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TAPPI/PIMA Student Summit MeetingJanuary 17-19, 2009

Larry N. Montague, TAPPI President

Kick Off

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Welcome to 12th Student Summit!

Our thanks and recognition go out to the members of the planning committee:

Proserfina Bennett, University of MaineMike Brown, Honeywell

Andy Easley, AbitibiBowaterEric Eisert, GAF MaterialsScott Frasca, Rohm Haas

Yolanda Hawkes, RockTennBruce Hohensee, Ashland

Bob Kinstrey, JacobsJacquelyn McNutt, CPBIS

Jennifer MeadorAlbert Moore, Buckman Labs

Miranda Shope, AbitibiBowaterFran Walsh, Kimberly Clark

TAPPI StaffJohn Harrison

David BellApryl Alexander

Welcome

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AbitibiBowaterBuckman

ChemStoneDixie PIMA

Empire States TAPPIGeorgia Tech

Gulf States TAPPIHercules

International PaperKimberly-Clark

Lakes States TAPPIMinnesota TAPPI

New PageOhio Local Section TAPPI

OMNOVAPacific Coast TAPPI

RockTennSinclair Group

Southeast TAPPI

A great BIG THANK YOU to our sponsors…

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You are in for a treat:

• State of the Industry – Jaquelyn McNutt & Bob Kinstrey

• Sustainability and Eco-Confusion - Bruce Hohensee & Eric Fletty

• The Importance of Industry Networking – Eric Fletty (How to get lucky in a bar.)

• Engineering Competition – Bruce Hohensee

• New Topics in Printing, Coating, & Nanotechnologies – Chuck Klass

• Getting the Right Job – Yolanda Hawkes & Bruce Hohensee

• Transition from School to Work – Miranda Shope

• Lunch & Recruitment Trade Fair

• Scavenger Hunt

• Low Country Boil

• International Paper Mill Tour

• Navel Air station Museum Tour

• Knowledge & Networking For Life – Priceless

This Weekend’s Schedule

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Even in these tough economic times you can find some positive points to ponder:

• You will not need to spend any time recording interest income onyour tax returns this year.

• Home Safe sales increased by 30% in 2008 over 2007.• One car company recorded record earnings in 2008. They also

opened up 15 new car dealerships. The base price of their car was $200,000. (Lamborghini)

• Automobile repair shops are reporting increases in business.• Alcohol sales are up.• Lottery ticket sales have increased this past year.• Shoe Repair shops are reporting record sales.• If you still have a house you will probably get a better interest rate.• Bailout no longer has a negative stigma associated with it.• The election ads are finally over!

One extra… TAPPI reported Black Ink for the first time in 11 years!!!!

2008 Top Ten Silver Lining List

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Today

The PIMA acquisition is now complete. Our new management Division is in place. One price for both! ($150 value)

TAPPI Journal is now a member benefit. This should help with international and domestic membership. ($125 value)

Approximately 10,000 TAPPI Members Worldwide (THE LARGEST IN THE WORLD)Volunteer Structure including:• Board of Directors• Divisions

Numerous Committees/Sub-committees• Local Sections • Student Chapters 27 listed (with 3 outside North America & one in the works

in China) CBU should have one the newest one this year.

TAPPI Foundation supporting students and awards. Our Divisions have over $30,000 in scholarships available annually for TAPPI Student members.

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TAPPI’s Divisions target specific segments of the global paper &

packaging industry.

Each division and its corresponding member groups work to share knowledge and

provide solutions for the industry through a variety of products,

services, and opportunities

• Coating & Graphic Arts• Corrugated Packaging• Engineering (includes

Environmental Working Group)• Nonwovens• Paper & Board• PIMA*• PLACE• PP&Q• Process Control• Pulp Manufacture

Divisions

*TAPPI’s new management division.

Not just Pulp & Paper.

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TAPPI's Local Sections involve members from almost every part of the

United States.

The sections, which are organized geographically, hold meetings, sponsor

mill tours, programs, and workshops tailored to their needs.

They allow professionals (primarily mill & packaging employees and

regional suppliers) to focus on specific topics that may be unique to their respective geographical area, and

develop a network of local industry contacts.

• Pacific-1929• Lake States-1930• Ohio-1935• Empire State-1938• Maine-New Hampshire-1940

(merged with Northeast PIMA)• Chicago-1946• Southeastern-1952• Virginia-Carolina-1957• Gulf Coast-1958• Southwest-1966• Minneapolis-1967

Local Sections

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Sampling of the groups we frequently work with

• We manage the technical, management, & supplier associations in the Paper Industry. (TAPPI, PIMA, ASPI, Couch Pit University)

• We participate in (AF&PA) Agenda 2020. (Mark Watkins, Phil Jones, TAPPI Board Members) & Larry Montague.

