SCA Tissue North America continues to move through a period of change with a recent announcement that all of the company’s manufacturing, converting and shipping operations will soon be consolidated to its office in Neenah, Wis.

Hopefully, the new developments will harmonize SCA’s operations and result in improved production, a benefit that may unite SCA and pass value on to distributors, SCA president and CEO Lee M. Bingham predicts.

“The consolidation of all these key functions into the one facility will streamline the company’s operations and result in synergies we weren’t able to achieve before,” said Bingham.

Currently, the facility in Neenah serves as a customer service center. Nearby Menasha, Wis., houses the information technology office, and the regional sales and marketing offices are located in San Ramon, Calif., and Atlanta. These offices will close and the Neenah office expand to accommodate them all by June 2002.

SCA Tissue is a major supplier to the Away-From-Home tissue market in North America with brand names including Park AvenueUltra, Coronet, Main Street, Second Nature and Tork.

Earlier this year, SCA (Svenska Cellulosa Aktiebolaget) announced that it had acquired Georgia-Pacific’s Away-From-Home (AFH) tissue operations. The acquisition propelled SCA to the position of the third largest manufacturer in the AFH tissue market.

With the purchase of the Georgia-Pacific market sector, SCA obtained three plants that were formerly part of Wisconsin Tissue: the facilities were used for manufacturing, converting and shipping.

Before the merger, Bingham was a senior executive with Georgia-Pacific for 12 years. He was the force behind Georgia-Pacific’s acquisition of Wisconsin Tissue in 1999, and spent 18 months completing the merger. He has acknowledged that the wisdom he gained from the merger is what will make the partnership between SCA and Georgia-Pacific go smoothly.

“I have a lot of experience in integrating companies, just having been through putting together Wisconsin Tissue and Georgia-Pacific. I headed up that effort,” Bingham said. “What I learned is still fresh in my mind.”

When SCA decided that Georgia-Pacific was worth pursuing, it obviously felt that Bingham’s leadership was worth pursuing as well, and he was appointed the new president of SCA.

Now Bingham’s mettle is being tested again as he continues to navigate through the turbulence of consolidation. Because of Georgia-Pacific’s vast resources, SCA’s facilities in Menasha, Atlanta and San Ramon could not retain their value to the company.

The relocation dates are December 31, 2001 for San Ramon; January 31, 2002 for Menasha; and June 2002 for the Atlanta office. According to SCA, most employees in those offices have been offered their current jobs in Neenah.

Cindy Walter, executive administrative assistant in San Ramon, confirmed that SCA had offered employees new positions, and said that a few had visited the new facilities in Neenah.

Distributors will have to wait and see if SCA’s recent developments truly do streamline operations and allow SCA Tissue North America to work out of Neenah smoothly. As with any larger merger, various functions take time to organize, but the end result, according to Bingham, promises to be worth it.

“It’s good for the company and good for the community,” said Bingham. “I’m really looking forward to having our entire staff under one roof.”

—Alex Runner

News Makers

Triple S, Billerica, Mass., recently announced the appointment of Easterday Janitorial Supply Co., Los Angeles, as a Triple S member dealer. The new partnership will combine the benefits of SSS brand programs with the service and expertise offered by Easterday.

The Vacuum Cleaner Manufacturers Association (VCMA), announced that industry sales of full-sized household vacuum cleaners in the second quarter of this year exceeded the 4 million unit mark for only the second time. However, sales were down 6.7 percent from the 2000 second quarter, a record year at 4,557,825 units.

Hoover, North Canton, Ohio, has created a rating system that enables shoppers to compare Hoover upright vacuums. The system is exclusive to Hoover uprights and is largely based on the American Society of Testing and Materials (ASTM) Standard F608 for cleaning effectiveness.

Chase Products Co., Broadview, Ill., has added R.J. Schinner Co., Inc. as a new wholesaler. The New Berlin, Wis., firm, headed by Robert J. Schinner Sr., has warehousing sites in Wisconsin, Minnesota, and Ohio. Chase’s aerosol cleaners, insecticides, paints and other products will be distributed throughout the northern Midwest.

Katy Industries, Englewood, Colo., parent company of the Katy Maintenance Group (KMG), recently announced the completion of its recapitalization transaction with Kohlberg & Co (K&C). An affiliate of K & C invested $70 million in Katy in the form of preferred stock.

Pro-Team, Boise, Idaho, recently was recognized on MSNBC’s “The Champions of Industry,” hosted by Pat Summerall. The series showcases companies in today’s global marketplace based on the following factors: leadership, innovation, size, growth, new products/patents, employee benefits and safety records. Participation in “Champions of Industry” is by invitation only.

The Environmental Protection Agency has developed a new resource that will help companies sell environmentally preferable products to the federal market. The resource is titled, “Selling Environmental Products to the Government: Your Map to the Federal Marketplace.”

Weiler, Cresco, Pa., has announced that after 16 years as a member of the Weiler family of products, Flat Brushes, a supplier of brushes and cleaning tools to the jan/san industry, will now do business under the Weiler Corp. name. Weiler is a manufacturer of power brushes, abrasives and maintenance products.

Senator Christopher Bond (R-MO) introduced legislation, S.1046, that, if passed, will provide superfund liability relief to small businesses that contribute minimal amounts of hazardous substances to a site.The Senate legislation would provide an exemption for small businesses that contribute less than 110 gallons of liquid waste or 200 pounds of solid waste.

EPA Denies Petitions Seeking Disclosure of Inerts

In a decision that clearly sided with industry, the United States Environmental Protection Agency (EPA) recently informed the Northwest Coalition for Alternatives to Pesticides (NCAP) and the attorney general’s office of the state of New York that it had denied their respective petitions seeking disclosure of inert ingredients on product labels.

