SlideShare a Scribd company logo
1 of 80
Download to read offline
Rethinking Processes, Retrofitting Equipment and
a Better Way to Monitor Board Performance
CONVERTING THE NEW LIGHTWEIGHTS
                                 Sarilee Norton, President

                                 Ralph Young, AICC Technical
                                 Director

                                 Randy Banks, President,
                                 Sharp-International
AGENDA
 Consolidation, Economic Metrics, Lightweights—
  The New Industry Dynamics
 Quality and Consistency—We Can Do Better
 Crushing the Board--What Do We Really Know
  About Where We’re Losing It?




                                                   2
Same Old, Same Old or Finally a Different Take?

THE NEW INDUSTRY DYNAMICS
Consolidation Recap
CONTAINERBOARD’S CHANGING
LANDSCAPE

                            4
2011—A BANNER YEAR FOR TRANSACTIONS
 RKT/SSCC; IP/TIN
   – Long-term positive for the industry
   – But a lot has to happen first
 ‘Discipline in the containerboard and corrugated box
  markets’
   – TIN and SSCC—5th and 6th out of six
   – Someone has to do it
   – TIN—better cost structure and high integration strategy
 Kapstone and Boise
 What else? What’s next?



                                                               5
WHAT’S NEXT?
 G-P/PCA?
   – Cultural history
   – Attractive geography
   – But what does Koch want?
   – If ain’t it broke…
 Pratt marches to its own tune
 Boise, a buyer or a seller?
 Still a lot of 1-2% players out there
 Multi-plant independents and sheet feeders



                                               6
NEW INDY CONTAINERBOARD—THE NEW
NORMAL?
 Oxnard and Ontario CA mills produce 550,000 tons
 Together Schwarz Partners and Rand-Whitney
  operate more than 20 converting facilities
 If you can’t beat ‘em, join ‘em—benefits of scale
  and supply source ownership
 “This investment represents a generational commitment by
  both families to the industry. We have been looking for
  opportunities to grow, and these two California mills are
  located in what we believe to be a very strategic market for
  the future of our industry. They represent two assets that
  would be very difficult, if not impossible, to replicate today.”



                                                                     7
CONTAINERBOARD SHARE BY COMPANY
                Greif Brothers   Longview Fibre
    Green Bay                                     All Other
                      2%              2%
       2%                                             7%       International Paper   Shown in 3 unlabeled wedges:
Rand Whitney+                                                         34%
   Schwarz                                                                             Interstate Resources
      2%
Boise                                                                                  Atlantic/New Forest      1.0-1.5% each
 2%
Kapstone                                                                               Simpson Paper
   2%

Pratt
 3%                                                                                  Shown in ‘All Other’:

Norampac                                                                               Orange County Cont.
   3%
                                                                                       Hood Industries
                                                                                                                0.5-1.0% each
        PCA                                                                            Sonoco Products
        7%
                                                                                       Durango Group
                                                              Rock-Tenn
                           Georgia-Pacific                       20%
                               11%




                                                                                                                                8
Access to New Local Markets, Plant Consolidations,
or Both?
REGIONAL CONVERTING IMPLICATIONS


                                                     9
SIZE MATTERS
 For the large integrateds, it’s usually about scale and synergies
   –   IP had 140 plants after Weyco, closed over a dozen
   –   Smurfit-Stone ~110 in 2008, RKT less than 100 today
   –   TIN closed several, IP has closed four more already
    Pick the best facility in overlapping local markets or shut down and
       start over
 For smaller integrateds and regionals, a good way to enlarge
  capabilities and extend geographic reach
 For the independents, a great time reinforce quality, service and
  responsiveness you provide




                                                                            10
THE ‘CURRENT’ ROCK TENN
 Even more capacity along the Route 95
  corridor—MA, NJ and into the Carolinas
 Legacy Rock Tenn presence in TN, GA, AL
 Mega resources in Chicago-to-Milwaukee
  stretch
 Only US based supplier with major position in
  Canada




                                                  11
ALL OVER THE EASTERN US AND CANADA




                                     12
THE ‘NEW’ IP—BOX PLANT NETWORK
 Southern CA and Chicagoland ‘thickets’ of box
  plants
 Northern CA, upper Midwest, eastern PA, the
  Carolinas, northwest GA, TN, central FL and LA-TX
  are also capacity pockets.
 Except for the Dakotas, the Rocky Mountain states
  and sparse coverage in New England, they are
  EVERYWHERE!
 And 10 box plants in Mexico


                                                      13
SEEING RED?




              14
WHAT DOES THIS MEAN FOR THE EVERYONE ELSE
IN THE INDUSTRY?
 For converters, not really about reducing capacity
 For consolidators, ‘synergies’ imply fixed cost
  reductions—headcount, bricks and mortar, services,
  property obligations, inventory baseload
 Where are the two major networks saturated?
 Shutdowns always put some accounts in jeopardy
 For most customers, this is still a local business
 For the containerboard supply, may be fewer mills, but
  capacity not likely to shrink



                                                           15
Please Check the Security of your Seatbelt…
INDUSTRY KEY DRIVERS


                                              16
US BOX SHIPMENTS FELL 13% 2007 – 2009
 Steepest decline for the market since the 1970s
 Shipments recovered 3.5% 2010, far more subdued
  than the growth in manufacturing
 Since 2010, essentially flat through the third
  quarter 2012, continued strong headwinds for the
  US economy will prevail before market accelerates
  to 3% (?) growth in 2013 and 2014
 Long-term, box shipments may average 1.5%
  – Containerboard to grow at a more sedate 1.0% rate
  – Shift to lightweight liner takes hold in North America

                                                             17
CONTAINERBOARD EXPORT MARKETS WERE VOLATILE IN 2009-
2010, BOOMED IN FIRST HALF 2011, STABLE NOW?
 2009-2010 due to numerous factors
   –   Global credit crisis and economic shocks
   –   Black liquor credit for US mills
   –   Shortages that developed following capacity closures
   –   Fluctuating domestic demand
 By and large, exports supported containerboard prices
  at higher levels than the historical norm but growth in
  China’s capacity may have a dampening impact going
  forward
 Latin America a growing export market, but can it make
  enough of a difference




                                                              18
OPERATING RATES INCREASED DRAMATICALLY IN 2010, EASED IN
2011, STABLE GOING FORWARD?

 1.03
 1.00
 0.97
 0.94
 0.91
 0.88
 0.85
 0.82
 0.79
 0.76
        90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12 13


                                                                        19
2011 CONTAINERBOARD INVENTORIES ‘BALANCED’, WEEKS OF
 SUPPLY SWELLED, THEN DECLINED IN 2012
Million Short Tons                                                                          Weeks of Supply
     3.2                                                                     Million Tons
                                                                                                   6.0
                                                                             Weeks of Supply (R)
     3.0                                                                                           5.5

     2.8                                                                                           5.0

     2.6                                                                                           4.5

     2.4                                                                                           4.0

     2.2                                                                                           3.5

     2.0                                                                                           3.0

     1.8                                                                                           2.5
           J99   J00   J01   J02   J03   J04   J05   J06   J07   J08   J09     J10    J11   J12




