As previously announced, Michigan State legislatures have approved legislation to grant Billerud investment support of up to
USD 200 million
in funding to support Billerud's investment plans. Today,
Michigan
Governor
Gretchen Whitmer
signed the legislation, approving the
Michigan Economic Development Corporation's
(MEDC) appropriation of the funds.
The transformation of the
Escanaba Mill
is planned to be the cornerstone of Billerud's expansion into
North America
, one of the largest and growing markets in primary fiber premium cartonboard. The project is expected to support hundreds of high paying jobs and require a significant number of contractors during the construction period.
This funding follows additional incentives recently approved by the State of Michigan Administrative Board, including approval of the
Forest Products Processing Renaissance Zone
. The zone exempts Billerud from paying almost all state and local property taxes at the
Escanaba Mill
.
The maximum support of
USD 200 million
assumes investments of approximately
USD 1 billion
. The final amount of the funding will be relative to the company's actual investment and is subject to execution of the necessary agreements between the
Michigan Strategic Fund
(MSF) and
Billerud U.S. Production Holdings LLC
.
"Billerud's transformational investment in their
Escanaba Mill
underscores the strength of our advanced manufacturing workforce and secures a critical win as we continue working to promote long-term, sustainable investments across the state," said
Quentin L. Messer
, Jr., CEO of the MEDC and President and Chair of the MSF Board. "Through the steadfast support of our bipartisan legislative partners, the
Whitmer-Gilchrist Administration
, the men and women of organized labor, and our many local and regional partners across the
Upper Peninsula
, we are continuing to demonstrate that
Michigan
, on both peninsulas, is a place for pure opportunity."
"We thank
Governor Whitmer
, the legislature, and the MEDC for their investment support for Billerud's planned transformation of our
Escanaba Mill
into a world-class paperboard production facility," said
Billerud Americas Corporation
President
Rob Kreizenbeck
. "We look forward to continuing to collaborate with our partners in government to facilitate our investments for the benefit of the
Escanaba
community,
Upper Peninsula
and the
State of Michigan
."
A pre-feasibility study about Billerud's planned conversion of the
Escanaba Mill
to paperboard production is ongoing and planned to be completed in the first half of 2023, after which the company's Board of Directors can make an investment decision.
"This is truly a historic opportunity for the
Upper Peninsula
," said
Marty Fittante
, CEO of InvestUP. "We would like to express our appreciation to Billerud for its consideration in making this generational investment in
Escanaba
. The mill when transformed will not only benefit the region's economy and the environment with its best-in-class sustainability standards but provide notice that the U.P. can and will compete in attracting advanced technology opportunities."
For further information, please contact:
Lena Schattauer
, Director Investor Relations, +46 8 553 335 10, lena.schattauer@billerud.com
Louise Wileen Bjarke
, Head of Press, +4672-210 35 14, louise.wileenbjarke@billerud.com
The information was submitted for publication, through the agency of the contact person set out above, at 20.40 CET on
31 January 2023
.
Billerud provides paper and packaging materials that challenge conventional packaging for a sustainable future. We are a world leading company in superior paper and packaging materials made from virgin fibres; passionately committed to sustainability, quality and customer value. The company has nine production units in
Sweden, USA
, and
Finland
with around 5 800 employees in over 13 countries and customers in over 100 countries. Billerud is listed on Nasdaq Stockholm.
www.billerud.com
https://news.cision.com/billerud-ab/r/michigan-governor-signs-legislation-granting-billerud-investment-support-for-escanaba-mill-transform,c3706709
https://mb.cision.com/Main/66/3706709/1818476.pdf
