Nordic Paper unveils US$46M upgrade plan for Bäckhammar Mill to boost capacity and sustainability

SWEDEN – Nordic Paper has announced a strategic investment of up to SEK 450 million (approximately US$46 million) to modernize the water management infrastructure at its Bäckhammar mill in Sweden.

The move is a key step in both enhancing sustainability and preparing for future production expansion.

The Bäckhammar mill specializes in producing various grades of unbleached kraft paper used in packaging applications such as flour sacks, shopping bags, and bread wrappers. While the mill primarily serves European markets, its products are also distributed globally.

Currently, the facility sources water from Lake Vänern and discharges treated wastewater through the Visman stream. As part of the upgrade, a new 12km pipeline will be constructed to return treated effluent directly back to Lake Vänern.

This change will allow the mill to disconnect from the Visman stream, supporting its ecological restoration.

“With the investments approved today, we create opportunities for the future,” said Nordic Paper CEO Anita Sjölander.

“The Bäckhammar mill is already an efficient operation with a well-functioning effluent treatment plant. This investment enables us to disconnect from the Visman stream and contribute to its return to natural conditions.”

The upgrades, scheduled to take place between 2025 and 2027, are essential for obtaining a new environmental permit that would allow for increased production capacity.

Once approved, the mill could ramp up pulp output by up to 20% and kraft paper production by an additional 10%, compared to current permitted levels.

This development comes shortly after Nordic Paper secured new financing following a change in ownership.

In January 2025, the company finalized a financing agreement that includes a SEK 1.4 billion (US$127.4 million) term loan and a €65 million (US$73.74m) revolving credit facility.

The terms mirror those of previous financing arrangements and are valid until 2026, without materially affecting the company’s net results or leverage.

The financing followed a public offer made by Strategic Value Partners through Coniferous Bidco in October 2024 to acquire all shares in Nordic Paper at SEK 50 (US$5.18) per share.

The offer became unconditional in December, with the acceptance period extended twice before concluding on 8 January 2025.

By the end of the final period, Coniferous Bidco had acquired approximately 85.67% of the company’s shares and voting rights.

With environmental upgrades, expanded capacity, and a new ownership structure in place, Nordic Paper is positioning itself for sustainable long-term growth in the global specialty paper market.

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