As reported by Paperage magazine
Pulp production is being fueled by export containerboard volumes and also by export pulp demand created by the weak U.S. dollar. Prices are also being pushed by Canadian and Brazilian costs of production and higher prices for domestic fiber created by fewer operating sawmills generating wood chips. Additional softwood and eucalyptus pulp capacities coming online in South America and recycled containerboard capacity in China could disrupt the steady pace of price increases seen this year. U.S. producers should still have one good year left in 2008, but it will be a draw for Canadian pulp exporters.
Paper demand in North America is saturated and will continue to be negatively influenced by the move to electronic advertising and a lower level of economic activity. Supply curtailments by International Paper at Bastrop, LA and Pensacola, FL and by Domtar at Woodland, ME, Port Edwards, WI, and Gatineau, QC may buttress domestic uncoated freesheet prices and even provide an opportunity for appreciation, but the grade will still lose some volumes to lower priced uncoated mechanical products made by AbitibiBowater and supercalendered grades which will be made by NewPage. Coated freesheet made by the latter has also been losing market share, and in a slowing economy this decline in demand will dominate prices, despite the fall in imports due to the weak U.S. dollar. The deciding profitability factor for North American paper producers will be cost reduction that can still be wrung from high cost capacity.
Monday, December 31, 2007
Paper Price Forecast for 2008
Because so many Canadian mills and several USA mills have shuttered production facilities and raw materials continue upward cost pressure; paper prices are forecasted to increase. Coated paper in particular is forecasted to increase 15% in first quarter 2008 and another 15% by midyear. Copy paper and papers for desktop printers will increase 10% in 2008. Printers will feel the additional cost increase from inks, forecasted to increase @10% in 2008. Paper.com continually attempts to offer paper at competitive prices, but producers often forced the site to increase prices.
Quick Snap Shot of Major Paper Markets
The uncoated freesheet paper market continued its downward track through 2007 as USA shipments dropped 6% from 2006. Electronic storage, raising postage costs, and automatic invoice payments, even proxy statements now sent electronically were all sited for reduction. The industry has answered the contraction in demand with a corresponding curtailment in supply (see Paper.com News Release on Paper Industry Blog at www.paper.com) Most recent reductions came from International Paper and Georgia Pacific – these two combined removed 700,000 tons. As a result, manufacturers were able to introduce price increases throughout 2007. Demand is expected to continue to decline – experts believe 1.5-2% decrease in 2008.
Coated magazine papers (Groundwood containing) experienced tight supply/demand conditions and lead times were the longest witnessed in several years. Like uncoated papers, the coated producers shuttered equipment – removing some 750,000 tons from the market.
The future is a little uncertain in that China and Japan have announced new equipment coming on line – 4 new machines in Japan and 2 in China. These 6 to start coming on line as early as 2009.
Coated Freesheet not quite as snug as the Groundwood coated market. Producers saw a market demand for product decline 6%.
Newsprint – the paper used for newspapers continues to decline at an increasing speed. Demand forecasted to be down 11% for 2007. This, mainly due to fewer readers – cannibalized by electronic communication.
Coated magazine papers (Groundwood containing) experienced tight supply/demand conditions and lead times were the longest witnessed in several years. Like uncoated papers, the coated producers shuttered equipment – removing some 750,000 tons from the market.
The future is a little uncertain in that China and Japan have announced new equipment coming on line – 4 new machines in Japan and 2 in China. These 6 to start coming on line as early as 2009.
Coated Freesheet not quite as snug as the Groundwood coated market. Producers saw a market demand for product decline 6%.
Newsprint – the paper used for newspapers continues to decline at an increasing speed. Demand forecasted to be down 11% for 2007. This, mainly due to fewer readers – cannibalized by electronic communication.
Printing Impressions announces top Printers for 2007
Top 5 Book Printers
-Quebecor World
-Visant
-Courier Corp.
-Bertelsmann Arvato
-Taylor Publishing
Top 5 Publication Printers
-Quebecor World
-Quad/Graphics
-Brown Printing
-Publishers Press
-The Sheridan Group
Top 5 Catalog Printers
-Quebecor World
-Quad/Graphics
-Arandell Corp
-Consolidated Graphics
-The Sheridan Group
Top 5 Direct mail Printers
-Valassis
-Visant
-IWCO Direct
-Quebecor World
-Clondalkin Group
-Quebecor World
-Visant
-Courier Corp.
-Bertelsmann Arvato
-Taylor Publishing
Top 5 Publication Printers
-Quebecor World
-Quad/Graphics
-Brown Printing
-Publishers Press
-The Sheridan Group
Top 5 Catalog Printers
-Quebecor World
-Quad/Graphics
-Arandell Corp
-Consolidated Graphics
-The Sheridan Group
Top 5 Direct mail Printers
-Valassis
-Visant
-IWCO Direct
-Quebecor World
-Clondalkin Group
Environmentally Friendly Papers continue to be Popular
2007 was the year for tremendous push for environmentally friendly papers and FSC Certification. The THINK GREEN campaign continues. The website, Paper.com, established an entire store within its site strictly for Environmentally friendly papers. Some recent manufactures that were added to the website’s list of ‘green papers include, Newpage’s Sterling Ultra for digital and coated applications; Smart Paper’s 100 percent post consumer, FSC, Genesis paper; Galerie Art – the only 100% post consumer paper designed specifically for Digital application; all the Mohawk Papers – produced from wind power; and, all the new Wausau Paper recycled grades.
2007 Major Mergers and Acquisitions in the Printing Industry
Valassis acquired ADVO ($1.2Bilion)
-M&F purchases John Harland ($1.7bilion)
-Cenveo buys Cadmus Communications ($430million)
-Cenveo also buys ColorGraphics, Printegra, and Commercial Envelope
-RRDonnelly purchases Von Hoffmann ($412million)
-EarthColor bought L.P. Thebault
-Synergy Graphics acquired Sunny Industries
-Consolidated Graphics buys Pikes Peak and Cyril Scott
-M&F purchases John Harland ($1.7bilion)
-Cenveo buys Cadmus Communications ($430million)
-Cenveo also buys ColorGraphics, Printegra, and Commercial Envelope
-RRDonnelly purchases Von Hoffmann ($412million)
-EarthColor bought L.P. Thebault
-Synergy Graphics acquired Sunny Industries
-Consolidated Graphics buys Pikes Peak and Cyril Scott
Papiers Gaspésia Sells Quebec Mill for $40 Million
Papiers Gaspésia has agreed to sell its Quebec mill and associated equipment to Vantek Inc. for US$40 million. Papiers Gaspésia is owned by Société générale de financement du Quebéc, Solidarity Fund QFL, Tembec and Investissement Québec. Vantek plans to sell the main equipment and remove the buildings. Liquidities generated from the deal will be invested in an economic development fund for new projects in the region.
