Saudi Paper Group boosts capacity with TM investment

Saudi Paper Group (SPG) has invested in a Toscotec-supplied AHEAD 2.2L machine to be installed at its Dammam facility in Saudi Arabia. PM5 will be supplied on a full-on turnkey basis, and it follows Toscotec`s supply of a complete AHEAD 2.2S line that is currently undergoing erection at the same tissue mill. The new machine has a sheet trim width of 5.6m, a maximum design speed of 2,200m/min, and an annual production capacity of over 60,000tpy. Start-up is scheduled for 2024. The tissue machine is equipped with TT NextPress upgraded design shoe press, a third- generation design TT SYD Steel Yankee Dryer, and high efficiency TT Hood. The scope of supply also includes two OPTIMA 2600L slitter rewinders devised to preserve bulk and softness while ensuring optimal winding performance. Yousseri Abdel Hamid Abdel Aziz El Bishry, Chief Executive of SPG, said: [Progressing on the path of strong expansion we have set for SPG, we selected Toscotec for this second tissue line because we value both their ability to deliver first-in-class technology and their proven history of successfully managing complex turnkey operations." Founded in 1989 as a private enterprise in Saudi Arabia, the Saudi Paper Group includes three subsidiaries specialising in tissue jumbo rolls manufacturing – named Saudi Paper Manufacturing Company (SPMC) – tissue converting, and paper recycling.

Toscotec introduces 100% hydrogen fuelled burners

Toscotec has responded to customer demand with the launch of its patented TT Hydrogen Burner, its latest generation of 100% hydrogen fuelled burners designed and tested for Yankee hoods. The supplier said it developed the system to drive the conversion of paper manufacturing to clean energy. It said: [TT Hydrogen Burner is an in-line burner featuring precisely controlled combustion and two safe operation modes. [In carbon-free mode it runs on 100% hydrogen; in carbon-reduction mode it is fuelled by a mixture of natural gas and hydrogen, where the percentage of hydrogen is accepted across a wide range." The supplier also added that the TT Hydrogen Burner [entirely matches the high performance of gas-fired burners, using a carbon-free fuel", adding that the key factor in the overall energy balance is that hydrogen fuel is produced from renewable energy sources. Stefano Pecchia, Energy Technology Director at Toscotec, said: [Tissue producers are asking for technological innovations that will allow them to work in full hydrogen mode. [Whether they choose to replace their existing burners or install new tissue lines, tissue producers aim to be ready for when this fuel will be widely available, cost competitive and green.

P&G announces its largest solar energy project

Procter & Gamble (P&G) has said it is working with renewable energy company ENGIE North America on its latest and largest solar energy Power Purchase Agreement. P&G`s said the 200 MW partnership helps progress its aim to achieve net zero greenhouse gas emissions across its operations and supply chain by 2040. The business added that the new Sun Valley project in Hill County, Texas, is [expected to remove harmful carbon dioxide (CO2) emissions from the electricity grid each year". Through the agreement, ENGIE will supply P&G with more than 530,000 MWh of renewable power annually. Sun Valley project solar panels will power the equivalent to the annual electricity needs of more than 50,000 US homes and will support the local agricultural ecosystem. P&G said that the 200 MW project is the largest global agreement it has developed with ENGIE. Nate Nelson, Purchasing Director, Global Energy Purchases, P&G, said: [The transition to renewable energy is part of P&G`s comprehensive plan to accelerate action toward net-zero GHG emissions by 2040. [Investing in and partnering to build new renewable power projects that bring long-term, zero emissions renewable energy online is vital to hel

The tissue industry`s famous resilience is facing up to the challenge

Tissue company executives need no telling how energy costs not seen in decades are impacting their businesses. They will, however, be keen to know how some of their industry colleagues are fighting back. MarketIssues provides a snapshot of the immediate challenges, and reveals strategies employed to see out the ordeal. Spain-based L.C. Paper has been operating for 140 years and exports to more than 40 countries on four continents. General Manager Pau Vila relates the startling figures of the last few years. For 20 years gas prices hovered between €12/MWh and €17/MWh. They are now around €222/MWh, and what was hopefully a peak at €350/MWh – a 2,000% increase. Historically, electricity prices moved between €35/MWh and €60/MWh. Now they are €300/MWh to €400/MWh. His monthly energy bill has risen, rapidly, from about €350,000 to upwards of €2,000,000. Managing Director Khalid Saifullah says Star Tissue, UK, scrutinises [every inch of the business to help mitigate each crisis." Negative margins are anticipated and, where possible, mitigated. Elsewhere across Europe, several mills have been forced to reduce production or close over the last few months, some temporarily and some permanently. In Germany one toilet paper company went into insolvency in September. The responses? Huge investment is going into automation, unnecessary processes are being cut, in

