Johannesburg, South Africa 09 April 2018 -- (From news reports) -- Sappi expects to grow its dissolving wood pulp production capacity by about 50% over the next five years, says the group's Southern Africa CEO, Alex Thiel.
"Worldwide growth rates are about 4.5%. We're quite fortunate in that our two main customers are really frontrunners and we see our capacity growth in dissolving pulp at about 8.5% per annum for the next five years -- so we're desperate in terms of adding capacity at this stage."
Sappi is investing in its dissolving wood pulp business to mitigate declining demand for paper. Dissolving wood pulp is used to produce viscose fibre for clothing and textiles, among other applications.
"There's strong demand, we're getting good pricing," Thiel told Business Day.
Demand was being driven by a global shortage of cotton and a general preference for clothes made from viscose fibre rather than polyester.
Thiel said while the strengthened rand was "not ideal" for exports -- Sappi sells dissolving wood pulp mainly to manufacturers in Indonesia, China and India -- "even at the R12 rate [to the dollar] we still make pretty good margins on the product".
Sappi would spend about R1.3bn on its Ngodwana mill in 2018 to expand its dissolving wood pulp production capacity at the facility by 50,000 tonnes a year. It also planned to spend R6.2bn to expand its dissolving wood pulp capacity at its Saiccor mill, Thiel said.
Sappi said in December it had started preparatory work on the Saiccor expansion. The group wanted to increase the mill's capacity by 250,000 tonnes a year "to meet strong projected demand growth".
At the group's Cloquet mill in the US, Sappi was contemplating similar expansion plans.
According to data from market-intelligence service Hawkins Wright, global demand for dissolving wood pulp was just under 7-million tonnes in 2017, with textiles accounting for 60% of that. Demand was likely to reach about 8.5-million tonnes by 2020.
* We are looking for a Production Shift Team Leader to maintain high standards, plus ensure safety policies and regulations for a company located close to Chicago's Midway Airport. If you are experienced team leader who has a four-year degree in an engineering/technical field (paper science degree preferred, and experience in recycled linerboard or corrugating medium paper mills is a plus), we are looking for someone like you! If you are interested or would like more information, please contact Jim Thompson at: firstname.lastname@example.org Ph. 678-206-6010 Cell: 404-822-3412.
* A family owned and operated corrugated packaging solutions company in Illinois is looking for an experienced Maintenance Technician to maintain production and quality by ensuring operation of machinery and mechanical equipment. Relocation and other perks are available to the right candidate who is committed to working third shift. If you are interested or would like more information, please contact Jim Thompson at: email@example.com Ph. 678-206-6010 Cell: 404-822-3412.
* Are you an experienced Maintenance Mechanic and would like to work for a family owned and operated corrugated packaging solutions company that invests in the best equipment and technology? If you are interested or would like more information, please contact Jim Thompson at: firstname.lastname@example.org Ph. 678-206-6010 Cell: 404-822-3412.
* A leading company in the corrugated solutions packaging business is looking for a experienced Electrician. The right candidate will possess the following skills: electrical; hydraulic; automatic drives (basic component machines 122 to 440 bolts). If you are interested or would like more information, please contact Jim Thompson at: email@example.com Ph. 678-206-6010 Cell: 404-822-3412.
* An expanding company is looking for a Corporate Industrial Electro-Mechanical Engineer near Allentown, PA. Relocation is available. Do you have a storied list of unique electrical and mechanical engineering skills you're ready to take to the next level? Do you envision yourself in a corporate-level leadership role that your experience finally merits? And do you relish any opportunity to troubleshoot and solve real-time problems, all while designing and installing new services and systems that will not only ensure safety, but also turn a potentially hazardous work environment into a continuously thriving one? If you are interested or would like more information, please contact Jim Thompson at: firstname.lastname@example.org Ph. 678-206-6010 Cell: 404-822-3412.
* An expanding company is looking for hands-on Electro Mechanical Maintenance Techs in Conyers, Georgia. Preference will be given to candidates with higher education and additional certificates or training. You must be able to work any shift. Pay is negotiable with excellent perks and benefits. Relocation assistance is available to the right candidate. If you are interested or would like more information, please contact Jim Thompson at: email@example.com Ph. 678-206-6010 Cell: 404-822-3412.
* Working as a Consultant? Looking for some additional challenges with a flexible scheduling? Have a background in Consistency Control? This may be just the opportunity you are looking for: A large multi-national automation company seeks an expert in paper mill consistency technology. This individual will facilitate application support and start-ups in the paper mill environment. In addition, the ability to provide troubleshooting and technical advice and support is strongly desired. The individual should have an understanding of rotary, blade, microwave and optical consistency and the application of these devices in the paper mill. The company sells and maintains a line of consistency transmitters, sample valves and sheet break detectors. These products are marketed in the US through a rep. network. Knowledge of sheet break detection technology is also desirable. Individual must be willing to travel to paper production facilities across the US. Travel & Living Expenses to be reimbursed along with an agreed upon daily per diem rate. For more information, please contact Jim Thompson at: firstname.lastname@example.org Ph. 678-206-6010 Cell: 404-822-3412.
Jim Thompson is back again...with a new book on a taboo subject: the personalities in the pulp & paper industry. Jim has written in the past on many subjects based on his four plus decades in the worldwide pulp and paper industry. This new book is packed full of information valuable to the senior member of the industry as well as the recent entrant. A must for every pulp and paper library.