Finnish paper and pulp company Metsä Board will be installing a new folding boxboard machine BM1 at its Husum mill in Sweden as a part of its €170m investment programme.
The installation will replace existing PM6 and PM7 paper machines at the facility.
BM1 has a production capacity of 400,000 t/a, which will increase the firm's cumulative capacity for paperboard production to more than 2 million t/a.
Metsä Board intends to complete installation of the additional equipment by January 2016.
Metsä Board CEO Mika Joukio said: "Resource efficiency and product safety have become even more important in consumer, retail ready and food service packaging.
"As a result, customer demand for our pure fresh forest fibre-based paperboards is growing.
"We want to respond by offering our customers high-quality paperboards also developed for new kinds of end uses."
Additional production will be forwarded to the Americas, and for food service end uses, including cups, plates and trays globally.
The equipment will also allow the firm to optimise its production across its Finnish mills and improve overall availability of its high-quality paperboard products.
Metsä Board already carried out several improvements at its Husum mill this year, both at the pulp mill and at its own port, in order to support its expansion initiatives.
The firm is focused on producing fresh forest fibre-based folding boxboards and liner boards for consumer goods, retail-ready and food service packaging.
In an attempt to develop lightweight paperboards, Metsä Board tested foam forming technology at its Kyro mill in Finland in May.
Image: The surplus production will be used for food service end uses, including cups, plates and trays globally. Photo: courtesy of Metsä Group.