EIB provides Euro 300 million loan for SCA"s mill in Obbola, Sweden
The European Investment Bankhas signed a Euro 300 million loan agreement with Svenska Cellulosa Aktiebolaget (SCA) to modernise the Obbola kraftliner mill in Sweden.

EIB provides Euro 300 million loan for SCA's mill in Obbola, Sweden

EIB provides Euro 300 million loan for SCA"s mill in Obbola, Sweden

Photo: EIB

SCA will borrow Euro 300 million from the European Investment Bank (EIB) to modernise and upgrade its kraftliner mill at Obbola, in Sweden. The new equipment to be used by the plant — following a process called papermaking 4.0 — will enable machinery to be digitally integrated. The project is expected to have a positive impact on the local economy.

President and CEO of SCA Ulf Larsson said: “The demand for sustainable packaging is increasing and SCA decided in 2019 to expand the manufacturing capacity at the Obbola mill from 450,000 tonnes to 725,000 tonnes. Through this investment the need for fossil fuels in critical parts of the production process will be eliminated resulting in a significantly lower carbon footprint. As a result of this investment in the world’s most advanced kraftliner facility we will considerably improve the mill’s competitiveness, sustainability footprint and product quality.”

The upgrade and modernisation of the mill will improve the production of recyclable and compostable packaging solutions from recycled fibre and from renewable and sustainable wood sources.

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