World News
MIDDLE EAST



TURKEY
PMT INSTALLATION IS TURKISH SUCCESS STORY

Following the article in the last issue of Tissue World concerning the Turkish tissue market, PMT Italia has supplied details of the Havat Izmit plant in that country.

The PMT Italia 60,000 tpy tissue plant in Hayat Izmit was startup up according to schedule and reached 230 tpd of saleable paper at the end of December 2005.

The 5.45 m-wide crescent-former PM has an operating speed of 2,000 mpm and is served by two stock preparation lines. It produces tissue from virgin pulp in the basis weight range of 14 - 28 gsm, which Hayat converts into toilet paper, facial tissue and kitchen roll. The machine features an interesting application of a cogeneration plant (CHP), installed by Hayat Kimya, the waste gases from which are used for feeding the high performance hood. This is described as a unique application of a hood that uses all the escape gases from a gas turbine, and in which operational air speed and temperature can be modulated according to the conditions of the gas flows coming from the turbine.

A combining line with four unwind stands with an operating speed of 1800 mpm completes the PMT supply.


EGYPT
Indevco aims to build greenfield tissue mill in Egypt (story contributed by RISI)

Indevco is looking to build a 50,000 tonne/yr greenfield tissue paper plant in Sadat City, Egypt, according to the International Finance Corporation (IFC). A new company, Interstate Paper Industries (IPI), has been set up as a result.

The Indevco group, based in Lebanon, has applied to the IFC for funding toward the project, which would cost an estimated $76.8 million. If approved, the IFC would grant a loan of up to $26.4 million, with the remainder of the financing to come from a parallel loan, a shareholder's loan and equity. The institution, the private sector arm of the World Bank, is expected to reach a decision on the funding later this month.

The new mill would supply jumbo rolls to converters in the Middle East, Europe and Africa. The plant's location has been selected and the city's mayor has approved the mill site. IPI has also begun the process of obtaining the necessary permits for the scheme.

The facility would use domestically sourced recovered paper, with around 30,000 tonnes/yr expected to be bought on the market, as well as imported market pulp, as furnish for tissue paper production. Further details, such as the mill's startup date, are not yet available.

IPI is 99 percent owned by the Indevco subsidiary Frem Industrial Group, with the rest owned by two of its other subsidiaries. Indevco already operates a 33,000 tonne/yr tissue plant in Halat, Lebanon - Unipak Tissue Mill. A new 15,000 tonne/yr machine started up at the site in 2005. Despite the expansion, the IFC said the group is finding it difficult to meet demand, and is therefore looking to build the new facility in Egypt, with most output expected to be exported.


EGYPT
Al Zeina Tissue Mill orders line from PMT

Al Zeina Tissue Mill has contracted PMT Italia to build a 30,000-tpy tissue line for its mill in Cairo, Egypt. The project will be handled on a turnkey basis by PMT and scope of supply will include full engineering (mechanical, piping and electrical) and erection services.

The new 2.75 m-wide crescent former PM will have an operating speed of 2,000 mpm. It will be delivered along with the full range of stock preparation equipment and auxiliary systems including controls, automation and electrification. The 15 ft-diameter Yankee Dryer will be supplied by PMT through its UK subsidiary, PMT Industries Limited, based in Kentfield Drive, Bolton.

A PMT combining line with three unwind stands and winder and a PMT in line calender with an operative speed of 1800 mpm complete the PMT supply. The machine will manufacture tissue from virgin pulp.

Al Zeina Tissue Mill was established by Eng. Abdul Karim Natout. Natout is the Chairman and CEO of Al Zeina Tissue Mill and also the Chairman and CEO of the Egyptian Company for Paper & Hygienic Products "Zeina", one of three key players in Egypt’s tissue converting industry. Al Zeina Tissue Mill is a joint venture with main ownership between Natout and Sultan Bin Mahfouz of Saudi Arabia. Al Zeina Tissue Mill is planned to commence production during the first quarter of 2008 and to expand further into the Middle East’s growing market.



MENA
WARNING SIGNALS FOR MIDDLE EAST/NORTH AFRICA OVERCAPACITY

Contrary to bullish forecasts on the growth of tissue in the Middle East/North Africa (MENA) region published in earlier reports, new evidence is emerging that the oil boom has led to accelerated investment far beyond projected demand growth.

This is according to a recent study by the Nuqul Group examining the forces affecting the industry, which will be presented for the first time at Tissue World 2007 in Nice on 26-29 March 2007. The report suggests the big rise in tissue capacity that will lead to serious overcapacity in 2008, and through 2009-2011.

The increase from recent startups (Nuqul, Tonic, Pyramids, Indevco), projects under construction (ADNP, Crown, Orient, Gulf, Nuqul), and announced projects (Emirates, Zeina and GHI, Saudi Paper, Indevco) will double the region's capacity even before adding the rumored projects in Iran, Kuwait, Saudi and Jordan or increases in efficiencies of existing mills.

Numerous factors such as political conflicts in Lebanon, Palestine, Iraq and Sudan, trade boycott threats against Iran and Syria, as well as poor wealth distribution between rich and poor countries (and within the richer countries themselves), combine to limit consumption growth to levels that in no way can absorb this increase in supply.

Further challenges to the industry come from surplus capacity in Europe and China, an increased demand for non-available waste paper coupled with a similar boom in adding deinking plants, and the expected tightening of environmental constraints imposed by the WTO and lending institutions such as the IFC arm of the World Bank.

With price being the only competitive tool employed, converters that do not make their own paper may be at an advantage in the coming five years, according to the report.