Pulp Matters 1/2022

UPM PULP MAGAZINE 1/2022 FIBRES FOR THE FUTURE PULP MATTERS

FIBRE PHENOMENA P. 6 EUCALYPTUS EXPERTISE

BUSINESS BLUEPRINT P. 18 OPERATIONS IN URUGUAY THE PERSONAL TOUCH P. 28 HOME-GROWN TALENT

CUTTING EDGE P. 20 A SPECIAL BREED

PULP FACT P. 22

OUTLOOK P. 34

WORLD-CLASS LOGISTICS

BOOMING PULP DEMAND

HIGHLIGHTS

06 SUSTAINABLE PLANTATIONS Our eucalyptus plantations answer to the global demand for renewable and recyclable raw materials.

20 A BALANCED MIX UPM Euca combines top-notch quality and stability for the benefit of our customers.

22 DEVELOPING INFRASTRUCTURE Significant infrastructure developments in port and railway operations are underway in Uruguay.

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PULP MATTERS

CONTENT 1/2022

4–5 EDITORIAL ACTIONS MATTER 6–17 FIBRE PHENOMENA ROOTED IN SUSTAINABILITY 18–19 BUSINESS BLUEPRINT UPM IN URUGUAY 20–21 CUTTING EDGE THE GOLDEN COMBINATION 22–27 PULP FACT FULL STEAM AHEAD 28–31 THE PERSONAL TOUCH TWO FRIENDS, A SHARED HOMETOWN AND A COMMON DREAM 32–33 NEWS FOREST ACTION PROGRAMME AND MORE 34–35 OUTLOOK PULP IS PRIMED FOR THE BIG TIME

PULP MATTERS ISSUE 1/2022 Alvar Aallon katu 1, PL 380,

Production and layout: Vapa Media Printing house: Grano

FI-00101 Helsinki www.upmpulp.com Publisher: UPM Pulp

PULP MATTERS is published in English and Chinese Cover: UPM Fine 140 g Paper: UPM Fine 120 g

PEFC/02-31-80

Promoting Sustainable Forest

Editor-in-chief: Sari Hörkkö, Editorial board: Sari Hörkkö, Riikka Viljakainen and Fang Deng

Management www.pefc.org

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EDI TORIAL

“UPM EUCA PULP FROM URUGUAY MATTERS FOR THE PLANET, SOCIETY, LOCAL COMMUNITIES, AND OUR VALUED CLIENTS.”

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PUL P MAT TERS 01/2022

Actions matter Pulp can make a difference in the fight against climate change. Our aim is to deliver this raw material of the future in a reliable, consistent and sustainably managed way. Dear reader, welcome to the first issue of Pulp Matters magazine. As the title of the publication implies, we at UPM Pulp believe that renewable, recyclable and sustainable wood fibres can truly make a difference. In this publication, we highlight the ways in which UPM Euca pulp from Uruguay matters for the planet, society, local communities, and last but not least, for our valued clients and their growing business. Replacing fossil-based materials with pulp-based alternatives can meet the everyday needs of an ever-growing global population in a sustainable way. As we gradually recover from the effects of the Covid-19 pandemic, 2022 has continued on a turbulent path. Due to Russian aggression against Ukraine – besides providing humanitarian and material support to Ukraine and our employees in the affected areas – UPM has suspended purchasing wood in and from the country and ceased delivering products to Russia. The situation is constantly evolving, but what is clear is that geopolitically, Europe has changed substantially and possibly permanently, with wide-reaching human, political and economic implications. In Finland, UPM Pulp’s operations have been resumed after the historically long strike by the Paperworkers’ Union ended in April. The new collective labour agreements reached lay a solid foundation for a successful future together. We are determined to resume our production and services as swiftly as possible and strive to restore our customers’ trust in trouble-free, consistent and stable deliveries well into the future. We are, have been, and plan to be in this business for the long run. As testament to our longevity and commitment is the fact that our operations at UPM Kymi mill site celebrate the 150th anniversary this year. Another demonstration of our long-term commitment is the USD 3 billion investment into our new pulp mill in Paso de los Toros in central Uruguay. Adding to the capacity of our existing mill in Fray Bentos, the new mill will more than double UPM’s production of eucalyptus pulp. With an exchangeable quality of pulp from two modern pulp mills, our customers can even better rely on the security of supply.

