Norwegian pulp and paper company Norske Skog has commenced recycled containerboard production at its Golbey mill in France after an investment of approximately €400m ($453.1m).
The new containerboard machine will increase the company’s capacity by 550,000 tonnes (t), raising the group’s total capacity to 760,000t.
The machine will begin delivering containerboard to customers during the second quarter (Q2) of 2025. The mill is projected to achieve a capacity utilisation of 50% to 60% by the end of 2025 and aims for full utilisation of 95% in the first half (H1) of 2027.
The production at Golbey will be entirely based on recycled paper, aligning with sustainability goals.
Besides the containerboard production, the mill will also have a capacity of 330,000t of newsprint annually.
This expansion will reportedly position Golbey as one of the most significant facilities in the European paper and packaging industry.
Norske Skog CEO Geir Drangsland said: “The start-up of the world-class containerboard machine at Golbey is a significant milestone for Norske Skog and for everyone working at the Golbey mill. Although the project has been challenging, we want to thank everyone involved and look forward to delivering volumes to our customers.
“The containerboard business will become an important and strong contributor to Norske Skog’s operations going forward. At the same time, Norske Skog will remain a reliable supplier of high-quality publication paper products.”
The mill’s operations will support the sustainable development of the surrounding region by recycling over one million tonnes of wastepaper collected locally.
The Golbey mill will also extend its collaboration with Green Valley Energie.
This partnership will allow the mill to supply waste material to Green Valley Energie for the production of green and cost-effective energy, which will be utilised in Golbey’s production processes and sold externally. This initiative will enhance the mill’s cost-efficiency and environmental footprint.
Further benefits of the Golbey mill’s expansion include the creation of long-term employment opportunities and the stimulation of industrial activity in the region.
At full capacity, the mill is expected to generate approximately Nkr5bn in annual revenue by 2027-28, assuming current prices for packaging and publication paper remain constant.
In September 2024, Norske Skog entered into a green loan agreement with DNB Bank, securing Nkr500m.
