PaperFIRST Mag #3 - Autumn 2020 by ENP Publishing

autumn 2020

Prospective insight for the global paper industry

EDITOrial

Still waiting for the “new normal”

s the world is learning to live with COVID-19, and possibly other kinds of pandemics, the “new normal” that is supposed to emerge from this crisis is still a concept to be shaped. Since the start of the current crisis, consumers have been forced to change their daily routine and spending habits, while producers have been struggling to adapt their human resources, supply chain, production lines and distribution processes to this new pattern. The big question for everyone is “how long will it last?”. It is one thing to adjust temporarily to a new environment, quite another to reinvent a way of life or a business model.

Stéphane Richard

PaperFIRST Mag is produced by ENP Publishing Group 36, rue Stanislas Julien 45000 Orléans (FRANCE) Tel : +33 238 42 29 00 - www.paperfirst.info info@groupenp.com RCS n°34303773500044 Publishing Director Stéphane RICHARD Editorial Contributors Richard CHO, Kaj FAHLLUND, Abhinav GOEL, Dr. Ronalds GONZALEZ MBA, Felix GRÜNEWALD, Michael HEROLD, Dr. Hasan JAMEEL, Paul JENKINS, Oskar LINGQVIST, ChangYuan LIU, Lyubov LYUBIMOVA, John NELSON, Julia SCHAEFER, John SCHROEDER, Roman SMORGUNOV, Donald STANLEY, Antonio SUAREZ, Gregory VAINBERG, Marianne VALTA, Dr. Richard VENDITTI, Franklin ZAMBRANO MBA Consulting Editor Teresa PRESAS Revision Zoe WELLENKAMP Graphic Design Gessica CAMBI Marketing and Sales François HENIN Printed in Europe © 2020 ENP Publishing – All rights reserved Legal Deposit November 2020 No reproduction allowed without permission of the publisher, who will not be held responsible for the contents provided by third parties. PaperFIRST Mag - ISSN n°2679-7240 Also by ENP Publishing: PaperFIRST Web, PaperFIRST App, TissueFIRST App, La Papeterie, El Papel, Pasta e Papel, Turkiye Kâğıt Sanayii, Paper MiddlEast. PaperFIRST Mag is dedicated to pulp and paper professionals. Those who work for a paper mill can be entitled to a free copy. To make sure you receive your own copy, apply for a subscription by sending an email to: paperfirst@groupenp.com.

What we have witnessed so far are just practical reorganisations, but nothing revolutionary. Maybe this is because, in the end, the general hope is to get back to the “old normal” in some ways. The plea made last Spring by many politicians and the civil society for relocalizing manufacturing capacities on their soil, is not taking off. The idea is overtaken by the reality of economic competitiveness. Many employers are desperate to have their staff coming back onsite to occupy their empty workstations. Real estate has a cost, and online management has its limitations. Sales people want to travel again to visit their clients, and meet potential leads at exhibitions and other events. Webinars and video chats are not ideal alternatives for networking. Restaurants and hotels in business districts cannot wait to see their tables and rooms full again. Working at 50% capacity, at best, does not cover the costs. As long as we see the present situation as an interlude, there will be no real disruption in our global system. However, the need, and wish, for a green and decarbonized economy is more obvious than ever. And although the final outcome of all this is still very uncertain, the P&P sector, and cellulose-based products in general, should benefit from this shift in the long term. Biomass, pulp, tissue, specialty paper, corrugated and cartonboard have the intrinsic properties to help our societies build a truly circular and sustainable ecosystem. In that respect, the ambitions of our industry globally are high, and its capacity to deliver is unmatched, as you can read about in our Global Challenges section. Enjoy the read, and stay safe. Stéphane RICHARD

PAPERFIRST MAG Autumn 2020

From production to delivery.

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CONTENTS 26

30 EDITORIAL

MARKET OUTLOOK Graphic-paper producers: Boosting resilience amid the COVID-19 crisis 6 The market for specialty papers in North and South America 12

MARKET TRENDS National Brands vs. Private Labels: A market dynamics analysis for hygiene tissue in the United States ill re ased pa a in de el p ilst t e rld still suffers from plastic paranoia?

THE C-LEVEL INTERVIEW Michele Bianchi, CEO of RDM Group – Reno De Medici

GLOBAL CHALLENGES Energy transition and decarbonisation: Crossed viewpoints from Europe, Africa, Asia, Australia and the Americas

MILL STORIES Domtar’s Dryden Mill conducts safe maintenance outage during pandemic

TECH TALK 5 questions to Jari Vähäpesola, President Paper Business Line at Valmet

TECHNICAL INSIGHT Field services go remote! by Valmet Hard data, soft sensors and process expertise by ABB Optimizing the paper manufacturing process with virtual sensors by Voith Water-cooled multi-motor drive for a complete paper machine by Siemens A digital revolution in logistics by Pesmel Adding 30% capacity with little investment by AFT Mist & contaminants be gone at SAICA Champblain by Kadant/M-clean Handling tumultuous times in the tissue and towel market by Solenis Mar et p lp line n ersi n t p lp line by Bellmer

55 58 62 66 68 71

CALENDAR OF EVENTS

46 48 52

PAPERFIRST MAG Autumn 2020

Market outlook

Graphic-paper producers: Boosting resilience amid the COVID-19 crisis Article by Abhinav Goel, Felix Grünewald, Oskar Lingqvist, and Gregory Vainberg

A recent survey released by the consulting firm McKinsey shows that four proven actions can help graphic-paper producers rebound despite the market declines that have been accelerated by the COVID-19 pandemic.

lobal graphic-paper markets have been declining significantly over the past decade. eveloped countries have experienced the strongest decline, at approximately to percent per year hibit . eveloping countries graphic paper consumption surpassed demand from developed countries in . o ever, consumption there, too, had started to ane in , albeit at the slo er pace of appro imately to percent a year. he decline in demand for graphic paper has been especially noticeable in developed countries, here there has been a clear correlation bet een reducing paper consumption and economic advancement, driven by digiti ation. he similar effects e are no seeing in developing countries can be e plained in part by the relatively larger share of digitally savvy younger people in such marets. eneration born comprises true digital natives and already ma es up percent of Bra il s population today, for instance.

Exhibit 1: Graphic-paper demand has been declining globally for a decade—and even longer in developed economies.

THE COVID-19 CRISIS HAS ACCELERATED THE DECLINE OF GRAPHIC-PAPER DEMAND he crisis has been a mi ed bag for paper and pac aging players. n one hand, some companies have benefited from an increase in grocery shopping and pantry loading of essentials, such as toilet paper. n the other hand, graphic paper producers have suffered significant volume drops hese declines are driven by the fact that the pandemic has introduced ne factors but also acce1

PAPERFIRST MAG Autumn 2020

Tracy Francis and Fernanda Hoefel, “‘True Gen’: Generation Z and its implications for companies,” November 12, 2018, McKinsey.com.

Market outlook

lerated some of the previously e isting trends that driving graphic paper reduction

ere already

■ Office printing. here has been a decline in office printing because of the rise in remote or ing. The associated absence of corporate grade printers and s itch to digital meetings has drastically reduced office paper consumption. hat has been compounded by a tight grip ept on nonessential spend items including stationery and office supplies among organi ations that are reopening offices. ■ Advertising. here has been an absolute reduction in advertising because of lo er discretionary spend or tight spend control by companies and a significant shift to online advertising ith more targeted audience communication. ■ Media consumption. A shift to digital and online consumption of media ne spapers, maga ines, and boo s has been accompanied by an accelerated increase in the availability and consumption of e boo s, podcasts, and audioboo s. ■ Mail volume and forms. he rise of e communication, a further acceleration of e invoicing, and a s itch to e forms driven by the closure of offices and retail outlets manifested in, for e ample, the rise of online only ban accounts have led to a decline in mail volume and forms. he decline of transactional paper uses has also been driven by governmental efforts to advance digital adoption. ■ Digital learning. he e pansion of digital learning, ith many schools and universities moving to ard online courses, has been accelerated by the pandemic driven rollout of digital solutions, hich have become lifelines for the continuation of learning. here is, nevertheless, some light at the end of the tunnel for graphic paper producers in the potential recovery of discretionary spend after loc do n. hat could increase businesses illingness to spend, and see individuals turning bac to printouts in business conte ts, as ell as paper based media consumption. o big challenges remain for the industry, ho ever. he first is that the crisis is accelerating structural changes that are stic y for e ample, readers ho have s itched to digital maga ines seldom return to print copies . econd, trends such as or ing from home and providing digital first education that ere once forecasted to happen over a timeline of five to ten years have been condensed into a period of months and they ill li ely be sustained. 2

Andrea Alexander, Aaron De Smet, and Mihir Mysore, “Reimagining the postpandemic workforce,” McKinsey Quarterly, July 7, 2020, McKinsey.com.

PAPERFIRST MAG Autumn 2020

Market outlook

HOW GRAPHIC-PAPER COMPANIES CAN WEATHER THE STORM: FOUR PROVEN ACTIONS e can already see the effects of loc do n on graphic paper demand by loo ing at mar et indicators. demand for graphic paper grades plummeted to percent, year on year, from April to une prices for ood free paper in urope fell to percent in uly compared ith ecember . o eather the current storm, e anticipate that graphic paper companies ill need to consider four actions. trategically revie ing their asset portfolios and mar et e posure, relentlessly focusing on cost and cash, driving commercial e cellence, and e ploring diversification opportunities is an approach that could allo players to improve their resilience hibit .

Exhibit 2: Graphic-paper players can act upon strategic, cost, and commercial levers while exploring diversification.

1. Strategic review nder the current circumstances, graphic paper companies ill need to revie their strategies from three angles. onsideration of footprint consolidation in case of multiple assets , end customer segment participation, and level of value chain participation is a good first step in determining the best strategy moving for ard. ootprint consolidation is a relevant strategic choice for players ith multiple assets in the same graphic paper grade. Ad usting capacity in light of falling demand may help the competitiveness of the remaining assets and secure financial stability. egment participation revie for e ample, of involvement in pac aging, paperboard, container3 Jake Bryant, Felipe Child, Emma Dorn, and Stephen Hall, â&#x20AC;&#x153;New global data reveal education technologyâ&#x20AC;&#x2122;s impact on learning,â&#x20AC;? June 12, 2020, McKinsey.com.

PAPERFIRST MAG Autumn 2020

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Market outlook

board, envelopes, and so on ill be critical to maintain sufficient volume stability during head inds. n past years, numerous mills around the orld have been converted from graphic paper production to other grades, such as food pac aging, coated free sheet, and containerboard and that trend is set to stay. ome of the conversions ill re uire significant capital investment, and they may re uire footprint rationali ation for funding.

Exhibit 3: Successful strategies differ according to the size of the graphic-paper company. Source: McKinsey analysis

2. Relentless focus on cost and cash he ma ority of graphic paper companies have eathered the storm considerably ell so far by reducing budgets, decreasing capital e penditures, and implementing ero based approaches to indirect spend and organi ation si e. urthermore, establishing strict spend control to ers and launching competitive sourcing for large cost items such as furnish, chemicals, pac aging, and so on are ey. sing analytical tools to drive process controls and asset performance has been proven to elevate operational performance and reduce costs further. e have seen multiple instances in hich digital and analytical tools have improved process parameters yield, material consumption, and output ithin raft mills digester and bleach assets hile also reducing overall do ntime and improving yield across all production lines. hat approach could deliver an added benefit of to percent throughput uplift across a mill and reduce conversion costs by to percent ithin three to five months.

3. Commercial excellence to create value for customers o ensure strict controls on margin lea age hile maintaining appropriate loading of paper assets, companies need to shore up their governance on commercial decisions. n the short term, that means focusing on optimi ing product and customer mi to ma imi e profitability and enforcing pricing discipline to ma imi e average price.

PAPERFIRST MAG Autumn 2020

Market outlook

As mar ets remain volatile, graphic paper players also need to remain active in searching for opportunities for geographic and product portfolio e pansion opportunities. t is important that mills keep close tabs on their average prices achievable via e ports versus domestic customers. As home mar ets dry up, stimulating volume and pricing competition, mills might consider strengthening their relationships ith distributors and bro ers to access international mar ets and protect their order boo s and to be able to cover fi ed costs.

4. Exploration of adjacent value pockets to find market niches, conversions, and specialties roduct diversification presents another avenue for graphic paper companies to consider as they see a more lasting solution to protecting their businesses. or instance, they can e plore ad acent product niches to utili e e isting assets ith little or no investment. As an e ample, offset roll ma ers might e plore opportunities in in et and release papers. Additionally, ith minor capital infusion, companies can participate in ad acent niches, such as envelopes, paperboards, and so on. hat ill help bridge order boo gaps over the near term until the mar et recovers. ■■■ e believe that graphic paper companies can rebound amid the crisis. espite the trends in demand decline accelerated by the crisis, they can thrive by carefully e ecuting on the plan outlined in this article, creating value for shareholders. he po er of the strategy has been demonstrated by a paper mill margin of to used it to achieve an improvement in B percent.

Abhinav Goel is an associate partner in McKinsey’s Cleveland office, Felix Grünewald is a consultant in the Zurich office, Oskar Lingqvist is a senior partner in the Stockholm office, and Gregory Vainberg is a senior partner in the Montreal office.

This article is a shortened version of the «Graphic-paper producers: Boosting resilience amid the COVID-19 crises» article published by McKinsey on 18 Sep 2020.

opyright

c insey

Earnings before interest and taxes.2020, McKinsey.com.

PAPERFIRST MAG Autumn 2020

Market outlook

The market for specialty papers in North and South America Article by John Nelson, Smithers

The specialty papers market in the Americas will face a series of new challenges and opportunities over the ne t five years.

hile offering attractive revenue, the specialty papers market in the Americas will face a series of new challenges and opportunities over the ne t five years. hese are profiled and e amined in a brand ne study from Smithers â&#x20AC;&#x201C; The Future of Specialty Papers in North and South America to 2025. In this exclusive content for PaperFIRST, Smithers examines ho this mar et ill change over the ne t five years. hile paper mar ets such as ne sprint, maga ines, and office papers have been in decline for many years due to electronic alternatives, most specialty papers serve a function that an electronic product cannot replace. ey factors driving change in the orth and outh American specialty papers mar et re ect society s increasing interest in developing options that are lo er cost, more efficient, and more environmentally friendly. As larger, faster paper machines making commodity grades are shut down due to declining markets, some are transferring to producing high-volume specialty paper grades, such as release liner and e ible pac aging. As an incentive to their customers, they are using innovative technologies to offer lighter, stronger paper, or higher uality finishes. echnology allo ing better connectivity and using ndustry . tools for more precise process control is particularly valuable for faster machines. pecialty paper customers often have very specific re uirements for such properties as basis eight, caliper, smoothness, gloss or et strength, and grade changes bet een customers, hich can lead to a lot of transition paper that does not meet specifications, can be minimised ith automation, resulting in more efficient production. eaching customers through advertising and relying on customer loyalty to sell products is becoming more difficult in a orld here customers have more information at their fingertips. ac aging that stands out, especially in food stores, is one ay to attract shoppers attention to ne products and to convince them that a product offers added value over alternatives. his can create demand for lu ury pac aging grades, hich typically use higher basis eights, have higher brightness, and more coatings. he emergence of e boo readers ate into sales of printed boo s, but e boo sales seem to have stabili ed at about of all boo s. he use of specialty papers for covers and binding of boo s is declining at a slightly lo er rate than in previous years. e business opportunities in the food industry, including take-out, ready-to-eat meals from the deli section of grocery stores, and delivery services such as ber ats, all provide convenience to last minute shoppers and have created opportunities in the specialty paper mar et, especially for e ible raps, bags, and light eight disposable pac aging, such as paper cups.

PAPERFIRST MAG Autumn 2020

Market outlook

Concern for the environment has driven a demand for more sustainable materials. he ideal materials are not only bio based, but are also reusable, recyclable and compostable. aper scores ell in all these categories, although it is not uite as suitable as plastic for re use pac aging formats, but in all other categories it is a better environmental choice. here is thus an opportunity to s itch some materials from plastic to specialty papers. ncluded in this trend is a desire to move, here feasible, from multilayer pac aging made of paper, plastic and aluminium, to paper based pac aging ith ater based barrier coatings. overnments are helping to drive better recycling and composting infrastructure hile putting up barriers to the use of less environmentally desirable materials. hey are using a combination of strategies that include setting up e pert advisory boards creating sustainability targets passing legislation to ban materials, such as single use plastics and implementing ta es or fines. A term that is increasingly being used to promote better sustainability is the idea of a circular economy, in hich resources are ept in use for as long as possible, ma imum value is e tracted from them while in use, and these are recovered and used for regenerated products and materials at the end of each service life. pecialty papers fit ell into this model, as paper is one of the most recycled products on earth. Innovation is necessary for survival in the specialty paper market, but many specialty paper manufacturers are very small and cannot develop ideas independently that require large investments and lengthy development or . any of the ne est ideas are coming from third parties, such as chemical suppliers or research institutions, or from open innovation concepts, such as competitions. One example of the former is nanocellulose, a technology that has been developed over the last years mostly by consortium research. An e ample of open innovation is the e t en onsortium, hich aims to develop fully recyclable ta e out cups, founded by c onald s and tarbuc s. icrocellulose and nanocellulose technology has been available for many years, but only at a small scale until the late s. he technology is no available to ma e micro nanocellulose products on a commercial scale, and in the period many products ill benefit from their use. he current applications of micro nanocellulose in specialty papers generally fall into four categories: lighter basis eights lo er cost furnish opacity improvement and surface barrier properties.

