Latin American tissue paper market increases 4.7% in 2011; 400,000 tonnes of new output expected
(RISI) – Even being pessimistic, around 400,000 tonnes of tissue paper capacity will be added to the Latin American market through 2016 – considering projects in course and potential ones.
This conservative scenario might change, according to sources, as the region’s tissue paper demand growth outlook is very positive.
“Only Brazil is able to accommodate five new double-width tissue PMs by 2016 with 60,000 tpy of capacity each,” Voith Paper South America’s president, Nestor de Castro Neto, told RISI.
RISI’s Latin American Pulp and Paper Forecast shows that the region’s tissue market has been marked by very solid growth this year.
Following the healthy developments in 2010, the region has ignored the modest results in economic growth and is expected to increase by 4.7% this year versus a 3.1% increase rate in 2010, which will mean an additional 151,000 tonnes of tissue paper.
Tissue capacity is expected to increase 4.2% annually in the next five years to near 4.9m tonnes at the end of 2016.
Brazil will receive most of the investments and see the largest gain in capacity – 347,000 tonnes in the period – as it continues to supply growing domestic demand.
RISI forecasts that the tissue sector in Latin America will increase 27.7% from 2011 to 2016, or by 941,000 tonnes.
The region’s tissue per capita consumption is expected to average 7 kg in 2016, compared to 3.3 kg in 2000 and 5.2 kg in 2010.
“The region is now in the phase where growth tends to accelerate with a widening variety of tissue products being used, as the population and emergent markets reinforce its development potential,” RISI economists say.
Data from the Brazilian Pulp and Paper Assn (Bracelpa) shows that the country’s apparent consumption of tissue paper improved 6.4%, reaching 802,000 tonnes through October 2011 compared to the same period of 2010.
Domestic sales increased at a similar pace of 6.3% to 798,000 tonnes while production went up to 802,000 tonnes, a 6.5% annual growth rate.
In October, Brazilian tissue paper use moved up 2.5% over a year ago, totalling 81,000 tonnes.
In Argentina, tissue paper apparent consumption accounted for 212,964 tonnes through September, a 2.2% drop from last year’s levels, the local pulp and paper producer’s assn (AFCP) stated.
‘The biggest 2011 growth is expected to be seen in Chile, with an 18% increase.’
According to RISI’s analysis, the country goes in the opposite direction to the rest of Latin America as its tissue demand is on pace to drop 2% in 2011.
The biggest 2011 growth is expected to be seen in Chile, with an 18% increase, a compensation for the poor results achieved in 2010 when an earthquake hit the country in late February and undermined the market during the year.
Mexico and Brazil as the two largest markets will provide tissue companies with the main opportunities for expansion, although long-term market growth is also expected to be strong in Argentina and Colombia.
These four countries together will comprise 55% of the regional growth in the next five years as a result of increasing per capita income, which will encourage the upgrading of product quality, according to the RISI’s Latin American Pulp and Paper Forecast. News from RISI (www.risiinfo.com)
September PM start for Gorham
(PPI Pulp & Paper Week) – Gorham Paper and Tissue, under new owners Lynn Tilton and Patriarch Partners, said that its new tissue paper machine is set to begin operations in September 2012.
The 30,000- 35,000tpy PM would produce parent rolls that would be sold to converters that make private label tissue products.
The $35m, 100tpd machine was purchased from an Italian supplier, and will produce napkins, toilet paper, and paper towels Gorham’s PM is the 11th new machine planned or started in the USA since December 2010 and through first half 2013 that would raise North American tissue paper capacity by 585,000tpy to almost 10m tpy. The capacity expansion is driven primarily by retail demand for more ultra and premium quality products, and private label product, especially towels, contacts said.
Six of the 11 new PMs from Clearwater, First Quality, Gorham, Irving, and Kruger are largely or fully directed at private label production, and four or potentially five will make parent rolls for the open market — ST Paper, Florelle, Gorham, ST Paper, and South Carolina Tissue (SCT) — contacts said.
US capacity run
The capacity run began in 2010, when Procter & Gamble in Utah and Irving in Fort Edward, NY, began new through-air-dried (TAD) PMs.
First Quality started a TAD in Anderson, SC, late last year.
In sequence going forward, based on plans and contacts, Gorham in New Hampshire, First Quality in Anderson, Florelle in upstate New York, and ST in Franklin, VA, could start PMs in third quarter 2012; and Kruger in Memphis and Clearwater in Shelby, NC, in fourth quarter 2012.
In first quarter 2013, Wausau Paper in Harrodsburg, KY, and SCT in Snelling, SC, plan PM startups. News from RISI (www.risiinfo.com)
PCMC promotes Steve Kemp to president
Paper Converting Machine Company (PCMC) has promoted Steve Kemp to president of the company’s Green Bay, Wisconsin operations.
