Vol.19 No. 04
October-November, 2018
Mounting on Mega Investments, Paper Packaging to Continue on High Growth Trajectory...08
Paswara Papers Begins Work on New 400 TPD Kraft Paper and Board Unit ....28 With New & Enhanced Capacities, ITC PSPD set to grow and address existing and evolving needs ....37
C•O•N•T•E•N•T•S
OPINION | PACKAGING
INTERVIEWS
08 Mounting on Mega Investments, Paper Packaging to Continue on High Growth Trajectory
28 Paswara Papers Begins Work on New 400 TPD Kraft Paper and Board Unit
CENTRESTAGE | CIRCULAR ECONOMY
37 14 Lifting the Lid on Coffee Cup Recycling
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With New & Enhanced Capacities, ITC PSPD set to grow and address existing and evolving needs
The Selfridges Story
TRENDING | PACKAGING
18 Going Green On The Go
20 Sustainable Superfood in Sustainable and Safe Packaging
22 Mondi Flexible Packaging “Leapfrogs” Ahead in the Recycling Game
26 How Switching From Plastic to Paper Opened New Opportunities for Bimbo
24 Packaging as Pure as Its Content
40 How Chemicals and Enzymes Became Critical for Papermaking
NEWS • Astron Paper & Board Mill Ltd. Commissions New Plant at Halvad, Morbi ...................................................................................51 • Rubber Trees, a Potential Source of Raw Material for Pulp and Paper Industry? ................................................................................51 • Paperboard Packaging Market Size Likely to Surpass USD 240 Billion by 2024: Report.......................................................52 • Mondi to Invest EUR 340 Million in New 300,000 Tonne Kraft Top White Machine in Slovakia ..................................................54 • Ahlstrom-Munksjö Acquires Caieiras Specialty Paper Mill in Brazil .....54 • ND Paper Plans an Investment of USD 300 Million in US operations...55 • Sappi Launches Verve – Sustainable Dissolving Wood Pulp for a Thriving World...........................................................................56 • Nippon Paper to Sell Its Interests in Daishowa-Marubeni International....56 • Stora Enso and Gasum to Make Renewable Energy From Wastewater in Sweden......................................................................57 • Smurfit Kappa Breaks Ground for New Recovery Boiler at Nettingsdorf Paper Mill......................................................................57 • Start-up of Voith's Two XcelLine Packaging Paper Machines for Sun Paper Set Record .......................................................................58 • Mondi to Discontinue Production of Industrial Bags in Zeltweg ...........58 • Catalyst Paper to Sell Its Mills to Paper Excellence .............................59
O•P•I•N•I•O•N | P•A•C•K•A•G•I•N•G
Mounting on Mega Investments, Paper Packaging to Continue on High Growth Trajectory The mega projects announced recently by JK Paper, Emami, and Naini will add at least 500,000 tonnes of packaging board capacity in premium category, thus matching the pace of forecasted double-digit growth in packaging paper and board, where the demand is slated to reach at 9.7 million tonnes by FY19 growing at CAGR 8.9 percent. APP's plan to add about 1.4 million of packaging capacity in AP if takes off, the production figures of the segment would be even closer to the actual or projected demand.
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O•P•I•N•I•O•N | P•A•C•K•A•G•I•N•G a double-digit CAGR (as is the general perception, and which seems valid too), roughly in the range of 12-15 percent.
Close to double-digit demand growth in packaging paper and board segment was consolidated, to some extent, by the addition of over a million tonne high-end capacity (SBB, SBS, high-end duplex, etc.) by top 5-6 players alone in the last 4-5 years.
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lose to double-digit demand growth in packaging paper and board segment was consolidated, to some extent, by the addition of over a million tonne high-end capacity (SBB, SBS, high-end duplex, etc.) by top 5-6 players alone in the last 4-5 years. All along, medium and small sized mill have been adding significant capacities on the kraft paper front to offset the increasing demand. The momentum is to continue awhile and the mega projects announced recently by JK Paper, Emami, and Naini will add at least 500,000 tonnes of packaging board capacity in premium category, somewhat matching the pace of forecasted double-digit growth in packaging paper and board, where the demand is slated to reach at 9.7 million tonnes by FY19 growing at CAGR 8.9 percent as per a study. APP's plan of about 1.4 million tonne mammoth project in Andhra Pradesh, if realized, will add fillip to bridging the demandsupply gap in remarkably small time frame.
Packaging Paper and Board Growth: More Than It Looks Like In recent 5-7 years, the overall demand growth and growth in actual product i o n h ave h a rd ly b e e n cove re d exhaustively by various official data and figures shown by various research agencies. Nevertheless, considering their stand, the actual production of the Indian paper industry in FY18 stands roughly at over 16 million
tonnes, 4 percent of global 400 million tonnes. Many will contest this figure and peg it at a higher number with their tentative data! Seeing the segment-wise movement, packaging paper and board, growing with highest CAGR, contributes roughly 50 percent of the total production, standing at over 8 million tonnes for FY18. If we closely inspect the official or widely-accepted figures, the demand movement of packaging paper and board segment, though highest, is not a double-digit as claimed by many industry insiders. As per one prominent research agency, demand for packaging paper and board segment is expected to grow at a CAGR of 8.9 percent and reach 9.7 million tonnes in FY19, which actually means that the actual demand in FY18 must be pegged at 8.89 million tonnes. Consequently, with an actual production of over 8 million tonnes, there is a demandsupply gap of about 0.9 million tonnes, which is another paradox if we take the creation of over a million tonne demand annually in the packaging paper and board segment growing with
Why this disagreement? The cause of the duel or contradiction in the estimates is mainly because the sample of the study is not extensive and doesn't cover the actual production figures and capacity additions of many mills and clusters. As is known, in the packaging paper and board segment, the large players focus usually on the high value added packaging paper and boards such as FBB, SBB etc., while the smaller companies address low value added segments such as kraft paper and board. Essentially, the packaging paper and board segment is witnessing the fastest growth figures, both in terms of demand and capacity creation, more probably at a double-digit. However, to corroborate this doubledigit CAGR, we have to canvass exhaustively all small and mediumsized mills making low-end board and karft paper, apart from big mills p ro d u c i n g h i gh - e n d p a c k a g i n g boards, because both demand and production figures appear to be brisk and vigorous towards the lower-end of the segment. Also because, the Indian market has only recently started showing its preferences toward packaging, and the orientation is more toward quantity than quality. Having said that, the growth in the high-end packaging can't be discounted and is even brisker than the lower-end!
In recent 5-7 years, the overall demand growth and growth in actual production have hardly been covered exhaustively by various official data and figures shown by various research agencies.
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O•P•I•N•I•O•N | P•A•C•K•A•G•I•N•G
The cause of the duel or contradiction in the estimates is mainly because the sample of the study is not extensive and doesn't cover the actual production figures and capacity additions of many mills and clusters
Recent Capacities: Displaying Remarkable Growth In the last 5 years, the high-end packaging board has seen some 1 million tonne capacity addition led by the giants of the Indian paper industry, viz. ITC, TNPL, Emami, Century, and few others. Karft paper and board segment too witnessed a swift capacity addition, much more than in the high-end board and valueadded duplex board variety. As per the available figures, for the overall packaging paper and board segment, growing at CAGR 8.9 percent, the demand is expected to reach 9.7 million tonnes in FY19. Standing at actual production of over 8 million tonnes today and with recent mega projects worth over 500,000 tonnes announced by JK Paper, Emami, and Naini along with ongoing fast capacity additions in small and medium-sized karft and duplex board mills, the demand-supply gap is going to be minimized much beyond what it's now. Besides, if the initial reports of APP setting up close to 1.4 million
tonnes (of packaging grade capacity in Andhra Pradesh in the next 2.5 years) is to be believed, the total packaging segment capacity in India would realize a never-seen-before height and the demand-supply gap would drop down drastically to a manageable level. Moreover, if we work these figures (as reported by various market research agencies) on the premise that actual production in India is always lower than the actual demand, the figure of total expected demand in FY19, viz. 9.7 million tonnes is again a bit lopsided or erroneous as the actual production even now seems to be way b e yo n d t h e p ro j e c te d d e m a n d . Roughly 60 percent of the production
within the packaging paper and kraft segment is contributed by kraft mills o r l ow- e n d p a c k a g i n g p ro d u c t manufacturers, which comes to be around 5.8 million tonnes of overall 9.7 million tonnes demand. If we consider two large kraft producing clusters, such as Morbi-Vapi in Gujarat and Meerut-Muzaffarnagar in UP, the production easily crosses 5 million tonnes (based on Paper Mart's own calculation and corroborated by leading mills in these areas), which glaringly questions the expected demand figure. Matter-of-factly, the expected demand, actual demand, actual production, and CAGR, all are on the higher side than what appears in most of the research and surveys. The figures on the higherend packaging side seems commensurate with or close to the actual ground figures as the data collection is easy with large mills (which are few and wide), for instance, the demand of board to be around 4 million tonne out of 9.7 million tonne in FY19.
Growth Driving Factors: Unceasing and To Gain Further Momentum Packaging segment and its growth have given the Indian paper industry much needed breather when the growth was slackening on account of W&P and newsprint facing severe growth rate retardation in the past. A number of factors such as increased urbanization, requirement of better quality packaging of FMCG products marketed through organized retail,
Essentially, the packaging paper and board segment is witnessing the fastest growth figures, both in terms of demand and capacity creation, more probably at a double-digit.
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O•P•I•N•I•O•N | P•A•C•K•A•G•I•N•G
The figure of total expected demand in FY19, viz. 9.7 million tonnes is again a bit lopsided or erroneous as the actual production even now seems to be way beyond the projected demand.
and increasing preference for readyto-eat foods have catapulted the growth of the paper packaging segment to what it is now. T h e n e w s u s t a i n a b i l i t y d r i ve n approach to adopt products which are leaving the least environmental footprint has given yet another push to paper-based packaging. Greener planet and the concept of eco friendliness is now inspiring people and businesses alike to give a fresh look at the paper, which till recent times faced mordant criticism on account of being anti-forest, which was not true at all. The consumer companies are now increasingly replacing their hazardous packaging alternatives with paperbased packaging. This trend is to give tremendous marketing edge to the paper-based packaging in times to come. Online and off-line retail marketing popularized the concept of distanceshopping, which warranted the safety precautions for the good to be sold, bought and transported at distance, and which necessitated the use of packaging, mostly paper based. Moreover, e-Commerce has organised the retail market substantially, which also is reason to adopt uniform and standard packaging practices giving a fillip to packaging requirements. It will further increase! The e-commerce space in India, over the last few years, has grown undoubtedly, it is yet to achieve the potential as has happened in other countries and there is immense unexploited potential. Digital literacy and internet
penetration is yet to reach its optimum and the market opportunities is yet to be capitalized. For instance, the e-retail market in China is 40x the size of the eretail market in India.
A number of factors such as increased urbanization, requirement of better quality packaging of FMCG products marketed through organized retail, and increasing preference for ready-to-eat foods have catapulted the growth of the paper packaging segment to what it is now.
Matter-of-factly, the expected demand, actual demand, actual production, and CAGR, all are on the higher side than what appears in most of the research and surveys.
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C•E•N•T•R•E•S•T•A•G•E | C•• I R•C•U•L•A•R E•C•O•N•O•M•Y
Lifting the Lid on Coffee Cup Recycling Coffee culture is thriving, with many of us purchasing multiple on-the-go drinks of our favourite caffeine pick-me-up each day, leading to an estimated 3 billion coffee cups being used annually, but only a fraction of these being recycled.
