Metso Paper to rebuild the Sabah pulp mill in Malaysia

Published June 9, 2008 13.00.00 +2 GMT

Metso Paper has received an order from Sabah Forest Industries, a subsidiary of India’s largest paper company, Ballarpur Industries Limited, for major rebuild of its pulp mill in Sabah, Malaysia. The value of the order is approximately EUR 30 million. The rebuild project will be started during the second half of 2009.

The prestigious order includes a new wood handling line, major rebuild of the cooking plant, the fiber line and an upgrade of the white liquor plant.

The new wood handling line will include log feeding, debarking, chipper and screen room. The cooking plant will be completely rebuilt and upgraded to the latest CompactCooking G2 technology. The rebuild of the fiber line includes installation of new wash presses, oxygen reactors, mc-pumps and mixers. As for the white liquor plant, it will include a rebuild of the recausticizing plant including pressure disc filter technology for white liquor separation and a number of main machinery including slaker and filter as well as an upgrade of the lime kiln.

Mr. R.R. Vederah, Managing Director of Ballarpur Industries, said, “Metso Paper was selected for the rebuilding and upgrading exercise as they have a proven track–record of success in undertaking large scale projects. This exercise is in line with our vision of realizing the true potential of our plants.”

Björn Olausson, Area Vice President, Sales Fiber and Power business lines, Asia Pacific, Metso Paper Inc. said, “We are proud to be associated with Ballarpur, India’s largest paper company. As the chosen partner for Sabah Forest Industries, Metso will provide expert service, experienced man-power and state-of-the-art technology to rebuild and upgrade the Sabah pulp mill in Malaysia. We are proud to take on the role of a full scope supplier.”

Ballarpur Industries Limited, part of the US$ 3 billion Avantha Group, one of India’s leading business conglomerates, is India’s largest manufacturer of writing and printing paper. Ballarpur accounts for over 50 % of the coated wood-free paper market, an impressive 85 % of the bond paper market and nearly 45 % of the hi-bright maplitho market in India. Ballarpur has six manufacturing units across the country, with a capacity for producing 450 000 tonnes of paper and 100 000 tonnes of pulp every year. In 2007, Ballarpur acquired Sabah Forest Industries, Malaysia’s largest pulp and paper company with a production capacity of 150 000 tonnes of paper and over 130 000 tonnes of pulp per annum. This acquisition has elevated Ballarpur’s global ranking to 87.

Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its over 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. www.metso.com

For further information, please contact: Per-Åke Färnstrand, President, Fiber business line, tel +46 70 63 33 946 Björn Olausson, Area Vice President, Sales Fiber and Power business lines, Asia Pacific, tel +65 9621 1836