Finland's Boreal Bioref signs first off-take agreement with Chinese paper producer Huatai Group for future production of bio-products

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Finland's Boreal Bioref signs first off-take agreement with Chinese paper producer Huatai Group for future production of bio-products

July 04, 2017 - 08:19

KEMIJÄRVI, Finland, July 4, 2017 (Press Release) -Boreal Bioref Ltd., represented by its Chairman and CEO, Mr. Heikki Nivala, and its financing adviser, Mr. Fredrik Creutz, participated in Prime Minister Juha Sipilä’s delegation, during his visit to China 26-30 June 2017.

Boreal Bioref’s representatives also continued negotiations on financing, planning and construction with its EPC partner, its potential financing banks and other investors. In China, the bio-refinery project in Kemijärvi is a well-known investment opportunity, and it is recognised as important for both countries.

During the visit, Boreal Bioref also signed its first off-take agreement with Huatai Group, a leading Chinese paper production company, for the future production of bio-products. The agreement was signed by Mr. Nivala and Huatai Group’s chairman, Mr. Li Jianhua. Chairman Li is not only the chairman of Huatai Group, but also a prominent leader in the broader Chinese paper industry and the Communist Party of China. He is currently the Chairman and the Vice Chairman of the Chinese Paper Industry Chamber of Commerce and the China Paper Association, respectively. Furthermore, he is a Secretary of the Party Committee and he was a Deputy of the 9th, 10th, 11th and 12th National People’s Congresses. Mr Li has visited Finland several times and has established similar off-take agreements with Finnish pulp producers in the past.

The signed off-take agreement is meaningful in scope and size and it is a clear indication of the potential demand for Boreal Bioref’s planned production capacity. Chairman Li views the agreement as mutually beneficial to both parties and it forms the basis for a long-term cooperation.

Prime Minister Sipilä personally met with the management teams of China CAMC Engineering Co., Ltd. (CAMCE) and other business partners of Boreal Bioref. During his meetings, the Prime Minister discussed the government’s targets for the bio-economy and highlighted the importance of new investments for the growth of the Finnish economy. Furthermore, he highlighted that the Finnish government is supportive of e.g. the bio-refinery project in Kemijärvi.