Board Converting News, December 12, 2022

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 38 years December 12, 2022 VOL. 38, NO. 50

Diesel Fuel Settles Down: Prices Moderate As Panic Buying Eases BY PHILLIP M. PERRY For diesel buyers, price relief can’t come soon enough. Essential to truck fleet operations and a costly drain on business profitability, the distillate fuel oil was selling for a historic high of $5.75 a gallon this past summer, more than double the $2.40 level of two years earlier.

Rusken Packaging Acquires D&D Packaging, Inc. Cullman, Alabama based Rusken Packaging announced the acquisition of D&D Packag- ing, Inc., headquartered in Olive Branch, Mis- sissippi, about 30 miles south of Memphis, Tennessee. Family-owned, D&D Packaging has been operating for 25 years with a wide array of corrugated converting, design, and ware- housing capabilities. D&D also owns a fleet of trucks that will allow Rusken to uphold its just-in-time (JIT) delivery standards. Founded on the principle of superior customer service, the D&D team takes pride in its ability to aide their customers from design to delivery. “We are extremely happy to add D&D to the Rusken Family. We have had a healthy relationship with Mark and Yolanda for many years and are excited to enhance our pres- ence in the Memphis Market,” said Rusken COO, Randy Whiteaker. “This acquisition will add to our already stellar customer service in the market and provide some enhanced cus- tomer experiences.” D&D and Rusken’s combined growth in Mississippi will be led by D&D Packaging’s Mark Cooper. The Rusken team is thrilled to

Prices have since moderated, declining to $5.21 by late 2022. And more relief is on the way. The U.S. Energy Information Administration projects a price dip to $4.41 by the Fall of 2023. One reason for the price moderation is a decline in the panic-buying that occurred in the initial months of the Russia-Ukraine war. Another is a move by refineries to retool their operations for greater diesel ca- pacity. Another a third is a general deceleration in the global economy which results in declining demand. The Costs Of War While diesel prices have moderated, they remain sky high by his- toric standards. Price estimates for the Fall of 2023 remain some 47 percent above typical pre-pandemic levels. And there’s no disagree- ment about the primary reason. “Diesel prices are elevated right now largely because of the Russia-Ukraine war,” said Clark Williams-Derry, an analyst at the Institute for Energy Economics and Financial Analysis. “What’s happening in Russia is affecting global energy markets in a very deep and profound way.” CONTINUED ON PAGE 26 According to multiple sources, diesel prices are expected to decline over the coming year but remain at elevated levels.

CONTINUED ON PAGE 6

WHAT’S INSIDE 6 Domtar CEO Williams To Retire, Steve Henry Named Successor 8 Paul Aliprando To Retire From SUN Automation Group 14 Latest ‘Breaking Down Boxes’ Features Lafave And Malo 40 Article Overlooks Importance Of Recycled Content

EVERYTHING CORRUGATED UNDER

From the employee owners at SUN, Happy Holidays and a very Merry Christmas

Sending you gifts of joy and gratitude. Looking forward to shining with you in 2023.

sunautomation.com

1-410-472-2900

SUN IS THE OFFICIAL REPRESENTATIVE FOR TAIWAN-BASED LATITUDE MACHINERY CORPORATION, ITALY-BASED PARA, AND ISRAEL-BASED HIGHCON

EVERYTHING CORRUGATED UNDER

Machinery and Handling for the Corrugated Board Industry

2 December 12, 2022

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 indicated 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

26# Semi-Chem. Medium

$1005.00-1010.00 $1020.00-1030.00 $1020.00-1030.00 $1020.00-1030.00 $1050.00-1060.00 $1023.00-1032.00

Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.

$940.00-990.00 $955.00-975.00 $955.00-975.00 $955.00-975.00 $975.00-995.00 $958.00-978.00

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

More box makers, brokers and end users are relying on the containerboard pricing in Board Converting News to negotiate their contracts than ever before.

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

141.08 148.46

122.76 131.80

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.

See the current prices every week right here on Page 3.

