BoardConverting Serving the North American Corrugated and Folding Carton Industries for 39 years April 8, 2024 VOL. 40, NO. 15 Kruger’s North American Legacy: 120 Years And Counting BY LEN PRAZYCH AICC 2024 Spring Meeting Kicks Off In Palm Desert
It’s showtime in Palm Desert, California as hundreds of independent and integrated box makers and suppliers are congregating for AICC’s annual Spring Meeting. This year is particularly special because along with the educational sessions, inspira- tional speakers and insights on new trends and technologies in the corrugated and fold- ing carton industries, the event will recognize AICC’s 50th Anniversary, a milestone being celebrated in high style at the Desert Springs Resort. Attendees are paying tribute to AICC’s founding fathers as well as its leadership and they are all set for a “Rat Pack” tribute show, complete with Frank Sinatra, Dean Martin, and Sammy Davis Jr., and dancing backed by Big Band dance music. Typically, the Spring Meeting draws 600 to
In a year overflowing with anniversaries – AICC, The Independent Pack- aging Association, is celebrating its 50th at its Spring Meeting in Palm Desert, CA, and Board Converting News is celebrating its 40th as the only weekly publication in print and online, well, virtually everywhere – it is only fitting that a company celebrating its 120th be given its proper due. With a rich history that could fill an oversized coffee-table book,
CONTINUED ON PAGE 5
WHAT’S INSIDE 7 International Paper Makes All-Stock Offer To DS Smith 9 Abbott-Action Packaging Invests In Isowa Flexo Gluer 14 SUN Automation Upgrades SUN625 Rotary Die Cutter 16 An Independent’s Perspective 24 Atlantic Packaging Products Invests In Durst Delta Printer 28 AICC Announces Speaker Lineup For AI Xperience 54 DPP Announces Launch Of Digital Print Business
presumably printed on the “fine paper” that was Joseph Kruger’s stock in trade, Kruger Packaging continues to defy the expectations of what one of North America’s most prominent – and still privately held – man- ufacturers of the continent’s lightest and strongest containerboard is destined to be. That the company is celebrating a remarkable 120 years of business success speaks to the level of commitment to quality and performance that has been a Kruger family trademark since Joseph Kruger moved his family from New York City to Montréal to open a “fine paper” busi- ness in 1904. Joseph’s son, Gene H. Kruger, took over as president of the company in 1927 and with his vision and leadership, expanded into the manufacturing of newsprint, paperboard, and tissue products, Serge Desgagnes, left, former Vice President of Containerboard Sales, now retired, and Max Côté, General Manager of Containerboard Sales for Kru- ger’s Containerboard Division on the production floor of Kruger’s corrugator plant in LaSalle, Québec, Canada.
CONTINUED ON PAGE 34
2
www.boardconvertingnews.com
April 8, 2024
4
www.boardconvertingnews.com
April 8, 2024
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 $955.00-960.00 $970.00-980.00 $970.00-980.00 $ 970.00-980.00 $1000.00-1010.00 $973.00-983.00
26# Semi-Chem. Medium
Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.
$ 890 .00-9 4 0.00 $9 0 5.00-9 2 5.00 $9 0 5.00-9 2 5.00 $9 0 5.00-9 2 5.00 $9 2 5.00-9 4 5.00 $9 0 8.00-9 2 8.00
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.
More box makers, brokers and end users are relying on the containerboard pricing in Board Converting News to negotiate their contracts than ever before. See the current prices every week right here on Page 3. The Price is Right!
200# 275#
$62.26
$72.05
$62.69 $82.80
$85.35 119.54
$73.13 101.29
97.32
99.89
90.86
113.65
OYSTER UP-CHARGE 8.34
8.34
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.
Len Prazych at 518-366-9017 lprazych@nvpublications.com
42# Kraft Liner 26#
Semi-Chem Medium
East West
$9 2 0.00 $ 96 5.00
$9 1 0.00 $9 4 5.00
AICC Spring Meeting (CONT’D FROM PAGE 1)
at the University of Arkansas, and Trent Halasek, Sales Manager at Akers Packaging Service Group, are leading a two-day Sales Managers Forum on April 7-8. The Experts Three AICC experts are also in the lineup: Ralph Young, Corrugated Technical Advisor; Tom Weber, Folding Car- ton Technical Advisor; and Doug Friel, Risk Management Expert of Johnson, Kendall & Johnson. Derek Mahlburg, Director of North American Paper and Packaging at Fast- markets RISI, and Sarah Meiburg, a branding and market- ing expert who leads the Box to Nature recycling initiative, will talk about sustainability and the economy during focus sessions on Monday afternoon. The Golf The scramble takes place on Tuesday afternoon, April 9 at the Desert Springs Palm & Valley Courses featuring two 18-hole championship courses set against the tower- ing backdrop of the Santa Rosa Mountains. Both the Palm and Valley courses were designed by acclaimed architect Ted Robinson, “King of Waterscapes.” The Venue The JW Marriott Desert Springs Resort & Spa is a re- cently renovated, luxury hotel featuring superb service, re- designed venues, and family-friendly amenities. Located on 436 landscaped acres in Palm Desert, the resort com- plex features 23 acres of lakes and Venetian inspired wa- terways including an eight-story atrium lobby with exotic birds, palm trees, waterfalls and boat dock.
