Pulp mill deal
Boreal Bioref Oy, a new Finnish company, has signed a letter of intent with China’s CAMC Engineering over an investment in a new 780 million pulp mill project. CAMC Engineering would become the majority owner of the new plant in Kemijarvi, northern Finland, which is scheduled to start in 2020 with an annual pulp capacity of around 400,000 tonnes. Most of the pulp is likely to go to China, Boreal said. The paper market continues to decline in Europe, but pulp made from northern spruce and pine has a brighter outlook as it is needed for tissue and packaging board - products seen growing on the back of Chinese demand.