 |
|
Appleton to shift coated operationsArjo Wiggins Appleton plc (AWA), parent company of Appleton Papers Inc., said it will sell the Newton Falls, N.Y., mill and consolidate production at the Combined Locks, Wis., mill. Combined Locks will undergo a $25 million expansion to convert the No. 6 paper machine to coated free-sheet from carbonless base stock. After the conversion, the Combined Locks mill will have capacity to make about 300,000 tpy of coated free-sheet.The Newton Falls mill employs 300 people and union employees are represented by Locals 1154 and 1552 of the Paper, Allied-Industrial, Chemical and Energy Workers International Union. Mike Van Eyck, chief executive of the U.S. coated-free business for AWA said, “Market conditions for coated free-sheet products have been very challenging since we acquired the Newton Falls mill. We made significant improvements to the mill’s cost structure, however it is no longer the strategic asset it once was.”
Princeton Paper shut; still for salePrinceton Paper Co. LLC has shut down operations just one year after restarting paper production at the former James River Co. Mill No. 8 in Fitchburg, Mass. The mill had been producing approximately 200 tpd of printing/writing papers and specialty packaging and industrial converting papers on two paper machines using purchased pulp.The mill was closed as a result of the Chapter 11 bankruptcy filing by Harnischfeger Industries Inc., the parent company of Beloit Corp., in early June. Most of the mill’s 153 workers were notified on July 8 and production was stopped on July 10. The company was working to make the facility profitable and marketable, with the goal always being to sell the mill, not to become a paper producer. Several prospective buyers have toured the Fitchburg facility during the past few months but no offer has been tendered. There has also been mention of a possible management buy-out.
Strathcona improves coated boxboardRoman Corp. Ltd. has approved a $25 million capital investment in Strathcona Paper Co., the company's operating division. This capital investment is expected to strengthen the mill’s market position and further increase profitability upon completion. The single PM mill in Napanee, Ont., produces 235 mtpd of recycled clay-coated boxboard.The investment is comprised of a portfolio of strategic projects totaling approximately $18.3 million, and an allowance for annual mill maintenance capital spending totaling approximately $6.1 million for the next four years. Planned projects include new stock preparation equipment and a new machine chest, new automated process controls and faster drives to increase machine speed and process control and automation equipment. The new equipment is scheduled to be commissioned in October 2001.
Westvaco to form packaging groupWestvaco Corp. announced plans to combine four separate business units to create a single “super” group focused on serving the growing worldwide market for paper packaging materials and products. The new Packaging Resources Group (PRG) will combine Westvaco’s existing bleached paperboard, consumer packaging and kraft divisions, as well as the packaging sales component of Westvaco Worldwide, the company’s international sales organization. These businesses produce and market over 2.5 million tpy of bleached and unbleached paperboard products serving customers around the world. The new business unit will further expand its geographic and market reach by coordinating its activities with Westvaco’s Brazilian packaging subsidiary, Rigesa Ltda.The new group is scheduled to begin operation in November and will ultimately represent more than one-half of Westvaco’s sales and assets, The company’s printing/writing paper operations, envelope business and specialty chemicals business will not be included in the new organization.
Bowater gains capacity at CalhounBowater Inc. will see a 40,000 mtpy market pulp capacity increase at its Calhoun, Tenn., mill by the end of the year, boosting hardwood kraft market pulp capacity at the mill to 180,000 mtpy. The company started up a new 815 tpd thermomechanical pulp line from Andritz Inc. at the mill in June. As a result, the company is using less kraft pulp for newsprint production, freeing up kraft pulp capacity for market pulp.The company will lose about 30,000 mtons of bleached softwood and hardwood kraft production at its Thunder Bay, Ont., mill in November during major recovery boiler work. The repairs are scheduled for a 30-day period, during which time certain equipment will run on a staggered basis.
K-C shuts Alabama kraft pulp millKimberly-Clark Corp. (K-C) shut the 560,000 mtpy softwood/hardwood market and integrated wet-lap kraft pulp mill at its Mobile, Ala., facility effective Aug. 29 as part of a long-range plan to build a recycled pulp mill there. The closure was also prompted by the estimated $260 million required to bring the pulp mill operation into Cluster Rule compliance by 2001. K-C continues to produce tissue at the mill but is using purchased eucalyptus kraft as well as northern softwood kraft from its facility in Pictou County, N.S.The idled pulp mill will not be dismantled, however, because K-C is continuing talks with the mill’s energy supplier, which wants to acquire some of the pulp mill assets and operate them at a reduced capacity. Mobile Energy Services Corp. (MESC), a division of Southern Co., said it has “a preliminary agreement to cooperate with Kimberly-Clark on doing feasibility site studies on the pulp mill assets,” said an MESC spokesperson. “We want to make sure what we’d like to do is possible, practical, and economical,” the spokesperson said. Operation of the pulp mill is crucial to MESC, accounting for 50% of its revenue and 85% of its fuel. K-C and MESC have previously disagreed on the conditions under which MESC would acquire the assets. A K-C official said the agreement is a step in the right direction. “At this point we don’t have a definitive sales agreement, but it is a positive step,” he said. “We’re hopeful something can be worked out.” Arbitration between K-C and MESC is on hold while the two sides negotiate.
