"Shut Down"
Note: Emails are organized in the order received, with first received at the top.
I feel fortunate. All the years I worked for GP Corporate Engineering, I used to feel bad that I worked on relatively few paper, especially tissue and towel, projects. I did do dozens and dozens of Power and Recovery projects. Now as a private consultant, I have done one new Recovery Boiler for a mill, but I am working on my 2nd, 3rd, and 4th [next week] power project for the utilities industry. I am not alone. I constantly meet individuals who learned boilers while working for paper companies. The power industry is very busy, electricity demand is down, some units are idled, but the owners are not sitting on their heels, they are moving forward.
Larry Wells
Atlanta, Georgia
USA
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I agree with your ideas on mill closure, but have a couple of points to add
One great advantage in rejuvenating an old site is that environmental and related permits are normally still valid, or are relatively easy to reactivate. I shudder to think how long a greenfield kraft mill would take to permit in some parts of the US and Canada today.
An additional negative in the "newbies" who come to town offering to buy and restart the mill (often with employee investment), usually with taxpayer contributions, is that many just want to get their fingers into the taxpayers money. I am always suspicious of people from outside the industry who think thy can run a mill profitably when the long term owners cannot.
In case you had not seen it, announcement of another mill closure is attached. I suspect the fact that the US linerboard mills have had the black liquor tax subsidy, which drove prices down, with the possibility of more subsidy to come, has contributed to Canadian woes. By my count, we are down to 36 kraft mills in Canada from 50 several years ago. Canada has partially matched the US BL subsidy, showing that we are forced to follow US stupidities in some cases.
Neil McCubben
Foster, Quebec
Canada
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Neil:
Just last week I was on a panel with a scientist who has done lots of work on cellulosic ethanol in conjunction with the refinery industry. He said they have no interest in using old pulp mill sites because pulp mills have such a bad public relations image they would just as soon start afresh and try to call them something else. I guess one could say that is another hidden "legacy cost."
Jim
***
"Businesses close because they cannot spin the invoice printer faster than they spin the check printer." Just became one of my favorite quotes..
Bottom line... it's still the bottom line...
Enjoy your insights
Richard Coburn
Florida
USA
***
Jim,
It was nice to see you last week. We all appreciate your support of our engineering school, and especially the PCE department.
... The insight shown here, and in your Nip Impressions , is quite useful for me as I convey a perspective to our engineering students that will begin their careers in the paper industry. While many academics and managers are quick to zig or zag under the existing political and economic climate, our students need clear thinking as they prepare themselves to be constructively productive citizens, that are part of the solution. We continue to make 75-80 million tons of product, and are facing an imminent staffing crisis as the engineering workforce retires. This represents a tremendous opportunity for the graduates of paper schools. This is the source of my optimism and enthusiasm for PSE programs, and also my hesitation for marching off behind the pied piper of untested and unsupported (commercially) technologies.
I will continue to enjoy your work and opinions, although I may just lurk unnoticed in the back of the crowd.
Best Regards,
Steve Keller
Associate Professor
Miami University
Oxford, Ohio
USA
***
Jim;
I've been enjoying your weekly column for several years now. I took early retirement last week, and would like to continue receiving it at my personal e-mail...
My office email address is likely already terminated!
I have particularly enjoyed your columns on innovation. There are pockets of innovation in the industry - the technical & specialty paper mill from which I just retired has a very strong product development program that develops ~x% of the annual volume as new products on a yearly basis. We chose not to talk about it, that's all!
Keep up the good work!
Fred Munro
Canada
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