Domtar to invest $160 mn on pulp line project at Arkansas

The planned conversion is expected to start by the second quarter of 2016. About 516,000 metric tons of fluff pulp per year will be produced once the machine is fully operational. The project will also result in the permanent reduction of 364,000 short tons of annual uncoated freesheet production capacity in the second quarter of 2016, Domtar said in a statement.

According to reports, the cost of the conversion will be approximately $160 million of which $40 million is expected to be invested in 2015 and $120 million in 2016. Domtar will also invest in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions.

John D. Williams, Chief Executive Officer, Domtar Corporation said, “The fluff pulp conversion project at the Ashdown mill is an important step in advancing our strategy to generate $300 to $500 million of EBITDA from growth businesses. We are expanding our presence in a growing business that will allow us to support our top-tier supplier position with some of the world’s largest producers of absorbent hygiene products. Once completed, Ashdown, together with our Plymouth mill will provide a platform to further strengthen our leading position as an effective producer of high quality fluff pulp with nearly one million tonnes of total production capacity.”

“The conversion of the paper machine in 2016 will further help balance our supply with our customers’ demand. In the interim, the flexibility of the two remaining paper machines at the Ashdown mill allows us to take measured steps to adjust our paper production while selling papergrade pulp,” he added.

Domtar Corporation designs, manufactures, markets, and distributes a wide variety of fibre-based products including communication papers, specialty and packaging papers and absorbent hygiene products. (GK)

Fibre2fashion News Desk - India