SCA Investing in Kraftliner Production at Munksund Mill

SCA, Sweden, reports that it will invest a total of SEK 540 million to strengthen kraftliner production in Munksund, Piteå, Sweden. The intention is to upgrade the mill's paper machine and refurbish its soda-recovery boiler,

The main aim of the investment is to increase production of the share of value-added products, such as white-top kraftliner, which, for example, is used for packaging of consumer goods with high-quality print.

As a result of the investment, Munksund will be able to increase its total annual kraftliner capacity to 415,000 metric tpy, from the current level of 360,000 metric tpy. The bulk of the investment, SEK 400 million, will be used to upgrade the paper machine. The remaining SEK 140 million will finance the replacement of the pressure vessel in the soda-recovery boiler, which will enhance heat recovery and enable increased future output.

The upgraded equipment is expected to be fully operational during 2013.

"The investment facilitates increased production of white-top kraftliner, a strong specialty paper for the corrugated board industry that is experiencing a high growth rate. The investment is in line with the company's strategy, which is to increase production and sales of products and services with a higher degree of refinement that adds value for our customers," says Jan Johansson, SCA's president and CEO.