Billerud plans to invest $109 million at its mill in Escanaba and $18 million at its mill in Quinnesec as it moves toward doing more paperboard production.

The upgrades at the paper and pulp mills were announced this week by the Swedish company during a meeting in Stockholm. In a news release, Billerud said it aims to evolve toward paperboard production in the U.S. while remaining committed to graphic and speciality paper.

The work includes modernizing Escanaba’s woodyard, replacing debarking drums and improving boiler efficiency, officials said.

“We have an exciting plan in North America going forward, benefiting on sizable market opportunities, coupled with our attractive Midwest location, competitive assets and excellent paperboard capabilities in Billerud,” said Ivar Vatne, president and CEO of Billerud. “The evolution investments will be carried out in phases and in alignment with the mills’ scheduled maintenance shutdowns to minimize production disruptions. The upgrade of the woodyard in Escanaba is set to begin immediately, with the bulk of the work scheduled for the second half of 2025,” he said.

Earlier this year, Billerud canceled a plan to spend more than $1 billion converting the Escanaba plant into a cartonboard production facility. This week’s announcement follows plans disclosed in May to gradually shift the U.S. product mix towards packaging materials.

Billerud acquired the Upper Peninsula mills when its purchase of Verso closed in March 2022. An idled mill in Wisconsin Rapids, Wis., was also acquired and Billerud now operates a facility there that converts rolls of graphic paper and cartonboard into sheets.

Billerud lists 860 employees in Escanaba, 430 in Quinnesec and 120 in Wisconsin Rapids.