PaperPaper IndustryIndustry ChallengesChallenges andand OpportunitiesOpportunities

CharlesCharles P.P. KlassKlass KlassKlass AssociatesAssociates Inc.Inc. RedingtonRedington Beach,Beach, FLFL C.C. P.P. KlassKlass BackgroundBackground

¾¾ WesternWestern MichiganMichigan UniversityUniversity –– BSBS inin PulpPulp andand PaperPaper TechnologyTechnology ¾¾ PacePace UniversityUniversity –– MBAMBA inin MarketingMarketing ManagementManagement ¾¾ 5050 yearsyears inin paperpaper industryindustry andand TAPPITAPPI

z ProcessProcess engineerengineer andand productionproduction managementmanagement

z PaperPaper chemicalschemicals andand equipmentequipment marketingmarketing

z 2222 yearsyears asas aa consultantconsultant ¾¾ AdjunctAdjunct ProfessorProfessor atat WesternWestern MichiganMichigan SummarySummary ofof PresentationPresentation

¾¾ OverallOverall trendstrends inin ,printing, writingwriting andand packagingpackaging paperspapers ¾¾ DigitalDigital printingprinting anan impactimpact onon paperpaper industryindustry ¾¾ TrendsTrends inin packagingpackaging

z RFIDRFID tagstags

z RecyclableRecyclable barrierbarrier coatingscoatings ¾¾ NewNew materialsmaterials andand technologiestechnologies

z NanoparticleNanoparticle biopolymerbiopolymer latexlatex

z ZeoliteZeolite pigmentspigments OverallOverall TrendsTrends

¾¾ BecomingBecoming aa globalglobal marketmarket ¾¾ IncreasedIncreased brightnessbrightness inin bothboth uncoateduncoated andand coatedcoated paperspapers ¾¾ Neutral/alkalineNeutral/alkaline papermakingpapermaking ¾¾ CalciumCalcium carbonatecarbonate replacingreplacing kaolinkaolin clayclay ¾¾ BlurringBlurring distinctiondistinction betweenbetween coatedcoated andand uncoateduncoated UncoatedUncoated FreeFree SheetSheet PapersPapers

¾¾ HigherHigher brightnessbrightness andand whitenesswhiteness

z IncreasedIncreased OBAOBA useuse ¾¾ Neutral/alkalineNeutral/alkaline sizedsized ¾¾ MustMust bebe multifunctionalmultifunctional

z OffsetOffset

z LaserLaser tonertoner bondbond andand xerographyxerography

z InkInk jetjet printabilityprintability

z OpacityOpacity ¾¾ InternalInternal bondbond andand surfacesurface strengthstrength criticalcritical UncoatedUncoated FreeFree SheetSheet ProcessProcess && QualityQuality TrendsTrends

¾¾ HighHigh fillerfiller levelslevels -- >>18%18% PCCPCC ¾¾ SurfaceSurface sizingsizing

z StarchStarch withwith goodgood strengthstrength andand filmfilm formingforming

z SyntheticSynthetic surfacesurface sizesize

z CationicCationic additiveadditive forfor inkink jetjet ¾¾ PigmentPigment additionaddition toto surfacesurface sizesize

z PorosityPorosity controlcontrol

z InkInk receptivityreceptivity FreeFree SheetSheet AlternativeAlternative

¾¾ UsesUses aa combinationcombination ofof bleachedbleached kraftkraft andand mechanicalmechanical pulppulp ¾¾ LightLight meteredmetered sizesize presspress coatingcoating andand softsoft nipnip calenderingcalendering ¾¾ MultipurposeMultipurpose equivalentequivalent toto uncoateduncoated freefree sheetsheet officeoffice paperspapers ¾¾ BrightnessBrightness equivalentequivalent oror higherhigher ¾¾ LowerLower pricedpriced butbut betterbetter profitprofit marginmargin FilmFilm CoatedCoated OffsetOffset

¾¾ MadeMade byby meteredmetered sizesize presspress coatingcoating andand softsoft nipnip calenderingcalendering onon aa highhigh-- groundwoodgroundwood contentcontent sheetsheet ¾¾ BetterBetter qualityquality andand runnabilityrunnability thanthan SCASCA inin heatsetheatset offsetoffset ¾¾ DisplacingDisplacing bothboth SCASCA andand No.No. 55 LWCLWC ¾¾ GrowingGrowing marketmarket inin insertsinserts andand costcost consciousconscious magazinesmagazines SummarySummary ofof CoatedCoated PaperPaper QualityQuality TrendsTrends CoatedCoated BoardBoard QualityQuality TrendsTrends