PAPERFIRST MAG Autumn 2020

Market outlook

Some chemicals traditionally used as additives in making specialty papers are no out of favour due to health and or environmental concerns. hese are being replaced ith more sustainable and less controversial substitutes. o e amples are the replacement of bisphenol A B A or other phenol type additives in thermal paper for receipts, and the replacement of per and poly uoroal yl substances A to impart greaseproof properties to papers for food raps and other products. ater based barrier coatings for specialty paper products are being developed to replace less recyclable alternatives, such as poly laminated papers or e truded polyethylene layers. Bio based a products, hich are bio sourced compostable products, can replace paraffin a for ater resistant products. unctional coatings can also be applied to paper The supply chain for specialty papers to impart such properties as antimicrobial activity. ndustry . has brought together computing power, wireless networks, internet, cloud storage and other ne tools. ombined ith state of the art papermaking equipment, papermakers can now precisely control paper quality and make faster grade changes, allowing more uniform, higher quality products at a lo er cost. hile these ne technologies are being implemented in , there are still some unmet goals that could become closer to being met by . aper is finding more ays to replace plastic, for e ample in a ne ood based hermocell material developed by in inland. he plastics industry is Source: Smithers developing bio based and compostable polymers, North and South American specialty paper sales by country, 2015â&#x20AC;&#x201C;25 (â&#x20AC;&#x2DC;000 tonnes) hich may contend ith paper based solutions if the cost can be matched. he goal of an easily recyclable or compostable pac aging ith barrier properties for water, grease, oxygen, and water vapour ithout using plastic or foil is currently difficult to meet, but some of these goals are being met. he uture of pecialty apers in orth and outh America to delivers e pert ualitative and quantitative analysis of the shifting market proposition for specialty paper in these t o orld regions. This includes a comprehensive data set charting historic, current and future demand for grades of specialty papers, in each region and major national mar ets.

Notes: 1 = US values have been divided by 10; e = estimate, p = predicted, f = forecast Source: Smithers

PAPERFIRST MAG Autumn 2020

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Market TRENDS

National Brands vs. Private Labels: a market dynamics analysis for hygiene tissue in the United States

Article by Franklin Zambrano1, Antonio Suarez2, Dr. Hasan Jameel3, Dr. Richard Venditti3 & Dr. Ronalds Gonzalez MBA4 Ph.D. student focused on tissue technology and performance, North Carolina State University Ph.D. student focused on sustainability, North Carolina State University 3 Professor, North Carolina State University 4 Professor & Co-Director Tissue Pack Innovation Lab, North Carolina State University

Private labels have managed to gain market share from national brands in different consumer-packaged goods, growing at a CAGR of 2.5% since 2015 versus the 1% growth reported for national brands.

rivate labels have managed to gain market share from national brands in different consumer-packaged goods, growing at a CAGR of 2.5% since 2015 versus the 1% growth reported for national brands.[1] Particularly hygiene tissue products in the consumer segment, such as bath tissue and paper towels, represent one of the articles with the highest impact on the sustained growth of private labels (Fig. 1), with approximately 27%[2] of the current tissue market share in the U.S., 55% in Europe and 35%[3] worldwide.

The success of private labels in consumerpackaged goods is attributed to their ability to offer the best trade-off between product performance and shelf price. Consumers perceive that private labels are reasonably priced for the performance offered, making them feel that they obtain higher value for their money. However, when national brands and private labels are compared on a performance basis in the context of hygiene tissue, which product group truly ofFig. 1. Consumersâ&#x20AC;&#x2122; willingness to purchase private labels. fers the best value? Is the feeling of satisfaction experienced by consumers well-founded? The goal of this analysis is to answer these questions in an attempt to provide more insights to manufacturers, retailers, and consumers about the current product offering in the U.S. tissue and towel market.

WHICH PRODUCT GROUP OFFERS THE BEST VALUE TO CONSUMERS? Previous work conducted by the Tissue Pack Innovation Lab at NC State University (www.go.ncsu. edu/tissue) showed that the price consumers pay for bath tissue and paper towels is highly cor-

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Market TRENDS

related to how soft or absorbent the product is. Although other structural properties such as basis weight and strength are also critical for the overall performance of a tissue product, consumers will even pay a premium for improved absorbency or softness.[4][5] Tissue manufacturers strive to tailor their operations to maximize these properties based on their fiber selection, chemical additives, and manufacturing technology. Naturally, the ultimate combination of attributes will depend on the grade (e.g., Economy, Premium and Ultra) to which the product is intended to. Figure 2 shows the average shelf price and water absorbency for consumer paper towels (kitchen towels) in the U.S market in 2019. The data, which covers ca. 95% of the product offering (based on market share by volume), is segmented into national brands, private labels sold by retailers, and private labels sold by wholesale clubs. Water absorbency was selected as the primary performance indicator since our previous analysis showed that overall, this feature is the main price driver for paper towels within the consumer tissue segment.[4] In general, national brands show a combination of high shelf prices and high performance, which is in an agreement between what consumers are charged for and the product they get, i.e., there is a dollar value on each gram of water absorbed. When compared to national brands, private labels sold by retailers show inferior performance (14% lower) with a lower shelf price (23% lower). On the other hand, private labels sold by wholesale clubs behave differently to their competitors. Tissue products offered at wholesale clubs tend to be underpriced (41% less than national brands) related to the performance they offer (water absorbency only 5% below national brands). In other words, they provide an excellent trade-off between performance and shelf price – no wonder why toilet paper is Costco’s best-selling item[6] This observation aligns with the strategy of wholesale clubs, here their ma or profits come from subscriptions while they pass on the savings to subscribers. Naturally, it is important to consider the “bulk” factor playing a role in pricing, which tends to considerably decrease the shelf price (per unit of product) for wholesale products.

Fig. 2. Consumer paper towels in the U.S. market.

Fig. 3. Facts about private label in tissue products.

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Market TRENDS

MILLENNIALS AND GROWTH IN RETAIL STORES WILL FURTHER DRIVE THE INCREASE IN OFFERING OF PRIVATE LABELS The data collected by our team demonstrates the ability of private labels to offer a great trade-off between product performance and shelf price and helps partially explain why private labels have been successful in gaining market share within the consumer tissue segment as depicted in Fig. 3. The product offering of private labels within this segment aligns very well with the priorities and behaviors of generational groups such as Millennials, which have considerably increased their purchasing power with approximately $600 billion spent each year in the U.S. and projections to spend $1.4 trillion in 2020 (30% of total retail sales).[7] Millennials primarily seek value, quality, and experiences in their products,[8] which can be offered by private label paper towels. Studies have shown that 60% of Millennials prefer to purchase private labels over national brands,[9] while it has been reported that Millennials’ shopping carts contain 32% private labels compared to the 25% found in the average shopping cart.[10] Millennials are also known for causing changes in sales-volume-mix for given product categories. For instance, they are replacing napkins with paper towels, as the latter is considered more functional and multipurpose. Despite the efforts of national brands to target Millennials with novel products such as the giant tissue roll by Charmin®,[12] this generational group represents one of the major driving factors for the expansion of private labels, and thus discount grocery stores (e.g., Aldi and Lidl). The number of discount grocery stores in the U.S. has increased by almost 45% between 2013 and 2018, and it is forecasted to keep a sustained growth in the years ahead.[13,14] Aldi represents an example of the future of discount retailers in the U.S. With 2,500 stores estimated by the end of 2022, the discount supermarket chain is projected to become America’s third largest supermarket chain behind Walmart and Kroger.[15] There is no doubt that this accelerated increase in the number of private label-focused retailer stores will come along with an increase in the offering of private label tissue products. Therefore, it is highly expected for this situation to contribute to further gains in market share by private labels.

NATIONAL BRANDS AND PRIVATE LABELS HAVE DIFFERENT STRATEGIES TO CATCH CONSUMERS

«Evidence from the field shows that national brands strive to offer performance, whereas private labels focus more on offering value to consumers»

National brands are performance-driven products, where high shelf prices are required in order to compensate for their high R&D expenses and manufacturing costs. It is essential to recognize that performance is not the only variable affecting the shelf prices for national brands but attributes such as brand name, promotion, distribution channel, and sales volume play a critical role in determining the final price paid by consumers.

On the other hand, we found that private labels are value-driven products, where the quality consumers get for their money will depend on whether the tissue product is distributed by a retailer or a wholesale club. Retailers have different sales strategies depending on how large their corporation is and their business model. In the case of multinational retailers such as Walmart, which offer most of the U.S. product portfolio, their products (store private label) need to outperform national brands directly on the shelf. In a practical sense, this means that consumers have the chance to stand in front of the shelf, stare at

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Market TRENDS

the whole market offering, and compare head-tohead the different products before ma ing a final purchase decision. These circumstances force multinational retailers to have highly competitive prices and reasonable performance in order to win market share from their competitors. Otherwise, consumers will likely pick the traditional national brand. The situation turns out to be different for smallersi e retailers here significant differences in shelf price (either above or below the average price range) for a given level of performance are observed. n cases here shelf prices are significantly above the average, factors such as brand loyalty, limited product offering on the shelf, sustainable labels, consumersâ&#x20AC;&#x2122; misperception associated with the belief that by purchasing the store brand they will get the best deal, or merely convenience, might be the driver for consumers to buy these products. Alternatively, cases where shelf prices are below the average price typically correspond to discount grocery stores (e.g., Aldi), whose business models focused on selected private labels with higher perceived value, allows them to have lower retailing prices while offering a premium product performance.

Fig. 4. Comparison of private label to the leading national brand.

Wholesale clubs follow a different market strategy, which consists of having a reduced product offering, typically the leading national and their store brand. Consumers are given limited options to benchmark prices at the store, which makes the store brand seems much more attractive because of its lower price. The ideal product performance, in conjunction with the reasonable shelf price, inuences buying patterns in consumers, ho easily engage with the store brand as they feel they are being offered real value. This results in a win-win situation since wholesale clubs simultaneously ma imi e their profits.

PRIVATE LABELS LIKE TO COMPARE THEMSELVES TO NATIONAL BRANDS A common advertisement strategy used by private labels consists of comparing themselves to a leading national brand in terms of performance. In order to determine if these claims are valid, we

Fig. 5. Analysis of manufacturing technology for paper towels.

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Market TRENDS

compared both options for paper towels taking into consideration shelf price, basis weight and performance (indicated by water absorbency). Figure 4 provides a comparative overview for paper towels from private labels and their respective advertised leading national brand. We observed a similar situation for almost all products analyzed, where private labels offered articles having considerably lower prices, with differences that can reach up to 40%, and a poorer performance that contradicts with the claims on the package. However, in most cases, the difference in price is disproportional to the difference in performance with the former being higher, which leads users to trade-off consumer experience for savings. In addition, it is orth mentioning that private labels e hibited a lo er use of fibers, represented by a lo er basis eight, hich supports the strategy of sacrificing performance to offer a price competitive product. We also analyzed the different tissue drying technologies used for manufacture of private labels and national brands (Fig. 5). National brands exhibit a more extensive use of advanced technologies, hich are associated ith higher manufacturing costs, such as drying energy and better uality fiber utilization. In addition, some of the products analyzed are manufactured using patented technologies, which not only render higher quality but also the opportunity of differentiation in the Ultra segment resulting in higher shelf prices. Thus, in order to compete against national brands, private labels bet on the use of fe er fibers and less e pensive processes to offer products that, even though present a lower performance, are economically attractive to consumers.

References [1]: Nielsen Global (2019). The Rise of Premium Private Label and Its Impact on Discount Retailers. Accessed March 16, 2020. https:// www.nielsen.com/us/en/insights/article/2019/the-rise-of-premium-private-label-and-its-impact-on-discount-retailers/ [2]: Uduslivaia, S. (2019.) Tissue World Magazine. Accessed January 20, 2020. https://www.tissueworldmagazine.com/country- report/northeast-usa/consumer-tissue-in-the-us-from-structural-challenges-to-insurgent-dtc-brands-latest-in-the-industry-dynamic/. [3]: Valmet (2020). Accessed January 20, 2020. https://www.valmet.com/media/articles/tissue/private-labels-challenges/#9161f39f. [4]: de Assis, T., Reisinger, L., Dasmohapatra S., Pawlak J., Jameel H., Pal L., Kavalew D., and Gonzalez R. (2018). «Performance and sustainability vs. the shelf price of tissue paper kitchen towels.» BioResources, 13(3), 6868-6892. [5]: Wang, Y., Zambrano F., Venditti R., Dasmohapatra S., de Assis, T., Reisinger L., Pawlak, J., and Gonzalez R.. (2019). «Effect of Pulp Properties, Drying Technology, and Sustainability on Bath Tissue Performance and Shelf Price.» BioResources 14(4), 9410-9428. [6]: Cutolo, M. (2018). This Is the Best-Selling Item at Costco. Accessed March 5, 2020. https://www.rd.com/culture/costco-best-selling-item/ [7]: Donnelly, C., and Scaff R. (2013). Who Are the Millennials Shoppers? And What Do They Really Want? Accessed March 7, 2020. https:// www.accenture.com/us-en/insight-outlook-who-are-millennial-shoppers-what-do-they-really-want-retail#block-about-the-research [8]: Rosenstrauch, E. (2019). Understanding Millennials’ Purchase Habits Regarding Private Label. Accessed March 7, 2020. https://progressivegrocer.com/understanding-millennials-purchase-habits-regarding-private-label [9]: Fromm, J., Lindell, C., and Decker L. (2011). American Millennials: Deciphering the Enigma Generation. Accessed March 7, 2020. http://www. millennialmarketing.com/research/ [10]: Cadent Consulting Group. (2018). The Branding of Private Label. Accessed March 7, 2020. http://cadentcg.com/wp-content/uploads/TheBranding-of-Private-Label.pdf [11]: Schossberg, M. (2016). Millennials Are Killing the Napkin Industry. Accessed March 18, 2020. https://www.businessinsider.com/millennialshate-napkins-2016-3 [12]: Peterson, H. (2019). Charming Created a Toilet-Paper Roll for Millennials that Lasts Up to 3 Months. Accessed March 5, 2020. https://www. businessinsider.com/charmin-toilet-paper-roll-for-millennials-lasts-months-2019-6 [13]: Aldi South Group. (2015). International Corporate Responsibility Report 2015. Accessed March 2, 2020. https://cr.aldisouthgroup.com/ sites default files A roup nternational orporate esponsibility eport .pdf [14]: Aldi South Group. (2017). International Corporate Responsibility Report 2017. Accessed March 2, 2020. https://cr.aldisouthgroup.com/ sites default files do nloads A roup eport .pdf [15]: Corporate Aldi U.S. (2017). Aldi Ramps Up U.S. Expansion with Goal of 2,500 Stores by End of 2022. Accessed March 4, 2020. https:// corporate.aldi.us fileadmin fm dam ne s and a ards ress elease A ro th Announcement.pdf

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Market OUTLOOK

How will fibre-based packaging develop whilst the world still suffers from plastic paranoia? Article by Paul Jenkins, Managing Director, ThePackHub

The packaging industry permanently changed around three years ago. Blue Planet 2 has been widely acknowledged as starting a domino effect, starting a series of events that has changed how we all feel about plastic packaging.

he packaging industry permanently changed around three years ago. The Blue Planet 2 programme shown worldwide presented by the excellent David Attenborough painted an ugly picture. He described how our oceans are being filled ith literally millions of tonnes of plastic aste. he haunting scenes of sea life trying to e tricate themselves from aste plastic left an indelible mar on our memories and created a grounds ell of action from everyone involved in pac aging.

Blue Planet 2 has been widely acknowledged as starting a domino effect, starting a series of events that has changed ho e all feel about plastic pac aging. f course, the environment has al ays been of consideration for the ma ority of brand o ners and retailers. o ever, rather than being a nice to have , sustainability is no an essential top priority for anyone that ants to sell a successful product. he Blue lanet effect sa supermar et plastic bans, plastic free aisle trials, plastic ta plans, the outla ing of many single use plastic items as ell as the founding of lastic acts around the orld. his has seen many of the leading brand o ners, retailers and suppliers around the orld pledge to ma e their pac aging recyclable, reusable or compostable by . lastic pac aging is no under increased pressure and scrutiny. he rene ed focus on the environment and devastation of our oceans, is really all about plastic. any organisations have put strategies in place to reduce or remove plastic from their supply chains. ther materials such as aluminium and glass as ell as, of course, fibre based pac aging are no often the preferred alternative. his means that e are trac ing many ne initiatives in he ac ub s nnovation one database of pac aging innovations that are fibre based and a direct replacement for plastic. assachusetts based arpa A has announced the launch of a new paper-based packaging technology. uch of today s multi layered and material packaging cannot be reprocessed with existing recycling systems. The ongoing drive for mono material and paper based solutions is high on food pac aging suppliers development agendas. arpa A is advancing . on-

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Market OUTLOOK

dini s line of aper eal trays as a sustainable alternative to plastic trays. he concept is the outcome of a collaboration bet een . ondini and raphic ac aging nternational and has already had launches in Europe and Asia. Trays are produced with renewable fibre sourced from sustainably managed forests. ach tray utili es paperboard and film, depending on tray dimensions limiting base tray aste to ust an industry lo . n addition, the tray film liner is easily separated from the paperboard after use to simplify recycling. A one piece ange design ma es sealing surface strength e ual to traditional plastic trays. he trays can be stac ed at to improve logistics efficiencies. he tray can deliver up to days of shelf life. t is suitable for a ide range of applications including cheese, meat, ready made meals, fro en foods, snac s, salad and fruit. lastic foam containers for eeping food and drin cool for outdoor occasions are increasingly being replaced with other materials. eading pac aging, paper and recycling leaders mith is part of this change ith an announcement that it has produced a recyclable disposable cooler. The solution incorporates the packaging group s proprietary moisture resistant and food contact safe reencoat corrugated material. reencoat is made of rene able paper fibre and is biodegradable. he initiative is fully recyclable as ell as lea proof. mith s reencoat coolers offer fully bespo e and customi able printing. he paper based and recyclable option is suitable in those environments here food and beverage contents need to stay cold. mith s durable reencoat cooler is a good foam replacement. ultinational distribution and outsourcing company Bun l etail and ndustry is or ing on reducing the environmental impact of packaging via a switch in materials. Their EcoCoolBox solution is a fully paper based insulation pac , hich is able to provide effective protection of temperature sensitive products. Applications include fresh and fro en products as ell as other items that must remain at room temperature during transportation. The EcoCoolBox is seen as a more sustainable alternative to bo es and apparently offers an e ual or better insulation performance than . he plastic free solution consists of recycled material and is reusable. The insulation is achieved by applying a thick layer of cardboard fibres to the all of the shipping bo . hese fibres have good insulation properties and comply with

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Market OUTLOOK

food contact standards. he co oolBo is also suitable for transporting fro en products in combination ith dry ice. t is recyclable and available in various different si es and all thic nesses.

