Stora Enso is investing Euro 12 million to build a new production line that will manufacture biocomposite granules at Hylte Mill in Sweden, as the company says in the press release received by Lesprom Network.
Biocomposite granules enable the use of renewable wood to substitute a large portion of the fossil-based materials in products typically produced in plastics. Production is scheduled to begin during the 1Q 2018. The annual capacity will be approximately 15,000 tonnes per year. The ramp-up of the new production line and a new type of manufacturing is expected to take 2–3 years.
“This investment is part of Stora Enso’s transformation into a renewable materials company and demonstrates our ability to provide an innovative and more sustainable alternative to plastics. With this new biocomposite production line, we are well positioned to capture growth opportunities in climate and environmental friendly materials,” says Jari Suominen, EVP, Head of Stora Enso’s Wood Products division.
Once finalised, the investment will increase Stora Enso’s Wood Products sales by approximately Euro 25 million and will exceed the division's profitability target, operational return on operating capital (ROOC) of 18%. The biocomposite business will belong to the Wood Products division.