¾ IncreasedIncreased brightnessbrightness ¾ IncreasedIncreased smoothnesssmoothness

¾ LowLow ppspps10 ¾ IncreasedIncreased glossgloss ¾ MoveMove towardtoward aa blueblue shadeshade ¾ NeedNeed toto developdevelop digitaldigital printabilityprintability

z Ink jet

z LEP CoatedCoated OffsetOffset PrintingPrinting PapersPapers

¾¾ GrowthGrowth ofof heatheat setset webweb offsetoffset

z LighterLighter weightsweights -- ULWCULWC

z BlisterBlister andand printprint--throughthrough concernsconcerns ¾¾ MoreMore colorscolors ¾¾ MoreMore inkink coveragecoverage andand trappedtrapped areasareas

z IncreasedIncreased mottlemottle potentialpotential ¾¾ FinerFiner lineline screensscreens OffsetOffset PrintingPrinting PapersPapers EmergingEmerging TrendTrend StochasticStochastic ScreeningScreening StochasticStochastic ScreeningScreening

¾¾ PaperPaper surfacesurface qualityquality implicationsimplications

z HoldoutHoldout criticalcritical

z SurfaceSurface uniformityuniformity criticalcritical

z RequiresRequires excellentexcellent filmfilm formerformer

z PigmentedPigmented surfacesurface sizesize onon uncoateduncoated paperspapers ¾¾ PigmentPigment choiceschoices

z BrazilianBrazilian claysclays wellwell suitedsuited

z AragoniteAragonite PCCPCC wellwell suitedsuited FlexoFlexo PrintingPrinting

¾¾ FastestFastest growinggrowing impactimpact printingprinting processprocess ¾¾ MoreMore colorscolors ¾¾ FinerFiner screensscreens ¾¾ NeedNeed forfor openopen coatingcoating structurestructure

z PigmentPigment choiceschoices

z BinderBinder systemssystems

z SyntheticSynthetic ratherrather thanthan stearatestearate lubricantlubricant GraphicGraphic QualityQuality LinerboardLinerboard GradeGrade SpectrumSpectrum High Performance *Kraft Liner *Coated SUS

*Mottled White (Less bleached on top) *Coated Recycled *White Top *Coated SBS

*Bleached Liner (uncoated) Low Cost High Print Quality Low Print Quality High Cost NewNew CoatedCoated LinerboardLinerboard PositioningPositioning High Performance *Kraft Liner New Coated Linerboard *Coated SUS

*Mottled White (Less bleached pulp on top) *Coated Recycled *White Top *Coated SBS

*Bleached Liner (uncoated) Low Cost High Print Quality Low Print Quality High Cost HighHigh GraphicGraphic QualityQuality CorrugatedCorrugated GrowthGrowth PatternsPatterns

High Graphic Quality Corrugated Growth

Existing High Graphic Beverage Folding Quality Corrugated Carriers

Upgrade from White Top/Mottled

Upgrade from Brown MicrofluteMicroflute CorrugatedCorrugated

¾¾ CompetesCompetes withwith coatedcoated multimulti--plyply recycledrecycled paperboardpaperboard

z LighterLighter weightweight ~35~35 –– 40%40%

z StrongerStronger ¾¾ CanCan bebe convertedconverted inin regularregular foldingfolding cartoncarton machinerymachinery ¾¾ RequiresRequires coatedcoated surfacesurface forfor offsetoffset printingprinting ¾¾ LighterLighter weightweight thanthan regularregular linerboardlinerboard DigitalDigital PrintingPrinting ofof CorrugatedCorrugated

¾¾ LikelyLikely toto growgrow rapidlyrapidly overover thethe nextnext decadedecade ¾¾ FiberFiber toptop linerboardlinerboard notnot adequateadequate ¾¾ WillWill requirerequire newnew coatedcoated linerboardlinerboard gradesgrades ¾¾ InkInk jetjet likelylikely toto bebe thethe dominantdominant technologytechnology InkInk JetJet PrintingPrinting PapersPapers

¾¾ MarketMarket tierstiers ¾¾ CoatedCoated andand uncoateduncoated ¾¾ QualityQuality pyramidpyramid InkInk JetJet PapersPapers MarketMarket

