BillerudKorsnäs makes strategic investment in Gruvön

The investment includes the construction of a new board machine and rebuilds in the existing pulp mill. The board machine will have an annual capacity of 550,000 tonnes of board, making it one of the largest of its kind in the world, and produce cartonboard, liner, food service board and liquid packaging board. The investment project will start immediately and production is expected to start in the first quarter of 2019.

The decision has been made in view of growing demand for sustainable packaging options for food and beverages globally. Current capacity at BillerudKorsnäs’ production units is not sufficient to meet future demand, with the opportunity of new board production at Gruvön investigated in detail since 2015.

Per Lindberg, president and CEO of BillerudKorsnäs, commented: ‘The stable market growth in liquid packaging board and other cartonboards, together with our unique expertise in this area, mean that we are perfectly positioned to satisfy global demand. Access to renewable raw materials from sustainably managed forests in the Nordic region was a key factor when evaluating different alternatives.’

In addition to growth in liquid packaging board and other cartonboards, the investment decision will result in a streamlining of the production structure within the company. Current paper production at Gruvön will gradually be transferred to other plants within the company during ramp up of the new board machine, with the aim of offering customers fully satisfactory alternatives. Gruvön’s production of high quality fluting will not be affected by the investment.