Pulp and Paper Canada

Aditya Birla invests $15 million, increases holdings of AV Cell

December 12, 2007  By Pulp & Paper Canada

Atholville, NB – Aditya Birla has announced that it will be investing $15 million of added capitalization to AV Cel…

Atholville, NB – Aditya Birla has announced that it will be investing $15 million of added capitalization to AV Cell and will increase its share holdings from 50 per cent to 75% as part of its production capacity expansion plans. The announcement was made in conjunction with the government of New Brunswick who pledged a term loan of $17.3 million to assist with facility upgrades.

“Aditya Birla’s continued confidence in AV Cell in conjunction with the New Brunswick government’s supportive business climate bodes well for the viability of the site,” said Peter Vinall, president and CEO, AV Group. “AV Cell has excellent long-term potential and todays announcements will allow us to invest in the necessary upgrades and efficiencies to succeed and prosper in the years to come.”


“To remain competitive we must expand and we will need 25 to 30% more wood from Crown and private lands to produce enough dissolving pulp to make these next upgrades feasible,” said S.V. Sharda, COO, AV Cell. We are currently in discussions with the government and other key stakeholders to move forward as quickly as possible on this critical issue.”

AV Cell, located in Atholville, NB, currently produces 330 metric tonnes per day of specialty grade dissolving pulp for the textile industry; the planned upgrade will increase production capacity to 360 metric tonnes per day. AV Cell Inc. is a 75:25 joint venture between the Aditya Birla Group of India and Tembec of Canada. The mill employs 275 and supplies mixed softwood and hardwood dissolving pulp for the group’s global Viscose Staple Fibre (VSF) business.

AV Group also owns and operates a mill in Nackawic that is currently undergoing a $45 million conversion from paper pulp to dissolving pulp. The conversion will be completed in March 2008. Production from the two mills is used exclusively for the Groups units in India, Thailand, Indonesia and China.

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