                                                                                                         20
When the Economics Shift, So Does the Story
VIRGIN VERSUS RECYCLED


                                              21
IF ASIAN DEMAND WEAKENS, SO WILL US OCC
PRICES, OR NOT?
$/Short Tons
   250


   200


   150


   100


    50


      0
          90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12


                                                                       22
How Does This All Play Out?
CONTAINERBOARD PRICES


                              23
ARE PRICES ON THE WAY UP, STAGNANT…




                  …OR UNSUSTAINABLE?
                                       24
What’s News?
LIGHTWEIGHT CONTAINERBOARD
UPDATE

                             25
MAJOR LIGHTWEIGHT INITIATIVES SINCE 2006
KapStone is also focused on lightweight kraft linerboard and Longview
markets lower basis weight grades
   Company              Location          Capacity      Material                Origin
International      Pensacola, FL          500,000    Kraft linerboard   Conversion from
Paper                                                                   uncoated free sheet
New Forest         Scarborough, ON        250,000    Recycled liner/    Greenfield
                                                     medium
Pratt Industries   Shreveport, LA         350,000    Recycled liner/    Greenfield
                                                     medium
KPAQ               St. Francisville, LA   220,000    Kraft linerboard   Conversion from fine
                                                                        paper
Abitibi Bowater    Coosa Pines, AL        100,000    Recycled        Conversion from
SP Newsprint       Dublin, GA                ?       containerboard/ newsprint
                                                     paper
Greenpac           Niagara Falls, NY      540,000    Recycled           New machine adjacent
                                                     linerboard         to existing site


                                                                                               26
GREENPAC BASICS
 Partnership which includes
   – Norampac (60%): Canadian based, 6 machines, primarily
     recycled, ~3% share of North America
   – Jamestown Container, Containerboard Partners and affiliated
     box plants
   – Integration of newly purchased Bird Packaging
 328-inch multi-fourdrinier recycled linerboard machine;
  540,000 tons capacity; will represent almost 2% of N.A.
  linerboard capacity in 2013.
 Basis weight range 20-35#; will trim 3-out to meet
  modern corrugator requirements



                                                                   27
WHY WOULD THEY DO IT?
 Separate what’s good for the industry from what’s
  good for the company
 3% of the market, will be 6th, after PCA and Pratt
 5 mills; 1.1 million tons, mainly recycled (inc. Trenton)
   – No virgin liner capabilities
   – Machines are narrower, slower, older
   – Will trim only 2 or on some just 1 roll for 98- and 110-inch
     corrugators
   – Highest cash costs of the top six




                                                                    28
LIGHTWEIGHTS—SOME MIGRATION, NO
INFLUX…YET
 The Norampac machine is 12 months away—not too soon
  for them to be developing customer opportunities and
  marketing strategy
 Pratt is producing lightweight recycled liner and medium at
  three mills, day in, day out
 Kapstone, Longview, Atlantic and others are marketing
  lightweight grades
 Reports that additional companies are quietly running
  lighter weights for specific customers
 Some Europeans would love to find a way to serve the US
  market.



                                                                29
LIGHTWEIGHTS–TAKEAWAYS
 The case for lightweighting
 Technological considerations
 Lightweights are mainstream in Europe
 The pull of global CPGs and retailers
  Virgin versus recycled—who wins?
 Will Norampac be the first or the only?



                                            30
We Can Do It Better!
QUALITY AND CONSISTENCY
WHY SHOULD I BE INTERESTED?
 Continued consolidation-reduced supply
 Containerboard price fluctuations coming
 International companies buying in Europe
 Elevated combining and converting technologies
  new flutes M, R, S, and T
 Methods to evaluate sheet suppliers
 New packaging designs
 Prepare for shelf and retail ready packaging
 Financial savings could be substantial


                                                   32
QUOTE FROM GENERAL MILLS
 “…We realized that most of that innovation that
  was happening was coming from small
  companies.”
 “Most of the innovation is also happening
  outside the U.S”
 “We want to drive cost savings through a focus
  on performance needs.”

        Joe Piton , Buyer, FBA 2012 Annual Meeting



                                                     33
WHY ULTRA LIGHTWEIGHTS?
 Europe linerboards tons <35# at 45% +
 US linerboard tons below 35# at 17%
 European paper making and combining highly
  sophisticated
 Australians are here, Europeans are coming—
  fifteen years ahead of us
 Cost effectiveness and sustainability




                                                34
RECENT INDUSTRY HEADLINES--USA
 Converting plants energy self-sufficient
 Solar panel fields at RFC and Maxco
 OCC prices still high, wood unchanged
 Collection of OCC at 91%-an all time high
 Export of US OCC now over 40%
 Recovered fibre inclusion in containerboard
  at 46%- all time high in US, Europe 85%
 Mills reduce fresh water usage, burn biofuels


                                                  35
WHERE ARE LIGHTWEIGHTS PRODUCED?
   Atlantic Packaging and Rock-Tenn Solvay
   IP Pensacola (all export) UFS machine
   SP Newsprint-GA
   Kapstone-NC and SC
   Converted SBS machines- KPAQ-LA
   Norampac (GreenPac) Niagara Falls
   Grupo Unipak Mexico?
   Longview Fibre: Port Townsend-WA
   On the drawing board-newsprint
   Imports?


                                              36
Engineering Parameters for 20# Linerboard-a working document
                                          Unit           BEST      TEST        TAPPI
                                           of              IN      LINER       TEST       Longview      KPAQ           SP         KapStone    Greenpac   Rock-Tenn
                                     Measurement         CLASS       2       PROCEDURE                               Newprint                             Solvay
PHYSICAL PROPERTIES
Moisture Content                        Percent                                T-412
                target                                     8         8                       7            7             8            7
                CD variation                             +/- 1.5   +/- 2.0                 +/- 1.5    +1.75/-2.6        nr
                moisture streak

Internal Bond (Z tensile)           0.001 ft lbs/in2      138                                                                       100

Cobb (sizing)                                                                  T-441
        Top 2 minute min/max              g/m2             32        28                  50 and 105   30 and 65        50         25 and 70
        Bottom 2 minute min/max           g/m2            TBD       112                  50 and 105   30 and 65        50         35 and 75
Smoothness- Sheffield                     units           280       TBD        T-538     360 target      390                        365
Porosity-Gurley                       sec/100 cc           50        36        T-460      50-200         18                          20
Burst- Mullen                            lb-f/in2          67        31        T-807         60          55            45            60
RC                                  lb-f/6 in or units                         T-822                     36            25
STFI                                                      11.4      6.9        T-826        11.5        12.5           9.5          12.6
MD Slide Angle                          degrees          18 min     TBD        T-815      26 target      20                          25
MD Tensile Strength                     ft-lbs/in          58       TBD        T-494
CD Tensile Strength                     ft-lbs/in          29       TBD        T-494
MD Stiffness                            ft-lbs/in        5543       TBD        T-494
CD Stiffness                            ft-lbs/in        2229       TBD        T-494
MD Tear                                     gf            TBD       1.61       T-494
CD Tear                                     gf            TBD       2.26       T-414
Luminous Reflectance                     L value          TBD       TBD        T-414
Hard Caliper                         0.001 inches         5.1       7.6        T-411                                   6.5           6.2
Basis Weight                             #/msf             20                  T-410     20 +/- 1#      20.5          20.5           20
Scuff                                   # strokes         TBD       TBD                   target 30
Wax Pick                              Dennison #           16       TBD        T459
Dirt                                   mm2/m2             TBD       TBD        T-563


Date of document                      2/18/2011           RAY       RAY                  1/1/2012     1/14/2011    5/11/2012      6/15/2012     TBD        TBD
© 2012 Association of Independent                                                                                     Still In
Corrugated Convertors                                                                                              develop-ment
                                                                                                                                                                 37
Single Stream Waste Headed Where?




