Swedish pulp and paper manufacturer BillerudKorsnäs has teamed up with Norwegian forest owners’ group Viken Skog to explore the possibility of pulp production at the latter’s Follum mill, in Hønefoss.
Both parties plan to initiate a feasibility study about future pulp production at Follum, scheduled to be completed during the first half of 2023.
BillerudKorsnäs And Viken Skog Partnership
BillerudKorsnäs and Viken Skog intend to establish a production line for bleached chemi-thermomechanical pulp (BCTMP) at the facility, with a potential capacity of up to 200 kilotonnes per annum.
The Follum mill already has some of the infrastructure needed to set up the production line, and it is located in an area with a competitive and sustainable wood supply and good connectivity to BillerudKorsnäs’s board mills.
Christoph Michalski, president and CEO of BillerudKorsnäs, commented, “This initiative forms part of BillerudKorsnäs’s strategy for sustainable and profitable growth, and supports our ambition to grow in paperboard. To cover the increasing need for BCTMP for our growing board operations, we want to explore the possibilities of producing this pulp quality in Follum, together with Viken Skog.
“As part of this partnership, the intention is also to enter into a long-term wood supply agreement with Viken Skog. We initially see good prospects for creating an efficient supply chain and competitive access to the raw materials needed to produce the packaging materials of the future.”
BillerudKorsnäs will invest in the range of NOK 600 to NOK 800 million (€61 to €81 million), if the project gets the green light after the feasibility study.
‘A Solid Partner’
Olav Breivik, chairman of the board in Viken Skog, added, “With BillerudKorsnäs, we have found a solid partner who, like us, wants to implement an efficient supply chain and explore sustainable product opportunities provided by the forest raw material.
“The existing infrastructure at Follum provides a promising basis for establishing pulp production with a relatively low investment need. We will, in the feasibility study, also explore the possibilities for producing biogas, and later also solutions for carbon capture at Follum. We are very pleased with the partnership, and we look forward to getting started with the feasibility study.”