SINGAPORE, Nov 20, 2014 (RISI) - Tokushu Tokai Paper has kicked off trial runs on a new tissue paper machine at its Shimada mill in Shimada city, Shizuoka prefecture, Japan.
The 2.2 m wide unit, PM 1, has a daily production rate of 50 tonnes, or 18,000 tonnes/yr.
It will produce high-quality grades for converting into value-added products, such as hand towels and coffee filter paper.
The firm plans to erect another, similar machine, PM 2, at the plant, with startup scheduled for December next year.
With the investment in the two new PMs, the company aims to retire two 18,000 tonne/yr units at its Yokoi facility, also in Shimada, which manufacture similar products.
Such a scrap-and-build strategy is common in the Japanese paper and board industry, and is aimed at avoiding causing negative impact on the domestic market due to overcapacity stemming from new machines.
A company spokesman said, however, the exact schedule for retiring the two old machines has not yet been hammered out.
He pointed out that the firm is expected to cut energy costs by Yen 400 million ($3.4 million) per year following the replacements of the old units with the new PMs.