Paper demand in Finland declines

Antro Säilä, Senior Vice President at Finnish Forest Industries Federation. Photo: Markku Björkman

The Finnish paper industry’s situation continued to be challenging in 2013 due to the weak economic situation in Europe and declining demand for graphic papers. In 2013, a total of 10.6 million tonnes of paper and paperboard were produced in Finland. This is one per cent less than in 2012, but bio refineries are generating new business and investments in Finnish pulp and pulp sector.

 

-         Finland lives from its forest industry. Forest industry is vital to more than 50 local communities, 49 pulp, paper and board mills, 200+ sawmills, wood-based panel mills or other wood production units, said Antro Säilä, Senior Vice President at Finnish Forest Industries Federation recently to Pulp and Paper news.

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At the same time he referred to new global trends which drive forest industry renewal at the moment. Digitalization of media and climate change issues in EU and Finland are couple of these deceive trends. There is also increasing global environmental challenges. Scarcity of non-renewable raw materials and growing population and consumption together with ageing of population and urbanization are additional influencing factors.

 

Last year, the production of graphic paper, printing and writing paper as well as newsprint, totalled 6.3 million tonnes, which is a reduction of almost five per cent from 2012 levels. Production of paperboard grades designed for packaging purposes amounted to 2.9 million tonnes, which is almost seven per cent more than in 2012. Pulp production in Finland totalled 7.1 million tonnes, which is almost four cent more than in the previous year. Pulp export deliveries were about 8 per cent higher than in 2012.

 

The wood products industry’s production volume exceeded the 10 million cubic metre mark, totalling 10.1 million cubic metres, which represents a seven per cent increase from the previous year. Exports to countries outside Europe increased, especially to Asia, the Middle East and North Africa.

 

European economic uncertainty affected construction output as well. Demand for wood products fell in Finland and housing construction decreased by about a fifth compared to 2012. High roundwood costs weakened industry’s competitiveness on the international market.

 

Wood raw material-based biorefineries under construction and on the drawing board in Finland

Construction of a biorefinery that will use crude tall oil as a raw material continued in Lappeenranta. The refinery is due to be completed in 2014.

 

Construction of a biorefinery in Kotka began in 2013. The biorefinery will produce lignin, which can be used to replace fossil fuels. The biorefinery is to start production in the first half of 2015.

A biorefinery that will produce wood-based biogas is being planned in Joutseno. If realised, the biorefinery will start up in 2017.

 

Source: Finnish Forest Industries