The paperless office is a myth. The fact remains that documents, forms, email, and memos move from paper to digital AND BACK TO PAPER AGAIN!. I would argue, that the world is now consuming more paper in the office environment, It has become extremely important to integrate paper into digital workflows in order to centralize record keeping, archive, and distribute for wide spread readership and presentation.
Paper.com has every paper, every color, every style for the office environment.
Tuesday, October 25, 2005
Wausau Paper Reports a Loss for Third Quarter
Wausau reported a net loss this past quarter of $9million compare to earning $8.1million for the third quarter 2004. Although the Tissue and Towel unit as well as the Specialty Division yielded positive sales, the printing and writing sector remained weak and the mill could not raise prices to cover increases in energy, chemicals, and transportation. Management sited success with its new grade introductions of OptiServ, Exact Ice, and Exact Digital.
Wausau reduced printing and writing capacity in Brianerd by 5000 tons and over 50,000 tons in Brokaw (Brokaw continues to take down time).
Paper.com has Wausau available, in stock, and ready for immediate shipment.
Wausau reduced printing and writing capacity in Brianerd by 5000 tons and over 50,000 tons in Brokaw (Brokaw continues to take down time).
Paper.com has Wausau available, in stock, and ready for immediate shipment.
Thursday, October 20, 2005
Southworth announces new Line
Southworth, a producer of cotton-fiber writing papers, has expanded its line to include use for making customized awards and certificates. The new portfolio of 25 grades including one that comes with a CD containing 50 design templates. Come to www.paper.com for all the Southworth grades.
Stora-Enso announces a restructure
Stora-Enso merged its North American operations into global product divisions. The North American coated magazine, uncoated magazine, and newsprint will now be Stora Enso Publication; Fine Paper will be Stora Enso Fine Paper; and Specialty Papers will be integrated into Stora Enso Packaging Boards.
Summary of Uncoated Wood Free Market
Overall summary of Uncoated Woodfree market includes
-Weyerhaeuser, Domtar, Boise all announced a $40/cwt ($800/ton) price increase.
-Grades includes copy paper, reply card, opaque, and forms bond
-Paper.com predicted this would not be successful - and to date - this increase has been pushed back twice
-Producers felt they could capture this increase because of
-Increased costs (chemicals, energy, benefits, freight)
-North American capacity closures - 6 paper machines; 640,000 tons; 4.1% of capacity last 12 months.
-Seasonal upturn in demand
-New higher brightness sheet now offered
-New Uncoated sheet offering
-International Paper was first to announce increasing brightness from 84 to 92 on offset and 88 to 94 on opaque.
-IP produces 3.5million tons of uncoated paper (entire North American capacity 13million tons)
-Weyerhaeuser, Domtar, Boise all announced a $40/cwt ($800/ton) price increase.
-Grades includes copy paper, reply card, opaque, and forms bond
-Paper.com predicted this would not be successful - and to date - this increase has been pushed back twice
-Producers felt they could capture this increase because of
-Increased costs (chemicals, energy, benefits, freight)
-North American capacity closures - 6 paper machines; 640,000 tons; 4.1% of capacity last 12 months.
-Seasonal upturn in demand
-New higher brightness sheet now offered
-New Uncoated sheet offering
-International Paper was first to announce increasing brightness from 84 to 92 on offset and 88 to 94 on opaque.
-IP produces 3.5million tons of uncoated paper (entire North American capacity 13million tons)
Hurricane Katrina Hurts Paper Industry
We read about the aftermath of Hurricane Katrina, and all reports are very bad. Specific to the pulp and paper industry, the hurricane had many negative effects. Local infrastructure - transportation, electricity, communication, and floods - also affected many paper mills in the area. The chemical industry has many facilities that produce products for the paper industry are concentrated in the Gulf States. Most notable Hercules and Dupont have a large presence.
Mills that were shut down include Tembec, Koch Cellulose, Boise Cascade, Weyerhaeuser, Georgia-Pacific, and Parsons & Wittemore.
Also, a large percentage of pulp and paper that is imported into the USA enters the country through the gulf port. Brazil reported thousands of tons of pulp at the Port of Mobil were idle and possibly damaged.
Mills that were shut down include Tembec, Koch Cellulose, Boise Cascade, Weyerhaeuser, Georgia-Pacific, and Parsons & Wittemore.
Also, a large percentage of pulp and paper that is imported into the USA enters the country through the gulf port. Brazil reported thousands of tons of pulp at the Port of Mobil were idle and possibly damaged.
Cascade to shut down a Paper Machine
Cascasdes Fine Paper will reduce its capacity in its Thunder Bay, ONT mill. This mill produces coated free sheet and specialty papers. The company will shut down #5PM and associated converting equipment. The paper machine was installed in 1920. Total capacity of the mill is 160,000tons per year.
NewPage Paper Mill announces slow down
NewPage Paper (the new owner of the MeadWestvaco paper plants) recently announced it will operate its
#7PM in Luke, MD to a reduced schedule. This machine produced 55,000 tons per year of coated paper.
#7PM in Luke, MD to a reduced schedule. This machine produced 55,000 tons per year of coated paper.
Tuesday, October 18, 2005
USA Paper Industry needs Investment
Interesting article in this month's PaperAge Magazine confirming the lack of reinvestment in
USA Pulp and Paper mills. The article reveals our domestic industry not remaining in a competitive position
and that we have lost market share to off shore producers.
Investments continue for new paper machines in Europe and Asia while USA assets deteriorate.
Capital spending in USA peaked in 1990 at $20billion and, today, industry spends between $4 - 5billion.
Majority of domestic paper machines are over 20 years old and are no longer truly competitive in a global economy.
Many producers have reviewed entry into specialty grades, but soon learn their equipment does not fit the market's
demands.
Article concludes that 4 out of top 5 paper companies headquartered in USA and consolidation
continues.
USA Pulp and Paper mills. The article reveals our domestic industry not remaining in a competitive position
and that we have lost market share to off shore producers.
Investments continue for new paper machines in Europe and Asia while USA assets deteriorate.
Capital spending in USA peaked in 1990 at $20billion and, today, industry spends between $4 - 5billion.
Majority of domestic paper machines are over 20 years old and are no longer truly competitive in a global economy.
Many producers have reviewed entry into specialty grades, but soon learn their equipment does not fit the market's
demands.
Article concludes that 4 out of top 5 paper companies headquartered in USA and consolidation
continues.
AF&PA annual meeting
SAVE THE DATE
The American Forest and Paper Association has confirmed the meeting date for the annual
meeting held in New York City's Waldorf Astoria Hotel.
The dates are April 9 - 12, 2006
The American Forest and Paper Association has confirmed the meeting date for the annual
meeting held in New York City's Waldorf Astoria Hotel.
The dates are April 9 - 12, 2006
Boise Increases Penetration into Specialty Market
Boise Cascade confirmed it will invest $60million to convert existing paper equipment for the production of specialty grades. The company's Wallula, WA 250" #3 paper machine will produce pressure sensitive release liners and face stock. This new capacity will generate a total of 200,000 tons of specialty paper. The conversion is estimated to be complete at the end of 2006.
Market update on Uncoated Free Sheet
Most recent market intelligence outlines commodity market paper prices as
-Cutsize (copy paper) $800/ton
-Offset rolls $700/ton
This is for large wholesale business.
If an end user purchases very large volume, rumor outlines above pricing
less $40/ton on the spot market.
-Cutsize (copy paper) $800/ton
-Offset rolls $700/ton
This is for large wholesale business.
If an end user purchases very large volume, rumor outlines above pricing
less $40/ton on the spot market.
Paper Industry Week in Review
Paper Industry continues to witness pressure - many increased costs (energy, freight, chemicals, health benefits, etc) and cannibalize from electronic communication and low priced offshore competition - yields an industry that constantly attempts a much needed price increase - but market factors deny success.
-The containerboard producer’s announced a $30/to increase for this Fall. Competition remains fierce, and ability to confirm an increase is doubtful.
-Pulp producers continue to announce intent to increase NBSK and NBHK market pulp pricing. Inventory levels and sluggish paper demand make this increase difficult.
-Boise is the newest to attempt an uncoated free sheet (copy paper) price increase of $60. Earlier, we reported that International Paper, Weyerhaeuser, and Domtar announced, and failed, a price increase.
-High Brightness Newsprint announced an increase of $35-45/ton effective November1. This is for groundwood papers of 65 - 75+ brightness.
-Coated papers also announce a price increase odf $60/ton for November shipments. This one has a slight chance with catalogue printing in high gear - demand for coated papers strong 4th quarter.
Come to Paper.com for all your market information.
-The containerboard producer’s announced a $30/to increase for this Fall. Competition remains fierce, and ability to confirm an increase is doubtful.
-Pulp producers continue to announce intent to increase NBSK and NBHK market pulp pricing. Inventory levels and sluggish paper demand make this increase difficult.
-Boise is the newest to attempt an uncoated free sheet (copy paper) price increase of $60. Earlier, we reported that International Paper, Weyerhaeuser, and Domtar announced, and failed, a price increase.
