The current phase of the Irving Pulp & Paper Mill Modernization project is approximately 87% complete. The new equipment and technology is on schedule for commissioning and start-up by March 2016. The project is part of a $450 million modernization – the largest pulp mill investment in Canada since 1993. Operators at the mill are preparing for the new digester equipment with simulation training next month. “We’ve invested in training software very similar to flight simulator technology,” said Rob Wilcox, Senior Electrical Engineer, Irving Pulp and Paper. “The virtual control system simulates the entire process, complete with all of the flows, pressures, and temperatures. We’ve programmed simulations for the digester operator to start-up the digester, fill it with chips, introduce an upset condition, and have him learn how to adjust. This allows us to simulate operation before we are actually able to use the digester itself."
Due to a lower pace in the initial start-up of the new board machine at Gruvön, the effect on the result in the third quarter is adjusted by approximately SEK 150 million. The effects in the fourth quarter and the full year 2020 are expected to be unchanged. The machine is still expected to make a positive contribution to EBITDA in 2021.
The customer response on produced and sold material is positive and the technical quality is satisfactory. However, production volumes from KM7 in 2019 are expected to be lower than previously planned. This is mainly due to lower pace in the initial start-up in combination with the complexity of the integration with the existing mill. The market demand for the material produced continues to be good and the machine is still expected to run at full production capacity in 2023.
The negative full-year effect 2019 on EBITDA for the start-up of KM7 is adjusted from SEK 500 million to SEK 650 million. The effect on the result impacted the first half-year by SEK 190 million and is estimated to impact the third quarter by approximately SEK 300 million and the fourth quarter with approximately SEK 160 million.