Finnish pulp and paper manufacturer Stora Enso is investing €63m to increase consumer board and biomaterials capabilities in China and Sweden.
Of the proposed investment, €31m will be spent on a polyethylene (PE) coating line in the new consumer board mill in Beihai, China. The line is expected to enter service in the second quarter of this year.
The investment is said to improve Stora Enso's competitiveness by enabling short lead-times and full quality control for the PE-coated prime food service board.
Stora Enso is also investing €16m in a new chemical plant at the consumer board mill in Skoghall, Sweden, to improve the environmental performance of the mill.
A further €16m is planned to improve the environmental performance of its mill in Skutskär by reducing sulphur emissions.
Expected to be completed in 2017, the investments will further enhance Stora Enso's transformation into a global renewable materials growth company.
Stora Enso said €31m of these investments are part of the group's 2016 capital expenditure forecast, which amounts to €680-€720m.
The company recently opened a new centre in Helsinki, Finland, which aims to promote the development of innovative solutions for renewable packaging.
Located at the company headquarters in Kanavaranta 1, the facility features a packaging design lab, presentation areas with advanced touchscreen technology and virtual-reality retail technology.
Stora Enso intends to commercialise new packaging concepts and design trends, which can drive sales, and reduce costs and theenvironmental impact at the same time.