"Kymi is a profitable and competitive pulp mill in comparison with the world’s leading pulp mills. Our EUR 160 million investment will result in a significant capacity increase with competitive costs and low risk," said UPM’s President and CEO Jussi Pesonen. "We have set ourselves clear targets for growth initiatives in pulp production, biofuels, specialty papers in Asia, and label materials for the coming three years. With these initiatives, we are targeting an additional EUR 200 million EBITDA when in full operation. The Kymi investment will bring a significant contribution to this," says Pesonen.
With the investment, Kymi’s annual pulp production capacity will increase by 170,000 metric tons up to 700,000 metric tpy of bleached northern softwood and birch pulp. The Kymi investment makes a significant part of UPM’s earlier announced target to reach a 10% increase in its 3.3 million metric tpy of pulp capacity over the next three years.
During the past few years, UPM has established a strong position on the pulp market, cooperating with customers in the growing end use segments such as tissue, specialty papers, and board. UPM has developed a versatile and commercially competitive pulp portfolio.
UPM’s facilities in Finland and Uruguay provide a platform for further growth. UPM’s recent sales and marketing cooperation with Canfor Pulp, the capacity expansion of Fray Bentos mill in Uruguay, as well as investments in the Pietarsaari mill in Finland, and now in Kymi, are all supported by healthy market fundamentals, the company notes.
The investment at Kymi mill will begin immediately, comprising a new pulp drying machine, modernization of the softwood fiber line, a new debarking plant, and improvements in the energy balance of the Kymi integrate consisting of pulp and paper mills. The investment will not only benefit the pulp mill but the whole Kymi integrate due to increased resource efficiency and operational flexibility.
"Furthermore, the investment will advance the decoupling of UPM’s pulp and paper businesses, which supports a clear management focus and decision making in both businesses for the short and long term," said Pesonen.
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