NOTIFICATION: The Technology Channels will be discontinued on July 31.
Click here to download complimentary copies of Fastmarkets RISI’s pulp and paper newsletters.

 

Corrugated: Bio-Pappel starts Lebanon, IN, plant, plans one for Dallas; interest rising for light-light liner

Read so far

Corrugated: Bio-Pappel starts Lebanon, IN, plant, plans one for Dallas; interest rising for light-light liner

May 29, 2020 - 19:57
Posted in:

SAN FRANCISCO, May 29, 2020 (PPI Pulp & Paper Week) -Bio-Pappel said that its McKinley Paper business officially started production on May 21 at its new corrugated plant in Lebanon, IN. This is the second plant started up in Lebanon in the last five months. London-based DS Smith started one in January for its focus on e-commerce business, contacts said. Both the DS Smith and McKinley/US Corrugated plants are close to each other in Lebanon.

Lebanon is Bio-Pappel/McKinley's sixth US corrugated plant. McKinley Paper/US Corrugated is also looking to start up a new corrugated plant this year in the Dallas Metroplex area in Texas, contacts said.

The company said the Lebanon plant is one of its best in "productivity" and has "advanced technology."

For integration to its US box plants, McKinley operates a 240,000 tons/yr recycled containerboard mill in Prewitt, NM, and started up a second mill several months ago in Port Angeles, WA. The company converted a former groundwood paper machine that is now capable of making 60,000 tons/yr recycled kraft paper for grocery bags. For its US board-to-box system integration, McKinley plans later this year to start up a second groundwood machine at the former Nippon Paper in Port Angeles. This second machine is larger than the first, with 160,000 tons/yr of recycled containerboard capacity.

McKinley at both mills will produce 100% recycled-content lightweight linerboard.

Lighter and lighter.Contacts have told Fastmarkets RISI'sPPI Pulp & Paper Weekof increasing interest in lighter weight recycled linerboard with a heavier corrugating medium, or a combination of linerboard and medium at the same, light basis weights. Already, recycled linerboard is being consistently made at 18- and 20-lb in the USA, contacts said. New-Indy Containerboard also plans to start up a converted unbleached kraft linerboard machine in Catawba, SC, that is to make "ultra" lightweight kraft linerboard.

Some of the lightest box design combinations mentioned this week toP&PWwere 18-18-18, 20-20-20, 21-21-21, and 20-26-20.

"There's also interest in changing the combinations to 22-lb, for example, instead of 35-lb high performance linerboard," one contact added. "Folks are interested in the savings in the box by better combinations."

The contacts added that key points for using lightest weight linerboard and medium is the design must be strong enough, and the "economics of the paper" must support the manufacturing and marketing so the cost to produce on a $/msf basis is "materially better than the most traditional lighter basis weights when you consider the speed (time) to produce."

 In Mexico,Bio-Pappelthis week said it plans two new corrugated plants from 2021 to 2023. Those plants are to be in Tizayuca, Hidalgo state, which is about 55 miles from Mexico City, and in Monterrey, Nuevo Leon, in northeastern Mexico.

 Cascadessaid it will close the Brown Containerboard Packaging facility in Burlington, ON, no later than July 31 "as part of the corporation's continuing optimization initiatives for its Containerboard Packaging business." A year ago, Cascades started up a new corrugated plant in Piscataway, NJ. "As part of the consolidation of our sheet plant operations in Ontario, we will be gradually redeploying production from the Brown facility to our other units in Ontario," Cascades Containerboard Packaging pres/COO Charles Malo said, in a release. "This decision was necessary to align present production capacities, position our platform for mid- and long-term success, improve productivity, reduce fixed costs and strengthen our service offering for our valued customers." Cascades has 45 workers at Brown Containerboard Packaging facility and is offering them positions at other Cascades facilities, the company said.

 FEFCOsaid thatGemayel Freres' Fady Gemayel was elected president for a two-year term of the corrugated packaging trade group. Gemayel succeedsKlingele Papierwerkemanaging partner Jan Klingele.

--bygrudder@fastmarkets.com