PULP MILLS UPDATE

 

August 2014

 

McIlvaine Company

 

 

 

TABLE OF CONTENTS

 

COMPANY NEWS

Newpage and Omya Start-Up New PCC Plant at Escanaba Site

ABB to Supply World's Largest Pulp Mill

Andritz Automation to Supply Klabin’s Puma Pulp Mill

Pöyry to Supply Technology to Kemira Plant in Brazil

Kemira Launches New Binder for Paper and Board Coating

Air Liquide to Invest Euro 40 Million in New Air Separation Unit at Klabin

Södra Appoints GL&V for Major Upgrade of Softwood Pulp Line at Sweden Mörrum Mill

Valmet Sealflo Technology Reduces Water Consumption By 50%

 

EXPANSIONS/ REBUILDS

Billerudkorsnäs Invests in Capacity Increase at Mills in Sweden

Arauco to Convert Kraft Pulp Valdivia Mill to Dissolving Pulp

China’s Shandong Dongshun Starts Up Three Tissue Pms, Six More Coming

IP to Start Euro 20 Million Upgrade In Green Production Process at France Saillat Mill

Green Bay Packaging Invests $30 Million in Arkansas Kraft Division

Voith to Supply Three Paper Machines to China’s Sun Paper

Södra Invests SEK 700 Million To Raise Softwood And Textile Pulp Production

 

ACQUISITIONS

Ashland Water Technologies Becomes Solenis After Acquisition

Stora Enso Acquires US-Based Biotechnology Company Virdia

 

COMPANY NEWS

Newpage and Omya Start-Up New PCC Plant at Escanaba Site

Omya andNewPage Corporation kicked off operations with a ribbon-cutting ceremony at the precipitated calcium carbonate plant located at the NewPage Escanaba paper mill site. The Omya plant brings seven new jobs to the community.

 

PCC is an essential raw material used in the papermaking process. It lends to key properties such as bulk, opacity, brightness and whiteness. PCC is manufactured using lime and carbon dioxide (CO2).

 

The Escanaba mill previously purchased PCC from another supplier. With the PCC plant on-site, the mill saves on transportation costs. The lime needed for the PCC manufacturing process is purchased from the Upper Peninsula.

 

The environment also benefits from the on-site plant. Before the PCC plant was in operation, the CO2 produced by the mill was emitted into the air and considered waste. The on-site plant uses CO2 generated by the Escanaba mill in the process, reducing the environmental impact.

 

Omya is a leading global producer of industrial minerals, mainly fillers and pigments derived from calcium carbonate and dolomite, and worldwide distributor of chemical products. The company's major markets are paper, polymers, building materials (paints, coatings, sealants, adhesives and construction) as well as life sciences (food, feed, pharma, cosmetics, environment and agriculture). Founded in 1884 in Switzerland, Omya has a global presence, extending to more than 100 locations in over 50 countries with 7,000 employees. To learn more, visit www.omya.com.

 

NewPage is a leading producer of printing and specialty papers in North America with $3.1 billion in net sales for the year ended December 31, 2013. NewPage is headquartered in Miamisburg, Ohio, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin. These mills have a total annual production capacity of approximately 3.5 million tons of paper.

 

ABB to Supply World's Largest Pulp Mill

ABB, one of the leading power and automation technology companies, has received an order for the delivery of process electrification at a new pulp mill to be built in South Sumatra, Indonesia. It will be the world's largest pulp mill with an annual production capacity more than 2 million tons of pulp. Commercial operation will begin in 2016.

 

ABB will deliver medium and low voltage switchgears, distribution transformers, motors, drives and project services. The drives are produced in the world's largest drive factory located in Helsinki with the project being managed by ABB's unit in Vaasa, Finland, in cooperation with ABB in Singapore.

