More Folding Boxboard for Food Industry to Meet Demand

M-real is also investing at its Kemiart Liners mill and in the construction of a bio power plant at Kyro.

6/10/2011 --- An additional 80,000 tonnes per annum of folding boxboard, primarily aimed at meeting increased demand from the food industry, is coming on stream following completion of a rebuild at M-real’s Simpele mill in Finland. The rebuild was finished according to schedule on June 1st 2011.

In addition to Simpele, M-real is increasing capacity at its Äänekoski and Kyro mills, planned for completion in late 2011 and spring 2012 respectively. As a result of the rebuilds, M-real will increase its total folding boxboard capacity to around 935,000 tonnes and further strengthen its position in the market. M-real is also investing at its Kemiart Liners mill and in the construction of a bio power plant at Kyro. In total, investment in the Consumer Packaging business area will exceed EUR 100 million during 2010-2012, Simpele being the first phase of the investment programme.

Demand for our primary fibre boards has been excellent, due not only to their high performance and sustainability, but also due to rising concern over product safety, says Mika Joukio, Senior Vice President, Head of Consumer Packaging for M-real. We can now fulfill more orders for Simcote, a pure and lightweight grade ideal for food packaging, as well as other end uses such as pharmaceuticals where safety is paramount.

M-real Simpele is already considered the most efficient cartonboard mill in Europe and Simcote the most efficient board grade as defined by its consistency and yield. The EUR 26 million invested at Simpele will increase production capacity by 80,000 to 300,000 tpa and sheeting capacity by 40,000 to 230,000 tpa.