Felix Schoeller Group plans to invest more than $100 million in expanding its capacity in North America by 2025.
The investment includes capacity expansion of the existing paper machine in Drummondville (Canada) to over 40,000 tons per year, construction of a new silicone coater in Pulaski, New York for local supply to the North American release liner market and construction of a new, second paper machine to service the decor and release liner markets.
Starting in 2023, capacities at the company's sites in the U.S. and Canada will be significantly expanded in three steps.
A new silicone coater will be installed at the Pulaski, NY site in mid-2023. This will enable the Felix Schoeller Group to supply the North American market with domestically produced siliconized papers and films. In doing so, the company is relying not only on solvent-free silicone technology, but adding solvent-based silicone technology to their portfolio - while utilizing particularly energy-efficient and environmentally friendly technological solutions.
Next is the expansion of the paper machine capacity in Drummondville, Quebec from currently 32,000 tons to over 40,000 tons per year. This increase is scheduled to be completed in the fourth quarter of 2023.
And finally, the specialty paper manufacturer plans to invest in the construction of a second paper machine for the North American market. The plan is to add up to 50,000 tons of capacity for the decor and release liner markets.
During project planning, the location and details of the technical equipment will be determined. The total investment for the production of high-quality decor papers and release liners in the North American sites is expected to exceed 100 million U.S. dollars.
"With the significant expansion of our product capabilities and capacities in North America, we are following the plan of consistently expanding our local supply strategy. We are and always want to be present with our own productions in the markets where our customers are at home," says Hans-Christoph Gallenkamp, CEO of the Felix Schoeller Group. The decor paper market in North America is showing consistently good momentum and will continue to grow in the coming years, partly due to population growth, the resulting demand for housing and the associated investments by the wood-based materials industry.
"With the project for a new paper machine, we are opening a new chapter for Felix Schoeller in North America. In the future, we will be able to offer reliable supply with local service not only to our customers for high-quality decor papers, but in addition to our key market for release liners." says Michael Szidat, who as CEO of Felix Schoeller North America, is responsible for the business in North and South America.
"The COVID crisis has proven the importance of domestic manufacturing for the flexibility and reliability we promise our customers," Michael Szidat adds.
The Felix Schoeller Group develops, manufactures and markets high-quality specialty papers for a wide range of applications and market segments in numerous industries and markets worldwide. The diverse product portfolio includes photographic and digital printing papers, decor papers for the furniture and wood industries, release papers for medical products and industrial applications, wallpaper nonwovens, sublimation papers for fashion, sportswear and home furnishings, and flexible paper composites for packaging.
