Bowater Set to Startup $42 Million Paper Coating Plant in Tennessee

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The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). Last summer, the cotton fields near Highway 51 North in Covington, Tennessee gave way to earth moving equipment in preparation for a $42 million plant that will eventually coat large rolls of paper. This spring, Bowater Inc, (NYSE: BOW) (TSE: BWX) (Greenville, South Carolina) will complete construction and begin shipping giant rolls of paper from its paper mills to the new plant and convert uncoated groundwood paper into coated groundwood grades.

The Covington plant, a 153,000 square foot single story building, is the second Bowater plant that uses the Nuway process to coat paper. The first plant to employ the technology is located in Michigan. A third Nuway plant is proposed for the east coast. As part of the Nuway process, a metering size press and hot soft nip calenders will coat some 75,000 tons a year of paper that will be used for inserts, coupons and supplements distributed by direct mail and retail outlets. Initially, the plant will employ 50 workers and is projected to increase up to 120 over the next two years.

BE&K Engineering (Birmingham, Alabama) is the engineering firm on record and SW&B Construction Corporation (Auburn, Maine) is the general contractor.

Bowater's is a global leader in newsprint. The company's paper products are marketed worldwide and many are available with recycled content.