BillerudKorsnäs expands MG paper production with US$150 million investment

06 Sep 2018 --- BillerudKorsnäs has opened one of Europe's largest and most efficient MG paper machines at Skärblacka production unit outside Norrköping in Sweden in an investment valued at US$150 million. The new MG machines are set to increase production capacity to 460,000 tons/year, of which 180,000 tons will be MG paper, making the mill the largest facility for machine glazed kraft paper in Europe.

The investment of approximately US$150 million, partly in an upgraded existing paper machine and partly in a new machine for machine glazed kraft paper (MG paper), is part of BillerudKorsnäs’ venture to create a world-leading MG center in Skärblacka.

The investment enhances BillerudKorsnäs product mix, lays the foundation for a broader product portfolio with higher value-added and demonstrates that the company strengthens its leading position as global supplier of kraft paper for packaging purposes.

“The investment is already contributing positively to BillerudKorsnä's results,” Bernd Schmitz, Global Communications and Public Relations Director, tells PackagingInsights. “We already have MG paper production in Skärblacka and with this new addition we create a world-leading MG center in Skärblacka.”

“During the rest of 2018, capacity utilization in PM 10 will gradually increase, with start and development of products phased in during the next six months. The full production capacity – 90,000 tons per year – is expected to be achieved in 2019,” he adds.

The applications for machine glazed kraft paper range from consumer goods to industrial products such as fat-resistant paper for consumer bags and fast food markets, barrier paper for dairy products such as butter packaging and paper for sealing medical disposable items.

Both the new MG machine and the capacity enhancement of existing machines opens new as well as enables growth in attractive market segments, while at the same time the investment as a whole provides a solid foundation for further development of Skärblacka as a world-leading MG center.

The number of employees at the new center is approximately 740 people – an increase of more than 50 employees.

“It is with great joy and pride that we today have opened one of Europe's largest and most efficient MG machines,” says Petra Einarsson, President and CEO of BillerudKorsnäs. “With this effort, we have strengthened our position as world leader in MG paper and also laid a solid foundation for further development of our product mix and offering.”

The opening ceremony was held by BillerudKorsnäs President and CEO Petra Einarsson, retiring Governor of Östergötland County Elisabeth Nilsson, acceding Governor of Östergötland County Carl Fredrik Graf and Factory Manager of Skärblacka Production Plant Håkan Krantz. More than 500 people attended the ceremony at the Trozelli Gallery in Norrköping.

BillerudKorsnäs' US$570 million investment in 2016
On December 12 2016, BillerudKorsnäs' Board of Directors took a decision on the largest future initiative in the history of the company, and one of the largest in Sweden in recent years. It announced an investment of approximately US$570 million in smart packaging solutions which can reduce dependence on fossil fuels, carbon emissions and waste, and also increase food safety.

The investment decision was made in view of growing demand for sustainable packaging solutions for food and beverages globally.

“The stable market growth in liquid packaging board and other cartonboard, together with our unique expertise in this area, mean we are perfectly positioned to satisfy global demand on this market,” says Per Lindberg, President and CEO of BillerudKorsnäs.

“Access to renewable raw materials from sustainably managed forests in the Nordic region was a key factor when evaluating different alternatives,” he adds.

By Joshua Poole

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