Cascades increases sales by 23% following higher selling prices
Cascades Tissue Group has boosted its U.S. Private Brands business after it purchased a rewinder for its plant in Pittston, Pennsylvania (pictured above).
Suzanne Blanchet, president and chief executive at Cascades Tissue Group, said: “To face the growing demand from retailers for our private labels, which are made almost entirely of recycled fiber, we decided to modernise our plant by investing 8m dollars towards the acquisition of a new rewinder.
“By enhancing our capabilities and the quality of our products, we look to better serve our customers and secure our position in the industry.”
The rewinder is manufactured by Fabio Perini, and means that Cascades has now added robotics along with pack and shipping configurations to its services.
The Mile 5.1 model also has an additional advantage for retailers by providing retail ready packaging, which reduces the need for additional store labour.
Cascades reported a sales rise of 23% to $991m in its second quarter results, mainly on the back of higher selling prices.
The company still saw a drop in EBITDA to $62m, but was encouraged by signs of an upturn with tissue paper operations especially recording an improved financial performance.
Cascades announced its results to June 30 2011 on 10 August, and said it plans to increase the selling price of its tissue paper in the next quarter.
Alain Lemaire, president and chief executive, said: “Following a challenging first quarter, we are encouraged by the fact that our results have started to rebound in spite of the rise of several of our costs, including recycled fibre, the appreciation of the Canadian dollar and continuing weak demand for packaging.
“Three of our four segments, and more particularly our tissue paper operations, experienced an improvement in their sequential financial performance.”
The company has also taken steps to significantly improve its profitability and has divested its Versailles (Connecticut) and its Hebron (Kentucky) boxboard facilities, and also closed its corrugated box plant of Leominster (Massachusetts).
Lemaire added: “We will continue implementing optimisation programmes to support the progress observed in the past three months.”
The rise in sales were partly offset by the 6% appreciation of the Canadian dollar, the impact of the divestiture of one of its containerboard mills and lower shipments in packaging operations.
The net loss excluding specific items amounted to $6m ($0.06 per share) in the second quarter of 2011 compared to net earnings of $26m ($0.27 per share) for the same period last year.
Lemaire added: “Looking ahead to the next quarter, demand should slightly improve along with seasonality. In addition, we should benefit from the current and future implementation of selling price increases in our tissue paper, specialty products and North American boxboard segments.”
Hergen targets small tissue manufacturers with HCF 800 Smart launch
Hergen has targetted small tissue manufacturers with the launch of the HCF 800 Smart tissue machine.
The Brazilian company said the new low investment machine offers production of high quality light-weight tissue and is designed for small tissue mills as well as paper converters that plan to start their own tissue production activity.
Emilio Purnhagen, executive director, said: “This tissue line concept is quite simple, and the machine includes stock preparation that is designed to process virgin pulp.
“This results in a system that only takes up a small area, and it also guarantees high quality products that have small energy requirements.” The machine has a Crescent Former that is equipped with a headbox.
It also has a front lift frame former section, a suction press roll, a fabricated steel ribbed mini Yankee dryer and special gas fired hood AeroDry, which is Hergen’s latest design for tissue paper drying.
The machine was designed to produce 35 tpd and it works on a basis weight range from 13 to 28 g/m3, with speeds up to 800m per minute.
Purnhagen said: “It is a very low investment machine and it is able to produce high quality tissue that achieves all required market standards.”
He added that one of the most important characteristics of the machine is low building costs.
“This is very important for paper mills that have space limitation, and also results in a drastic reduction in the investment required for a new build.
“Another key benefit is that all components are designed to fit standard containers that significantly reduce the transportation cost from Brazil to any destination worldwide.”
Hergen is also developing the HCF-800 Smart Plus machine that has a similar concept. It is equipped with a 2500 mm Steel Yankee that has a gross production of 45 tpd.