- The investment is valued at €1.6 billion and will be completed by Q3 2023.
- The mill will produce 1.5 million tonnes of pulp and 2.0 TWh of renewable electricity annually.
- The project will create 1,500 new jobs and boost Finland's exports by €0.5 billion annually.
- Main partners include Valmet, ABB, AFRY, and Fimpec.
Investment and Timeline
Metsä Fibre, part of Metsä Group, has committed €1.6 billion to build a new bioproduct mill in Kemi, Finland. This is the largest investment in the Finnish forest industry to date. The construction phase will take approximately two and a half years, with completion expected in the third quarter of 2023.
Economic Impact
The Kemi bioproduct mill will increase Finland’s annual exports by approximately €0.5 billion. It will also generate a positive annual income effect of €0.5 billion from wood sales and domestic purchases. The project will secure 250 existing jobs and create around 1,500 new jobs across its direct value chain, with a total of approximately 2,500 people working in the mill's direct value chain in Finland.
Production and Sustainability
The mill will produce 1.5 million tonnes of softwood and hardwood pulp per year, along with other bioproducts. It will also generate 2.0 TWh of renewable electricity annually, accounting for roughly 2.5% of Finland's total electricity production. The mill will use approximately 7.6 million cubic meters of pulpwood annually, sourced mainly from sustainably managed forests in Finland and Sweden.
Technological and Environmental Standards
The Kemi bioproduct mill will be built using the best available technology, meeting and exceeding EU BREF requirements. Despite increased production, the new mill will stay below the emission limits of the current environmental permit. The Regional State Administrative Agency for Northern Finland has granted the necessary environmental and water supply permits.
Project Partners and Financing
Main partners for the construction project include Valmet, ABB, AFRY, and Fimpec. The project will be implemented as buyer-driven subcontracting, allowing smaller companies to participate. Of the total €1.6 billion investment, 40% will be financed with domestic equity and 60% with debt financing from various sources, including Finnvera, EKN, the European Investment Bank, and commercial banks.