                                    38
NEW FIBRES TO NORTH AMERICAN CONTAINERBOARDS

  Sugar Cane
  Ground wood (newsprint)
  Eucalyptus
  Hemp
  Northern European hardwoods
  Mixed office waste with coatings

  Challenges to waste paper dealers,
 papermakers, combiners, converters, and
  corrugated users

 39
LEADING EDGE CORRUGATOR TECHNOLOGY
 Automatic web tension controls
 IR temperature sensors at six locations
 Crews, quality personnel, or lab technicians that
  conduct temperature audits every shift.
 Moisture sensors at two locations and a
  manual moisture analyzer for combined board
  at the dry end of the machine
 Speed sensitive warp arm adjusters on the
  preheaters and preconditioners.


                                                      40
LEADING EDGE CORRUGATOR TECHNOLOGY
 Precise glue applicator gravure rolls.
 Containerboard from only two paper machines
  with specific fibre length and sheet formation.
 Automatic load controls on the double facer
 Concise recipes (machine settings) for each
  board combination
 Controls to monitor and adjust adhesive
  temperature and viscosity



                                                    41
STATE OF ART: CONVERTING
 Three minute change anilox rolls
 Ink control systems: now temperature
 Bobst PolyJoiner, AMS’s Tri-Feeder
 New prefeeder systems
 Lighter weight back anvil covers




                                         42
STATE OF ART: CONVERTING
 Flexos 15,000-20,000 blanks/hour
 Continuous run, set up while running
 Non-crush converting-Emba and others
 Robotic bundle handling-Automatän
 Optical scanners: adhesion and slots




                                         43
SHELF-READY AND RETAIL-READY PACKAGING




          Courtesy of Mid-Atlantic Packaging
                                               44
REQUIRES INNOVATION AND REDESIGN
 Doublewall: E/B, B/B, E/E, E/F
 Design for smaller boxes, boxes with master
  pack, RRP, SRP, counter displays, headers
 Faster merging of small flute and folding carton
  applications
 Greater opportunities for small flute now that
  emerging containerboards are available.
 Carton within a carton




                                                     45
CHALMERS TORSION TESTER




                          46
AICC EDUCATIONAL RESOURCES




47
THIRD EDITION: END USER NEEDS




                                48
STAYING INFORMED




                   49
EDUCATIONAL RESOURCES




                        50
RESOURCE: 2ND SCIENCE OF PAPER SCHOOL




                                        51
EVEN MORE RESOURCES




                      52
It’s All About Crushing the Board
MD TORSIONAL STIFFNESS AND BOX
PERFORMANCE
WHAT DOES THIS RAILWAY BRIDGE…




…AND A PIECE OF CORRUGATED BOARD HAVE IN COMMON?
                                                   54
CORRUGATED BOARD
 Caliper




           Bending Stiffness = Tensile Stiffness of the
           Liners x Board Caliper²



                                                          55
MD TORSIONAL STIFFNESS
 Why is MD Torsional Stiffness Important?
 1. MD Torsional Stiffness is a measure of the
    “Structure” of the whole board but especially
    the flutes
 2. MD Torsional Stiffness failure leads to Bending
    Stiffness Failure
 3. Bending Stiffness Failure leads to Compression
    Failure
 4. Compression Failure leads to Box Failure
 5. Box Failure leads to very unhappy clients
 6. If you don’t measure it you can not control it
                                                      56
WHAT PROPERTY BEST DEFINES ‘STRUCTURE’
MD Torsional Stiffness
                Unstrained board flute profile




                Liner movement indicated by arrows




                                                     57
MD TORSIONAL STIFFNESS
There are three important times when you need
to know about MD Torsional Stiffness
1. When you are making it
2. When you are destroying it
3. When you are guaranteeing your box
   performance




                                                58
MD Torsional Stiffness Testing
An easy and accurate way to measure MD Torsional
Stiffness using a natural resonance technique




                                                   59
BUILDING IN TORSIONAL STIFFNESS:
CORRUGATOR INFLUENCES




   Selection of liners and mediums – type, quality, basis weight
   Corrugating temperature, moisture, friction, drag
   Corrugating rolls – profile, size, wear
   Glue application – film thickness, evenness, quality
   Adhesion – pressure roll, tack development, temperature
   Pressure rolls during drying
   Slitting
   Feed rolls anywhere
                                                                60
CORRUGATOR LABYRINTH – THE CONVERTOR’S INPUT




                                               61
FLUTE PROFILE




        C4 more triangular than C2
        C4 better bracing, higher MDTS
        Lower ECT and takeup factor (TUF)
                                             62
FLUTE SHAPE EFFECTS
                                             --------------MDTS bpi----------------

Construction, #s   Construction, grammes   Model est.    C2     C4     ECT C2   ECT C4

 36/31/36          K175(D150)K175           14.4        12.2    16.1     6.1      6.2
 42/31/39          K205(D150)K190           15.6        13.3    17.9     7.0      6.1
 42/31/42          K205(D150)K205           16.1        13.3    19.3     6.9      5.7
 42/39/39          K205(M190HP)K190         21.2        17.7    23.2     8.1      8.0
 42/39/39          K205(M190HP)K205         21.6        17.8    23.4     8.6      8.2

                             Averages       17.8        14.9    20.0     7.3      6.8
                         % Differences                  -16.4   12.4              -6.8



                     C4 is 34% Stiffer than C2


                                                                                         63
CORRUGATING ROLL WEAR – C FLUTE

                 14
                 13
                 12
                         New module                         BPI
                 11
   BPI and ECT




                 10
                 9
                 8
                         Worn module
                 7
                 6
                 5                ECT

                 4
                 9-Nov   19-Nov   29-Nov   9-Dec   19-Dec   29-Dec   8-Jan   18-Jan




                                                                                      64
PERFORMANCE – BASIS WEIGHT VS. TORSIONAL
STIFFNESS MEASURE

                          180
                          160
                          140
                          120
                          100
                           80
                           60
                           40
                           20
                            0
                                  Combined Basis    Box Performance
                                  Weight (#s/MSF)     Index (BPI)
        Lightweight B/C DW
                                       96.3              14.2
  (24.6/16.4M/16.4M/18.4M/20.5)
        Standard B/C DW
                                       159               15.3
  (42.0/23.0M/29.0/23.0M/42.0)
B/C DW – PITCH RATIOS
            BC flute with conventional pitch ratio of 11/9




              BC flute with adapted pitch ratio of 4/3




              BC flute with adapted pitch ratio of 3/2
TYPICAL IMPROVEMENTS ON CORRUGATOR USING
MD TORSIONAL STIFFNESS
                                  Kiwi Fruit Board Grade BPI Comparisons
         #   Paper Make up                       Comments          BPI
         1   DCK170(M190HP)K175(D115)K230-BE     2011 Grade        31.6           CONTROL ML's MB's
                                               2011 Exisiting B                   SC adds 9.2% BPI ambient even
         2   DCK170(SC180)K135(D115)K230-BE                        34.8    9.2%
                                                  flute Rolls                     after reduction of middle liner.
                                                                                  New B fresh rolls (no flank or
                                               New B flute Rolls           6.6%
         3   DCK170(SC180)K135(D115)K230-BE                        37.1           profile change) adds a further
                                                  13.3.12                 (14.8%)
                                                                                  6.6%

         4   DCK170(M190HP)K175(D115)K275-BE     2011 Grade        31.4           CONTROL I T's
                                               2011 Exisiting B                   SC adds 9.2% BPI ambient even
         5   DCK170(SC180)K135(D115)K275-BE                        34.8    9.8%
                                                  flute Rolls                     after reduction of middle liner.
                                                                                  New B fresh rolls (no flank or
                                               New B flute Rolls           14.3%
         6   DCK170(SC180)K135(D115)K275-BE                        40.6           profile change) adds a further
                                                  13.3.12                 (29.3%)
                                                                                  14.3%


    Ian, i'm sending this to you in confidence. F.Y.I. and you may find interesting. The calipers have also
    increased & ECT only marginally. M

    The xls is pretty self explanatory but we have 3 sets of figures from numerous tests Dec '11 though to last
    week in 4'12 comparing old 2011 CONTROL & failing Kiwi Fruit Trays to new Semi Chem data & recently
    new B flute rolls installed 13.3.12 ..NOTE the new B flute is not a new flank clearance/profile/T//Up its just
    a straight replacement.


