ABB said today that it has signed a full-service alliance agreement with Carter Holt Harvey Pulp & Paper, an Australasian forest products company producing wood products, pulp and paper, and packaging.
The five-year contract, worth more than $29 million, covers all reliability and maintenance services for the Tasman pulp mill in Kawerau, New Zealand. It follows a $50 million agreement with ABB in 2003 to assume service responsibility at Carter Holt Harvey’s mill in Kinleith, New Zealand.
“This agreement will allow us to build a more competitive business and help us to provide a sustainable future by focusing on our core production operations,” said Carter Holt Harvey Pulp & Paper chief executive, Brice Landman.
“Since ABB started providing maintenance at our Kinleith mill, we’ve achieved significant gains in production and cost efficiencies. We expect to see similar benefits at Tasman,” added Landman.
The Tasman mill produces about 270,000 tons of specialty pulp products annually for the high quality paper, tissue and building products markets.
The new full service alliance is a performance-based agreement measured on equipment effectiveness, maintenance costs, and maintenance spares inventory value. ABB will direct all maintenance services at the Tasman mill, management of spare parts and all inventory.