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Annual Report 2016 paper province

44 PAGES with the latest in forest bioeconomy

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MANY ADVANTAGES Maria Hollander talks about the advantages THE FOREST of joining Paper Province. Read about our 2016 projects PAGE4 2 3

Development requires yin and yang selected contents ”We hold all Paper Province Annual Report 2016 the trump cards”

n the last few years, I have travelled a great deal, most of all in China. A person cannot avoid 06 being amazed at the pace of change in this enormous country. In just a couple of decades, the country has gone from being an underdeveloped agricultural country to becoming Ia world-leading industrial nation, often with respect to technology or at least in volume. Major Rocket-fast liftoff for company investment decisions are taken more or less in a moment. The network of fast trains and BioExpress takes an innovation from idea to staffed project and start-up motorways is expanding at furious speed. In almost every city, residential areas are rising for company in the course of a few months. In cooperation with Inova, thousands of new inhabitants which are soaking up the ground. China produces 70 million we helped companies to commercialize forest-based innovations. metric tonnes of cardboard per year. This is four times as much as just fifteen years ago. It is > Paper Province project expected that within a short time, more than half of the new soft tissue machines in the world will be installed in China. This means opportunities for those of us who export goods and services. But the opportunities come with a number of challenges, such as how we in Sweden and Värmland can be attractive business partners from our side of the planet and be able to compete with China and other countries. 12 I am convinced that the key is to dig where we are and utilize our more than a century of knowledge of how the forest can be improved. The paper and pulp industry is running at high pressure in the region. Assuming that a positive decision will be made on investing in new Idea workshop for a greener Grums locks at Trollhättan, Valmet is investing in the foundry in order to ensure production of Yankee Grums Municipality was the first participant in a project based on finding dryers. Rottneros will install a new biofuel boiler and is aiming at increased production, and innovative, practicable and visionary ideas that promote the work towards the icing on the cake is BillerudKorsnäs's investment in a new cardboard machine, which a fossil-free future. Individuals, the municipal government, companies and ensures the future of the operation in Värmland for a long time into the future. 22 At the same time, we are seeing new opportunities being realized based on the traditional the academic community participated. > Paper Province project forest industry. Re:newcell chose Kristinehamn for its recycling facility for cotton fibre from jeans, for example. Lignocity in Bäckhammar provides opportunities for developing products based on lignin Digital technology in the forest which are attracting international interest. And the Wood Region in Sysslebäck is developing products A renowned panel discussed the question ”New in which wood fibre replaces fossil materials, to name just a few examples. industrialisation – can digitalisation renew the Swedish forest industry” during the Almedalen It is being debated whether the future for Värmland is the traditional forest industry or the new Week political festival. Maria Hollander was a forest-based bioeconomy, the contours of which we have only begun to imagine. I believe the answer member of the panel. 18 is both. Even though we have seen major transformations through the years, the traditional > Paper Province at Almedalen forest-based basic industry is perhaps stronger than ever, and it constitutes a large part of the Lignin becomes fuel and chemicals backbone of the industry in Värmland. At the same time, it is a basis for other industries springing up. Much of the knowledge required to develop new products and businesses exists in the traditional Read about the BioLi2.0 project which started during the year. Twenty-eight industry, and it is also perhaps by-product flows from paper and pulp mills which provide the greatest partners, including Paper Province, are collaborating on developing processes Environmentally- for manufacturing fuel and chemicals based on the by-product lignin. opportunities. On the other hand, it is not certain that only the companies that are currently dominant will lead the development of the bioeconomy. classified paper > Paper Province in collaboration

The annual report you are holding in your In addition to the basic industry, a strong commitment from society, good collaboration with the hands has been printed at Munken Kristall, academic community and funds for conducting development projects are required. All of this is in place on environmentally-friendly, uncoated paper and has an opportunity to converge in Paper Province, and it provides a strong platform for the region's produced at Arctic Paper Munkedals AB. development. In the international assessment which was made of the cluster within the framework The mill is located on the western shore of for the Vinnväxt 2016 funding competition, we received confirmation that Paper Province is both Örekilsälven River. They work actively to 27 COMMITMENT & internationally known and has the right forms of collaboration to be able to succeed. minimise environmental effect and have several It is easy to be impressed by the Chinese miracle and for the goal to be obscured by COLLABORATION environmental certifications. The printer we have chosen is also certified: Strokirk Landströms, a Paper Province received a doubt about our own development opportunities. China may be growing rapidly, but Paper Province Chairman Nordic Swan Ecolabel printer in Karlstad. development requires balance – both its yin and its yang. We possess knowledge, of the Board Erik Kornfeld bronze medal competence and innovation, and that is our trump card. If we look at utilizing the sees Paper Province as a strong platform for Paper Province Paper Province was proud to announce during the year that we have been fantastic capacity we have on the home ground, we can also be competitive Innovation Park, Sommargatan 101 A the region's awarded the Bronze Label of the European Cluster Excellence Initiative. in the future. development. 656 37 Karlstad It also meant that the first stage in the two-year European project Towards +46 (0) 54 24 04 60 Cluster Excellency was out of the way. [email protected] Erik Kornfeld www.paperprovince.com > Paper Province certified 5