700 people, but AICC President Mike D’Angelo was ex- pecting well over that for the unforgettable event attended also some of AICC’s past presidents and chairs who will receive special recognition. The Speakers Keynote speakers this year are Ron Sasine, Principal at Hudson Windsor; Pippa Malmgren, former special as- sistant to President George W. Bush and an authority on geopolitical, economic, and technological trends; and none other than “The Fonz” himself, Henry Winkler, the Emmy-Award winning actor, author, director, and producer. Jerry Frisch, Founder & President of Wasatch Container in Salt Lake City, Utah is the industry speaker during the first general session Tuesday morning, April 9. Driven by a career opportunity with Utah Paper Box, Jerry moved to Salt Lake City, where he quickly recognized an unmet de- mand which was an independent corrugated sheet plant leading him to create Wasatch Container. Over the past 28 years, he has created a packaging powerhouse with Wasatch Container specializing in ad- vanced printing capabilities for e-commerce packaging and retail displays and a Protective Packaging Division specializing in foam fabrication, case solutions, and wood crates. Frisch was chairman of AICC in 2008-09. The Sales Forum John Ballentine, Sales Program Director and Instructor
5
www.boardconvertingnews.com
April 8, 2024
EVERYTHING CORRUGATED UNDER
The first AICC Meeting in St. Louis, 1974.
50 Cheers to AICC SUN Automation Group is shining a light on AICC’s five decades of dedication to the corrugated industry. Their focus on innovation and education has paved the way for groundbreaking advancements in our field. We look forward to a bright future filled with collaboration and continued success! AICC’s Founding Members
Advance Packaging (PCA) Arvco Container Bates Container (Smurfit Kappa) Blossomland Container
Great Northern Packaging Independent Corrugated Container Corporation of North America Jamestown Container Krafcor (IP) Lawless Container Lonestar Container Mall City Containers (Hood Container) Michiana Container Michigan Packaging Co. (Greif)
Omaha Box Co. (Liberty Diversified) Orchard Consolidated Industries Paragon Packaging Products Powderly Container (S.E.M.O) Queen City Container (Sumter Packaging) R and D Incorporated Select Carton Service Ltd. (Central Group) Sentinel Container
Borders Container Cameron Packaging Central Container Centralia Container Coast Packaging Materials Commander Packaging Condura Box
Shillington Box (The Royal Group) Specialty Container (Supply One) Stand Fast Packaging Products Tate Containers (IP) Taylor Paper Corp. of St. Louis Triangle Container (Menasha) Tri-Pack Western Reserve Container
Mid-Michigan Container Monarch Box & Paper Nor East Packaging Northern Package O’Grady Containers (IP)
Container Service Cor-Box (Sonoco) Decatur Container (Akers Packaging Service) Delta Container A. Goodenough Box
STRONG PARTNERS |
STRONG SOLUTIONS
sunautomation.com 1-410-472-2900
SUN IS THE PROUD PARTNER OF TAIWAN-BASED LATITUDE MACHINERY CORPORATION, SPAIN-BASED AL-GAR, ISRAEL-BASED HIGHCON, ITALY-BASED PARA, AND USA-BASED EPS.
Machinery and Handling for the Corrugated Board Industry
International Paper Makes All-Stock Offer To DS Smith
International Paper, which confirmed the talks, has until April 23 to make a firm offer. “The Board acknowledges the strategic merits and po- tential for value creation through a combination with In- ternational Paper. Accordingly, the Board is progressing its discussions with International Paper regarding the Pro- posal,” DS Smith said. It said it was continuing talks with Mondi. Mondi declined comment. Late last year, rival paper and packaging company Smurfit Kappa announced its acquisition of WestRock in an $11 billion deal, which is still pending closure. International Paper’s interest in DS Smith is unexpected given the company’s recent focus on its North American business, Morningstar analyst Spencer Liberman said. AICC Midwest Region Golf Tourney Set For July 22 The Midwest Region of AICC, The Independent Packag- ing Association, golf tournament is set for July 22 at the St. Charles Country Club, 1250 Country Club Rd. in St. Charles, Illinois. The events includes a buffet cookout lunch, cocktails, dinner, prizes and a raffle. Registration opens in May. For more information, contact Laura Mihalick at lmihal- ick@aiccbox.org of (703) 836-2422.
(Reuters) International Paper (IP) has stirred up a potential bidding war over British paper packaging firm DS Smith, making a takeover offer that sent the shares of the FTSE- 100 target over a two-year high. DS Smith said it was in discussions with International Paper over an all-stock offer from the US-listed company, which valued it at $7.22 billion. DS Smith shares gained as much as 7.9 percent to 338.1 pence in early Wednesday trade, hitting their highest since January 2022. The proposal comes less than three weeks after DS Smith reached an in-principle agreement with its UK-listed rival Mondi, which made an all-share takeover offer valu- ing DS Smith at 5.14 billion pounds. Under the terms of the U.S. group’s proposal, DS Smith shareholders would receive 0.1285 shares in International Paper for each share they own in DS Smith. That would give them 33.8 percent of the combined company — a smaller slice of the emerging entity than under Mondi’s proposal, which would leave DS Smith shareholders with control of 46 percent of the enlarged group. However, the offer’s terms represent a higher value of 415 pence per DS Smith share based on International Pa- per’s Monday closing price of $40.85, the British company said.