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ritain's use of take-out coffee cups and how consumers dispose of them is an issue that has long been discussed within the industry. Over recent weeks though, debate surrounding the impact of disposable cups on the environment has taken centre stage within the mainstream media with James Cropper's CEO Phil Wild being interviewed about its CupCycling™ solution on national news programmes. Coffee culture is thriving, with many of us purchasing multiple on-the-go drinks of our favourite caffeine pick-me-up each day, leading to an estimated 3 billion coffee cups being used annually, but only a fraction of these being recycled.
James Cropper has developed the technology to recycle disposable paper cups on a commercial scale, and it has played an integral role in the creation of a supply chain for disposable cups by partnering with waste management companies, coffee chains and restaurants, enabling cup waste to be turned into beautiful papers.
The Selfridges Story In a pioneering environmental move, Selfridges is championing the collection of used cups from its retail stores and offices and handing them over to James Cropper to upcycle them into beautiful paper for the store's iconic yellow carrier bags.
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ritish retailer Selfridges is well known for pushing boundaries and setting global trends. A winner of awards for its innovative approach to sustainability, the department store has been focusing on buying better and inspiring change. In a pioneering environmental move, Selfridges is championing the collection of used cups from its retail stores and offices and handing them over to James Cropper to upcycle them into beautiful paper for the store's iconic yellow carrier bags in a completely unique closed-loop recycling solution.
“Sustainability is one of our key values at Selfridges – it's a part of our strategy and a really important part of our heritage. We call it 'Buying Better, Inspiring Change' and it's about how we can encourage our team members and our buyers, but also our customers, to buy better and really make the world a more positive place.
The paper for Selfridges bags now combines fibre from coffee cups with wood pulp from sustainable forestry sources, and is aligned with Selfridges' commitment to
“In our stores we've got 23 different coffee outlets and they create a huge amount of coffee cup waste, so we were looking for a solution. James Cropper devised a process
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proactively tackle environmental issues with initiatives within its retail stores. Abby Chicken, sustainability manager at Selfridges said:
C•E•N•T•R•E•S•T•A•G•E | C•• I R•C•U•L•A•R E•C•O•N•O•M•Y
Coffee culture is thriving, with many of us purchasing multiple on-the-go drinks of our favourite caffeine pick-me-up each day, leading to an estimated 3 billion coffee cups being used annually, but only a fraction of these being recycled. CupCycling™ by James Cropper is the world's first recycling process dedicated to upcycling take-away cups.
Britain's love of takeaway coffee shows no signs of diminishing, so it's vital that it looks to reduce the environmental impact of disposable cups. However, it must be recognised that coffee cups are well designed for their purpose and are absolutely recyclable if disposed of in the correct way.CupCycling™ is a working example of the circular economy in action and how collaboration between businesses can lead to successful outcomes for both industry and the environment. The Environment Audit Committee's (EAC) estimate that just one in 400 cups are disposed of correctly isn't a problem
rooted in technology, but one that comes down to a lack of sufficient infrastructure and consumer education. James Cropper has developed the technology to recycle disposable paper cups on a commercial scale, and it has played an integral role in the creation of a supply chain for disposable cups by partnering with waste management companies, coffee chains and restaurants, enabling cup waste to be turned into beautiful papers. CupCycling™ is a working example of the circular economy in action and how collaboration between businesses can lead to successful outcomes for both industry and the environment.
In a pioneering environmental move, Selfridges is championing the collection of used cups from its retail stores and offices and handing them over to James Cropper to upcycle them into beautiful paper for the store's iconic yellow carrier bags in a completely unique closed-loop recycling solution. The paper for Selfridges bags now combines fibre from coffee cups with wood pulp from sustainable forestry sources, and is aligned with Selfridges' commitment to proactively tackle environmental issues with initiatives within its retail stores.
that address the issues we face and creating something really beautiful and long-lasting.
whereby they can upcycle our waste coffee cups into our own carrier bags – and that's hugely exciting for us.
“We're really pleased with the end product – we've now got the iconic yellow Selfridges bag with the same colour and same durability, but with that CupCyclingTM logo on it that tells a story for our customers and enables us to be a part of something that's really radical.
“What really attracted us to James Cropper is their alignment with Selfridges' values. It's an historic British brand, but in the 21st century they're looking at radical solutions
“It's been fantastic working with the team at James Cropper and together we have created a solution that solves a problem and creates something much more beautiful at the end of it.”
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C•E•N•T•R•E•S•T•A•G•E | C•• I R•C•U•L•A•R E•C•O•N•O•M•Y
CupCycling™ is a working example of the circular economy in action and how collaboration between businesses can lead to successful outcomes for both industry and the environment.
The processes required to recycle these cups are already in place, but to meet the EAC's 2023 ambition for all single-use coffee cups to be recycled, Britain requires continued investment in nationwide recycling initiatives. Britain needs to build on the platform that has already been created so it can collectively instil a change in consumer habits and tackle a longstanding environmental concern. Coffee cups provide a rich source of high quality material, which James Cropper is able to upcycle into a wide range of useful products, including luxury packaging. Seeing this go to waste on a huge scale is what led it to invest in and develop its CupCycling™ technology which is only one of only two facilities in the UK with the capability to recycle coffee cups. Working with Veolia waste management, the company has established cup collection stations within high street restaurants and retailers such as Costa, McDonalds and Selfridges. The cups are delivered to the mill and, using the
Costa cofee cups received for CupCyclingTM.
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The secret to a more sustainable future for coffee cups lies in a collective commitment across society – from consumers, retailers, waste management companies, local authorities, the Government and beyond.
technology, the polyethylene lining and paper are separated before the paper fibre is rescued and turned into fine papers. James Cropper is using this process to upcycle coffee cups into luxurious papers such as the iconic yellow Selfridges bags and the Extract paper range for specialist paper merchant G . F Smith. For example, each sheet of 380gsm Extract paper contains 5 used coffee cups, and with 10 colours to choose from designers can order the exact sheet quantities required for creative projects from stock. Despite the CupCycling™ facility's capability to upcycle 500 million cups per year, at the moment James Cropper is using a fraction of its capacity. The secret to a more sustainable future for coffee cups lies in a collective commitment across society – from consumers, retailers, waste management companies, local authorities, the Government and beyond. Investment in improved infrastructure will ensure a more joined-up approach,
C•E•N•T•R•E•S•T•A•G•E | C•• I R•C•U•L•A•R E•C•O•N•O•M•Y
The cups are delivered to the mill and, using the technology, the polyethylene lining and paper are separated before the paper fibre is rescued and turned into fine papers. leading to a greater level of cups being disposed of correctly and given another life. Once, the mill received a single cup in the post from a coffee lover keen to ensure their morning latte didn't leave a mark on the planet. This demonstrates that an enthusiasm for recycling is very much present among consumers, but confusion around how best to do so remains. James Cropper is using CupCycling™ process to upcycle coffee cups into luxurious papers such as the iconic yellow Selfridges bags and the Extract paper (in photo) range. Each sheet of 380gsm Extract paper contains 5 used coffee cups, and with 10 colours to choose from designers can order the exact sheet quantities required for creative projects from stock.
It shouldn't cost the price of a stamp to recycle a coffee cup. It should become standard practice – something we do without thinking – and we're confident we can achieve this. All we need is for consumers, corporations and supply chain developers nationwide to wake up and smell the coffee. Are you ready? n
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T•R•E•N•D•I•N•G | P•A•C•K•A•G•I•N•G
Going Green On The Go Answering to the packaging needs of a growing market for takeaway food, Metsä Board's new eco-barrier paperboard offers a sustainable and cost-efficient option.
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t the offices of OffsetKolmio Oy, a printing house situated in Hämeenlinna, Finland, the company's Managing Director Kimmo Jokinen has laid out a selection of test packages printed on MetsäBoard Pro FSB EB1 eco-barrier paperboard, including popcorn and taco boxes. Complementing Metsä Board's product range of PE extrusion coated paperboards, the new board is completely non-fossil based, recyclable and biodegradable, a true eco-product for the growing food service sector. OffsetKolmio, a family business celebrating its 50th anniversary this year, is Metsä Board's long-time partner for testing and trial runs. The company has found the eco-barrier paperboard to offer real advantages at the printing and converting stage. “We have been able to reduce the print costs without compromising the quality or barrier properties of the board. Print machine time for barrier treatment was reduced by 50%, and 65% less varnish was needed thanks to the special barrier treatment of the board,” Jokinen says. Previously, when converting paperboard for food service use without this special pre-treatment on the reverse side, OffsetKolmio had to apply two layers of varnishing
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to reach the targeted barrier properties against grease, while the eco-barrier requires only one additional layer, with a minor amount of coating. This results in significant savings with regards to the resource efficiency of the production process, further contributing to the sustainability of the product.
Optimal solution The first packaging in commercial use to showcase an additional competitive quality of the eco-barrier paperboard is a baguette pack used by a Finnish artisan bakery, Huovisen Leipomo. Previously, the bakery used PE-coated board in its packaging, which was originally developed for products requiring also moisture resistance. This resulted in condensation forming inside the pack, making the baguette soggy and unappetizing. The breathable eco-barrier paperboard, however, keeps its form and preserves the product better. “The new board is perfect for providing sufficient protective barrier properties in cases where it is unnecessary to use PE-coating. For example, for many takeaway fast food and bakery products that only remain in contact with the packaging for a short while. They are
T•R•E•N•D•I•N•G | P•A•C•K•A•G•I•N•G
Considering potential applications, Metsä Board sees that the new board is well-suited for use in the fast food market, for packaging foods such as hamburgers, chips and nuggets. According to Metsä Board's Mikko Mannola, VP Sales, Food Service Board, the company has high expectations for its first eco-barrier product.
usually packed in boxes made of PE-coated board, or board with wax, for no specific reason,” Jokinen points out.
“There is considerable demand in the market for a barrier solution that combines both sustainability and efficiency benefits. Our fully recyclable and biodegradable eco-barrier board comes with a grease resistance of KIT level 5. Depending on the customer's needs, the barrier properties can be cost-efficiently improved up to KIT level 12 at converting,” Mannola says, adding that Metsä Board's focus is on broadening its product portfolio and continuing development work on further innovative barrier solutions. n (Source: Mesta Board Magazine)
Sustainable Superfood in Sustainable and Safe Packaging Insects are considered a common element of human nutrition in many regions around the world. In Europe, too, snacks and dishes made of arthropods are becoming popular. No wonder given the fact that they are rich in nutrients, beneficial to the environment and efficient to breed. Zirpinsects, the manufacturer of ZIRP insect snacks, packs its dried mealworms, grasshoppers and crickets in a sustainable folding carton made of Metsä Board's fresh fibre board – for a natural, sustainable and consistent product presentation.
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nsects are the new superfood and are particularly rich in proteins, unsaturated fatty acids, vitamins and minerals. On top of their health benefits, insects are a sustainable food source requiring less energy and water to grow compared to traditional livestock. One of the pioneer brands in MetsäBoard FBB Prime 230 g/m2 excelled in terms of sustainability and efficiency as well as food safety and design.
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T•R•E•N•D•I•N•G | P•A•C•K•A•G•I•N•G the market is ZIRP, produced by Zirpinsects. Zirpinsects has carried out numerous consumer tastings that have shown more than 90 percent of the participants loved the subtly nutty flavour. “We designed insect illustrations for the product communication,” shares Simon Hagleitner, Art Direction and Design, at Zirpinsects. “We want to attract the consumers' attention and encourage them to choose these still slightly unusual products.” To reach its full potential, even the best product should come in packaging that presents it appropriately and authentically, reflecting its characteristics and communicating them to the potential buyer both verbally and implicitly. “We believe insects can make a considerable contribution to conserving natural resources,” says Christoph Thomann, founder and CEO of Zirpinsects. “If you want to communicate this message to consumers in a credible way, the product's packaging must also meet highest environmental standards.”
