Innovation and Expansion: A Look at Sweden's Pulp and Paper Investments

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During the last three years many and large investments have taken place in the Swedish paper and pulp industry.

And it's not over yet! The investments do not only apply to the large groups and mills, also smaller mills and players show a strong belief in the future. I have compiled a list of investments that have taken place and are taking place, but unfortunately it may happen that I have inadvertently missed something, and in that case I apologize in advance for this. In addition to this, of course, smaller but necessary investments are continually made where old technology is replaced by new, and preliminary projects for future investments are also underway.

To get some kind of order, I start in the north and gradually go south. If you want to increase your geographical knowledge, it is good to follow the odyssey on a map of Sweden at the same time.

SCA Obbola - The world's largest kraftliner machine

Just over a year ago, SCA inaugurated its new PM2, the world's largest power kraftliner machine, in Obbola. In addition to PM2, the project includes a new winder, reel handling, new reel storage, a recycle fibre plant as well as a new lime kiln and an expanded effluent treatment plant. The mill's capacity increases from 450,000 to 725,000 tonnes kraftliner and ramp-up is underway. The entire investment amounts to SEK 7.5 billion.

SB 5nov24 1SCA Obbola PM2: For SEK 7.5 billion, SCA has got the world's largest kraftliner machine.

 

Metsä Board Husum – Additional 200,000 tonnes of folding boxboard, new recovery boiler and a turbine

SEK 3.5 billion has been invested in a new recovery boiler and a turbine replacing two existing recovery boilers and three turbines. The degree of self-sufficiency in electricity increases from 50-55% to more than 80%. For SEK 2.5 million, BM1's production capacity has been expanded from 400,000 to 600,000 tonnes of folding boxboard. The board machine has been extended and has got an increased drying capacity. The investment includes measures along the entire production line, from pulp intake to loading in the port.

SB 5nov24 2In recent years, Metsä Board has invested approximately SEK 6 billion in a new recovery boiler, turbine and expanded folding boxboard capacity.

 

Mondi Dynäs – Continuous digester and bark handling

At the kraftpaper mill Mondi Dynäs, a project is currently underway where a new continuous digester will replace old batch digesters, and a completely new bark handling facility. The start-up is planned to take place in late spring next year. The mill has a production capacity of 260,000 tonnes of very strong unbleached kraft and sack paper.

SB 5nov24 3Mondi Dynäs' location between mountain, road, railway and river places special demands on the project work.

 

SCA Ortviken - New CTMP mill

With an investment of SEK 1.45 billion, SCA has built and started up its new CTMP mill in Ortviken. Previously, there was a large newspaper and LWC mill in Ortviken, but that business was closed some years ago. SCA has produced CTMP pulp in the SCA Östrand pulp mill for a long time, but all CTMP production now takes place in Ortviken.

SB 5nov24 4SCA CTMP: The CTMP pulp is dried in two parallel flash dryer lines. 

 

Arctic Paper Grycksbo - Reduced energy costs and a new product

Arctic Paper is investing SEK 285 million in expansion and upgrading of the biofuel plant at the Grycksbo mill as well as in a new pellet factory. The investment is estimated to provide annual energy cost savings of SEK 50 million. In addition to electricity and steam, the facility will annually produce 50,000 tonnes of wood pellets to be sold on the market.

SB 5nov24 5Arctic Paper Grycksbo: Arctic Paper invests SEK 285 million in energy saving and pellet production.

 

Billerud Frövi - A new recovery boiler

In September 2023, Frövi's new recovery boiler SP4 was inaugurated, an investment of SEK 2.6 billion. The capacity of the recovery boiler is big enough to allow an increased pulp capacity in the future. Results of the investment are, among other things, reduced dust and SO2 emissions, better energy efficiency and flue gas purification and a substantial odour reduction.

SB 5nov24 6Billerud Frövi: Black liquor has been burned in Frövi's new recovery boiler for just over a year.

 

Oppboga Bruk - largest investment in over 50 years

Family owned Oppboga Bruk, earlier a board mill until 1990, has recently inaugurated its new KLM3 production line, one of the most modern lamination lines in Europe. The installation is the company’s largest investment in over 50 years, totalling more than EUR 6 million. The 50-meter KLM3 line weighing 110 tonnes boosts production capacity by 50%.

SB 5nov24 7Oppboga Bruk: The new lamination line is the company’s largest investment in over 50 years.

