Billerud to Improve Environmental, Energy Performance at Skärblacka Mill
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Billerud AB, Solna, Sweden, reports that it will proceed with an environmental and energy investment at Skärblacka mill outside of Norrköping, Sweden. The goal is to strengthen the mill for the future by improving environmental performance and energy efficiency as well as enabling future expansion. The investment is expected to amount to SEK 900 million.
The investment includes upgrading the recovery boiler and its flue gas cleaning system with the best available technology. In addition, a new evaporation unit will be built to improve energy efficiency at the mill. This will lead to a substantial reduction in consumption of fossil oil and external biofuels, the company notes.
Billerud applied to the Land and Environment Court in Växjö, Sweden, for permission to implement these changes and received approval on November 29. The entire project is scheduled for completion by the end of 2013.
Approximately 15% of the SEK 900 million investment will be spent in 2011, 50% in 2012, and 35% in 2013. With this investment in Skärblacka, the Billerud Group's total investments in property, plant, and equipment for 2012 are estimated to amount to approximately SEK 800 million. Depreciation amounts to some SEK 600 million per year.
Skärblacka Managing Director Tor Lundqvist, said that "I see Billerud's major investment in modernization of the mill in Skärblacka as a good sign for the future. Environmental improvements are made continually at the mill and reduced energy costs will strengthen our competitiveness. Our responsibility now is to manage this in the best possible manner."
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