UPM to Start EUR 160 Million Upgrade Project at Kymi Pulp Mill

The upgrade project will increase Kymi Mill's pulp production capacity by 170,000 tonnes, which would increase the mill's annual capacity to about 700,000 tonnes of bleached northern softwood and birch pulp.

Feb. 28, 2014 - UPM annouinced that it will invest EUR 160 million in its Kymi pulp mill in Finland that will increase the mill's production capacity by 170,000 tonnes per year.

“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, speciality 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,” Pesonen said.

The upgrade project will increase Kymi Mill's pulp production capacity by 170,000 tonnes, which would increase the mill's annual capacity to about 700,000 tonnes 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 tonne pulp capacity over the next three years.

The project will begin immediately, UPM said, and involves a new pulp drying machine, modernization of the softwood fiber line, a new debarking plant as well as 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," UPM said.

The Kymi investment is one of the development initiatives with which UPM seeks growth in its profitable businesses as announced on August 6, 2013.

SOURCE: UPM