Technological Change in the Canadian Pulp and Paper Industry

6 Technological Change in the Canadian Pulp and Paper Industry O. L . F O R G A C S and G . E . S T Y A N *

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J u s t as n e c e s s i t y i s the mother o f i n v e n t i o n , so economic and s o c i a l p r e s s u r e s a r e the p a r e n t s o f t e c h n o l o g i c a l development. Thus, t o u n d e r s t a n d t h e developments t a k i n g p l a c e i n t h e Canadian p u l p and paper i n d u s t r y , i t i s important t o f i r s t view the economic environment a f f e c t i n g t h i s i n d u s t r y . Canada appears on the map as a huge l a n d mass o f some 3,850,000 square m i l e s , o v e r 200,000 square m i l e s g r e a t e r than t h e U n i t e d S t a t e s and a p p r o x i m a t e l y 2 2 times t h e s i z e o f Sweden. Of t h i s l a n d a r e a , about o n e - t h i r d i s f o r e s t and about o n e - q u a r t e r o f i t , o r 950,000 square m i l e s , i s s u i t a b l e f o r timber h a r v e s t . About 80% o f i t i s s o f t wood. Most o f t h i s wood o c c u r s i n t h e b o r e a l f o r e s t r e g i o n which i s 4,000 m i l e s i n l e n g t h and about 500 t o 600 m i l e s wide. T h i s s t r i p i s a c o n t i n u a t i o n o f t h e s i m i l a r softwood f o r e s t t h a t s t r e t c h e s from the S c a n d i n a v i a n P e n i n s u l a t o t h e B e r i n g Sea. I t c o n s i s t s predomi n a n t l y o f spruce, balsam, f i r and p i n e . In i t s southern r e a c h e s , t h e softwood f o r e s t i s i n t e r s p e r s e d w i t h aspen and b i r c h . Of g r e a t commercial importance i s a l s o the s p e c i a l i z e d r a i n f o r e s t o f t h e c o a s t f o r e s t r e g i o n , which c o v e r s t h e lower s l o p e s o f the mountains f a c i n g t h e P a c i f i c Ocean. These f o r e s t s , which a r e a c o n t i n u a t i o n of t h e c o a s t a l s t r i p t h a t runs n o r t h t h r o u g h Oregon and Washington, c o n s i s t p r i n c i p a l l y o f Douglas f i r , w e s t e r n hemlock, r e d c e d a r and s i t k a s p r u c e . This region s u p p l i e s the world w i t h s t r u c t u r a l t i m b e r s . In t h i s r e g i o n , the p u l p and paper i n d u s t r y grew up e n t i r e l y a s a scavenger t o a b s o r b t h e r e s i d u e s o f t h e s a w m i l l s , w h i l e i n the e a s t e r n b o r e a l r e g i o n s , wood i s h a r v e s t e d p r i n c i p a l l y a s pulpwood. * Now with Western f o r e s t Products Laboratory, Vancouver

American Chemical Society Library

16th St. N. W. Developments: A World View Arthur; 1155 Cellulose and Fiber Science ACS Symposium Series; American Washington, D. C. Chemical 20038 Society: Washington, DC, 1977.


