Packaging manufacturer SCA will double the amount of recycled fibre it uses at its Obbola kraftliner mill in northern Sweden with the help of a €300 million (£254 million) loan from the European Investment Bank (EIB).
The financing will support the upgrade of the mill for enhanced production of recyclable and renewable packaging with a process known as papermaking 4.0.
Machinery will be digitally integrated and will be more efficient.
Both recycled fibre and sustainable wood sources will be used in the production of kraftliner.
EIB vice president Thomas Östros said: “Apart from making this production facility more energy efficient, the project also has a good circular economy angle – it will double the utilisation of recycled fibre for its manufacturing process.
“Especially in today’s economy, packaging for products and deliveries plays an increasingly important role, meaning that the ability to use recycled fibre has quite an impact on the use of natural resources.”
SCA president and chief executive Ulf Larsson added: “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.”