Metso Paper signs Letter of Intent for a board making line to Turkey

Published Feb 16, 2005 10.00.00 +2 GMT

Metso Paper and the Turkish board manufacturer Modern Karton Sanayi Ticaret AS have signed a Letter of Intent for the delivery of a complete board making line to the customer's mill in Corlu, appr. 180 km west of Istanbul. The value of the agreement is around EUR 80 million. The deal is subject to the parties coming to the final agreement about the technical details of the project within 2 months.

The Letter of Intent covers a complete board making line including, in addition to the board machine, water management system, OCC line and winder. The annual capacity of the line, using 100 per cent recycled raw-material, will be 400,000 tons of containerboard grades. Additionally, the Letter of Intent comprises an extensive rebuild Modern Karton ordered for one of its existing board machines. The machinery will be started up in early 2007.

The agreement is a result of Metso Paper's intensive focusing on the development of new, cost-efficient board making technology. The board making line concept comprises several new technological solutions for low-effluent operation, including OCC line, a new headbox concept and most modern drying technology, all contributing to stronger end product quality with minimized production costs.

Modern Karton Sanayi Ticaret AS is a privately owned enterprise and the biggest container board manufacturer in Turkey. After the completion of the new line, the company will rank among the top-10 board producers in Europe. During the recent years, Turkey has experienced a substantial growth in the demand for packaging boards, the figure for last year being as high as 16 per cent.

For more information, please contact: Mr. Kari Kalliala, President, Board Business Line, Metso Paper, Inc. tel. +358 20482 6975, kari.kalliala@metso.com