Northwood purchase creates pulp giantCanfor Corp. of Vancouver, B.C., has announced plans to acquire Northwood Inc. for C$635 million. Northwood is an equal joint venture of Mead Corp. of Dayton, Ohio, and Nexfor Inc. of Toronto, Ont. Northwood operates a 535,000 mtpy bleached softwood kraft market pulp mill in Prince George, B.C. and four large sawmill operations also in B.C.Canfor operates two bleached softwood kraft market pulp mills in Prince George, B.C. with total capacity of 460,000 mtpy. Canfor also manufactures 105,000 mtpy of sack kraft paper at one of its Prince George mills. The acquisition would make Canfor the largest kraft market pulp producer in Canada and the fifth largest kraft market pulp producer in North America. Canfor would become Canada’s largest producer of softwood lumber (and North America’s third-largest), with an annual capacity of approximately 2.4 billion bd ft.
Inexcon completes purchase of GNPInexcon Maine Inc. completed the purchase of the Great Northern Paper Co. (GNP) subsidiary from Bowater Inc. for $250 million. The mid-August closure followed weeks of sometimes rocky negotiations with members of the mills’ labor unions, whose acceptance of labor concessions was key to the deal being completed.GNP includes paper mills in East Millinocket and Millinocket, Maine, 400,000 acres of timberlands, and the largest privately owned hydroelectric facility in the U.S. Inexcon is headed by president Lambert Bedard and chairman Joe Kass, both paper industry veterans. The two GNP mills are the only ones in the company’s portfolio. The new company is called Great Northern Paper Inc. and is based in Millinocket. Inexcon also plans to reduce the mills’ workforce by 225 jobs. Great Northern will not proceed with plans to install a $220 million thermomechanical pulp line at the East Millinocket mill that Bowater had previously planned. Instead the company plans to invest up to $100 million over the next two years which will be targeted primarily for paper machine modifications to improve production efficiencies. Newsprint production at the East Millinocket mill will be converted to specialty groundwood paper production. A more detailed plan of these investments is expected to be finalized by early fourth quarter 1999. In related news, DukeSolutions, a subsidiary of Duke Energy, will invest in the power system at the two mills, which include two cogeneration plants and a hydroelectric system. The long-term, multi-million dollar investment will facilitate the upgrades of steam and electric power systems to improve operations of the 286 megawatt (MW) system. The two mills are currently a net buyer of electricity. GNP will continue to operate and manage the power system while DukeSolutions will provide technical expertise to improve the operations. Details of DukeSolutions’ investment is not expected to be finalized until after the first of next year
Donohue purchases rest of FinlayDonohue Inc. has completed its acquisition of Slocan Forest Products Ltd.’s 49.9% share in Finlay Forest Industries Inc. Donohue’s wholly owned subsidiary, Donohue Forest Products, is now the sole owner of Finlay’s paper mill in Mackenzie, B.C., which has capacity to produce 200,000 mtpy of newsprint and uncoated groundwood specialties and two sawmills with total capacity of 360 million bd ft of lumber.
Kruger strike ends at newsprint millWoodlands workers who went on strike June 29 at Kruger Inc.’s Corner Brook Pulp & Paper Ltd. in Newfoundland ratified a new, five-year labor agreement on Aug. 31. The 750 members of Local 60N of the Communications, Energy and Paperworkers Union of Canada (CEP) approved the contract which calls for wage increases of 11% over the life of the contract as well as provisions for early retirement, easier advancement into mechanical jobs, and a longer work season. The idled newsprint mill was expected to return to full production by Sept. 1. The 385,000 mtpy mill was shut Aug. 5 due to wood supply shortages resulting from the strike.
E. B. Eddy strike ended in MichiganA four-year labor agreement was ratified Aug. 28 at the E.B. Eddy Paper Inc. mill in Port Huron, Mich., ending a strike that began Aug. 1. The workers are members of Local 51 of the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE). The mill, which had been operating at 85% of capacity using salaried personnel during the strike, has returned to full production. The mill has capacity to produce 105,000 tpy of lightweight printing papers, packaging, and specialty papers. E.B. Eddy is a subsidiary of Domtar Inc. of Montreal.
Weyerhaeuser strike ends at Dryden millMembers of the Communications, Energy and Paperworkers of Canada (CEP) at Weyerhaeuser Co.’s Dryden, Ont., pulp and paper mill on Aug. 1 ratified a new six-year labor agreement consistent with the pattern agreement for eastern Canada. The mill, which had been idled by a strike since July 10, was restarted Aug. 3.
