Swedish manufacturer of renewable packaging material BillerudKorsn's is investing close to SEK900m ($126m) to expand its mills at Frvi and Rockhammar.
The investment will comprise increasing the capacity and improve output quality at the two mills, which primarily produce cartonboard and liquid packaging board.
While the Frvi mill will get a rebuilt board machine, the Rockhammar pulp mill will receive a capacity upgrade.
BillerudKorsns CEO Per Lindberg said: "We have set an ambitious growth agenda for BillerudKorsns. For the business area Consumer Board the strategy is profitable volume growth. This investment is an important part of realising that strategy."
The expansion of the two mills is set to be completed in 2017. The investment will increase the capacity of the Frvi mill to an output of 550 000 t/a of high quality cartonboard and liquid packaging board and the Rockhammar mill up to 150 000 t/a of CTMP.
Consumer Board senior vice president Ulf Eliasson said: "The demand for BillerudKorsns cartonboard and liquid packaging board is increasing. Through this investment we will maintain and strengthen our competitiveness and deliver on the increasing demands on our products and services, and thereby achieve sustainable growth within our business area Consumer Board."
With this investment, the company claims that it will operate the largest machine for the production of cartonboard and liquid packaging board integrated to chemical pulp in the world.