Both sustainable and efficient: Metsä Board's fresh fibre paperboards The packaging design team chose MetsäBoard Prime FBB 230 g/m2, a paperboard made from fresh fibres that offers compelling properties, particularly with regard to sustainability, efficiency and food safety. The fresh fibre boards, made of fibres coming from sustainably managed northern European forests, are lightweighted, which means that less raw material, energy and water are consumed, and less weight is transported and it produces less waste in the end of the packaging value chain. Depending on the available local recycling facilities it can be recycled, making an important contribution to the circular economy. In addition, it is naturally pure and therefore particularly safe for food packaging.
design and sustainability benefits: In this case it was used 'inside out' providing a natural organic feel on the outside, whereas the multi-coated reverse side is ideal for printing, e.g. product information and recipe ideas. As the carton is produced 100% glueless, it is easy to open and offers sufficient space for detailed text on the inside. This eliminates the need for an additional information leaflet, saving even more resources. After its use, the carton can be folded f lat, thereby minimising the waste volume. Gerlinde Gruber, Packaging Designer, was impressed; “I was particularly surprised at how easily the paperboard can be folded. The design is also attractive. We are happy to have found the perfect partner to pack ZIRP.” n
MetsäBoard Prime FBB offers both
(Source: Mesta Board Magazine)
Mondi Flexible Packaging “Leapfrogs” Ahead in the Recycling Game After almost four years of development, Mondi and Werner & Mertz will introduce a new, patented innovation in 2019: a 100-percent recyclable pouch with detachable decorative panels. The pouch replaces conventional flexible packaging for Frosch products.
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he pioneering design overcomes many shortcomings of the recycling process and is the result of a joint effort by Werner & Mertz, Mondi, EPEA Switzerland (Cradle to Cradle®), Der Grüne Punkt – Duales System Deutschland and Institut cyclos-HTP. In 2014 Werner & Mertz decided to develop packaging that is recyclable in the fullest sense. This was before most fast moving consumer goods (FMCG) companies viewed a commitment to sustainability as an indispens-
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able building block for brand equity. Several packaging suppliers told them it could not be realised. Then they met Mondi. The project was truly ambitious. It was not about developing flexible plastic packaging that is only theoretically recyclable – packaging likely to end up in landfill. Rather, the design aim was to “reverseengineer” the recycling process: to create packaging fit for every stage of the recycling process.
T•R•E•N•D•I•N•G | P•A•C•K•A•G•I•N•G
The challenges of true recycling
A crucial and often neglected step in the recycling process is sorting. Failure to sort the collected packaging into material streams that recyclers can use leads to down-cycling – that is, the production of recycled material no longer suitable for its original application. “If you want to avoid a 'garbage in, garbage out' scenario,”explained Immo Sander, Head of Packaging Development, Werner & Mertz Group, “the entire value chain must be aligned – from packaging producers through players in sorting and recycling to buyers of recycled material.” This is the aim of the Recyclate Initiative that Werner & Mertz launched in 2012.
A giant leap: a pouch with detachable decorative panels
A final touch was added to solve the issue of recycling printed plastic materials. The pouch has two layers. “We dress the pouch up in an eye-catching 'outer garment' that is printed with brand design on the front and consumer info on the back,” said Sander. “When the pouch is empty, we 'undress' it automatically by shredding and sorting the two components into separate recycling streams.” The patented pouch is now 100-percent recyclable. The material is of course free of glue or adhesive. Spout and cap are also made of polyethylene – which means the recycled material will be equivalent in quality to the original material. n (Source: Mondi Group)
Packaging as Pure as Its Content Packaging with organic appearance is seen as the new premium – to such wide extent that some brands are copying the organic look also for products that are not organic
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on't judge the book by its cover, they say – but is that really marketable when it comes to packaging? Actually not, it is on the contrary. Based on the Stora Enso's study, consumers really evaluate packaging to understand what's inside, so packaging is important help for consumers to pick the right kind of products for their needs. Consumers today are aware of the surrounding world and how it affects their everyday lives. They care about their
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health and about the environment, and their way of influencing it is through their consumption habits. With that in mind, it is no wonder that consumers crave organic food as people tend to think that organic is automatically linked to sustainability. Matching the packaging with what's inside helps them identify the food they want. Also, organic packaging communicates that its content is healthier and better for you than the
T•R•E•N•D•I•N•G | P•A•C•K•A•G•I•N•G organic appearance is seen as the new premium – to such wide extent that some brands are copying the organic look also for products that are not organic. It could be plastic bags designed to look like matte, rustic brown paper and artisanal illustrations. The criteria for truly natural packaging are a smart design and solid material made from renewable natural resources. In addition to these more functional characteristics, it also needs natural design – mute colours, rough surface rather than smooth, paperboard material, simple and plain packaging. To attract the consumer, packaging with organic appearance should deliver the feeling of unprocessed nature.
Based on the Stora Enso's study, consumers really evaluate packaging to understand what's inside, so packaging is important help for consumers to pick the right kind of products for their needs.
average ones. “I would spend more money if only I could be sure that it's real bio food,” an average German consumer said. As a result of this trendy way of thinking, packaging with
So what insights to bring from this in to your new packaging design strategy? Develop packaging that is as pure as its content, and based on renewable natural material. Due to many consumers' lack of knowledge and confusion about organic, communicating the natural origin of the packaging is even more important in reaching the consumers. n (Source: Stora Enso)
How Switching From Plastic to Paper Opened New Opportunities for Bimbo Smurfit Kappa and Bimbo held an Innovation Day to fully understand Bimbo's goals and through a collaborative process, developed a corrugated solution.
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imbo, the world's largest baker faced three challenges in their efforts to streamline their supply chain. 1. Improve the plastic tray return cycle to reduce production line stoppage time. 2. Improve product protection during long-distance transport. 3. Meet retailer demand to move to shelf ready packaging. Smurfit Kappa and Bimbo held an Innovation Day to fully understand Bimbo's goals and through a collaborative process, developed a corrugated solution. The corrugated trays are the same size as the existing plastic trays enabling Bimbo to substitute with limited disruption to the supply chain. Bimbo's new trays are also fully branded to enhance product visibility on the shelf. The corrugated trays resulted in a 95% reduction in warehouse space so that Bimbo can respond quickly to peaks in demand while saving 50% in shipping and
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The corrugated trays are the same size as the existing plastic trays enabling Bimbo to substitute with limited disruption to the supply chain.
distribution costs. The new design also functions as shelf-ready packaging enabling Bimbo to apply branding and promotion messages quickly and easily. n
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Paswara Papers Begins Work on New 400 TPD Kraft Paper and Board Unit After commissioning its first 400 TPD multilayered kraft paper plant in 2016, Paswara Papers Ltd. started working on a new kraft paper and board unit, whose first phase of 40,000 tonnes to start commercial production in December 2018. The overall project of 140,000 tonnes annually is expected to be fully commissioned in 2020. After completion of the new project, the combined capacity of the company would stand at over 265,000 tonnes annually. Notably, the company is exporting more than 70 percent of its produce from the plant commissioned in 2016.
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aper Mart recently interviewed Mr. Arvind Kumar Agarwal, Chairman & MD, Paswara Papers Ltd and Mr. Vinod Agarwal, Director, Paswara Papers Ltd. on the latest developemnts at the company and the new project. Excerpts:
Paper Mart: Brief us about Paswara Papers Ltd and the multilayer Kraft mill that you commissioned in 2016. Vinod Agarwal: Paswara was started in the year 1984. We started with the manufacturing of strawboard with a capacity of 10 TPD. The strawboard was used in making bangle boxes in Firozabad, UP. Thereafter, in 1990, the group installed machinery in the same place for manufacturing media kraft paper with a capacity of 10 TPD. After the m a c h i n e s a n d te c h n o l o g y we n t obsolete, we decided to stop the production on the two machines in 2016. The company envisaged a mega Greenfield Project in the year 2012 under the Uttar Pradesh Udyog Nivesh Nidhi. In 2014, we signed an MoU with the UP Government in UP Investors' Conclave at New Delhi to establish a mega project with an investment of INR 400 Cr. The project was completed in 2015 while the commercial production began in October 2016. This probably is the swiftest execution of a project in India which gave us a stateof-the-art multi-layered karft paper mill, equipped with the latest equipment from around the globe. The manufacturing capacity of the mill is 400 TPD, making us one of the biggest multi-layer kraft paper mills in India. The unit in the coming times will also produce white-top coated multilayer kraft liner for packaging of garments, pharmaceuticals, food products, and such other products used in daily life. The 70 percent of the production is being exported to countries like China, Malaysia, Canada, and Sri Lanka.
PM: Is it true that Paswara is investing in yet another project at the site?
Mr. Arvind Kumar Agarwal (right), Chairman & MD, Paswara Papers Ltd and Mr. Vinod Agarwal, Director, Paswara Papers Ltd.
VA: Yes! We are going to invest INR 400 Cr in under the 2017 scheme of Uttar Pradesh Udhyog Nivesh Nidhi. An MoU has been signed in the month of February (2018) with the current CM of Uttar Pradesh. Mr. Narendra Modi, who was also present at the Investors' Summit, emphasized the fact that investors must commission projects as soon as possible. The UP Government has approved only a few (around 4-5) such projects; Paswara is one among them. The work on the project is already underway, and an investment of about INR 30 Cr has already been made. We will initially make MG kraft paper and kraft board, about 40,000 tonnes per annum, whose production would hopefully begin by December 2018. Soon after realizing this production, we would start working on making around 100,000 metric tonnes of high RCT paper by the year 2020. Arvind Agarwal: In other words, the new project is divided into two phases and the total capacity is planned to be 140,000 TPA. The 40,000 TPA of production (for MG kraft paper and kraft board), which was locked for the first phase, has been started with an investment of INR 30 Cr. The commercial production for the first phase will start by December 2018. In the second phase, the remaining 100,000 TPA of capacity for high RCT kraft paper will be generated. The second phase will come to closure by 2020. It may be possible for us to increase the investment or add more capacity during that time.
Our total capacity will become 265,000 MT per annum after the completion of the new project. The discussions for benefits are ongoing with the State Government. The concessions from the Govt. include reimbursement of GST on a quarterly basis. The government has been a huge help throughout the project, who directed the officials to resolve project related issues immediately when reported by the people involved in the mega projects.
PM: Can you specifically tell us about the technology that you have installed in the new mill? VA: The plant that came into operation in 2016 was equipped with high-tech machinery, mostly imported from China but based on the best and latest European technologies. We are happy with the machine as we are able to make some of the best quality kraft paper, which our international buyers are quite satisfied with. In the pulp section, we have installed three poly disc filters which are an useful addition, quite helpful in fiber recovery. The process water from paper machine, passing through the poly disc filter via side hill screen, results in recovery of valuable fibers to be reused. Though these filters are a bit costly, recovered fiber compensates that by decreasing the total manufacturing cost. Also, the fiber waste will not go in the water stream, where maximum pollution is caused by the fiber particles. Moreover, this technology has helped us achieve the zero liquid discharge.
