SAO PAULO , Jan. 14, 2013 (RISI) – Brazilian 410,000 tonnes/yr bleached eucalyptus kraft (BEK) pulp producer Jari on Jan. 15 will definitely stop production due to financing reasons as announced last year. Controlled by Grupo Orsa, Jari will be out of action for some months until its executives can analyze better manufacturing options to recover its activities.
The reasons mentioned can be found here, in short:
SAO PAULO , Nov. 1, 2012 (RISI) – Brazilian firm Grupo Orsa has started informing customers and suppliers that it will shut its Jari 410,000 tonnes/yr bleached eucalyptus kraft (BEK) pulp mill, located in Monte Dourado, Pará state, northern Brazil, by January 2013 due to financial and technical problems, industry contacts said today.
I found this report on the sustainability of Jari Cellulose S.A. , which is apparently the entry to an academic writing competition. The section ‘Financial issues’ features this paragraph:
The pulp mill was struggling with deficient and obsolescent technology, minimal levels of
maintenance and unstable production. No investment had been made in the mill for manyyears, leaving the company technologically behind its main competitors (the Brazilian pulp sector renewed its technology every ten years or so). This situation made it difficult for Jari to compete against the larger and more efficient Brazilian pulp mills.[my bold]
So, while in the paper industry it is quite generally said that eucalyptus pulp can be used as well nowadays as pine, spruce or birch, this does not mean that any eucalyptus pulp will do better in the market place – especially if potential price benefits are offset by costs deriving from inefficient production processes.
My main point here is that also with a beneficial raw material (i.e. fast-growing eucalyptus) a company still needs investments, especially in controlling energy usage. Some future post will reflect more on the use of energy in the pulp and paper industry, and how the cost structure of pulp (and paper) can be changed through innovation.