Zhejiang Jingxing Paper to Install Two New Tissue Machines
June 16, 2011 - China's Zhejiang Jingxing Paper is to build two tissue paper machines at its mill in Jiaxing city, in the eastern province of Zhejiang. According to a contact for the company, construction work will start late this year. The PMs are scheduled to start up by the end of next year. Each of the two identical units, which have a trim width of 3.65m and a design speed of 2000 m/min, will have a capacity of 34,000 tons/yr.
A 90 ton/day de-inked pulp (DIP) line will be built and integrated with the units. The recovered paper (RCP) to feed the line will mainly be imported. The company is also sourcing bleached hardwood and softwood kraft (BHK and BSK) pulp grades from overseas to feed the Pms.
Jumbo rolls produced on them will be converted on-site into paper towels, toilet tissue and facial tissue. According to the company, the paper towels will be made with 100% virgin fiber (20% BSK and 80% BHK). RCP will be used to make the tissue for the other products, with DIP accounting for 90% of the furnish and BSK making up the rest.
According to Zhejiang Jingxing, the total cost for the project will be around RMB 967 million ($149 million). The company is to raise up to RMB 950 million by issuing new shares via a private placement. The remainder will be paid by the company itself.
The China Securities Regulatory Commission (CSRC), a governmental body that regulates the country's securities and futures market, gave the green light to the issuance plan in early May. Zhejiang Jingxing now has six months to wrap up the sale of the new shares.
It is the first foray of the company, fundamentally a containerboard producer, into tissue paper production. Due to intensifying competition and oversupply issues in the board sector, last year the company decided to cancel the construction of a new 400,000 ton/yr linerboard PM it had been planning.
However, producers around Zhejiang have been eyeing the growing market for tissue paper grades.
Old PMs to be retired: Zhejiang Jingxing also plans to retire four small, old PMs by the end of this year. In addition to a 15,000 ton/yr linerboard machine which has been idle since last year, the other three PMs produce a cumulative 100,000 tons/yr of containerboard grades at the Jiaxing mill. All the old machines will be dismantled, and the land they occupy will be used for commercial construction by the local government.
The company still houses four board machines with a combined capacity of around 1.04 million tons/yr. Zhejiang Jinxing commissioned a 200,000 ton/yr white-top liner unit in April last year, and boosted its capacity to 250,000 tons/yr later in the year.
SOURCE: Tissue World