Norske Skog has decided to convert one machine at its Bruck (Austria) industrial site from newsprint to recycled containerboard production. This is the first major step of the two planned European conversion projects in the group’s strategy of establishing Norske Skog as a leading independent European producer of recycled containerboard. Source: Timberbiz
The conversion at Bruck will introduce 210 000 tonnes of competitive containerboard capacity to meet the growing demand for renewable packaging. The project has received financing commitment from regional banks.
Containerboard production will be based 100% on recycled fibre and will use steam from a new waste-to-energy plant, making Bruck a cost leading and green energy producer.
“This investment decision represents the coming of a new era for Norske Skog and is a major step to become a leading independent European producer of high-quality, renewable and environmentally produced containerboard. The conversion project illustrates the inherent potential of our industrial sites and will strengthen Norske Skog’s asset base and cash flow generation for decades ahead,” Norske Skog’s CEO Sven Ombudstvedt said.
Norske Skog plans to introduce 765 000 tons of recycled containerboard capacity in Europe by investing approximately EUR 350 million to convert Bruck PM3 and Golbey PM1 (France).
The final investment decision to convert Bruck PM3 was taken on 22 April, and a similar decision for Golbey PM1 is expected in the second quarter of 2021.
Norske Skog will invest approximately EUR 100 million in the conversion of BruckPM3.
Recycled containerboard production at Bruck PM3 will start in the fourth quarter of 2022 following a three-month production stand-still. Full production utilisation of 210 000 tonnes of testliner and fluting is expected in the second half of 2025.
The waste-to-energy plant starting up at the Bruck industrial site in the first half of 2022, will supply cost efficient and sustainable steam for the containerboard production.