The transition to biofuels reduced the annual direct greenhouse gas emissions of the Lohja paper mill by almost 90 percent. The investment in the reception and processing of biofuels was 16,5 million euros.
The investment made at the factory in 2015 in a new multi-fuel boiler has also been part of the same effort to improve competitiveness. The multi-fuel boiler and the transition to biofuels cost a total of almost 70 million euros. In addition to the large investments, the factory has continuously improved the energy efficiency of its processes.
Factory manager Jari Nikkinen According to him, both have been very important projects.
“Without them, it would be difficult for us to function today.”
A multi-fuel boiler can use many different fuels at the same time. Before the Kirkniemi paper mill switched completely to biofuels, the boiler burned coal together with other fuels.
From 2023 onwards, coal will be replaced by biofuels, such as tree bark, sawdust and forest chips. The bark comes from the sawmill industry and the mill's own barking mill, while the forest chips come mainly from domestic suppliers. The mill's own bio- and fiber sludge will also be used for energy.
According to Nikkinen, the transition to biofuels was accelerated not only by environmental issues but also by the rapidly changing world of printing paper production.
“We operate in a market that is declining by 5–10 percent per year. We wanted to get rid of coal to reduce our costs and meet the challenges of sustainable development. With the change, we will be able to support our customers in their own carbon neutrality goals.”
Partly familiar, partly new
Jari Nikkinen, who has worked in management and expert positions in the forest industry since 1999, started as the director of Sappi Kirkniemi paper mill at the beginning of 2026. His predecessor, who had been at the helm of the mill since 2004, Martti Savelainen moved to manage the Sappi factory in Austria.
“It feels really good, but the reality of the work will only be revealed later.”
He was previously the factory's production manager, so the job is familiar to him. Still, the leap to factory management is a big one.
“The transition to the position itself was easy, as Martti has created a good framework and team spirit for the factory. The factory manager is responsible for the unit's operations for the group and for communication with key stakeholders. In that sense, things are new to me.”
Maintaining competitiveness as a printing paper manufacturer is a tough job – you have to constantly strive to minimize costs while maintaining good quality of operations and products. Due to the decline in demand, paper machine 2 was closed at the end of 2025. Paper machines 1 and 3 are currently in operation.
UPM and Sappi plan joint venture for printing papers
South African Sappi and Finnish UPM are establishing a joint venture focused on publication papers. The company, scheduled to start operations in late 2026, is a response to the challenges facing the European publication paper market, as demand has been declining for the past two decades.
The joint venture would include UPM Communication Papers and Sappi's European printing paper business. The new company would be equally owned by UPM and Sappi.
"The way we have invested and developed our operations here in Kirkniemi also prepares us well for the future. We want to be a competitive and successful factory in the new company," Nikkinen says.
Sappi Kirkniemi
– Sappi Kirkniemi, located in Lohja, is one of the world's most advanced paper mills
– production 575,000 tons per year
– high-quality printing papers from the Galerie product family
– over 90% for export
– More than 70 percent to Europe, the largest market is Germany
– staff 470
– A 16,5 million euro investment in bioenergy solutions in 2023 reduced the factory's direct greenhouse gas emissions by up to approximately 90%