 

According to the company demand for paper products is rising steadily throughout Asia despite a highly fragmented global market. Older mills are being replaced by new, state-of-the-art facilities that deliver higher efficiency, cleaner production and improved balance between capacity and demand. The global trends are promising for the long term driven by sustainable supply chain practices, environmental regulation, urbanization and rising consumer demand in developing nations.

 

Andritz Automation to Supply Klabin’s Puma Pulp Mill

Andritz Automation, part of international technology Group Andritz, has received an order to supply dynamic simulation solutions for Klabin's Puma pulp mill project in Ortigueira, Paraná State, Brazil.

 

The scope of supply encompasses the dynamics models, DCS checkout, and Operator Training Simulator (OTS). These solutions will be used to test and verify process design concepts, identify and correct errors in the control logic, and provide realistic, hands-on training modules for the operators, helping Klabin to achieve a fast and smooth start-up. Start of pulp production is scheduled for the end of the first quarter of 2016.

 

Andritz Automation will use its proprietary simulation tool IDEAS to model the key process areas of the pulp mill: two digesters, two fiber lines, two bleach plants, and the white liquor plant supplied by Andritz Pulp & Paper, as well as the recovery boiler, evaporation plant, and power boiler delivered by other companies.

 

The order to supply major production equipment for Klabin's Puma project was awarded to Andritz Pulp & Paper in March 2014. Established in 1899, Klabin is the biggest producer and exporter of packaging paper in Brazil. Considered as the largest integrated pulp and paper company in the country, it exports to over 60 countries. The Puma project will demand total investments of about two billion euros, not including forest assets, improvements to infrastructure, and taxes. The new mill will have an annual production capacity of 1.5 million tons of pulp, of which 1.1 million tons in short fiber and 400 thousand tons in long fiber, part of which is to be converted into fluff pulp.

 

Pöyry to Supply Technology to Kemira Plant in Brazil

Kemira has awarded Pöyry with assignments for EPCM (Engineering, Procurement and Construction Management) services for a sodium chlorate plant in Brazil.

 

The EPCM assignments relate to the new sodium chlorate plant that Kemira is building to serve the Brazilian markets, and in particular the plant will serve Klabin SA's new 1.5 million ton pulp mill. Sodium chlorate is used as a component in the bleaching process in the manufacturing of bleached pulp.

 

The assignments follow on from the pre-studies performed by Pöyry during 2012-2014.The EPCM services started in May 2014 and are scheduled to last until the start-up of the sodium chlorate plant in the first half of 2016.

 

The value of the order is not disclosed. The project order includes two contracts, specifically, a contract for Engineering and Procurement services, which was recognised within the Industry Business Group's order stock in Q2; and a contract for Construction Management Services, which will be recognised within Pöyry's Regional Operations Latin America Business Line order stock in Q3.

 

Kemira Launches New Binder for Paper and Board Coating

Fennobind, a new type of binder used in coating of paper and board, was developed as a collaboration project together with a customer. Fennobind enables paper and board makers to gain clear cost savings and develop end product properties, such as printability. Fennobind also enables the optimization of the customer's coating mixes on a wider scale: dry content, pigment ratios, and other extra components of the coating color can be completely re-optimised.

 

"The goal was to reduce the use of oil-based raw materials and to reduce the total coating costs. Fennobind has now been in machine scale use for some four years, and it has proven to fulfil customers' requirements," says Pasi Jussila, Marketing Manager.

 

Fennobind is suitable for all coating applications and all paper and board grades. Compared to traditional latexes, it gives a clearly better coating coverage. A more even coating structure improves both printability and visual qualities of the end product.

 

"Depending on the coating application, traditional synthetic binders can be replaced with Fennobind either partly or wholly," Jussila explains.

 

A smaller carbon footprint along with cost savings

 

The entire product development process has been based on the customer's greater ability to optimize costs. Fennobind changes coating structure in a way that has also clearly decreased the need for drying energy in coating. In most cases the use of Fennobind enables reducing drying energy costs by 20-30 per cent.