Tuesday, December 18, 2007
Thoughts on Digital Printing
The Domtar Paper website shared many interesting points on digital printing we share in this Paper.com news release
What does digital mean? First of all, let’s clarify what we mean when we talk about digital printing. In the true sense of the word, it means every form of printing that uses digital technology. This includes everything from the laser and inkjet printers in your office to a full-length Xerox iGen3. And even Direct Imaging presses (Heidelberg DI) would fall into this category, as they produce plates on press using digital technology. To simplify: The main difference is that offset presses work in a moist ink-based environment, while digital printers work in a warm, toner-based one. Just think of the cozy warmth that evaporates from a sheet of paper when it first comes out of your laser printer. Digital papers versus digital papers No, this is no typo. Remember I mentioned that “digital” refers to any printer from your laser printer to high speed ones. In many cases, when mills call out papers as “digital,” all they are referring to is cut size sheets that work well in your laser and inkjet printers - 8.5 x 11”, 11 x 17”, you get my drift. We are purely talking size here, as your desktop printer is generally a very forgiving breed when it comes to surface and weight. High-speed digital presses, the ones you and I think of when we hear the term “digital,” are a very different kettle of fish.
Digital Color Production Presses Now we are talking! This is the technology that we think of when we hear the word “digital.” HP Indigo, Xerox iGen3 and Kodak NexPress, the most commonly used models, are also referred to as digital production presses. Hear the word “presses” in the terminology. They provide images in full color, high quality and run at much higher speeds (70-100 pages per minute) than your average desktop printer. Papers for these presses have to endure much more stress, having four colors applied to the sheet - often on both sides - and being chased by the high speed of the press. Truly digital papers Due to the enhanced stress placed on these substrates, mills have responded by designing papers that are precision cut, with a specially formulated surface to retain the toner (or inkjet ink) and increased moisture levels of four-to-five percent. This involves much more than just cutting an existing sheet to size. The development of a truly digital paper can take anywhere from six months to a year. “A driving force behind the growth in digital printing is targeted marketing,” says Mark Favus, group product manager, printing and publishing at Domtar. “But it is not just variable data printing that has taken off. Just think of amazon.com, who is now offering to print complete books on demand.” And for the everyday designer like you and me, the growing demand for shorter print runs has created an all- time high in new equipment placement, as well as encouraged printers that have offered digital printing for years to utilize their presses on more than one shift. And with the increased demand for digital printing, mills are responding with increased paper offerings. Coated versus uncoated As 80 percent of any printing done these days is done on coated sheets, you will also see a larger variety of coated papers available for digital presses. The formulas for coatings change from mill to mill, paper line to paper line, and some of these coatings have proven to be naturals when it comes to printing on digital presses. Coated papers are nice, but there are printed pieces whose design would be enhanced greatly if they were printed on uncoated stocks. Some of the presses mentioned already work with a limited variety of uncoated stocks. But, those that don’t require a special surface treatment. For example, uncoated sheets needed a special sapphire treatment in order to run on Indigo presses for years. This treatment was expensive and caused the paper to yellow within six months, which did not allow the paper to be stocked and, in turn, limited availability. Always up for a good challenge, “Domtar is working on the next generation of uncoated papers with a new surface treatment that is less expensive to apply and will not cause any yellowing,” promises Favus. It is not available on the market as I write this article, but keep your eyes open, it is only a matter of months
What does digital mean? First of all, let’s clarify what we mean when we talk about digital printing. In the true sense of the word, it means every form of printing that uses digital technology. This includes everything from the laser and inkjet printers in your office to a full-length Xerox iGen3. And even Direct Imaging presses (Heidelberg DI) would fall into this category, as they produce plates on press using digital technology. To simplify: The main difference is that offset presses work in a moist ink-based environment, while digital printers work in a warm, toner-based one. Just think of the cozy warmth that evaporates from a sheet of paper when it first comes out of your laser printer. Digital papers versus digital papers No, this is no typo. Remember I mentioned that “digital” refers to any printer from your laser printer to high speed ones. In many cases, when mills call out papers as “digital,” all they are referring to is cut size sheets that work well in your laser and inkjet printers - 8.5 x 11”, 11 x 17”, you get my drift. We are purely talking size here, as your desktop printer is generally a very forgiving breed when it comes to surface and weight. High-speed digital presses, the ones you and I think of when we hear the term “digital,” are a very different kettle of fish.
Digital Color Production Presses Now we are talking! This is the technology that we think of when we hear the word “digital.” HP Indigo, Xerox iGen3 and Kodak NexPress, the most commonly used models, are also referred to as digital production presses. Hear the word “presses” in the terminology. They provide images in full color, high quality and run at much higher speeds (70-100 pages per minute) than your average desktop printer. Papers for these presses have to endure much more stress, having four colors applied to the sheet - often on both sides - and being chased by the high speed of the press. Truly digital papers Due to the enhanced stress placed on these substrates, mills have responded by designing papers that are precision cut, with a specially formulated surface to retain the toner (or inkjet ink) and increased moisture levels of four-to-five percent. This involves much more than just cutting an existing sheet to size. The development of a truly digital paper can take anywhere from six months to a year. “A driving force behind the growth in digital printing is targeted marketing,” says Mark Favus, group product manager, printing and publishing at Domtar. “But it is not just variable data printing that has taken off. Just think of amazon.com, who is now offering to print complete books on demand.” And for the everyday designer like you and me, the growing demand for shorter print runs has created an all- time high in new equipment placement, as well as encouraged printers that have offered digital printing for years to utilize their presses on more than one shift. And with the increased demand for digital printing, mills are responding with increased paper offerings. Coated versus uncoated As 80 percent of any printing done these days is done on coated sheets, you will also see a larger variety of coated papers available for digital presses. The formulas for coatings change from mill to mill, paper line to paper line, and some of these coatings have proven to be naturals when it comes to printing on digital presses. Coated papers are nice, but there are printed pieces whose design would be enhanced greatly if they were printed on uncoated stocks. Some of the presses mentioned already work with a limited variety of uncoated stocks. But, those that don’t require a special surface treatment. For example, uncoated sheets needed a special sapphire treatment in order to run on Indigo presses for years. This treatment was expensive and caused the paper to yellow within six months, which did not allow the paper to be stocked and, in turn, limited availability. Always up for a good challenge, “Domtar is working on the next generation of uncoated papers with a new surface treatment that is less expensive to apply and will not cause any yellowing,” promises Favus. It is not available on the market as I write this article, but keep your eyes open, it is only a matter of months
MARKET PULP UPDATE
As 2007 concludes, the pulp market ends with price increases, with a $25/ton increase to $875/ton for NBSK. This is largely a "supply' driven" increase with wood and energy costs driving the market. Additionally, both SBSK and Eucalyptus prices increased $30/mton in December to $840/mton and $805/mton, respectively. Hardwood is reportedly the
tightest portion of the market. Most experts believe the rally will likely continue into 2008.
Pulp chemical costs have also added pressures to the increases (mainly caustic soda and Sodium Chlorate).
tightest portion of the market. Most experts believe the rally will likely continue into 2008.
Pulp chemical costs have also added pressures to the increases (mainly caustic soda and Sodium Chlorate).
Domtar Closing Paper Mill, Cutting Jobs, Curtailing Production
Ross Marowit of Canadian Press and remarks from industry experts.
Workers in Domtar Canada and U.S. paper mills were handed unwelcome news just days before the holidays, when management announced that 625 jobs will be lost next year to address reduced demand for uncoated freesheet paper.
The mill in Dryden, Ont., is being reorganized and the large No. 2 paper machine, which has been running at half capacity, will shut down Dec. 22. And the smaller No. 1 machine idled for two years will restart in mid-January for a net permanent production reduction of 155,000 tons.
The Port Edwards mill in Wisconsin will cease operation in the second quarter of 2008, cutting 165,000 tons of production.
