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SCA tissue machine kickoff in Colombia delayed - again

Aug 11 2011  Colombian company Productos Familia, a SCA subsidiary, has delayed for the fourth time the startup of a new 35,000 tons per year tissue machine at its Cajica paper facility, in Bogotá, from the first half of 2011 to March 2012.

The first plan was to kick off the new PM7 in 2009. Brazil's Voith Paper is the supplier of the new machine, which has an estimated cost of over 50 million Dollars, RISI reports.According to RISI, Productos Familia postponed the equipment erection in order to evaluate a new technology that Voith Paper had offered in order to optimize the machine's operations. The new technology , though, didn't meet the company's needs, according to a Productos Familia representative."Then, we decided to turn back to the original project, which is currently almost completed. We're just waiting the transferring of the new PM 7 Yankee dryer from Brazil to our facility," the source told RISI.Market rumors, though, speculate that the PM7 consecutive startup delays are related to competitor Empresas CMPC's aggressive moves in Colombia. It seems that Productos Familia has been studying ways to add capacity and compete with the Chilean producer, which launched a new 27,000 tons per year tissue paper mill in Bogota in September last year.Other sources commented that market conditions in Colombia have been hampering the project from launching as well.Productos Familia's new PM7 will be fed with 40% percent virgin pulp and 60 percent recovered paper and will mainly supply the domestic market. It will join PM6, which has a production capacity of 35,000 tons per year.

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