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Friday, 12 April 2013 20:39

Forest destroyer APRIL told to shape up

Some companies just don’t get the hint. You just can't go around destroying Indonesia's rainforests and call yourself a sustainable businesses.

Indonesian pulp and paper giant APRIL, or Asia Pacific Resources International, is one of these companies that likes to boast about how sustainable it is. It's a proud member of corporate sustainability groups and never takes off the secret decoder ring it got for joining the World Business Council for Sustainable Development.

The World Business Council for Sustainable Development (WBCSD) is an elite club of of some of the world’s most progressive companies. We got in touch with them last month and pointed out that APRIL is now Indonesia's leading cause of deforestation for pulp and paper.

We provided them with evidence that 60% of the wood used in APRIL's Riau Andalan Pulp & Paper mill comes from rainforest trees. Last year, APRIL was plotting to trash another 60,000 hectares of rainforest – an area twice the size of Birmingham. That's as unsustainable as you can get!

Today the World Business Council for Sustainable Development delivered APRIL a stark warning: pull your socks up or face the consequences. It has until the end of the year to stop destroying the rainforest or the WBCSD will kick them out.

The WBCSD isn't the only eco-friendly business badge on APRIL's metaphorical lapel. It's also signedy to the United Nations' Global Compact, the world’s largest voluntary corporate sustainability initiative.

Global Compact members aren't supposed to go around trashing rainforests.

When we heard today's news, we wrote to the head of the UN Global Compact. We told them that the WBCSD had put APRIL on notice and suggested they kick the forest destroyer out of their clubhouse if it doesn't commit to zero deforestation.

APRIL needs to get the message that deforestation isn't sustainable. Pressure is mounting, especially as its main competitor, Asia Pulp & Paper, has promised to stop destroying Indonesia's rainforest.

Your move, APRIL... what's it going to be then?

White Martins, the Brazil-based subsidiary of Praxair, Inc. (NYSE: PX), has started up a new air separation plant in the state of Mato Grosso, in Brazil’s fast growing Midwest region. As part of a long-term contract, Praxair will supply Eldorado Celulose e Papel’s single-line pulp mill, which will be the largest in the world.

“We are very pleased to work with Praxair. The company's broad-based experience and industry expertise is paramount to the excellence of our production”

The new air separation unit will have the capacity to produce 220 tons per day of oxygen, nitrogen and argon. Oxygen is a critical component in Eldorado’s manufacturing process. Oxygen delignification, used in the pulp bleaching process, reduces active chlorine requirements, providing significant operating cost advantages and environmental benefits. The plant will also supply local merchant liquid customers in the Brazilian Midwest and in the neighboring state of Sao Paulo in markets such as petrochemicals, metals and healthcare.

“This is Praxair’s fifth plant in this region, which further enhances our production and distribution capabilities,” said Domingos Bulus, president of White Martins. “We look forward to playing an important role in Eldorado’s ongoing growth and contributing to the industrial and economic development of this region.”

"We are very pleased to work with Praxair. The company's broad-based experience and industry expertise is paramount to the excellence of our production,” said Carlos Monteiro, industrial technical director for Eldorado Brasil.

Ahlstrom, a global high performance fiber-based materials company, has completed the earlier announced EUR 7 million investments at its Stenay plant, France. With the investment, the plant successfully expanded its product portfolio of one-side coated papers for metalized labels and flexible packaging.

The grades produced at Stenay's paper machine 3 span now from 50 to 160 g/m². These coated papers can be used for metalized beer labels and flexible packaging applications such as biscuits, sweets, coffee bags, pharmacy, pet food bag outer liners, tea envelopes, tobacco pouches, as well as bundle wraps for yoghurt pots.

"By lowering the weight of a paper used for metalized labels, flexible packaging and other graphics and industrial applications, Ahlstrom responds to the need for lighter papers to reduce the weight of packaging and labels and consequently lower their environmental footprint," says Daniele Borlatto, EVP, Label and Processing.

