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CCTI is Nashville Bound for the 2020 Annual Meeting & CMA Fest!
We are headed to Vegas!
Early Bird Registration is Open for the CCTI Fall & Technical Meeting,
September 26-27 
Headed to PACK EXPO? Be sure to join us at the CCTI Exhibit Booth, C-1248!  Be sure to make plans to join us for the CCTI 2019 Fall & Technical Meeting in Las Vegas on September 26-27, immediately following the PACK EXPO trade show!

We have special room rates at the  Las Vegas All Suites Marriott near the convention center and three blocks from the strip, that will be valid during the PACK EXPO show and over the weekend, if you choose to stay and play!

Click here to book online! Our special $159 rate will be available until August 29, 2019.  This all suite property offers extra room to relaxing or hosting small meetings in your hotel living room.

Register for the meeting by clicking here. Make plans to attend and watch for speaker details in August!
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CCTI is Nashville Bound for the 2020 Annual Meeting & CMA Fest

guitar_strum.jpg Get ready to scoot your boots and mark your calendar to join CCTI for the 2020 Annual Meeting in Nashville, TN!  

Join us June 3-4, 2020 at the beautiful Gaylord Resort in Nashville. The CCTI meeting will be held minutes from the airport and only 15 minutes from all the fun and festivities of CMA Fest!  

Best of all, our CCTI special room rate of $239 is available
DURING THE FESTIVAL too!  Bring your family and come for the networking and educational meetings, but plan to stay for some country sized fun! Watch for more details in the fall!
Industry Directory Updates 
& Advertising Opportunities!

It's that time of year, CCTI is currently updating the Annual Industry Directory!  Additionally, for the first time,  CCTI is offering advertising in the publication to help connect your company brand with the industry!  Several opportunities are available, click here  for more information on special member advertising rates or to update your listing!  You can also contact the office for more information. Email us at or call 703.823.7524

New Crossroads Paper to open Salt Lake City liner mill with set supply-chain connection to recycler, CellMark

A 10th US containerboard machine project set for the next 2½ years emerged this week. This one would be the seventh of the 10 committed to producing 100% recycled containerboard and be the third one of the group that is a greenfield operation.

The newly-formed Crossroads Paper plans an early 2022 startup of a 342,000 tons/yr machine that is expected to be about a 220-in Valmet unit. Crossroads Paper plans to soon purchase property for the mill complex that is expected to be within about 30 miles of Salt Lake City, where 1.2 million people live in the metropolitan area.
The machine is to make 985 tons/day of lightweight board, possibly as light as 19- to 21-lb.

"You've got to have a lightweight component," said an official involved in the project.  Logistics. Logistics. Logistics.  Further, the official said that "logistics will be the key."

Crossroads expects to sell as much of its recycled board to corrugators in Utah as possible as well as along the West Coast and also to backhaul recovered paper material as much as possible. The West Coast is a heavy old corrugated container-generating (OCC) region and with new import rules that have dramatically cut US exports to China, Crossroads' officials see strong potential for OCC supply. They also see steady board demand from corrugators in Utah and in California, such as the produce-heavy Central Valley.

Some corrugated possibilities in Utah might include Packsize with its box-on-demand system in Salt Lake City; Proctor & Gamble, which runs probably the largest tissue paper machine in North America along with a large converting plant complex in Box Elder County, UT, that is 160 miles from Salt Lake City; and Packaging Corp of America, which operates two corrugated plants in Salt Lake City and although largely a virgin containerboard producer may be interested in close-by recycled content board in a "freight minimizer move," a Crossroads official said.

One company official also expected new corrugated plants will be started up near the mill. The closest linerboard mill to Salt Lake City is Bio-Pappel's McKinley Paper mill in Prewitt, NM, which is 525 miles away.

