International technology Group ANDRITZ has received an order from the Turkish Albayrak Group to deliver a new stock preparation line with a design capacity of 1,000 bdmt/d for its Varaka paper mill in Balikesir, Western Turkey. ANDRITZ will also supply the main components in the approach flow systems for the top layer of PM 2. Start-up is scheduled for summer 2018. Varaka will reinstall and rebuild the PM 2, which currently is a second-hand newsprint paper machine, into a modern brown packaging paper machine. After full conversion, the PM2 will have an annual production capacity of over 300,000 tons, with a design speed of 1,200 m/min and a paper width at reel of 6,500 mm. The machine will produce corrugating medium, imitation kraft papers, and white top testliner with a basis weight range of 90-175 gsm for the production of containerboard. The raw material is OCC and mixed waste paper for the new line, and stock from the existing DIP line for the top layer of white top testliner grades. Click Read More below for additional information.

A total of 28.1 million tonnes of specialty papers will be consumed in 2025, according to Smithers, the global authority on the paper and packaging industries. Competing factors will push overall consumption to 31.3 million tonnes in 2030, equivalent to a compound annual growth rate (CAGR) of 2.1% for the next 5 years. Flexible packaging papers are increasingly important to the industry. Demand is rising fastest for machine-glazed papers, already around half of global sales. Sales will also be strong for coated (C1S) packaging papers over the forecast period; several machine rebuilds are set to be completed in the US, and new machines coming on stream in China. The replacement of plastic by paper in packaging requires the development of better functional and barrier coatings. Most companies active in this space are investing in new coating chemistries, advanced substrates, and innovative ways to apply the barrier material. In addition to the coatings, using nano-cellulose to enhance both substrates and coatings is increasingly common.

Packaging Corporation of America reported third quarter 2022 net income of $262 million, or $2.80 per share, and net income of $266 million, or $2.83 per share, excluding special items. Third quarter net sales were $2.1 billion in 2022 and $2.0 billion in 2021. Reported earnings in the third quarter of 2022 include special items primarily for certain costs at the Jackson, AL mill for paper-to-containerboard conversion related activities. Excluding special items, the $.14 per share increase in third quarter 2022 earnings compared to the third quarter of 2021 was driven primarily by higher prices and mix in our Packaging $1.60 and Paper $.23 segments, lower interest expense $.04, a lower share count resulting from share repurchases $.04, and a lower tax rate $.02. These items were partially offset by higher operating costs ($.77), lower volume in our Packaging ($.52) and Paper ($.05) segments, higher freight and logistics expenses ($.20), higher scheduled outage expenses ($.10), higher depreciation expense ($.07), higher converting costs ($.04), and other expenses ($.04).