An Australian start-up has developed a paper-based alternative to replace plastic for items li e single use coffee pods and pharmaceutical blister pac s. he paper is derived made from plant aste. Varden have introduced the new solution called Paperseal and have received funding from ori on entures to accelerate e pansion. A bespoke machine has been designed that gets around the challenges of forming shapes using paper. he process forms paper fibres into shapes ithout creating holes that let product avour out and air in. he machine is able to mould the fibres to create an effective ater and o ygen barrier. he aperseal solution promises to ultimately lower production costs and decrease the carbon footprint at no sacrifice to product performance. arden is in tal s ith t o coffee brands along ith several large multinational pharmaceutical companies. A production facility is planned for urope ithin months and the . . ithin t o years. t is he ac ub s vie that s itching from plastic to fibre based pac aging solutions is li ely to continue for the foreseeable future presenting a good ongoing opportunity.

PAPERFIRST MAG Autumn 2020

Kadant is a global leader in fabric cleaning with more than 1000 traversing high-pressure cleaning system installations worldwide. The M-clean™ system uses high-pressure water in combination with an effective evacuation and air knife system. This patented method removes stickies and chemical build up from the fabric’s surface to optimize cleaning, improve operation efficiency, and increase production.

Fiber Processing | Doctoring, Cleaning, and Filtration | Drying kadant.com

THE C-LEVEL INTERVIEW

10 questions to Michele Bianchi, CEO of RDM Group - Reno De Medici Amidst the turbulent moments the global economy is going through, it takes some wisdom for a CEO to run an international company and keep a clear vision of the long-term strategy. At the head of the Milan based cartonboard producer RDM Group since 2016, Michele Bianchi certainly holds that wisdom. He explains here how the group has been expanding recently, how he is coping with the pandemic, and what his prospects are.

1. How many mills do you operate globally and what is your production/sales volume?

MICHELE BIANCHI: We can boast a strategic presence at international level thanks to our 7 cartonboard mills - 3 of which in Italy, 2 in France, 1 in Germany and 1 in Spain –, 2 specialized sheeting centres and sales offices that ensure idespread coverage across Europe, as well as sales all over the globe. This strategic network of production plants has led us to become the second largest European producer of coated recycled cartonboard, the largest in Italy, France and the Iberian Peninsula with 1.26 thousand tons produced annually. About Spain, on September 30th, RDM Group announced that its subsidiary RDM Barcelona Cartonboard S.A.U. has signed four preliminary agreements for the acquisition of 100% of the share capital of four companies incorporated in Spain. The deal covers the acquisition of one of the main European players of the coated chipboard industry, Papelera del Principado S.A. (“Paprinsa”), and three smaller companies operating in contiguous businesses based in the same site: Fergerdell S.L., Cogeneraciò del Pla S.A. and Ondupacart S.A.

Founded in 1977, Paprinsa operates in the recycled White Lined Chipboard (WLC) business. The company has both its headquarters and mill in Mollerussa, just 130 km from Barcelona and less than one hour from the plant of RDM Barcelona Cartonboard. It manufactures 120,000 tons of recycled chipboard, with a potential capacity of 140,000 tons. Over the past six years, Paprinsa has made significant investments for more than million in its plant. roduction includes a ide range of grades and grammages (from 180 to 550g). Today, Paprinsa is the No. 2 chipboard producer in Spain, and the eighth WLC producer in Europe. The paper mill has a trim width of 4.8 meters, which will make it the widest plant in RDM Group, as it is one of the largest paper mills of this sector in Europe. By further exploiting this size, RDM Group can count on a potential increase in the factory’s production capacity from the current 140,000 tons a year to over 200,000 tons a year, in line with the other top plants today part of the Group. Ondupacart S.A. is a small corrugator manufacturer. Fergerdell S.L. is the real estate company that owns the 30,000 sqm area on which the two manufacturing companies stand. Cogeneraciò del Pla S.A. is the former cogeneration plant recently sold to Paprinsa. The company currently provides both plants with maintenance services.

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THE C-LEVEL INTERVIEW

2. How has it been evolving for the past 5 years?

MB: Since I joined RDM Group, we have undertaken a major transformation process, which included the definition of a clear vision that guides us in all our activities. Our ambition is to become the Partner of choice for all our main stakeholders, with three strategic goals in mind: provide product and service excellence, optimise costs, and maximise stakeholder satisfaction. Since 2016, we have made this possible thanks to a growth process that has allowed us, on the one hand, to benefit from internal synergies and greater efficiencies in production and, on the other hand, to continue to grow through several acquisitions, as also demonstrated by the recent preliminary agreement for the acquisition of Papelera del Principado S.A. (“Paprinsa”).

«Our ambition is to become the Partner of choice for all our main stakeholders».

3. What is your range of products and what are your main markets geographically? For what kind of use?

MB: The WLC (White Lined Chipboard) segment represents our core business and accounts for 82% of our consolidated turnover. Then, through La Rochette Mill, we also produce folding virgin fibre cartonboard BB olding Bo Board and, through Ovaro Mill, some specialty products (OG GK - UD – UT), well suited to luxury packaging and the publishing market. Our cartonboard is mainly used as primary and secondary packaging for consumer goods: it can indeed become packaging for food or medicine, for household appliances, accessories, cosmetics and personal care products. It can also be used in the publishing sector in order to create sales displays or for toys in high performance printed form. In South Europe we are market leaders: we generate about 28% and 58% of our turnover, respectively, in Italy and in the other European Countries, while the remaining 13% is represented by Extra-EU countries, among which South America, Turkey, Saudi Arabia…

«In South Europe we are market leaders».

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THE C-LEVEL INTERVIEW

4. COVID-19 has been a real game changer. Can you already perceive some long-term effects on your business and organisation?

MB: I like to think that uncertain times are precisely those in which we have to prove our abilities and strengths... and in this regard the Covid-19 pandemic has been a real testing ground for the Group. Overall, we’ve promptly reacted in order to minimize the risks related to the pandemic, by introducing precautionary measures for all our sites, and to guarantee the fulfilment of the orders received from customers. In fact, our business is an integrated part of the so-called essential materials supply chain, and this is the reason why we have never halted our production plants; on the contrary, we have guaranteed the production continuity in order to meet the increasing market demands for food, medicines and hygiene products, that lockdown generated.

5. For which segments do you see the best prospects at the moment?

«Fibre-based packaging has played a vital role in fostering the hygienic and efficient movement of products across Europe».

MB: uring the pandemic, the value of fibre based materials has been recognized by many governments, retailers and brand-owners around the world as a key element to keep citizens supplied with essential products. In particular, fi re based packaging has played a vital role in fostering the h gienic and efficient movement of products across Europe: today, consumers perceive packaged products as safer, more hygienic and durable. We are therefore optimistic that the food sector, which now accounts for almost 60% of our sales, will remain the leading one, followed by pharmaceuticals and cleanings. Moreover, we expect good prospects in the electronics sector as well.

6. E-commerce has been a driver for the containerboard producers over the past decade. How heavy is this sector for you and is the demand still growing despite the economic crisis? MB: E-commerce has certainly been a key busi-

PAPERFIRST MAG Autumn 2020

ness driver in recent years, and now the pandemic has fostered this trend. Many companies around the world are implementing smart-working on a permanent basis and this will impact consumption and purchasing patterns: for example, work from home creates demand for more in-home cooking as well as e-commerce. Indeed, during the lockdown, many have experienced the benefits of buying goods and products online and I’m sure this trend is only just beginning. his can benefit us.

7. What are your current preoccupations and what could make your life easier at the moment?

MB: The main concerns are certainly related to the pandemic. If Covid-19 cases increase in Europe, the runnability of our facilities becomes more challenging. Our production processes run 24 hours a day, 7 days a week: as well as running production with the greatest attention to health and hygiene dispositions, we have to make sure we have enough staff to cover all shifts. Moreover, if during the crisis the leading sectors were food and pharma, we may have to deal with the downsizing of fashion and luxury markets that we serve overall with one of our mill.

8. Sustainability and competitive prices are efinite a ue ri ers for consumers these days, and thus your clients by extension. How do you respond to these requirements?

MB: According to many studies, consumers prefer and appreciate paper and cartonboard packaging: this happens because it is practical (lightweight and easy to open and close), it is perceived as safer and durable, but also because it is based on natural and renewable raw materials. Therefore, it is clear that consumers are willing to pay more to receive a 100% sustainable product. Anyway, there aren’t many industries around that can aspire to becoming genuinely sustainable. The paper and board industry, however, is one of them: our products are renewable, recyclable and actually recycled. Besides, in a context where raw materials are considered as precious

THE C-LEVEL INTERVIEW

resources, we constantly invest in engineering and technology upgrades to make our industrial processes more sustainable and efficient.

«We constantly invest in engineering and technology upgrades».

9. Are you maintaining your investment programme? If yes, can you specify?

MB: Yes, of course. In 2020 the expected capital expenditure is 23-25 million Euros, of which maintenance and health & Safety investments are 11-13 million Euros. Other important investments are energy efficiency, digitali ation, environment and quality. We remain committed to invest and keep updating our operations, actually we want to accelerate some of the key investments as we believe it is in time of crises that we need to remain strategic to target an even higher competitiveness after the “storm”.

. Do ou thin R D in fi re ase pro ucts is sufficient to ma e our industry a true alternative to fossil economy?

MB: R&D is an essential approach to meet the increasingly challenging market demands for sustainable and environmental-friendly materials and packaging. In recognition of this, we have recently created a department dedicated explicitly to Innovation and Sustainability. However, this is not the only way: RDM Group is an integrated part of a wider virtuous industry and we firmly believe that only by or ing together ith our suppliers and customers, we can lead to a real change. This is the reason why for example RDM Group joined 4Evergreen Alliance, which bring together the entire fibre based pac aging value chain, in order to raise awareness about the advantages of using cartonboard for packaging, and also supports the development of new packaging solutions through innovation and product design, as well as the development of appropriate recycling infrastructure and collection systems. But it is not the only initiative, we are actually involved in many other partnerships and strategic developments that will support us in positioning our product and company strongly in the future. PAPERFIRST MAG Autumn 2020

Global Challenges

Energy transition and decarbonization: risks and opportunities for the P&P sector If the thawing permafrost is a reserve of viruses and bacteria, humanity might well have to face other pandemics in the future because of global warming. Decarbonizing our societies through energy transition is more than ever a priority. he orest-based industry is definitely doing its part.

CANADA

FPAC (Forest Products Association of Canada) Mr Derek Nighbor President & CEO

USA

AF&PA (American Forest and Paper Association) Mrs Heidi Brock President & CEO

BRAZIL

IBA (Brazilian Tree Industry Association) Mr Paulo Hartung Executive President

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Global Challenges

EUROPE

CEPI (Confederation of European Paper Industries) Mr Jori Ringman Director General

INDIA

IPMA (Indian Paper Manufacturers Association) Mr Rohit Pandit Secretary General

SOUTH AFRICA

PAMSA (Paper Manufacturers Association of South Africa) Mrs Jane Molony Executive Director PAPERFIRST MAG SPRING 2020

Global Challenges

. Can ou share with us some figures for countr or region

AF&PA About a decade ago, members of the American Forest & Paper Association introduced one of the most comprehensive sets of voluntary sustainability goals for any U.S. industry. These goals continue to demonstrate a commitment to improving the environment. The initiative, known as Better Practices, Better Planet 2020, in-

cludes efforts to reduce greenhouse gas (GHG) emissions. Our original GHG goal was to reduce the industry’s emissions by at least 15 percent from the 2005 baseline. When members surpassed that goal, we raised the bar, increasing it to 20 percent, which we achieved with a more than 23 percent reduction based on member data from 2018.

CEPI The European pulp and paper industry’s vision is to decarbonise by 2050 while creating added value to the EU economy. So far, we have walked the talk: our carbon emissions have fallen by 27% since 2005 while our added value has grown. We are also the largest industrial genera-

tor and user of renewable energy in Europe: biomass from sustainable forest resources currently provides 60% of our overall energy consumption. Another 33.2% is provided by gas, and the remaining 6.8% by other fuels. Furthermore our energy consumption is steadily decreasing, as exemplified by a decrease of . from to .

FPAC Canada is a resource rich country and has the third largest oil reserves in the world. As Canada’s transitions to a lower carbon economy and a ‘net zero’ carbon future by 2050 the future of our energy policy is one of the hottest discussion points in Canadian public policy today.

these two sectors provided $8 billion in revenue to governments to fund public education, healthcare, and other key government deliverables. Canada’s energy consumption breakdown is as follows: 39% crude oil, 35% natural gas, 22% hydro-electric and nuclear, and the remainder being from a growing renewables sector and a coal sector in steep decline.

anada is the orld s fifth largest producer of natural gas and the sixth-largest producer of oil. These two sectors alone provide over $100 billion to Canada’s GDP (2018) and support over 500,000 family-supporting jobs. In 2017 alone,

IBA According to the Ministry of Mines and Energy of Brazil, in 2019: The Internal Energy Supply accounted for 46.1% of renewable sources in the energy matrix, against a world average of 14.2%. Renewable sources are considered: hydraulics, wood resi-

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an o er the past eca e in our

Canada produces 3% of the world’s renewable energy and has an opportunity to do more with wind, solar, and forest and agricultural bioproducts.

dues, charcoal, sugar cane derivatives, biodiesel, wind, solar, rice husks, biogas, charcoal gas, etc. The country’s electrical matrix has 83% originated from renewable sources. Participation is led by hydroelectric (63.8%), followed by wind (9.3%), biomass and biogas (8.9%) and centralized solar (1.4%). In total, the country has over

Global Challenges

170 thousand MW of inspected power in 2019. In this scenario, the sector of cultivated trees stands out, since it is one of the few Brazilian sectors that generates almost all the electricity consumed in its production processes. In 2019, there was a 4.6% increase in electricity generation. 78.8 million gigajoules (GJ) were produced, representing 69% of what the sector consumed. With modern factories, in addition to being self-

sufficient in energy, the industry generated a surplus of 20.8 million GJ for commercialization to the public network. Companies in the sector use almost exclusively by-products of their processes for the generation of thermal and electrical energy. Black liquor from cellulose production and forest biomass represent 69% and 20%, respectively, of all energy produced.

IPMA Pulp & paper industry in India is very fragmented and most paper mills are quite small in size compared to global standards. Different types of raw material are also used like wood, agro residue bagasse, heat stra and recycled fibre

recovered paper. And as such for the industry as a whole energy data is not readily available. The specific energy consumption varies significantly depending on the raw material used, amongst other factors.

PAMSA We have a heavy reliance on fossil fuels for electricity generation and li uid fuels beneficiation. n 2017, 5690Tj of primary energy was supplied, of which 72.6% was from coal and 15.4% from oil. The remaining energy supply was met by natural gas (3.1%), nuclear (2.7%), biofuels and waste (5.8%), wind and solar (0.7%) and hydro (0.1%). Our electricity consumption during 2017 was reportedly 201 929 GWh. More than 90% of elec-

tricity needs are met by national utility Eskom ith coal fired po er as the predominant technology and electricity consumption contributing some 87% to the countryâ&#x20AC;&#x2122;s GHG emissions. According to our latest GHG Inventory, total emissions increased by 22.8% from 2000 to 2017 with energyâ&#x20AC;&#x2122;s contribution rising from 77% to 79.1%. 559 260 Gg CO2e (excluding removals from forestry and land activity) was calculated for 2017.

hat are the am itions an o ecti es of our go ernments an institutions when it comes to CO2 emissions re uction

AF&PA The U.S. government does not have CO2 emissions reduction requirements. However, our members have taken on an emissions reduction goal as part of AF&PAâ&#x20AC;&#x2122;s sustainability initiative. ur final report on Better Practices, Better Planet 2020 is due out next year, along with the release of our 2030 sustainability goals. Our new goals will build on the progress we have made in the last decade, ensuring the industry remains a

leader in the circular economy. Paper and wood products manufacturers know that continuous innovation and applying new ways of thinking are the path to a more sustainable future. As we look forward, we demonstrate how our industry continues to contribute to the United Nations Sustainable Development Goals and the broader circular economy, interacting with other industries, entities and individuals at all levels of society.

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Global Challenges

CEPI The decarbonisation agenda is the cornerstone of the EU Green Deal, which is the political programme of the von der Leyen Commission. An important part of the Green Deal plan is to reach a climate neutral economy in 2050 by reducing greenhouse gas emissions to net zero by 2050 and making it a legally binding commitment. Consequently, earlier this year, the European Commission proposed a climate neutrality law, currently under negotiations.

