Ahlstrom-Munksjö is planning to make a €21m investment to support coated specialities capabilities at its Jacarei plant in Brazil.

The investment is set to be completed in Q3 2019 and will enable the company to better serve customers in South America with enhanced offerings.

Ahlstrom-Munksjö’s coated specialities business produces products for application in manufacturing and production processes, including abrasive backings, electrotechnical insulation papers, coated label and flexible packaging papers, release liners and speciality pulp.

“The investment shows our long-term commitment to the South American market and our ambition to maintain a leading position in coated speciality papers.”

The project is expected to expand the site’s capabilities of coating and calendaring on the paper machine. The additional capacity will enable Ahlstrom-Munksjö to offer improved on-line coated products to clients in self-adhesive and wet glue labelling, flexible packaging and sublimation printing segments.

Ahlstrom-Munksjö Industrial Solutions executive vice-president Daniele Borlatto said: “The investment shows our long-term commitment to the South American market and our ambition to maintain a leading position in coated speciality papers.

“This allows us to better serve our customers, continuing to grow with them by developing sustainable and value-added fibre-based solutions.”

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The company will also enhance flexibility to deliver a wider range of product trims, as well as an improved product mix and increased production efficiency.

In addition, the modernisation will offer additional innovation opportunities in existing and new product areas.

In April this year, the firm reached a deal to purchase MD Papéis’ Caieiras speciality paper mill near Jacareì in Sao Paulo, Brazil.

With the acquisition, Ahlstrom-Munksjö will have three operating plants in the country, generating revenues of around €200m.