UPM to add Third Production Unit to Changshu Mill in China

Print this Article | Send to Colleague

UPM, Finland, has begun construction of a third production unit at its Changshu mill in China, which it first announced in August 2012. Since the original announcement, UPM’s investment scope has been revised by specifying more focused infrastructure investments. For example, instead of constructing a new power plant, it will upgrade existing boilers, providing opportunity to consider more environmentally effective fuels or options for the mill’s energy supply. The mill also intends to use existing facilities more effectively instead of building new infrastructure.

The new machine will be able to produce up to 360,000 metric tpy of labeling materials and specialty papers. It will start up at the end of 2015. With the revised plan, the investment cost has been reduced from EUR 390 million to EUR 277 million.

Kim Poulsen, EVP at UPM Paper Asia, noted that "the Changshu investment is targeted to serve growing end uses in Asia markets with a wide range of release liner materials and specialty products. This investment is implemented in our existing platform in Changshu, and will give us competitive production cost base through local synergies. The business fundamentals for the investment continue to be positive as both release liner materials and uncoated wood-free office and specialty papers enjoy a healthy demand outlook in Asia."

Back to TAPPI: Over The Wire