 

Nordic Paper Bäckhammar - New wood processing plant and electrostatic precipitators

Nordic Paper is investing SEK 850 million in its paper and pulp mill in Bäckhammar. The investment is in full swing and mainly includes a new wood processing plant and electrostatic precipitators. Bäckhammar currently has a capacity of 230,000 tonnes of kraft paper, largely aimed at food packaging. The project includes a bark press, bark drum, wood chipper and wood chip conveyors.

SB 5nov24 8Nordic Paper Bäckhammar: Nordic Paper invests SEK 850 million in its paper and pulp mill in Bäckhammar.

 

Stora Enso Skoghall – Another 100,000 tonnes of cardboard

The investment of EUR 97 million was completed during the second half of 2023. As a result of the investment, the annual production of board in Skoghall increases by approximately 100,000 tonnes to a total capacity of over 900,000 tonnes. The main products in Skoghall are liquid board and packaging board.

SB 5nov24 9Stora Enso Skoghall: Stora Enso has invested EUR 97 million in an expansion of board production at the Skoghall mill.

 

Metsä Tissue Mariestad - Doubled tissue capacity

Metsä Tissue is investing SEK 4.2 billion in the expansion and modernization of their Mariestad mill. When the expansion is complete, the capacity will double to 145,000 tonnes. When the new tissue line goes into operation in 2025 it will be the first new one in thirteen years in Sweden. In addition to the new tissue machine, the investment also includes a new conversion department with three conversion lines and a new fully automated high warehouse for finished products.

SB 5nov24 10In Mariestad, Metsä Tissue doubles its capacity.

 

Holmen Braviken - Kraftliner and fluting made of TMP

Holmen Paper & Board is investing SEK 450 million in its paper machine PM52 at its mill in Braviken. They want to meet the market's need for lighter corrugated packaging with low surface weight kraftliner and fluting based on TMP pulp. When the investment is completed, PM52 will have a unique product mix consisting of book paper, kraftliner and fluting of TMP pulp. It is unique and the first time anyone is launching kraftliner and fluting based on TMP pulp.

SB 5nov24 11 Holmen Braviken: SEK 450 million is invested in rebuilding PM52 to produce book paper, kraft liner and fluting of TMP pulp.

 

Södra Mönsterås - The world's largest producer of kraft lignin

Södra invests in Mönsterås mill to become a world leader in production of sulphate lignin. It will be the first commercial factory in Sweden and the largest producer in the world of kraft lignin. The total investment is over SEK 2 billion and is expected to be operational in 2027. Mönsterås has an annual capacity of 750,000 tonnes of bleached softwood and hardwood pulps. The investment will be the largest investment in Mönsterås since the 1990s. Stora Enso and UPM have already signed agreements on lignin deliveries.

SB 5nov24 12Södra Mönsterås will become the world's largest producer of kraft lignin from 2027.

 

Stora Enso Skene - Investment in PulPac's technology for fibre-moulded products

In its corrugated board factory in Skene, Stora Enso has invested in PulPac's technology to produce dry fibre moulded products such as lids for cups as a replacement for plastic lids.

SB 5nov24 13Cup lids become an important new product for Stora Enso Skene. Photo: PulPac.

 

Sweden Timber Group – A new addition to the Swedish pulp and paper industry

Two years ago, hardly anyone had heard of Sweden Timber within the Swedish paper and pulp industry as their business then consisted of production and sales of sawn and planed wooden products. Last year, Sweden Timber saw development opportunities in Hylte and first bought Stora Enso's newsprint mill with two machines and soon after Stora Enso's biocomposite operations in the same industrial area. In mid-October this year, Aspa pulp mill was bought from Ahlstrom. In Aspa, bleached and unbleached softwood kraft pulps are produced with a capacity of 200,000 tonnes.

SB 5nov24 14Aspa Bruk now belongs to Sweden Timber. Photo: Ahlstrom.


Sören Back has been working in the Swedish pulp and paper industry since 1976. With an M.Sc. in chemistry with focus on in pulp and paper technology the career spans from production control, product development, sales and marketing to communications, including PR, primarily in managerial positions. Over the years Sören has worked for MoDo Paper, M-real, now Metsä Board, and SP Processum but is now running his own business, SB Kommunikation AB, as freelance writer and communications consultant with customers mainly within the pulp and paper industry.