Len Prazych at 518-366-9017 lprazych@nvpublications.com

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December 12, 2022

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Domtar’s CEO Williams To Retire, Steve Henry Named Successor Fort Mill, South Carolina based Domtar Corporation an- nounced that President and CEO John Williams’ retire- ment date will be June 30, 2023. Williams has planned to leave the company after fourteen years in his leadership

role; however, he will continue as a part-time advisor regarding strate- gic growth opportunities. Additionally, to continue Dom- tar’s forward momentum, Steve Henry, currently Senior Vice Pres- ident of Packaging, has been ap- pointed to the role of Executive

Steve Henry

Vice President (EVP) and Chief Operating Officer (COO) effective immediately. As EVP and COO, Henry will lead the pulp, paper and packaging operations and commercial functions at Domtar, while Williams will continue to lead all corporate functions until his retirement. Williams has served as Domtar’s President and CEO since 2009. During his tenure, he redefined the compa- ny as a fiber innovator, growing in markets like pulp, engi- neered materials, thermal paper and containerboard while exploring absorbent hygiene end uses and biomaterials. He was named CEO of the Year by RISI in 2010, Executive Papermaker of the Year by PaperAge magazine in 2012 and PIMA Executive of the Year in 2019. “On behalf of Domtar and the Management Committee, I want to thank John for his leadership and commitment to our employees, customers and communities over the past fourteen years,” said Henry. “He joined the company during a recession and has navigated ever-changing in- dustry dynamics and economic fluctuations to transform Domtar into the strong pulp, paper and packaging compa- ny that it is today. I am honored to build on his legacy and continue serving our stakeholders.” Henry is an experienced and innovative leader who is well-respected at Domtar and in the industry for his in- depth knowledge of Domtar’s manufacturing assets, his decisive nature and his people-oriented leadership style. Throughout his twenty-seven-year career in the forest products and paper industry he held a variety of mill and corporate positions at Georgia-Pacific, Weyerhaeuser and International Paper before joining Domtar in 2011. Henry served as mill manager in multiple locations during his ca- reer, being named TAPPI/PIMA Mill Manager of the Year in 2016. His most recent assignment has been to lead Domtar’s entry into the packaging business, building the business structure needed to produce and sell containerboard with a winning customer value proposition. A $350 million cap- ital project to convert Domtar’s Kingsport, Tennessee, pa- per mill to produce 600,000 tons of 100 percent recycled containerboard is expected to start up by the end of the year.

5

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December 12, 2022

Rusken Acquires (CONT’D FROM PAGE 1)

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month June 2022

partner with the D&D organization, which aligns with its customer-centric approach and culture. The acquisition is part of a strategic focus to expand Rusken’s footprint

Year

Actual

Percent Change Avg Week Percent Change

2022 2021

34.771 35.948

-3.3

7.903 8.170

-3.3

Industry Total

Year-to Date

June 2022

Year

Actual

Percent Change Avg Week Percent Change

2022 2021

205.855 208.569

-1.3

8.019 8.170

-2.1

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2022 2021

2.8451 2.9436

-3.0

16.8851 17.0466

-0.9

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Jun. May

2.4415 2.3469

4.0

3.8 3.6

5.6

throughout the United States, further growing its existing capabilities and customer base in the Tennessee and Mis- sissippi markets. Visit Rusken.com for more information. From left, David Ortiz, Rusken VP of Operations; Yolanda Har- ris, former CFO, D&D; Mark Harris, former President, D&D; and Randy Whiteaker, Rusken COO.

Shipping Days

Year

Month

Year-to-Date

2022 2021

22 22

127 126

SOURCE: Fibre Box Association

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December 12, 2022

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Paul Aliprando, Industry Veteran, Leader & Mentor, To Retire From SUN Our industry is driven by the people committed to making it better. Through positive periods and pandemics alike, we are grateful for the industry veterans who have dedi- cated years to leadership and mentorship. Paul Aliprando,

With over 20 years of experience in the corrugated in- dustry, Paul had the knowledge and expertise to empower customers and co-workers alike. He was driven to always find the best solutions in the market, and his character shined through with everyone he worked with. Paul was key in fostering a relationship between SUN and Domino North America, a partnership that showcases the benefits of digital converting solutions. “I work with many partners in many markets, but SUN is the best partner I’ve ever worked with. I give a lot of that credit to working with Paul,” said Matt Condon, Busi- ness Development Manager at Domino. “From a personal point of view, he is a humble and knowledgeable man who brings a lot of trust to anyone he works with. He’s touched the corrugated industry in a really positive manner. I wish him the absolute best of luck in retirement.” Paul’s positive and lasting impression on the corrugat- ed industry is evident, both in what he’s accomplished and in the respect he receives from everyone he interacts with. “Paul is a tireless champion when it comes to identifying root causes and developing solutions to improve industry and customer-specific converting challenges. His legacy will be his passion for the industry and for our customers,” said Chris Kyger, President at SUN. “It was never a job for Paul, he loved rolling up his sleeves and climbing over and under converting machinery. We wish Paul and Carol luck chasing the grandchildren.” Visit sunautomation.com for more information.