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Coming to the environment, I would say Paswara is one the most committed players on the front. We have a wellfunctioning, two stage ETP in place with pre-primary and primary t re a t m e n t m e c h a n i s m s f o r t h e eff luents from the mill. The water quality after the treatment is flawless and we use 100 percent treated water back in our processes, even in high pressure showers. Moreover, for curbing air pollution, we have installed an electrostatic precipitator (ESP) in our 6 MW captive power unit to filter and remove fine particles, like dust and smoke, from a flowing gas. On the automation side too, we are not behind. Machines are based on DSC and PLC, and the manual intervention in mill is minimal. There are some semi-automation based technologies in our existing mill, but we have decided to replace them with fullautomation based technology. In the new mill too, we are going to go fullyautomated. I am glad to share that we are working in sync with the most updated technologies for the pulp and paper mill.
PM: Tell us about the quality of the kraft paper that you are making in the new mill. VA: As far as multi-layer kraft paper goes, our quality is truly at par with our international peers, one reason why we are exporting over 70 percent of our
produce. We can even export 100 percent, but to cater to the needs of the Indian market is also important to us. Therefore, we are supplying 30 percent of our production domestically. Our exporting strength vindicates we are making products of international quality. We are making high strength multilayered kraft paper. It has a total of three layers with colored top layer. People demand a golden yellow color which is good for printability and makes the surface smooth. The GSM range of the kraft paper we make is 125300 GSM. Our machine, however, is capable of making paper up to 400 GSM. But the market demand is from 125-300 GSM. Besides, the BF range of the paper is 18-35.
PM: How have you been preparing yourself to make paper that meets RCT based specifications? AA: The BF and GSM concepts were popular in the Indian market up till now. Gradually, as the international markets only work on the RCT based paper, the Indian market is also adapting to the trend. India will see this trend becoming the norm in the coming years. The foreign countries have high-speed machines and so does Paswara Papers. It is therefore easy for us to export most of our material as we conform to the quality standard requirements of the international
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customers. The other mills in India are not able to export much, couldn't install high tech machines and construct a well-established mill because they lack true technical knowhow, which we are good in.
PM: Can you be a bit specific about the demand based quality difference between India and overseas countries? How do you cater to such demands? AA: Earlier, we were working according to the Indian quality standards. As soon as we opened our products for the export market, we started receiving international inquiries and visitors from abroad. The buyers from abroad came and stayed with us for quite some time in order to help us develop the quality they desire. They developed the quality of our products according to their requirements. The way they helped us in the quality development process really amazed us. We thought of producing the same quality products for the Indian market too. The moment we started exporting our products, we targeted to position our mill up to the level of the international mills and that we eventually did. Today, we can happily say that we have one month advance orders. We now don't cater to the Indian and international market separately. We rather started covering the international market with our international quality which
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automatically benefitted the Indian market.
PM: How did the international customers help you in the quality development? AA: The international customers stayed with us and participated in evolving our production process. Many of our customers visited our mill and stayed for 3-5 days -- helping us with the setting of the pulp section; guiding us thoroughly about how to do cutting and packing of the paper; telling us how many joints should be there in a roll; and what should be the diameter of the roll. We used to make rolls with smaller diameters as machines in the Indian mills are smaller in size. The international machines, on the other hand, are much bigger producing rolls with big diameters. They directed us to increase the dia size and made the packing as per their own specifications. Moreover, these customers taught us other things as well such as the loading of the containers be done in their
supervision. After the loading of the containers, the batch of goods was dispatched. It has now been more than four months since we began dispatching their orders. Had they not been satisfied, they wouldn't have made the repeat orders. The order repetition means your product has gained momentum in the market. This learning from international customers has really helped us improve our working. They educated and informed us about the things we weren't aware of previously. Besides, they paid us 30 percent more than what we usually get from the Indian market. That's why we agreed for the alteration in our production process. Nevertheless, it has ultimately benefitted us.
PM: Where are you exporting right now? Also, tell us about demand growth in the packaging sector? AA: We are exporting to China, Malaysia, Sri Lanka, and many other places. Someone from our team has also gone to the UK for meetings. So, we
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may soon export to the UK as well. There is a lesser number of mills in the UK but the country has a vast number of corrugators. Our existing capacity has already been booked. The proposed capacity will be supplied to the UK for sure. Although we are trying to set our business in the UK, we cannot dilute our current markets. We have to create a balance within our businesses. In India, we are supplying our products to big names like Bikaner and Patanjali. After entering the export market, we realized there is a humongous demand in packaging and it is increasing every day. The packaging material is used in everything. Paper is fast replacing plastic. Thus, we see a big push in the demand in the packaging sector. Every year the packaging paper demand is increasing by 15 percent. The person who is putting the latest technology and maintains his infrastructure neatly will be successful in the export market. The buyer will only buy from you when he is completely satisfied with the production process of your mill.
I•N•T•E•R•V•I•E•W to compete well in the market. This is a buyer-driven market, so volume plays a big role. The countries that used to import paper from China are now facing a shortage of paper because of China's wastepaper import ban. We are now targeting these countries – the countries which we never explored in the past. We would try to enter those markets and develop them more in future.
PM: Tell us about the raw material scenario at Paswara Papers.
PM: Will the export market remain consistent as it is now apparently? What do you think? VA: The selling price in the market is fixed. We have to work according to the market and its demand. We need to see
how to decrease the input cost and reduce the overall cost of production. The reduction in cost will happen when we will work on the economies of scale. That's why we have put a 400 TPD plant in which the cost of production and running costs are to be less enabling us
DSP
VA: We import the wastepaper as well as use the domestic material in our mill. We import the wastepaper because of its quality; the fiber of imported wastepaper is stronger than the domestically available one. After using strong fiber in our products, we are able to make the quality equivalent to that of international standards. The ratio of the imported and domestic raw material is 50:50.
SINCE - 2001
CONSULTANCY & ENGINEERING
Corporate Office: 42/4, N.S.C. Bose Road, Tollygunge , Kolkata - 700040 Ph. No.: +9133 2411 0061, Mob. No.: +918420795712 Email - banerjee.debasis69@gmail.com, dsp_consultancy@yahoo.com
Works: 696, Baltukri, Naskar para, Thana- Jagacha Howrah - 711 402, West Bengal, INDIA Ph. No.: 82320 35208
www.dspconsultancy.org
www.papermart.in / October-November, 2018 | 35
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With New & Enhanced Capacities, ITC PSPD set to grow and address existing and evolving needs
Mr. SN Venkataraman, Div Head – Marketing, ITC-PSPD
ITC-PSPD recently commissioned a new virgin fiber based paperboard facility at Bhadrachalam (Telangana) and a décor paper machine at the specialty papers unit at Tribeni (West Bengal), both adding significant capacities in their respective segments. These capacity additions are poised to further strengthen ITC's share in the market and enable it to introduce new grades in sync with growing applications and emerging requirements in the market. The company considers the present time opportune for capacity expansion. www.papermart.in / October-November, 2018 | 37
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r. SN Venkataraman, Div Head – Marketing, ITC-PSPD talked to Paper Mart on ITC-PSPD's priorities, recent expansions, and product development keeping in view the present growth phase of the industry. Excerpts:
There are a few global developments worth mentioning, for instance, China taking a big step in becoming more environmentally responsible and restricting imports of several grades of wastepaper. This has had an impact. The overall commodity cost of fiber and pulp has increased along with fuel and chemicals, resetting the prices in most of the geographies. I think the industry can now look forward to a period of sustainable growth, with some challenges in managing costs.
Paper Mart: Tell us about the new developments at ITC-PSPD in particular and the industry in general. SN Venkataraman: The quarter beginning September 2017 has seen a revival in the demand for packaging boards after the earlier disruption caused by demonetization and GST. As far as the paper industry is concerned, with GDP picking up to 8 percent growth level, almost all sectors are doing well. We are present in many sectors – folding carton paperboards, graphic paperboards, specialty papers and writing-printing papers. As far as the demand side is concerned, these sectors are doing quite well now. In order to address this growth we have recently increased our virgin paperboard capacity at Bhadrachalam. We have also commissioned a new décor paper machine at our specialty paper unit at Tribeni and the machine is running to capacity. We have increased our supply of print base and surfacing grade of papers to the laminate industry, powering its growth.
PM: Please tell us about the Omegabev and Omegabarr products and how these products have become more pertinent considering their overall environmental impact. SNV: We have these products with us since the year 2013. A lot of R&D has been done on these products, which were slightly ahead of the times. Now with the increasing focus on plastic waste management and move towards higher recycling, and further towards composting, these products have become more significant and important. If we are considering a closed loop in the consumption of packaging material, especially with food service chains, canteens, large events such as musical concerts, sport tournaments, and festivals, I think Omegabarr and
We Make
B nd
PAPER
Stronger
RAGHAV Industrial Products ANMOL POLYMER
PRODUCT PORTFOLIO
Anmol Group Of Companies An Ultimate Solution For Pulp & Paper Chemicals
Anmol Polymers Pvt. Ltd. 1014/T-2, Pearls Omaxe Tower, Netaji Subhash Place, Ring Road, Pitampura, Delhi - 110 034 (India) • Tel.: 91 11 4733 5500-30 •Email: info@anmolpolymers.org, anmolpolymers1014@gmail.com, raindpro@gmail.com
www.anmolpolymers.org
38 | www.papermart.in / October-November, 2018
New
Pulp Mill Chemicals
Tissue Chemicals
For pulping of wood and agricultural residues.
Chemicals can be supplied for all the applications on tissue machine.
Wet End Chemicals
Enzymatic Solutions for Pulp & Paper
For preparation of stock for paper machine.
Catalysts for enhancing various process in pulping & paper making.
Surface Sizing Chemicals
Water Treatment Chemicals
At the size press for improving the printability.
For treatment of raw water and effluent.
De-Inking
Defoamers
For making pulp from recycled fibre.
To eliminate the undesired foam generated during paper making process
I•N•T•E•R•V•I•E•W Omegabev would be ideal. Omegabev is a virgin fiber based board with a bio-based barrier coating exclusively made for cups and Omegabarr is a fully coated Folding Box Board (FBB) with special bio-based barrier coating. The bio-based barrier coating makes these products completely biodegrade under composting conditions. Omegabev and Omegabarr should be the ideal choice for such needs, where they can be collected on site and composted. The collection mechanism for the used packaging is also coming under increasing focus. Even municipal corporations collect directly or authorize various agencies for the collection , recycling and final disposal of waste. We definitely think the market for such biobased and biodegradable products will grow, especially with environmentally and socially responsible brands. We are working with such brands today and through recycling agencies to support collection and final recycling and composting of packaging and food waste
PM: Your thoughts on the challenges and opportunities for the packaging industry on the market side! SNV: The challenge right now is to keep pace with the demand. Concerns on food safety and regulations on packaging and plastic waste, also throw up challenges and open up opportunities. The personal care, food & beverage and pharma sectors continue to grow and evolve, creating new packaging formats. Increasingly, supply chains are getting digitalised with emphasis on traceability and interface with mobile devices, requiring integration of the package. Sustainability continues to be a driving force and paper-based packaging will play an even larger role. Emerging regulations especially with respect to management of waste presents an opportunity for innovation both on the product front and in the ecosystem of segregation, collection and recycling. When managed well this can also address the issue of urban litter and provide livelihood opportunities
ITC's presence in food grade packaging is perhaps the longest in India with many pioneering products. Our Bollaram unit is making such products for quite some time and we were able to develop, working closely with customers, a new product called 'Indobowl'. This product is an extension of earlier products and has gone through rigorous tests to meet packaging requirements of typical Indian food in order to be kept in hot conditions for a longer while. The product is ideal for liquid based food too to avoid spillage. Related to the food services, we have also developed a food wrap paper ”Wrapwell”, with barrier and a kit value range of 4-12 to meet diverse requirements for foodservice and bakery segments
PM: What is the raw material scenario at ITC? Are there some new initiatives by ITC for the raw material security? SNV: On the raw material side, we have become the first Indian mill to set up a mechanical pulp mill. ITC-PSPD commissioned India's first Bleached Chemi Thermo Mechanical Pulp mill at Bhadrachalam in 2017. That's a big advantage for us going forward. Now that we have a secure supply of good quality mechanical pulp, we are confident that our entire FBB series can be developed even further. We have already revised the specifications last year with appreciable improvements in key parameters like caliper (7-8 percent), and stiffness (15 percent).
