Kemira will expand capacity in Uruguay for bleaching chemicals sodium chlorate and hydrogen peroxide to support a new long-term supply agreement with Finnish forest industry company UPM-Kymmene.

“A key element of our Kemira strategy is to grow in pulp and bleaching applications where we have deep rooted global expertise,” commented Kemira’s president, pulp & paper, Kim Poulsen.

Kemira is anticipating investing about $30 million in its bleaching chemicals plants, which are part of the chemical island at UPM’s Fray Bentos site. The agreement includes capacity for the existing mill in Fray Bentos and a new 1.2 million t/y facility under construction in Paso de los Toros.

UPM announced in July 2019 that it would invest $2.7 billion in a eucalyptus pulp mill, which will increase its total output about by 50%. The mill is expected to start up in the second half of 2022 and UPM said environmental permits allow for further capacity expansion.

The company estimates annual global demand for pulp at 3%, driven by consumption of tissue, hygiene, packaging and specialty papers.