The moves will remove 342,000 tons of production capacity as the Montreal-based company seeks to rebalance supply and transfer production to more efficient facilities.
CEO Raymond Royer said the measures were required to strengthen Domtar's position as the most efficient producer in North America.
''We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,'' he said in a news release.
Some of the product lines manufactured in Port Edwards will gradually be transferred to other unnamed facilities without affecting customers, the company said.
Mark Bishop of RBC Capital Markets said the decision could help to boost prices and shield the company should the faltering U.S. economy slow further in 2008.
''The fundamentals are better now than they were before, so prices on a net basis will ultimately be better than they would be otherwise,'' he said from Vancouver.
The decision follows a similar announcement during the summer to reduce 284,000 tons of paper capacity.
''Combined with today's announcements, Domtar will have closed approximately five per cent of its North American uncoated freesheet capacity in 2007,'' Pierre Lacroix of Desjardins Securities wrote in a research note.
These decisions represents 2.8 per cent of North American freesheet capacity and eight per cent of the Domtar's freesheet capacity.
The decision was foreshadowed in September, when the company suggested that 425,000 tons of paper could be removed from the system next year.
Demand for uncoated freesheet grade has decreased by 5.5 per cent this year, and is expected to continue to decline by one to two per cent annually in the years to come, said Bishop.
A worsening market and economic situation could lead to additional closures, he added.
''I think there's likely more to come,'' he said, noting that Dryden has been an underperforming asset for a long time and could face an uncertain future if conditions worsen.
Rumors circulated for months that Domtar would close the facility. The company issued a news release last month to deny a report that Domtar was planning to announce the closure of the mill. Domtar spokesman Michel Rathier said the company hopes its decision will enhance the viability of the Dryden mill.
Domtar is the largest integrated producer of uncoated freesheet paper in North America after its merger with the fine paper assets of U.S.-based Weyerhaeuser.
Workers in Domtar Canada and U.S. paper mills were handed unwelcome news just days before the holidays, when management announced that 625 jobs will be lost next year to address reduced demand for uncoated freesheet paper.
The mill in Dryden, Ont., is being reorganized and the large No. 2 paper machine, which has been running at half capacity, will shut down Dec. 22. And the smaller No. 1 machine idled for two years will restart in mid-January for a net permanent production reduction of 155,000 tons.
The Port Edwards mill in Wisconsin will cease operation in the second quarter of 2008, cutting 165,000 tons of production.
The moves will remove 342,000 tons of production capacity as the Montreal-based company seeks to rebalance supply and transfer production to more efficient facilities.
CEO Raymond Royer said the measures were required to strengthen Domtar's position as the most efficient producer in North America.
''We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,'' he said in a news release.
Some of the product lines manufactured in Port Edwards will gradually be transferred to other unnamed facilities without affecting customers, the company said.
Mark Bishop of RBC Capital Markets said the decision could help to boost prices and shield the company should the faltering U.S. economy slow further in 2008.
''The fundamentals are better now than they were before, so prices on a net basis will ultimately be better than they would be otherwise,'' he said from Vancouver.
The decision follows a similar announcement during the summer to reduce 284,000 tons of paper capacity.
''Combined with today's announcements, Domtar will have closed approximately five per cent of its North American uncoated freesheet capacity in 2007,'' Pierre Lacroix of Desjardins Securities wrote in a research note.
These decisions represents 2.8 per cent of North American freesheet capacity and eight per cent of the Domtar's freesheet capacity.
The decision was foreshadowed in September, when the company suggested that 425,000 tons of paper could be removed from the system next year.
Demand for uncoated freesheet grade has decreased by 5.5 per cent this year, and is expected to continue to decline by one to two per cent annually in the years to come, said Bishop.
A worsening market and economic situation could lead to additional closures, he added.
''I think there's likely more to come,'' he said, noting that Dryden has been an underperforming asset for a long time and could face an uncertain future if conditions worsen.
Rumors circulated for months that Domtar would close the facility. The company issued a news release last month to deny a report that Domtar was planning to announce the closure of the mill. Domtar spokesman Michel Rathier said the company hopes its decision will enhance the viability of the Dryden mill.
Domtar is the largest integrated producer of uncoated freesheet paper in North America after its merger with the fine paper assets of U.S.-based Weyerhaeuser.
Sunday, December 16, 2007
Newsprint producer shakeout continues
Newsprint is an uncoated paper that is defined as a grade produced with mechanical (groundwood) fiber and its primary end use is newspapers. The standard basis weight is mainly 30 lbs but weights also include 24 lbs through 35 lbs. Canada is the world leader in newsprint production and the USA is the world’s largest consumer. The bulk of USA newsprint going into daily newspapers. Demand for this grade continues its downward trend (decrease of 10.6% for 9 months 2007 vs. 2006). Many newsprint producers have shuttered equipment as a result.
Top North American Producers (per Pulp and Paper Week Council)
Company Capacity (000) %Market Share
AbitibiBowater 5,755 47.1%
White Birth 1,160 9.5%
Kruger 1155 9.5%
SP Newsprint 990 8.1%
NORPAC 730 6.0%
Catalyst 700 5.7%
Tembec 500 4.1%
Boise Cascade 425 3.5%
Alberta 300 2.5%
Howe Sound 220 1.8%
Total North America capacity 12,200 tons
Top ten producers – 98% of capacity (top 5 – 80%)
Top North American Producers (per Pulp and Paper Week Council)
Company Capacity (000) %Market Share
AbitibiBowater 5,755 47.1%
White Birth 1,160 9.5%
Kruger 1155 9.5%
SP Newsprint 990 8.1%
NORPAC 730 6.0%
Catalyst 700 5.7%
Tembec 500 4.1%
Boise Cascade 425 3.5%
Alberta 300 2.5%
Howe Sound 220 1.8%
Total North America capacity 12,200 tons
Top ten producers – 98% of capacity (top 5 – 80%)
Release Liner for Labels has many Challenges
While the pressure sensitive Industry continues to grow, the threats for poor recylability continue. The 2006 worldwide label demand was nearly 40,000 million square meters spread out as North America 27.5%; South America 7.6%; Europe 31.9%; Asia 29.2% and rest of world 4.0%. The liner continues to be a large component of the cost to the label (@20-30%) and it continues to be focus of environmental sustainability – for lack of recyclable (also a wasteful ‘throw away’).
Domtar advocates Paper is here to Stay!
Domtar recently released a marketing piece outlining why paper is here to stay. Paper is portable, personal , permanent, and effective for marketing. Even in the age of electronics, many surveys confirm paper – power of the written word – is more effective than email and internet marketing. The Domtar promotion also confirms print can not be blocked or defaulted to spam; and has a greater degree of credibility. All important documents are printed – birth certificate, drivers license, graduation diploma, bank documents, etc. no waiting for images to upload, no logging on or hoping for a good connection, no scrolling, and easier on the eyes.
Domtar is the largest producer of uncoated papers in North America and second largest in world. Paper.com sells all the Domtar grades and endorses use of paper. Come to www.paper.com for all your paper needs.
Some additional comments from USPS-
67% of consumers feel mail is more personal than the internet
60% of consumers that read catalogs were influenced to go visit web site
-Catalog recipients purchased 28% more items than website counter parts
Domtar is the largest producer of uncoated papers in North America and second largest in world. Paper.com sells all the Domtar grades and endorses use of paper. Come to www.paper.com for all your paper needs.
