Metsä Fibre, a part of Metsä Group, commences pre-engineering project to build a new bioproduct mill in Kemi, Finland. If implemented in full, the total value of the investment would amount to EUR 1.5 billion.
The Kemi pulp mill related prefeasibility study, launched in May 2018 has been finalised. 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. In the study, the availability of wood raw material and the development potential of Kemi's industrial infrastructure and logistic connections were examined in particular.
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 annual production capacity of approximately 1.5 million tonnes of softwood and hardwood pulp to Metsä Group’s current mill site in Kemi. In addition to pulp, the mill would produce various other bioproducts. This mill would be the biggest wood processing unit in the Northern hemisphere. The new mill would replace the current Kemi pulp mill which annual capacity is approximately 620,000 tonnes.
The 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. The aim is to source the pulpwood for the mill from Finland. Securing the wood sourcing for the mill requires further studies to maximize the share of domestic wood.
The Kemi bioproduct mill would directly employ approximately 250 people and, in its entire direct value chain, roughly 2,500 people in total. There is an increase of 1,500 people compared to the current situation. The employment impact in the construction phase would be almost 10,000 person-years of which over half in Kemi.
The main planning premises of the new mill include totally fossil free operations and 250 per cent self-sufficiency in electricity. The pulp production volumes would be sold to European and Asian customers as well as to Metsä Board’s, also a part of Metsä Group, linerboard mill located at the same mill site in Kemi.
The final investment decision related to Kemi biopropduct mill is expected to be made in summer 2020.