Joensuu 17.9.2015

Barents Forest Forum

Heikki Nivala

Customer advisor, corporate clients

Finnish Forest Centre

Investments and infrastructure

• Railway section Rovaniemi – Kemijärvi, electrification and

renovation

• Railway section Kemijärvi station – Patokangas,

refurbishment and electrification

• Patokangas raw wood terminal (ore)

• Lappi Timber sawmill

• Keitele Group glued laminated timber factory

• State finance for Sokli road 140 mil. €, 40 mil. € in 2016

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Investments in forest industry

require:

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•Wood raw material

•Functional infrastructure

•Functional permitting procedures

•Appropriate area

•Committed employees, positive overall

atmosphere

•Globally competitive investment

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Wood raw material,

consumption and growth

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Poistuma keskimäärin 3581 911 1116 5607

Kasvu 7556 1832 2023 11411

Mänty Kuusi Lehtipuu Yhteensä

Puuston vuotuinen kasvu ja poistuma

- viiden viimeisen vuoden hakkuut ja luontainen poistuma 46 %

kokonaiskasvusta ja 57 % puuntuotannon maan kasvusta (LUKE)

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•In Lapland and Northeast Finland

supply and demand of wood are not

balanced

•Especially insufficient demand for

pulpwood

•Thinnings in young forests lag behind

the expected objectives

•Competitive price, globally also

stumpage price

Wood raw material

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•Transportation of raw material

•Transportation of produced goods

•Road network is sufficient, need for

restoration

•Electrified railway to the area, ready in

2016

•Terminal operation, other operators

Functional infrastructure

Functional permitting

procedures •Good cooperation between authorities

•Positive experience in Kemijärvi

•Well functioning examples in Finland

•No corruption

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•Historical and current industrial activity

•A new development plan for the area

•The area is mainly owned by the city

•Clean water is provided

Appropriate area

Committed employees,

positive overall atmosphere

•Historically good industrial tradition in

Kemijärvi

•Labor force sufficiently available

•Effective education systems

•Good cooperation on local, regional

and national levels

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Globally competitive

investments

•Raw material costs

•Investment costs

•Labour costs

•Transportation costs

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Chemical forest industry plants

in Finland

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Suomussalmi

Paltamo

Pietarsaari

Äänekoski

Rauma

Uimaharju

Simpele

Kyröskoski

Joutseno

Kirkniemi

Varkaus

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Innovative biorefinery

• Flexible energy self-sufficient biorefinery with versatile

product distribution

• Softwood pulp

• Dissolving pulp

• MCC

• C5 and C6 sugars

• Raw material: softwood Pinus Silvestris

• Raw materials consumption: 2,3 mil. m3 competitively

priced at the factory gate

• Preliminary investment cost 800 mil. €

• Employment impact during the operation period clearly

>1000 person-years

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22.9.2015 Suomen metsäkeskus 15

•Thank you for your attention!