Tissue World Magazine
 

 
FEATURES
AUGUST / SEPTEMBER 2009

Operation Report: Intertissue maintains pace

Intertissue, Sofidel’s UK arm, has a problem – but it’s a good one. Its entry into the UK market over the past few years has been so successful that it is now short of paper from PM1 that started in August 2006 at its state-of-the-art Baglan Bay mill in South Wales

“When we started PM1 in August 2006 we were selling quite a bit of the paper as jumbo rolls,” says Giuseppe Munari, Sofidel’s UK Country Operations Manager. “But now we are only selling a very small amount. Instead, as demand for our converted products has rapidly grown, we are actually buying tonnage to serve the UK market.”

Sofidel began considering a UK tissue making plant in 2002. The group has expanded rapidly from its base in Lucca, Italy, over the past decade to become a pan-European organization with operations in France, Poland, Germany, Turkey and Spain.

Thus in 2003, to get its foot in the UK market, it started a small converting plant in Cardiff with two lines for toilet tissue and household towels. The strategy, which is fairly common when entering a new market, was to use the converting lines to build market awareness.

“We wanted to develop in the UK market,” says Munari. “So the Cardiff plant, which we operated on the site of an old Arjo Wiggins paper mill, was an effective way to introduce ourselves to the UK customers. It was very valuable in demonstrating our capabilities as a supplier to meet the particular requirements of the UK such as delivery timetables, reliability and quality goals.”

After looking at various sites around the UK, Sofidel chose South Wales at the Baglan Bay Energy Park, just west of Cardiff near Port Talbot. The location, Munari says, is ideal as far as reaching the population centres in the UK via the motorway network. London is less than three hours away, with Birmingham two hours by road and Manchester about four hours distant. In addition, although it is not presently being used, there is a railway connection available to serve the mill in the future. Also Swansea port, on the Bristol Channel, makes for easy sea transport of incoming pulp and other raw materials.

The company was welcomed by the local community and Sofidel was actively encouraged by the Welsh Development Agency to come to Baglan Bay, which is located on the site of an old steel mill. The area has lost many jobs over the past decades as those plants have closed down and the possibility of the tissue mill bringing over 300 jobs motivated the authorities to support the project.

One aspect of the site which made it particularly attractive was the possibility to get energy from a combined new generation heat and power (CHP) plant located next to the site on the old BP chemical plant which closed down in 2004. The 500 MW CHP unit was a demonstration plant built by GE to offer efficient energy to Baglan Bay. Thus the name: Baglan Bay Energy Park. As tissue making is an energy intensive process, it made a lot of sense to use this source for Intertissue’s power requirements.

 

Delays In Civil Works

So in 2002 Sofidel decided that the Baglan Bay Energy Park was the ideal location for its UK tissue operations. The original plan was for a paper machine to start in 2005. However, various unforeseen issues delayed the project by almost one year. There were complex negotiations, which were started with BP and ended with GE which in the meantime had taken over all BP’s assets, for guarantees of utilities, water, gas and electricity to the site, as well as concerns about the environmental soundness of the site that necessitated remediation work.

There was also the potential for flooding at the 320,000 m2 mill site next to the Bristol Channel, which is famed for its large 15-m tidal swings. The risk was addressed by moving about 250,000 tons of sand to raise the ground level by about 50 cm.

Finally after all the ground work, the paper mill construction started and the paper machine started in August 2006. “Within 20 minutes we were making saleable paper,” says Munari. “It was an incredible start-up; we simply threaded the tail through the machine, made a few checks and were making quality paper. It could not have been better.”

 

Visconip Development

The machine is a Metso DCT 200 TS that is designed to run at 1900 m/min. It includes the world’s first ViscoNip press, part of a joint development effort between Metso and Sofidel to prove the viability of the new technology. The press trials ran for about two years and since July 2008 it has been swapped out to allow full scale comparison with a standard configuration, says Munari.