• We work with many other industry and government associations. (CPBIS, USDA, DOT, DOE, FPL, IPST, FTA, FPA, AICC AIMCAL, INDA, ANSI and many others. (PPSA, STLE, NIA*)

• We work with the academic world for training (NPT2, PPERA)

*(Currently in discussions.)

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Sister Associations

• ABPO – Associação Brasileira do Papelão Ondulado• ABTCP - Associação Brasileira Técnica de Celulose e

Papel• ACCCSA - Asociación de Corrugadores del Caribe,

Centro y Sur America• ACOTEPAC - Asociación Colombiana de Técnicos de la

Industria de Pulpa • AICC- Association of Independent Corrugated Converters• AF&PA - American Forest & Paper Association• APPITA - Australian Pulp & Paper Industry Technical

Association• ASPI—the Association of Suppliers to the Paper Industry• ATCP - Asociación Técnica de La Celulosa y Papel• ATICELCA - The Technical Association of the Italian

Pulp and Paper Industry• ATIP - France• Center for Paper Business and Industry Studies• CTAPI - China Technical Association of Paper Industry• EuCePa - European Liaison Committee For Pulp And

Paper• FEFCO - European Federation of Corrugated Board

Manufacturers• INDA - Association of the Nonwoven Fabrics Industry• IPE - The Technical Association of the Spanish Paper

Industry• IPPTA - Indian Pulp and Paper Technical Association• Japan TAPPI - Japan Technical Association of the Pulp &

Paper Industry

• KTAPPI - Korea Technical Association of the Pulp & Paper Industry

• NCASI - National Council for Air & Steam Improvement Inc.

• OZEPA - Austrian Association of Pulp & Paper Chemists and Technicians

• PAPTAC - The Pulp and Paper Technical Association of Canada

• PI - Finnish Paper Engineer's Association• PIMA - Paper Industry Management Association• PITA - Paper Industry Technical Association• PTF - The Technical Association of the Norwegian Pulp and

Paper Industry• Pulp & Paper Safety Association• SPCI - The Swedish Association of Pulp and Paper

Engineers• SPP - Association of the Polish Papermakers• SPPC - Federal of Pulp and Paper Industry of Slovak

Republic• TAPPIP - Technical Association of the Pulp & Paper

Industry of the Philippines• TAPPSA - Technical Association of the Pulp & Paper

Industry of Southern Africa • TECNICELPA - Portugal Technical Association of the Pulp

& Paper Industry• TTAPPI - Taiwan Forestry Research Institute• Zellcheming - German Pulp and Paper Chemists &

Engineers Association

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TAPPI Staff (Partial, some were actually working.)

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Members

Chairman

President(Montague)

Operations(Fletty)

Corrugated Division

(Ledbetter)CPD,

P&P Division's)(Springmier)Papermakers

CoatingSRW

Tech ProgramCoordinator

OPEN)Nonwovens

PLACE

Member GroupCoordinator

(Roman)Webmaster

Web StructureNewsletters

Press (Marcellus)

Press/Pubs Mkt

Press/PubsCoordinator(Hightower)

Production, FF, ASPI (interim)

CI (interim)Electronic Pubs

(Patrick)Newsletters

Web/Premium Content

Tech Program Coordinator

(Rice)EPE

PAPERCON

Corporate Relations &Marketing

(Bell)

CommunicationsDirector

(Bottiglieri)PR, TJ

Web EditorialCI (new)

Memb ServicesMgr

(MadelineSmith)DatabaseBrightkeyMemb ops

Director Int’l Ops

(Rawlins)Intl Development

Event Mgmt.

Biz Dev Director(Cornell)Training

Short CoursesExhibit, sponsor

Sales, PIMA,TAPPI Board

Events Manager

(Alexander)

Administrative& Finance(Williams)

Office Manager(Stiede)

HR AdminFacility

Web TasksReception

Acctg Specialist(Vacant)

Acctg Admin

International Membership,Foundation,

Events(Harrison)

TAPPI Organization ChartUpdated: 12-2-08

PT-EventMarketing(Lapin)

DIL, Nano,Coating (interim)

PT-ASPI PIMA Support

Etc.

(Walker)

PT- Assistant(Ellsworth)

PT-Admim(James)

Agendas & Minutes

Event Asst.

PT-Admin(Trimmer)

SponsorshipFulfillment

CFO(Fiveash)

PT-Events Manager(Robie)

PT-StandardsAwards

Manager(Bohanan)

20 FTE & 7 PTE

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•Approximately 10% of U.S. & 15% of Canadian production have been lost already in this decade.