PM: Tell us about the R&D of ITC at paper side. How do you develop new grades of paper based on some emerging applications? SNV: Our primary R&D is focused on the fiber, plantations and yield. On the market side, we work on broad areas of : improving functional properties, graphic reproduction, better runnability and adding barrier properties. The adaptation of a product to deal with applications is a continuous process and a key differentiator which enhances our engagement with our customers. Based on our customer engagement and our study of trends, we identify projects and form teams which work on a charter and specified outcomes. For instance, we developed our barrier boards when we saw a surge in the food and beverages industry to change their packaging to paper from plastics.
www.papermart.in / October-November, 2018 | 39
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How Chemicals and Enzymes Became Critical for Papermaking
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aper Mart conducted a joint interview with Mr. Arvind S h a r m a , M D, A n m o l Polymers Pvt. Ltd. and Mr. Sagar Sharma, Director, Anmol Polymers Pvt. Ltd. to know the chemical business of the paper industry and how the company is helping it overcome many quality and yield optimization issue with chemicals and enzymes. Excerpts:
Paper Mart: First share with us the journey of Anmol Polymers Pvt. Ltd. as a manufacturer of specialty chemicals for the pulp and paper industry.
From left: Mr. Shiva Sharma, Director; Mr. Arvind Sharma, MD; Mr. Anurag Sharma, Director; Mr. Sagar Sharma, Director, Anmol Polymers Pvt. Ltd.
Growing with the Indian paper industry, Anmol Polymers Pvt. Ltd. has evolved some of the most diverse chemical and enzymatic ranges aimed at complete processes of pulp and papermaking, starting from pulp making to paper manufacturing and water treatment. Joining hands with global leaders like Novozymes and others, the company is busy expanding its product portfolio and market across globe.
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Sagar Sharma: Anmol Polymers, established in the year 1990, started with the manufacturing of chemicals for the paper industry. During that time, we had a limited range of chemicals which evolved over a period because of our continued association with the pulp and paper industry and its growing demands. We now produce a full spectrum of chemicals for the paper industry including pulping, paper making chemicals, and water treatment solutions. We have two manufacturing units in Himachal Pradesh – Anmol Polymers Pvt. Ltd. and Raghav Industrial Products. Raghav Industrial Products is a sister concern of Anmol Polymers, set up in 2006 for AKD manufacturing. We constantly remain in the quest of new products and are trying to indulge multinational partners and suppliers
I•N•T•E•R•V•I•E•W to bring the latest technology to the paper industry. Arvind Sharma: We started the business as first generation entrepreneurs without any prior experience in the paper industry. At the outset of our business, the Indian paper industry's scale of operations was quite small with only few mills having a capacity of 200 TPD and the rest falling in capacity range 30-50 TPD. The production systems and processes were also far from being sophisticated and technology oriented. Our focus remained quality control and we developed some effective indigenous solutions that later became import substitutes, bringing the prices down drastically and benefitting the industry.
PM: Do you have any plan for expansion, inorganic or organic? Or, maybe market or product expansion plans? AS: We are now planning to expand and export our chemicals to Africa, the Middle East, and other countries. Recently, we have joined hands with some partners in the Middle East. In this venture, we are planning to manufacture paper chemicals in Egypt and the commercial production is slated to start within this year itself. The response is quite good because we have already supplied them a few containers for trial purpose. It has been well accepted. The production may start by October end or early Nove m b e r. It w i l l b e c a l l e d a s Greentech Middle East. It is for a whole range of chemicals.
PM: You have a paper mill in Ethiopia. Please tell us about that. SS: The unit in Ginchi, Ethiopia was started in 2009 and the machine was imported from Europe. We started with a small machine with a production capacity of 45-40 TPD and haven't increased the capacity yet. We are scaling up the unit to 80 TPD. The grades being produced in the unit are writing-printing and kraft paper. We also have plans to increase our product range and enter into specialty grades.
AS: There are some factors that attracted us to start a facility in Ethiopia. First, Ethiopia had just one paper mill and that too under govt. control, making the rebuild of obsolete technology difficult because of redtapeism. Second, the countr y's population being around 100 million, there was a big gap in demand and supply. The total paper requirement at that time was more than 100,000 tonnes per annum whereas the local production was hardly 10,000 tonnes. We started this project with a secondhand machine from Europe. As on date, this mill is the largest paper mill in Ethiopia.
PM: As a supplier of a range of chemicals for different pulp and papermaking stages including water treatment, kindly update us about some of your vital products used by the industry in large quantities. SS: We started with sizing chemicals and are developing ourselves with time in other chemical ranges. The chemicals for pulping applications like cooking and defoamers are being produced by us. There are chemicals for size press applications and de-inking as well. In the year 2002, Anmol started producing chemicals with Novozymes (then known as Biocon). We started developing enzymatic solutions and became the pioneers to start off enzymatic applications for the Indian paper industry. Right now we are able to produce enzymes for the four process segments, viz. starch modification, deinking, refining, and drainage. Our focus lately has grown on water treatment chemicals and we are trying to develop enzymes for effluent color removal, which is the need of the hour. With our partners, we have been able to get some good results overseas, but we are yet to bring this product to India. On the pulping chemicals side, we are developing few chemicals to reduce the bleaching chemical cost and increase the pulp yield. The Indian paper industry doesn't operate on a huge
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scale, so there is a pressure to reduce the production cost through other alternatives. Anmol Polymers Pvt. Ltd. is putting constant efforts to develop products to help reduce the production cost of paper.
PM: What about the international partners you are working with? Brief us about them. SS: We have partnered with Denmark based Novozymes, the world's largest enzymatic solution provider. We are working with them to develop the deinking and de-coloring enzymes. We are also planning to bring coating chemicals range in tie up with a Korean company.
PM: When reducing chemical consumption has become an utmost environmental requirement for the pulp and paper manufacturers, how do you think they can achieve this and still not compromise with the paper quality? SS: There was a time when the consumption of chemicals was very high. However, of late, some good companies have entered the market with extremely efficient products, working on the same line as Anmol Polymers. There are few efficient chemicals where we've been able to work as a catalyst to bring them to the market and these products are performing really well in the paper industry. AS: We are trying to bring some innovative solutions to the Indian industry according to its own set of challenges. The scarcity of fiber is one of the main challenges. For instance, the quality of fiber coming from agricultural residue is different. We overcame its inherent shortcomings by developing some chemicals to take care of the problems that the agricultural residue-based pulp mills normally face. Besides, our company is tr ying continuously to bring down chemical consumption. Earlier, most of the chemicals were used in the wet-end and stock preparation. We are now gradually shifting the focus on our
I•N•T•E•R•V•I•E•W chemicals to be used in size press so that the water circuit is clear and the chemicals going out of the mill stops. Through these measures, the mills are concentrating more on high retention of fiber and chemicals in order to reduce chemical consumption and loss of fibre. Moreover, the optimum dosage and application of chemicals at the right position is vital. We are trying to change this according to the conditions and requirements of plant. By now we can say that we are near to our targets and our progress is steady and visible.
PM: Water is very crucial and the industry is water intensive. Do you have some solutions for the effective reuse of discharged water back in processes? AS: We are providing some chemicals to the paper industry to maximize their water usage through recycling. Most of our customers, especially in the kraft industry, are producing paper with totally closed loop system, using less quantity of fresh water. They believe more in recycling of the water. But recycling has certain issues. After repeated reuse, the water gets contaminated. The wastepaper already has so many impurities which create issues like slime and foul smell. We are providing some solutions which take care of these issues and increase productivity. The solutions also help the system to get cleaned. The paper mills are able to recycle water a couple of times more than the usual. SS: Flocculants are being used to bring down the hardness of water. These flocculants are high charged cationic polymers. We are working on this concept as well.
PM: How do you maintain the constancy in the quality of chemicals? Please explain about your in-house R&D facilities and procedures therein, in brief. SS: I joined the company three years back. I noticed some inconsistency in few of our chemicals. We chose to act on the complaints, which we received
from our customers about the inconsistency in chemicals. We started working on this issue and with time we improved our facility in terms of production by installing some crucial automation processes. Among our quality control processes, the main thing is the quality control lab, where we have well qualified chemists equipped with the cuttingedge testing equipment. Right now we are focusing a lot on R&D for the quality and consistency of chemicals. If the quality is not consistent, we will never get the optimum results at the customer's end. We are dispatching every chemical after thorough and rigorous testing in labs. The record till now has been really great. We are not getting any further complaints and the chemical consistency is pretty good.
PM: The industry faces challenges when it comes to doing the proper use of chemicals. How do you work with the industry to help them use the chemicals in the right way? SS: Our industry is essentially a service provider to the paper industry. We have specifically positioned our teams at different sites so that if any problem arises, our representative should be there within 24 hours to solve the issue. These application teams are assigned to all the customers we have. The team is there to take note of right dozing of chemicals; to see if the product goes at the right flow; and also to check that the right application is there. Using a chemical is a different thing but using it at the right point is very important which our rich and experienced application team takes care of. AS: We have a team of paper experts. There are seven paper technologists, with a vast experience ranging from 2050 years, to help the papermakers in getting right solutions. Most of our big customers are having a dedicated team on site, who are monitoring their dozing system around the clock. We don't only supply chemicals but help our customers to overcome their regular issues.
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PM: You have been serving the pulp and paper industry for long. Please elaborate on the trends of chemical usages in the pulp and paper industry. SS: We have been in this industry for almost 26 years. The chemical consumption patterns have progressively changed in the industry. The scale of operations of paper mills have undergone considerable changes, from 20-30 TPD to 200-400 TPD, and accordingly the nature, quality, and quantity of chemicals have also changed noticeably. We have developed chemicals which are good enough for modern high-speed machines. It is important that the chemicals are able to fulfill their purpose on high-speed machines, huge deckle size, and fast processes with lesser retention time. The retention time of the chemical is very important. There are chemicals that require large retention time but certain chemicals perform very well in less time. AS: I am associated with the pulp and paper industry since 1976, i.e. almost 42 years. In the last 40 years, the Indian paper industry has totally transformed itself from very small scale of operations to now sizeable scale. With this transformation, the role and nature of chemical usage have also undergone tremendous change. Earlier availability of resources like water and fiber was not under so much pressure which is now the case. The mills therefore could not think chemicals as a vital ingredient for papermaking because of abundance of raw material as no one cared for fiber retention or quality control. However, things has now changed and the industry knows that resource optimization is indispensable. Around 10-15 years back, the paper made was yellowish and used to get brittle with passage of time because of paper's acidic pH level. Now, most of the mills are producing at neutral or alkaline pH levels. In alkaline pH, the brightness is more because they can use cheaper and good fillers like calcium carbonate. Paper surface
I•N•T•E•R•V•I•E•W properties and printability are even better now. Even if you keep the papers for years now, there will be no yellowness or brittleness in the pages. This is a major change. Secondly, the primary focus now is to produce maximum pulp out of wood or agricultural residue. That's why mills now want to reduce the usage of hazardous chemicals like caustic or sulfate. Instead, mills are using some surfactant or other soft chemicals to increase the pulp yield, and at the same t i m e , t h e h a z a rd o u s b l e a c h i n g chemicals can also be reduced by using some chemicals. Today, the use of chemicals has become relatively important aspect in contrast to yesteryears.
