Metsä Board completes US$70M Simpele Mill upgrade, reaches 98% fossil-free energy use

FINLAND – Metsä Board, a leading European producer of premium fresh fibre paperboards, has completed a €60 million (US$69.9 million) modernization of its Simpele folding boxboard mill, significantly advancing its sustainability goals and product performance.

The extensive project raised the mill’s fossil-free energy usage from 89% to 98%, bringing the company closer to its 2030 target of fully fossil-free production.

The investment also introduced a next-generation version of MetsäBoard Classic FBB, designed to deliver improved printability and visual consistency for premium food, beverage, and healthcare packaging.

The modernization involved a full rebuild of the coating section, an expanded coating colour kitchen, and installation of a new pallet packaging line.

In total, the project engaged more than 430 professionals, highlighting Metsä Board’s continued investment in Finland’s high-tech packaging sector.

CEO Esa Kaikkonen described the upgrade as a “key step in ensuring the company’s competitiveness and sustainability leadership,” adding that the improvements “enable brand owners to meet stricter safety and sustainability standards while maintaining material efficiency and visual appeal.”

The newly installed curtain coating technology enhances print sharpness and surface uniformity, qualities increasingly valued by global brands aiming for both sustainability and shelf impact. Customer deliveries of the upgraded folding boxboard have already commenced.

However, the investment comes amid a challenging economic climate for the broader Metsä Group.

The company recently initiated statutory negotiations across its operations as part of a US$330 million cost-savings and profit-improvement program announced earlier this year.

According to Metsä Group President and CEO Jussi Vanhanen, profitability has been pressured by weak global trade, unfavorable exchange rates, and rising raw material costs.

“Increased uncertainties in global trade have reduced demand for our products, while changes in exchange rates and higher costs have eroded our profitability,” he said.

The efficiency program targets reductions in procurement and logistics costs, alongside restructuring of wood supply chain operations.

The company expects the plan to result in approximately 800 permanent job losses worldwide, including around 540 in Finland.

Despite these headwinds, Metsä Board’s ongoing investments in low-carbon production reinforce its strategic commitment to sustainable, high-quality packaging materials and a resilient, circular bioeconomy.

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