Stenay's main brands for flexible packaging papers include the well-known Gerbier HDS, Gerstar HDS, Gerstar 404, Gerstar 604, Gersan, Gervalux as well as Metalkote for metalized labels.

With the investment, Ahlstrom offers additional benefits to its customers, such as improved performance during the converting process.

The Stenay plant is part of Ahlstrom's Label and Processing Business Area, which operates a total of six production sites in France, Germany, Italy and Brazil.

Nagzie Harb compares it to someone spitting in his sap.

Harb woke on the morning of March 27 to freshly fallen snow on his property, but as he looked closer, he saw something else on top of the new snow.

“It looked like little, un-burnt embers.”

Harb owns 45 acres of land he uses for maple syrup production, growing his own food and raising chickens. His land in Abercrombie is only a few kilometres from the Northern Pulp mill.

Harb said the black specks littered his property and fell into the buckets he uses to collect sap from his maple trees that morning.

It didn’t take him long to realize where the black specks were coming from.

“I’m aware of which way the smoke is going.”

Harb said he knew the emissions from the pulp mill had been blowing in his direction the night before. He was worried about what the black specks were and how they might affect his sap.

“Let’s put it this way, I don’t put anything on my ground that I’m not sure of.”

Harb immediately called the Environmental Monitoring and Compliance Department of Nova Scotia. They told him he’d have to call the mill with his concerns.

Mark Theriault, an inspector with Nova Scotia Environment, said it’s the responsibility of Northern Pulp to respond to concerns about their emissions, not the government’s.

“They have third-party consultants hired by Northern Pulp to do testing.”

Theriault said if the mill isn’t complying with environmental standards, the department can issue warnings, tickets, or directives to the company.

Northern Pulp has been issued two directives in the last year.

The mill was directed to reinstate the power boiler scrubber by November 2012, which its website states is working.

Harb contacted the mill after the Environment Department suggested he do so. He was put in touch with Dave Davis, who came down to his property and took samples of the black specks.

But Harb wasn’t satisfied with the response from Northern Pulp.

“He (Davis) was kind of patronizing. He said farmers use it in their fields.”

Harb’s response – “Well I don’t want it in my sap.”

Harb said he waited for results from the tests Northern Pulp conducted, but received nothing initially, not even an apology.

“If Northern Pulp had apologized I would have let it go, but they shook it off.”

Harb said he feels isolated because neither the Environment Department nor the pulp mill responded to his concerns right away.

Environment Minister Sterling Belliveau said he appreciates and understands Harb’s concerns.

He said he’s issued a directive to Northern Pulp to reduce their emissions.

This mill is required to complete a study on its emissions due Sept. 30 of this year.

Belliveau said he wants to reassure people the government is being proactive with Northern Pulp.

“There’s a process in place to protect residents. Our door is always open and we’re willing to work with people.”

The News contacted Northern Pulp about the incident Wednesday afternoon, leaving a message.

Harb called The News Thursday morning to report Northern Pulp had finally responded to his concerns.

“They said it was just charred wood, with no chemicals in it.”

Harb said he isn’t overly concerned with the fallout, but upset with the process.

“I don’t believe in coincidences. I probably wouldn’t have heard from them if you hadn’t called,” Harb said this morning, referring to the call placed by The News Wednesday.

Jack Kyte, acting spokesperson for Northern Pulp, said the mill had no reason not to get back to Harb. He confirmed the fallout came from the mill’s power boiler.

“The particulate is similar to burning wood in a fireplace, it’s not associated with a chemical process.”

Kyte said it takes time to get results back and it was coincidental their response to Harb came the day after Harb contacted The News.

Kyte said mill staff were surprised the incident occurred, explaining fallout hasn’t been a problem because they have a scrubber installed on the boiler.

He says anyone who sees particulate should contact the mill so Northern Pulp can respond to issues as they arise.  

Harb worries about the future of his land. He has free-range hens that might ingest the specks. He also plans to have goats free range on his land.

Harb isn’t sure how often the fallout lands on his property. When Dave Davis called him to apologize Thursday, he compared the fallout to a flat tire, something that happens now and then.

