Resitec invests $15M in pine chemicals expansion

SAO PAULO, May 23, 2008 (RISI) - Resitec, a Brazilian chemicals supplier to Latin American markets, is building a tall oil refinery in Palmeiras, Santa Catarina state, southern Brazil. The mill will raise the company's capacity from 30,000 tonnes/yr to 40,000 tonnes/yr of pine chemicals, which are obtained from a kraft paper by-product. The new plant startup is scheduled for January 2009.

Under an investment of Real 25 million ($15.1 million), the plant will expand Resitec's products portfolio, including tall oil fatty acid (TOFA) and tall oil rosin (TOR). The mill will be the first and unique in Latin America to produce pine chemicals, according to Bernardo Mello, Resitec's managing director.

The project was possible after the signature of an agreement between MeadWestvaco, Specialty Chemicals and Chemserve to establish an equal joint venture in Resitec. The deal is expected to be completed during the second quarter of 2008.