Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Billerud secures SEK 1.3 billion EIB loan for mill upgrades

EditorRachael Rajan
Published 11/28/2023, 05:12 AM
© Reuters.

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.