 

The clearly reduced use of oil-based raw materials also shows in the carbon footprint of the customer's end product. The smaller quantity of volatile organic compounds has been received with great interest in the packaging and board industry.

 

Fennobind has an important role in Kemira's growth objectives. Its production capacity has been and will be increased both in Europe and elsewhere. In addition to financial investments, Kemira also invests in skilled people, who work with this product.

 

"Our sales staff works in close co-operation with our application experts worldwide. Our experts regularly train the sales staff, and every day we learn more together. Kemira wants to ensure that the best new products are available to our customers as quickly as possible. In this way, our product development leads to new innovations in co-operation with the customer," Jussila notes.

- See more at: http://ppimagazine.com/mills/west-europe/projects/kemira-launches-new-binder-paper-and-board-coating#sthash.bXKNkgBh.dpuf

 

Air Liquide to Invest Euro 40 Million in New Air Separation Unit at Klabin

Air Liquide will invest around €40 million in a new Air Separation Unit (ASU) that will supply Klabin, Brazil's biggest paper manufacturer, with oxygen.

 

Under the terms of this agreement, Air Liquide will invest around €40 million in a new ASU that will supply more than 160 tonnes of oxygen per day to Klabin's new factory located in Ortigueira, as well as to Klabin's other site in Telêmaco Borba, both located in the state of Paraná. The oxygen produced by Air Liquide's ASU will be used to process and whiten pulp in a more efficient and environmentally friendly manner.

 

This unit will be designed and built by Air Liquide Engineering and Construction teams, using state-of-the-art technologies that offer energy efficiency as well as optimal performance and safety.

 

In Brazil's South Region, Air Liquide already serves approximately 3,000 customers through 12 production units. However, this will be Air Liquide's first ASU in the state of Paraná. This new ASU will also allow Air Liquide to provide oxygen, nitrogen and argon to customers in the industrial and healthcare sectors in the regions of Paraná, Santa Catarina, Rio Grande do Sul and Mato Grosso do Sul. This investment will increase Air Liquide's competitiveness locally, which will help to expand its presence in the region.

 

Södra Appoints GL&V for Major Upgrade of Softwood Pulp Line at Sweden Mörrum Mill

Södra Cell has appointed GL&V to supply a major upgrade of the softwood pulp line at its Mörrum mill. Södra announced that its Board of Directors had granted SEK 700 million for a comprehensive refurbishment of the pulp mill at Mörrum.

 

GL&V will be responsible for screening and washing equipment in the unbleached area of the softwood pulp line.  Investing in a new screen room and brown-stock washing is fundamental for the development of the Mörrum mill.

 

GL&V is part of the GLV Group which has a total of 1,800 employees. In Sweden GL&V focuses on solutions for the pulp and paper industry through its technology centres in Stockholm and Karlstad.

 

Valmet Sealflo Technology Reduces Water Consumption By 50%

Valmet recently introduced SealFlo, an easy upgrade for suction roll lubrication showers.

 

"Valmet's new SealFlo technology reduces water consumption by as much as 50%, while maintaining or improving lubrication results," says Pekka Kivioja, director of Roll Maintenance at Valmet.

 

Worn, aged and outdated showers and nozzles lead to substandard lubrication results and consume excessive amounts of water. The new SealFlo axial seal lubrication shower from Valmet features a design which improves the lubrication process, as well as reducing the roll's environmental impact through significantly reduced water consumption.

 

In addition to improved lubrication results, many applications show an improved moisture profile and reduced costs of shower water preparation. Kivioja gives an example: "On a paper or board machine, this could mean savings of as much as 2,500 to 5,000 euros per roll meter per year, resulting in average savings of 100,000 to 200,000 euros a year on a ten-meter wide machine that has four suction rolls." The improved shower functionality also has a positive effect on the lifespan of the axial seal and on the suction roll shell.

 

This modification is now available with suction roll maintenance through Valmet's extensive roll service network.

 

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries.

