The independent news provider for the global tissue business Issue #3 May/June 2020 | Issue PANDEMIC SPECIAL EDITION

TISSUE SALES SURGE ACROSS THE GLOBE

Plus … ExitIssues Is tissue as green as it says? Country Report: Portugal Strong trend towards 30% exports Potential but slow growth Packaging Advances in optimum operational integration ConsumerSpeak ‘Increased public understanding is game-changer on environment,

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www.convermat.com T: 516.487.7100 F: 516.487.7170 In this issue... FrontIssues 3 Tissue sales surge across the globe as the industry comes together.

MarketIssues 4 Covid-19: Mills mobilising to meet sudden peak in demand, but a fall-off will follow as AfH especially hard hit. TWM interviewed tissue mills and industry insiders to get their reaction.

World News 12 A roundup of news from across the global tissue industry.

Country Report: Portugal 23 Net tissue exporter on trend towards three times more than country imports. By Fisher International.

Country Report: Portugal 26 Consumer tissue: 2020 disruption vs long-term opportunities. By Euromonitor International. Historic results: Cascades president and CEO Mario Plourde affirms solid ConsumerSpeak 28 growth progress in World News. The game changer in recent times has been access to tissue product information … allowing the public to make informed decisions on the environment, health Page 14 and wellbeing. London-based Mark Hendriksen talks to TWM.

Retail: Special Feature 29 ‘As panic buying soars, all suppliers emphasise the resilience of the supply chain that can adjust and be increased in relatively short notice.’ Pirkko Petäjä and Mikko Helin, principals at AFRY Management Consulting, weigh the short- and long-term consequences for consumer tissue growth and AfH tissue decline during and after the pandemic.

Logistics: Technical Theme 32 Covid-19 has led to a surge in demand for toilet paper, and concerns that tissue production and imports could grind to a halt. Yet logistics are adaptable and resilient. Sarah Laouadi, European policy manager of the UK- based Freight Transport Association, explains. FI FrontIssues 03 Packaging: Technical Theme 34 • Infinity Machine & Engineering Corp.: Ecova - helping to create a plastic- MI MarketIssues 04 free line at high speeds of 100ppm. • Fabio Perini: Automated Carbon-T and advances in ecological packaging. • Edson: Smarter case packing focuses on end-of-line throughput of AfH WN World News 12 tissue products. ExitIssues 40 CR Country Report 23 Recycled or virgin pulp … is sustainable tissue increasing or in decline? A report has claimed that the tissue industry is not as environmentally-friendly as it used to be. For TWM, freelance journalist Simon Creasey put the claim to CS ConsumerSpeak 28 UK-based tissue mills for their response. Ad Index 44 RS Retail Special 29 TT Technical Theme 34 EI Exit Issues 40

Cover: The panic buying and stockpiling of toilet paper soars following the world- wide outbreak of Covid-19. Image by Contrast Creative, Manchester, UK

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OUR FORMIDABLE ARMY OF PROFESSIONALS HAS GEARED UP TO MEET UNPRECEDENTED CHALLENGES … AS TISSUE BECOMES A ‘STRATEGY ASSET’ Helen Morris Senior Editor, Tissue World Magazine e are enduring extraordinary times. It seems unreal that a pandemic of such tragic consequences was unthinkable just a few months ago.

W Before the relative consumer calm recently established, panic buying of EDITORIAL HEADQUARTERS essential products stripped the shelves bare. Tissue is a top must-have. Informa Markets – Singapore 10 Kallang Avenue, #09-16 Aperia Tower 2, Singapore 339510 In Hong Kong, knife wielding robbers attacked a tissue delivery man to seize 600 Tel: +65 6233 6688 Fax: +65 6233 6633 toilet rolls … their value HKD1,695, US$218, £167. In Australia, two men threatened a Deputy Event Director & Publisher supermarket employee with a knife, for 500 rolls. In Germany, a famous tissue supplier’s Agnes Gehot: [email protected] three trucks were hijacked. Senior Editor In stores, scuffles broke out over the last pack of toilet roll. Rationing was introduced. Helen Morris: [email protected] Customers grabbed their limit, and headed off to other stores to top up. Lockdowns were Executive Director Chris Kilbee: [email protected] imposed with varying degrees of success, so online shopping soared. Websites crashed CEO under the increased traffic and stores stopped new customers registering. New delivery Margaret Ma Connolly: personnel were brought in and orders successfully placed failed to turn up. There were [email protected] reports of thefts on route. ADVERTISING ENQUIRIES At the time of writing, a measure of demand and supply-side balance has been reached. Italy, Germany & North America In this edition of TWM – online only out of understandable necessity - a seven page Silvio Arati T: +39 02 4851 7853 Pandemic Special Report looks at the shockwaves which rolled across the industry in all its [email protected] sectors. In China, the virus forced mill closures. Larger companies in major tissue regions South and Central America kick-started PMs that had been closed earlier under restructuring. Elsewhere, including in Selma Ugolini North America and Europe, mills mobilised all reserve capacities. T: +55(11)99904 5350 [email protected] Sales curves rose sharply. A small sample, again at the time of writing: in the US, the No. China, Hong Kong & Macau 2 company registered a 5,000% online increase; in Australian, Who Gives A Crap's chief Jennie Zhan executive Simon Griffiths charted sales five times higher; in the UK, Bumboo’s Fay Pottinger, T: +86 20 86660158 [email protected] trading for just seven months, reported sales going "crazy," up 325%; one eBay trader asked £84.99 for a 72-pack of Andrex toilet rolls – triple its retail price; and two-weekly TISSUE WORLD MAGAZINE sales of toilet rolls at Essity’s Salford, UK depot, rose from 24m to 63m. is published bi-monthly. The subscription price is US$400 per year for 6 issues. Subscription is free for qualified subscribers in the tissue industry. And the response, again a small sample: Kruger Products’s chief executive Dino Bianco says: “In my 30 years in the grocery and CPG industries, I have witnessed how strong and Please send address corrections to: Informa Markets – Singapore. resilient these industries are.” 10 Kallang Avenue, #09-16 Aperia Tower 2, Singapore 339510 Better All Round/Consuma Paper Products’s founder and chief executive Oday Abbosh Tel: +65 6233 6688 Fax: +65 6233 6633 says: “It is frantic … everyone has been taken aback by the speed with which it has [email protected] accelerated worldwide. However, there have also been huge positives. The way retailers, our Subscription online at industry and our employees have all stepped-up is fantastic and brings immense pride.” www.tissueworldmagazine.com A “banner year for tissue” is in prospect, says Fastmarkets RISI’s Esko Uutela, principal, In Tissue World all measures are metric and all dollars ($) are US dollars, unless otherwise stated. Copyright tissue, who goes on to weigh the likely downside of the projected hit taken by AfH sales as 2005 – 2020 by Informa Markets –Singapore. All rights bars, pubs, clubs, restaurants and hotels remain shut, even as some restrictions begin to be reserved. All materials printed in Tissue World magazine eased. What of the future post-pandemic? Consumers have been taken a long way out of is owned by Informa Markets – Singapore and protected under the copyright act. No material may be reproduced their comfort zones, and the global economy is facing a severe shock the size of which will in part or in whole without the prior written consent of only unfold in time. Informa Markets – Singapore. TWM examines the impact on tissue from all angles: the ‘banner year’ for demand, the industry response, the likely progression through the remaining months of pandemic, and looks ahead to the landscape once things return to normal. It is not going to be the same normal. Product loyalties will have shifted, new favourites found, shopping routines changed, production techniques tested under extreme pressure, new advances found. The rise of e-commerce will continue. Part of that new ‘normal’ seems certain to be a looming Millennial cultural shift beginning in tissue’s top nation. Jason Ojalvo, CEO of Tushy, a US bidet company founded in 2015, reports that in the first week of March he saw sales doubled over the previous month, then tripled, and then 10 times increased until a peak of 1,000 units per day. San Francisco- based Brondell Inc. at one point was selling a bidet every two minutes, or 1,000 units a day. For now, TWM’s important wish for all: “Stay Safe.”

Tissue World Magazine | May/June 2020 3 MarketIssues MI 4 plans inplace toaddress theincreased understand theircurrent needs.We have with ourretail partners andcustomers to to stores”. Itsaid:“K-Cisworking closely best toensure asteadysupplyof product wants toassure consumers itis“doing our Kimberly-Clark (K-C): in HubeiProvince.” Vinda, allproduction isupandrunning, also where we operate through oursubsidiary products, duetotheCoronavirus. InChina, disruptions inproduction, for anyof our measures. Atthemoment,we have nomajor production disturbances andstarted totake expected increase indemand andtheriskof demands. Already inJanuarywe saw an “We don incontinence care products. towels, baby diapers, feminine care, and products, thatistoiletpaper, household increased demandgloballyfor ourconsumer A spokesman toldTWM:“We have seen to panic-buy andbecommunity-minded. of itssupplychainandurged consumers not a year earlier. Itemphasisedtheresilience of March –compared to24mthesametime sold 63mtoiletrolls inthefirst two weeks Essity: adjust andsafeguard citizens. flights andhotelstemporary closedown to shutdown socialactivityasrestaurants, bars, sector isespeciallyhard hitasmanynations Even duringthepresent surge, theAfH fall-off. peaked –willalsolikely seeasubsequent time of publication,hasmostlikely notyet sudden surge indemand–which,atthe forecasts forthefuture insiderstogettheirviewsonhow thepandemicisimpactingtissuemarket tissuemillsandindustry –andtheir TWM interviewed SPECIAL PANDEMIC T CITIZENS. FLIGHTS AND HOTELS TEMPORARY CLOSEDOWN TO ADJUSTAND SAFEGUARD HIT ASMANYNATIONS SHUTDOWN SOCIALACTIVITYASRESTAURANTS, BARS, EVEN DURINGTHEPRESENT SURGE,THEAFHSECTOR ISESPECIALLY HARD MI world-wide outbreak of Covid-19. The production increases following the bracing itselffor furthersubstantial he world’s tissue industryis ItsSalford, UK-basedtissue facility ' t have anyissues meetingthese MarketIssues Tissue World Magazine K-C toldTWMthatit |

May/June 2020 artificially boostedoursales for thetime impact. Althoughtoilettissue madness has “Business wise, we are now bracing for partner andtechnicaldirector, toldTWM: UK-based Poppies Europe: predictable shoppingpatternsoon.” will settledown toamore normal and now stockpiled–themajorityof shoppers all hopingandperhapsexpecting thathaving “At themoment,we are coping well. We are – hence mostare now rationing. on manufacturer, hauliers andretailers alike placing heavy and quite unnecessary demand sales. Thispanicbuyingisunfortunate asitis – insomecases300%+basedonEPOStill “We are seeing a substantial uplift in demand Millward, salesandmarketing director, said: UK-based Leicester Tissue Company: continued supplyof ouressential products.” authorities. Theseplansalsohelpensure the in linewithguidance from global health centre operations, whichwere developed measures for ouroffice, millanddistribution These measures includeenhanced safety people andtheirfamilies safe andhealthy. and K-Chastaken extra stepstokeep our and safety of ourpeopleistoppriority, our plans as necessary. In addition, the health “We willcontinue tomake adjustmentsto these needs. and reallocating inventory tohelpmeet possible, includingaccelerated production demand for ourproducts totheextent North Americaare working atfullcapacity challenging time. Its eightfacilities across they needduringthisfast-changing and working hard tomake sure peoplehave what Kruger Products: measure toadjustandseeitthrough." being. Butwe are now takingthenecessary The company saiditwas Armindo Marque, Frank permitted toenterthesefacilities. Anyone employees andthosedeemedcriticalare health andsafety protocols. Andonly products. We have enhanced ouremployee any manufacturing, given thenature of our among thecleanestandmostsanitaryof Products, said:“Our production facilities are Dino Bianco, chief executive, Kruger supply issues.” strong andwe donotanticipateanyproduct supply ofAmerica. Itadded:“The materialsis are primarilysourced inNorthandSouth The company’s fibre andothermaterials their customers tostocktissue products. and optimisingproduction towork with serving ourcustomers remains our priority immense pride. Lookingafterourpeople and have allstepped-up isfantastic andbrings retailers, ourindustryand ouremployees there have alsobeenhuge positives. Theway relation toweakening currencies. However, have tosee whattheramifications willbein pressure onthesupplychainandwe will worldwide. Panic buyinghasputimmense by thespeedwithwhichithasaccelerated In reality, everyone hasbeentaken aback executive, andowner, toldTWM:“Itis frantic. Products: UK-based BetterAllRound/Consuma Paper it added. facilities are “currently producing asusual,” for theseessential goods. ClearwaterPaper’s operations toserve itscustomers’ demand It isfocused onensuringcontinuous packaging food and pharmaceutical products. increase indemandfor paperboard usedfor demand for itsretail tissue products andan experiencing “asignificantincrease” in situation. Thecompany saiditwasalso monitoring therapidly evolving Covid-19 Clearwater Paper Corporation: and products moving.” through andhave thesupplytokeep food situation, theseindustriesare pulling have theessentials. Whilethisisa unique committed they are tomakingsure people and resilient theseindustriesare, andhow industries, Ihave witnessed how strong “In my30years inthegrocery andCPG wishing toenterissubjectscreening. Oday Abbosh,founder, chief Itisclosely MI MarketIssues 55 May/June 2020 2020 May/June May/June

|| supply chains just as consumers rushed to supply chains just as consumers Vinda In response, toilet paper. purchase an older PM at its oldest reopened Paper that had been closed mill in Guangdong the lost part of in mid-2019 to replace in Hubei. production the region, in the Asia Pacific Elsewhere in in China caused worry developments their tissue a major part of that source areas we believe the most important value is believe we ability to adapt swiftly to the resilience: That the economy. moments of the new that our I am convinced where is an area will excel.” company as an extension This took place Province. holidays, which Year the Chinese New of slightly January 25, or even started around at mills. Hubei taken earlier with downtime Chinese is not a major hub of Province than less for accounting production, tissue although capacity, Chinese tissue 5% of as APP, such players, the largest some of and the Shanghai C&S Paper Vinda Paper, But the mills there. have Group, Taison mills in Hubei disrupted the of closure increase in production of jumbo rolls for for jumbo rolls of in production increase helping other well- market, the consumer the overcome to established companies in demand. increase huge the pandemic “The crisis stemming from to anticipate us for has been an opportunity an important product of the introduction the toilet and towel strategy: our future for a quality we with unbleached pulp, rolls packaging. with cardboard call "Nature", the In addition, it has also reinforced already we where channel, e-commerce believe We had an important presence. will increase the e-commerce that some of the after the end of be permanent even pandemic. one, the current crisis like “In moments of Tissue World Magazine Magazine World World Tissue Tissue Chief executive Joan executive Chief At first, many mills in China were forced forced were many mills in China At first, including all mills in Hubei to close, is undoubtedly entering a recession, is undoubtedly entering a recession, how deep although it is difficult to estimate I In the following, will be. the downturn detail what has in a bit more will discuss in might expect happened and what we months in the global tissue the coming distinctly will have Covid-19 business. consumer on the consequences different But to start, let's sectors. tissue and AfH the virus was found, on China, where focus as a whole, region and the Asia Pacific Europe to Western continuing before to the and North America, the latecomers scene. coronavirus pandemic and its consequences on daily pandemic and its consequences employment, to move, freedom life, and companies, and liquidity of operations as a whole – which the global economy “To cope with that situation, we have have we with that situation, cope “To our workers the vacations for rescheduled shifts of the organisation and reformulated the production decrease to temporarily of restart awaiting the we are while figures, That is something that we market. the AfH 2020 until almost the end of don't expect the world, of both in Spain and in the rest Spain will be particularly believe while we affected. our PM3 regarding the other side, “On the replaced have we line, production sharp a with sector AfH the from loss market Spain’s L.C. Paper: L.C. Paper: Spain’s situation Vila told TWM: “The economic is pandemic the Covid-19 from resulting for The main market complex. extremely clients which comprises is AfH, L.C. Paper airports, schools, hotels, restaurants, like hospitals, for hospitals... Except colleges, has stopped dead, so the market of the rest have those areas our clients from most of This has profoundly abruptly. disappeared line. our PM2 production affected RAMIFICATIONS WILL BE IN RELATION TO WEAKENING CURRENCIES.” TO BE IN RELATION WILL RAMIFICATIONS “IN REALITY, EVERYONE HAS BEEN TAKEN ABACK BY THE SPEED WITH WHICH BY THE SPEED ABACK TAKEN HAS BEEN EVERYONE “IN REALITY, PUT IMMENSE BUYING HAS PANIC WORLDWIDE. IT HAS ACCELERATED THE SEE WHAT TO HAVE CHAIN AND WE WILL SUPPLY PRESSURE ON THE