Tomas Wiklund Senior Vice President, Pulp Sales UPM Pulp

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F IBRE PHENOMENA

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As demand for renewable materials such as wood fibre increases globally, UPM is stepping up its operations in Uruguay. How is the sustainability of its eucalyptus plantations ensured? ROOTED IN SUSTAINABILITY

TEXT: ANNA GUSTAFSSON PHOTOS: UPM

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F IBRE PHENOMENA

T he global demand for pulp has increased and is expected to reach new heights in the coming years. The global megatrends driving the development are population growth, urbanisation, and changes in consumer behaviour. The size of the middle class is growing in rising economies like China and developing countries in Asia. This boosts the consumption of consumer goods such as tissue products and packaging. On the other hand, the fight against climate change has escalated the need to find renewable and recyclable materials to replace fossils. Uruguay, a relatively small South American country with a population of 3.5 million, was previously known as a major beef exporter. However, since 2018 pulp has reached the same level as the country’s main export product. UPM’s first pulp mill, Fray Bentos, has been in operation since 2007. Located on the banks of the Uruguay River it produces 1.3 million tonnes of pulp annually. The second mill, Paso de los Toros, is pipelined to be up and running by 2023. Together the mills will produce over 3 million tonnes of eucalyptus pulp a year. Álvaro Fitipaldo is the Director of UPM Forestry Operations in Uruguay. He has worked in the forest industry throughout his career and at UPM since 2004. The UPM pulp mills consume eucalyptus wood supplied from sustainably managed local forest plantations. As UPM’s pulp production multiplies, what does this mean for the sustainable management of eucalyptus plantations?

Álvaro Fitipaldo Director, Forestry Operations UPM Uruguay

“It is a challenge for sure, but we have been preparing for this for the past few years. A lot of new technology has been implemented, and processes have been digitalised. We have developed the standards for all our activities and have a professional and committed team to ensure sustainable operation,” Fitipaldo says. OPTIMAL CONDITIONS Forestry in Uruguay is a relatively young sector. It began with the ratification of the National Forestry Act in 1987. The law allowed the establishment of the first eucalyptus and pine tree plantations, and today around 6% of the territory of Uruguay consists of forest plantations. UPM has been developing eucalyptus plantations in the country since the early 1990s.

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F IBRE PHENOMENA

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44 million

UPM manages a total of 466,000 hectares of its own and leased land in the west and northeast of Uruguay. Of this vast area, 60% is used for eucalyptus plantations. The rest is used for cattle grazing and infrastructure as well as protected areas. The practices of sustainable forestry management have been finetuned during the past three decades, and today sustainability is given due consideration during the whole growth cycle of the eucalyptus tree. Eucalyptus has naturally good growth conditions in Uruguay. The country has a mild climate with temperatures around 12-25°C and very little variation between seasons. The rainfall remains stable between 1,200 to 1,500 mm per year, and there is no dry season. The native forests, which represent about 5% of Uruguay, are all protected. The primary vegetation type is pampa or grassy plains, and there are no rainforests. Although the conditions are naturally good, to ensure efficient production UPM has done a lot of research to improve the eucalyptus species, Fitipaldo says. “Our sustainability work starts even before we sow the seedlings. Genetic selection has allowed us to increase productivity along the years. Choosing the best Eucalyptus grandis and Eucalyptus dunnii species means faster growth and healthier trees.” However, maintaining the genetic diversity in the plantations is essential, Fitipaldo emphasises. This is part of sustainable forest management and also risk control. Due to climate change, even Uruguay is not immune to the possibility of extreme conditions. Healthy and strong trees are better protected from risks such as frost or strong winds.

seedlings will be grown each year in UPM’s three tree nurseries.

60%

of UPM-owned land in Uruguay is planted with eucalyptus.

Around 40% of UPM’s land in Uruguay is used for protected areas, native forests, related

activities – such as cattle grazing and bee-hives – and infrastructure.

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F IBRE PHENOMENA

THE GROWTH CYCLE OF A EUCALYPTUS FROM 10 TO 12 YEARS.