Quality Cost Photo Quality Silica Coated

GAP Market Potential

Synthetic Surface Sized Plain NeedNeed forfor DualDual PurposePurpose PapersPapers

¾ DrivenDriven byby changeschanges inin directdirect mailmail andand financialfinancial mediamedia ¾ CombinationCombination offsetoffset preprintpreprint withwith variablevariable digitaldigital printingprinting aa singlesingle highhigh--speedspeed lineline ¾ PaperPaper mustmust provideprovide highhigh qualityquality multimulti--colorcolor printingprinting byby bothboth offsetoffset andand digitaldigital ¾ NoNo paperspapers currentlycurrently onon thethe marketmarket meetmeet thisthis needneed ¾ LikelyLikely toto bebe aa highhigh growthgrowth marketmarket TrendTrend TowardToward DigitalDigital PrintingPrinting

¾ DigitalDigital printingprinting growinggrowing asas aa commercialcommercial printingprinting methodmethod ¾ DriverDriver isis desiredesire forfor customizationcustomization andand shortershorter presspress runsruns ¾ DigitalDigital printingprinting eliminateseliminates prepressprepress andand makemake readyready ¾ WillWill growgrow rapidlyrapidly inin directdirect mail,mail, publicationspublications andand packagingpackaging GlobalGlobal PrintedPrinted andand ImagedImaged PagesPages

2010 2005

Conventional 92% Digital 8% Conventional 90% Digital 10%

48 Trillion Pages 54 Trillion Pages

Digital growth = 600 Billion pages in 5 years DigitalDigital PrintingPrinting TrendsTrends

¾ ContinuousContinuous inkink jetjet willwill bebe thethe fastestfastest growinggrowing areaarea ¾ PrototypePrototype inkink jetjet webweb presspress runningrunning atat commercialcommercial speedspeed andand widthwidth –– qualityquality equivalentequivalent toto offsetoffset ¾ WebWeb inkink jetjet willwill replacereplace sheetsheet--fedfed andand webweb offsetoffset –– likelylikely toto expandexpand intointo newspapernewspaper andand magazinesmagazines ¾ WillWill requirerequire newnew gradesgrades ofof paperpaper withwith cationiccationic surfacesurface functionalityfunctionality RFIDRFID TagsTags

¾ WalWal--MartMart andand otherother largelarge retailersretailers mandatingmandating thatthat packagespackages havehave RFIDRFID tagstags toto automateautomate logisticslogistics ¾ RequiresRequires insertinginserting aa chipchip inin thethe packagepackage surfacesurface toto bebe readread byby aa scannerscanner z Chips are expensive z Inserting the chip is cumbersome ¾ ResearchResearch atat WMUWMU isis developingdeveloping economicaleconomical printprint--onon RFIDRFID tagstags asas partpart ofof thethe regularregular packagingpackaging materialmaterial printingprinting processprocess ¾ ExtensionExtension intointo printedprinted electronicelectronic circuitscircuits RecyclableRecyclable BarrierBarrier CoatingCoating DriversDrivers

¾¾ CostCost ofof disposaldisposal ¾¾ AvailabilityAvailability ofof OCCOCC ¾¾ EnvironmentalEnvironmental concernsconcerns ¾¾ OverseasOverseas regulationsregulations ¾¾ ConcernsConcerns aboutabout fluorochemicalsfluorochemicals DriversDrivers -- CostCost ofof DisposalDisposal andand AvailabilityAvailability ofof OCCOCC ¾¾ CostCost ofof disposaldisposal

z TippingTipping feesfees rangerange fromfrom $40$40 toto $160$160 perper tonton

z NeedNeed toto segregatesegregate recyclablerecyclable fromfrom nonnon-- recyclablerecyclable wastewaste increasesincreases handlinghandling costcost ¾¾ AvailabilityAvailability ofof OCCOCC

z AboutAbout 20%20% ofof OCCOCC goesgoes toto landfilllandfill oror burningburning