Without knowing the MDTS, these impressive
improvements would not be identified

                                                                                                                     67
BOARD PROPERTIES VS CRUSH




                            68
C FLUTE CRUSH VS MDTS AND CALIPER
            100

                90
                                  Caliper                     2
                                                          R = 0.9627
                80

                70

                60
    Vaule (%)




                50
                                              DST
                40

                30

                20
                                                          R2 = 0.9903
                10

                0
                     0   5   10         15          20   25             30
                                     Crush (% )


                                                                             69
MDTS BEFORE & AFTER CONVERTING - USA
                 16
                 14
                 12
                 10
    DST (bpi)




                     8
                     6
                     4
                     2
                     0
                          C1   C2   C3   C4   C5       C6     C7   C8   C9   C10
                                              Sample Number




               100

                     80
    DST % Retained




                     60

                     40

                     20

                     0
                          C1   C2   C3   C4   C5       C6     C7   C8   C9   C10
                                              Sample Number




                                                                                   70
USA DATA
                   DST (bpi)             Caliper                  ECT           % Change board to box
Sample   Flute   Board    Box    Board mm     Box mm      Board         Box     DST     Caliper   ECT
  1       C      11.02    6.96     4.34            4.06   66.84         51.03   -36.8      -6.4    -23.7
  2       C      5.74     3.32     3.89            3.63   36.32         33.65   -42.2      -6.5     -7.4
  3       C      14.28   11.58     4.17            4.19   50.14         50.42   -18.9      0.6      0.6
  4       C      9.16     1.5      4.04            3.73   40.86         37.81   -83.6      -7.5     -7.5
  5       C      8.52     7.52     3.96            3.99   37.8          34.52   -11.7      0.6      -8.7
  6       C      8.28     5.52     4.14            4.09   48.48         49.69   -33.3      -1.2     2.5
  7       C      6.86      6       3.81            3.78   33.84         33.99   -12.5      -0.7     0.4
  8       C      11.68    7.24     4.11            3.97   45.1          42.7    -38.0      -3.5     -5.3
  9       C      10.52    7.62     4.11            3.99   48.81         43.76   -27.6      -3.1    -10.3
  10      C      10.06    4.84     4.16            3.86   47.3          41.4    -51.9      -7.2    -12.5


         Ave      9.6     6.2      4.1             3.9    45.5          41.9    -35.7      -3.5     -7.2
         Min      5.7     1.5      3.8             3.6    33.8          33.7    -83.6      -7.5    -23.7
         Max     14.3     11.6     4.3             4.2    66.8          51.0    -11.7      0.6      2.5




                                                                                                           71
HOW PRINTING AFFECTS CRUSH




                             72
TCY40 PRINTER
                                                                After gap adjustments
           16                                                                                                                                                               Corri
                                                         Increase in MDTS = 35.6%                                                                                           Caliper
                                                                                                                                                                            mm
           14       13.5                                                                               13.6                      13.6                     13.6

                                                                                                                                                                            Corri BPI
                                                                              12.2
 BPI




                                       Log—Conv. Print Caliper                                                                                                    11.9
           12
                                                                                                                                         11.2
                                                      10.8

           10                                                                                                                                                               Conv
                                                             Exponential—Conv. Print BPI                                                                                    Plain
                                                                                                                                                                            Caliper
                                                               7.9                                                                                                          mm
           8                                                                                                    7.6
                                                                                                                                                                            Conv
                                                                                                                                                                            Plain BPI
           6
 Caliper




                                               4.01




                                                                                     3.98




                                                                                                              3.95




                                                                                                                               4.12




                                                                                                                                                        4.12
                                                                                                     4.08




                                                                                                                                                                 4.08
                                                                                                                                        4.02
                                                                            4.1
                                                         3.9




                  4.1                                                                                                                                                       Conv
           4                                                                                                                                                                Print
                                                                                                                                                                            Caliper
                           Exponential--Conv.
                                                                                                                                                                            mm
                           Plain BPI
           2
                                                                                                                                                                            Conv
                                                                                                                                                                            Print BPI

           0
                  Feed ex Corrugator        TCY 40 no setting      1st TRIAL increased       2nd TRIAL increased 3rd TRIAL decreased # 4th TRIAL decreased #
                                         changes as we found it. Infeed rollers 0.75 to 1.7 stacker infeed from 7.5 1 print station Green 2.7 2 print station Blue 2.8 to
                                                                  (not calibrated) BPI not           to 9.0                    to 3.5                     3.2
                                                                    recorded. Estimate
                                                                    between 7.6 to 7.9
                Trial Action



                                                                                                                                                                                        73
MDTS AND STACKING PERFORMANCE




                                74
EFFECT OF CRUSH




                  75
COST SAVINGS MODEL
                                                                                                  Medium     Offset

 Actual = tested DST                                                ALTER board grades & prices    Use       -5.057

                       lbs to gsm x =       4.882                                                  RF        -5.057

                                                                                                   SC        -2.057


                                                                 USA Board Grade - C Flute

                                        Cost/1000ft²                DB        Medium        SF    Actual   Theory DST

                       Old Board        $        27.44     Now       35          23         35      9         11.0

                       New Board        $        25.20     New       31          23         31                10.0

                 Cost Savings           $           2.24

               Cost % savings               8%

         Weight savings (lbs)                8

               Wgt % savings                8%
WHO IS TESTING MD TORSIONAL STIFFNESS?
 Australia             Estonia   Hungary            Poland
 Austria               England   Ireland            Scotland
 Belgium               Fiji      Italy              Spain
 Chile                 France    Lithuania          Sweden
 Czech Republic        Germany   New Zealand        Thailand
 Denmark               Holland   Papua New Guinea   USA

 26
 Australasia/Pacific
 88 Europe
 USA - ?




                                                               77
MD TORSIONAL STIFFNESS IS:
   The missing major strength property of corrugated board
   The property that tells you how well you make your board
   The property that tells you how badly you crushed your board
   The property that tells you how well your board will perform in
    the service environment
   The property that leads to box failures in a stack
   The major property you need for quality control
   The property that allows you to optimize board grade
    performance




                                                                      78
IMPLEMENTING AN MD TORSIONAL STIFFNESS
PROGRAM WILL ALLOW YOU TO:
   Improve the quality of corrugated board off the corrugator.
   Improve the quality of finished boxes off the RDC/FFG.
   Reduce damage during conversion
   Setup a QC system to guarantee optimal performance
   Reduce board weight
   Shift money from raw material cost to the bottom line
   Reduce customer complaints
   Keep an eye on your competition




                                                                  79
Rethinking Processes, Retrofitting Equipment
and a Better Way to Monitor Board
Performance
CONVERTING THE NEW
LIGHTWEIGHTS                   Sarilee Norton, President