who leads by example as the current Vice Pres- ident of Business Devel- opment at SUN Automa- tion Group, will begin a well-deserved retirement at the end of this year. “Paul has been a great mentor and friend since I entered the industry in 2012,” said Greg Jones, Executive Vice President at SUN. “His joining SUN and becoming a member

Paul Aliprando

of our leadership team in 2016 is a highlight of my career and the contributions he has made to our organization are immeasurable. There is not an individual in our industry that I have greater admiration and respect for than Paul Aliprando. It has been a blessing to work alongside of him these last six years and to call him a close friend.”

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ISM: New Orders And Backlogs Contracting, Production Growing Economic activity in the manufacturing sector contracted in November for the first time since May 2020 after 29 consecutive months of growth, say the nation’s supply ex- ecutives in the Manufacturing ISM Report On Business. The report was issued by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee: “The November Manufacturing PMI registered 49 per- cent, 1.2 percentage points lower than the 50.2 percent recorded in October. Regarding the overall economy, this figure indicates expansion for the 30th month in a row af- ter contraction in April and May 2020. “The Manufacturing PMI figure is the lowest since May 2020, when it registered 43.5 percent. The New Orders

Index remained in contraction territory at 47.2 percent, two percentage points lower than the 49.2 percent recorded in October. The Production Index reading of 51.5 percent is a 0.8-percentage point decrease compared to Octo- ber’s figure of 52.3 percent. The Prices Index registered 43 percent, down 3.6 percentage points compared to the October figure of 46.6 percent; this is the index’s lowest reading since May 2020 (40.8 percent). The Backlog of Orders Index registered 40 percent, 5.3 percentage points lower than the October reading of 45.3 percent. The Em- ployment Index returned to contraction territory (48.4 per- cent, down 1.6 percentage points) after being unchanged in October at 50 percent. “The Supplier Deliveries Index reading of 47.2 percent is 0.4 percentage point higher than the October figure of 46.8 percent. Except for last month, the Supplier Deliver- ies Index hasn’t been at this level since February 2012 (47 percent). The Inventories Index registered 50.9 percent, 1.6 percentage points lower than the Octo- ber reading of 52.5 percent.

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“The New Export Orders Index reading of 48.4 percent is up 1.9 percentage points compared to October’s figure of 46.5 per- cent. The Imports Index dropped into con- traction territory at 46.6 percent, 4.2 per- centage points below the October reading of 50.8 percent.” “The U.S. manufacturing sector dipped into contraction, with the Manufacturing PMI at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting soft- ening new order rates over the previous six months, the November composite index reading reflects companies’ preparing for future lower output. Demand eased, with the (1) New Orders Index remaining in con- traction territory, (2) New Export Orders In- dex below 50 percent for a fourth consecu- tive month, (3) Customers’ Inventories Index effectively in ‘just right’ territory, climbing 7.1 percentage points, and (4) Backlog of Or- ders Index moving deeper into contraction. Output/Consumption (measured by the Pro- duction and Employment indexes) declined month over month, with a combined neg- ative 2.4-percentage point impact on the Manufacturing PMI calculation. “The Employment Index moved back into contraction, and the Production Index decreased but still remained in modest growth territory. Panelists’ companies con- firm that they are continuing to manage head counts through a combination of hir- ing freezes, employee attrition, and now layoffs. Inputs — defined as supplier deliv-