BENEFICIAL COLLABORATION Every living soul needs to help. “If everyone pulls in the same direction, it will be beneficial for Paper Province has approximately a hundred member the region,” says CEO Maria Hollander. companies, everything from small one-person firms to Someone has to be the large paper mills. CEO Maria Hollander talks about the Three new advantages of the cluster. engine in the innovation system. What benefit does one get from joining Paper Province? members are “You can benefit from our involvement in an innovation project, for example. Perhaps you need help with obtaining funds from Vinnova or some other source in order to develop your innovation. And we can help you there. But for most people, the major benefit is more an indirect benefit. We contribute to a high degree to welcomed strengthening the innovation system for the forest-based bioeconomy in the region.” What is meant by the innovation system? “It is everyone – companies, the academic community, education providers and the public sector – which together constitute a system in which development, innova- motala “WE ARE tion, education and providing competence take place. Large and small companies verkstad ... if all of them can pull in the same direction, it will be very beneficial and someone Motala Verkstad is an industrial group must be an engine in order for it to occur – we have that role. of companies involved in engineering One more time: So why should a person become a member? and maintenance. The business began “To contribute to the region continuing to be successful with a strong innovation operations back in 1822. The company has system. To get access to our meeting places and services. Because we need factories in Motala, Malmö and Kristinehamn committed companies that want to do a little more. And to provide the association (two) and works in many different segments THAT legitimacy nationally and internationally.” such as process manufacturing, medical Is it important to have many members? technology, marine and bridges. "Having many provides us a form of legitimacy and weight. But it does not necessarily mean that issues and things get better. We need to be many, but we also need to have a number of members who will get involved. That is the only way we can move www.mvg.se ourselves forward. Many are part of the cluster in order to be connected. And that [email protected] is just fine. But we as an organisation must also have companies who will work on 0141-22 99 00 innovation and development, who will participate in workshops, who will give of ENGINE” their time to work on issues concerning competence development and participate in projects on internationalisation. Without them we will get nowhere. We need more such members.” What does it cost to become a member? “The fee is based on how many employees the company has. Each krona we receive ecostrate becomes perhaps two, three or four kronor in order to leverage them in projects. Ecostrate provides environmental It's like outsourcing, you might say. If you cannot find the time to get involved in consulting for companies and regional development, for example, then Paper Province gets it done for you. We municipalities. The company analyses, can work on behalf of the industry's well-being in contexts where the company itself evaluates and assesses how waste has not opportunity to be present.” materials and residual products can Do you think the public knows about Paper Province? be treated and used or recovered. “It is unbelievably difficult to reach out. But I think that we reach out quite well if you compare us to others. It's a part of our success. But many people don't sufficiently www.ecostrate.se know us and this matter of a forest-based bioeconomy. We think that it is every [email protected] person’s affair because it has to do with the transformation to a fossil-free society. 072-225 42 26 It is important that everyone learns how they can contribute.” What does the future look like for Paper Province? “There is a great deal happening in the region. Right now things are only moving forwards. We have money from various financial backers. Slightly more than six years remains of the Paper Province 2.0 Vinnväxt Initiative. We also have financing from the Swedish Agency for Economic and Regional Growth for a structural fund project (Climate-smart Innovation) which runs until September 2018. In addition, we have several applications pending. So during the upcoming three-year period, it Drinor looks very good for us.” Drinor develops and sells dewatering What is most important for Paper Province to work on right now? solutions for increased utilisation of “We have to heighten the knowledge of what gender equality can do for companies. biomaterials. By mechanically pressing out It involves increased revenues, increased margins and increasing innovative vitality. It is tremendously important and absolutely urgent that companies take it very the water for increased energy value and “WE CONTRIBUTE TO A HIGH seriously. It will undoubtedly be a competitive advantage and Sweden can gain lower weights, not only can amounts of DEGREE TO STRENGTHENING ground. We as an organisation must work on it.” energy be saved but transports can also Anything more that is especially important? be reduced. Read more about Drinor on THE INNOVATION SYSTEM FOR “Yes, the creation of sustainable value chains. In other words: It is not sufficient that the next page. products are sustainable. All participants in the value chain must genuinely reflect on how we work sustainably and circularly. We have to heighten the knowledge of it. THE FOREST-BASED BIOECON- www.drinor.com Everyone must take it seriously and realize that it is a matter of survival. Money will [email protected] OMY IN THE REGION” be made by working on these issues.” 0730-85 93 60 6

BIOEXPRESS Innovations from idea to reality

BioExpress takes an innovation from idea to staffed project and start-up company within the course of a few months. The rocket-fast process for commercialisation of forest industry innovations is the result of a collaboration between Paper Province and Innova. “What usually takes a year has taken a few weeks,” explains Erik Dahlén, Innovation Consultant at Paper Province which is conducting the project.

> Carl Romlin and Alex Thelander started the first start-up company – Drinor. The opportunities for succeeding in Karlstad and Värmland are better than in other places in Scandinavia.This has led Paper Province and Inova to enter into the collaboration project. The intention is to help in the development of innovation ideas from companies and individuals by utilizing these resources in an effective way

