Pulp and Paper Mills Active in Third Quarter Maintenance Shutdowns

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). As the second half of 2004 unfolds, pulp and paper mills continue to operate under tight capital constraints. Approval for capital projects face stiff resistance, while projects that fall on the maintenance side of budgets find the road to approval with fewer bumps. This is mainly due to emphasis on asset preservation through predictive and preventative maintenance, especially while the flow of capital dollars remains at a trickle.

For many contractors and suppliers nationwide, the period for which pulp and paper mills schedule major maintenance shutdowns provides an opportunity that would otherwise not exist, for mere lack of capital projects. Furthermore, in addition to routine inspections and repairs, mills often perform small projects that could be considered capital, but are expensed as maintenance items.

Prior to the shutdown, specific activities and schedules are detailed to ensure maximum utilization of manpower and required suppliers. During the downtime, shutdown and startup schedules of key areas and processes are mostly based on historical repairs. In instances where a repair or replacement is being performed for the first time, an estimated time frame is developed, with consideration for delays and the determination of whether such delays have the potential to become critical. Overall, from start to finish, the entire shutdown period is predicated on timing, thereby raising the level of expectation of vendors to execute jobs, in a safe and effective manner.

Research by Industrialinfo.com, originating back to the end of 2003, and updated within the last quarter, show that sixteen pulp, paper, and linerboards mills plan major maintenance shutdowns throughout the third quarter of 2004. The total investment value of those shutdowns, range from $1 million up to $4 million, and will be completed in as few as three days and up to fourteen days.

Click on the link to view a listing of seventeen maintenance shutdown projects scheduled to start in the third quarter.