Cellynne increases AfH and retail production capacity

Cellynne: set to double rewinder line capacity

Cellynne has partnered with PCMC to increase the production capacity on its Forte rewinder line based at its Haines City, FL facility.

Announced in July, the new project will more than double the line’s capacity to produce low count package formats such as four roll tissue and one count towel.

The capacity expansion project includes the addition of a second parallel wrapper leg to the existing packaging loop.

At the time of going to press, Marc Allegre, vice president of Cellynne, said: “This capacity expansion will allow us to fully utilise the high cycle rate of our Forte line, and meet more customer demands both in the AfH and retail markets.”

Sofidel Group completes Cellynne purchase

Italian tissue group Sofidel has completed the purchase of Cellynne and raised its production capacity to 1,000,000 metric tpy.

The move to buy the US business was completed on 31 August and marks Sofidel’s entry into the American market.

The tissue producer said it is now entering “the integration and development phase so as to ensure sustainable growth”.

A Sofidel spokesman told TW that the company is planning to keep all of the Cellynne sites. He confirmed that Cellynne has been renamed Sofidel America.

As to whether Sofidel would look to acquire further in America or elsewhere, he said: “At this stage we are working at our best to integrate the new company.”

Chief executive Luigi Lazzareschi said: “This is a strategic investment that we hope will further strengthen our competitiveness and growth, by entering such a market that is full of opportunities.”

Cellynne Holdings produces tissue paper for hygienic and domestic use in the Away From Home and consumer sector.

Court ruling clears way for Shelby plant completion says Clearwater Paper

Clearwater Paper Corporation has said a ruling by the US District Court has allowed delivery of a Metso Paper-supplied TAD paper machine to the company’s Shelby tissue facility by July 2012.

The tissue manufacturer said the decision allows for the completion of the Shelby tissue facility on schedule.

The ruling concerns a lawsuit filed by First Quality Tissue SE, LLC, that “sought to enjoin Metso Paper from delivering a Through-Air- Dried, or TAD, paper machine to Clearwater Paper,” according to a statement from Clearwater Paper.

In a statement, First Quality Tissue said that the US District Court for the District of South Carolina “found that Metso Paper USA Inc. had breached its contract with First Quality Tissue SE, LLC when Metso sold a TAD tissue machine to Clearwater Paper”.

It added: “The court determined that the provision of First Quality’s contract with Metso restricting such sales for a limited period of time was enforceable, and that Metso had breached that provision.”

“The decision allows for the completion of the Shelby tissue facility on schedule.” Clearwater Paper Corporation

The court declined to issue an order stopping the Clearwater sale.

Gordon Jones, Clearwater Paper chairman and chief executive officer, said: “Clearwater Paper is very pleased with the court’s decision to deny the request for injunctive relief and dismiss the amended complaint, and we look forward to completion of our Shelby TAD paper machine facility.”

Once the final components of the TAD paper machine are delivered by Metso Paper, Jones said he expects the company’s Shelby TAD paper machine facility will be completed and begin operations prior to the end of 2012. Metso Paper USA was unavailable to comment at the time of going to press.

Market Pulp: several majors plan $20 NBSK price decline

Amid price erosion offshore and a second straight month of higher producer inventories, leading producers of benchmark northern bleached softwood kraft (NBSK) Canfor Pulp, Domtar, and West Fraser separately announced $20/tonne North American declines effective 1 July.

The price announcements would bring NBSK list prices to $880/tonne. Domtar, the first producer to make a 1 July move, also announced a $20/tonne decline on southern bleached softwood kraft (SBSK) in the USA to $840.

The declines came during a time of erratic NBSK drops in China, expectations that June levels would close down $20 in Europe from a summer slowdown more pronounced than in North America, and a Pulp and Paper Products Council (PPPC) report showing overall producer inventories rose one day-of-supply in May, from April.

The second straight one day increase brought producer stocks to 33 daysof- supply and to the highest level since February, when the industry was coming out of a downturn.

‘The declines came during a time of erratic NBSK drops in China.’

Poll: Stocks up 35,000

The day-of-supply rise corresponded to an estimated 35,000 tonnes, bringing world-20 producer inventories to about 3.9 million tonnes, according to a PPI Pulp & Paper Week poll of industry analysts. That’s the highest tonnage since 4.035m in February.

Still, analysts described stock levels as under control and shipments at relatively healthy rates. It was “modestly better than expected, with year-over-year shipments trending positive … days-of-supply up a day, and inventories balanced at 33 days total,” noted one analyst.