Inert ingredients are those that are often marked as “other” on labels. NCAP and other consumer groups opposed the nondisclosure, arguing people have a right to know what chemicals are present in all products.

The International Sanitary Supply Association (ISSA), and other cleaning/maintenance supply organizations have long opposed a regulation that would force manufacturers to reveal trade secrets about their products, saying that such a ruling would be unreasonably burdensome upon business, and that it would mean disclosing confidential proprietary information. If labels are mandated to reveal all ingredients within their products, a company’s competitive position could be jeopardized.

At the same time, the EPA had sought to provide regulations that would better protect consumers. However, conflict arose among officials over whether or not a regulation should be mandatory or voluntary.

Because of division over that issue, the EPA will not require manufacturers to provide disclosed labeling of inert ingredients.

In a statement, the EPA said that it “lacks the authority to grant the specific relief requested” and that trade information is considered “privileged.”

Distributor/Manufacturer Relationships are Suffering, Research Says

According to a recent study done by The Industrial Performance Group Inc., the level of communication between manufacturers and distributors has declined during the past four years.

In addition to evidence of poor communication, the report states that the level of commitment and cooperation in manufacturer/distributor working relationships has also declined during the past four years. The Industrial Performance Group claims that “82 percent of manufacturers and 92 percent of distributors report that their sales performance and profitability are being negatively impacted by problems in working relationships.”

The report concluded that the biggest area of concern for manufacturers is the level of commitment that distributors have to products and promotional programs. On the other side, distributors said that their No. 1 concern is inconsistent management of territories by manufacturers.

The Industrial Performance Group, a consulting firm in Northfield, Ill., that helps improve relationships between distributors and manufacturers, concluded that manufacturers and distributors must be more focused on their goals in order for their relationships to be successful. “Goals are important because they establish the fundamental purpose of the working relationship.”

The study, “Report Card Update,” and much of its research is a follow-up to the 1997 “Report Card On Manufacturer-Distributor Relationships.”

U.S. DOL Moves Forward on Ergonomics Law

In an attempt to put theory into action this month, the U.S. Department of Labor (DOL) will begin to streamline a number of divergent opinions and propose ergonomics legislation.

“We care about safe and healthy workplaces,” said secretary of labor Elaine Chao in the first of three national public forums created to get feedback from industry, labor and medical leaders. “We want to find a way to prevent ergonomics injuries that will survive the expected torrent of criticism, reviews, legislation and congressional processes.”

Just before leaving office, President Clinton passed sweeping reforms that created benefits for workers who suffer from ergonomic injuries.

However, President Bush and the newly appointed Chao overturned the previous administration’s regulation on ergonomics injuries, saying that it was much too broad.

Now Chao, who previously held major administrative positions with the Peace Corps, the United Way and the Heritage Foundation, must again face the challenge of how to create and enforce national safety codes for a wide range of working environments.

With knowledge gained from this summer’s forums, she will attempt to bring about resolution in the coming weeks as the DOL introduces new regulations.

Indoor Air Quality No. 1 Concern of Homeowners on List of Future Trends

Heading the list of Battelle Corp.’s top 10 trends for the future of healthy homes, indoor air quality (IAQ) ranked number one. The list revealed that in 2010 consumers will likely see products for advanced air venting, air filtration and biosensors that help fight humidity, mold and other indoor pollutants, said the group of Battelle scientists and researchers who compiled the list.

Battelle, Columbus, Ohio, is a technology development firm that serves industry and government by creating and researching new technologies for clients around the world.

Other products that are sure to be important in the near future, according to Battelle, are carbon monoxide monitors and home security alarms. Both are used today and are thought to be on the forefront of new home health and security trends. Also on the horizon are home power generators and home health monitors.

“EBot” Not Science-Fiction for New Wave of Robotic Cleaning

Intellibot, Richmond, Va., a developer of robots for service industries, is enjoying success with its first commercial robot application, the Intellibot EBot. By cleaning floors with easy-to-use programming, the EBot frees up janitorial employees to do more skilled tasks.

There are currently 130 EBots in use today, including 12 at Westpoint Academy. The robot uses sonar to avoid running into doctors, nurses and patients at hospitals, such as Stanford Hospitals in California.

The founder of Intellibot, Charles “Buck” Ward, came up with the idea for the EBot while waiting for his own jan/san employees to show up for work. “It’s very difficult to find people to clean at 5 a.m.” he says.

The EBot uses regular cleaning chemicals and, according to Ward, “only has to have the floor plan programmed once, and anyone can do it.”

Ward also claims that working with advanced technology helps increase the self-esteem of cleaners, saying that pride in work results in increased quality of production.

CSPA Argues for Uniformity in Delaware

In August, the Consumer Specialty Products Association (CSPA), a Washington-based non-profit trade association, presented testimony on Delaware’s draft consumer products rule. The rule, which the CSPA created for 12 eastern states and the District of Columbia, promotes volatile organic compounds (VOC) reduction regulation for consumer products.

Delaware has not yet adopted any official state regulation, but will use the draft consumer products rule as a model for state law, scheduled to be proposed September 27. Joe Yost and Eileen Moyer of the CSPA, urged Delaware to accept the draft consumer products rule so that the Eastern states would have uniformity.

Yost said that the possibility of each state creating individual regulations for consumer product VOC reduction would be “disastrous,” claiming that such varying regulations would greatly impair interstate commerce.

Mergers and Acquisitions

Eagle Power Products, Mendota Heights, Minn., and Pulex of the Interpump Group, have formed Pulex/Eagle Power Products for the U.S. market. Pulex is a manufacturer of window cleaning squeegees and tools. Eagle Power Products logistics and distribution will allow customers access to all of the Pulex products.




POSTED ON: 9/1/2001