ESCANABA, Mich. (WZMQ) – Swedish corporation Billerud has approved new funding for its paper mills in the Upper Peninsula.
Billerud is investing approximately $125 million into the Escanaba and Quinnesec mills. Projects include the modernization of the Escanaba mill’s woodyard and the replacement of its current debarking drums, which were commissioned in 1972.
“Some important features of the new woodyard will be improved safety through modernized equipment and controls, enhanced chip quality, which opens the door for future paper and packaging products, greater capacity and operational efficiency, and increased sustainability by reducing steam and chemical use and improving boiler efficiency,” said Dennis Perpich, Senior Vice President of Operations for Billerud North America.
In May, the company called off plans to convert the Escanaba mill to carton board production in favor of a “gradual shift” toward packaging materials. Billerud North America President Doug Schwartz says this investment will support that change.
“We have an abundant source of low-cost fiber available to us,” he said during Billerud’s Capital Markets Day presentation, “and for a relatively modest, yet impactful, capital investment, we can adjust our assets to fully pursue all of the needs of the paperboard marketplace while remaining fully committed to the graphic paper space.”
Billerud is committing an additional $5 million toward reducing its carbon emissions.
“The majority of the spending will occur in 2025, with projects carefully phased to minimize disruptions to our operations and shipments,” Perpich said. “Our primary focus will always be the safety of our employees and contractors. There are projects that will involve complex equipment installations, upgrades and construction phases, making it essential to uphold a commitment to safety at every step. Adhering strictly to all safety protocols is non-negotiable, ensuring that every
decision, task and interaction has safety at its core.”
Billerud says the investments will revitalize its Upper Peninsula mills and secure their success long-term.
