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Stora Enso has initiated a process with the Government of Guangxi, China with the target to remove the authorisation for the hardwood chemical pulp mill from its investment permit, reported PaperAge.
Stora Enso has previously announced that it considers building a chemical pulp mill at its Beihai Mill site, once the consumer board machine is up and running. The final decision is yet to come in.
“The market demand for high-quality food packaging board will continue to grow in China and neighbouring Asian markets. Our investment in a consumer board mill in Beihai is ideally placed to serve this market,” said Stora Enso’s CEO Karl-Henrik Sundström.
“Meanwhile, the supply-demand of the global pulp market has been negatively impacted by new investments in hardwood pulp production. At the same time, we consider the wood costs to supply the potential chemical pulp mill to be too high, which reduces the competitiveness of such    a mill. Therefore, sourcing   the chemical pulp to Beihai Mill from the market or   utilising our current captive global hardwood supply is a viable option for us,” Sundström said.