The pre-engineering has now been completed and Metsä Board has decided not to proceed with the investment in the Kaskinen folding boxboard mill. The total cost of the planned investment was significantly higher than originally estimated, meaning that the targets for payback time and return on capital employed would not have been met. Metsä Board will write down the costs of the pre-engineering, in total approximately €8m, treated as an investment, as an item affecting comparability in the January-March 2024 operating result.
Metsä Board has decided to launch programmes for new product options as well as growth and development investments at its existing mills in order to implement its strategy to grow in fibre-based packaging materials and renew its industrial operations. The programmes will support the company’s target of fossil-free production by the end of 2030. In addition, the company will continue to develop packaging solutions that reduce the use of plastics.
At the Husum integrated mill in Sweden, Metsä Board will start a programme to introduce new products on the current white kraftliner production line (BM2). The aim is to find new innovative solutions for the growing food and food service packaging segment. The company continues to plan the renewal of the fibre line at the Husum pulp mill.
The company also launches a major investment programme to modernise the Simpele board mill, which will be implemented in phases. The programme includes renewals in the mechanical pulp production, in the pre-drying and coating section of the paperboard machine as well as in the finishing area. The programme also includes a new power plant. As a result of the programme, the quality, performance and cost competitiveness of the folding boxboard will improve, and the production capacity will increase.
At the Kyro board mill, an investment programme will be launched to improve the performance of the current barrier board and expand its end-use areas.
The total estimated investment cost of the Simpele and Kyro paperboard mills is €250m over the next 10 years.
