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Metsä Fibre, a leading producer of bioproducts, biochemicals and bioenergy has decided to invest EUR 1.6 billion to build a new bioproduct mill in Kemi, Finland. It is the largest investment ever made by the Finnish forest industry in Finland. The construction phase will take approximately two and a half years, and the mill will be completed during the third quarter of 2023.
Editorial office / Kemi

In addition to the Kemi bioproduct mill, Metsä Group is currently building the world’s most modern sawmill in Rauma, Finland. With these investments, Metsä Group meets the needs of forest owners and its customers even better than before across the entire forest industry value chain and will play a significant role in combating climate change.


The Kemi bioproduct mill will use approximately 7.6 million cubic metres of pulpwood from sustainably managed forests a year, which is 4.5 million cubic metres more than the current pulp mill in Kemi. Wood is planned to be procured mainly from Finland, and in the future also from Sweden.

Metsä Group wants to be a forerunner in responsible wood procurement. It takes various measures to enhance the growth and carbon sequestration of forests, safeguards the biodiversity of forest nature and improves water protection associated with forestry work.

Economic effects

Kemi bioproduct mill will increase the annual value of Finland’s exports by approximately EUR 0.5 billion, and the positive annual income effect in Finland from wood sales and domestic purchases will also be approximately EUR 0.5 billion. The new bioproduct mill will secure the 250 jobs in the existing pulp mill in Kemi for decades to come. All in all, around 500 persons work in the Metsä Group’s Kemi mill site.

A significant part of the pulp produced at the Kemi bioproduct mill is processed into high-quality linerboard at the mill site at Metsä Board’s mill. In this connection, Metsä Board has decided to increase the capacity of the linerboard mill. The Kemi bioproduct mill will create around 1,500 new jobs across its entire direct value chain in Finland, most of them in wood sourcing. All in all, approximately 2,500 people will work in the direct value chain of the Kemi bioproduct mill in Finland.

Unique mill concept

“The Kemi bioproduct mill is a global leader in environmental, energy and material efficiency. The mill will also create the basis for development of a local industrial ecosystem with new bioproducts and partnerships,” says Ismo Nousiainen, CEO of Metsä Fibre. The renewable wood raw material and production side streams are both used in full as different bioproducts.”No fossil fuels will be needed in production, and renewable energy in the form of electricity, wood-based fuels and heat will be sold from the mill to external customers.”

The new mill will replace the current pulp mill in Kemi, which has reached the end of its lifespan. It will produce some 1.5 million tonnes of softwood and hardwood pulp per year, as well as many other bioproducts. It will also produce 2.0 TWh of renewable electricity per year, which equals to roughly 2,5 percent of Finnish total electricity production and together with Äänekoski bioproduct mill roughly 5 per cent.

Image: Metsä Fibre