Munksjö: Investment in Arches to secure leading position within abrasive backings
MUNKSJÖ OYJ, PRESS RELEASE 7 September 2016 at 3:50 p.m. CEST
Munksjö’s Arches facility, France, is producing specialty papers for several product applications. To secure the leading position within abrasive backings and due to increased customer demand, a paper machine at the production facility will be rebuilt. After the rebuild, the paper machine will continue to be able to produce both decor and abrasive backings. The rebuilt will also enable additional capacity within latex impregnated abrasive backings and hence allow for new product applications and a more efficient production.
The rebuilt is planned to take place in two steps during the seasonal shutdowns in the summer and at the end of 2017.
The capital expenditure related to the rebuilt is estimated to a total of approximately EUR 14 million. The clear majority of the related cash flow effect is expected to occur during 2017, starting from the first quarter. The investment decision does not change the outlook given for Munksjö’s capital expenditure for fixed assets in 2016, which remains unchanged.
“Munksjö is a world-leading supplier of abrasive backings. The market is growing and so is the demand from our industrial customers that require applications with the highest strength, durability and endurance. This investment ensures that we continue to be a market leader in this segment and confirms our commitment to continue to support our customers’ growth.” says Dan Adrianzon, President Industrial Applications.
The operations at the Arches facility include production, sales and marketing of mainly decor paper, abrasive backings, and fine art paper.
Munksjö Oyj
For more information, please contact:
Nikita Mulard, Mill Manager Arches and VP Abrasive, tel. +33 3 29 32 60 00
Anna Selberg, SVP Communications, tel. +46 70 323 10 32
Laura Lindholm, Head of Investor Relations, tel. +46 72 703 6336
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