Holmen announced that it will invest a total of SEK 530 million to increase paperboard and pulp production at its Iggesund Paperboard division, which is made up of the Workington Mill in the UK and Iggesund Mill in Sweden.
Production capacity for paperboard at the Workington Mill will increase by 10 percent, or 20,000 tonnes, as a result of a rebuild of the paperboard machine.s press section.
The rebuild, which is expected to be completed during the first half of 2016, will also bring improved product quality, Holmen said.
At the company's Iggesund Mill, pulp capacity will rise by 15 percent, or 50,000 tonnes. The investment will be implemented in stages from 2015-2016. The measures will also improve production stability and cut variable costs.
"Recent years have seen us invest strongly in reducing our energy costs and our dependence on fossil fuels," said Annica Bresky, CEO of Iggesund Paperboard. "Now we're investing in increased production, while also cutting our variable costs, and thus strengthening our competitiveness.
"Our strategy is to grow organically and to make additional increases to our paperboard production. For the mill in Workington, this investment marks a first step in that direction. At Iggesund Mill, our ambition is to increase production by 10 percent in coming years without any major investment," Bresky added.
