Smurfit Kappa has announced an investment of €35 million in its Hoya paper mill and board manufacturing plant in northwest Germany.
The investment programme began in 2011, and this most recent phase will see production output increase by 70 kilotonnes to 450 kilotonnes per annum.
Hoya Manufacturing Plant
The investment will result in an overhaul of the complete press section of the PM2 paper machine, replaced with new state-of-the-art technology, increasing the overall efficiency of the manufacturing process.
Production speed will increase to 1,250 metres/minute, and the group hopes the machine will further strengthen the industrial efficiency of Smurfit Kappa Group's containerboard system.
It is expected to be operational from the first quarter of 2023, the company added.
Earlier in March, the packaging giant announced plans to invest over €25 million at its Pruszkow 'mega-plant' in central Poland.
'Sustained Investment' At Hoya
Saverio Mayer, CEO of Smurfit Kappa Europe, said, "This investment will be the final and significant phase of a programme of sustained investment at our Hoya Mill, which commenced over a decade ago.
"Today's announcement underlines Smurfit Kappa's continued commitment to development in leading-edge technology and our operations in Germany."
The investment will reduce CO2 emissions by 5,500 tonnes per annum, the company added.
Also commenting on the investment, Andreas Noss, managing director of the Smurfit Kappa Hoya Mill, said, "This investment will make the PM2 a state-of-the-art lightweight paper machine that enables us to meet the changing needs of our customers.
"It will increase production speed and produce lightweight paper in the most efficient and sustainable way possible."
The Hoya site in Germany has been in operation for over 50 years and is a major regional employer, with over 300 people working at the facility.