UPM will expand production capacities in China in order to strengthen its position in the Asian office papers and label materials segments.
UPM plans to install a new uncoated woodfree specialty paper machine with a production capacity of 360,000 tpy at the company's fine paper mill in Changshu. The new paper machine will produce uncoated woodfree grades and label papers and is scheduled to become operational by the end of 2014.
The total investment volume amounts to RMB3,000m, approximately €390m, including additional infrastructure investments n the Changshu site, says UPM.
According to UPM both label paper and uncoated woodfree papers have a healthy demand outlook in Asia. UPM expects its label paper mix to grow annually by 8%. The annual growth in the "high quality office paper" segment in China is also expected to be at 8%, the company explains.
Changshu fine paper mill employs 600 people. The mill houses two paper machines with an installed capacity of 900,000 tpy of coated and uncoated woodfree paper. UPM also runs a labelstock factory and a R&D centre at the site. The company is currently finalising a 100,000 tpy cut-size sheeting line investment at the Changshu paper mill which should strengthen the mills position in office papers in China, UPM says.
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