                               Ralph Young, AICC Technical
                               Director

                               Randy Banks, President,
                               Sharp-International

More Related Content

Similar to Aicc meeting 12_converting_lightweights

Dgc 13 02_24-27_bmo metals and mining conference
Dgc 13 02_24-27_bmo metals and mining conferenceDgc 13 02_24-27_bmo metals and mining conference
Dgc 13 02_24-27_bmo metals and mining conferenceDetourGold
 
el paso Intro_MacroOutlook
el paso  Intro_MacroOutlookel paso  Intro_MacroOutlook
el paso Intro_MacroOutlookfinance49
 
el paso Intro_MacroOutlook
el paso  Intro_MacroOutlookel paso  Intro_MacroOutlook
el paso Intro_MacroOutlookfinance49
 
Q4 2011 Industrial Report
Q4 2011 Industrial ReportQ4 2011 Industrial Report
Q4 2011 Industrial ReportMikeErwin
 
1 nap investor presentation march 2013 website
1 nap investor presentation march 2013 website1 nap investor presentation march 2013 website
1 nap investor presentation march 2013 websiteNorth American Palladium
 
08.15.2013 - Robert Jensen
08.15.2013 - Robert Jensen08.15.2013 - Robert Jensen
08.15.2013 - Robert JensenAMDSeminarSeries
 
Detour Gold Corporate Presentation
Detour Gold Corporate PresentationDetour Gold Corporate Presentation
Detour Gold Corporate PresentationDetourGold
 
Dgc 13 04_16-18_european gold forum
Dgc 13 04_16-18_european gold forumDgc 13 04_16-18_european gold forum
Dgc 13 04_16-18_european gold forumDetourGold
 
Mackie Research: Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)
Mackie Research:  Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)Mackie Research:  Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)
Mackie Research: Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)Graphite Graphite
 
el paso 08_11_Leland_UBS
el paso  08_11_Leland_UBSel paso  08_11_Leland_UBS
el paso 08_11_Leland_UBSfinance49
 
Conference call presentation 4 q10
Conference call presentation 4 q10Conference call presentation 4 q10
Conference call presentation 4 q10MPX_RI
 

Similar to Aicc meeting 12_converting_lightweights (20)

Dgc 13 02_24-27_bmo metals and mining conference
Dgc 13 02_24-27_bmo metals and mining conferenceDgc 13 02_24-27_bmo metals and mining conference
Dgc 13 02_24-27_bmo metals and mining conference
 
el paso Intro_MacroOutlook
el paso  Intro_MacroOutlookel paso  Intro_MacroOutlook
el paso Intro_MacroOutlook
 
el paso Intro_MacroOutlook
el paso  Intro_MacroOutlookel paso  Intro_MacroOutlook
el paso Intro_MacroOutlook
 
Q4 2011 Industrial Report
Q4 2011 Industrial ReportQ4 2011 Industrial Report
Q4 2011 Industrial Report
 
Q4 2011 Industrial Report
Q4 2011 Industrial ReportQ4 2011 Industrial Report
Q4 2011 Industrial Report
 
20120315 m&m hk v0
20120315 m&m hk v020120315 m&m hk v0
20120315 m&m hk v0
 
20120315 m&m hk v0
20120315 m&m hk v020120315 m&m hk v0
20120315 m&m hk v0
 
Nap investor presentation august 2012
Nap investor presentation august 2012Nap investor presentation august 2012
Nap investor presentation august 2012
 
Investor Presentation March 2013
Investor Presentation March 2013Investor Presentation March 2013
Investor Presentation March 2013
 
Investor Presentation March 2013
Investor Presentation March 2013Investor Presentation March 2013
Investor Presentation March 2013
 
1 nap investor presentation march 2013 website
1 nap investor presentation march 2013 website1 nap investor presentation march 2013 website
1 nap investor presentation march 2013 website
 
Nap investor presentation march 2013
Nap investor presentation march 2013Nap investor presentation march 2013
Nap investor presentation march 2013
 
Denny pp
Denny ppDenny pp
Denny pp
 
08.15.2013 - Robert Jensen
08.15.2013 - Robert Jensen08.15.2013 - Robert Jensen
08.15.2013 - Robert Jensen
 
Detour Gold Corporate Presentation
Detour Gold Corporate PresentationDetour Gold Corporate Presentation
Detour Gold Corporate Presentation
 
Dgc 13 04_16-18_european gold forum
Dgc 13 04_16-18_european gold forumDgc 13 04_16-18_european gold forum
Dgc 13 04_16-18_european gold forum
 
Mackie Research: Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)
Mackie Research:  Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)Mackie Research:  Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)
Mackie Research: Northern Graphite & Refactory Market Dynamics (Feb 21, 2012)
 
el paso 08_11_Leland_UBS
el paso  08_11_Leland_UBSel paso  08_11_Leland_UBS
el paso 08_11_Leland_UBS
 
Indian print industry
Indian print industryIndian print industry
Indian print industry
 
Conference call presentation 4 q10
Conference call presentation 4 q10Conference call presentation 4 q10
Conference call presentation 4 q10
 

