SunSirs: Finland KaiCell's Annual Production of 600,000 tons of Chemical Pulp Plant is Expected to Resume Construction

The latest progress on the annual production of 600,000 tons of chemical pulp by KaiCell in Finland has been announced. The highest administrative department in Finland has refused to hear other appeals against the decision of the regional national administrative agency in July 2020 to approve the environmental permit application for KaiCell Fibers Ltd's 600,000 ton chemical pulp plant in Paltamo. Therefore, with slight modifications, the decision of the lower level department to approve the permit is maintained, and the environmental permit for the project will continue to be valid. This favorable result has given legal effect to the license and opened the way for financing the factory project.

KaiCell CEO Hannu Heikkinen commented, "Considering the strong local support for our project and the enormous economic benefits that the factory will bring to the entire Kainuu region, despite meeting all regulatory requirements, it still has to go through such a lengthy legal process, which is disappointing to comply with Finland's strict environmental regulatory framework and has been approved by national authorities.".

On the positive side, this delay highlights that Paltamo is indeed the best location for our factory, whether from the perspective of Finnish fiber balance after the Ukraine incident or the rare opportunity to build new production capacity globally. We are also more convinced that global demand for Nordic coniferous wood pulp will continue to rise, making low-cost producers like KaiCell very profitable

When discussing future development directions, the board of directors Eero Suutari said, "We deliberately control expenses during the licensing process, and our financial situation is stable. We can negotiate such corporate partnerships and financial arrangements in an orderly and centralized manner, making the Paltamo factory a reality."

The Paltamo factory is expected to have a total investment of over 1 billion euros and can produce 600,000 tons of chemical pulp annually, of which 85% is NBSK and 15% is BHKP.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.