Esko Uutela Esko RISI Principal, tissue, Fastmarket There is only one really hot topic discussed hot topic discussed is only one really There the Covid-19 in the world: everywhere As the world is set for recession, this is shaping up to be a banner year for consumer tissue producers. Bathroom product sales tripled, product Bathroom for consumer tissue producers. is set for recession, this is shaping up to be a banner year As the world the a major hit in months ahead. What does store prices jumped 8.6%, but AfH to take shifts for converting, extra mills on full capacity, Uutela, principal, tissue. RISI's Esko Fastmarkets pandemic mean for the global tissue business? Report by Covid-19 ANALYSIS: INDUSTRY INSIDERS effort brilliantly demonstrates how our how brilliantly demonstrates effort if necessary.” together industry can come able to get products into store quickly and quickly into store products able to get a all parties and create easily on behalf of all. This collaborative win win situation for invoicing – already being in place. – already invoicing the Consuma of “By opening up components been have parties, we supply chain to third The challenge has been in finding a way The challenge to do this without the wider supply chain and sales, ordering – e.g infrastructure “With factory production capacity at its capacity at production “With factory been have retailers many suppliers, max for their supply. ways to increase looking for whose supply included away from home from away whose supply included sales to some destinations – to quickly pivot partners. retail our key of help the industry as a whole meet the help the industry as a by faced demand of levels extraordinary a facilitated this end we’ve To retailers. – including those competitors selection of times, be considered competitors. times, be considered to done this in order He said: “We’ve He added that given the “unprecedented the “unprecedented He added that given the step to open has taken times”, Consuma and resource up its supply chain expertise that might, in other to help businesses brilliant suppliers who have also stepped up also stepped have who brilliant suppliers supply.” of continuity ensure big time to and we are doing everything we can to look we doing everything are and we to our also grateful are We after everyone. MI MarketIssues MI 6 tissue. Onemightexpect thattissue exports China istheworld largest exporter of a setdatefor reopening. 60,000tpy tissue PM,remains shut without Chenming's millinWuhan,including one per year, respectively. ButShandong tonnes peryear and300,000tonnes Xiaogan, whichhave capacitiesof 240,000 production attheirtissue papermillsin International have alsorecommenced Top producers APPChinaandVinda Xiaogan, amajortissue production hub. 140,000 tonneperyear tissue papermillin April. On14March, C&SPaper restarted its are allowed toenterbutnotleave until8 capital city, andelsewhere inChina,people excluding Wuhan,were lifted.For the March travel restrictions onHubeiresidents, allowing trucksandcars through, andinlate In Hubei,roadblocks have beenremoved, from theprolonged stoppage. paper industryhasgradually recovered for personnel, were inplace. Thepulpand measures againstthevirus,includingmasks on thecondition thatsufficient protective allow businesses toreopen from March 10 sharply inMarch, localauthoritiesbegan to with thenumberof new casesfalling totally stoppingthepandemic.InChina, spreading of theinfection, althoughnot have beenabletostopthemassive measures, China, South Korea and Singapore In Asia,thankstoradical restrictive strategic asset? just afew monthsago. Istoiletpapera that would have beendifficulttoimagine with toiletpaperwashijacked—a situation purchases. AndinHongKong, alorryloaded Woolworths inrationing toiletpaper Coles, AldiandCostco, soonfollowed The otherleadingretailers inAustralia, a singlecustomerwasallowed topurchase. began torestrict how manypacksof tissue In Australia, thelargest retailer, Woolworths, pack of toiletpaper. erupted, withcustomers fighting for thelast buying toiletpaperthere aswell. Violence Macao andAustralia. People startedpanic supply from China,suchasHongKong, PER YEAR,RESPECTIVELY. WHICH HAVE CAPACITIES OF240,000TONNES PERYEARAND300,000TONNES RECOMMENCED PRODUCTIONAT THEIRTISSUEPAPER MILLSINXIAOGAN, TOP PRODUCERSAPPCHINA AND VINDA INTERNATIONAL HAVE ALSO TISSUE PAPER MILLINXIAOGAN,AMAJORTISSUEPRODUCTIONHUB. ON 14MARCH,C&SPAPER RESTARTED ITS140,000TONNE PERYEAR Tissue World Magazine |

May/June 2020 THE THIRDWEEK INAROW OFABOVE AVERAGE SALES. THREE TIMES THE NORMALLEVELINCALENDAR WEEK12(16-22MARCH), GERMANY, FOREXAMPLE,TOILET PAPER PURCHASES WEREMORETHAN DESPERATE FORTOILET PAPER. SALESOFTOILET TISSUE EXPLODED;IN WITH ONEOFTHECOUNTRY'S OLDESTBRANDSWEREHIJACKEDBYPEOPLE IN GERMANY, THREETRUCKS THAT BELONG TO AFAMOUS TISSUESUPPLIER Retailers inNorthAmericaandEurope also the panicbuyingandhoarding of tissue. As thevirusspread tootherregions, sodid because of thecoronavirus. be delayed by atleastacouple of months of theseprojects, ifnotallof them,will the homecountries. We expect thatseveral also includesleadingtechnicalexperts from in China,butthestart-up teamnormally Group. Allthesesuppliers have subsidiaries APP andacouple more for theHebeiYusen APP, andthePMPGroup atleastsixPMsfor Shanghai Taison Group, Valmet two PMsfor PMs, two for OjiNepiaandtwo for the On ourproject list,Andritzhasfour large machinery manufacturers. for projects withdeliveries by domestic equipment willlikely beharder hitthan to come again.Projects withWestern capacity, andonlyinMarch they started were practically noannouncements of new no new PMsstartedup. InFebruary, there during theChineseNew Year holidaythere new localPMstart-ups, butasisnormal, January, there were announcements about expansion projects inChina.Inearly Another issue istheinfluence of ongoing me andcertainly for manyothers aswell. period lastyear. Thiswasamajorsurpriseto (3.7%) inexports compared tothesame only aminordeclineof about5,000tonnes statistics for January-February 2020show domestic buyingandmillclosures. Butexport suffering substantiallyfrom theincreased mills, whichultimatelymobilisedalltheir This wascertainly notbadnews for tissue the shelves intheirtissue aislesstocked. tissue purchased percustomertokeep found itnecessary tolimittheamountof are now accounting for about11%of US empty of toiletpaper, onlinesellers, who to smallerstores saw theirtissue aisles everything changed. Retailers from Walmart February were moderate. ButinearlyMarch, so theeffects onthetissue business in Covid-19 pandemicstartedslightlylater, In NorthAmerica,theinfluence of the purchases picked sharplyup. and thedemandfor additionalparent roll extra shiftsfor converting were organised, Mills reported fullcapacityutilisationand third week inarow of above average sales. in calendarweek 12(16-22March), the more thanthree timesthenormallevel example, toiletpaperpurchases were of toilettissue exploded; inGermany, for people desperate for toiletpaper. Sales country's oldestbrands were hijacked by a famous tissue supplierwithoneof the In Germany, three trucksthatbelongto couple of weeks. running attheircapacitylimitsfor thepast North AmericaandEurope have been demand peak.Consumer tissue millsin reserve capacitiestorespond tothesudden prices onstore shelves aswell. the week ending7March, andrisingretail data, showed toiletpapersalesrose 60%in paper nationwide, onereport, citingNielsen that intermsof thesurge-buying of toilet American news teamreported lastweek operated at120%of capacity. OurNorth said itsmillsanddistributioncentres softened, according toalocalreport. GP at airports,hotelsandotherpublicvenues towels double, whiledemandfor products (GP) saw orders for toiletpaperand For example, inWisconsin, Georgia-Pacific for more details). March issue of theUSTissue MonthlyData converters supportthisexpectation (seethe from millsfrom New Jersey toOregon and high atanestimated98-99%.Reports that capacityutilisationinMarch wasvery working attheircapacitylimits.We expect Tissue millshave responded andare comments like "articleavailable soon." wiped out,leaving theirweb siteswith tissue sales,ledby Amazon, were rapidly MI MarketIssues 77 May/June 2020 May/June

| Tissue World Magazine World Tissue value in consumer tissue and disposable tissue value in consumer a Covid-19 hygiene in the US in case of Deep Recession. in demand is not the spike However, the key for news all good necessarily the temporary, being Aside from brands. choosing in demand sees shoppers uptake cheaper private label foremost and first cost lower bulk as stocking large as well Business Monitor and the US Tissue Monthly Business Monitor and the US Tissue Monthly RISI's EU He works out of Fastmarkets Data. and Germany, near Munich, Consulting office or at: Tel: +49.8151.29193 be reached can Email: [email protected]. will place unemployment of high rates on many household additional strain rationalising with consumers budgets, further and potentially diminishing gains and facial paper towels like categories for with toilet paper serving as a tissue, incomes. depressed of substitute in view model International’s macro Euromonitor 2% to 3% decline in an overall projects peak for pulp, especially hardwood pulp, by by pulp, hardwood especially pulp, peak for to last to the third mills that is likely tissue quarter or so. while it is very paper, recovered But for less mills have tissue that AfH likely much demand, the supply side will suffer deinking as the main high grade more will be in paper, sorted office grade, other schools and short supply as offices, close in this resource of generators of the spread to slow moves unprecedented the virus in the US and Europe. Esko Uutela, principal, tissue, is the author RISI's Outlook for World of Fastmarkets Tissue the World Tissue Business study,

WHILE THE AFH BUSINESS WILL LIKELY TURN SHARPLY DOWN AS MILLIONS DOWN SHARPLY TURN WILL LIKELY WHILE THE AFH BUSINESS CORONAVIRUS. THE SPREAD OF THE SLOW HOME TO STAY CONSEQUENCES FOR THE TISSUE INDUSTRY DIFFER BY BUSINESS SECTOR. IN SECTOR. DIFFER BY BUSINESS INDUSTRY FOR THE TISSUE CONSEQUENCES AND AFH TISSUE. FOR CONSUMER TRENDS EXPECT DISPARATE WE SUMMARY, TERM, IN THE SHORT THE CONSUMER SIDE IS BOOMING TISSUE DEMAND ON However, it is also important to consider it is also important to consider However, out and fall economic of that the extent industries and services, including tissue including tissue industries and services, and realm in both consumer/household similarly In US retail, institutional spaces. in demand a spike to other countries, facial and paper towels toilet paper, for noted in the first has been well tissue attributed 2020. While initially quarter of higher than usual to panic shopping, orders on as stay-at-home demand lingers the part of the large across in place remain boost into the overall translating country, and categories tissue to the consumer better than initially somewhat expected in 2020. growth expected As concerns over the containment of of the containment over As concerns high on the agenda remain Covid-19 across the impact is felt countries, across near previous norms. near previous a to experience is likely tissue Consumer last or at least a slow half, second slower the peak demand partly offsetting quarter, AfH business while the half, during the first the end of toward see a rebound could the year. pulp mills and material suppliers, raw For the outlook is paper companies, recovered will be a demand There different. also very The consumer tissue business will see a few will see a few business tissue The consumer then what? Will sales, but record months of be much there Could continue? the trend to three in two retailers demand from less their home keep months, or will consumers had been? than they stocks at higher levels for This is shaping up to be a banner year but most likely producers, tissue consumer decline to slowly will levels home storage

Euromonitor International’s Euromonitor industry of tissue & hygiene head Svetlana Uduslivaia Svetlana By Svetlana Uduslivaia, Euromonitor International’s head of tissue & hygiene industry head of International’s Euromonitor Uduslivaia, By Svetlana AFH SECTOR USA TISSUE ENVIRONMENT: IN COVID-19 TEMPORARY UPTAKE IN RETAIL, TROUBLES IN application, growth may be particularly application, growth masks and face high due to the demand for hospital clothing. segment is increased consumption by the by consumption is increased segment medical industry. small AfH Although this is a rather demand in the AfH tissue segment in 2020, segment tissue demand in the AfH year. of the half especially during the first the AfH The only potential bright spot for Very little travelling, vacant hotels, little travelling, Very on dining out, closed schools restrictions home instead of from and people working that will depress factors are all in offices The next few months are expected to change expected months are few The next the situation drastically. business will likely turn sharply down as turn sharply down will likely business the of spread the slow millions stay home to in March deliveries however, coronavirus; February. from based on orders continued disparate trends for consumer and AfH consumer for trends disparate side demand on the consumer Tissue tissue. term, while the AfHis booming in the short in 2019. industry differ the tissue for Consequences expect we In summary, sector. business by prices at stores jumped 8.6% in the week 8.6% in the week jumped at stores prices to in cost 18% increase an ended 8 March, with the same week compared consumers At drugstores and major retailers, a report a report major retailers, and At drugstores that toilet paper IRI highlighted from MI MarketIssues MI 8 acquisition strategies, inthewake of growth build longer-term customerretention and also viapopularsocialmediachannels,to engage withcustomers onongoing basis, it comes toinventory management and However, they are proving tobeagilewhen as impactof pandemicwanes. retain allof theirnewly acquired customers is unlikely thatthesebrands willbeableto the surge in the numberof subscribers. It see asignificantincrease indemandand brands operating onsubscriptionbasisalso visits, direct-to-consumer (DTC) tissue of stockshortages andconcerns over store Interestingly butnotsurprisingly, inview the economic fallout of theCovid-19. third andfourth quarterof theyear dueto turn tobargain shoppinginthesecond, conditions asmore consumers willlikely be compounded by macro-economic further pushof privatelabelislikely to The effect of bulkbuyingandthe margins. increases torecapture dwindlingprofit made following the2018and2019price diminish gainsbranded tissue products as discounters. Thisbuyingwilllikely packages atretailers like Costco aswell Tissue World Magazine |

May/June 2020 impact of Covid-19 willbefelt themost However, itisimportanttonotethatthe innovation tosecure future demand. long-term strategies andopenuproom for beyond thepandemictimescanhelpinform Understanding disruptionsthatcanlastwell can re-shape long-termtissue demand. should consider how thisparticular trend long-term implicationsof Covid-19, we the first quarter of 2020.As we consider demand andsalesinthesecond halfof the bidetspace saw adramatic spike in indicate thatcompanies operating in demand for bidetsintheUS.Latestnews years we have beenwatchingtherising bathroom routines, inthepastcouple of With respect toconsumer tissue and routines. changing thewaythey handletheirdaily industries across products andservices are seeing furthershiftsinhow consumer and altogether. TheCovid-19 response is approach theirbathroom routines toilet paperistheshiftinhow consumers longer-term disruptiontodemandin Brand dynamicaside, potentiallycausing first quarter of 2020. in salesandbrand awareness duringthe demand for tissue products. been closed,too, thusdiminishingfurther 80% of foodservice outletsintheUShave By theendof thefirst quarter of 2020, over customers. demand for products distributedtoAfH and business activitiesisleadingtoreduced settings. Thedisruptiontotravel, tourism, and perhapslongest intheinstitutional recovery in2021. both volume andvaluefollowed by slow spectrum withhighsingledigitsdeclinein end theyear ontheoppositesideof the in uppersingledigits,AfH tissue willlikely annual performance of theUSretail tissue released inlateApril)place theoverall preliminary projections for 2020(tobe While Euromonitor International’snew incomes. unemployment anddepressed disposable take time, especiallyinview of high and tourismaswell asfoodservice will consumption. Normalisationof travel of AfH consumption moved toat-home in thefirst quarter of 2020 over 40% as well asothermarkets, indicatedthat In fact, manyindustrysuppliers intheUS, to normalise. is affected unfavourably andwilltake time policies thedemandfor AfH tissue products to foodservice operations, and stay-at-home With fewer travellers andhotelstays,pause MI MarketIssues 99 May/June 2020 May/June

| truck stop all demanded better hygiene truck stop all demanded facilities? and buttons after touching public handrails to the people head What if more destination after arriving at a washroom or drink on the go? food or consuming how truly change, If hand washing habits dry our hands? will we What if people started washing their handsWhat if people started

Tissue World Magazine World Tissue storing paper towels and taking care of wet of care and taking storing paper towels electric hand be fair, To waste. paper towel hand dryers Several improved. have dryers air that can with high-velocity emerged have dry hands in about 10 seconds. successfully the first for useful are air dryers Finally, using electricity suggest These dryers time. paper towel reduces because it is a benefit and But why is this a benefit consumption. coal plant producing The who is benefiting? the electricity? with hygiene and hand washing at the Now understand we our daily lives, forefront cross- for conditions create air dryers the purpose of and defeat contamination sponsored below, graphic The hand washing. the Papernet, illustrates and Sofidel by using hand dryers concerns contamination • • • tissue for alternatives common The two hands to drying one’s when it comes products (typically used at home) cloth towels are found commonly air dryer and the dreaded Most people start these in public restrooms. while and walk out up, units, give air dryer wiping their hands on their pants. So why install and building managers do proprietors It comes them? if no one likes these dryers can avoid utilisation. They to space down What if this pandemic results in a sea- What if this pandemic results and in handwashing compliance change frequency? hotels, and restaurants, of What if patrons and water destroy the virus with no need for the virus with no need for and water destroy Hand sanitiser has additives. anti-microbial complete answer a but isn’t some efficacy soiled material or killing other to removing the gastrointestinal like germs resistant and towel So those in the tissue norovirus. to ask themselves: industry have • • There are many reasons why people don’t many reasons are There most difficult clean their hands. It’s probably washing is in a medical setting (where after each patient interaction) required is the work where processing than in food hand washing can Frequent continuous. irritate skin and cause topical infections. clean and not always are Public restrooms without as possible as fast out some try to get what know don’t stopping at the sink. We will be like, world in the post-pandemic life some changes to expect but it’s reasonable that will be and behaviours to our routines that soap aware very now are permanent. We with this simple recommendation – not with this simple recommendation hands, and those who washes their everyone time to do so the prescribed take do rarely the American A 2003 study by properly. of 83% found Microbiology Society for washed their hands after using the women men did the but only 74% of restroom, same. unique to the US as aAnd this isn’t service in highway British study conducted sensors using electronic station restrooms, that 65% of found compliance to measure men washed their hands. and 35% of women

