Jari Celulose halts production of 410,000 tonnes/year eucalyptus pulp mill on Jan. 15; management considers options, including conversion to dissolving pulp, but insiders note major investment needed, difficult geographic location

Kendall Sinclair

LOS ANGELES , January 23, 2013 (Industry Intelligence Inc.) – Jari Celulose, Papel e Embalagens SA on Jan. 15 halted production of its 410,000 tonnes/year bleached eucalyptus kraft pulp (BEKP) mill, according to Jari Celulose’s parent company Grupo Orsa, Euwid reported Jan. 23.

It is uncertain whether the operations of the mill, located in Monte Dourado, Brazil, will restart, Euwid reported.

Jari had previously expected to suspend the mill’s operations at the end of January for several months so management could determine the mill’s future, which could include a shift from paper pulp to dissolving pulp, Euwid reported.

But industry insiders doubted that the mill would restart or that the company would upgrade the decades-old pulp line, which would necessitate a significant investment and a cooperation partner.

They also noted the mill’s location in the middle of the Amazon region, and switching the products it makes would not change the site’s difficult geographic location.

The primary source of this article is Euwid, Gernsbach, Germany, on Jan. 23, 2013.

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