Ahlstrom-Munksjö, a Finland-based provider of fiber-based products and solutions, has said that it will invest €21m at its Jacarei plant in Brazil to strengthen coated specialities capabilities.
Planned to be completed in Q3 2019, the investment will expand the capabilities of Ahlstrom-Munksjö in coating and calendering on the paper machine at the site.
The investment will allow the firm to better serve South American customers with broader offerings.
The company said that demand growth for high value-added coated specialty papers has been robust in the region during past years.
Ahlstrom-Munksjö’s coated specialities business is part of the Industrial Solutions business area.
It is engaged in producing products for application in manufacturing and production processes, including abrasive backings, electrotechnical insulation papers, coated label and flexible packaging papers, release liners and speciality pulp.
The additional capacity will enable Ahlstrom-Munksjö to offer improved on-line coated products in self-adhesive and wet glue labelling, flexible packaging and sublimation printing segments.
Ahlstrom-Munksjö Industrial Solutions executive vice-president Daniele Borlatto said: “The investment shows our long-term commitment to the South American market and our ambition to maintain a leading position in coated speciality papers.
“This allows us to better serve our customers, continuing to grow with them by developing sustainable and value-added fibre-based solutions.”
The investment will allow the company to enhance flexibility to deliver a wider range of product trims, and offer additional innovation opportunities in existing and new product areas.
In April this year, the firm reached a deal to acquire US-based specialty paper producer Expera Specialty Solutions from Specialty Papers Holding for around $615m.
Expera is engaged in the production of specialty paper products for the industrial and technical, food packaging and processing, and pressure-sensitive release liner sectors.
With the acquisition, Ahlstrom-Munksjö will have three operating plants in the country, generating revenues of around €200m.
Ahlstrom-Munksjö’s product portfolio includes decor paper, filter media, release liners, abrasive backings, nonwovens, electrotechnical paper, glass fiber materials, food packaging and labeling, tape, medical fiber materials and solutions for diagnostics.