FPAC Canada has committed to the Paris Agreement and is embracing the challenge to move to a net zero carbon economy by 2050. It is also developing its Clean Fuel Standard in a move to achieve 30 million tonnes of annual reductions in greenhouse gas emissions by 2030. Canada’s move to a lower carbon economy is

IBA The Brazilian National Congress concluded, in 2016, the process of ratifying the Paris Agreement, creating official commitments, the so called NDCs (Nationally Determined Contribution):

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From our industry perspective, the new targets present opportunities (substituting carbon intensive products) and challenges (reducing our residual emissions) at the same time. These are unevenly distributed across national and regional realities.

further reinforced by its commitment to ban harmful single-use plastics as early as 2021. As with other countries around the world in the face of the biggest health and economic crisis of our lifetimes, the Canadian government continues to work to advance its green agenda, while considering the impacts of COVID-19 and what needs to be done to spur a much-needed economic recovery.

established that it will be necessary to restore and reforest 12 million hectares of forests by 2030, for multiple uses.

The cultivated tree sector has a fundamental role in this regard. First of all because it is also

The sector has 9 million hectares of trees grown for industrial purposes. At the same time, it has areas destined for the conservation of natural forest of 5.9 million hectares, between Legal Reserve (RL), APP Permanent Preservation Area (APP), High Conservation Value Area (AAVC) and Private Heritage Reserve Natural (RPPN). Together, they have 4.2 billion CO2 eq. stocked.

IPMA India has set goals to reduce the emission intensity of the economy by 33-35% by 2030 from the 2005 level, to increase the share of non-fossil fuels to 40% of the total electricity generation capacity, and to create an additio-

nal carbon sink of 2.5-3 billion tonnes of CO2 equivalent through additional forest and tree cover. The Government of India’s National Action Plan for Climate Change (NAPCC) has outlined priorities for mitigation and adaptation to

■ Reducing greenhouse gas emissions by 37% by 2025 (compared to 2005); ■ By 2030 this decrease should be 43%, also in relation to 2005.

Moreover, the European Commission also proposed to set a new emission reduction target of 55% by 2030, as part of the climate neutrality law.

Global Challenges

combat climate change through various National Missions. he ation ission for nhanced nergy fficiency (NMEEE), a part of NAPCC, aims to

strengthen the mar et for energy efficiency by creating a conducive regulatory and policy regime by fostering innovative policies and effective market instruments.

PAMSA South Africa is vulnerable to climate change impacts hich is a significant threat to socio economic development. As party to the UNFCCC and the Paris Agreement, a number of policies and initiatives have been developed to guide a domestic Just Transition and decarbonization.

the electricity supply diversification, promoting renewable energy and other low-carbon technologies.

ur first o mission evelopment trategy has recently been published which plots a lowcarbon growth trajectory to 2050, towards our ultimate ambition of net zero emissions. However, a carefully implemented transition is required to mitigate risk to economic growth and sustainable development. Government’s Integrated Resource Plan guides

The promulgation of Carbon Tax gives effect to the “producer pays principle” and Carbon Budgets set a maximum volume of emissions from certain activities within a set timeframe. However, a range of strategic interventions and structural changes will be required to strengthen the country’s response to climate change through a Just Transition.

New renewable energy power producer agreements were signed in 2018 and another bid process is expected before end 2020.

. Do ou thin that pro ucers can e se f moti ate to re uce their emissions or shou it e enforce aw

AF&PA The paper and wood products industry remains self-motivated to advance on GHG reduction goals. ncreasing energy efficiency is also a fundamental energy management objective, and renewable energy sources are at the heart of this

work. AF&PA members meet about two-thirds of their overall energy demand through carbonneutral biomass. We see this as an example of our results-driven work helping to move the needle forward on sustainability.

CEPI Climate change is a global challenge and requires actions at all levels of society. Our industry is under carbon reduction regulation since 2005 and is overachieving. This is the result of longterm planning. That’s why it is important that the regulatory framework is stable and predictable.

Otherwise the regulatory risk would discourage investments. Moreover, the ability of our sector to decarbonise ultimately depends on the timely and cost efficient decarbonisation of the uropean energy system as a whole. As highlighted in our CEOs 2050 initiative www.cepi.org/ceo-initiative-our-contribution-to-eu-2050-climate-neu-

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Global Challenges

trality/, we would urgently need cost-competitive climate-neutral fuels for industry (be it biogas, hydrogen, synthetic gas or others) using existing infrastructures, large-scale roll-out of cost-competitive climate neutral electricity generation and

an effective sector integration, adequately recognising energy system benefits from distributed industrial generation – such as Combined Heat and Power (CHP) facilities where our sector is an industrial leader in Europe.

FPAC Famous Canadian hockey player Wayne Gretzky once said, “I skate to where the puck is going.” (What’s a Canadian submission without a quick hockey reference!) The same can be said about how producers in Canada are addressing our energy transition. Whether it’s been environmental improvements to oil sands operations or investment in the forest bioeconomy, Canadian industry has been preparing for the demand shift we are now seeing from consumers. Since the 1990s, the Canadian pulp and paper

sector has reduced its GHG emissions by nearly 70%. FPAC believes a mix of smart regulation and a commitment to innovation will continue to support our transition to a lower carbon economy. One thing we need from our government to get there is a clear and inclusive strategy, versus shifting policy frameworks. Canada is the second largest country by land mass in the world, but 38th by population, and we have a colder climate than most countries – these natural factors bring about some unique challenges as we consider energy policy, access, and affordability.

IBA It is important to point out that the pandemic has brought a new scenario to the world. It accelerated processes that were already underway, such as environmental awareness, especially among young people, who currently require products of correct origin; a new model of doing business, which leaves the predatory culture in the past and promotes a low carbon economy, in fact; and a new relationship between human beings and nature.

PAPERFIRST MAG autumn 2020

In the face of movements in the world that aim to stimulate a post-crisis recovery in a more sustainable way, such as the European Green Deal, decarbonization goals, traceability requi-

rements, among other attitudes, it is possible to say that companies that do not adhere to a model that respect nature, the human being and do not have a governance that re ects diversity, with these rooted values, you will not have longevity in business. Fortunately, companies in the cultivated tree sector have been working for decades based on pillars such as respect for nature, generation of shared value with neighboring communities and diversity in their leadership. All of this means that these values are not temporary, but cultural for each company. The forest-based sector is moving steadily towards a reality based on ESG, in fact.

IPMA Ideally, it should be a mix of both. Some enforcement by law is essential, while at the same time, producers need to be incentivised to re-

duce their emissions. PAT (Perform Achieve and Trade) Scheme, under NMEEE, is a market-based mechanism to enhance cost effectiveness of

Global Challenges

improvements in energy efficiency in energy intensive large industries through certification of energy savings that can be traded. Large paper mills have been given mandated targets for reduction in specific energy consumption in a given PAT cycle of three years. Similarly, under Renewable Purchase Obligation

(RPO) Scheme, under NAPCC, every consumer of electricity has to source a given percentage of electricity from renewable energy sources (solar and non-solar). PAT seeks to reduce energy consumption and enhance energy efficiency in select industries. REC is an initiative to maximise generation of green power from renewable energy sources.

PAMSA Our private sector implemented numerous energy efficiency and emissions mitigation measures before regulatory frameworks came into effect. With the increasing pace towards decarbonization, a range of policies and legislation are under development. However, it’s essential that the suite of mitigation instruments is aligned to ensure that all stakeholders have a com-

mon vision and approach to the interventions. The Climate Change Bill was welcomed by industry and is currently being discussed by relevant stakeholders. This will also strengthen the public-private partnership and facilitate a better understanding of opportunities and constraints to emission reduction. Policy certainty is key to economic investment and development.

hat in of initiati es are preferre ow car on so utions

our mem ers when imp ementing

AF&PA Setting and striving for new goals will help keep us motivated to achieve low-carbon solutions in the future. We have long been responsible stewards of our planet, and demand for pulp, paper and wood products ensures that there is value in the forest and keeps forests as forests. I also believe we can do more. Every new day is

a chance to do more with less. Our members do this by reusing resources, like water, multiple times over, or utilizing manufacturing residuals and byproducts to produce biomass energy. Setting an ambitious but achievable goal and working toward it each day is helping us improve tomorrow’s environment today.

CEPI First and foremost, pulp and paper industry companies look at reducing their fossil fuel emissions by investing in energ efficienc . Secondly, they look into primary energy savings by deploying innovative renewable energy generation onsite. Thirdly, they are working in partnership with stakeholders in the “energy value-chain” and in cross-sectorial platforms, to look for “outside of the box” solutions, tapping into expertise

outside of the industry’s core competences. Finally, they look for breakthrough technologies in further reducing other emissions to water and air towards the Zero Emission objective and tap into industrial symbiosis to extract valuable resources in those emissions; advance further in circularity of water management starting from being pioneers in water stewardship and already having high rates of water recycling.

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Global Challenges

FPAC anada s forest sector sees significant opportunity in the growing forest bioeconomy. In 2018, Canada’s federal and provincial forest ministers came together to launch the Forest Bioeconomy Framework – a blueprint for the future of Canada’s forest resources and bioproducts. In addition to this framework, Canada’s forest sector views the development of a Clean Fuel Standard to be an opportunity to lower GHG

IBA It is a constant objective of this sector to do more with less. The cultivation of trees for industrial purposes is usually carried out in areas previously degraded by human action and the sector has been working on increasing its productivity on the land it already owns, which is already one of the largest in the world: an average of 35.3 m3 ha for eucalyptus and 31.3 m3 ha for inus. n fact, 100% of Brazilian pulp and paper come from trees grown for industrial purposes. The companies are in states such as Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Espírito Santo, Minas Gerais, Bahia and Mato Grosso do Sul. It is worth mentioning that the area of cultivated forests represents just over 1% of the national territory, with 9 million hectares. Allied to this, 5.9 million hectares are destined for conservation areas of natural forest. All of this means an area larger than Belgium, Denmark or Switzerland, for example. Together, these conservation and production areas stock about 4.48 billion CO2 eq., one of the main greenhouse gases. This sum is greater than the entire emission of the Brazilian industry in one year. lobally recogni ed certifications attest to the correct handling of these areas for more than two decades. The recognitions come from the Forest Stewardship Council (FSC), Program for the ndorsement of orest ertification

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emissions by increasing the use of forest biomass in our fuel supply. In Canada, transportation systems account for 34% of our energy usage and are an important focal point for reductions. We also see the opportunity to build more with wood in the built environment to move away from more carbon-intensive materials like cement and concrete and are seeing moves across federal, provincial, and municipal governments to advance this agenda.

and the International Organization for Standardization (ISO). Altogether, 7.4 million hectares are currently certified. The manufacturing process also invests in caring for the environment. In terms of energy, about of the factories are self sufficient, based on clean energy, coming from forest biomass and residues from the manufacturing process. The industry is also working to reduce water use. Since 1970, the use of water resources has fallen by 70% the use of the resource and the sector continues to search for more solutions that further reduce water use. The result of this all translates into a recyclable, reusable and, in most cases, biodegradable material. Looking ahead, technology and science are making the Brazilian forest-based industry take years ahead of its time. There are several new uses from the cultivated tree. ome e amples are microfibrillated cellulose, a cellulose broken down into smaller particles, will give rise to textile threads using up to 90% less water and less chemicals than polyester. Nanocrystalline cellulose will replace materials of fossil origin in cell phone screens, for example. Lignin, until then called a by-product, will gain added value and may compose conventional thermoplastics, used in internal parts of automobiles, which will provide greater recyclability.

Global Challenges

IPMA Paper industry is an energy intensive sector and paper mills in India have been working towards better energy efficiency, employing a range of innovations and technologies. The largest 30-35 paper mills are covered under the PAT Scheme. All paper mills are covered under the RPO Scheme. The entire residual biomass after extraction of pulp fibre from ood, is used by paper mills to generate steam and power. Paper mills are genera-

PAMSA Our Forestry Industry plays an important role in the Just Transition pathway with various value chain opportunities to contribute to decarbonization. Our sustainably managed plantations provide timber for harvested wood products, which increases sequestrated and stored carbon. We want to expand the application of harvested wood products through product substitution and further bioeconomy research. ur fibre voluntary paper recovery programme has been

ting renewable energy from biomass to the tune of 20-60% of their total electricity consumption. Indiaâ&#x20AC;&#x2122;s paper industry has strong agroforestry roots and through its efforts, about 125,000 hectares are being brought under agro farm forestry on an annual basis, with around 1.2 million hectares on a cumulative basis across the country. About 58% of the total production of paper in India is manufactured from recovered paper.

successfully operating for 17 years, and in 2019, a 68.5% recovery rate was achieved, exceeding the international average. With the introduction of extended producer responsibility regulations, additional interventions are planned to expand waste minimization mechanisms and the range of recovered and recycled products. Although energy production from biomass is only about 6% nationally, pulp and paper manufacturers already produce about 50% of their energy requirements from biomass and intend to expand this technology.

ou e in fa or of ta es at the entrance of our countr region on pro ucts manufacture in countries that wou not or itt e respect the ecar oni ation o ecti es that ou support

AF&PA AF&PA advocates for open international markets. In the event the United States introduces a carbon tax, as an energy-intensive, trade-ex-

posed industry, our industry would consider the implications of carbon border adjustable measures to ensure that the industry is able to maintain its international competitiveness.

CEPI The European pulp and paper industry has always promoted free trade and fair competition as well as sustainability as a key principle. And the pulp and paper industry is and has always been among the sectors

identified as at most ris of carbon lea age. So in a context in which the EU has already the most stringent carbon reduction target in the world and is planning to further tightening it for 2030 and beyond, it is indeed fair to expect that -

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Global Challenges

if foreign competitors don’t adopt the same level of decarbonisation ambition - some measures have to be adopted to accompany the European industry along its decarbonisation journey and the substantial investments it entails. To avoid undue competition from countries with less stringent carbon reduction policies, we would need a basket of solutions that, inter alia, would include: strengthening of current provisions against the risk of carbon leakage, decarbonisation programmes supporting low-carbon investments in industry, strengthening of European industrial value-chains, policies promoting low-carbon and sustainable products

FPAC Canada is a free trading nation and the answer to this question would really be incumbent upon current trade agreements with the trading partners in question. That said, fairness and equity is very important. Our position would simply be if Canadian requirements and standards hold Canadian companies

IBA I believe that the search for a green economy and conservation of the environment is something of interest to everyone. Therefore, logically, everyone should start from correct operations and businesses from the socio-environmental point of view. However, it is a fact that there are those, a minority, who go in the opposite direction and loo for an immediate profit, not measuring its long-term consequences.

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The EU Commission has been very vague about details but is expected to put forward a proposal in 2021 for a carbon border adjustment mechanism. But it is not a silver bullet and currently we do not see it fit for our sector. It should not be the only measure as it won’t probably address all the challenges an industry sector like the pulp and paper industry might have, with the complexity of its supply chain, the need to secure the competitiveness of its exports, the compliance with WTO competition rules, etc. Complementary measures in a number of policy areas have to be identified to level the playing field and secure that EU manufacturing products and imported products are treated the same way.

to certain commitments, we would expect trading partners to be held to the same account to ensure a level playing field. The issue and risk of ‘carbon leakage’ is very real and at the forefront of the minds of many in Canadian industry on this topic of GHG reductions.

The movement I see gaining speed, fueled by the pandemic scenario, is a more demanding consumer, especially among young people. If some few decades ago the utopia was social, today it is environmental. And the consumer dictates the rules. As a consequence, awareness and green investment in the business sector grows. A very clear example is traceability, which al-

Global Challenges

lows us to know the origin of the product and whether the chain it has passed meets environmental quality standards. The companies themselves are making this demand, as consumers ask for it.

nally advocating that the sale of carbon credits be adopted and regulated nationally.

On the issue of carbon, I believe that we must address a solution based on Article 6 of the Paris Agreement, which provides for the creation of regulations at the international level. Thus, countries and companies would be able to negotiate emissions between themselves. It is also essential that there is a fair transition from the current system (Clean Development Mechanism) to the new one in Article 6. We cannot lose the efforts already made. In Brazil, we are inter-

Therefore, I believe that there are mechanisms that encourage the market to adopt a sustainable model. This way, any type of protectionism is also avoided. In this globalized world in which we live, I think that the best thing for everyoneâ&#x20AC;&#x2122;s future is to encourage dialogue, collaboration, exchange of experiences, continuous and progressive use of technology and healthy competitiveness. In this way, we will have more social actors with a sustainable footprint, not because of the fear of being charged, but because of the stimulus to gain market and contribute to the planet.

IPMA While, in principle, we are in favour of taxes imposed on imports coming in from countries

which do not have decarbonization objectives, but this cannot be done overnight and has to be thought through extensively.

PAMSA Discussions are ongoing about the possibility of carbon border tax by the EU and we recognize the potential impact that this will have on our economy and international trading. Through the development and implementation of a clear pathway towards a lower carbon economy, South Africa is committed to reaching net ero emissions. e ill re uire green financing and international support to phase in the interventions. The international trading environment is com-

plex and dynamic and any additional conditions imposed on trading partners may result in the migration of carbon-intensive supply chains to countries that do not have decarbonization policies. This will disadvantage manufacturers that are required to comply with stricter environmental legislation and may result in imported products that are cheaper to manufacture. A carbon tax border tax to level the playing field would be one instrument to mitigate job losses in South Africa as it transitions to a green economy.