MarketIssues: Operational excellence – companies must quantify, track, and improve process variability daily at paper machine level

Manufacturers need to pursue innovative ways to decrease consumption and make their factories more efficient as energy and raw material prices soar. Report for TWM by Eduardo de Almeida, Managing Director, AFRY Zaragoza. In a time where cost savings are more important than ever, there is one low hanging fruit that most manufacturers are still overlooking: process variability. In this article, we`ll identify the main sources of variability in paper tissue production, and more importantly – how to tackle them. Soaring costs are pushing for efficiency As prices of energy and raw materials soar, manufacturers pursue new ways to decrease consumption and make their factories more efficient. Higher costs mean that investments that were in the past dismissed due to long paybacks are now becoming attractive. Sustainability, and the push towards carbon-neutrality also puts pressure on companies to invest in green technology. Whilst companies should undoubtedly keep focus on green investments, there is a low-hanging fruit that often goes unnoticed: operational excellence. Reaching stable basis weight is a struggle In a recent article published in Tissue World Magazine in 2021 we discussed how manufacturing variability is common in the paper industry; companies are struggling to control base weight even within a single batch, and to meet minimum weight tar

Essity announces price hikes in response to energy cost pressures

Essity is announcing price increases for all product categories and markets following a raft of energy price hikes for electricity and gas in Europe. Prices for electricity and gas have risen sharply in Europe since July 2022, while costs for the company`s raw materials such as pulp have also [risen significantly" in the third quarter. The business said that following these additional cost pressures, it would announce a new range of price increases. Magnus Groth, President and Chief Executive, Essity, said: [The cost headwinds have worsened further. [We will manage this situation through new comprehensive price increases and energy price surcharges and are continuing to invest in our strong offering under leading brands and to supply essential hygiene and health solutions to Essity`s customers and consumers every day. [The timing and degree of the price increases will be managed locally." He added that the business was also preparing and assessing the risks and effects of different scenarios, such as a rampant energy cost development and possible energy shortages. [We have implemented a series of measures such as finding alternative fuels, increasing our stock levels and leveraging our European wide pro

Tietoevry tissue study 2022 has launched! Industry invited to participate

Finnish technology company Tietoevry has teamed up with Tissue World, Valmet, Fisher International and I-Plan to launch its Global Tissue Trends Report 2022. Tissue industry leaders and decision makers are invited to participate in the global study which analyses key market trends in business, industry efficiency, sustainability, and digitalisation. Tietoevry is collecting responses from top management decision-makers until 30 September. Jarmo Ropponen, Head of Sales and Marketing at Tietoevry Industry, Pulp, Paper and Fibre, said: [This truly unique study is our most modern and global to date and focuses on key tissue industry market trends in business, sustainability, efficiency and digitalisation. [The study is part of our TIPS for Tissue campaign, our latest offering for the pulp, paper, fibre, packaging, and tissue industries. [It will provide tangible benefits that help leaders in the tissue and towel industries face today`s business challenges, and also help prepare the market for tomorrow`s requirements." The global tissue market is forecast to continue growing in the coming years due to increasing population growth, rising concerns about health and hygiene, and innovative products launched by tissue

Distribution special, E80 Group: `Automation today is not just essential, it`s available for all`

