Billerud to invest SEK 1.2 billion in its Escanaba mill

The Escanaba mill. Photo: Billerud AB/Wikimedia Commons

Billerud is committed to maintain its leading positions in the North American markets for graphic paper and specialty label paper, as well as to gradually evolve towards packaging materials to optimize capacity utilization. Billerud’s Board of Directors has today decided on a strategic investment program of approximately SEK 1.2 billion in the Escanaba mill and SEK 0.2 billion in the Quinnesec mill. These investments will enable the transition towards paperboard production.

“We have an exciting plan in North America going forward, benefitting on sizable market opportunities, coupled with our attractive Midwest location, competitive assets and excellent paperboard capabilities in Billerud. The evolution investments will be carried out in phases and in alignment with the mills’ scheduled maintenance shutdowns to minimize production disruptions. The upgrade of the woodyard in Escanaba is set to begin immediately, with the bulk of the work scheduled for the second half of 2025,” says Ivar Vatne, President and CEO of Billerud.

Billerud’s total investments in 2024 will amount to around SEK 2.5 billion. In 2025, the total investments are estimated to amount to around SEK 3.4 billion, whereof SEK 1.2 billion is strategic capex. The annual mill maintenance investments (so called “base capex”) is estimated to amount to SEK 2.2 billion in the years 2025-2027.