EXPANSIONS/ REBUILDS

Billerudkorsnäs Invests in Capacity Increase at Mills in Sweden

The BillerudKorsnäs Board of Directors has approved an investment of approximately SEK 900 million in the Frövi and Rockhammar mills. The investment targets increased capacity and improved quality of the output cartonboard and liquid packaging board. A new investment makes the board machine in Frövi the largest of its kind in the world. The investment is a concrete example of BillerudKorsnäs ambitious growth agenda.

 

The investment includes a rebuild of the board machine at the Frövi mill as well as a capacity upgrade of the Rockhammar pulp mill. After completion in 2017, the investment will bring the Frövi mill to an output of 550 000 t/a of high quality cartonboard and liquid packaging board and the Rockhammar mill up to 150 000 t/a of CTMP. After the investment, BillerudKorsnäs will operate the largest machine for production of cartonboard and liquid packaging board integrated to chemical pulp in the world.

 

Per Lindberg, CEO of BillerudKorsnäs says: "The investment sets an ambitious growth agenda for BillerudKorsnäs. For the business area Consumer Board the strategy is profitable volume growth. This investment is an important part of realising that strategy."

 

"The demand for BillerudKorsnäs cartonboard and liquid packaging board is increasing. Through this investment we will maintain and strengthen our competitiveness and deliver on the increasing demands on our products and services, and thereby achieve sustainable growth within our business area Consumer Board," says Ulf Eliasson, Senior Vice President Consumer Board

 

BillerudKorsnäs long term estimate for capital expenditure is for capex to be in line with depreciation i.e. approximately SEK 1400 million per year. The Frövi and Rockhammar investments imply that BillerudKorsnäs will exceed previous guidance for capex with approximately SEK 150 million for 2014 and that the capex level will be above the depreciations also for the coming two years.

 

Arauco to Convert Kraft Pulp Valdivia Mill to Dissolving Pulp

Chilean group Arauco has plans to convert its 550,000-tonne/yr Valdivia bleached and hardwood kraft pulp mill to dissolving pulp (DP) by 2017. The project is estimated to cost $180 million (Euro 133 million) and would allow the company to produce both paper grade and dissolving pulp at the same mill, according to market conditions, said the company’s marketing and sales director, Ricardo Strauszer.

 

Arauco filed the request for industrial modifications with Chile’s environmental authorities, and expects permission will be granted by the end of the year to begin equipment purchase. 

 

After the revamp, the mill will have capacity to produce about 500,000 tonnes/yr of viscose DP. Within the mill learning curve, Arauco also expects to produce high quality DP for the specialty markets.

 

China’s Shandong Dongshun Starts Up Three Tissue Pms, Six More Coming

Shandong Dongshun Group has started up three new tissue PMs in China, adding a combined capacity of 48,000 tonnes/yr. All three units, provided by Kawanoe Zoki, are identical. Each has a trim width of 2.76 m and a design speed of 1,000 m/min, and can produce tissue at a rate of 16,000 tonnes/yr.Two are located at the firm’s flagship mill in Taian city, Shandong province. The other is at a site in Zhaodong city, Heilongjiang province.

 

Shandong Dongshun will bring six more tissue PMs online at the Taian site by 2015. Four will be co-supplied by the Japanese supplier and by Valmet. Each unit, with a capacity of 25,000 tonnes/yr, will have a trim width of 2.85 m and a design speed of 1,300 m/min. The first two PMs will be delivered to the site this month and in September. Their startups are scheduled for the end of this year. The other two units will be fired up in the second half of 2015.

 

IP to Start Euro 20 Million Upgrade In Green Production Process at France Saillat Mill

International Paper announced earlier this year an investment of approximately Euro 20 million ($27 million) into its Saillat mill, located in the French Limousin region, to further reduce the facilities’ water emissions and offer customers an even more environmentally friendly product portfolio. The implementation of the project will commence in the summer of 2014 and is expected to be completed in 2015.