The first stage in the process is to identify an innovation idea. It may be companies or individuals who turn to Paper Province with a good – Success story with help from BioExpress idea that might promote the bioeconomy in some way. The next stage is toinitiate a business concept. If that succeeds, then it is time to Drinor embark upon the next phase –BioExpress. Here everything goes very quickly. Thanks to the support and the network of contacts provided, Drinor was the first start-up company that was began on getting a sense of the market and finding financing. Slightly – As a start, we want to establish a home market in the Nordic countries, the process is accelerated. What can take more than a year in ordinary started with help from our offer, BioExpress. They more than a year later, their first customer was awaiting delivery. but we also have interested parties from far away, such as Canada, cases amounts to about three months. “We create the machine together with the customer. They are part of Indonesia and Australia,” says Alex. obtained their first customer in June 2016, and in the development project so that we can produce as custom-designed a “Dewatering is a global problem so there is a strong interest in finding machine as possible. We are counting on having the machine in operation a solution for drying biomaterials,” explains Carl. After the project has been started and staffed, Paper Province and December they were awarded SEK four million in the first quarter of 2017,” says Alex. Drinor has had a connection since the start with Paper Province, Inova arrange contact with the industry. Then the offer and the interest from the Swedish Energy Agency. During 2016 which has been involved and provided support through competence in the market are reviewed, the team's various functions are verified and they also became members of Paper Province. Going from manufacturing the prototype to producing the actual and contacts. financing is sought.If everything goes according to expectations, the machine that will be put to use in industry is a big step. “It felt like a natural step to join in. It is a fantastic opportunity to be BioExpress phase is concluded with a start-upcompany being formed. “It's as if we've built a small radio-controlled car and are now going to part of such a cluster as this in bioeconomy. For small and medium- BioExpress started in 2016, and so far one start-up company has Drinor works on getting a unique dewatering press out on the market. build a real Volvo,” says Alex to demonstrate the difference in the work sized companies, it means opportunities for contacts and marketing resulted from the process - Drinor. Their innovation is a chip dewater- The press has the capacity to save large amounts of energy in several they are now facing. and communications support that you wouldn't otherwise have,” ing process. areas of industry. It can be described as a multitool with a great many The future potential for the dewatering process is great. It can be used says Carl. “We had the opportunity to test the business concept and the applications. Drinor has chosen to direct itself at the wood pellet market for dewatering many different materials in the industry. Just in the as an initial phase in developing the product. Swedish sawmill and bioenergy production, it can reduce energy Drinor was awarded slightly more than SEK four innovation sharply in the market, where we encountered great interest. In December 2016, consumption equivalent to the heating of 25,000 houses, and in million from the Swedish Energy Agency. The support from the Swedish When the BioExpress phase had been concluded, the project had a The unique dewatering press was displayed for the first time in December the transport sector it can reduce the demand for biofuel transports Energy Agency will be used to verify the technology on a full-scale completed business plan, a financing strategy and a memorandum 2014. Since then, a great deal has happened. The innovator behind the by two thirds. industrial basis. It is a crucial step in achieving commercialisation of understanding with its first customer. Without BioExpress , this press, Stefan Sobota, received reinforcements. In the spring of 2015, “In the first stage of the drying process, it can reduce the energy of the technology. would not have been possible and the process has given life to a Carl Romlin and Alex Thelander were recruited to conduct a market consumption by up to 95 per cent,” says Carl. “This is an industry where the margins are not very large, where the new company with an international market, based in Karlstad,” say introduction. During the recruiting, they found themselves still in school. It also increases production capacity and process control." demand for a solution in order to increase profits is especially great. Carl Romlin and Alexander Thelander who staffed the project and They came into the project as entrepreneurs and quickly joined Paper The interest in the dewatering press is great, even beyond The hope is that the dewatering process can contribute to precisely are now employed at Drinor. Province and Inova's BioExpress. Together with senior competence, the work Sweden's borders. this,” explain Carl Romlin and Alexander Thelander.

8

STUDENT GET-TOGETHERS Students in industrial management were given an opportunity to pursue an idea for a start-up company. MASTERS

THESIS > Paper Province and several of our member companies met school pupils at Forest Days. PROJECTS can become start-ups INSTRUCTIVE AT FOREST DAYS

started, consisting of ex-workers/students, some more senior and others In September, a unique opportunity was presented who are needed to make the work successful. The work is carried out in Maria Hollander, CEO at Paper Province, opened Forest Days at North Field in Karlstad in to students in industrial management at Karlstad an academic part and a business part,” says Erik Dahlén. May. For two days, 3,300 primary school students gathered in the area to learn how the During the meeting, proposals are presented for nine different innova- University. The students were given the opportunity tions which have been broken down into actual cases. These are cases value chain functions, for example, from the seed being sown to the wood being to do a masters thesis project which could lead to which need help to be developed. recycled as paper. “Behind the ideas are innovators who are technical experts. They don't the formation of a start-up company. They were really know how to take them further or do not have enough resources. Forest Days is arranged every three years in Karlstad by the Forest in the School programme. About 30 companies and invited to a gathering at Innovation Park and had a In this way they get the help they need along the way, and the students organisations worked to make the day as interesting and instructive as possible – a project which cost SEK are given an opportunity to create their future jobs themselves,” says 1.6 million. chance hear about the Paper Province offer. Dahlén. “It was a real success,” says Erik Dahlén, “The Forest in the School is Sweden's oldest school project. It was started in 1972. It is a co-ordinating body between the school and the forest industry. But in Karlstad we first started with Forest Days in 1996,” The interest was very great. However, there was only capacity to staff at Innovation Consultant at Paper Province. said project manager Jens Mayer. most five cases, with two students on each. There were 30 stations in the area and among the exhibitors were some of Paper Province's Håkan Envall at The Packaging Greenhouse, which is responsible for three of the innovations, all in process technology, thinks that the concept member companies: Stora Enso, BillerudKorsnäs and Rottneros. They taught the children how The meeting resulted in about ten students, assigned to five cases, is very positive. paper is manufactured, what can then made from the paper and how it is recycled. The pupils being given the opportunity to take an innovator's idea and develop it “I think that it is a fantastic opportunity. I have myself been an entre- were each able to try manufacturing their own sheet by immersing a container with pulp into a start-up company. preneur for a long time, and like so many others I have had to fumble in into a water bath, straining out the water and pressing out the last part. “The thought was to take the idea and make it into a ready-to-start the dark and have not had someone who guided me or held my hand. The 30 stations showed broadly what the forest has to offer. Everything from business case. The students are required to produce a mini business I have proceeded by trial and error, and occasionally it has succeeded, various occupations, raw materials we get from it, the outdoor recreation that it plan. They conduct a market analysis and take a look at the path to an occasionally not. Therefore I think this is a fantastic opportunity for the offers and so forth. In addition to the paper manufacturing, the pupils also got initial business according to the lean start-up principle. They create an students. I hope it spreads. So that Karlstad can be a good example for to plant spruce trees, lift a pole weighing 200 kilos with the aid of initial customer presentation and financing plan. A “golden team” is other places to work in the same way in the future. equipment, drive a lorry in a simulator and whittle and shoot a bow. 10 11

MANY THINGS UNDER WAY Rottneros Mill and BillerudKorsnäs are two of our member companies where a great deal has taken place during the year.