PM: What are your future goals as regards to overall chemical business in general, and the Indian
pulp and paper industry in particular? AS: We always want to stick on our first principle – cost effective and quality products to the paper industry. We are under the process of improving ourselves. Looking at the international scenario, we are trying to associate ourselves with some of the reputed multinationals globally. In India, the market is growing at around 10 percent. The paper industry's growth in western world is not as encouraging as it is in India. The business of reputed global chemical players has squeezed in and they are eying the Indian market. We are joining hands with them and trying to serve the industry with some better products. SS: The paper industry in India looks extremely positive. Going by the statistics the per capita consumption has gone up by 10 percent in the year
2017-18. Looking at the future, I think we have a good scope for the paper industry in India. It is important that customers should interact with us and tell us about the solutions they want us to develop. We are also producing some chemicals for kraft paper mills such as chemicals for anti-cracking purposes and for increasing the RCT value in kraft papers.
PM: Would you like to add anything? AS: In India, we have tried our best to produce some indigenous solutions for the paper industry. In recent years, the tissue industry has started to come up. Till now, there was no Indian company manufacturing tissue chemicals and we are the first one to produce some such chemicals in India. We are today producing a full range of tissue chemicals, sharing 30 percent of our kitty.
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C•A•S•E S•T•U•D•Y
New Industry Challenges Demand Indian Paper Companies Undergo Transformation The Indian paper industry has enjoyed rising revenues and profits in recent years. However, these gains have not been evenly shared among the top players. A new study by Kanvic Consulting finds Indian paper companies must act now to transform themselves to overcome the growing challenges of increasing imports, rising commodity prices, and intensifying digital disruptions.
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n air of optimism has surrounded the Indian paper industry in recent years as the industry has continued to grow, with domestic demand rising from 12.8 million metric tons (MMT) in 2013 to 17 MMT in 2017 at a CAGR of 7.35%. All major paper product segments have seen growth over this period, with particularly impressive performance in paperboard & packaging and speciality papers. This has also been reflected in the revenues and net profit of leading companies, which have grown at a CAGR of
4.2% and 13.48% respectively. The average EBITDA margin among the top 37 paper companies now stands at 17.76%, up from 14.2% in FY 2015. Rising demand for paper can be attributed to a number of key factors. Across the board, rising disposable income is increasing both direct and indirect paper demand. In line with this, the country's rising literacy rate has increased demand for books and textbooks. In addition, India's booming e-commerce and retail sectors have accelerated consumption of paperboard & packaging, whilst growing concerns about plastic packaging and the recent plastics ban in Maharashtra has resulted in a transition to paper-based alternatives. Furthermore, premiumisation is driving industry growth as consumer product companies seek to differentiate themselves through higher quality packaging, requiring more premium papers. While demand has been steadily increasing, favourable conditions have been further improved by the falling prices of the key input - waste paper. Since China imposed a ban on the importation of waste paper in 2017, the global price has fallen over 6%. Indian paper companies have further benefited from the tight supply scenario as incremental demand has outstripped incremental supply in each of the past seven years and the gap is forecast to increase further through to 2021. As a result, the industry's capacity utilisation rate has increased and now stands at 86%
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C•A•S•E S•T•U•D•Y Looming Challenges Although growth still remains robust for Indian paper companies, the Kanvic report finds that the industry faces three key challenges. Firstly, imports pose a growing threat to the competitiveness of Indian paper producers as they are growing at a faster rate than domestic demand. This has been driven by imports from large integrated paper mills in the ASEAN region operating at greater economies of scale. In addition, these companies have benefited from a Free Trade Agreement signed in 2014 removing most import duties. While the Indian paper industry continues to lobby for change regarding the duty structure, it seems likely that Indian players will have to contend with the rising threat of imports for some time.
Winnings, Not Evenly Shared Despite favourable conditions in the paper industry, gains have not been shared evenly. New analysis of the performance of top Indian paper companies since 2015 by Kanvic Consulting has identified four distinct performance-based groups. Fewer than half (46%)of paper companies are classified as Outperformers, growing their revenues at above the industry median as well as improving profitability. While 31% of companies are classified as Squeezers, growing below the industry median but still increasing profitability. However, 17% of paper companies are Strugglers who have grown below the industry median and also seen their profitability decline. Lastly, the remaining 6% of companies are Laggards who have had above median revenue growth but watched their profits fall. This analysis shows a clear need for the majority of Indian paper companies to improve performance to realise the benefits from the favourable market scenario. Furthermore, with new challenges looming for the Indian paper industry, even past Outperformers will need to revisit their strategies to ensure future success.
Secondly, the steady rise in commodity prices is increasing production costs for Indian paper mills who generally rely on captive thermal power plants. This is significant as energy costs typically account for 13% of Indian paper mills cost compared to only 8% for international players. The recently imposed ban on the use of pet coke as a fuel will also increase costs for many players. Furthermore, rising oil prices also increase the already high transportation costs for paper. The third challenge for Indian paper companies is the fastemerging digital revolution which is poised to bring about a radical change in an industry which has been historically slow to adopt new technologies. The deployment of low-cost sensors, cyber-physical systems like robotics and cloud computing are combining to bring about major productivity gains. As progressive paper companies adopt digital technologies they will become more agile and be able to reduce costs, putting pressure on laggards to remain competitive. Many paper industry customers such as FMCG players are at a more advanced stage of the digitalisation journey. Therefore, they increasingly demand that suppliers integrate seamlessly with their digitally enabled supply chains - accelerating the pace of digital transformation across the industry. Finally, the Kanvic report also finds that the rise of digital is also poised to disrupt current industry boundaries. For example, they point out that leading global paper equipment manufacturer Voith recently launched merQbiz; a global marketplace for buying and selling waste paper. Such moves have the potential to displace existing intermediaries in the waste paper business as well as concentrating ownership of valuable market data.
Transform to Succeed Through extensive experience and study of the paper industry in India and globally, Kanvic has identified 4 key areas where Indian paper mills must transform to succeed in this changing environment. These are strategic thinking, manufacturing excellence, marketing orientation and digitalisation.
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C•A•S•E S•T•U•D•Y Furthermore, Indian paper companies must bring greater marketing orientation to their business by gaining a better understanding of their real customers, developing more effective customer targeting and shedding the commodity mindset. Historically Indian paper manufacturers have been detached from their customers due to the influential role of dealers. However, as paper customers become larger and more organised, the industry structure will gradually shift. Those companies that move early to gain a deeper understanding of customer needs and build stronger relationships will gain advantage.
When it comes to strategy, Indian paper mills need to identify where and how to compete and optimise their product portfolio to maximise profitability. Through a disciplined focus on categories and customers where there they have a clear and sustainable competitive advantage, paper companies can build a strong value proposition and capture pricing power. In addition to this, Indian paper companies must transform their manufacturing operations by benchmarking with the best externally, adopting lean practices and upgrading, engaging and encouraging innovation from their people.
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Finally, firms that act on the clear opportunities presented by digital will be best placed to outperform their industry peers in the next act for the Indian paper industry. There is huge scope for digitalisation, in manufacturing, logistics, procurement, marketing, and sales. For example, companies can reduce costly unscheduled downtime through real-time monitoring of machinery via IoT devices and then leverage Artificial Intelligence to give alerts on when to perform preventive maintenance. In light of the emerging challenges and opportunities in the Indian paper industry, it is clear that companies that take concerted action to transform themselves today in strategy, manufacturing, marketing, and digital will be best placed to outperform their industry peers in the years to come. n
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Astron Paper & Board Mill Limited Commissions New Plant at Halvad, Morbi The company commenced commercial production of kraft paper on PM-2, located at Halvad (Morbi), Gujarat, and having installed capacity of 33000 tonnes/year. October 15, 2018
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stron Paper & Board Mill Limited is currently operating at almost 90% capacity utilization of its PM-1 located at Halvad, Gujarat with installed capacity of 96,000 tonnes per annum. With the commencement of commercial production for the new line PM-2, the installed capacity has increased by 33,000 tonnes/Year. In the last one year, the company has acquired two plants. The acquired plants include plant located at Bhuj, having capacity of 24000 tonnes/Year, which was acquired by auction from Union Bank of India in December, 2017 and commenced commercial production in February, 2018. The company also acquired Balaram Papers Pvt Ltd, located at Mehsana, having installed capacity of 21600 tonnes/year. As on date, the company is having installed capacity of 174,600 tonnes/year. Astron reported strong sales in the first 3 months of FY19 at Rs.81 Cr, up 60% YoY. For the full year FY18, the company
As on date, Astron Paper & Board Mill Limited is having installed capacity of 174,600 tonnes/year.
reported Rs.254 Cr, up 37% over FY17. EBIDTA for the first 3 months of FY19 has been Rs.11 Cr, up 61% YoY on the back of better efficiencies and higher volumes. n
Rubber Trees, a Potential Source of Raw Material for Pulp and Paper Industry? Fibre length is an important criterion for pulp and paper production. This necessitates different breeding approach if the objective is pulp and paper production from the rubber tree. October 17, 2018
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ore than seven lakh hectares is under rubber tree plantation in India. Currently, rubber growers are facing difficult times with decline in rubber prices, reduced returns and high labour costs. New developments in rubber science can help farmers overcome these problems to a certain extent. Recently, scientists from the Rubber Research Institute of India, Kottayam have taken initial steps towards breeding dual purpose rubber clones. They have studied wood properties variation and heritability of 11 progenies obtained from crossing superior latex yielding rubber clones which are cultivated on large scale. The wood characteristics like fibre length, fibre diameter, lumen diameter and thickness of fibre wall determine structural, physical and chemical properties of wood. So information on their genetic control and heritability becomes vital in planning tree improvement programmes.
Based on this study and other existing information, scientists are confident they can manipulate wood traits suited to for pulp and paper production.
Based on the results of this study, scientists have concluded that there is a positive genetic relationship between rubber tree growth traits and fibre diameter as well as fibre wall thickness.
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N•E•W•S Therefore, selection for good growth vigour could lead to improved fibre traits. However, they also state that fibre length was negatively correlated to tree growth. Hence, it may not be possible to simultaneously attain vigorous growth and longer fibres, researchers have reported in the study published in journal Tree Genetics & Genomes. Fibre length, however, is an important criterion for pulp and paper production. This necessitates different breeding approach if the objective is pulp and paper production from the rubber tree. “If not as a sole source, fast growing rubber clones can be a potential source for pulp and paper industry, which has not been exploited so far,” explained Dr Narayanan Chaendaekattu, who led the research study. In order to use rubber wood for paper and pulp, there is a need to sort out latex depositing issue on the pulp. This might need an interdisciplinary research.