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TREE IS RELATIVELY SHORT,

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F IBRE PHENOMENA

OUR SUSTAIN STARTS EVEN WE SOW THE

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ABILITY WORK BEFORE SEEDLINGS

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F IBRE PHENOMENA

WE HAVE BEEN DEVELOPING THE SUSTAINABILITY OF OUR EUCALYPTUS PLANTATIONS SINCE THE BEGINNING

SUSTAINABLE CYCLE UPM has two tree nurseries on the west side of Uruguay, where it grows all the seedlings destined to grow in the plantations. 44 million seedlings will be grown each year in UPM’s three tree nurseries. A third nursery is currently under construction, and that will increase the availability of seedlings by 10 million. The seedling nurseries employ people from nearby rural communities and the majority of them are women. The growth cycle of a eucalyptus tree is relatively short – from 10 to 12 years. During this time, agrochemicals and fertilisers are only used during the first year. The impact on local water reserves has also been well researched. The eucalyptus tree is very efficient in using water and does not use groundwater. The planning of plantations is careful work. Plantations in Uruguay are subject to the local forestry law and beyond that all UPM forest plantations in Uruguay have FSC TM (FSC-C020173) and PEFC (PEFC/36-22-002) certification. These certifications cover economic, environmental and social responsibility standards for sustainable forest management, and the process is audited every year. Fitipaldo says the most important thing is to have a clear vision of the future in terms of sustainability.

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“We will plan for the whole cycle of the tree, from using recycled water in our nurseries down to details such as where the roads are most optimally located to minimise the impact of our activity. We follow UPM’s global biodiversity programme and work with local NGOs to protect the ecosystem.” Eucalyptus trees act as important carbon sinks and are therefore one part of preventing the advance of climate change. Compared to the previous land use for cattle grazing, trees have much higher biomass and therefore act as more effective carbon storage. Although deforestation and erosion are problems affecting several South American countries, the number of tree plantations and natural forest in Uruguay has in fact grown. LONG TERM WORK Around 40% of UPM’s land in Uruguay is not used for plantations. Apart from small areas needed for logistics, the rest is either in its original use as pastureland for cattle or conserved for natural habitat for local animals and birds. No natural forest has been cleared for the UPM plantations. Valuable ecosystems, such as wetlands and grasslands, are protected. There are buffer areas around the plantations and conserved corridors for animals. These actions also help to maintain biodiversity in the area. The local people even use the plantations and buffer zones for beekeeping and mushroom picking. Although Álvaro Fitipaldo now has responsibility for the big picture, he still enjoys staying as close to the operational side as possible. Sustainability means taking many steps along the way, and it is always important to see where things can be improved, he says. “We have been developing the sustainability of our eucalyptus plantations since the beginning and it is a central part of our working culture.”

The seedling nurseries employ people from nearby rural communities – the majority of them women.

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BUSINESS BLUEPRINT After its scheduled start-up in the first quarter of 2023, the UPM Paso de los Toros pulp mill will add to the already widespread socioeconomic impacts of UPM’s operations in Uruguay. Currently, UPM operates the Fray Bentos pulp mill, the forestry and wood sourcing company UPM Forestal Oriental and the UPM Foundation, promoting the development of communities through education and entrepreneurship. UPM IN U

UPM FRAY BENTOS MILL

UPM FORESTAL ORIENTAL

Around 312,000 ha of plantable land, including own and third-party properties in 14 departments On UPM Forestal Oriental properties, 60% of the land area is planted 7,600 ha of protected area Annual production from 3 nurseries of 44 million seedlings

1.3 million tonnes of eucalyptus pulp per year 800+ workers on mill site 100 companies regularly enter the site to provide services 150+ young people trained to operate the mill Pulp is transported from the mill harbour in river barges to the port of Nueva Palmira, from where it’s shipped in ocean vessels to global markets

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URUGUAY

UPM PASO DE LOS TOROS MILL

UPM FOUNDATION

A new 273 km railroad will connect the pulp mill to the port of Montevideo New port terminal handles over 2 million tonnes of pulp annually UPM Euca pulp is shipped from the port of Montevideo globally by 80 vessels per year

Presence in 150 rural communities More than 30 projects per year in cooperation with organisations and institutes 80% of the projects are focused on education

Annual production capacity of 2.1 million tonnes of eucalyptus pulp Creates 10,000 permanent jobs Generates USD 200 million in wages and salaries per year in the value chain

Increases the country’s GDP by 2% once in operation

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CUT T ING EDGE

THE GOLDEN COMBINATION

UPM Euca combines top-notch quality and stability for the benefit of customers around the world.

