GERMANY (From news reports) -- Smurfit Kappa has announced a significant investment in its Hoya paper mill and board manufacturing plant in northwest Germany. It is the latest phase of an investment programme, which commenced in 2011, and this last phase will see production output increase by 70 kt to 450 kt per annum.

The investment will replace the complete press section of the PM2 paper machine with new state-of-the-art technology, increasing the overall efficiency of the manufacturing process. The PM2 is a 7.5 meters wide paper machine, producing both testliner and fluting packaging paper. Production speed will increase to 1250 m/min and upon completion, this world class machine will further strengthen the industrial efficiency of Smurfit Kappa Group's containerboard system. It is expected to be operational from the first quarter of 2023.

Saverio Mayer, CEO, Smurfit Kappa Europe said: 'This investment will be the final and significant phase of a programme of sustained investment at our Hoya Mill which commenced over a decade ago. Today's announcement underlines Smurfit Kappa's continued commitment to developments in leading edge technology and our operations in Germany.'

The investment means that CO2 emissions will be reduced by 5,500 tons per annum.

Also commenting on the investment, Andreas Noss, Managing Director of the Smurfit Kappa Hoya Mill, said: 'This investment will make the PM2 a state-of-the-art light weight paper machine that enables us to meet the changing needs of our customers. It will increase production speed and produce light weight paper in the most efficient and sustainable way possible.'

The Hoya site in Germany has been in operation for over 50 years and is a major regional employer, with over 300 people working at the facility.