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Metsa mill investments worth EUR 2b in pipeline

Metsa Kemi

Metsä Fibre has finalized its Kemi pulp mill related prefeasibility study, launched in May 2018. The study included two alternatives: Building a totally new bioproduct mill that would be clearly bigger in size than the current Kemi pulp mill or alternatively extending the life cycle of the current mill by modernizing several departments. Source: Timberbiz

In the study the availability of wood raw material and the development potential of Kemi’s industrial infrastructure and logistic connections were examined.

Building a new bioproduct mill in Kemi was chosen for future development. Target for the now initiated pre-engineering project is to create conditions for building a bioproduct mill with an annual production capacity of approximately 1.5 million tonnes of softwood and hardwood pulp.

In addition to pulp, the Kemi mill would produce various other bioproducts and would be the biggest wood processing unit in the Northern hemisphere. The total investment would amount to approximately EUR 1.5 billion.

The new mill would replace the current Kemi pulp mill which annual capacity is approximately 620,000 tonnes.

Annual pulpwood consumption of the new Kemi bioproduct mill would be approximately 7.6 million cubic meters, which is roughly 4.5 million cubic meters more compared to the consumption of the current mill.

Pulpwood for the mill is targeted to be sourced from Finland. Securing the wood sourcing for the mill requires further studies to maximize the share of domestic wood.

The main planning premises of the new mill include totally fossil free operations and 250% self-sufficiency in electricity. The pulp production volumes would mainly be sold to European and Asian customers as well as to Metsä Board’s, also a part of Metsä Group.

The final investment decision related to Kemi bioproduct mill is expected to be made mid 2020.

Metsä Fibre commenced a pre-engineering project to build a pine sawmill at its mill site in Rauma. The estimated annual production of the sawmill would be approximately 750,000 cubic meters. The new sawmill would be the most modern and efficient unit in its field in the world.

The total investment would amount to approximately EUR 200 million.

The sawmill’s annual sawlog consumption would be approximately 1.5 million cubic meters. Wood for the sawmill is planned to be sourced from Finland. The increased sawn timber volumes would be sold mainly to European and Asian customers. The final investment decision related to Rauma sawmill is expected to be made in early 2020.

Metsä Board has concluded a prefeasibility study related to renewal of Husum integrate’s pulp mill in Sweden and starts pre-engineering of the first phase of the renewal. The plan is to build a new recovery boiler and a turbine to replace the mill’s old recovery boilers and turbines. This investment Husum pulp mill’s annual capacity of approximately 750,000 tonnes would remain roughly unchanged, but its cost competitiveness would improve significantly. The final investment decision related to the first phase of Husum pulp mill’s renewal is expected to be made in the last quarter of 2019 at the earliest.

These planned investments implement Metsä Group’s strategic objectives by reducing the use of fossil fuels by over 400 GWh/a, increasing production of renewable energy by over 2 TWh/a and increasing carbon dioxide stored in wood products that have a long lifespan by 700,000 tonnes/a.