SEATTLE (Scrap Monster): Metsa Board announced its decision to invest Eur 210 million at Husum mill in Sweden. The investment is aimed at boosting the folding boxboard capacity at the mill and is in response to growing customer demand for sustainable packaging materials. The investment will reinforce Metsa Board as the leading European producer of folding boxboard.
The investment will be made in a phased manner over the period from 2021 to 2024, with major part of it scheduled between 2022 and 2023. The company plans to fund the investment from currently available cash and future cash flows from operating activities. It will lift the annual capacity of paperboard machine BM1 from 400,000 tonnes to 600,000 tonnes per annum. Furthermore, it will boost the company’s annual sales by nearly Eur 200 million, said the company press release.
The preparatory work for construction is expected to begin in October this year, along with the planned annual maintenance shutdown. The company expects to start ramping up the additional capacity by autumn 2023. The full production capacity will be reached by end-2025.
The additional capacity is expected to enter the market by 2024-’25, directed mainly to the North American and European markets.