Some additional comments from USPS-
67% of consumers feel mail is more personal than the internet
60% of consumers that read catalogs were influenced to go visit web site
-Catalog recipients purchased 28% more items than website counter parts
Neenah continues to go “green”
Neenah Paper has announced that six brands; Classic Crest, Classic Linen, Classic Laid, Classic Columns Classic Cotton, and Starwhite are now manufactured carbon neutral, reducing net greenhouse emissions associated with the paper making process. These grades are Green e-certified.
Paper.com aggressively markets all the Neenah Grades as well as many other text and cover as well as writing grades that are environmentally friendly. The website recently introduced an entire section exclusively for ‘green papers’.
Paper.com aggressively markets all the Neenah Grades as well as many other text and cover as well as writing grades that are environmentally friendly. The website recently introduced an entire section exclusively for ‘green papers’.
Kruger idles SC capacity
Kruger, one of the largest suppliers of supercalendered paper (SC), plans to shutter almost 215,000 tons of SC capacity. This affects the Trois Riviers mill (150.000 tons) and the Wayagamack mill (65,000 tons). The management sited weak Canadian dollar and increased energy cost
Salaries and Paper still greatest costs to Printers
According to PIA/GATF approximately 70% of printer’s sales dollars are used to pay for wages and paper. Energy also was sited as a growing cost concern. The industry sited increases of nearly 5.5% for paper; 3.4% for wages – 9% for health benefits; and energy rose over 6.5%.
Overall Printer Sales Increase for 2007
Although Printers that define themselves primarily as digital printers saw growth of nearly 10% year to date (9.4% over 2006) all mediums also witnessed growth. Namely, Sheetfed 1%; Heatset web 3%; and those printers that are combination of sheetfed/web 1.75%. These figures as reported from a survey done by Heidelberg.
Wednesday, December 12, 2007
Smart Papers looks to Environmentally Friendly Process
U.S. papermaker SMART Papers announced it has achieved Forest Stewardship Council (FSC) certification for its entire Genesis brand of premium uncoated printing and packaging papers. The full FSC certification of Genesis adds to the company’s growing line of FSC-certified papers, including those with post-consumer waste (PCW). SMART Papers, the largest independent North American manufacturer and marketer of premium cast coated, matte coated and uncoated printing papers, also said it now makes a majority of the Genesis papers with 100 percent
post-consumer waste content (PCW).
Paper.com is a very large distributor of all the Smart Papers grades, they are available and ready for immediate shipment.
post-consumer waste content (PCW).
Paper.com is a very large distributor of all the Smart Papers grades, they are available and ready for immediate shipment.
Cranes Announces Price Increase
Crane & Company announcing a price increase effective with orders shipping after January 2nd.
Crane 100% cotton products will increase 5.5% (Cranes Crest and Bond). No increase for Cranes 25% cotton nor any of the envelope items are planned at this time.
The recently introduced grade, Crane Lettra, will increase 10%. The reason for this current increase is higher energy, advanced health care costs for employees, and escalading cost for cotton fiber.
Paper.com is a very large distributor for Crane and Company products and can ship your order before the price increase if ordered any time the week of the 24th of December.
Crane 100% cotton products will increase 5.5% (Cranes Crest and Bond). No increase for Cranes 25% cotton nor any of the envelope items are planned at this time.
The recently introduced grade, Crane Lettra, will increase 10%. The reason for this current increase is higher energy, advanced health care costs for employees, and escalading cost for cotton fiber.
Paper.com is a very large distributor for Crane and Company products and can ship your order before the price increase if ordered any time the week of the 24th of December.
More on Xerox High Yield Business Papers
As reported in past by Paper.com, Xerox has been successful in developing a high yield, groundwood containing business paper. The website markets this product as a high yield business paper AND an environmentally friendly grade. Because of the fiber used in this paper, 50% fewer trees are consumed (versus a regular 20pound bond); less chemicals, and less energy are also required. Ths exciting new ’green’ grade is available for immediate shipment from Paper.com.
Update on StoraEnso Capacity Reductions
In October, Paper.com announced StoraEnso would be reducing capacity of its paper making facilities. We recently learned, the company would be shuttering 500,000 tons of paper and 550,000 tons of pulp. They will permanently close the Summa mill – capacity of 415,000 tons of newsprint, uncoated magazine paper, and book paper – in first quarter of 2008. At StoraEnso’s Anjala mill, paper machine #2, which produces 155,000 of coated magazine paper, will stop production. This machine will be converted to manufacture book paper. Once this rebuild is complete, #1 paper machine at Anjala will be closed – eliminating 120,000 tons of book paper.
Wausau to Shutter Groveton, NH mill
As previously reported by Paper.com, Wausau will close its New Hampshire paper mill. The effective date has now been confirmed for December 31,2007. The mill had produced 105,000 tons per year of printing and writing grades, which was 28% of Wausau’s total system capacity.
Paper.com is a very large distributor of Wausau’s grades and will continue to market grades from competitor mills with the same quality Wausau produced at this mill after December.
Paper.com is a very large distributor of Wausau’s grades and will continue to market grades from competitor mills with the same quality Wausau produced at this mill after December.
Where have all the Readers Gone?
United States continues to show drop off in levels of readers in the past two decades. The National Endowment for the Arts (NEA) reports a general decline among teenage and adult readers. One cannot deny the increase in electronic media and devices are competing for the printed word. The association commented –
50% of Americans between 18 and 24 are not reading books for pleasure; less than one third of the 13 year olds are daily readers; and 15 to 24 year olds spend only 7 – 10 minutes per day on voluntary reading (same group watches over 2 hours of TV/day).
Consider a book, or a gift certificate from a website such as Paper.com for writing or stationery paper this Christmas. Help reverse this trend.
50% of Americans between 18 and 24 are not reading books for pleasure; less than one third of the 13 year olds are daily readers; and 15 to 24 year olds spend only 7 – 10 minutes per day on voluntary reading (same group watches over 2 hours of TV/day).
Consider a book, or a gift certificate from a website such as Paper.com for writing or stationery paper this Christmas. Help reverse this trend.
Paper mills haven’t kept pace with inflation
By Tom Stundza -- Purchasing
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Schweitzer-Mauduit to cut Capacity
Schweitzer-Mauduit will reduce paper production in both USA and France by shuttering four paper machines. The USA mill is located in Lee, MA and produced tipping paper for the cigarette industry. The company sited a reduction in demand for traditional tobacco related paper.
Tuesday, December 04, 2007
AbitibiBowater announces $60/tonne US newsprint hike in 1Q 2008
AS reported by RISI
AbitibiBowater told North American customers it would increase the price of newsprint by $60/tonne during the first quarter of 2008, through a series of $20/tonne monthly increments in January, February and March. Contacts said the company's motivation for making the announcement this far ahead was to give its newsprint customers reasonable notice of what to expect.
AbitibiBowater is the world's largest newsprint manufacturer and owns about 45% of North American production capacity. It is midway through a 30-day strategic review of its assets that is widely expected to result in significant capacity closures. Sources said that while buyers were "not delighted" by the announcement a lot of understanding existed concerning the company's financial predicament. The price of newsprint has fallen 17% in the past year, and since the AbitibiBowater merger was announced on January 29 the company has lost about two-thirds of its equity value.
