ESCANABA — Two Upper Peninsula paper mills are receiving a significant investment coming in 2025.

On Monday, the Swedish company Billerud held its Capital Markets Day in Stockholm, where it announced it is investing roughly $125 million in the Escanaba and Quinnesec paper mills.

According to a press release, the largest project involves modernizing and rebuilding the Escanaba Mill woodyard. The company is upgrading equipment, including replacing the current debarking drums with ‘state-of-the-art’ rotary debarking technology. The existing drums were originally 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.

The company also added an additional $5 million to alleviate carbon emissions.

“Billerud embeds sustainability in everything we do and takes environmental responsibility seriously,” said Doug Schwartz, President of Billerud in North America.

Billerud stated that the investments will revitalize both mills, secure their long-term operational success, and contribute to the Upper Peninsula economy.

Perpich said the majority of spending will take place in 2025, and the company will work to limit disruptions to operations or shipments.

“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,” Perpich said.

The entire Capital Markets Day presentation is linked at www.billerud.com under the press and news tab.

“By improving the mills’ efficiency and sustainability, Billerud to secure a future for its employees and contractors, and the broader community that relies on its presence for economic stability and growth.”