemic. Approximately 80 percent of the segment’s sales flow in from food packaging, where the company is witnessing increased orders. Further, paper- board operations in North America are likely to be rela- tively steadier as elevated demand for the tissue and the towel market will help offset declines from some industrial converted-product businesses.
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October 19, 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 · comercial@al-gar.com 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 info@chicagoelectric.com 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.
CORR24usa.com
ance from steam to paper surface results in fast heat flow
NAM: Seven Of Top Ten Export Markets Grew In September
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month August 2020
According to Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufacturers (NAM), the J.P. Morgan Global Manufacturing PMI expanded in Septem- ber at the fastest pace in 25 months. In September, seven of the top 10 markets for U.S. man- ufactured goods had expanding manufacturing sectors, up from six in August and just one (China) in May. As such, these major trading partners have continued to improve after plummeting in April to levels that were either the worst since the Great Recession or at record lows. The World Trade Organization (WTO) predicts that global trade volumes could fall 9.2 percent in 2020, an improvement from the previous estimate of a 12.9 percent decrease this year. WTO predicts that global trade should rebound, rising by 7.2 percent in 2021. The U.S. trade deficit rose to the highest level since August 2006, with goods imports rising faster than the in- crease in goods exports. The goods trade deficit rose to a new record. At the same time, the service-sector trade surplus dropped to its lowest level since January 2012. In non-seasonally adjusted data, U.S. manufactured goods exports totaled $622.72 billion through the first eight months of 2020, dropping 17.31 percent from $753.07 billion for the same time frame in 2019.
Year
Actual
Percent Change Avg Week Percent Change
2020 2019
34.285 34.495
-0.6
8.163 7.840
4.1
Industry Total
Year-to Date
August 2020
Year
Actual
Percent Change Avg Week Percent Change
2020 2019
265.688 262.164
1.3
7.814 7.756
0.7
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2020 2019
2.8061 2.8427
-1.3
21.7415 21.5716
0.8
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Aug.
1.9155 2.0214
-5.2
2.9 3.2
-9.4
Jul.
Shipping Days
Year
Month
Year-to-Date
2020 2019
21 22
170 169
SOURCE: Fibre Box Association
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October 19, 2020
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Domino Digital Printing Continues Its Support Of Corrugated Sector Gurnee, Illinois based Domino Digital Printing continues to grow its digital business by developing and supporting the corrugated sector. Matt Condon, recently promoted to Business Develop- ment Manager, Corrugated, has been with Domino for over 10 years, including roles as Project Manager, Product Manager, and most recently OEM Manager. He has an extensive 30-year back- ground focusing on electronic and digital printing throughout his ca- reer. Prior to Domino, he held po- sitions at Fujifilm Graphic Systems, London Litho, and Scitex America. He has expertise in software applications, digital printing, and traditional print. “I am very excited,” said Condon. “Domino enters this dynamic market segment with the new X630i digital aque- ous inkjet corrugated press, utilizing a print engine that has been developed from a proven, reliable inkjet plat- form. Couple that with a strong and stable global compa- ny that has over 40 years of innovation and continuous growth and provides local service and support to help its customers succeed and you have a winning combination.” Matt Condon
Dale Rawhoof, who transitioned to Technical Product Manager, Corrugated, has been with Domino for 31 years,
including roles as Electrical Tech- nician, Technical Trainer & Appli- cation Specialist, Project Manager, and most recently, Product Manag- er. He has been with the company his entire career and a team mem- ber for more than three decades. “I’m very grateful for the more than 30 years I have been with
Dale Rawhoof
Domino and I’m excited about my new role as Technical Product Manager for our X630i press,” said Rawhoof. “I look forward to being part of the team that brings our prov- en digital technology to the corrugated market.” “Dale brings to this new role a wealth of experience in digital inkjet technology with an excellent background in working with and managing customers through new technology implementations,” said Condon. “His past suc- cess makes him an excellent candidate for this new role. Our customers are our business partners, and we take a 360-degree approach to facilitate and support positive and successful relationships to help them win, help them make more money, and help them increase their profit- ability. We do that within the labels sector, and we will do that within the corrugated sector. Our customers success is paramount.” Visit dominodigitalprinting.com for more information.
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Money making machine
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…MORE PROFIT per job. …MORE CAPACITY in a given day. …MORE CORRUGATED out the door faster. …MORE MONEY in your pocket sooner.
