Metsä Board will not invest in the folding boxboard mill in Kaskinen
8 April 2024
In September 2022, Metsä Board had announced its intention to start pre-engineering for a new folding boxboard mill in Kaskinen, Finland. However, once the pre-engineering phase is complete, the company will withdraw from the project.
The pre-engineering phase in Kaskinen included the technical planning, the design of infrastructure and logistics solutions, the tendering of the most important facilities and the financial analysis of the project. It also included an environmental impact assessment and an application for an environmental licence. It became apparent that the total costs of the planned investment would be significantly higher than originally estimated. As a result, the targets for the amortisation period and the return on capital employed would not be met, which is why Metsä Board will not invest in the new plant as planned. The pre-engineering costs totalling approximately EUR 8 million, which were treated as an investment, will be written off as an item affecting comparability in Metsä Board's operating result from January to March 2024.
Investments planned in existing mills
Metsä Board has decided to launch programmes for new product options as well as growth and development investments in its existing mills. The paperboard manufacturer intends to implement its growth strategy in fibre-based packaging materials and renew its industrial activities. The programmes support Metsä Board's goal of fossil-free production by the end of 2030. In addition, the company continues to develop packaging solutions that reduce the use of plastics.
At the integrated Husum mill in Sweden, Metsä Board is launching a programme to introduce new products on the current white kraftliner (BM2) production line. The aim is to find new solutions for the growing food and food service packaging segment. The company is also planning to renew the fibre line at the Husum pulp mill.
Metsä Board is also launching a further investment programme for modernisation at the Simpele board mill, which is to 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. It also includes a new power plant. As a result, the quality, performance and cost competitiveness of the folding boxboard should improve; production capacity should also increase
At the Kyro board mill, the manufacturer is also launching an investment programme to improve the performance of the current barrier board and expand its end-use areas. The estimated total investment cost for the Simpele and Kyro mills is EUR 250 million over the next ten years.
Source: Pulp & Paper