-High Brightness Newsprint announced an increase of $35-45/ton effective November1. This is for groundwood papers of 65 - 75+ brightness.
-Coated papers also announce a price increase odf $60/ton for November shipments. This one has a slight chance with catalogue printing in high gear - demand for coated papers strong 4th quarter.
Come to Paper.com for all your market information.
Xerox updates Line of Papers
Xerox has revised its copy paper line to increase both brightness and shade of its papers. They will combine the 4200 Multipurpose and the 4024 into one product. The new grade will offer 92 brightness and a bluer-white shade. The grade will be called Xerox Business 4200, available from 20lbs to 110lbs Index. The grades are available from Paper.com and are suitable for such as uses as reproducing documents, memos, reports, and presentations.
Xerox updates Line of Papers
Xerox has revised its copy paper line to increase both brightness and shade of its papers. They will combine the 4200 Multipurpose and the 4024 into one product. The new grade will offer 92 brightness and a bluer-white shade. The grade will be called Xerox Business 4200, available from 20lbs to 110lbs Index. The grades are available from Paper.com and are suitable for such as uses as reproducing documents, memos, reports, and presentations.
Georgia Pacific and Weyerhaeuser to Reduce Production
Georgia Pacific, the world's largest producer of tissue, will reduce its work force by 1000 employees. They are also reviewing the possibilities of closing down four tissue paper machines.
Weyerhaeuser plans to close a paper mill in Canada, this will effect 690 employees.
Weyerhaeuser plans to close a paper mill in Canada, this will effect 690 employees.
Tuesday, October 11, 2005
Weyerhaeuser to close paper mill
Recent reports outline Weyerhaeuser's decision to close the Port Albert, Sask, pulp and paper mill. Weyerhaeuser is reviewing all of its facilities in an effort to study which are performing and which are not.
www.paper.com carries many of the Weyerhaeuser brands.
www.paper.com carries many of the Weyerhaeuser brands.
Smart Papers Expands the Synergy Line
Smart Papers recently expanded the Synergy premium uncoated line to include many new offerings.
The line now includes
-19 colors (Five new)
-Five finishes, including very smooth, linen and laid
-A watermarked line
-Archival - acid free and lignin free
-Two new 100% post consumer recycled sheets
These grades, all available from www.paper.com can be used for many applications including
Annual Reports, Brochures, Newsletters, Stationery, Point of Purchase displays, Presentation Covers,
and so much more.
The line now includes
-19 colors (Five new)
-Five finishes, including very smooth, linen and laid
-A watermarked line
-Archival - acid free and lignin free
-Two new 100% post consumer recycled sheets
These grades, all available from www.paper.com can be used for many applications including
Annual Reports, Brochures, Newsletters, Stationery, Point of Purchase displays, Presentation Covers,
and so much more.
October Pulp Market Update
Most of the pulp producers announced a price increase of $10 to 20/ton for October.
NBSK grades increased $20/ton.
NBHK grades increased $10/ton
Although pulp inventory levels are down, paper demand, therefore, pulp demand
continues to be soft. This increase WILL be difficult for most buyers
to accept.
NBSK grades increased $20/ton.
NBHK grades increased $10/ton
Although pulp inventory levels are down, paper demand, therefore, pulp demand
continues to be soft. This increase WILL be difficult for most buyers
to accept.
Tuesday, October 04, 2005
Paper Industry remains Weak
Almost every sector of the paper industry remains weak with reference to demand - despite a good economy. Major concerns remain high energy, chemical, and transportation rates, currency fluxuations, and 'off shore' capacity expansions. The industry continues to restructure - but major fundamental changes must occur for future success of the USA paper industry.
Paper.com has a huge array of papers for every requirement.
Paper.com has a huge array of papers for every requirement.
Paper Industry remains Weak
Almost every sector of the paper industry remains weak with reference to demand - despite a good economy. Major concerns remain high energy, chemical, and transportation rates, currency fluxuations, and 'off shore' capacity expansions. The industry continues to restructure - but major fundamental changes must occur for future success of the USA paper industry.
Paper.com has a huge array of papers for every requirement.
Paper.com has a huge array of papers for every requirement.
Saturday, September 24, 2005
Yahoo report on the USA Paper Industry
The US pulp, paper, and paperboard mill industry consists of about 320 companies with total combined annual revenue over $70 billion. Major companies include Wausau-Mosinee Paper and units of integrated manufacturers International Paper, Georgia-Pacific, and Weyerhaeuser. An average mill has over 100 employees and annual revenue over $60 million. The industry is highly concentrated: the top 20 companies produce 70 percent of industry revenue.
COMPETITIVE LANDSCAPE
Demand depends on both consumer and business use of paper products. Because many costs are fixed, profitability depends on volume and production efficiency. Mills owned by large international paper companies have advantages by being vertically integrated. The parent corporation may own timber farms, sawmills, pulp and paper mills, conversion plants, and other end-product manufacturing facilities. Small mills can successfully compete regionally, in close proximity to timber operations and customers. Mills are highly automated and capital-intensive; average annual revenue per employee is about $450,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments are wood pulp, paper, paperboard, and newsprint. Paper accounts for 60 percent of industry revenue, paperboard 30 percent, and newsprint 5 percent. Other products include non-wood pulp -- from cotton, straw, rag, flax, de-inked scrap paper and bagasse (the outer stalk of sugar cane) -- and byproducts such as turpentine and tall oil. Within the paper segment, major products are tissue papers, uncoated sheet papers, and coated printing papers. Paperboard is used mainly to make boxes and other containers.
COMPETITIVE LANDSCAPE
Demand depends on both consumer and business use of paper products. Because many costs are fixed, profitability depends on volume and production efficiency. Mills owned by large international paper companies have advantages by being vertically integrated. The parent corporation may own timber farms, sawmills, pulp and paper mills, conversion plants, and other end-product manufacturing facilities. Small mills can successfully compete regionally, in close proximity to timber operations and customers. Mills are highly automated and capital-intensive; average annual revenue per employee is about $450,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments are wood pulp, paper, paperboard, and newsprint. Paper accounts for 60 percent of industry revenue, paperboard 30 percent, and newsprint 5 percent. Other products include non-wood pulp -- from cotton, straw, rag, flax, de-inked scrap paper and bagasse (the outer stalk of sugar cane) -- and byproducts such as turpentine and tall oil. Within the paper segment, major products are tissue papers, uncoated sheet papers, and coated printing papers. Paperboard is used mainly to make boxes and other containers.
Thursday, September 22, 2005
Paper newsbits
A few recent happenings in the paper industry
-International Paper completed its sale of Carter Holt for $1.4billion
-International Paper will move its headquarters from Stamford, CT to Memphis, TN
-International Paper is restructuring and will divest every non-uncoated asset.
-MeadWestvaco announced a $200million cost cutting plan; reduction of employees and facilities
-NewPage has purchased all of MeadWestvaco's fine paper manufacturing sites
-Uncoated paper producers will be increasing the brightness on copy paper from 84 to 92+ brightness
-SAPPI shut down the 116,000 tpy coated free sheet paper machine in Muskegon, MI
-Abitibi to cut 600,000 tons of production of newsprint this year.
-Blue Heron Paper ratified a 4-year contract - 15% pay hike; mill produces 225,000tpy of newsprint
-Boise Cascade will spend $60million to increase its label capacity for pressure sensitive labels
-Transportation of paper products remains a challenge - higher fuel rates and disruption caused by hurricane
-International Paper completed its sale of Carter Holt for $1.4billion
-International Paper will move its headquarters from Stamford, CT to Memphis, TN
-International Paper is restructuring and will divest every non-uncoated asset.
-MeadWestvaco announced a $200million cost cutting plan; reduction of employees and facilities
-NewPage has purchased all of MeadWestvaco's fine paper manufacturing sites
-Uncoated paper producers will be increasing the brightness on copy paper from 84 to 92+ brightness
-SAPPI shut down the 116,000 tpy coated free sheet paper machine in Muskegon, MI
-Abitibi to cut 600,000 tons of production of newsprint this year.
-Blue Heron Paper ratified a 4-year contract - 15% pay hike; mill produces 225,000tpy of newsprint
-Boise Cascade will spend $60million to increase its label capacity for pressure sensitive labels
-Transportation of paper products remains a challenge - higher fuel rates and disruption caused by hurricane
Tuesday, September 20, 2005
Market update for Newprint
A growing number of producers that manufacture Newsprint (paper that newspapers and inserts are printed on) are announcing a price increase for 30lbs standard newsprint. It would be effective for October shipments.
Quebecor Lands Yellow Book Printing
Quebecor World reached an$900million agreement with Yellow Pages USA to print all the directories through the year 2017. This amounts to over 1 trillion pages of paper. Most of the book is printed on recycled paper.
Paper.com has many recycled papers from 10% post consumer paper to 100% recycled paper.
Paper.com has many recycled papers from 10% post consumer paper to 100% recycled paper.