TEXT: SAMI ANTEROINEN PHOTO: UPM

Lorena Echevarria, Senior Manager, Operations Development and Support for UPM Pulp in Uruguay, explains that, at its core, the success of UPM Euca is rooted in the use of two different and well-combined wood species: Eucalyptus grandis and Eucalyptus dunnii. “These two species have adapted well to Uruguay’s soil and climate, and they have many complementary characteristics. Together, they form a very solid combination,” she says. For example, Eucalyptus grandis has a high growth rate and high fibre number, while Eucalyptus dunnii has solid frost resistance and high wood basic density. FIND THE RIGHT BALANCE Put together, grandis and dunnii constitute an extremely well-balanced pulp, which provides good strength properties, bulk and drainage development in refining.

The resulting UPM Euca pulp is used to produce clean, soft and smooth tissue products – and it can also provide high brightness, good refinability, surface and optical properties for specialties and printing and writing end uses. “UPM Euca is a product that clearly adds value to the customer’s business,” Echevarria says. DECADES IN THE MAKING It’s also a success story with some history. The development of the eucalyptus species in Uruguay, which started more than 30 years ago, is a continuous process to improve forest productivity, mill processability and papermaking properties. “The eucalyptus genetic material that grows and adapts best to our climate is thoroughly studied in our R&D laboratory, where we select those that are

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easy to cook and bleach, consume less chemicals and have the best fibre properties in line with what is really valued by our customers.” The second link in the quality chain is the carefully controlled production process. The Fray Bentos pulp mill, launched in 2007, is a real forerunner in the entire industry, Echevarria says. “We are already 15 years into the development of the Euca production process with Uruguayan-bred species. The quality stability at the mill is quite excellent – the result of a controlled, optimized process with excellent mill availability.” DOUBLE YOUR PLEASURE As the new pulp mill at Paso de los Toros starts up, there will be two mills relying on the superb properties of UPM Euca. “We are transferring all our Euca knowledge from Fray Bentos to Paso de los Toros. In the future both mills will produce the same great quality.” Yet another aspect of UPM Euca is sustainability. “This is a sustainable pulp, produced from sustainable local plantations using an industrial process that operates with the best available techniques and top class environmental performance,” Echevarria says, adding that the company has set very demanding sustainability goals for the future. “We are committed to being the sustainability pioneers in the industry. This is something that motivates me every day.” “WE ARE ALREADY 15 YEARS INTO THE DEVELOPMENT OF THE EUCA PRODUCTION PROCESS WITH URUGUAYAN-BRED SPECIES.”

UPM EUCA – PULP FACTS

• Made from two species of plantation grown eucalyptus (Eucalyptus grandis and Eucalyptus dunnii) • Eucalyptus grandis has a high growth rate and high fibre number while Eucalyptus dunnii has good frost resistance and high wood basic density • The resulting pulp is quick to refine • Used to create clean, soft and smooth tissue products • Provides good surface and optical properties for printing and writing end uses • Offers good bulk when refined to required tensile strength • Especially used for tissue, specialty papers and printing and writing papers

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PULP FAC T

FULL S AHE

STEAM EAD

Significant infrastructure developments in port and railway operations are underway in Uruguay as construction of the UPM Paso de los Toros pulp mill progresses. We have an update on how the work is proceeding.

TEXT: ANNA GUSTAFSSON PHOTOS: UPM

PULP FAC T

TO ENSURE THE EFFICIENCY, speed and safety of pulp transports from Uruguay to global markets, UPM is building a new pulp terminal at the Montevideo port. An improved and partly rebuilt railroad will connect the new mill near the city of Paso de los Toros in central Uruguay to the capital. The new pulp terminal in Montevideo will be used for receiving, handling and storing pulp and chemicals used in pulp production. UPM has 15 years’ experience in pulp loading, gained during operations at the Nueva Palmira pulp terminal. The new terminal in Montevideo will be similarly specialized for pulp but even bigger.

After two years of construction, the terminal building is nearly ready, says Javier Solari , Vice President of the UPM Uruguay Development Project, speaking to us this April. Open 24/7, the terminal can handle over 2 million tonnes of pulp annually. UPM will operate it on a 50-year concession. “At the peak of construction, we had 500 people working on site, and currently have about 400 workers. Apart from dredging and some automation, electrical and piping installations, everything is nearly done,” Solari says.

