Pulp and Paper Canada

News
STRONGER market conditions reflected in mill SPENDING;

June 1, 2000  By Pulp & Paper Canada



Our annual capital spending survey of the Canadian pulp and paper industry reflects a sector with an optimistic and competitive approach. Costs for modernization and improvement projects for mill prod…

Our annual capital spending survey of the Canadian pulp and paper industry reflects a sector with an optimistic and competitive approach. Costs for modernization and improvement projects for mill production facilities, pollution control and energy conservation top $1.91 billion, a conspicuous 203% of last year’s spending. Expenditures signed, sealed and delivered in 2000 are similarly notable, at $942 million they are 221% of last year’s outlay.

The numbers are boosted by the return to our survey of a few big players. Abitibi-Consolidated, Fletcher Challenge Canada and St. Laurent Paperboard, all absent from last year’s survey, will be injecting a combined total of $495 million into their respective facilities.

Advertisement

The boost also comes from undertakings unparalleled in last year’s survey. Weyerhaeuser’s modest previous report is well surpassed this year. The company will be spending $133 million to optimize mill production and pollution control. The Specialty Cellulose Division of Tembec will modernize the sulphite mill at a cost of $130 million, and Alliance will finish the installation of its new PM4 at Donnacona, spending $121 million this year.

These projects and others brings mill production facilities’ spending to $1.71 billion, double the $858 million reported in last year’s survey. For the year 2000, at $879 million, projected spending is 223% of 1999, which was $395 million.

The industry will put $56 million more into pollution control, spending $129 million. Weyerhaeuser’s $40 million optimization project boosts the numbers. Thirty seven percent of the total will be spent in 2000, amounting to $48 million.

Energy conservation projects have increased in focus over the year. An impressive $69.2 million will be spent on such projects as cogeneration, heat recovery and steam control, compared to $3.66 million last year. The 2000 allotment at $29.2 million is more than 10 times its 1999 corollary of $2.79 million.

Please note that Crestbrook, Spruce Falls, Pine Falls, and AV Cell are Tembec companies and are listed as such. The Cascades listing includes Dsencrage CMD and Fjordcell and Kruger’s entry incorporates Corner Brook Pulp and Paper.

TABLE I. Total capital spending summary, company by company ($, 000).

Total 2000 allotment
Abitibi-Consolidated 372 575 135 238
Alberta Newsprint 4190 4190
Alberta Pacific 8075 8071
Alliance Forest 260 580 134 680
Canfor 19 345 13 475
Cascades 6137 4671
Celgar 9150 8440
Daishowa 23 900 17 100
Domtar 108 580 76 680
Fibreco 25 800 19 000
Fletcher Challenge Canada 22900 944
Kimberly-Clark Nova Scotia 2535 2435
Kruger 71 250 62 795
Marathon Pulp 5267 5267
Minas Basin 750 750
Norampac 26 665 19 215
Papier Masson 162 730 103 730
Paperboard Industries 4650 2300
Pope & Talbot 6666 5996
Quesnel River 5944 4298
St. Anne-Nackawic 9728 5878
St. Laurent Paperboard 99 700 75 700
Stora Enso 14 600 11 100
Tembec 486 570 173 562
Tolko Manitoba 14200 1013
Weyerhaeuser 133 000 37 000
Total 1 905 487 941 968

Companies not listed above either have no capital expenditures or did not return the survey.

TABLE II. Total capital spending of each company by category ($, 000).

Mill Pollution Energy
production control conservation

Company Total 2000 Total 2000 Total 2000

Abitibi-

Consolidated 361 269 131 226 11 306 4012 0 0
Alberta Newsprint 3800 3800 390 390 0 0
Alberta Pacific 7553 7549 370 370 152 152
Alliance Forest 260 200 134 300 270 270 110 110
Canfor 4825 4625 7360 4525 7160 4325
Cascades 5160 3694 857 857 120 120
Celgar 8900 8190 250 250 0 0
Daishowa 23 900 17 100 0 0 0 0
Domtar 100 200 75 100 8100 1300 280 280
Fibreco 6800 6500 19 000 12500 0 0

Fletcher Challenge

Canada 21300 18400 0 0 1600 760

Kimberly-Clark

Nova Scotia 2000 2000 535 435 0 0
Kruger 70 300 62 035 0 0 950 760
Marathon Pulp 2399 2399 29 29 2839 2839
Minas Basin 750 750 0 0 0 0
Norampac 23 165 15 715 N/A 3500 0 0
Papier Masson 162 730 103 730 0 0 0 0

Paperboard

Industries 4650 2300 0 0 0 0
Pope & Talbot 4532 4127 460 392 1674 1477
Quesnel River 3832 2186 1962 1962 150 150
St. Anne-Nackawic 4893 4053 4835 1825 0 0

St. Laurent

Paperboard 85 000 66 000 10 100 5100 4600 4600
Stora Enso 13 800 10 300 300 300 500 500
Tembec 418 751 151 102 18 894 9435 48 925 13 025
Tolko Manitoba 13 230 4630 860 860 110 110
Weyerhaeuser 93 000 37 000 40 000 0 0 0
Total 1 706 939 878 811 129 378 48 312 69 170 29 208


Print this page

Advertisement

Stories continue below


Related