Thursday, June 4, 2015
Resolute Forest product announced a major decision to build a state-of-the-art facility to manufacture at -home, premium private level tissue paper, including bath and towel.
Resolute’s tissue paper machine and converting operations will be built at the Calhoun mill in Tennessee. This $270 million project represents the largest investment made by Resolute since 2010. At full capacity, the new tissue and converting facilities will produce approximately 60,000 metric tons per year of at-home, premium bath tissue and towel, focused on the growing private label market. With market feasibility studies, technology selection and project engineering nearly complete, construction is expected to begin shortly, with ramp-up expected to start in the first quarter of 2017.
The decision to enter the tissue market and to build at its existing Calhoun site further capitalizes on Resolute’s unique ability to capture synergies by:
• integrating Resolute’s high-quality, low-cost, excess slush pulp for 100% of the tissue machine’s fiber requirement;
• utilizing the full capacity of the tissue machine in a state-of-the-art converting operation;
• taking advantage of capital expenditure and fixed cost efficiencies by extending existing infrastructure;
• having access to an attractive and cost-competitive fiber basket; and
• being ideally located to serve Eastern U.S. markets.
The tissue machine will use excess slush pulp over and above the additional dries market pulp capacity associated with the previously continuous pulp digester project. unlike many other paper products, tissue demand has grown steadily or the past 20 years, and it is expected to continue growing in the future.
Today, the at-home segment accounts for the majority of all tissue sold in North America. Over the next ten years, most of the sector’s growth is expected to be in the premium quality tier, Resolute’s target market.
Tags: Resolute, tissue market