WE ARE PLEASED BY OUR MEMBERS' SUCCESSES

As a cluster, we are very largest made in a paper or cardboard machine reports. In 2016, 193 companies qualified, i.e. ments corresponding to SEK 800 million will be potential customers, so the market is extensive. Triton Valsteknik invested SEK 20 million pleased with the successes of in Europe in the 2000s. With that, Värmland is nine per cent of the companies. Among these made. The objective is to get production to rise The filter is like the kraft pulp factory's kidney. in a new production shop which was also confirmed as a central place in Sweden's were Stora Enso and BillerudKorsnäs. from about 350,000 metric tonnes to 500,000 Traditional cleaning methods do not manage completed in May 2016. The sum also our member companies. During growing bioeconomy and as a world-leading metric tonnes of pulp annually. to pluck out all waste material from the liquor, includes new machinery, for example, the year, we have noted many of knowledge region for cardboard manufacturing. Valmet in Karlstad received an order of more which can plug up the evaporator plant and a 13-metre lathe which takes 30-tonne rolls. their advances when it comes to than a half billion Swedish kronor. It was the Italian Somas, which is based in Säffle and manufac- increase the consumption of chemicals. The investment meant that Triton could transactions, smart solutions and BillerudKorsnäs and Stora Enso were given company Sofidel which invested in two tissue tures valves in stainless acid-resistant steel, increase its capacity in order to work better top marks for their climate work when CDP's paper machines for a factory in the U.S. The new concluded a framework agreement with SCA Stora Enso in Skoghall invested SEK 149 million for the paper industry. The new production innovations. But because we Climate A-List was published. This means that investment meant that Sofidel became the owner involving all regulator and closing valves for the in new chemical treatment. The investment shop also meant that Triton needed to have about a hundred members they are two of the thousands of companies of 14 tissue paper machines from Valmet. construction of Östrand's pulp factory. It was meant a safer workplace, reduced discharges increase its labour force. in the cluster, it is impossible to ranked at the top wen it comes to working to the largest order in Somas's history and entails to the air and water and a reduced need for mention all of them – however, counteract climate change. CDP is a non-profit Rotteros Mill completed a renovation which will approximately 1200 valves. purchases of pulp. Cellcomb in Säffle enjoyed good progress in organisation that works to change how the increase production from 150,000 metric tonnes The project included new process equipment 2016. The company moved to Säffle in 2014, here is a small sample. world does business in order to prevent harmful to 175,000. In total, it involves an investment of Cleanflow in Karlstad supplied a plant to a for production of chlorine dioxide and sodium and since then the growth has come quickly. climate changes. Thousands of companies approximately SEK 110 million for construction Japanese paper company. The company has bisulfite and a new chemical warehouse. The In 2016 they grew by 50 per cent. Among other report annually to the organisation, according of a wash press, bleaching and dryer stage. developed a filter which can help kraft pulp investment resulted in major improvements to the things, the company manufactures cellulose- BillerudKorsnäs decided to invest SEK 5.7 to requirements from 827 investors – who In order to increase competitiveness, money factories to save millions of Swedish kronor working environment for the operators who based products for one-time use, for health billion in a new cardboard machine at Gruvön’s together represent assets equivalent to USD was put into internal improvements and new annually. It is estimated that there are around control the process and simultaneously reduced the care, for example, and it is a market leader production facility. The investment is the 100 trillion. An A-list is produced based on the pulp grades. During the coming years, invest- 400 kraft pulp factories worldwide which are discharges of chlorine dioxide and sulfur dioxide. in Europe. 12 GREENER MORE BEAUTIFUL GRUMS Interesting innovation day

> Paper Province project

Some 30 people gathered in Grums on an autumn day to look forward together and plan for an innovative and green Grums. In other words, a municipality which can act as an example with respect to forest bioeconomy, circular economy and thus sustainability as well. It was an interesting meeting with many good ideas.

What can be done to create growth and attractiveness for a greener municipality and an example in Grums Municipality and in Värmland as a whole? for others. This is a large, complex question, but we believe that “The opportunities are better in a small one part of the answer lies in a forest bioeconomy, town than in a large city to get everyone where the starting point is creating a sustainable and on board and to make the changes climate-smart community with help from the forest's needed,” says Jeanette Löfberg. resources and the industry. The objective for the day was to produce But in order to make use of the municipality's full innovative, feasible and visionary ideas that potential, a mustering of strength and most of all can be worked on further. Grums Municipality cooperation are required. This is what took place at was the first participant. However, the plan is the event where many stakeholders gathered to find for more municipalities to be invited to start in a an answer together to the question of how a greener similar way the process toward a fossil-free future. Grums can be created in the years ahead to 2030. “There was a fantastic commitment. Many people came and participated, both individuals and compa- nies as well as the public sector and the academic “The opportunities are community,” says Jeanette Löfberg, Project Manager MUSTERING at Paper Province who arranged the idea workshop better in a small town together with Grums Municipality. OF STRENGTH Some of the ideas that were taken up included sug- We arranged a fruitful innovation day in the gestions for co-owning machinery, sharing premises than in a large city ...” work for a sustainable and skills, and creating good opportunties for more and climate-smart green start-up companies. Grums. Hopefully the idea workshop was the starting signal > Jeanette Löfberg 15

DISTINCTION Forty years as a loyal customer

> Rob Mabbett, CEO at East Hot time at Riding Sacks Ltd, receives the prize from County Governor Kenneth HOT Johansson.

