(News from RISI) Kimberly-Clark de Mexico (KCM) has scheduled the start up of its new 60,000tpy tissue paper machine (PM) installed at its Bajíio mill for June.
As stated in KCM’s financial report, the project continues as planned, both in terms of time and cost.
According to chief executive Pablo Gonzalez, the machine will increase the company’s nominal production capacity by 10% with minimal pressure on KCM’s gross margins during the ramp up period.
He said: “When we started these types of machines in the past, we haven’t really seen cost pressure. We have had a good history of starting these machines without incurring more costs.
“Part of what we sell from the production is going to be exported and that will definitely have smaller margins than our converted products. So if there’s any pressure, it’s going to come from there.”
Within its six mills in Mexico, KCM currently has a production capacity around 675,000tpy of tissue paper.
“At present, our export sales are limited by our capacity, but they won’t be in the near future with the new PM,” the company’s chief finance officer Javier Cortez said.
