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Sweden-Based Billerud US Production Holding Plans Escanaba, Michigan, Paperboard Plant

Billerud US Production Holding, a subsidiary of Billerud, a leading paper and packaging provider headquartered in Sweden, plans to upgrade its operations in Escanaba, Michigan. The roughly $1 billion project is expected to create at least 1,240 jobs.

The company is considering transforming its current facility to produce a more technologically advanced paper product known as paperboard or cartonboard, according to state officials. This multi-ply product is used as packaging for pharma and healthcare, cosmetics, drinks and others.

“We thank the Michigan Strategic Fund board members for their recommendation that Billerud’s Escanaba Mill be designated as a Renaissance Zone. This designation is an important step forward in our plans to transform the mill into a world-class paperboard production facility,” said Billerud North America Deputy President and General Counsel Kevin Kuznicki. “Our pre-feasibility study is underway and expected to be completed in early 2023. We look forward to continuing to partner closely with our employees, unions, and local and state authorities over the next several months to finalize project and incentive details.”

The Michigan Strategic Fund today approved a 15-year Forest Products Processing Renaissance Zone estimated to be worth $29.4 million in support of the project. In addition, Delta County, Escanaba Township and Wells Township anticipate authorization of a 15-year Renaissance Zone, and the townships anticipate approval of a 50-percent property tax abatement in support of the project.

“We are excited to see the Michigan Strategic Fund approve a Forest Products Processing Renaissance Zone for Billerud today, and are grateful not only to the Strategic Fund for its support but to Quentin Messer and his team at the MEDC for its hard, thoughtful work to ensure the availability of this tool for Billerud,” noted InvestUP CEO Marty Fittante. “With the renaissance zone in place, it will permit Billerud and the state of Michigan to continue to work together to support this project in the Upper Peninsula and we look forward to continuing to be a partner to the company, the state and the community to secure this investment in our region.”

Billerud AB is a Swedish pulp and paper manufacturer with headquarters in Solna, Sweden. The company simplified its name from BillerudKorsnäs to Billerud after the acquisition of Ohio-based Verso in 2022, an American producer of coated paper. Billerud has nine production facilities in Sweden, Finland and the USA with approximately 5,800 employees in over 13 countries.

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