AV Group to Expand Capacity of Dissolving Pulp in Canada

    FREDERICTON, NB, Aug. 15 /CNW/ - The AV Group, a Joint Venture of the
Aditya Birla Group of India and Tembec of Canada, today announced ambitious
expansion plans for the production of dissolving pulp, the main raw material
used in the manufacture of Viscose Staple Fibre (rayon).
    As a result of mill conversion plus implementing new technologies and
strategies, AV Group will increase dissolving pulp capacity at its two New
Brunswick mills in Atholville and Nackawic by 300,000 ADMT/year over the next
two years.
    "We are very excited about the proposed plans to increase the capacity of
our current dissolving pulp operations in New Brunswick," said Mr. Peter
Vinall, President and CEO of AV Group. "The steps are a testament to the
company's confidence in our Canadian operations, and assuming a successful
plant conversion in Nackawic and our ability to secure competitively priced
wood and energy we will press forward with these plans. The move is also part
of Aditya Birla Group's global sourcing strategy which includes the evaluation
of additional pulp supply options to meet their global Viscose Staple Fibre
capacity expansion plans."

    AV Cell and AV Nackawic Capacity Projections

    By mid 2008, as a result of a series of de-bottlenecking projects that
are already underway, the AV Cell plant in Atholville will increase its
production of dissolving pulp from its current level of 116,000 ADMT/year to
126,000 ADMT/year. By 2009, the company is expected to reach 140,000 ADMT/year
by using a unique bio-refinery technology.
    With the completion of the 35 million CDN dollar conversion of the
AV Nackawic mill from paper pulp to dissolving pulp in January 2008,
production will ramp up to a rate of 540 ADMT/day over a three month period.
Further optimization projects will increase production levels to 600 ADMT/day,
taking the annual capacity to 210,000 ADMT by end of 2008. In addition, a
project has been launched that will leverage bio-refinery technology to
overcome recovery boiler limitations and allow an annual production rate of
280,000 ADMT/year during 2009, contingent on securing an adequate wood supply.
    Independently, Aditya Birla Group has established a team that is actively
involved in identifying and evaluating additional pulp opportunities to
support their Viscose Staple Fibre capacity expansion plans worldwide. The
scope of the search includes North America, Russia and other Western countries
and following a final review of the opportunities appropriate decisions are
expected to be taken in the next few months.

For further information:

For further information: Peter Vinall, President and CEO, Aditya
Birla/Tembec JV Companies, (506) 575-3294, C: (506) 260-2323

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890