Ahlstrom-Munksjö will invest 21 million euro in its Coated Specialties business to improve capabilities and flexibility at its Jacarei plant in Brazil and better serve customers in South America with a broader offering.

The project is expected to be completed in the third quarter of 2019, and will expand the site’s capabilities of coating and calendering on the paper machine. It will allow Ahlstrom-Munksjö to offer more efficient, high-quality on-line coated products to its customer in the areas of self-adhesive and wet glue labeling, flexible packaging and sublimation printing. Demand growth for high value-added coated specialty papers has been robust in the region during past years.

The upgrade of the production line will also improve the company’s flexibility to deliver a wider range of product trims, better matching the needs of its customers. Additionally, it will open up further innovation opportunities in existing and new product areas. The benefit of the investment includes an improved product mix and increased production efficiency.

“The investment shows our long-term commitment to the South American market and our ambition to maintain a leading position in coated specialty papers. This allows us to better serve our customers, continuing to grow with them by developing sustainable and value added fiber-based solutions,” says Daniele Borlatto, executive vice president, Industrial Solutions.

“The project represents the latest step in the journey to reinforce our position in Brazil,” says Valmir Piton, vice president, Coated Specialties, and country manager, Brazil.

In April, Ahlstrom-Munksjö agreed to acquire MD Papéis’ Caieiras specialty paper mill, located in the vicinity of Jacareì, in the Sao Paulo area. Following the acquisition, Ahlstrom-Munksjö’s presence in Brazil will comprise three operating plants, all near Sao Paolo, employing over 700 people, with revenues of approximately of 200 million euro.