Many smaller companies doubted ROI from automatic assets combined with smart software, but those days should be over, says William Nelson, President, E80 Group North America. A TWM report. One of the most common statements I`ve heard over the years goes like this: [Yes, we`d love to be able to afford to do that like the Big Guys are doing." But is this statement pertinent today? Is automation only the domain of the [Big Guys," or is it time to re-think this well-worn theory that automated material handling requires size to justify traditional ROI? Let`s take a look at what we have been able to execute so far: • Just about any function in material handling can be automated: – warehousing of finished products and raw materials in block storage or racks of any type; – fully cubed trailers are loaded automatically; – parent rolls are stored and delivered into the rewinder; – raw materials are directly delivered to production assets; – most recently, trailers are unloaded automatically. • Automatic vehicles support operations, allowing managers to focus on productivity, efficiency,

Kimberly-Clark: Operations Report – A `fully reopening` Thailand sees its tissue demand boom continue

The country`s market leader Kimberly-Clark, celebrating its 150th anniversary, reflects on local shifts in shopping habits and pandemic-accelerated opportunities to pivot and drive stronger penetration for in-home consumption. Ratree Skuntantimeta, Managing Director, Kimberly-Clark Thailand, talks to TWM about growth in the Asia-Pacific region. [This year marks the 150th anniversary of Kimberly-Clark," Ratree Skuntantimeta, Managing Director, Kimberly-Clark Thailand, says from her office in Bangkok. [And throughout our history, we have always taken a consumer-centric approach in all that we do. This ties back to Better Care for a Better World, which reflects our ambition to be a purpose-led and performance-driven company." The Irving, Texas-headquartered multinational business has been producing personal care products for consumers globally since 1872. It established its two Thai-based tissue plants – one based in Pathum Thani, located in the northern Bangkok metropolitan area established in 1966, as well as the second in Samut Prakan, a central province on the Gulf of Thailand through the 1995 Scott Paper Company merger, and to this day it is still one of just a few Western-headquartered tissue manufacturers in the Asia-Pacific region. In Thailand, it is the country`s leading provider of hygiene and cleaning solutions, manufacturing and distributing a variety of products in three core areas: consumer tissue, personal care and Kimberly-Clark Professional. It manufactures Kimberly-Clark facial tissue, bath tissue and paper towels under its Scott and Kleenex brands for both its consumer and professional businesses (Kimberly-Clark P

Domestic consumer tissue demand is outpacing Thailand`s home production capacity

Thailand has relatively low unemployment at 0.99% in 2019. Figure 2 shows the unemployment trend as a series of bars. While it did spike up in 2020 due to the pandemic, it was still considered at a relatively low level when compared to most other economies. In 2019, Thailand`s inflation rate was 0.7%, which again, is very low compared to most other countries. The inflation trend is shown in Figure 2 as a line. These statistics however tend to put Thailand in a relatively good position for consumer spending. These economic and demographic factors have supported a relatively slow growth in domestic tissue consumption. This is reflected in the cautious growth of Thailand`s tissue machine fleet. The changing trend in the number of tissue machines is shown in Figure 3. Seven new machines were installed between 2013 and 2021, while only one was removed in 2017. Several tissue manufacturers are active with two or more mill sites in Thailand. Notable is the international company Kimberly-Clark, headquartered in the United States. Thailand is very involved in international trade and runs a small positive trade surplus. However, the country tends to import more tissue than it exports. Figure 4 shows the tissue exports with a significant drop starting in 2018. Current tissue customers include Australia, Malaysia, Myanmar, and the United States. Thailand`s tissue export trend shown in Figure 5 shows an interesting anomaly. The trend of imports shows a linear growth pattern that indi

Essity net sales increase 27.8% in half-year report; plans further price hikes

Essity has reported [record growth and higher sequential profit" in its half-year results. The margin was positively impacted by higher volumes, higher selling prices and a better mix. In its Consumer Goods division, during January – June 2022 compared with the corresponding period a year ago net sales increased 26.0% to SEK 43,956m. Sales growth, including organic sales growth and acquisitions, amounted to 16.9%. In its Consumer Tissue segment, during the period organic sales growth amounted to 15.8% and for the Consumer Tissue Private Label Europe division to 25.1%. The sales growth was mainly the result of price increases, but volumes were also higher. The group also implemented price increases, and further increases will be carried out in the second half of 2022. It said its assets in Russia have been impaired by approximately SEK1.6bn and work has been initiated to exit the Russian market. Magnus Groth, Essity President and Chief Executive, said the results showed [record growth and higher sequential profit." [In a turbulent world, Essity stands strong. We have further strengthened the

