Paper Industry Challenges and Opportunities Charles P. Klass Klass Associates Inc. Redington Beach, FL C. P. Klass Background ¾ Western Michigan University – BS in Pulp and Paper Technology ¾ Pace University – MBA in Marketing Management ¾ 50 years in paper industry and TAPPI z z z Process engineer and production management Paper chemicals and equipment marketing 22 years as a consultant ¾ Adjunct Professor at Western Michigan Summary of Presentation ¾ Overall trends in printing, writing and packaging papers ¾ Digital printing an impact on paper industry ¾ Trends in packaging z z RFID tags Recyclable barrier coatings ¾ New materials and technologies z z Nanoparticle biopolymer latex Zeolite pigments Overall Trends ¾ Becoming a global market ¾ Increased brightness in both uncoated and coated papers ¾ Neutral/alkaline papermaking ¾ Calcium carbonate replacing kaolin clay ¾ Blurring distinction between coated and uncoated Uncoated Free Sheet Papers ¾ Higher brightness and whiteness z Increased OBA use ¾ Neutral/alkaline sized ¾ Must be multifunctional z z z z Offset Laser toner bond and xerography Ink jet printability Opacity ¾ Internal bond and surface strength critical Uncoated Free Sheet Process & Quality Trends ¾ High filler levels - >18% PCC ¾ Surface sizing z z z Starch with good strength and film forming Synthetic surface size Cationic additive for ink jet ¾ Pigment addition to surface size z z Porosity control Ink receptivity Free Sheet Alternative ¾ Uses a combination of bleached kraft and mechanical pulp ¾ Light metered size press coating and soft nip calendering ¾ Multipurpose equivalent to uncoated free sheet office papers ¾ Brightness equivalent or higher ¾ Lower priced but better profit margin Film Coated Offset ¾ Made by metered size press coating and soft nip calendering on a highgroundwood content sheet ¾ Better quality and runnability than SCA in heatset offset ¾ Displacing both SCA and No. 5 LWC ¾ Growing market in inserts and cost conscious magazines Summary of Coated Paper Quality Trends Coated Board Quality Trends ¾ ¾ ¾ ¾ ¾ ¾ Increased brightness Increased smoothness Low pps10 Increased gloss Move toward a blue shade Need to develop digital printability z z Ink jet LEP Coated Offset Printing Papers ¾ Growth of heat set web offset z z Lighter weights - ULWC Blister and print-through concerns ¾ More colors ¾ More ink coverage and trapped areas z Increased mottle potential ¾ Finer line screens Offset Printing Papers Emerging Trend Stochastic Screening Stochastic Screening ¾ Paper surface quality implications z z z z Holdout critical Surface uniformity critical Requires excellent film former Pigmented surface size on uncoated papers ¾ Pigment choices z z Brazilian clays well suited Aragonite PCC well suited Flexo Printing ¾ Fastest growing impact printing process ¾ More colors ¾ Finer screens ¾ Need for open coating structure z z z Pigment choices Binder systems Synthetic rather than stearate lubricant Graphic Quality Linerboard Grade Spectrum High Performance *Kraft Liner *Coated SUS *Mottled White (Less bleached pulp on top) *Coated Recycled *White Top *Coated SBS *Bleached Liner (uncoated) Low Cost Low Print Quality High Print Quality High Cost New Coated Linerboard Positioning 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 Low Print Quality High Print Quality High Cost High Graphic Quality Corrugated Growth Patterns High Graphic Quality Corrugated Growth Beverage Carriers Existing High Graphic Quality Corrugated Upgrade from White Top/Mottled Upgrade from Brown Folding Cartons Microflute Corrugated ¾ Competes with coated multi-ply recycled paperboard z z Lighter weight ~35 – 40% Stronger ¾ Can be converted in regular folding carton machinery ¾ Requires coated surface for offset printing ¾ Lighter weight than regular linerboard Digital Printing of Corrugated ¾ Likely to grow rapidly over the next decade ¾ Fiber top linerboard not adequate ¾ Will require new coated linerboard grades ¾ Ink jet likely to be the dominant technology Ink Jet Printing Papers ¾ Market tiers ¾ Coated and uncoated ¾ Quality pyramid Ink Jet Papers Market Quality Cost Photo Quality Silica Coated GAP Market Potential Synthetic Surface Sized Plain Need for Dual Purpose Papers ¾ ¾ ¾ ¾ ¾ Driven by changes in direct mail and financial media Combination offset preprint with variable digital printing a single high-speed line Paper must provide high quality multi-color printing by both offset and digital No papers currently on the market meet this need Likely to be a high growth market Trend Toward Digital Printing ¾ Digital printing growing as a commercial printing method ¾ Driver is desire for customization and shorter press runs ¾ Digital printing eliminates prepress and make ready ¾ Will grow rapidly in direct mail, publications and packaging Global Printed and Imaged Pages 2010 