Smurfit Kappa to Install New Lightweight Containerboard Machine at Townsend Hook Mill
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Smurfit Kappa, Dublin, Ireland, has announced a three-year £98 Million investment plan for its Townsend Hook, Kent, U.K., papermaking facility. The installation and commissioning of a custom designed, 5-m, lightweight recycled containerboard machine is due to be completed and operational by the end of 2014. This will secure the supply of paper for all of Smurfit Kappa's packaging operations in the U.K. and Ireland.
The new machine will produce lightweight corrugated papers, for use in Smurfit Kappa integrated plants meeting market requirements for high efficiency and sustainable, recycled papermaking. The cost associated with the project will be phased over three years and will be within the scope of SKG's stated annual capital expenditure guidance. The outlay represents one of the largest investments by an established U.K. paper producer, the company notes.
The equipment sourced from Cartiera di Cadidavid will replace two existing containerboard machines, increasing Townsend Hook's annual capacity of FSC certified, recycled paper by more than 8%, from 240,000 metric tpy to 260,000 metric tpy.
Together with Smurfit Kappa's SSK mill in Birmingham, the company will offer the widest portfolio of corrugated paper available in the U.K. Accredited with FSC certification and Carbon Trust Standard, the new paper mill will offer the most sustainable approach to packaging in the U.K.
Chris Allen, CEO, Smurfit Kappa Paper U.K., said that "this investment in the current financial climate shows Smurfit Kappa's commitment to the U.K., Ireland, and Pan-European customers of our Corrugated and Paper divisions. The design of the new machine features state-of-the-art technology that will produce a superior lightweight paper, enhancing our position and confirming us as a leading player in the U.K. and Ireland. Smurfit Kappa's two U.K. mills will now specialize in producing all of the recycled brown corrugated case material for its U.K. and Irish corrugated business, while maintaining its presence in the market."
The investment continues the 150-year history of papermaking at Townsend Hook. Smurfit Kappa's position in Europe as a leading paper manufacturer, producing 4.7 million metric tpy, will ensure that the supply of paper to its customer base is uninterrupted during the complex installation and commissioning of the new equipment.
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