Printers Finally Enjoying Profits
The recently published 2005/06 PIA/GATF study revealed profitability improved for most printers. Profit, as a percent of sales, was only 1.7% in 2004 compared to 2.5% in 2005. This is third consecutive year of improved profits. Statistics outline that the larger printers tended to be more profitable than the smaller printers.
Paper.com has many printers for all your personalized printing requirments.
Paper.com has many printers for all your personalized printing requirments.
Market update on Coated Free Sheet
Prices have fallen $20/ton in September. These grades are used for promotions, annual reports, and value added 'coffee table' magazines. This market has remained soft all year but is forecasted to improve for the holiday season. The domestic paper producers have been hurt by increased imports from Asia. Note, Asia has announced increasing capacity of this grade with new equipment - adding over 1million tons of new production!!
Market update Coated Groundwood
Prices fell on most coated groundwood grades. These are the papers used for magazines. The capacity is back on line with both the Canadian and Finnish strikes now over. The industry did implement an increase of $45/ton this summer, therefore, discounting is off this new, higher level.
Market update on Market Pulp
Prices on most types of pulp decreased by $5/ton, so far this month (September). Prices are now equivalent to the lows witnessed in November of 2004! The industry has announced a price increase for $20/ton on NBSK for October - but imported pulp is still readily available at a discount and, accordingly, a price increase may be difficult.
Update on Uncoated Paper Markets
Uncoated paper market declining price levels continued through September. 50 lbs offset and 20lbs copy paper fell. Price checks reveal offset fell $15/ton and cutsize copy paper fell $10/ton. Ironically, you may recall paper producers announced a price increase for September - certainly with increased costs - transportation and energy - the industry needs a price increase. However, demand remains weak.
Tuesday, August 30, 2005
First Half 2005 Paper Industry Review
Paper industry has been dynamic the past 24 months. 2004 ended and 2005 begun with a very strong paper market. As 2005 progressed, pricing decreased - in spite of rising raw material (fiber, energy, chemicals, transportation) and today, the uncoated market is beginning to once again announce price increases.
First half of this year-
-Uncoated free sheet pricing increased 10%
-But demand now down - electronic and high bright groundwood grade substitution
- Offset by equipment curtailment
-Coated magazine paper prices increased nearly 20%
-Finland and Canadian strikes curtailed supply
-Newsprint prices rose 10%
-Newsprint capacity decreased 1million tons (capacity now 13.4millin tons)
-Kraft Linerboard increased 15%
-Super calendar paper -insert paper used fore advertisements - increased 12%
Plus additional $40/ton increase announced in July
-Pulp prices jumped to $680/ton (highest level of NBSK since JAN2001 - $710/ton)
First half of this year-
-Uncoated free sheet pricing increased 10%
-But demand now down - electronic and high bright groundwood grade substitution
- Offset by equipment curtailment
-Coated magazine paper prices increased nearly 20%
-Finland and Canadian strikes curtailed supply
-Newsprint prices rose 10%
-Newsprint capacity decreased 1million tons (capacity now 13.4millin tons)
-Kraft Linerboard increased 15%
-Super calendar paper -insert paper used fore advertisements - increased 12%
Plus additional $40/ton increase announced in July
-Pulp prices jumped to $680/ton (highest level of NBSK since JAN2001 - $710/ton)
Uncoated Paper Prices Increase
The paper market continues in a state of confusion. After a period of price decreases - many of the major producers have announced price INCREASES. Leading the industry include Weyerhaeuser, Domtar and Boise (International Paper - the largest supplier of uncoated paper is conspicuously absent). The increase included both cut size (office copy and printer paper) and offset. The increase was announced for $40/ton effective with shipments September 19. Reasons for this increase were
-Capacity closure
-Seasonal upturn of demand
-Raising raw material cost pressure
-Reduced finished inventory
-Quality improvement (brightness now 92 vs. 84)
-Capacity closure
-Seasonal upturn of demand
-Raising raw material cost pressure
-Reduced finished inventory
-Quality improvement (brightness now 92 vs. 84)
Lincoln Tissue Mill Expands
For the first time in many years, a domestic paper mill is expanding AND including a new paper machine in their plans
Lincoln Tissue, a specialty, value added lightweight tissue mill has committed $36million dollars toward a new paper machine, which will be supplied by Metso. This machine will produce 100 tons per day. The current mill contains 2 paper machines with an output of 50 tons per day. The owners purchased the mill from Eastern Fine Paper (out of bankruptcy) in May of 2004 for $23.7million. The new machine is forecasted to be operating by August 2006.
Lincoln Tissue, a specialty, value added lightweight tissue mill has committed $36million dollars toward a new paper machine, which will be supplied by Metso. This machine will produce 100 tons per day. The current mill contains 2 paper machines with an output of 50 tons per day. The owners purchased the mill from Eastern Fine Paper (out of bankruptcy) in May of 2004 for $23.7million. The new machine is forecasted to be operating by August 2006.
Tuesday, August 23, 2005
Update on International Paper Quality Improvements
News fromInternational Paper (IP) regarding their brightness change. Some of the highlights:
All uncoated ( 4,000,000 tons ) will be moving up in brightness
There will no longer be any 84 bright products available from IP
Tidal - 84 bright to 92
Fore - 88 bright to 96
Williamsburg - 84 to 92
Accent - 92 to 96
Converting grades such as envelopes - 84 to 92
Carolina, Colors, and Uncoated Bristol's will not change
The mill has apparently developed a new technology that enables them to reach a higher brightness at no increased cost, and have stated that they will be competitive with the existing 84 bright market. IP feels that with this change, their competition will do either one of the following:
Increase to 92 bright to avoid losing market share ( not good for most mills as they will significantly increase their cost )
Stay at the 84 bright level and fight it out on price ( not good for most mills as this further affects their profitability, or lack of )
We should begin to see this new product sometime in September. At this point, the mill has decided to stick with the same sku's. It's a good time to begin looking at your inventory levels of Williamsburg and Accent as in two months, these old shade products will be discontinued.
This is a significant move by IP, that will change the landscape of uncoated paper in North America.
All uncoated ( 4,000,000 tons ) will be moving up in brightness
There will no longer be any 84 bright products available from IP
Tidal - 84 bright to 92
Fore - 88 bright to 96
Williamsburg - 84 to 92
Accent - 92 to 96
Converting grades such as envelopes - 84 to 92
Carolina, Colors, and Uncoated Bristol's will not change
The mill has apparently developed a new technology that enables them to reach a higher brightness at no increased cost, and have stated that they will be competitive with the existing 84 bright market. IP feels that with this change, their competition will do either one of the following:
Increase to 92 bright to avoid losing market share ( not good for most mills as they will significantly increase their cost )
Stay at the 84 bright level and fight it out on price ( not good for most mills as this further affects their profitability, or lack of )
We should begin to see this new product sometime in September. At this point, the mill has decided to stick with the same sku's. It's a good time to begin looking at your inventory levels of Williamsburg and Accent as in two months, these old shade products will be discontinued.
This is a significant move by IP, that will change the landscape of uncoated paper in North America.
Monday, August 22, 2005
Stats in for Strike in Finland
We recently learned that the 56 days of down time in Finland, as a direct result of the labor strike, was over
1.7million tons. The tonnage was almost exclusively printing and writing grades. The strike, which formally was settled on
July 1 effected UPM Kymenne, StoraEnso, and M-Real. Also effected was 430,000 of market pulp. Finland has become a major
supplier to the USA of printing and writing grades - 11% market share of USA coated groundwood; 13% of USA supercalendar (S/C); and 10% of directory papers.
1.7million tons. The tonnage was almost exclusively printing and writing grades. The strike, which formally was settled on
July 1 effected UPM Kymenne, StoraEnso, and M-Real. Also effected was 430,000 of market pulp. Finland has become a major
supplier to the USA of printing and writing grades - 11% market share of USA coated groundwood; 13% of USA supercalendar (S/C); and 10% of directory papers.
FiberMark confirms Reorganization
On June 24, the Fibermark Paper Company confirmed its reorganization plan which contained a revised capital structure with lower debt levels and lower interest rates. The company also outlined closing two paper machines (Hughesville, NJ and Warren Glen NJ).
Quebecor World Looks to Sell Division
Quebecor World has recently placed its commerical printing division up for sale. This division has 12 plants. The printing company is under a lot of cost pressures.
Market Pulp
Late last week, pulp prices slipped $5/ton. Weyerhaeuser earlier this month announced decreasing its price for NBSK by $10/ton. Meanwhile, producers are in discussions with the buyers in Asia to increase pulp prices by $20/ton. Pulp prices last rose in February to list price of $680/mt - since than - prices have declined steadily. Lots of confusion!!
Kohlberg & Co. Still Buying Paper Companies
It was reported that Kohlberg & Co. - the investment fund that recently purchased International Paper Companys' industrial paper division, is now reviewing Cellu Tissue. Cellu Tissue has a capacity of 250,000tpa of tissue papers used in bathrooms and also Machine Glazed papers. The company has 6 mills.
Merrimac Paper Mill Closes
After 139 years, the Merrimac Paper mill and its converting operations in lawrence, Mass shut its doors. The mill sited high costs, environmental issues, lack of negotiating a labor agreement, and the inability to secure a new buyer as reasons it failed.
