The two companies also intend to enter into a long-term wood supply agreement.
Billerud Korsnäs and Viken Skog are joining forces to establish a 200,000 tpy bleached chemi-thermomechanical pulp mill at the former Norske Skog Follum paper mill in Hønefoss, Norway. The mill would cover the increasing need for BCTMP for growing board operations, it is said.
A feasibility study which will explore future pulp and biogas production at the Follum site is expected to be completed during the first half of 2023.
"The Follum mill already has much of the infrastructure needed to establish such a production line and is located in an area with competitive and sustainable wood supply and good transports to Billerud Korsnäs' board mills", the company explained.
As a part of the partnership, Viken Skog and Billerud Korsnäs also intend to enter into a long-term wood supply agreement.
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