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Canada has a p o p u l a t i o n o f about 23 m i l l i o n p e o p l e , most o f whom l i v e i n a narrow s t r i p a l o n g t h e s o u t h e r n border. In commercial terms, Canada c a n be e n v i s a g e d as a s m a l l c o u n t r y , surrounded by t h r e e g r e a t t r a d i n g blocks: t h e European Common Market ( p o p u l a t i o n 250 m i l l i o n ) ; t h e U n i t e d S t a t e s ( p o p u l a t i o n 215 m i l l i o n ) ; and Japan ( p o p u l a t i o n 110 m i l l i o n ) , as shown i n F i g u r e 1. Each o f t h e s e t r a d i n g b l o c k s i s t o some e x t e n t d e pendent on Canadian f i b e r , and i s w i l l i n g t o buy l a r g e amounts o f i t , p r o v i d e d t h a t Canadians do n o t add t o o much v a l u e f i r s t . Thus, commodities such a s n e w s p r i n t and k r a f t p u l p c a n be e x p o r t e d t a r i f f f r e e , b u t f i n e papers and l i n e r b o a r d have t o c r o s s t a r i f f b a r r i e r s . C o n s e q u e n t l y Canada produces about t e n t i m e s as much n e w s p r i n t f o r e x p o r t as i t uses d o m e s t i c a l l y , and t e n t i m e s as much market p u l p [1]. But f i n e paper and o t h e r h i g h e r v a l u e grades a r e produced on a s c a l e t h a t i s o n l y about 30% g r e a t e r than domestic consumption. ( F i g u r e s 2,3,4) . A l t h o u g h b o t h p u l p and n e w s p r i n t have t o meet f a i r l y r i g i d quality specifications, their prices are based n o t so much on q u a l i t y as t h e y a r e on w o r l d market p r i c e s , which i n t u r n a r e dependent on t h e b a l ance between s u p p l y and demand. The p r o f i t margins o f companies t h a t s u p p l y w o r l d market commodities a r e determined t o a l a r g e degree by t h e e x t e n t t o which raw m a t e r i a l c o s t s , l a b o r and t r a n s p o r t a t i o n c o s t s c a n be minimized. Thus, market p u l p and n e w s p r i n t a r e t y p i c a l cost minimizing industries. T h i s i s i n sharp c o n t r a s t w i t h i n d u s t r i e s such a s computer m a n u f a c t u r e r s , which compete, and hence p r i c e t h e i r p r o d u c t s on t h e b a s i s o f performance, o r i n d u s t r i e s such as consumer goods which compete on t h e b a s i s o f s a l e s m a x i m i z a t i o n [ 2 ] . These t h r e e c a t e g o r i e s o f i n d u s t r i a l b e h a v i o r c a n a l s o be a p p l i e d t o p u l p and paper p r o d u c t s , as shown i n F i g u r e 5. It i s therefore not s u r p r i s i n g that technological change i n t h e n e w s p r i n t and p u l p i n d u s t r i e s i s h e a v i l y weighted towards p r o c e s s i n g e f f i c i e n c i e s r a t h e r than towards new p r o d u c t development. Another major f a c t o r t h a t shapes Canadian i n d u s t r y as a major s u p p l i e r o f t h e w o r l d ' s n e w s p r i n t and p u l p demand i s t h a t Canada, l i k e S c a n d i n a v i a , i s f a c e d w i t h the e n v i r o n m e n t a l problems a s s o c i a t e d w i t h wood p r o curement and m a n u f a c t u r i n g ( p a r t i c u l a r l y a i r and water p o l l u t i o n ) r a t h e r than t h e problem o f consumption ( s o l i d s waste d i s p o s a l and r e c y c l i n g ) . A f u r t h e r c h a r a c t e r i s t i c o f t h e Canadian p u l p and paper i n d u s t r y i s t h a t Canada i s n o t wood l i m i t e d .

Arthur; Cellulose and Fiber Science Developments: A World View ACS Symposium Series; American Chemical Society: Washington, DC, 1977.

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Canadian Pulp and Paper Industry

JAPAN

CANADA

EEC

110 MILLION PEOPLE

23 MILLION PEOPLE

250 MILLION PEOPLE


USA 215 MILLION PEOPLE

Figure 1.

Canadas neighbors

Figure 2. Destination of Canada's newsprint production, 1974


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Figure 4. Destination of Canada's other paper and board products (excluding newsprint), 1974



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There a r e enough s u i t a b l e s i t e s i n Canada t o s u p p o r t an a d d i t i o n a l 10 o r 11 k r a f t p u l p m i l l s of 1000 t o n per day (another 3 m i l l i o n t o n s per y e a r , or o n e - h a l f a g a i n the p r e s e n t tonnage o f market p u l p ) . T h i s d i f f e r e n t i a t e s Canada from Sweden, which has reached the l i m i t s o f i t s domestic wood s u p p l y . N e v e r t h e l e s s , growth i n Canada's p r o d u c t i v e c a p a c i t y i s l i m i t e d by o t h e r economic f a c t o r s , e s p e c i a l l y c a p i t a l c o s t , c o s t and a v a i l a b i l i t y o f l a b o r , a c c e s s t o m a r k e t s , and d e c r e a s i n g p o l i t i c a l i n f l u e n c e o f the p r i m a r y m a n u f a c t u r i n g sector. To summarize, t h e n , the t h r u s t o f t e c h n o l o g i c a l change i n t h e Canadian p u l p and paper i n d u s t r y i s conc e n t r a t e d i n the a r e a s o f raw m a t e r i a l c o s t r e d u c t i o n and o p e r a t i n g e f f i c i e n c y improvement. In the f o l l o w i n g s e c t i o n , some t r e n d s i n r e s p o n s e t o t h e s e p r e s s u r e s w i l l be reviewed by examining t h e r a t e of e x p l o i t a t i o n i n Canada o f r e f i n e r m e c h a n i c a l p u l p , t w i n w i r e formers f o r n e w s p r i n t machines and continuous d i g e s t e r s . Refiner Mechanical