7
www.boardconvertingnews.com
April 8, 2024
Abbott-Action Packaging Invests In Isowa Falcon Flexo Folder Gluer Attleboro, Massachusetts based Abbott-Action Packaging introduced their latest high-speed converting machine, the Isowa Falcon FP50 Flexo Folder Gluer. This state-of- the-art machine replaces their smaller flexo folder gluer by Simon and their larger flexo folder gluer by McKinley, promising enhanced speed, efficiency, and precision in their operations. Crafted by Japanese manufacturer Isowa, headquar- tered in Kasugai, Japan, the Falcon FP50 stands as Iso- wa’s fastest converting line for mid-sized boxes. Capable of producing up to 350 boxes per minute for single-ups, and up to 700 boxes per minute for double-ups. Driven by a commitment to meeting evolving market demands, Abbott-Action Packaging, a leader in corrugat- ed packaging and displays, realized the need to ramp up production efficiency to support business growth. With an eye on balancing existing orders while accom- modating new ones, the company embarked on a quest for advanced machinery to improve upon their operations within their 156,000 square foot facility. Given the significant role of brown box packaging in their portfolio, acquiring a machine with four-color print- ing, increased speed, and greater operational efficiency CONTINUED ON PAGE 10
Core Competency
BloApCo Floor Shredders easily handle Cores and Sheet Waste
▲ All converting scrap handled by one BloApCo Shredder. ▲ Energy efficient. Low HP. Low RPM. Low noise. ▲ Industry leading 3-year warranty.
See the video at : BloApCo.com/horizontal-floor-shredder
CMYK 100M 100Y CMYK C96 M66
www.bloapco.com 800.959.0880
Over
Since 1933
years
© 2023 Blower Application Company, Inc., Germantown, WI
CMYK 100M 100Y CMYK C96 M66
Over
Since 1933
years
Over years
Since 1933 Since 1933
years
Over
8
www.boardconvertingnews.com
April 8, 2024
The value of lasting over time.
Isowa’s robust equipment withstands the rigors of day-in day-out full-throttle operation, and it’s engineered to
do it with minimal operating cost. Just ask an owner!
IBIS Flexo Folder-Gluer 47 x 120” 250 spm
(602) 639.9060 www.isowa.com U.S. Based Sales, Parts and Service from Our New Expanded Location!
Abbott-Action Invests (CONT’D FROM PAGE 8)
became key to scaling up their production capacity. As a result, they began on a journey in 2020 to replace and upgrade their existing flexo corrugated converting equip- ment. By 2022, their choice was clear: they opted for Isowa’s Falcon FP50, a one-stop solution that replaced their small- er and larger flexo converting machines. The Falcon FP50 marks a new era for Abbott-Action Packaging, allowing the company to undertake more multi-color print orders with its cutting-edge four-color printing capability and remarkable production volume. Thanks to the Falcon’s patented SuperFlex Plus Inking System, color changes are faster, minimizing ink loss for enhanced costs savings in the long run. Plus, the Falcon’s patented Automatic Ink Viscosity
Controller streamlines quality control processes, increas- ing operational efficiency. The Falcon FP50 is one of three Abbott-Action con- verting lines that offer flexo folder gluing in addition to die
cutting. While speed is a standout feature, it’s not the only efficient factor of the Falcon FP50. Its ability to significantly reduce setup time during order changes enables seam- less job transitions while other jobs contin- ue to run, which allows for spare capacity in other processes. Plus, its user-friendly design makes it easy to access mechanical components, simplifying routine maintenance tasks and cleaning procedures. In essence, Abbott-Action’s decision to adopt the Falon FP50 was a natural one. Abbott-Action drew from their positive history with Isowa, as they had previously purchased the Isowa Ibis flexo folder gluer years ago. The company has firsthand ex- perience with Isowa’s commitment to quali- ty and innovation. This established rapport, coupled with Isowa’s track record of reliabil- ity, made the choice of the Falcon FP50 an easy and confident one for Abbott-Action. Preparation for the Falcon FP50 began in October 2023, with Abbott-Action break- ing ground to prepare the foundation for its arrival. Following the arrival of components in January 2024, the Hampton Industrial Services rigging crew arrived February 23 to unload all parts. Around that same time, a member from Isowa arrived to assist in the timing and coordination of trucks. The total timeline for unloading and mechanical assembly took a week and a half. Addition- al Isowa crew members showed up later to assist in the calibration, wiring, testing, and training of the machine. Other members from various other com- panies were present during this time to help assist with the complementary equip- CONTINUED ON PAGE 12
10
www.boardconvertingnews.com
April 8, 2024
CCM ® OCT Filter STATE-OF-THE-ART, HIGHLY ADVANCED DUST COLLECTION SYSTEM
Safety-Driven Design
Exceptional Parts and Service Reduce downtime and boost equipment efficiency with our extensive spare parts inventory and expert service. Located in our 55,000-square-foot Atlanta hub, we ensure quick access to essential components, and our on-site repair services guarantee unmatched precision and reliability for seamless operations.
• Safety-driven design • No explosion vents required • No high speed abort gate • No backdraft dampers needed • No need for compressed air • No water consumption and treatment needed
www.engineeredrecycling.com
info@engineeredrecycling.com
Puhl custom designs systems to meet your needs. • Moving to a new facility? Puhl has experience moving entire plant systems all while minimizing down time in BOTH plants during the transition. • Below roof AND above roof systems custom designed to meet your needs. • New and Remanufactured Equipment (balers, blowers, separators, filters and more). Our Remanufactured equipment includes a warranty and offers significant savings. • NFPA and OSHA compliant systems designed by our NFPA trained engineering team. • Dust Briquetters, Certified Explosion Isolation Valves, Flame Front Diverters and more to control dust and meet NFPA requirements. • PLC Touch Screen Controls with Real Time Pressure Balancing and Real Time Remote Monitoring available on your smart phone or computer. The Falcon is just one of the many new machines part of Abbott-Action’s new flexo folder gluing assembly line. Abbott-Action’s team is diving into training covering every part of the line, from the pre-feeder to the load quickly the former. Despite so many moving parts, the crew quickly adapted, fueled by their eagerness to learn, even with the Falcon being brand new. Fortunately, Abbott-Action is speeding up the learning curve by appointing a member from the Isowa Ibis to lead the Isowa Falcon FP50, leveraging their existing familiarity with Isowa machinery to streamline the training process. The company has taken to their social media to share their journey, inviting everyone to join in the thrill. Abbott-Action’s Marketing Manager, Michelle Conca, says “We’ve been blown away by the response to our Isowa Falcon journey — it’s been nothing short of amaz- ing. From vendors to customers and industry peers, ev- eryone’s been loving the behind-the-scenes. It’s fantastic to see others recognizing the value of this machine and joining us in celebrating this milestone.” Abbott-Action looks forward to sharing more updates as they keep fine-tuning and improving their operations. Until then, Abbott-Action is set to continue further testing and training until the Falcon FP50 is ready to fly. Visit www.abbottaction.com to learn more and con- nect with Abbott-Action Packaging on LinkedIn, Instagram, and Facebook to follow along their journey with Isowa’s Falcon FP50.
Abbott-Action Invests (CONT’D FROM PAGE 10)
ment, such as crews from Alliance, BW Papersystems, and EAM-MOSCA. The amazing collaborative efforts from Is- owa, Alliance, BW Papersystems, EAM-MOSCA, and Ab- bott-Action employees ensured a seamless integration
process, setting the stage for a successful start. Abbott-Action’s Falcon FP50 ran its first official box for testing on March 7 and has since been running production orders during the testing phases. Initial Falcon trial runs have surpassed expectations. Thanks to such a smooth start, Abbott-Action is further ahead in the testing and training process than they had expected.
Balers • Shredders • Trim Collection Systems • Dust Collection Systems • Cyclones Trim Separators • Spiral Duct • Used Equipment • Filters • Briquetters 240 Airport Road | Gallatin, TN 37066 | 615.230.9500 | FAX 615.230.9590 | sales@gfpuhl.com | www.gfpuhl.com Follow us on LinkedIn
12
www.boardconvertingnews.com
April 8, 2024
to 50 Years
Haire Group is proud to have partnered with you along your journey, and we look forward to partnering with you for 50+ more. Congratulations!
hairegroup.com
SUN Automation Announces Upgrades to the SUN625 RDC
chines on the market – to increase machine integrity and reduce friction significantly. Additionally, the machine’s patent-pending nip position, coupled with a larger diame- ter anvil cylinder, enhances the smoothness of operation.
To keep up with today’s fast-paced corrugated market, box makers are demanding more capable systems that keep up with their high-speed and high-volume produc- tion needs. There’s also a growing requirement for sys- tems that can efficiently manage a wide range of materi- als and complex configurations without compromising on quality or efficiency. “Customers are now demanding more versatility and rapid turnaround times,” said Rick Putch, Process Improve- ment Manager at National Steel Rule. “To remain compet- itive, box plants need to evolve to meet an increasingly diverse set of requests.” In a bid to address these growing demands, SUN Auto- mation Group rose to the occasion. For the past 12 years, the SUN625 Rotary Die Cutter (RDC) has been a stalwart in the industry, renowned for its reliability and perfor- mance. Over the same time, SUN has made incremental improvements to the flagship machine, culminating in the most capable RDC on the market today: The SUN 625HD Rotary Die Cutter. The SUN625 HD represents a monumental leap in de- sign and functionality for rotary die cutting. The machine features several structural upgrades, including a doubling in DC journal bearing size – unmatched by other 66” ma-
These strength-building improvements enable a 300 percent improvement in load capacity, which significant- ly expands the machine’s capability to handle larger vol- umes without compromising on speed or precision. This increased capacity also allows for more versatile produc- tion options, accommodating a wider range of corrugated board types and thicknesses, including heavy-weight pa- per and double-wall configurations. Consequently, businesses can diversify their product offerings for numerous complex applications, elevating their competitive edge and operational efficiency.
COMPACT POWER
• HEAVIEST BALES WITH SINGLE TENSION SYSTEM • BEST TIER - EASY TO CLEAN AND USES "PULL TECHNOLOGY"-NO PUSHING THE WIRE ACROSS • DUAL POWER PACK - PROVIDES FAST CYCLE TIMES, REDUNDANCY AND ENERGY SAVING • OPTIONAL BULK WIRE SYSTEM - NO MORE 100 POUND BOXES! I NTEGRI T Y I QUAL IT Y I REL I AB IL I T Y I VALUE
800.843.7512 AmericanBaler.com
14
www.boardconvertingnews.com
April 8, 2024
POWER PRECISION PERFORMANCE
REALLYGREATSITE.COM
RDG 115/135 PERFORMANCE SERIES
WE PROUDLY PRESENT... The Kolbus RDG 115/135 Performance Series We’ve combined power, precision, and performance into a robust and technically advanced machine. This hybrid-designed, gear driven rotary die cutter, has been integrated with servo technology and can be equipped with up to eight print units, a slot score unit and top print units.
