Steady growth is expected to continue in all markets driven by favourable economic conditions and strong increase in specialty paper demand for labelling, packaging and e-commerce as well as in medical and hygiene applications.
To strengthen its position UPM will rebuild paper machine 2 at its Nordland mill in Dörpen, Germany and convert it from fine paper to glassine paper production. The machine will be equipped with new finishing equipment and starts producing glassine paper as of Q4 2019. The planned capacity after the rebuild will be 110,000 tonnes per year.
The total investment in Nordland is EUR 116 million. The production of woodfree papers on PM2 in Nordland will continue until Q3 2019 and the machine will be producing both glassine and woodfree paper during the ramp-up phase.
UPM has also decided to further increase the release liner base paper capacity at UPM Changshu mill in China. Since the successful startup of the paper machine 3 in Changshu, UPM has established a strong position in the label paper segment in Asia. By installing a second supercalender on paper machine 3, there will be an additional capacity of more than 40,000 tons of glassine paper a year as of Q1 2020. The total investment in Changshu is EUR 33 million.
“We see strong growth in all our market segments and we are committed to be part of the growth. The planned investments in Nordland and Changshu, along with the earlier announced calender investment at our Jämsänkoski mill, will increase customer confidence in their global growth in release liner applications. The planned installations will also enable increased specialisation of our assets. Thus we can improve our operational efficiency and strengthen supply security,” says Bernd Eikens, Executive Vice President of UPM Specialty Papers.