Karioi Mill set to expand production

WPI's pulp mill at Karioi has picked up global recongition for the quality of its product. Photo/File

Production at the WPI pulp mill at Karioi is being ramped up by at least 20 per cent as the company enjoys the benefits of a burgeoning market for its product in China and Indonesia.

And underlining that growth has been a major award picked up by the mill, being named one of the 10 most popular pulp brands in China.

The award was made at a gala event at Shanghai's Marriot Hotel at China Pulp Week 2014 in front of an audience of more than 600 industry representatives.

Dave Anderson, managing director of WPI, told the Chronicle the award was the result of research and development carried out by staff at the mill, between Ohakune and Waiouru.

Mr Anderson said the recognition was based on the quality of pulp they produced, which was then turned into high grade box board by customers at mills in China and Indonesia.

The new grades of pulp developed by WPI are being used extensively in high-end cosmetic and food-grade packaging.

Mr Anderson said the new grades of pulp were more energy-efficient to produce and provided high bulk with low weight.

He said given that 55 per cent of the box board went to China and the rest to Indonesia indicated the importance of these markets to WPI.

"We've got a couple of projects ongoing to simplify the mill, as well as supporting these new grades.

"We'll also be lifting capacity at the mill from 160,000 air dried metric tonnes [ADMT] to 200,000 tonnes a year," he said.

ADMT is the universal weight measurement for selling wood pulp.

Mr Anderson said the Karioi pulp is also used to produce paperboard, tissue paper and printing paper. The mill also creates pulp to a customer's individual specification.

He said they were delighted with the award and the recognition that came with it in a world forum.

"It reflects a great team effort and highlights the opportunities for New Zealand companies to build solid and loyal links in China by finding new ways to meet the needs of the market."

Industry commentators said the award reflected WPI's innovation and commitment to building strong ties with China.

It said that Karioi mill product proved it was an industry leader, providing the highest quality pulp products. China in particular was buying up its WPI's pulp in large qualities.

The company had also taken an innovative approach, holding seminars where its technical staff discussed the best uses for specific product lines. It was an approach that fostered strong relationships with buyers.