Some producer sources also characterized the North American newsprint market as having become noticeably tighter lately, and forecast that rebating of the $25/tonne fall increase that producers have struggled since September to implement would be less widespread in November than many customers anticipated.
AbitibiBowater told North American customers it would increase the price of newsprint by $60/tonne during the first quarter of 2008, through a series of $20/tonne monthly increments in January, February and March. Contacts said the company's motivation for making the announcement this far ahead was to give its newsprint customers reasonable notice of what to expect.
AbitibiBowater is the world's largest newsprint manufacturer and owns about 45% of North American production capacity. It is midway through a 30-day strategic review of its assets that is widely expected to result in significant capacity closures. Sources said that while buyers were "not delighted" by the announcement a lot of understanding existed concerning the company's financial predicament. The price of newsprint has fallen 17% in the past year, and since the AbitibiBowater merger was announced on January 29 the company has lost about two-thirds of its equity value.
Some producer sources also characterized the North American newsprint market as having become noticeably tighter lately, and forecast that rebating of the $25/tonne fall increase that producers have struggled since September to implement would be less widespread in November than many customers anticipated.
US pulp, paper industry 3Q results
as reported by RISI
US pulp, paper industry 3Q results up sequentially but down year-over-year;
higher prices push margin to 4.2%
Third quarter 2007 earnings for US paper andforest products companies improved sequentially from second quarter ongenerally higher volumes and prices for most pulp and paper grades. Despite headwinds of higher input costs for energy, chemicals, and transportation, the higher prices in most key benchmark grades (pulp, uncoated freesheet,
containerboard, and coated papers) helped boost profits nearly equal to last year's third quarter, according to a survey by Pulp and Paper Week. However, companies with added heavy exposure to recovered paper, lumber, newsprint, and the Canadian dollar felt the earnings squeeze and depressed the overall earnings composite.
The earnings for a composite index of 27 US companies dropped 5.1% during third quarter 2007 compared with third quarter 2006, yet up sequentially compared with second quarter 2007. The collective profit margin for the group totaled 4.2%, up from a revised 3.0% in the second quarter, and nearly equal to the two-year high of 4.5% in third quarter 2006, according to the P&PW survey.
Sales for the 27 companies totaled were up more than 1% year-over-year. Only one company -- Bowater -- posted a loss during the quarter. Bowater incurred a $60 million loss due to its triple whammy exposure to declining newsprint markets and pricing, lumber, and the surging Canadian dollar. The composite of US companies shows that while nearly all companies made
money during the quarter and many companies reported double-digit gains, real dollar year-over-year earnings gains were modest. Yet by focusing on cost curtailment in light of escalating energy and freight costs, companies were able to maintain and, in most cases, improve their quarterly earnings from last year.
Except for newsprint and some uncoated mechanical grades, prices for all other major pulp and paper grades have risen since October 2006. These higher prices translated into higher earnings. Mid-sized producers Packaging Corp of America (PCA), and Rock-Tenn reported
record earnings for the third quarter. PCA's earnings improved 11.7% to total $48.7 million, while Rock-Tenn, benefiting from strong demand for its recycled paperboard grades, posted earnings of $22.3 million, 13.7% higher than last year's comparable quarter, which pushed a record quarter into a record year.
US pulp, paper industry 3Q results up sequentially but down year-over-year;
higher prices push margin to 4.2%
Third quarter 2007 earnings for US paper andforest products companies improved sequentially from second quarter ongenerally higher volumes and prices for most pulp and paper grades. Despite headwinds of higher input costs for energy, chemicals, and transportation, the higher prices in most key benchmark grades (pulp, uncoated freesheet,
containerboard, and coated papers) helped boost profits nearly equal to last year's third quarter, according to a survey by Pulp and Paper Week. However, companies with added heavy exposure to recovered paper, lumber, newsprint, and the Canadian dollar felt the earnings squeeze and depressed the overall earnings composite.
The earnings for a composite index of 27 US companies dropped 5.1% during third quarter 2007 compared with third quarter 2006, yet up sequentially compared with second quarter 2007. The collective profit margin for the group totaled 4.2%, up from a revised 3.0% in the second quarter, and nearly equal to the two-year high of 4.5% in third quarter 2006, according to the P&PW survey.
Sales for the 27 companies totaled were up more than 1% year-over-year. Only one company -- Bowater -- posted a loss during the quarter. Bowater incurred a $60 million loss due to its triple whammy exposure to declining newsprint markets and pricing, lumber, and the surging Canadian dollar. The composite of US companies shows that while nearly all companies made
money during the quarter and many companies reported double-digit gains, real dollar year-over-year earnings gains were modest. Yet by focusing on cost curtailment in light of escalating energy and freight costs, companies were able to maintain and, in most cases, improve their quarterly earnings from last year.
Except for newsprint and some uncoated mechanical grades, prices for all other major pulp and paper grades have risen since October 2006. These higher prices translated into higher earnings. Mid-sized producers Packaging Corp of America (PCA), and Rock-Tenn reported
record earnings for the third quarter. PCA's earnings improved 11.7% to total $48.7 million, while Rock-Tenn, benefiting from strong demand for its recycled paperboard grades, posted earnings of $22.3 million, 13.7% higher than last year's comparable quarter, which pushed a record quarter into a record year.
COATED FREESHEET UPDATE
Coated Free Sheet prices are rising, with the price on No. 3 60lb coated rising $5/ton in September, after a $30/ton increase in August. Prices continue to rise in October up another $20/ton. Chinese mills have done an met with success on antidumping duties as well as boosting the content of mechanical pulp in their paper and have shift almost all of their lost CFS tonnage to LWC. Also, the US Government recently ruled against the new tariffs for the coated Freesheet grades. as reported earlier in Paper.com news release. NewPage attempted to have these grades included under the antidumping ruling. NewPage is also suggesting that they will soon file antidumping charges against European coated producers. Anyones guess as to whether the price increase will now stick.
LinerBoard to Increase in Price
International Paper announced $60/ton hike on white top linerboard price, effective Dec. 3rd. We assume other producers such as PCA, Temple and Weyerhaeuser will announce an increase shortly.
Postal: Rates Hikes Will Follow Reform Bill
Catalogers and heavy mailers can breath a sigh of relief because officials state that postal rate increases will now follow the Postal Reform bill passed 11 months ago. The U.S. Postal Service's Board of Governors announced that future price increases will be tied to the Consumer Price Index (CPI), or rate of inflation, for mailing services that include First Class, Standard Mail, and periodicals.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board's decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for
emergency rate increases.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board's decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for
emergency rate increases.
UNCOATED FREE SHEET UPDATE
Despite modest demand, for uncoated freesheet in USA, the $60/ton price hike initiative on offset grades is almost fully implemented, as November's $10/ton rise takes prices up $50/ton over the last two months. Trade book prices are up $80/ton in the last two months. October uncoated freesheet shipments dropped 2.4% from last year. Our trade sources suggest that the domestic pricing momentum in spot pricing on uncoated free sheet grades has moderated a somewhat in recent weeks. As noted in past news releases, supply reductions are keeping the
market in reasonable balance. Wausau Paper announced plans to shutter its
105K Groveton, NH mill on December 31st and International Paper will remove 250K/tons
at Bastrop, LA in 2008. Domtar continues to hint at more supply moves.
