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Billerud secures SEK 1.3 billion EIB loan for mill upgrades

EditorRachael Rajan
Published 11/28/2023, 05:12 AM
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SWEDEN - Billerud, a leader in the paper and packaging industry, has secured a SEK 1.3 billion loan from the European Investment Bank (EIB) today. The investment will fund significant enhancements at their Frövi bioproduct mill, including the replacement of a recovery boiler to boost energy efficiency and meet stringent environmental standards.

The move is a strategic one for the Swedish company, which employs around 6,100 people across more than 13 countries. The modernization of the Frövi mill is expected to not only stabilize pulp production but also enable the production of valuable by-products like tall oil and turpentine. Additionally, the mill will generate renewable energy that will be sold locally, contributing to the region's energy sustainability.

A highlight of Billerud's upgrade is the new recovery boiler, which is central to the company's sustainability strategy. This strategy aligns with consumer trends that favor sustainable fiber-based alternatives over fossil-based plastics. By focusing on recyclable food and beverage packaging, Billerud aims to reduce food waste and methane emissions through improved shelf life extension.

The loan agreement, signed under the stewardship of EIB Vice-President Thomas Östros and Billerud's Acting President and CEO Ivar Vatne, underscores the shared commitment to environmental progress. The project resonates with EIB's Climate Bank Roadmap and supports the European Green Deal's climate objectives. It also adheres to the EU bioeconomy strategies and contributes to the EU zero pollution action plan.

An innovative aspect of the Frövi mill's upgrade is the greenhouse project, which will utilize residual heat from the mill. This project demonstrates Billerud's holistic approach to sustainability, as the heat will be used for neighboring vegetable cultivation, thus reinforcing the company's competitive edge in the market.

The modernized facility is not only a step forward for Billerud but also for Sweden's commitment to energy conservation and sustainable industrial practices. The investment in Frövi's mill upgrades is poised to ensure that Billerud remains at the forefront of environmentally responsible production in the paper and packaging sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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