Plugging into the bright
future of biofuels
w w w . r i s i i n f o . c o m - O c t o b e r 2 0 0 9
P&P Int'l - PPI Oct 09 - Cover.indd 1 9/22/2009 3:35:09 PM
2443_cvr_digital.indd 1 9/25/09 9:49 AM
Europe
Tel: +32 (0) 2 655 63 40
N. America
Tel: +1 770 594 0660
S. America
Tel: +55 11 2133 0055
Asia Pacific
Tel: +65 67 99 60 60
Internet:
www.imerys-paper.com
ADDING VALUE TO PAPER
As a significant manufacturing business with global operations, IMERYS Pigments for Paper takes responsibility for the
environment. More and more of our customers are demanding paper that meets high environmental standards and a
pigment supplier that delivers high quality, performance and sustainability.
IMERYS Pigments for Paper continues to develop innovative solutions that reduce the environmental footprint of their
products throughout their lifecycle. Substantial improvements towards the sustainability of its business have been made.
IMERYS Pigments for Paper is committed to behaving in a responsible manner, towards the environment, their employees,
their customers, and the communities in which it operates.
SU
STA
IN
A
BLE PERFO
RM
A
N
C
E
PIGMENTS FOR PAPER
Sustainable Performance ad dave2 22 04:Generic Global Advert 22/04/2009 10:34 Page 1
2443_cvr_digital.indd 2 9/25/09 9:49 AM
Improved sheet consistency and energy savings are just two of the benefits of
Kadant's latest doctoring innovation. The new Airset™ blade holder
operates similar to a traditional doctor blade holder while introducing air
to augment the dewatering action of the doctor blade. The integrated air
cavity specifically targets the delivery of air to boost the cleaning action of
the doctor blade and can be used behind the blade for dewatering drilled
rolls or ahead of the blade for cleaning grooved rolls or belts.
With more than 75 years of doctoring experience, you can rely on the
company who pioneered the double-doctoring concept and continues to
put its application expertise to work for you. Learn how the Airset blade
holder can make a difference on your couch and suction rolls. Visit us
online at www.kadant.com/airset or contact your local Kadant sales
engineer today.
Increase double-doctoring efficiency up
to 20% with the new AirSet blade holder.
www.kadant.com
2443_txt.indd 1 9/25/09 9:04 AM
Thiele Kaolin Company • Sandersville, GA
(877) 544-3322 • thielekaolin.com
Why visionary papermakers
choose Thiele Kaolin
How would you describe a privately held company
with global reach and exceptional clay reserves?
The model of reliability, right? Right. And that’s
why visionary papermakers know they can depend
on Thiele Kaolin for generations to come.
Tailoring kaolin to your needs.
Contact us today for specifics.
2008 Thiele Ad_P&P 4/14/08 11:20 AM Page 1
2443_txt.indd 2 9/25/09 9:04 AM
3Pulp & Paper International (PPI) O c t o b e r 2 0 0 9
c o n t e n t s
october 2009 VOLUME 51 NUMber 10
5 FROM THE EDITORS
The ‘three bios’ bode well for a bright
future
40 RISI VIEWPOINT
What is the role of Latin America in the
printing and writing market?
7 WHAT’S NEW
37 SUPPLIER NEWS
38 ADVERTISER SHOWCASE
38 ADVERTISERS INDEX
39 MARKETPLACE
Plugging into the bright future of biofuels. Cover: istockphoto
13 Belišće moves ahead
The Croatian mill continues to improve its offering after a number of
updates and rebuilds
19 The future is bright
Substantial investment is beginning to flow into the production of
second generation biofuels
23 Dry strength additives for a competitive edge
Expanding operating windows on a board machine by having an
effective dry strength program
27 APRIL moves forward
Report on the company’s Kerinci mill on the island of Sumatra
highlighting the importance of sustainability and the improvement
of life for the local population
32 Beware of averages
Making the case for price management in the pulp and paper industry;
the current times demand no less
Editorial HEadquartErs
326, Avenue Louise, Box 22 - B-1050 Brussels, Belgium
Tel.: +32.2.538.60.40, fax: +32.2.537.56.26, e-mail: news@risiinfo.com
risi CorporatE HEadquartErs
4 Alfred Circle, Bedford, Mass., USA 01730, Tel.: +1.781.734.8900
Editorial
Executive Editor .............................................................................Graeme Rodden
Editor ................................................................................................. Mark Rushton
Associate Editor .......................................................................................Annie Zhu
Contributing Editor ............................................................................. Justin Toland
produCtion
Graphic Design Manager ...................................................... Anne-Chantal Bodart
Production Manager ..........................................................................Stef De Swaef
