Metsä Board commits US$64M to revitalize Simpele Mill in Finland

FINLAND – Metsä Board, the Finnish packaging company, is advancing with a €60 million (US$64m) investment to upgrade its Simpele folding boxboard mill, targeting completion in the second half of 2025.

The upgrade includes advancements to the pre-drying section and the installation of a state-of-the-art coating section, which aims to enhance product quality, boost production efficiency, and reduce the mill’s carbon footprint.

This modernization is part of a broader investment program for the Simpele mill. Future plans include improvements to mechanical pulp production, the paperboard finishing area, and a new power plant, though these decisions are yet to be finalized.

In June, the company announced plans to install a new folding boxboard machine by late 2025, increasing the mill’s annual output by approximately 10,000 tonnes from its current 300,000 tonnes.

The upgrades will enhance the print quality and visual uniformity of MetsäBoard Classic FBB while advancing the mill’s shift toward fossil-free paperboard production.

Commitment to sustainability and efficiency

Markku Leskelä, Metsä Board’s Senior Vice President for Development, highlighted the project’s alignment with the company’s sustainability goals, “This project marks an important milestone in our shift toward fossil-free paperboard production at the Simpele mill and aligns with Metsä Board’s goal of achieving fossil-free production across all mills by the end of 2030.

“The upgrade will further solidify our position in the food and pharmaceutical sectors, providing customers with products of higher quality and a reduced carbon footprint.”

The modernization project, announced in April, remains on track. Most technology purchases were finalized by June, and detailed planning with equipment suppliers began. The building permit was secured earlier this year, with construction at the mill underway.

Key work, including installing new sections, will take place during a planned maintenance shutdown in September 2025, ensuring minimal disruption to operations.

Metsä Board collaborates with customers to maintain uninterrupted service and product availability throughout modernization. The upgraded mill is expected to begin operations in Q4 2025.

Workforce adjustments amid modernization

In a separate development, Metsä Board has initiated discussions on potential temporary layoffs at its Finnish mills, including Simpele, in response to anticipated low delivery volumes in 2025.

These negotiations, affecting approximately 1,100 employees, will explore phased layoffs lasting no more than 90 days.

The discussions are expected to begin in mid-November and conclude within two weeks. Next year, specific details about the timing and scope of the layoffs will be determined.

This follows the Metsä Board’s earlier announcement in May about possible temporary workforce adjustments.

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