UPM announces that it's beginning construction of a third production unit at its Changshu mill in China with improved capital efficiency. The new machine will have a an annual capacity to produce 360,000 tonnes of speciality papers and labelling materials.
The Changshu project was first announced August 7, 2012.
"The investment scope has been moderately revised by specifying more focused infrastructure investments as compared to the original scope. Instead of constructing a new power plant, UPM will upgrade existing boilers providing opportunity to consider more environmentally effective fuels or solutions for the mill’s energy supply in the future. The mill also aims at utilizing existing facilities more effectively instead of building new infrastructure”, according to UPM.
We have set ourselves clear targets for focused growth initiatives over the next three years in biofuels, speciality papers in Asia, label materials and pulp production," said Jussi Pesonen, UPM's CEO and President. "With these initiatives we are targeting an additional EUR 200 million EBITDA when in full operation. The return on the Changshu investment is attractive and is expected to bring a significant contribution to our EBITDA growth target."
