Paper producer Parenco has selected German engineering firm Voith Paper for renovating its manufacturing unit at Renkum, Netherlands, and converting paper machine 2 (PM2) to a packaging output line.
The graphic paper maker is investing €100m in the conversion of the machine, expected to be completed by August 2016.
Parenco will go for a new stock preparation by rebuilding and upgrading the existing equipment.
The PM2 has been idle since 2009 due to fall in demand for newsprint. The renovated line will supply paper to corrugated board manufacturers in Europe.
Parenco managing director Geert Wassens said: "Globally, the demand for graphic paper is declining in principle and there is sufficient capacity.
"Restarting PM2 with this type of product was therefore not an option."
"The market for packaging paper has been growing for years however and it is expected to continue doing so. Extensive research showed that investing in a conversion to the production of packaging paper was the right step to guarantee long term growth and continuity for our company."
The makeover is expected to raise the manufacturing unit's capacity by around 385,000t/a, and create 60 jobs.
Having completed a 10-month pre-engineering drive, Voith will utilize the existing TMP and Deinking plant buildings during the upgrade, and rebuild the recycled fiber plant and the wet end process.
The paper machine will be equipped with two-layer headbox, NipcoFlex shoe press, SpeedFlow sizing unit and after dryer section. The process line package will display all auxiliaries, electrics, DCS, starch preparation, pumps and piping, automation control system and engineering.
The conversion of PM2 includes fermentation of waste stream, which will produce six million cubic meters of biogas. This will be used for the production of steam for PM2.
Parenco is likely to select Valmet Technologies for the construction of a new winder behind PM2.
The paper manufacturer, which was acquired by H2 Equity Partners two years ago, has previously upgraded its PM1 to supply graphic paper for leaflets, flyers, and magazines.
