Tissue Mill in New York On Pace to Begin Construction in 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--Privately held Empire Tissue, LLC (Rhinebeck, New York) is pursuing air permits to build a new tissue and towel paper mill on a brownfield site in Solvay, New York. The company is proposing a $140 million investment to build a state-of-the-art tissue mill, with an annual output of 70,000 metric tons of recycled tissue, towel and napkin parent rolls for the away-from-home industrial market. The mill will be on a 67-acre site and will be in a 168,000-square-foot building that will include raw material receiving areas, a production area, and a warehouse. The location of Empire's mill places it in a location to serve markets across the eastern seaboard, as far as Chicago and Canada.

Empire filed for air permits last November and anticipates approvals by May or June of this year. Meanwhile, Empire is working to secure agreements with a steam host to supply the mill's thermal energy needs. The new paper machine will be supplied by Metso (Karlstad, Sweden). The company is also proceeding with financing and expects to secure funding in the third quarter. Site preparation could begin this fall, and the facility is slated to be operational by mid-2012.

Empire's management team consists of experienced veterans with technical and engineering expertise, and backgrounds in the capital markets and mill operations.

Empire has engaged O'Brien & Gere (East Syracuse, New York) on an engineering, procurement and construction basis with Dick Engineering (Toronto, Ontario), providing detailed engineering. The company is reviewing proposals from construction firms and may soon bring on board a firm to act as the owners engineer.

The tissue segment of the paper industry has proven to be most resilient, in terms of demand, when compared to other paper and paperboard grades. While most paper grades continue to face demand erosions, tissue demand and capacity is projected to increase.

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