Sappi has declared the approval of a capital project worth $170 million for the conversion of the kraft pulp mill located in Cloquet, Minnesota into a chemical cellulose production facility.
Sappi Fine Paper North America's Cloquet Mill in Cloquet, Minn. Credit:Sappi Fine Paper North America.
The proposed conversion project is scheduled to start in 2013. After the completion of the project, nearly 330,000 Mt of chemical cellulose will be produced annually. Approved capital plans also require a $ 13 million project to improve the coated paper production line at the Sappi Somerset Mill located in Skowhegan, Maine.
Sappi’s latest investments are based on its confidence that North America can be a major market for chemical cellulose, supporting its position in fine and release papers. The company’s Saiccor Mill located in KwaZulu-Natal, South Africa is already the largest producer of chemical cellulose in the world. The previously declared expansion project at the Sappi Ngodwana Mill situated in South Africa along with the latest Cloquet project will increase overall chemical cellulose production capacity of Sappi to more than 1.3 million Mt annually.
The coated paper business of the company at the Cloquet facility will not be affected by the conversion project. Product quality will remain unaffected across all grades, as approval is granted for dry fiber handling systems and for capability enhancements of paper machines as part of the capital project.
At present, the pulp mill in Cloquet, manufactures hardwood kraft pulp. Sappi will ensure a smooth conversion by supplying the kraft pulp from its Somerset Mill in order to meet the demand of its pulp customers.