Speciality paper company Nordic Paper has sanctioned investments of up to Skr450m ($46m) aimed at enhancing the water management system of its Bäckhammar mill in Sweden.
The Bäckhammar facility specialises in the production of various grades of unbleached kraft papers, which are predominantly used in packaging applications.
The paper products from the mill such as flour sacks, shopping bags, and bread wrappers serve markets primarily within Europe but are also distributed globally.
At present, the Bäckhammar mill’s water supply is drawn from Lake Vänern through an existing pipeline. The treated wastewater is then released back into the lake via the Visman stream.
The newly approved investments will include the construction of an additional 12km pipeline to transport treated effluent directly back to Lake Vänern. This will facilitate the disconnection of the mill from the Visman stream, aiding in its ecological restoration.
Nordic Paper CEO Anita Sjölander said: “With the investments approved today we create opportunities for the future. The Bäckhammar mill is already today an efficient mill with a well-operating effluent treatment plant.
“With the investments decided today we will disconnect from the Visman stream and thereby support its return to natural conditions.”
These investments, scheduled between 2025 and 2027, are essential for a new permit that would allow the mill to boost its production capacity beyond current limits.
The updated production permit would pave the way for a gradual increase in output at the Bäckhammar mill, with up to 20% more pulp and 10% additional kraft paper compared to currently authorised levels.
In January this year, Nordic Paper secured a new financing agreement following a change in its ownership control.
