Colombia's Papeles y Cartones SA Set to Award Combustion Turbine Supplier

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Colombian paper and paperboard producer Papeles y Cartones SA (Medellin, Antioquia) will award a contract this month for the construction of a 7.2-mmegawatt (MW), natural-gas-fired combustion power-generation turbine, which is to be installed at its kraft paper and boxboard mill, located in Barbosa (Antioquia, Colombia).

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At present, two turbines vendors are bidding for the turbine contract: Solar Turbines (San Diego, California), a subsidiary of Caterpillar, Inc (NYSE:CAT) (Peoria, Illinois); and Siemens AG (NYSE:SI) (Munich, Germany). Solar Turbines would provide a Tauros 70 combustion turbine, whereas Siemens' proposal includes a Tempest SGT 300 combustion turbine. Final closure of the deal is expected by the end of the month and it only includes equipment supply. Installation subcontractors will be selected by the end of the year, as well as a firm to supervise the performance and final check-up.

The turbine will have a design capacity of 7.2 MW, but it will only generate 5.6MW for internal consumption by the mill. According to plant officials, generation could be increased to 6.2 MW through the addition of an air cooling system. Installation is scheduled to begin during the first quarter of 2015, and is expected to take 8-12 months, with start-up in December 2015.

The Barbosa kraft paper and boxboard mill is located in the Colombian state of Antioquia. Its operations started in 1980 and it has a current production capacity of 250 tons per day. About 320 people work at the facility.

Industrial Info's database of active capital and maintenance expenditures within the Pulp Paper & Wood industry around the globe lists more than 1,150 active projects, with combined expenditures of $67 billion. The North American piece comes out to nearly 450 active projects that total more than $33 billion.

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