Investments bolster Billerud mills in Escanaba, Quinnesec

What's happening: Billerud, an international specialty papermaking company based in Sweden, announced a $125 million investment in its Upper Peninsula facilities last week. The move will help the facilities in Escanaba and Quinnesec modernize heavy and industry-specific equipment to enact new technology and industry practices at the mills. The vast majority of the money (85.7 percent) will be spent at the Escanaba facility, which still hopes to integrate new paper items into the mill’s production capabilities. 

Investing in the U.P.: Of the roughly $228.75 million spent in investments to American facilities owned by Billerud, more than half will be used to upgrade Upper Peninsula mills. Specifically, the money will fund safety upgrades, efficiency improvements that will help out workers and workflow equally. Billerud reported that the upgrades fit in with the company’s new approach to financial goals, which focus on capital efficiency, cash flow and profitability. 

What they're saying: “We have an exciting plan in North America going forward, benefitting on sizable market opportunities, coupled with our attractive Midwest location, competitive assets and excellent paperboard capabilities in Billerud. The evolution investments will be carried out in phases and in alignment with the mills’ scheduled maintenance shutdowns to minimize production disruptions. The upgrade of the woodyard in Escanaba is set to begin immediately, with the bulk of the work scheduled for the second half of 2025,” said Ivar Vatne, president and CEO of Billerud.

What's next: With a plan in place, Billerud will focus on timeliness of the upgrades, allowing the company to reduce workforce disruptions while installing the upgrades. Billerud also addressed the commitment to the Wisconsin Rapids Converting Facility, which did not receive any upgrades during this fiscalcycle, but produces a number of products not featured in the Quinnesec or Escanaba facilities.