Sappi assesses environmental impact of mill expansion

Sappi assesses environmental impact of mill expansion

August 2005 Pump Industry Analyst PULP & PAPER MARKET PROSPECTS AKER KVAERNER TO MODERNIZE EUROPEAN, BRAZILIAN MILLS Aker Kvaerner has been awarde...

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August 2005

Pump Industry Analyst

PULP & PAPER

MARKET PROSPECTS

AKER KVAERNER TO MODERNIZE EUROPEAN, BRAZILIAN MILLS Aker Kvaerner has been awarded US$24 million worth of contracts for the modernisation of four pulp mills: Swedish Södra Cell Värö, Mercer Rosenthal, SCA Mannheim in Germany and International Paper Mogi Guaçu in Brazil. Kvaerner Pulping AB, part of the Aker Kvaerner group, will under the new contracts provide engineering, procurement and supervision services for the German and Brazilian clients. The contract for Södra Cell Värö in Sweden also includes construction services. The order for Södra Cell Värö, Sweden, comprises a modernisation of the existing brown stock washing system and includes the supply and installation of Kvaerner Pulping’s patented Compact Press. The modernisation aims to improve washing performance which will contribute to a better production yield at the mill. Start-up is scheduled for March 2006. SCA Mannheim has ordered a new bleach plant, including medium consistency equipment and two Compact Press units. This in order to improve quality and enable further closure of water cycles improving environmental performance at the mill. The Compact Press units are a repeat order, with two units from Kvaerner Pulping previously installed in 2003. The new bleach plant will be started up in June 2006. To improve washing efficiency, Mercer Rosenthal has ordered an upgrade of their mill’s existing brown stock washing system. The upgrade comprises a Kvaerner

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Pulping Compact Press and a pressure diffuser. Both will be used as post-oxygen washers and will among other things replace old wash filters, delivering environmental benefits through reductions in Chemical Oxygen Demand (COD). Start-up is scheduled for June 2006. International Paper has ordered a modernisation of the bleach plant, including a Compact Press, at their Brazilian Mogi Guaçu mill. The modernisation will ready the plant for production of elemental chlorine-free pulp and prepare for a future capacity increase. Start-up is scheduled for November 2006.

UPM TO MODERNIZE KAIPOLA MILL UPM is investing E40 million upgrading paper machine lines, power plant and saw mill chips handling at the company’s Kaipola paper mill in Finland. The modernization, which will improve the mill's production efficiency, will be completed by the end of 2006. In order to meet customers’ demands, a new finishing machinery for super jumbo reels will be built for PM 6 producing magazine paper. The wire section of PM 4 producing catalogue paper will be modernized in order to further develop the product quality. The current rewinder of PM 7 producing directory paper and newsprint will be replaced by a refurbished one from PM 6. In addition, solid fuel capacity of the mill’s power plant’s main boiler will be increased and a new biofuel crushing line will be built. The boiler investment will enable an increase in the share of biofuels up to more than 70% of the total volume of fuel used by the mill. The new crushing line

will enable the use of stumps in energy production. The investment will reduce the mill’s fossil carbon dioxide emissions by one third.

SAPPI ASSESSES ENVIRONMENTAL IMPACT OF MILL EXPANSION Sappi Ltd is undertaking an environmental impact assessment study (EIA) at its speciality cellulose mill, Sappi Saiccor, in Umkomaas, South Africa. The company is considering a major expansion project that would result in an increase in capacity of more than 200 000 tons per annum. Pending a positive response to the EIA and final approval of the project by the Sappi Ltd board, the project could start during the first half of 2006. The proposed investment is expected to cost around Rd2 billion in direct costs and follows the recent debottlenecking of the mill by around 50 000 tons per annum, which becomes fully effective by the end of 2005. The investment will ensure the optimal use of the mill’s existing assets, and will include the addition of a new production line and associated auxiliary equipment and infrastructure.

POWER GENERATION NIPPON PAPER PICKS BIOMASS Nippon Paper Industries Co Ltd is introducing biomass power generation plant to its Fuji and Iwakuni mills, mainly using scrap wood and refuse paper and plastic fuel. This decision follows the introduction of biomass power

plants at the Nakoso Mill last October, and at the Ishinomaki Mill later this year. Following a capital investment of ¥15.4 billion, the Fuji mill will be set up in October 2007 and the Iwakuni mill in February 2008.

LITHUANIAN HYDRO REHAB CONTRACT FOR ALSTOM Alstom will refurbish the main equipment at the 100MW hydroelectric power plant, located on the river Nemunas in Kaunas, Lithuania. The scope of supply covers new turbine runners, hydro mechanical equipment, new electrical balance of plant including instrumentation and control equipment, as well as rehabilitation of the four 25 MW generators. Design work is underway with site work scheduled to begin this autumn. The project is expected to be completed in 2008. Project management will be carried out from Alstom’s unit in Sweden.

ALUMINIUM BECHTEL TO BUILD SMELTER IN OMAN Bechtel has signed an agreement to build an aluminum smelter in northern Oman for Sohar Aluminium, as part of an overall US$2.2 billion project that will also include a power station and desalination plant as well as a port facility. Bechtel will provide engineering, procurement, construction, and project management for the smelter, which will have a capacity of 325 000 tonnes of aluminum per year.