New PM will boost the company's CCM output capacity to 1.85 million t
Progroup will build its new paper mill in Sandersdorf-Brehna near Bitterfeld in Sachsen-Anhalt, Germany. Construction is currently scheduled to begin in the first quarter of 2019 and, according to current planning, the project will be completed in the second half of 2020.
The investment volume amounts to a total of €375 million for the construction of the paper machine, depending on the final technical configuration. The new PM will produce recycled fluting and testliner within the grammage range of 80 to 150 g/m2. I will have an annual output capacity of 750,000 t and a working width of 9.20 m.
In addition to the construction of the paper mill, the overall project also envisages the construction of a separate RDF power plant, which will then supply the new paper machine with steam and electricity.
After a Europe-wide search for a location Progroup decided to build its new PM 3 in Sandersdorf-Brehna due to the geographical proximity to the two other Progroup paper mills, PM 1 in Burg and PM 2 in Eisenhüttenstadt. In addition, the location has an ideal transport connection.
Around 140 direct and 350 indirect jobs are to be created through the investment in the region. The production facilities will be built on about 450,000 square metres of building land on a greenfield site. Together with PM 1 and PM 2, the new machine will increase Pro-Group's total annual production capacity of corrugated case material from 1.10 to about 1.85 million t.
The company had also recently announced the construction of up to four more sheet feeder plants by 2021 as part of its so-called Two Twentyfive strategy.