Munksjö’s (Finland) Arches facility in France produces specialty papers for several product applications. To secure the leading position within abrasive backings, and due to increased customer demand, a paper machine at the production facility will be rebuilt,  the company explained. After the rebuild, the paper machine will continue to be able to produce both decor and abrasive backings. The rebuild also will enable additional capacity within latex impregnated abrasive backings and hence allow for new product applications and a more efficient production, the company explained.

The rebuild is planned to take place in two steps during the seasonal shutdowns in the summer and at the end of 2017. 

The capital expenditure related to the rebuilt is estimated to total EUR 14 million. The clear majority of the related cash flow effect is expected to occur during 2017, starting from the first quarter. The investment decision does not change the outlook given for Munksjö’s capital expenditure for fixed assets in 2016, which remains unchanged. 

"Munksjö is a world-leading supplier of abrasive backings. The market is growing and so is the demand from our industrial customers that require applications with the highest strength, durability, and endurance. This investment ensures that we continue to be a market leader in this segment and confirms our commitment to continue to support our customers’ growth," said Dan Adrianzon, president of Munksjö Industrial Applications. 

The operations at the Arches facility include production, sales, and marketing of mainly decor paper, abrasive backings, and fine art paper.