UPM’s Pesonen: Media gives distorted image of forest industry

“Bio-fuel will help industry avert death spiral”

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The Finnish media has given an erroneous image of the Finnish forest industry, says Jussi Pesonen, CEO of the pulp and paper company UPM.
      Speaking at a panel discussion at the Technology Academy Foundation (TAF) on Monday, Pesonen said that the forest sector is not in a death spiral of any kind, and that it is developing into a “bio-forest industry”.
      “Finland still has 52 pulp, paper, and paperboard factories”, Pesonen said.
     
Pesonen pointed out that UPM started its own structural change five years ago, which is significantly before the present economic decline. The company has shut down 1.8 million tonnes of unprofitable capacity.
      UPM has no need for further closures of its paper and pulp mills, and it plans to start building new production. At present, the company is considering locations for a factory that would manufacture biological oil. Alternatives include Rauma and Kouvola.
      According to Pesonen, the investment into a plant manufacturing biological fuels is the same as that of setting up one paper machine in a paper mill. “Finland is an appropriate location, but the wood raw material must be available at a competitive price.
     
UPM plans to manufacture fuel out of the byproducts of wood acquisition, and not from wood that could be used for the manufacture of paper or pulp.
      “It is best to refine roundwood as far as possible. It is not viable to burn it”, Pesonen said.
     
Pesonen hopes for extensive and binding agreements at the Copehnagen Climate Conference. “They must offer the same possibilities for competition for all countries.”>


Previously in HS International Edition:
  UPM wants forests for lease in Finland (8.9.2009)
  Forest money is flowing away from Finland (21.8.2009)

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