Domtar Corporation Plans $160 Million Conversion At Ashdown, Arkansas, Mill
12/11/2014
The firm designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. The planned conversion is expected to come online by the third quarter 2016 and will allow for the production of up to 516,000 metric tons of fluff pulp per year once the machine is in full operation. 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.
"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," said John D. Williams, CEO. "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."
Commenting on the reduction of papermaking capacity, Williams added, "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."
According to the firm, conversion work is expected to commence during the second quarter of 2016 and the fluff pulp line is scheduled to start-up by the third quarter 2016. The cost of conversion will be approximately $160 million of which $40 million is expected to be invested in 2015 and $120 million in 2016. The Company will also invest in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions.
Project Announcements
Swiss-Based GF Casting Solutions AG Plans Augusta, Georgia, Operations
05/07/2024
3M Expands Valley, Nebraska, Production Operations
05/07/2024
Advanced Call Center Technologies Expands Norman, Oklahoma, Operations
05/07/2024
Rivian Automotive Expands Normal, Illinois, Operations
05/06/2024
Meta Platforms Plans Montgomery, Alabama, Data Center Operations
05/06/2024
Crystal Window & Door Systems Plans Selma, North Carolina, Production Operations
05/06/2024
Most Read
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
38th Annual Corporate Survey: Are Unrealized Predictions of an Economic Slump Leading Small to Mid-Size Companies to Put Off Expansion Plans?
Q1 2024
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
Making Hybrid More Human in 2024
Q1 2024
-
20th Annual Consultants Survey: Clients Prioritize Access to Skilled Labor, Responsive State & Local Government
Q1 2024
-
Manufacturing Momentum Is Building
Q1 2024
-
Last Word: Striking a Balance - Prioritizing Electric Infrastructure While Preparing for the Next Wave of Industrial Expansion
Q1 2024