This morning, the Cacia industrial complex officially opened the extension to its pulp mill, the result of an investment project worth € 56.3 million which is set to boost the Group's annual exports to more than 120 countries by a further € 30 million. This capital project has increased the production capacity at the mill by 20%, from 294 to 353 thousand tons of paper pulp per annum, accompanied by an increase in production of renewable energy of around 9%, to a total of 336.7 MW/year. In the afternoon, AMS officially opened its new tissue paper production line at its plant in Vila Velha de Ródão, which was taken over by the Portucel Soporcel group at the start of this year. This expansion project involved investment of € 39 million and has created 70 new direct jobs, doubling the production capacity of the plant, which is now set to increase exports by around 40% and EBITDA by 72%. Purchasing around 40% its supplies from local companies, the new mill has increased its factory floor space from 40,000 m2 to 70,000 m2 and is fitted with the latest environmental technologies which will allow it to cut CO2 emissions by 22,000 tons/year.
Holmen has signed an agreement to acquire Linghem Sawmill from its present owner, Rörvik Timber. The sawmill has a new saw line with capacity to produce 75 000 cubic metres per year. Logs more slender than those sawn at the Group’s Braviken Sawmill, 40 km from Linghem, are used as raw material. The purchase price is SEK 48 million.
“The acquisition of Linghem Sawmill forms part of our strategy to make use of a greater proportion of the raw material in the area around our sawmills. It makes us an even better partner in relation to the forest owners,” says Johan Padel, head of Wood Products business area, and continues: “Linghem’s products supplement Holmen’s current business structure and reinforce the company’s market position in Sweden and the UK.”
A planing mill is also included in the sawmill, which employs 28 people. The takeover has been planned to take place on 28 April.
Ongoing measures are being taken at Holmen’s two existing sawmills to refine the business. At Braviken Sawmill, two types of wood are now being sawn, distribution has been streamlined and the degree of added value is being increased through the construction of a wood treatment plant. At Iggesund Sawmill, investments in the plant have increased capacity by 15 per cent over the past year. Furthermore, opportunities to establish production of solid wood wall modules (cross laminated timber) are being investigated as a result of the greater interest in wood construction.