Pulp

M e c h a n i c a l p u l p i s t h e main raw m a t e r i a l i n the manufacture of n e w s p r i n t . T r a d i t i o n a l l y , i t has been manufactured by the g r i n d i n g of barked l o g s h e l d a g a i n s t a r e v o l v i n g g r i n d s t o n e , i n the presence o f water. T h i s p r o c e s s r e s u l t s i n a h i g h o p a c i t y , low s t r e n g t h wood p u l p w i t h a y i e l d based on wood of about 95%. Because of the low s t r e n g t h of "groundwood", both as a wet web on the paper machine and as f i n i s h e d paper, i t i s n e c e s s a r y t o add u s u a l l y between 20% and 30% l o n g f i b e r e d c h e m i c a l p u l p t o the f u r n i s h . This chemical p u l p s e r v e s as a r e i n f o r c i n g m a t e r i a l i n c r e a s i n g the e f f i c i e n c y o f the n e w s p r i n t machine. In the l a t e 50's, a new p r o c e s s f o r p r o d u c i n g m e c h a n i c a l p u l p was i n t r o d u c e d — almost s i m u l t a n e o u s l y i n Canada and i n t h e U.S. [3J . T h i s was the manufactu r e o f m e c h a n i c a l p u l p from wood c h i p s o r o t h e r wood residues using disc r e f i n e r s . R e f i n e r m e c h a n i c a l p u l p has t h r e e c o s t m i n i m i z i n g advantages compared t o stone groundwood: reduced l a b o r , cheaper and more r e a d i l y a v a i l a b l e f i b e r , and reduced paper f u r n i s h c o s t s . T h i s l a t t e r advantage i s a r e s u l t o f r e f i n e r p u l p b e i n g c o n s i d e r a b l y s t r o n g e r than stone groundwood. I n i t i a l l y r e f i n e r m e c h a n i c a l p u l p i n g grew r a p i d l y i n Canada, but q u i c k l y l o s t momentum i n i t s move t o r e p l a c e stone groundwood ( F i g u r e 6 ) . The promise o f major s a v i n g s i n c h e m i c a l p u l p w i t h the use o f c h i p



