A WHOPPING R765-million has been earmarked to upgrade Felixton’s paper mill into a lean, green pulp machine.
Mpact Limited, formerly known as Mondi Packaging South Africa, is spearheading the major ‘lightweighting’ upgrade that will not only improve the company’s environmental footprint, but also increase its production capacity by 60 000 tons to 215 000 tons per annum.
According to Mpact CEO Bruce Strong the significant investment is worth every penny in furnishing the local manufacturer with the latest paper mill technology and machinery to enhance its total product offering and overall competitiveness.
‘This project will also lead to substantial improvements in energy and operational efficiency.
‘Its benefits include the capability to further enhance our paper properties while simultaneously producing advanced lightweight packaging material.
‘The drive for ‘lightweighting’ is a notable feature of the packaging industry where reducing the weight of products transported over great distances is essential,’ said Strong.
Once completed in 2017, the upgraded mill will use only recycled fibre in the manufacturing process.
Two phases
Phase One of the project entails the installation of additional process equipment to increase the use of recycled fibre and produce enhanced quality lightweight paper.
This will be commissioned in the first half of next year and see 20 000 tons of additional capacity come on line.
In Phase Two, the paper machine will be rebuilt to produce paper from 100% recycled fibre rather than using sugarcane bagasse.
It will allow a further 40 000 tons of capacity in the second half of 2017.
The entire project is expected to create around 600 construction jobs.
Strong believes the Felixton Mill’s makeover will also boost job creation in the recycling industry.
‘Mpact Recycling has initiated projects to develop collections in deep rural areas and in former township areas.
‘These initiatives are based on assisting local entrepreneurs to set up businesses and providing support for them through the provision of equipment and purchases of collected paper.’
The company, which serves the domestic and other African customers, stated it has so far enjoyed good growth in the local market and sees growing demand for higher quality recycled-based products similar to international trends.
‘Against this background we are pleased to be building the manufacturing capability to ensure that South Africa remains globally competitive in recycled paper production,’ Strong said.
Triestig voor de honden !
I am curious as to the use of LOCAL EXPERTISE on these exiting expansion and upgrade plans? (including Consultants, Contractors, Suppliers, etc., etc.) Have LOCAL been given some sort of preference in procurement decision-making, or is it, like the norm with local industry, again a situation of using external skills to the sad loss of the local economy ?
Or, is it another case of my favourite saying “THE COST OF THE LOSS” ?!
One wonders what are the plans for the bagasse? The use of the bagasse was a handy way to economically get rid of what is effectively a waste product of sugar manufacturing. Is it no longer economical? What is to become of it?
What is going to happen to the bagasse. Using the bagasse was once punted as an ecomical way to get rid of a waste product of the sugar mill. Is it no longer economical?