As a forest owner, I wouldn’t be overly concerned about this UPM situation. Let’s hypothetically assume that the new JV would close the Kirkniemi paper mill, meaning a capacity reduction of 575,000 tons per year. This multiplied by 3, meaning a reduction in raw wood demand of 1,725,000 cubic meters of wood per year. However, that’s only about 5% of fiberwood consumption in Finland. Of course, it would affect the price of raw wood, but less than the imported wood brought from Russia back in the day.
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