CELLULOSE AND

INDUSTRIAL A N D TECHNICAL P A P E R S

FIBER SCIENCE

SPECIALITY FINE PAPERS

Figure 5. Classification of pulp and paper products

YEARS

Figure 6. Capacity substitution-RMP and TMP vs. total Canadian mechanical pulp



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r e f i n e r groundwood i n modern h i g h speed n e w s p r i n t machines d i d n o t appear t o be p r o v i n g o u t and q u a l i t y problems w i t h low c o s t f i b e r , sawdust, were i n c r e a s i n g . T h i s l a t t e r problem was due t o t h e t r e n d t o narrow k e r f saws t o reduce wood r e s i d u e i n lumber p r o d u c t i o n . Then i n t h e e a r l y 70's, a "second g e n e r a t i o n " r e f i n e r m e c h a n i c a l p u l p i n g p r o c e s s was c o m m e r c i a l i z e d , based on many y e a r s o f r e s e a r c h and development work i n Sweden, Canada and t h e U.S. [£/5/6.1 · T h i s i s now known a s t h e "Thermomechanical P u l p i n g P r o c e s s " . This process i s c a r r i e d out i n d i s c r e f i n e r s using chips p r e h e a t e d t o about 135°C, a temperature which a l l o w s f u r t h e r s o f t e n i n g , b u t i s s t i l l low enough t o a v o i d darkening of the l i g n i n matrix. There now seems l i t t l e doubt t h a t thermomechanical p u l p i s c a p a b l e o f e l i m i n a t i n g the chemical pulp i n newsprint e n t i r e l y i n the spruce/balsam a r e a s , and o f r e d u c i n g i t t o below 15% i n the P a c i f i c coast areas. T h i s has l e d t o t h e sharp u p t u r n o f t h e replacement c u r v e , which p r e d i c t s t h a t 50% Canadian m e c h a n i c a l p u l p p r o d u c t i o n w i l l be made by the r e f i n e r m e c h a n i c a l p u l p i n g p r o c e s s by 1983 ( F i g u r e 6). The p o s s i b i l i t y o f u s i n g t h e v e r y h i g h y i e l d p u l p as a k r a f t p u l p replacement i n o t h e r p r o d u c t s — p e r haps as a new market p u l p , c o u l d a c c e l e r a t e t h e growth of r e f i n e r mechanical pulp c a p a c i t y . In view o f t h e enormous c o s t , as d i s c u s s e d l a t e r , o f b u i l d i n g new c h e m i c a l p u l p f a c i l i t i e s , t h e r e p l a c e ment o f c h e m i c a l p u l p by thermomechanical p u l p i n n e w s p r i n t may r e s u l t i n t h e r e l e a s e o f s u b s t a n t i a l amounts o f c h e m i c a l (and p a r t i c u l a r l y k r a f t pulp) c a p a c i t y f o r market p u l p . I t i s without question the c h e a p e s t way t o o b t a i n a d d i t i o n a l k r a f t p u l p c a p a c i t y , and i s c o m p l e t e l y c o n s i s t e n t w i t h a c o s t m i n i m i z i n g strategy. Twin Wire Formers The f o u r d r i n i e r paper machine h e l d an u n c h a l l e n g e d p o s i t i o n i n t h e paper i n d u s t r y from t h e middle o f t h e 19th c e n t u r y u n t i l t h e e a r l y 6 0 s . B u t r e s e a r c h work on t a b l e r o l l d r a i n a g e i n t h e 50's was a l r e a d y underm i n i n g i t s v i r t u a l monopoly [21· On t h e f o u r d r i n i e r paper machine, water i s removed from t h e p u l p suspens i o n on t h e w i r e by s u c t i o n . T h i s s u c t i o n i s p r o v i d e d by the s e p a r a t i o n o f t h e s u r f a c e o f t h e t a b l e r o l l s from t h e w i r e (more r e c e n t l y by h y d r o f o i l s ) , and o f c o u r s e by t h e s u c t i o n boxes and t h e s u c t i o n couch r o l l . The problem w i t h water removal by s u c t i o n a l o n e i s t h a t t h e maximum p r e s s u r e d i f f e r e n t i a l i s , o f c o u r s e , one atmosphere. I t was p r e d i c t e d t h a t d r a i n a g e a t t h e f



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t a b l e r o l l s o r f o i l s o f a paper machine would r e a c h t h i s maximum a t a machine speed o f about 2 800 f e e t p e r minute, a speed t h a t was b e i n g approached by n e w s p r i n t machines a t the t i m e . Thus f u r t h e r i n c r e a s e s i n machine p r o d u c t i v i t y , u s i n g the F o u r d r i n i e r d e s i g n , c o u l d o n l y be a t t a i n e d by making the machines w i d e r , longer or both. Each o f t h e s e measures adds s u b s t a n t i a l l y t o c a p i t a l c o s t and space r e q u i r e m e n t s , and i n t r o d u c e s other mechanical d i f f i c u l t i e s . The time was t h e r e f o r e r i p e f o r a new approach. The answer t o the problem was t o remove the w a t e r by compressing the p u l p s u s p e n s i o n between two w i r e s . C o n f i d e n c e i n t h e f e a s i b i l i t y o f t h i s was r e i n f o r c e d by t h e s u c c e s s f u l development o f t h e twin w i r e b o a r d machine (Inverform) by S t . Anne's b o a r d m i l l s [S] i n B r i s t o l , E n g l a n d i n t h e 50*s. At t h e time o f the f i r s t I n v e r f o r m i n s t a l l a t i o n i n N o r t h America [9], development work was w e l l underway on t w i n w i r e formers f o r newsprint. A major r e s e a r c h e f f o r t a t the P u l p and Paper Research I n s t i t u t e o f Canada l e d t o t h e development o f t h e P a p r i f o r m e r [1£]. The growth r a t e o f t w i n w i r e n e w s p r i n t machines i s shown i n F i g u r e 7 [11]. The most r e c e n t e x t r a p o l a t i v e f o r e c a s t s u g g e s t s t h a t 50% o f Canada's n e w s p r i n t capac i t y c o u l d have twin w i r e formers by 19 82. Continuous D i g e s t e r S i n c e 196 8 t h e r e has been a n o t i c e a b l e change i n the t e c h n o l o g y used f o r a d d i t i o n a l Canadian c h e m i c a l pulp capacity. A l s o a t about the same time the Canadian k r a f t p u l p c a p a c i t y s t a r t e d t o show a reduced r a t e o f growth ( F i g u r e 8) [ 1 ] . From 1969 the s h a r e o f added c a p a c i t y has been d i v T d e d almost e q u a l l y between the c o n t i n u o u s and b a t c h d i g e s t e r s . D u r i n g the p r e v i o u s 10 y e a r p e r i o d t h e added c a p a c i t y s t r o n g l y f a v o r e d the c o n t i n u o u s d i g e s t e r ( F i g u r e 9 ) . The change i n t e c h n o l o g y may be due t o a number o f factors. In t h e mid 50's when t h e c o n t i n u o u s d i g e s t e r began t o come i n t o i t s prime i t p r o v i d e d a ready s o l u t i o n f o r h i g h steam consumption i n b a t c h d i g e s t e r s and i t produced a k r a f t p u l p w i t h s l i g h t l y b e t t e r s t r e n g t h and b e t t e r u n i f o r m i t y . The c o n t i n u o u s d i g e s t e r had o t h e r added advantages f o r the l a r g e s c a l e i n s t a l l a t i o n s i n t h e 60's — i t was more e c o n o m i c a l on space and a l o n g w i t h i n t e g r a l d i f f u s i o n washing systems i t became more a t t r a c t i v e f o r c a p i t a l i n v e s t m e n t . During these y e a r s , government i n c e n t i v e s f o r b u i l d i n g were s t r o n g and f o r e c a s t s o f impending l o n g f i b e r s h o r t a g e s were widely believed.




