Faced with global oversupply, Stora Enso scraps chemical pulp mill project
(Helsinki, January 19, 2017) With global pulp supply projected to increase, Stora Enso has reportedly scrapped plans for a chemical pulp mill at its Beihai pulp mill site in China, a Reuters news report quoting Stora executives said.
“The supply-demand of the global pulp market has been negatively impacted by new investments in hardwood pulp production. At the same time, we consider the wood costs to supply the potential chemical pulp mill to be too high, which reduces the competitiveness of such a mill,” Chief Executive Karl-Henrik Sundstrom said in a statement. Stora said the decision remains subject to approval by its board, and would not affect other operations at the Beihai mill.
About Stora Enso’s Integrated Consumer Board and Pulp Mill, China
Stora Enso had inaugurated the first phase of its integrated board and pulp mill facility located in Beihai City, Guangxi, China, in June 2016.
Developed with a total investment of €800m ($886m), the project was claimed to be the biggest Nordic direct investment in China and a significant investment made by the company in its history.
First phase of the integrated facility involved the construction of a consumer board mill, which produces liquid packaging board (LPB) cartons and folding box board (FBB) cartons.
The second phase of the project [now suspended] was to have been the construction of a chemical pulp mill, scheduled for completion by the end of 2016. (Source: Reuters via Nasdaq)
Cover Image: Schematic picture of the integrated board and pulp mill facility located in Beihai City, Guangxi, China (courtesy Stora Enso)