UPM continues restructuring measures

UPM continues actions to secure its profitability in a business environment of slow growth and rising costs. UPM plans to close its least competitive paper and pulp capacity in Finland as well as to streamline operations in all business groups.
The planned actions to close capacity would improve UPM's cost competitiveness

Verso Paper Machine at Bucksport to Lightweight Paper

Verso Paper Corp.
announced that it will begin transitioning the No. 1 paper machine at its Bucksport Mill, in Maine, to manufacture specialty papers starting on September 22. With this move Verso will begin supplying value-added specialty papers to customers, which leverage Verso's core coating and
lightweight paper production techniques. Once fully transitioned, this change will reduce Verso's coated groundwood production capacity by 84,000 tons per year.

Hewlett Packard Announces Green Policy

Hewlett Packard announced a new policy for vendors that supply the more than 300,000 tons of paper HP purchases for retail. The suppliers must now market only certified papers with recycle content.

United States Postal Service talks about Environmentally Friendly Initiatives

The USPS recently issued a promotional brochure, Environmailism, which offers helpful insight to producing environmentally friendly direct mail pieces.
-Ask for the highest recycled content available for the grade of paper you are interested in
-Many grades are available from 30 all the way to 100% recycled, or even tree free.
-Print on lightest paper possible
-Ask for papers made of alternative fiber – tree free, cotton, etc vs. trees
-Design piece smaller to use less paper
-Seek inks that are not petroleum based – such as Soy based
-Opt for less ink coverage on printed promotion
-Print on both sides and use less paper
-Reduce run to exact match of material you need – watch for waste
-Be sure size of promotion matches paper sheet size and press size
-Merge and purge mailing list – remove invalid names
-Provide for opportunity for customer to opt out
-Maintain ‘do not mail’ list
Remember, you can always visit or call the paper expert at Paper.com for suggestions of paper from their new Green Store

Pulp Market Update

Notes from session with Mark Wilde of Deutsche Bank and Brian McClay of TerraChioce

-Pulp buying and thus demand lowered considerably in last several weeks, especially in China, and as market pulp output and producers’ stockpiles continued to rise, particularly for hardwood grades.

-Pulp demand was also considerably lower in most other world markets rejecting increased paper mill market-related downtime

-Global pulp demand will continue to be weaker than normal through year-end, well below pulp supply, as papermakers in virtually all regions curtail production on a temporary basis to better match supply with slowing demand, and as more permanent paper mill closures in the US and Europe take effect.

- Pulp prices will continue to fall until enough capacity is removed to re-establish market balance early in 2009 for softwood and later next year for hardwood grades.

- Another 1.6 million tons of capacity to come on stream around the world in 2009 followed by more than 2 million tons each in 2010 and 2011, virtually all of it hardwood

-These declining price levels should trigger significant closures in North America, particularly in Canada, perhaps approaching 2 million tons over the next 6-9 months,
with most of that softwood pulp. Possibly 2 million tons taken out of European pulp production as well. High cost facilities will be first to go.

- A slowing economy combined with permanent market share losses to online and other lower-cost alternative media pushed US print activity to a 21-year low in North America

--Non-national metro dailies, will start going out of the print business altogether.

Capital Spending by Paper Industry expected to Drop

Lack of demand and pressure on profitability has forced paper companies to limited spending on capital expenses. Most mills will only spend on projects which reduce energy consumption, restructure equipment to product more value added grades, or modify equipment to manufacture a different product mix

Deluxe to Close Three Plants, Cut 570 Jobs

Deluxe Corp., a printer of bank checks, is closing three manufacturing facilities and a call center, resulting in the loss of 570 jobs. The company said it will close its North Wales, PA manufacturing plant and its Thorofare, N.J. manufacturing plant and call center in the first quarter of 2009. The Greensboro, NC manufacturing plant will be shuttered by the end of next year.

Print Catalogs Remain Primary Sales Channel

A survey conducted by the Direct Marketing Association revealed that the print catalog remains the largest revenue generator amongst all channels, accounting for nearly 50% of total sales in both 2007 and 2008. Results of the 106 multichannel merchants polled showed that 62% consider catalogs their primary sales channel. Only 20% of those polled cited the Web as their primary channel and just 6% said retail was. Of those respondents surveyed, 59% indicated that they have increased circulation, while 15% reported no change. Additionally, 44% of the merchants reported increasing page counts and 42% reported no changes at all in pages.

New York Times Saves on Paper

New York Times just announced it will begin to combine sections of the paper to save on costs. As an example, the paper's metro section will become part of the paper's A section - which is National and International. The sports section will be combined with the business section, during the week days. These combined sections will start in early October. Like so many newspapers, the New York Times finances have worsened and they must reduce costs in various ways, including reduce page sizes and number of pages, as well as shrinking their staff.
The paper will save several million dollars with this recent move.

Wausau Papers Modifies Ice Line

The Exact Ice paper line has added a 100pound cover and is now available in 7 text and cover weights, including 50, 60, 70, 80 and 65, 80, and now 100 pound cover.
Paper.com will be marketing this grade once inventory levels are satisfied.

Many Newspapers Reduce Paper Consumption

In an effort to survive and save money, newspapers are now transitioning their paper from the standard 30pound (48.8gsm). As many as 70% of the newspapers are now ordering 45gsm. Large publisher, Gannett confirmed it saved $7.5million by reducing basis weight and they are now evaluating 42.5gsm. Many forecast that within 24 months, everyone will consume 45gsm and this will now be the standard.

