Updated estimates show that the investment costs for BillerudKorsnäs' (Sweden) new board machine in Gruvön, Sweden, may increase by approximately 20% compared with previously announced investment costs totaling SEK 5.7 billion.

 

The increased investment is mainly due to higher costs for the construction work. The production on the new machine is still expected to start during the first quarter of 2019.

 

"The cost increase is of course not good, and we have worked very hard throughout the project to keep the budget for the project. Unfortunately, we have had a difficult development on the construction side, which will lead to an increase of the investment. We are still seeing a strong development in the liquid packaging segment and other packaging materials that will be manufactured on the machine. We are convinced that we will be perfectly positioned to satisfy global demand in this market with this investment," said Christer Simrén, BillerudKorsnäs SVP and COO. 

BillerudKorsnäs is a leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, containerboard (fluting and liner), and market pulp. The company has 8 production sites in Sweden, Finland and the U.K.