The company's expects that the factory in Spain to be operational by spring 2008. It will be constructed next to the group's pulp mill in Miranda in northern Spain and will produce its SilviPak brand. SilviPak is a flexible fibre-based material that does not become hot and can be handled directly from the oven. The material is suitable for frozen and chilled food and is an alternative to aluminum and plastic tray packaging, the company claims. The packaging can be sorted with paperboard for recycling and the protective film can be removed during the process, the company stated. The food industry is increasingly using packaging made with starch, cellulose and polylactic acid (PLA), as opposed to the traditional petroleum polymer, because of consumer concern over packaging waste causing environmental damage. The first production factory for SilviPak is based in Sweden, the company's headquarters. "The reason for the decision is that capacity at the existing production facility, which is adjacent to the Rottneros Mill in Värmland, is not sufficient to meet demand," the company stated. "With the new factory, demand for the next two to three years will be covered." Sweden-based Rottneros produces market pulp. The group has established a new business area, Rottneros Packaging, for production of pulp-based packaging materials for food use.