Papermaker UPM will boost pulp production at its Kymi mill by a third as part of a 160 million Euros to secure its position in the global pulp market.
The project is part of a three-year plan which includes increasing production of speciality papers in Asia.
At the “profitable and competitive” Kymi mill, the investment will result in a significant capacity increase with competitive costs and low risk, president and chief executive Jussi Pesonen says.
“We have set ourselves clear targets for growth initiatives in pulp production, biofuels, speciality papers in Asia and label materials for the coming three years. With these initiatives we are targeting an additional 200 million Euros EBITDA when in full operation.
“The Kymi investment will bring a significant contribution to this,” says Pesonen.
Kymi’s annual pulp production capacity will increase by 170,000 tonnes to 700,000 tonnes of bleached northern softwood and birch pulp, contributing to a targetted ten per cent increase to UPM’s 3.3 million tonne pulp capacity.
The company says in recent years it has established a strong position on the pulp market cooperating with customers in growing end use segments such as tissue, speciality papers and board.
Work at Kymi mill starts immediately with a new pulp drying machine, modernisation of the softwood fibre line, a new debarking plant as well as improvements in the energy balance.
Pesonen says the investment will advance the “decoupling” of UPM’s pulp and paper businesses, supporting a management focus in both businesses.
Pictured: Chemical recovery at Kymi
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