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ISM: Production Growing (CONT’D FROM PAGE 10)

eries, inventories, prices and imports — mostly accom- modated future demand growth. The Supplier Deliveries Index indicated faster deliveries, and the Inventories Index expanded at a slower rate as panelists’ companies contin- ued to manage the total supply chain inventory. The Prices Index decreased for the ninth consecutive month, falling deeper into contraction territory. “Of the six biggest manufacturing industries, two — Pe- troleum & Coal Products; and Transportation Equipment — registered weak-to-moderate growth in November. “Manufacturing contracted in November after expand- ing for 29 straight months. Panelists’ companies continue to judiciously manage hiring, other than October 2022, the month-over-month supplier delivery performance was the best since February 2012 when it registered 47 per- cent, and material lead times declined approximately nine percent from the prior month, approximately 18 percent over the last four months. Managing head counts and to- tal supply chain inventories remain primary goals. Order backlogs, prices and now lead times are declining rapidly, which should bring buyers and sellers back to the table to refill order books based on 2023 business plans.” Twelve industries reported contraction in November, among them Printing & Support Activities; Wood Products; Paper Products; Food, Beverage & Tobacco Products; and Appliances & Components.

Brand Owners, Converters & Decision-makers Read BCN

Share the story of your company’s success with an ARTICLE in Board Converting News. The corrugated and folding carton industries are waiting!

Don’t keep it a secret! Articles generate leads, too!

Len Prazych at 518-366-9017 lprazych@nvpublications.com

12 December 12, 2022

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AICC Drops Episode Of ‘Breaking Down Boxes’ Featuring Kruger’s Lafave, Cascades’ Malo AICC, The Independent Packaging Association, has announced that the latest episode of Breaking Down Boxes, “People, Planet, Profit,” is now available. In it, Gene Marino, President, Akers Packaging Service Group and AICC Past Board Chair, and Joe Morelli, Vice President of Sales & Marketing, Huston Patterson Printers & Lewisburg Printing Company

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and AICC Past Associate Board Chair, speak with Michael Lafave, Se- nior Vice President & Chief Operating Officer, Kruger Packaging L.P., and From left, Joe Morelli, Charles Malo, Michael Lafave, and Gene Marino record the latest episode of Breaking Down Boxes at the AICC Canada Tabletop Con- ference in Toronto.

Charles Malo, President and Chief Operating Officer, Cascades Con- tainerboard Packaging, which was recorded during the recent AICC Canada/Canadian Corrugated Case Association (CCCA) Tabletop Con- ference in Toronto. “Mike and Charles are two spe- cial people who were kind enough to give their time to us to discuss a variety of hot button topics. Their

Charles Malo

600 + Plants 60,000 Users North America Latin America

perspective on people, the planet and profit is something that I truly felt inspired by and I think something our listeners will enjoy,” said Morelli. The two industry titans discussed inflation, living company culture, sustainability, and employee retention. Using specific examples, Malo walked through the simple ways small things can have a big impact on everything from the environment to employee relations. Lafave shared

his thoughts on how a focus on fa- cilities impacts his workforce and helps team members be proud of the company they work for.

“This was a real special opportu- nity for Gene and Joe to get into the heads of two very dynamic leaders in our industry. Naturally, there are take aways for AICC members, but the reality is, there are take aways for everyone,” said AICC President Mike D’Angelo.

Michael Lafave

Both Lafave and Malo shared stories about how their families have influenced their leadership styles and outline the top three things that keep them up at night. Visit www.AICCbox.org/boxes . 14 December 12, 2022

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Domtar To Resume Operations At Kingsport Mill In Tennessee According to multiple media reports, Fort Mill, South Caro- lina based Domtar is set to resume operations this month at its facility in Kingsport, Tennessee that has been con- verted from producing uncoated freesheet writing paper to produce recycled containerboard. The repurposed plant employing 150 workers was part of a $350 million project that the company announced two years ago after the mill was idled in 2020 due to declining customer demand. The company said the facility will be home to the second-largest recycled containerboard ma- chine in North America and will be capable of producing and marketing approximately 600,000 tons of recycled li- nerboard and corrugated medium annually, making it the largest recycled manufacturer in Tennessee.

Domtar’s Kingsport Mill in Tennessee.

