Pitkyaranta to overhaul pulp mill in the Karelia region of Russia

BRUSSELS, May 01, 2008 (RISI) - Pitkyaranta Pulp Mill has unveiled further details about expansion plans at its 100,000 tonne/yr unbleached softwood kraft market pulp facility in Pitkyaranta, the Karelia region, northwest Russia.

The firm is currently carrying out the second stage of its investment scheme. The first stage, implemented in 2007, included a revamp of the pulp dryer #3 and the installation of a new electrostatic precipitator on the recovery boiler #2. The overhaul brought down energy costs and increased the mill's total drying capacity to 310 tonnes/day.

The second phase of the project is aimed at increasing the mill’s total drying capacity to 350 tonnes/day and optimizing steam output on the recovery boiler #2, boosting electricity generation up to 92% of the facility's needs. The firm will continue modernizing the pulp dryer #3 and the recovery boiler. As a result, the mill's pulp capacity is expected to reach 115,000 tonnes/yr. Andritz will supply most of the equipment during this stage.

The second stage of the project will cost Rouble 474 million ($20 million) and is scheduled for completion in the third quarter of 2010.

In a third stage, Pitkyaranta is looking into the possibility of switching the plant's production to viscose pulp. A spokesman explained, "Initially our plan was to increase the current [unbleached kraft pulp] capacity to 300,000 tonnes/yr. However, a further feasibility study showed that this scheme would be too costly. Besides, demand for unbleached pulp is declining, whereas [demand] for viscose pulp is growing nowadays. We hope to sell our output not only in Russia, but also outside the country. It is a great opportunity for us to occupy a niche in the market of viscose pulp, which will make our production more profitable," he added.

The firm hopes to produce about 75,000 tonnes/yr of viscose pulp. The decision regarding the mill’s conversion will be made during the third quarter.