Kemp has more than 30 years of industry experience and most recently served as Paper Converting’s vice president of sales and service in Green Bay.
He is now president of all US-based PCMC operations and has global responsibilities for the company’s printing and nonwovens product lines.
He told TW that PCMC is committed to building “a great manufacturing company” that is focused on its people and customers.
Key challenges are to continue to build partnerships that help customers be successful in their competitive business environments.
He said: “PCMC must continue to be responsive with technology to produce the ever changing consumer products regarding configuration , performance, and enhancements.
“Our focus must be to engineer operating simplicity to increase performance windows, expand product ranges and reduce changeover requirements while at the same time increasing overall line throughput.”
Kemp added that, in general, the challenge for the tissue and converting industries is that historically it has been and continues to be a very capital intensive industry.
He said: “New papermaking and converting equipment is more efficient and higher quality, but that comes with a cost.
“The cost of raw materials, technology, and even the fluctuating value of world currency can make for difficult business decisions when evaluating new opportunities.”
PCMC supplies high-performance converting machinery to the global tissue, nonwovens, package printing and envelope manufacturing industries.
ABB launches new generation of actuators
Power and automation technology group ABB has launched the next generation of Weight xP extended profiling actuators to help customers reduce costs.
The Dundalk, Ireland-based company said the actuators help achieve the lowest possible cross direction variability.
High-speed positioning means that paper manufacturers can achieve faster grade changes and faster recovery from process upset.
Steven St. Jarre, head of sales and marketing for ABB Quality Control Systems, said: “With the new Weight xP’s technology, mills can achieve faster recovery from grade changes and process upsets that they need to keep productivity at high levels.
“It helps reduce variability, improves product quality, reduces possibility of sheet breaks and also improves moisture profile.”
He added that the reductions in variability allow for shifts in quality targets that can save fibre and energy costs.
It is the latest generation of ABB’s xP profilers. The Weight xP family of actuators includes the Slice xP, Dilution xP and Coat Weight xP systems that are based on ABB’s experience in applying actuators on more than 25 different manufacturers of headboxes and coaters.
The actuators feature patented and patentpending technology that eliminate the dependence on a physical position sensor.
St. Jarre added: “The actuators achieve their new position in one continuous and fast movement, reducing the time needed to make control actions.”
In addition, the patented power management scheme allows simultaneous movement of actuators at all times, even during flush cycles, global setpoint changes, or even if one power supply has failed, providing papermakers with the ultimate in reliability.
Metso to supply tissue machine to Fabrica De Papel San Francisco
Mexican producer Fabrica De Papel San Francisco has purchased a complete Advantage tissue machine from Metso for an undisclosed sum.
The tissue production line will start up in the second quarter of 2013 and will add another 30,000 tpy of bathroom tissue, napkin and towel grades to the company’s existing production.
Metso said this kind of production line is typically valued at €10-15m depending on capacity and scope of delivery.
Its scope of delivery will comprise a complete tissue machine equipped with a headbox, a Yankee cylinder, a Yankee hood, sheet control, tail threading equipment, a dust management system and a reel.
The delivery is a repeat order from Fabrica De Papel San Francisco.
It now operates two Metso tissue machines at its Mexicali facility.The new tissue line will use 100 % recycled fibre.
Fabrica De Papel San Francisco operates four tissue production lines and converting facilities, delivering tissue products for the Mexican market.
Jan Erikson, vice president, sales, paper business line, Metso, told TW that Mexico is seeing a “good growth in tissue consumption of around 7% per year”.
“This is particularly the case in larger cities, not only because of the growth in population but also because of the country’s economical situation.”
He added that the machine Fabrica De Papel San Francisco has purchased is unique because it offers high production and good quality tissue, running at 2200 m/min with a sheet width of 2.7m.
Sun Paper boosts production with Gambini line
USA tissue producer Sun Paper has boosted its kitchen towel production after installing a Gambini TOP 700 converting line. The line was installed at the end of 2011 and is now fully up and running.
Joe Salgado, executive vice president of the Duncan, South Carolina-based business, said: “The entire process, from engineering to startup was executed very efficiently.
“We are very pleased with the quality and versatility of the equipment as well as the level of professionalism of the Gambini staff. The finished product is of excellent quality.” Luca Catoni, Gambini sales area manager, said:
“What is unique about the TOP 700 is its flexibility, efficiency and ability to finish products to a high quality.
“The quick roll change embosser/laminator allows tissue producers to change rapidly from an embossing pattern to another.”
He added that all production changes from BRT to KT are achieved with max flexibility and efficiency.
The line is equipped with Gambini’s Standby reel auto load back stand which further increases efficiency during parent reel change. It is also equipped with a four colour gearless technology printer which the business said “ensures a high quality finish product”.