At the same time, reports suggest some strengthening in European prices.
market in reasonable balance. Wausau Paper announced plans to shutter its
105K Groveton, NH mill on December 31st and International Paper will remove 250K/tons
at Bastrop, LA in 2008. Domtar continues to hint at more supply moves.
At the same time, reports suggest some strengthening in European prices.
China Wins Recent Pricing Battle for Coated Papers
The American coated paper producers received a disappointing message in their fight against Chinese imports. Recall the breaking news Paper.com reported last month outlining initial victory with President Bush voting in favor of a large tariff (20-30%) on imported coated papers. NewPage, a large coated paper producer stated they and other manufacturers were materially 'injured’ with low priced, subsidized imports from countries such as China, South Korea and Indonesia. The Federal Trade Commission ruled that these imports did not cause harm and voted against the tariff. Furthermore, the World Trade Organization is reviewing whether these tariffs are legal. In the meanwhile, the newly imposed tariffs are canceled. The Commerce Department is now reviewing.
AbitibiBowater to Shutter, Idle Mills
AbitibiBowater Inc., one of the largest newsprint manufacturers in North America, said it plans to close four paper mills, idle operations at others.
The Montreal-based company, formed last month from the merger of
Abitibi-Consolidated Inc. and Bowater Inc., said the production changes, which will take place during the first quarter of next year, will lower its newsprint and commercial printing paper production capacity by about 1 million metric tons per year.
The mills slated for permanent closure are Belgo, Dalhousie, Fort William and Lufkin. One paper machine at the company's Gatineau facility in Quebec will also be permanently shut down. All but the Belgo and Dalhousie facilities previously stood idle; the idled operations had a combined capacity of 650,000 metric tons.
AbitibiBowater also plans to indefinitely idle two Canadian paper mills, the Donnacona and Mackenzie, as well as two sawmills tied to paper production at the Mackenzie facility.
The Montreal-based company, formed last month from the merger of
Abitibi-Consolidated Inc. and Bowater Inc., said the production changes, which will take place during the first quarter of next year, will lower its newsprint and commercial printing paper production capacity by about 1 million metric tons per year.
The mills slated for permanent closure are Belgo, Dalhousie, Fort William and Lufkin. One paper machine at the company's Gatineau facility in Quebec will also be permanently shut down. All but the Belgo and Dalhousie facilities previously stood idle; the idled operations had a combined capacity of 650,000 metric tons.
AbitibiBowater also plans to indefinitely idle two Canadian paper mills, the Donnacona and Mackenzie, as well as two sawmills tied to paper production at the Mackenzie facility.
Newton Falls Mill Resumes Coated Paper Production
Newton Falls Fine Paper has begun paper production at the former St. Lawrence mill in Newton Falls, NY, which was previously owned by Belkorp Industries subsidiary Newstech.
PM 4 at the two-machine mill was restarted Sept. 7 and is making upwards of 80,000 tons/yr of 45 lb to 103 lb matte coated paper for book and commercial printing end uses such as catalogs and direct mail. A restart for PM 3 has yet to be slated.
The 150,000 tons/yr Newton Falls mill had been shuttered for seven years, but was so well maintained that it was making saleable paper within 36 hours of resuming operations.
PM 4 at the two-machine mill was restarted Sept. 7 and is making upwards of 80,000 tons/yr of 45 lb to 103 lb matte coated paper for book and commercial printing end uses such as catalogs and direct mail. A restart for PM 3 has yet to be slated.
The 150,000 tons/yr Newton Falls mill had been shuttered for seven years, but was so well maintained that it was making saleable paper within 36 hours of resuming operations.
The Top 10 Challenges of Digital Printing
By Peter Renton the founder of Lightning Labels Inc
Digital label printing is no longer some exotic technology that belongs more to the future of label printing than the present. HP Indigo, the leading digital label press manufacturer, recently reported more than 500 press installations worldwide. The company is now one of the top three label press manufacturers in terms of unit sales. In the last two years the number of HP installed presses has doubled and the number of labels printed has quadrupled.
With this kind of success it is fair to say that digital label printing has become mainstream. However, this doesn’t mean that going digital does not present its own unique challenges. This article will discuss some of these challenges and how to deal with them. It will focus on the HP Indigo technology because that is the leading player in this field, although today there are several other choices if you are considering a digital press.
1. Getting business
Whether you have a digital press, a flexo, gravure, screen, or offset press, the most important challenge is always to make sure you have enough profitable business to fill the press time. The additional challenge with digital is that because of its slower print speed you need to focus on the shorter runs. No doubt you will be relying on your sales people to leverage your existing customers, but you will probably need a plan to get business from new customers as well. The good news is that there are many more businesses out there looking for short run labels than long runs, but you need a good sales plan that focuses on these smaller companies in order to get this business.
2. Putting new systems in place
Another huge challenge is how to integrate digital printing into an existing converting operation. If you use exactly the same systems as you do with your flexo press you will be wasting time and resources. The challenge is to implement new systems from sales and customer service all the way through to rewinding and shipping. Digital printing by its very nature is a more lean manufacturing process; there are fewer steps involved in production and less waste. If you are taking more than a week to turn around your digital printing orders, then you either need more capacity or you have too much waste in your system.
3. Substrates
You cannot run just any substrate through an HP press; most substrates have to be specially coated before the ink will adhere properly. This is not the issue it once was, because most of the major substrate vendors now have several different choices of material coated for the HP presses. Of course, there is always the option for you to coat the material yourself on an existing flexo press, but that is more challenging than you might think. Different materials require different coatings and there is a lot of trial and error involved before coming up with the right formula. Another alternative is to outsource the coating to a company that specializes in it. Masterpiece Graphix in St. Louis is HP’s only certified North American treatment center for coating material, and you can have them coat pretty much any material that you can run through an HP press.
4. Finding the right people
If you expect a flexo operator to jump in and operate an HP press with ease you will be sorely disappointed. HP provides two weeks of operator training at the end of which time your operator should be able to print labels and replace consumables just fine. The challenge he or she will face is in resolving problems (see point 7). It takes a great deal of experience to know just what is really causing the print problems you will inevitably experience. As for what kind of person makes the best operator, there is some debate among HP users. A flexo operator who is good with new technology would work well, but other shops prefer a prepress person who has some mechanical skill. Either type of person should work, but it will be a long learning curve for someone who has little experience with either prepress or press operation.
5. Managing color
As with all presses, managing color is a constant issue on a digital press. The ws4500 press is the best press HP has ever produced as far as repeatability of color, but there will still be some issues. It is important to maintain a consistent operating environment. These presses work best with a constant temperature of around 70°F and a humidity of 40 to 50 percent. If you stray too far from these settings you will get color problems. As with any four color process press, matching a PMS is always a challenge, but HP provides an optional six color process solution called Indichrome (CMYK plus orange and violet) that helps match the majority of PMS colors very closely. The biggest challenge for flexo shops will always be matching color between the digital and flexo presses. Prepress tools from Esko can help with this process, but with two totally different printing technologies matching color exactly will often be very difficult.
6. Integrating with finishing
There are plenty of finishing options available today for the HP presses. You have three excellent solutions that are provided by AB Graphic, Rotoflex and Delta, and these vendors continue to improve their presses. Keeping the diecutting registration is the biggest challenge even with these new presses, and if you have mainly very short runs, swapping dies in and out will slow down your productivity. Also, HP Indigo inks are not particularly durable so you should plan on adding a UV varnish or laminate to most of your labels.
