Thursday, 10 February 2011 08:55

M-real plans to invest approximately EUR 30 million to expand capacity at Äänekoski and Kyröskoski mills

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M-real Corporation, part of Metsäliitto Group, plans to increase the annual folding boxboard capacity of Äänekoski and Kyröskoski mills in total by about 70 000 tonnes. The combined value of the planned investments in Äänekoski and Kyröskoski is approximately EUR 30 million. The Kyroskoski investment is planned to be completed in late 2011 and the Äänekoski investment in spring 2012.


Related to the planned investment M-real will start statutory negotiations at the Äänekoski board mill on 18 February 2011 covering the mill workers in total of about 130 people. The maximum personnel reduction need is estimated to be 10 people. Kyröskoski investment is expected to have no personnel impact.


Following the planned investments the annual folding boxboard production capacity at Äänekoski mill would be approximately 240 000 tonnes and approximately 190 000 at Kyröskoski mill. The new production volumes are planned to be sold to food packaging purposes. In addition to these planned investments M-real has good potential to further increase the capacity of Kyroskoski and Äänekoski mills if the market situation so requires.


“Demand growth for M-real’s ecological and safe virgin fibre board has in food packaging been faster than expected and the expansion of Simpele mill’s capacity that will be implemented in spring 2011 is not enough to satisfy the demand. The best way to increase our production is to debottleneck the current board machines in moderate steps. Our target is to continue the profitable growth of our cartonboard business,” says CEO Mikko Helander.

 

M-real has announced plans to increase the annual folding boxboard capacity in total by about 150 000 tonnes during 2011-2012 including the investments at Simpele, Äänekoski and Kyröskoski mills. Thus, M-real’s total folding boxboard capacity would increase to about 935 000 tonnes per annum.

Read 3293 times Last modified on Thursday, 10 February 2011 09:18