Contact our sales team to learn more!
kolbusamerica.com | sales@kolbus.com | 888-705-0051
An Independent’s Perspective On Vertical Integration In 2024 BY JOHN WIDERA
Names like International Paper, a publicly owned company, and Geor- gia Pacific, a privately owned company, are synonymous with integrat- ed conglomerates. Other multinational integrated forest products mills rely on similar business models that control containerboard capacity
with pricing by unifying upstream supply and demand. Historically, paper mills were subsi- dizing their converting plants because they wanted to be low-cost producers. The result? The rest of us continued to be an industry of sheared sheep. The big mills that own internal supply chains are a good fit of raw materials such as wood chips, old corrugated containers (OCC), and
John Widera
chemicals processed with water into a slurry on a 500-foot-long multi- tiered paper machine (PM) to produce five to 10-ton rolls. Then they are shipped “downstream” where the 5-foot diameter rolls are sold, traded, or converted into fluted corrugated sheets, boxes, etc. Most U.S. and Canada paper mills are called vertically “integrated” if 51 percent or more of the input of basic products comes from their own subsidiaries (or tangible assets) or outsource. The expectations are the mini mills with 210-inch or so wide paper machines using only OCC (Old Corrugated Containers). Vertical integration can be compared to a wagon wheel (conglomerate) that has many spokes (subsidiaries), drawn to the center of a hub (headquarters), which controls all its com- panies. Vertical integration can be defined as the merging of several businesses that are at different stages of production, as shown: Vertical (downstream) Paper Mill Integration: • Trees – renewable resources from tree farms or forests • Recovered fiber OCC from recycled paper • Sawdust, pulp, energy • Paper machines technology, labor • Roll stock, linerboard medium, multi-wall • Trades • Corrugators/converting • Logistics • Sell direct, export sheet plants, brokers sheet feeders, and distrib- utors • Recycle, reuse A big reason why buyers prefer vertical integrated mega companies is that they have more control over board supply and price. Integrated competitors (mills) boast more facilities, more capacity, and more re- sources. Therefore, they are selling the perception of strength through size. Independents, on the other hand, should be selling the perception of strength through service and quality. The biggest reason for prefer- ring independents is that they provide better service and flexibility. Obviously, there are consequences for independents to constantly outperform their peers, by being better before cheaper, and put rev- enue (high margins) before cost (low prices). In a truly free market, an integrated can leapfrog over one independent, but it’s hard to stop an alliance which doesn’t have “Quality Fade” or no cash flow problems. There are also horizontal integrated paper mills controlling vertical
CONTINUED ON PAGE 18
16
www.boardconvertingnews.com
April 8, 2024
Our long-awaited 2023 Packaging Playbook is finally here. We talk through all the challenges present in
our changing world of corrugated packaging and more importantly, how to solve them.
DOWNLOAD NOW bit.ly/packaging-playbook
Vertical Integration (CONT’D FROM PAGE 16)
The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets
integrated companies. These paper manufacturers sell a variety of related paper products, such as building and construction materials, flexible and corrugated packaging products, tissue, toilet and paper towels, paper bags, rig- id plastic packaging, folding cartons, etc. In other words, horizontal integration means the merging of different busi- nesses and products owned by same owners. Questions: • As costly complex digital technology for the paper in- dustry is accelerating, will the mills purchase it or out- source or grow with M&A adaptation? • In customizing AI systems of communication and anal- ysis, are mills setting up bureaucratic employees for failure? Will their unions resist these changes? • Will each of the integrated subsidiaries (or indepen- dent by controlled plants) with their various cultures have important shared values? • When the need for debt or equity financing arrives, will integrated organizations do more outsourcing as tech company role models Amazon or Google? Consid- er the automobile industry. They keep shedding their inefficient vertical integration. Their average “made in the U.S.A.” car parts is less than 50 percent. Why? It’s outsourced much of vertical integration. Of all the types of integration of businesses, such as paper mills, private equity companies, venture capital firms (VC) big tech conglomerates, etc., vertical integration is today the most difficult structure to maintain in extract- ing high values. The paper industry was a suitable integra- tion example before the mini mills using OCC. Main Integration Obstacles: 1. Capital intense to operate and achieve a high ROI. 2. Fast changing technology, such as AI, robots, ma- chine learning, analytics, etc. 3. Growth of niche markets, reducing long-run com- modity orders for mills, more complex variable is value added orders requiring more than low prices. 4. Savvy global competitors with low-cost production and trading resulting in consolidation of markets. Yet, the foundation of trade is mutual gain. 5. Increase in costly government regulations that were based on the concept of “natural monopoly.” Of course, vertical integration is an important competi- tion differentiation factor as mill operations are more con- cerned with capacity utilization than consistent “On Time with Quality, no Excuses,” (the CalBox motto). Besides, in- tegrated mills sell or subsidize their converting plants and competitors by trading or transferring containerboard rolls Integration strategies based on high fixed, low margin cost structure support a mill’s capabilities with specializa- tion to gain market share. But big mill integration has been a mixed blessing. New markets often come with dead nos- using artificial prices. Integration Analysis
Nothing’s more rewarding than a couple made for each other.
That’s why the engineers at ARC International have focused their skills and talents on crafting perfect matches between the components that must work in tandem on your flexo folder gluers and die-cutters: • Anilox Rollers and Ink Chambers • Anilox and Wiper Rollers • Feed and Pull Rollers • Glue and Meter Rollers You can achieve the press speeds and print quality you need to fill your most demanding orders by pairing your team with The ARChitects of Flexo . Contact ARC today to learn how these engineered matches of flexo folder gluer and die-cutter components (new or reconditioned) can help you achieve a more perfect union of production and profits.