Based on this study and other existing information, scientists are confident they can manipulate wood traits suited to for pulp and paper production. “As factors like flexibility coefficient and the Runkel ratio in rubber wood have good heritable nature, we can definitely work on it. This would require a dedicated long-term breeding programme, which we have already initiated at our institute,” he added. In addition, the conventional method of developing clones through hybridization and selection in rubber trees is a longterm programme. “We expect stable and consistent results in the long run and there is no short-cut,” said Dr Chaendaekattu. This research highlights the significance of tree breeding programmes for improving productivity and it also necessitates the need for understanding the basics before initiating tree breeding projects aimed at increasing productivity. (Excerpts from an article ‘Breeding dual purpose rubber trees' in the Hindu Business Line). n
Paperboard Packaging Market Size Likely to Surpass USD 240 Billion by 2024: Report The segment will grow at an exponential CAGR of over 8.5 percent from 2017 to 2024. October 10, 2018
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onsidering products, the paperboard packaging market is bifurcated into containerboard and boxboard. The manufacturing process of containerboard is done on modified paper machines as they have the ability to handle superior grammages. Boxboard segment is additionally bifurcated as white lined chipboards, solid bleached boards, solid unbleached boards and folding boxboards. The white lined chipboard segment will surpass USD 30 billion by 2024. Considering application, paperboard packaging market is segmented into medical, non-durable goods, durable goods, food & beverages and others. The others segment includes machineries and industrial goods. Development in food & beverage industry, and increasing packed food consumption will positively influence the paperboard packaging market. It is one of the fastest growing segment and will exhibit growth with CAGR of over 8 percent in the forecast spell. Paperboard packaging market is classified on the basis of region where Asia Pacific held a significant share in 2016 and is set to surpass USD 175 billion by the end of the forecast period. Rising industrial activities and developing cosmetic, electronic and food & beverages industry is set to fuel the regional paperboard packaging market demand. Europe market will exhibit growth at a decent rate in the predicted period due to
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Paperboard packaging market is classified on the basis of region where Asia Pacific held a significant share in 2016 and is set to surpass USD 175 billion by the end of the forecast period.
the developed market in this region paired with the supportive governmental norms. China is one of the leading packaged food manufacturer with huge bakery, processed food, sauces, dressings, and baby food production. In 2016, China packaged food market was valued over USD 275 billion and is poised to grow at a significant rate in the forecast period. Increasing consumption of such packaged food & beverages by consumers in the emerging countries due to rapidly changing lifestyles will positively influence the paperboard packaging industry in coming years. n
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Mondi to Invest EUR 340 Million in New 300,000 Tonne Kraft Top White Machine in Slovakia The start-up is expected towards the end of 2020. The machine will produce a new and unique environmentally sound containerboard grade, kraft top white. October 15, 2018
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aving recently obtained the necessary permitting, Mondi is proceeding with the investment in a new 300,000 tonne per annum kraft top white machine at Ruzomberok (Slovakia), with start-up expected towards the end of 2020. Commenting on the project, Mondi Group CEO Peter Oswald said, “This investment provides an exciting opportunity for Mondi to leverage our cost advantaged mill in Slovakia to complement our portfolio and serve a growing market with innovative and sustainable containerboard solutions.” The machine will produce a new and unique environmentally sound containerboard grade, kraft top white, which combines the strength, printability and appearance benefits of a white virgin fibre top layer with the economic advantages of a recycled fibre bottom layer. Its access to integrated bleached hardwood pulp production, scale and location benefits due to its brownfield nature will provide this machine a cost advantage difficult to replicate. Kraft top white will target the growing white top liner markets for applications such as shelfready packaging, point of sale displays, customised packaging, e-commerce, consumer durables and other specialised applications. The related pulp mill upgrade at the same site is progressing according to plan with start-up expected in late 2019. This upgrade will debottleneck pulp production by 100,000 tonnes
The total project cost has been revised to EUR 340 million (up from EUR 310 million), as a result of refinements to the machine's technical concept and higher construction costs since the project was initially scoped.
per annum, which will be integrated into the containerboard production once the new machine ramps up. The total project cost has been revised to EUR 340 million (up from EUR 310 million), as a result of refinements to the machine's technical concept and higher construction costs since the project was initially scoped. Group capital expenditure continues to be in line with our previous estimate of EUR 700-800 million per annum in 2018 and 2019. n
Ahlstrom-Munksjö Acquires Caieiras Specialty Paper Mill in Brazil EUR 98 million acquisition significantly strengthens Ahlstrom-Munksjö's offering in South America and provides further growth opportunities. October 18, 2018
agreement was announced on April 24, 2018.
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The Caieiras product offering is an excellent match for Ahlstrom-Munksjö with 80% of sales being in line with the company's current portfolio. The plant gives access to local production of decor paper, thus strengthening AhlstromMunksjö's offering and partnership with existing customers, who have so far relied on imports.
hlstrom-Munksjö has completed the acquisition of MD Papéis' Caieiras specialty paper mill in Brazil for a debt free purchase price of about EUR 98 million. The acquisition significantly strengthens Ahlstrom-Munksjö's offering in South America and provides further growth opportunities. The acquired business had net sales of about EUR 76 million and comparable EBITDA of EUR 12 million in 2017. Annual synergy benefits of up to EUR 6 million are estimated, mainly arising from optimization of overlapping businesses. The
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Ahlstrom-Munksjö is already a global leader in tape materials, serving both local and global customers and this position is further strengthened through the acquisition. In addition,
N•E•W•S production and delivery capabilities as well as competitiveness are improved by combining Caieiras with the company's operation in nearby Jacarei. Daniele Borlatto, EVP of Industrial Solutions Business Area, comments: “The Caieiras business is an excellent addition to our global platform, and drives our ambition to maintain a leading position in selected niches of the global fiber-based solutions market that offers growth. Our existing as well as new specialty paper customers will benefit from a stronger offering coupled with our well-established excellent customer service. "This transaction is another significant milestone in the execution of our strategy. I welcome the Caieiras employees to Ahlstrom-Munksjö." Ahlstrom-Munksjö operates three plants near Sao Paolo, employing over 700 people with revenues of approximately of EUR 200 million following the acquisition. n
Ahlstrom-Munksjö is already a global leader in tape materials, serving both local and global customers and this position is further strengthened through the acquisition.
ND Paper Plans an Investment of USD 300 Million in US operations The company plans to build two Greenfield recycled pulp plants to support global fibre strategy. October 9, 2018
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D Paper plans to build two Greenfield recycled pulp plants to support global fibre strategy. The company will invest USD 300m into its newly acquired US mills in Biron, Wisconsin and Rumford, Maine in the next two years. ND Paper, the newly formed U.S.-based subsidiary of Nine Dragons Paper Holdings Ltd. that has mills in Rumford and Biron, Wisconsin, is the largest containerboard producer in Asia. In June 2018, Nine Dragons acquired Catalyst's US mills Biron and Rumford for a total transaction price of USD 175m. Immediately after completing the purchase, ND Paper launched a strategic review of investment options and developed an investment strategy that diversifies the US mills' product mix and increases their overall production capacity. The Rumford Division will receive an injection of USD 111m to finance two significant projects: 1). construction of a greenfield recycled pulp facility with a capacity of 1,200 air dried metric tonnes per day (admtpd), and 2). installation of a shoe press on the R15 paper machine to increase the machine's production capacity by approximately 20 percent. The mill currently has a capacity to manufacture 550,000 tpy of coated mechanical and woodfree paper on 3 PMs. Furthermore, the facility can produce 120,000 tpy of hard- and softwood pulp. As a result of the investments announced, the number of staff at the mill will go up from currently 650 to 700 in the next two years.
In June 2018, Nine Dragons acquired Catalyst's US mills Biron and Rumford for a total transaction price of USD 175m. Immediately after completing the purchase, ND Paper launched a strategic review of investment options.
At the Biron Division, ND Paper will invest USD 189m in several projects such as conversion of the B25 paper machine from LWC to containerboard; construction of a two-line greenfield recycled pulp facility will a capacity of 1,900 air dried metric tonnes per day (admtpd); and construction of a water treatment and fibre recovery plant, a package boiler to provide energy, storage facilities for raw materials and a finished good warehouse. These measures will create 27 new jobs, bringing the total staff number at the site to 377. The Biron mill currently has a capacity to produce 340,000 tonnes a year of LWC on two PMs. n
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N•E•W•S
Sappi Launches Verve – Sustainable Dissolving Wood Pulp for a Thriving World Demand for DWP continues to grow as consumer preference increases for products made from renewable, sustainably sourced and processed woodfibre. October 5, 2018
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uilding on its reputation for quality, service and responsibility, Sappi moved to strengthen its leadership in the dissolving wood pulp (DWP) market with the launch of the Sappi Verve brand. Demand for DWP continues to grow as consumer preference increases for products made from renewable, sustainably sourced and processed woodfibre. As a significant producer of DWP over the past decades, Sappi today produces close to 1.4m tons per annum, enjoying a significant 16 percent share of the DWP market. Sappi continues to invest to ensure customers are able to meet demands for sustainably grown and responsibly processed dissolving wood pulp. The majority of dissolving wood pulp is consumed in the viscose industry where pulp is converted through the value chain to yarn and ultimately textiles providing naturally soft, breathable fabrics which is smooth to the touch, hold colour well and drape beautifully. DWP cellulosic fibre is also used for a myriad of household, industrial and pharmaceutical applications including for tablets, personal hygiene, cellophane, washing sponges etc.
As a significant producer of DWP over the past decades, Sappi today produces close to 1.4m tons per annum, enjoying a significant 16 percent share of the DWP market.
In the past, DWP sold by Sappi was unbranded and industry generic names were used as product names. This did not reflect the specific benefits which has always differentiated Sappi's DWP. The new Sappi Verve brand creates a very specific identity within the DWP market. n
Nippon Paper to Sell Its Interests in Daishowa-Marubeni International Nippon and DNAC have agreed to sell their 50% interest in Daishowa-Marubeni International Ltd. (“DMI”), to Mercer International Inc. October 8, 2018
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ippon Paper Industries Co., Ltd. and Daishowa North America Corporation (“DNAC”), a wholly owned subsidiary of the Company, announced that they have agreed to sell their 50% interest in Daishowa-Marubeni International Ltd. (“DMI”), to Mercer International Inc. In 1969, Nippon Paper Industries and Marubeni Corporation established DMI as a joint venture in British Columbia, Canada, in order to produce and sell market pulp, which is used globally as raw material for paper products. DMI operates through two mills in British Columbia and Alberta and sells pulp globally. Since the fifth medium-term business plan (2015-2017), Nippon Paper Industries has been conducting a strategic review of its assets and as a result, Nippon Paper Industries has decided to sell its interests in DMI. Nippon Paper Industries Co., Ltd. is one of the top 10 pulp and paper companies in the world. Founded in 1949, the company owns more than 160 group companies and 180 thousand hectares of private timberlands. n
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DMI operates through two mills in British Columbia and Alberta and sells pulp globally. In 1969, Nippon Paper Industries and Marubeni Corporation established DMI as a joint venture in British Columbia, Canada, in order to produce and sell market pulp, which is used globally as raw material for paper products.
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Stora Enso and Gasum to Make Renewable Energy From Wastewater in Sweden The plant, built and operated by Gasum, will turn the mill's wastewater effluent into renewable energy. October 9, 2018
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tora Enso and energy company Gasum have signed a contract to build a biogas plant at Stora Enso's Nymölla paper mill in Sweden. The plant, built and operated by Gasum, will turn the mill's wastewater effluent into renewable energy. Gasum plans to upgrade the biogas into Liquefied Biogas (LBG) and sell it as fuel for cars, buses, trucks, and ferries. The expected LBG production of the plant is 75-90 GWh per year, equivalent to the amount of fuel needed annually for more than 200 average long haul lorries in Sweden. Production is expected to start during 2020. The total investment of the project for Gasum is around EUR 27 million and for Stora Enso around EUR 5 million. Gasum has been granted an investment subsidy of SEK 121.5 million (EUR 12.7 million) by the Swedish Environmental Protection Agency under the Climate Leap ('Klimatklivet') programme.
