Portuguese government approves Portucel’s new PM

The Portuguese government has approved Portucel Soporcel's plans to build a new 500,000 tonne/yr uncoated woodfree paper machine in Setúbal, Portugal. The investment will cost over 481 million Euros and startup is slated for the second half of 2008, with most of the PM's output slated for export. The new unit forms part of a wider Euro 900 million investment program, under which an 80 MW natural gas power station will also be built at the Setúbal site. The plant is expected to meet all of the mill's electricity and steam requirements, with the excess power being diverted to the national grid. The Setubal mill currently houses three uncoated woodfree machines, which have a total capacity of 275,000 tonnes/yr. The new PM will boost Portucel Soporcel's total uncoated fine paper capacity to over 1.5 million tonnes/yr. Besides, the program also includes the modernization of Portucel Soporcel's Figueira da Foz and Cacia plants, which are both located in Portugal as well.