Metsä Board, part of Metsä Group, announced on 27 July 2021 an investment of EUR 210 million in increasing folding boxboard capacity at its Husum mill in Sweden. The company is responding to growing demand for sustainably produced packaging materials that support the circular economy. The investment strengthens Metsä Board's position as the leading producer of folding boxboard in Europe.
At present, the annual folding boxboard capacity of the Husum’s paperboard machine BM1 is 400,000 tonnes, and after the investment it will rise to 600,000 tonnes. Additional capacity will enter the market during 2024–2025. The investment value is approximately EUR 210 million, divided in 2021–2024 and mainly in 2022–2023. The investment will be financed with current cash funds and future cash flows from operating activities. The Husum port concept will be examined separately, taking into account the growing logistics volumes of the entire integrated mill, and the necessary potential investments will be decided later.
Preparatory work for construction will begin in October 2021 in connection with the planned annual maintenance shutdown of the Husum integrated mill. The ramp-up of additional capacity is expected to start in autumn 2023 and full production capacity is expected to be reached by the end of 2025.
The investment will increase Metsä Board's annual sales by approximately EUR 200 million. In addition, the investment is estimated to have a positive impact of approximately EUR 50 million on the company's annual comparable EBITDA. Sales growth and EBITDA improvement are expected to be achieved in full in 2026.
Metsä Board’s operating result for July–September 2021 will include an impairment loss of approximately EUR 5 million related to the paperboard machine BM1, and it will be reported as an item affecting comparability.
The additional capacity will be directed mainly to the North American and European markets, where the demand growth for Metsä Board's premium lightweight paperboards is expected to continue. Metsä Board's folding boxboard is used, for example, in food, pharmaceutical and cosmetics packaging as well as in food service packaging.
Metsä Group is leading the way in advancing the bioeconomy. We invest in growth, bioproduct development and a fossil free future. The raw material for our products is renewable wood from sustainably managed northern forests. We focus on the growth sectors of the forest industry: wood supply and forest services, wood products, pulp, fresh fibre paperboards, as well as tissue and greaseproof papers.
Metsä Group’s annual sales amount to approximately EUR 5.5 billion, and we have around 9,200 employees in 30 countries. Our international Group has its roots in the Finnish forests: our parent company is Metsäliitto Cooperative which is owned by 100,000 forest owners.
Metsä Board is a leading European producer of premium fresh fibre paperboards. We focus on lightweight and high-quality folding boxboards, food service boards and white kraftliners. The pure fresh fibres we use in our products are a renewable resource, traceable to origin in sustainably managed northern forests. We are a forerunner in sustainability, and we aim for completely fossil free mills and raw materials by 2030.
Together with our customers we develop innovative packaging solutions to create better consumer experiences with less environmental impact. In 2020, our sales totalled EUR 1.9 billion, and we have about 2,400 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki.