Munksjö’s Arches facility, France, is producing specialty papers for several product applications. To secure the leading position within abrasive backings and due to increased customer demand, a paper machine at the production facility will be rebuilt. After the rebuild, the paper machine will continue to be able to produce both decor and abrasive backings, as the company says in the press release received by Lesprom Network.
The rebuilt will also enable additional capacity within latex impregnated abrasive backings and hence allow for new product applications and a more efficient production.
The rebuilt is planned to take place in two steps during the seasonal shutdowns in the summer and at the end of 2017.
The capital expenditure related to the rebuilt is estimated to a total of approximately Euro 14 million. The clear majority of the related cash flow effect is expected to occur during 2017, starting from the 1Q. The investment decision does not change the outlook given for Munksjö’s capital expenditure for fixed assets in 2016, which remains unchanged.
The operations at the Arches facility include production, sales and marketing of mainly decor paper, abrasive backings, and fine art paper.
