China's Hengan Acquires 36.5 Percent Share in Finnpulp Bioproducts Mill

Basic engineering of Finnpulp’s bioproduct mill has started. The mill will be built on the site in Sorsasalo in Kuopio, for which the city plan was enforced earlier in January. Basic engineering for this world’s largest bioproduct mill that uses only softwood will last about one year. Engineering work now starting will form basis for the final investment decision by the company. This is due to the first half of next year. The decision also will mean construction works of the mill to start.

Owners of Finnpulp will finance approximately EUR 15 million for the basic planning period. However, before starting the engineering work, the company increased the ownership base. Hengan International, which is China’s most significant tissue and hygiene product manufacturer, became a shareholder of the company. The EUR 11.7 million investment made by Hengan entitles it to 36.5 percent of the share capital. In the future Hengan has the  possibility to increase its share of the company up to 49 percent.

 

At the same time Hengan became a new shareholder, the previous owners, MTK and Grizzly Hill Capitals, raised their investment in Finnpulp. After the issue both parties will have 11.5 percent of the company's ownership.