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A f e a t u r e of the c o n t i n u o u s d i g e s t e r has been t h a t the f i n e s c o n t e n t o f the c h i p f e e d must be kept at a low l e v e l o r p l u g g i n g and h e a t i n g c i r c u l a t i o n problems w i l l be e n c o u n t e r e d . The b a t c h d i g e s t e r on the o t h e r hand can a c c e p t s i g n i f i c a n t l y l a r g e r amounts o f f i n e s and v a r i a b l e s i z e d c h i p s and s t i l l produce an a c c e p t a b l e p u l p q u a l i t y . In the l a t e 60's t h e r e began a t r e n d toward t o t a l u t i l i z a t i o n o f the a v a i l a b l e s a w m i l l chips. In e a s t e r n Canada t h e r e was a t r e n d t o the i n s t a l l a t i o n o f stud m i l l s adjacent to a pulp m i l l . Both o f t h e s e s i t u a t i o n s have l e d t o a d e t e r i o r a t i o n i n the q u a l i t y o f c h i p s f e d t o the p u l p i n g p r o c e s s and thus development has been d i r e c t e d back t o the b a t c h d i g e s t e r t o determine ways o f r e d u c i n g the steam consumption i n a p e r i o d o f r a p i d l y e s c a l a t i n g energy c o s t s and a l s o t o improve and make more u n i f o r m the q u a l i t y o f the p u l p . S i g n i f i c a n t improvements were made i n the l a t e 60 s and e a r l y 70 s i n t h e development o f computer c o n t r o l systems f o r b a t c h d i g e s t e r s [12]. These systems have been s u c c e s s f u l i n o p t i m i z i n g the s c h e d u l i n g o f steam consumption and have a l s o made s i g n i f i c a n t improvements i n the u n i f o r m i t y o f p u l p q u a l i t y . D u r i n g r e c e n t y e a r s t h e r e has a l s o been a growing desire f o r f l e x i b i l i t y of operation i n a pulp m i l l . When a b a t c h d i g e s t e r s h u t s down f o r maintenance, o n l y p a r t o f the p u l p m i l l p r o d u c t i v e c a p a c i t y i s removed, and f r e q u e n t l y the o n - l i n e d i g e s t e r s can be sped up f o r s h o r t p e r i o d s o f time a t s l i g h t a d d i t i o n a l o p e r a t i n g c o s t b u t minimum e f f e c t o f q u a l i t y . F u r t h e r m o r e , the major p a r t o f the added c o n t i n u o u s d i g e s t e r c a p a c i t y s i n c e 1969 has been from f o u r v e r y l a r g e i n s t a l l a t i o n s . The added c a p a c i t y from b a t c h d i g e s t e r s has come from a l a r g e number o f i n c r e m e n t a l c a p a c i t y i n c r e a s e s a c r o s s Canada. The c o n t i n u o u s d i g e s t e r i s s e n s i t i v e t o economy o f s c a l e , and today i s p r o b a b l y s u i t a b l e o n l y f o r e x p a n s i o n s o f 450 t o n s p e r day o r more. The growth r a t e p a t t e r n ( F i g u r e 9) f o r c o n t i n u o u s d i g e s t e r s demonstrates the danger o f making p u r e l y extrapolative forecasts. 1

