UPM Pulp Matters 1/2023

IN FOCUS

”The North American market gives credit to eucalyptus fibre and its superior technical properties in certain end-use areas,” says Tomas Wiklund.

CONQUERING NEW MARKETS

The Paso de los Toros mill will increase UPM’s pulp capacity by more than 50%. China remains the largest market, but UPM is also looking for success in North America.

TEXT: DAN RIDER PHOTOS: UPM

“Our customers have been asking us when they can start receiving pulp from Paso de los Toros for some time already. The mill started operations in April and we will need some time to build up our inventory, after which it will be shipped. Customers should expect our product physically in the market in the third quarter of 2023,” says Tomas Wiklund , Senior Vice President, Sales, UPM Pulp. UPM Pulp has successfully established itself as a reliable player in the Asia-Pacific region and Europe during the last decade, and is now using this experience, as well as the increased capacity available from the new Paso de los Toros mill in central Uruguay, to begin to develop its third strategic market – North America – during 2023. CHINA FIRST China remains the world’s largest pulp market. That said, there are now some concerns growing about the direction that China is moving, and whether it is going to continue to be the engine of growth for industries in the world. UPM, however, continues to have a strong belief that it is a good

market and there is going to be growth there, but probably not to the same extent as has been seen in recent decades. “It is becoming more and more important to choose who you work with in China. Even if growth isn’t the same massive annual growth percentages as previously, the actual volumes in demand and output are going to continue to increase. In addition, China is moving in a ‘quantity to quality’ direction, which also has a direct impact on the line of business that we are in. We want to work with the large, well-established, and financially sound Chinese producers. There continues to be more growth in China in comparison to other markets, so that market can more easily absorb larger quantities of new pulp,” notes Wiklund. BREAKING INTO NORTH AMERICA With the significant addition of Paso de Los Toros, UPM is determined to seek success in North America as well. Previously UPM had not delivered to the market, but rather built a customer base in Europe and Asia, with a clear growth focus on China. But with the additional 2.1 million tonnes of

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PUL P MAT TERS 01/2023