USA
Erving Paper files for Chapter 11

Erving Paper Mills, which runs a 40,000 ton/yr recycled content tissue machine in Massachusetts, has filed for Chapter 11 bankruptcy protections, local reports and contacts said in late April. The mill will continue operating during the bankruptcy. The parent company of the mill, Erving Industries, filed on 20 April, citing the economic downturn, increased competition, and an employee pension plan underfunded by about $15 million.

"Volatility in the price of raw material and the fluctuation in energy prices combined with domestic and foreign competitive pressures have resulted in some operating losses over the past few years," the company added in its filing. The parent company generated about $50 million in revenue in 2008.

Contacts said the mill's deinking line at the mill in Erving, MA, runs on office paper, coated book stock, and white ledger. Prices for these materials went on an almost three-year price run to near record highs that ended in the fourth quarter last year.

Lay-offs, pay cuts at Lincoln Paper

Lincoln Paper and Tissue is laying 17 people off for three months, and cutting hours and salaries for many others. Keith Van Scotter, the company's CEO, announced that the mill is reducing its capital program to minimum levels and this move will conserve cash. The 17 workers who are being laid off are production workers. In addition, Van Scotter said 80 maintenance workers will take an unpaid day off on each Friday for the next three months. And all 90 salaried employees' pay is being reduced by 15%. These steps went into effect Monday 16 March.

The mill makes tissue and uncoated, highbulk paper for items such as postcards and> reply cards.

Van Scotter said the mill has taken other steps to cut costs, and these will save the mill several million dollars each year.

The mill in Lincoln has not been hit as hard as others, but it has been hit, he said. "2009 is going to be, by all accounts, the worst year ever in the paper history."

In addition to scaling back on hours an pay at the mill, the facility is also not buying as much wood and chemicals. "As output isreduced, we're nottaking in as much," said Van Scotter. He expects orders will go up by summer.

Sumner Printing opens new facility

Sumner Printing recently opened a new facility dedicated to folded napkin production. The 2000 m2 facility features installation of Sumner's second OMET TV-503 napkin folder. Following a successful entry into the quarterfolded dinner napkin market in 2007 with its first OMET TV-503 napkin folder installation, Sumner Printing decided to expand capacity and product offering by installing a second in the new dedicated tissue production facility.

According to owner Michael Davis, "the first OMET TV-503 napkin folder has been very productive and allowed us to get in to production quickly with excellent results." Sumner's new OMET TV-503 includes two flexo-print stations and the ability to produce eighth-folded dinner napkins as well as quarterfolded luncheon and dinner napkins. Davis added: "The OMET machines changeover easily and quickly including the new quick change print stations, folding heads and folding plates. The exceptional efficiency, flexibility and durability of the OMET machines are the reasons we chose OMET to begin with and have stayed with them. OMET's support has been great from start to finish. OMET has been a true partner to us."

To enhance production efficiencies Sumner connected both folders to one Multipack wrapper to enable only two people to run both napkin folders, the wrapper and case pack the wrapped napkin packs.

Since 1990 Sumner Printing has been providing printed placemats to the restaurant industry. By adding napkin production Sumner now provides its customers a one stop source for their restaurant place setting requirements. P&G looks to settle paper towel lawsuit with G-P

Procter & Gamble has stopped advertising claims that its new Bounty paper towels have

"25% thicker quilts" in order to settle a lawsuit with Georgia-Pacific. G-P had accused its rival of making misleading claims in the advertising, saying that Bounty towels are "not much thicker at all", according to US newspaper Advertising Age.

G-P, maker of Brawny and Sparkle paper towels, said the quilts (or indented impressions) on the new towels might be significantly thicker but the towels themselves are at most 5% thicker and, in some cases, thinner than before.

Last month, G-P also filed a lawsuit against Kimberly-Clark (K-C), claiming K-C imitates the trademark quilted diamond design of Quilted Northern on its Cottonelle brand. There has been a long history of lawsuits between the big three US tissue makers. It sued P&G in October, claiming a new line of Charmin tissue with "quilted diamonds" was "remarkably similar" to its quilt- and-flower design. The case was dropped in January at the request of both companies.

In 2002 P&G sued G-P in a bid to protect what it termed "trade secrets" in Bounty and Charmin after G-P hired a technical expert who had formerly worked for P&G and could help G-P with its entry to TAD technology using P&G proprietary information.

