Bio Pappel US paper mill plans delayed

Bio Pappel US paper mill plans delayed

Company pushes back timetable to reopen mill in Port Angeles, Washington.

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March 2, 2018
Edited by Brian Taylor
Financial Paper

The McKinley Paper Co. subsidiary of Mexico-based Bio Pappel has reportedly pushed back its plans to reopen a paper mill in the United States Pacific Northwest that it purchased in March 2017.

Plans to retrofit the mill in Port Angeles, Washington, mill have been “put on hold,” according to an online article posted by the Peninsula Daily News. The retooling project involved converting the mill from one that made graphic paper, including paper for phone directories, to one that produces linerboard.

The mill, formerly owned by Nippon Paper Industries USA, had been targeted for a reopening before the end of 2018, but a McKinley Paper vice president quoted by the media outlet stated, “That’s not going to happen,” and added, “things are happening in the market” to cause the delays.

McKinley and Bio Pappel continue to operate a plant in Pruitt, New Mexico, in the U.S. that produces recycled-content linerboard.

When Bio Pappel acquired the Port Angeles plant in early March 2017, it stated the purchase would allow it to double its production capacity in the U.S.

“McKinley will convert the production of this plant to its business line to efficiently integrate it with its current operations in the U.S., which will allow it to strengthen its presence and competitiveness, as well as capture the opportunities of the new cycle of economic expansion expected by a significant reduction of taxes on businesses, an investment-intensive infrastructure and extensive industrial and financial deregulation, announced in that country,” the company’s March 2, 2017, news release stated.

“We consider that Bio Pappel is one of the companies best positioned to insert competitively into a new business environment where international paradigms are changing,” said Miguel Rincon, Bio Pappel’s general director and board chairman when announcing the purchase. “The company is convinced that Mexico, the United States and Canada are globally the best region to invest in, with or without the Free Trade Agreement.”

Bio Pappel produces several types of paper, including newsprint, corrugated cardboard graphic papers and kraft sacks at more than 40 plants in Mexico, the U.S. and Colombia. The company also operates 13 recycling centers for recycled fiber.

Corrugated Linerboard Mergers & acquisitions OCC