Finland-based pulp and paper manufacturer Stora Enso is investing about €63m to strengthen its consumer board and biomaterials capabilities in China and Sweden.
Of the total amount, the company will invest €31m in a new polyethylene (PE) coating line in the new consumer board mill in Beihai, China.
The mill is anticipated to commence operations in the second quarter of this year.
Stora Enso expects the investment to improve its competitiveness by allowing short lead-times and full quality control for PE-coated prime food service board.
The company is also investing €16m in a new chemical plant at the consumer board mill in Skoghall, Sweden, to boost the facility's environmental performance.
A further €16m is planned to be invested to improve the environmental performance of the company's mill in Skutskr by reducing sulphur emissions.
Stora Enso said that the investments will further improve its transformation into a global renewable materials growth company.
About €31m of these proposed investments are part of the group's 2016 capital expenditure forecast, which amounts to €680-€720m.
In 2015, the company opened a new centre in Helsinki, Finland, in a bid to enable the development of new solutions for renewable packaging.
Located at the company's headquarters in Kanavaranta 1, the facility will be used as a venue for research and development to come up with sustainable concepts.
The facility houses a packaging design lab, presentation areas with advanced touchscreen technology and virtual-reality retail technology.
Image: Stora Enso plans to transform into a global renewable materials growth company. Photo: courtesy of ningmilo/ FreeDigitalPhotos.net.
