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A Roller coaster of Change – Crown Paper Mill

While 2015 was a busy yr in phrases of initiatives and startups, there’s not a doubt that 2016 is/going to be a hard-hitting yr for tissue producers within the Middle East and North Africa .The winds are certainly blowing the place the ships don’t want to go, and a basic sense of uncertainty and vulnerability has began to sink among the many business’s main gamers within the area. Head-to-head competitors already began with the continuing decline in tissue jumbo rolls costs.

2015 was marked by main startups established by Faderco in Algeria, Hayat, Tezol and Ipek in Turkey and Abu Dhabi National Paper Mill within the United Arab Emirates:

  • Algeria’s Faderco, stays essentially the most energetic within the native hygiene business. Founded as a changing manufacturing unit for tissue and absorbent hygiene merchandise, the corporate got here into tissue manufacturing with a 30,000 tons per yr tissue machine that began within the final quarter of 2015.
  • Hayat Kimya has began its fifth tissue machine at its new location in Tarsus/Mersin, south of Turkey, with a manufacturing capability of 70,000 tons per yr.
  • Ipek selected to put in its fourth tissue machine on the Manisa changing facility in Turkey, including one other 70,000 tons per yr of tissue.
  • Tezol began its third tissue machine on the Mersin Tezol Kağıt location , boosting its current manufacturing capability by a further 30,000 tons per yr
  • With the brand new NTT machine at Abu Dhabi National Paper Mill in Abu Dhabi – UAE, the mill goes to extend its present manufacturing capability to 93,000 tons per yr. The NTT machine can ship excessive absorbency, excessive softness and excessive bulk merchandise, nevertheless the market will not be but ready for these high quality specs. Therefore there’s a risk it will likely be operated as a standard machine whereas ready for the market demand to mature.

Despite a at the moment uneasy market, many firms are nonetheless trying into totally different enlargement applications and choices:

  • The acquisition of the Crown Paper Mill in Abu Dhabi, UAE, by Ittihad International Investment, is the primary milestone in what’s seen as a brand new pattern which will develop additional within the coming years with many different acquisitions at the moment being mentioned.  Crown Paper Mill was established in 1996 and partially owned by the Gulf Investment Corporation (GIC). Since 2010, the mill operates two machines with a complete capability of 30,000 tons of tissues per yr. With this acquisition, Ittihad group secures an instantaneous place within the regional tissue market regardless of being a brand new joiner. The firm plans additional enlargement in tissue manufacturing in 2017.
  • Nuqul Tissue challenge in UAE, below the identify of Al Nakheel Paper Mill is already within the pipeline, with some delay which will happen in its startup on the finish of 2017. The new machine will produce 60,000 tons of tissues per yr to in 2017, thus boosting Nuqul Tissue current manufacturing capability of 155,000 tons per yr by a further 70,000 tons
  • The Expansion plans of Hayat Kimya Group in Egypt are on monitor with a 70,000 tons per yr Valmet tissue machine being put in on the group’s new web site in Ain Sokhn. The startup of the tissue machine is scheduled on the finish of 2016. Hayat Kimya operates in Egypt since 2012, as Hayat Egypt Hygienic Products S.A.E producing child diapers below the Moflix model.
  • The tissue changing firm, Al Faris Group in Saudi Arabia, has already contracted Papcel for the provision of its new tissue machine.
  • Handy – Alex Converta in Egypt stopped its manufacturing in 2015 and the possession of the mill has been transferred to the Habibco Trade Company.

Other initiatives are within the idle part, together with Gulf Paper Industries Factory challenge in Saudi Arabia, PMI challenge in Algeria and Ackef Pack challenge in Egypt.

It is tough to foretell after we will see an finish to this rollercoaster of change, particularly with the area’s ongoing social and financial unrest. However and though the ripples of regional struggles have reached the tissue market, the scenario has not been drastically affected and development remains to be seen in some components. In such situations, many operators and traders would attempt to quietly observe the scenario and probably transfer any plans till after the second quarter of 2016.

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