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Mill Stories

Dryden Mill conducts safe maintenance outage during pandemic Article by Domtar Newsroom and S. Richard

Maintenance operations are a challenge for mill managers and their teams during the pandemic. While some have delayed their outage, others have decided to maintain their original schedule to preserve the industrial assets as well as the local economy. The experience of Domtar’s Dryden pulp mill in Northwestern Ontario, Canada, is quite inspiring in that respect.

scheduled maintenance outage is a critical part of any mill’s operation. The downtime gives employees an opportunity to complete necessary maintenance that isn’t possible during normal operations, and it ensures the mill continues to run safely and efficiently. t s also important to the community. Vendors and contractors who travel to the site to assist with the outage support the local economy by staying in hotels, eating in restaurants and shopping at local businesses. Earlier this year, everything was proceeding according to plan for the Dryden Mill’s spring maintenance outage. The small community of about 8,000 people located in Northwestern Ontario, anada, as also preparing for an in u of about vendors and contractors. hen the pandemic started, and ryden ill anager Marie Cyr and her team had some tough decisions to make. hould they proceed ith the maintenance outage f so, could they ensure the health and safety of employees and contractors? Could they maintain proper social distancing? Could the facility manage outside visitors in accordance with public health regulations ould the in u of outside or ers affect the health of people living in Dryden?

COLLABORATION ENABLES SAFE MAINTENANCE OUTAGE With support from Domtar’s corporate leadership, the team decided to proceed with the maintenance outage, but it designed a reduced work scope that focused only on tasks deemed essential for the mill s safe and efficient operation. ore or ould be performed by mill employees, reducing

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Mill Stories

the need for outside service providers by 80 percent. n addition, the ma ority of the outside providers who were required would come from within Northwestern Ontario, eliminating the need for travel from outside the region. The change in scope also meant the outage would ta e days instead of days. The team knew the plan couldn’t proceed without support and guidance from local health and safety authorities and Dryden community leaders. “As we developed our plans, we worked closely with community partners to build understanding and get their guidance,” says Marilyn Findlay, Dryden Mill’s health and safety manager. “We wanted to cooperate and assure them that we could safely execute our plan.” Dryden Mill leaders worked with members of the Northwestern Health Unit, the Dryden Regional Health Centre, the City of Dryden and the Ontario Ministry of Labour, Training and Skills Development to create a detailed health and safety plan that could follo related guidelines and allow the maintenance outage to occur. Naturally, health and safety are always priorities for the mill, but they’re even more critical during a pandemic — especially in Dryden, a small, remote community with limited medical facilities, located roughly ilometers miles from the nearest large city. Dryden Mayor Greg Wilson commended the mill’s efforts to anticipate and quickly respond to local uestions about the in u of contractors by providing facts and figures, as ell as open access to many third-party and internal processes. “Thank you for putting so much time and effort into communicating your shutdown plans with us over the past few months,” he said. “Your commitment to the safety and wellbeing of our town over the years has only served to enhance an already strong relationship.” n addition to the rigorous measures already in place to address ris s, the mill adopted enhanced protocols for facility use, cleanliness, traffic o and personal protective e uipment . he largest consideration during the maintenance outage was coordinating and caring for visiting contractors to ensure everyone’s protection during the maintenance outage.

A key factor in doing this successfully was the strong partnership established with a local hotel where the contractors stayed. Contractors were screened prior to arrival. The hotel staff graciously provided all meals as well as accommodations that were adequately spaced and thoroughly cleaned. Contractors had daily health monitoring and temperature checks before leaving the hotel. To ensure they met proper isolation and social distancing requirements throughout their stay, contractors remained on hotel property when not at the mill, and they were accounted for with each arrival and departure. The maintenance outage happened between ay and une , and everything ent according to plan. he process as e tremely efficient and successful, but most of all, it was safe. Lindsay Gannon is a superintendent for Venshore Mechanical Ltd., one of the contractors helping with the maintenance outage. She thanked the mill team for their planning efforts. “Everything, from our accommodations, site access, issuing permits and maintaining social distancing in common areas, was well thought out. It really made our job much easier.”

DRYDEN MILL SETS INDUSTRY EXAMPLE The Dryden maintenance outage’s success in the midst of the pandemic has garnered national attention in Canada at a time when many other pulp and paper operations are considering cancelling, or have already cancelled, similar maintenance outages. The mill shared its story through Canadian industry trade associations, and it’s now considered a best management practice for other mills to consider. “2020 has brought along many new challenges and uncertainties to overcome,” says Domtar Pulp Vice President Steve Makris. “The challenge presented to the Dryden team to address safe and critical operations during a pandemic was not an easy one. But I’m proud of the process they followed to achieve a positive outcome. It truly embodies Domtar’s core principles of being agile, caring and innovative.”

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Tech Talk

5 questions to Jari Vähäpesola, president of the Paper Business Line at Valmet Jari Vähäpesola is the President of the Paper Business Line at Valmet. His extensive experience within Metso and Valmet makes him a veteran of the paper industry, and therefore a valuable witness of how papermaking technology has evolved in the past 20 years.

1. Jari, which technological breakthrough do you think has been a game changer for our industry in the past recent years? And in the future?

JARI VÄHÄPESOLA: Shoe press in my mind is one of the greatest game changers for all paper grades. t has significantly increased the dry content and runnability of the machines. Steel cylinders and steel Yankee dryers are the latest ones, which have also improved the drying capacity and increased the efficiency of machinery. n finishing area, automation has decreased the need of personnel in the area where the headcount has traditionally been the highest in operations. There is also number of bigger and smaller innovations improving the energy efficiency of the machines and paper strength properties. Already during the COVID-19 pandemic we have used many digital tools which in the future will change our way of working. Supporting customers remotely will be more common and new tools will help us to optimize operations both in mill as well as in production line level. Target and actions to reduce plastic usage ill bring ne fibre based products. ome of them are already under development, some not no n yet. nteresting is also the usage of micro fibrillated cellulose in different applications in near future. This is now in the focus of our customers and for us as well.

2. Would you say that papermakers in general are eager to try new technologies and processes, or rather conservative? I would say that we have papermakers in both groups. The biggest group is conservative who always wants to have only proofed technology with plenty of references. There are also papermakers who want to be one step or two ahead of competition and hence, willing to try something new which nobody else has.

3. Producing paper products with the lowest carbon footprint is now a major tren . hat in of so utions wou ou a ise first to a c ient tr ing to impro e his environmental impact? Number one might be lightweighting and minimizing energy consumption. The same strength properties with 10% lower gms will reduce CO2 emission almost 10%. Valmet has many components to improve strength properties and reduce energy consumption li e refiners, multilayer headbo , sleeve

PAPERFIRST MAG Autumn 2020

Tech Talk

roll, hard nip sizer, runnability components etc. On tissue side new Valmet hybrid concepts reduce energy usage without compromising the quality parameters of paper. The Advantage ViscoNip press is another technology that has great impact on energy consumption and CO2 emissions.

4. Valmet recently acquired the Polish machinery manufacturer PMP. Can you explain the strategy behind this and how it can improve your position on the market?

The acquisition of PMP Group brings together two companies with different offerings, complementing each other. PMPâ&#x20AC;&#x2122;s product portfolio focuses on small and medium-sized tissue machines and board machine rebuilds. Valmetâ&#x20AC;&#x2122;s current strength is in technology and services for wide and fast machines and rebuilds. As a result, Valmet will have the widest product portfolio in the market, and we have now also strengthened our core competencies with another 650 dedicated people.

5. How is the COVID-19 pandemic affecting your business globally and what are the prospects for 2021?

COVID-19 has been a challenge to all of us. It has limited our travelling, face to face customer contacts and site operations. However, at the same time it has increased usage of the latest digital tools. Together with our customers we have increased remote work and remote support through our Performance Centres and with our Industrial Internet applications. We have started up new machinery and rebuilds remotely having only limited staff on site and our e perts supporting remotely. We can also run pilot trials remotely from our technology centers. The usage of latest digital tools is in different level today than it was one year ago, and I believe that this change is permanent.

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TECHNICAL INSIGHT 1

Field services go remote! Article by Marianne Valta

Digitalization is bringing a completely new dimension to the field services typically conducted on site at customer mills and plants. New digital tools, remote connections and online support from a global expert network are making field services increasingly prompt cost-e ective and easy or the customer.

owever, Remote Field Services make Valmet’s technology and process experts around the world available, regardless of the location or time zone. “Sometimes travel to the site isn’t considered sustainable – from a time and money perspective. It can also be impossible, as we’ve now seen during COVID-19, yet the service need is there. Our advanced remote connections and tools mean we can offer maintenance services like troubleshooting and inspections, conduct preaudits before scheduled site visits, or simply pro-

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vide additional support in daily operations as required. With these tools, we offer customers to have easy access to first-class customer service, sustainably and without delay,” Anders Öhrblad, Director, Field Services Growth, explains.

EASY ACCESS FOR CUSTOMERS TO SERVICES Valmet has a wide service network – more than 120 service centers in 22 countries and more than , field service e perts. e also have a network of eight Performance Centers, which are available 24 hours a day, serving every industry and geographical region. The Performance Centers can support onsite services by utilizing the global expert network. “Our Performance Centers provide access to the required expertise – whether the challenges are machine-, process- or automation-related. We offer process analysis and optimization services, as well as remote monitoring. The services provided by Performance Centers are available either on demand or as part of a service agreement,” Öhrblad says.

TECHNICAL INSIGHT 2

Valmet’s newest digital tool is @Field, a Field Service Management Application that connects Valmet’s more than 1,100 professionals with each other and the Performance Centers. ield unifies ho e plan and e ecute our field services globally. We allocate the best available resources through the app, securing a short response time and excellent customer service – at all times and in all places. The app also serves as a databank that allows us to better predict and advise our customers in preventive maintenance and other services,” Öhrblad explains.

A SERVICE AGREEMENT WITH ONLINE AND REMOTE SERVICES

1. Valmet has a network of eight Performance Centers, which are available 24 hours a day, serving every industry and geographical region. The Performance Centers can support onsite services by utilizing the global expert network. 2. To secure excellent customer support, Valmet uses several digital tools to connect service experts with customers, as well as with each other.

NEW DIGITAL TOOLS ENABLE REAL-TIME ACCESS TO INFORMATION AND EXPERTISE To secure excellent customer support, Valmet has developed several digital tools to connect service experts with customers, as well as with each other. Valmet Customer Portal is a unique online space for collaboration between customers and Valmet. It gives access to all Valmet’s online services in an easy-to-use platform. “The portal gives one-point entry to order, service and project information, documents and the K I dashboards of the eet’s performance. he portal also serves as a gateway to spare parts and learning services, and allows our customers to contact their Valmet team or Performance Centers to get support or share plans and information,” Öhrblad says.

A Service Agreement is an annual agreement between Valmet and the customer. The content of the agreement is designed individually for each equipment or site. It can include any services – inspections, troubleshooting, process optimization, remote monitoring or training. The agreement can include both onsite and remote services. “Demand for remote services is growing all the time. The feedback shows that our customers value the fact that we’re supporting their production process day and night. With Remote Field Services, we also give the same opportunity to the maintenance organization. If unexpected challenges arise, our most experienced professionals are at their disposal without delay through remote collaboration,” Öhrblad says.

TOWARD IMPROVED CUSTOMER EXPERIENCE Field Services is one of the focus areas of Valmet’s strategy. “Our aim is simply to offer the same excellent customer experience globally. We’re establishing a stronger local presence, with improved capacity to support our customers on site. We’re developing new services and digital tools to secure an excellent customer experience, both on site and online. Internally, we’re running a global competence development program that secures the transfer of expertise to future professionals,” Öhrblad concludes.

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TECHNICAL INSIGHT

Hard data, soft sensors and process expertise: a recipe for Industry 4.0 success Article by Donald Stanley, ChangYuan Liu and John Schroeder, ABB

For pulp and paper manufacturers, a robust data strategy backed with sector e pertise ma imi es the benefits of Industry 4.0 technologies, such as the latest machine learningbased soft sensors. Donald Stanley, ChangYuan Liu and John Schroeder of ABB, explain.

ndustry 4.0 technologies are transforming the pulp and paper industry, empowering manufacturers to achieve previously unseen levels of efficiency and output. his change is being fueled by data, which lies at the center of strategies to provide reproduceable, robust and sustainable results. However, data is almost irrelevant unless it can be gathered and validated in a meaningful way: thus, data collection and conditioning â&#x20AC;&#x201C; an unglamorous, time-consuming task â&#x20AC;&#x201C; is vital if we are to extract valuable insights from our data

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with minimal false positives. Taking an approach to data acquisition and cleansing that also leverages industry expertise ensures that our models and advanced data-driven applications are accurate and therefore useful. In this article, we discuss creating a data strategy that systematically combines Industry 4.0 technologies and data analysis with sector-specific competencies, particularly as it relates to the newest advances in soft sensors. Building these applications based on machine learning has been talked about for years, but only now do we have the data techniques that enable these to be deployed as reliable, sustainable toolsâ&#x20AC;&#x201D; especially when continuous monitoring of dataempowered systems is used to mitigate the risk of performance degradation. Following a strategy that equalizes the importance of domain know-how with data acquisition and validation ensures the best results are achieved. This also reduces production costs by minimizing raw material usage, increasing throughputs by improving equipment reliability, or raising quality by stabilizing processes and automation performance.

TECHNICAL INSIGHT DATA STRATEGY IN PRACTICE Putting a proper data strategy in place is crucial to the overall success of digitalization. When considering the optimization of papermaking, the following key areas need to be considered: 1. Data acquisition and harmonization 2. Data preparation and validation . f ine data utili ation 4. Online implementation of data-driven solutions 5. Operational integration and training 6. Collaborative monitoring and continuous enhancement

1. Key tasks in implementation of data-driven solutions.

STEPS 1 AND 2: ACQUIRE, HARMONIZE, PREPARE AND VALIDATE YOUR DATA he first t o steps in such a data strategy ensure that data is collected and prepared to be usable in data-driven process optimization. In the pulp and paper industry, this data comes from a wide variety of sources (distributed control systems, quality control systems, manufacturing executions systems, other databases and historians): the challenge is to bring this data together in a usable way. Some key considerations include identifying and locating the variables of interest, which requires a high level of industry experience to provide context and insight into the process and operations. In addition, the time synchronization of data sources is crucial: even a few

seconds difference between the clocks of two data sources can distort the data and impact the validity of any subsequent analytics. Also important is understanding the impact of sampling and compression; ideally, data should be sourced as closely as possible to its ‘real’ or ‘raw’ form. For real-time data-driven operations, data must be aggregated from its various sources into a harmonized repository for analysis, preferably using a e ible time series database capable of subscribing to OPC data and bringing data over from other databases or historians. While there are many more considerations for cleaning and filtering, no ing ho to sort data for use is crucial. Different data sorting schemes must be applied, depending on what type of machine learning, data mining or modelling a user is trying to create, while taking into account that machine conditions, different grades and transition periods result in different operating characteristics. Multivariate analysis techniques should be used to further validate collected data and identify the dominant contribution data sets, hich is crucial to the efficiency of subsequent modelling. Once the process data has been collected, prepared and validated appropriately, it is possible to structure data-driven applications to extract insight – which leads us to consider the use of data and specifically to the creation of soft sensors.

STEPS 3 AND 4: PUTTING YOUR OFFLINE DATA TO WORK FOR ONLINE SOFT SENSOR APPLICATIONS The insights extracted from collected data are most often presented through the creation of models (step 3) that illustrate how selected process variables interact with other variables. These models could be soft measurements of unmeasurable process variables or product properties, complex models of process behavior for process control solutions, and/or calculations of process performance indices that help monitor the health of a process. To illustrate the idea, we will focus on soft sensors, the types of models that are based on machine learning and that produce inferred calculations of physical measurements.

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TECHNICAL INSIGHT

A soft sensor uses various process variables to infer or estimate a process variable or product quality measurement that cannot be measured in real-time or by a physical sensor.

So, what is a soft sensor? A soft sensor uses various process variables to infer or estimate a process variable or product quality measurement that cannot be measured in real-time or by a physical sensor. They are an addition to laboratory measurements, which provide valuable insight into the final properties of a reel at end of production, but not during production, when actions can still be taken to affect the end result. In the world of papermaking, soft sensors can be applied to many different properties including: sheet quality, sheet strength, sheet weight, kappa value in pulping processes, and wet-end ash calculations.

To make the most of soft sensors, they need to be integrated with controls systems by leveraging application programming interfaces (APIs), which provide connectivity, device management, software management, and data handling for various data-driven solutions. APIs are the backbone of online digital solutions, allowing data to o seamlessly through control systems, edge devices, cloud platforms, and online data-driven analytics solutions. This means the output of such analytics solutions – of which soft sensors are one – can be made available to control systems for monitoring and/or control applications, completing step 4.

Building soft sensor models re uires a significant investment in time and effort before they can be used online in the manufacturing process. Historical process and product quality data – the foundational inputs for soft sensor development – are usually stored in different databases.

For example, soft sensors that provide measurements of sheet quality can stand in for traditional sheet measurements during start-up, sheet breaks, or while scanners are temporarily of ine for service. ith this additional insight, papermakers are given complete visibility of the process status and have full access to process controls to achieve smoother transitions, faster sheet break recovery, and better overall process conditions.

To create soft sensors, various exporting tools and techniques (examined in steps 1 and 2) are needed to extract and synchronize this data. Step 3 is the physical creation of the model using the insightful information extracted from the data. When done correctly – and within the context of a proper data strategy – soft sensors bring the value of real-time measurements to variables that were previously only measured periodically.