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500

MAJOR STORAGE AND LOADING AREAS A total of 50,000 m 2 of warehouse space – enough to store 140,000 tonnes of pulp – has also been built along with the terminal. Expanding the current dock will allow Panamax (length 294, beam 32, draught 12 m) and Post Panamax (length 366, beam 49, draught 15 m) sized vessels to enter the port for cargo loading. “The whole construction process happened in a public space, inside a busy working port. We were never alone, and the port traffic created challenges in scheduling the work to minimise distractions,” Solari describes the special characteristics of the building process. The project also includes constructing a 12,000 m 2 roofed loading area, which will allow loading and unloading of cargo directly to vessels in all weather conditions. Utilising a railway to transport pulp from the mill will be a significant advantage. Five rail tracks will lead directly to the dock, of which two are used for pulp, one for chemicals, and the others for shunting and as spare tracks. IMPACT ON ENTIRE EXPORT SECTOR The rebuilding of the railroad leading from Paso de los Toros to the capital is one of the most significant infrastructure projects in the country’s history. The railway will be 273 kilometres long and run as a double rail for the first 36 kilometres from the Montevideo metropolitan area.

50,000m² people were working on-site at the peak of construction at the new pulp terminal in Montevideo.

of warehouse space, enough to store 140,000 tonnes of pulp, has been built along the terminal.

The whole construction process of the terminal has taken place inside a busy, working port.

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PULP FAC T

“THE CONNECTION VIA RAILROADWILL BENEFIT THE WHOLE EXPORT SECTOR OF URUGUAY AND ITS SUPPLY CHAIN.”

Although UPM has been the initiator in the construction of the railway, it will be state-owned and open to other users as well, including passenger trains. UPM estimates it will run seven daily trains, each carrying 1,664 tonnes of pulp. The railroad is part of the Uruguayan government’s infrastructure plan, executed as a public-private partnership. The existing railroad was outdated and not much used, so along with the railway 246 level crossings, 66 railway bridges and 25 stations and passenger stops are being built. The railroad construction and maintenance for 18 years were awarded to the Grupo Via Central consortium, led by Spanish construction firm Sacyr. The operating company providing the freight services will be a consortium led by Deutsche Bahn International Operations. At the beginning of 2022, approximately 30% of the railroad was finished, meaning the project has been delayed from the initial schedule but is expected to be finished by May 2023. Solari, speaking not only as a committed UPM professional but also a native Uruguayan, sees that the infrastructure project has a significant impact on the whole country. “The Port of Montevideo has always been a driving force for the economy. The connection via railroad will benefit the whole export sector of Uruguay and its supply chain. The railway is also a safer and cleaner method of transport,” Solari sums up.

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THE PERSONAL TOUCH

TWO FRIENDS, A SHARED HOMETOWN AND A COMMON DREAM Two young ladies from Paso de los Toros shared a career path that has taken them back to their hometown.

TEXT: LUCÍA BURBANO PHOTOS: UPM

T e lives of Agustina Ramos (22) and Azul Díaz (21) seem to have moved along parallel lines since they first met when they were 16 years old. Both hail from the city of Paso de los Toros in Uruguay and studied to be technologists in chemistry at the UTEC university in Paysandú. After graduation, they continued in the same field and are currently training to be laboratory analysts at UPM’s Fray Bentos mill. As soon as their training is complete, they plan to return to their hometown and dream of working at the new mill UPM is building there. FROM UTEC TO UPM The last stretch of their shared path was made possible when both friends were granted two of the

five scholarships awarded by the UPM Foundation, Fundación UPM, three years ago. Apart from transport and accommodation, the scholarships also helped provide them with the required training to follow their goals. “We hardly had any notion of chemistry and I really loved it. Although the pandemic reduced the number of practical training periods, it was still a very hands-on degree,” says Ramos. For Díaz, although the principal focus of laboratory work was primarily on the food industry and not so much on forestry or pulp production, she discovered the latter when she chose water and flue gas analysis as an elective course. She confesses that her impressions changed while moving forward in her degree. “At first I thought it

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THE PERSONAL TOUCH

“I WAS ALREADY EXCITED ABOUT THE SCHOLARSHIP, AND NEVER, EVER IN MY LIFE DREAMED OF WORKING AT UPM.”