Hazen Paper will purchase many pieces of converting equipment.
Hazen Paper will purchase many pieces of converting equipment.
Neenah Introduces New Grade
Neenah Paper recently introduced a new environmentally friendly grade of paper called Wise Choice. The sheet will be available in 70, 80 and 100 pound text weights. This sheet will feature a 100% recycled option and a 100% post consumer fiber option. Paper.com has the complete line of Neenah Papers and will soon market the Wise Choice Brand.
Wednesday, August 17, 2005
Fifteen Top Book Manufacturers
Paper.com has many Book Papers available on our site. The top 15 Book Manufacturers, by book sales revenue, was recently announced as follows-
1-Visant Corp $731MM
2-RRDonnelly $698.4MM
3-Quebecor World $695.4MM
4-Banta $289.4MM
5-Arvato Print USA / Bertelsmann $266.6MM
6-Courier Corp $177.2MM
7-Transcontinental Inc $144.2MM
8-Phoenix Color $128.0MM
9-Walworth Publishing $104.5MM
10-Hess Management $84.0MM
11-Maple-Vail Book $78.0MM
12-Webcrafters Inc $77.0MM
13-Edwards Brothers $70.2MM
14-Friesens Corp $57.0MM
15-Webcom $55.0MM
1-Visant Corp $731MM
2-RRDonnelly $698.4MM
3-Quebecor World $695.4MM
4-Banta $289.4MM
5-Arvato Print USA / Bertelsmann $266.6MM
6-Courier Corp $177.2MM
7-Transcontinental Inc $144.2MM
8-Phoenix Color $128.0MM
9-Walworth Publishing $104.5MM
10-Hess Management $84.0MM
11-Maple-Vail Book $78.0MM
12-Webcrafters Inc $77.0MM
13-Edwards Brothers $70.2MM
14-Friesens Corp $57.0MM
15-Webcom $55.0MM
Paper Pricing Still Soft
Although Paper.com primarily markets value added papers to both businesses and consumers, we also have a wholesale business which silicates large volume end users of commodity papers. While the higher quality papers have witnessed insulated, and level pricing; the commodity sector has been under constant pressure. Even with strikes curtailing massive amounts of supply (Strike: coated paper mills in Finland and UPM/Kymmene's coated paper mill in Miramichi, Canada) AND all producers desperate to increase pricing AND consolidation as well as machine shutdowns AND a slight up tick in print buying - there still exists a softness in pricing. For uncoated free sheet - all the price increase announcements released earlier in the year have been rescinded. Coated Free Sheet and Groundwood remain sloppy and price forecasters outline limited support for price increases throughout balance of year.
Monday, August 15, 2005
UPM Announces new Production Strategy
UPM announced it will restructure its publication division to become more competitive. Many changes will be introduced in the uncoated magazine paper (SC Papers) group. Management sited a strategy outlining both closing and converting existing equipment as well as reviewing investment in new equipment. Most of these initiatives will take place in their european locations.
E-Commerce for Paper Products
E-Tailing is quickly becoming a household word. Last year, e-commerce sales hit $69.2billion - which represented less than 2% of all retail sales. This sales level equated to a 23.5% sales increase. Internet experts firmly believe this online channel will account for 7% of retail sales by 2010. Web based marketing has become an integral part of multichannel sales / marketing strategy and is an effective, efficient channel. Paper.com markets both to business and consumer end users and is one of very few e-commerce websites for the paper industry. The site has nearly 20,000 items from all the major paper producers representing all the primary end user's target categories. The site enjoys an average of 4000 visitors every day.
Some interesting milestones include - 1995-Amazon sold its first book online; 1996-Google was started; 1997-EBay sold its millionth item; 1999 the URL-busuness.com was sold for $7.5million - just the name!!!;
Some interesting milestones include - 1995-Amazon sold its first book online; 1996-Google was started; 1997-EBay sold its millionth item; 1999 the URL-busuness.com was sold for $7.5million - just the name!!!;
Top 10 Paper Mills
Top 10 Global Paper Producers by total sales
1-International Paper (USA) $25MM
2-Georgia-Pacific (USA) $23.2MM
3-Weyerhaeuser (USA) $16.7MM
4-Kimberly-Clark (USA) $13.5MM
5-Stora Enso (Finland) $12MM
6-UPM (Finland) $11.2MM
7-SCA (Sweden) $10.5MM
8-Oji Paper (Japan) $10.4MM
9-Nippon Unipac (Japan) $10MM
10-Procter & Gamble (USA) $9.9MM
Top 10 USA Paper Producers by total sales
1-International Paper
2-Georgia-Pacafic
3-Weyerhaeser
4-Kimberly-Clark
5-Procter &Gamble
6-Boise Cascade
7-Smurfit-Stone
8-MeadWestvaco
9-Temple-Inland
10-Sonoco
Paper.com has grades from all these major paper producers, as well as hundreds of smaller manufacturers.
1-International Paper (USA) $25MM
2-Georgia-Pacific (USA) $23.2MM
3-Weyerhaeuser (USA) $16.7MM
4-Kimberly-Clark (USA) $13.5MM
5-Stora Enso (Finland) $12MM
6-UPM (Finland) $11.2MM
7-SCA (Sweden) $10.5MM
8-Oji Paper (Japan) $10.4MM
9-Nippon Unipac (Japan) $10MM
10-Procter & Gamble (USA) $9.9MM
Top 10 USA Paper Producers by total sales
1-International Paper
2-Georgia-Pacafic
3-Weyerhaeser
4-Kimberly-Clark
5-Procter &Gamble
6-Boise Cascade
7-Smurfit-Stone
8-MeadWestvaco
9-Temple-Inland
10-Sonoco
Paper.com has grades from all these major paper producers, as well as hundreds of smaller manufacturers.
Uncoated Offset Prices - Decrease .... again
Prices for the commodity grades of uncoated freesheet offset have continued their slid - through August. The paper used for xerographic and desktop printers (cutsize) recently declined $20/ton and 50lbs Offset (printing paper) fell $10/ton. Many domestic mills are reducing supply (production) in an attempt to curtail pricing reductions. We understand that prices for uncoated papers is also sloppy in both Europe and Asia.
Paper.com has a complete line of uncoated products.
Paper.com has a complete line of uncoated products.
Thursday, August 11, 2005
Uncoated Groundwood Market is Still Strong
As the Finnish strike continues, Uncoated Groundwood (paper used for inserts into Newspapers) continues to pick up demand. Demand growth for 2004 was 6% - mainly for the Super Calendar Papers. Publications are substituting Uncoated Groundwood, with brighter, enhanced surface, for difficult to find Coated Papers (because of Finnish and Canadian strikes). Growth is expected to continue throughout 2005 - estimated to increase by 8%.
New Page Paper to review selling Carbonless Business
New Page Corporation, the acquirer of the MeadWestvaco paper group, is now evaluating steps to divest of the
Carbonless Business. The Chillicothe, Ohio plant is concerned that the future of Carbonless demand is shrinking. The company is also reviewing the sale of other Ohio based operations such as Chilpac and Fremont facilities.
Many items of NewPage - MeadWestvaco's carbonless are available at Paper.com, as is the complete Appleton Line, including Superior, Tag, Premium, Xeroform, and Self Contained. The site also carries an value alternative called Imation.
Carbonless Business. The Chillicothe, Ohio plant is concerned that the future of Carbonless demand is shrinking. The company is also reviewing the sale of other Ohio based operations such as Chilpac and Fremont facilities.
Many items of NewPage - MeadWestvaco's carbonless are available at Paper.com, as is the complete Appleton Line, including Superior, Tag, Premium, Xeroform, and Self Contained. The site also carries an value alternative called Imation.
Consolidation in the Paper Market
Many continue to predict that the top 40 paper producers will consolidate, divest, or shut down sites. International Paper Company, the world's largest producer, recently announced it will spin off divisions producing grades such as - Coated Papers, Super Calendared Papers, Beverage Packaging, Kraft Papers, Chemicals, and over 6.8 million acres of timber, as well as its Wood Products and Carter Holt Harvey businesses. This, in total, accounts for 30% of IP's 2004 sales and 40% of their operating profits. Simply put, International Paper will only be producing uncoated papers in the future. This trend follows Boise spinning off their paper group to Office Max, MeadWestvaco paper manufacturing to New Page, and Georgia Pacific to Domtar.
More announcements will be made.
Paper.com markets grades from all current International Paper mills, as well as many grades from Domtar and MeadWestvaco.
More announcements will be made.
Paper.com markets grades from all current International Paper mills, as well as many grades from Domtar and MeadWestvaco.
Monday, August 08, 2005
More News on Pulp Pricing & Demand
Analysts and trade publication are reporting that northern bleached softwood kraft (NBSK) pulp prices have been unchanged for months at $630/metric ton. Buyers have a different view—saying that spot prices have been sliding since March and sales were as low as $510 in July.