Vice President, Production ...................................................................Iain Murray
onlinE produCtion
Online Content Producers .................................................... Anne-Chantal Bodart
nEws
Editorial Director, International News ..............................................Joanne Potter
Editorial Director, North American News .................................................Will Mies
News Editors .........Michael Dixon, Greg Rudder, Renata Mercante, Drew Miller,
Bryan Smith, Jim McClaren, Fernanda Belchior, Nick Chang, Jennifer Ellson,
Jessica Zimbalatti, Irina Van den Neste, Eva Nyman, Elsa Yan, Cameron Wilson
CirCulation
Circulation Manager ..........................................................................Marlin Martin
salEs and MarkEting
Sales Director, Marketing Services .........................................................Remy Poos
Sales Director, Marketing Services (North America) ...........................Misty Belser
Sales Coordinator .......................................................................Monica Zaskiewicz
Director of Events ............................................................................ Jennifer Rahall
Marketing Specialist ..................................................................... Jennifer Plourde
ManagEMEnt
President/CEO .......................................................................................Mike Coffey
Senior Vice President, Marketing Services ........ Rhiannon James-van Beuningen
For display advErtising, plEasE ContaCt
International - Remy Poos - Sales Director, Marketing Services
Tel: +32.2.536.07.35 - rpoos@risiinfo.com
North America - Misty Belser - Sales Director, Marketing Services
Tel: +1.919.747.9560 - mbelser@risiinfo.com
For ClassiFiEd, rEprints and list rEntals, plEasE ContaCt
Monica Zaskiewicz - Sales Coordinator
Tel: +1.770.373.3002 mzaskiewicz@risiinfo.com
subsCription EnquiriEs
Fax: +1.847.763.9541. Tel: +1.847.763.9540 or e-mail ppi@halldata.com. PPI,
Hallmark Data Services, P.O. Box 2018, Skokie, IL 60076-7918, USA. For change
of address, enclose a label from a recent issue of PPI, showing old address.
Subscriptions: $157.00/year in the U.S.; Canada and Mexico, US$187.00/year;
all other countries, US$297.00/year. Single copy, US$20.00
© COPYRIGHT 2009,
by RISI, Inc.
All rights reserved.
Published monthly.
ISSN 0033-409X.
Canadian GST permit
no: 124513185.
Worldcolor, Leominster
13 27
O P I N I O N
D E PA R T M E N T S
S E R V I C E S
IN THE NEXT ISSUE . . .
• Special focus: India
• IT and automation
• Record breaking machines
• Chemicals
• Mill feature
P&P Int'l - PPI Oct 09 - p3.indd 3 9/24/2009 2:37:32 PM
Printed by
2443_txt.indd 3 9/25/09 9:04 AM
Streak problems?
Reduce your lines and streaks by 50%* with
Duroblade®-Omega™!
Precise geometry and an optimized deposit of tungsten carbide
make Duroblade-Omega a top-notch blade. It provides improve-
ments of both paper surface properties, such as smoothness
and gloss, and machine runnability. However, the main benefit
of Duroblade-Omega is the drastic reduction of streaks and
lines, on board and fine paper, in both stiff and bent applications.
BTG your number one 1-stop-shop!
* Some customers report up to 80% reduction in streak frequency
www.btg.com duroblade@btg.com
Pub DB_Omega A4 -09:Pub Coat fond sauce A4 22.9.2009 9:08 Page 1
2443_txt.indd 4 9/25/09 9:04 AM
FROM THE EDITORS
5Pulp & Paper International (PPI) O c t o b e r 2 0 0 9
f ro m t h e e d i t o r s
PPI’s latest top 100 (which you can view online at www.risiin-
fo.com, or in our september issue) may not have seen very much
excitement in terms of movement of companies up and down the
list, but one thing was decidedly clear; as the editorial team pains-
takingly analyzed all the global companies’ sales figures, it was
clearly evident that the new and vital revenue stream of income
from biomass, bioenergy and biofuels is starting to affect balance
sheets – certainly among those companies that have taken up the
challenge and run with it early.
this bodes very well for the long term future of the industry
for a wide variety of reasons but mainly because, like all useful
inventions, paper and board has developed into a commodity
over the years. Why? suppliers and producers have developed
production techniques that have minimizsed labor costs and
have all but completely automated the papermaking process. the
problem is, almost all producers have been doing the same thing,
so far from investment bringing in better margins, the reverse has
happened as each supplier attempts to ply similar, if not identical,
wares to an increasingly challenging marketplace. the upshot is
that unless you are a very specialist supplier, and able to maintain
high margins, another revenue stream in the shape of the three
bios is a welcome opportunity.
