SCA announced that it is changing the name of its "Paper" business area to "Containerboard" as of January 1, 2021.
Following the discontinuation of its publication paper operations during the first quarter, SCA's paper production will consist solely of packaging paper, a product with a stable and growing demand.
SCA in August of this year announced its intention to discontinue the production of publication paper, which is produced at its Ortviken paper mill in Sundsvall, Sweden. The Ortviken mill produces coated and uncoated publication paper on three paper machines (756,000 metric tons per year). At the same time, SCA said that it plans to invest SEK 1,45bn towards the production of chemically pre-treated thermo-mechanical pulp (CTMP) at Ortviken, which would enable the mill to produce 300,000 metric tons per year of CTMP.
SCA's newly named Containerboard business unit includes two paper mills: Munksund, near Piteå, and Obbola, near Umeå. Both mills are located in Sweden and have a combined production capacity of just over 850,000 metric tons per year.
SCA noted that it is currently investing SEK 7.5bn in the Obbola mill, which will increase SCA's containerboard capacity to 1,140,000 tonnes and further strengthen SCA's position as a leading supplier of kraftliner on the European market.
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