Range of pulp price increases announced by world`s producers

Suzano and Klabin have confirmed they are announcing a range of global pulp price hikes in July. Swedish pulp producer Södra declined to comment on any plans to implement further increases when contacted by TWM. Suzano has confirmed to TWM it is raising hardwood prices in three markets and that the increases will be between $20 and $40 per tonne. In Europe, the price of eucalyptus will be increase by $30 per tonne, raising the reference price to $1,380 per tonne. In North America, it will increase its prices by $40 per tonne, meaning that the cost of one tonne of eucalyptus pulp will now be $1,610. In China, it will make increases of $20 per tonne, pushing the current price of $840 per tonne up to $860. Suzano declined to comment further. Klabin also confirmed to TWM that it will apply readjustments in the price of eucalyptus pulp ranging from $20 to $40 per tonne. In America, prices per tonne will increase by $40, resulting in a tonne of pulp now costing $1,610. In Europe, prices will be increased by $30, rais

Greentech Global to promote plastic and PFAS-free PROTĒAN products with Amazon Papyrus Chemicals

HS Manufacturing Group (HSMG) and parent company Greentech Global have announced a partnership with specialty chemicals company Amazon Papyrus Chemicals to promote its PROTĒAN plastic-and PFAS-free barrier products across the Asia-Pacific and Middle East region. The PROTĒAN range includes blends of plant-based derivatives that have been used for decades in foods, cosmetics, pharmaceuticals, and other applications. Samuel Mikail, Chairman of HSMG parent company Greentech Global, said: [HSMG`s discovery of the barrier properties of these materials launched an entirely new approach to displacing plastics and PFAS, both widely used classes of materials that are being replaced around the globe as quickly as possible due to environmental, health and safety concerns. [The applications of PROTĒAN include oil and grease takeaway papers and molded fibre packaging. Agricultural mulches and containers are also significant opportunities. [Such new, sustainable solutions can be equally effective and as economically viable as plastic and PFAS." The Asia Pacific region has been phasing out [non-recyclable" or single-use plastic due to sustainability initiatives from governments and brand owners. Carmen Wong, Group Corporate Strategy & Development Director of Amazon Papyrus Chemicals, states that the current market of fibre-based packaging widely uses PE film and aluminium foil which are har

India: Improved manufacturing climate and infrastructure, rising urbanisation and income, hygiene awareness and surge in tourism sees new levels of tissue growth

Despite its low global tissue volume share compared with its substantial population, India is projected to grow in volume at an 11% CAGR over 2020- 2025* – outperforming most peers. Here, Sumit Khanna, Chief Executive of New Dehli-based Beeta Tissues, a leading manufacturer and trader of tissue paper in India, discusses the key trends across the country. When I last wrote for Tissue World Magazine in 2016, India was preparing for an expected surge in tissue demand. Under the dynamic leadership of Prime Minister Narendra Modi, the country was poised for a substantial leap forward. Regional tissue growth rates were already reaching 20-25%, and the new one-party government was clearing away restrictions on manufacturing and allowing international players to enter the market. Now in 2022, a lot of that potential has been realised. Due to rising disposable incomes, improved institutional infrastructure and rising urbanisation in India, tissue consumption is growing like never before. This is especially the case in the hospitality and health care sectors following the outbreak of the pandemic, while it`s not yet possible to say the same for the corporate sector at this time. What we are seeing is that the kitchen towel market has increased substantially, while the growth in the m-fold towels category is marginal. There is also a high increase in the e-commerce sector following the outbreak of Covid-19.