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An example would be the online prediction of sheet strength – a measurement that is only available in the laboratory. This type of soft sensor application – such as ABB’s Strength Virtual Measurement—allows operators to maintain strength properties much closer to their lower limits with measurements that are considerably

TECHNICAL INSIGHT

he first tas is to bring those that ill use the system onboard through a people-focused and inclusive implementation approach. Operators, engineers and supervisors all have valuable insight into their process and what avenues exist for improvement. They should be brought into any solutionâ&#x20AC;&#x2122;s development at an early stage, and through implementation and commissioning. his allo s the pro ect to benefit from both their expertise and buy-in, maximizing chances for success. As an example, process operators should be included in the design of the user interfaces and displays to ensure they are informative and intuitive. An online strength calculation provides more frequent measurement to keep strength properties closer to their lower limits, helping to reduce raw material usage and maintain quality more consistently.

more frequent than those tested in the laboratory at the end of the reel. Mills gain valuable insight that can help reduce raw material consumption, increase machine speed, and complete grade changes faster. The key to creating this valuable insight is constructing a predictive model for the soft sensor application that leverages process knowledge and expertise. Online models used to predict paper properties can only be as accurate as their architectâ&#x20AC;&#x2122;s knowledge of the individual process. In the case of selecting input variables to consider for modelling against the strength of the paper, you need a deep understanding of the process conditions that contribute to and affect the final product s strength. hese include more generali ed inputs, such as eight, refining, and fiber orientation, as ell as inputs that are specifically detailed to the individual process, such as the initial furnish blends and other pulp characteristics.

STEPS 5 AND 6: MAKING INDUSTRY 4.0 GAINS STICK Spending all this time and effort on data collection and validation, model building, soft sensor development and online connectivity is worth nothing, however, unless improvement gains can be sustained. And this brings the final t o elements of a proper data strategy into play.

The final element of a successful digital strategy looks beyond final installation and commissioning to ensure its long-term use to its users. The lifecycle of digitalization solutions is all too often one of initial benefit, followed by slow degradation, until they are turned off. To break this cycle, a system of collaborative monitoring and continuous improvement must be put in place.

CONCLUSION he benefits of ndustry . solutions are potentially enormous but depend on the implementation of a solid data strategy as outlined above. In particular, soft sensors can play an important role in allowing infrequent or even unknown variables to be predicted and used to optimize performance. As their benefits become more widely known in the industry, their use is likely to expand to the point where paper mills have multiple paper properties that are calculated using soft sensors. As with all digital solutions, however, soft sensors are just tools. To achieve the most value from a digital solution requires not just the technology but an implementation partner with a deep-level understanding of the process, such as that found in the decades of experience ABBâ&#x20AC;&#x2122;s had serving pulp and paper mills. Building an industry-expertise-backed data strategy that follows a proven process will provide lasting value and, more importantly, the trust a business needs to act on the insights digital technologies unlock.

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TECHNICAL INSIGHT 1

Optimizing the paper manufacturing process with virtual sensors: the story of ondi u omberok in lovakia Article by Julia Schaefer, Global Market Communication Manager, Voith Group

Meeting the challenges of the paper industry with digital solutions has been an issue addressed by some papermaking machinery suppliers for quite a while now. The sensor technology has proven useful in that respect. ith its On ficiency. trength concept applied to PM 18 at Mondi C u omberok in lovakia Voith helped his client achieve some impressive results.

T 52

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he price of raw material is forcing paper manufacturers to reduce production costs and further improve the efficiency

of their production facilities. In this context, digitalization is the key technology for achieving efficiency increases and cutting costs, because ne technologies in particular enable significant improvements in existing and new facilities. hey allo better monitoring of all processes and therefore more precise production control, hich in turn results in higher efficiency and better availability.

REDUCED FIBER CONSUMPTION ince fiber is a decisive cost factor in paper production, the goal of papermakers is to reduce fiber losses and minimi e the amount of fiber as much as possible ithout falling belo the re uired uality level. o ever, optimization with conventional measures and tools has its limits, and in many cases, papermakers

TECHNICAL INSIGHT 2

Fig. 1: The use of nE ficiency. trength at PM 18 allowed 2,800 metric tons of virgin fibers to be saved in the first year, while important uality parameters li e bending stiffness and thic ness remained within target values. ig 2: nE ficiency. trength helps stabili e uality uctuations and reduce costs.

are faced with the situation that they simply cannot control important uality parameters such as strength in a closed loop. Digital solutions li e n fficiency. trength by oith no offer the possibility to constantly eep trac of ey uality parameters to minimi e the amount of fibers.

O MO D S C R OM ERO OPTIMIZING FIBER CONTENT

e have been usin On fficiency.Stren th since 2018 to consistently meet uality re uirements for stiffness and thickness and thus optimi e the paper produced on the M 18, says Peter Chlepko, Manager of the PM 18 at ondi u ombero . In the process e are also reducin our costs, because On fficiency.Stren th provides optimum control of basis ei ht and ash content. hat is other ise only possible using manual measurements in elaborate measuring processes and ith considerable additional effort is no being done at u ombero ith virtual sensors that calculate the data on bending stiffness. his continuous condition monitorin of key uality parameters enables automated ad ustment of the paper ebâ&#x20AC;&#x2122;s fiber and ash content, hereas manual laboratory measurements can take up to 0 minutes to deliver results after samplin , and the parameters can only be ad usted by means of manual interventions, says Dr. Julius Flitsch, Director Remote perations enter at oith aper. hanks to the virtual sensors, stren th values are avai-

lable in real time, so fiber content and basis ei ht can be reduced ithout any time delays. he filler content, also kno n as ash content, can be increased to achieve the re uired stren th values. fter e installed On fficiency.Stren th, the basis ei ht and the ratio of fiber to ash improved substantially, says Chlepko. s a result of this advanced process control system, e could stabili e our paper manufacturin process and are no able to proactively control paper uality. his means e can achieve the re uired paper uality even ith a hi her ash content and lo er basis ei ht, as confirmed by our laboratory measurements. he picture belo sho s the process stabili ation achieved at in u ombero through the installation of the n fficiency. trength control system. Following an optimization phase, the basis eight as reduced by around 0.5%. At the same time, the ash content was increased by . , the ratio of fiber to ash op-

ptimi ation o ash and basis weight ratio or the u ombero .

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TECHNICAL INSIGHT

timi ed and the entire process stabili ed, eeping the uality stiffness above the specified level. he real time prediction of uality parameters and the continuous optimization of the process not only prevents uality uctuations. n fficiency. trength also enables production costs to be reduced hile reliably maintaining uality. e reduced our costs because of better prediction and faster ad ustment of ash content to chan ed process conditions, hile maintainin all uality parameters, says Chlepko. As a result, the use of n fficiency. trength in the allo ed , metric tons of virgin fibers to be saved in the first year, hile important uality parameters li e bending stiffness and thickness remained within target values.

EO E C E C .S RE R C E S A E, S A OPTIMIZE

n fficiency. trength combines three modules into one high-performance control system and heralds a new generation of advanced process control systems. The system includes virtual sensors, also known as soft sensors, the model predictive control unit and the cost optimizer. A special feature of the virtual sensors is their high accuracy, as the prediction accuracy is typically over . oreover, the soft sensors are self adapting and able to eep their prediction accuracy at a very high level. The virtual sensors accurately predict important uality parameters. he real time knowledge of these values allows the MPC to control the paper manufacturing process in such a way as to consistently achieve the targeted values by means of continuous ad ustment. The cost optimizer then ensures that this is done at the lo est possible cost. n order to find the customer specific cost optimum, actuators and control strategies can be individually selected and e ibly adapted. ondi

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u ombero

as impressed in par-

ticular by the high savings potential offered by n fficiency. trength. his as calculated beforehand in the value add assessment. â&#x20AC;&#x153;Before installin the product, e conduct a value add assessmentâ&#x20AC;&#x2122; for our customers, hich calculates the savin s potential of On fficiency. Stren th based on individual customer data, says r. litsch of oith. e then uarantee the savin s potential to our customer. In addition, e al ays individually define the parameters and actuators to be controlled dependin on customer re uirements and paper machine.

MO D S C R OM ERO A D O A S CCESS S OR ondi and oith have been riting their shared success story since as far bac as . he collaboration bet een the t o companies began ith an order for the ne . n , oith rebuilt this production line to create an ultra modern paper machine for office papers. e have had a very ood e perience of orkin ith Voith. lon ith the construction of the M 18, e also successfully completed numerous other pro ects to ether and ere therefore able to continually improve our paper manufacturin process, says Chlepko. Our collaboration ith Voith as al ays at a very hi h level and based on a spirit of partnership. Durin the On fficiency.Stren th pro ect phase, e en a ed in a close, in-depth dialo . s a result, e ere able to discuss potential problems and implement solutions promptly. e are very proud to be able to look back on an intensive collaboration ith Mondi based on a spirit of partnership, says Andreas Zangl from the oith sales team for u ombero . he re ular personal e chan es in particular are very important for both parties. ith the introduction of a ne eneration of advanced process control systems for the M 18, e have a ain stepped up these e chan es. On fficiency.Stren th is an e ample of ho our customers are continuin to evolve and are able to benefit from the savin s potential offered by our apermakin .0 product ran e.

TECHNICAL INSIGHT

Water-cooled multi-motor drive for a complete paper machine Author: Michael Herold, Sales Manager Fiber Industry, Siemens Energy

ENTIRE MULTI-MOTOR DRIVE REPLACED IN NINE DAYS

n April 2018 Siemens put a water-cooled multi-motor drive into operation for Progroup, one of the leading manufacturers of containerboard and corrugated board in Europe. While their paper mill PM1 in Burg near Magdeburg (Germany) was down for ten days for the installation, the opportunity was taken to migrate and combine what had been separate operating areas into the PCS 7 SIPAPER process control system at the same time. The drive system used in the multi-motor drive at PM1 had been running reliably for more than 15 years. To both improve machine speed and enable the mill to maintain its very high availability level into the future, Progroup replaced the multi-motor drive of the air-cooled Masterdrive converter ith efficient, innovative ater cooled converters. This forward planning means PM1 is already prepared for future performance enhancements.

MULTI-MOTOR DRIVE WITH 13 MW INSTALLED DRIVE POWER With about 41 drive circuits, the new multi-motor drive includes both the variable drives in the pa-

per machine and the pump drives. System compatibility ensured the feed-in points, motors, and most of the cabling could be reused, although selected drives were replaced as a preventive measure or to improve performance. As a precaution, nanocrystalline toroidal tape cores ere fitted to the outputs of both the inverters and converters to protect the motors against bearing currents. At PM2, its sister paper mill in EisenhĂźttenstadt, Progroup has had very good experience with the proven Siemens SINAMICS S120 CM (Cabinet Module) converter series, since the high levels of dynamism and control accuracy of this series make it possible to achieve the drive parameters needed for the paper machine. Progroup also decided to utilize this innovative drive solution for , and ta e full advantage of the benefits of the water-cooled frequency converters at the same time. The presence of a cooling plant for the raw water connection on-site made it easier to set up the converter plant ith energy efficient water cooling. The entire water-cooling system is configured ith redundancy n the event of failure or when required for maintenance purposes, the redundant system automatically takes over. The new, space-saving cabinet arrangement and direct heat dissipation via the water circuit substantially reduced heat losses in the switchgear room.

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TECHNICAL INSIGHT

WHY WATER-COOLING? Water is much denser than air, and therefore has a more favorable heat transfer coefficient. eat is directly dra n off to the cooling uid rather than the environment. Unlike air-cooling, water-cooling requires much lower circulation of the cooling agent, which also means the pumps need much lower drive power than fans would otherwise require. reater efficiency is the result. Water-cooling substantially reduces the amount of air-conditioning required, which also removes the need to change air filters every year. Additional savings can be obtained from targeted heat recovery for process or heating purposes. This can also reduce maintenance and operating costs for the longer term. The comparatively higher investment cost is amortized over a short timeframe, and lifecycle costs are reduced overall.

UNIFORM PCS 7 PROCESS CONTROL SYSTEM WITH STANDARDIZED SIPAPER APL SECTOR LIBRARY The entire solution for the automation and drive system is based on the PCS 7 process control

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TECHNICAL INSIGHT system with the standardized SIPAPER system solution for the fiber industry. ith it, iemens Energy provides a comprehensive tool for implementing process automation, drive controllers, energy supply, IT solutions, and services. The business areas of multi-motor drives, core cutter, and roll cutter were available separately in various older PCS 7 versions. As part of the upgrade project, these were all uniformly migrated into PCS 7 V9.0 SP1, combined into a single multi-project, and structured within a client-server architecture. The new multi-motor drive was implemented using the SIPAPER Drives APL standard, the core cutter with the SIPAPER DCS APL standard, and the roll cutter using the SIPAPER Winder APL standard. The main focus was on ensuring there were no changes in function for the system operators. The use of water-cooled frequency converters for the first time made it possible to refine and implement the A rive A standard for the WinCC/panel control system in the redundant water circuits and DC links. The Comfort Panels will be used in the future for onsite operation in the switchgear room. To ensure a high level of safety for operators and equipment at PM1, the new automation system also includes the fail-safe S7-410 controller. This means the conventional emergency stop components are replaced with fail-safe I/Os. Safety-relevant signals are communicated via the same bus system as the process signals. The standardized, fail-safe PROFIsafe communication protocol prioritizes, protects, and monitors the fail-safe signals. This means safety-relevant functions can be put in place with no additional installation cost, while maintaining a high level of e ibility in terms of signal connections and subsequent adaptations.

or o and assembly plans ere dra n up, and assembly tasks like cable runs and piping were also performed in advance. Many different business areas had to be coordinated, from special logistics firms to electrical assembly and assembly of the water-cooling system. Shortly before the mill was powered down, all system components for the multi-motor drive underwent preliminary commissioning on-site, including functional testing, in a separate warehouse adjacent to the paper machine. Via a temporary direct access to the switchgear room for the paper machine, more than 70 m of control cabinets was moved in the space of two days at the beginning of the downtime. Following connection to the prepared cables, selected water-cooled converters were put into operation on a partially automated basis and in close coordination with third-party business areas, using specially developed scripts and prepared databases. All these elements ensured the schedule was adhered to and the paper machine was ready to be powered up after just nine days. Using the PCS 7 SIPAPER standard, system commissioning of the paper machine was completed in below ten hours. The lower noise emissions, thanks to the water-cooling installed in the switchgear room, and desired system availability level in excess of 99.8 percent were both achieved.

PROJECT MANAGEMENT, CONTRACTUAL STRUCTURE, AND SERVICE

NINE DAYS FROM START TO FINISH â&#x20AC;&#x201C; HOW WAS THAT POSSIBLE?

Siemens Energy was responsible for the project overall, including components and systems from the Siemens portfolio. By making use of regional automation and drive specialists for the fiber industry, the paper mill can rely in the future on short response times and close attention from service employees familiar with the system.

To upgrade the existing drive system, Siemens Energy was tasked to replace the entire switchgear during a ten-day downtime. Being perfectly prepared in line with plant requirements was the key to success. The entire conversion was planned beforehand in detail,

Progroup is very happy with the water-cooled frequency converters, and will therefore also apply this solution not only for its entire multi-motor drive system but also for the larger process drives at its planned paper mill PM3 in Sandersdorf-Brehna.

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TECHNICAL INSIGHT 1

A digital revolution in logistics Major savings potential at pulp and paper mills Article by Kaj Fahllund, Vice President, Pesmel Corporation

Pulp and paper mills all over the world are completely transforming their production processes by automating and digitizing. But what about logistics? Logistics experts at esmel are finding that there are huge savings to be made at pulp and paper mills by using its intelligent Material Flow How® concepts.

«W

e like to think of lo istics as the lo han in fruit’ at pulp and paper mills. It’s an area here a lot of efficiencies can easily be made. says ony ei as, of esmel. “We have a lot of e perience in the field and have carried out maor studies on material o s at pulp and paper mills all over the orld. e have proved that ith the ri ht plannin and usin tailor-made lo istic solutions utili in di iti ed automation, there is a potential for hu e savin s and a very speedy return on investment. esmel e perts have not ust studied logistics

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as a result of their findings they have put hat they have learned firmly into practice. he company has successfully designed and built fully automatic, tailor made systems for some of the most modern and efficient pulp and paper mills in the orld, including ets roup s ne os i, tora nso s matra, and aica aper s l Burgo de bro mill. ei as adds, “In-mill logistics have a major inuence on the mills’ complete lo istics chain. Our studies have revealed that aitin times of trucks and trains at mills can add up to more than 0 of the total transportation time. here is enormous potential to close these aps usin intelli ent di itali ed automated arehousin . he fact is it’s only hen the rail ay a ons are on the tracks and the trucks on the road that products are movin to their destinations. he aim of esmel systems is to shorten the lead and turnaround times and basically to close those aps.

SHORT PAYBACK TIME esmel has found that due to the increased efficiencies across the hole logistics chain, ma or savings can be made ith reduced pay bac

TECHNICAL INSIGHT 2

2. Itâ&#x20AC;&#x2122;s not just the automation of mill logistics where big savings are made by having an unmanned operation, there is also the short turnaround times where our studies show that millions can be saved in transportation costs.