Harb is worried he only noticed the fallout during the winter with fresh snow and wonders how often it falls on his property without him noticing.

He says he’d like to see the money the government puts into the mill make tangible improvements to what the mill emits.

“I’ve lived here 40 years and there’s no difference. I haven’t seen it. You can still smell the mill for all the money they put into it.”

Harb said he’ll take matters into his own hands to monitor the mill. He plans on laying a white sheet over a box on part of his land to see what lands on it.

Verso Paper Corp. (NYSE: VRS) has announced that it will report its financial results for the first quarter ended March 31, 2013, in a news release before the market opens on Thursday, May 9, 2013. Also on May 9, management will host a conference call at 9 a.m. Eastern Daylight Time to discuss the first quarter results.

The news release and first quarter results will be available on Verso's website at www.versopaper.com/investorrelations by navigating to the Financial Information page.

Analysts and investors may participate in the live conference call by dialing 719-457-2506 or, within the United States and Canada only, 800-499-7921, access code 4229673. To register, please dial in 10 minutes before the conference call begins. The conference call and presentation materials can be accessed on Verso's website at www.versopaper.com/investorrelations by navigating to the Events page, or at  http://investor.versopaper.com/eventdetail.cfm?eventid=127788.

A telephonic replay of the call can be accessed at 719-457-0820 or, within the United States and Canada only, 888-203-1112, access code 4229673. This replay will be available starting at 12 p.m. Eastern Daylight Time on Thursday, May 9, 2013, and will remain available for 14 days.

Forward-Looking Statements

In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend," and other similar expressions. Forward-looking statements are based on currently available business, economic, financial, and other information and reflect management's current beliefs, expectations, and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. For a discussion of such risks and uncertainties, please refer to Verso's filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

Source: Verso Paper Corp.

Work to Focus on Forest Conservation in Southeastern United States

International Paper, the world’s largest paper company and Dogwood Alliance, one of the Southern United States leading forest conservation organizations, announced an agreement today that will help advance science based forestry improvements in the world’s largest paper producing region. The former foes will map forests around International Paper’s southeastern operations to identify whether any endangered forests or high conservation value areas exist. This mapping will help ensure that IP is not sourcing from any endangered forests as per its long-standing company policy and will also identify mutually-agreed upon areas where conservation can be focused. In addition, IP and Dogwood Alliance will work together to discourage the conversion of natural hardwood forests to pine plantations.

This collaboration builds on initiatives recently announced by International Paper. The first is IP’s membership in the World Wildlife Fund’s Global Forest & Trade Network in North America. Additionally, IP announced a $7.5 million five-year project with the National Fish and Wildlife Foundation to restore and conserve forests in the Coastal Carolinas, Cumberland Plateau and Texas/Arkansas Piney Woods regions. Finally, IP announced an increase in its sourcing of Forest Stewardship Council certified fiber by more than 1.2 million tons during the past five years, and expects to triple that increase by the end of 2014. The company continues to support multiple certification standards as part of its public goal of increasing certified fiber.

“IP has a clear, built in need to maintain healthy forests; our business creates the economic basis for millions of acres of land to remain as forests over long periods of time,” said Teri Shanahan, International Paper’s vice president of Sustainability. “Engaging with our critics is an important part of our process of continuous improvement. We look forward to working with Dogwood, because it’s clear that, although we approach it from markedly different perspectives, they are as passionate about the forests as we are.”

“IP’s leadership on FSC certification and its recently-announced commitment to fund conservation in regions that have long been a priority for us opened the door for transitioning our formerly adversarial relationship to one of collaboration,” said Danna Smith, Executive Director of Dogwood Alliance. “We are pleased to work with IP on these initiatives, that, when combined with our collaborative effort, set a leadership standard within the Southern forest industry.”

The collaboration will kick off with a 2013 pilot project to map forests around IP’s mill in Riegelwood, N.C. (near Wilmington). After the pilot project, IP and Dogwood Alliance will evaluate the framework used and modify it as necessary with the intent of applying it across additional IP southeastern operations.

