The construction of a biofuel factory in the Port of Rotterdam will not proceed. The Finnish company UPM is halting the plans due to excessive construction costs.
UPM, which also produces paper and cardboard, announced that all technical work on the project has been stopped. The company writes that the investment and operating costs of the complex project are high and that competition in the market is strong. As a result, UPM expects to make less profit from the factory in the long term.
The factory would produce biofuels for aviation, among other things, with a capacity of 500,000 tons per year. UPM already has a biofuel factory in Lappeenranta, Finland, which produces 130,000 tons per year. That factory will remain UPM’s largest producer for the time being.
The costs for Dutch industry are rising rapidly, causing several companies to be in serious trouble. Some companies have announced that they will leave the Port of Rotterdam or have even gone bankrupt. Earlier this year, Tata Steel and Dow Chemicals also announced mass layoffs.