z MiniMini--millsmills andand exportexport demanddemand keepkeep OCCOCC supplysupply tighttight DriversDrivers -- EnvironmentalEnvironmental ConcernsConcerns Recovery/RecyclingRecovery/Recycling ¾¾ RepulpabilityRepulpability ¾¾ BiodegradabilityBiodegradability ¾¾ MinimalMinimal impactimpact onon reprocessingreprocessing ¾¾ EnergyEnergy recoveryrecovery ¾¾ LowLow environmentalenvironmental impactimpact ¾¾ ChlorineChlorine freefree DriversDrivers -- ConcernConcern aboutabout UseUse ofof FluorochemicalsFluorochemicals ¾¾ MajorMajor foodfood packagerspackagers andand fastfast foodfood chainschains lookinglooking forfor alternativesalternatives ¾¾ ConcernConcern aboutabout liabilityliability andand litigationlitigation ¾¾ PaperPaper millmill concernconcern aboutabout exposureexposure toto workersworkers ¾¾ ConcernConcern extendsextends toto newnew fluorochemicalsfluorochemicals ¾¾ SearchSearch forfor alternativealternative OGROGR treatmentstreatments WaxWax ReplacementReplacement inin CorrugatedCorrugated ¾¾ AA majormajor opportunityopportunity forfor recyclablerecyclable barrierbarrier coatingscoatings ¾¾ AA lotlot ofof attemptsattempts overover thethe pastpast decadedecade butbut nono largelarge scalescale commercializationcommercialization ¾¾ CostCost isis stillstill aa majormajor concernconcern -- waxwax isis cheap!cheap! ¾¾ SeparationSeparation andand disposaldisposal costcost isis alsoalso aa majormajor concernconcern WaxedWaxed CorrugatedCorrugated byby ProductProduct

5% 10%

12% 49%

24%

Produce Poultry Seafood Meat Other WaxedWaxed CorrugatedCorrugated MarketMarket OverviewOverview ¾¾ MarketMarket sizesize aboutabout 1.51.5 millionmillion tonstons ofof containerboardcontainerboard ¾¾ TwoTwo methodsmethods ofof waxingwaxing

z CurtainCurtain coating:coating: 1212 -- 15%15% waxwax contentcontent

z CascadeCascade waxing:waxing: 3535 -- 50%50% waxwax contentcontent ¾¾ UpchargeUpcharge forfor waxingwaxing

z CurtainCurtain coatingcoating $9$9 -- $15/MSF$15/MSF

z CascadeCascade waxingwaxing $24$24 -- $31/MSF$31/MSF WaxedWaxed CorrugatedCorrugated PerformancePerformance RequirementsRequirements ¾¾ CurtainCurtain waxwax coatedcoated boxes:boxes: RetainRetain 60%60% ofof originaloriginal strengthstrength afterafter 11 hourhour waterwater soaksoak ¾¾ CascadeCascade waxedwaxed boxes:boxes: RetainRetain 90%90% ofof originaloriginal strengthstrength afterafter 88 toto 2424 hourhour waterwater soaksoak ¾¾ ColdCold humidhumid compression:compression: RetainRetain specifiedspecified percentagepercentage ofof strengthstrength afterafter exposureexposure toto 90%90% RHRH atat 4040°°FF (5(5°°C)C) forfor 2424 hourshours WaxedWaxed CorrugatedCorrugated PerformancePerformance RequirementsRequirements ¾¾ CyclicCyclic humidityhumidity performance:performance: RetainRetain 80%80% ofof originaloriginal strengthstrength afterafter exposureexposure to:to:

z ““JungleJungle conditionsconditions”” 90%90% RHRH atat 100100°°FF (38(38°°C)C) forfor 88 oror 2424 hourshours

z FollowedFollowed byby exposureexposure forfor samesame periodperiod ofof timetime to:to:

z 50%50% RHRH atat 7272°°FF (22(22°°C)C) CostsCosts ofof UsingUsing WaxedWaxed CorrugatedCorrugated ¾¾ HigherHigher costcost boxesboxes ¾¾ CostCost ofof sortingsorting atat supermarket:supermarket: $15$15 -- $25$25 perper tonton ¾¾ HaulingHauling costcost andand tippingtipping fees:fees: $55$55 -- $130$130 perper tonton BenefitsBenefits ofof WaxWax ReplacementReplacement

¾¾ ReduceReduce thethe amountamount ofof materialmaterial inin boxbox designsdesigns -- mostmost coatingscoatings wouldwould addadd 44 -- 5%5% toto weightweight comparedcompared toto 1212 -- 50%50% additionaddition byby waxingwaxing ¾¾ ReduceReduce laborlabor alongalong thethe supplysupply chainchain ¾¾ BetterBetter graphicsgraphics andand boxbox appealappeal ¾¾ ReducedReduced disposaldisposal costcost ¾¾ IncreasedIncreased recyclingrecycling BiopolymerBiopolymer NanoparticleNanoparticle LatexLatex TechnologyTechnology NewNew propertiesproperties fromfrom rere--engineeringengineering biopolymersbiopolymers intointo nanoparticlesnanoparticles

