USA – Italian hygiene paper manufacturer Sofidel has acquired an ST Paper tissue mill in Duluth, Minnesota, enabling the company to “immediately meet the ongoing increase in demand in the country.
The acquired facility boasts a robust production capacity of 65 thousand metric tonnes per year and employs 80 personnel. Significantly, the plant is equipped with cutting-edge technology, featuring an operational Andritz machine since January of the previous year.
Sofidel, renowned for its Regina brand in Italy and Europe, views this investment as pivotal in meeting the surging demand for its products in the US market.
Luigi Lazzareschi, CEO of Sofidel, emphasizes the significance of this acquisition, characterizing it as obtaining a technologically advanced plant.
This acquisition not only enhances geographic coverage but also establishes the groundwork for reinforcing and sustaining growth in their primary market.
This announcement follows Sofidel’s recent decision to expand its integrated plant in Circleville, Ohio. The ongoing project involves constructing a new facility to accommodate a state-of-the-art machine with an impressive production capacity of 70,000 metric tonnes annually.
Operations are set to commence in the third quarter of 2025. At that point, Circleville is poised to become Sofidel’s largest production site worldwide, boasting an annual capacity of 200 thousand metric tonnes.
The Duluth acquisition aligns with Sofidel’s broader strategy, complementing its organic growth investment in expanding the Circleville plant.
This venture, announced in September, outlined a substantial $185 million investment to enhance the Circleville site.
The expansion includes the addition of a new paper machine, ultimately achieving a production capacity of 200,000 metric tons per year, solidifying its status as Sofidel’s primary global production site.
It is noteworthy that the Circleville plant predominantly manufactures virgin tissue products, incorporating some production scrap into its feedstock.
Sofidel has positioned the Circleville plant as its most crucial production site on a global scale, marking a significant milestone in the company’s strategic endeavors in the United States.
In the same month last year, Sofidel finalized a medium- to long-term loan agreement with Crédit Agricole Italia to support its ESG goals.
The terms of the loan are linked to the achievement of environmental and social performance targets, the Regina tissue maker added.
The objectives include reducing the intensity of Scope 1 and 2 emissions, decreasing the incidence of conventional plastics in packaging, and setting up related training activities.
The move will help Sofidel to strengthen its financial structure and promote business growth in the international market.
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