The board of BillerudKorsnäs, Sweden, this week decided to carry out the largest investment in the history of the company and one of the largest in Sweden in recent years—a new board machine at the Gruvön site. The decision was made in view of increasing demand for sustainable packaging solutions for food and beverages globally, the company noted. 

The investment of SEK 5.7 billion includes the construction of a new board machine at the Gruvön production site and rebuilds in the existing pulp mill. The board machine will have a capacity of 550,000 metric tpy of board, making it one of the largest of its kind in the world. The machine will produce liquid packaging board, cartonboard, food service board, and liner. The investment project will start immediately and production is expected to start in the first quarter of 2019.

 

 

"This is a historical decision for BillerudKorsnäs. The stable market growth in liquid packaging board and other cartonboards, together with our unique expertise in this area, mean that we are perfectly positioned to satisfy global demand. Access to renewable raw materials from sustainably managed forests in the Nordic region was a key factor when evaluating different alternatives," said Per Lindberg, president and CEO of BillerudKorsnäs.

Smart packaging solutions can reduce dependence on fossil fuels, reduce climate impact and littering, and also increase food safety, BillerudKorsnäs pointed out. Demand for sustainable solutions, it added, is growing around the world as increasing numbers of brand owners, food retailers, and consumers make conscious choices." As current capacity at BillerudKorsnäs’ production units is not sufficient to meet future demand, the opportunity of new board production at Gruvön has been investigated in detail since 2015," the company said.

In addition to growth in liquid packaging board and other cartonboards, this week’s decision will result in a streamlining of the production structure within the company. Current paper production at Gruvön will gradually be transferred to other plants within the company during ramp up of the new board machine, with the aim of offering customers fully satisfactory alternatives. Gruvön’s production of high quality fluting will not be affected by the investment.