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Management Side
Week of 21 May 2018: Energy Mistakes

Email Jim at jthompson@taii.com

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I have cautioned the readers of this column many times not to get carried away with the energy trend du jour. It can be fatal to your enterprise. At the same time, I have cautioned you to watch for politically driven energy initiatives from governments.

Being in industry for all the time that energy shortages and costs have been in the forefront, I have seen some really crazy expenditures, caused by companies and managers caught up in the hysteria of the day. We certainly need reliable energy sources to keep our enterprises operating in the present, but we must be careful in such times to do the best we can to perceive what may actually happen in the long run.

Many years ago, I saw lenders force a borrower to hedge natural gas prices in order to secure a loan. The borrower had no choice, but this little clause in the loan agreement likely cost millions of dollars before it could be flushed out of the system. This happened just before--but while we had hints of things to come--the arrival of fracking.

Many years before that, I worked at a facility which had built a fuel oil storage depot on a major river, about forty miles from our mill, when they thought they would not be able to procure enough oil for energy. I was around long enough to watch that be built and later watch it be dismantled. How many millions did that cost?

With the recent rise in gasoline prices, old fears about the cost of fuel seem to be returning. Recent newspaper articles talk of gas thieves returning to drain your automobile tank. The modern method of doing this is to drive a screwdriver into the tank, collect the results in a pan, and leave you with the necessity of replacing your gas tank.

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Jim Thompson is back again...with a new book on a taboo subject: the personalities in the pulp & paper industry. Jim has written in the past on many subjects based on his four plus decades in the worldwide pulp and paper industry. This new book is packed full of information valuable to the senior member of the industry as well as the recent entrant. A must for every pulp and paper library.

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The biggest mistake I have seen in this area in our industry was the decision many years ago to locate a mill near a power plant, for the cogeneration economies, while ignoring the surroundings. There was no place to sell the paper and no place for employees to live. While the mill is still operating, it has never, to my knowledge, lived up to its potential. But it has not been for the lack of economical energy!

At the retail level, California recently passed a bill mandating solar panels on new homes. California is a big enough and sunny enough market that this may affect electricity prices over an area far larger than only California. It will be interesting to see what this does to the electricity market.

As I always say, however, the best thing that can happen is to minimize using energy from any source. This keeps the "energy loop" as much under your control as possible. Of course, virgin pulp mills have done this for years--the energy produced in the recovery cycle has evolved to being more than enough to cover the pulp mill's needs. Some recycled mills have installed waste fuel boilers (I can think of three off the top of my head) that capture local waste streams and produce energy for their own use. I can think of another recycled mill that buys energy from a waste-to-steam producer within one mile.

When it comes to decision makers involved in energy decisions, you'll find in most companies these days personnel with enough experience to know what makes sense and what is nonsense in the long-term. Danger arises when such decisions are left to relative novices who think saving energy at all costs makes sense. In the last 45 years, we have learned that may not be a wise way to go.

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EMPLOYMENT OPPORTUNITIES:

* We are looking for a Production Shift Team Leader to maintain high standards, plus ensure safety policies and regulations for a company located close to Chicago's Midway Airport. If you are experienced team leader who has a four-year degree in an engineering/technical field (paper science degree preferred, and experience in recycled linerboard or corrugating medium paper mills is a plus), we are looking for someone like you! If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* A family owned and operated corrugated packaging solutions company in Illinois is looking for an experienced Maintenance Technician to maintain production and quality by ensuring operation of machinery and mechanical equipment. Relocation and other perks are available to the right candidate who is committed to working third shift. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* Are you an experienced Maintenance Mechanic and would like to work for a family owned and operated corrugated packaging solutions company that invests in the best equipment and technology? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* A leading company in the corrugated solutions packaging business is looking for a experienced Electrician. The right candidate will possess the following skills: electrical; hydraulic; automatic drives (basic component machines 122 to 440 volts). If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* An expanding company is looking for a Corporate Industrial Electro-Mechanical Engineer near Allentown, PA. Relocation is available. Do you have a storied list of unique electrical and mechanical engineering skills you're ready to take to the next level? Do you envision yourself in a corporate-level leadership role that your experience finally merits? And do you relish any opportunity to troubleshoot and solve real-time problems, all while designing and installing new services and systems that will not only ensure safety, but also turn a potentially hazardous work environment into a continuously thriving one? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* An expanding company is looking for hands-on Electro Mechanical Maintenance Techs in Conyers, Georgia. Preference will be given to candidates with higher education and additional certificates or training. You must be able to work any shift. Pay is negotiable with excellent perks and benefits. Relocation assistance is available to the right candidate. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* We are a large automation company that has a line of consistency transmitters, sample valves and sheet break detectors that are marketed through a rep. network. We are seeking someone with a strong background in consistency control to facilitate start-ups, provide troubleshooting and technical advice. The individual should have experience in all major types of consistency measurement technologies (blade, rotary, microwave and optical). Knowledge of sheet break detection technology is desirable as well. Willingness to travel to paper production facilities across the US is a must. Travel & Living Expenses to be reimbursed along with an agreed upon daily per diem rate. For more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

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