Arctic Paper will invest SEK 285 million in the expansion and modernization of a biofuel plant at its Grycksbo plant, the company announced. It also conducts negotiations with banks on financing investments.
“Thanks to the biofuel installation, Arctic Paper Grycksbo has a low carbon footprint and a competitive energy mix. We are now taking the next step as part of our long-term strategic plan to diversify into green energy. The investment will save SEK 50 million per year in energy costs for the paper mill, while providing an additional revenue stream as the sale of wood pellets – a circular business: pellets are made from sawmill residues – is expected to generate revenues of around SEK 100 million annually,” said President Michał Jarczyński, quoted in the release.
The main biofuels used will be sawdust and wood chips, but other biofuels can also be used in the modernized installation. The investment will be financed with bank loans and equity and is expected to be completed in the first half of 2025.
The company also announced that it had entered into negotiations on an agreement amending the term and revolving loan agreement with a consortium of banks composed of: Bank Polska Kasa Opieki, BNP Paribas Bank Polska and Santander Bank Polska.
Under the amending agreement, the lenders will provide the company with an additional loan to finance the construction of a biomass drying and pellet production facility, which will be located in Grycksbo on a property owned by Arctic Paper Grycksbo AB, reads the report.
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The Company stipulates that the indicated parameters of the additional loan are preliminary and may be changed through negotiations with banks. It also informs that negotiations with banks regarding an additional loan may, but do not have to end with the conclusion of an amending agreement.
Arctic Paper also announced the appointment with effect on August 14 this year. Tom Fabian Langenskiöld as a member of the company’s management board.
Arctic Paper is the second largest, in terms of production volume, European producer of bulky book paper and one of the leading producers of high-quality graphic paper in Europe. The company has been listed on the Warsaw Stock Exchange since 2009; is included in the sWIG80 index. Its consolidated sales revenues reached PLN 4.89 billion in 2022.