Hazen Paper Purchases old Neenah Mill

Hazen Paper of Springfield, MA reached an agreement to purchase the Housatonic, MA plant from Neenah (this mil was acquired by Neenah as part of the Fox River purchase). Hazen specializes in film and foil laminations, gravure printing, embossing, and coating as well as security tickets, tags, and labels. No mention of status on the one paper machine at location.

Unisource Implements Fuel Surcharge

Paper, packaging and facilities supplies distributor Unisource Worldwide will institute a fuel surcharge due to the rising cost of diesel fuel. The company had been able to offset the fuel increase by maximizing delivery routing and truck fleet utilization.

Unisource will now institute a fuel surcharge per line item to all orders shipped from its warehouses and orders received through Unisource’s Website will receive a flat surcharge per order.

With gas prices increasing costs to every vendor that delivers, Paper.com firmly believes that paper sales on the internet will grow at an even faster pace. The site has over 40,000 items and ships the majority of orders within 24 hours.

SMART Papers' Super-Luxury Kromekote Brand Achieves Important Environmental Milestone - Full FSC Certification

SMART Papers' premium cast-coated Kromekote is now fully Forest Stewardship Council (FSC) certified, giving corporations and graphics professionals immediate access to the most luxurious and environmentally responsible printing and packaging papers in the world.
Kromekote is the first triple cast-coated brand to achieve full FSC certification. The achievement represents another important advance for SMART Papers and its commitment to supply the widest range of FSC premium coated and uncoated printing and packaging papers in North America.

SMART Papers is North America's largest independent manufacturer and marketer of premium coated and uncoated printing papers. The company is currently building a new energy facility at its manufacturing center that will be fossil fuel free by late 2009, enabling all of the company's papers to be fully carbon neutral. "SMART Papers' carbon-neutral future will give customers total confidence they are getting the most environmentally responsible printing papers available from any U.S. paper manufacturer," said SMART Papers President Dan Maheu.

Ultra-glossy Kromekote is widely regarded by printers and designers as the "gold standard" in printing papers. Now, the brand sets a new "green standard" for premium environmentally preferable coated papers, with both FSC certification as well as papers with 30% post-consumer waste (PCW) fibers.
SMART Papers recently announced FSC-certification for its Kromekote Recycled products. Today's announcement expands the certification to encompass the rest of the brand including Kromekote Text and Cover, Folding Board, Colors and Metallics, Foils, Textures and Digital products.

SOURCE: SMART Papers

Printer Survey on Environmental Programs

The Printing Impressions Magazine just published a survey with results of many questions for environmental programs that printers are interested in. Of particular note,
we outline, in order of popularity, which environmentally friendly steps USA the printers actually implemented –
Purchasing paper containing post consumer (waste paper)
Purchasing FSC paper
Using environmentally friendly inks
Developing internal recycling programs
Recycling solvents
Purchasing more energy efficient equipment
Planting trees
Direct-to-press processless plates

Digital Printing Still Growing

Overall print sales for 2008 are expected to grow over 2%, with both toner based and inkjet leading the way. PIA/GATF released the following growth projections
-Overall growth. ..............2.2%
-Ink Based Printing ……...0.8%
-Toner/Digital Printing .….6.2%
-InkJet ……….....……………..6.0%
Most printers, although frustrated with increased paper prices, are generally optimistic about 2008 sales.

Market Pulp Demand is Questioned

Although worldwide market pulp shipments for 2007 represented its sixth consecutive month of growth (40.4million tons), balance of 2008 may witness a steady or slight decline in demand. North American pulp mills shuttered 2.4million tons since 2005, and Pope and Talbot recently announced bankruptcy and will curtail 3 mills as well as Catalyst will close 200,000 facility.
NBSK, the benchmark grade, saw little change in price since the first half of 2008, with list price staying at $880/ton. Because many more paper making plants will continue to close due to poor economics and declining demand, this will result in less demand demand for pulp.
Top market pulp producers for North America include
Weyerhaeuser 2Million tons 9.7% market Share
Domtar 1.5million tons 7.5% market share
Canfor 1.4million tons 7.1% market share
Tembec 1.3million tons 6.3% market share
Georgia Pacific 1.2million tons 5.8% market share

Quebecor World begins Consolidation

Cash starved Quebecor World has announced it will consolidate divisions to become more efficient. It will integrate six divisions into three business units. The magazine, book, and directory divisions will become the Publishing Services Group. The US Retail, catalogue, Sunday magazine and direct mail will be combined to form Marketing Solutions. The Logistics and premedia groups will also combine.
The company also announced the sale of its European operations to Hombergh/De Pundert Group (HHBV) of the Netherlands.

Tag and Label Markets Continue to Grow

Times are tough for most paper markets, but the Tag and Label markets seem to be enjoying steady growth. Although these converters also share in the challenges of rising raw material costs, fierce competition, and a poor economy, but overall global growth has been steady at 4-4.5%. It is estimated that BRIC countries – Brazil, Russia, India, and China – will witness robust growth in future. The USA market is forecast to grow 5% annually, and reach $18billion by 2011. The pressure sensitive labels continue to account for the majority of this growth.
Top Label and Tag converters include
RR Donnelly
Avery Dennison
CCL Industries
Fort Dearborn
WS Packaging
Multi Color
Spear
Nashua Corporation
Standard Register
Hammer Packaging

Another Major Coated Freesheet Maker Raises Prices

Verso Paper has announced an increase of $60 per ton for its Influence and Velocity coated freehseet paper grades, effective October 1.

Paper.com announced that NewPage did the same last week for nine of its brands.