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Stora Enso shelves plans for Beihai hardwood pulp mill

Biomaterials Business Area, Stora Enso's Veracel Pulp Mill in Brazil with surrounding eucalyptus plantations.
Photo: Veracel BEK pulp mill, Source: Stora Enso
19 Jan 2017 − 

Stora Enso is reconsidering its plans to build a 900,000 tpy eucalyptus pulp mill at the Beihai production site in the Chinese Province of Guangxi.

The company informed it started "a process with the Regional Government of Guangxi to remove the authorisation for the hardwood chemical pulp mill from its investment permit." The final decision by the company's board of directors on the Beihai pulp mill project is still pending, according to Stora Enso

Stora Enso explains the change in the Beihai investment project with new investments in hardwood pulp segment which are having a negative impact on the supply-demand situation on the global pulp market. Furthermore, the company considers wood supply costs for the new pulp mill to be too high, reducing the competitiveness of the mill.

This decision would reportedly not affect the company's operations at Beihai mill, which cover the 450,000 tpy consumer board machine, a polyethylene extrusion (PE) coating line and a 220,000 tpy bleached chemi-thermomechanical pulp (BCTMP) plant. Sourcing the chemical pulp to Beihai board mill from the market or utilising the company's current captive global hardwood supply was a viable option,  said Stora Enso’s CEO Karl-Henrik Sundström.

Besides the 900,000 tpy bleached eucalyptus kraft (BEK) pulp mill, Stora Enso’s current investment permit for Beihai site also includes a second 450,000 tpy virgin-fibre based board machine. The group had not made any decisions regarding the potential expansion of board production capacities, Stora Enso said.

Find the entire article and any associated background information in EUWID Pulp and Paper 4/2017.

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