Metsa Fibre to begin project engineering for its bioproduct mill in August 2020
June 24, 2020
FINLAND (News release) -- The project engineering for Metsä Fibre's bioproduct mill project in Kemi, Finland will start at the beginning of August 2020. This means the detailed engineering of the mill's technology, civil construction, MEI installations and commissioning, as well as preparation for the project's construction phase. The engineering work will be carried out in cooperation with the selected four main implementation partners: Valmet, ABB, AFRY and Fimpec.
Metsä Fibre, part of Metsä Group, has signed preliminary contracts that are conditional for the investment decision. Contract with Valmet covers the main equipment and automation of the mill and with ABB the electrical systems. The preliminary contract with AFRY includes project management and engineering services, and the preliminary agreement with Fimpec covers the construction services of the mill. From the beginning of August, more than 400 people, including around 50 Metsä Group employees, will be working in the project engineering organisation. Up until now, around 40 Metsä Group and Botnia Mill Service employees have been involved in the bioproduct mill's pre-engineering.
"The Kemi bioproduct mill project is proceeding as planned and according the schedule, we will start project engineering at the beginning of August. This is an important step towards the investment decision and construction of the mill. For example, the project organisation expand as required," says Jari-Pekka Johansson, Project Director at Metsä Fibre.
Prerequisites for the Euro 1.5 billion investment decision are estimated to be fulfilled in the autumn of 2020 after the environmental permit process is completed. In addition to the environmental permit process, the bioproduct mill project is currently being progressed through financing negotiations and the development of the logistics needed for the new mill. Second-phase preparatory work is already ongoing in the mill area in Kemi to ensure the smooth start of the construction phase of the bioproduct mill immediately after the investment decision has been made. The second-phase preparatory work in the mill area includes for example test pilings.
Metsä Fibre is a leading producer of bioproducts, biochemicals and bioenergy. Metsä Fibre is the world's leading producer of bleached softwood pulp and a major producer of sawn timber. Metsä Fibre is part of Metsä Group.