Paper Excellence planning to restart pulp production at idled mill in Prince Albert, Saskatchewan, in minimum of 12 to 18 months, waiting for technology that is being developed to enable the mill to produce both paper pulp and dissolving pulp
Debra Garcia
LOS ANGELES
,
March 29, 2013
(Industry Intelligence Inc.)
–
Paper Excellence Canada Holdings Corp. is planning to restart pulp productions at the idled pulp mill in Prince Albert, Saskatchewan, in about 12 to 18 months at least, pushed back from the planned start time of fall of this year, according to Dale Paterson, the company’s VP of operations, The Prince Albert Daily Herald reported March 29.
Paterson said that the mill aims to have about 250 employees once the site is operating fully. Currently, the mill has 113 employees on its payroll, including 18 to preserve and develop the mill site.
The site is currently supplying power to the SaskPowergrid, and an application is being sent to boost the power export to 12.5 MWh from 9-9.5 MWh. On this side of the business, about 24 people are currently employed.
Paterson reported at the Prince Albert and District Chamber of Commerce event on March 28 that the mill faces several challenges, including a higher-than-expected level of equipment failure, which would require an extra C$75 million in expenditures.
However, that has been offset by the $85 million to $90 million savings the mill will get from its investment in new technology that allows the mill to manufacture both paper pulp and dissolved pulp.
On March 1, fabrication and engineering company Lyinisiw Engineering was launched to work for Paper Excellence, rebuilding its equipment, undertaking its capital projects, and providing additional workers for its mill shutdowns, reported The Prince Albert Daily Herald.
While the diversification of pulp production would help the mill adapt to market conditions, the mill probably can only produce dissolving pulp because of a non-compete agreement with Weyerhaeuser Co., which idled the mill in 2006, according to Merle Lacert, CEO of the chamber of commerce.
Paper Excellence, a subsidiary of Asia Pulp and Paper Co. (APP), had bought the mill from Domtar Corp. in May 2011. Domtar had acquired the mill in 2007 as part of a transaction with Weyerhaeuser.
The plan had been to produce dissolving pulp, but because of sizable drops in the market, Paterson said it is dealing with a “competitor,” who he didn’t name, so that it can consider producing market grade pulp products, The Prince Albert Daily Herald reported.
The primary source of this article is The Prince Albert Daily Herald, Prince Albert, Saskatchewan, on March 29, 2013.
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