Why DOMINO? • 40+ years of inkjet technology experience • Financially strong and stable • Heavily invested in digital technology • 1,000 industrial inkjet installations • Service & Support,Trusted Business Partner • Small footprint (10’H x 38’W x 21’D) • Change SKUs & print jobs on the fly • NO PLATES to make, mount, or inventory • Less downtime, MORE UPTIME • Print SPEED up to 246 fpm • AQ95 aqueous ink, POLYMER-based • Prints on COATED & UNCOATED stocks • Swiss Ordinance & Nestle COMPLIANT • Environmentally FRIENDLY • LOWER Total Cost of Ownership Why X630i?
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800.444.4512
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Hood Container To Hire 100+ Employees In Owensboro, KY
“It’s a great opportunity for entry-level production and packing associates,” said Karen Wilhite, Regional Manager of Hire Dynamics, the company helping fill the positions. “It’s a really good family-feel environment and they get re- ally good reviews. It’s a great way to earn extra money, especially for the upcoming holidays.” Working hours are from 7:00 a.m. to 3:30 p.m. daily, and overtime is optional. Wilhite said there’s plenty of potential for extra work. During peak season, workers can nearly double their pay with the various incentives offered. Wilhite also noted that employees are eligible for ben- efits from day one and a one-week vacation package after 1,900 hours. They can also earn unlimited referral bonuses of either $50 for entry-level positions or $100 for special- ty positions. She also said the advantages of working at Owensboro Hood Container go beyond the paycheck and benefits, though. “The team and management have a passion for the people that are there every day to get the product out and show that Owensboro is a great place to work,” she said. “It’s making everyone happy. It’s about the well-being of the employees. It’s about mentoring and offering steward- ship. It’s making sure those employees are so thought of at that level that they want to make a difference in their lives.” Those interested in applying can go to work4hd.com . “It’s a great way to get in at the ground level at a compa- ny that really wants really strong people moving forward,” Wilhite said. “This is a great place for work-life balance.”
After exponential growth under new ownership the last two years, Hood Container, which is operating as Pack- aging Unlimited after acquiring the company three years ago, is looking to hire more than 100 employees to fill roles ranging from forklift operators to supervisors, according to a report in The Ownesboro Times . Packaging Unlimited is considered a “mill-to-market” packaging company, which means they oversee the man- ufacturing process from the mill to the end user. Hood Container Corporation is the 8th largest paper- board company in the United States. Along with paper mills, Hood Container holds a network of corrugators, con- verters, packaging manufacturers, display producers and contract packaging facilities. The entire Owensboro Hood Container team has been instrumental in a culture change over the last two years. Two faces of the new leadership in Owensboro include Operations Manager Issac Ralph and Production Manager Danny Clouse. “We’ve grown so rapidly under Hood Container that we need more people here to work,” Ralph said, noting they’ve doubled their growth since 2018. The company is seeking forklift drivers, packaging associates, line work- ers, quality technicians, team leaders and supervisors.
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AICC Announces Winners Of Annual Student Design Competition, J. Troll Scholarship AICC, The Independent Packaging Association has announced the win- ners of the 2020 Annual Student Packaging Design Competition and the recipients for the 2020-2021 J. Richard Troll Scholarship. All of the winners in the student design competition receive a mon- etary award and plaque. The J. Troll scholarship recipients receive a plaque and a monetary scholarship is sent to their respective schools for the next calendar year.
Cosmo DeNicola Chairman, Amtech Software
Packaging ERP Algorithmic Scheduling Web-Based Access Online Customer Portals
Due to the challenges that students were facing because of Covid-19, AICC modified the competition. This year, students did not need to send a physical entry. Students had to digitally create and design a “Golf Gift The design team from Dunwoody College of Technology won First Place for its 2020 Ryder Cup promotional “Golf Gift Package.”
Paperless Workflows Mobile Sales Systems Digital Signage Production Monitoring Mobile Logistics Management Analytics & Reporting Cloud Hosting IT Management Services Cyber Security Management
Package” shipper to promote a golf tour- nament like the 2020 Ryder Cup. Struc- turally, the task was to build a box that could safely ship two traditional 16-oz beer glasses, three golf balls, 100 golf tees, and a baseball hat. Graphically, they needed to design their own tournament logo, pro- mote the tournament and its location, and give the customer a “wow” factor when unboxing.