‘No temporary market allowance offered. Some weakness around $900, but not enough evidence to trigger lower number.’

Producer inventories of bleached softwood kraft (BSK) and bleached hardwood kraft (BHK) both gained one day-of-supply to close at 30 days and 36 days, respectively. With BSK stock at a point that’s considered on the high end of balanced and BHK still balanced to even tight, producer contacts said the slight stock addition wasn’t enough by itself to drive down prices. Instead, they attributed it to the decline underway in China.

Asia prices ‘to undercut’ US?

“If China was not so prevalent, industry players would be more focused on macro” issues such as the still-balanced stock levels, according to a producer contact commenting on the world-20 report.

“Now we expect a summer slowdown and expect Asian prices to undercut North American prices, therefore prices will (go) down this summer.”

Because prices are sliding in offshore markets, the US price decrease announcements came as no surprise to buyers that have been jockeying to push for a summer decline in recent weeks and believe the price announcements are meant to manage the amount of erosion.

Some US buyers already began pressing for temporary market allowances this month, with a couple saying they were able to land $880/tonne deals for June. But several producer contacts denied that.

Temporary market allowances?

“No. We got very little pushback on NBSK. We only got it from one contract customer,” said the producer contact.

“We had discussions and it was like we acknowledge there’s some weakness around $900 but there’s not enough solid evidence to invoice you at a lower number. We didn’t offer temporary market allowances and didn’t do any.”

The deals may have come from smaller producers or ones that relied on delivering pulp to Chinese customers, many of which turned to buying NBSK from China’s traders at cheaper prices than from international suppliers.

News from RISI (www.risiinfo.com)

ARGENTINA

Argentina’s Papelera San Andrés de Giles starts up tissue converting line

Papelera San Andrés de Giles has started up a Futura-supplied tissue converting line.

The “Tango” line, as the producer has named the purchase, started in August. Futura said the line “represents the latest breakthrough in high efficiency and value adding technologies”.

In a statement it said: “Tango marks the debut of Futura’s revolutionary JOI 012, which is the first ever embosser to feature a steel marrying roll instead of the industry standard rubber roll.”

It added that the patent-protected JOI Technology will “allow for new nested embossing solutions, with the design flexibility and ease of operation at volumes nearer those associated with point-to-point embossing products”.

The Tango roll is also said to be easier to clean, and requires less pressure to achieve a high standard of lamination.

It also guarantees bulk retention, eliminates re-embossing effects and creates improved pattern definition.

At the launch event for Tango in Lucca (l-r): Alberto Bianchini, president, Futura America Latina; Maximo Gagliardi, owner, Papelera San Andrés de Giles; and Fernando Herkenhoff, managing director, Futura America Latina

Futura’s project manager for the Tango Line, Francesco Pelaia, said: “The industry has for a long time sought to replace rubber with steel, but only now have the technical challenges been overcome: the Tango marrying roll on JOI 012 shows no deflection.”

The Tango Line will be used to produce kitchen towel and toilet tissue. For toilet tissue products, point-to-point configuration is used, and JOI 012 is said to achieve the switch from nested to point-to-point in as little as one hour, compared with a whole shift on conventional lines.

The Tango line comprises two START unwind stands, an INFINITY four colour printer unit, a JOI 012 embosser, a F1 Wind & Seal rewinder, a MOTION log accumulator, a CUT system with trim cutter and log saw and COREMAX, and the coremaking system with flying splice reel change and a core accumulator.

COLUMBIA

Productos Familia works on PM 7 commissioning

Several startup delays have set back Colombian Productos Familia’s 35,000tpy tissue PM 7 project since 2009.

The equipment, installed at its Cajica paper facility, in Bogota city, didn’t begin operations in April 2012 as expected.

At the time of going to press, a company’s source told PPI Latin America that Productos Familia is still working on the PM assembly.

The company had targeted an end of July start-up.

Productos Familia’s new PM was supplied by Voith Paper Brazil and has an estimated cost of over $50m. The project was delayed five times. Last year, PPI Latin America learned that Productos Familia postponed the equipment installation to evaluate a new technology that Voith Paper had offered to optimise the machine’s operations. The new technology, though, didn’t meet the company’s needs, according to a Productos Familia representative.

Due to that, the Colombian producer decided to resume the original project.

The company’s PM 7 will join PM 6 at the Cajica mill, which also manufactures 35,000tpy of tissue papers.

News from RISI (www.risiinfo.com)