A new paper machine is to replace the old kraftliner machine and increase production capacity at Obbola containerboard mill to 725,000 tpy.
SCA will invest SEK7.5bn to increase production capacity at the Obbola kraftliner mill in Sweden by 275,000 t to 725,000 tpy. The new paper machine is scheduled for start-up in the first quarter of 2023. It would take three years for the new kraftliner machine to reach the full capacity, SCA stated.
The new paper machine at the Obbola containerboard mill in Umeå will replace the 450,000 tpy kraftliner machine installed in 1975. SCA plans to construct the new kraftliner machine parallel to the existing PM, allowing kraftliner production on the current paper machine to be fully maintained until 2023.
According to SCA, demand for paper based packaging is growing driven by increased e-commerce, a growing population and the ambition to reduce the use of plastic. At a kraftliner price of €600/t, the investment was expected to generate an annual EBITDA improvement between SEK800m and SEK1bn after full ramp-up, the Swedish forest products company explained.
The new PM is going to be "world's most advanced and productive kraftliner machine" with best available technology alllowing for future development potential, SCA announced. The company originally planed to increase capacity at the Obbola mill to 850,000 tpy.
This article is only an excerpt from our latest reporting on SCA and kraftliner markets in Europe.
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