SPOT The International Business Award was awarded for the first time during the In February, Karlstad University's Hotspot job fair was held for the nineteenth time. There were about 100 year. County Governor Kenneth Johansson presented the distinction to East companies in attendance, of which 18 are members Riding Sacks in July. They have been an international customer of Nordic of Paper Province. The event attracted many students who came to make contacts with the business com- Paper for forty years and have thus benefitted the regional forest industry. munity and find future employment opportunities. The Paper Province International Business Award was awarded for 1976 that could supply high-quality sack paper, Nordic Paper Bäckham- the first time. mar was chosen. Since then, Bäckhammar Mill, together with a Finnish “It is a way for us to show appreciation to companies which have built mill, has been the largest supplier of unbleached kraft sack paper to East Thousands of students swarmed among welcoming company represen- BillerudKorsnäs Gruvön was also pleased with the gathering. a long-term business relationship with companies in the forest industry in Riding Sacks. tatives who offered caramels, brochures and the opportunity to win the “It has been an extremely good day. Many people stopped at the the Paper Province region and which have benefitted international trade latest mobile phone accessories. Some 100 companies were present to exhibition stand and we talked about trainee positions and summer make contact with future talents and offer them trainee positions, place- jobs. There was great interest in both,” said Catrin Widmark. and business development,” said Maria Holland, CEO, Paper Province. The business relationship between Bäckhammar Mill and East riding ments, part-time jobs, summer jobs, degree projects or memberships. In all, the company offered 15 trainee positions. There were even The prize was a picture by the Värmland artist Helena Bengtsson and Sacks has been unbroken for forty years. During this time, the mill has Marie Stenqvist, Communicator at Nordic Paper, was very pleased more summer jobs, specifically 150 positions distributed among a certificate. It was presented to East Riding Sacks by County Governor sold and exported unbleached sack paper to East Riding Sacks. with Hot Spot 2016. nearly all departments. Kenneth Johansson during a visit to the official residence in Karstad. “The cornerstone in the business relationship has been a high-quality “It went brilliantly this year,” she said. The students were also pleased. “I am not a man of many words but I want to thank everyone, especially paper, excellent service and a continued effort to invest in both people There were many students who came forward and showed great interest. “It was terrific that so many companies were here,” declared Jens “They wanted to know what we do, what we manufacture and who Lövgren who is studying energy and the environment. Bäckhammar Mill. We have had a long and good collaboration which we and technology in order to develop the business in a very competitive we will need to hire in the future. Given that we are facing a generational Hotspot continued during the evening with a banquet at CCC. will continue,” said Rob Mabbett, CEO and co-owner of East Riding Sacks. environment. Nordic Paper is enormously proud of the business relationship change, we need people for all areas. So this day has been extremely Then Paper Province awarded a prize for the best member exhibition good for us.” East Riding Sacks is the leading sack producer in the United Kingdom that has been built and developed over the years with East Riding Sacks. In all, the company needed to fill nearly 30 summer temporary positions. stand, which was chosen by votes from the students during the day. and is one of the largest independent sack manufacturers in Europe. The We will now celebrate the forty-year anniversary and hope to be able to With the justification “for great engagement and kind treatment of “We are small and flexible, so if we meet someone we feel would be a company is based in Yorkshire, England, and began manufacturing paper continue to expand and grow with East Riding Sacks for many years in the good fit we may find something. We do not go after the ‘unripe fruit’ students with all types of concentrations,” Combitech won the prize sacks in 1968, When East Riding was hunting for a paper manufacturer in future,” said Björn Carlsson at Nordic Paper in Bäckhammar. every time,” said Lars Löfquist, HR Director at Nordic Paper. and was rewarded with flowers and a certificate. 16 17

The facility is the only one in the world that also involved in the pilot study. The total can produce customized lignin qualities in budget is slightly more than SEK 487,000. Participants and applications at LignoCity sufficient quantities for scaling up. The intention In October, yet another stage in the is to create a centre where ideas are brought process was connected – students. About together and opportunities for commercial 30 civil engineering students from the Bionic Biokol RenFuel development are identified and supported. mechanical engineering programme We are conducting the project together participated in a Speedcase and created with Innventia and Nordic Paper. There are plastic-free lifestyle products based on also eighteen industry and societal partici- lignin's fantastic environmental properties. BIOFUEL BIOCOAL pants involved, including local participants “Working with students is a new con- FERTILIZERS such as Karlstsad University, Kristinehamn cept. There is both a great environmental SOIL IMPROVERS Municipality and Casco Adhesives AB. awareness and a digital naturalness that is “It’s extremely valuable for the businesses fantastic. The students went from an initial Blatraden in the region to have access to these types presentation in the subject to finished 3D- SunCoal of open test environments so that we can visualised product concept in less than a INDUSTRIAL continue the development of a forest-based day. Many of the ideas were very strong and Volvo Cars CHEMICALS bioeconomy,” says Maria Hollander, CEO of we will take them further in the LignoCi- LIGHWEIGHT RESINS Akzo Nobel Paper Province. ty work. Perhaps there will be a start-up MATERIAL ADHESIVES company which some of the students are Innventia COATINGS Lignin is the second most part of and develop,” says Erik UMV common biological material Dahlén, Innovation Advisor at in the world. As a raw Paper Province. Swerea SICOMP material, it could func- “Working with stu- > Lignin separated from black liquor RAW MATERIAL tion as a green re- dents in the innova- AND PROCESS placement for fossil tion process can be DEVELOPMENT oil, because lignin an important part of can be refined making us a world to vehicle fuels, leader in commer- plastics, carbon cialisation of green BTG Valmet fibre and hundreds innovations. The Nordic Paper of other substances combination in the and materials. Lignin form of the Region's could therefore be the focus, the University's most important raw materi- interest in “green entrepre- > LignoCity is a collaboration between several partners with a common goal – to create new products from lignin al in a future bioeconomy. neurship” and the large forest But in order to get there, develop- industry business community means “Working with ment is required. And so facilities are needed that we have the best conditions in the for research, demonstration and scaling up of world to become the best,” says technology, and that is just what LignoCity is. Erik Dahlén. students is a new In June 2016, Kristinehamn Municipality applied for SEK 242,000 for a pilot study One expectation from all parties involved concerning the continued work on LignoCi- is that this togbether with an entrepreneur concept. There ty. Region Värmland approved the applica- programme will be the starting signal for the tion. formation of a new instructional programme is both a great The intention is to create guidelines for in innovation. how the work on LignoCity will continue “The students are important for the future. LIGNOCITY after the current research project is con- They are the ones who replenish the environmental cluded. Among other things, the study will business community. investigate how Kristinehamn Municipality Lennart Wihk, industrial designer, was the Centre for future biotechnology can facilitate and support development from one who first contacted Paper Province to awareness idea to profitability. combine cases with the students. LignoCity is an open test bed where companies can develop and The questions to be illuminated include “I'm passionate about this. I think it is a laboratory environment, connection good way to teach them to not be in a great and a digital scale up technology that refines lignin to new climate-friendly fuels, between business community and university hurry for a solution. They should not just chemicals and materials. The facility is located in Bäckhammar and in research and development and how listen to a customer. They should take time, the project was launched on 8 February. LignoCity will be marketed. In order to find find out what is needed, acquire knowledge naturalness the answers, both interviews and workshops about the problem and then twist and turn will be carried out. it. We are teaching them to give it time for a that is fantastic.” better solution. When they get cases in this In addition to Region Värmland and Kristine- manner, it is usually very instructive and that hamn Municipality, Paper Province, Karlstad is what it was now,” he says. > Erik Dahlén University, Inova, Innventia and Swerea are 19