This affiliation represents an unprecedented relationship between Dogwood and IP. Dogwood Alliance has been critical of International Paper in the past, though it has increasingly worked with industry leaders to find innovative business solutions that protect Southern forests.

Until today, International Paper has not been able to reach agreement with Dogwood Alliance although the company’s focus on sustainable forestry practices has led to collaborations with a broad set of stakeholders in the conservation community.

Source: Dogwood Alliance and International Paper

and turkeyInternational technology Group ANDRITZ will upgrade board machine 2 and the related stock preparation systems for Kartonsan Karton Sanayi ve Ticaret A.S. in Izmit, Turkey, and thus increase duplex and triplex board production from 100,000 to 160,000 t/a. The start-up is scheduled for the second quarter of 2014.

ANDRITZ’s scope of supply comprises:

- upgrade of the board machine (design speed: 450 m/min at a paper width at reel of 3,650 mm), including a PrimeFlow SW headbox with dilution control, rebuild of the fourdrinier wire and press sections with a PrimePress X shoe press, a new hood and air system, and rebuild of the pre- and after-dryer, hard calendar and coating sections;  

- rebuild of the deinking line for white ledger (capacity: 140 t/d);

- upgrade of the backlayer line with deinking flotation unit and thickener disc filter for an additional white ledger capacity of 85 t/d;  

- rebuild of the existing old corrugated containers/mixed waste line with a capacity of 380 t/d;  

- broke pulper adjustment and new broke thickener;   

- three primary and two secondary screens for the four layer approach system and a dilution water screen;  

- engineering, supervision, commissioning, start-up, training, and spare and wear part packages for the entire equipment supply.

With this order, ANDRITZ PULP & PAPER is confirming its position as leading supplier for major rebuilds of paper and board lines.

Under the brand name XELOREXTM, BASF has launched a unique solution for the production of paper and board. The new BASF brand of multifunctional 4-in-1 wet-end chemistry responds to the diverse challenges the paper industry is facing these days. Whether it comes to reduction of complexity in production, a higher stability of operations, a boost for productivity or an improved cost-efficiency – a broad range of needs are addressed by applying only a single product of the XELOREX product family.

“We want to serve the paper industry with solutions, not just chemicals,” says Dr. Uwe Liebelt, President of BASF’s Paper Chemicals division. “With XELOREX we offer an innovative chemistry that significantly improves various performance parameters in papermaking while reducing the total cost of operation. For our customers this represents a real competitive advantage.“

One solution for multiple benefits
XELOREX reduces complexity in the wet-end through its 4-in-1 functionality. It enables papermakers to achieve and improve the effects of retention, drainage, fixation and strength with just one product of the XELOREX product family. Further, it has the potential of replacing other wet-end chemicals up to an extent of 100%. Application of XELOREX also leads to proven enhancements of a variety of dry strength parameters. This can mean a 10–30% improvement in this area, depending on the basis weight and the paper grade.

Applying XELOREX, customers also gain clear improvements in stability of operations. The outstanding improvement of the initial wet web strength (IWWS) reduces the number of breaks and this way improves productivity. In addition, XELOREX provides enhancements of a variety of dry strength parameters, which is particularly important in the production of packaging paper and board.

Manufacturers of both, packaging and graphical papers benefit from the additional productivity increases that XELOREX yields. The improved IWWS, less stickies and clean water circuits lead to a higher efficiency due to less downtime. The reduced draw also permits to run machines at significantly increased speeds, another booster of productivity, if needed.

Finally, XELOREX means an improved cost-efficiency for papermakers as it targets a variety of cost drivers in the papermaking process. Through its powerful dry strength performance, expensive long fibers can be replaced with lower-cost short fibers. It also enables the increased use of recycled fibers. Additionally, XELOREX supports an increased filler loading, as it leads to a better integration of filler particles into the paper web. The increased filler loading means a cheaper way of replacing fiber material and improving printing properties and also helps to save steam since less fiber needs to be dried. Overall, specific fixed costs are diluted without compromising on the quality of paper and board.