1

F u t u r e Technology The P u l p and Paper Research I n s t i t u t e o f Canada r e c e n t l y c o n d u c t e d a D e l p h i study f o r the Canadian p u l p and paper i n d u s t r y [ 1 3 ] . In t h i s s t u d y the problem o f c a p i t a l a v a i l a b i l i t y was b a s i c a l l y foremost, a l t h o u g h the f o r e c a s t f o r t h e growth r a t e o f k r a f t m i l l s demons t r a t e s an i n c o n s i s t e n c y . T h i s problem of c a p i t a l a v a i l a b i l i t y i s n o t s p e c i f i c t o the p u l p and p a p e r



6.

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157

i n d u s t r y , n e i t h e r i s i t s p e c i f i c t o Canada, b u t i t i s p r o b a b l y t h e most i m p o r t a n t i n p u t t o t h e p u l p and p a p e r i n d u s t r y ' s f u t u r e s t r a t e g i e s d u r i n g t h e coming decade. C a p i t a l a v a i l a b i l i t y represents a serious obstacle concerning the expansion o f the k r a f t pulp i n d u s t r y — f o r two r e a s o n s , economy o f s c a l e and i n f l a t i o n . The e f f e c t o f economy o f s c a l e on t h e c a p i t a l c o s t o f b l e a c h e d k r a f t m i l l s i s i l l u s t r a t e d i n F i g u r e 10 [ 1 4 ] . F i g u r e 11 shows t h e m a n i f e s t a t i o n o f t h i s i n terms o f the c a p a c i t i e s o f t h e l a r g e s t c o n t i n u o u s d i g e s t e r s t h a t have been i n s t a l l e d d u r i n g t h e l a s t 2 0 y e a r s [15]. The e f f e c t o f i n f l a t i o n i s demonstrated by t h e a c t u a l c o s t o f k r a f t m i l l s b u i l t i n Canada ( F i g u r e 1 2 ) . The c a p i t a l c o s t s have been a d j u s t e d p r o p o r t i o n a t e l y t o b r i n g them t o a common l e v e l o f 900 tons p e r day. T h i s r a t e o f i n c r e a s e i s a l s o apparent f o r most o t h e r c a p i t a l components o f t h e i n d u s t r y . D e p r e c i a t i o n i s b a s e d on a c t u a l r a t h e r than replacement c o s t s , so t h a t t h e d i f f i c u l t y b e i n g e x p e r i e n c e d by companies i n g e n e r a t i n g t h e funds r e q u i r e d f o r r e i n v e s t m e n t i s r e a d i l y u n d e r s t o o d . A l l t h i s , o f c o u r s e , would n o t be t o o s e r i o u s f o r the growth o f t h e i n d u s t r y i f i t were c a p a b l e o f r a i s i n g p r i c e s t o whatever l e v e l was r e q u i r e d t o a t t r a c t investment. I t i s m e a n i n g l e s s t o speak o f such p r i c e i n c r e a s e s i n t i m e s o f r e c e s s i o n and o v e r - s u p p l y . But even i n t h e c o n t e x t o f f i b e r s h o r t a g e s , as may w e l l d e v e l o p w i t h i n a few y e a r s , t h e p r o s p e c t s f o r e x p a n s i o n along t r a d i t i o n a l l i n e s are n o t encouraging. The need f o r t h e p r o d u c t i o n o f e n e r g y , food and s h e l t e r w i l l p r o b a b l y r e c e i v e h i g h e r n a t i o n a l p r i o r i t i e s than w i l l fiber. Furthermore, t h e r e a r e p o t e n t i a l s u b s t i t u t e s f o r many p a p e r g r a d e s , t h a t can cause a r e d u c t i o n i n consumption i n t h e d e v e l o p e d c o u n t r i e s , such as m i c r o f i l m and i n t e r a c t i v e TV t h a t can move i n t o t r a d i t i o n a l p a p e r markets as t h e economics d i c t a t e . Thus a b r u p t p r i c e i n c r e a s e s w i l l r e s u l t i n market e l a s t i c i t y , t h e f i r s t s i g n s o f which a r e a l r e a d y b e g i n n i n g t o show. Can t e c h n o l o g y come t o t h e r e s c u e ? Undoubtedly i t can b u t t h e f o l l o w i n g s h o u l d be c o n s i d e r e d . Assuming t h a t i t t a k e s a minimum o f 10 t o 15 y e a r s t o r e p l a c e an e s t a b l i s h e d t e c h n o l o g y such as k r a f t p u l p i n g , then t h e l a b o r a t o r y work f o r a new s m a l l s c a l e , low c a p i t a l p u l p i n g p r o c e s s s h o u l d now be w e l l advanced i n t h e l a b o r a t o r y i f we a r e t o see any s i g n i f i c a n t change by, say 1985. No such t e c h n o l o g i c a l r e v o l u t i o n i n c h e m i c a l p u l p i n g i s apparent today. Soda-oxygen p u l p i n g , which i s advanced t e c h n o l o g i c a l l y today, i s one i m p o r t a n t r o u t e towards t h e e l i m i n a t i o n o f s u l f u r o u s a i r p o l l u t i o n , b u t i s u n l i k e l y t o p r e s e n t major o p p o r t u n i t i e s for cost reduction.



