Sappi to convert Maine paper machine to board production

South Africa-based forest products and paper company Sappi is undertaking a conversion process from graphic paper to packaging board on one of its paper machines at its mill in Somerset County, Maine.

The company, which uses predominantly or exclusively virgin wood fiber to make its paper and paperboard, is investing up to $418 million in Maine to convert its paper machine 2 (PM2) from graphic paper to paperboard production.

Although the new packaging board paper machine may not consume old corrugated containers (OCC) or any other recovered fiber grades, it will add up to 470,000 tons more of annual solid bleached sulphate (SBS) capacity to the United States paperboard market.

Sappi provided information about the conversion in a presentation that accompanied results from its fiscal year 2024 first quarter, which ran from Oct. 1 to Dec. 31, 2023.

The Somerset mill PM2 conversion from coated woodfree (CWF) office paper to SBS board is part of a larger change in product mix it calls its “Thrive” strategy, designed to allow Sappi to continue to expand and grow packaging and specialty papers in all regions.

Sappi has mills in South Africa, Europe and North America but does not claim to be a large-scale consumer of recovered paper. In South Africa it operates the Sappi ReFibre network of scrap paper collection and processing plants, and in the U.S. it joined The Recycling Partnership not-for-profit effort in 2018.

In Maine, its PM2 conversion will involve halting production of up to 235,000 tons of CWF and installing machinery to make up to 470,000 tons of bleached packaging board.

Sappi predicts the newly reconfigured PM2 will be able to restart in the second half of its 2025 fiscal year, which runs from April 1 to Sept. 30, 2025.

The new SBS capacity will be welcomed, Sappi says, adding, "North American demand for food service board and flexible packaging exceeds the current supply.”

The forest products company also predicts a significant growth opportunity as consumer demand for packaging shifts from plastic to paper.