The mill project joins a growing list of facilities con- verting or being developed to produce containerboard to satisfy the demand for packaging for e-commerce which

increased during the COVID-19 pandemic. The Kingsport Mill is Domtar’s largest re- cycling project and represents its first 100 percent recycled fiber manufacturing facili- ty, according to the company website. Domtar is one of the largest manufactur- ers of pulp in the world. Its network of 11 pulp and paper mills and nine manufacturing and converting facilities has approximately 2.7 millon tons of papermaking capacity. Georgia-Pacific Invests $160M In Brewton, AL Mill Atlanta, Georgia based Georgia-Pacific an- nounced that it is investing $160 million in operations at its Brewton Containerboard Mill. The project involves upgrades to the facility’s pulp processing systems that will reduce energy and chemicals consumption, other environmental emissions, and allow for more paper production. “This is a significant investment for Brew- ton and will build upon the transformative advancements that have been made here in the recent years,” said Mark Martin, mill VP and GM “It reinforces GP’s long-term opera- tions plan and our commitment to the Brew- ton community and the region. The project also reduces risks for Brewton employees, furthers our competitive position in the in- dustry, and progresses our environmental stewardship efforts with positive impacts to reduce solid waste generation, air emis- sions, and wastewater,” Martin said. “It’s not just the right thing to do for our business and employees, but for our community too.” Construction is slated to start next year, with an estimated startup by Spring 2024.

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Diamond Packaging Scores 4 Wins In Paperboard Packaging Competition Rochester, New York based Diamond Packaging an- nounced the winning of four awards in the 2022 North American Paperboard Packaging Competition, the premier competition for carton manufacturers involved in the con- cept, design, print, performance, and shelf appeal of pa- perboard packaging. Awards were presented last month during the 2022 Fall Meeting & Leadership Conference in Austin, Texas. The competition, sponsored by the Paperboard Pack- aging Council (PPC) and judged by a jury of packaging professionals, industry experts, and professors, is a cele- bration of the industry and its creative potential. It is also an affirmation of paperboard as the more sustainable choice for packaging in today’s eco-conscious world. “On behalf of the Paperboard Packaging Council, I con- gratulate all of this year’s deserving winners,” said Ben Markens, President of PPC. “To be recognized in our com- petition is a feat, demonstrating mastery in design, manu- facturing, distribution, shelf presence, and much more. It is a true stamp of excellence.” Excellence Award: Sustainability in the Cosmetics cate- gory for Caldera + Lab’s The Clean Slate packaging The trapezoid-shaped folding cartons were converted utilizing FSC-certified Neenah 100 PC White Vellum paper- board – made with 100% post-consumer recycled (PCR) fiber – and offset printed with process black and PMS inks, in-line with UV matte coating. The inside was printed with custom black and PMS inks, in-line with UV matte coating.

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The graphic design incorporates clean, simple graph- ics and a color palette reminiscent of the natural tones in the American West. Vertical columns of alternating, itali- cized text span the panels and create visual interest. An embossed logo block on the front panel adds depth and dimension along with an appealing tactile quality that pro- motes consumer interaction. Excellence Award: Cosmetics category for Inter Parfums’ Oscar de la Renta Alibi packaging The folding cartons were converted utilizing Clear- water Candesce SBS paperboard, cold foiled, and offset printed with custom gold and process black inks, in-line

CONTINUED ON PAGE 20

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Diamond Packaging (CONT’D FROM PAGE 18)

Excellence Award: Sustainability in the Pharmaceutical/ Healthcare category for P&G’s Crest 3D Whitestrips Ra- diant Express packaging The trapezoid-shaped folding cartons were convert- ed utilizing Clearwater Candesce SBS paperboard, cold foiled, and offset printed with four color process, opaque white, and three PMS inks, in-line with DiamondTouch soft touch coating.

with UV gloss coating, and aqueous matte coating. Over- printing transparent gold ink over foil creates shimmering metallic effects. The graphic design incorporates an overall embossed leather pattern with exquisite stitching detail inspired by the fashion brand’s Alibi handbag with its signature lock

The packaging size and caliper was reduced for sus- tainability reasons, thus reducing the amount of paper- board fiber tonnage required. Overprinting transparent inks over silver cold foil on the front and top panels cre- ates shimmering, colorful metallic effects that catch the eye and invite closer inspection. Embossed accents add dimension and provide an upscale appearance unique to personal care products.

clasp. The debossed Oscar de la Renta logo framed by an embossed white block on the front panel adds dimension and contributes to a unique visual and tactile presentation. The combination of colors and textures beautifully complement the design of the primary container – a thick- walled flacon with clean structural lines highlighting the fragrance within, topped with a gold-colored cap.

