Smurfit Kappa to invest 98m at recycled paper mill

Over the next three years, the corrugated packagingcompany is to spend 98 million on replacing the two existing recycled container board machines at its paper-making facility in Townsend Hook, Kent, with a new custom-made machine.

The 5m machine will be sourced from Italian company Cartiera di Cadidavid and will produce lightweight corrugated papers, for use in Smurfit Kappas plants which manufacture packaging. This will increase Townsend Hooks capacity to produce FSC certified, recycled paper by over 8% from 240,000 per year to 260,000 tonnes.

The cost associated with the project will be phased over 3 years and Smurfit Kappa said it would be within the scope of SKGs stated annual capital expenditure guidance.

Feedstock

Recovered paper and card feedstock for the mill will continue to be provided by Smurfit Kappa Recycling, which is part of the Smurfit Kappa Group and has a network of seven regional recycling centres around the UK. These are located in Birmingham, Blackburn, Glasgow, Nottingham, Kent,Preston and Tamworth. The recycled material issourced from local authorities and the commercial sector. Some new production offcuts are also used.

Together with its SSK mill in Birmingham, Smurfit Kappa said the investment would enable it to offer the ‘widest portfolio of corrugated paper available in the UK.’

Chris Allen, chief executive of Smurfit Kappa Paper UK, said: This investment in the current financial climate shows Smurfit Kappas commitment to the UK, Ireland and Pan-European customers of our Corrugated and Paper divisions.

“The design of the new machine features state-of-the-art technology that will produce a superior lightweight paper, enhancing our position and confirming us as a leading player in the UK and Ireland. Smurfit Kappas two UK mills will now specialise in producing all the recycled brown corrugated case material for its UK and Irish corrugated business, whilst maintaining its presence in the market.

Investment

The investment continues the 150-year history of paper making at Townsend Hook.

Clive Bowers, chief executive of Smurfit Kappa Corrugated UK, said: At a time of considerable change in the UK and European packaging markets, it is vitally important for our customers that continuity, innovation and quality of supply is maintained at all times.

“This major investment in our infrastructure underlines our desire to provide our customers with unparalleled advantage over their competitors, ensuring that Smurfit Kappa is always seen as leading our industry, with bold and decisive business policies for the long-term.