The mill site will initially include a 450,000 tonnes per year paperboard machine and pulp capacity of 900 000 tonnes per year, including necessary energy plant and auxiliary facilities.
In a unique set-up, the board and pulp mills will be self-sufficiently integrated with wood supply from 120,000 hectares of self-managed eucalyptus plantations. The ultimate target is to expand the paperboard capacity to 900,000 tonnes at a later stage.
The operations will be managed by an equity joint-venture company established by Stora Enso (85%) and the Guangxi Forestry Group (15%), a state-owned company under the Guangxi provincial government.
The project investment will be approximately €1.6bn. Construction at the industrial site will commence when specific preconditions have been fulfilled, which is expected to be in the second half of 2012.
Stora Enso CEO, Jouko Karvinen, said: “Today we are taking another significant step in transforming Stora Enso into a global renewable materials company. We already have a globally leading position in renewable fibre-based packaging boards.
“We will now invest in a world-class integrated mill based on locally grown renewable materials for the benefit of local Chinese consumers in the fastest growing market. Everything we do will be based on best-in-class technologies, environmental standards and sustainability practices – together with the local partners and communities.”
The investment is subject to regulatory approvals, the signing of final documentation and other customary conditions precedent.
Source: Stora Enso
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