Sappi Fine Paper Europe has announced plans to invest about €120m in two of its coated graphic paper mills during the next three years.
The investment is expected to decrease the cost base as well as improve the profitability of the two mills including the Sappi Gratkorn Mill and Kirkniemi Mill.
The company will use the investment to upgrade pulp production facilities and papermaking capabilities at its Gratkorn Mill in Austria by reducing costs and increasing flexibility in production.
With the investment Sappi's Kirkniemi Mill in Finland will get a new power plant on its site in order to offer better cost competitiveness and profitability.
Sappi Fine Paper Europe CEO Berry Wiersum said the company is making progress with the necessary transition work identified to strengthen itself and improve profitability, despite a tough environment.
"We are optimistic about our Gratkorn and Kirkniemi investments and look forward to the benefits that they will return to the company in the coming years," Wiersum said.
"The investments are aimed at upgrading, modernising and securing further substantial cost reductions."
