UPM to set up North America's largest paper machine in Minnesota

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Forest product company UPM plans to build North America's largest paper machine in Minnesota, as soon as the necessary environmental permits have been obtained.
      The company expects the American authorities to grant the relevant permits by the end of the year.
      If everything goes as planned, the new publication paper machine will commence operation towards the end of 2008. The investment is worth almost EUR 500 million.
     
The new paper machine will be added as an extension to the Blandin Paper Mill in Grand Rapids, Minnesota, purchased by UPM in 1997 for EUR 570 million.
      UPM has already shut down two of the mill's oldest paper machines, and once the new machine is introduced a third one will be switched off.
      From the technological and production capacity point of view, UPM's new machine is superior when set against its North American competitors.
      The equipment's capacity will be in the region of 450,000 tons of coated groundwood paper per year, from a production line that is 11 metres wide and produces paper at a speed of 1,800 metres per minute.
      These values are twice as high as those of the most modern American machines operating today.
     
According to Jyrki Ovaska, President of UPM's Magazine Paper Division, before the final decision is made to set up the new machine, its environmental impact on waterways and air quality has to be looked into.
      Another essential question is if the local forest reserves can handle the increased timber harvesting. The area's dominating tree species is aspen.
      "Compared to the original situation, the increase to the area's timber harvesting is going to be marginal", Ovaska says.
      He believes there is a market for the increased paper production brought on by the new machine.
      "With our in-depth knowledge of the market, we believe we will have enough clients in the future as well."
      In the United States, construction work costs more than in Europe. "We will have to verify if this really is the case, and if we then can reduce the expenses by utilising our own project knowledge and organisation", said Ovaska.


Links:
  UPM-Kymmene
  UPM/Blandin Paper Mill, Grand Rapids, Minnesota

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