The ARChitects of Flexo
SINCE 1984
ARCInternational.com 800-526-4569
CONTINUED ON PAGE 20
18
www.boardconvertingnews.com
April 8, 2024
From all of us at JB Machinery, Congratulations AICC on 50 years of support and dedication to independent packaging manufacturers. ...And here’s to many more!
®
A proud member of AICC since 1984
JB Machinery Inc., | +1-203-544-0101 | jbmachinery.com
JB MACHINERY
Vertical Integration (CONT’D FROM PAGE 18)
Integration today is a losing proposition, a superficially compelling but tangential and not especially a powerhouse solution to a very simple outsourcing supply problem. “A solution that has already cost shares of equity much more than it can be expected to return. Call it “the curse of inte- gration.” Clearly, the high tide of integration and its market disruption has changed, washing many of the weak legacy swimmers further out to sea, or at least diminishing their pricing prowess. In Response The big American producers are still focused more on integration as a “silver bullet” with M&A growth capabili- ties. European and Japanese companies have an historical lack of excessive vertical integration that provides unique flexibility. But that is changing with seamless outsourcing in the computerized global market. Still, the goal for integrated manufacturers is to be lean and have low-cost producer strategies with control of raw materials. Sadly, these diverse companies often have long buying cycles and like to purchase what their rivals bought. There are times when manufacturers have to choose (de- bate) between the amount of in-house production (integra- tion) and how much and where to outsource (purchase). The problem as they scale up is that many systems and structures lose speed and proper response time. The headwinds alter when valued supply chains change criti- cal issues for restructuring risk-averse integration. The hu-
trums in fair-trade networks where myriad of agreements can – and do – change into death spirals. Yesterday’s cost- ly updates are usually obsolete today. Even coordinating the activities of hundreds of key employees and suppliers can generate more than a few missed opportunities. While post-merger integration is a key piece of the puzzle, the best integration planning can’t cure a deal that should never have happened. Only those behemoths M&As that either enhance each sister company’s distinc- tive capacities or leverage those former takeovers – or both – can have fait accompli. Here the sick companies with no adapted cultures usually become part of the indus- try consolidation. Today, four paper mills – though internal and M&A external growth – have a market share of about 80 percent due to the power of their improved vertical in- tegration. Years ago, financial giant, Credit Suisse’s equity re- search said this about how our $182 billion paper and packaging industry has handled the onslaught of integra- tion: “At great expense, container makers have battled their way to higher and higher levels of integration.” Producers in the $41 billion mature containerboard in- dustry who have raised barriers to entry are consolidated, and highly vertically and horizontally unified. And what have most share owners received for all the effort and capital-spending? Very few dividends with ROI risks.
CONTINUED ON PAGE 22
20
www.boardconvertingnews.com
April 8, 2024
Congratulations to AICC on its 50th Anniversary! CST Systems is a proud member of AICC and is grateful to AICC member companies for being our loyal customers.
CST Systems is celebrating 22 years of new solutions and never ending possibilities. Let us show you what’s possible. www.cstsystems.net 770-425-3353
Vertical Integration (CONT’D FROM PAGE 20)
as dominant through consolidation, etc. and thus, chances are that an integration of a takeover might not play out to the mill’s management commitment. Predictable responses to the use of mill power are con- trolled pricing, trades, and financial submission. These are vertical integrating forces of traditional tools for profit from bureaucratic layers of management that are in search of its Holy Grail. Indeed, there is a veritable cookbook of legal ways to execute planning and accounting of restructuring integration. Says David Elliot former Manager, VISY Pulp & Paper, Australia, “For us, integration made sense because we wanted a stronger supportive centralized structure, which would enable us to grow, both in our core legacy technol- ogy and in opening up new markets.” Abandoning part of the mainframe model of vertical in- tegration, some integrated mills have been shedding non- core assets to free up capital or reduce risk. Their strategy implementation considers technological “evolution” as op- posed to technological “revolution” with its higher costs. The more you dislike unpredictability, the more you want price and job protection for the status quo. Even with the best-laid plans, integration can fail without the right tal- ent, that is, the appropriate leaders and influencers. Ulti- mately, it comes down to the human element. Tom Peters, the author of “Thriving on Chaos,” says, “In achieving extraordinary responsiveness, a change in
man/technology collaboration binds all corporate facets to plan, develop, buy, make, sell, and move or liquidate risky inefficient capacity. Paradoxically, we train people to act more like machines to understand logical reasoning and their related collaboration. In the integrated activities of work, collaboration is king. Yet, it is more difficult to ef- fectively communicate in integrated businesses. Lack of teamwork and their “message” will probably not come through loud, clear, and not be repeated more times and in more places. Will Integration Yield Power? Done right, integration unlocks more equity value by limiting import exposure created by leveraging the exist- ing critical competitive advantages. Conversely, mills in the past had exported about 10 percent of their capacity to keep their U.S. prices high. This changed a bit as more foreign paper mills were built. The new solution? Expand the U.S. market by buying independents with corrugators. My former partner and I followed the trend in 2016 by selling Action Box Co. in Houston to an integrated mill. The more accustomed mills are at being their own customers in this age of fast chang- es, the harder it is to get out of vertical integrations, fixed routines, and rigid bureaucracy. Serious questions lurk when executives covet a higher percentage rate of integration. They desire market share
CONTINUED ON PAGE 24
PRINTCHEK REPRESENTS A NEW FRONTIER IN PRINT QUALITY ASSURANCE FOR THE CORRUGATED CARDBOARD INDUSTRY PrintChek uses a series of line scan cameras to capture an image of each sheet across its entire span before being die-cut. Every sheet's size, rotation, and print quality are then compared to your set “golden standard” to identify defects as small as 2mm like skew, spots, hickeys, smears, color deviation, missing print, and more. Using PrintChek in conjunction with MeasurementChek allows you to remotely monitor production and quality statistics which you can then export via Excel for statistical analysis.