Bruce Janda Bruce Fisher International Senior consultant, hand towel demand. There are two problems problems two are demand. There hand towel market need. If people followed professional professional need. If people followed market the 1 from in Figure guidelines (as shown and Prevention) Disease Control for Centers in paper be a significant increase would there focused on the commercial or the AfH market market or the AfH on the commercial focused that hand washing and long understood have is an underserved drying with a paper towel concern. However, none of these events these events none of However, concern. had enough global impact and personal Individuals’disruption to significantly change makers Tissue handwashing behaviour. in the past, but SARS, MERS, and ZIKA but only had a global recognition receive regional impact. Ebola caused worldwide new focus on cleanliness and preventing and preventing on cleanliness focus new personal disease through of the spread We surfaces. and contaminated contact this epidemics like experienced have How Clean Are We, Really? We, Clean Are How a pandemic has brought The Covid-19 This article will explore how that might drive how This article will explore production in paper hand towel changes global out of come and distribution as we back to business. and get lockdown in tissue production and distribution, the production in tissue public handwashing support in demand for significantly. increase normal could this new if it involves wrong assumptions, provides provides assumptions, wrong if it involves to and ability to react the best understanding to navigate continue As we that unfold. events habits and disruptionstoilet paper-hoarding long before this Covid-19 pandemic, but he this Covid-19 long before of planning with the difficulty understood even a plan, Having information. incomplete As Dwight Eisenhower famously remarked: remarked: famously As Dwight Eisenhower found always I have battle, for “In preparing but planning is useless, that plans are came Eisenhower indispensable.”General Please wash your hands and dry them with a paper towel! By Bruce Janda, senior consultant, Fisher International senior consultant, Fisher hands and dry By Bruce Janda, your Please wash towel! them with a paper POTENTIAL HAND COMMERCIAL ON IMPACT TOWEL DEMAND MI MarketIssues MI Figure 1:Commercial handtowelproduction bycountry 10 promote theproducts. should beproud of therole they playinpublichealth andwillingto European producers. Maybethistimeisdifferent. Tissue makers tissue producers have beenquietonthe issue inthepast,unlike The impactonthetissue business would belarge, butAmerican (requiring nearlysixnew tissue machines)isrealistic. utilisation of facilities andtowelling, a30%increase indemand tissue machines.Ifpeoplewere tomake significant changes in could beastepchange indemandof 10%,requiring two new large A smallconsumer behaviour change inresponse tothepandemic grade changes, rebuilds, andnew machinesover thatperiod. from 2007-2019.Thecapacityadditionsshown inFigure 5include capacity grew ataCAGR (compound annualgrowth rate) of 6.5% across theUS Interstate Highway System.Americanhandtowel service for importantclients.Thisincludedmosttruckstopchains trend thatgrown asbuildingowners/managers trytooffer upgraded technology tocreate improved softness andabsorbency. Thisisa States are produced withTAD orsomeotherform of advanced tissue Figure 4shows almost25%of handtowels usedintheUnited is madefrom recovered paper. breakdown, andFigure 3shows thatabout85%of thetotalvolume price product. Figure 2shows thebleachedandunbleachedfibre unbleached, brown, wet-creped sheetsthathave longbeenthelow- Slightly less thanaquarterof alltowels are stilltheplain The Americanhandtowel market covers awiderange of quality. modelling potentialdemandchanges afterthepandemicpasses. towels. Thisprovides theopportunitytouseUSasatestcasefor 2020, we seetheUnitedStatesproduces 57%of allcommercial hand for thetopfour producing countries. Goingintothefirst quarter of Figure 1shows theglobalcommercial handtowel production capacity How willpost-pandemic towel production respond? many bacteriaweretransferred fromthehandstopapertowels.” microbiological testingofthepapertowelsafteruseindicated that by themechanical abrasive actionofdryingwithpapertowels.And removing contamination. Bacteriawereremoved fromwashed hands componentinhanddryingfor have foundfrictiontobeakey hygiene isparamount, suchashospitals andclinics.Manystudies dryers. Paper towelsshouldberecommendedinlocations where “From ahygiene viewpoint,papertowelsaresuperior toelectricair state that: Mayo ClinicProceedings (2012Aug;87(8):791–798.),theauthors instead of papertowels. Inareport publishedintherespected Tissue World Magazine |

May/June 2020 Figure 2:Bleach vsUnbleached Fibre Figure 5:American Commercial TowelCapacity Growth Figure 4:Advanced TechnologyApplication toHandTowels Figure 3:Commercial HandTowelFibreType

World News WN 12 Start-up cheers: will sustainourfuture growth by delivering advanced technology. Toscotec’s machinery to continue onthistrend by investing in the regional market, andare determined brand, we are expanding ourpresence in company. marks akey expansion phasefor our of PicknikMarketing Pty, project said:“This assistance andtraining. supervision, commissioning, start-up and anoff-line shaftpuller. preparation and approach flow equipment gas-fired TTHood. Steel Yankee Dryer andenergy-efficient, production capacityof 75tpd. an operating speedof 1,500m/min, anda from dayone. Ithasasheetwidthof 2.7m, machine atitsJohannesburg mill. Toscotec-supplied MODULO-PLUS tissue tissue capacitywithstart-up Picknik Marketing Ptyboostshigh-quality SOUTH AFRICA we needtosucceed inSouthAfrica.” the tissue qualityandproduction efficiency WN “Due tothesuccess of ourSnowSoft Itzik Nikfard andRafiNikfard, directors The service package includeserection The supplyalsoincludesthestock It features asecond-generation TTSYD The new lineproduced highqualitytissue Picknik Marketing Ptyhasstartedupa World News Tissue World Magazine The team atthePicknikMarketingPtylaunchofToscotec-supplied MODULO-PLUS tissuemachineatits Johannesburgmill |

May/June 2020 LINDA K.MASSMAN, WHOHASRETIREDFROM CLEARWATER PAPER. PRODUCTS DIVISION -ASCHIEFEXECUTIVE ASOF1APRIL.HESUCCEEDS SENIOR VICEPRESIDENTAND GENERALMANAGEROFITSCONSUMER CLEARWATER PAPER HASAPPOINTEDARSENS.KITCH-THECOMPANY’S company in2013. planning andanalysissince joiningthe of finance andvice president of financial business since 2018. Clearwater Paper’s consumer products vice president andgeneral manager of 1 March. Kitchhasserved assenior executive chairof theboard, effective transitioned from chairtoindependent announced that Alexander Toeldte has since January2013.Thecompany hasalso after servinginthechief executive position who hasretired from ClearwaterPaper of 1April.Hesucceeds Linda K.Massman, products division-aschief executive as and general manager of itsconsumer Kitch -thecompany’s seniorvice president as CEO Clearwater Paper appointsArsenS.Kitch GLOBAL Prior tothat,heserved asvice president Clearwater Paper hasappointedArsen S. president andgeneral manager Arsen S.Kitch: results.” our recent momentumof solidoperational focused ondrivingresults andbuildingon a healthybusiness andastrong team He said:“Today, ClearwaterPaper has Clearwater Paper’s newseniorvice WN World News 13 May/June 2020 May/June

| For the company’s consumer products products consumer the company’s For was due to higher retail This increase net selling prices tissue Average Net sales in the pulp and paperboard capabilities to ensure we are well- are we capabilities to ensure de-lever to flow cash generate to positioned sheet.” our balance quarter were the fourth net sales for sector, quarter to fourth $231m, up 8% compared $213m. 2018 net sales of by slightly lower sold offset volumes tissue sold volumes tissue due to mix. Total prices quarter 88,141 tonnes in the fourth were 7,161 tonnes or 9% of 2019, an increase of to 80,980 tonnes in the fourth compared 2018. quarter of 1.3% to $2,593 per tonne in the decreased to $2,627 2019, compared quarter of fourth 2018. quarter of per tonne in the fourth quarter the fourth $205m for were segment to fourth 5% compared 2019, down of $216m. quarter 2018 net sales of Tissue World Magazine World Tissue “In addition, our new Shelby, North Shelby, “In addition, our new intend to focus we year, the “Throughout The company said it had “a strong finish said it had “a strong The company for sales quarter also had a strong “We Net income for the fourth quarter was quarter was the fourth for Net income Carolina facility is producing to quality is producing facility Carolina and premium for both ultra specifications tissue. our operational to improve on continuing $2m compared to a net loss a year earlier earlier a year to a net loss $2m compared ended 2019, the year $188m. For of $1.7bn $1.8bn, up from net sales were ended 2018. A net the year for reported to a net $6m compared of year the for loss $144m in 2018. of loss pulp and fibre input to 2019 due to lower and lower quarter, in the fourth costs timing. and expense costs maintenance the fifth sequentially for which grew tissue, quarter. consecutive quarter of 2019, up from $429m reported at reported $429m from up 2019, of quarter the same period in 2018. COMPARED TO A NET LOSS A YEAR EARLIER OF $188M. FOR THE YEAR ENDED A NET LOSS A YEAR TO COMPARED 2019, NET SALES WERE $1.8BN, UP FROM $1.7BN. CLEARWATER PAPER CORPORATION HAS REPORTED NET SALES OF $436M HAS REPORTED CORPORATION PAPER CLEARWATER THE AT OF 2019, UP FROM $429M REPORTED QUARTER FOR THE FOURTH $2M WAS QUARTER SAME PERIOD IN 2018. NET INCOME FOR THE FOURTH Andritz’s new tissue machines PrimeLineVRT with its Vertical Crescent Former enhancing dewatering of the fibre web Crescent Former enhancing dewatering with its Vertical Andritz’s new tissue machines PrimeLineVRT Clearwater Paper Corporation has Corporation Clearwater Paper “This results in lower building costs as building costs in lower “This results Stefano Marenco, director of of director Marenco, Stefano Depending on the grade and basis Depending on the grade Andritz has officially launched its latest launched Andritz has officially reported net sales of $436m for the fourth the fourth $436m for net sales of reported Clearwater Paper reports “strong sales reports “strong Paper Clearwater quarter for tissue” in results well as easier operation and maintenance and maintenance as easier operation well on the to similar technologies compared market.” and fabric loops or any extra space in the space loops or any extra and fabric the equipment. installation of basement for PrimeLineTIAC and R&D Tissue at Andritz, at Andritz, and R&D Tissue PrimeLineTIAC technology this new of said: “The advantage additional fabrics do not need is that we percentage points of dryness can be dryness points of percentage section compared after the press achieved configurations. CrescentFormer to standard weight of the paper produced, Andritz the paper produced, of weight additional and four two said that between dewatering of the fibre web. This enables web. the fibre of dewatering section right after the press higher dryness in paper caliper. and an increase dry crepe tissue. It features a vertical a vertical It features tissue. dry crepe section in the forming Former Crescent that the machinery supplier said enhances CrescentFormer – Vertical the PrimeLineVRT machine, tissue of the production – for Former Crescent Advance in dry crepe tissue: Advance – Vertical PrimeLineVRT Andritz launches World News WN Cascades’ presidentandchiefexecutive MarioPlourde Second consecutive year ofrecordperformance: 14 executive, isthe second said:“This of two US-basedtissue converting facilities. announced theplannedMarch 2020closure acquisition of Orchids Paper Products and by 7%compared toC$4,649m in2018. Orchids Paper assets. favourable salesmix,andtheadditionof volumes, higheraverage sellingprice, more company saidwasareflection of increased sales increased by $57m,or17%,whichthe reported inQ42018.Specifically, tissue C$1,227m, up3%compared toC$1,196m the fourth quarterandfullyear 2019. Cascades reports“historicresults”which affirmsolidgrowth progress Sales for thefourth quarterwere Cascades hasreported solidresults for Mario Plourde, president and chief The company alsocompleted the For theyear, salesof C$4,996mincreased Tissue World Magazine |

May/June 2020 Cascades. consecutive year of record performance for was similarlyaided by lower raw material boxboard. production costs intissue andEuropean throughout theyear, andsequentiallylower our segments, acquisitions completed by lower raw materialprices for allof sales mixinallbusiness segments. the year, andless favourable pricingand seasonal demand”common totheendof fourth quarterresults “reflect thesofter optimisation andstrategic initiatives.” progress we are making withourgrowth, “These historicresults“These affirmthesolid “Year-over-year quarterlyperformance effects“These were partiallymitigated On asequentialbasis,headdedthatthe he said. year improvement inthetissue segment,” January 2020.” from QRT toconventional paperinmid- conversion of theBarnwell papermachine quarter, andsubsequentlycompleted the to integrate Orchids’ activitiesduringthe converting activities.” higher proportion of salescoming from American operations inpartduetothe and higherproduction costs inourNorth all segments withtheexception of tissue, less favourable salespricingandmixin addition tolower energy costs. pricing andrecent business acquisitions, in “We are forecasting strong year-over- He addedthatthecompany continues resulting“The benefits outweighed

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Maximyze tissue_Tisssue World.indd 1 4/8/20 3:46 PM World News WN 16 Futura’s technicalpartnership withPlusline, up isdueattheendof 2020. and packaging lines. for itsnewly launched Together converting Futura confirmsfirst Togetherorders Professional business.” bottom-line growth for ourKimberly-Clark great passion towin,willdrive top-and his extensive experience, coupled withhis a proven track record. Iamconfident that 40 countries. brands andnearly$6bninrevenue inover Newell Brands, leadingfive divisions,11 International/Kraft Foods. roles atBain&Company, Mondelez spanning anumberof key seniorleadership consumer products goods industry, than 20years of experience withinthe chief executive of Kimberly-Clark. globally. company’s business-to-business operations division. Russ Torres aspresident of itsProfessional Professional Russ Torres appointedaspresidentofK-C industry. solutions for theglobalpulp andpaper of integrated, highlyspecialisedprocess edge hardware. infrastructure through speciallydeveloped process instrumentationintoacloud platform, bCONNECTTM connects BTG the benefits of industry4.0. bCONNECTTM, thecompany’s gateway to savings.” are experienced withsignificant yearly barriers toberemoved. allow for traditional timeanddistance productivity asthebetterdatainsights paper mill. information onallBTG assets inapulpand company saidallows real-time performance its first Industry4.0solutionwhichthe 4.0solution BTG launches itsfirstIndustry Hsu said:“Russ isarespected leaderwith Most recently hewasgroup president of Torres joinsKimberly-Clarkwithmore He willreport toMike Hsu,chairmanand Effective 9March, Torres willleadthe Kimberly-Clark (K-C)hasappointed BTG Group isamultinational provider Built around theMicrosoft Azure SMART Monitoringisbasedin BTG said:“Eventually, tangiblebenefits The company saiditincreases BTG haslaunchedSMART Monitoring, The Together technology isbornoutof The clientsremain confidential andstart- Futura hasreceived thefirst two orders Tissue World Magazine |