HUNTING FOR COLLABORATION

In January, Paper province participated in a meeting in Brussels to find collaboration opportunities concerning bio raw materials and biomateri- als. There were approximately 25 regions present which are included in the EU Vanguard Initiative “Bioeconomy“.

> Paper Province is participating in the BioLi2.0 collaboration project - from lignin to biobased fuels and chemicals. There are more than 1,300 regions and counties in Europe. Together they possess great unexploited resources in the form of bio raw materials. For example, Scotland has ample access to bio raw materials as a result of manufacturing whisky. Germany and Belgium have ample access to hops and malt as a result of manufacturing beer. By combining them in Vanguard, synergies will be created and cross- border collaboration will be promoted in order to make use of the unexploited resources. As part of the project, a meeting was held in Brussels in January in which representatives from 25 regions participated to find collaboration opportunities in the area of bioeconomy. Carl Zotterman participated on behalf of Paper Province. UNIQUE PROJECT “Several regions showed interest in collaborating with us. They included Scotland, Navarre, Emilia-Romagna and a cluster of Dutch, German and Belgian regions,“ said Carl Zotterman, Project Manager at Lignin becomes fuel and chemicals Paper Province. “We can learn a great deal from each other with respect to both technical solutions and building value chains and business models. One of the largest collaboration projects ever mally make use of our valuable forest. We think that refining of lignin is an Most of the transformation to a sustainable society must be carried enormously important matter for the region,” says Marcus Elmer, Project out at the regional level. However, the foremost hope is to find regions with a focus on refining of lignin started during Manager at Paper Province. where there are companies that are interested in doing business in our the year. Paper Province is of course part The use of oil in the world is constantly increasing. Meeting the region,” Zotterman thinks. challenge with increased carbon dioxide emissions requires increased of the project. “Therefore we have taken care to display the assets that are found use of renewable raw materials with shorter turnaround times. here, the competence and the opportunities with the infrastructure – in other words, the good business opportunities,“ said Carl Zotterman. Lignin as a renewable resource has great potential as a raw material “BioLi2.0 - from lignin to biobased fuels and chemicals" is the third innova- for the chemical and petroleum industry. It is the second most common tion project funded by the strategic innovation programme BioInnovation. constituent after cellulose in plants and functions as a skeleton. About For 2 ½ years, 28 partners from companies, research institutes and the 20-30 per cent of trees and other pants is made up of lignin. Currently it FACTS ABOUT VANGUARD academic community will collaborate on developing processes for is mainly used in the pulp and paper industry for production of steam and • Founded in 2013 by ten Europe. The Initiative's concrete production of fuels and chemicals based on renewable lignin as electricity. It is burned in the form of black liquor. But its potential is regions in order to strengthen work revolves round a number of a replacement for fossil, petroleum-based products. The project is being considerably greater. With the aid of chemical processes, the lignin can Europe's industrial capacity and pilot projects which consist of: led by Marie Anheden from Innventia and has a total budget of SEK be separated, processed and converted to acquire properties similar to competitiveness. 1. teaching 46.9 million. The funders are Vinnova, Formas, the Swedish Energy coal and oil, for example, and thus function as a replacement for • Large-scale collaboration for 2. connecting MEETING IN Agency and the participating project partners. petroleum products. BRUSSELS Oner goal with BioLi2.0 is to develop select technologies and establish work by European regions on 3. demonstration smart specialisation. 4. commercialisation “Several regions Planning started back in 2014. The starting signal sounded on value chains for lignin, as well as increase the technological maturity level, showed interest 1 September 2016. i.e. from development on a small scale to prototype demonstration in a • The purpose is to develop • Region Värmland has decided in collaborating “It is fantastic that the project is actually getting under way after such a relevant industrial environment. Within the course of five years, a demon- and demonstrate new business to set aside money to become with us,” reports long time. It clearly indicates hat lignin is an important piece in Sweden's stration facility which demonstrates a full value chain from lignin to end solutions through networking and members in 2017 Carl Zotterman. future bioeconomy. The project will help us understand how we can opti- product in the form of chemicals or fuels will be in operation in Sweden. collaboration with other regions in 20 21

SUSTAINABLE AVIATION FUEL Fly Green Fund Värmland launched

Fly Green Fund gives people an opportunity to reduce their climate footprint by flying on sustainable bio aviation fuel. During the summer of 2016, Karlstad Airport and Fly Green Fund entered into an agreement to ensure that the flights with biofuel from Karlstad continue.

