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BELGIUM

LPC GROUP BUYS K-C BELGIAN MILL

LPC Group, based in Leicester, UK, has agreed the acquisition of the Duffel Mill in Belgium from Kimberly-Clark, and will take over the mill in August this year. The purchase is the latest move in LPC’s recent European expansion, following on from acquisitions in Sweden and France. LPC Group is already an established market leader in the UK, and is fast becoming a major player internationally with production capacity now over 200,000 tons/yr.

Amin Tejani, LPC’s executive chairman explains: “This is an important step in our expansion plans, and we’re delighted to have concluded the purchase. From our experience of Kimberly-Clark we know we will be getting a highly efficient mill and workforce, whose futures we are pleased to have secured. We now look forward to building on our position as the market leading private label tissue supplier in the UK, offering retailers across Europe the same high levels of product quality and service from our three locations in mainland Europe.”

A key priority throughout the negotiations has been to secure the future of the mill and its dedicated workforce. LPC Group intends to continue to operate the mill under a similar structure, all its business and personnel will be transferred to LPC in August 2007. There are no job losses anticipated as a result of the change in ownership.

Management and sales for Duffel will be controlled from LPC’s European Head Office. LPC will continue to develop both in the UK and mainland Europe. An additional paper machine with a capacity of 60,000 tons/yr. has been ordered for the UK and a similar installation will see LPC’s capacity in Sweden increase by 40% in 2008. Permission and grants have also already been approved on greenfield sites in Germany and Spain, where production is planned to commence by 2010. Capacity and subsequently revenue will more than double in the next three years.

The move represents part of a worldwide restructuring programme for K-C, which plans to sell or close about 20 facilities with about 17% of global capacity, while at the same time boosting capacity at seven other plants in Europe and North America.

KC is expected to reduce its workforce by 6,000 people.

K-C has already sold or closed a number of plants. Those sold are: Villanovetta mill in northwest Italy (25,000 tons/yr), which was bought by Italian company CDM at the end of 2005; Mainz mill in Germany (60,000 tons/yr), which was bought by WEPA Group last year. Plants closed include the Balstahl mill and Reichenberg tissue products plant, both in Switzerland, and the Forcheim converting facility in Germany.



EUROPE

GEORGIA-PACIFIC MAKES CHANGES TO TEAM IN EMEA

Georgia-Pacific has promoted Patrick Legrand and Dominique Deschamps to senior leadership roles within its Europe, Middle East and Africa (EMEA) business.

The company has recently established two fully accountable business units - a Consumer business and an Away-From-Home business, both for EMEA. Legrand, who formerly served as president of Georgia-Pacific France and Belux, has been promoted to president, consumer business - EMEA. Deschamps, previously general manager, Away-From- Home France, has been promoted to senior vice president and managing director, Away- From-Home business - EMEA.

They will report to Kathy Walters, executive vice president - global consumer products who is based in Atlanta. Legrand and Deschamps will lead the business in Europe together with Jeff Koeppel, senior vice president, manufacturing and supply chain - EMEA.

"These new leadership roles will help us create long-term value, accelerate innovation, improve the alignment of the business and position it for future growth," said Legrand.

Legrand joined Georgia-Pacific in 2000 as General Manager for Vania Expansion, Polivé Laboratories - GP's joint ventures with Johnson & Johnson in France - and the international personal care business. In 2006, he was promoted to President, GP France/Belux. He has pursued an extensive international career.

Based in London, he worked for Tambrands as vice president - international marketing covering the EMEA region and Asia Pacific.

He later moved to SSL Healthcare in the UK as managing director. Patrick has also worked for Unilever and Johnson & Johnson. He has a degree from Essec.

Deschamps began his career with the French building materials company, Lafarge, after graduating from business school. He joined Georgia- Pacific in 1991, starting out in Sodipan, the French division for private label and Lotus tabletop. He held various European positions within the company as strategic planning manager and manufacturing planning director before moving to Georgia-Pacific's Great Britain and Ireland business in 2000 as Supply Chain Director and then as General Manager for the UK Away from Home division. He returned to France in 2005 to lead the French Away from Home business.


NEW SPANISH TM ON LINE

Georgia Pacific has started up the new TM3 at its Allo mill in Navarra, Spain. The machine trims at 5.5 m and will run at a maximum speed of 2000 m/min making up to 230 tons/day of tissue based on virgin pulp. Delivered by PMT Italia, it is a Crescent Former unit with a double press configuration.


MCDONALD’S CHOOSE SCA

SCA has won a contract to supply McDonald’s with three toilet paper systems and a kitchen roll product in Germany, France and the UK.

“We are delighted to have secured this deal because every paper manufacturer in Europe would want to be associated with McDonald’s,” says Tom Dudfield, National Key Account Manager SCA Tissue Europe, United Kingdom.

Among the products supplied to McDonald’s is Tork Premium folded toilet paper, a hygienic system designed to ensure that each sheet is touched only by the user. For the kitchen, SCA supplies Tork Vario Roll kitchen rolls among other products.

Previously, McDonald’s hadn’t had a central purchasing policy for tissue products, except for napkins.