Pulp purchasing has been weak since papermaking has been slow all summer season—and some market participants continue to note smallish transactions for the raw material. Analyst Stephen Atkinson at BMO Nesbitt Burns says "the paper and forest products industry has had to contend with exceptionally weak demand for softwood pulp, coated and uncoated free sheet papers, newsprint and packaging products." CIBC World Market analysts expect the next pricing direction will be up—a 2.5% rise in 2006 average annual prices. But, that’s not the view of analysts at Smith Barney who are looking for a 6% decrease in 2006 list prices. But, for now, tags may bounce upward a bit—since demand from non-integrated papermakers often picks up ahead of the catalog season and integrated mills may try to build inventories before regularly scheduled autumn maintenance downtime.
Pulp purchasing has been weak since papermaking has been slow all summer season—and some market participants continue to note smallish transactions for the raw material. Analyst Stephen Atkinson at BMO Nesbitt Burns says "the paper and forest products industry has had to contend with exceptionally weak demand for softwood pulp, coated and uncoated free sheet papers, newsprint and packaging products." CIBC World Market analysts expect the next pricing direction will be up—a 2.5% rise in 2006 average annual prices. But, that’s not the view of analysts at Smith Barney who are looking for a 6% decrease in 2006 list prices. But, for now, tags may bounce upward a bit—since demand from non-integrated papermakers often picks up ahead of the catalog season and integrated mills may try to build inventories before regularly scheduled autumn maintenance downtime.
Friday, August 05, 2005
Adapack Buys Specialty Paper Mill in Belgium
Adapack has completed the acquisition of the one-side coated paper business of Gruppo Cordenons, located in Malmedy, Belgium.
The deal includes a paper machine dedicated to one-side coated products used in the beverage industry. The mill has been named Adapack Intermills.
The acquisition increases Adpack group's total production capacity by 45,000 tpy.
In Sept. 2004, Adpack acquired Papeteries du Souche, another one-side coated paper producer, from International Paper.
Adapack said that it plans to become one of the world leaders in the field of one side coated label papers for the beverage industry.
Paper.com markets the papers from Gruppo Cordenons.
The deal includes a paper machine dedicated to one-side coated products used in the beverage industry. The mill has been named Adapack Intermills.
The acquisition increases Adpack group's total production capacity by 45,000 tpy.
In Sept. 2004, Adpack acquired Papeteries du Souche, another one-side coated paper producer, from International Paper.
Adapack said that it plans to become one of the world leaders in the field of one side coated label papers for the beverage industry.
Paper.com markets the papers from Gruppo Cordenons.
Tuesday, August 02, 2005
SAPPI Mill Announces Paper Machine Shut Down
SAPPI Fine Paper of North America announced it will shut down #4 paper machine at the Muskegon, Michigan Mill. Management sited the reason was high manufacturing cost. The company also announced the closing of its pulp production at the site. The Paper Machine manufactured heavy weight coated papers. Paper.com markets many of SAPPI's products.
Economy Strengthens and so should Paper Demand
Commerce Department recently released a report outlining the USA economy. The general trend was positive and a forecast for continued economic growth. Expansion in the second quarter grew at 3.4%, imports reversed, consumer spending rose, corporate investment and housing starts increased, inventories declined, and industrial production advanced. Although oil prices and health costs continued to rise - so did wages and salaries. Inflation was reported at 3%. The report stated that the USA was growing faster than the rest of the world. Generally, if the economy expands - paper demand increases ... let's hope this is true.
Recycled Paper Facts
Most domestic paper producers use deinked (recycled) fiber because it is environmentally a sound practice AND because it is a more economical raw material than a virgin fiber. There is a new concern for both availability and quality of recycled pulp. Many offices are shredding paper waste and therefore making it difficult to sort office paper. Undesirables such as newsprint, labels / stickers, unbleached and packaging paper are difficult to separate. Also, many new technologies for Ink Jet and Laser toner as well as the new Digital Printers and ink have made it difficult to remove the ink from the paper. Paper.com offers many recycled papers.
International Paper will Improve Quality of Paper
International Paper will improve quality of all of its uncoated papers with new propriety technology to enhance whiteness and brightness. The brightness will increase from and average of 84GE to 92GE. As reported International Paper has chosen to divest of all other divisions and focus of uncoated Printing and Writing Papers. Paper.com has the complete line of International Papers.
Monday, August 01, 2005
Freight Rates Continue to Increase
Freight rates for all modes of transportation continue to increase. Most site the increase in fuel to be the leading factor.
-Average truck rates have increased nearly 5% this year
-Forecast is 4% increase for 2006
-Year to date increases for AirFreight is 5.9%
-Ocean Freight rates continue to advance with May to May increase of 3.2%
-Rail rates are forecasted to jump a shocking 10.6% for 2005 and 9% in 2006.
Paper.com continues to work with our freight companies to maintain economic shipping rates.
-Average truck rates have increased nearly 5% this year
-Forecast is 4% increase for 2006
-Year to date increases for AirFreight is 5.9%
-Ocean Freight rates continue to advance with May to May increase of 3.2%
-Rail rates are forecasted to jump a shocking 10.6% for 2005 and 9% in 2006.
Paper.com continues to work with our freight companies to maintain economic shipping rates.
International Paper to Spend Money on Mill
International Paper will spend more than $125million to modernize its Eastover, South Carolina Paper Mill. Most of the capital will be allocated to its #1PM. This paper machine produces envelope, office paper, printing and writing grades. The project will enhance the quality of the papers produced on this machine. Eastover is one of nine uncoated mills that International Paper owns.
Mohawk Renews Agreement to buy 'Wind Power"
Mohawk Paper has recently renewed its agreement to purchase power from wind generated sources. The mill is now the second largest consumer of wind power for manufacturing. Mohawk will use 45million kilowatts of pollution free power. Mohawk also has an environmentally friendly grade line. All these grades are available at Paper.com.
Newpaper Producers not Enjoying Price Increase
Newsprint (paper used to print newspapers) has only enjoyed a $5.00/ton price increase so far this year, inspite of an announced $35/ton announcement in March. Prices for large publishers remained at $565/MT. The small printers may be paying a larger portion of the increase.
Mills such as Abitibi and Bowater have announced over 1million tons of downtime and Canfor and Tembec are considering downtime. The mill introduce down time as a means to control supply and thus pricing. Total production downtime in North America would account for 12% of capacity.
Mills such as Abitibi and Bowater have announced over 1million tons of downtime and Canfor and Tembec are considering downtime. The mill introduce down time as a means to control supply and thus pricing. Total production downtime in North America would account for 12% of capacity.
Wednesday, July 27, 2005
International Paper Reports 2Q downtime
International Paper announced it took 275,000 tons of down time in the second quarter. This was a result of
poor market demand. Of the 275,000 tons - 135,000 was uncoated printing and writing capacity. Meanwhile,
MeadWestvaco started up the Brainerd paper facility.
poor market demand. Of the 275,000 tons - 135,000 was uncoated printing and writing capacity. Meanwhile,
MeadWestvaco started up the Brainerd paper facility.
Paper.com has more Masterpiece Studio items
Paper.com has recently added numerous items to complete the Masterpiece Studio offerings. This line competes very economically with Geographics and Sonburn for designer stationery. Visit Paper.com for all your designer stationery and paper demands.
Monday, July 25, 2005
Lincoln Paper to Expand
Lincoln Paper and Tissue is considering a $37million plan to double its Maine paper capacity. If the project is approved, the mill will shift focus from production of fine paper to tissue. Mill currently produces 200 tons per day.
Mohawk Launches New Digital Grade
Mohawk Paper Mills introduced Superfine i-tone, a new uncoated paper designed for HP Indigo Printers. This is a very clean, dust free sheet suitable for both dry toner and ElectroInk.
Pulp Market Fears new Capacity
Aracruz Cellulose is beginning to ramp up its newest facility in Veracel, Brazil. They will be the world's largest hardwood kraft pulp producer for market sales with an annual capacity of 2.6million tons. Aracruz recent expansions have doubled the firms production levels. Recent projects include 900,000mt/Veracel,Brazil; 250,000mt/Barro do Riacho, Brazil; 856,000mt/Itata, Chile. All of these plants produce high quality eucalyptus fiber.
Uncoated Offset Prices
Recent July 2005 reports outline demand for Uncoated Free Sheet paper 50 lbs (25x38/500) offset rolls has declined. This is typical over the summer months. Furthermore, the price for this grade has declined from an average transaction of $730/ton in April to a current (7/05) price of $700/ton ($35/cwt).
Market Pulp Pricing Depressed
Industry experts believe pulp prices are 20% too high. North America demand has decreased and suppliers continue to produce pulp; creating inventory. The benchmark grade NBSK (Northern Bleached Softwood Kraft) list price has declined from high of $680/MT (4/05) to $650 (5/05) to $630/mt today (7/05). Current spot Market pulp pricing ranges from average of $570/mt. to a low of $500/mt.
Friday, July 22, 2005
Valentine Paper Files Chapter 11
Valentine Paper Company in Lockport, LA filed for Chapter 11 bankruptcy protection. This is a nonintegrated (does not produce pulp on site) fine paper producer. The primary grade manufactured was uncoated white freesheet.