Mill supply chain in place. Related to the OCC and mixed paper supply for the Valmet machine, and for containerboard sales, the Crossroads Paper CEO is John Sasine, who owns Rocky Mountain Recycling in Salt Lake City. Rocky Mountain Recycling will feed OCC and mixed paper to the machine. The recovered paper that Rocky Mountain Recycling generates now is shipped out of state. For the Crossroads machine, it stays in state on a short-haul basis, a company official said.

Rocky Mountain Recycling operates in five facilities: two in Salt Lake City, one in St. George, UT, that is two hours from Las Vegas, one in South Salt Lake, and one in Pleasant Grove, UT, near Brigham Young University in Provo.

Sasine's brother Ron is also the project developer for the containerboard machine project and Yates Engineering is involved as well. The board made on the machine will be sold by CellMark, a large US recovered paper company on the domestic and export markets, and a domestic paper seller and large export linerboard trader. CellMark has no ownership stake in Crossroads Paper.
Crossroads Paper will own the machine and the mill site. The lead financer for the $320 million project is Credit Suisse.

One official said Utah was chosen because of the Sasines' connection in the state and also because of the "business friendliness" from Utah government officials. At the announcement of the project this week at the University of Utah's scenic Red Butte Garden botanical garden, Utah's Republican Lt. Gov. Spencer Cox attended.

24.5% build in recycled capacity. With the Crossroads machine, US containerboard capacity is to grow by about 3.26 million tons from now to 2022, based on the 10 announced projects. Of the 3.26 million, 70% or 2.2 million tons are to be 100% recycled content, which would be a major boost in US recycled containerboard capacity. If all 10 projects were completed, the new capacity including Crossroads' would boost US recycled linerboard production by 24.5% from 6.0 million tons last year to about 7.47 million tons by the end of 2022, based on PPI Pulp & Paper Week research.

Most of the new recycled capacity is planned in the US South and Midwest. Only 22% would be in the West, from Crossroads, and Bio-Pappel's McKinley Paper project for converting two groundwood paper machines at the former Nippon Paper mill in Port Angeles, WA, to up to 240,000 tons/yr of recycled containerboard and kraft paper.

Capacity surge potential. Today's recycled containerboard capacity surge in the USA stems from moves to lighter weight linerboard and sustainability projects, growing US box shipments the last five years, and also because a 13 million short tons/yr US recovered paper export market in 2017 has dried up to what looks like it will be an estimated 6 million tons/yr in 2019. The government of China has threatened to ban all recovered paper imports, and banned mixed paper and set a strict 0.5% contaminant rule on imports in 2018.  This has caused OCC oversupply in the USA, with prices today at a 25-yr low and some material landfilled.

Recycled capacity has grown at the same time that consolidation has surged in the US containerboard industry. It's also grown as US corrugated box shipments grew by 9% from 2014 through 2018, or 1.8%/yr average growth. In the last 10 years since the Great Recession, recycled production grew by nearly 50% to the 6.0 million tons in the USA in 2018, according to American Forest & Paper Association figures. Side-by-side by the containerboard capacity project bulge is dramatic expansion in corrugated plants. Fourteen are planned for the USA from the start of this year through to early second half next year.

At the same time, North American containerboard capacity became highly integrated with 75-80% today managed by four large companies. That high integration has also meant a lack of or hard-to-find kraft linerboard on the open market, according to contacts.
Also, producers like Smurfit Kappa Group and DS Smith are today branding their businesses on sustainability, recovered paper recovery, and recycled-content containerboard at light basis weights for corrugated boxes.

In Europe and China today, producers already make 16- and 18-lb linerboard, respectively, out of recycled furnish, contacts have said.
Novolex receives SQF third party certifications for food packaging materials from its facilities in Alsip, IL, Chicago, and Orangeville, ON

Novolex, an industry leader in packaging choice and sustainability, received Safe Quality Food (SQF) third party certifications for production of food packaging materials manufactured at facilities in Alsip, Ill., Orangeville, Ont. (Canada) and Chicago.

