Finland-based Finnpulp Oy has announced that it has begun the basic engineering phase of its planned 1.2 million tonne-per-annum softwood pulp mill in Sorsasalo, Kuopio. In addition, the company has revealed that Hong-Kong listed Hengan International Group Co. Ltd, a Chinese manufacturer of sanitary napkins, diapers, tissue, wet wipes and allied products has taken a stake in the venture.
According to a statement April 23, the basic engineering phase of Finnpulp’s planned softwood bioproduct mill in Kuopio has started and is expected to take 12 months. The mill is planned to be built on the Sorsasalo industrial site in Kuopio, for which the city plan was agreed in September 2016 and came into force in January 2018.
The basic engineering work now starting will form the basis for the final investment decision by the company, due in the first half of next year. If positive, the investment decision will mean construction start of the mill.
In March 2017, the Regional State Administrative Agency granted the environmental permit for Finnpulp’s Kuopio bioproduct plant. According to Finnpulp, the strict terms of the permit may be the tightest ever been set for production plants in Finland or elsewhere. The terms are also stricter than the EU’s best practice requirements for the industry.
Finnpulp says that it takes this as a “positive challenge” and will employ new technology to meet the requirements.
Hengan International takes a significant stake
The company has also revealed that it has increased its owner base – Hengan International Group Co. Ltd, one China’s most significant tissue, and hygiene products manufacturer, became a shareholder of the company. The EUR 11.7 million investment made by Hengan entitles to 36.5 percent of the share capital with an option to increase its share of the company up to 49 percent.
Hong Kong-listed Hengan International has a 20 percent share (2016) of China’s growing personal hygiene product markets with the founder family still responsible for the management of the company, which has been chosen in international forums to amongst the most respected Chinese companies in business management, innovation and taking care of the environment and workforce responsibility.
At the same time with Hengan becoming a new shareholder, the previous owners MTK and Grizzly Hill Capital have raised their investment in Finnpulp. After the issue, both parties will have 11,5 percent of the company´s ownership.