was going to be dull, but then discovered that it was actually fun and very interesting.” During their studies, the two students learned that UPM was recruiting laboratory technicians and it was for their upcoming mill in Paso de los Toros. Finding vacancies in their field of choice and their hometown was an unexpected but pleasant bonus. “I was already excited about the scholarship, and never, ever in my life dreamed of working at UPM, as it seemed a very distant possibility,’’ says Ramos. Díaz adds that the scholarship didn’t guarantee them a job, so when they received the call inviting them for the job after completing the application process they felt “equally nervous and excited.” The UTEC network of universities has decentralised the education system in Uruguay, allowing individuals like Díaz and Ramos to carry on with their studies without becoming an economic burden for their families. This in a region where, not so long ago, pursuing a degree meant living hundreds of kilometres away from home. “I always knew that to study a tertiary career I had to leave my hometown, but I always wanted to return. What I never imagined is that I would return with my degree almost finished and with

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Both Agustina Ramos and Azul Díaz are training to be laboratory analysts.

team, so they are generating a sense of teamwork and camaraderie. EMBRACING NEW OPPORTUNITIES While the Paso de los Toros mill is not yet operational, Ramos and Díaz claim that its presence has already had an effect – the population of their city has grown, new businesses have opened and are flourishing, and public transport has become more efficient. “Now during rush hour there are long queues in the supermarket!” says Díaz. What’s more, everyone’s awaiting the completion of a new bridge that will allow easy access across the Río Negro River. “As locals it is great to be able to enjoy all the natural sites that surround Paso de los Toros,” says Ramos. “Attractions like the Rincón del Bonete dam, where locals and visitors can enjoy fishing and other water activities. Even the national media is covering Paso de los Toros more than before.” Both Ramos and Díaz say that their families are “ecstatic” about their prospects and are awaiting their triumphant return from the Fray Bentos mill. As far as the two young ladies are concerned their future can only “go onward and upwards”.

the beautiful experience of having already done an internship under my arm,” says Agustina. “At our young age, already having an internship in a large industrial company is a very pleasant satisfaction,” Díaz adds. THE ROAD BACK HOME A prerequisite for recruits for the Paso de los Toros mill is that they ideally live in the town or nearby areas. UPM has trained future laboratory analysts at its Fray Bentos mill and has a team with 15 years’ experience in the process, as well as a laboratory with an infrastructure similar to that of the future Paso de los Toros mill. Accordingly, Ramos and Díaz started their internship in Fray Bentos in January this year. They have been provided with accommodation in a hotel which includes daily transport to the plant, located 7 kilometres away. They both confess they “couldn’t sleep” the night before their f irst day on the job, but once they started felt welcomed by their laboratory colleagues and have a genuine excitement for everything they’ve learned so far. They are currently training with other colleagues who will be part of the Paso de los Toros laboratory

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NEWS

FOREST ACTION PROGRAMME LAUNCHED

industry. UPM was also among the first to commit to the UN’s Business Ambition for a 1.5°C climate target and climate-positive forest management and to increase biodiversity in the company’s forests in Finland. The Forest Action Programme extends the net positive biodiversity target to the Uruguayan plantations, where biodiversity indicators have been developed to reflect local conditions and context. In plantations the net positive target can be achieved through the protection of natural habitats, nature management and monitoring of the effectiveness of conservation measures.

UPM has kicked off a new Forest Action Programme which will run until 2030. The global initiative steers UPM’s global wood sourcing operations and covers its own forests in Finland and the United States as well as its plantations in Uruguay. The programme goes beyond current standard requirements and its measures will have a positive impact on the fundamental aspects of sustainable forestry: climate, biodiversity, soil, water and societal contribution. UPM has been a frontrunner in the development of responsible forest management. Its biodiversity programme, launched in 1998, was the first in the

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Paso de los Toros pulp mill project right on track At the beginning of 2022 the number of people working at the various construction sites of the UPM Paso de los Toros mill project reached a peak of over 6,500. The installation phase with mechanical erection continued to progress in all main process areas and the electrification, instrumentation and automation erection works had all started. Most large civil works have also been completed. The mill is expected to start up by the end of the first quarter of 2023.

