HELSINKI, April 10, 2018 (Press Release) -Ahlstrom-Munksjö has decided on two investment projects, totaling EUR 27 million, both with attractive financial returns and improved environmental performance and employee safety. This supports Ahlstrom-Munksjö’s strategic ambition to maintain a leading position in selected niches of the global fiber-based solutions market that offer positive growth outlook and are supported by sustainable market drivers.
These projects will not materially impact current year’s capital expenditure plan. The capital expenditure guidance for 2018, published on February 13, 2018, remains unchanged.
As one of the global leaders in electrotechnical paper manufacturing for insulation of high voltage cables and transformers, Ahlstrom-Munksjö plans to increase pulp production capacity and improve environmental performance of the Billingfors pulp line, Sweden. The investment involves rebuilding the recovery boiler and debottlenecking the pulp line. When completed in the third quarter 2019 the plant will meet stricter environmental regulations thanks to improved process combustion, reducing air emissions. The financial benefits include lower maintenance costs, and higher pulp and insulation paper production. The total investment is approximately EUR 23 million and the final investment decisions is conditional on receiving a new environmental permit from the authorities, expected in Q2 2018. Installation work will be made during a scheduled maintenance shutdown in the summer of 2019.
Ahlstrom-Munksjö has also decided to modernize the bailing line at Aspa pulp plant, Sweden. The investment of EUR 4 million will improve safety level at the bailing line, improve production efficiency and give access to a more favorable customer mix. The new line is estimated to start during the first half of 2019. During the modernization production will continue normally.
Both Billingfors and Aspa plants are part of the Industrial Solutions business area, producing a wide range of products and materials often used in manufacturing and production processes, such as abrasive backings, electrotechnical insulation papers, release liners and specialty pulp.
Ahlstrom-Munksjö in brief
Ahlstrom-Munksjö is a global leader in fiber-based materials, supplying innovative and sustainable solutions to customers worldwide. Our offerings include decor paper, filter media, release liners, abrasive backings, nonwovens, electrotechnical paper, glass fiber materials, food packaging and labeling, tape, medical fiber materials and solutions for diagnostics. Combined annual net sales are about EUR 2.2 billion and we employ 6,000 people. The Ahlstrom-Munksjö share is listed on the Nasdaq Helsinki and Stockholm.