€180m investment will increase Iberpapel's pulp capacity and diversify its product portfolio to include machine glazed papers for packaging applications.
Spain's Iberpapel group is announcing a €180m investment to be implemented at its Papelera Guipuzcoana de Zicuñaga pulp and paper mill in Hernani in the Basque country. The board of directors has agreed to commence with the "Hernani investment project" which will enable the uncoated woodfree paper company to enter the packaging paper market by the end of 2019.
€150m of the total investment were dedicated to the installation of the new machine glazed (MG) kraft paper machine and €50m would go into the modernisation of the existing pulp plant, Iberpapel explained in an announcement sent to the Spanish stock exchange supervisory authority.
According to Iberpapel, the new paper machine PM 5 will have an installed capacity of 85,000 tpy of MG paper. The project is expected to be realised within the next 24 to 30 months.
Iberpapel and Mondi will boost supply on the European market for MG kraft paper in 2019
The investment announcement by Iberpapel is already the second announcement in this year in the MG kraft paper segment. At the end of January Mondi group had informed that the €470m expansion and modernisation project at the Czech Štetí pulp and paper mill had been approved by the company's boards.
The project, which is still subject to obtaining approval for various tax incentives and necessary permitting, comprises an investment in a new 90,000 tpy machine glazed kraft paper machine.The new paper machine is expected to come online in the first half of 2019.
Furthermore Mondi plans to install a new recovery boiler and upgrade and debottleneck the existing pulp fibre lines and paper machines at the site. This would reportedly would result in an increase of 130,000 tpy in pulp and 55,000 tpy in packaging paper capacities.