UPM-Biofore-Magazine-2-2017-ENG

I N T I M E

New German biorefinery in the pipeline

Investment agreement for a possible new pulp mill in Uruguay In November, UPM and the Government of Uruguay signed an investment agreement, which outlines the local prerequisites for a potential pulp mill investment. The site of the mill would be close to the city of Paso de los Toros, in central Uruguay. The agreement details the roles, commitments and timeline for both parties as well as the relevant items to be agreed prior to the final investment decision. “Robust infrastructure is elemental for industrial development. The Government of Uruguay is stating their serious intent with this agreement and timeline. The agreement sets the foundation for UPM’s planning of a state-of-the-art pulp mill investment,” says Jaakko Sarantola , UPM’s Senior Vice President, Uruguay Development.

UPM is looking to strengthen its position as Europe’s leading plywood producer by expanding its Chudovo plywood mill in Russia. The EUR 50 million investment will expand both the mill’s production capacity and product range. A new biothermal power plant will be built at the mill site, reducing the need for fossil fuels. The project is scheduled for completion by the end of 2019. UPM will further enhance the efficiency of its Kaukas pulp mill in Lappeenranta, Finland, by investing EUR 30 million in the renewal of selected stages of the production process. The demand for pulp continues to grow, particularly in personal care products, packaging and other consumer products. The modernised sections of the mill will be operational in spring 2018. UPM is planning to construct an industrial-scale biorefinery at the Frankfurt-Höchst industrial park in Germany. The biorefinery’s annual production capacity would be 150,000 tonnes of bio- monoethylene glycol (bMEG), bio-monopropylene glycol (bMPG) and lignin produced from wood- based raw material and sourced from sustainably managed deciduous forests in Central Europe. Bio-monoethylene glycol can be used in textiles, bottles, packaging materials and de-icing fluids. Uses for bio-monopropylene glycol include pharmaceutical products, cosmetics and detergents. Lignin is a component in resins that are used as binders in wood-based products and in plastics, foams and coating materials. The commercial and technical preliminary planning phase is estimated to take approximately 12 months. The project is based on more than five years of technological R&D work and piloting.

UPM INVESTS IN FINLAND AND RUSSIA

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