•R&D jobs have been outsourced outside North America.

•The U.S. has become the Urban Forest for China.–Footnote; Inflation in China ran 8% for the first 5 months of this year. Gasoline is up 16%, China’s currency has strengthened by 20% against the dollar since 2005, The labor pool is drying up as poor provinces get richer and soak up workers. Some manufacturers are reporting a 75% increase in costs since 2006. “The beginning of Chinese driven inflation.”

•The new buzzwords are now RFID, Bio-refinery, Nanotechnology, Sustainability, and LEAN manufacturing.

•There are new names to old paper companies, such as New Page, Verso, Apollo, Brookfield Asset Management, Altivity, PaperWorks, Inc., KOCH Industries, Aldabra 2, acquired Boise from Madison Dearborn.

•The baby boomer retirement “tsunami” is overtaking the industry.

•Now more than ever we are required to hit the ground running and to wear several hats (while running, of course!)

The 2000s (The New Millennium)

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Emerging Trends & Developments

BioEnergy/Refinery Use of wood and non-wood biomass feedstocks to produce biofuels

and bioproduct streamsWeyerhaeuser & Chevron formed Catchlight Energy, LLC

FuelsEthanolBiodieselSynthesis GasCo-firing

BioproductsFiber for PaperBioplasticsSpecialty ChemicalsFood and Animal Feed

TAPPI has a New Bio-Refinery Committee!

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Emerging Trends & Developments

Climate Control/Sustainability

Pulp and paper mills have a relatively small carbon footprint, but can lead the way for other industries in the continuing use of low CO2 fuels, raw material source tracking, and via the supply of biofuels. In addition, packaging and converters are feeling the pressure to prove chain of custody and reduce the amount of packaging used.

• Look for new climate control legislation in the U.S. this year• Expect more certification pressures, including carbon footprinting• Sustainable operations will become more critical • Wal-Mart Scorecard• Chinese exports are likely to become more expensive• U.S. companies will bring manufacturing back to the U.S.

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Emerging Trends & Developments

• Nanotechnology—Reshaping the structure and basic economics of paper and board (could lead to fibreless paper)

• Digital Printing—Revolutionizing the application of paper (leading to all-new coating and surface technologies)

• Fiber Supply—Breakthroughs in genome mapping by Oak Ridge Nat’l Labs and others are opening new frontiers, including possible eucalyptus plantation developments in North America

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Emerging Trends & Developments

• Laser labeling- the imaging solution is comprised of color change pigment reacting with low power laser light for direct marketing on corrugated boxes.

• TV Screens - printed on paper.

• Glue alternatives -Glue alternatives for corrugated containers are being explored due to the increasing demand for corn as an alternative fuel source

• Portability in packaging -such as combined snack and drink in one product and increased demand for freshness requires greater barrier properties

• Medical Packaging -Record keeping prescription packaging; report is sent electronically when the pill is taken

• Next Generation Counterterrorism and Military wipes for decontamination of chemical warfare agents and Toxic Chemicals. (Fiberteet developed and Texas Tech)

• Bio-Detection Papers -Change colors when they detect viruses and air born pathogens (Air filters, suits clothing backpacks etc.

Developed during 2007-2008 calendar years!

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Where are Ph.D. Engineers Coming from?

Nearly 60% of engineering Ph.D. degrees awarded each year in the United States are earned by foreign nationals.Bob Compton Creator of the documentary Two Million Minutes released on February 25, 2008.

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Where in the World are Engineers Coming from?

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Japan did not respond.

China graduates more in two months than the U.S. graduates in a year.

Wow…

USA176 China

1205

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Why Paper? Why Now?

Where do you want to live?

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The U.S. Paper Industry –Size

Today• Employees more that 1 million people across the

U.S. – and is a top 10 manufacturer in over 40 states

• About 400 pulp, paper and board mills– Producing 170,000 tons of pulp, paper and paperboard

products• Accounts for 6% of GNP (Gross National

Product)– Equal to automotive and plastic industries

• Value of all U.S. sales: >$200 Billion

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Employment

What does this mean to you?Opportunities!

This industry has been around for 1,904 years. (Invented in China in 105 AD)

•More than 40 states in the US have Paper mills.

•402 Active Pulp, Paper or Board Mills in the U.S. alone.

•3000 skilled jobs per year are opening up due to retirements.

•Actually More: Does not include flexible or corrugated packaging or folding carton plants.

•In the next 13 months 27% of ALL engineers in the U.S. will be eligible for retirement.

