Why tissue converters should invest in pre-owned equipment

At one time or another, tissue converters are faced with purchasing or replacing equipment. It is a substantial investment that warrants careful consideration about how to spend capital. There is always the option to buy new, but at times it is simply a better business decision to acquire pre-owned machines.

The benefits of buying pre-owned equipment

There are several advantages to purchasing quality pre-owned machines, not the least of which is the price difference between used and new — commonly an immediate cost savings of thousands of dollars.

In addition to bolstering the bottom line, well-maintained pre-owned equipment offers:

• A reliable solution without the wait: New equipment generally has to be custom ordered and manufactured, lengthening the timeline around delivery and use. Pre-owned equipment may be immediately available, which means faster availability, use, and ROI.
• Lower insurance premiums: Insurers base coverage and pricing based on what it would cost to replace equipment, not the amount the equipment may sell for in the future. Since the replacement cost of pre-owned equipment is generally lower than that of new machines, insurance premiums will often reflect the difference.

Factors to consider when choosing used equipment

Saving money and time is a compelling reason for purchasing pre-owned equipment, but it shouldn’t be the only one. Before committing to pre-owned, verify:

• Physical expansion capacity to accommodate immediate needs and those anticipated within the next few years
• Availability of technology upgrades to prevent early equipment obsolescence
• Production capabilities that align with the required product attributes and specific paper runnability such as TAD/structure or LDC/conventional
• Status of safety and control systems to ensure regulatory compliance (which may require review and confirmation by the machine’s OEM)
• Warranty specifics that cover service, support, spare/replacement parts, and maintenance

Spare parts availability

Pre-owned equipment carries with it some risk of parts obsolescence. This puts tissue converters at a disadvantage if a workable solution isn’t established before purchase. Machine malfunction could result in prolonged downtime while scrambling to find available parts, or accepting and using sub-quality parts for the sake of what will ultimately be a temporary fix.

Confirming the availability of and stocking genuine OEM spare parts may mean a slightly higher initial expenditure on the pre-owned equipment. However, it is a practical and cost-effective way to avoid the more costly consequences of not having the parts on-hand.

To make sure you’re asking the right questions about finding tissue converting equipment that’s the right fit for your line, goals and budget, ask for guidance from leaders in the tissue converting equipment market. Reach out to us today to explore your options — especially if you’re considering purchase of a used or refurbished Valmet machine.