SCA to install $145 million tissue machine at Barton AL mill
March 1, 2007 - SCA said that its Board of Directors yesterday approved a US$145 million investment in a new tissue paper machine for the company's mill in Barton, Alabama.
SCA entered the North American Away-From-Home (AHF) tissue market in 2001 and has since sought opportunities to reduce its dependency on outsourcing parent rolls.
The company said that a long-term contract it has held with a supplier is nearing expiration and a new paper machine at the Barton Mill makes sense.
"We have seen positive development of our AFH business in the U.S. This investment in Barton is key to the development of our business in the fast growing southeast region of the US," said Thomas Wulkan, president of SCA Americas.
"With a fully integrated facility in Barton we will be able to further improve our service levels and to deliver a more consistent quality to our customers in the region. Additionally, the new paper machine will deliver significant cost savings once it is operational," Wulkan added.
SCA's Bartom Mill was a greenfield project that started-up in early-2004. Currently, the mill produces 100,000 tons of tissue per year.
With the new machine, annual tissue capacity in Barton will increase to 170,000 tpy, SCA said.
Start-up of the new machine is expected in the summer of 2008.
SCA Tissue North America is one of the largest manufacturers of disposable napkins, bath tissue, towels and wipes for the AFH market in the U.S. and Canada. The company holds about 20% of the market.
See related PaperAge feature article:
SCA’s First Greenfield Tissue Mill Comes Online at Alabama Complex