Metsä Fibre inaugurates new plant in Kemi, marking largest investment in Finland’s forestry history

The inauguration ceremonies for Metsä Fibre’s new plant in Kemi finally took place after a challenging first year of operation. The factory commenced production last fall and represents the largest investment in Finland’s forestry industry history, totaling over two billion euros. It is also the biggest wood processing facility in the Northern Hemisphere. Finnish President Alexander Stubb delivered a keynote address at the inauguration, following his visits to Kemi and Oulu.

Despite a rocky beginning, including a significant explosion during maintenance that halted operations for three months and cost around 100 million euros, the mood now is positive. Ilkka Hämälä, CEO of Metsä Group, expressed his satisfaction with the completion of the Kemi plant unveiling, emphasizing the ideal weather for the celebration.

The construction phase faced various challenges, including two fatal workplace accidents, protests that disrupted wood transportation, and strikes that forced the plant to shut down in March. However, CEO Ismo Nousiainen remains optimistic about the future, although he acknowledged ongoing difficulties related to wood supply and pricing. He is confident that the plant will be fully operational by the end of the year.

The facility, located just a few kilometers from Kemi’s city center, spans around 70 hectares with significant structures, including a 105-meter chimney. It processes over 80,000 trainloads of wood annually and employs around 250 workers directly, potentially supporting another 2,500 jobs in the value chain. Furthermore, the plant contributes 2.5% of Finland’s total electricity production, operating at a 240% self-sufficiency rate. The company is also exploring new product developments, such as wood-based 3D products and textile fibers, with the potential for more diverse production in the future.