Neels Hansen, Brand Manager XELOREX, Paper Chemicals Division, explains: “Considering the diverse benefits our customer can generate with the multifunctional features of XELOREX, this new brand represents a new standard for papermaking in a challenging market environment. In our eyes this marks a revolution for the paper production process.”

Introduction of the brand and the new XELOREX portfolio starts in Europe and will be gradually extended to the regions Asia Pacific, North and South America.

Three capital projects in the works for Northern Pulp Nova Scotia are expected to save the NBSK mill about $16 million per year. The projects include the conversion of two boilers and a lime kiln to burn natural gas, and the construction of an on-site chipping facility.

The Nova Scotia government announced in early April more than $20 million in loans to the pulp mill, to help fund these projects. In addition, the provincial government is contributing $2.5 million to assist Heritage Gas to extend its pipeline to Pictou County, N.S., where Northern Pulp is located.

“Today's announcement helps Northern Pulp deliver on our goal to build a clean, modern and competitive forest company,” said Don Breen, acting general manager, Northern Pulp. “We live in Pictou County near the mill with our families and friends, and are fully committed to doing a better job of reducing air emissions and improving environmental and operational performance to help us export value-added Nova Scotia forest products to the world."
The pulp mill’s commitment to be the first, anchor customer for the natural gas service was crucial to Heritage Gas’ $15.3-million project. The province will lend Northern Pulp $3.6 million and provide a capital equipment incentive of $900,000 to help it convert equipment to natural gas.

In addition, the province is providing $5.2 million, combined with $5 million from the company, to build an on-site chipping facility, the Chronicle Heraldreported on April 5.

“This will allow us to reduce waste significantly by using a lot more of the trees,” Don Breen, general manager, told the Chronicle Herald. The chips will be used to make kraft pulp.

According to the newspaper, the chipping facility will create 20 full-time permanent positions and Breen estimates it will save the company $8 million annually. The conversion to natural gas is expected to save the mill $8 million annually in energy costs, Breen said.

  1. Chronicle Herald also reported that the province is loaning the company $12 million to install equipment that is projected to remove 80% of the particulate matter in the mill’s air emissions. A portion of the loan, $2.5 million, is forgivable, provided certain employment targets are met.

Breen told the Chronicle Herald the equipment upgrades will help the mill to be more competitive. “We sell all of our product and we are competitive now, before the additions. What’s fighting against us is the high Canadian dollar and that the pulp price is depressed. However, with the $16 million in savings from these projects, we will be much more competitive.”

The first phase of the pipeline project, to begin this spring, is to build a steel pipeline to Northern Pulp, on Abercrombie Point. That is expected to be finished by Dec. 1, with an extension to the nearby towns of New Glasgow and Stellarton planned for 2014.

Finland's paper exports are set to fall this year and next as more European consumers and advertisers abandon print and turn to online media due to economic uncertainty, a research firm said.

Finland is home to Europe's biggest paper producers, UPM-Kymmene and Stora Enso. The forest industry accounts for some 15 percent of Finland's total exports.

Pellervo Economic Research forecast Finnish paper exports will drop 1-3 percent this year from 7.3 million tonnes in 2012, and fall a further 1-4 percent in 2014. It previously forecast flat volumes for this year.

Europe's recession has accelerated a fall in paper demand as advertisers and consumers shift from print to electronic media.

Paper companies have tried to deal with the fall by shutting down mills and cutting capacity, and the report said more cuts are likely.

"The paper industry will continue to close down capacity in Europe this year and the next," said Pellervo economist Matleena Kniivila.

The capacity cuts are expected the lift the average Finnish export price of paper by 2 percent this year and by 2-3 percent in 2014, she added.

Finnish paper mills export around 90 percent of what they produce, mostly to other EU countries.

Finland's exports of pulp, paperboard and sawn timber are seen rising up to 5 percent this year, the report said. (Reporting By Jussi Rosendahl; Editing by Louise Heavens)

source: reuters.com