Aicc meeting 12_converting_lightweights

  • 1. Rethinking Processes, Retrofitting Equipment and a Better Way to Monitor Board Performance CONVERTING THE NEW LIGHTWEIGHTS Sarilee Norton, President Ralph Young, AICC Technical Director Randy Banks, President, Sharp-International
  • 2. AGENDA  Consolidation, Economic Metrics, Lightweights— The New Industry Dynamics  Quality and Consistency—We Can Do Better  Crushing the Board--What Do We Really Know About Where We’re Losing It? 2
  • 3. Same Old, Same Old or Finally a Different Take? THE NEW INDUSTRY DYNAMICS
  • 5. 2011—A BANNER YEAR FOR TRANSACTIONS  RKT/SSCC; IP/TIN – Long-term positive for the industry – But a lot has to happen first  ‘Discipline in the containerboard and corrugated box markets’ – TIN and SSCC—5th and 6th out of six – Someone has to do it – TIN—better cost structure and high integration strategy  Kapstone and Boise  What else? What’s next? 5
  • 6. WHAT’S NEXT?  G-P/PCA? – Cultural history – Attractive geography – But what does Koch want? – If ain’t it broke…  Pratt marches to its own tune  Boise, a buyer or a seller?  Still a lot of 1-2% players out there  Multi-plant independents and sheet feeders 6
  • 7. NEW INDY CONTAINERBOARD—THE NEW NORMAL?  Oxnard and Ontario CA mills produce 550,000 tons  Together Schwarz Partners and Rand-Whitney operate more than 20 converting facilities  If you can’t beat ‘em, join ‘em—benefits of scale and supply source ownership  “This investment represents a generational commitment by both families to the industry. We have been looking for opportunities to grow, and these two California mills are located in what we believe to be a very strategic market for the future of our industry. They represent two assets that would be very difficult, if not impossible, to replicate today.” 7
  • 8. CONTAINERBOARD SHARE BY COMPANY Greif Brothers Longview Fibre Green Bay All Other 2% 2% 2% 7% International Paper Shown in 3 unlabeled wedges: Rand Whitney+ 34% Schwarz Interstate Resources 2% Boise Atlantic/New Forest 1.0-1.5% each 2% Kapstone Simpson Paper 2% Pratt 3% Shown in ‘All Other’: Norampac Orange County Cont. 3% Hood Industries 0.5-1.0% each PCA Sonoco Products 7% Durango Group Rock-Tenn Georgia-Pacific 20% 11% 8
  • 9. Access to New Local Markets, Plant Consolidations, or Both? REGIONAL CONVERTING IMPLICATIONS 9
  • 10. SIZE MATTERS  For the large integrateds, it’s usually about scale and synergies – IP had 140 plants after Weyco, closed over a dozen – Smurfit-Stone ~110 in 2008, RKT less than 100 today – TIN closed several, IP has closed four more already  Pick the best facility in overlapping local markets or shut down and start over  For smaller integrateds and regionals, a good way to enlarge capabilities and extend geographic reach  For the independents, a great time reinforce quality, service and responsiveness you provide 10
  • 11. THE ‘CURRENT’ ROCK TENN  Even more capacity along the Route 95 corridor—MA, NJ and into the Carolinas  Legacy Rock Tenn presence in TN, GA, AL  Mega resources in Chicago-to-Milwaukee stretch  Only US based supplier with major position in Canada 11
  • 12. ALL OVER THE EASTERN US AND CANADA 12
  • 13. THE ‘NEW’ IP—BOX PLANT NETWORK  Southern CA and Chicagoland ‘thickets’ of box plants  Northern CA, upper Midwest, eastern PA, the Carolinas, northwest GA, TN, central FL and LA-TX are also capacity pockets.  Except for the Dakotas, the Rocky Mountain states and sparse coverage in New England, they are EVERYWHERE!  And 10 box plants in Mexico 13
  • 15. WHAT DOES THIS MEAN FOR THE EVERYONE ELSE IN THE INDUSTRY?  For converters, not really about reducing capacity  For consolidators, ‘synergies’ imply fixed cost reductions—headcount, bricks and mortar, services, property obligations, inventory baseload  Where are the two major networks saturated?  Shutdowns always put some accounts in jeopardy  For most customers, this is still a local business  For the containerboard supply, may be fewer mills, but capacity not likely to shrink 15
  • 16. Please Check the Security of your Seatbelt… INDUSTRY KEY DRIVERS 16
  • 17. US BOX SHIPMENTS FELL 13% 2007 – 2009  Steepest decline for the market since the 1970s  Shipments recovered 3.5% 2010, far more subdued than the growth in manufacturing  Since 2010, essentially flat through the third quarter 2012, continued strong headwinds for the US economy will prevail before market accelerates to 3% (?) growth in 2013 and 2014  Long-term, box shipments may average 1.5% – Containerboard to grow at a more sedate 1.0% rate – Shift to lightweight liner takes hold in North America 17
  • 18. CONTAINERBOARD EXPORT MARKETS WERE VOLATILE IN 2009- 2010, BOOMED IN FIRST HALF 2011, STABLE NOW?  2009-2010 due to numerous factors – Global credit crisis and economic shocks – Black liquor credit for US mills – Shortages that developed following capacity closures – Fluctuating domestic demand  By and large, exports supported containerboard prices at higher levels than the historical norm but growth in China’s capacity may have a dampening impact going forward  Latin America a growing export market, but can it make enough of a difference 18
  • 19. OPERATING RATES INCREASED DRAMATICALLY IN 2010, EASED IN 2011, STABLE GOING FORWARD? 1.03 1.00 0.97 0.94 0.91 0.88 0.85 0.82 0.79 0.76 90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12 13 19
  • 20. 2011 CONTAINERBOARD INVENTORIES ‘BALANCED’, WEEKS OF SUPPLY SWELLED, THEN DECLINED IN 2012 Million Short Tons Weeks of Supply 3.2 Million Tons 6.0 Weeks of Supply (R) 3.0 5.5 2.8 5.0 2.6 4.5 2.4 4.0 2.2 3.5 2.0 3.0 1.8 2.5 J99 J00 J01 J02 J03 J04 J05 J06 J07 J08 J09 J10 J11 J12 20
  • 21. When the Economics Shift, So Does the Story VIRGIN VERSUS RECYCLED 21
  • 22. IF ASIAN DEMAND WEAKENS, SO WILL US OCC PRICES, OR NOT? $/Short Tons 250 200 150 100 50 0 90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7 8 9 10 11 12 22
  • 23. How Does This All Play Out? CONTAINERBOARD PRICES 23
  • 24. ARE PRICES ON THE WAY UP, STAGNANT… …OR UNSUSTAINABLE? 24
  • 26. MAJOR LIGHTWEIGHT INITIATIVES SINCE 2006 KapStone is also focused on lightweight kraft linerboard and Longview markets lower basis weight grades Company Location Capacity Material Origin International Pensacola, FL 500,000 Kraft linerboard Conversion from Paper uncoated free sheet New Forest Scarborough, ON 250,000 Recycled liner/ Greenfield medium Pratt Industries Shreveport, LA 350,000 Recycled liner/ Greenfield medium KPAQ St. Francisville, LA 220,000 Kraft linerboard Conversion from fine paper Abitibi Bowater Coosa Pines, AL 100,000 Recycled Conversion from SP Newsprint Dublin, GA ? containerboard/ newsprint paper Greenpac Niagara Falls, NY 540,000 Recycled New machine adjacent linerboard to existing site 26
  • 27. GREENPAC BASICS  Partnership which includes – Norampac (60%): Canadian based, 6 machines, primarily recycled, ~3% share of North America – Jamestown Container, Containerboard Partners and affiliated box plants – Integration of newly purchased Bird Packaging  328-inch multi-fourdrinier recycled linerboard machine; 540,000 tons capacity; will represent almost 2% of N.A. linerboard capacity in 2013.  Basis weight range 20-35#; will trim 3-out to meet modern corrugator requirements 27
