BillerudKorsnäs, a Swedish manufacturer of renewable packaging material, has invested around SEK900m ($126m) to expand its mills at Frövi and Rockhammar.
The investment will be used to increase the capacity and improve output quality at the two mills, which primarily produce cartonboard and liquid packaging board.
As part of the investment, Frövi mill will acquire a rebuilt board machine, while the Rockhammar pulp mill will receive a capacity upgrade.
BillerudKorsnäs CEO Per Lindberg said: "We have set an ambitious growth agenda for BillerudKorsnäs.
"For the business area of consumer board, the strategy is profitable volume growth.
"This investment is an important part of realising that strategy."
Upon completion in 2017, the expansion will increase the capacity of the Frövi mill to an output of 550,000tpa of high-quality cartonboard and liquid packaging board, and the Rockhammar mill up to 150,000tpa of CTMP.
BillerudKorsnäs consumer board senior vice-president Ulf Eliasson said: "The demand for BillerudKorsnäs cartonboard and liquid packaging board is increasing."
With this investment, the company claims that it will operate the largest machine for the production of cartonboard and liquid packaging board integrated to chemical pulp in the world.