1. With the right planning and using tailor-made logistic solutions utilizing digitized automation, there is a potential for huge savings.

times on a complete system varying from as little as three to five years. here are all sorts of areas here efficiencies can be made, as ell as many other added benefits, says ei as. Itâ&#x20AC;&#x2122;s not ust the automation of mill lo istics here bi savin s are made by havin an unmanned operation, there is also the short turnaround times here our studies sho that as much as uro - million can be saved in transportation costs. If you think about a mill that has 1 0-200 trucks comin in and out every day and havin a turnaround time of t o hours each. ith a ell-planned automated system, a 20 minute turnaround is completely viable. dded to this is increased customer satisfaction ith better and more consistent delivery times. Another bonus of a fully automated logistics system is the reduced damage to bales and rolls due to dramatically reduced for lift and manual handling. esmel s arehousing logistics systems use a series of automatic high bay stac er cranes, conveyors and loading cranes, all connected to its o n arehouse anagement ystem , here the bales and rolls have minimum contact during transportation. Our systems are desi ned to smoothly transport bales and rolls ith the minimum of contact hich means that the customer ill receive the final products in much better shape, says ei as.

WELL PROVEN FORMULA esmel has its o n ell proven formula for designing and planning in mill logistics solutions. t

starts ith a complete mill ide feasibility study ta ing in every area of the mill and beyond, and particularly ta ing into account mill customer re uirements. esmel then selects the right automation components and introduces digitali ation hich is connected for sharing bet een the mill processes. t the feasibility sta e e like to have as many people from the mill process areas en a ed as possible, often includin the sales teams as ell, says ei as. e like to take a holistic approach as then e can build a model that takes into account all the re uirements the mill lo istics needs mi ht have . esmel ta es all the e isting data possible from the customer s process areas and builds a simulated model here e act production scenarios

3. 3D modelling applications are built replicating customerâ&#x20AC;&#x2122;s exact logistics situation.

can be vie ed. his is here e like customers to et really involved and en a ed, says ei as. sin their data, e build a D model replicatin their e act e istin lo istics situation. sin a di ital t in as a simulator, e can then clearly

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TECHNICAL INSIGHT 4

4. Pesmel delivered an automated distribution center for pulp bales which includes a 25,000 ton storage high-bay warehouse with a handling capacity of 1,000 ton per hour. 5. Pesmel will supply an automated distribution center with a 65,000 ton warehousing capacity.

illustrate the lo istics possibilities that are available as ell as take into account the future increased demands of the customer.

CASE STUDIES

reduce e pensive rail ay costs by cutting agon usage from agons and up to five locomotives to agons using three locomotives. The Solution esmel designed an automated distribution center at the mill hich includes a , ton storage high bay arehouse ith t o stac er cranes ith a total handling capacity of , ton per hour. he design also included automated railroad car loading controlled by the esmel arehouse management system.

METSĂ&#x201E; GROUP Ă&#x201E;Ă¤nekoski, Finland The Challenge o develop an efficient logistic chain for a ne pulp mill producing . million tons of pulp. f the mill output, , tons travel by rail to elsin i for e port and , tons travel by truc s to local customers in inland. pecifically the mill anted to reduce the round trip time for transportation of , tons of pulp by rail to the ort of elsin i by more than half, from hours to hours. t also anted to

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esmel delivered an automated distribution center for pulp bales hich includes a , ton storage high bay arehouse ith a handling capacity of , ton per hour. he installation is completed ith esmel s automated management system hich is connected to the mill s A management information system that allo s instructions, reporting and information sharing across the board from mill to port, and real time trac ing of agons using throughout the delivery ourney.

TECHNICAL INSIGHT The Results he ne automated distribution center has achieved significant operational savings ■ nmanned arehouse operations at the mill ■ rain frames have been reduced by ith , tonnes loaded in an average of three hours ■ A saving of , liters of fuel per year ■ ruc loading time has been reduced to less than minutes Added benefits to the mill are more e ibility in both production and logistics, improved customer service, error free deliveries and improved safety.

SAICA PAPER El Burgo de Ebro Mill, Spain The Challenge he overall challenge and driver for the investment as to change the operating philosophy from made to order to made to stoc , resulting in improved customer service. he customer s target as to increase storing capacity and improve inventory control at the mill site. treamlining shipping functions to minimi e turnaround times as e ually high on the agenda. t also anted to improve customer service and provide faster and more e ible deliveries. inally, the customer anted to enhance safety in the storage and loading area.

The Solution esmel designed an automated distribution center at the mill hich includes a , ton storage high bay arehouse ith t o stac er cranes ith a total handling capacity of , ton per hour. he design also included automated railroad car loading controlled by the esmel arehouse management system. he installation is completed ith esmel s automated management system hich is connected to the mill s A management information system that allo s instructions, reporting and information sharing across the board from mill to port, and real time trac ing of agons using throughout the delivery ourney. The Results ■ torage operations ill be completely autonomous. ombined in out handling capacity ill be rolls per hour from three board machines and an off machine coater ■ verything ill be automated in the ne logistics arehouse. arge stac er cranes ith pre and after sorting facilities ill be responsible for placing the paper reels in the most appropriate place to optimi e handling of loads ■ oads ill be prepared for truc loading in minutes after gate arrival, up to five truc s simultaneously, resulting in minimi ed turnaround times at the mill ■ n time deliveries ith minimal product damages ■ he truc loading area has been designed by aica roup specifically for improving truc drivers safety

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TECHNICAL INSIGHT 1

Creativity compliments major rebuilds at APPM… Adding 30% capacity with little investment Article by Roman Smorgunov and Lyubov Lyubimova

Located near the White Sea, about 1,000 kilometers northeast of St. Petersburg, Arkhangelsk Pulp and Paper Mill (APPM) is one of the largest producers of containerboard in the country. They produce over 500,000 TPY of fluting and Kraft linerboard and have a total mill capacity of over 900,000 TPY, including bleached market pulp. An important player in the European market, their containerboard is considered a benchmark for quality, having a “noble” brown color, reaching over 60 countries. Their domestic market share has risen along with export markets in Italy, Spain and Turkey being strong as well.

ver the past several years, they have invested over EUR 100 million on both board machines, improving quality and reducing environmental impact. BM2’s rebuild for linerboard and corrugating medium started up in 2016, including a new wet end, improvements to the drying section, a new pope reel, slitter, and wrapping and handling system. A new control system was also put in place. Earlier, in 2014, BM1 underwent a comprehensive rebuild, including a new wire section for raftliner production. rom refining and stock preparation were completely updated. Within the framework of each of these projects, all guarantees for end products were met. Environmental goals from 2013 to 2021 include water consumption cut in half, pollutant emissions down by 65%, discharge water reduced by 75% and greenhouse gas emissions lowered by 18,000 tons of CO2 equivalent. Alongside the significant containerboard investment, the mill is always in search of ways to improve quality and increase capacity with little money spent. Dmitry Khrapach, board production manager, challenged his team to wonder: what if the bottleneck in BM1 screening could be overcome to open the way for higher productivity.

FOCUS ON THICK STOCK SCREENING FOR THE BOTTOM PLY Says Khrapach, e need strate ic e ibility because packa in is al ays chan in . iber yield and optimi a-

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TECHNICAL INSIGHT 3

tion is a must. asy chan es from one rade to another have to be smooth. roduct appearance must be consistent. et, sometimes e had akes and shives in the pulp causin problems on M1. uality problems, too. s a result of comprehensive measures performed on the machine, e increased the production rate above desi n capacity. o ever, this caused limitations in thick stock screenin capacity. So, e needed to increase the screenin capacity, hich as accomplished ithout bi capital investments. or this purpose e chose , kno in that they have the kno led e and e perience in tacklin such tasks. AFT’s Roman Smorgunov, Jussi Karppinen and Tarmo Karioja helped APPM with modelling BM1’s bottom-ply thick stock screening and mapping out o changes inside the screens. A imAudit mass and o balance analysis revealed that major productivity and quality gains were possible. The screen room was limited by inefficient rotors and insufficient open area in the cylinders. AFT recommended changing over to new high efficiency rotors and cylinders ith optimi ed open area and profile in all three stages to improve pulp throughput, hile not sacrificing the accept pulp quality. All three stages employ acro lo cylinders and high efficiency rotors. APPM went with the recommendations and also made necessary engineering modifications to the BM1 thick stock screening system, including pumps, pipes, valves. The project was completed in 2018 with all expectations met.

Says Khrapach, ho says screenin is borin Sometimes you in bi by bein creative. Simple, bold moves inside our screens improved o to allo us to ma imi e output and uality. e achieved a 0 ain in screenin capacity, and stable properties of the end product - that’s a bi in

1. Dmitry Khrapach, board production manager, (right) and Roman Smorgunov, AFT specialist.

4. Denis Sergeev and Elena Saiko, pulp mill control room operators with their boss, Vadim Moseev.

2. BM2 operator observes quality as the sheet comes off of BM2.

5. Vadim Moseev, pulp production manager at Arkhangelsk Pulp and Paper Mill.

3. A wide range of hardwood and some softwood is used at APPM, coming from expansive forests within a 350 kilometer range.

INTELLIGENCE INSIDE EXISTING SCREENS Roman Smorgunov, sales manager at AFT, points out that the new rotors achieve lower reject thickening than the OEM rotor, meaning that rejects are reduced despite similar re ect o s. A still closely monitors for uctuating consistency, but can do so calmly, even during peak production of the board machine. Khrapach says, Since makin the chan es, the screens have run smoothly for over a year, so far. Operators and the maintenance team can focus on other obs. Khrapach continues, Our discussions ith applications e perts are al ays productive because of the ay e brainstorm ideas. he best results are reached throu h creative problem solvin and cooperation. e kno our mill ell and has an in-depth understandin of pulp and paper processes. With a laugh Khrapach concludes, ecause every production site is a livin or anism, there are never-endin challen es. ut that’s a ood thin as it keeps us alert at all times

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TECHNICAL INSIGHT 6

6. The human touch is part of APPM’s consistent quality approach to bleached market pulp.

7. Located near the White Sea, Arkhangelsk Pulp and Paper Mill (APPM) is the largest producer of cardboard in Russia, as well as a key player in bleached market pulp.

MAXIMIZING FIBER FOR MARKET PULP Producing over 1,000 t/day of pulp, including ECF (Elemental Chlorine Free) since 2019, they cook, screen, wash and bleach birch and aspen for their own machines and produce bleached market pulp for customers. When they bleach, they use hydrogen peroxide as a bleaching agent, replacing sodium hypochlorite. According to Vadim Moseev, head of APPM pulp production, their ecologically pure product allows for greener, safer pulp production and end products. e considers this to be a competitive advantage of Arkhangelsk APPM on both the Russian and world market. Of note, however, he believes that market pulp requirements demand constant attention to even the smallest issues in the process. Recently, Moseev and his team decided to reduce fiber deposits on evaporation e uipment and increase fiber recovery. Moseev remarks, Small problems can become bi problems, so e address them early. e decided to repurpose an old screen to handle all black li uor o for our hard ood and soft ood Kraft production, hich runs at 80110 C. he oal of the conversion as to recover more fiber from the black li uor stream and meet capacity ob ectives. e looked to to make this happen. According to Tarmo Karioja, AFT project manager, who provided technical support for the project, ith our ussian team, e reconfi ured the inside of the screen and ho the unit as controlled. he up rade included an Cb rotor and lectrobeam drilled cylinder alon ith preliminary layout, pipin and process en ineerin . In addition, ne control valves and operatin lo ic ere built around the old ooper pressure screen and e istin DCS system.

PAPERFIRST MAG autumn 2020

All objectives for this screen conversion project were achieved, including: ■ reduction of fiber deposits on the evaporation equipment ■ ncreased fiber recovery and returning the fiber to the pulp output ■ Running the system in a hermetic environment, without any emissions ■ Running a single screen to handle all of the mill s blac li uor o Continues Moseev, ecause has been a partner for a lon time, our pulp mill has ained many advanta es from their kno -ho , especially around cylinders for screenin . heir kno led e is valued by our team as an e tension of us. Back to the point about problems, Moseev quips, hen unsolved problems and little issues are accumulated, it ets messy. I ill say it another ay... there are no little issues in our business. ll the issues that arise in the course of our business re uire a prompt response.

WHAT’S NEXT AT APPM? ookin ahead, optimi ation could include replacin screens for paper production. Says Khrapach, ith our productivity ains helpin pay for ne t steps, e are al ays lookin for ne ays to meet market needs as they chan e. very production site is a livin or anism. here are al ays never-endin challen es. hat’s hy e count on the people to discuss problems, and help us solve them. Our recent advances make it possible to fi ure out the ne t steps. According to Risto Weckroth, general manager with AFT, M has become a star in packa in in ussia. hey are part of an increasin ly dynamic and e citin marketplace. e plan to support their ro th ith innovation, especially ith e istin e uipment that can reach a hi her level of performance.

</ AFT

Responding to your changing needs aft-global.com

AFT

TECHNICAL INSIGHT 1

1. Extracting stickies out of the MAP improves the surface condition of the sheet. To achieve the highest performance it’s essential to get the angles of the nozzles just right.

Mist & contaminants be gone at SAICA Champblain. But how? Article by Kadant / M-clean

SAICA Champblain, France, has achieved a forming section breakthrough-mist elimination and fewer showers at the wet end made possible with the Kadant M-clean™ system. Combined with M-clean units to remove contaminants from dryer fabrics, SAICA now enjoys major water and energy savings, as well as greater ease to increase productivity.

ccording to Pierre Henri Brouty, project engineer and innovations team leader with SAICA Champblain, “Removing forward showers from our Bel Baie Sup MAP 60 forming section allows us to sharply reduce habitual mist. With this M-clean unit we use only 7 m3/day of water, compared to 500 m3/day for this task. We start up in 3-4 hours less time.” Brouty notes that their pioneering effort at the forming section is a natural progression from the cleanliness already achieved with M-clean units at the dryer sections of both paper machines, where runnability is up.

PAPERFIRST MAG autumn 2020

Adds Brouty, “Better work conditions and safety are important gains for mill operators and workers. The value of eliminating mist at the wet end cannot be under estimated.”

FORMING CLEANLINESS — HOW IT HAPPENS The M-clean unit traverses the forming section, using high-pressure water in combination with a robust evacuation and air knife system. By cleaning on top and underneath, this opens the pores of the forming fabric. Contaminants and water are then separated in a cyclone. Says Ludovic Veyre, applications engineer with Kadant Lamort, “SAICA’s forming section innovation is a major technological breakthrough for the papermaking process. The extraction of contaminants for a 8,700 mm fabric width wit-

“Pioneering efforts at the forming section with M-clean is paying off. Major reductions in water consumption and improved safety happen because of elimination of showers mportant gains in efficienc and sustainability result.” Pierre-Henri Brouty, SAICA Champblain

TECHNICAL INSIGHT 5

3. Kadant’s Robin Moritz (left) and SAICA Champblain’s Pierre Henri Brouty beneath the dryer section of MAP 50. M-clean units at the dryer section are achieving major contaminant and stickies reduction at SAICA Champblain. Productivity is up, maintenance is reduced and the workplace is safer. 4. SAICA Champblain is located just beside France’s famous St. Joseph vineyards, and lives side- by-side, because of a strong sustainability commitment. 5. The 1000th M-clean on the Bel Baie forming section for MAP 60, delivers rapid pay-back, based upon higher productivity. Eliminating the forward showers on their Bel Baie forming section takes them “out of the mist.”

2. Increased life of sheet rolls happens because of on-going removal of contaminants.

hout the traditional fog is noteworthy. Saving so much fresh water compared with conventional systems on this position matters a lot to them.” Adds Veyre, “SAICA Champblain was bold. This transformation was like changing to an electric car. Add to this the strange fact that understanding the mist allowed operators to know the system was working. Avoiding breaks without fog was not immediately easy!”

CONTAMINANTS REMOVED IN DRYING In fact, M-clean for the dryer section has become a de facto standard at SAICA. The Saica Group already uses 43 M-clean units across their mills in Europe, contributing to productivity optimization, increased energy performance and improved process efficiency. Keeping the paper machines clean is a constant issue at SAICA in Champblain, where 100% recycled furnish is varied. Considering the 1,500 mpm or greater speed of their paper machines, represents an ongoing challenge. As Robin Moritz, sales director for Kadant Nordic suggests, “M-clean installed at dryer sections has allowed the SAICA team to ramp up quality and

6. SAICA Champblain has achieved a high level of cleanliness and major water consumption reduction because of their pioneering efforts at the wet end of MAP 60.

productivity on a continuous basis. Because they are runnin so clean, they had the confidence to try this approach at the forming section. Forming fabrics are more sensitive than dryer fabrics, so this required numerous pre-testing trials in Sweden on our trial machine. This effort allowed for a plug and play installation at SAICA Champblain.”

CLEANER DRYER SECTION, THE STARTING POINT Over the past several years SAICA Champblain has systematically improved dryer section performance through better control of stickies, gaining uniformity with sheet properties, while saving energy. Installation of M-clean units has played an important role in high cleaning efficiency, resulting in better energy performance of their MAP 50 - MAP 60 machines.

WHAT’S NEXT AT SAICA CHAMPBLAIN? “Pioneering is our way of being. We like the challenges from innovation, especially when we make sustainability and productivity gains. And it’s fun,” concludes Brouty.

PAPERFIRST MAG autumn 2020

Market trends

Handling tumultuous times in the tissue and towel market Article by Richard Cho, Global Marketing Director, Tissue and Towel Solenis

The unfolding of the past several months has led to more unpredictability than any of us could have imagined. Stayat-home orders, social distancing guidelines and consumer panic buying have created major irregularities in tissue and towel market dynamics and consumption patterns. These challenges also present a great opportunity to help tissue and towel producers adapt and respond to these sudden changes.

