SCA to build a new paper machine
October 24, 2019SCA produces kraftliner – paper for transport packaging – at the paper mills in Obbola (Umeå) and Munksund (Piteå). SCA has today decided to invest to increase kraftliner capacity to 725,000 tonnes of kraftliner per year, an increase of 275,000 tonnes. The new paper machine will start operation in the first quarter of 2023.
The total investment amounts to SEK 7.5 billion over a five-year period. The investment replaces necessary reinvestments in Obbola of approximately SEK 2.5 billion. The investment will be mainly financed by operating cash flow, complemented by regular group financing acitivities.
In addition to the Obbola paper mill, SCA also produces kraftliner at Munksund paper mill in Piteå. Over the past twelve months SCA’s kraftliner operations had an EBITDA margin of 35%. With a kraftliner trend price of EUR 600 per tonne, the investment is expected to generate an annual EBITDA improvement of approximately SEK 800-1,000 million after full ramp-up.
