UPM sees growing demand for kraft lignin solutions.
UPM and North American pulp and paper producer Domtar Paper signed an agreement for UPM to acquire the total annual kraft lignin production of Domtar’s Plymouth Mill in North Carolina, USA. The agreement will increase UPM's supply of kraft lignin by more than 20.000 metric tonnes annually. Part of the supply will be used to complement UPM's existing product portfolio.
"We are very pleased to have agreed this new supply agreement with Domtar. It enables us to expand our lignin business in the growing biochemicals market before the start-up of our Biorefinery in Leuna, Germany,” says Juuso Konttinen, Vice President, UPM Biochemicals.
Demand for sustainable kraft lignin solutions has been increasing steadily, UPM says. Kraft lignin products are used as a renewable alternative to fossil-based products in a growing range of applications, such as lignin-based phenolic resins. They offer high technical performance, with a considerably improved environmental footprint.
UPM is currently building an industrial scale biochemicals refinery in Leuna, Germany, to produce biobased Monoethylene Glycol (BioMEG), Monopropylene Glycol (BioMPG) and industrial sugars as well as renewable functional fillers and lignin from sustainably sourced hardwood.
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