7. Troubleshooting press problems
Why is the press running a little heavy in magenta? What is causing the white spots on these labels? Why is there banding in the dark blue colors? Why can’t I match the proof I printed yesterday? There are literally dozens of possibilities to each of these typical press problems. And these problems can drive inexperienced press operators crazy. There is no substitute for experience, and an experienced operator can look at a problem and know the most likely cause. Online user forums such as DICE (Digital Imaging Customer Exchange) and DSCOOP (Digital Solutions Cooperative run by HP) can be really valuable for helping to troubleshoot problems if your operator is stumped. You can search through the archives for your problem and often find a solution on the spot. Or you can post a question to the group and often get a response within minutes.
8. Press maintenance
You can avoid many of the press problems mentioned above by maintaining your digital press properly. To print consistently well, HP digital presses need rigorous maintenance. There are blankets that need changing at least every 50,000 impressions or so, and the photo imaging plate or PIP (the plate that takes the lasered image) also needs to be changed regularly. If you push either of these components your print quality will start to decline. There is a regular maintenance schedule for dozens of other parts that needs to be adhered to as well. Also, adhesive buildup throughout the press can become an issue if it is not cleaned regularly. The challenge comes when you are very busy and it is tempting to skimp on maintenance, but in the long run this will only cause more total downtime.
9. Got database knowledge?
The ability to print variable data is one of the main benefits of digital printing. But to take advantage of all of the capabilities that this provides you need to have someone who knows databases very well. The HP press takes a CSV file as the input database file (which every database program can export to) so you have lots of choices here. Microsoft Excel is the standard here, most of us have it on our PCs and it is easy to get help if you have a problem.
Here are a couple of typical database challenges. A customer may request consecutive labels from A00001 to A19999, but with the even numbers all on one roll and the odd numbers all on another roll. Or it might be that the even numbers repeat three times, and the odd numbers only repeat twice. And the requests can get much more complex than that. You need to be able to set up the database so the variable data job will run both efficiently and correctly — keeping in mind that an error in a sequential run will often force you to repeat the whole job to achieve the required result.
10. Dealing with inexperienced customers
Most label converters have to deal with some unsophisticated or unknowledgeable customers, but when dealing with customers who want only a few hundred labels you are more likely to come across this in your digital printing operation. It is a constant challenge, and one that involves a lot of education by your prepress operators.
We have a document on our web site that points out the most common artwork problems, but we still have to deal with missing fonts, RGB files and low resolution JPEGs every day. We take the time to educate the customer, so when they come back we can get high quality files and go straight to press. Similarly, your sales force and customer service staff have to become adept at dealing with “first timers” who have no knowledge of printing in general, let alone the intricacies unique to labels.
There are plenty of other challenges that haven’t been mentioned here, but these are the main issues that everyone will have to deal with in their digital printing operation. None of these challenges are insurmountable and with an experienced staff you might find some don’t come into play much at all. Digital printing continues to make advances with each new generation of machines eliminating some of the challenges of the previous generation. By being aware of and dealing with the challenges that do exist, you can take advantage of the many benefits that digital printing provides.
Digital label printing is no longer some exotic technology that belongs more to the future of label printing than the present. HP Indigo, the leading digital label press manufacturer, recently reported more than 500 press installations worldwide. The company is now one of the top three label press manufacturers in terms of unit sales. In the last two years the number of HP installed presses has doubled and the number of labels printed has quadrupled.
With this kind of success it is fair to say that digital label printing has become mainstream. However, this doesn’t mean that going digital does not present its own unique challenges. This article will discuss some of these challenges and how to deal with them. It will focus on the HP Indigo technology because that is the leading player in this field, although today there are several other choices if you are considering a digital press.
1. Getting business
Whether you have a digital press, a flexo, gravure, screen, or offset press, the most important challenge is always to make sure you have enough profitable business to fill the press time. The additional challenge with digital is that because of its slower print speed you need to focus on the shorter runs. No doubt you will be relying on your sales people to leverage your existing customers, but you will probably need a plan to get business from new customers as well. The good news is that there are many more businesses out there looking for short run labels than long runs, but you need a good sales plan that focuses on these smaller companies in order to get this business.
2. Putting new systems in place
Another huge challenge is how to integrate digital printing into an existing converting operation. If you use exactly the same systems as you do with your flexo press you will be wasting time and resources. The challenge is to implement new systems from sales and customer service all the way through to rewinding and shipping. Digital printing by its very nature is a more lean manufacturing process; there are fewer steps involved in production and less waste. If you are taking more than a week to turn around your digital printing orders, then you either need more capacity or you have too much waste in your system.
3. Substrates
You cannot run just any substrate through an HP press; most substrates have to be specially coated before the ink will adhere properly. This is not the issue it once was, because most of the major substrate vendors now have several different choices of material coated for the HP presses. Of course, there is always the option for you to coat the material yourself on an existing flexo press, but that is more challenging than you might think. Different materials require different coatings and there is a lot of trial and error involved before coming up with the right formula. Another alternative is to outsource the coating to a company that specializes in it. Masterpiece Graphix in St. Louis is HP’s only certified North American treatment center for coating material, and you can have them coat pretty much any material that you can run through an HP press.
4. Finding the right people
If you expect a flexo operator to jump in and operate an HP press with ease you will be sorely disappointed. HP provides two weeks of operator training at the end of which time your operator should be able to print labels and replace consumables just fine. The challenge he or she will face is in resolving problems (see point 7). It takes a great deal of experience to know just what is really causing the print problems you will inevitably experience. As for what kind of person makes the best operator, there is some debate among HP users. A flexo operator who is good with new technology would work well, but other shops prefer a prepress person who has some mechanical skill. Either type of person should work, but it will be a long learning curve for someone who has little experience with either prepress or press operation.
5. Managing color
As with all presses, managing color is a constant issue on a digital press. The ws4500 press is the best press HP has ever produced as far as repeatability of color, but there will still be some issues. It is important to maintain a consistent operating environment. These presses work best with a constant temperature of around 70°F and a humidity of 40 to 50 percent. If you stray too far from these settings you will get color problems. As with any four color process press, matching a PMS is always a challenge, but HP provides an optional six color process solution called Indichrome (CMYK plus orange and violet) that helps match the majority of PMS colors very closely. The biggest challenge for flexo shops will always be matching color between the digital and flexo presses. Prepress tools from Esko can help with this process, but with two totally different printing technologies matching color exactly will often be very difficult.
6. Integrating with finishing
There are plenty of finishing options available today for the HP presses. You have three excellent solutions that are provided by AB Graphic, Rotoflex and Delta, and these vendors continue to improve their presses. Keeping the diecutting registration is the biggest challenge even with these new presses, and if you have mainly very short runs, swapping dies in and out will slow down your productivity. Also, HP Indigo inks are not particularly durable so you should plan on adding a UV varnish or laminate to most of your labels.
7. Troubleshooting press problems
Why is the press running a little heavy in magenta? What is causing the white spots on these labels? Why is there banding in the dark blue colors? Why can’t I match the proof I printed yesterday? There are literally dozens of possibilities to each of these typical press problems. And these problems can drive inexperienced press operators crazy. There is no substitute for experience, and an experienced operator can look at a problem and know the most likely cause. Online user forums such as DICE (Digital Imaging Customer Exchange) and DSCOOP (Digital Solutions Cooperative run by HP) can be really valuable for helping to troubleshoot problems if your operator is stumped. You can search through the archives for your problem and often find a solution on the spot. Or you can post a question to the group and often get a response within minutes.