PUSHING FOR PRODUCTIVITY

s consumers around the world actively stockpiled supplies and household staple items, tissue makers were pushed to maximize production. In some countries, bath tissue sales increased by more than 50% during the early months of the pandemic. Though machine utilization rates spiked to nearly , there ere still difficulties meeting demand. or Solenis, being part of a larger effort to help customers increase output through higher production efficiency as an opportunity to transform our expertise and capabilities into tangible benefits for our customers and, ultimately, for consumers ho rely on their products every day. Our teams partnered with tissue makers across the globe to help optimize wet-end process and coating stability to improve productivity and paper quality. These efforts have helped multiple customers achieve record machine speeds to meet the unexpected surge in demand. Beyond great chemistry and applications, many of our customers have also leveraged the Solenis OPTIXâ&#x201E;˘ Applied Intelligence adaptive analytics platform to optimize their papermaking processes and meet quality targets. We have documented successes in reducing off-spec tissue production by helping customers significantly improve et tensile target adherence and reduce variability.

ABOUT THE AUTHOR: Richard Cho has held the position of global marketing director for Solenis Tissue & Towel since 2016. In this role, he is responsible for developing the global strategy, driving the innovation pipeline and leading digital communication for this vertical market. Prior to Solenis, Richard was the director of global marketing for Industrial Specialties at Ashland. Earlier in his career, Richard held brand management positions at Diageo and Campbell Soup Company. He holds a Master of Science from the University of Massachusetts at Amherst.

PAPERFIRST MAG Autumn 2020

Market trends

MANAGING FIBER SUPPLY CHALLENGES issue made from recovered fiber accounts for appro imately 30% of global production. Over the past few months, the recovered paper market has experienced extreme volatility. An unprecedented surge in tissue and packaging board demand, combined ith reductions in office astepaper and old corrugated cardboard availability, has tightened supply. This has forced some tissue makers to switch from higher quality office aste to lo er uality alternatives, hich can result in lo er strength and increased wet-end contamination. We have collaborated with a number of these tissue manufacturers, helping them evaluate and modify their dry-strength and contaminant control solutions to overcome these challenges.

Stay-at-home orders, social distancing guidelines and consumer panic buying have created major irregularities in tissue and towel market dynamics and consumption patterns. These challenges present opportunities for companies like Solenis to help customers adapt and respond.

An increasing number of tissue makers are also producing tissue made from non ood alternative fiber, such as bamboo, hich is not related to the pandemic per se, but it is exacerbating some of the other challenges affecting the industry. Non-wood tissue accounts for approximately 10% of global tissue production. Though more common right no in the Asia acific mar et, non ood tissue will continue to expand across the other regions. In fact, several recently launched direct-to-consumer tissue brands are selling 100% bamboo tissue outside of Asia. This type of tissue is seen as a more environmentally friendly and sustainable alternative. However, non-wood pulps typically contain

Solenis has helped tissue makers optimize wet-end process and coating stability to improve productivity and paper quality. These efforts have led to record machine speeds to meet the unexpected surge in demand. In addition, many customers have leveraged the Solenis OPTIXâ&#x201E;˘ Applied Intelligence adaptive analytics platform to optimize papermaking processes and meet uality targets, with documented success in lowering o -spec tissue production by significantly improving wet tensile target adherence and reducing variability.

PAPERFIRST MAG Autumn 2020

Market trends

higher levels of contaminants, such as silica and fines, hich create an ee coating challenges related to hardness, dusting and abrasiveness. Solenis has partnered with tissue makers to address challenges related to improving softness/hand feel, machine runnability and extending doctor blade life.

PREPARING FOR NEW PAPER TOWEL OPPORTUNITIES

lternative-fiber tissue is seen as more environmentally riendly and sustainable. However, non-wood pulps typically contain higher levels o contaminants, such as silica and fines, which create Yankee coating challenges related to hardness, dusting and abrasiveness.

In the wake of the global pandemic, there is a renewed emphasis on hand hygiene that has resulted in more hand washing and hand drying occasions. Many establishments are also replacing hot and jet air dryers with paper towel dispensers in public restrooms. In addition, experts recommend cleaning and disinfecting high-touch surfaces at least once a day to minimize the risk of COVID-19 transmission via surface contact. All of these trends are driving an increase in paper towel usage and pushing manufacturers to enhance their product requirements. Solenis is well-positioned to help tissue makers produce more â&#x20AC;&#x201D; and higher quality paper to els. ur e tended net or of field professionals and application experts collaborate directly with paper producers to customize solutions to their unique needs. At the same time, our global manufacturing footprint allows us to deliver a variety of et and dry strength products efficiently and cost effectively to any mill, anywhere in the world. Our additives have enabled towel producers in all regions to enhance product quality in the areas of wet strength (for improved durability when used with disinfectants/cleaners), absorbency and scrubbability (to ensure the towel can clean a wider surface area).

THE NEW â&#x20AC;&#x153;NORMALâ&#x20AC;? Post-COVID-19, the world will likely operate very differently. Suppliers must evolve as much as the customers they serve, which is why Solenis is actively working to enhance, e tend and redefine our capabilities to align ith the changing orld. We have an exciting pipeline of new activities planned for the next 12 months and look forward to helping producers navigate through these tumultuous times.

PAPERFIRST MAG Autumn 2020

TECHNICAL INSIGHT 1

Market pulp line conversion to uff pulp line at tora nso kutsk r ill weden

1. Fluff pulp by Stora Enso. 2. Fly over.

Article by Ahti Peiponen, Winder specialist, Bellmer GmbH

Stora Enso converted one of its bale-based market pulp lines into a so t ood u pulp line and increased its u pulp capacity at Skutskär Mill in Sweden. Bellmer as selected as their technology partner.

he 26 million euro investment enhanced uts r ill s profitability and long term competitiveness by increasing uff production by tonnes annually. he mill s total uff pulp capacity after the investment is 415 000 tonnes. “Both hygiene and non-woven products are a fast-growing market. This investment has enabled us to support the growth of our customers and further develop this business together

with them,” states Stora Enso’s Biomaterials Division. Stora Enso’s Skutskär Mill in eastern Sweden is a modern pulp mill that primarily produces uff pulp for diapers, other hygiene products and non ovens, but also pulp for li uid pac aging board and speciality papers. he mill s total annual capacity is tonnes of B pulp, soft ood uff pulp and bleached hard ood birch pulp.

FLUFF PULP “NATURAFLUFF BY STORA ENSO” According to the company, atura luff by tora nso is the idest range of uff pulp grades on the mar et, including a completely chlorine free bleached uff pulp. After the investment, utsr ill no produces tons of uff pulp per year.

3. Stora Enso Skutskär Mill.

PAPERFIRST MAG autumn 2020

TECHNICAL INSIGHT 4

4. Operador desk. 5. Empty spool lifting.

Skutsk r Mill started manufacturin uff pulp in 1969. We have long been the largest manufacturer of this pulp in Europe. In the last couple of years, we have only strengthened our position. Demand for uff pulp is ro in by per cent a year globally,” says enri olm, irector of tora nso uts r ill. tora nso studied the transformation or for four years ith various e uipment suppliers before deciding to carry out the pro ect ith Bellmer. he moderni ation as large and included a ne dilution controlled headbo , ater removal improvements at the ire section, a ne reel and a inder, including complete automation and controls. he reel delivery also included an automatic return system for bringing empty spools bac to the reel spool storage. As this is a s ing dryer machine that can produce both sheets and rolls from pulp, the pro ect included a y over section to pass the eb over the cutter lay boy to the ne reel at the dry end.

■ An automatic core feeding table and pivoting device to load ne cores bet een the drums. ■ ast and accurate automatic slitter positioning for pairs of bottom and top slitters. ■ eparation fingers after the slitting to force the ebs to separate. ■ eb feeding ith vacuum and driven belts. ■ A parent roll transporting system, B ransporter from reel to un inder. An automatic empty reel spool return system was also included. he formation of the uff pulp must be ood and the quality must be just right, since the pulp is used directly in the converter’s end products. hat is hy e needed to make si nificant improvements also to the production line’s wet end. We replaced the wire section and installed a new headbox,” says Henrik Holm. “A key part of the conversion was, however, the new winder, which Bellmer supplied seamlessly in co-operation ith us. ellmer as e ible, as when we had an idea, they were quick to develop it. Solutions emerged smoothly,” says Holm.

TurboWinder by Bellmer Bellmer s scope of the turn ey delivery detailed. It included:

as very

■ Automatic set change ith tape applicators to fasten shipping roll tails to the roll body. ■ A traversing cutting device. ■ eb holders to maintain tension during set change. ■ ffective and reliable eb separation after the slitters, ith t o spreader rolls mounted in an ad ustable frame.

PAPERFIRST MAG autumn 2020

CUSTOMER-FOCUSSED PRODUCT DEVELOPMENT “Effective threading through the winder is crucial for a uff eb due to its thickness 0 m2). We improved the web threading to wind-up section by installing driven belts instead of air blows,” says Bellmer s sales manager Ahti eiponen. “Fluff pulp, winded to the desired customer reel dimensions at the automatic winder, is de-

TECHNICAL INSIGHT 6

6. At the middle Lasse Aspelin, StoraEnso Skutskär, right Frank Schorzmann and Ahti Peiponen from Bellmer.

livered directly to the converting plants manufacturing hygienic products; therefore, Stora Enso only needs to apply medical tape used in hospitals to bind the tails of the customer reels, instead of the typically used hot-melt glue. R&D was required to invent this medicaltape solution, which was successful, and the outcome is that 28 tape dispenser units units do the job required during the automatic set change” says eiponen. “Occupational Safety and Healthy requirements ere fulfilled by takin the necessary measures to avoid excessive noise levels and improve ergonomics,” he adds.

“A PERFECT MATCH” Our main criteria ere that ellmer fulfilled our technical specifications and uarantees, had the right delivery time – and price, of course,” says production manager asse Aspelin. “The targets were to reach several scheduled points, such as the start-up time, rollin test uff pulp the first time and mi in bet een uff and

bale pulp. When the line was ready, we started re ular uff pulp production and periodically in bales in order to fine-tune the inder packin line,” says Aspelin. s this as ellmer’s first modern, ne - eneration reel and winder delivery to a Scandinavian customer, the project was important to us. At the same time, we are pleased to be Stora Enso’s partner in Skutskär as a leading headbox manufacturer,” says yr i trengell, of Bellmer inland y.

STORA ENSO tora nso says its strategy is to support customers to meet consumers demand for sustainable products based on rene able materials. art of the bioeconomy, tora nso is a leading global provider of rene able solutions in pacaging, biomaterials, ooden constructions and paper. tora nso s business divisions are onsumer Board, ac aging olutions, ood roducts and Biomaterials. he Biomaterials ivision offers a ide variety of pulp grades to meet the demands of paper, board, tissue, te tile, and hygiene product producers.

PAPERFIRST MAG autumn 2020

AGENDA A SELECTION OF PAPER INDUSTRY EVENTS AROUND THE GLOBE The current situation might make this agenda fast-moving. Fastmarkets RISI International Containerboard Conference Online event 4/11/20 - 6/11/20 risi.com/icc

CCE International Munich, Germany 9/3/21 - 11/3/21 cce-international.com/2019/english

Paperworld Middle East Dubai, UAE 24/5/21 - 26/5/21 paperworld-middle-east. ae.messefrankfurt.com/dubai/en.html

Paper & Tissue Asia Lahore Pakistan 8/11/20 - 10/11/20 papertissueasia.com

Tecnicelpa International Conference and Exhibition Coimbra, Portugal 10/3/21 - 12/3/21 tecnicelpa.com/tecnicelpa.ciadicyp2020

Zellcheming Expo Frankfurt, Germany 9/6/21 - 10/6/21 zex.mesago.com/events/en.html

Pap-For St Petersburg, Russia 24/11/20 - 27/11/20 papfor.com/en-gb.html

CIADICYP Congress Coimbra, Portugal 10/3/21 - 12/3/21 tecnicelpa.com/tecnicelpa.ciadicyp2020

Paper Viet Nam - New dates Hi Chi Minh, Viet Nam 16/6/21 - 18/6/21 paper-vietnam.com

Paper Middle East Exhibition Cairo, Egypt 17/12/20 - 19/12/10 papermideast.com

Drupa Dusseldorf, Germany 20/4/21 - 30/4/21 drupa.com

LatamPAPER Conference Mexico City, Mexico 16/6/21 - 18/6/21 latampaper.com

Tissue Conference 2021 Online event 12/1/21 - 14/1/21 tissueconference.com

MIAC - Restart Lucca, Italy 21/4/21 - 23/4/21 miac.info

ACCCSA Congress San Jose, Costa Rica 13/7/21 - 15/7/21 acccsa.org

PaperWeek Canada (Virtual) Online event 8/2/21 - 12/2/21 paperweek.ca

TappiCon 2021 Atlanta, USA 25/4/21 - 28/4/21 tappicon.org

Tissue World Europe - New dates Dusseldorf, Germany 21/9/21 - 23/9/21 tissueworld.com/dusseldorf/

Spaper / Smagua Zaragoza, Spain 2/3/21 - 4/3/21 feriazaragoza.com/smagua-2021

PulPaper Helsinki, Finland 27/4/21 - 29/4/21 pulpaper.messukeskus.com

MIAC Lucca, Italy 13/10/21 - 15/10/21 miac.info

ou can find our updated list of events on www.paperfirst.info or aper RS App CONTRIBUTORS AND PARTNERS ABB offers end-to-end solutions for pulping and papermaking to support the entire value chain from woodyard to shipment, from mill to enterprise • www.new.abb.com/pulp-paper AF&PA is the American Forest & Paper Association serves to advance a sustainable U.S. pulp, paper, packaging, tissue and wood products manufacturing industry • www.afandpa.org AFT brings innovative technologies, equipment and services to support our customers in stock preparation • www.aft-global.com Bellmer is a German based company offering all sorts of complete paper machines and board machines for the production of mass papers, specialty papers, packaging grades or board • www.bellmer.com CEPI is the European association representing the paper industry. Through its 18 national associations, Cepi gathers 500 companies operating 895 mills across Europe • www.cepi.org Demag Cranes is one of the world’s leading manufacturers of powerful and reliable industrial cranes, crane components and drives • www.demagcranes.com Domtar manufactures, markets and distributes a wide variety of communication and specialty papers, market pulp and absorbent hygiene products • www.domtar.com FPAC provides a voice for Canada’s wood, pulp and paper producers nationally and internationally in government, trade, and environmental affairs • www.fpac.ca

PAPERFIRST MAG autumn 2020

IBA, the Brazilian Tree Industry association, is reponsible for institutionally representing the planted tree production chain • www.iba.org IPMA, the Indian Paper Manufacturers Association, is a national industry body representing the resurgent and organized face of paper industry in India • www.ipma.co.in Kadant is a global supplier of high-value, critical components and engineered systems used in process industries worldwide • www.kadant.com M-clean is a modular cleaning system for fabrics, belts, and rolls in process industries proposed by Kadant • www.kadant.com/en-us/products/ modular-shower-systems McKinsey is a global consulting firm helping clients strengthen their strategies, operations, and organizations. Its Paper, Forest Products & Packaging division offers extensive expertise in this sector • www.mckinsey.com/industries/paper-forestproducts-and-packaging PAMSA is The Paper Manufacturers Association of South Africa (PAMSA), is acknowledged as the national ‘voice of the pulp and paper industry’ • www.thepaperstory.co.za Pesmel has more than 40 years of experience in delivering solutions that improve material flows and logistics at different types of manufacturing facilities • www.pesmel.com Runtech/Gardner Denver is a reliable partner providing solutions to improve the runnability and efficiency of tissue, board, paper and pulp machines • www.gardnerdenver.com

Siemens through its fiber industry division, aims at making pulp and paper production more environmentally friendly, resource-efficient and profitable • www.siemens.com Smithers is a recognized provider of strategic market research reports, uniting a global network of industry experts and extensive industry knowledge • www.smithers.com Solenis is a chemical company helping its customers improve their profitability by helping them solve their process and water treatment challenges • www.solenis.com STE Analytics is a business intelligence company focusing in mathematical business models and simulation • www.steanalytics.com ThePackHub is a packaging innovation consultancy specialising in the delivery of technical and innovative packaging solutions for brand owners, retailers and packaging suppliers • www.thepackhub.com The Tissue Pack Innovation Lab (TPIL) is a research partner and a source for industry training, hosted by the North Carolina State University • www.ncsu.edu https://research.cnr.ncsu.edu/sites/tissuelab/ Valmet is a developer and supplier of technologies, automation and services for the pulp, paper and energy industries worldwide • www.valmet.com Voith is a global player offering real product solutions that facilitate intelligent, interconnected paper manufacturing • www.voith.com

Equipped to meet tomorrowâ&#x20AC;&#x2122;s needs

Solutions for reliable processes With our automated roll stores and the Demag warehouse management system, we deliver reliable solutions to meet your future needs for the careful storage of paper rolls. Starting with comprehensive simulations, we develop efficient and sustainable logistic process solutions. Leading paper manufacturers rely on proven Demag technology in applications to serve paper machines, roll cutters or in fully automated paper roll stores all over the world.

PaperFIRST Mag #3 - Autumn 2020

Articles inside

Mar et p lp line n ersi n t p lp line by Bellmer

Handling tumultuous times in the tissue and towel market by Solenis

Mist & contaminants be gone at SAICA Champblain by Kadant/M-clean

with virtual sensors by Voith

Adding 30% capacity with little investment by AFT

paper machine by Siemens

Hard data, soft sensors and process expertise by ABB

A digital revolution in logistics by Pesmel

Field services go remote! by Valmet

TECH TALK

GLOBAL CHALLENGES

MILL STORIES

MARKET TRENDS

ill re ased pa a in de el p ilst t e rld still suffers from plastic paranoia?

EDITORIAL

The market for specialty papers in North and South America

Graphic-paper producers: Boosting resilience amid the COVID-19 crisis

THE C-LEVEL INTERVIEW