SWEDEN (News release) -- Metsä Board announced an investment of Euro 210 million in increasing folding boxboard capacity at its Husum mill in Sweden. The company is responding to growing demand for sustainably produced packaging materials that support the circular economy.

At present, the annual folding boxboard capacity of the Husum's paperboard machine BM1 is 400,000 tonnes, and after the investment it will rise to 600,000 tonnes. Additional capacity will enter the market during 2024-2025.

The investment value is approximately Euro 210 million, divided in 2021-2024 and mainly in 2022-2023. The investment will be financed with current cash funds and future cash flows from operating activities. The Husum port concept will be examined separately, taking into account the growing logistics volumes of the entire integrated mill, and the necessary potential investments will be decided later.

Preparatory work for construction will begin in October 2021 in connection with the planned annual maintenance shutdown of the Husum integrated mill. The ramp-up of additional capacity is expected to start in autumn 2023 and full production capacity is expected to be reached by the end of 2025.

The investment will increase Metsä Board's annual sales by approximately Euro 200 million. In addition, the investment is estimated to have a positive impact of approximately Euro 50 million on the company's annual comparable EBITDA. Sales growth and EBITDA improvement are expected to be achieved in full in 2026.

The additional capacity will be directed mainly to the North American and European markets, where the demand growth for Metsä Board's premium lightweight paperboards is expected to continue.