158


Figure 9. Capacity substitution-continuous digesters vs. total Canadian chemical pulp

Figure 10. Variation of capital cost with size—bleached Kraft mill


FORGACS A N D STYAN


1200 • 1100 -


1000.

Figure 11. Capacity of hrgest continuous digester

CASE A 1967

CASE Β 1972

CASEC 1977

$268

$328

$698

80

98

209

CAPITAL COST/ ANNUAL TON TOTAL CAPITAL COST ($MM)*

•ASSUMING 300,000 TONS/YR. NOMINAL CAPACITY

Figure 12. Escalation of capital cost—bleached Kraft pulp mills



160


The use o f m e c h a n i c a l p u l p s wherever p r a c t i c a l can be p r e d i c t e d . While the m e c h a n i c a l p u l p i n g p r o c e s s e s are s u b s t a n t i a l l y l e s s c a p i t a l i n t e n s i v e , they a l s o r e q u i r e a s u b s t a n t i a l e x t e r n a l energy s u p p l y , u n l i k e the c h e m i c a l p u l p i n g p r o c e s s which uses the e x t r a c t e d l i g n i n as a major s o u r c e o f energy. The c a p i t a l r e q u i r e d f o r t h i s e x t e r n a l energy must be taken i n t o account i n the o v e r a l l p i c t u r e . In the sphere o f papermaking, dry f o r m i n g [16], i n which the f i b r o u s web i s l a i d u s i n g a i r s u s p e n s i o n r a t h e r than water, does h o l d promise f o r reduced c a p i t a l c o s t , and i s s u f f i c i e n t l y advanced i n t o the p r o t o type s t a g e , t o have a p o t e n t i a l impact by 19 85. It merits c a r e f u l watching, although i t presents at best o n l y a s m a l l s t e p towards the s o l u t i o n o f the o v e r a l l c a p i t a l problem. I t does h o l d out the p r o s p e c t o f e v e n t u a l l y l o c a t i n g paper m i l l s c l o s e t o the market, and hence c l o s e t o the s o u r c e o f secondary f i b e r . A f u r t h e r f a c t o r which w i l l impede the development o f r a d i c a l l y new t e c h n o l o g y i s the s h o r t a g e o f R&D s t r e n g t h i n o u r i n d u s t r y . T h i s problem i s a l s o n o t s p e c i f i c t o Canada, and a r i s e s p a r t l y out o f t h e huge t e c h n i c a l e f f o r t t h a t i s r e q u i r e d t o meet p r o g r e s s i v e l y t i g h t e n i n g environmental standards. I t i s roughly e s t i m a t e d t h a t 30% o f the t e c h n i c a l manpower t h a t was a v a i l a b l e f o r new p r o d u c t and p r o c e s s r e s e a r c h i n the e a r l y 60 s i s now absorbed i n t o work d i r e c t l y r e l a t e d t o p o l l u t i o n abatement. To summarize, t h e n : The Canadian p u l p and p a p e r i n d u s t r y i s h i g h l y o r i e n t e d towards the manufacture o f commodities, p r i n c i p a l l y p u l p and n e w s p r i n t . This situation i s l i k e l y t o c o n t i n u e . The r a p i d growth o f t h e Canadian p u l p and paper i n d u s t r y d u r i n g t h e 50's and 60 s w i l l n o t be m a i n t a i n e d , because o f c a p i t a l r a t h e r than wood l i m i t ation. No s o l u t i o n , i n the s h o r t term, appears l i k e l y t o the v e r y h i g h c a p i t a l requirement o f c h e m i c a l p u l p m i l l s . T e c h n o l o g i c a l change o v e r the n e x t decade w i l l be l a r g e l y i n t h e d i r e c t i o n o f i n c r e a s e d p r o d u c t i v i t y and e f f i c i e n c y w i t h some i n c r e m e n t a l growth. Thermomechanica l p u l p i n g f a c i l i t i e s and twin w i r e machines w i l l cont i n u e t o r e p l a c e g r i n d e r s and f o u r d r i n i e r paper machines. The emphasis f o r R&D i n t h e Canadian p u l p and paper i n d u s t r y i s l i k e l y t o be on g r e a t l y i m p r o v i n g the e f f i c i e n c y o f e x i s t i n g c a p i t a l p l a n t s , making them e a s i e r t o c o n t r o l , more v e r s a t i l e c o n c e r n i n g wood q u a l i t y and s p e c i e s , and a d a p t i n g them t o s t r i n g e n t e n v i r o n m e n t a l standards. The i n d u s t r y ' s b e h a v i o r towards t e c h n o l o g y i s e x p e c t e d t o c o n t i n u e t o be c o s t m i n i m i z i n g f o r some time. 1

