Pulp and Paper

UPM Paso de los Toros pulp mill

UPM's Pulp Mill in Paso de los Toros, Uruguay, Ready for Start-Up

April 3, 2023 - The new UPM Paso de los Toros pulp mill has reached the technical readiness to start operations. UPM has also received the environmental authorities' acceptance of all the procedures, systems and technologies that are required to fulfil the environmental permit of the mill. This approval precedes the final operating authorization, which is expected to be received in a few weeks. UPM will announce when the authorization is received, and operations can start.

First customer deliveries are expected to start within the first month following the start-up.

"The finalization of UPM Paso de los Toros completes our transformative growth investment in Uruguay," said Jussi Pesonen, CEO and President of UPM. "Over the years, UPM has created a highly competitive industrial platform with sustainable, secure wood-supply and efficient logistics in Uruguay. This offers a competitive and secure pulp supply to new and existing customers and helps meet the growing need for renewable materials.

"With an over 50% increase in UPM's current pulp capacity, this investment creates a step change in the scale of our pulp business and UPM's future earnings. It also has a significant impact on Uruguay's economy and creates significant opportunities for the people and communities," he said.

In addition to the pulp mill, the overall investment of USD 3.47 billion includes a deep sea-port terminal in Montevideo, a new eucalyptus tree nursery and local investments in infrastructure and facilities. All of these are already completed and in operation.

Bernd Eikens, Executive Vice President of UPM Fibres, explained, "The Paso de los Toros pulp mill with its annual production capacity of 2.1 million tonne of eucalyptus pulp puts us among the leading pulp suppliers in the world. We now have a balanced asset base and wood supply in two hemispheres. With two pulp mills in Uruguay and three pulp mills in Finland, we have a strong offering of sustainable hardwood and softwood pulp for our customers."

With the expected cash cost level of approximately USD 280 per delivered tonne of pulp that UPM can now confirm, the UPM Paso de los Toros will be one of the most competitive mills in the world and enables attractive returns for the investment in various market scenarios.

The Uruguayan environmental authority has monitored the construction of the mill on site throughout the project. The operating authorization process has included several inspections during the commissioning phase by the authorities, as well as third party audits by industry experts. UPM has submitted all permit requirements and an extensive environmental monitoring program covering water and biota, air, soil, noise, and socio-economic aspects. In addition, UPM has all the required permits in energy, municipality, transportation, fire department and industrial regulations.

"The UPM Paso de los Toros pulp mill represents the latest, best available technology and the mill has gone through comprehensive and thorough permitting processes to ensure safe and sustainable operations," Pesonen said. "I am extremely proud of the UPM team that has carried out this entire strategic growth project with determination and integrity."

Through the growth investment, UPM and its subcontractors will create 4,000 new jobs through the value chain, as well as approximately 6,000 induced jobs and a 2% increase in GDP for the Uruguay economy.



Lucart logistics hub in France

Lucart Invests in New Logistics Hub in Saint-Diè-des-Vosges, France

March 27, 2023 - As part of its planned investment plan in France, Lucart announces the acquisition of a logistics hub in the Hellieule business park in Saint-Dié-des-Vosges. The logistics hub will be fully operational during the first quarter of 2024 and improve the storage and shipping capabilities of products manufactured by Lucart’s tissue mill in Laval-sur-Vologne.

In 2022, the mill produced 65,000 tonnes of high-quality tissue paper per year.

The new logistics hub located in the Hellieule business park is a 22,000-square-metre building built on 10 hectares of land with a storage capacity of 20,000 pallet columns. The site was created to concentrate finished product stocks before they are shipped to customers in France, Germany, the Benelux and Northern Europe.

The large area will allow for future expansion of the logistics hub to support the company's expected growth.

Located a few kilometres from the town of Saint-Dié-des-Vosges and close to the main roads of the Lorraine region, the new Lucart site is expected to also simplify logistical flows improving the quality of end services to customers.

"The acquisition of this new site marks the turning point in our project to create a new logistics hub,” said Alessandro Pasquini, President of Lucart’s French subsidiary. “Before opening it, we need to adapt the facility to meet our specific operational requirements. We are very happy with our new operational site that will work in synergy with the Laval-sur-Vologne plant.”

The plant is equipped with two paper machines for the production of tissue jumbo reels made of virgin cellulose and recycled paper, a converting facility with nine production lines and an in-house process water treatment plant. The site is the benchmark in France for the recycling of bonded material beverage cartons for making 100% ecological Fiberpack® tissue paper.

Lucart is a leading European manufacturer of tissue products such as toilet paper, paper towels, and napkins, and airlaid and machine-glazed paper. Lucart's production capacity is over 395,000 tons per year of paper on 12 paper machines.

SOURCE: Lucart


Pactiv Evergreen Canton Mill

Pactiv Evergreen to Close Canton, North Carolina, Pulp and Paper Mill

March 7, 2023 - Pactiv Evergreen on March 6 announced plans to take significant restructuring actions related to its Beverage Merchandising operations. The Company expects to close its Canton, North Carolina mill and its converting facility in Olmsted Falls, Ohio with operations at both facilities expected to end during the second quarter of 2023.

Pactiv Evergreen did not disclose the production capacity of the Canton mill, however Beth Kelly, Director, Communications said the mill has four paper machines.

