SCA to Add Tissue Capacity in Russia, Germany
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SCA, Stockholm, Sweden, reports that it is investing in expanded tissue capacity in Russia and Germany, and in solid-wood products in Sweden. The investments will total approximately SEK 2.6 billion (EUR 290 million).
Russian investment is in response to favorable growth in the tissue market there. It will be used for a second tissue machine in Sovetsk, Russia. The new tissue machine will have a capacity of 60,000 metric tpy, with production based on virgin fiber. Production is scheduled to begin in 2013.
SCA also is investing some SEK 1.1 billion (EUR 120 million) in a new tissue machine in Kostheim, Germany. This investment is being made to meet increased demand, primarily for AFH tissue products. The new tissue machine will have a capacity of 60,000 metric tpy, with production scheduled to commence in 2013.
To increase production capacity and reduce costs, SCA will invest approximately SEK 300 million (EUR 30 million) in the Bollsta sawmill, Sweden. The investment includes two new biofuel boilers, increased drying capacity, and an upgrade of the saw line. Through these investments, production capacity will increase from 450,000 cubic meters to 525,000 cubic meters of sawn pine products per year. The investment enables energy production exclusively from the company's own biofuel, meaning that a large amount of oil can be phased out of production. The biofuel boiler is scheduled for commissioning at the end of 2012, while other parts will be successively commissioned during 2012 and 2013.
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