KaiCell's Paltamo Pulp Mill Venture Receives Court Ratified Environmental Permit

KaiCell Fibers proposed 600,000 tpy pulp mill will be built in Paltamo, Finland.

April 1, 2024 - Finland's Supreme Administrative Court on March 27 declined to hear the remaining appeals that were filed against the Regional State Administrative Agency's July 2020 decision to approve KaiCell Fibers Ltd's environmental permit application for a 600,000 tonnes per year softwood pulp mill in Paltamo.

The lower court's decision, endorsing the permit with minor modifications, is thus upheld and the permit is valid.

"Considering the really strong local support our project enjoys, and the substantial economic benefits the mill would bring to the whole Kainuu region, it has been frustrating to go through such a long legal process despite having met all requirements set by Finland's stringent environmental regulatory framework, and been approved by the responsible state authority," said Hannu Heikkinen, CEO of KaiCell.

"On the positive side, the delay has highlighted that Paltamo is indeed an optimal location for our mill, both in terms of Finland's post-Ukraine-war fibre balance, and rare worldwide opportunities to build new capacity. We are also more convinced than ever that global demand for Nordic softwood pulp will remain on an upward trajectory, making a low-cost producer like KaiCell very profitable," Heikkinen added.

Board Chairman Eero Suutari noted, "Having deliberately kept spending down during the permit process, we are in solid financial shape and can proceed in an orderly and focused manner to negotiate such corporate partnerships and finance arrangements required to make the Paltamo mill a reality."

About the KaiCell Project

The proposed KaiCell pulp mill's principal product will be chemical sulphate pulp — NBSK (Northern Bleached Softwood Kraft) — produced from softwood (pine and spruce). A smaller portion (about 15%) will be chemical pulp from hardwood (birch), also known as BHKP (Bleached Hardwood Kraft Pulp). Both grades will be produced from the region's local fiber wood on a single pulping line.

The pulp mill's annual capacity is projected to be 600,000 ADMT (air dried metric tonnes).

SOURCE: KaiCell Fibers Ltd