  • 28. WHY WOULD THEY DO IT?  Separate what’s good for the industry from what’s good for the company  3% of the market, will be 6th, after PCA and Pratt  5 mills; 1.1 million tons, mainly recycled (inc. Trenton) – No virgin liner capabilities – Machines are narrower, slower, older – Will trim only 2 or on some just 1 roll for 98- and 110-inch corrugators – Highest cash costs of the top six 28
  • 29. LIGHTWEIGHTS—SOME MIGRATION, NO INFLUX…YET  The Norampac machine is 12 months away—not too soon for them to be developing customer opportunities and marketing strategy  Pratt is producing lightweight recycled liner and medium at three mills, day in, day out  Kapstone, Longview, Atlantic and others are marketing lightweight grades  Reports that additional companies are quietly running lighter weights for specific customers  Some Europeans would love to find a way to serve the US market. 29
  • 30. LIGHTWEIGHTS–TAKEAWAYS  The case for lightweighting  Technological considerations  Lightweights are mainstream in Europe  The pull of global CPGs and retailers  Virgin versus recycled—who wins?  Will Norampac be the first or the only? 30
  • 31. We Can Do It Better! QUALITY AND CONSISTENCY
  • 32. WHY SHOULD I BE INTERESTED?  Continued consolidation-reduced supply  Containerboard price fluctuations coming  International companies buying in Europe  Elevated combining and converting technologies new flutes M, R, S, and T  Methods to evaluate sheet suppliers  New packaging designs  Prepare for shelf and retail ready packaging  Financial savings could be substantial 32
  • 33. QUOTE FROM GENERAL MILLS  “…We realized that most of that innovation that was happening was coming from small companies.”  “Most of the innovation is also happening outside the U.S”  “We want to drive cost savings through a focus on performance needs.” Joe Piton , Buyer, FBA 2012 Annual Meeting 33
  • 34. WHY ULTRA LIGHTWEIGHTS?  Europe linerboards tons <35# at 45% +  US linerboard tons below 35# at 17%  European paper making and combining highly sophisticated  Australians are here, Europeans are coming— fifteen years ahead of us  Cost effectiveness and sustainability 34
  • 35. RECENT INDUSTRY HEADLINES--USA  Converting plants energy self-sufficient  Solar panel fields at RFC and Maxco  OCC prices still high, wood unchanged  Collection of OCC at 91%-an all time high  Export of US OCC now over 40%  Recovered fibre inclusion in containerboard at 46%- all time high in US, Europe 85%  Mills reduce fresh water usage, burn biofuels 35
  • 36. WHERE ARE LIGHTWEIGHTS PRODUCED?  Atlantic Packaging and Rock-Tenn Solvay  IP Pensacola (all export) UFS machine  SP Newsprint-GA  Kapstone-NC and SC  Converted SBS machines- KPAQ-LA  Norampac (GreenPac) Niagara Falls  Grupo Unipak Mexico?  Longview Fibre: Port Townsend-WA  On the drawing board-newsprint  Imports? 36
  • 37. Engineering Parameters for 20# Linerboard-a working document Unit BEST TEST TAPPI of IN LINER TEST Longview KPAQ SP KapStone Greenpac Rock-Tenn Measurement CLASS 2 PROCEDURE Newprint Solvay PHYSICAL PROPERTIES Moisture Content Percent T-412 target 8 8 7 7 8 7 CD variation +/- 1.5 +/- 2.0 +/- 1.5 +1.75/-2.6 nr moisture streak Internal Bond (Z tensile) 0.001 ft lbs/in2 138 100 Cobb (sizing) T-441 Top 2 minute min/max g/m2 32 28 50 and 105 30 and 65 50 25 and 70 Bottom 2 minute min/max g/m2 TBD 112 50 and 105 30 and 65 50 35 and 75 Smoothness- Sheffield units 280 TBD T-538 360 target 390 365 Porosity-Gurley sec/100 cc 50 36 T-460 50-200 18 20 Burst- Mullen lb-f/in2 67 31 T-807 60 55 45 60 RC lb-f/6 in or units T-822 36 25 STFI 11.4 6.9 T-826 11.5 12.5 9.5 12.6 MD Slide Angle degrees 18 min TBD T-815 26 target 20 25 MD Tensile Strength ft-lbs/in 58 TBD T-494 CD Tensile Strength ft-lbs/in 29 TBD T-494 MD Stiffness ft-lbs/in 5543 TBD T-494 CD Stiffness ft-lbs/in 2229 TBD T-494 MD Tear gf TBD 1.61 T-494 CD Tear gf TBD 2.26 T-414 Luminous Reflectance L value TBD TBD T-414 Hard Caliper 0.001 inches 5.1 7.6 T-411 6.5 6.2 Basis Weight #/msf 20 T-410 20 +/- 1# 20.5 20.5 20 Scuff # strokes TBD TBD target 30 Wax Pick Dennison # 16 TBD T459 Dirt mm2/m2 TBD TBD T-563 Date of document 2/18/2011 RAY RAY 1/1/2012 1/14/2011 5/11/2012 6/15/2012 TBD TBD © 2012 Association of Independent Still In Corrugated Convertors develop-ment 37
  • 38. Single Stream Waste Headed Where? 38
  • 39. NEW FIBRES TO NORTH AMERICAN CONTAINERBOARDS  Sugar Cane  Ground wood (newsprint)  Eucalyptus  Hemp  Northern European hardwoods  Mixed office waste with coatings Challenges to waste paper dealers,  papermakers, combiners, converters, and corrugated users 39
  • 40. LEADING EDGE CORRUGATOR TECHNOLOGY  Automatic web tension controls  IR temperature sensors at six locations  Crews, quality personnel, or lab technicians that conduct temperature audits every shift.  Moisture sensors at two locations and a manual moisture analyzer for combined board at the dry end of the machine  Speed sensitive warp arm adjusters on the preheaters and preconditioners. 40
  • 41. LEADING EDGE CORRUGATOR TECHNOLOGY  Precise glue applicator gravure rolls.  Containerboard from only two paper machines with specific fibre length and sheet formation.  Automatic load controls on the double facer  Concise recipes (machine settings) for each board combination  Controls to monitor and adjust adhesive temperature and viscosity 41
  • 42. STATE OF ART: CONVERTING  Three minute change anilox rolls  Ink control systems: now temperature  Bobst PolyJoiner, AMS’s Tri-Feeder  New prefeeder systems  Lighter weight back anvil covers 42
  • 43. STATE OF ART: CONVERTING  Flexos 15,000-20,000 blanks/hour  Continuous run, set up while running  Non-crush converting-Emba and others  Robotic bundle handling-Automatän  Optical scanners: adhesion and slots 43
  • 44. SHELF-READY AND RETAIL-READY PACKAGING Courtesy of Mid-Atlantic Packaging 44
  • 45. REQUIRES INNOVATION AND REDESIGN  Doublewall: E/B, B/B, E/E, E/F  Design for smaller boxes, boxes with master pack, RRP, SRP, counter displays, headers  Faster merging of small flute and folding carton applications  Greater opportunities for small flute now that emerging containerboards are available.  Carton within a carton 45
  • 48. THIRD EDITION: END USER NEEDS 48
  • 51. RESOURCE: 2ND SCIENCE OF PAPER SCHOOL 51
  • 53. It’s All About Crushing the Board MD TORSIONAL STIFFNESS AND BOX PERFORMANCE
  • 54. WHAT DOES THIS RAILWAY BRIDGE… …AND A PIECE OF CORRUGATED BOARD HAVE IN COMMON? 54
  • 55. CORRUGATED BOARD Caliper Bending Stiffness = Tensile Stiffness of the Liners x Board Caliper² 55
  • 56. MD TORSIONAL STIFFNESS Why is MD Torsional Stiffness Important? 1. MD Torsional Stiffness is a measure of the “Structure” of the whole board but especially the flutes 2. MD Torsional Stiffness failure leads to Bending Stiffness Failure 3. Bending Stiffness Failure leads to Compression Failure 4. Compression Failure leads to Box Failure 5. Box Failure leads to very unhappy clients 6. If you don’t measure it you can not control it 56
  • 57. WHAT PROPERTY BEST DEFINES ‘STRUCTURE’ MD Torsional Stiffness Unstrained board flute profile Liner movement indicated by arrows 57
