UPGRADE: ALLIANCE EARMARKS $170M FOR ALABAMA
June 1, 1999 By Pulp & Paper Canada
MONTREAL, QC — Alliance Forest Products Inc. said it will invest $170 million in the first phase of improvements to its paper mill in Coosa Pines, AL. The first phase includes an increase to the mill…
MONTREAL, QC — Alliance Forest Products Inc. said it will invest $170 million in the first phase of improvements to its paper mill in Coosa Pines, AL. The first phase includes an increase to the mill’s deinked pulp production capacity to 1150 t/d. Consequently, the recycled fibre content of its newsprint will jump to 95% from 40%. As well, Alliance will permanently shut down its hardwood kraft and mechanical pulp mills at Coosa Pines, and increase the speed and efficiency of three of its paper machines, thereby boosting production by 14% — to 448 000 t/y from 393 000 t/y. “Phase 1 will begin within 12 to 18 months, or before if, as announced in January, the company divests its 150 000 acres of woodlands in Alabama,” said Dino Fuoco, Alliance’s executive vice-president. The woodlands are worth an estimated $500 million (US).
Phase 2 of the Coosa Pines plan consists of the construction of a $200-million (US) cogeneration plant, which will be financed by a third party that will also own it. The biomass-fueled cogen plant will produce steam and about 75 megawatts of electricity.
NEWSPRINT: OVERCAPACITY WOES MIGHT MEAN LAYOFFS
MONTREAL, QC — The overcapacity bogeyman that has haunted newsprint this year might force producers to take more downtime this summer and, consequently, to lay off more workers, said John Weaver, chief executive officer of Abitibi-Consolidated Inc., the world’s largest newsprint producer. Although Abitibi has removed 170 000 tonnes of capacity permanently in Quebec and Ontario and 50 000 tonnes temporarily this spring, it might not be enough to prevent more layoffs from taking place. “North America still has 500 000 tonnes of excess supply,” he said. “We may have to cut another 40 000 tonnes of production temporarily and we can’t guarantee layoffs won’t go higher than the 1300 already announced.” The average newsprint price in North America fell to $520 (US) a tonne in the first quarter, from about $570 (US) last year. Spot prices are around $495 (US).
Nexfor Inc. plans to sell its Quebec-based Maclaren energy operations this year for an estimated $300 million.
Buckeye Technologies, Memphis, TN, said it intends to build the world’s largest airlaid nonwovens machine, which, when completed, will have an annual capacity of over 50 000 tons. The site for the new plant, which is scheduled to start up in late 2000, has not yet been announced.
Tembec International Sales Corp., Toronto, ON, will become official agents in North America on July 1 for eucalyptus pulp produced by Jari Cellulose S.A. in Brazil.
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