Size reduced 300-600x 30 µm

200 nm

Effective surface >200 m2/g (est.) e.g. Native Granules ECOSPHERE® Biopolymer Nanoparticles BiopolymerBiopolymer NanoparticleNanoparticle DispersionsDispersions

Particle Size Measurements

Biolatex Range of emulsions PVAc SB latex Starch granules

10 nm 100 nm 1000 nm 10,000 nm 100,000 nm Biolatex 1 µm 10 µm 100 µm Dry paper coat HypothesizedHypothesized StructureStructure ofof aa WaterWater--Swollen,Swollen, CrosslinkedCrosslinked BiopolymerBiopolymer NanoparticleNanoparticle -Swollen, Crosslinked Biopolymer Core: V(Core)

Bound and Adsorbed Biopolymer Shell: V(Shell)

Effective volume factor, f, of biopolymer nanoparticles (relative viscosity method) is: f = [V(Core) + V(Shell)]/V(Biopolymer) = 6.67 Assuming V(Shell) = 2 x V(Biopolymer), then swell ratio is: V(Core-swollen)/V(Core-unswollen) = 4.67 for ECOSPHERE® V(Core-swollen)/V(Core-unswollen) = 1.00 for S/B Latex Control The Film Formation of Latex Particles: A Guide for the Hypothesized Film Formation of Biolatex

Free-Flowing Dispersion Aqueous Dispersion of Latex Particles

Drying/Compaction

Particle Compaction Caused Immobilization by Surface Tension

Particle Deformation & Further Coalescence

Deformation & Coalescence Caused by: Consolidation Surface Tension, Capillary Forces, and Adhesion at the Particle Interfaces Hypothesized Film Formation of Water-Swollen, Crosslinked Biopolymer Nanoparticles

Free-Flowing Aqueous dispersion of water-swollen Dispersion biopolymer nanoparticles

Drying/Compaction

Gelling/ Entanglement & insolubilizing Immobilization at the particle interfaces

Particle Deformation & Further Coalescence

Consolidation Water liberates, but biopolymer cores with Partial Collapse do not collapse and form “nano-cellular foam-like” film, yielding air voids

Stiff water-swollen crosslinked biopolymer nanoparticles do not collapse much during film formation. Consequently, film shrinkage is much less than starch and more like S/B latex, yielding better gloss and improved opacity under optimized calendering conditions. EmergingEmerging BiopolymerBiopolymer NanoparticleNanoparticle Technology:Technology:

¾¾IndependentIndependent controlcontrol ofof particleparticle sizessizes andand swellswell ratiosratios ¾¾SurfaceSurface modifications:modifications: e.g.,e.g., Carboxyl,Carboxyl, amide,amide, amine,amine, amphoteric,amphoteric, quaternaryquaternary ammonium,ammonium, etc.etc. ¾¾FormationFormation ofof hybridhybrid products:products: e.g.,e.g., Starch/proteinStarch/protein hybrids,hybrids, biopolymer/syntheticbiopolymer/synthetic polymerpolymer hybrids,hybrids, etc.etc. Relative Comparisons of ECOSPHERE®, , and Synthetic Latexes Properties of Paper Biolatex Starches Synthetic Coatings Latexes Ease of Formulation + - + Water Retention ++ + 0 High-Solids Coater + - + Runnability Dry Strength ++ - ++ + - ++ Stiffness ++ + 0 Coating and Print Gloss + - + Brightness w/o & w/OBA + & ++ 0 & ++ + & 0 Whiteness w/o & w/OBA + & ++ 0 & ++ + & 0 Opacity + - + Printability + 0 +

Relative Scores Based on Paper Coating Trials BiolatexBiolatex BenefitsBenefits vs.vs. EmulsionEmulsion PolymerPolymer LatexLatex

Features Benefits Lower latex cost Significant annual savings Requires no cooking Energy and labor savings Renewable resource based Price stability, not linked to rising (modified biopolymer) petroleum prices, neutral Substitute for latex binder Similar performance in coating colors Viscosity & ultra-high shear Simple adjustment of existing coating rheology = synthetic latex recipe – similar or better runnability Reduce rheological modifier Additional potential saving Available dry or liquid Freight savings & formulation flexibility IndependentIndependent AnalysisAnalysis ofof BiobasedBiobased CarbonCarbon ContentContent

Biolatex ® BiolatexECOSPHERE 100%SBR SB Latex Latex Control

Analysis by Beta Analytic Inc, Miami, FL WhatWhat areare Zeolites?Zeolites?