SQF certifications were obtained for the first time at the Alsip facility, which manufactures packaging under the Duro Bag brand; and at the Orangeville facility, which manufactures a number of products including those sold under the Shields brand. Two Chicago facilities that manufacture Bagcraft products and the company's line of General Packaging products received their annual SQF Food Safety Level (formerly Level 2) recertifications. SQF is a widely recognized standard used to qualify manufacturers of materials used in the production and packaging of food and is part of a broader framework of food industry standards under the Global Food Safety Initiative.

"We're excited to add the Alsip and Orangeville plants to our list of SQF certified facilities," said Ben Mascarello, Chief Operating Officer at Novolex. "SQF certifications tell our customers that we meet important standards for packaging quality and safety. And while every Novolex facility fulfills its customer quality requirements, third party certifications offer our customers additional validation that we are executing consistently against a tightly defined set of food safety standards."

Mascarello added: "We have a plan to continue the certification of all Novolex facilities, including those locations where it isn't expected by our current customers. We have dedicated resources to this strategically important effort as a part of our commitment to manufacturing excellence and food safety."

Certification can assure that production of materials meets the highest standards and help qualify manufacturers to meet key customer specifications. Certifying bodies follow a rigorous audit process that can take up to 12-18 months for an initial audit. The certification of the Alsip manufacturing center was performed by NSF International, an independent public health and safety organization. The Bagcraft and General Packaging Production facility audits were performed by Intertek. Audits are underway or planned at additional Novolex facilities.
Mexico pushes recovered paper imports back amid oversupply; local OCC prices keep stable in July

Mexican demand for recovered paper remained feeble in July amid several reports of full inventories in the country and attempts to keep domestic prices stable. According to sources, some Mexican mills are even refraining from importing any volumes this month, as they can't receive any extra capacity: "Mexico orders did go to zero, all orders were cut," a source said.

Market participants in both containerboard and white recovered paper markets reported to PPI Latin America that capacity issues have caught up with the industry. As the market is soft, a very small amount of recovered paper is being purchased from the US to Mexico. "The Mexican mills just don't need the paper. They are withdrawing tonnages as inventories are still high. It's hard to believe that big players are just putting recovered paper in warehouses, they're losing money on it."

According to a contact, even with the decline in generation, old corrugated container (OCC) suppliers, for example, have fewer places to send volumes, so they're paying less attention to orders and making sure they can fill them. "They sometimes call you and ask you to take more volumes than requested. You weigh the relationship, but of course it doesn't help inventories to go down."
Other sources commented that they are only getting volumes that are under contracts. "The whole month was a constant struggle with high inventories, I even had to as legally as possible push back on contract tons because we are so full."

In this scenario, prices for imported recovered paper from the US have dropped again in July, with OCC traded at $50/ton, down 58.3% over a year ago. US sorted office paper (SOP) exported to Mexico has also seen prices declining from $135-145/ton in June to $125-135/ton in July, down 44.7% vs July 2018. "We have an equal amount of SOP in warehouses as we do corrugated. It's really bad. Mexico is not back in, their mills are full still," a contact added.

Imported sorted white ledger (SWL) is negotiated for $250-260/ton (-23.9%) and coated groundwood sections (CGD) at $90/ton (-43.8%).  US hard white envelope cuttings (HWEC) export prices to Mexico also dropped to $370/ton in July, 21.3% lower than a year ago. "The market is still very soft. I thought it would tighten up a bit with the typical summer generation slowdown. However I still have suppliers begging for purchases of recovered paper," a contact stated. 

Meanwhile, imported old newsprint (ONP) prices were stable at $25/ton, slumping 54.5% annually.   The Global Trade Information System (GTIS) showed that through May, US exports of recovered paper to Mexico slowed 4.6% compared to the same period of 2018, at 669,064 tonnes. OCC exports slumped 19.3% to 148,805 tonnes, while high grades exports were 7.1% lower at 375,924 tonnes. In an opposite move, mixed paper and ONP exports to Mexico improved, respectively, 34% and 23% in the first five months of the year to more than 70,000 tonnes each grade.