Gasum plans to upgrade the biogas into Liquefied Biogas (LBG) and sell it as fuel for cars, buses, trucks, and ferries. The expected LBG production of the plant is 75-90 GWh per year.
Located in southern Sweden, Stora Enso's Nymölla Mill has an annual production capacity of 340 000 tonnes pulp and 485 000 tonnes woodfree uncoated (WFU) paper for office and postal use. Stora Enso's well-known office paper brand Multicopy is produced in Nymölla. n
Smurfit Kappa Breaks Ground for New Recovery Boiler at Nettingsdorf Paper Mill As part of EUR 134 million investment plan, the new recovery boiler will increase the profitability and sustainability of the mill. October 23, 2018
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lobal packaging company Smurfit Kappa has marked the beginning of the rebuild of a recovery boiler with a ground-breaking ceremony at its Nettingsdorf Paper Mill in Austria. The ceremony, which was the latest milestone in Smurfit Kappa's Future Energy Plant project, was presided over by the Governor of Upper Austria and the Mayor of Ansfelden. The new recovery boiler will increase the profitability and sustainability of the mill and is part of a EUR 134 million investment in Nettingsdorf. The boiler will enable the plant to further boost energy optimisation at the mill, which has already seen a 34 percent increase in productivity since becoming part of Smurfit Kappa in 1995. By recovering energy from the biomass contained in black liquor from pulp production, the new boiler is set to cut CO2 emissions by 40,000 tonnes, which equates to about two-thirds of the current emissions at the site, and 1.5 percent of those from the whole Smurfit Kappa Group. Over the next two years, the Future Energy Plant project will also involve developing a new steam turbine, as well as several extensions and adjustments to upstream and downstream plants.
By recovering energy from the biomass contained in black liquor from pulp production, the new boiler is set to cut CO2 emissions by 40,000 tonnes, which equates to about two-thirds of the current emissions at the site.
Founded in 1851 and with over 360 employees, Nettingsdorf is one of Smurfit Kappa's most efficient paper mills and one of the leading producers of kraftliner in Europe. The mill produces approximately 450,000 tonnes of paper annually and has an excellent health and safety record. n
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Start-up of Voith's Two XcelLine Packaging Paper Machines for Sun Paper Set Record Two XcelLine paper machines PM 36 and PM 37 successfully started up in record time at Zoucheng site of Sun Paper. October 15, 2018
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n the past months, two XcelLine paper machines PM 36 and PM 37 successfully started up at Zoucheng site of Honghe Paper, subsidiary of China's leading papermaking group Sun Paper. The start-up of PM 37 has set up a new record: it only took two hours from Stock on Wire to Paper on Reel. The two paper machines PM 36 and PM 37 started up in the past two months and both machines are fully meeting Sun Paper's expectations. PM 36 produces low-grammage highgrade testliner and PM 37 produces high-quality corrugating medium. Both machines have an annual production capacity of 400,000 metric tons. Together with the already running Voith XcelLine packaging paper machines PM 31 and PM 32, Honghe Paper will achieve an overall annual production capacity of 1.6 million tons. It is of great challenge to complete the installation and commissioning of two paper machines in such a tight time period. However, with the professionalism and high level of commitment, the project team has ensured the success of the project. Voith has carried its extensive competence and expertise in paper machines to achieve excellent machine performance.
The two paper machines PM 36 and PM 37 started up in the past two months and both machines are fully meeting Sun Paper's expectations.
The long-term partnership with Sun Paper also laid a strong foundation for mutual trust and cooperation. By now, Sun Paper has contracted with Voith for in total nine paper machines. The repeat purchase of this high amount set up a new milestone in paper machinery sales. n
Mondi to Discontinue Production of Industrial Bags in Zeltweg According to Mondi, this possible restructuring affects only industrial bags production and has no impact on the other two business segments at the site. October 18, 2018
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round 100 jobs might be cut at Mondi's Austrian site in Zeltweg. The company is examining the possibility to close industrial bags production and focus only on coatings and films. The Mondi Group intends to focus on the production of coatings and films at its site in Zeltweg, Austria. The company reported that talks had been started with the local works council to discuss the proposal to discontinue the production of industrial bags in Zeltweg at the end of 2018. According to Mondi, around 100 of the 400 employees at the site might be affected by the measure. According to Mondi, this possible restructuring affects only industrial bags production and has no impact on the other two business segments at the site. n
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The company reported that talks had been started with the local works council to discuss the proposal to discontinue the production of industrial bags in Zeltweg at the end of 2018.
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Catalyst Paper to Sell Its Mills to Paper Excellence Paper Excellence has close to two million tonnes of pulp production capacity at five Canadian mills and two in France. October 9, 2018
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ritish Columbia-based Catalyst Paper Corp. has reached an agreement to sell its operations to Paper Excellence Canada of Richmond, B.C. Catalyst CEO Ned Dwyer says when the transaction is complete it will benefit customers, employees, suppliers, communities where it operates and B.C.'s pulp, paper and forest products industries. Details of the transaction have not been released, but it will need the approval of the B.C. Supreme Court and at least twothirds of Catalyst shareholders in a vote at a special meeting. The B.C. government says the purchase secures the livelihoods of about 1,500 provincial forest workers at Catalyst Paper facilities in Crofton, Port Alberni and Powell River.
Details of the transaction have not been released, but it will need the approval of the B.C. Supreme Court and at least two-thirds of Catalyst shareholders in a vote at a special meeting.
Paper Excellence has close to two million tonnes of pulp production capacity at five Canadian mills and two in France. In August, the United States issued a final decision on anti-
dumping and countervailing duties totalling 20.26 per cent on Cataylst's printing- and writing-grade paper exports, and Dwyer says those duties were punitive and without merit. n
Honeywell To Transform Austrian Sappi Plant Into One Of The World's Most Modern Paper Mills Honeywell will implement a range of upgrades that include server virtualization, process visualization and cybersecurity solutions. October 9, 2018
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oneywell technology will be used to transform one of Europe's oldest paper mills into one of the world's most modern under a EUR 30 million project being implemented by Sappi Austria Produktions-GmbH & Co. KG, to upgrade its paper mill in Gratkorn, Austria. The mill – where paper has been made for more than four centuries – makes 980,000 tons of high-quality, multicoated paper per year for publications around the world. Honeywell will implement a range of upgrades that include server virtualization, process visualization and cybersecurity solutions. These new systems will increase product quality while cutting production costs. In 2015, Honeywell upgraded the site's flagship PM11 paper machine to its Experion® PMD automation system, creating one of the most advanced coated fine paper production lines in the world. The new project will include integrating an Experion® Virtualized Solution platform to allow centralized, remote monitoring of the mill's operations; four Experion PMD automation systems to control processes, machinery and drives; and four Experion® MX Quality Control Systems for use
The mill – where paper has been made for more than four centuries – makes 980,000 tons of high-quality, multicoated paper per year for publications around the world.
with quality sensors. Additional solutions include two ProCoat CD actuator systems that will help reduce the paper web's cross-direction variation as it is being made, and Uniformance® PHD historian and Process Studio solutions. For cybersecurity, HSSN remote access will facilitate Microsoft security patches and virus updates, and a Secure Media Exchange gateway will monitor and log the use of removable media throughout the facility to reduce risk and limit operational disruption. n
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N•E•W•S
Oceanwood Takes Over Norwegian Press Paper Maker Norske Skog The adjusted net purchase price for 100 precent of the shares in Norske Skog AS amounts to approximately EUR 236m. October 8, 2018
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ceanwood Capital Management Limited has completed the acquisition of 100 percent percent of shares in Norske Skog AS. The acquisition of the Norwegian press paper manufacturer is carried out by Oceanwood Special Situations Malta Limited, a wholly owned subsidiary of Oceanwood Opportunities Master Fund, and its 100 percent owned special purpose vehicle NS Norway Holding AS. The adjusted net purchase price for 100 precent of the shares in Norske Skog AS amounts to approximately EUR 236m of which EUR 231m is expected to be distributed to the holders of the EUR 290m senior secured notes due 2019 (SSNs) and the lenders under the EUR 16m liquidity facility (Liquidity Facility) shortly after closing, the company announced. Norske Skog is a leading producer of publication paper with strong market positions in Europe and Australasia. The Norske Skog group is the third largest manufacturer in Europe and the only manufacturer in Australia and New Zealand. Norske Skog owns seven profitable paper mills, strategically located near attractive markets. Total paper production
Norske Skog is a leading producer of publication paper with strong market positions in Europe and Australasia. The Norske Skog group is the third largest manufacturer in Europe and the only manufacturer in Australia and New Zealand.
capacity is 2.7 million tons, of which 1.8 million tons are newsprint and 0.9 million tons are magazine paper (super calandered and light weight coated). n
Valmet Supplied Pulp Line Successfully Starts Up at SCA's Östrand Mill in Sweden The expansion project doubled the Östrand mill's production capacity from 430,000 tonnes to 900,000 tonnes per year of bleached softwood kraft pulp. October 11, 2018
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almet announced that a new pulp production line it supplied to SCA's Östrand mill in Timrå, Sweden successfully started up at the end of June. SCA invested SEK 7.8 billion in the pulp mill expansion project making it one of the largest industrial investments in Sweden to-date. The expansion project doubled the Östrand mill's production capacity from 430,000 tonnes to 900,000 tonnes per year of bleached softwood kraft pulp. "The rebuild and expansion of Östrand pulp mill is one of the greatest industrial investments in northern Sweden ever. In spite of complexities such as building a twice as big pulp mill in a running mill, we started up the new plant on schedule and budget,” said Ingela Ekebro, Project Director, SCA. The project was implemented in phases, and the new evaporation plant was started up some months before the cooking and fiber line. Very soon after the start-up, pulp was produced with high strength, purity and brightness.
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The project was implemented in phases, and the new evaporation plant was started up some months before the cooking and fiber line.
In the next phase, production will be ramped up gradually towards the new nominal production capacity. n
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Event Calendar
Oct-Nov, 2018
Vol.: 19 / No.: 04
Editor & Publisher Parveen Kumar Jain – pkj@tulip3pmedia.in Associate Editor Geetika Jain – gjain@papermart.in
15-17, Nov 2018
Paperex South India Chennai, India www.paperex-expo.com
13-16, Nov 2018
Pap-For Russia St. Peterburg, Russia www.papfor.com
22 - 24 Nov 2018
Paperworld China Shanghai, China www.paperworldchina.com
23-24, Nov 2018
IPPTA Hydearbad, India www.ippta.co
26-29, Jan 2019
Paperworld Frankfurt, Germany www.paperworld.messefrankfurt.com
3-6, Dec 2019
Paperex New Delhi www.paperex-expo.com
8-9, Mar 2019
Assistant Editor Dhananjay Kumar – desk@tulip3pmedia.in Graphic Designer Ravi Thakur – ravithakur@tulip3pmedia.in Advertising & Marketing Puneet Dua – mktg@papermart.in Prerna Aggarwal – mktg2@tulip3pmedia.in Support Team Kushagra Mehrotra Sandeep Kumar Rahul Kumar admin@tulip3pmedia.in Chief Executive Officer Priyank Jain – pj@tulip3pmedia.in Editorial & Publisher's Office : Paper Mart, Tulip 3P Media Pvt. Ltd. 218, Sanjay Nagar, Gulabi Bagh, New Delhi-110007, INDIA
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