RENKUM, The Netherlands, Nov 12, 2014 (Press Release) - The Parenco PM-2 conversion case is progressing well towards a positive investment decision.
First of all, Parenco management wants to clearly state that it will continue the successful production of SC-B at its PM-1. Through close co-operation with it's customers Parenco has been able to build a solid position in the graphical market and is committed to further strengthen that position in the years to come. The mill will continue to focus on high product quality and strong orientation towards customer requirements.
On that strong basis the firm initiated a process to convert its PM-2.
The machine that was idled in 2009 as a standard news machine is planned to be rebuilt into a Recycled Containerboard paper machine.
The key grades will be Testliner 3 and Fluting with an estimated output of some 360.000 tons in a grammage range of 70-160 gr/m2 and with high strength properties.
Over the past months Parenco has hired a dedicated, highly experienced team to assess the market potential in depth.
The assessment included discussions with potential key-customers regarding product specifications and commercial elements.
Also, this team has developed a detailed conversion concept of the machine in close cooperation with renown machine suppliers who have submitted detailed conversion proposals.
The proposals have confirmed the excellent current condition of the machine, its technical potential to produce testliner and fluting, its highly competitive cost position on the cost curve and the feasibility of a potential commercial start-up (take-over) in the first half of 2016.
The conversion of PM-2 is expected to further strengthen Parenco's long term strategic position as highly competitive producer of both publication- and packaging paper based on recovered paper.
A final investment decision is planned for early next year. In the meantime, machine suppliers have received orders to work-out the detailed engineering of the conversion.
Parenco will provide further information in due course.