Domsjö Fabriker Plans More Investments in Specialty Cellulose, Biorefinery
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The board of directors of Domsjö Fabriker, Sweden, has announced further investments in its Domsjö 2012 program, which aims at increasing specialty cellulose capacity to 255 000 metric tpy. The company also said that it plans further investments in its biorefinery operations in Örnsköldsvik, Sweden. Additionally Domsjö is investigating other opportunities such as business acquisitions, according to CEO Ola Hildingsson. During 2011, some SEK 280 million will be invested in these projects.
The new investments come on the heels of investment decisions earlier this year totaling SEK 300 million. These included a new lignin dryer and a new debarking facility.
As a result of the development program, Domsjö 's cellulose capacity will increase from approximately 200 000 metric tpy to 255 000 metric tpy. Hildingsson noted tht this expansion "allows us to grow with our customers in the expanding textile market, and we wish to expand as soon as possible."
Domsjö specialty cellulose is mainly used for viscose textiles, which the companay emphasizes is currently experiencing strong growth.The growth, it adds, is due to a decline in cotton production. Hildingsson explains that one option would be to convert an existing sulfate pulp mill in Scandinavia. "However, this is complicated and expensive. Another option we are evaluating is to start producing specialty cellulose in South America. Nothing is decided yet," he concludes.
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