May/June 2020 SENIOR LEADERSHIPROLES. THE CONSUMERPRODUCTSGOODSINDUSTRY, SPANNING ANUMBEROFKEY JOINS KIMBERLY-CLARK WITHMORETHAN20YEARSOFEXPERIENCEWITHIN TO MIKEHSU,CHAIRMANANDCHIEF EXECUTIVEOFKIMBERLY-CLARK. TORRES COMPANY’S BUSINESS-TO-BUSINESS OPERATIONS GLOBALLY. HEWILLREPORT ITS PROFESSIONALDIVISION.EFFECTIVE9MARCH,TORRES WILLLEADTHE KIMBERLY-CLARK (K-C)HASAPPOINTEDRUSSTORRES ASPRESIDENTOF standard solutions. which represent amajordeparture from naturally alsocautiousaboutinnovations marketsaid: “The isalways curiousbut into shelf-ready packs. game-changing solution” toconvert logs converting machinerysuppliersaidis“a - thefirst of whichis Together -whichthe announced inOctober2019. “A game-changingsolution”: Piero Ceccon, chief executive of Futura, It aimedtointroduce radical innovations Futura chiefexecutive PieroCeccon more efficient. new plantsandfor makingexisting lines said opensupopportunitiesfor settingup converting rewinder line, whichthesupplier downstream of anyexisting ornew technology.” a welcome affirmation ofthiscutting-edge been confirmed sosoonafteritslaunchis The integrated systemcanbeinstalled fact“The thatthevalidityof Together has WN World News 17 May/June 2020 May/June

| FHH chief executive James MichaelFHH chief executive Tissue World Magazine World Tissue On 1 February 2020, Resolute announced it had completed the it had completed announced 2020, Resolute On 1 February fourth “Our said: executive, and chief president Laflamme, Yves in the US South is an important sawmills three of “The acquisition Resolute Forest Products has said its financial position “will Products Forest Resolute the quarter ended $71m for of a net loss recorded The company the $264m from of $668m, a decrease the quarter were Sales for the Catawba 2018 included sales from quarter of The fourth $47m, of a GAAP net loss reported the company the year, For previously disclosed acquisition of three sawmills in the United sawmills three of disclosed acquisition previously $176m. States for conditions in market bottom-of-the-cycle reflect quarter results and the slow in paper grades pricing pressures ongoing pulp, in lumber. pricing recovery us immediate scale it will give strategy; step in our transformation basket, in a rich fibre with quality assets region, in an attractive “We must keep an eye towards the future”: the future”: “We must keep an eye towards Lafferty conditions” in Resolute: 4Q results reflect “bottom-of-the-cycle pulp market as it sawmills, three of the acquisition following strong” remain ongoing hit by quarter and 2019 results fourth preliminary reports pricing pressures. $36m in the same of to a net income 2019, compared 31 December period in 2018. period. year-ago facilities. Virginia) (West and Fairmont (South Carolina) $2.9bn, $235m in 2018. Sales were of to net income compared year. the previous 22% from down Resolute president and chief executive Yves Laflamme Yves Resolute president and chief executive Fine Hygienic Holding provides high-quality hygienic paper high-quality Fine Hygienic Holding provides Fine currently has five paper mills located throughout the MENA the MENA paper mills located throughout has five Fine currently main production at four evaluations is undertaking site The group from to seek proposals company is preparing added the Lafferty The group said the move is a result of its continuing rapid rapid continuing its of a result is move said the The group completely are said: “We James Michael Lafferty executive Chief lead-times and given the future, towards an eye keep must “We Fine Hygienic Holding (FHH) has begun evaluating locations for for locations evaluating begun Holding (FHH) has Fine Hygienic Position remains strong: Position PRUDENT WE MUST BEGIN NOW.” TOWARDS THE FUTURE, AND GIVEN LEAD-TIMES FOR THE FUTURE, AND GIVEN LEAD-TIMES TOWARDS BE COMMISSIONED, TO BE FULLY MILLS TO PAPER “WE ARE COMPLETELY SOLD OUT OF PAPERMAKING SOLD OUT OF PAPERMAKING “WE ARE COMPLETELY AND OUR BRANDED BUSINESS IS GROWING CAPACITY KEEP AN EYEIN STRONG DOUBLE-DIGITS. “WE MUST estimates. the world. around in 75 countries to its customers products sites in Jordan, Egypt, KSA and the UAE. Egypt, KSA sites in Jordan, study and cost the feasibility to begin suppliers proven several region, operating at full capacity with a total capacity of 170,000tpy. a total capacity of at full capacity with operating region, for paper mills to be fully commissioned, to be prudent we must to be prudent we paper mills to be fully commissioned, for now.” begin sold out of papermaking capacity and our branded business is is business papermaking capacity and our branded sold out of double-digits. in strong growing the establishment of a sixth paper mill. of the establishment growth. business FHH plans sixth tissue mill site following double-digits growth double-digits sixth tissue mill site following FHH plans nature is a perfect technology our technology is perfect for nature

Our commitment is to provide innovative technological solutions to produce sustainable tissue products.

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P_ADV_FP_ECO_A4.indd 1 26/06/19 10:24 WN World News 19 May/June 2020 May/June

| Since the international situation on Since Founded by the Pasquini family in 1953, family the Pasquini by Founded – business units business It has three that has announced Markets Informa postpone Tissue World Miami was due to World postpone Tissue our tradeshow of the health and wellbeing and attendees, which must be our delegates highest priority. Informa started in late January, Covid-19 a number has had to reschedule Markets The our wider group. across our events of team is dedicated to serving World Tissue community and supporting the tissue to monitor all health and will continue our industry. for considerations schedule and project management of these these of management project schedule and rebuilds.” tissue, toilet of producer Lucart is a leading tablecloths and napkins, kitchen towel, as airlaid products as well handkerchiefs, and MG paper. producing and consumer, AfH to business, machines. paper on 12 of 395,000tpy AMERICA for reschedules Miami World Tissue 2020 November be held at the Miami will now World Tissue on 11–13 Center Miami Beach Convention to thank like would 2020. We November and partners visitors our exhibitors, all of and resilience patience, their continued for Covid-19 of The outbreak understanding. being the world across has led to business by prioritised health affected progressively the decision to and restrictions: concerns Tissue World Magazine World Tissue Work on replacing existing Yankees with Toscotec’s second-generation Steel Yankee Dryers at Yankee Steel with Toscotec’s second-generation Work on replacing existing Yankees Franco Pasquini, Lucart’s chief technology technology Lucart’s chief Pasquini, Franco Over the last ten years, Toscotec has Toscotec the last ten years, Over energy said: “The extraordinary Toscotec “This operation is part of our M&A our M&A is part of “This operation dry section two Lucart has completed took the project Toscotec, Supplied by solutions included rebuilding The two “The integration of these players in the these players of “The integration position on our existing further enhance on a potentially infinite number of cycles of cycles on a potentially infinite number a significant save its life, of the course over costs.” and operating energy amount of very satisfied with the are “We said: officer, as the time as well performances, achieved the replacement of PM5 and PM6’s existing PM5 and PM6’s existing of the replacement second-generation with Toscotec’s Yankees steam complete Dryers, Steel Yankee as the systems, as well and condensate a TT SuctionPressRoll. installation of with one complete supplied Lucart Group TT slitter rewinders two line, tissue and various tailor-made rebuilding WIND, machines in tissue solutions on six different Italy and France. that TT SYD delivers, advantages saving strategy, focusing on outstanding focusing strategy, that can be easily companies manufacturing marketing and in our production integrated to profile and giving a higher structure quality and sustainability.” with rebuilds Lucart increases capacity mill. at its Lucart Diecimo tissue rebuilds 2020. July 2019 to February between place finalised the acquisition of Carind and CRC. of acquisition finalised the us to is allowing Carrara Cartiere Group new a long- which is critical for market the AfH plan. term growth Capacity boost: boost: Capacity Diecimo tissue mill Lucart’s Carind and CRC own-brands include own-brands and CRC Carind chief Carrara Cartiere Mario Carrara, Cartiere Carrara has completed the has completed Carrara Cartiere M&A- with the company’s Consistent Laflamme added: “With our existing Laflamme added: “With our For the year, the tissue segment incurred incurred segment the tissue the year, For The company said the change reflects reflects said the change The company an incurred the segment In tissue, The company’s market pulp segment pulp segment market The company’s pulp segment In 2019, the market “We’re pleased with the quarterly pleased “We’re “Our financial position will remain strong strong remain position will financial “Our growth officer, said: “We are pleased to have have to are pleased “We said: officer, growth Carind Tissue, Dayly, Value, Selly, Voilet, Voilet, Selly, Value, Dayly, Tissue, Carind BLISS. X-Elegance, MAXI, CAROUSEL, significantly strengthen its premium tissue tissue its premium significantly strengthen and the At- the AfH for range products in Italy. segments Home/consumer and CRC from the Caldaroni Group. the Caldaroni from and CRC will the move strategy, based growth Cartiere Carrara boosts premium tissue Cartiere Carrara offering with M&A Carind companies converting of acquisition ITALY three US sawmills, as our timing allowed us as our timing allowed US sawmills, three price.” an attractive to achieve improvements around sales growth and sales growth around improvements with the excited gains. We’re productivity of the pending acquisition around prospects tissue footprint, we expect progressive progressive expect we footprint, tissue in the business 2020 for earnings growth to build on recent continue as we price increased by $160 per short tonne as by increased price and customer better products of a result increases. mix, and price an operating loss of $16m, compared to $16m, compared of loss an operating transaction $30m in 2018. The average quarter. Most of the improvement that led the improvement Most of quarter. largely $4m in the segment of to EBITDA costs. internal pulp lower reflects operating loss of $1m in the quarter, an $1m in the quarter, of loss operating third to the $2m compared of improvement “mostly the significant drop in pricing “mostly the significant drop $72 per by on average during 2019”, down metric tonne to $690. reported operating income of $39m of income operating reported to $172m in 2018. compared fourth quarter, compared to $12m in the to $12m in compared quarter, fourth a 4% reflects loss The wider quarter. third price. transaction in average reduction productivity gains” productivity $18m in the of loss an operating recorded improvement in tissue EBITDA and EBITDA in tissue improvement and growth sales around the progress after this acquisition, and will support and will support after this acquisition, with our to progress continue us as we strategy. transformation close to growing end-markets. close to growing World News WN 20 Rebuild plans: training. Theestimatedoverall shutdown commissioning, start-up supervision,and installation of new components, dismantling of theexisting components, end support,includingdetailedengineering, configuration inthefuture. being upgraded intoCrescent Former Former configuration. Itiscapable of TT Headbox designedtooperate inTisco with anew fan pumpandafullyhydraulic of theexisting Approach Flow System rebuild scope includesthemodification start-up isscheduledfor mid-2020.The Brière tissue mill.Suppliedby Toscotec, plans torebuild PM4atitsSaint-Mars-la- rebuild Papeterie LeBourray announcesPM4 FRANCE Kleenex, Kotex, Cottonelle andHuggies. Clark makes tissue products including through thistransition.” on ouremployees andsupportingthem lightly, andourprioritycontinues tobe global restructuring programme. facility inJanuaryof 2018,aspartof our announced theclosure of theFullerton spokesperson Terry Ballucksaid:“We and employed 330people. Company global workforce inabidtoimprove costs. around 10sitesandcutting12-13%of its plans thatwillseethecompany closing part of previously announced restructuring plant inthefirst half of 2020.Themove is permanently closeitsFullerton,CA,tissue Fullerton plant Kimberly-Clark topermanentlyclose Toscotec willprovide fullbeginning to Papeterie LeBourray hasannounced Headquartered inIrving, Texas, Kimberly- business“These decisionsare not taken The Fullertonplantwasopenedin1956 Kimberly-Clark (K-C)hasconfirmed itwill Papeterie LeBourray’s Saint-Mars-la- Brièretissuemill Tissue World Magazine |

May/June 2020 using chemicalpulpandwastepaper. increasing themachinespeed. quality andCDbasisweight profile as well as the rebuild istoimprove sheetformation time willbeless thanaweek. Thetarget of its self-developed A-Recovery+ concept world’s first biomethanolplantusing biomethanol plant”atSödra Andritz starts-up“world’s firstfossil-free SWEDEN located 60kmsfrom Tunis city. 60 of anoverall 290staff. The company is The numberof new jobsexpected willbe the first machinewhichstartedupin2013. system for recovered pulp, which is fitted on of 2.75m.ItcanusetheKadantdeinking working speedof 1.8m,withasheetwidth to thecompany’s existing 21,000tpy -anda capacity of around 33,000tonnes–adding as ancillaryequipment.Ithasanannual a feeding unitandtwo rewinders aswell two virgin fibre stockpreparation lines, of 2020.Thescope of supplycomprises officially startedupinthe first quarter Trabelsi confirmed toTWMthattheline manufacturer’s general manager Lotfi second Recard-supplied tissue line. production capacityafterstartingupits Azur Papier boostscapacitywithsecondTM TUNISIA improve ourqualityandseeknew markets.” the millinApril2019,anditwillallow usto is ourfirst majorproject since we restarted Papeterie LeBourray, headbox said:“This The tissue lineproduces towel tissue Andritz hasrecently startedupthe In aDT90m project, thetissue Azur Papier hasincreased itstissue Francois Bourdin, chief executive of its operations entirely fossil-free andbe project supportsSödra’s ambitionstomake to beusedinadvanced bioproducts. The for theproduction of high-qualitylignin from odorous gasesandrecovers lignin A-Recovery+ alsoproduces sulfuricacid streams tothemaximumextent possible. with thetarget of utilisingthepulpmillside the chemicalrecovery cycle of pulpmills, using apatentedextraction process. delivers commercial grade biomethanolby works. AndritzsaidtheA-Recovery+ concept instrumentation, electrificationandcivil full EPCdelivery, excluding automation, included proprietary process designand chemical basesubstance. Scope of supply in thetransport sector(biodiesel)andasa as asubstitutefor fossil-based methanol for applicationsinthepulpmillitself, or biomethanol from forest biomass. annual production capacityof 6.3mlitres of southeastern Sweden. Theplanthasan at theSödra Cell Mönsterås pulpmillin maximum operating speedof 1,100mpm. varying from 10.5to45gsm,andwitha width of 5,630mm,having basisweights rolls withdiameterof 3,000mmandpaper third hasthree; they willallhandlemother are equippedwithfour unwinders, whilethe province, China.Two of thethree rewinders Gold Hongye Paper factory inXiaogan, Hubei The new linesare plannedfor thecompany’s the purchase order attheendof December. A.Celli, APPGroup management signedfor E-WIND T-200Srewinders. Suppliedby APP Group boostscapacity CHINA climate-positive by theendof thisdecade. In additiontobiomethanolproduction, It offers next-generation solutions for The fossil-free biomethanolcanbeused APP Group haspurchased three new tissue WN World News 21 May/June 2020 May/June

| Compared to the conventional press press to the conventional Compared strong show sleeves press Conventional open area CrownT, QualiFlex With Voith’s material The special heat-resistant the extend sleeves press QualiFlex Voith May his memory be for a blessing. May his memory be for In 2001, Charley retired from Erving Paper Erving Paper from retired In 2001, Charley stable machine operating conditions and conditions operating stable machine polyurethane Selected optimum efficiency. highest possible the for materials aim under challenging high resistance abrasion conditions. temperature especially is CrownT QualiFlex sleeves, applications. tissue designed for and often conditions, to harsh reactions wear and higher hydrolysis, from suffer volume. void reduced to can be designed exactly volume and void the customer’s needs. sleeve this press makes formulation demanding applications very designed for applications shoe press leading position for sector. in the tissue wonderful friends, played poker, ate oysters ate oysters poker, friends, played wonderful He often in the warm climate. and thrived Florida sport new claimed that his favourite disposition, caring was eating out. His great smile impacted so many attitude and ready all who by He will be remembered lives. him. and loved knew the Executives in Residence Programme at Programme in Residence the Executives International Business University’s Brandeis he was active School. As a philanthropist, the Boston Jewish University, with Brandeis Hospital in Jerusalem Hadassah Federation, the Technion, of and American Friends to each of wisdom and work bringing wealth, these organisations. he played to Florida, where Mills and moved and made many new eight days a week, golf Tissue World Magazine World Tissue

Hayat Kimya Alabuga’s site Kimya Hayat At Erving, Charley served as Chief served Charley At Erving, As a business leader who took over from from leader who took over As a business With QualiFlex CrownT, Voith offers offers Voith CrownT, With QualiFlex According to the company, Voith’s Voith’s to the company, According many local, national and international and chairman of He was founder events. West with Erving’s paper products. He was with Erving’s paper products. West the Wendy’s creating for responsible even ubiquitous printed yellow chain’s restaurant culture business family napkin. The strong at the paper mill continues that he created to this day. the Board. and then Chairman of Executive the Associated as chairman of He also served and was Massachusetts Industries of President’s in YPO (Young active extremely an international business Organisation), which he championed for organisation such fun living it, and he passed this passion this passion such fun living it, and he passed He was and grandchildren. on to his children the of curious about all things and was proud and his children individual paths that each of followed. grandchildren Mills, at Erving Paper in 1970 his father to employ business the family grew Charley almost every He knew 1,300 people. over as the names of name as well employee’s The their spouses and children. many of in the blanketing resulted growth company the Mid- and some of East Coast the entire of weekend and vacation, and spent summers and vacation, and spent summers weekend in Lake house on Laurel lake at a beloved so much and had life He loved Mass. Western on such an application was set in China, 585 days. achieving tissue for sleeve a high-quality press applications which targets shoe press maintaining stable machine production production maintaining stable machine lifetime. sleeve during the entire a world reached sleeve CrownT QualiFlex and 473,810,000 661 days of life record sleeve record world The former nip cycles. As a father, he enjoyed the pleasures the pleasures enjoyed he As a father, He graduated from the Loomis school in from He graduated Charley led a wonderful and dynamic led a wonderful Charley Charles B. Housen, born in Holyoke, Charles B. Housen, born in Holyoke, In December 2017, a QualiFlex CrownT CrownT 2017, a QualiFlex In December Hayat Kimya Alabuga has said its TM4 set fibre- virgin The paper mill produces a family that skied together every winter every that skied together a family was a member of the AEPi fraternity. was a member of family, and loving a wonderful raising of know him too.” know he where University, and Tufts CT. Windsor, anyone you’d ever meet, and people would meet, and people would ever you’d anyone upon hearing him mentioned by exclaim Erving!!! I Housen from “Not Charley others, storytelling and wisdom-sharing were world world storytelling and wisdom-sharing were friends and of and his network renowned, He always was extraordinary. acquaintances from or fewer seemed to be six degrees life. It was filled with joy and love for his and love It was filled with joy life. and his business for and passion joy family, His his philanthropy. for and satisfaction joy and Ethan Housen of Boston; as well as his well Boston; as and Ethan Housen of York. New of sister Joanne Housen Rose and Morris Housen, and his partner Melissa and Morris Housen, and his partner Melissa Romy, Boston and six grandchildren, Ellis of and Molly Israel of and Ely Couriel Noam, Yair of 63 years, children, Deborah Housen- Deborah children, 63 years, of Israel, of and her husband, Lior Couriel and Los Angeles York New Phyllis Housen of Massachusetts on April 21st, 1932, died Massachusetts Beach in his home in Palm peacefully April 4th, Florida, on Saturday, Gardens, Marjorie (Grodner) his wife, 2020. He leaves By Morris Housen, chief executive and president of Erving executive Industries By Morris Housen, chief Obituary: Charles B. Housen, A giant in the tissue industry, 1932-2020 Obituary: B. Housen, A giant in the tissue industry, Charles World record life of 661 days and 473,810,000 nip cycles: World record life of 661 days kitchen towels. TM4 was installed at Hayat Kimya sleeve a world record by using Voith’s QualiFlex QualiFlex Voith’s using by record a world application. on the ViscoNip sleeve CrownT and paper napkins based toilet paper, Hayat Kimya Alabuga claims World Record World Alabuga claims Kimya Hayat RUSSIA Excellent cleaning of forming and press fabrics CleanLine Excell