600 + Plants 60,000 Users North America Latin America
The First Place winners were Sabelle Conradi, Cory Nyholm, Suzy Lempe, Linn Ericksen, Riley Mingo, Jason Hetland, and Emma Hall from Dunwoody College of Technology located in Minneapolis, MN. The Second Place winners were Etai Chen-Zion, Brooke Hager, Sarah Costantini, and Ren Blanding from Cal- ifornia Polytechnic State University at San Luis Obispo. AICC also announced the recipients of the 2020-2021 J. Richard Troll Scholarship. The Graduate Student first place winner is Erin Clark of Clemson University. The Undergraduate Student first place winner is Jaiden Gorniak of Appalachian State University; the second place winner is Jonathan Porter of Virginia Tech; and the third place winner is Nirav Chajed, of California Polytechnic State University of San Luis Obispo. For more information on the annual AICC Student Packaging Design Competition and the J. Richard Troll Scholarship, contact Laura Mihalick at (703) 836-2422 or lmihalick@aiccbox.org. The design team at Cal Poly won the second place award.
14
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October 19, 2020
STOP GUESSING.
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WHAT IF?
Get Answers-Be Proactive. • There’s a board increase or decrease? • My volume goes up or down? • I lost my largest customer? • My MIX changed ? • I bought a new machine? • I sold more sheets? • My labor costs go up 5%? • I added OT or another shift?
With Amtech’s NEW AUTOMATED PERFORMANCE COSTING To Learn More or Schedule a Demo Darren Artillio: dartillio@amtechsoftware.com 215.639.9540 www.amtechsoftware.com/accurate-costing
Domtar To Convert TN Mill To Produce Containerboard
Once the Kingsport Mill conversion is complete, which is expected in the first quarter of 2023, Domtar says it will be able to produce and market about 600,000 tons of high-quality recycled linerboard and corrugated medium annually on North America’s premier lightweight contain- erboard machine. That level of capacity will make King- sport the second-largest recycled containerboard mill in North America, according to Domtar. Producing recycled containerboard requires a good supply stream of recycled paper materials like boxes, chipboard, office paper and newsprint. Domtar believes finding that material won’t be a problem. “We can source it from 72 recovered-paper suppliers with 116 locations in a seven-state radius,” the company said in a release. “Thanks to a high-quality paper machine capable of pro- ducing about 4,500 feet per minute, the Kingsport Mill has the potential to become one of the lowest-cost recy- cled containerboard mills in the United States. Its central
For the past two years Fort Mill, South Carolina based Domtar has looked into repurposing key paper machines as the company adjusts its white paper production capaci- ty to match customer demand. This is why the company re- cently announced it will convert its Kingsport, Tennessee paper mill into its first containerboard facility. According to multiple media reports, Domtar views containerboard manufacturing as an exciting new market that directly aligns with its expertise and more than 100- year legacy of turning fiber into useful products. The com- pany believes containerboard is North America’s largest pulp and paper market, and it has good long-term growth prospects. It’s a 40-million-ton market today, and it’s grow- ing by about two percent (about 800,000 tons) every year.
location in the Southeastern United States means it’s also geographically positioned to be the go-to supplier for more than 60 independent box makers across the region, representing nearly four million tons of an- nual containerboard demand.” “Repurposing the Kingsport Mill pro- vides Domtar with an excellent strategic en- try point into a growing market with a very competitive, low-cost asset,” says Domtar President and CEO John Williams. “We view this as a strategic first step toward building a large value-adding business in the con- tainerboard market.” The conversion represents an exciting next step in the Kingsport Mill’s more than 100-year history in the region. “We’re proud of our long history in King- sport and strong partnership with the com- munity,” says Kingsport Mill Manager Marty Barfield. “The mill has an outstanding repu- tation for employing local talent and giving back. We’ve had many generations of fam- ilies working here, and we look forward to continuing that tradition for many years to come.” When Domtar idled the mill in April, the facility employed 304 workers. The convert- ed mill is expected to directly employ ap- proximately 160 workers. A payment-in-lieu- of-taxes (PILOT) agreement calls on Domtar to maintain a minimum of 140 full-time jobs. Domtar is one of the largest manufactur- ers of pulp in the world. Its network of 13 pulp and paper mills and 11 manufacturing and converting facilities gives it approxi- mately 2.7 million tons of papermaking ca- pacity and 1.5 million air-dried metric tons (ADMT) of market pulp capacity annually.