  • 58. MD TORSIONAL STIFFNESS There are three important times when you need to know about MD Torsional Stiffness 1. When you are making it 2. When you are destroying it 3. When you are guaranteeing your box performance 58
  • 59. MD Torsional Stiffness Testing An easy and accurate way to measure MD Torsional Stiffness using a natural resonance technique 59
  • 60. BUILDING IN TORSIONAL STIFFNESS: CORRUGATOR INFLUENCES  Selection of liners and mediums – type, quality, basis weight  Corrugating temperature, moisture, friction, drag  Corrugating rolls – profile, size, wear  Glue application – film thickness, evenness, quality  Adhesion – pressure roll, tack development, temperature  Pressure rolls during drying  Slitting  Feed rolls anywhere 60
  • 61. CORRUGATOR LABYRINTH – THE CONVERTOR’S INPUT 61
  • 62. FLUTE PROFILE  C4 more triangular than C2  C4 better bracing, higher MDTS  Lower ECT and takeup factor (TUF) 62
  • 63. FLUTE SHAPE EFFECTS --------------MDTS bpi---------------- Construction, #s Construction, grammes Model est. C2 C4 ECT C2 ECT C4 36/31/36 K175(D150)K175 14.4 12.2 16.1 6.1 6.2 42/31/39 K205(D150)K190 15.6 13.3 17.9 7.0 6.1 42/31/42 K205(D150)K205 16.1 13.3 19.3 6.9 5.7 42/39/39 K205(M190HP)K190 21.2 17.7 23.2 8.1 8.0 42/39/39 K205(M190HP)K205 21.6 17.8 23.4 8.6 8.2 Averages 17.8 14.9 20.0 7.3 6.8 % Differences -16.4 12.4 -6.8 C4 is 34% Stiffer than C2 63
  • 64. CORRUGATING ROLL WEAR – C FLUTE 14 13 12 New module BPI 11 BPI and ECT 10 9 8 Worn module 7 6 5 ECT 4 9-Nov 19-Nov 29-Nov 9-Dec 19-Dec 29-Dec 8-Jan 18-Jan 64
  • 65. PERFORMANCE – BASIS WEIGHT VS. TORSIONAL STIFFNESS MEASURE 180 160 140 120 100 80 60 40 20 0 Combined Basis Box Performance Weight (#s/MSF) Index (BPI) Lightweight B/C DW 96.3 14.2 (24.6/16.4M/16.4M/18.4M/20.5) Standard B/C DW 159 15.3 (42.0/23.0M/29.0/23.0M/42.0)
  • 66. B/C DW – PITCH RATIOS BC flute with conventional pitch ratio of 11/9 BC flute with adapted pitch ratio of 4/3 BC flute with adapted pitch ratio of 3/2
  • 67. TYPICAL IMPROVEMENTS ON CORRUGATOR USING MD TORSIONAL STIFFNESS Kiwi Fruit Board Grade BPI Comparisons # Paper Make up Comments BPI 1 DCK170(M190HP)K175(D115)K230-BE 2011 Grade 31.6 CONTROL ML's MB's 2011 Exisiting B SC adds 9.2% BPI ambient even 2 DCK170(SC180)K135(D115)K230-BE 34.8 9.2% flute Rolls after reduction of middle liner. New B fresh rolls (no flank or New B flute Rolls 6.6% 3 DCK170(SC180)K135(D115)K230-BE 37.1 profile change) adds a further 13.3.12 (14.8%) 6.6% 4 DCK170(M190HP)K175(D115)K275-BE 2011 Grade 31.4 CONTROL I T's 2011 Exisiting B SC adds 9.2% BPI ambient even 5 DCK170(SC180)K135(D115)K275-BE 34.8 9.8% flute Rolls after reduction of middle liner. New B fresh rolls (no flank or New B flute Rolls 14.3% 6 DCK170(SC180)K135(D115)K275-BE 40.6 profile change) adds a further 13.3.12 (29.3%) 14.3% Ian, i'm sending this to you in confidence. F.Y.I. and you may find interesting. The calipers have also increased & ECT only marginally. M The xls is pretty self explanatory but we have 3 sets of figures from numerous tests Dec '11 though to last week in 4'12 comparing old 2011 CONTROL & failing Kiwi Fruit Trays to new Semi Chem data & recently new B flute rolls installed 13.3.12 ..NOTE the new B flute is not a new flank clearance/profile/T//Up its just a straight replacement. Without knowing the MDTS, these impressive improvements would not be identified 67
  • 69. C FLUTE CRUSH VS MDTS AND CALIPER 100 90 Caliper 2 R = 0.9627 80 70 60 Vaule (%) 50 DST 40 30 20 R2 = 0.9903 10 0 0 5 10 15 20 25 30 Crush (% ) 69
  • 70. MDTS BEFORE & AFTER CONVERTING - USA 16 14 12 10 DST (bpi) 8 6 4 2 0 C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 Sample Number 100 80 DST % Retained 60 40 20 0 C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 Sample Number 70
  • 71. USA DATA DST (bpi) Caliper ECT % Change board to box Sample Flute Board Box Board mm Box mm Board Box DST Caliper ECT 1 C 11.02 6.96 4.34 4.06 66.84 51.03 -36.8 -6.4 -23.7 2 C 5.74 3.32 3.89 3.63 36.32 33.65 -42.2 -6.5 -7.4 3 C 14.28 11.58 4.17 4.19 50.14 50.42 -18.9 0.6 0.6 4 C 9.16 1.5 4.04 3.73 40.86 37.81 -83.6 -7.5 -7.5 5 C 8.52 7.52 3.96 3.99 37.8 34.52 -11.7 0.6 -8.7 6 C 8.28 5.52 4.14 4.09 48.48 49.69 -33.3 -1.2 2.5 7 C 6.86 6 3.81 3.78 33.84 33.99 -12.5 -0.7 0.4 8 C 11.68 7.24 4.11 3.97 45.1 42.7 -38.0 -3.5 -5.3 9 C 10.52 7.62 4.11 3.99 48.81 43.76 -27.6 -3.1 -10.3 10 C 10.06 4.84 4.16 3.86 47.3 41.4 -51.9 -7.2 -12.5 Ave 9.6 6.2 4.1 3.9 45.5 41.9 -35.7 -3.5 -7.2 Min 5.7 1.5 3.8 3.6 33.8 33.7 -83.6 -7.5 -23.7 Max 14.3 11.6 4.3 4.2 66.8 51.0 -11.7 0.6 2.5 71
  • 73. TCY40 PRINTER After gap adjustments 16 Corri Increase in MDTS = 35.6% Caliper mm 14 13.5 13.6 13.6 13.6 Corri BPI 12.2 BPI Log—Conv. Print Caliper 11.9 12 11.2 10.8 10 Conv Exponential—Conv. Print BPI Plain Caliper 7.9 mm 8 7.6 Conv Plain BPI 6 Caliper 4.01 3.98 3.95 4.12 4.12 4.08 4.08 4.02 4.1 3.9 4.1 Conv 4 Print Caliper Exponential--Conv. mm Plain BPI 2 Conv Print BPI 0 Feed ex Corrugator TCY 40 no setting 1st TRIAL increased 2nd TRIAL increased 3rd TRIAL decreased # 4th TRIAL decreased # changes as we found it. Infeed rollers 0.75 to 1.7 stacker infeed from 7.5 1 print station Green 2.7 2 print station Blue 2.8 to (not calibrated) BPI not to 9.0 to 3.5 3.2 recorded. Estimate between 7.6 to 7.9 Trial Action 73
  • 74. MDTS AND STACKING PERFORMANCE 74
  • 76. COST SAVINGS MODEL Medium Offset Actual = tested DST ALTER board grades & prices Use -5.057 lbs to gsm x = 4.882 RF -5.057 SC -2.057 USA Board Grade - C Flute Cost/1000ft² DB Medium SF Actual Theory DST Old Board $ 27.44 Now 35 23 35 9 11.0 New Board $ 25.20 New 31 23 31 10.0 Cost Savings $ 2.24 Cost % savings 8% Weight savings (lbs) 8 Wgt % savings 8%
  • 77. WHO IS TESTING MD TORSIONAL STIFFNESS? Australia Estonia Hungary Poland Austria England Ireland Scotland Belgium Fiji Italy Spain Chile France Lithuania Sweden Czech Republic Germany New Zealand Thailand Denmark Holland Papua New Guinea USA 26 Australasia/Pacific 88 Europe USA - ? 77
  • 78. MD TORSIONAL STIFFNESS IS:  The missing major strength property of corrugated board  The property that tells you how well you make your board  The property that tells you how badly you crushed your board  The property that tells you how well your board will perform in the service environment  The property that leads to box failures in a stack  The major property you need for quality control  The property that allows you to optimize board grade performance 78
  • 79. IMPLEMENTING AN MD TORSIONAL STIFFNESS PROGRAM WILL ALLOW YOU TO:  Improve the quality of corrugated board off the corrugator.  Improve the quality of finished boxes off the RDC/FFG.  Reduce damage during conversion  Setup a QC system to guarantee optimal performance  Reduce board weight  Shift money from raw material cost to the bottom line  Reduce customer complaints  Keep an eye on your competition 79
  • 80. Rethinking Processes, Retrofitting Equipment and a Better Way to Monitor Board Performance CONVERTING THE NEW LIGHTWEIGHTS Sarilee Norton, President Ralph Young, AICC Technical Director Randy Banks, President, Sharp-International