During Almedalen Week, Fly Green Fund Värmland inaugurated bioflights Presentations were conducted during the seminar which illuminated from Karlstad to Visby. the question concerning bio aviation fuel from many different aspects, “Paper Province has together with its companies created the basis for as well as panel discussions which created interesting discussions. The making Värmland the leading region in forest bioeconomy. According to first panel discussion dealt with the question “Are there actually travelers our analyses, Värmland has good opportunities for developing produc- who will pay more for bio aviation fuel?” The answer to the question was tion of biobased aviation fuel, and it is therefore gratifying that Karlstad actually yes, all things considered. Airport can now offer its travelers an environmentally-friendly alternative,“ said Lars Christensen, Managing Director at Region Värmland. Another question that was raised was whether it is possible to manufac- ture bio aviation fuel in Sweden. Fly Green Fund provides companies and individuals all over Sweden an “Yes, it is absolutely possible to manufacture bio aviation fuel in Sweden opportunity to fly on bio aviation fuel. This is done with the Swish Bioflyg today. What is required is a long-term perspective that can provide service, by signing annual agreements or purchasing travel through the confidence to investors. It can be achieved through offtake agreements, travel bureau Resia. The money that comes into the fund is used exclu- a united view on incentives and increased support for the necessary sively for bio aviation fuel. investments,“ said Sierk van der Jong, Sky NRG, during his presentation. Companies and individuals who participate receive a report showing The opportunities to succeed at making the Nordic countries an example how much they have reduced their carbon dioxide footprint. These for bio aviation fuel are great. Many of the resources required are in place. figures are public and can be used to reduce the company's carbon Many stakeholders are engaged in the work of carrying this forward. Paper dioxide footprint when reporting to authorities. Province is one of them. Fly Green Fund started in 2015, and the first companies began to join Immediately before the new year, Swedavia becasme the first customer in 2016. The very first company to join was Löfbergs. In October, Paper which purchased bio fuel for aircraft corresponding to the business travel the Province participated in Fly Green Fund's annual conference, FGF 2016. company's employees engaged in during 2016. GREEN FUEL Over forty different organisations were represented. There was a wide Karlstad Airport started distribution of roles but the attitude seemed to be the same among its effort on bioflights the participants “that this is the right way forward”. in 2016. Paper Province “Aviation is necessary for society and bio aviation fuel can be the solution is involved and working to carry the project for reducing its environmental effects,“ said Marcus forward. Elmer, Project Manager at Paper Province. 23

DIGITAL FORESTRY Discussions during Almedalen Week

The forest is the basis for Sweden to become The starting point for the debate was the Swedish government's new industrialisation strategy includng the four parts: digitalisation, sustainability, the first fossil-free society in the world. In thirty competence and innovation. Maria Hollander, CEO of Paper Province, spoke years' time, we will have an entirely new indus- with Christer Gustavsson, Pöyry, Johan Stahre, Chalmers, Eva Lindström, State trial sector with small-scale factories near the Secretary to the Minister for Enterprise and Innovation, Göran Carlsson, Group forest, a broader product portfolio and more CEO of Swerea and Ulf Strenger, Pöyry. Sweden consists of 70 per cent forest and is itself a gigantic testbed for employees. That was the conclusion when a innovation in which digitalisation provides a fantastic opportunity, according renowned panel discussed to the panel. Despite that, large parts of the industry are most concentrated the question “New on automation and processes. And the maturity with respect to informa- industrialisation – tion technology can be relatively low. “Just digitalizing the administration so that it becomes can digitalisation renew simpler, quicker and more safer would do a lot to increase the Swedish forest the margins in some parts of the industry,” said Maria industry” during Hollander.

Almedalen Week. In Eva Lindström's opinion, long-term and stable opportunities are needed for using the forest and developing the potential of wood raw materials The digitalisation must, of course, be supported by a built-up infrastructure, but quite literally it starts in the forest and with everyone who works there. Looking at how data can be connected together from silviculture plans, weather reports, harvesters and forwarders pro- vides an opportunity for greater value added and reduced environmental effect. One prerequisite is to start looking at common standards for data transfer. It also requires that “We can employees be involved. The industry is facing a whole row of challenges, which simultaneously provide great opportunities for drive the a branch in transformation. The vision for the future of how the tree already in the forest is analysed and sorted through digital tools was discussed and how new development“ applications can change the industry and in the long term result in small-scale industries located near the trees. “For its part, Paper Province can fill the intervening organisational > Maria Hollander space and create connections between different branches. It takes time and does not come spontaneously. We can drive that development,“ > Paper Province participated in Almedalen Week. said Maria Hollander. 25 INDUSTRY INSIDE

SEK 1.4 MILLION FOR RESEARCH ON FOREST BIOECONOMY

In October, the Centre for Regional Studies at Karlstad University was awarded slightly more than SEK 1.4 million by Region Värmland for a new research project in bioeconomy and transformation processes in the forest and the forest industry. The project is related to other projects in the area in which Paper Province has been active. The project “Transformation to a responsible forest bioeconomy" runs until 2018. The entire project has a budget of SEK 2.8 million, half of which is being financed by Region Värmland and the remaining part by Karlstad University. The research project is part of the specialisation “Forest Bioeconomy“ within the “Academy for Smart Specialisation”. “We have a number of large societal challenges which require new solutions in order to achieve a more sustainable society. The goal in this project is to create new knowledge about processes for transformation and bioeconomy and strength- > Margareta Dahlström. en research competence,“ says Ida Grundel, Senior Lecturer at Karlstad University. Photo: Linn Malmén

