UPM grows in China and in the fast developing label materials segment
UPM takes further steps to reshape its business portfolio and expands in profitable growth businesses in Asia. The company will increase its presence in the attractive Asian paper segments and strengthen its position in the label materials value chain by building a new woodfree speciality paper machine at its Changshu mill in China.
The new machine is an uncoated woodfree speciality machine capable of producing up to 360,000 tonnes of uncoated woodfree grades and high quality label papers. The machine will start up by the end of 2014. The investment will also include future-oriented infrastructure investments in the Changshu site. The total investment cost is CNY 3,000 million (EUR 390 million). In addition, UPM Changshu is finalising a 100,000 tonnes cut-size sheeting line investment which strengthens the Group’s leading position in office paper grades in China.
Both label paper and uncoated woodfree papers have a healthy demand outlook in Asia. The annual growth of UPM’s label paper mix is expected to be 8 % in Asia and 4 % globally. In uncoated woodfree grades, UPM focuses on high quality office paper, where the Chinese market is expected to grow by 8 % annually.
The existing site accommodates two paper machiens with two sheeting lines, a labelstock factory, power pland and a jetty. It has been well-recognized by the local Chinese state authorities for its sustainable production,l innovative and low-emission technologies. The expansion will be built in the similar standard using best available technology.