SKG aims at increasing production capacity at its Townsend Hook paper mill in the UK. The company said it will install a revamped, second-hand containerboard machine with a total capacity of 260.000 tpy of lightweight recycled containerboard to replace the existing two machines offering a combined capacity of 240.000 tpy. Rebuild and installation work at the site is scheduled for completion in 2014. The total cost of the project, including acquisition, conversion, and installation expenses, is said to be €115m.
SKG acquired the second-hand containerboard machine in 2010 from the insolvent Italian manufacturer Cartiera di Cadidavid. The installation of the 5 m wide machine at the Townsend Hook mill should help the company to meet the growing demand for lightweight recycled containerboard in Ireland and the UK and increase the its degree of vertical integration, SKG explained.