2005 Conventional 92% Digital 8% 48 Trillion Pages Conventional 90% Digital 10% 54 Trillion Pages Digital page growth = 600 Billion pages in 5 years Digital Printing Trends ¾ Continuous ink jet will be the fastest growing area ¾ Prototype ink jet web press running at commercial speed and width – quality equivalent to offset ¾ Web ink jet will replace sheet-fed and web offset – likely to expand into newspaper and magazines ¾ Will require new grades of paper with cationic surface functionality RFID Tags ¾ ¾ Wal-Mart and other large retailers mandating that packages have RFID tags to automate logistics Requires inserting a chip in the package surface to be read by a scanner z z ¾ ¾ Chips are expensive Inserting the chip is cumbersome Research at WMU is developing economical print-on RFID tags as part of the regular packaging material printing process Extension into printed electronic circuits Recyclable Barrier Coating Drivers ¾ Cost of disposal ¾ Availability of OCC ¾ Environmental concerns ¾ Overseas regulations ¾ Concerns about fluorochemicals Drivers - Cost of Disposal and Availability of OCC ¾ Cost of disposal z z Tipping fees range from $40 to $160 per ton Need to segregate recyclable from nonrecyclable waste increases handling cost ¾ Availability of OCC z z About 20% of OCC goes to landfill or burning Mini-mills and export demand keep OCC supply tight Drivers - Environmental Concerns Recovery/Recycling ¾ Repulpability ¾ Biodegradability ¾ Minimal impact on reprocessing ¾ Energy recovery ¾ Low environmental impact ¾ Chlorine free Drivers - Concern about Use of Fluorochemicals ¾ Major food packagers and fast food chains looking for alternatives ¾ Concern about liability and litigation ¾ Paper mill concern about exposure to workers ¾ Concern extends to new fluorochemicals ¾ Search for alternative OGR treatments Wax Replacement in Corrugated ¾ A major opportunity for recyclable barrier coatings ¾ A lot of attempts over the past decade but no large scale commercialization ¾ Cost is still a major concern - wax is cheap! ¾ Separation and disposal cost is also a major concern Waxed Corrugated by Product 10% 5% 12% 49% 24% Produce Poultry Seafood Meat Other Waxed Corrugated Market Overview ¾ Market size about 1.5 million tons of containerboard ¾ Two methods of waxing z z Curtain coating: 12 - 15% wax content Cascade waxing: 35 - 50% wax content ¾ Upcharge for waxing z z Curtain coating $9 - $15/MSF Cascade waxing $24 - $31/MSF Waxed Corrugated Performance Requirements ¾ Curtain wax coated boxes: Retain 60% of original strength after 1 hour water soak ¾ Cascade waxed boxes: Retain 90% of original strength after 8 to 24 hour water soak ¾ Cold humid compression: Retain specified percentage of strength after exposure to 90% RH at 40°F (5°C) for 24 hours Waxed Corrugated Performance Requirements ¾ Cyclic humidity performance: Retain 80% of original strength after exposure to: z z z “Jungle conditions” 90% RH at 100°F (38°C) for 8 or 24 hours Followed by exposure for same period of time to: 50% RH at 72°F (22°C) Costs of Using Waxed Corrugated ¾ Higher cost boxes ¾ Cost of sorting at supermarket: $15 - $25 per ton ¾ Hauling cost and tipping fees: $55 - $130 per ton Benefits of Wax Replacement ¾ Reduce the amount of material in box designs - most coatings would add 4 - 5% to weight compared to 12 - 50% addition by waxing ¾ Reduce labor along the supply chain ¾ Better graphics and box appeal ¾ Reduced disposal cost ¾ Increased recycling Biopolymer Nanoparticle Latex Technology New properties from re-engineering biopolymers into nanoparticles 30 µm Size reduced 300-600x 200 nm Effective surface >200 m2/g (est.) e.g. Native Starch Granules ECOSPHERE® Biopolymer Nanoparticles Biopolymer Nanoparticle Dispersions Particle Size Measurements 10 nm 100 nm Biolatex Dry paper coat Starch granules PVAc SB latex Biolatex Range of emulsions 1000 nm 10,000 nm 100,000 nm 1 µm 10 µm 100 µm Hypothesized Structure of a Water-Swollen, Crosslinked Biopolymer Nanoparticle Water-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 Immobilization Particle Compaction Caused by Surface Tension Particle Deformation & Further Coalescence Consolidation Deformation & Coalescence Caused by: Surface Tension, Capillary Forces, and Adhesion at the Particle Interfaces Hypothesized Film Formation of Water-Swollen, Crosslinked Biopolymer Nanoparticles Free-Flowing Dispersion Aqueous dispersion of water-swollen biopolymer nanoparticles Drying/Compaction Gelling/ Immobilization Entanglement & insolubilizing at the particle interfaces Particle Deformation & Further Coalescence Consolidation with Partial Collapse Water liberates, but biopolymer cores 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. Emerging Biopolymer Nanoparticle Technology: ¾ Independent control of particle sizes and swell ratios ¾ Surface