Sappi Alfeld Mill Refocusing Production to C1S Packaging/Specialty Grades
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In response to strong growth and positive market forecasts for the packaging market, Sappi Fine Paper Europe, Bruissles, Belgium, said that it has begun the process of converting its Alfeld Mill in Germany to exclusively produce one-sided coated paper for packaging, labels, and technical applications. The project will take 12 months to complete. At the same time, Sappi will actively manage its graphic paper capacity by transferring the current coated paper production of the Alfeld Mill to other Sappi Mills in Europe in close consultation with these customers. This action will further improve Sappi's cost position in coated woodfree paper in Europe and elsewhere.
The strong growth and improved margins in this market are due to the growth in the demand for paper packaging and a lack of standardization; high degree of customization; and the long qualification times imposed by customers, Sappi notes. The company also has been successful in the development of innovative and sustainable solutions for this market in close cooperation with end-use customers and converters.
Commenting on the conversion, Sappi Fine Paper Europe CEO Berry Wiersum said that "our decision is in line with the Sappi group strategy to invest in higher growth and higher margin businesses. In addition, it will further improve Sappi's cost position in coated woodfree paper in Europe and elsewhere."
The decision will entail the conversion of paper machine 2 (PM 2) from producing 150,000 metric tpy of coated fine paper to producing 135,000 metric tpy of specialty paper. Paper machines 1, 3, 4, and 5 at the Alfeld Mill already produce jointly 165,000 metric tpy of specialty paper and board.
Once the conversion is complete, the Alfeld Mill will benefit from increased margins, improved quality, increased efficiencies on raw material consumption, and an optimized fixed cost profile. The mill will become the biggest and lowest cost producer of these one-sided coated specialty grades globally, with the converted PM 2 being the fastest and most productive specialty machine in the world. The PM 2 product range will focus on one-sided coated grades from 40–180 gsm for packaging, technical purposes, liner, and label applications.
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