Finnpulp is planning the largest softwood pulp plant in Kuopio
Finnpulp is planning to build the world’s largest softwood pulp mill in Kuopio, Finland. The total amount of the investment is 1.4 billion euros. The basis for all Finnpulp operations is to become the most efficient and modern producer of softwood pulp in the world.
The new Finnpulp mill will be the most efficient and ecologically sound pulp mill in the industry. The environmental permit was granted in March 2017 and the terms of the permit maybe the tightest ever been set to production plants. In addition to pulp production, the modern technology will enable versatile bioproduction. Thus, the mill is going to be a significant producer of biochemicals and bioelectricity. The company’s production will equal 5 per cent of the world’s softwood pulp market in 2022. Automated, efficient and carbon neutral production technology represents a new generation in the global pulp industry.
In its operations, Finnpulp makes use of the growing global demand for Finnish long-fibre softwood pulp. The demand is further increased by the growing demand for softwood pulp for tissue and packaging board production. Finnpulp’s location in Kuopio is optimal in terms of the availability of softwood used in the mill’s production. The mill will be surrounded by the most significant forest resources in Finland.
In addition to domestic investors, also international industry operators will have a significant role in the completion of this major project. Finnpulp’s owner base is at the moment divided between domestic forest and industry expertise and China’s biggest tissue paper producer, Hengan International, which is listed in Stock Exchange of Hong Kong. Owner base represents among industry expertise and also the world’s fastest growing softwood pulp markets.
In addition to pulp production, growth in other bio-based products
The pulp market will grow alongside with the global rise in living standards. Until the year 2025, the demand for tissue paper and packaging board produced from softwood pulp is expected to increase annually approximately 3-4% due to the economic development in Asia, Africa and South America. The decrease in the amount of recycled paper will impact the availability of recycled fibre and increase the demand for new softwood pulp. Finnpulp will serve this growth.
In addition to softwood pulp, Finnpulp will produce bioelectricity 1 TWh per year to the national grid and also a significant amount of various biochemicals, such as tall oil and turpentine. These products are important in terms of Finnpulp’s business operations. The company’s management has an extensive experience of bio-based production in the international markets and this will bring Finnpulp’s bio-based product business and networks up to world-class levels.
The new mill project represents the Finnish wood processing expertise and modern technology.
The best planning expertise in the industry has been involved in the project preparation. The mill will be the most efficient softwood pulp production facility in the world. The project will utilize the cumulative business competences in the Finnish pulp industry and the solid experience of the project management team from top positions in the forest cluster and chemical industry.
Softwood is a versatile material and it can be used for producing different processed products and bioelectricity.
Located in the heart of
Finnish forest resources
Finnish underutilized forest resources offer an excellent raw material base for this gigantic investment. Over 100 million cubic meters of wood grows in Finland every year. Without new investments, almost one third of annual softwood pulpwood growth in the Finnish commercial forests would not be utilized. The new mill will use 6,7 million cubic meters of wood raw material per year.
Finland offers an ideal operating environment to this mill. The most suitable area chosen for the mill operations was Kuopio, located in the heart of Finnish softwood resources. In addition, the 100-hectare industrial site reserved for this project has excellent road and rail connections as well as connections to the national electricity grid.