The project includes detailed engineering services for all disciplines and field engineering, to be carried out between 2016 and Q1/2019.
550k t/a of liquid packaging board
The machine, once constructed, will have a capacity of approximately 550 000 t/a of liquid packaging board, cartonboard, food service board and liner.
Pöyry has been involved in all the pre-project engineering phases since 2014 to develop the investment plan into a viable technical concept together with BillerudKorsnäs.
BillerudKorsnäs, which manufactures confectionery, snacks and beverage packaging, announced it was building a KM7 (Karton Machine) with operations commencing in Q1, 2019, last week .
Per Lindberg, president/CEO, BillerudKorsnäs, told shareholders, it wanted to grow the company 3%-4% and several mega trends support this growth including demographic shifts, people moving into cities who consume smaller packaging sizes and sustainable trends where people favor paper or board-based materials.
He said the biggest area of growth for liquid packaging is SE Asia and this machine will be targeted towards the needs of those markets.
“The machine will have implications on all our production units in Sweden, leading to more streamlined operations. We have selected a larger machine better suited for targeting the intended markets which provides even better returns,” he added.
“The machine will start up in 2019, and be fully utilized by 2023. We will close down an existing paper mill in Gruvön and finalize redundancy costs of SEK325m. It will take a long time to ramp up production of the machine, the facility will finally produce over 900,000 tonnes of capacity on two machines.”
Streamlining operations across the group
As a result of the construction and installation of KM7 paper production at the mill will be transferred to its units in Skärblacka, Gävle, Frövi and Karlsborg, in Sweden and Pietarsaari in Finland. Gruvön’s fluting production is not affected by the investment.
Nicholas Oksanen, president, Pöyry's Industry Business Group, said it was proud to continue as a selected partner of BillerudKorsnäs with the investigation and implementation of ‘this strategically important development opportunity’.
The value of the order is not disclosed. The order was recognized within the Industry Business Group order stock in Q4/2016.
"This investment is the biggest in the history of BillerudKorsnäs and gives us a solid foundation for continuing to challenge conventional packaging for a sustainable future,” said Ulf Eliasson, senior VP, consumer board and project owner, BillerudKorsnäs.
“We like big challenges like this project and we make sure to have the best possible partners when undertaking such tasks."