Local market. As for domestic OCC prices, sources agreed that even though supply is high, prices were mainly unchanged in July compared to June. "Some mills seem to be protecting their supply chain by keeping prices from going too low or to levels that would interrupt collection," a contact said.

Another contact mentioned that the market is very calm, with a lot of local and imported volumes offered, which is adding pressure to the chain. A third market participant even commented that some mills are cutting purchases even from domestic suppliers: "They have inventories at maximum capacity and will keep at least three weeks with no new delivery."
Environmental services company GFL to acquire recycling processor Canada Fibers

GFL Environmental Inc. ("GFL") announced today that it has entered into a definitive agreement to acquire Canada Fibers Ltd. and its affiliates ("Canada Fibers"). The transaction, which is expected to close in the third quarter of 2019, is subject to customary regulatory approvals.

Based in Toronto, Canada, Canada Fibers has been a leading operator of material recovery facilities for the recovery and processing of recyclable materials for more than 28 years. Canada Fibers provides recycling processing services to municipalities across Ontario, including the City of Toronto through its technologically advanced single stream Arrow Road facility in Toronto, and to its institutional, commercial and industrial customers. Canada Fibers has also been awarded the contract to design, build and operate an advanced single-stream material recovery facility in Winnipeg, Manitoba, which will commence operations in the fourth quarter of 2019.

"Given the current state of commodity markets, we believe that now is the right time for GFL to acquire Canada Fibers, with its long established relationships with recyclable material buyers and its expertise in operating single stream material recovery facilities," said Patrick Dovigi, GFL's Founder and Chief Executive Officer. "The addition of Canada Fibers' operations to GFL's existing collection networks will create new opportunities to provide integrated collection, sorting, processing and marketing of recyclable materials. Canada Fibers is led by an experienced management team including Joe Miranda, who has over 40 years of industry experience, and we are excited to have Joe and the employees of Canada Fibers join the GFL team."

European Commission Summer 2019 Economic Forecast: growth clouded by external factors
The European economy is set for its seventh consecutive year of growth in 2019, with all Member States' economies due to expand. Growth in the euro area was stronger than expected in the first quarter of the year due to a number of temporary factors such as mild winter conditions and a rebound in car sales. It also benefited from fiscal policy measures, which boosted household disposable income in several Member States. The near-term outlook for the European economy, however, is clouded by external factors including global trade tensions and significant policy uncertainty. These have continued to weigh on confidence in the manufacturing sector, which is the most exposed to international trade, and are projected to weaken the growth outlook for the remainder of the year.

As a result, the forecast for euro area GDP growth in 2019 remains unchanged at 1.2%, while the forecast for 2020 has been lowered slightly to 1.4% following the more moderate pace expected in the rest of this year (spring forecast: 1.5%). The GDP forecast for the EU remains unchanged at 1.4% in 2019 and 1.6% in 2020.

Valdis Dombrovskis, Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: "All EU economies are still set to grow this year and next, even if the robust growth in Central and Eastern Europe contrasts with the slowdown in Germany and Italy. The resilience of our economies is being tested by persisting manufacturing weakness stemming from trade tensions and policy uncertainty. On the domestic side, a "no deal" Brexit remains a major source of risk."

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "The European economy continues to expand against a difficult global backdrop. All EU countries are set to grow again in both 2019 and 2020, with the strong labour market supporting demand. Given the numerous risks to the outlook, we must intensify efforts to further strengthen the resilience of our economies and of the euro area as a whole."

Domestic demand driving growth in the EU
While growth earlier this year benefited from a number of temporary factors, the outlook for the rest of the year looks weaker as prospects for a quick rebound in global manufacturing and trade have dimmed. GDP growth in 2020 is forecast to be higher, partly due to a higher number of working days. Domestic demand, particularly household consumption, continues to drive economic growth in Europe helped by the continued strength in the labour market. GDP is forecast to grow in all EU Member States this year and next but growth will be significantly 


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