Renewable packaging specialist BillerudKorsnäs will invest SEK260m ($35.7m) for the sack paper machine 9 at the Skärblacka production unit.
The investment is said to form a part of the growth agenda 'Selective Growth' for BillerudKorsnäs' packaging paper business area.
As part of the investment, the head box and wire section of the paper machine will be upgraded during 2015. This is anticipated to increase the capacity of the machine by 20,000tpa up to 180,000tpa.
Paper machine 9 produces quality brown sack papers used for the construction of sacks that are primarily used for packaging cement, other construction minerals and chemicals.
Most of the sack papers produced are sold in emerging markets outside of Europe.
BillerudKorsnäs packaging paper senior vice-president Johan Nellbeck said: "We see strong potential for our sack papers in South East Asia, where our sack paper brand QuickFill is a quality leader.
"In those regions, cement and other construction minerals are very often packed in plastic sacks.
"Sacks made out of our material offer the brand owner large benefits when it comes to production economy, but also when it comes to sustainability and health."
BillerudKorsnäs currently operates eight production units and sales offices in around ten countries, by employing nearly 4,300 people.
Founded in 2012, the company generates approximately SEK20bn ($2.75bn) in net sales.
Image: BillerudKorsnäs produces brown sack papers used for the construction of sacks that are used in the packaging of cement. Photo: courtesy of BillerudKorsnäs.