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October 19, 2020
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AICC To Offer Hybrid Event: Financial Reporting, Analytics For Converters AICC, The Independent Packaging Association, has opened registration for Financial Reporting and Analytics for Converters: Level 1, a new hybrid event to be held November 17-19, 2020. Attendees will learn to hone financial reporting systems and create meaningful performance measurements for their converting businesses. They will also get actionable ideas about how to streamline accounting and reporting systems. Attendees will also learn how to accurately inte- grate time, efficiency, and other key performance indica- tors into financial data. Taught by Mitch Klingher, a partner at the CPA firm of Klingher Nadler, LLP, this course will use a case study of a fictional company, ABC Sheet Plant, Inc., to allow at-
tendees to learn using realistic examples and problems. This method helps participants to understand the con- cepts better and immediately implement them in their own company. The first day will introduce attendees to the fictional company through a variety of reports and company infor- mation. They will then critique the information presented and to discuss potential alternatives. The second day brings a discussion of profit centers and cost centers. Attendees will review the “company’s” estimating system design and reporting and see how they correlate to the financial reporting. They will then formulate alternative reporting strategies and methods. On the last day, attendees will participate in the pre- sentation and critique of ABC’s alternative reporting sys- tems and discuss what is possible with the data available. The hybrid event will conclude with the steps that might be taken to augment or improve this information.
At Klingher Nadler, Mitch Klingher heads up the firm’s tax and consulting de- partments. With over 30 years of diversi- fied public accounting experience, Kling- her specializes in paper conversion and packaging businesses and has developed industry-specific financial courses, in con- junction with AICC, for owners, controllers, and other managers. He has written nu- merous papers for trade publications and is a regular speaker at regional and nation- al meetings. He also facilitates a number of AICC CEO Groups. Registration for Financial Reporting and Analytics for Converters: Level 1 is $795 for members. For more information and to register, visit www.AICCbox.org/Calendar . Questions can be directed to Taryn Pyle, at tpyle@aiccbox.org or (703) 836-2422. IP Declares Dividend Memphis, Tennessee based International Paper (IP) last week declared a quarterly dividend of $0.5125 per share for the peri- od from October 1, 2020, to December 31, 2020, inclusive, on its common stock, par value $1.00. This dividend is payable on December 15, 2020, to holders of record at the close of business on November 16, 2020. The company also declared a reg- ular quarterly dividend of $1.00 per share for the period from October 1, 2020, to De- cember 31, 2020, inclusive, on the cumula- tive $4.00 preferred stock of the company. This dividend is also payable on December 15, 2020, to holders of record at the close of business on November 16, 2020.
Industry4.0@cambrica.com
John Kelley President at Dusobox We have achieved 98% machine availability, and significantly reduced machinery downtime from days to minutes. We have been able to maintain such reliability at a cost of 4% of net replacement value; much lower than expected for professionally managed assets and more.
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October 19, 2020
Got BIG
Industry Supports PACK EXPO Connects Through Partner Program The PACK EXPO Partner Program and PMMI’s Showcase of Packaging Innovations showcase the powerful indus- try support of PACK EXPO Connects, taking place on No- vember 9-13, 2020. The Partner Program serves to connect over 20 lead- ing trade associations dedicated to advancing the industry with attendees and exhibitors, bringing significant resourc- es, insights and expertise to 2020’s most comprehensive virtual packaging event. “We’re grateful to our Partner Associations for their enthusiastic support of PACK EXPO Connects,” said Joe Angel, President, PMMI Media Group. “While we wait for in-person events to reopen, we look forward to connect- ing virtually with association members and their business partners during PACK EXPO Connects in November.” “CPA, The Association for Contract Packagers and Man- ufacturers, and PMMI have had a long and successful part- nership,” says Ron Puvak, Executive Director, CPA. “The PACK EXPO Partner Program has proven invaluable to us over the years. CPA members have benefited immensely from the exposure to new clients and markets provided by PACK EXPO events. We are very excited to participate in this first-ever PACK EXPO Connects virtual event.” PMMI’s Showcase of Packaging Innovations will share the best product packaging ideas advancing the industry in 2020. Get inspired by viewing the Showcase of Packag- ing Innovations featuring high-quality images that let you rotate the winning products and zoom in on details. “We are excited to see the innovations that inspire package designers with packaging that is functional, inno- vative and sustainable,” says Angel. This year’s Showcase of Packaging Innovations par- ticipants include: Association of International Metallizers, Coaters and Laminators (AIMCAL), Flexible Packaging As- sociation (FPA), Foil & Specialty Effects Association (FSEA), Institute of Packaging Professionals (IoPP), PMMI Media Group’s Profood World Sustainability Excellence in Man- ufacturing Awards, Paperboard Packaging Council (PPC), Reusable Packaging Association (RPA), Tube Council North America (TCNA), and World Packaging Organisation (WPO). PACK EXPO Connects delivers the power of PMMI Me- dia Group and the PACK EXPO brand to connect the pack- aging and processing industry during these challenging times. With over 650 solutions-providers featuring interac- tive virtual showrooms, attendees can foster connections via live chats, live product demos and a robust educational line-up. During Preview Week (Nov. 2-6), the week before PACK EXPO Connects (Nov. 9-13), attendees can browse and fi- nalize their planner, add product demos, educational ses- sions and all items of interest. For more information and free registration, visit www.packexpoconnects.com .
