It has created a modest 200 jobs in a Finnish forestry industry that has lost around 20,000 in the past decade, but UPM-Kymmene’s new biofuels plant offers long-awaited growth and hope.<\/p>\n
The 180 million euro ($200 million) investment in wood-based renewable fuel production marks the first major case of transformation in a sector that has long been managing decline.<\/p>\n
UPM still makes 50 percent of its revenue from sales of paper, and biofuels can’t yet plug a gap created by consumers in European export markets shifting from magazines and newspapers to smartphones and tablets.<\/p>\n
But the new plant, a global first, is already breaking even after little more than a year in operation in the eastern town of Lappeenranta; its success now needs to be replicated across the economy if Finland is to drag itself out of stagnation.<\/p>\n
The government regards forestry products, traditionally Finland’s industrial and export backbone, as vital to its hopes of promoting economic growth while simultaneously pursuing tough labor, budget and healthcare reforms.<\/p>\n
“Making new products from wood is a big thing for the future of the Finnish economy. Finland still relies on the forests, it is our foundation stone,” said Employment Minister Jari Lindstrom.<\/p>\n
With only 5.5 million people, Finland’s export-driven economy has suffered three years of recession due largely to the demise of Nokia’s mobile phone business, crisis in neighboring Russian markets and the decline of the forestry sector.<\/p>\n
Three quarters of Finland’s land is under forests, so the industry’s problems have hit hard – the OECD says they have shaved 0.75 percent off gross domestic product since 2007.<\/p>\n","protected":false},"excerpt":{"rendered":"
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