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Largest investment ever made in Finnish forest industry

15 February 2021

Metsä Fibre, part of Metsä Group, has made the investment decision to build a new bioproduct mill in Kemi, Finland. The value of the investment is EUR 1.6 billion and it is the largest investment ever made by the Finnish forest industry in Finland. The construction phase will take approximately two and a half years, and the mill will be completed during the third quarter of 2023.

In addition to the Kemi bioproduct mill, Metsä Group is currently building the world’s most modern sawmill in Rauma, Finland. The Kemi bioproduct mill will increase the annual value of Finland’s exports by approximately EUR 0.5 billion, and the positive annual income effect in Finland from wood sales and domestic purchases will also be approximately EUR 0.5 billion. The new bioproduct mill will secure the 250 jobs in the existing pulp mill in Kemi for decades to come. All in all, around 500 persons work in the Metsä Group’s Kemi mill site.

A significant part of the pulp produced at the Kemi bioproduct mill is processed into high-quality linerboard at the mill site at Metsä Board’s mill. In this connection, Metsä Board has decided to increase the capacity of the linerboard mill. The Kemi bioproduct mill will create around 1,500 new jobs across its entire direct value chain in Finland, most of them in wood sourcing. All in all, approximately 2,500 people will work in the direct value chain of the Kemi bioproduct mill in Finland.

The Finnish companies have been competitive, and the Kemi bioproduct mill project’s degree of Finnish origin is estimated to be very high, approximately 70%. During the construction phase, the employment impact will be nearly 10,000 person-years and more than half of it will be located in Kemi. The number of individual persons working in the mill area during the construction phase is estimated to be around 15,000.

The Kemi bioproduct mill will use approximately 7.6 million cubic metres of pulpwood a year, which is 4.5 million cubic metres more than the current pulp mill in Kemi. Wood is planned to be procured mainly from Finland. The availability of high-quality wood raw material is supported by the strong owner base of Metsäliitto Cooperative. The wood procurement to Kemi mill will expand to Sweden in the future, from where it is estimated that approximately one million cubic meters of wood will be procured annually. The main partners for the construction project are Valmet, ABB, AFRY and Fimpec.

Source: Metsa Fibre

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