(News from RISI) – KP Tissue is in “serious” consideration of adding another through-air-dried (TAD) tissue paper machine, company chief executive Mario Gosselin told analysts on 12 November.
“We’re really serious and we’re studying location now and we’re working on pre-engineering,” he said.
In early 2013, KP started up a TAD at its mill in Memphis, TN.
Contacts claim the TAD was needed so that the company could move up the quality curve with premium private label and White Cloud product for big retailers such as Walmart.
Gosselin said the company was now “positioning” White Cloud with a three-ply and TAD versions.
KP reported a 21.5% third quarter rise in US revenue (vs third quarter 2013) because of the firm’s TAD output in Memphis as well as acquisition of Metro Paper, an AfH producer.
The firm’s US unit revenue was 29% of total revenue through three quarters this year and was on track to be about C$308 million for 2014.
Also, KP reported a C$6.5 million EBITDA contribution from TAD product, which was up from C$1.8 million in third quarter 2013.
The TAD started in February 2013. The C$6.5 million contribution was to the firm’s third quarter C$38 million EBITDA.