Converter plans new tissue millAtlantic Paper and Foil Corp., Hauppauge, N.Y., is talking with several unidentified municipalities about building a greenfield tissue mill. The company is a privately-owned tissue converter which also produces a variety of aluminum foil and plastic wrap products for institutional and retail markets. A company spokesman indicated that the company is planning to install its first paper machine within the next nine months. However, further details regarding possible mill sites, capacity, or project cost were not available.The tissue converter had expressed interest in purchasing the former Fort James Corp. tissue mill in Carthage, N.Y., but does not currently plan to make an offer to purchase that facility. If Atlantic had purchased the Carthage mill, it was planning to immediately install a 60 tpd tissue PM followed by a 100 tpd tissue machine and converting equipment within the next four years. The company had planned to invest $30 million to $60 million at the Carthage mill and employ up to 200 within the next five years.
Former N.Y. tissue mill might reopenThe Carthage (N.Y.) Industrial Development Corp. (CIDC) is negotiating with New York Tissue Co., a company formed by the principals of Evergreen Pulp & Paper of Shrewsbury, Mass., to reopen the former Fort James Corp. tissue mill in Carthage, N.Y. Fort James dismantled the tissue PMs and converting equipment at the mill when it closed the mill in April 1998 and gave the mill site to the CIDC which has been actively trying to find a new operator for the facility. If negotiations to acquire the mill are successful, New York Tissue has indicated that it would like to begin production by the end of this year.
FiberMark installing new PM, closing millFiberMark, Inc. will invest $15 million to install a new specialty paper machine in its Warren Glen, N.J., mill, and will close its Hughesville, N.J., paper mill. The new PM will manufacture the current Hughesville product line with improved quality and higher productivity, and will broaden the range of product capabilities. The Hughesville mill manufactures technical specialty papers, including printed circuit board base, wet-strength papers, absorbent papers, photographic packaging papers and specialty tape bases.Engineering and construction activities will begin immediately and the new PM is scheduled to begin production in second quarter 2000. The Hughesville mill, located just a few miles from Warren Glen, will be used as a warehouse after its operations are shut down by the end of this year. FiberMark is still seeking a buyer for its Beaver Falls, N.Y., mill which it shut down at the beginning of 1999.
Release at G-P under investigationA titanium dioxide release in August at Georgia-Pacific Corp.’s Woodland, Maine, pulp and paper mill is under investigation by the state’s Department of Environmental Protection, according to a local newspaper report. G-P confirmed there was a release of 6,000 gallons of the non-toxic substance into the St. Croix River on Aug. 12.
Genetic modification could aid pulpingA team of researchers at the Michigan Technical Univ. recently reported altering certain lignin-controlling genes in aspen trees, which resulted in a reduction of lignin of up to 50% and a subsequent increase in cellulose production of up to 15%.If commercially viable, the research results could have an enormous impact on pulp production costs because lignin removal for pulp processing adds significantly to operating expenses. In addition, increased cellulose yield per tree would boost mill efficiency and profits. Commercial application of the gene engineering technology is about four or five years away, according to a university official, who said a few paper companies have expressed interest in the technology.
Indonesian pulp mill nears completionPT Tanjungenim Lestari Pulp in southern Sumatra, Indonesia, is expected to begin trial runs by the end of the year, with commercially saleable pulp available in first-quarter 2000. Construction began in February 1998 on the $1.2 billion, one-line 450,000 mtpy bleached hardwood kraft market pulp mill. It will be the world’s first 100% acacia-sourced mill. The mill is the largest market pulp project to come onstream in recent times and the first greenfield market pulp mill to be built since late 1997.
APRIL plans new kraft pulp lineAsia Pacific Resources International Ltd. (APRIL) is planning to build a new 450,000 mtpy bleached hardwood kraft pulp line at its Riaupulp mill in Kerinci, Indonesia. One-third of the required $524 million has been financed, mainly through company equity. Future plans call to boost capacity of the new pulp line to 1.1 million mtpy.The company has earmarked the expansion an “immediate priority” and expects the pulp line to start production 18 months after all the financing has been committed which is expected in the near future. APRIL said UPM-Kymmene would not provide the remaining financing. Finnish papermaker UPM-Kymmene is a partner with the company in its uncoated free-sheet paper operations in Indonesia and China. Plans for a second uncoated free-sheet PM with a capacity of 350,000 mtpy at the mill have been hampered by financing difficulties. Talks are continuing between APRIL, UPM and Valmet Corp., which is to supply the paper machine. APRIL is still progressing with a $100 million debottlenecking program on Riaupulp's No. 1 pulp line to boost bleached kraft pulp capacity by 100,000 mtpy to 850,000 mtpy. A significant amount of work has been completed, including the installation of an additional digester, wood handling and recovery boiler capacity, allowing for some incremental production. The project is expected to be completed by the end of the year.