+ Flexibility to replace high cost raw material The Voith CleanLine Excell is a very effective + Higher performance of forming and press traversing cleaning system that gives consis- fabrics tent and uniform cleaning of the surface and + Less pinholing of the sheet structure of forming and press fabrics to + Less cleaning chemicals create a wider operating window for tissue + Greater fabric permeability retention production. + Better uniformity and subsequent moisture profile + Less water and energy consumption + Better runnability

voith.com/cleanline CR Country Report: Portgual Portugal's overall fibre sources for tissue for tissue sources fibre overall Portugal's machine tissue average The relative and wider machines are Newer Bruce Janda Bruce Fisher International Senior consultant, technology. Figure 10 shows that this 10 shows Figure technology. on consumer application is concentrated softness to improve presumably bath tissue, and strength. bleached 11. Kraft in Figure shown are up pulp makes eucalyptus hardwood used in tissue the total fibre 50% of over most significant The second making. paper. recycled from comes contribution to its is compared Portugal quality of 12. This in Figure partners trading frequent machine technical tissue the average shows the trim to on the X-axis compared age width on the Y-axis. The the advantage. to have considered the overall the bubble represents of size business. tissue each countries capacity of

Next Solve Source: Fisher Source: ©2020 Fisher International, Inc. Figure 2 Figure 7 shows the furnace used by the used by the furnace 7 shows Figure high level the overall 8 shows Figure Portugal's about 10% of 9 shows Figure Figure 5 shows the evolution of Portugal's Portugal's of evolution the shows 5 Figure in mix is shown grade tissue Portugal's Comparing Figures 3 and 4 shows that that 3 and 4 shows Figures Comparing tissue production uses advanced uses advanced production tissue various tissue products within these grades. within these grades. products various tissue significant a playing product end the see We tall, and consumer facial, in consumer role consumer The majority of wadding. crêpe In this case, pulp. is hardwood bath tissue eucalyptus pulp is integrated the hardwood fibre. Portugal's in integration fibre tissue of includes both This integration production. fibre. eucalyptus and deviant three times as much tissue as it imports. times as much tissue three is Portugal shows balance The net tissue its tissue about 25% of exporting now capacity. production period. This the same capacity over tissue lines six tissue of in a net increase resulted capacity. production to Portugal's majority is 6. The overwhelming Figure but specialty tissue, consumer-tolerant part than many plays a larger tissue markets. new outlet for Portuguese tissue producers. tissue Portuguese outlet for new its tissue reduced has while Portugal risen have exports imports, the tissue a net tissue making Portugal faster, even were reversal If this country. exporting easily export could Portugal to continue, May/June 2020 May/June

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Tissue World Magazine World Tissue Country Report: Portgual Report: Country Solve

haring a border only with Spain, only with haring a border similarities of a lot shares Portugal the Iberian with its neighbour on This includes membership Peninsula.

Figures 4 shows Portugal's tissue exports exports tissue Portugal's 4 shows Figures Portugal’s major tissue import partners import partners major tissue Portugal’s Although Portugal and Spain share many and Spain share Although Portugal Portugal's economy was also struck by the was also struck by economy Portugal's CR Source: Fisher Source: ©2020 Fisher International, Inc. Figure 1 23 for the same period. Again, Spain represents the same period. Again, Spain represents for trade majority of the overwhelming is a while the United Kingdom transactions, volume has decreased through the period through has decreased volume third. than one slightly more by of the tissue imports with Italy, Austria, imports with Italy, the tissue of and Germany supplying all but France, import overall Portugal's the rest. 1-2% of further while inflation remains tame. further while inflation up most 3. Spain makes in Figure shown are at about 2% GDP in 2019. Portugal's 2 shows similarities, Figure much down has come unemployment has been flat and is now declining at an has been flat and is now -0.25% in 2020. The of estimated rate and grew to rebound has continued economy great recession and just gained traction in just gained traction and recession great population Portugal's 1 shows 2015. Figure due to a drop in birth rate, low immigration, immigration, low in birth rate, due to a drop projected of the and significant aging population. and NATO. Portugal expects a decrease in a decrease expects Portugal and NATO. at least 2060. The most population through a decline from shows scenario moderate 10.5m people in 2012 to 8.6m in 2060, in the European Union, the euro currency, currency, Union, the euro in the European CULTURE IN BRAZIL, ASIA, AND AFRICA. IN BRAZIL, ASIA, AND CULTURE PORTUGAL HAS HAD A SIGNIFICANT EFFECT ON WORLD HISTORY AS A MARITIME POWER AND EXPLORER. IT MADE A LASTING IMPACT ON A LASTING IMPACT AND EXPLORER. IT MADE POWER AS A MARITIME HISTORY EFFECT ON WORLD HAS HAD A SIGNIFICANT PORTUGAL

THREE TIMES MORE THANTHREE MORE TIMES IMPORTS COUNTRY NET EXPORTER TISSUE TREND ON TOWARDS S Country Report: Portgual CR 24 in comparing tissue production efficiency. competitors. Austria, Spain,andItalyare thenearest cost lowest cost tissue producer of thegroup. This analysisshows itis,onaverage, the comparison totheselectedtrading partners. Figure 14shows thisadvantage inacost high degree of tissue fibre integration. technology tissue produced islow. others, buttheoverall capacityof advanced of thistechnology probably matchesthe 13. Portugal's comparable fractional use to theothertrading partners inFigure advanced tissue technology iscompared on average buttendstobenarrow width. Portugal hasthelatesttissue machinefleet Figure 5 Figure 7 Figure 3 Source: Fisher Source: Fisher ©2020 FisherInternational,Inc. ©2020 FisherInternational,Inc. ©2020 FisherInternational, Inc. Source: Fisher Carbon emissions isthenewest frontier The country isadvantaged by relatively Portugal's relative applicationof Solve Solve Solve Tissue World Magazine Next Next Next

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May/June 2020 electricity grid.Spain,Portugal, Austria, from itscarbon-free nuclear-powered countries inthecomparison group. carbon emission pertonfor eachof the Figure 15shows thecradle togateaverage low costs duetofibre integration should challenge. Themoderntissue assets and population decrease willbeasignificant trade partners. Thelong-termforecast for from thegreat recession thanmostof its production shown inFigure 14. be expected toaddthecost of tissue (UK) orelectricitygrid(Germany).Thiscan fossil fuelconsumption inthetissue mills disadvantaged duetohighemissions from The UnitedKingdom andGermanyare and Italyare very similartoeachother. France hasasignificantadvantage Portugal hasenjoyed abetterrecovery Figure 6 Figure 4 Figure 8 ©2020 FisherInternational,Inc. Source: Fisher ©2020 FisherInternational,Inc. Source: Fisher ©2020 FisherInternational, Inc. Source: Fisher Solve Solve Solve Next Next Next

Portugal’s importsandexports. making capacity, thusaffecting Spain'sand countries mayfurtherinvest intissue- and perhapsconsolidate; neighbouring mills willcontinue tochange hands others new challenges. Tissue companies’ giving someparticipantsadvantages and environmental regulations willchange, today. Fibre prices, exchange rates, and summary of Portugal’s tissue industry neighbours pushback? or willimportsfrom itslarger European production assets tosupportexport growth tissue importertoatissue exporter. continue tosupportthetransition from a This articlepresents astaticpicture Will itcontinue toinvest innew CR Country Report: Portgual 25

May/June 2020 May/June

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Next Next Next About Fisher International, Inc. Solve Solve Solve myriad scenarios. By arming companies with with By arming companies myriad scenarios. long-term growth. For more information, visit information, more For long-term growth. challenges and better position themselves for and better position themselves challenges the knowledge that will help them gain a better that will help them gain a better the knowledge www.fisheri.com, email [email protected] or call email [email protected] www.fisheri.com, intelligence, benchmarking, and modeling across across and modeling benchmarking, intelligence, in the pulp and paper industry, provides insights, insights, provides in the pulp and paper industry, weaknesses, Fisher is helping businesses stave off off stave is helping businesses Fisher weaknesses, understanding of their strengths and help identify and help identify their strengths of understanding Fisher International, by virtue of its deep expertise expertise its deep virtue of Fisher International, by Source: Fisher Source: ©2020 Fisher International, Inc. Source: Fisher Source: ©2020 Fisher International, Inc. Source: Fisher Source: ©2020 Fisher International, Inc. Figure 10 Figure 14 Figure 12

Next Next Next Next Solve Solve Solve Solve Source: Fisher Source: ©2020 Fisher International, Inc. Source: Fisher Source: ©2020 Fisher International, Inc. Source: Fisher Source: ©2020 Fisher International, Inc. Source: Fisher Source: ©2020 Fisher International, Inc. Figure 15 Figure 13 Figure 11 Figure 9 CR CountryReport: Portgual CONSUMER TISSUE IN PORTUGAL: 2020 DISRUPTION VS LONG-TERM OPPORTUNITIES

7kg per capita in retail consumer These projections, however, do not yet tissue, Portugal falls somewhat fully take into consideration the impact of AT behind its European counterparts, Covid-19 outbreak. with room to grow especially in categories like toilet paper and facial tissue. It is Covid-19 disruption and full 2020 forecast worth noting, though, that Portugal is While the full extent of Covid-19 among European countries with a high outbreak is yet to be defined, a number of penetration of bidets, which limit the scenarios can be considered. Similarly to demand for toilet paper. other markets impacted by Covid, tissue Companies like Banita continue to manufacturers and suppliers in Portugal are promote and sell bidet in the country, also reporting higher consumer demand emphasiaing bidets as an eco-friendly for tissue products, as consumers have Svetlana Uduslivaia solution that is said to reduce the use of been stockpiling in the face of uncertainty Euromonitor International’s head of tissue & hygiene industry toilet paper by as much as 75%. Untapped consumer and product innovation will likely be supporting positive, albeit slow, growth in retail tissue COMPANIES LIKE BANITA CONTINUE TO PROMOTE AND SELL BIDET IN THE in the country in the next five years and long term, at projected 0.6% in CAGR COUNTRY, ALSO EMPHASIAING BIDETS AS AN ECO-FRIENDLY SOLUTION retail volume (measured in tonnes) over THAT IS SAID TO REDUCE THE USE OF TOILET PAPER BY AS MUCH AS 2019-2024. This is despite expected weak birth 75%. UNTAPPED CONSUMER AND PRODUCT INNOVATION WILL LIKELY BE rates and negative growth in population SUPPORTING POSITIVE, ALBEIT SLOW, GROWTH IN RETAIL TISSUE IN THE in Portugal over the same period of time, indicative of some opportunities in the COUNTRY IN THE NEXT FIVE YEARS AND LONG TERM, AT PROJECTED 0.6% IN market in terms of household penetration. CAGR RETAIL VOLUME (MEASURED IN TONNES) OVER 2019-2024.

Retail tissue sales, kg per capita, Western Europe, 2019 14

12

10

8

6

4

KG per capita KG 2

0

UK Italy Spain France Ireland Austria Greece Norway Sweden Finland Germany Belgium Portugal Denmark Switzerland Netherlands

Table 1: Retail tissues sales, kg per capita, Western Europe 2019 Source: Euromonitor International

26 Tissue World Magazine | May/June 2020 CR as well as slower business activities, expected to decline as recovery of business consumer attention.

school closures and move to work-from- activity, travel and tourism will take longer In toilet paper and paper towels, compact CountryReport: Portgual home options. to comeback to pre-Covid normal. Pe-Covid coreless rolls have been gaining traction Depending on the length of the stay-at- projections indicate AfH retail tissue in across brands and price tiers. Giant rolls home practices and the higher need for Portugal to gain 5% CAGR in value terms have also been gaining acceptance among at-home products, Portugal can see further and 3% in volume. However, prolonged consumers in the country, while additional boost to demand through the 2020, adding Covid downturn is likely to throw growth cost-efficiencies and functionality were somewhat to the projected sales in volume rate into a negative territory. offered by a new line of Colhogar Adapt and value of retail tissue. However, if paper towels. The new line allowed for a ongoing Covid pandemic leads to prolonged Path to innovation for long-term growth sheet of towel to be split in two and avoid economic downturn and further losses of - from value and convenience to eco- unnecessary waste. The brand also released jobs and incomes, consumers are likely to friendly and premium a new XXL paper towel roll, offering extra scale back on purchasing non-essentials While Covid-19 pandemic will have an absorption even in wet conditions. like paper towels, napkins and facial tissue, impact on consumer purchasing across Furthermore, tendencies towards turning instead to cheaper alternatives and product categories in 2020, a number of products with eco-friendly positioning have shaving off estimated nearly 2% from the trends have been playing out on the market been noted in packaging innovation, like projected already modest growth in retail that can help plan for longer term growth in that by Renova. The company introduced tissue revenues. consumer tissue. paper packaging for its tissue products Current Euromonitor Industry Forecast Looking at various product categories, in 2018 to respond to the trend towards Model indicates best case scenario at boxed facial tissues still has a low reduction in the use of plastic. 1.2% rise in volume vs Covid-19 recession penetration in the Portuguese market, While 2020 is expected to be challenging scenario at flat growth in volume, at about offering an opportunity for long term for the industry, looking ahead there 0.2%, for the full calendar 2020. However, growth. Historically, suppliers of facial are opportunities in driving further as the situation changes rapidly, the tissues have been using packaging to household penetration of products scenarios might change further, as new differentiate between products. Renova, like facial tissue as well as innovation government measures and shifts in macro- for instance, invested in themed products alongside of cost-efficiencies, absorbency, economic scenarios take effect. within its Pop line, also featuring images added functionality, and environmental Additionally, AfH demand and sales are associated with school and offices to draw positioning.

