Billerud Announced Huge Investment in Escanaba and Quinnesec Paper Mills

SEATTLE (Scrap Monster): Billerud, a Swedish pulp and paper manufacturer, said that it will invest around $127 million in renovations to its production facilities in the United States. The majority of the anticipated investment will be directed toward the graphic paper mill in Escanaba, Michigan, and the pulp and paper mill in Quinnesec, Michigan.

As part of its initiative to improve capacity utilization, the company underlined its goal of gradually transitioning to packaging materials. The proposed investments in Michigan mills are intended to facilitate the company's transition to paperboard manufacture, capitalizing on the growing demand for fiber-based packaging.

The investment, which will be carried out in phases, includes efforts to modernize the Escanaba mill's woodyard and replace its present debarking drums. Upgrades to Escanaba's wood yard will begin immediately, but the majority of the work will be completed in the second half of next year. The upgrades will coincide with regular maintenance outages to minimize production disruptions.

In May of this year, Billerud canceled its prior proposal to invest more than $1 billion in turning the Escanaba mill into a carton board production facility, citing difficult economic conditions and return on investment evaluations.

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