(UPM, Helsinki, Finland, 24 October 2017 at 08:15 EET) – UPM further strengthens its position as the leading plywood manufacturer in Europe. Following successful growth investments in Finland and Estonia over the past few years, UPM expands its Chudovo plywood mill in Russia by investing EUR 50 million. The project will increase the mill's production capacity by 45,000 to 155,000 m3 while also broadening the mill’s product portfolio. In addition to the production capacity growth, a new bio heat boiler will be built at the mill site.
"The expansion of the Chudovo mill is an important step in executing our strategy. Our goal is to further strengthen our leading position in priority end-use segments. New competitive birch plywood capacity improves our ability to respond to growing demand in our key markets, while delivering industry-leading quality and reliability" says Mika Sillanpää, Executive Vice President of UPM Plywood.
The expansion project consists of new plywood production lines including all machinery needed for veneer and plywood manufacturing. The expansion will be primarily realised by using mainly existing facilities, infrastructure and resources. More than 40% of the subcontracting related to the investment will be sourced locally. The expansion is estimated to create roughly 100 new jobs both directly at the mill and indirectly, for example, in wood procurement and logistics.
The new 19 MW bio heat boiler will decrease the consumption of fossil fuels at the mill. Most of the heat energy for the mill will be generated by using biological by-products from plywood production such as bark, chips and dust.
The project is estimated to be completed by the end of 2019. During the expansion production at the mill will continue normally.