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In contrast to their U.S. counterparts, Canadian mills have installed very few new paper machines in the 1990's. Instead, producers have targeted capital investments for machine rebuilds, not new machines. Based on the most recent review of project spending by Pulp & Paper Project Report, Canadian producers will spend almost 27% of total investments for PM rebuilds during the 1997-2000 period compared to 19% by U.S. manufacturers.
As markets become more competitive, producers continue to seek strategies to minimize the negative effects of market downturns. For example, a number of newsprint machines are being rebuilt to allow for the production of uncoated groundwood grades, including supercalendered (SC) grades.
The most comprehensive PM rebuild was completed by Alliance Forest Products Inc. in July 1997 at its mill in Dolbeau, Que. The company rebuilt former newsprint PM No. 1 at a cost of C$177 million to switch production to soft-nip calendered uncoated groundwood printing papers. Capacity of the PM was also increased by approximately 43,000 mtpy to reach 200,000 mtpy. Due to the extensiveness of the rebuild, the company renumbered the machine to PM No. 5.
Another rebuild of great interest is being completed by Irving Pulp & Paper Ltd. in St. John, N.B. An on-machine OptiLoad multi-roll calender from Valmet Corp. is being installed to allow for production of SC grades of uncoated groundwood printing papers.
Abitibi-Consolidated Inc., Donohue Inc., and Fletcher Challenge Canada Ltd. have machine rebuild projects for quality improvements for uncoated groundwood papers production under way. Quality improvement projects have also been announced or completed for other paper and board grades by Canfor Inc., Domtar Inc., Norampac Inc., and Perkins Papers Ltd.
While machine rebuilds will remain more common than new PM installations, there are a few new machines slated for Canada. The installation of the new 350,000 mtpy SC-A+ machine by Stora Port Hawkesbury Ltd. in Nova Scotia earlier this year was the first non-tissue PM installation in Canada since 1991. The only new PM on the horizon is the uncoated groundwood papers PM installation by Alliance Forest Products Ltd. scheduled to start in 2000. However, the net capacity gain will be offset by the concurrent shutdown of two existing PMs. The proposed Grande Alberta Paper Ltd greenfield lightweight coated (LWC) groundwood papers mill is currently undergoing environmental review.
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