MarketIssues AfH special: With global AfH sales at $25b in 2021 (fixed US exchange rate, real value, msp), the looming recovery will be uneven in a post-Covid-19 market undergoing widespread change

The recovery of the global $25bn msp AfH market (the figures in the report reflect data released in February 2022) brings opportunities as well as challenges. In 2021, the AfH boxed facial tissues market is worth $2.3bn msp, AfH paper tableware $6.9bn (combined napkins and tablecloths), AfH paper towels $5.8bn, AfH toilet paper $7bn, AfH wipers (paper and nonwovens) $3.1bn,. A global recovery of AfH demand hinges on consumers` financial confidence and the health of the foodservice and hospitality industries, which are largely at the mercy of the state of virus control and any future global shocks due to new variants. In an uncertain environment, wipers (especially nonwovens) offer a great growth potential, given their cleaning and disinfecting efficiencies. Key findings are: Heightened hygiene awareness, which will generate new user occasions and drives product improvements. Hygiene vigilance is fuelling tissue consumption and quality expectations across the globe leading to new products with better cleaning properties and an improved user experience. Rising disposable incomes, urbanisation and a health-centric lifestyle shift in emerging markets will continue to present significant opportunities for greater AfH tissue penetration. Structural changes in business, education and foodservice have squeezed tissue demand. Pandemic-accelerated structural shifts such as remote working, e-learning and food delivery, will recast the AfH landscape, and, depending on the extent and duration of these shifts as the pandemic develops, will weigh on AfH tissue demand in at least the short term.

K-C confirms it won`t sell Latin American operations

Kimberly-Clark (K-C) has confirmed it has not announced plans to put its Latin American operations up for sale following reports it planned to sell the business. According to reports published in Brazil, K-C has hired JP Morgan bank to sell its operations in Latin America in a deal that could reach R$5bn. However, a K-C spokesperson told TWM: [Regarding media speculation about our operations in Latin America, Kimberly-Clark has made no such announcement, and as a matter of policy we do not comment on rumours about our business. [We are focused on how we deliver long-term sustainable growth for the future across all categories in which we compete. [Last week the company detailed the significant investments it is making in our Latin American business and our people in an interview with Valor Economico. [These investments reflect our continued focus on serving consumers across the region."

Euromonitor: A strong tissue culture, regionally stable Mexico well placed to react to economic uncertainties ahead

Although Brazil remains the epicentre of the Latin American tissue market, replacing Mexico as the largest contributor to regional volume sales back in 2007, the comparison belies the stronger tissue culture that exists in Mexico. Population and income levels are critical factors, Mexico with 129 million inhabitants (almost 100 million fewer than Brazil) has a mean household disposable income of close to $20,000 in 2021, compared to roughly half that figure in Brazil. This Mexican market accounted for 25% of Latin American regional volume sales in 2021, a figure that has crept downwards over the last decade as other markets have seen tissue uptake expand through a combination of availability and income increases. The battle over share of regional value is potentially a more interesting story, relatively more stable Mexico taking a 23% share in (USD MSP value sales) and was once again the region`s largest value contributor as economics, relatively more stable Mexico, continued to underpin changing consumer lifestyles, in which tissue products play an important role, which was especially the case during this pandemic period. International comparisons By a more international comparison, the tissue market (retail tissue in this comparison) in per household expenditure terms is positive with USD49 is well ahead of the global average ($40) and respectable when compared to developed markets such as Japan ($67). The Mexican tissue market, like others, faces uncertain and changing times, the spectre of price inflation likely hampering [real" premiumisation, but there is still muc

MarketIssues Special Report: Tissue World Miami 2022

The modernised Miami Beach Convention Center was the perfect location to welcome the global tissue and towel industry back to in-person business during 15-18 March, 2022. It was the first time the industry had met in-person since the start of the pandemic, with many in the industry meeting friends and business partners again for the first time in many months. North America`s largest tissue exhibition and conference welcomed more than 100 exhibitors and over 1,200 total participants from 47 countries. The new-look tradeshow floor hosted visitors and exhibitors keen to sign deals and view the latest technologies: from paper machinery, through to converting, packaging, chemicals and AI. Hundreds of attendees at the four-day conference – with the theme Tissue Today & Forever, Drivers and Strategies for a Sustainable Future – heard delegates discuss a wide range of issues in deep-dive question and answer sessions aimed at navigating the challenges of the years ahead. Expert speakers from across tissue`s value and supply chains shared industry insights and expert knowledge on the latest trends and developments, which also included technical sessions from leading machinery suppliers and the Yankee Dryer Operations Workshop. The networ

The World's Largest Dedicated Tissue Industry Trade Show is moving to Germany

Tissue World is set to take place in Düsseldorf from March 28-30 2023, welcoming back thousands of industry professionals for a 3 day trade show and conference. Only at Tissue World can you discover the very latest products in tissue and paper manufacturing, from paper converting and tissue packaging machinery to stock preparation, chemical solutions and sanitary product OEM manufacturers.