International Paper Concludes sale of Division
International Paper concluded the sale of its industrial papers division to Kohlberg & Co. for $180million. The name of the new company will be called Thilmany LLC. The sale included packaging grades and pressure sensitive papers produced at 3 Wisconsin mills. Total production is 300,000 tons per year.
Monday, July 18, 2005
Publication Papers Might be Tight in Supply
North American buyers of coated and uncoated printing mechanical paper grades (Magazine and Catalogue) were delighted to learn that paper production restarted in Finland, but both buyers and sellers continue to evaluate the results from the country's 56 days of downtime. The summer months usually generate greatest demand for catalogue paper in preparation for Fall mailings.
Pulp Pricing
Domestic prices appear largely stable in July. Prices continue to
edge lower in Asia, the world's leading spot market. However, after
months of erosion, we wonder whether we are close to the bottom.
Anemic demand is being partially offset by supply coming out of the
system. Arauco's big new Valdivia mill is out indefinitely, and
Domtar has shuttered its Quebec mill.
edge lower in Asia, the world's leading spot market. However, after
months of erosion, we wonder whether we are close to the bottom.
Anemic demand is being partially offset by supply coming out of the
system. Arauco's big new Valdivia mill is out indefinitely, and
Domtar has shuttered its Quebec mill.
Kraft Paper still trying for Price Increase
North American kraft paper producers still are trying to implement a $50/ton price increase first proposed in April but delayed by weak springtime market conditions.
Monday, July 11, 2005
Pulp Mill Closes due to Cost Pressures
Wausau Paper in Brokaw, Wisconsin recently announced it will no longer manufacture pulp for internal consumption. Management sited raising costs AND introduction of additional low cost fiber producers in areas such as Latin American. FYI. Wausau Paper is already one on the largest single company purchasers of market pulp.
My prediction is this is the first of many announcements and that many smaller intergraded mills will be shuttering equipment and purchasing fiber on the open market.
My prediction is this is the first of many announcements and that many smaller intergraded mills will be shuttering equipment and purchasing fiber on the open market.
Thursday, June 30, 2005
FiberMark Announces Reorganization
FiberMark recently submitted a reorganization plan to its major creditors and bondholders. Among the details in the proposal included closing the Hughesville, NJ facility and shutting down 1 of 2 paper machines in Warren, NJ. FiberMark produces paper for the office, school, packaging and publishing markets.
Saturday, June 25, 2005
Crane's - Papermaking at Crane with Cotton
Crane's - Papermaking at Crane:
"Papermaking at Crane & Co., Inc.
Making 100% Cotton Paper Since 1801
In some ways, papermaking at Crane has not changed greatly since 1801, when sheets were formed by hand. We still feel it is a highly skilled craft where great care must be taken to select the best raw materials and transform them into elegant and strong papers. Modern machinery and technology now play a significant role in crafting that final product, but it is the care and skill of the papermaker that really matters. Let's take a tour of a Crane papermaking facility.
First of all, Crane's make their paper from cotton. They don't cut down trees, and the cotton for our paper doesn't come directly from the field either. Crane uses the small scraps left over from the manufacture of cotton garments, such as jeans and t-shirts. These recovered scraps, or rags, as we call them, would otherwise be sent to landfills. So, not only are trees spared when you buy Crane paper, but you are helping with another growing environmental concern: overburdened landfills. We also use something called linters, the tiny fibers adhering to the cotton seed, which used to be thrown away by cotton seed oil producers. Nothing is wasted because the fibers from cotton are such an excellent raw material for paper.
To prepare the cotton for papermaking, it is first mixed with large amounts of water and sent to a piece of equipment called the beater. A beater is like a giant blender. (Crane's range up to 5,000 gallons.) In the beater, the cotton fibers are frayed between rotating steel blades and a lava bed plate, hence the term beaten to a pulp. Don't try this at home with old t-shirts and your food processor! The care taken with this step makes a huge difference in the quality of the paper.
After being processed in the beater, the cotton fibers are suspended in a solution of about 99% water and 1% fiber that we call stock. On the paper machine, this mixture is sprayed onto a wide belt of wire mesh called the fourdrinier, running at several hundred feet per minute. Much of the water is removed by gravity and suction and then reused in the papermaking process.
While the fibers are still very wet, a cylinder called a dandy roll, covered with a wire pattern, subtly rearranges the fibers to make the watermark. Barely able to support itself yet, the paper is picked up by a continuous felt cloth and passed through rolls that squeeze out more of the water, like a ringer on an old-fashioned washing machine. The paper then moves through a series of steam-heated cylinders where it dries completely.
In order to effectively take ink, either from a printing press, laser printer or a pen, a special coating must be applied to the paper called sizing. The paper must be dried once again by another series of heated cylinders before it is collected on a large roll at the end of the paper machine.
From start to finish the paper travels approximately a quarter of a mile through the machine. The rolls are either shipped directly to the customer or cut into large sheets. Once these sheets pass our rigorous inspection, they can be sent directly to paper merchants or converted into stationery.
At Crane's Stationery Factory, envelopes are cut, lined and folded. Crane's is are the only paper company that converts its own envelopes. Sheets are trimmed and, perhaps, bordered with colored paint or gilded in silver or gold leaf by hand. Some sheets are sent to Crane's engraving plant where they are skillfully transformed into elegant thank-you cards, invitations, or holiday greeting cards. Back at the Stationery Factory, finished products are tied with ribbons, assembled in boxes and packaged for shipment to fine stationers across the country.
"Papermaking at Crane & Co., Inc.
Making 100% Cotton Paper Since 1801
In some ways, papermaking at Crane has not changed greatly since 1801, when sheets were formed by hand. We still feel it is a highly skilled craft where great care must be taken to select the best raw materials and transform them into elegant and strong papers. Modern machinery and technology now play a significant role in crafting that final product, but it is the care and skill of the papermaker that really matters. Let's take a tour of a Crane papermaking facility.
First of all, Crane's make their paper from cotton. They don't cut down trees, and the cotton for our paper doesn't come directly from the field either. Crane uses the small scraps left over from the manufacture of cotton garments, such as jeans and t-shirts. These recovered scraps, or rags, as we call them, would otherwise be sent to landfills. So, not only are trees spared when you buy Crane paper, but you are helping with another growing environmental concern: overburdened landfills. We also use something called linters, the tiny fibers adhering to the cotton seed, which used to be thrown away by cotton seed oil producers. Nothing is wasted because the fibers from cotton are such an excellent raw material for paper.
To prepare the cotton for papermaking, it is first mixed with large amounts of water and sent to a piece of equipment called the beater. A beater is like a giant blender. (Crane's range up to 5,000 gallons.) In the beater, the cotton fibers are frayed between rotating steel blades and a lava bed plate, hence the term beaten to a pulp. Don't try this at home with old t-shirts and your food processor! The care taken with this step makes a huge difference in the quality of the paper.
After being processed in the beater, the cotton fibers are suspended in a solution of about 99% water and 1% fiber that we call stock. On the paper machine, this mixture is sprayed onto a wide belt of wire mesh called the fourdrinier, running at several hundred feet per minute. Much of the water is removed by gravity and suction and then reused in the papermaking process.
While the fibers are still very wet, a cylinder called a dandy roll, covered with a wire pattern, subtly rearranges the fibers to make the watermark. Barely able to support itself yet, the paper is picked up by a continuous felt cloth and passed through rolls that squeeze out more of the water, like a ringer on an old-fashioned washing machine. The paper then moves through a series of steam-heated cylinders where it dries completely.
In order to effectively take ink, either from a printing press, laser printer or a pen, a special coating must be applied to the paper called sizing. The paper must be dried once again by another series of heated cylinders before it is collected on a large roll at the end of the paper machine.
From start to finish the paper travels approximately a quarter of a mile through the machine. The rolls are either shipped directly to the customer or cut into large sheets. Once these sheets pass our rigorous inspection, they can be sent directly to paper merchants or converted into stationery.
At Crane's Stationery Factory, envelopes are cut, lined and folded. Crane's is are the only paper company that converts its own envelopes. Sheets are trimmed and, perhaps, bordered with colored paint or gilded in silver or gold leaf by hand. Some sheets are sent to Crane's engraving plant where they are skillfully transformed into elegant thank-you cards, invitations, or holiday greeting cards. Back at the Stationery Factory, finished products are tied with ribbons, assembled in boxes and packaged for shipment to fine stationers across the country.
Teaching About Paper and Recycling
TAPPI -- the association for the pulp, paper, and converting industry offers on this site brochures such as:
Are We Running Out of Trees?
How Are Trees Grown for Paper?
Why Do Some Paper Mills Have an Odor?
How is Paper Recycled?
What’s in a Tree?
How Much Paper can be Made from a Tree?
Why Recycle?
How Are Corrugated Boxes Made?
And, they offer (sell for only one dollar) posters on recycling paper that are perfect for the classroom, teachers materials, CD-ROMS and educational videos on:
Paper: The Video
This 12-minute video takes a light-hearted, fun-filled look at the ways paper has influenced society, past and present. A valuable discussion tool for students and teachers, the video spotlights the critical role paper plays in our everyday lives.
