Smurfit Kappa to Invest in Townsend Hook Paper Mill

Smurfit Kappa has announced a three-year £98 million (US$154 million) investment project for its recycled paperboard mill in Townsend Hook, Kent, U.K. The installation and commissioning of a custom designed, 5-meter, lightweight recycled container board machine is due to be completed and operational by the end of 2014. According to a release, the investment will secure the company with enough supply of paper for all of Smurfit Kappa’s packaging operations in the U.K. and Ireland.

Smurfit Kappa says the new machine will produce lightweight corrugated papers, and will be used internally by Smurfit Kappa’s integrated plants to meeting market requirements for high efficiency and sustainable, recycled papermaking. The cost associated with the project will be phased in over three years. The company notes that the outlay represents one of the largest investments by an established U.K. paper manufacturer and is a significant sign of Smurfit Kappa’s commitment to its customers.

The equipment will replace two existing container board machines and will increase Townsend Hook’s annual capacity of FSC certified, recycled paper from 240,000 metric tons to 260,000 metric tons.

Chris Allen, CEO of Smurfit Kappa Paper UK, says, “This investment in the current financial climate shows Smurfit Kappa’s commitment to the U.K., Ireland and Pan-European customers of our corrugated and paper divisions. The design of the new machine features state-of-the-art technology that will produce a superior lightweight paper, enhancing our position and confirming us as a leading player in the U.K. and Ireland.

Clive Bowers, CEO of Smurfit Kappa Corrugated UK, adds, “At a time of considerable change in the U.K. and European packaging markets, it is vitally important for our customers that continuity, innovation and quality of supply is maintained at all times. This major investment in our infrastructure underlines our desire to provide our customers with unparalleled advantage over their competitors, ensuring that Smurfit Kappa is always seen as leading our industry, with bold and decisive business policies for the long-term.”