Capital Argument$

A trademark of Paperitalo Publications

Published on the 15th of every month

August 2015

How to approach an expansion/upgrade Project

Part 2--Markets

Markets are everything when it comes to the pulp and paper industry, indeed any industry. If you do not have a market, you do not have a business.

Hopefully, before the engineers, that would be the readers of this newsletter, receive direction to start a project, someone with expertise in markets has done their homework. However, this is not always the case, for markets must be considered on many levels.

At the highest level, one decides to be in the newsprint, printing & writing, tissue, corrugated packaging, specialty packaging or some other markets. These sorts of matters are usually out of the engineer's control.

At the next level, one considers where the markets are located. For paper and paperboard are sold into markets that may not be close to you. The so-called market price is at the buyer's dock. Your mill receives "mill net" price which is that published price less shipping. If you are a great distance from the market and your competitor is closer, you lose.

At the next lower level, you must trim the market in which you are planning to participate. This is where the engineers can start to wave their arms more vigorously. This is an area to watch closely based on two sets of conditions:

1. You are re-purposing a machine that previously made a completely different grade.

2. You are entering a grade where the converting equipment or printing presses are undergoing a major change in width.

The engineers can usually influence these matters by a few inches. Sometimes a few inches can mean success or failure.

Finally, we get to basis weight and finish (read: coatings). Here, finally, the engineers can contribute greatly to the success of a project by fully understanding the market and where it is going.

Markets are critical. Contribute to succeeding in the markets with your project to the full capabilities you possess.

Engineering Manager of the Year, call for nominations

We are looking for an individual who has done an extraordinary project, one that almost defies belief. Its extraordinary features can be schedule, technology, cost or all three.

We have often gotten nominees that go something like this, "I nominate Joe because he has done a great job of running our engineering department for the last fifteen years." Quite frankly, we are not interested in such nominees.

However, if you know someone who has led a very exceptional project in the recent past (the last two or three years), we want to know about it. We want to honor them and hold them up as an example for Engineering Managers in every pulp and paper mill around the world.

Just send your nomination, with as much details as you can provide, to [email protected]. We will seriously consider it.

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Current Patent Activity is available here.

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Capital Arguments Engineering Manager of the Year
Hall of Fame

Since its inception, Capital Arguments has believed extraordinary projects are possible. They can be done safely, responsibly and offer a great advantage to their mills with lower capital costs and saved downtime. We established this award in 2008 to recognize those people and companies that follow this philosophy. This award is given once per year somewhere in the world. We honor our inductees permanently here.

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Ed Kersey--Engineering Manager of the Year 2011

Jim presents Ed with the Engineering Manager of the Year for 2011.

(L - R) Matt Nilsen, Jim Thompson, Ed Kersey and Wayne South. Nilsen is Account Manager and South is Business Development Manager for Kadant Black Clawson, underwriter of this year's award. Ed Managed the construction of the Pratt Industries mill in Shreveport, Louisiana which took 13 months from piling to paper on the reel. His reward? They made him mill manager!

Kadant Black Clawson was a major sponsor of the 2011 Award. Here, on the left, Peter Flynn, President of Kadant Black Clawson, receives the company's duplicate of Ed's Award from Steve Roush, Publisher and Editor, Paperitalo Publications.

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Not Awarded 2010

You have to be really good to get this award. We did not receive any qualifying nominations in 2010.

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Dean Abrams--Engineering Manager of the Year 2009

Now retired, Dean was an engineer at Corrugated Services, Forney, Texas, USA in the summer of 2009 when he completed his award winning project. Dean managed a team that installed a secondary headbox in 11 hours, 30 minutes, paper-to-paper. The experts had said it would take at least 3 days. In April 2010, we presented the award to Dean in the presence of a number of his colleagues.

Dean Abrams Award

Here is the award we presented to Dean:

Deans Plaque

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Mike Ahcan--Engineering Manager of the Year 2008

Mike works at the UPM Blandin Mill in Grand Rapids, Minnesota, USA. In 2008, the mill's sole effluent pipe, running outside a building, almost in the Mississippi River, was determined to be in a state of imminent collapse. The experts said it would take a week of total mill downtime to replace it. Additionally, there was a danger of leakage into the river. Mike and his team went to work and replaced the pipe without any downtime and with no spillage. We had a banquet in Grand Rapids for him in July 2009.

OpTest Official Solid Background

And here is Mike's award:

OpTest Official Solid Background

We normally accept nominations in the November-December time frame. They can be sent to [email protected] with "EMOY Nomination" in the subject line.

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Please write when we tickle your brain cells! Email [email protected]

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