Metsä Board will not invest in the Kaskinen folding boxboard mill
Metsä Board Corporation Investor News 21 March 2024
Metsä Board announced on 15 September 2022 that it will start pre-engineering for a new folding boxboard mill in Kaskinen, Finland. The pre-engineering phase included technical design, design of infrastructure and logistics solutions, tendering for the main equipment as well as financial analysis of the project. The pre-engineering also included an environmental impact assessment and an application for an environmental permit.
The pre-engineering has now been completed and Metsä Board has decided not to proceed with the investment in the Kaskinen folding boxboard mill. The total cost of the planned investment was significantly higher than originally estimated, meaning that the targets for payback time and return on capital employed would not have been met. Metsä Board will write down the costs of the pre-engineering, in total approximately EUR 8 million, treated as an investment, as an item affecting comparability in the January-March 2024 operating result.
Metsä Board plans investments in its existing mills
Metsä Board has decided to launch programmes for new product options as well as growth and development investments at its existing mills in order to implement its strategy to grow in fibre-based packaging materials and renew its industrial operations. The programmes will support Metsä Board's target of fossil-free production by the end of 2030. In addition, the company will continue to develop packaging solutions that reduce the use of plastics.
At the Husum integrated mill in Sweden, Metsä Board will start a programme to introduce new products on the current white kraftliner production line (BM2). The aim is to find new innovative solutions for the growing food and food service packaging segment. The company continues to plan the renewal of the fibre line at the Husum pulp mill.
Metsä Board launches a major investment programme to modernise the Simpele board mill, which will be implemented in phases. The programme includes renewals in the mechanical pulp production, in the pre-drying and coating section of the paperboard machine as well as in the finishing area. The programme also includes a new power plant. As a result of the programme, the quality, performance and cost competitiveness of the folding boxboard will improve, and the production capacity will increase.
At the Kyro board mill, an investment programme will be launched to improve the performance of the current barrier board and expand its end-use areas.
The total estimated investment cost of the Simpele and Kyro paperboard mills is EUR 250 million over the next 10 years.
Metsä Board will regularly report on the progress of the investments in its interim reports and, if necessary, in separate releases.
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.