CONTINUED ON PAGE 22

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Your source for complete corrugators

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Diamond Packaging (CONT’D FROM PAGE 20)

Excellence Award: Self-Promotional category for its 2022 corporate calendar Diamond’s 2022 calendar celebrates the company’s sustainability efforts through its partnership with the Sen- eca Park Zoo in Rochester. The header features Roycroft Renaissance Master Artisan Laura Wilder’s “Animals of the Savanna” print commissioned by the Seneca Park Zoo. It commemorates the Animals of the Savanna Exhibit ex-

pansion, which features gi- raffes, zebras, ostriches, a southern white rhino, and other species. The calendars were converted utilizing Clear- water ReMagine 30 per- cent PCW paperboard, cold foiled, and offset print- ed with four color process inks, in-line with UV matte, aqueous, and soft touch coatings. The was convert-

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ed utilizing Clearwater Candesce SBS paperboard lami- nated to E-flute corrugated fiberboard, and offset printed with 4-color process inks, in-line with and aqueous gloss coating. It is artfully decorated with the custom giraffe pat- tern from Laura Wilder’s “Animals of the Savanna” print.

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22 December 12, 2022

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ICG Celebrates 20-Year Partnership With Clearwater Paper In Little Rock The Independent Carton Group (ICG), an association of 21 independently owned and operated folding carton manu- facturers, celebrated the 20-year partnership with Clear- water Paper ( www.clearwaterpaper.com ) during their No- vember quarterly meeting in Little Rock, Arkansas. Close to 60 ICG members and designated supplier partners were treated to a plant tour of Clearwater Paper’s plant in Cypress Bend, Arkansas as part of the three-day meeting. “We thought it very fitting to have this meeting corre- spond with the 20-year anniversary of when the Clearwa- ter Paper (then Potlatch) first partnered with the ICG to be our predominate supplier of SBS board to our members,” said Jay Willie, ICG Director. While Clearwater Paper provides ICG members with quality SBS board, they also assist member companies to enhance manufacturing practice and operations through the deployment of their Converting Solutions Team. The “CST” group are seasoned experts from within the indus- try. They have over 150 years of manufacturing experience, from printing, die cutting, folding and gluing. All members have extensive backgrounds with strengths in Facility As- sessments, SMEDS, and Kaizen Studies. “Clearwater Paper has been an outstanding partner over the years,” continues Willie. “Through their Convert- ing Solutions Team they have helped our members save money and time in their manufacturing practices, helping our members grow sales in these challenging times. Clear- water Paper brings a lot of value to our members.” “Clearwater Paper is immensely proud of our long part- nership with ICG. Welcoming members to our Cypress Bend, Arkansas, mill, 20 years after the start of the rela- tionship, seems fitting to honor the partnership. We look forward to the next 20 years of this relationships,” said Clive Gillanders, Director of Sales for Clearwater Paper’s pulp and paperboard division. The ICG was established forty years ago as a group of independently owned folding carton firms to provide the original five member companies assurance of uninter- rupted production support in the advent of a catastrophic event. Since that time, it has grown to 21 companies and in scope to offer training and education programs, as well being the largest and most well-known buying group in the industry. “While the original reason for the group’s forming was for operational security, the board of directors is very proud of the leadership and operational training programs that have been developed. Our members are more pro- ductive and profitable due to the breadth of services they get from being members of the ICG. This meeting at Clear- water Paper and their involvement with the group is a clas- sic example of that value,” says Willie. For more information on the ICG or to inquire about membership, contact the ICG office at (203) 270-7578.

AIR CONVEYING CORPORATION is a recognized leader in the industry of Pneumatic Conveying Systems and has been in business since 1968. As an equipment manufacturer rather than simply a sales organization, we have complete control over the quality of material and products which make up your proposed system. Our equipment is found in Printing, Folding Carton and Corrugated plants throughout the country and the world.