¾¾ CrystallineCrystalline hydratedhydrated aluminosilicatesaluminosilicates ofof alkalialkali andand alkalinealkaline earthearth metalsmetals ¾¾ StructureStructure -- interlockinginterlocking tetrahedronstetrahedrons ofof

SiOSiO4 andand AlOAlO4 ¾¾ RatioRatio ofof SiSi andand AlAl toto OO 1/21/2 ¾¾ NegativelyNegatively chargedcharged withwith largelarge internalinternal ““cagescages”” toto facilitatefacilitate exchangeexchange withwith largelarge cationscations andand cationiccationic moleculesmolecules ZeoliteZeolite StructureStructure ZeoliteZeolite CharacteristicsCharacteristics

¾¾ HighHigh degreedegree ofof hydrationhydration ¾¾ LowLow densitydensity andand largelarge voidvoid volumevolume whenwhen dehydrateddehydrated ¾¾ StabilityStability ofof structurestructure whenwhen dehydrateddehydrated ¾¾ UniformUniform molecularmolecular sizedsized channelschannels ¾¾ AbilityAbility toto absorbabsorb gasesgases andand vaporsvapors ¾¾ CationCation exchangeexchange propertiesproperties ZeolitesZeolites inin PapermakingPapermaking

¾¾ HistoricallyHistorically usedused inin JapanJapan andand HungaryHungary asas fillerfiller toto improveimprove

z BulkBulk

z PrintabilityPrintability ¾¾ LowLow inin brightnessbrightness -- notnot usefuluseful inin USAUSA ¾¾ ExpensiveExpensive syntheticsynthetic zeoliteszeolites areare usefuluseful inin inkink jetjet coatingscoatings butbut cannotcannot bebe disperseddispersed atat highhigh solidssolids oror coatedcoated onon machinemachine ZOBriteZOBrite PigmentPigment

¾¾ ClinoptiloliteClinoptilolite purifiedpurified andand modifiedmodified byby aa proprietaryproprietary processprocess ¾¾ ProcessProcess worksworks withwith onlyonly clinoptiloliteclinoptilolite zeolitezeolite fromfrom thethe ZOZO ResourcesResources reservereserve inin westwest TexasTexas ¾¾ CanCan makemake aa productproduct withwith 9393 -- 95%95% GEGE BrightnessBrightness andand goodgood rheologyrheology ZOBriteZOBrite PigmentPigment PropertiesProperties

¾¾ GEGE BrightnessBrightness andand ColorColor

z GEGE BrightnessBrightness 93.5%93.5%

z LL 97.197.1

z aa 0.310.31

z bb 1.141.14 ¾¾ BETBET SurfaceSurface AreaArea37.737.7 mm2/g/g ZOBriteZOBrite PigmentPigment PropertiesProperties

¾¾ SedigraphSedigraph ParticleParticle SizeSize (%)(%) -- slurryslurry atat 50%50% solidssolids

z <10<10 μμmm 99.699.6

z <5<5 μμmm 99.199.1

z <2<2 μμmm 92.092.0

z <1<1 μμmm 69.569.5

z <0.5<0.5 μμmm 43.943.9 ¾¾ 325325 meshmesh ResidueResidue 0.0014%0.0014% ¾¾ EinlehnerEinlehner AbrasionAbrasion 2.02.0 mgmg lossloss ZOBriteZOBrite PigmentPigment SlurrySlurry PropertiesProperties ¾¾ CanCan bebe disperseddispersed withwith eithereither anionicanionic oror cationiccationic dispersantdispersant ¾¾ StableStable dispersionsdispersions atat 54%54% solidssolids ¾¾ ViscosityViscosity atat 50%50% SolidsSolids

z BrookfieldBrookfield @@ 2020 RPMRPM 114114 cPscPs

z HerculesHercules atat 11001100 RPMRPM 138138 KilodyneKilodyne--cmcm •• ApparentApparent viscosityviscosity 24.024.0 cPscPs ZOBriteZOBrite CoatingCoating DevelopmentDevelopment

