Metsä Group Celebrates Grand Opening of Pioneering Bioproduct Factory in Kemi

Kemi Bioproduct Mill. Source: Metsä Group

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Metsä Group officially inaugurated its groundbreaking bioproduct factory in Kemi on October 23, 2024.

The ceremony was presided over by President Alexander Stubb, alongside Jussi Linnaranta, Chairman of the Board of Metsäliitto Cooperative, and Ilkka Hämälä, CEO of Metsä Group.

intl2 24oct24 1From left to right: Ilkka Hämälä (CEO of Metsä Group), Alexander Stubb (President of the Republic), Jussi Linnaranta (Chairman of the Board of Metsäliitto Cooperative)

This €2 billion investment represents the largest single project undertaken by Metsä Group in its history. The state-of-the-art facility signifies a major leap forward in sustainable wood-based production, exceeding environmental targets and bolstering Finland's economic standing.

The Kemi bioproduct factory is projected to boost Finland's annual exports by €500 million and generate a positive impact on national income of a similar amount. Direct employment at the facility stands at 250 people, with a total of 500 jobs created across the entire factory area. The project also supports an additional 2,500 jobs throughout Finland's wood procurement sector, showcasing the far-reaching economic benefits of the initiative.

Metsä Group's commitment to environmental responsibility is evident in the bioproduct factory's design. Operating entirely without fossil fuels, the facility surpasses the emission limits set for its predecessor, all while doubling production capacity. Furthermore, the plant generates 2 terawatt hours of electricity annually, enough to power 100,000 electrically heated homes.

"When there is an opportunity to implement a development project like a bioproduct factory, the target level must be raised," declared Ilkka Hämälä, CEO of Metsä Group. "The bar must be set even higher than before." Hämälä emphasized how the Kemi and Äänekoski bioproduct factories represent a model for the future, paving the way for achieving the forest industry's environmental and climate goals.

The Kemi bioproduct factory forms the core of a vibrant industrial ecosystem, utilizing cutting-edge technology to maximize resource utilization. Beyond producing 1.5 million tons of coniferous and birch pulp, the facility generates a range of byproducts including pine oil, turpentine, and bioenergy. Additional products like product gas, pellets, sulfuric acid, heat, and steam are also produced for sale or internal use. The site holds potential for the development of further novel products in the future.

The factory's journey hasn't been without hurdles. After an initial start in September 2023, production was interrupted by an explosion in the evaporator. However, operations resumed in June 2024, and the facility now enters its second year of operation from a strong position.

Metsä Group is rooted in the Finnish forest, with its parent company, Metsäliitto Cooperative, owned by over 90,000 forest owners. The company produces wood products, pulp, and paper used in everyday life worldwide, focusing on sustainable, innovative forestry. In 2023, Metsä Group reported €6.1 billion in turnover and employs around 9,500 people.