 

Sofidel’s flagship brand Regina in the XXL version


Regina Blitz


Regina Chamomile

The machine is running very well with production reaching 57,000 tons in 2008 and it is on target for about 60,000 tons in 2009. The grammage range of the tissue is 14.5-22 g/m2 for toilet paper, household towel and facial tissue. Paper from the PM is fed to the modern converting area which includes major lines and equipment from Perini, W+D, TMC, Pulsar, E80 and MacWrap.

For the future, a second paper machine is being considered as planning permission was originally already granted for two paper mills from the local authorities. However, there is at the moment no definite timetable for the project, though Intertissue wants to be ready. With the mill using more paper than the present paper machine can supply, it makes sense to build a new source of supply rather than importing jumbos from other Sofidel mills or buying tonnage on the market.

 

Clean Modern Mill

The Baglan Bay mill has to be one of the most modern and clean tissue mills in the world. Housekeeping, as well as safety, are top priorities and it shows in the appearance of the mill.

Waste management is also a top priority. For example, dust collected from the dust collection systems in converting and paper mill is sold to a local producer of pellets for use in heating. Old pallets are reused, scrap polyethylene packaging and wrapping film is recycled for production of new poly pellets.

“We take the environment very seriously,” explains Munari, “and want to do our best in reducing landfill and waste generation. In addition, we get paid for some of these waste streams so, instead of paying for disposal charges, we are actually earning money on the activities. It’s a win-win situation.” Intertissue is also completing the process to get the Enviromental ISO 14001 and the Occupational Health and Safety Assessment Scheme OHAS 18001 Certifications within the current year.

 

Energy High Priority

Sofidel is also taking an active role with the WWF Climate Savers Program being the first Italian company admitted to the program with companies such as Nokia, Coca-Cola, Tetrapak, etc. Thus it has made energy savings and reduction of CO2 emissions a top priority at Baglan Bay as well as in all its other plants.

With a major focus on energy over the past few months, Intertissue has been able reduce power consumption by nearly 15% in 2009 compared with 2008. By taking a very close look at the process and fine-tuning operations, the mill has achieved energy savings without any drop in quality. Again, says Munari, it is positive for both the environment and the bottom line to be taking these actions and cutting energy use.

For the future, Intertissue is actively working on a project to install high-efficiency wind turbines for electricity generation at the Baglan Bay site. It is a windy area and the potential for producing green energy is significant, says Munari. Thus a plan is underway to evaluate the installation of two 2.5 MW wind turbines that would be about 120 m high and could make up to 10,000 MW/yr. This too would lower the carbon footprint while saving money. There is public opposition to wind power in the UK, making Munari a bit uncertain if the company will get permission to go ahead with the plan, though.

 

Results Above Expectations

Overall, after nearly three years since the paper machine started, Munari says Intertissue is well above its budget and plans as far as market development goes. “Obviously, we have been successful with our entry to the UK market. We have very rapidly gained significant market shares with our Nicky brand which we introduced when we were running at Cardiff. Since we have moved to Baglan Bay we have also introduced our top brand Regina in the market. Considering how it’s performing we believe it will largely overtake Nicky’s success. We also have gained a lot of business in the private label area.”

Intertissue’s product mix is about 60% private retailer labels and 40% its own brands at this point. The priority is to grow the proportion of brands, with Regina, Sofidel’s flagship brand across Europe, getting the biggest push.

The geographical region covered by the mill includes all of the UK and Ireland. To serve customers the company has set up a sales force which separately covers the Regina, Nicky and private label lines. The idea is reach the retailers with dedicated sales forces. “It costs extra money to have separate sales teams for each brand as well as the private label business but we see it is worth the investment,” explains Munari. “We are selling well and the sales teams are all working well. We have good results and no confusion about which line should be pushed harder than the other.”

With plenty of space for a second, and even a third paper machine, it seems Intertissue will continue to grow in the UK market based on its impressive Baglan Bay mill.