The project is in response to growing demand for Genuine Vegetable Parchment (GVP) products used in baking and cooking papers and other food packaging.
Cooking & baking papers
It claims the market for GVP products is estimated to grow around 3-4% annually.
“The investment to increase our GVP capacity is in answer to the growing demand for cooking and baking papers in Europe and Americas,” said Juho Erkheikki, investor and media relations manager, Ahlstrom-Munksjö.
“The market has tightened and our lead times have become longer in serving our customers.”
He added the $7.5m investment includes installing a parchmentizer line, as well as the building hosting it and a warehouse at the site.
Ahlstrom-Munksjö’s GVP papers are made out of 100% cellulose fibers with no chemical additives, and most of its variants are biodegradable and home compostable.
Erkheikki said they offer optimal release, greaseproof and heat resistance properties, making them ideal for baking and cooking applications in both professional and domestic use.
The Saint Severin plant, located in southwestern France, is part of the Specialties business area. Its main products include food and beverage packaging materials and it employs around 140 people.