Brazil's consumption of tissue has grown at around 4%/yr over
the past 10 years,
from 524,000 tons in 1996 to 768,000 tons in
2006, according to
Voith Paper. Of this, some 75% is consumer
tissue, with the remaining
25% institutional (AfH) consumption.
Per capita consumption
today is around 4.2 kg but there are large
regional differences.
In São Paulo, for example, consumption is estimated
at 12 kg, while in
large undeveloped areas of the country it is virtually
zero.
Capacity is continuing
to grow rapidly. Mili
leads the way, having added a new machine
in 2008 and with another
on the way this year. Current capacity on
five machines is put
at 90,000 tons/yr on five machines and will rise to around
120,000 tons when the
new machine comes on stream.
But Mili, while it
has now taken the No 3 spot among the country's
leading producers,
is not alone in adding new capacity (see Table). In an
article in this issue
we report on Propaper's new mill, which started up in
late March this year.
More are recently started or on the way, giving Brazil
plenty of new capacity
to supply growth in the years ahead.
Melhoramentos to sell
Brazil assets to CMPC
One of the most significant
events of the year in the Brazilian industry
is the recently-announced
takeover of Melhoramentos by CMPC, South
America's leading tissue
producer as well as a major player in global pulp
markets. This deal,
which came about after lengthy negotiations - this
year's talks were not
the first between the two companies - give CMPC
a major share and potential
stepping stone in the Brazilian market.
The transaction price
is Real120 million (about $55 million) and is
subject to adjustments.
CMPC said the transaction provides an asset value
of $162 million and
a disbursement of CMPC Tissue of $55 million, as
the figures agreed
to are expressed in local currency at a rate of Real 2.2
per dollar. The value
excludes debts assumed by the acquirer.
The move is part of
a CMSP and Melpaper restructuring plan, which
recommended the paper
business divestment. The sale includes all
Melhoramentos' paper
assets in Brazil, two tissue mills in São Paulo state
- at Mogji Das Cruzes
and Caieiras - with total capacity of 75,000 tons/yr
on three Voith machines.
CMPC reports it has
existing tissue capacity of 310,000 tons/yr at two
mills in Chile and
two mills in Argentina, one of which is the largest in
South America. It also
has plants in Peru, Uruguay, Colombia and Mexico.
Bradesco BBI SA bank
was the exclusive financial assessor for this
transaction and Xavier,
Bernardes and Bragança Attorneys Society was
the legal assessor.
In August 2008 the
mill installed a new
high-efficiency hood from Novimpianti in Moji
Das Cruzes. The machine,
PM9, has a 4.5 m diameter yankee dryer, 2.8 m
paper width and runs
at up to 1600 m/min. With the new hood and
air system, it can
make 140 tons/day. Air is blown in at 520°C and natural gas or kerosene is used as fuel.
The equipment
was made in Italy and
preassembled and tested
before shipment. Shutdown and installation took
just six days, according
to the supplier. During commissioning,
a significant saving
on specific heat and steam consumption was registered as a result
of accurate energy optimization.
At the same time paper
production increased, which significant surplus
evaporation capacity
still remains.
News from RISI(www.risiinfo.com)
Carta Industrial to build
tissue mill
On 16 March, Carta Industrial,
owned by Carta Fabril, signed an
intention protocol with
the government of Espírito Santo state, Brazil, to
install a tissue paper
mill in the municipality of Barra do Riacho, close to
the Aracruz Celulose
pulp mill in the same location.
The new tissue paper
mill construction is scheduled to begin at the
end of 2009 and will
require an investment of Real 276 million ($120
million). Carta Industrial
plans to start up the plant at the end of 2011.
The mill will have a
capacity of 30,000 tons/yr of tissue paper, but might
be expanded to 120,000
tons/yr on four paper machines by 2018.
Carta Fabril, 100% owned
by the Coutinho family, runs two mills,
one each at Anapolis
and São Gonçalo. Each makes 21,000 tons/yr of
tissue on two paper machines,
according to RISI's Lockwood Post Directory.
News from RISI(www.risiinfo.com)
TW
