Finnpulp starts basic engineering of its forest biorefinery in Kuopio

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Type of post: NEWS IN BRIEF.

More news about the advances of bioproduct mill projects in Finland. And, again, a Chinese company as an active player. By the end of March, the Blog reported on the signing of a letter of intention of investment between Shanying Investment Management Co., Ltd. and Boreal Bioref Oy regarding to the new plant in Kemijärvi (see “Plans for a forest biorefinery in Kemijärvi have moved a step closer to final implementation”). Now, it is the turn of the facility that Finnpulp will build in Kuopio with a total investment is 1.4 billion euros (see press release, 23/4/2018). The company has announced the two key facts that are summarizing below.
Further details about the characteristics of these new plants and other bioproduct mills here: Bioproduct mills – Pillars of the new forest bioeconomy.

1. The basic engineering of the bioproduct mill has started. It will last about one year and will form the basis for the final investment decision by the company.

2. Hengan International became a shareholder of the company. It is listed on the Stock Exchange of Hong Kong and its share of China’s growing personal hygiene product markets is 20% (2016). The 11.7 M€ investment made by Hengan entitles to 36.5% of the share capital. Hengan has a possibility to increase its share of the company up to 49% in the future. At the same time, the previous owners MTK and Grizzly Hill Capitals have raised their investment in Finnpulp. Both parties will have 11.5 % of the company´s ownership.

Figure 1. Share agreement signatures by Hengan International CEO and Finnpulp's Chairman (extracted from the press release)

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