AIR CONVEYING CORPORATION PH: 901-454-5016 FAX: 901-324-7979 e-mail: sales@accfilter.com • www.accfilter.com

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It’s time to revolutionize The new CorruCUT rotary die-cutter pushes what is possible

The CorruCUT is designed for high-performance rotary production of die-cut corrugated products with ultimate flexo post-printing quality. You will achieve paramount performance from the latest embedded technology with a brand new operating concept. It is available with the industry's shortest lead time from our factory to your floor. The CorruCUT has a maximum production output of 12,000 boards per hour, including setup while running, integrated remote maintenance for the ultimate uptime, and the easiest machine to operate – the CorruCUT will increase your profitability. Call us to set up a custom demonstration. Koenig & Bauer (+1) 502 310-1368 tom.fitzgerald@koenig-bauer.com koenig-bauer.com

Diesel Fuel Settles (CONT’D FROM PAGE 1)

Europe’s increasing demand for diesel affects pric- es everywhere, given the commodity status of oil and its distillates. “One nation’s demand affects everyone,” said Schaeffer. “We are seeing a whole trickle-down scenario as more people try to use a product that has become less available.” The global nature of diesel is responsible for its elevat- ed pricing in the U.S., despite the nation’s export of rough- ly one million barrels of the distillate every day. “The US is a net exporter of oil and petroleum products but is still as dependent and as vulnerable as ever to global market forces,” said Williams-Derry. “We don’t get a cheaper price just because we are producing more oil or because we have a lot of refinery capacity. We pay the same price as anyone else who is avoiding Russian oil.” Upward Pressures While the Ukraine war is the major driver of higher diesel costs, it’s not the only one. “A number of factors have put upward pressure on retail prices,” said Andrew M. Lipow, President of Houston-based Lipow Oil Associ- ates. “One is the post-pandemic reopening of economies around the world.” People are traveling more, and that means greater demand for the jet fuel which pulls from the same oil resources required for diesel. And more fuel is needed for the greater number of trucks delivering capital goods and consumer merchandise. The rebound in global demand is happening at a time

Russia produces about 10 percent of the oil from which the world refines diesel. Europe is especially dependent on Russia for its supply. “The war has disrupted the Euro- pean market, either completely eliminating it or dramati- cally reducing it,” said Allen Schaeffer, Executive Director,

Diesel Technology Forum. “That means that folks in Eu- rope and other countries that might have done business with Russia in the past now are scrambling to find fuel in other places.” Spooked by disruptions in natural gas deliv- eries from Russia, Europe is also stockpiling diesel in case it’s needed for home heating this winter.

CONTINUED ON PAGE 28

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Diesel Fuel Settles (CONT’D FROM PAGE 26)

lack of refining capacity. In late 2022 the region had only 13 days’ supply of diesel, down from 26 a year earlier. One exception to the trend is the Gulf Coast with its robust re- fining capacity and limited requirement for home heating. In a perfectly fluid market one would expect dwindling inventories and growing demand to stimulate higher pro- duction at the world’s refineries. Yet there are roadblocks,

when many refineries have cut back production or closed. “We don’t have as much capacity to produce diesel fuel today as we did pre-pandemic,” said Schaeffer. “COVID caused a lot of layoffs at refineries around the world. It also caused a delay in the startup of new refining capacity which would have increased supply.” The U.S. possesses some specific additional drivers of fuel prices. “For the last few years, even before the Rus- sian crisis, diesel has sold at a premium to gasoline in the US,” said Williams-Derry. “One reason is higher federal and state taxation. Another is the shift to lower sulfur die- sel. That’s been very good for clean air but has also slight- ly increased the price of diesel relative to gasoline.” Low Inventories The fact that distillate inventory is running low around the world has only added to upward pricing pressure. “As economies have recovered, the supply of crude hasn’t kept up with demand,” said Lipow. “For all intents and pur- poses, diesel levels are the lowest they’d been since 1951. The world has been living on borrowed time if you will, by drawing down inventories.” Diesel supplies are tight in most of the regions of the U.S., noted Lipow. Nationally, inventory supply has been running at 25 days, down from its normal 30 to 35 day level. Of particular concern is the East Coast, a region with high population centers, high heating oil demands, and a

one of which is a carry-over from the worst days of the pandemic. “At the peak of the pandemic in 2020, diesel demand had gone down by 30 percent, and refineries were losing tons of money,” said Lipow. “At the same time, they were getting older. In the U.S. they were also facing more environmental restrictions, especially in California.”