1


6. FORGACS AND STYAN

Canadian Pulp and Paper Industry 161


Abstract The rate of introduction of three significant technologies, refiner mechanical pulping, twin wire formers, and continuous pulping are analyzed in terms of the Canadian pulp and paper industry's strategy and behavior. Future technological growth is discussed and related to the Canadian environment, particularly capital resources. The next decade should see thermo mechanical pulping and twin wire formers dominate the technological scene for the Canadian pulp and paper industry. Key Words: thermomechanical pulping, twin wire, continuous digester, kraft pulping, newsprint, market pulp, refiner mechanical pulp. Literature Cited 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

13. 14. 15. 16.

Wood Pulp Statistics, American Paper Inst (Aug 1975) Simmonds, W.H.C., Chemtech (Jul 1975) p 416 Leask, R.A., Svensk Papperstidn (1973) 76 (17):631 Ahrel, I. and Back, I . , Proc: Symposium on Mechani cal Pulp, Oslo (197) p 83 LeBel, R.G. and Mackay, G . , Transactions CPPA Tech Sect (Sep 1975) 1 (3):65; Koran, Z . , Wood and Fiber (Fall 1970) pp 247-258 Charters, M.T. "Steam Pressurized Double Disc Refining for Chip Mechanical Pulp" 59th Annual Mtg Tech Sect CPPA Montreal (1973) Bennett, W.E., Pulp Paper Mag Can (Dec 1954) 55 (12):131 Evans, John C.W., Paper Trade J (Jun 22, 1959) ρ 20 Ragon, B.W., Tappi (Mar 1962) 45 (3):157A deMontigny, R. et a l , Pulp Paper Mag Can (Oct 1967) 6 68 (10):T482 Thompson, K.M. and Davy, M . F . , unpublished data, courtesy Pulp and Paper Research Inst of Canada Anon, Svensk Papperstidn (May 25, 1973) 76 (9):335; Wallin, G. and Noreus, S., Svensk Papperstidn (May 25, 1973) 76 (9):329; Battershill, T. et a l , Pulp Paper (Nov 1973) 47 (12):52 Thompson, K.M. and Davy, M.F. "The Canadian Pulp and Paper Industry-Threats and Opportunities 19801995" PPRIC (1975) FAO Forestry and Forest Products Studies No. 18 "Guide for Planning Pulp and Paper Enterprises" (1973) Rome, pp 129-132 Kamyr Inc., Bulletin No. 200H "Kamyr Continuous Cooking Plants" (Dec 1974) Wolff, H . , Wochbl Papierfabr (Sep 30, 1974) 102 (18) :681


Technological Change in the Canadian Pulp and Paper Industry

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