P&G to purchase Chinese tissue millsTaiwan’s Long Chen Paper has signed a definitive agreement to sell two tissue mills to Procter & Gamble Co. (P&G). Under the deal, P&G will acquire the Ching-sui mill in Taiwan and the Suzhou mill in China. The move follows a non-binding letter of intent signed in May. The $115 million transaction is expected to close by October, Long Chen said.
Kimberly Mexico to boost tissueKimberly-Clark de Mexico will undertake a $150 million expansion this year, with a resulting boost in production capacity of 15% to 20%. The company has about 450,000 mtons of paper capacity among four mills that produce consumer tissue, uncoated free-sheet and specialty papers. The investment will be on the tissue side and the additional production should be in the marketplace by mid-2000. An additional $200 million is slated to be invested at K-C’s Mexican operations next year.
Fort James to build European tissue PMFort James Corp. announced plans to build a 60,000 mtpy tissue machine in western Europe, with start-up planned in 2001. Installation will be at one of three existing locations, with the final site determination based on the outcome of pending local government and union negotiations. However, the three locations were not identified by the company. The new machine will allow the company to continue serving the highest quality market segments in Europe while replacing assets scheduled to be idled. The project will be financed largely through existing capital budgets. Further details were not available from the company.
Visy building new kraft linerboard millVisy Paper is building a greenfield kraft linerboard mill in Tumut, New South Wales, Australia, with a capacity of 300,000 mtpy. Voith Sulzer will supply the paper machine which will have a wire width of 231 in. and a design speed of approximately 3,300 ft/min. Kvaerner will supply equipment for the unbleached kraft pulp mill, including the fiber line, recovery boiler, evaporation plant, recausticising plant, lime kiln and a bubbling fluidized bed boiler. The mill is scheduled to begin production in third-quarter 2001. Total project cost is approximately $285 million.
Drewsen installs new specialty papers PMDrewsen Spezialpapiere GmbH & Co. KG will install a new PM at its specialty papers mill in Lachendorf, Germany. The mill manufactures graphic and information technical specialty papers as well as security and bond papers. Valmet Corp. will supply the complete paper manufacturing line, including the PM, stock preparation, hood and air systems, and process automation. Valmet will also be responsible for mill engineering, start-up, and training. The PM will have a reel width of 189 in. and produce papers ranging from 50 g/m2 to 120 g/m2. The new PM is scheduled to begin production in Fall 2000. Project cost was not available.
European tissue projects in the worksProcter & Gamble will start its new 60,000 mtpy tissue machine at the Trafford Park mill near Manchester, England, the end of this year. The $163 million project is ahead of schedule and was originally set to go online in 2000.Also in the U.K., Kimberly-Clark Corp. said it would close its 38,000 mtpy Larkside mill in England by the end of 2000. The mill’s production will be relocated to the Barrow-in-Furness unit in northern England, one of three mills that will concentrate on consumer tissue. The Barrow, Northfleet, and Flint mills will be upgraded. In Turkey, Viking Kagit ve Seluloz AS started commercial production in August on a new tissue machine at its mill in Aliaga. Valmet supplied the 27,000 mtpy machine which will produce bath issue, towels and napkins. The $25 million project includes a deinked pulp line.
Chinese newsprint mill to start in 2000Plans by the Black Dragon Group in China to build a greenfield newsprint mill in Qiqihar, Heilongjiang province, are being slowed by pulping equipment delivery problems. Most of the mill's pulp line has been installed, but delivery of two refiners have been held up in customs.Andritz Inc. supplied the 200 mtpd alkaline peroxide pulp line. Black Dragon expected to start up the pulp line as soon as possible, and the first parts for the 220,000 mtpy paper machine from Valmet Corp. are scheduled to be delivered in December with start-up of the machine scheduled for late 2000. The 625 mtpd PM has a design speed of 5,900 ft/min and a wire width of 240 in. and will manufacture 48.8 g/m2 newsprint for the domestic market.
 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pulp & Paper Magazine, October 1999 | CONTENTS | ||
| Columns | Departments | Focus/Features | News |
| Editorial | News of people | ERP study | Month in Stats |
| Maintenance | Conference Calendar | Troubleshooting vacuum systems | Grade Profile |
| Comment | Product Showcase | Winding, wrapping for super-wide rolls | News Scan |
| Career | Supplier News | Latin America holds steady | |
| Mill Operations | ERP functionality gaps | ||
| Dedicated incinerator one option for NCG | |||
| Safety improvements through VPP | |||
Find out if you qualify for a free subscription to the print edition of Pulp & Paper magazine.  |
|||