UPM-Biofore-Magazine-1-2015-EN

UPM’s new business focuses in particular on biofuels, biochemicals and biocomposites. Its progress in these fields is based on solid exper- tise in sourcing and refining forest biomass. “The brand-new biorefinery in Lappeenranta marks the first crucial investment. We can use this invest- ment as a basis for judging the poten- tial scope for future long-termdevel- opment of this business in a suitable market segment.” The company is also building a new production unit for manufacturing label materials and speciality papers at the Changshumill in China. Stock production of self-adhesive labels will aim to capture consistent growth in emerging markets and at developing products that deliver a high level of added value. Capital ideas Thanks to its wisely chosen strategy, UPM’s cash flow has remained steady and the company has secured capital to fund its top-priority projects, notes Ståhlberg. Sufficient funding is avail- able both in risk financing and from banks and other financing institu- tions. “From a business viewpoint, the challenges of investment are more related to poor levels of economic growth and demand. When economic growth is sluggish, new invest- ment projects also fail to take off. At present, minor investments in devel- opment are enough to meet demand.” Low investment rates in Europe

A new unit to manufacture label materials and speciality papers is under construction at the Changshu mill in China.

30 | BIOFORE

Kari Ståhlberg

Made with FlippingBook Annual report