New nursery nurtures local know-how Durazno, in central Uruguay. The nursery occupies a 100-hectare area, of which 18 hectares are dedicated to production and comprises, amongst other facilities, 4.5 hectares of greenhouses, 2 hectares of outdoor nurseries and a large central working hall. It is here that the majority of the 120 new employees will manually classify the best Eucalyptus dunnii and Eucalyptus grandis seedlings by selecting cuttings from a mother plant. The USD 25 million investment has already created a significant number of jobs during the construction phase. Once operational, this state-of-the-art UPM is starting the operations of its third tree nursery in Sarandí del Yí, communities. As in UPM’s two existing nurseries, women will make up around 60% of the workforce. In April UPM, the UTU university (La Universidad del Trabajo del Uruguay) and the Benigno Paiva Institute completed training courses in nursery work for 200 people from the region. Training was open to all and free of charge – and attendance exceeded all expectations. The objective was to learn about various nursery tasks during 60 hours of theoretical and practical training at the facilities of UTU and the Institute in Sarandí del Yí. These courses are an example of UPM’s aim to strengthen local capabilities and enhance the employability of people from rural communities. nursery will become a source of development for surrounding

Virtual showcase of Paso de los Toros now open You can now take a tour around the pulp mill site, forest plantations, surrounding community and port terminal by entering our virtual experience. Did you know that after the start-up of the mill, some 500 trucks loaded with eucalyptus logs will enter the Paso de los Toros mill gate every day to keep the mill running? Visit upmpulpexperience.com to find out more about this and many more facts.

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OUTLOOK

PULP IS PRIMED FOR THE BIG TIME

From sustainability issues to hygiene habits, market pulp is making advances across the board.

TEXT: SAMI ANTEROINEN PHOTOS: UPM, AFRY

The global market for pulp is positively buzzing. Engineering and consulting company AFRY expects considerable growth in the global demand for market pulp – BSKP, BHKP, UKP, fluff, mechanical pulp and dissolving pulps – during the next decade or so. Global demand was 78 million tonnes in 2020 and that is expected to reach 108 million tonnes by 2035. “Most of the growth is expected to come from China – about 15 million tonnes – but the rest of Asia, Europe and North America, as well as other developing economies, are all growing their demand for market pulp,” says João Cordeiro , Head of global Pulp & Paper business, Process Industries Division at AFRY. Tomi Amberla , Director at AFRY Management Consulting, points out that the growth in pulp demand is riding on global megatrends, such as sustainability, increasing disposable incomes and population growth. “All these megatrends are very much in line with the pulp demand prospects.”

HYGIENE TRENDS CHANGING GLOBALLY

A big part of the growth is driven by the demand for hygiene and tissue products – for example, as the Asian middle class keeps growing, local families are adopting Western hygiene patterns and pushing consumption. According to Cordeiro, many people in Asia are now starting to use toilet papers, paper towels, napkins and facial tissues for the first time in their lives. “If you look at Finland or the USA, one person uses about 20 kg of hygiene products per year. In countries like China and, say, Brazil, that consumption is only 5–8 kg a year,” Cordeiro offers as comparison. Nevertheless, the hygiene and tissue segment is growing in Western countries as well, since the industry is very active in launching new products and the population is ageing. “Fluff pulp is needed for older consumers with issues of incontinence, for example,” says Cordeiro.

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João Cordeiro

Tomi Amberla

DROP IN PRINT MEDIA NOT SIGNIFICANT Cordeiro and Amberla see challenges too. For instance, the digitalization of media continues to impact pulp sales, but, as it turns out, the growth in other sectors such as hygiene and tissue and packaging has more than offset the drop. “Now we have a solid foundation to launch new pulp mills,” Amberla says. Amberla talks about the new powerful trend in packag ing where plastic is replaced by fibre-based materials. “There are new fibre-based alternatives being developed for brand owners who want to improve their image by pursuing sustainable packaging,” he says. Cordeiro gives an example: in American schools students’ lunch boxes are made of plastic – but now school boards want to make them fibre-based. “Here’s where virgin fibre is really needed – whenever you have fibre that is in contact with food or needs to look polished, it must be fresh fibre,” he adds.

is at the centre of the so-called bioeconomy. “Pulp mills are turning into biorefineries with new solutions for pulp itself and the various side streams from production,” Cordeiro says. Amberla views pulp production as “an anchor” for an entire ecosystem. While pulp operations form the core, new startups can come in and work on their innovations involving e.g. lignin or nanocellulose. “This way, with an entrepreneurial mindset, it’s possible to make sustainable textile fibres for the fashion industry, for instance.” NEXT STEPS FOR MILLS Looking ahead, the AFRY experts are intrigued by the rise of closed water systems in pulp mills. Cordeiro points out that it is possible to introduce very little fresh water from a local body of water to the process – and instead recycle the water already in the system repeatedly. “These solutions are still in their infancy, but they are coming,” he concludes.

BOOSTING THE BIOECONOMY Cordeiro and Amberla are also of the opinion that pulp

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