Metsä Board has completed the preliminary study for the new paperboard mill in Kaskinen and has decided not to pursue the investment in the folding boxboard mill in Kaskinen. Instead, the company will invest in existing mills.
The plans for the Kaskinen mill will not be pursued as the total cost of the planned investment is significantly higher than originally estimated, which means that the targets for payback time and return on capital employed cannot be met, the company announces. In September 2022 Metsä Board announced plans for a new 800,000 tpy mill in Kaskinen.
Metsä Board will write off the pre-engineering costs totalling approximately €8 million, which are treated as an investment, as an item affecting comparability in the operating result from January to March 2024.
Instead, Metsä Board will invest in the plants in Simpele, Finland and Kyro, Finland, and continue to pursue the plans in Husum, Sweden. The focus here will be on the development of new products, particularly in the area of packaging solutions that reduce the use of plastics.
At the integrated Husum mill in Sweden, Metsä Board will start a programme to introduce new products on the current white-tip kraftliner production line (BM 2). The aim is to find new innovative solutions for the growing food and foodservice packaging segment. Metsä Board remains committed to plans to renew the fibreline at the Husum pulp mill.
Metsä Board is also launching an extensive investment programme to modernise the Simpele board mill, which will be implemented in several phases. The programme includes renewals in mechanical pulp production, in the pre-drying and coating sections of the board machine and in the finishing area. The construction of a new power plant is also planned. As a result of the programme, the quality, performance and cost competitiveness of the folding boxboard will be improved and production capacity will be increased, according to Metsä Board.
An investment programme will be launched at the Kyro board mill to improve the performance of the current barrier board and expand its end-use areas.
The estimated total investment cost for the board mills in Simpele and Kyro is €250 million over the next 10 years.