PC
PERFECT PRINT
DEFECT
Adhesive Dispensing and Quality Assurance Solutions Valco Melton :+1 513 874 6550 Info@valcomelton.com | www.valcomelton.com
22
www.boardconvertingnews.com
April 8, 2024
ProVantage Powerflute ®
You told us what matters to you, and we listened. By working together, we can make improvements where it counts. • Lighter grammage options and high-performance packaging solutions • Improved sustainability aspects such as reduced waste and an optimised use of raw materials • Reduced packaging weight, using less fibre while ensuring superior strength You challenged us to make high-performance fluting even better. Our New Generation of ProVantage Powerflute ®
Sustainable by Design
Atlantic Packaging Products Invests In Durst Delta Printer
Vertical Integration (CONT’D FROM PAGE 22)
vision and strategy entails forward distribution channel, (customer) and backward (supplier) integration. Though traditional economies of scale are fast disap- pearing and vertical de-integration (shifting operations to subcontractors) is becoming commonplace, a potent new form of vertical re-integration, via the internet and other partnership program (rather than ownership of assets), is partially or wholly supplanting it.” Still, I am reminded of a quote I once read: “No one owns your industry. It belongs only to the best – to those who keep it growing, producing, and alive. “You are in it today, with equality of opportunity, but to- morrow it will belong to whoever does it better.” John Widera is an Entrepreneur and Chairman of Cal- Box Group.
Today’s manufacturers and converters are at a critical point in corrugated print history. The need for automa- tion and sustainability is paramount, but these needs are joined by those that have always been present: the grow- ing demands of today’s customer, the imminent decline of old equipment, and the balance of delivering the highest quality product while remaining profitable and growing the business. No company is immune to this, but some are more than prepared for it. Atlantic Packaging Products, located in Scarborough, Ontario, has spent the last 80 years transforming from a small converting plant into one of Canada’s largest and most respected companies, offering customers a total
packaging solution. This growth and suc- cess can be attributed to strategic business development, continuous devotion to their customers, and their anticipation for the fu- ture. Their commitment to sustainability, in- novation, and the needs of their customers is at the heart of every decision the compa- ny makes and were the driving factors that led them to Durst. “The decision to invest in Durst for our printing needs was influenced by an ex- tensive five-year search for the optimal solution at Atlantic Packaging,” said Antho- ny Memme, Digital Print Manager, Atlantic Packaging Products. “We prioritized litho- graphic-quality output, high speed, flexibil- ity (in graphics and volume), environmental sustainability, and partnering with a well-es- tablished manufacturer.” The most pivotal feature for Atlantic was the digital, single pass technology which aligned directly with their wants and their customers’ needs. The Delta SPC 130 was developed with the latest generation of sin- gle-pass printing, designed for high speed short, medium, and long run jobs. A well-en- gineered mechanical design offers versa- tility, durability, and reliability, while giving customers the flexibility to print unique, high-quality graphics for brands with mass customization at a large scale. “With the Delta SPC 130, we can supply our customers with high-quality products at the necessary volumes and precisely when they need them. This technology provides Atlantic Packaging with the capability to internally produce a more diverse prod- uct mix while maintaining greater control over both quality and production timing,”
DESIGNS THAT INCREASE PRODUCTION
ASDI offers: • 40 years of experience with separators, cyclones, conveyors and more • Sequential, Zero-Defect and various types of Scrap Systems • Each system is guaranteed to meet customer specifications • T urnkey Systems-handling all grades of paper and paperboard • In ground and overhead return conveyor systems direct to balers • Replace your undersized or aging cyclone over a two or three-day weekend • Representing a complete line of shredders, wet scrubbers and filters • NF PA compliant systems, ISN Network
Air Systems Design Inc .
50 East Court Mandeville, La 70471
Ph: 985-875-7777 Fx: 985-875-7778
\
email: sales@airsystemsdesign.com • www.airsystemsdesign.com
CONTINUED ON PAGE 26
www.boardconvertingnews.com
24
April 8, 2024
An RDC for every need A solution for every budget!