 

At its core, the investment involves advanced technology to extract an improved quality of fiber from wood by using a smoother process. The new process leaves fibers more intact resulting in even higher quality paper, and at the same time further reduces water emissions by another 30% from the already very good levels the Saillat mill is achieving today.

 

The investment will allow International Paper to offer an even greater choice of top notch products to customers. It follows other investments into the company’s service capabilities and modernization of its paper machines at the Saillat facility in recent years.

 

Green Bay Packaging Invests $30 Million in Arkansas Kraft Division

Green Bay Packaging Inc. (GBP) announced that it is moving forward with a press section replacement for PM 1 at its Arkansas Kraft Division in Morrilton Arkansas. The $30 million project will include a new large nip press in the first press position, followed by a new shoe press in the second press position. In addition, the project will include significant infrastructure upgrades to the press section framework and structural supports. These PM1 upgrades will increase production by over 13% and significantly improve efficiency when running lightweight liner-board and medium. The company is partnering with Voith Paper for equipment supply, and Robins & Morton for engineering services. The press section replacement is scheduled for completion in July 2015, with an estimated downtime of 24 days.

 

 

Voith to Supply Three Paper Machines to China’s Sun Paper

Sun Paper has commissioned Voith with the delivery of three paper machines for production of packaging and graphic paper. The Chinese company is thus relying on Voith's proven components and modules. This order continues the successful partnership between Sun Paper and Voith. With a wire width of 7.3 m, the two medium-sized packaging paper machines convince with high efficiency and low investment and operating costs.

 

After some orders for medium-sized machines in the last few months - a board machine for Tamil Nadu Newsprint and Papers Limited, India, among others - Voith can now post another success in the medium sized segment.

 

With the three new paper machines, Sun Paper is profiting from Voith's high level of technological expertise in graphic and packaging paper machines. Many years of successfully proven solutions, such as the MasterJet headbox, the Tandem NipcoFlex shoe press and the SpeedSizer film application unit are included in the delivery. The first clothing and the quality control system are also supplied by Voith. The PM 31 and the PM 32 will be installed at the Sun Paper location in Zoucheng, China. They will produce corrugated medium and testliner in a basis weight range of 90-250 g/m² with a wire width of 7,300 mm and at an operating speed of 1,200 m/min. Another machine for production of graphic paper is being installed at the location in Yanzhou, China. The PM 29 is designed for a wire width of 8,100 mm and an operating speed of 1,800 m/min. In the future, graphic paper will be produced on it in a basis weight range of 50-120 g/m².

 

Sun Paper was founded in 1980 and today is one of the largest paper manufacturers in China to be privately owned. With approx. 10,000 employees, the company produces around 3.5 million metric tons of paper annually. Since 2006 the company has been listed on the stock exchange in Shenzhen.

 

Södra Invests SEK 700 Million To Raise Softwood And Textile Pulp Production

Södra's Board has decided to invest approximately SEK 700 million to increase pulp production at Södra Cell Mörrum. A new wood-chip plant will be constructed and one of the mill's two pulp lines will be upgraded. In February of this year, Södra's Board decided to invest just over SEK 4 billion to increase capacity at the Värö pulp mill. Investments are now also being made in the Mörrum pulp mill, where Södra currently operates two parallel pulp lines for the production of softwood pulp and textile pulp (dissolving pulp).

 

The existing facility at Mörrum currently produces a total of 380,000 tonnes annually. The investment is expected to increase production to about 425,000 tpy.

 

The project includes a new wood-chip plant with two separate wood lines, one for softwood-chip and one for hardwood-chip production, in addition to a refit of the softwood line, where the existing washing equipment will be replaced. The first phase of the project is scheduled to be carried out in 2014-15 with completion expected March 2016.

 

Södra Cell Mörrum currently produces high-quality pulp and is the only Södra mill to produce textile pulp, for which demand is growing rapidly. Södra Cell is one of the largest players in the world in the area of softwood pulp and operates three pulp mills in Sweden: Mörrum, Mönsterås and Värö.