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New Positions

•New names for old positions are now within our industry:

•Sr. VP of Sustainability in Packaging.

•Talent Acquisition Manager

•Bio Fuels Manager

•Fiber Supply Manager

•Sustainability Manager

•Manager of Corporate Control and External Reporting

•Electrical and Instrumentation Superintendant

•Tree Plantation Manager

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A Green Industry

Our Industry was Green and sustainable before it was cool.•Forestry, paper & packaging are the most sustainable industries in existence according to Price Waterhouse Coopers. •For every tree logged in managed forests, three to four are replanted.•The industry has eight representatives in the UN’s list of the world’s 100 most sustainable companies. (More than any other industry.)•Reading a newspaper consumes 20% less carbon than reading news online. (NAPM)

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TAPPI and its Local Sections sponsor Student Chapters located on college campuses with curricula relevant to the paper and packaging industry.

Student Chapters offer students an opportunity to meet their peers, interact with future employers and industry veterans, tour various facilities, and contribute to

various programs.

Student Chapters

Photo from 2008 TAPPI Student Summit Engineering Competition

The next one: January 17-19, 2009 Destin, FL.

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On August 13, 2008, 21 people attended TAPPI’s first TAW Recruitment Summit to determine best recruiting practices for the paper schools as well as the industry at large. The attendees included Human Resource Directors from paper producers and suppliers, college recruiters and college professors from

the PPERA schools.

The main action items from this meeting:•TAPPI will serve as the platform for these recruiting efforts.

•TAPPI will create a brochure and DVD for the forest products industry and the schools that serve it.•TAPPI will promote the industry and help to enhance the “image” of our industry.

•TAPPI will help identify barriers to recruitment to help fill the voids of the retirement tsunami.•TAPPI will serve as the platform for information to attract student to the paper & packaging schools.

•TAPPI will serve as the platform for companies who provide co-ops and internships.

Recruitment Summit Action Item Report

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Recruitment Program Funding (Part of the materials will come from this summit, don’t forget to smile)

•Each participating school and company will provide a one time amount of $2,500 to help with the set up costs of the brochure, DVD, and website.

•Each participating school and company will be listed under a special section of TAPPI’s website with a direct link to their website.

•Each participating school or company will be listed on the DVD and brochure as a sponsor of this Recruitment Program.

•Each School or Company will be allowed to list any co-op or internships on this special website page.

•Our intention is to provide this program for a minimum of 3 years. (TAPPI will incur costs associated with updating the information on the website during this period.)

Recruitment Summit Action Plan Funding

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What About Attendance Trends?

2008 VS 2007 EVENTS ATTENDANCE

285 353

925

107 88 133

954

3043

231406

1034

139 124 141

1076

3151

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200230024002500260027002800290030003100320033003400

PLACE EPE Corr Expo KROS SRW Nano PaperCon08* TOTALATTENDEES

FOR ALLEVENTS

EVENTS

NUM

BER

OF

ATTE

NDEE

S

FY07FY08

Added 3 together for the FY07 Numbers

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Speaking of StandardsAnnual Site Licenses vary by the number of employees per location:

Over 15K = $12,000

5K-14,999 = $7,000

1K - 4,999 = $3,000

< 1,000 = $1,300

Standards

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Access to Membership

• Only available to TAPPI members• Search by name, company, or location

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Access to Employment Career Center

• Post up to 3 unique profiles for FREE! • Automated Job Search Agents work for you

24/7• Make your resume available to all prospective

employers

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• As a student ($35/year)

– Student chapters– Student membership

• After graduation– 1st year on the job at student rate

($35/yr)

– Young Professional ($119/yr)membership, reduced dues until age 30

– During your Career ??? ($174/yr)

Student, FY, & YP Membership Opportunities

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The Industry Needs You as a Member!

2007-2008 Annual Membership Investment (US)*Professional $174

Young Professional 29 & under $119Individual Patron $500-$1,500

Sustaining Company-$2,500Affiliate Member (Libraries & Subscription Agencies) $355

Student & 1st year on job $35Retired $92

Local Section Memberships vary by regionA large portion of the membership is tax deductible.

Anniversary Date*

350.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

1

Netw ork

Info via events

Info via w ebsite

Business New s

Paper360

TAPPI Journal

Discounts on TAPPI Pubs

Discounts on TAPPI events

Join a Division/committee

Meet potential customers

Find new suppliers

Serve in leadership roles

Eligible for industry aw ards

Standards/TIPS

Enhance my status

Contribute to programs thathelp the industryAff inity programs

Why Do People Join TAPPI?

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Why the Paper & Packaging Industry?

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Have a Great Weekend!

Thanks for your attention.

Any Questions?