The AV Group, a Joint Venture of the Aditya Birla Group of India and Tembec of Canada, announced ambitious expansion plans for the production of dissolving pulp, the main raw material used in the manufacture of Viscose Staple Fibre (rayon).
As a result of mill conversion plus implementing new technologies and strategies, AV Group will increase dissolving pulp capacity at its two New Brunswick mills in Atholville and Nackawic by 300,000 ADMT/year over the next two years.
"We are very excited about the proposed plans to increase the capacity of our current dissolving pulp operations in New Brunswick," said Mr. Peter Vinall, President and CEO of AV Group.
"The steps are a testament to the company's confidence in our Canadian operations, and assuming a successful plant conversion in Nackawic and our ability to secure competitively priced wood and energy we will press forward with these plans."
"The move is also part of Aditya Birla Group's global sourcing strategy which includes the evaluation of additional pulp supply options to meet their global Viscose Staple Fibre capacity expansion plans."
By mid 2008, as a result of a series of de-bottlenecking projects that are already underway, the AV Cell plant in Atholville will increase its production of dissolving pulp from its current level of 116,000 ADMT/year to 126,000 ADMT/year. By 2009, the company is expected to reach 140,000 ADMT/year by using a unique bio-refinery technology.