Sidcot buying Chesterfield tissue mill from SCA

SCA is selling the Chesterfield mill, which produces about 31,000 tonnes of tissue grade material per annum, for £3 million to the Sidcot Group Ltd of Oldham. At present Sidcot Group converts tissue and produces away from home products under the Matryx brand but has no mill of its own. Chesterfield mill produces mother reels but has no converting capacity.

The machine closure and sale are expected to be finalised by the end of March 2017. SCA said it had no internal need for the type of mother reels produced at Chesterfield.

Sidcot will become a purchaser of waste paper for the Chesterfield mill – at present it is solely a converting and product supply business. This is seen as marking a major growth step for the company whose owner is understood to have significant mill experience. Details of its paper sourcing plans have not been disclosed.

Demand

SCA confirmed yesterday (26 January) to letsrecycle.com that its own demand for waste paper for paper manufacturing will reduce in the UK as a consequence of the closure of the older PM2 machine at Stubbins and the sale of Chesterfield mill. PM3 will remain in operation at Stubbins and is the newest machine on the site having been installed in about 1992.

For SCA the development is part of an ongoing restructure since in took over the Georgia Pacific tissue business and more recently announced its focus on having two divisions, forest products and tissue.

SCA’s other operational mill sites, besides Stubbins in Bury will be: SCA Manchester at Trafford Park (50,000 tonnes); SCA Oakenholt in North Wales (70,000 tonnes); and SCA Prudhoe (100,000 tonnes).

Air drying

At its converting tissue mill in Skelmersdale SCA is to invest about £14.3 million in a through air drying machine.

In a statement, SCA said: “These measures are part of SCA’s Tissue Roadmap and are aligned with the company’s strategy to streamline production and secure capacity for future growth to increase value creation in the tissue business area. Both initiatives are subject to customary consultation with employee representatives.”

Related links
SCA
Sidcot Group