Production from the Olmsted Falls facility will be reallocated to other sites, Pactiv Evergreen said.

The company also continues to explore strategic alternatives for its Pine Bluff, Arkansas, mill and Waynesville, North Carolina, facility. The Company has not set a timetable in relation to this process.

In addition, Pactiv Evergreen plans to reorganize its management structure by combining the Beverage Merchandising and Food Merchandising businesses effective April 1, 2023.

"As we continue to confront a challenging market environment for our Beverage Merchandising business, we are faced with these difficult decisions that directly impact our employees," said Michael King, President and Chief Executive Officer of Pactiv Evergreen. "We assess all changes to the business with considerable thought for our employees, customers, shareholders and communities, and do not take these decisions lightly. We remain committed to doing what's right, treating everyone with respect, and delivering on all of our commitments to our people, customers, shareholders and the communities where we operate."

Approximately 1,300 positions will be eliminated as a result of these actions. Pactiv Evergreen said it will provide outplacement assistance and severance to impacted employees, consistent with its policy and labor union agreements.

As a result of the closures and change in management structure, Pactiv Evergreen expects to incur non-cash charges in the range of $310 million to $330 million primarily during 2023 related to the acceleration of depreciation of plant and equipment and other asset impairments. The company also expects to incur and pay cash charges in the range of $130 million to $185 million primarily during 2023 and 2024 related to severance and associated benefits and exit and disposal and other transition costs.

Pactiv Evergreen noted, "All the above estimates are provisional and include significant management judgments and assumptions that could change materially as we execute our plans. Actual results may differ from these estimates, and the execution of our plan could result in additional restructuring charges or impairments not reflected above."

Mr. King, concluded, "The strategic actions we are announcing today will reduce our capital expenditures and overhead costs. We expect these proactive steps to position us to remain competitive in the liquid packaging market and gain additional synergies from the further integration of our businesses. We are targeting an annualized reduction in our costs of approximately $30 million and a reduction of approximately $50 million in capital expenditures, with full annualized run rate of these benefits expected to be realized beginning in 2024."

SOURCE: Pactiv Evergreen


Bracell electric truck

Bracell Adopts the Use of a 100% Electric Truck for Pulp Transport

Feb. 24, 2023 – Brazilian pulp producer Bracell has started the year with an innovative project — the use of an electric truck to transport pulp.

According to Bracell, the initiative is unprecedented in this type of operation with heavy vehicles (trucks weighing more than 40 tons) and it is estimated that the company will avoid the emission of 132,000 kg of CO2eq per year from a single truck. In this way, the company reinforces its commitment to sustainable development in all its operations, processes and activities and expands its actions aimed at sustainability also to the logistical stage of the production chain, contributing to the reduction of carbon emissions and the fight against changes in weather.

The electric truck will transport pulp on the stretch between the plant, located in Lençóis Paulista (Central West region of the state of São Paulo) and the Intermodal Terminal in Pederneiras (São Paulo), using the Juliano Lorenzetti (LEP-060), Osni Mateus (SP-261) highways up to the access road municipality, in Pederneiras.

In the pilot project, the Bracell hopes to understand the performance of the electric motor in uphill stretches with load, time and necessary amounts of charging and maintenance, in addition to economic and environmental gains.

Alberto Pagano, head of Supply Chain at Bracell, pointed out that another differential of the vehicle will be the use of renewable energy, produced by the company itself, to recharge the truck’s batteries.

“It is a pilot project that reiterates the company’s commitment to the sustainability of the business.” Pagano said. The use of the vehicle brings benefits for the climate and also for the entire community.”

With headquarters in São Paulo, Brazil, Bracell has a production capacity of 500,000 tons of special soluble cellulose per year in Bahia and 250,000 tons of kraft pulp per year in São Paulo.

SOURCE: Bracell


Kemi board mill

Metsä Board Concludes Logistics Agreements for Kemi Board Mill in Finland

Feb. 2, 2023 - Metsä Board has concluded a logistics agreement with Kuljetusliike Kalevi Huhtala Oy for transport between the Kemi board mill and Ajos harbour, in Kemi. All exports from the Kemi board mill will be centralised in Ajos.

"Efficient export logistics is a key factor in paperboard production. We require efficient and low-emission solutions from our chosen partners in logistics," says Timo Ahonen, VP, Kemi Board mill.

The signed agreement is a continuation of an agreement signed earlier by Metsä Group for the transportation of products from the bioproduct mill under construction in Kemi, and has a part in ensuring efficient and environmentally friendly logistics solutions between Metsä Group's Kemi integrated mill and the Ajos harbour. Transport under the contract will start on 1.4.2023.

About Kemi Board Mill

The Kemi board mill is located on the shores of the Bothnian Sea, in the Kemijoki delta. The mill is a leading manufacturer of premium white-top kraftliners, which are used as surface liners in consumer, retail and shelf-ready corrugated packaging. The mill has the capacity to produce 425,000 tonnes per year of kraftliner.

The pulp and energy required by the mill is supplied by Metsä Fibre's pulp mill on the same site. The strong synergies of the integrate will also support the development of the mill in the future. An ongoing development program will increase the annual krafliner capacity by approximately 40,000 tonnes. A Metsä Fibre bioproduct mill is being built on the site with start-up expected in 2023.

SOURCE: Metsä Board

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