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Korsns unveils multimillion euro spend at Gvle mill

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Korsns has invested EUR62m in modernising its Gvle mill in Sweden with the hope of substantially reducing energy costs.

The Swedish manufacturer of virgin fibre-based packaging material has ordered a new evaporation plant and two recovery boiler upgrades from Metso at its Gävle mill in Sweden.

The evaporation plant will have the capacity to evaporate 750 tonnes of water an hour and will replace three existing evaporating units at the site.

Two existing recovery boilers will also be upgraded to deal with the higher dry solid content provided by the new evaporation plant.

All work is expected to be completed by the end of 2010. In total, the investment is expected to save the company SEK 130m annually.

Improved energy efficiency is seen as a key element of Korsnäs’s profit enhancement programme, which aims to return an operating margin above 10% when fully implemented.

However, the evaporation plant is not part of the profit enhancement programme.

“The programme now launched is a prerequisite for further development of the company and for long-term competitiveness,” said Korsnäs chief executive Christer Simrén.

Korsnäs’s profit enhancement scheme includes production improvements, reduced costs for raw materials and other supplies, improved inventory control for raw materials and finished goods and a review of the organisation and staffing.

 

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