Soft promo launch will begin on 13th May on Singapore ShengSiong Newest outlets

Some may call us stupid while brands are consistently moving online. However, we still firmly believe in working with our friendly neighbourhood supermarkets in SG to bring our products even closer to you. Starting Mid May, our rolls will be rolled out to ShengSiong Supermarket outlets islandwide. A soft promo launch will begin on 13th May on ShengSiong Newest outlet launch. Are you able to guess where is it? Check us out in stores. - Bringing Quality to your Doorstep. Share and let your friends know today!

ExitIssues: North America`s tissue finances are strong- but ageing machinery will need to be replaced to meet the rise of China and Europ

With four of the top 10 largest global tissue manufacturers in China, future North American investments are set to target advances in scale and technology, and over 80% of the new capacity is believed to target the private label market. Market trends report by Sanna Sosa, Senior Principal, AFRY USA Investments in new large-scale state-of the-art tissue manufacturing assets continue to be active in North America, although in terms of the global tissue investment context, Asian and European tissue producers have surpassed North American producers in the race for capacity growth. The private label segment is expected to continue to grow in North America, which includes the US, Canada and Mexico. Many new machinery investments are targeting the sector, especially with ultra-premium quality technologies. The long term financial performance of the tissue sector is healthy, typically at or above 15% EBITDA, but impacted by the cyclicality of market pulp prices. Although pulp is the key cost driver for tissue companies, pulp integration remains rare. Investment: new large scale tissue machines continue to be built in North America Over the past three decades, the global tissue sector has gone through a strong period of growth, capacity build and consolidation. If we take a quick peek down memory lane and think how the global top 10 players` landscape looked like in the 1990s (Figure 1), we only see North American and European companies. In fact, the six largest tissue companies in the world were all North American companies

As China`s consumer-driven economy takes root and expands, domestic tissue consumption could easily double – even at the same population

China is papermaking`s birthplace and possibly the first to use hygienic paper frequently and consistently. Papermaking then kickstarted a whole new age in Europe before spreading to North America with the Fourdrinier continuous paper machine`s invention. The development of tissue-making technology started in North America over 100 years ago in order to create a new class of consumer hygienic paper use that eventually spread to developed countries worldwide. However, China`s rapid economic development has now returned to become the centre of global papermaking. In less than 15 years, tissue production and consumption grew swiftly to make the country the new centre of the tissue business. Figure 1 shows the current top ten tissue producing countries with their relative production rates. As we can see, China has more than double the production rate of the United States, the next largest producer. Because of this rapid growth, the installation of new tissue machines each year was required, as shown in Figure 2. This recent growth period from 2007 to projected 2022 saw China driving most new global tissue machine installations (about 65 to 95%) each year. This has been a boom to both the European tissue machine builders and the development of home-based tissue production machine builders in China. This addition rate slowed in 2015 as we see some machines were taken out as replacements came in. 2018 and 2019 saw more machine reductions as older mills with high pollution effects were remov

BuyFirst Network launches RR cores product into market

America`s BuyFirst Network has introduced its product RR cores, a concept for use in rolled paper products. RR cores replace the tubes with a reusable core that, according to the business, works equally as well on tubed, compressed tubed and tube free rolls. BuyFirst Network added this has [a significant beneficial effect on the environment". RR cores fit on to any existing bath tissue holder that uses a spring-loaded roller axle. The patented product – which the business said helps tissue producers reduce bulky packaging, storage, and shipping by up to 30% – has now been launched into the global tissue market. Russell Rickert, Chief Executive at BuyFirst Network, said to TWM: [RR cores are an innovative, inexpensive and simple device that will help tissue manufacturers deliver their paper products to end-users in a cost-effective and environmentally conscience manner. [Compressing the rolled paper tissue reduces the overall volume of products up to 30%, allowing for shipping more rolls of product with less air. [After compressing the overall packing, the RR core brings the rolled paper tissue back to life."