Pulp United

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In 2003, NCT formed the joint venture company, Pulp United, with Swedish pulp manufacturer, Södra Cell. Its purpose was to investigate the feasibility of constructing a new Eucalyptus-based BCTMP pulp mill in South Africa. The mill, with a capacity of ±300 000 tonnes, would have been the first of its kind to produce BCTMP from Eucalyptus wood on this scale.

Södra, however, withdrew from the project in August 2005. It cited the strength of the Rand, uncertainty about future electricity prices and high capital investment costs as the main contributing factors.

Despite Södra's departure, NCT continued with the study. In March 2007, NCT named another potential partner and signed a Letter of Intent with the Rottneros Group, a leading manufacturer of market pulp in Sweden, to carry out further research into the possible construction of the mill.

In August 2006, Rottneros announced plans to close down operations at one of its mills at Utansjö in Sweden and move all or part of this production to a country with lower and more stable electricity prices than Sweden. NCT and South Africa presented an ideal opportunity to pursue this alternative.

While NCT has sound knowledge of the South African pulpwood market, Rottneros has good knowledge of the global pulp market.

The proposed co-operation will examine the feasibility of moving some of the core equipment currently installed at the Rottneros Utansjö mill in Sweden. This line was only commissioned in 2005 and the core components are virtually new.

The scope, size and cost of the mill will depend on the outcome of the new studies but a final decision as to whether or not the project will go ahead will be made in 2008.

The mill’s capacity will probably reduce to 165 000 tonnes per year from the output of 300 000 tonnes per annum originally envisaged; costs in plant machinery may improve if these are brought in from the plant in Sweden.

To date, a clear Record of Decision has been received for the Environmental Impact Assessment and a 60ha site in the Alton industria area in Richards Bay has been secured as further negotiations regarding electricity with Eskom continue.

For further information, contact James van Zyl (james@nctforest.com).

Related News:

A Potential Partner in Pulp
2007-03-22
NCT has named a potential partner for a project to build a eucalyptus-based BCTMP (bleached, chemi, thermo, mechanical pulp) mill at Richards Bay.

NCT presses on with pulp mill
2006-04-04
Pulp United will continue with the feasibility study into building a Eucalyptus-based BCTMP mill at Richards Bay, South Africa.

Pulp United
2005-09-12
A decision has been made on Pulp United.

A project in progress
2004-07-02
The NCT/Sodra joint venture company, Pulp United, begin the feasibility study into the construction of a Eucalyptus-based BCTMP mill.

Joint venture company named
2004-05-31
NCT/SODRA's joint venture company named.

NCT & Sodra join forces in pulp mill project
2004-01-13
NCT has signed an agreement with Södra Cell, a Swedish world leader in the production of market pulp to perform a feasibility study for a new pulp mill at Richards Bay.