SCA Slates SEK 540 Million to Increase Kraftliner Production at Munksund Mill in Sweden

Dec. 13, 2011 - SCA said that it will invest a total of SEK 540 million to strengthen kraftliner production in Munksund, Pitea, Sweden. The company plans to upgrade the paper machine and refurbish the soda-recovery boiler at the mill.

The bulk of the investment, SEK 400 million, will be used to upgrade the paper machine. The remaining SEK 140 million will finance the replacement of the pressure vessel in the soda-recovery boiler, which will enhance heat recovery and enable increased future output.

In a written statement, SCA said, "The main aim of the investment is to increase production of the share of value-added products, such as White-Top Kraftliner, which, for example, is used for packaging of fast-moving consumer goods with high-quality print."

As a result of the project, Munksund will be able to increase its total annual kraftliner capacity from 360,000 tonnes to 415,000 tonnes.

"The investment facilitates increased production of White-Top Kraftliner, a strong speciality paper for the corrugated-board industry which is experiencing a high growth rate," said Jan Johansson, SCA's President and CEO.

"The investment is in line with the company's strategy; which is to increase production and sales of products and services with a higher degree of refinement that add value for our customers."

The upgraded equipment is expected to be fully operational during 2013.