Investing in sustainable and profitable growth

Our strategy is to grow in fibre based packaging materials and renew our industrial operations. We implement this with investments. Below are listed our major ongoing (*) and planned (**) growth and development investments.
  1. *

    Folding boxboard capacity expansion in Husum mill, Sweden

    At the Husum integrated mill, we will increase the annual production capacity of folding boxboard with approximately 200,000 tonnes. We expect the investment be completed in the second half of 2023.

     

    Investment decision  New capacity  Start-up Investment value Investment period 
    Q2 2021 200,000 tonnes folding boxboard H2 2023 EUR 210 million 2021-2024

    Dates and figures are estimates and may change during the investment period

    Investment in brief

    Following the investment, the annual capacity of folding boxboard of paperboard machine BM1 in Husum will be 600,000 tonnes per year. Estimated start-up for additional capacity is in H2 2023, and full capacity is expected to be reached by the end of 2025.

    The investment will increase Metsä Board’s annual sales by approximately EUR 200 million. In addition, it is expected to have a positive impact of approximately EUR 50 million on the company’s annual comparable EBITDA. Sales growth and improved result is expected to be reached in full in 2026. 

    Due to the growing logistics volumes of the Husum integrated mill, the port concept will also be renewed. The value of the investments, still partly being planned, is EUR 20–30 million. 

     

  2. *

    Development programme of the Kemi paperboard mill

    The development programme for the Kemi paperboard mill includes capacity expansion of white kraftliner, a purchase of a unbleached pulp production line and improved energy and water efficiency of the mill.

     

    Investment decision  New capacity  Start-up Investment value Investment period 
    Q1 2021 40,000 white-top kraftliner, mainly coated H2 2023 EUR 67 million

    2021-2023

    Dates and figures are estimates and may change during the investment period

    Investment in brief

    The programme will increase the mill's annual white kraftliner capacity from current 425,000 tonnes to 465,000 tonnes. This will strengthen Metsä Board's global leading position as coated white kraftliner producer.  As part of the programme, the Company will buy a modernised production line for unbleached pulp from Metsä Fibre. The production line’s annual capacity is roughly 180,000 tonnes. The development programme will reduce mill's water use by 40% and energy use by 5% per tonne of paperboard produced and represents a significant step towards the company’s sustainability targets set for 2030.

    Start-up for additional kraftliner capacity is expected to be in H2 2023 and capacity to be fully in the market in 2025.

  3. *

    Husum pulp mill renewal, Phase 1

    The pulp mill renewal at the Husum integrated mill will further strengthen Husum’s position as an efficient and sustainable platform for a long-term development of premium paperboard production. The first phase of the renewal, the new recovery boiler and turbine, is expected to be completed in November 2022.

     

    Investment decision  New capacity  Start-up Investment value Investment period 
    Q2 2019 Not material November 2022  EUR 380 million  2019-2023

    Dates and figures are estimates and may change during the investment period

    Investment in brief

    In 2019, Metsä Board started the first phase of the renewal of the Husum pulp mill which includes a new recovery boiler and turbine.

    The investment value of the first phase of the renewal is EUR 380 million (was initially EUR 320 million). By the end of the Q3 2022, the investments made in the project totalled approximately EUR 350 million.

    Estimated start up for new recovery boiler and turbine is November 2022.

    The investment will reduce the energy costs of the Husum integrate, improve operational efficiency and shorten the length of the annual maintenance shutdowns. The modernized equipment and processes will significantly increase the mill's bioenergy production. The new recovery boiler and turbine will increase the pulp mill's electricity production by around 330 gigawatt-hours per year, which means that electricity self-sufficiency of Husum integrate will increase from 40% to 80%.

    The first phase of the renewal is expected to improve Metsä Board’s annual cash flow by some EUR 35 million as of 2023. 

     

  4. **

    Husum pulp mill renewal, Phase 2

    In the second phase of the renewal, during 2020s, the mill’s fibre line will be renewed. Final investment decision has not yet been made.

  5. **

    A pre-engineering for new folding boxboard mill in Kaskinen, Finland

    Metsä Board announced in May 2022 that it will explore possibilities to increase folding boxboard capacity in Finland or Sweden in order to support its customers’ growth and to strengthen its service capability. As result of the study, the company will start pre-engineering for a new folding boxboard mill with an annual capacity of approximately 800,000 tonnes at the Kaskinen mill site in Finland. The pre-engineering phase will include technical design, design of infrastructure and logistics solutions and tendering for the main equipment. As part of the pre-engineering, an environmental impact assessment and an environmental permit process will be launched.

    The company estimates that a possible investment decision could be made in 2024 at the earliest. Read more in Investor news on 15 September 2022.

    Estimated timetable for the investment is in here.

    Read the Press release on 12 January 2023 related to the EIA procedure of the new folding boxboard mill