¾¾ InitialInitial workwork targetedtargeted atat inkink jetjet andand digitaldigital printingprinting ¾¾ Objective:Objective: EconomicalEconomical alternativealternative toto silicasilica thatthat couldcould bebe coatedcoated atat higherhigher solidssolids onon machinemachine ¾¾ FirstFirst formulatedformulated withwith polyvinylpolyvinyl alcoholalcohol

z CPVCCPVC == 1:11:1

z NoNo crackingcracking oror dustingdusting atat 14:114:1 pigment:binderpigment:binder ZOBriteZOBrite InkInk JetJet CoatingCoating DevelopmentDevelopment ¾¾ DrawdownsDrawdowns showedshowed performanceperformance comparablecomparable toto silicasilica atat 2:12:1 pigment:binderpigment:binder ¾¾ CLCCLC runnabilityrunnability excellentexcellent atat 25002500 fpmfpm andand 4040 -- 45%45% coatingcoating solidssolids

z TypicalTypical solidssolids forfor silicasilica 1414 -- 18%18% TM z EngelhardEngelhard DigitexDigitex solidssolids 3030 -- 33%33% ¾¾ RheologyRheology showedshowed MSPMSP coatingcoating feasiblefeasible OtherOther ImplicationsImplications fromfrom InkInk JetJet CoatingCoating ResearchResearch

¾¾ RapidRapid dryingdrying timetime inin inkink jetjet printsprints andand waterwater--fastnessfastness -->> couldcould bebe applicableapplicable toto directdirect postpost printprint flexoflexo toto preventprevent smudgesmudge ¾¾ LowLow abrasionabrasion -->> minimizeminimize metalmetal markingmarking ¾¾ CouldCould alsoalso benefitbenefit waterwater--basedbased gravuregravure ¾¾ EvaluateEvaluate dynamicdynamic contactcontact angleangle withwith 1010 partsparts ZOBriteZOBrite inin linerboardlinerboard toptop coatcoat PigmentedPigmented SizeSize PressPress

¾¾ PigmentedPigmented sizesize presspress trialstrials atat 2:12:1 ratioratio withwith ethylatedethylated starchstarch

z GoodGood runnabilityrunnability

z NoNo dustingdusting

z ImprovedImproved offsetoffset andand inkink jetjet printabilityprintability WetWet EndEnd FillerFiller EvaluationsEvaluations

¾¾ TrialsTrials onon pilotpilot paperpaper machinemachine

z SelfSelf retainsretains atat 2.52.5 toto 44 timetime raterate ofof PCC,PCC, GCCGCC andand fillerfiller clayclay

z ImprovedImproved formationformation

z PotentialPotential forfor microparticulatemicroparticulate silicasilica replacementreplacement ¾¾ HigherHigher tensiletensile strengthstrength andand stretchstretch ¾¾ MoreMore openopen sheetsheet ¾¾ ImprovedImproved COFCOF ReductionReduction inin PrintPrint ThroughThrough

¾¾ SheetSheet filledfilled withwith 100100 poundspounds ZOBriteZOBrite perper tonton (4.59%(4.59% ash)ash) showedshowed nono printprint throughthrough ¾¾ PCC,PCC, GCCGCC andand clayclay atat 250250 poundspounds perper tonton showedshowed printprint throughthrough ¾¾ PerformancePerformance ofof zeolitezeolite atat 100100 poundspounds perper tonton betterbetter thanthan 200200 poundspounds perper tonton calcinedcalcined clayclay -- whichwhich requiredrequired retentionretention aidaid PatentsPatents

¾ U.S.U.S. 6,679,9736,679,973 -- HighHigh PerformancePerformance PurifiedPurified NaturalNatural ZeoliteZeolite PigmentPigment forfor PapermakingPapermaking andand PaperPaper CoatingCoating ¾ U.S.U.S. 6,616,7486,616,748 -- HighHigh PerformancePerformance PurifiedPurified NaturalNatural ZeoliteZeolite PigmentPigment forfor PapermakingPapermaking andand PaperPaper CoatingCoating ¾ U.S.U.S. 7,201,8267,201,826 –– HighHigh PerformancePerformance NaturalNatural ZeoliteZeolite MicroparticleMicroparticle RetentionRetention AidAid forfor PapermakingPapermaking ThankThank youyou forfor youryour attention!attention!