Chilean CMPC to Expand Laja Pulp Mill

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Researched by Industrial Info Resources (Sugar Land, Texas)--Pulp, Paper & Wood company CMPC (Santiago, Chile) has obtained environmental approval and is performing equipment studies for a pulp mill expansion. The total investment cost of the project is estimated to be about $400 million.

The project seeks to increase the plant's manufacturing capacity of hardwood/softwood pulp from 360,000 to 500,000 tons per year. The modernization of the plant also aims to reduce emissions of greenhouse gases by reducing oil consumption and energy dependence on the central grid, through improvements in efficiency and greater renewable power generation.

The plant expansion will involve the replacement, addition and renovation of equipment. Plant officials revealed that they are planning to acquire equipment from the European Union, North America or Brazil. Once purchased, the equipment being replaced will be taken out of service on a scheduled basis. The construction phase of the project is expected to start in the first quarter of 2010 and last approximately 45 months.

The Laja plant, located in the Bío-Bío Region of Chile, started operations in 1959 and employs 528 people. The mill manufactures bleached pulp, elementary raw pulp, fluff pulp for disposable diapers and sanitary tissue products, paper for printing and writing, and paper for industrial bags. At present, the plant consumes 38.5 megawatts (MW) of power, of which 28 MW is generated at the plant. The remaining 10.5 of power comes from Chile's Central Interconnected System.

CMPC produces and commercializes wood, pulp, tissue, papers and paper products. Headquartered in Santiago de Chile, the company has more than 20 operating mills in various Latin American countries and exports products to five continents.

For information on other CMPC projects, see December 4, 2009, article - Chilean CMPC Awaits Authorization for Paper Machine Addition and January 6, 2010, article - Chilean CMPC to Perform Site Selection for Grassroot Sawmill.

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