BillerudKorsnäs to Invest SEK 900 Million on Production, Quality Boosts at Frövi and Rockhammar Mills

BillerudKorsnäs SEK 900 million upgrade project includes a rebuild of BM 5 at the Frövi mill. The rebuild will increase product quality and production capacity.

Aug. 26, 2014 - BillerudKorsnäs Board of Directors today approved an investment of approximately SEK 900 million in the Frövi and Rockhammar mills. The investment targets increased capacity and improved quality of cartonboard and liquid packaging board produced at the mills.

"We have set an ambitious growth agenda for BillerudKorsnäs," said Per Lindberg, CEO of BillerudKorsnäs. "For the business area Consumer Board, the strategy is profitable volume growth. This investment is an important part of realising that strategy."

The investment includes a rebuild of the board machine at the Frövi mill as well as a capacity upgrade of the Rockhammar pulp mill.

After completion in 2017, the investment will bring the Frövi mill's capacity to 550,000 tonnes per year of high quality cartonboard and liquid packaging board, and the Rockhammar mill's caspacity will increase up to 150,000 tonnes per year of CTMP (chemi-thermomechanical pulp).

The Frövi mill currently has the capacity to produce 430,000 tpy. The Rockhammar mill supplies Frövi with CTMP for the production of board grades.

According to BillerudKorsnäs, upon completion of the projects, the company "will operate the largest machine for production of cartonboard and liquid packaging board integrated to chemical pulp in the world."

Ulf Eliasson, Senior Vice President Consumer Board, commented, "The demand for BillerudKorsnäs cartonboard and liquid packaging board is increasing. Through this investment we will maintain and strengthen our competitiveness and deliver on the increasing demands on our products and services, and thereby achieve sustainable growth within our business area Consumer Board."

BillerudKorsnäs is a world-leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, and containerboard (fluting and liner). The company also produces market pulp. To learn more, please visit: www.billerudkorsnas.com.

SOURCE: BillerudKorsnäs