ChromaCUT High Tech
ChromaCUT X Pro superior graphics fast set-up
ChromaCUT Smart high-definition print fast ROI
inside-outside print fast set-up
Max Speed: 9,000 s/h
Max Speed: 12,000 s/h
Max Speed: 10,000 s/h
Available Sizes (max sheet): 2,100 / 82” (82 x 62.99”) 2,400 / 94” (94.5 x 62.99”) 2,800 / 110” (110.24 x 62.99”)
Available Sizes: 2,800 (110”)
Available Sizes (max sheet): 2,100 / 82” (82 x 62.99”) 2,400 / 94” (94.5 x 62.99”) 2,800 / 110” (110.24 x 62.99”) Features: • 3 minute auto job change • Setup while running • Preset print • Inside/Outside Print • Print and die cut inspection • Anilox Roll Changing System (Automatic: 2+1)
Max Sheet Width: 110.24 “ Max Sheet Length: 60.24” Min/Max Caliper: .039/.354” Features: • 3 minute auto job change • Setup while running • Preset print and die cut
Features: • Inside/Outside print
• Print and die cut inspection • Anilox Roll Changing System (Automatic: 2+1)
• Print and die cut inspection • Anilox Roll Changing System (Full Automatic: 3+1)
For full features and specifications, visit koenig-bauer-celmacch.com Or contact Kevin Erbe at kevin.erbe@koenig-bauer.com, 303.718.0023
Atlantic Packaging (CONT’D FROM PAGE 24)
Workflow Software and Analytics Software. This allows the printer to manage all job set up, versioning/variable data and offers excellent color management, streamlining your processes and increasing your production efficien- cy. The innovative features of the Delta SPC 130 resolved the wants of Atlantic Packaging, but it was the strategic partnership with another industry leader that solidified the alliance. “The collaboration of two industry leaders (Koenig & Bauer and Durst) resulted in a press that effectively ad- dresses challenges in corrugated printing,” said Memme. “From the initial contact it was evident that their profes- sionalism, knowledge, attention to detail, and commitment aligned with Atlantic Packaging’s values.” As Atlantic Packaging continues to navigate the corru- gated print segment and the opportunities of the future, they do so with the technology to get them there. “The integration of the Durst SPC into our operations marks not only a significant milestone but also heralds the beginning of a transformative era,” said Memme. “Digital printing, epitomized by the SPC, is undeniably the future of high-quality print on corrugated materials, poised to revolutionize this segment of our business. As we witness the initial impacts and benefits of this technol- ogy, it becomes clear that we are merely scratching the surface of its potential. This collaboration with Durst is more than just adopting a cutting-edge press; it is a strate- gic investment in the future of our business.”
Memme said. “The flexibility it offers in terms of varying quantities and graphics has empowered our customers to implement strategic inventory management, thereby en- hancing overall cost control. This adaptability also proves invaluable in navigating rapidly changing market condi- tions and addressing supply chain issues promptly.”
Durst’s water-based, environmentally friendly inks are fully recyclable and are approved for all major certifications to produce both primary and secondary food packaging. The inks allow premium quality, odorless, abrasion-resis- tant, glossy, and lightfast end products to be produced. The Delta SPC 130 is equipped with Durst’s award-winning
26
www.boardconvertingnews.com
April 8, 2024
Exceptional German Engineering. Unsurpassed Performance.
STOCK COMBINATOR AUTOMATIC FULL AND SPOT LABELER
10,000 SPH INCLUDING SINGLE-FACE
FULL SHEET AND SPOT LABELER FIVE (5) MINUTE SET-UP TIGHT REGISTRATION OF ±1/64” OPTIONAL SHEET INVERTER PRE-FEEDER OPTION AVAILABLE
North American Sales & Service:
(847) 598-3611
1320 Tower Road, Schaumburg, Illinois 60173
www.youngshinusa.com
27
www.boardconvertingnews.com
April 8, 2024
AICC Announces Stellar Speaker Lineup At AI Xperience In Chicago AICC, The Independent Packaging Association, an- nounced the speakers for the upcoming AI Xperience event, set for May 14-16 at the Hyatt Rosemont in Chica-
go, Illinois. This exclusive gathering will delve into the transformative power of Artificial Intelligence (AI) featuring an esteemed lineup of speakers and panelists. “AI won’t replace humans, but humans who use AI will replace humans that don’t,” says AICC President Mike D’Angelo, quoting Fei-Fei Li, a Professor and AI re- searcher. “This Xperience will in- form you of how to be in a position to grow with AI innovations and secure your manufacturing future.” Speakers include: • Mohamed Azzouz , Continuous Improvement Manager, Royal Con- tainers: Mohamed will share Royal Container’s journey in pursuing a digital twin to optimize processes and identify opportunities for im- provement. • Richard Boyd, CEO, Ultisim Inc.: A visionary leader in the AI space, Richard brings his expertise to ex- plore the future of AI and its impact on the packaging landscape. • Jeff DeVries, President, XDS Holdings: Hear a high-level over- view of why new technology, in- cluding artificial intelligence and Industry 4.0/5.0 tools, will deliver improved profitability, higher cus- tomer satisfaction, and a more sus- tainable production process. • Jan Geuens, Partner, OMP: Jan will provide strategic insights into leveraging AI for supply chain plan- ning. • Gokul Gopakumar, VP of Technol- ogy and Business Development, SUN Automation Group: Gokul will share experience and insights into integrating AI and technology to reduce unplanned downtime.
Muhamed Azzouz
Richard Boyd
Jeff DeVries
Jan Geuens
Gokul Gopakumar
• Jim Hawton, Chief Information Technology Officer, Bay Cities: The more connected everything is, the more critical security precautions are. Learn to protect a box plant with Jim.
CONTINUED ON PAGE 30
28
www.boardconvertingnews.com
April 8, 2024
DOUBLE THE OUTPUT OF YOUR EXISTING DIE CUTTER
ASK US HOW.
GEO. M. Martin Company • 1250 67th Street Emeryville, California 94608, United States 510.652.2200 • Fax 510.652.6447 • email info@geomartin.com +1. +1.
The Martin logo and the word Scrubber are Registered Trademarks of the Geo. M. Martin Company.
ROTARY DIE CUTTER STACKERS & PERIPHERALS
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94Made with FlippingBook. PDF to flipbook with ease