Prime position – limitless opportunity
the pulp and paper industry is in a prime position to grab this
opportunity with both hands and exploit it to a limitless degree.
speak to any number of consultants to the industry and they are
also excited by the bios as they cash in to the new ‘sexy’ side of the
forest products industry.
I have been talking to a variety of such consultants recently
and one, accenture, has as many as 200 specialists in the field,
purely dedicated to forest products side of the three bios, and
2,000 climate change specialists waiting to give a helping hand up
the chain as carbon issues and their attendant stringent regula-
tions come to the forefront.
the pulp and paper industry already has several built in
advantages that position it perfectly for the bio markets. It has
the infrastructure in place for the procurement of raw materials
and their transportation, as well as high tech processing facilities.
above all it has the mind set and DNa in terms of production that
fits perfectly with the generation of green energy in all its formats.
this knowledge fits supremely to serve the industry well in the
global race to eliminate the effects of climate change, which is
rapidly becoming the top agenda of governments all over the
world.
We are already seeing massive investment taking place both
inside and outside the industry. The Future is Bright article on
pages 19-22 of this issue, highlights the global situation and lists
all the important and significant activities taking place as second
generation biofuels become a serious proposition for the future.
And there could be spin offs…
the industry’s involvement at such a high and important level in
the battle against climate change, and the production of green
energy, has to be seen as a major positive endorsement of its
activities. add this to responsible procurement of raw materials by
way of forest certification and managed plantations, the already
well recognised way the industry has addressed its own issues of
emissions and effluent. the result can only be good for the public
image of paper.
there is no doubt that the world is changing in the way we
all communicate, social media sites the likes of twitter and Face-
book are now institutions for people who want to communicate
instantaneously, but it is also true that print and paper com-
munication continues to provide a more sustained and focused
communication method, for both intellectual and commercial
purposes. as soon as the message gets out that the paper industry
is helping to alleviate climate change, the spin offs and goodwill
associated with such a positive message could be immeasurable
for the core business of making pulp and paper.
another welcome spin off could be the attraction of bright
new talent as the industry shakes off its dusty, dour and old
fashioned image, and embraces the bright new world of helping
to make the earth run on renewable energy. and once again it is
another perfect opportunity for the industry to put on a new shirt,
shout from the rooftops, and let everyone know what a great job
the industry does in terms of the environment.
To read more industry opinions or give your own opinion, please
visit our RISI Blog and Forums online at www.risiinfo.com
The three ‘bios’ bode well
for a bright future
Mark rushton is Editor, Pulp & Paper International (PPI)
P&P Int'l - PPI Oct 09 - p5.indd 5 9/24/2009 2:34:30 PM
2443_txt.indd 5 9/25/09 9:04 AM
Invest in Gold
• Energy Efficient
• Unmatched Quality
• Superior Reliability
• Quickest Delivery Available
Electric motors consume 63 percent of all electricity used
in U.S. industry. Designed and built to meet or exceed
NEMA Premium® efficiency standards, Baldor•Reliance®
Super-E® motors run cooler, last longer and cost less every
minute they operate.
Fractional to 15,000 Hp, Baldor•Reliance Super-E
motors reduce your electricity costs with a return on your
investment that’s as good as gold.
baldor.com
©2008 Baldor Electric Company
2443_txt.indd 6 9/25/09 9:04 AM
WHAT’S NEW
7Pulp & Paper International (PPI) O c t o b e r 2 0 0 9
w h a t ’s n e w
project will cost some Euro 7 million ($10 million). Suppliers should
be chosen by early October. Installation will begin toward the end of
the year, with startup scheduled for the first quarter of 2011.
Papierfabrik Hainsberg wrapped up an upgrade of PM 2’s dryer sec-
tion at the Freital mill in May. Papierfabrik Hainsberg plans to carry
out a further rebuild of the press section in 2010 in a bid to increase
the dryness of the paper before the dryer section. The revamp may
also increase the machine’s speed by about 2-3%. The firm hopes to
select suppliers in early November.
PM 2 currently manufactures 45,000 tonnes/yr of printing/writing paper
from 100% recovered paper and has a maximum speed of 600 m/min.
The company hopes to reach 50,000 tonnes/yr following the upgrade.
SKG finished revamp of its Nettingsdorfer mill in Austria
Smurfit Kappa Group (SKG) recently finished a Euro 18 million ($26 million)
modernization project at its Nettingsdorfer mill in Haid bei Ansfelden in Austria.
