Nordic Paper receives permit for increased production volume at Bäckhammar

The Land and Environment Court in Vänersborg has today communicated its decision to grant a permit for increased production output at the Nordic Paper plant in Bäckhammar, Sweden. The new permit allows for Nordic Paper to, after investments, increase its production of paper pulp in Bäckhammar by more than 20% and of kraft papers by more than 10%. The company is now going to analyse the details of the permit in order to determine any impact on potential investment alternatives.

After successful work with production development and debottlenecking over the past years, Nordic Paper had reached the upper limit for production volume allowed by the previous permit at its Bäckhammar mill. To secure the future development of the mill, Nordic Paper handed in an application for a permit for increased output to the Land and Environment Court in 2020. In parallel with the permit process, the company has investigated the investments required for an increased output. The potential investments include a new wood handling, a tube for treated process water from Bäckhammar to the lake Vänern as well as measures internally in the pulp and paper production.

"The new production permit is an important milestone in the development of the Bäckhammar mill. We now look forward to finalizing our plans and to prepare for a potential investment decision during the year", says Nordic Paper COO Christian Persson.

At Bäckhammar, Nordic Paper manufactures unbleached kraft papers of different qualities primarily for packaging end-uses. The raw material is pulpwood from sustainably managed forests in mid-Sweden as well as sawmill chips. Products made from paper from Bäckhammar include for example sacks for flour, carrier bags and bread pouches. The main market is in Europe but the papers are shipped all over the world.

For further information, please contact:

Henrik Essén, Head of Strategy & Investor Relations
Phone: +46 730 573801
E-mail: henrik.essen@nordic-paper.com

Nordic Paper is a leading specialty paper producer with its base in Scandinavia. We have been manufacturing top-quality kraft papers and natural greaseproof papers since the 19th century. Our products are based on renewable raw material from local forests. From our five paper mills, four in Scandinavia and one in Canada, we supply customers in about 80 countries. Nordic Paper had in 2022 net sales of approximately SEK 4,400m, about 670 employees and is listed on Nasdaq Stockholm. www.nordic-paper.com