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Customer Commentary (CONT’D FROM PAGE 1 ) Optimize Production Maximize Your Corrugator Speeds With Matched Glue Roller Sets
result, consistent quality and process improvement were non-existent. We never shared information because of our mistrust of each other and because we knew there was no assurance that we would be doing business with one another that much longer. These circumstances made it impossible for the sup- plier to forward-plan raw material purchases, production schedules, capital equipment expenditures and optimal use of that equipment. Loyalty between producer and con- sumer was non-existent. In fact, a lack of loyalty brought out the dark side of some. Gratuities were sometimes offered or willingly solicited, while favors were culled by both sides. Although not always the case, this practice was more prevalent than one cares to admit. Several years ago, however, I changed the way pur- chasing was conducted. I’m sure the original content was to take our orders and use them as a weapon to obtain better pricing from our suppliers. The new purchasing platform came as a direct result of the changing competitive environment. Until the 1990s it wasn’t difficult to make reasonable profits in our industry. But, as was the case for many other businesses in the Unit- ed States, things changed and margins were squeezed. The Japanese were producing high-quality products at lower costs and reduced lead times. So, I set out to reduce our costs. At the time, the corrugated industry was asking for a 10 percent price increase, and we had six suppliers informing them that I was reducing supply base to three or fewer. After a month of negotiation, we had effectively reduced our supply base to one. We saved a lot of money, and I was a hero. That didn’t last long. I spent the next year forcing this wonderful deal down the throats of all my plants. By the end of the year, I was failing miserably. I could not be excit- ed about all the money we were saving. After all, weren’t we always looking for a better price? I later discovered that my customers wanted a lot more. They were into a new quality process and price was no longer the only fac- tor. Deming, Juran, Crosby and others were bringing about new awareness concerning quality. Their buyers expect- ed on-time delivery of corrugated products that were not warped or de-laminated, and a supplier who cared about the customer. Having none of these, I wasn’t sure my old price-driven purchasing effort driven only by profit, was going to be around much longer. Nevertheless, this became the im- petus for our new approach to purchasing supply chain management. Implementing A New Approach It became clear that, if we were going to survive, we had to find a different way of doing business. We had to be prepared to embrace change and create paradigm shifts within our operations. We had to become market-based communicators of this new approach to purchasing—not
Wouldn’t you like faster speeds, less vibration, consistent quality, and happier corrugator operators? If your rollers are engineered,
machined, and balanced to work perfectly with each other, you can get all that —and more. The new Starch Saver glue applicator rollers from ARC International offer you a wide volume range that can accommodate any of your ute sizes or starch requirements. The engineers at ARC are trained to ensure that everything rolling on your corrugator is optimized to give you peak performance and healthy pro ts. If it involves gluing, coating, or moving board, The ARChitects of Flexo should be on your team.
Contact ARC today to learn more about Starch Saver rollers andMatched Sets that give you unmatched performance.
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CONTINUED ON PAGE 24
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Customer Commentary (CONT’D FROM PAGE 22)
Under Roof Separators... ...Made Simple
only internally, but extremely well. With supply chain management, our attention needed to focus predominately on A1B quality certification, val- ue-added service as reliable JIT delivery, and long-term commitment, rather than lowest price. We moved from transactional and adversarial behaviors to relational be- haviors with ACC. We became proactive instead of reac- tive. This was a big change in the way we were accustomed to doing business. We, like our suppliers, were being held to new standards. These standards meant more focus and attention to detail. No longer was the attitude “that’s close enough” going to sustain us in our business relationships. It also became clear that we needed to build business al- liances with our customers, and if we were going to meet those customers’ needs, we would also have to form alli- ances with ACC. The rules of the game have changed. Today, buyer and seller must build a relationship with each other. Some of the keys to success in these alliances are trust, added value, commitment from top management, effective com- munication, mutual intentions, team approach to prob- lem-solving, elimination of hassles, honesty and fairness. In the alliances that we establish now, these factors must exist. If they do not, there will be no relationship.
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CONTINUED ON PAGE 26
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