8. Press maintenance
You can avoid many of the press problems mentioned above by maintaining your digital press properly. To print consistently well, HP digital presses need rigorous maintenance. There are blankets that need changing at least every 50,000 impressions or so, and the photo imaging plate or PIP (the plate that takes the lasered image) also needs to be changed regularly. If you push either of these components your print quality will start to decline. There is a regular maintenance schedule for dozens of other parts that needs to be adhered to as well. Also, adhesive buildup throughout the press can become an issue if it is not cleaned regularly. The challenge comes when you are very busy and it is tempting to skimp on maintenance, but in the long run this will only cause more total downtime.
9. Got database knowledge?
The ability to print variable data is one of the main benefits of digital printing. But to take advantage of all of the capabilities that this provides you need to have someone who knows databases very well. The HP press takes a CSV file as the input database file (which every database program can export to) so you have lots of choices here. Microsoft Excel is the standard here, most of us have it on our PCs and it is easy to get help if you have a problem.
Here are a couple of typical database challenges. A customer may request consecutive labels from A00001 to A19999, but with the even numbers all on one roll and the odd numbers all on another roll. Or it might be that the even numbers repeat three times, and the odd numbers only repeat twice. And the requests can get much more complex than that. You need to be able to set up the database so the variable data job will run both efficiently and correctly — keeping in mind that an error in a sequential run will often force you to repeat the whole job to achieve the required result.
10. Dealing with inexperienced customers
Most label converters have to deal with some unsophisticated or unknowledgeable customers, but when dealing with customers who want only a few hundred labels you are more likely to come across this in your digital printing operation. It is a constant challenge, and one that involves a lot of education by your prepress operators.
We have a document on our web site that points out the most common artwork problems, but we still have to deal with missing fonts, RGB files and low resolution JPEGs every day. We take the time to educate the customer, so when they come back we can get high quality files and go straight to press. Similarly, your sales force and customer service staff have to become adept at dealing with “first timers” who have no knowledge of printing in general, let alone the intricacies unique to labels.
There are plenty of other challenges that haven’t been mentioned here, but these are the main issues that everyone will have to deal with in their digital printing operation. None of these challenges are insurmountable and with an experienced staff you might find some don’t come into play much at all. Digital printing continues to make advances with each new generation of machines eliminating some of the challenges of the previous generation. By being aware of and dealing with the challenges that do exist, you can take advantage of the many benefits that digital printing provides.
Pulp Prices are Continuing to Increase
Paper mills haven’t kept pace with inflation according to Tom Stundza of Purchasing Magazine.
Pulp prices, which have been rising monthly since March 2006, and they will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasing data.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, and they will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasing data.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp Prices are Continuing to Increase
Paper mills haven’t kept pace with inflation according to Tom Stundza of
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Pulp prices, which have been rising monthly since March 2006, will increase again in December. But, if the pattern holds, buyers at paper mills won’t pay the full $30/metric ton increases all at once. The new price hikes have been announced by Fraser Papers, Pope & Talbot and Marubeni Pulp & Paper North America.
Meanwhile, Brazil’s Aracruz, the world’s largest market pulp producer, has informed customers worldwide that it will increase bleached eucalyptus pulp prices $30/metric ton. The increase would bring Aracruz’s bleached eucalyptus price to $805/metric ton in North America, $780 in Europe and $720 in Asia.
The problem for paper mills is that price increases haven’t kept pace with raw materials increases. While the pulp price index tracked by Purchasingdata.com has increased by 39% from January 2006 to November 2007, the paper price index has inflated by just 10%.
Highlights from Deutsche Bank Session on Paper Industry
* Highlights from Ohio investor trip
Deutsche Bank recently sponsored an Ohio investor trip. We visited a variety of public & private companies, all in the paper & packaging sector. The companies visited on our tour included: Glatfelter, Greif, NewPage and Sonoco. Summary comments are found below.
* Glatfelter – Chillicothe leverage could exceed current targetsAfter struggling during the first 9-12 months of ownership, GLT appears to be putting Chillicothe on track. While the Chilicothe complex is large and sprawling with several older buildings, the core machines are relatively large and appear well-maintained. The
mill has absorbed $550MM of invested capital since 1990. The mill is well-positioned from a fiber cost/supply standpoint.
* NewPage – Duties and currency could restructure global coated industry
NewPage has successfully pressed antidumping claims against Asian coated paper producers. NewPage will file antidumping claims against the Europeans. When coupled with FX moves, the European anti-dumping case could accelerate a restructuring of the entire global coated paper sector.
Deutsche Bank recently sponsored an Ohio investor trip. We visited a variety of public & private companies, all in the paper & packaging sector. The companies visited on our tour included: Glatfelter, Greif, NewPage and Sonoco. Summary comments are found below.
* Glatfelter – Chillicothe leverage could exceed current targetsAfter struggling during the first 9-12 months of ownership, GLT appears to be putting Chillicothe on track. While the Chilicothe complex is large and sprawling with several older buildings, the core machines are relatively large and appear well-maintained. The
mill has absorbed $550MM of invested capital since 1990. The mill is well-positioned from a fiber cost/supply standpoint.
* NewPage – Duties and currency could restructure global coated industry
NewPage has successfully pressed antidumping claims against Asian coated paper producers. NewPage will file antidumping claims against the Europeans. When coupled with FX moves, the European anti-dumping case could accelerate a restructuring of the entire global coated paper sector.
Uncoated Groundwood Prices still up
Uncoated Groundwood specialty grades are those grades that are produced with mechanical fiber and are of lighter quality than simple newsprint. The brightness is typically higher than 65 ISO; it is smoother than newsprint, heavier in weight and has some special characteristics such as higher bulk. This grade can end up being used for preprinted newspaper inserts, direct mail flyers, catalogues, magazines, Sunday newspaper magazines, paperback book paper, and telephone books.
The total North American capacity for producing these grades is at 6.7million tons. Although demand has been fairly flat the past few years, capacity has been taken out of the market and therefore with less supply pricing remains firm. The supercalender portion of the market enjoys excellent demand.
Top North American producers of Specialty Groundwod include
Mill Capacity (000) Market Share (Source RISI)
Abitibi/Bowater 2,755 39.7%
Catalyst 870 12.6%
Stora Enso 710 10.2%
Fraser/Katahdin 500 7.2%
Irving 420 6.1%
Kruger 285 4.1%
St Marys 220 3.2%
Manistique 120 1.7%
White Birch 95 1.4%
Norpac 75 1.1%
The total North American capacity for producing these grades is at 6.7million tons. Although demand has been fairly flat the past few years, capacity has been taken out of the market and therefore with less supply pricing remains firm. The supercalender portion of the market enjoys excellent demand.
Top North American producers of Specialty Groundwod include
Mill Capacity (000) Market Share (Source RISI)
Abitibi/Bowater 2,755 39.7%
Catalyst 870 12.6%
Stora Enso 710 10.2%
Fraser/Katahdin 500 7.2%
Irving 420 6.1%
Kruger 285 4.1%
St Marys 220 3.2%
Manistique 120 1.7%
White Birch 95 1.4%
Norpac 75 1.1%
Subscribe to:
Posts (Atom)
