Investments in future growth

Since 2015, Metsä Group’s total investments have exceeded EUR 6 billion. The most recent completed projects include the expansion of the Mariestad tissue mill in Sweden and the modernisation of the Simpele paperboard mill, both completed in 2025. The start-up phase of the new Kerto LVL mill in Äänekoski has begun, with commercial production on both lines expected to start by the end of 2026. In addition, a pilot plant for a new lignin-based product was launched in Äänekoski in 2026.

Metsä Group also has several pre-engineering projects underway for new investments. The first commercial Kuura textile fibre mill is in pre-engineering, with Kemi and Äänekoski being considered as potential locations. The pre-engineering phase of the Muoto packaging mill was completed in 2025, and a possible investment decision is expected in the near future. The latest initiative is a commercial-scale wood-based carbon capture facility planned for Rauma, where pre-engineering started in early 2026.

Completed and ongoing investments

Äänekoski Kerto LVL mill

Metsä Group has built a new Kerto LVL mill in Äänekoski, valued at approximately EUR 300 million. The annual production capacity is around 160,000 cubic metres, increasing the company’s Kerto LVL capacity by about 50%.

Equipment installations have progressed as planned, and full-scale test runs are underway. Both production lines are expected to enter commercial operation by the end of 2026. The new mill represents state-of-the-art technology and efficiency in its field.

Development of the Mänttä tissue paper mill

Metsä Group is implementing an approximately EUR 100 million investment programme at its Mänttä tissue paper mill. The aim is to enhance operations, modernise the mill and extend its lifecycle. The programme will be carried out over several years.

The first phase includes a new hand towel production line for fresh fibre-based products, primarily for the Finnish market. The new line is expected to be commissioned in the second quarter of 2026, with further phases under planning.

Expansion of the Mariestad tissue mill

In 2025, full-scale production started at the expanded and modernised Mariestad tissue mill in Sweden. The EUR 370 million investment included a new tissue paper machine and three new converting lines for both rolled and folded tissue products. The mill’s annual capacity increased to 145,000 tonnes.

The new capacity significantly strengthens the local availability of high-quality tissue products for both consumer and professional customers across Scandinavia.

Modernisation of the Simpele paperboard mill

A EUR 60 million modernisation project at the Simpele paperboard mill was completed at the end of 2025, taking board quality to a new level. The investment included a full bebuild of the coating section, expansion of the coating colour kitchen, and installation of a new pallet packaging line.

Previously, 89% of the mill’s energy consumption was fossil-free. With the new technology, the share increased to 98%, marking a significant step towards the company’s 2030 fossil-free production target.

Kemi bioproduct mill and linerboard mill upgrade

Metsä Group’s Kemi bioproduct mill started operations in autumn 2023. Valued at approximately EUR 2 billion, it is the largest investment in the history of the forest industry in Finland.

The mill produces approximately 1.5 million tonnes of softwood and hardwood pulp annually, along with a wide range of other bioproducts. It represents global best-in-class performance in production, environmental and energy efficiency. The mill does not use fossil fuels and has a self-sufficiency rate in electricity of 250%.

Metsä Group has also upgraded the adjacent linerboard mill. Modernisation and debottlenecking investments increased the annual production capacity of white kraftliner by approximately 40,000 tonnes. The integration between the bioproduct and board mills, together with production line upgrades, significantly improves water and energy efficiency.

Investments in pre-engineering

Wood-based carbon capture

Metsä Group has launched a pre-engineering project for a wood-based carbon capture facility and has applied for support under the Ministry of Economic Affairs and Employment’s reverse auction scheme for clean transition investments.

The potential plant would be located at the Rauma pulp mill, with a nominal capacity of around 100,000 tonnes of biogenic CO₂ annually. The CO₂ would be captured from the mill’s flue gases.

Kuura

Pre-engineering for the first commercial Kuura textile fibre mill began in 2025. Initially planned for Kemi, Äänekoski is now also being evaluated as a potential location.

The aim is to prepare for industrial-scale production of Kuura fibre, marking a significant step in Metsä Group’s strategy to develop higher value-added wood-based products. Kuura textile fibre is made from softwood pulp.

Muoto

Pre-engineering for the first commercial Muoto packaging mill was completed in 2025, and a potential investment decision is expected in the near future.

The Muoto technology converts wet pulp directly into three-dimensional packaging products without intermediate steps. The recyclable Muoto packaging is suitable for applications such as takeaway food, berry packaging, trays and combination packaging solutions.