ACQUISITIONS

Ashland Water Technologies Becomes Solenis After Acquisition

Ashland Water Technologies has a new name - Solenis. Rooted in "solutions" and "genesis," the name underscores the company's mission to be at the source - the genesis - of solutions for its customers.

 

The name change coincides with the acquisition of Ashland Water Technologies by a fund managed by private investment firm Clayton, Dubilier & Rice (CD&R). Prior to the acquisition, Ashland Water Technologies was a commercial business unit of Ashland Inc. The sale closed July 31, 2014 and included the Industrial Water and the Pulp and Paper business units.

 

Although the name and brand is new, Solenis is grounded in a strong heritage that includes Ashland Water Technologies as well as Betz Laboratories, Drew, Stockhausen and Hercules. The stand-alone company continues a 94-year reputation as a respected manufacturer of specialty chemicals for the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets. Its product portfolio includes a broad array of process, functional and water treatment chemistries, as well as state-of-the-art monitoring and control systems.

 

According to John Panichella, president and chief executive officer of Solenis, the company does not anticipate any changes to products, quality or services as a result of the transaction. "In fact," he emphasized, "although the company is adopting a new name as part of this process, we will continue to rely on our proven leadership, industry expertise and market-focused research and development to lead the industry in analyzing and solving water and process challenges and support our customers with innovative products and services, just as we have in the past."

 

In addition to Panichella, the Solenis leadership team includes: Jeff Fulgham, senior vice president and chief marketing officer; Charles Robinson, senior vice president, Hercules Pulp & Paper Division; John Schumann, senior vice president, Industrial Water Division; and Dr. Timothy Wood, senior vice president and chief technology officer. All five executives come from Ashland Water Technologies and bring industry expertise and specialty chemical experience to their new roles. Together, they lead a team of 3,500 professionals working in 118 countries across five continents.

 

Solenis looks to increase its investment in its people and processes as it researches new opportunities to grow the business in the areas of process and water technologies. The company will leverage its industry-focused consultants and extensive technology portfolio to provide comprehensive solutions and create enhanced value for its customers.

 

Stora Enso Acquires US-Based Biotechnology Company Virdia

Stora Enso has acquired 100% of the shares of the US-based company Virdia, a leading developer of extraction and separation technologies for conversion of cellulosic biomass into highly refined sugars and lignin. The upfront debt-free transaction value is approximately USD 33 million (EUR 24 million) with additional potential payouts totalling approximately USD 29 million (EUR 21 million) following completion of specific technical and commercial milestones by 2017. Virdia's impact on Stora Enso's 2014 sales and earnings is expected to be limited.

 

The acquisition of Virdia supports the vision of Stora Enso's Biomaterials Division in becoming a significant player in biochemicals and biomaterials. The technology enables more efficient extraction of different valuable fractions of the biomass, allowing the possibility to develop and commercialise cost-effective renewable solutions to address well-identified market-driven needs. This is a new step in implementing the Division's strategy, following the recent lignin extraction investment at Sunila Mill in Finland.

 

"This acquisition is in line with our strategy of growing in bio-based chemicals, ingredients and solutions, building on cost-effective, non-food-competing raw materials. These solutions will contribute to a more sustainable future by replacing fossil-based materials in various applications with renewable and cost-effective choices. We are now investing in a new technology platform that will enable us to reach new industries and value chains, and create significant sustainable profit growth for our company," says Juan Carlos Bueno, EVP, Stora Enso Biomaterials.

 

Founded in 2007, Virdia is a private, venture-capital-backed company. It runs a pilot facility in Danville, Virginia, USA. The main advantages of its technology are the cost-competitiveness and high purity of the output, which enable a variety of further conversion and upgrading possibilities for sugars and lignin as renewable intermediates for the specialty chemicals, construction, coatings, personal care and food industries, among others.

 

 

McIlvaine Company

Northfield, IL 60093-2743

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