Sappi Fine Paper Europe Invests EUR 120 Million in Gratkorn, Kirkniemi Mills in Europe

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Sappi Fine Paper Europe, Brussels, Belgium, has confirmed investment plans of approximately EUR 120 million over the next three years that will significantly reduce the cost base and improve the profitability of its two leading coated graphic paper mills. For the Sappi Gratkorn Mill in Austria, the investment will focus on upgrading pulp production facilities, as well as papermaking capabilities. Gratkorn currently produces almost 1 million metric tpy of coated woodfree paper. The investment is aimed at securing sustained cost reductions, increased flexibility in production, and further improved profitability rather than at increasing capacity.

The investment in Sappi's Kirkniemi Mill in Finland, one of Europe's largest and most modern coated magazine paper mills, involves the building of a new power plant on the mill site, significantly improving cost competitiveness and profitability.

Berry Wiersum, CEO Sappi Fine Paper Europe, said that "despite a tough environment, we are making progress with the necessary transition work identified to strengthen the company and improve our profitability into the future. We are optimistic about our Gratkorn and Kirkniemi investments and look forward to the benefits they will return to the company in the coming years. The investments are aimed at upgrading, modernizing, and securing further substantial cost reductions."

Sappi Kirkniemi mill in Lohja, Finland, is part of Sappi Fine Paper Europe. Annually it produces 735,000 metric tons of high quality magazine papers that are used for premium quality publications all over the world. The mill employs 600 paper industry professionals from production to R&D. More than 90% of the mill's production is exported.

Sappi Gratkorn mill in Gratkorn, Austria, annually produces 950,000 metric tons of high quality double and triple coated papers that are used for premium quality publications all over the world. Gratkorn mill also produces 250,000 metric tpy of totally chlorine free (TCF) chemical pulp. The mill employs 1,300 paper industry professionals from production to R&D. About 95% of the mill's production is exported.

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