SCA decided to increase capacity for pulp production at its Östrand pulp mill in Timrå, Sweden. Production is expected to commence in 2018.
According to the announcement, the annual production capacity of bleached sulphate pulp will increase from the current level of approximately 430ktpa to about 900ktpa. The investment will amount to about SEK 7.8 billion (arround USD 900 million) over a three-year period.
Magnus Groth, President and CEO of SCA, commented: “A cohesive forest products operation in a single division further highlights the value created and optimizes synergies between the forest industry and ownership of forest land. Over time, the investment in Östrand will increase sales and competitiveness and create a world-class cost position and higher margins.”
Recently, SCA announced closure of a tissue production plant in Flagstaff, Arizona, in the US.