Metsä Board to modernise Simpele board mill
Metsä Board Corporation Investor news 24 April 2024
Metsä Board, part of Metsä Group, has made an investment decision to renew the folding boxboard machine at Simpele, which will improve the quality of folding boxboard and increase production efficiency. The investment will enable the replacement of fossil fuels in paperboard production, and supports Metsä Board's target of fossil free production at all its mills by the end of 2030.
Metsä Board has previously announced (Investor News 21 March 2024) to launch a major investment programme to modernise the Simpele board mill, which will be implemented in phases over the next ten years. The planned investment programme also includes renewals in the mechanical pulp production, in the finishing area as well as a new power plant. The company has not yet taken investment decisions on these.
The renewal will increase the mill's production capacity by around 10,000 tonnes, which will bring the annual production capacity of Simpele folding boxboard to around 310,000 tonnes. The Simpele mill produces high quality lightweight folding boxboard, mainly for food and pharmaceutical packaging.
The investment will start immediately and is expected to be completed in the second half of 2025. The investment value is approximately EUR 60 million, divided over the period 2024–2026.
CEO Mika Joukio: "The renewal of the board machine is part of a wider investment programme to modernise the Simpele board mill. This investment will improve the quality of folding boxboard, meeting the strictest requirements, especially in food and pharmaceutical packaging. In addition, the investment will improve our cost competitiveness and enable almost entirely fossil free production at Simpele."
Link to photos https://databank.metsagroup.com/l/qjRW8WrC8jWL
METSÄ BOARD CORPORATION
Further information:
Media
Mika Joukio, CEO, tel. +358 10 465 4300
Investors and analysts
Henri Sederholm, CFO, tel. +358 10 465 4913
Katri Sundström, VP, Investor relations, tel. +358 10 462 0101
Metsä Board
metsagroup.com/metsaboard
Metsä Board is a producer of lightweight and high-quality folding boxboards, food service boards and white kraftliners. The pure fresh fibres we use in our products are a safe, renewable and recyclable resource, that can be traced back to northern forests. We aim to have completely fossil free mills and raw materials by the end of 2030. We promote a culture of diversity, equality and inclusion.
Metsä Board is listed on the Nasdaq Helsinki. In 2023 our sales totalled EUR 1.9 billion, and we have around 2,300 employees. Metsä Board is part of Metsä Group, whose parent company Metsäliitto Cooperation is owned by over 90,000 Finnish forest owners. The sales of the whole Metsä Group were EUR 6.1 billion.