Schneider and DP announce alliance

Schneider Packaging Equipment Co Inc, specializing in endof- line solutions for case packing and palletizing needs, and DP Packaging Technology ( DP Srl), manufacturers of automatic wrapping and bundling equipment for the tissue sector, have announced a strategic alliance whereby Schneider will provide to the North American market

DP's innovative wrapping and bundling technology. DP's technology combines both intermittent and continuous motion wrapping machines in a small footprint while maintaining flexibility with very high reliability and efficiency. Schneider will market the wrapping and bundling equipment under the name 'DP by Schneider' in North America.

Schneider will provide project management, installation, factory FAT, training, service, part sales and direct support for the equipment from its headquarters in Brewerton, NY.

This relationship moves Schneider Packaging Equipment further upstream to provide primary packaging wrapping and bundling for tissue products, adding to its broad line of roll and folded case packers and palletizers. "Schneider now offers the complete end-of-line solution taking product from the customer's slitter into the primary package and right to the truck," says Terry Zarnowski, director of marketing and sales, Schneider Packaging.

"We are looking forward to being able to offer the North American tissue market the latest in high performance wrapping and bundling equipment," says Catello Di Carlo, Sales Director for DP. "Schneider has proven strengths in packaging and palletizing solutions with a great reputation in providing solid service and support with their highly trained service technicians."

DP designs, manufactures and sells wrapper and bundler machines for the tissue industry. Based in Anzola (near Bologna, Italy), its machines combine the flexibility of reciprocated machines with the smoothness of continuous operation. For more information: www.dpitaly.com.

Schneider manufactures a complete line of case packers, tray packers, and robotic palletizing systems. It also offers a variety of ancillary equipment such as case erectors, cartoners, conveyors, pallet dispensers, shuttle cars, automatic guided carts, and elevators that can easily be integrated with coding/labeling equipment, RFID / barcode scanners, weight checking, and stretch or shrink wrapping equipment to provide a complete turnkey system solution.

Bretting buys napkin technology from TMC

C G Bretting Manufacturing (Bretting) has announced its purchase of napkin wrapping technology from Tissue Machinery Company (TMC). The acquisition includes technology for both flat pack and bulk pack napkin poly wrappers.

Although packaging is an integral part of the Bretting product line, this acquisition will allow additional packaging platforms to be offered as highly integrated converting solutions. The addition of poly packaging to an already diverse product line will create flexibility in "total value solutions" currently offered by Bretting.

Bretting states: "TMC has very good core technology that has progressed to the point of leading the way when it comes to wrapping folded products. We see this as a great opportunity to be able to offer our customers, worldwide, a complete converting line supported by world class parts, services and technical support."

During the transition period, Bretting and TMC will work together to provide sales activity, customer support and service. Bretting is expected to begin manufacturing both flat pack and bulk pack poly wrappers in the USA later this year. TMC says: "The sale of the napkin wrappers and the related technology to Bretting allows us to focus on our roll wrapping lines. Bretting is the world leader in folding and their ability to offer their customers a single source for the complete line will benefit the industry."

In addition, Bretting will also offer both wrappers as stand-alone units that can be integrated into other new OEM equipment or as upgrades to currently installed lines. More information: www.bretting.com

Paper recovery hits new high - AF&PA

According to an American Forest & Paper Association (AF&PA) survey, the US hit a record 57.4% paper recovery rate in 2008, up from 56% from 2007 totals. The celebration at the record high was tempered, however, by sober words from the AF&PA cautioning that the economic downturn - and the drop in recovered paper prices globally - will affect recovery rates.

"It's important that in the wake of the global recession, the resulting decline in paper demand, and the decline in value of recovered paper, that we protect both our infrastructure and personal commitment to recycling, so that we are prepared to again meet growing demand as the market rebounds," said AF&PA president and CEO Donna Harman. In late March the association also released the 49th Annual Survey of Paper, Paperboard and Pulp Capacity, which found that paper and paperboard capacity in the US slipped by 0.8% in 2008 to 96.3 million tons, below the 1% annual rate of contraction from 2001 through 2007, but higher than the 0.6% tightening reported last year Altogether, paper and paperboard capacity has shrunk 7.3% since its 2000 peak level.

According to the survey, total paper and paperboard capacity is expected to further dip by 1.8% in 2009 before expanding by 0.3% in 2010 and 2011.

Colombia
Toscotec signs agency agreement with Herzig

Italian machinery manufacturer Toscotec has announce a new agency agreement with Herzig & Cia SA, a company based in Medellin, Colombia, and managed by Eduardo Restrepo. Herzig was established in 1995, with the main aim to be agent for foreign companies and started in 1963 to represent CMPC Cellulose from Chile with great success on the market. More recently it started representing companies that also produce machinery and equipment for the paper industry.