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UPM to Build New Heat and Power Plant at Shongau Mill in Germany

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UPM, Helsinki, Finland, will build a new, combined heat and power plant at its Schongau mill in Germany. The goal is to significantly reduce energy costs as well as to secure the energy supply. The gas power plant will replace the old plant facility which has operated more than 40 years. The total investment will be EUR 85 million, with startup planned by the end of 2014

The new power plant will generate process heat as well as electricity for the mill. It will also provide sustainable and energy efficient district heating for roughly 750 households and public institutions such as local school and a hospital in Schongau. The renewed energy supply at the mill will be based on the highly efficient combined heat and power technology utilizing gas as a fuel.

"The new gas power plant will improve the security and self-sufficiency of energy supply to our mill," explains Winfried Schaur, GM at the Schongau mill. "Renewal of the energy generation ensures efficient production and will safeguard the competiveness of the mill. Furthermore, it guarantees a sustainable paper production loop based on innovative and low-emission technologies."

UPM says it aims to achieve improved energy efficiency and energy savings in all of its businesses. The company favors a wide range of low-emission energy sources. During the past decade, UPM has invested more than EUR 1 billion on carbon neutral power and heat generation at its mill sites.

UPM has 23 paper mills in Finland, Germany, the U.K., France, Austria, China, and the U.S. Many of them are large recycling centers and bioenergy producers, as well as paper manufacturers. In 2011, the business group's net sales amounted to EUR 7.2 billion.

The UPM Schongau mill produces newsprint and uncoated magazine papers. Its three production lines have a combined annual capacity of 770,000 metric tons. Founded in 1887 and located in Bavaria, South Germany, the mill employs 550 people.


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