The Navigator Company has announced a €30 million investment to convert its PM3 paper machine at the Setúbal industrial complex in Portugal.
This strategic move strengthens Navigator’s role as a leading European producer of low-grammage flexible packaging papers, expanding its gKRAFT™ portfolio and reinforcing its commitment to sustainable, forest-based packaging solutions.
Scheduled for completion in the third quarter of 2026, the upgraded PM3 will offer an annual production capacity of 100,000 tonnes of kraft papers, while retaining the flexibility to manufacture printing and writing papers. The machine will produce paper in the 30 to 90 gsm range, meeting rising global demand for renewable and biodegradable packaging, particularly in food service and non-food applications.
This investment positions Navigator as the fourth largest European producer of low-grammage kraft paper, and the largest in Southern Europe. It significantly enhances the company's competitiveness in the flexible packaging sector at a cost far below that of a comparable greenfield project.
The PM3 machine—a Valmet model installed in 1990—has undergone several upgrades over the years. With this latest conversion, it will become one of Europe’s most advanced machines for sustainable packaging paper production. Navigator’s integrated pulp production and the high yield of Eucalyptus globulus fibre offer a notable advantage, consuming just 2.35 to 2.85 cubic metres of wood per tonne of pulp, compared to 5.0 to 5.5 for traditional pine-based systems.
The resulting kraft paper will exhibit high smoothness, low permeability, and strong printability, making it suitable for coated packaging and demanding visual applications.
The PM3 conversion also supports the ongoing expansion of Navigator’s gKRAFT™ product line, which focuses on replacing fossil-based plastics with recyclable, biodegradable alternatives made from responsibly sourced eucalyptus fibre. Already adopted by more than 300 customers worldwide, gKRAFT™ has gained industry recognition for its performance, print quality, and sustainability profile.
By upgrading PM3, Navigator enhances its capacity to switch between paper grades depending on market conditions, optimising industrial efficiency and reinforcing supply chain flexibility.
The Navigator Company is a leading European producer of uncoated printing and writing paper, tissue, and packaging solutions. Headquartered in Portugal, the company is committed to innovation and sustainability, with operations integrated from forest management to pulp and paper production. Navigator is a global reference in the use of Eucalyptus globulus fibre and exports to more than 130 countries across five continents. The company is actively engaged in the circular bioeconomy and the development of renewable, forest-based alternatives to fossil-based materials.
