BillerudKorsnäs announced that its expects higher investment costs despite continued strong market development for the products from the new board machine.
Updated estimates show that the investment costs for BillerudKorsnäs' new board machine in Gruvön may increase by approximately 20 percent compared to previously announced investment cost of a total of SEK 5.7 billion.
The increase of the investment is mainly due to higher costs for the construction work. The production on the new machine is still expected to start during the first quarter of 2019.
"The cost increase is of course not good, and we have worked very hard throughout the project to keep the budget for the project. Unfortunately, we have had a difficult development on the construction side, which will lead to an increase of the investment. We are still seeing a strong development in the liquid packaging segment and other packaging materials that will be manufactured on the machine. We are convinced that we will be perfectly positioned to satisfy global demand in this market with this investment”, says Christer Simrén, BillerudKorsnäs, Senior Vice President and COO.