Rottneros and Arctic Paper Create Joint Venture for Production of Moulded Fibre Trays

Production capacity of the new plant is estimated at 60-80 million trays suitable for high barrier packaging, modified atmosphere packaging with extended shelf life as well as for packaging with lesser functional demands.

Oct. 25, 2021 - Rottneros and Arctic Paper have signed a Letter of Intent regarding a 50/50 joint venture in Kostrzyn, Poland, with the aim of building a production plant for moulded fiber trays. The investment is expected to amount to 12-15 MEUR, corresponding to approximately 120-150 MSEK.

"This is an excellent next step to show what Rottneros Packaging can do in the transition to sustainable packaging, something that the entire industry is in," said Lennart Eberleh, President and CEO of Rottneros. "It will be extremely exciting to see how we can develop our leading position in molded fiber trays with the highest possible requirements for packaging."

Production will be suitable for high barrier packaging, modified atmosphere packaging with extended shelf life as well as for packaging with lesser functional demands, all based on Rottneros primary fiber. The products can withstand heat and are excellent for ready-made food — both frozen and chilled dishes, which constitutes a rapidly growing market.

Production capacity is estimated at 60-80 million trays. This can be compared with Rottneros Packaging's existing plant in Sunne, where the capacity today amounts to 15-20 million trays of comparable quality. In addition to supply climate smart packaging the purpose is also to use the new plant as a model to show both the high quality and a scalable and competitive production.

Michal Jarczy?ski, CEO of Arctic Paper, added, "The investment will be an important step in our new 4P strategy, to broaden Arctic Paper's offering from graphic papers to other, fast-growing segments. We have always believed in Rottneros as a strategic investment and look forward to developing a joint business in sustainable fiber trays. Arctic Paper's factory in Kostrzyn gives us all the prerequisites, both technically and geographically, to get started quickly."

The start-up of the new facility is planned for the end of 2023.

Rottneros is an independent producer of market pulp based in Sweden. The Group comprises the parent company Rottneros AB and its subsidiaries Rottneros Bruk AB and Vallviks Bruk AB. The Group also includes Rottneros Packaging AB, which manufactures fibre trays, and the wood procurement company Rottneros Baltic SIA in Latvia and the forest operator Nykvist Skogs AB. To learn more, visit: www.rottneros.com.

SOURCE: Rottneros AB