Valmet and Metsä Fibre have signed a preliminary agreement for key technology and automation delivery to the planned Kemi bioproduct mill in Finland

Valmet Oyj’s stock exchange release on April 29, 2020 at 11:00 a.m. EET

Valmet and Metsä Fibre, which is part of Metsä Group, have signed a preliminary agreement according to which Valmet will deliver key technology covering all main process islands and automation systems to Metsä Fibre's planned Kemi bioproduct mill in Finland.

The final agreement is subject to Metsä Fibre's investment decision. Metsä Fibre has announced that the readiness for the decision is expected to be reached during autumn 2020. If materialized, the new bioproduct mill would have an annual pulp production capacity of 1.5 million tonnes and in addition produce various other bioproducts. The production of the new mill is scheduled to begin in 2023.

The estimated value of Valmet's anticipated delivery for Metsä Fibre’s planned Kemi bioproduct mill, covering the core equipment supplied by Valmet, is about EUR 350-400 million. The anticipated delivery will have an important employment impact on Valmet and its subcontractors. The employment impact of Valmet's project delivery is expected to be around 800 man years, out of which about 500 man years in Finland.

”We have set high environmental, material and energy efficiency targets for the Kemi bioproduct mill. Valmet has been able to offer us the technology to reach these targets. Our good and long cooperation with Valmet creates a good foundation for a successful execution of this mill project and for the high performance of the bioproduct mill throughout its whole lifecycle,” says Ismo Nousiainen, CEO of Metsä Fibre.  

“During our long cooperation with Metsä Group and thanks to our successful innovative technology delivery to the Äänekoski bioproduct mill, we have been able to build a strong relationship that has formed an excellent basis for our cooperation also in this new planned project. To be selected as the partner for the entire bioproduct mill technology delivery including also the needed automation is a good sign of Valmet's competitiveness, reliability and technological innovativeness," says Pasi Laine, President and CEO of Valmet.

Details about Valmet's technology delivery to Metsä Fibre Kemi bioproduct mill

According to the preliminary agreement, Valmet will deliver the full production process from wood handling to ready pulp bales designed to produce either softwood or hardwood pulp, as well as automation system for the whole mill including features from Valmet’s Industrial Internet offering. Additionally, the project would include a smaller rebuild of the existing pulp mill.

“With a complete mill delivery, Valmet can offer to Metsä Fibre the full benefits of our innovative full scope offering consisting of process technology, automation and services. With Valmet’s Industrial Internet features, expert support can be provided to the Kemi bioproduct mill both onsite and remotely. The mill will feature leading process technology and the most advanced automation systems including the latest developments in our continuous cooking technology, to reach excellent energy efficiency, high end-product quality and high environmental performance. In addition, with our wash press technology, we provide a solution to manage low effluent flows and COD (chemical oxygen demand) levels,” says Bertel Karlstedt, Pulp and Energy Business Line President from Valmet.

Valmet's delivery would include engineering, procurement, supply and construction management of the wood handling, cooking and fiber line, pulp drying and baling, non-condensable gases (NCG) handling solution, evaporation, recovery boiler, recausticizing, lime kiln, biomass dryer and gasifier. In addition, Valmet would deliver the sulfuric acid plant and rebuild of the existing fiber line and power boiler with an extended scope of supply including construction. The integrated Sulfuric Acid Plant, which produces sulfuric acid from mill’s own odorous gases, was originally developed together with Metsä Fibre for the Äänekoski bioproduct mill.

The automation delivery would include industrial control system featuring Valmet DNA control system, plant information management system, advanced process controls (APC), analyzers and online measurements, and dedicated systems for pulp dryer. The Valmet Industrial Internet features include simulators and optimizers for selected process islands as well as Valmet Performance Center connectivity.

Information about Metsä Fibre

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. Currently employing approximately 1,300 people, the company’s sales in 2019 totaled EUR 2.2 billion. Metsä Fibre is part of Metsä Group.

Further information, please contact:

Bertel Karlstedt, Business Line President, Pulp & Energy, Valmet, tel. +358 10 672 0000
Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020


VALMET

Kari Saarinen
CFO

Pekka Rouhiainen
Director, Investor Relations

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet’s strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers’ processes and enhance the effective utilization of raw materials and energy.

Valmet’s net sales in 2019 were approximately EUR 3.5 billion. Our more than 13,000 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day. Valmet’s head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

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