Modern Papermaking
Four-minute overview of the paper manufacturing process. Great for classroom visits and tour groups. All ages.
Recycling: Lost and Found
Four-minute overview of the industrial paper recycling process. Great for classroom visits and tour groups. All ages.
The Paper Trail - The History of Paper
Four-minute overview of the history of paper. Great for classroom visits and tour groups. All ages.
Are We Running Out of Trees?
How Are Trees Grown for Paper?
Why Do Some Paper Mills Have an Odor?
How is Paper Recycled?
What’s in a Tree?
How Much Paper can be Made from a Tree?
Why Recycle?
How Are Corrugated Boxes Made?
And, they offer (sell for only one dollar) posters on recycling paper that are perfect for the classroom, teachers materials, CD-ROMS and educational videos on:
Paper: The Video
This 12-minute video takes a light-hearted, fun-filled look at the ways paper has influenced society, past and present. A valuable discussion tool for students and teachers, the video spotlights the critical role paper plays in our everyday lives.
Modern Papermaking
Four-minute overview of the paper manufacturing process. Great for classroom visits and tour groups. All ages.
Recycling: Lost and Found
Four-minute overview of the industrial paper recycling process. Great for classroom visits and tour groups. All ages.
The Paper Trail - The History of Paper
Four-minute overview of the history of paper. Great for classroom visits and tour groups. All ages.
Making Paper
Making Paper:
Typically, trees used for papermaking are specifically grown and harvested like a crop for that purpose. To meet tomorrow's demand, forest products companies and private landowners (in Wisconsin) plant millions of new seedlings every year.
To begin the process, logs are passed through a debarker, where the bark is removed, and through chippers, where spinning blades cut the wood into 1" pieces. Those wood chips are then pressure-cooked with a mixture of water and chemicals in a digester.
Used paper is another important source of paper fiber. Thanks to curbside recycling programs in many communities, we recover 40% of all paper used in America for recycling and reuse. The paper is shredded and mixed with water.
The pulp is washed, refined, cleaned and sometimes bleached, then turned to slush in the beater. Color dyes, coatings and other additives are mixed in, and the pulp slush is pumped onto a moving wire screen.
Computerized sensors and state-of-the-art control equipment monitor each stage of the process.
As the pulp travels down the screen, water is drained away and recycled.
The resulting crude paper sheet, or web, is squeezed between large rollers to remove most of the remaining water and ensure smoothness and uniform thickness. The semidry web is then run through heated dryer rollers to remove the remaining water.
Waste water is carefully cleaned and purified before its release or reuse. Fiber particles and chemicals are filtered out and burned to provide additional power for the mill.
Papermakers carefully test for such things as uniformity of color and surface, water resistance, and ink holding ability.
The finished paper is then wound into large rolls, which can be 30 feet wide and weigh close to 25 tons. A slitter cuts the paper into smaller, more manageable rolls, and the paper is ready for use.
Papermaking is one of the most capital intensive industries in the nation, investing over $100,000 in equipment for each employee. The largest papermaking machines are over 32 feet wide, 550 feet long and can produce over 1,000 miles of paper a day."
Typically, trees used for papermaking are specifically grown and harvested like a crop for that purpose. To meet tomorrow's demand, forest products companies and private landowners (in Wisconsin) plant millions of new seedlings every year.
To begin the process, logs are passed through a debarker, where the bark is removed, and through chippers, where spinning blades cut the wood into 1" pieces. Those wood chips are then pressure-cooked with a mixture of water and chemicals in a digester.
Used paper is another important source of paper fiber. Thanks to curbside recycling programs in many communities, we recover 40% of all paper used in America for recycling and reuse. The paper is shredded and mixed with water.
The pulp is washed, refined, cleaned and sometimes bleached, then turned to slush in the beater. Color dyes, coatings and other additives are mixed in, and the pulp slush is pumped onto a moving wire screen.
Computerized sensors and state-of-the-art control equipment monitor each stage of the process.
As the pulp travels down the screen, water is drained away and recycled.
The resulting crude paper sheet, or web, is squeezed between large rollers to remove most of the remaining water and ensure smoothness and uniform thickness. The semidry web is then run through heated dryer rollers to remove the remaining water.
Waste water is carefully cleaned and purified before its release or reuse. Fiber particles and chemicals are filtered out and burned to provide additional power for the mill.
Papermakers carefully test for such things as uniformity of color and surface, water resistance, and ink holding ability.
The finished paper is then wound into large rolls, which can be 30 feet wide and weigh close to 25 tons. A slitter cuts the paper into smaller, more manageable rolls, and the paper is ready for use.
Papermaking is one of the most capital intensive industries in the nation, investing over $100,000 in equipment for each employee. The largest papermaking machines are over 32 feet wide, 550 feet long and can produce over 1,000 miles of paper a day."
Friday, June 24, 2005
Freight Rates all Increasing
One of the important cost components to paper manufacture includes freight rates. Mills which produce the
paper grades are typically located in remote locations. Therefore, shipments for both in bound (for raw materials) and out bound (product to end users) tend to be many miles.
Trucking rates, Air transporation, Water, and Rail have all experienced price increases. Many blame the high cost
of fuel (approaching $60/barrel). This continues to place cost pressures on the paper producers.
paper grades are typically located in remote locations. Therefore, shipments for both in bound (for raw materials) and out bound (product to end users) tend to be many miles.
Trucking rates, Air transporation, Water, and Rail have all experienced price increases. Many blame the high cost
of fuel (approaching $60/barrel). This continues to place cost pressures on the paper producers.
Wednesday, June 22, 2005
WIND MILLS POWER WRITING SYSTEM
Mohawk Paper Mills announced that the entire Strathmore Writing System,
including Strathmore Writing, the #1 selling 25% cotton fiber paper in
the U.S., is now manufactured with wind power.
Mohawk purchased an additional 35 million kWh of wind power on June 1
for The Strathmore Writing System, manufactured at the non-polluting
Beckett Mill in Hamilton, Ohio. This commitment allows Mohawk, the only
paper mills in the U.S. using wind energy to manufacture paper, to join
the highest level EPA Green Power Partnership Leadership Club.
For more information on The Strathmore Writing System and Mohawk's use
of wind power, please visit http://www.mohawkpaper.com or call 1-800
THE MILL.
including Strathmore Writing, the #1 selling 25% cotton fiber paper in
the U.S., is now manufactured with wind power.
Mohawk purchased an additional 35 million kWh of wind power on June 1
for The Strathmore Writing System, manufactured at the non-polluting
Beckett Mill in Hamilton, Ohio. This commitment allows Mohawk, the only
paper mills in the U.S. using wind energy to manufacture paper, to join
the highest level EPA Green Power Partnership Leadership Club.
For more information on The Strathmore Writing System and Mohawk's use
of wind power, please visit http://www.mohawkpaper.com or call 1-800
THE MILL.
Monday, June 20, 2005
State of the Uncoated Paper Market
Many industry experts forecasted prices to drop in June.... and they are! Cut-size paper (business papers used in copiers) slipped $20/ton, and offset rolls (for publications) declined $10/ton -this is an addition to the $20/ton
Decline in May. Even value added grades are
getting squeezed with 50lb opaque selling $50/ton less than April
levels. Some mills, like International Paper are doing their part to try to support the market by
closing 3 machines in recent months with 430,000 tpy of capacity. IP
is also taking 120,000 tons of market downtime over the next 3 months.
In global markets, the uncoated prices in both Europe and Latin America are 'all over', but
labor issues in Finland could take some of the pressure off of prices (curtailed supply).
Decline in May. Even value added grades are
getting squeezed with 50lb opaque selling $50/ton less than April
levels. Some mills, like International Paper are doing their part to try to support the market by
closing 3 machines in recent months with 430,000 tpy of capacity. IP
is also taking 120,000 tons of market downtime over the next 3 months.
In global markets, the uncoated prices in both Europe and Latin America are 'all over', but
labor issues in Finland could take some of the pressure off of prices (curtailed supply).
Friday, June 17, 2005
Pulp Prices down .... again
North American prices for two grades of softwood kraft pulp declined this month on relatively weak demand for fine paper and competition among producers to move extra tonnage. Three grades of hardwood kraft saw mixed pricing, and levels did not fall as much as buyers had expected.
Paper Mills Finally Releasing Capital Dollars
A recent survey outlined top 20 North American mills will increase capital spending by 23%, or to $6billion, for 2005. It was pointed out that this is most likely NOT a return to ‘free spending’ but rather required spending. Most of the funds continue to be allocated to environmental mandates, cost savings projects and grade conversions. Many mills
Continue to review closing inefficient production and reducing staff.
Continue to review closing inefficient production and reducing staff.
