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2007 saw a number of pulp and paper mills signing major service contracts

January 2008
A PPI Special Report

The last 12 months have been busy in the service agreement space, with new contracts, new service centers and some mergers and acquisitions…

Automation agreements

In November, Stora Enso agreed a service contract with Voith Paper Automation for the OnQ EnviroScan, cross-profile controls and winder on PM 3 at Veitsiluoto mill, Finland. The machine produces 280,000 tonnes/yr of uncoated woodfree paper in a basis weight range of 70-120 g/m2.

Russia's North-West Timber Company (NWTC) has concluded a service contract with Voith Paper Automation for the process and quality control system (QCS) and the information system of PM 9 at Neman Pulp and Paper Mill (NPPM), Kaliningrad, Russia. The services combine several modules that can be individually adapted to meet customer's requirements.

New centers for Brazil and China

In August, Metso Automation inaugurated a service center in the municipality of Guaíba, Rio Grande do Sul state, southern Brazil. The unit's activities include maintenance services, refurbishments, tests, configurations, valve diagnostic analysis as well as specialized services for smart products. The center also offers full lifecycle service agreements, which are focused on performance and continuous improvement.

The new automation service center covers an area of more than 700 m2 and also houses a sales office.

Metso Paper has doubled the capacity of its roll service center in Wuxi, China
Metso Paper has doubled the capacity of its roll service center in Wuxi, China

In China, Metso Paper has doubled the roll service capacity of Wuxi Service Center, Jiangsu province. The new extension, which was completed in October, allows the center to serve a wider customer base and offer more flexible and faster service.

The center features a fully equipped roll service workshop that provides roll covers as well as mechanical roll maintenance for all roll types. It also provides replacement rolls and full-scale services for spare parts and tailored consumables such as doctoring products.

On site at Nogent-sur-Seine

In October, Pikoteknik, part of Voith Paper Rolls, carried out the on-site coating of a VariFlex drum on PM 1 at Emin Leydier Nogent-sur-Seine mill, France. The service team was able to complete the task in just 14 hours, when the contract stipulated 20.

Acquisitions in UK and France

In June, Metso Paper entered into an agreement to purchase the French maintenance company, Mecanique et Depannage Industries s.a.r.l. (MDI), located in Venicel, northeast of Paris. MDI employs 30 people.

The following month, the Finnish supplier giant added Bender Holdings Limited and its subsidiary companies in the United Kingdom to further strengthen its aftermarket business. Bender operates in mill site services, thermal spraying and grinding of cylinders, and workshop services for tissue, paper and board machine rolls and ancillary equipment.

Nordic Paper renews

Nordic Paper has renewed the maintenance agreement with Metso-owned Scandinavian Mill Service (SMS) for its greaseproof paper mills in Säffle, Sweden and Greåker, Norway. Initially signed in 2002, the new agreement, inked last January, sees SMS taking full responsibility for maintenance and committing to common targets to maximize the mills' production.

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By how much will the credit crunch reduce greenfield mill announcements in the next three years compared with the last three years?
  • No noticeable effect
  • Up to 33% fewer new mills announced
  • Up to 66% fewer new mills announced

  • More than 66% fewer new mills announced

Vote

 
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