The company invested in a Euro 15 million drive system for the site’s sole
machine, PM 6. The machine’s capacity would not be affected.
The remaining Euro 3 million were spent on a number of general mainte-
nance measures, like overhauling the pulp production and renewing the
power generation systems, by installing a new recovery boiler.
Sofidel to build new tissue plant in France
Italian tissue producer Sofidel has unveiled plans to build a new
integrated paper mill in France through its French subsidiary Délipa-
pier. The project will cost around Euro 120 million ($175 million)
The facility, which will be located in Ingrandes, western France, will
house a 60,000-tonne/yr tissue machine as well as a number of con-
verting lines. The suppliers will be picked at a later date.
Délipapier aims to start converting activities in mid-2011, while paper
production will start during 2014. The company hopes to re-
ceive the necessary approval for the facility next year.
The firm plans to shut down its nearby convert-
ing facility in Buxeuil once converting opera-
tions start in Ingrandes, so that some 60
employees can be transferred from the
old plant to the new one without in-
terruptions. The investment will also
create some 160 fresh positions.
India’s Himalaya Krafts nears
startup of first paper plant
Himalaya Krafts is installing a kraft
paper machine at its new mill, in the Una
district of Himachal Pradesh, northern
India. The 10,500-tonne/yr unit will have
an operating speed of 130 m/min and a wire
width of 3.2 m.
Trial runs are scheduled for October, with com-
mercial production to follow soon afterwards. Output
will be sold in the domestic market.
10To p T e n H e a d l i n e s o n R i s i W e b s i T e l a s T M o n T H
1. Stora Enso announces more capacity reductions due
to ongoing weak demand
2. RISI ECONOMISTS: Is this surge in pulp price the “real thing”?
3. RISI ECONOMISTS: The China factor in world recovered paper markets
4. RISI ECONOMISTS: Too little, too late: European graphic paper prices head south
5. IP shifts Virginia paper machines to pulp for China
6. OSHA proposes $123K in fines against IP for Georgia mill fatality
7. SCA announces September price increases for recycled
containerboard and kraftliner grades
8. US containerboard inventories show only seasonal rise in July,
but box shipments still weak
9. AbitibiBowater indefinitely idles two Thunder Bay PMs
10. AbitibiBowater reports $510 million second quarter loss
For more daily news headlines,
visit www.risiinfo.com
CMPC to raise tissue capacity
Chilean Empresas CMPC, which recently acquired the Brazilian tissue manu-
facturer Melhoramentos, has plans to increase capacity in Latin America,
making Brazil one of its most important tissue paper platforms.
CMPC’s CFO Luis Llanos commented that the company intends
to expand its tissue paper capacity in Latin America in the
medium term. “We’re also evaluating the installa-
tion of a new tissue PM in Chile in three years,”
Llanos said. CMPC currently manufactures
450,000 tonnes/yr of tissue papers at
facilities in Brazil, Chile, Argentina, Peru,
Uruguay, Mexico and Colombia.
Melhoramentos’s two tissue mills in São
Paulo state, Brazil, have a total capacity
of 75,000 tonnes/yr. According to Lla-
nos, the Brazilian assets combined with
the current portfolio will turn CMPC
into “the largest Latin American player
in each category it is present.”
P R O J E C T S & O P E R AT I O N S
Papierfabrik Hainsberg to build
new power plant
Papierfabrik Hainsberg has decided to build a
new power plant at its mill in Freital, Germany. The
N E w S S H O R T S F R O M T H E P u l P A N d PA P E R w O R l d
C O R P O R AT E S T R AT E G Y
AbitibiBowater to cut production
at five Canadian and uS mills
AbitibiBowater plans to suspend or reduce production at five newsprint and
uncoated mechanical paper mills, four in Canada and one in the US.
The mill and machine shuts, along with curtailments already underway at
two other mills, would reduce the company’s total capacity by 1.3 million
tonnes/yr and affect about 1,500 workers in Canada, according to Reuters.
AbitibiBowater will shut its 223,000-tonne/yr Beaupre, QC, uncoated
mechanical paper mill by the end of October and one machine at its
288,000-tonne/yr Fort Frances, ON, uncoated mechanical paper mill where
one machine has been idle since March 1.
Newsprint closures will include one of two machines at its 343,000-tonne/yr
mill in Clermont, QC, by the end of October as well half of the production at the
253,000-tonne/yr Bowater Mersey newsprint joint venture mill in London, NS.
In the US, AbitibiBowater will ha