Sca to invest in a new paper machine for the production of kraftliner at its Obbola site


Sca will invest SEK 7.5 billion to increase the production capacity of the kraftliner mill in Obbola, Sweden, from 275 thousand to 725 thousand tonnes annually. The new paper machine will start operation in the first quarter of 2023. The new plant’s ramp-up to full capacity is expected to take three years. The new paper machine at the container plant in Obbola, Umeå, will replace the 450 thousand tonne kraftliner machine installed in 1975. Sca foresees to build the new kraftliner machine together in parallel with the existing PM, thus making it possible to maintain the kraftliner production on the current PM until 2023

According to Sca, the demand for paper-based packaging is on the rise thanks to the increase of e-commerce, the growth in population and the intention to reduce the use of plastics. The investment is expected to bring about an annual improvement of EBITDA between SEK 800 and a billion after a full increase, says the Swedish manufacturer of forest products.

The new PM will be «the most advanced and productive kraftliner in the world with the best technology available with great potential of future development», announced Sca.