CONTINUED ON PAGE 30

Do you need printed sheets? We have your answer.. Introducing Heartland’s ColorCorr. This is “flexo-printing in the round”. On our corrugator we can print up to 109” wide. The advantage is that we can print the equivalent of ½ roll at a time and not be required to keep several rolls of very expensive preprinted paper on the floor. Much less waste and risk. In continual print mode, we use either laser-engraved rubber rolls or solid rubber rolls to print a “flood coat” or a repeating pattern. If we are printing a repeating pattern, we can run a two-color design on the paper. Customers have found that running sheets we print can allow them to run a lighter-grade due to reduced caliper loss, and in some cases eliminate one or more machine passes.

For more information contact: Charlie Freeman | 816-500-8889 | cfreeman@heartlandsheets.com Tim Kramer | 816-841-8317 | color@heartlandsheets.com

28 December 12, 2022

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Truck. Loads. More.

Corrugated printing has gone from basic to beautiful in 10 years. With the explosion of packaging demands and shorter print runs, speed has become the #1 capacity driver.

One of our customers tells us automated complete plate cleaning in < 4 minutes adds 25% capacity in a working week with FlexoCleanerBrush™

He calls it ‘Truckloads More Capacity’. You can do your own math.

Diesel Fuel Settles (CONT’D FROM PAGE 28)

Refinery operators were put on the spot as the pan- demic softened demand for their products and the Biden administration moved away from fossil fuels. “Suppose you’re looking at spending several hundreds of millions of dollars, perhaps even a billion dollars, to comply with new environmental regulations,” noted Lipow. “In an environ- ment where the demand for your product is going down, you may well decide to simply shut down.” The slim levels of diesel inventory leave the market vul- nerable to unexpected shocks. “All you need is one little hiccup in the supply chain or a problem with a pipeline or a big cold snap in the Northeast,” said Schaeffer. “The next thing you know higher prices and shortages are back in the news.” Growing Capacity Not all is doom and gloom in the energy picture. De- spite the cost and the delays required for creating new refineries or upgrading older ones, some new capacity is coming on stream in the first half of 2023. “Kuwait and Oman are building brand new large refineries,” said Lipow. “Two new refineries have just come on stream in China. And we’ve got another large refinery coming on stream in Nigeria. Closer to home, Mexico is building a new refinery, known as Dos Bocas, coming online in the next couple of years.” Lipow figures these new refineries will produce

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CONTINUED ON PAGE 32

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Diesel Fuel Settles (CONT’D FROM PAGE 30)

Other companies such as Marathon and Diamond Green Diesel are joining the effort. All told, the past year has seen the production of 3.2 billion gallons of green diesel, about two thirds of which was biodiesel. Schaeffer figures that by 2030 production should top 15 billion gallons. Currently, renewable diesel and biodiesel account for about five percent of U.S. diesel demand, and there has already been some favorable effects. The Clean Fuels Alli- ance America, an organization of biodiesel producers, es- timates that renewable fuels account for a little over three cents a gallon of price suppression. The larger benefits of green energy, however, are expected to be more medium than short term in nature. Industry watchers feel that it will take three to five years before a significant growth in green diesel production will assist the broader diesel market. A larger concern is the effect the green energy produc- tion may have on food availability—particularly soybeans. “Currently, renewable diesel and biodiesel production consume roughly 35 percent of soybean oil production,” said Lipow. “And there is enough renewable diesel capaci- ty coming online this year and next to increase demand for soybean oil by another 10 percent. We can certainly divert crops to fuel, but that gets us back into the debate about food for fuel.” Another technology, electric vehicles, may also help loosen the diesel market. “The growth of EVs may lessen

some two million barrels a day, equivalent to about 1.5 per- cent to two percent increase in world refining capacity. Another contributor to an increase in diesel supply is the green energy movement. “We are seeing a tremen- dous growth in investments to produce biodiesel and re- newable diesel,” said Schaeffer. “Having more renewable

BCN(US)202209(QS1227)(o)(出血5mm).pdf 1 2022/8/30 下午 02:02:21 Major oil refiners jumping onto the green bandwagon include Phillips 66, Marathon Petroleum, and Chevron. All are investing in new refining capacity or transitioning old- er petroleum operations to make more renewable diesel. biofuels helps not just keep the price down a little bit, but also it helps with more supply being available.”

CONTINUED ON PAGE 34

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