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Tissue World Magazine | May/June 2020 27 CS ConsumerSpeak THE GAME CHANGER IN RECENT TIMES HAS BEEN ACCESS TO TISSUE PRODUCT INFORMATION… ALLOWING THE PUBLIC TO MAKE INFORMED DECISIONS ON THE ENVIRONMENT, HEALTH AND WELLBEING. London based Mark Hendriksen is a researcher and blogger about the world of toilets, with humorous and educational health related books to his credit. He’s an entrepreneur with a successful career in tourism publishing, a problem solver, a yogi and a part time traditional sourdough baker, and the award-winning owner of The Merchant’s House Boutique Hotel/B&B on Corfu, Greece. His report was written pre-lockdown.

t home in London, I like to ensure With the outbreak of Covid-19, in terms that we choose products from the of retail and buying habits it’s not directly Aeco-friendly options. That applies Covid-19 that is, and has been effecting to toilet paper and pretty much everything people and their shopping routines, but the else. Availability is still good and new ‘eco- fear. I research and write about the world friendly’ brands are constantly emerging, of loos and my message from day one was: while established ones are improving, all “There is no shortage, other than that created of which is helping to build and sustain by panic buying.” the eco-momentum. With the boutique B&B we have in Greece, we have always Another consideration is the number of people cared for the environment and chosen the using face tissues or kitchen roll as a toilet ‘greenest’ options available there too. Though paper substitute, and being blissfully unaware interestingly, in most of Greece (and a number that these don’t break down like toilet paper of other European countries) they don’t permit and further clogs up sewers. I’m glad to see a big-time toilet paper and tissue user. We’re you to put toilet tissue in the toilets, but in there’s been more publicity about this in the adapting to the environmentally-friendly bins adjacent to the WCs. It’s a much-debated past few weeks, but it’s worth repeating until products but it seems to be a market that’s topic as to why, but it seems that either the it sinks in. growing organically. pipes are too narrow, they just like to keep the sea clean, or both. The unforeseen shopping curveball has My prediction that bidets will make a disrupted some supply chains and skewed comeback is beginning to come true; it’s Quality doesn’t always necessarily equate to things for a while. We’re beginning to see the becoming a major disruptor in the toilet paper greater expense and vice versa. Companies end of the tunnel as the ‘hoarders’ who bought sector and Covid-19, plus the toilet paper like Cheeky Panda, Who Gives a Crap (WGAC), excess toilet paper and similar shopping stampede has been spotlighting this as an Ecover, smol and Method are all high quality supplies now see that shops are being re- option, and potentially a more permanent but also offer value. It can be done, and stocked, limitations have been set. fixture in traditionally paper-only bathrooms. as there’s more demand for products that Again, it’s another of the potential changes combine quality + care for the environment, Queuing is helping as well. The main concern along with ‘bamboo’ toilet paper suppliers, that should result in better prices for better now is that the supply chain, transport and but perhaps these may be the tails (or tales) quality becoming more of a standard. What’s logistics keep working. We didn’t feel the that start to wag the dogs i.e. the bigger toilet really boosted that in recent times is access need to buy more. We believed that given paper manufacturers? to product information, and subsequently time and enough social media commentary, purchasing, via social media – that has been things would right themselves – as all the The accessibility of tissue products is and remains a game-changer. experts had said all along. With some of widespread, but what has historically been the the companies we buy from, their main (if main influence for consumer behaviour, choice Buying environmentally-friendly tissue not only) purchasing option is online like and thinking and still is, is the local culture products is something that I’ve been aware of WGAC and smol. Otherwise, we’ll buy from and their bathroom culture. As these worlds way back. But the accessibility wasn’t there, supermarkets, the likes of Wholefood Market collide, it appears the industry is becoming nor enough publicity or communication to and/or health shops. Mixing it up between more creative and aware of how this may help the public make informed decisions. online and ‘high street’ is the ideal retail affect them in the longer term. For example, I find environment, health and wellbeing therapy and I personally feel is a better mix the Covid-19 pandemic and the surge in toilet of particular importance. I’m a big fan and for local community, staying sociable (getting paper and tissue sales has led to consumers advocate of companies that are ‘giving back’ out and off the cell phone, etc.), improving abandoning their usual brands in favour of e.g. helping third world countries, i.e. 25% of neighbourhoods and retaining meeting places. whatever was available. the world population who lack access to basic sanitation/water. If part of the price you pay is From a member of the public’s perception and It will be interesting to see if, and how many, for good, then yes, I truly support that. with a degree of general knowledge, the UK is go back to their previously preferred brands.

Tissue World Magazine | May/June 2020 28 RS Retail Special 29 May/June 2020 May/June

| The retail tissue demand growth is demand growth tissue The retail Some tissue companies are specialising are companies Some tissue Private label grows faster almost faster almost label grows Private everywhere and to population growth related strongly households. Retail number of increasing by economic influenced is less segment and eating out increase the AfH demand, the AfH and eating out increase the downturns but during economic clear as well. opposite impacts are and it can be seen as a way to enter on AfH and entry in AfH Competition markets. new side where is easier than in the consumer powerful producers, PL efficient the large players branded and the strong retailers dominate. Tissue World Magazine World Tissue lobally the AfH share of total tissue total tissue of share lobally the AfH ranging 20% is slightly over market 30% in North America to over from AfH is somewhat more volatile than the volatile more is somewhat AfH Population growth is a major AfH growth growth is a major AfH growth Population Globally the consumer segmentgrowth growth determines the total tissue demand IN THE LARGE EMERGING MARKETS AND GLOBALLY AS A WHOLE THE IN THE LARGE EMERGING MARKETS AND GLOBALLY TISSUE DEMAND GROWTH. CONSUMER SEGMENT DETERMINES THE TOTAL DEVELOPING, FACTOR. IS A MAJOR AFH GROWTH GROWTH POPULATION ALSO BOOST THE AFH SALES ASE-COMMERCE AND DISTRIBUTION NETWORKS PRODUCT AND DISPENSER SYSTEM OFFERINGS. WELL AS INNOVATIVE retail segment; in high economic cycles the cycles in high economic segment; retail travelling and increased high employment somewhat over 10% in China. In many over somewhat shows segment the AfH markets mature very until the, reflecting a steady growth economic general good fairly recently, emerging in the large However, climate. and globally as a whole the markets total determines the segment consumer demand growth. tissue and e-commerce Developing, factor. also boost the AfH distribution networks and product as innovative sales as well dispenser system offerings. G

Retail Special Retail

Pirkko Petäjä Pirkko Principal, Management Consulting AFRY Mikko Helin Mikko Principal, Management Consulting AFRY RS Pirkko Petäjä and Mikko Helin, principals at AFRY Management Consulting, weigh the short- and long-term the short- weigh Consulting, Management principals at AFRY Helin, and Mikko Petäjä Pirkko during and after the pandemic. market and AfH tissue growth tissue consumer for consequences INCREASED IN RELATIVELY SHORT NOTICE.’ SHORT IN RELATIVELY INCREASED SUPPLY CHAIN THAT CAN ADJUST AND BE CAN ADJUST THAT CHAIN SUPPLY ‘AS PANIC BUYING SOARS, ALL SUPPLIERS ALL SOARS, BUYING PANIC ‘AS THE OF RESILIENCE THE EMPHASISE Retail Special RS 30 than inmanyother products. packed goods, like tissue paper are faster modest, butdevelopments inconsumer share inon-lineshoppinggeneral isstill product maybeimpactedetc.Privatelabel habits; package sizes grow bigger, type of shopping hasanimpactonpurchasing promotions andsalescampaigns.On-line groceries purchased duringvariouson-line tissue paperisoften together with other on-line andtypicallysomethinglike increasing share make theirdailyshopping it more attractive. supply anddelivery innovations have made use itincreasingly even ingroceries andthe younger generations have finally learnedto however, increasing indoubledigits.The share of thetotalretail. Onlineshoppingis, though itstillremains inarelatively low impact onthetissue trade. chains anddiscount stores hasanincreasing concentration andprevalence of large Developed outof modernretail, the great driver shapingthetissue markets. Retail developments very fast. time periodsthedevelopment hasbeen the mature markets, insomecountries and 2010, andissome66%now. 58% before theeconomic crisis,63%in private labelshare involume termswas some 30%.Inwestern Europe, theaverage share was22%in2010,whenitcurrently is the past.InNorthAmerica,privatelabel regions thathave beenstrongly branded in Its relative growth hasaccelerated inmany growing segment inmosttissue markets. increasingly applied. even thelatestpremium technologies are been becoming closertothatof brands; value for money. Privatelabelqualityhas deliver innovations, betterqualityand private labelshave become products that differently totheolder generations; labels. Millennialsseeprivatelabels struggles andmaytherefore prefer private to thebrands. They alsohave financial shops andretailers where they shopthan branded duetolower price. choose retailer brands (privatelabel)over economic growth more consumers may volatility asawhole, butduringslow From theyounger generations an On-line retail continues toincrease, The retailer development isalsoa Private labelhasincreased throughout Private labelistherefore thefastest The Millennialsare more loyal tothe Tissue World Magazine |

May/June 2020 FOR MONEY. BECOME PRODUCTSTHAT DELIVERINNOVATIONS, BETTERQUALITY ANDVALUE LABELS DIFFERENTLY TO THEOLDERGENERATIONS; PRIVATE LABELSHAVE AND MAY THEREFOREPREFERPRIVATE LABELS.MILLENNIALSSEEPRIVATE THEY SHOPTHANTO THEBRANDS. THEYALSOHAVE FINANCIALSTRUGGLES THE MILLENNIALSAREMORELOYAL TO THESHOPSANDRETAILERS WHERE BUY, THEREIS NONEEDFORTHAT, ANDACTUAL SHORTAGE ISNOT FORESEEN. RESILIENCE OF THEIRSUPPLY CHAINAND URGECONSUMERSNOT TO PANIC- ALSO ASPEOPLEAREINCREASINGLY AT HOME.ALLSUPPLIERS EMPHASISETHE AND ALSOINCREASEDHYGIENIC AWARENESS. RETAIL DEMANDINCREASES WIPES, ETC.INCREASESINTHE SHORT-TERM DUETO ACTUAL INCREASINGNEED IN ADDITIONTO TOILET PAPER, KITCHENTOWELS, HANDTOWELS, HANKIES,WET not much increase,ordoesit? paper inacrisis?Thebasicdemanddoes Why toiletpaper?dopeoplebuy and non-flushable wet wipes. substituting toiletpaperwithkitchentowel the UKsewers have beenblockingdueto something elseinsteadof toiletpaper:in consequences whenpeoplestart touse normal price atthemoment.There are also toilet papercanbesoldatmanytimesthe prices, however ine-baytypeof platforms to prices, ifnotyet tothenormal retail client. limitations of two packs of toiletpaperper some locationsinNorthAmericathere are shortage inourown grocery stores. In has beenwitnessing theatleasttemporary last toiletpaperpackages. Every oneof us empty shelves andpeoplefighting for the America andAustralia there are videosof the world. InadditiontoEurope, in North amounts thannormal. report they have soldalmosttriplethe people are stockingtoiletpaper. Producers phenomenon thattakes place everywhere; of theCovid-19 pandemic,there isacurious Covid-19 ontissuemarkets? Will therebeanylong-termimpactofthe Similarly peoplefear thatthey endupin availability weakening orstopping. The market situationstartstoreflect This news hascome from everywhere in What ishappening?Duringtheoutbreak The first reason isthe fear of the toilet paperisasymbolof fightingthat. a general fear of disgust anduntidiness and control. Inahealthcrisisthere canalsobe control andyou get afeeling of having necessary andfundamentalthatyou can you cando;buytoiletpaper. Itissomething moment there isatleastsomethingwhat in knowing thatitisthere. Inanuncertain safety andpreparedness. There isacomfort paper? similar situation,whyespeciallytoilet there are manyotheritemsfacing the quarantine andcannotbuymore, however, short notice. can adjustandbeincreased inrelatively shortage isnotforeseen. Alsoproduction buy, there isnoneedfor that,andactual chain andurge consumers nottopanic- emphasise theresilience of theirsupply are increasingly athome. Allsuppliers Retail demandincreases alsoaspeople and alsoincreased hygienicawareness. due tohoarding, actualincreasing need wipes, etc.Increases intheshort-term kitchen towels, handtowels, hankies,wet toilet paper. Inadditiontotoiletpaper, term peakintheretail demandof consumer demand? What istheshorttermimpacton that maybeyou needtostockitaswell. it crazily, theresult isthatyou starttothink normally, butwhenyou seethatpeoplebuy else doesit’.Itnotcross your mind

Very common isof course ‘everyone Some saythattoiletpaperisasymbolof There isobviously asignificantshort

DS Distribution Special Distribution RS Retail Special 30 31 Russia 25 Finland May/June 2020 May/June

| Brand strongholds North America Italy The economic crisis due the Covid-19 crisis due the Covid-19 The economic 20 Luckily many mills have already been already Luckily many mills have especially in China. The to re-open, allowed impact on the an have breaks production in Pulp prices the companies. of economy the long run typically do not peak during which might be a positive a downturn, term supply/ after the shorter factor be can, however, There demand imbalances. of the for some financial difficulties severe etc. will be delayed, projects companies, that can impact the machinery and service and the whole branch. suppliers Nobody knows will be unprecedented. bad it will be but undoubtedly it can how impact also on and indirect a direct have and hygiene is, Tissue industry. tissue the where the businesses one of however, crises, in economic resilient demand is fairly between will be differences though there and segments and shifts between regions categories. operational and financial problems. A few few A problems. and financial operational in the place taken have closures temporary (some reasons precaution for areas worst reasons). market for Duni, Rexcell mills, like Tissue World Magazine World Tissue UK 15 Austria Netherlands Greatest movers Greatest Portugal Spain 10 The industry may also suffer due to The industry may also suffer Economic downturn has a known impact has a known downturn Economic an economic from normally suffers AfH PANDEMIC MAY LEAD TO INCREASED DEMAND FOR HYGIENIC AND HEALTH LEAD TO MAY PANDEMIC FOCUS ON HAND HYGIENE. FOR EXAMPLE, GREATER PRODUCTS DUE TO, ECONOMIC DOWNTURN HAS A KNOWN IMPACT ON TISSUE MARKETS; NORMALLY ON TISSUE MARKETS; NORMALLY IMPACT HAS A KNOWN ECONOMIC DOWNTURN HIGH, BUT NECESSARILY ON DEMAND IN VOLUME TERMS IS NOT THE IMPACT LABEL AND PRICES, PRIVATE QUALITIES LOWER THERE IS A SHIFT TOWARDS SUFFERS COST OF BRANDED. AFH NORMALLY INCREASES ON THE TYPICALLY BUT IN THE LONG TERM THE COVID-19 FROM AN ECONOMIC DOWNTURN, health products due to, for example, greater greater example, for due to, health products on hand hygiene. focus on tissue markets; normally the impact on markets; on tissue terms is not necessarily demand in volume lower is a shift towards high, but there private label typically qualities and prices, branded. of on the cost increases badly the Depending on how downturn. to can be difficulties is hit, there world and travel in e.g. levels the pre-crisis reach in However, consumption. tourism related pandemic may the long term the Covid-19 hygienic and demand of lead to increased suffering of this airborne infection, hankies of this airborne infection, suffering will be used and they can be increasingly Generally after use. quicker away thrown hygienic awareness speaking the increased impact on all tissue an increasing will have paper demand. toilet including even paper, Impact of the economic crisis France 5 Switzerland Belgium Germany PL strongholds PL Private Private label volume share 0 0% 80% 60% 40% 20% 100% Increased retailerconcentration resultsin higher private labelshares. normallyhas downturn aEconomic similarimpact In the long run the AfH demand can In the long run the AfH The coronavirus has rapidly accelerated accelerated has rapidly The coronavirus Only very short-time shortages can take can take shortages short-time Only very pandemic Covid-19 In theory the ongoing awareness. Paper hand towels can be hand towels Paper awareness. after dryers to blow compared preferred permanently. hygienic due to the increased increase package sizes, shopping trends (how much (how shopping trends sizes, package vs. branded at a time), qualities favoured, can change private label. These matters coronavirus has an increasing impact on impact has an increasing coronavirus permanently. maybe even on-line shopping, an impact on have This can consequently in quarantine and become very useful for for useful very and become in quarantine can learn this new at risk. People groups to use e-commerce way and will continue that the also after the crisis. It is likely the increase of the on-line grocery the on-line grocery of the increase people from be requested It can shopping. Will there be any long term impacts on habits? and trading behaviour impacts may start to show a little later. impacts may start to show towels, usage in health care, hoarding among hoarding in health care, usage towels, etc. Regional and distributors consumers and the negative may occur differences hotels, restaurants and schools. However, However, and schools. hotels, restaurants short term also the AfH at least at the very due to hygienic demand has increased hand of consumption increased awareness, should hit the whole AfH segment quite hard quite hard segment should hit the whole AfH to people demand owing with decreased empty travel, reduced home, from working their favoured imported brands with local imported brands their favoured or some other hick-ups may occur. products, place. Some people may have to replace to replace Some people may have place. Technical Theme: Packaging TT A 32 roll supply chainswere strengthened general, alsohighlightsthattoilet short-term. should importationbecome difficultinthe months –sothere isnoneedfor concern rolls –enoughtosupplythepublicfor of theraw materialsusedtomake toilet manufacturers have substantialreserves of Paper Industries(CPI),British could suffer asa result. will come grindingtoahaltandUKsupplies that tissue production andimportactivity under intenselockdown, there are concerns publishing withsomeEuropean countries mainland Europe, and,atthetimeof produce tissue paperimportedfrom right supportfrom government. of handlingthechallenges aheadwiththe supply chain,they are more thancapable the businesses incharge of protecting the are someareas of potentialconcern for unprecedented intheUK.Yet whilethere Sarah Laouadi,European policy manageroftheUK-basedFreight Transport Association,explains. Yet logisticsareadaptableandresilient,UKcompanieshave alreadypreparedforanypotentialno-dealBrexitdisruption. Covid-19 hasledtoasurgeindemandfortoiletpaper, andconcernsthattissueproduction andimportscouldgrindtoahalt. MAINTAIN SUPPLIESDURINGTHEPANDEMIC ‘KEY WORKER’ STATUS WELLPLACEDTO LOGISTICS’ LEANBUSINESSMODELAND Freight Transport Association European policymanager, Sarah Laouadi TT With mostof thepaperpulpusedto Andrew Large, thegroup’s director- However, according totheConfederation in thesupermarkets. Ithasbeen rolls infear of future shortages panic boughthuge quantitiesof round theworld consumers have Technical Theme:Logistics Tissue World Magazine

