In addition to the investment, Stora Enso is expected to hire more than 10 new employees for formed fibre manufacturing in Sweden
Finnish pulp and paper products manufacturer Stora Enso has announced its plans to invest €8m to enhance its manufacturing capacity of formed fibre in Europe.
The company will install new machinery in Hylte, Sweden, which would double its production capacity to meet the growing demand for formed fibre.
In addition to the investment, Stora Enso is also expected to hire more than 10 new employees for the formed fibre manufacturing in Sweden.
The company said that the investment will further strengthen its position as a provider of renewable materials and makes it one of the leading suppliers of formed fibre.
Upon completion of the investment, the Hylte site’s annual formed fibre capacity will be increased from 50 to around 115 million units of product.
Stora Enso senior vice president and formed fibre head Sohrab Kazemahvazi said: “There is a high demand in the market for eco-friendly, circular packaging solutions that replace plastic and other fossil-based materials.
“Our formed fibre offering can help brand owners meet their sustainability targets, while responding to consumers’ demands for a cleaner future. Through our investment and the capacity increase, we further improve our position in this growing market.”
Formed fibre is a renewable, recyclable, and biodegradable material, which can be used to replace plastics in a wide range of applications.
Stora Enso has been providing formed fibre products that are currently used in food packaging such as bowls, trays, and lids.
PureFiber by Stora Enso is a range of formed fibre products that contain no per- and polyfluoroalkyl substances (PFAS).
The range is said to have up to 75% reduced CO2 footprint compared to alternative packaging materials such as plastic or bagasse.
According to the company, making of formed fibre products require various chemical pulps and chemi-thermomechanical pulp (CTMP), pressed into the desired shape.
Stora Enso will prepare the raw material, the pulp made from sustainably sourced wood, at its mills in Sweden and Finland and do converting at its Hylte site.
The company aims to provide 100% regenerative products and solutions by 2050.
In December last year, Stora Enso announced a €23m investment to increase the flexibility and capacity at its Varkaus containerboard mill in Finland.
The investment is said to help increase the company’s flexibility of the product range, in addition to expanding the site’s total capacity by up to 10%.