ITALY

FOCUS ENCOURAGED BY INTERNATIONAL INTEREST AT OPEN HOUSE

Visitors to an open house held by Focus in Lucca in early June included senior managers from 34 companies, representing tissue makers and tissue machine manufacturers. Focus managing director Fabio Capuano was delighted with the turnout: “For a young company like Focus, this was a very encouraging event, attended by a significant number of international companies. Focus is a member of Faper Group, and there is no doubt that the backing of Fabio Perini creates a level of confidence in the technology. Given the opportunity to demonstrate the technology to the industry first hand helps us to prove that this confidence is well placed.”


SERBIA

RECARD MACHINE FOR SERBIA

Drenik Belgrade has ordered a a complete tissue plant excluding the rewinder from Recard for its mill in Serbia. It will have a capacity of tissue grades when it starts up towards the end of 2008.

The line comprises two stock preparation plants for long and short virgin fibers, a paper machine feeding group, a Crescent former machine with top. operating speed of 1850 m/min and 2750 mm of net width at reel up. It will feature a Yankee cylinder of 16' diameter and a single press of 1040 mm diameter. It also includes all AC and DC motors and other equipment required.

The machine will be the second Recard unit at the mill, according to Lockwood-Post directory. PM1, which started up in 2005, is also a Crescent former machine. It has an identical trim of 2750 mm but runs at only 800 m/min, making 14,000 tons/yr. Orchids Paper record A Recard machine in Orchids Paper Products (Prior Oklahoma) sold for a maximum working speed of 1860 m/min reached an operating speed of 2000 m/min producing toilet paper of 15-16 g/m2 at reel up. For Recard this is the first machine to reach such a speed.


POLAND
HANKE TISSUE PLANS THREEPRONGED REVAMP

Poland’s Hanke Tissue has launched on a programme of changes to its production profile with the aim of improving company performance.

Notably, it has decided to stop producing of toilet paper and kitchen rolls and to focus its efforts exclusively on napkins. It intends to specialize in small consumer packs, white, with decorative color and design printed. The production will be concentrated on Hanke’s own brand, aha…®, but part of the company’s converting capacity will be dedicated to AFH type napkins.

Secondly, it is planning a major investment in its paper machine, adding a new hydraulic headbox. The investment programme starts in the northern hemisphere autumn and should be completed by spring 2008. This investment will give us a better quality control, improve the tissue profile and, most importantly, will increase our tissue production capacity by 15%. PM3 produces white tissue mainly for printing, pastel and deep colors in wide range. A large part of the tissue output is intended for selling.

Thirdly, it is planning a major investment in our converting plant. “We are planning to develop our capacity for the design printed napkins by purchasing also in autumn another printing machine. It’s going to be a modern eight-color machine which will increase our design printed product portfolio as well as will allow us to achieve more complicated and demanding designs,” according to a company spokesman.


FRANCE
METSO PAPER STEPS UP SERVICE OFFERING WITH MAJOR INVESTMENTS

Metso Paper has announced a series of expansions in its service operations in Europe and China and made an acquisition in France.

In Zaragoza, Spain, Metso Paper inaugurated a new roll service center on 26 February. The new center is a joint venture between Metso Paper and SAICA (SA Industrias Celulosa Aragonesa) and will serve pulp, paper, tissue and boardmakers in the Iberian Peninsula. At the new Plattling Papier paper mill in Germany, Metso Paper will establish and operate maintenance services through its Scandinavian Mill Service (SMS) subsidiary. The mill is scheduled to start up in the first quarter of 2008.

The agreement covers both the establishment of a maintenance infrastructure, such as building up an organization and computerized maintenance management system, and the maintenance operations themselves. The operations consist of roll maintenance and daily maintenance, the focus being on preventive and predictive activities. SMS will be responsible for mechanical, electrical, automation and civil maintenance for the entire mill.

Improved service in China
In China, where Metso Paper has supplied a large number of new production lines and machines in recent years, the company will establish its second service center. To be located in Guangzhou, Guangdong province, the new center will provide advanced machinery maintenance and process development services to the pulp and paper making industry in southern China.

The new greenfield service center will be operational in 2008.

The Guangzhou center will feature a fully equipped roll service workshop providing rolls, roll covers as well as mechanical roll maintenance for all makes and sizes of pulp and paper machines. In addition, the center will offer a full scope of spare part and mill site services.

Also in China, Metso Paper is extending its Wuxi service center. Located about 100 kilometers west of Shanghai in Wuxi, Jiangsu province, the Wuxi service center provides advanced machinery maintenance and process development services to the Chinese fiber and paper industry.

The new extension will double the roll service capacity of the Wuxi center to serve a wider customer base and to offer more flexibile and faster service. The extension will be completed in October 2007. The Wuxi service center, inaugurated in September 2001, began operations with 60 employees. The number of employees has now reached over a hundred and will grow further with the extension.

Acquires French company
Metso Paper has agreed to buy Mecanique et Depannage Industries (MDI), a French maintenance company. MDI is owned by three private individuals and it is located in Venicel northeast of Paris. The purchase price was not disclosed. Ownership of the company will transfer to Metso immediately.

Mecanique et Depannage Industries employs 30 people and supplies maintenance services for the French paper industry.