Smurfit Kappa to Convert Linerboard Machine in Spain to Produce Machine Glazed Paper

Smurfit Kappa SangŁesa (Northern Spain) manufactures Kraft Paper MG Brown, Semi Bleached MG Kraft and Brown Test Liner.

May 19, 2014 (Press Release) - Smurfit Kappa will invest EUR 27 million on its SangŁesa site (Northern Spain) to transform its PM1 machine producing today 65 kT of virgin fibre based containerboard (Karpan liner), into PM4, a 30 kT virgin brown machine glazed paper.

The investment is driven by sustained growth on high performance, specialised MG markets, where Smurfit Kappa has developed unrivalled expertise and reputation. After completion of the investment the mill will have the ability to offer to its worldwide customers an even wider span of grades and grammages with applications starting as low as 28 grams per square meter, including highly specialised ultra-lightweight food contact containerboard.

The rebuild will last 12 weeks. The project is expected to start up during the course of 2016, and will allow to consolidate the SangŁesa mill as one of the very few worldwide fully MG focused unit with close to 90 kT of production in total.

This transformation will conversely withdraw from the market 65 kT of virgin fibre based containerboard, with PM1 discontinuing its production.

Continuity of supply will be guaranteed from our mill system, and predominantly from our Facture kraftliner mill (France) due to geographical proximity to the Iberian peninsula, at present the main market for this grade.

SOURCE: Smurfit Kappa