Holmen to spend 300M Swedish kronor on energy revamp at its magazine, book paper mill in Hallsta, Sweden, will improve mill's competitiveness, prepare for transitioning to two machines with the closure of PM No. 3 in H2 2013

STOCKHOLM , February 7, 2013 (press release) – Holmen Paper is investing SEK 200 million in restructuring the energy supply at Hallsta Paper Mill. This is the single largest investment in the mill since the PM 11 paper machine was built in 2002.

The planned measures strengthen the mill’s competitiveness and form part of the transition to a two-machine mill.

“We’re providing Hallsta Paper Mill with completely new opportunities for the future,” says Henrik Sjölund, head of Holmen Paper. “By improving heat recovery from paper machines and pulp manufacture, we’ll be able to run the mill in a more energy-efficient manner.”

The restructuring also involves closing the two old solid fuel boilers, which will be possible when, as previously announced, the PM 3 paper machine is closed during the second half of 2013. The investment package also includes more modern and efficient monitoring of the process.

“These investments will make Hallsta Paper Mill a modern mill with two paper machines that occupy leading positions in their niches: magazine and book paper. The mill will also be a significant supplier of biofuel as we will have a surplus of bark that was previously burned in the solid fuel boilers,” says Henrik Sjölund.

The investment will have been made in full by summer 2014.

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