modifications: e.g., Carboxyl, amide, amine, amphoteric, quaternary ammonium, etc. ¾ Formation of hybrid products: e.g., Starch/protein hybrids, biopolymer/synthetic polymer hybrids, etc. Relative Comparisons of ECOSPHERE®, Starches, and Synthetic Latexes Properties of Paper Coatings Biolatex Starches Synthetic Latexes Ease of Formulation + - + Water Retention ++ + 0 High-Solids Coater Runnability + - + Dry Strength ++ - ++ Wet 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 Biolatex Benefits vs. Emulsion Polymer Latex Features Benefits Lower latex cost Significant annual savings Requires no cooking Energy and labor savings Renewable resource based (modified biopolymer) Price stability, not linked to rising petroleum prices, carbon neutral Substitute for latex binder Similar performance in coating colors Viscosity & ultra-high shear rheology = synthetic latex Simple adjustment of existing coating recipe – similar or better runnability Reduce rheological modifier Additional potential saving Available dry or liquid Freight savings & formulation flexibility Independent Analysis of Biobased Carbon Content Biolatex Biolatex® ECOSPHERE Analysis by Beta Analytic Inc, Miami, FL SBR Latex 100% SB Latex Control What are Zeolites? ¾ Crystalline hydrated aluminosilicates of alkali and alkaline earth metals ¾ Structure - interlocking tetrahedrons of SiO4 and AlO4 ¾ Ratio of Si and Al to O 1/2 ¾ Negatively charged with large internal “cages” to facilitate exchange with large cations and cationic molecules Zeolite Structure Zeolite Characteristics ¾ High degree of hydration ¾ Low density and large void volume when dehydrated ¾ Stability of structure when dehydrated ¾ Uniform molecular sized channels ¾ Ability to absorb gases and vapors ¾ Cation exchange properties Zeolites in Papermaking ¾ Historically used in Japan and Hungary as filler to improve z z Bulk Printability ¾ Low in brightness - not useful in USA ¾ Expensive synthetic zeolites are useful in ink jet coatings but cannot be dispersed at high solids or coated on machine ZOBrite Pigment ¾ Clinoptilolite purified and modified by a proprietary process ¾ Process works with only clinoptilolite zeolite from the ZO Resources reserve in west Texas ¾ Can make a product with 93 - 95% GE Brightness and good rheology ZOBrite Pigment Properties ¾ GE Brightness and Color z z z z GE Brightness L a b 93.5% 97.1 0.31 1.14 ¾ BET Surface Area 37.7 m2/g ZOBrite Pigment Properties ¾ Sedigraph Particle Size (%) - slurry at 50% solids z z z z z <10 μm <5 μm <2 μm <1 μm <0.5 μm 99.6 99.1 92.0 69.5 43.9 ¾ 325 mesh Residue ¾ Einlehner Abrasion 0.0014% 2.0 mg loss ZOBrite Pigment Slurry Properties ¾ Can be dispersed with either anionic or cationic dispersant ¾ Stable dispersions at 54% solids ¾ Viscosity at 50% Solids z z Brookfield @ 20 RPM 114 cPs Hercules at 1100 RPM 138 Kilodyne-cm • Apparent viscosity 24.0 cPs ZOBrite Coating Development ¾ Initial work targeted at ink jet and digital printing ¾ Objective: Economical alternative to silica that could be coated at higher solids on machine ¾ First formulated with polyvinyl alcohol z z CPVC = 1:1 No cracking or dusting at 14:1 pigment:binder ZOBrite Ink Jet Coating Development ¾ Drawdowns showed performance comparable to silica at 2:1 pigment:binder ¾ CLC runnability excellent at 2500 fpm and 40 - 45% coating solids z z Typical solids for silica 14 - 18% Engelhard DigitexTM solids 30 - 33% ¾ Rheology showed MSP coating feasible Other Implications from Ink Jet Coating Research ¾ Rapid drying time in ink jet prints and water-fastness -> could be applicable to direct post print flexo to prevent smudge ¾ Low abrasion -> minimize metal marking ¾ Could also benefit water-based gravure ¾ Evaluate dynamic contact angle with 10 parts ZOBrite in linerboard top coat Pigmented Size Press ¾ Pigmented size press trials at 2:1 ratio with ethylated starch z z z Good runnability No dusting Improved offset and ink jet printability Wet End Filler Evaluations ¾ Trials on pilot paper machine z z z Self retains at 2.5 to 4 time rate of PCC, GCC and filler clay Improved formation Potential for microparticulate silica replacement ¾ Higher tensile strength and stretch ¾ More open sheet ¾ Improved COF Reduction in Print Through ¾ Sheet filled with 100 pounds ZOBrite per ton (4.59% ash) showed no print through ¾ PCC, GCC and clay at 250 pounds per ton showed print through ¾ Performance of zeolite at 100 pounds per ton better than 200 pounds per ton calcined clay - which required retention aid Patents ¾ ¾ ¾ U.S. 6,679,973 - High Performance Purified Natural Zeolite Pigment for Papermaking and Paper Coating U.S. 6,616,748 - High Performance Purified Natural Zeolite Pigment for Papermaking and Paper Coating U.S. 7,201,826 – High Performance Natural Zeolite Microparticle Retention Aid for Papermaking Thank you for your attention!