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BHKPBleached Hardwood Kraft Pulp (printing and writing paper)
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Prior to its idling in 4Q15, the Old Town Mill was engaged in the business of manufacturing and distributing approximately 155,000 air dried metric tons annually of bleached hardwood kraft pulp.
Northern bleached softwood kraft (NBSK) comes from Scandinavia and Canada, while bleached hardwood kraft pulp (BHKP) comes from South America--mainly acacia and eucalyptus from plantations.
Its pulp factory in Perawang, Bengkalis, Riau, has a production capacity of 1,631 million tons per annum, producing bleached hardwood kraft pulp. This factory also has a production capacity of 654,000 tons of writing paper and printing paper a year.
On top of that, China now has a new 3000 metric ton/day BHKP (bleached hardwood kraft pulp) at Hainan Jinhai (one of the largest single fiberlines in the world), as APP looks to rebalance the region's fiber deficit.
Asia currently consumes more than 10 million metric tons/yr of bleached hardwood kraft pulp, a figure that will likely grow to 15 million metric tons/yr by the end of the decade.
The nominal capacity of the bleached hardwood kraft pulp line is 3000 metric tons/day, although it should be able to hit 3,500 metric tons/day, according to the mill's management.
Not only are the export opportunities bright, but there is also a "first mover" advantage for the developer of a new bleached hardwood kraft pulp mill in Australia which could secure a sizable stake in the domestic market and compete against imports.
The share of bleached hardwood kraft pulp (BHKP) will grow especially fast.
Bleached hardwood kraft pulp (BHKP) finds primary use in coated and uncoated printing and writing papers.