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May/June 2020 prices aslow aspossible, butemptyshelves deliveries made“justintime” tokeep under avery leanbusiness model,with panic buy. Logistics businesses operate outbreak, providing thatpeople donot needs of thepublicduringCovid-19 and otherbasicitemsrequired tomeetthe sector candeliver allthetoiletroll, food as Turkey andMalaysia. supplies from countries furtherafield, such countries face lockdown, hecanget his on mainlandEurope, andshouldthose toilet paperfrom anumberof countries the raw materialsneededtoproduce Khurram Iqbal,explained hecansource toilet roll manufacturer Nova Tissue, managing director of Manchester-based alternative materialsourcing ispossible. paper manufacturers remain adaptable, across theglobe, andaslongtoilet to produce toiletpaperare readily available plenty of supply. event of ano-dealBrexit andassuch,have space toplanfor border disruptioninthe significantly increased theirwarehouse Brexit preparations; manyCPImembers recently by businesses undertaking authorities toextend the hours inwhich has confirmed itwill work with local pandemic. For example, theUKgovernment the sectortoreact more effectively tothe their fullattentiononthepandemic effort. to be‘key workers’ sothatthey canfocus government hasdeemedtheseindividuals can continue theiressential work. TheUK and businesses, we are confident they with therightsupportfrom thegovernment UK’s supplychainremains functioning, but work underextreme pressure toensure the and otherlogistics workers continue to do notmeanthatstockisonitsway. Other recent developments willallow HGV drivers, warehouse staff, vandrivers On thedomesticfront, theUKlogistics In arecent interview withinews, the Furthermore, theraw materialsneeded members are heard andacteduponwhere departments toensure theconcerns of our for Transport (DfT),andothergovernment Industrial Strategy (BEIS),theDepartment Department for Business, Energy and demand. rolls duringthisperiodof unprecedented to ensure shopsremain stocked withtoilet and otherretailers. Thisvitalmove willhelp deliveries canbemadetosupermarkets of goods. businesses dependontheefficient movement such asretailers andmanufacturers whose as well asthebuyersoffreight services from theroad,rail, sea andairindustries, that representsall oflogistics,withmembers body. Itistheonly businessgroupintheUK Transport Association,aUK-based trade Laouadi, European policymanagerofFreight important toUKplc. supply chain,logistics hasnever beenmore goods move across borders andthrough the disruptive forces drivingchange intheway With Brexit, new technology andother the making, sellingandmoving of goods. than seven millionpeopleemployed in trading, directly having animpactonmore government atsuchacritical time. and thebusiness group’s requirements of industry, thesupportprovided by FTA, essential information andadvice for the provides visitors withanoverview of be found atwww.fta.co.uk/coronavirus, Covid-19 pandemic.Theportal,whichcan Britain moving andconnected duringthe portal tohelpthelogistics sectorkeep operate assmoothlypossible. to ensure the supplychaincontinues to possible; there isstillmuchtobedone FTA continues towork closelywiththe This articlewas writtenforTWM by Sarah Efficient logistics isvitalto keeptheUK FTA haslaunchedauniquefree web

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TW-AP_A4_Bangkok_v004.indd 1 23/03/20 14:00 Technical Theme: Packaging TT 34 Consistency andaccuracy: fibre paper overwrap. Ryan Holmer, technical sales,Infinity, is now claimingimpressive results. Infinity Machine &EngineeringCorp.teamedwithLittleRapidsCorporation totargetmarket leadershipwiththeirnew100%recycled FREE LINEAT HIGHSPEEDSOF100PPM ECOVA –HELPINGTO CREATE APLASTIC- Infinity Machine&EngineeringCorp. Technical sales, By RyanHolmer TT Technical Theme:Packaging Tissue World Magazine

the Eclipse T4unwindsystemislocated directly oppositethe roll infeed |

May/June 2020 O pack wrapper. verified usinganInfinity EclipseT4multi- overwrap materialhasbeen testedand reel. Duringtheinitialtests,Ecova paper can beusedonawrapper justlike apoly complete, theEcova paperoverwrap reel paper reel. Whentheproduction process is during theproduction process of the is appliedtothepaperoverwrap material eco-friendly. Instead,withEcova, aglue which would defeat thepurposeof being material tomake itsealinsidethewrapper, of plasticappliedtothepaperoverwrap recycled fibre. There isNOT athinlayer overwrap materialismadewith100% 100% plasticfree. Also, theEcova paper market startwiththefact thatEcova istruly material versus othersolutionsonthe called Ecova. The Infinity Eclipse T4multi-pack Advantages of theEcova paperoverwrap designs inapaperoverwrap material Corporation todevelop advanced has partnered withLittle Rapids ver thepastsixmonthsInfinity achieving highspeedswiththepaperwrap are folded. Thisforward motionhelpsto the paperwrap astheendsof thepack creates continuous forward motionon a brushstyleheadfolder system,which elevator andthenintotheoverhead system. flight barsystem for loadingontothe synchronises eachlayer intoasecondary bar stackingsection.Themachinethen via aservo choke beltinfeed intotheflight optional) andthenseparates theproduct infeed from aninfeed conveyor (five lanes wrapper operates usingfour lanesof designed toconsistently andaccurately directly oppositetheroll infeed andis versus competitors. amount of timerequired for changeovers 24 overhead trolleys whichreduces the package. Theoverhead unitalsofeatures motion creates ahigherqualityfinished also causejams.Inaddition,thisforward back onthepaperasitisfolded, whichcan because thebrushsystemdoesnotpull The overhead sectionoperates using The Eclipse T4unwind systemislocated TT Technical Theme: Packaging 35 May/June 2020 May/June

| This article was written for TWM by Ryan by Ryan written for TWM This article was bundles or standard poly, Infinity along poly, bundles or standard Little like with its various industry partners, all the tissue have Rapids Corporation, your to advance technology packaging performance. company Machine & sales, Infinity technical Holmer, Engineering Corp. Tissue World Magazine World Tissue Infinity says it offers the latest eco-friendly options Infinity says it offers the latest eco-friendly Whether the future of tissue packaging packaging tissue of Whether the future The Infinity Eclipse T4 multi-pack Eclipse T4 multi-pack The Infinity wrapper, case packer and case sealer, along and case sealer, case packer wrapper, paper overwrap Rapids Ecova with the Little and to perform solution is all engineered the option for an eco-friendly provide future. bio-plastic, cartons, cases, is paper wrap, live roller conveyor to the case sealer. conveyor roller live Advanced performance: Advanced TWO-PACK HOUSEHOLD TOWEL AND FOUR-PACK BATH TISSUE. EACH OF BATH AND FOUR-PACK HOUSEHOLD TOWEL TWO-PACK TO ANY MACHINE MODIFICATIONS RAN WITHOUT MAKING THESE FORMATS WRAPPER. PACK INFINITY’S ECLIPSE T4 MULTI- INFINITY AND LITTLE RAPIDS CORPORATION HAVE RUN THE ECOVA PAPER PAPER RUN THE ECOVA HAVE INFINITY AND LITTLE RAPIDS CORPORATION INCLUDING FORMATS IN PRODUCTION ON TWO MATERIAL OVERWRAP the perfect paper wrapped pack is created the perfect paper wrapped In addition, the packs were run through run through In addition, the packs were Infinity and Little Rapids Corporation Corporation Little Rapids Infinity and 100% plastic-free: 100% plastic-free: packers are designed to automatically erect erect designed to automatically are packers product, the incoming collate a case or tray, it onto a and discharge fill the case or tray, ultimate eco-friendly line with no plastic ultimate eco-friendly and used at all! The Infinity case packer when an industry standard case sealer are Infinity case packaging. to tissue it comes an Infinity conveyor system, Infinity case conveyor an Infinity the to create and Infinity case sealer packer, engineering is also confident that we will that engineering is also confident normal production be able to achieve lines. speeds on faster was able to achieve speeds of 100 ppm. speeds of was able to achieve lines, this was the On these production Infinity the winder. max output from bath tissue. Each of these formats ran ran these formats Each of bath tissue. without making any machine modifications wrapper. Eclipse T4 multi-pack to Infinity’s wrapper Eclipse T4 multi-pack The Infinity have run the Ecova paper overwrap material overwrap paper Ecova the run have including formats on two in production and four-pack household towel two-pack no contamination to the machine from an from to the machine no contamination glue system. external before entering the machine means entering the machine before glue external is no additional that there and wrapper system needed on Infinity’s sealing belts then re-heat the glue to seal sealing belts then re-heat wrapped paper the pack, and the perfect was applied The glue which pack is created. around the tissue rolls in order to ensure to ensure in order rolls the tissue around As the finished package. a high-quality overhead, the through pack moves collated side bottom sealer and the wrapper’s place a sheet of paper overwrap material material paper overwrap a sheet of place Technical Theme: Packaging TT 36 and Italy, andEros Burelli,marketing product managerforpackaging equipment Report by FabioPerini’s GiuseppeAlberti,salesmanagerpackaging, MassimoGrandi, regionalsalesdirectornorth,southwest Europe PIONEERING PERFORMANCE ECOLOGICAL PACKAGING LEADFABIO PERINI’S THE AUTOMATED CARBON-TANDADVANCES IN packaging equipment Marketing product managerfor Eros Burelli South WestEurope andItaly Regional salesdirectorNorth, Massimo Grandi Sales managerpackaging Alberti Giuseppe TT Technical Theme:Packaging Tissue World Magazine

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May/June 2020 A format changeovers. Thankstothenew with reduced skillscaneasilyperform experienced operators, soeven technicians work. the residual riskontheoperators’ daily to significanttimesavings, italso reduces operations tochange theformat. Inaddition the machinetocarryoutnecessary avoiding theneedfor technicianstoenter of trolleys neededfor eachformat, changeover. drive complete withautomatictrolley world equippedwithanadvanced outfeed wrapper thefirst packaging machineinthe One Touch systemhasmadetheCarbon-T energy consumption. motors usedare energy saving tominimise main motors. Additionally, allthebrushless and consequently minimisesthesizes of the to reduce theweight of themoving parts components allows thepackaging machine and manufacture. technological innovations usedinitsdesign demonstrates themanycutting-edge on theIndustry4.0concept. Itsperformance generation of packaging technology based wrapper canbeconsidered asthelatest forefront of tissue technology. to maintainFabio Perini’s place atthe replacements for plasticare helping MINIMISE ENERGY CONSUMPTION. ADDITIONALLY, ALLTHEBRUSHLESSMOTORS USEDARE ENERGYSAVING TO PARTS ANDCONSEQUENTLY MINIMISESTHESIZESOFMAIN MOTORS. THE PACKAGING MACHINETO REDUCETHEWEIGHTOFMOVING THE USEOFALARGENUMBER OFCARBONFIBRECOMPONENTSALLOWS It automaticallyreplaces thenumber The introduction of thepatentedTrolley The useof alarge numberof carbonfibre Under theCasmatic brand, theCarbon-T A technology thatdoes notrequire develop integrated level Apaper wrapper, andextensive research to changeover ontheCarbon-T world first automatictrolley tools. can beeasilyreplaced withoutusing any new magneticretention elevator platethat does notneedtobereplaced andwitha continuous andautomaticadjustmentthat a new product support(Backplate)with easier, theCarbon-T isalsoequipped with the qualityof thesidefolds. and consequently hasapositive effect on comb stroke according tothedesired format develop anew software thatoptimisesthe outfeed trailer, ithasalsobeenpossible to paper industry: meet thethree mainrequirements of the recyclable) papers, i.e. thosepapers that packaging usinglevel A(certified sustainability needs. of thematerialsthatmeetworld’s areas, findinganddeveloping some with suppliers indifferent geographical materials toplastichasleduscollaborate the company’s recent investments. Sustainability hasalsoplayed akey role in that Fabio Perini hasbeingtakingcare of. Effectiveness (OEE). general improvement inOverall Equipment format changeover times,whichresults ina machines; there isaconsistent decrease in when compared toconventional packaging maintenance have become mucheasier As aresult, overall operations and To make theoperator’s work even • • Casmatic wrappers canproduce The continuous search for alternative Technology hasn’t beentheonlytopic without touchingthemetalparts; under standard conditions; allow theformation of thesheet allow pulpproduction atthepapermill TT Technical Theme: Packaging 37 May/June 2020 May/June

| modified side sealing to allow for sealing to allow modified side paper) in a few minutes; few paper) in a and control temperature greater the of time the contact increase plates. The with the sealing package obtaining allows sealing exit new seals with both polyethylene resistant and laminated papers. • paying needs, to customers’ Listening Inherent changes in tissue industry industry in tissue changes Inherent As AfH product variations continue to to variations continue product As AfH the tissue part of As an integral attention to market trends, investing in investing trends, attention to market and taking care and development research impact and environmental sustainability of elements to strengthen been the key have position in the tissue Perini’s Fabio market. packaging by Fabio written for TWM This article was Perini’s Giuseppe Alberti, sales manager regional sales Massimo Grandi, packaging, and Italy, director north, south west Europe manager marketing product Burelli, and Eros equipment. for packaging Tissue World Magazine World Tissue industry’s manufacturing line, AfH end-of- AfH line, industry’s manufacturing address systems need to line packaging integrating by challenges manufacturing into its processes. the latest technology necessitate requirements packaging facilitate systems which highly-flexible to accommodate changeovers, quicker orders. shorter-run and just-in-time from can be derived This flexibility and environmental protection initiatives. initiatives. protection and environmental and folds in various rolls products Tissue paper made with high-quality recyclable in the AFH materials is boosting growth market. so the market, to meet the needs of evolve improve be adapted to must technology efficiency and cost throughput production variations in to deal with increased This is particularly true with packaging. packaging. end-of-line bout one-third of the tissue the tissue of bout one-third worldwide consumed products and commercial used in AfH are industrial settings such as office and plug-in connector, changing the and plug-in connector, easy longitudinal sealer is extremely the us to change allowing and fast, poly to kraft material (from packaging new self-centering shaft less unwinder unwinder shaft less self-centering new its from that supports the reel reel axis – an upper belt transmits central it and allows to the reel the movement to unwind; flat longitudinal sealer designed to paper laminated to with kraft work materials or with pre- eco-plastic glues. Thanks to its quick coated • • These paper napkins, wipes, paper These paper napkins, wipes, paper a global compound to register Projected agencies, government And increasingly, of the packaging material, whether it is the packaging of paper. or laminated kraft polyethylene Full Kit includes: The Biopack packaging of toilet rolls and kitchen towels towels and kitchen toilet rolls of packaging without material, packaging with ecological and performance production compromising Thanks finished product. the of the quality to Kit, it will be possible to the optional regardless same performance the achieve university campuses, restaurants and and campuses, restaurants university content specifying recycled hospitals are to support sustainability and towels tissue towels, toilet paper and incontinence toilet paper and incontinence towels, among the most widely are products and are in the world, used commodities institutional and in demand by increasingly hospitality markets. 4.2% during of (CAGR) rate annual growth products tissue 2017 – 2022, the AfH a growing is experiencing segment market to manage various products demand for sanitation and hygiene. and government buildings, hotels, schools, buildings, hotels, schools, and government airports, and commissaries, restaurants stops. rest hospitals and highway A

Technical Theme: Packaging Technical

contain minimum quantities of quantities of minimum contain wrap with paper that fully supports paper that fully supports with wrap certified requirements, compostability certification the most advanced by bodies in the industry. contaminants to reduce their impact their to reduce contaminants or process on the papermaking Edson Steve Boothe Steve manager, Senior account It has been designed to allow the It has been designed to allow In response to the continuous market market to the continuous In response In addition to giving an important In addition to giving an • TT Packaging’s search for optimum operational integration has a new leading product. Here Steve Boothe, senior Steve Here product. leading has a new integration optimum operational for search Packaging’s and nonwovens the tissue packaging equipment for of secondary at Edson, a manufacturer manager account case packer. the Model 3600 C compact for advance to a post-pandemic looks forward industry, THROUGHPUT OF AFH TISSUE PRODUCTS SMARTER CASE PACKING FOCUSES ON END-OF-LINE Full Kit for its Carbon-T packaging machine. packaging its Carbon-T Full Kit for system requires. Fabio packaging, ecological demand for the Biopack developed has recently Perini our customers versatile and performing and performing versatile our customers to economically machines without having that the whole direction of absorb a change would allow, with a minimum adaptation with a minimum adaptation allow, would machines, to maintain on packaging thus giving performance, the current environmental impact, the aim of this impact, the aim of environmental that papers was to look for research Technical Theme: Packaging TT 38 in theindustry, whichallows for easy packer isoneof themostcompact systems Designed withasmallfootprint, thecase diapers andfeminine hygieneproducts. facial tissue, handtowels, folded napkins, spectrum of AfH products like rolled tissue, tissue market, thissystemhandlesawide advanced casepackingentriesintotheAfH Compact casepacking changeovers. handle multiplesizes of caseswithquick is onthroughput speedandflexibility to tissue andnonwovens industry. Thefocus secondary packaging equipmentfor the packer from Edson, amanufacturer of the Model3600Ccompact caseandtray case-packing process. present aconsiderable optimisationof the changeovers between product runs,would handling avarietyof casesizes withquick and fully-integrated machinecapableof benefits of operating asingularautomated size casepackingrequirements, the dedicated machinesfor handlingvarious- downstream warehousing anddistribution. primary packaging of AfH products with connecting upstream manufacturing and sealing –whichplaysapivotal role essentially, caseerecting, packingand is corrugated caseandtray packing– products Case packing designedforAfHtissue requires. support thefluiditythatsuchthroughput implementing therightautomationto The latestevolution of casepackers is Instead of theplantutilisingmultiple, One of theseautomatedsystems One of thelatesttechnologically- Tissue World Magazine |

