Pulp and paper manufacturer Stora Enso has decided to commence a feasibility study with the aim of converting the Varkaus Mill fine paper machine in Finland to produce virgin-fiber-based containerboard.
Expected to be completed in the first quarter of 2014, the study will evaluate the profitability of the project to manufacture containerboard at Varkaus Mill.
The capital expenditure for the conversion, which is in line with the company's investment criteria, is estimated to be in the range of €80-100m, if the investment is approved following the study.
Stora Enso Renewable Packaging SVP Packaging Solutions Hannu Alalauri said it is an opportunity to grow in the containerboard market at competitive investment cost.
"We have already invested EUR 280 million in our recovered-paper-based containerboard mill site at Ostroleka, Poland, and now we are actively evaluating a next step in virgin-fibre-based packaging grades," Alalauri added.
Varkaus Mill has one paper machine with a capacity of 285 000t of uncoated fine paper annually. The machine's potential capacity would be about 350 000t annually.
