UPM-Biofore-Magazine-2-2019

Biofore in bus iness

TEXT Matti Remes   PHOTOGRAPHY UPM

CUSTOMERS APPLAUD URUGUAY INVESTMENT UPM is embarking on the most ambitious investment in its history by building a new pulp mill in Uruguay. This historic leap is also welcomed as great news among pulp buyers.

L ocated in Paso de los Toros, the new met with Chinese customers who eagerly anticipate the new production facility. “They wish we could accelerate the project pulp mill will significantly increase the volume of UPM’s pulp trade and improve the group’s earning power. In addition, it is a move warmly welcomed by the company’s customers. Bernd Eikens , Executive Vice President at UPMBiorefining, recently and finish it sooner. It’s encouraging to hear that there is already strong demand for the newmill’s products. In this respect, the road is paved for a successful project,” Eikens states. Pulp demand on the up With demand for market pulp estimated to increase by approximately 3% annually, UPM’s customers and their hunger for pulp offer good indication of market prospects in the near future. Demand is driven by increased urbanisation and the growing purchasing power of the middle class, especially in developing economies. These megatrends are increasing the demand for tissue, packaging and speciality papers.

“If you look at some of the Asian countries and China in particular, there is huge growth potential for pulp even though the tissue market has grown substantially. The same applies to Africa and various other countries around the world,” Eikens explains. He also points out that pulp has good market prospects in developed countries too, as wood fibre is a rawmaterial required for the manufacture of various products replacing fossil fuel-based plastic. “As the population ages, demand is growing for fibre-based products such as nappies and other sanitary products.” Excited to grow together The production capacity of the new Paso de los Toros pulp mill will be over 2.1 million tonnes of eucalyptus pulp. This means that UPM’s pulp production capacity will increase by more than 50%. The production facility is scheduled to start up in the second half of 2022. “It is exciting to grow with our customers,” Eikens states. UPM’s investment is well timed, as only a limited amount of new pulp-producing capacity

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08 | UPM BIOFORE BEYOND FOSSILS

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