Thursday, June 16, 2005
Paper Market Information
Paper Grades
-Printing and Writing Papers
-Capacity peaked in 2000 to 27.6million tons
-by 2003 capacity was 25.5million tons
-Forecast for no new capacity through 2007
-Freesheet grades experienced largest curtailment (down 10% 2000 to 2004)
-Uncoated Freesheet capacity now at 13.7million tons
-Many industry experts predict decline in paper prices throughout 2005
-Printing and Writing Papers
-Capacity peaked in 2000 to 27.6million tons
-by 2003 capacity was 25.5million tons
-Forecast for no new capacity through 2007
-Freesheet grades experienced largest curtailment (down 10% 2000 to 2004)
-Uncoated Freesheet capacity now at 13.7million tons
-Many industry experts predict decline in paper prices throughout 2005
Finnish Paperworkers go back to work
The Finnish paper industry finalized an agreement for salaries of the striking Finnish Pulp and Paper workers. The salaries will increase by a total of more than 6% over 3 years. Salaries for working during Christmas and midsummer will be three times the normal rate and the annual work time will be shortened by 11 hours.
Monday, June 06, 2005
Badger Paper to Curtail Capacity
Badger Paper Company of Peshtigo, Wisconsin, announced it will indefinitely shut down its uncoated freesheet Fourdrinier paper machine. The paper machine produced business papers and school paper.
Finland Paper Mills continue to Strike
The Finnish Forest Industry Federation, which represents the pulp and paper industry, that the current lockout will continue through June. Finland is a large supplier of pulp and paper to the world. This has the potential of creating a shortage,
although demand begins to slow during the summer months.
although demand begins to slow during the summer months.
Pulp Prices Finally Decreasing
Several producers have reduced market pulp pricing for the second month in a row. Many pulp suppliers
lowered NBSK fiber by an additional $20/ton. List price for NBSK is now at $630/mt. Note: Softwood
fiber has been under more pressure than hardwood - therefore- the cost difference is less. Big new fear-
what will happen during the low summer months????
lowered NBSK fiber by an additional $20/ton. List price for NBSK is now at $630/mt. Note: Softwood
fiber has been under more pressure than hardwood - therefore- the cost difference is less. Big new fear-
what will happen during the low summer months????
Friday, June 03, 2005
Transportion Costs Continue to Increase
An important cost for paper manufacturers is freight. All major modes of transportation
reported 1Q05 increases. Trucking is up 5.5%; air increased by 2.1%; Water reported no change; and
rail is predicted to rise 6.3% for the year 2005.
reported 1Q05 increases. Trucking is up 5.5%; air increased by 2.1%; Water reported no change; and
rail is predicted to rise 6.3% for the year 2005.
Kohlberg & Co. Brings Back Thilmany Brand
Kohlberg & Co., which recently acquired the industrial papers business from International Paper (IP), has brought back a familiar name to the paper industry.
The old IP business will be called Thilmany LLC. The headquarters are based in Kaukauna, WI, the town where Oscar Thilmany founded the original Thilmany Pulp & Paper company in 1883. John Zuleger is the president and CEO, with Jack Rohrback serving as the chairman of the board of managers.
The old IP business will be called Thilmany LLC. The headquarters are based in Kaukauna, WI, the town where Oscar Thilmany founded the original Thilmany Pulp & Paper company in 1883. John Zuleger is the president and CEO, with Jack Rohrback serving as the chairman of the board of managers.
Wednesday, May 25, 2005
Enviromental Calculator
Mohawk Paper recently introduced a link that allows one to calculate environmental factors for
your next printing job. The link http://www.mohawkpaper.com/index_content.htm go to
'Interactive Environmental Savings Calculator' this link outlines trees saved, potential emissions,
electricity conserved, solid waste not generated, and water used / saved.
your next printing job. The link http://www.mohawkpaper.com/index_content.htm go to
'Interactive Environmental Savings Calculator' this link outlines trees saved, potential emissions,
electricity conserved, solid waste not generated, and water used / saved.
USA Paper Demand Today
USA coated paper shipments continue to be held down because of Coated Free Sheet (Coffee table magazines) imports. Uncoated Free Sheet (office copy paper and trade book) demand continue to decline - 15.8million tons in 1999 to 14,2 million tons in 2004. Major reasons sited include Internet, electronic payments and communication. The shinning segments remain niche specialty papers(Medical, Electrical ) and uncoated mechanical papers (directories and inserts) and this is expected to continue.
Higher Postage Cost may Stagnate USA Paper Demand
Many beleive that USA paper demand will decelerate or be stagnate in 2006 if the USPS increases postage / mailing costs. North American paper demand increased 15% in 2003 -04. Today, end user markets are beginning to weaken. Recently, ad pages increased and peaked in 2004 - but are still below the peak of 2000. Catalogue mailings increased 8% last year - but with increased mailing costs (expected in January 2006) all expect a decline in demand to occur. One issue that might assist producer price levels - is a stike at the Miramichi mill (approx 8% of North America supply).
Friday, May 20, 2005
International Paper Closes 3rd Paper machine
International Paper will shut down an additional paper machine in the
Bastrop, LA paper mill. This machine produced uncoated freesheet papers
used for office and books.
In March, we reported that International Paper planned on indefinitely idling
two uncoated freesheet paper machines in the Florida and Maine locations.
Bastrop, LA paper mill. This machine produced uncoated freesheet papers
used for office and books.
In March, we reported that International Paper planned on indefinitely idling
two uncoated freesheet paper machines in the Florida and Maine locations.
Smart Papers Introduces New Digital Papers
Smart papers has recently introduced a full line of Digital Papers for the HP Indigo presses. The line will be called
IN-Fusion and it is an untreated premium paper (non-sapphire). The grade is available in
cast coat, matte, as well as both uncoated text and cover. These grades are available in 18X12".
Additional introductions included a Satin Finished sheet called Kromekote Inkjet Studio Picture and
Knightkote Matte Laser.
Smart also introduced Smart Brights (previously called Fraser Brights). This is available in
19 bright colors to compete with Wausau Astrobright.
IN-Fusion and it is an untreated premium paper (non-sapphire). The grade is available in
cast coat, matte, as well as both uncoated text and cover. These grades are available in 18X12".
Additional introductions included a Satin Finished sheet called Kromekote Inkjet Studio Picture and
Knightkote Matte Laser.
Smart also introduced Smart Brights (previously called Fraser Brights). This is available in
19 bright colors to compete with Wausau Astrobright.
Thursday, May 19, 2005
Paperloop.com - News�Analysis�Prices�Forecasts�Data�Events
Boise Cascade cancels IPO citing adverse market conditions.
It is interesting to note that Boise Cascade recently spent $25 million to build an e-commerce system so that their customers could order over the Internet. And, they spent 18 months aggressively migrating their customers to use it. It seems to have paid off, with over 85% of their customers purchasing from Boise online. In a seemingly parallel strategy Boise bought Office Max. Parallel because Boise recognizes the value of getting close to the customer instead of close to the paper machine.
Time will tell when they go public if this strategy paid off.
It is interesting to note that Boise Cascade recently spent $25 million to build an e-commerce system so that their customers could order over the Internet. And, they spent 18 months aggressively migrating their customers to use it. It seems to have paid off, with over 85% of their customers purchasing from Boise online. In a seemingly parallel strategy Boise bought Office Max. Parallel because Boise recognizes the value of getting close to the customer instead of close to the paper machine.
Time will tell when they go public if this strategy paid off.
Mohawk Number One
Mohawk is now number one in text and cover in the U.S.A. having purchased the fine paper division of International Paper earlier this month.
Wednesday, May 11, 2005
Riverside Paper to shut Appleton, Wis., specialty paper mill
Riverside Paper plans to become a non-integrated paper converter by closing its Appleton, Wis., specialty paper mill which dates back 110 years, cutting 100 jobs, according to local press reports. Paper grades that will be effected include: Latex saturation, Wet strength, Acid free, Groundwood specialties, Sulphite construction, Recycled specialties, File folder (manila/color), Index, Colored text/cover/bond, Tape base, Posterboard, Drawing grades, Special blacks, Deep dye colors, and Cotton content.
Experts see Market Pulp Demand Slowing Down
The pulp manufacturers witnessed excellent growth in demand for 2004 of 5.3%.
Industry experts believe annual growth will be less than 3% for this year, as well as annually
through 2007.
Industry experts believe annual growth will be less than 3% for this year, as well as annually
through 2007.
Finland Paper Mill on Strike
The Stora Enso workers continue their wildcat strike and the result is no production from their Finnish mills.
This will effect supply for publication papers in the USA.
This will effect supply for publication papers in the USA.
It's Official MeadWestvaco Paper Unit Sold
MeadWestvaco completed its sale of the paper business and associated assets for $2.3billion
to NewPage Corporation. NewPage Corp. is controlled by Cerberus Capital Management - a New York
based fund. NewPage will consist of printing paper mills, including Chillicothe, Ohio; Escanaba, Michigan;
Luke, Maryland; Rumford, Maine and Wickliffe, Kentucky.
to NewPage Corporation. NewPage Corp. is controlled by Cerberus Capital Management - a New York
based fund. NewPage will consist of printing paper mills, including Chillicothe, Ohio; Escanaba, Michigan;
Luke, Maryland; Rumford, Maine and Wickliffe, Kentucky.
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