Boxboards and linerboards firm Metsä Board is investing in a new folding boxboard machine, BM1, as part of its €170m investment programme.
The new BM1 folding boxboard machine will be installed at Metsä's Husum mill in Sweden by replacing existing PM6 and PM7 paper machines at the facility.
The installation of the machine with 400 000 t/a capacity will be completed by the end of January next year.
This will increase the company's paperboard capacity to over 2 million t/a.
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."
The company is marketing the machine's capacity to the Americas, as well as to food service end-uses such as cups, plates and trays globally.
The board machine will also allow the company to optimise production at its mills in Finland and improve overall availability of high-quality paperboards.
The Husum mill has already undergone several improvements this year to support the company's growth.
Metsä Board is focusing on the production of fresh forest fibre based folding boxboards and linerboards for consumer goods, retail-ready and food service packaging.
In May this year, Metsä Board tested foam forming technology at its Kyro mill in Finland, to produce lightweight paperboards.