May/June 2020 SANITATION ANDHYGIENE. IS EXPERIENCINGAGROWING DEMANDFORVARIOUS PRODUCTSTO MANAGE OF 4.2%DURING2017–2022,THEAFHTISSUEPRODUCTSMARKETSEGMENT PROJECTED TO REGISTERAGLOBAL COMPOUNDANNUAL GROWTH RATE (CAGR) Here is a rundown of its five-station process: doing the flap tucking at the loading station. case packer achieves itssmallfootprint by space. integration intoexisting lineswithlimited optional technology tosimplifyand settings runningright. may needtobeshutdown toget the settings, andinsomecasesthemachine and another30minutestotweak the minutes tomake thephysicalchangeover case packers totake anhourtoperform, 30 Changeover simplicity 2” to3”highcorrugated trays. fully integrates theinsertionof standard 5. 4. 3. 2. 1. The fully-automated,intermittent-motion This latestcase packer hasimplemented It isfairly typicalfor changeovers with Tray packingisanoptionaladd-on,but case andcompressed for sealing. Sealing Station–glueisappliedtothe and minorflapsare closed. – thecaseisloadedwithproduct, Case LoadingandFlapTucking Station formed. Case Former Station–thecaseis separated from thestack. Magazine Station–oneK.D.F. is packing. correlated andlifteduptothecasefor Packer Station–theproduct is Uninterrupted production: tissue plantsdependoneffectivematerialflowprocesses Boothe, senioraccount manager, Edson. for tissue manufacturers. translates toabetterreturn oninvestment provides trulysmarterautomation,which automated casepackers for AfH products optimize labourhours. Thislatestentryof throughput, afford maximumflexibility and smooth operation tostreamline product system canruncasesizes to6”x6”. to large casesizes 24”x24”,the cases perminutethroughput. Inaddition and varied-sized cases,toppingoutat15 capabilities andflexibility tohandlelarge- C casepacker hasthechangeover parts are inplace. machine recognizes thattheproper change change partsare RFIDencoded, sothatthe make several partchanges, aswell, butthe package size. Theoperator isrequired to over toready itselffor theselected will automaticallychange themachine for aspecificcarton format. Servo-motors menu thepre-loaded recipe configuration effected by selectingfrom adropdown touchscreen HMI,thechangeover canbe under 15minutes.Through themachine’s speed upthechangeover process to This articlewas writtenfor TWM bySteve The entire systemisintegrated intoone Smarter casepackingof AfH products Despite itscompact size, the3600

EI ExitIssues ARE TISSUE’S GREEN CREDENTIALS ARE GOOD AS ITS MAJOR COMPANIES CLAIM? A report has claimed that the tissue industry is not as environmentally friendly as it used to be. For TWM, freelance journalist Simon Creasey put the claim to UK-based tissue mills for their response. *This article was written for TWM pre-Covid-19

ast year a Manchester, UK based not- “So it appears to me that businesses for-profit environmental magazine are offering increasingly luxurious toilet EI asked the question – how green is the paper, which requires more virgin pulp, in tissue industry? order to increase sales. This leaves issues LThe report, in Ethical Consumer, claimed of sustainability side-lined. It does appear that in 2019 major toilet tissue brands were that consumers are demanding softer, more using less recycled paper than they were luxury toilet roll, so a change in consumer back in 2011. preferences is needed too, but I believe the The magazine argued that growing primary responsibility lies with the [tissue] consumer demand for softer products like businesses.” luxury four-ply and quilted toilet paper was The report – which makes use of multiple fuelling the use of virgin pulp. It mainly sources including Greenpeace, climate used global tissue giant Kimberly-Clark (K- and sustainability activists, and the EU C) as an example, stating that the company Commission and Parliament – states that had actually reduced the use of recycled it “takes the line that toilet paper made Simon Creasey fibres in some of its products over the last using virgin wood pulp, even if FSC certified, Freelance journalist few years. cannot be considered a sustainable product. The report’s author Alex Crumbie says the It is hard to justify using virgin wood pulp to market appears to be dominated by luxury make a product that is, by definition, to be paper products which “appear to depend on immediately disposed of. virgin pulp,” and that while brands “appear This is especially the case when there are to be using” recycled materials “we should “more sustainable” options, and especially be using as much as we can” for toilet paper when recycled pulp is “easily available.” products in particular. Among other issues it raises to varying “Even if the amount of recycled content extent are the debate over how suitable FSC had increased 1% or 2%, the point would certification is for bamboo “as many of the remain that this is still not enough,” says issues regarding the sustainability of tree Crumbie. “It is absurd to be using virgin forests do not apply;” the use of Bisphenol pulp when recycled pulp does the job. Even A “found in a number of recycled paper if use of virgin pulp does make toilet paper products such as toilet paper;” and pulp softer, recycled paper is more than sufficient alternatives such as bamboo, wheat straw and is far more sustainable.” and sugarcane bagasse. He argues that the decline in eco toilet The report – Beyond the bottom line – is paper ranges and the reduced use of mainly UK-centric. Areas it fails to give recycled content “appears to have come extensive coverage to include the complex at the same time” that toilet paper is global structure of sourcing recyclable becoming ever more luxurious. produce as paper use declines, and the major programmes for forest replanting, plastic reduction, and energy sustainability undertaken by major companies. While offering criticism, the report THE REPORT – BEYOND THE BOTTOM LINE – IS MAINLY UK-CENTRIC. acknowledges that global tissue giant AREAS IT FAILS TO GIVE EXTENSIVE COVERAGE TO INCLUDE THE COMPLEX K-C “has been taking steps to invest in alternative fibres such as bamboo and aims GLOBAL STRUCTURE OF SOURCING RECYCLABLE PRODUCE AS PAPER USE to reduce the use of wood fibre sourced from DECLINES, AND THE MAJOR PROGRAMMES FOR FOREST REPLANTING, natural forests by 50% by 2025. In 2017, 76.5% of the fibre it used was virgin fibre.” PLASTIC REDUCTION, AND ENERGY SUSTAINABILITY UNDERTAKEN BY Approached for TWM, K-C replied: MAJOR COMPANIES. “Kimberly-Clark and Andrex® in the UK have

40 Tissue World Magazine | May/June 2020 EI been, and will continue to be, a leader in

sustainability across all our products and ExitIssues packaging – from the materials we use, how MANY TISSUE MANUFACTURERS IN THE UK AS WELL AS GLOBALLY HAVE we manufacture, to how customers use and dispose of our products. All our innovation MADE SIMILARLY BOLD COMMITMENTS, WHICH IS WHY THE LIKES OF AYAZ in sustainability is currently focused on TEJANI, MANAGING DIRECTOR AT LEICESTER TISSUE COMPANY, BELIEVES the Andrex brand as a whole rather than THE SECTOR IS “VERY MINDFUL” OF ITS ENVIRONMENTAL FOOTPRINT. supporting a specific ‘green’ product. Andrex products are 100% FSC certified something on this in the near future. We are the consumer attributes required – namely and our commitment to responsible always exploring and testing alternatives to softness,” explains Millward. “It is also fibre sourcing and forest protection has plastic packaging, focussing on renewable one of the few categories where the been recognised by the WWF, with K-C material sources as much as possible and consumer will not pay a premium for an awarded the highest rating in its UK-Timber we hope to share more information on this environmental halo. As a result, the number Scorecard. in the coming months. So we’re absolutely of de-inking manufacturing facilities has “At the same time, we are also continuing not standing still and there are several decreased and supply of raw material is to evaluate alternative sources of fibres exciting initiatives in the pipeline.” difficult to get hold of.” including the use of post-consumer Also not standing still is Northwood The industry will no doubt continue recycled fibres. Our tissue manufacturing Paper, which continuously strives to reduce to receive negative publicity if it fails remains a priority in our sustainability its environmental impact. The company, to reverse the decline in the amount of strategy, and last year, our K-C UK tissue which is a supplier of AfH tissue products, recycled fibre being used in paper products. mills delivered zero waste to landfill, a 27% recycles more than 55,000 tonnes of tissue- Abbosh readily admits there is always more reduction of greenhouse gases and 18% making grades per annum. that could be done by businesses operating reduction of water usage.” “If anything our usage of recycled fibre in the tissue paper sector, as is true of In 2018 K-C’s recycled fibre figure has increased and we continue to head in businesses in other industry sectors. “rose to 25.2% versus the reported 2017 that direction,” says Paul Fecher, chairman “We are a mature category, which at number,” and it committed to making at Northwood Paper. “We are also closing times can make evolving and making the further inroads in the future. the loop and recovering as much as possible necessary changes a little harder due Many tissue manufacturers in the UK as or our own waste material.” the scale of the business,” says Abbosh. well as globally have made similarly bold He adds that a major issue his company “However, at the younger end of the commitments, which is why the likes of and others like it encounter on a daily basis household towel and tissue consumer Ayaz Tejani, managing director at Leicester is the ability to source enough suitable used spectrum, we’re seeing an audience Tissue Company, believes the sector is “very material. “The electronic age means the which is rightly demanding businesses be mindful” of its environmental footprint and availability of material is not as plentiful as more sustainable in the production and is taking “all measures in manufacturing” to it used to be in yesteryear and the quality is manufacture of their products. reduce its carbon outlay. also perhaps inferior,” says Fecher. “We like to think of our business as Frank Millward, sales and marketing The supply issue is being further having to be able to provide convenience director at Leicester Tissue Company, says: exacerbated by the ‘war on plastic’, which with a conscience, especially with towels “This is an ongoing mission and we are accelerated in 2019. The company is and tissues. If we don’t, we run the risk of doing what we can. On a product front, we seeing competition for waste material shrinking as a category.” are leading the way to champion paper rise considerably as FMCG brands look to He adds that tissue sector companies wrap packaging versus plastic on our switch from plastic into recycled paper- need to lead on this from the front while branded range. The consumer instinctively based materials. Then there’s the emerging simultaneously keeping an open eye on understands the difference and its impact legislative issues around the globe to what else is happening around the world on land fill and the planet. We are also consider. that the industry can take learnings from. trialing bamboo paper in both toilet roll and “The whole recycled market has been Over the coming years it’s anticipated kitchen towel offerings.” put into a bit of a tailspin because of that fewer waste material will be generated Oday Abbosh, founder and chief government interference in China and now because younger generations are printing executive of Better All Round and owner it is happening in other countries as well,” less and they’re not consuming as many of Consuma, says that in the last year the says Fecher. “Even in Holland where they newspapers or magazines as previous company has reduced in excess of 10 are limiting the amount of waste they are generations, so the amount of fibre entering tonnes of plastic across the range of facial importing and allowing to be utilised. So it the waste stream that is suitable for tissues it produces for Tesco and it has also is a much bigger topic than simply saying recycling will significantly reduce. introduced pulp bases to replace the plastic ‘they’re (tissue companies) using less And with more FMCG brands expected ones its Ora household towel product sits recycled fibre than they used to.” to move from plastic packaging to paper- on. It’s a view shared by Millward, who based materials over the next few years, “We have set ourselves a target of being concedes that some major brands are using this will put an even greater strain on zero waste to landfill, which is more than less recycled material than they did back in the current waste paper supply chain, just about recycling,” says Abbosh. “We’re in 2011, but there are many reasons behind making it even harder for manufacturers the process of developing product offerings this shift. of tissue products to source sufficient which look at how we can repurpose our “Recycled grade products – particularly material to keep offering recycled products manufacturing waste and hope to announce in the toilet roll sector – struggle to meet in the future.

Tissue World Magazine | May/June 2020 41 T T T T T T

INHOUSE 3 T

issueorldoiai inoissueorldo

Portfolio Organised by Official Magazine

TW_A4_Miami_NOV_v001_approved.indd 1 27/03/20 14:18 EVENTS CALENDAR

17-19 JUNE 2020 Paper Vietnam HCMC www.paper-vietnam.com/

10-12 AUGUST 2020 Latin America Conf. Sao Paulo events.risiinfo.com/latin-american-conference

5-7 SEPTEMBER 2020 Paper Middle East Cairo www.papermideast.com/

9-11 SEPTEMBER 2020 Tissue & Paper Bangkok Bangkok www.tissueworld.com/bangkok/

9-11 SEPTEMBER 2020 Latam Paper Mexico City www.latampaper.com/

15-17 SEPTEMBER 2020 Tissue World Istanbul Istanbul www.tissueworld.com/istanbul

15-17 SEPTEMBER 2020 Label Expo America Rosemont www.labelexpo-americas.com/welcome-labelexpo-americas

22-26 SEPTEMBER 2020 CIDPEX Nanjing http://en.cnhpia.org

6-8 OCTOBER 2020 ABTCP Sao Paulo www.abtcp.org.br/

5-7 OCTOBER 2020 NA Conference San Diego events.risiinfo.com/north-american-conference/

14-16 OCTOBER 2020 MIAC Lucca www.miac.info/en/

20-23 OCTOBER 2020 INDEX Geneva Geneva www.indexnonwovens.com/en/

8-10 NOVEMBER 2020 Paper & Tissue Asia Lahore http://www.papertissueasia.com/

11-13 NOVEMBER 2020 Tissue World Miami Miami www.tissueworld.com/miami/en-us

2-3 DECEMBER 2020 PLMA International Amsterdam www.plmainternational.com/

16-18 MARCH 2021 TW Düsseldorf Düsseldorf www.tissueworld.com/dusseldorf

21-24 SEPTEMBER 2021 Label Expo Europe Brussels www.labelexpo-europe.com/labelexpo-europe

20-30 APRIL 2021 Drupa Düsseldorf www.drupa.com/

25-28 APRIL 2021 Papercon 2021 Atlanta papercon.org/

27-29 APRIL 2021 Pulpaper 2021 Helsinki pulpaper.messukeskus.com/

Tissue World Magazine | May/June 2020 43 Advertiser Index & Subscription ADVERTISER'S INDEX

Buckman 15 www.buckman.com Solar Turbines 39 www.solarturbines.com Convermat IFC www.convermat.com Tissue World Bangkok 33 www.tissueworld.com Fabio Perini 18 www.fabioperini.com Tissue World Miami 42 www.tissueworld.com Futura-Plusline IBC www.futuraconverting.com Toscotec 2 www.toscotec.com Gambini 11 www.gambinispa.com Trebor OBC www.trebor.com Infinity Machine & Engineering Corp. 27 www.infinitymec.com Voith GmbH & Co. 22 www.voith.com

Tissue World magazine is free to qualified members of the tissue industry. Please complete and return the form below to express your interest to subscribe for the magazine. If you’re not a tissue industry SUBSCRIPTION professional you may purchase an annual subscription for USD 400 for 6 issues. Please contact the Tissue World team at [email protected] to enquire about subscription. Send to Informa Markets – Singapore, 10 Kallang Avenue, #09-16 Aperia Tower 2, Singapore 339510 Fax: +65 6233 6633 or subscribe online www.tissueworldmagazine.com/subscribe.php Mr Ms What is your company's primary field of business (tick all that apply): A. INTEGRATED TISSUE PRODUCTS MAKER Primary business is making paper and producing: First Name* Consumer (At Home) Finished Away-from-Home (AFH) Finished products Last Name* Other Tissue Grades, please specify: B. JUMBO ROLL SUPPLIER Job Title* Jumbo Roll Maker, for sale to converters C. TISSUE CONVERTER Primary business is making paper and producing: Company* Consumer Finished products Away from Home (AFH) Finished products Address* Other Tissue Grades, please specify: D. RETAILING AND DISTRIBUTION Postal Code* Retailer Broker Distributor E. SUPPLIER TO THE TISSUE INDUSTRY Please check all that apply: Address 2 Paper making machinery Fabrics, felts, clothing Drying technologies Process automation and control City* Doctors and creping blades Deinking Printing machinery and supplies Inks, glues and dyes State* Embossing rolls Knives and blades Folders/interfolders Cores and coreboard Country* Transport and logistics Energy and Power Testing machines Engineering Telephone* Insurance and financial services Used machinery Dust control and air treatment systems Fax* Fibers: Market pulp and recycled fibe Chemicals and chemical technologies Email* Converting machinery and supplies Dispensers and dispenser systems Company Website* Media, press, information services Wrapping/Packaging equipment and supplies SIGNATURE Water treatment, environmental and effluent control Stock preparation, fiber processing and pulping equipment DATE Consulting services. Please specify field: Other (please specify):

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44 Tissue World Magazine | May/June 2020