SEK 17 MILLION FOR REGIONAL Important article RESEARCH ENVIRONMENTS on the path to Karlstad University has been awarded, under the leadership of Professor Lars Nilsson, SEK 17 million for a project called the Research Environment for a sustainability Circular Forest-Based Bioeconomy (Swedish acronym: FoSBE). Fifty per cent of the money is coming from the Swedish Agency for Economic and Regional RESEARCH Growth, twenty-five per cent from Region Värmland and twenty-five per cent from Karlstad University. Ida Grundel, Senior Lecturer at Karlstad University, and that relates to our projects FoSBE will assist with research-based knowledge so that companies and public Margareta Dahlström, Professor at Karlstad University, have sector enterprises in Värmland are prepared for tomorrow's demands for new biomaterials and renewable bioenergy. written an article in the Journal of the Knowledge Economy. “We will prioritize the research so that we support the development of the The article aims to provide an understanding of the region's testbed environments. This may involve, for example, developing new opportunities for a transformation to a forest-based bioeconomy products or services in the bioeconomy, or optimizing processes,” says Professor in Värmland. This is based on a regional innovation system Lars Nilsson. SEK 3 MILLION FOR FOOD WASTAGE PROJECT Funding for the project was awarded in December 2016. During the spring of (RIS) linked to a quadruple and quintuple helix system. This 2017, the project is working on identifying important testbed environments and entails including more target groups to increase the breadth recruiting personnel. In December, the research council Formas awarded a grant of SEK 3 million and see to coordination among them. for a research facility for research on packaging solutions and food wastage. Very briefly summarised, the results show that a quintu- The research is multidisciplinary and will be carried out in the areas of ple helix (RIS) for conversion to a forest-based bioeconomy environmental and energy systems and psychology at Karlstad University. in Värmland can be a possible way to sustainability. The THE ACADEMY FOR SMART SPECIALISATION model suggests that participation of civil society in the The project consists of two studies and the writing of a popular science book. The first study is a literature review in innovation system could contribute to a larger transfor- which reasons for food wastage for various products are being compiled. Based on a compilation of packaging mation when it comes to changing consumers' behaviour, properties, an assessment will be made of what has the most effect on the wastage for each product. Karlstad University and Region Värmland initiated a collaboration in the spring of 2016 through the ”Academy production patterns, technology development, infrastruc- The other study is a household study for the purpose of enhancing the knowledge of the role of various packages in for Smart Specialisation“ for renewal by the Värmland business community, the public sector and the food wastage. The members in the households document all their food wastage through photography. The images will ture, norms and values. research at Karlstad University. be analysed and interviews will be conducted in each household. This study is being conducted in collaboration with The title of the article is: A Quadruple and Quintuple the Psychology Department. It will be deduced from the images which products the wastage comes from and which • The effort is a continuation of the memorandum of understanding which was drafted for the period 2010- Helix Approach to Regional Innovation Systems in the packaging properties have caused the wastage. 2014 when ten new professorships were established at Karlstad University. Once again it involves a research “Finally we will produce in the project a popular science book about the indirect environmental effects of packages Transformation to a Forestry-Based Bioeconomy, collaboration, and it will run until 2020. and the effect on behaviour: how packaging design can reduce the energy consumption for distribution, how the Journal of the Knowledge Economy. quantity of food wastage due to the consumer can be reduced and so forth. We need to raise the level of consciousness • The Academy for Smart Specialisation will create more benefit from research for the Värmland business about the role of packaging as environmental hero and the role as environmental villain in order to reach the goal: a community, the County Council and the municipalities, and it will strengthen the Värmland research envi- reduced burden on the environment,” says Fredrik Wikström, Associate Professor in Environmental and Energy Systems and leader of the research project. ronments. One of the goals is for the research in Karlstad to be of such high quality that the University can The project will run for three years with financing from the research council Formas of SEK 1 million annually. The extract more external funding. Six areas have been designated within the framework for the effort – multidisciplinary project includes researchers from the Environmental and Energy Systems Department and the Psychology Department at Karlstad University. The collaboration partners also include Stockholm University and corresponding to the areas found in the Smart Specialisation strategy for Värmland. A forest- Packaging Logistics in Lund. based bioeconomy is the area with the highest priority. 26 27

FIRST STEP TO- WARDS CLUSTER BRONZE EXCELLENCY to us

Paper Province was able to announce proudly during the year that the association has been awarded the Bronze Label of the European Cluster Excellence Initiative. It also meant that the first stage in the two-year European project Towards Cluster Excellency was out of the way.

Paper Province has been working since January 2016 with the clusters Merinova (Finland), Basque Energy Cluster (Spain) and EnergyIN (Portugal) to improve the clusters' working methods and offer- ings to their members. The first phase entails a thorough review of the cluster organisations' work- ing methods and composition. The clusters are also compared among themselves to learn bout how they can improve. This was accomplished during a whole-day workshop led by the European Secretariat for Cluster Analysis (ESCA), which also carried out the examination itself of the clusters. > Paper Province at student get-together. ESCA looks at 36 indicators, including the cluster's structure, financed by the EU's competitiveness progamme COSME, which is leadership, control, financing, services offered, contact and an abbreviation for “Competitiveness of Enterprises and Small and interaction within the cluster and the investments that are made. Medium-sized Enterprises”. When the clusters each identified what they need to become better at, the next phase in the project Towards Cluster Excellency In Sweden, a total of 18 clusters since 2011 have undergone a review started, which entails the cluster organisations undergoing certain to receive bronze and the total is just under 850 from 40-odd customized training. The third and final phase, which will be com- countries. Of the 18 Swedish clusters, however, only Paper Province INDUSTRY EVENING pleted in 2017, involves some other successful clusters coming to (bronze) and Future Position X (gold) currently have valid certificates. Young engineers networked visit in order to learn from their good examples. The project is being Paper Province aims to reach the gold level during 2017.

In May, an industry evening was arranged for young engineers. Nearly forty people gathered > Paper Province collaboration. at the Plaza in Karlstad to network, exchange experiences and hear Maria Hollander, Paper Province CEO, talk about the history of the forest. PILOT STUDY ON COLLABORATION WITH THREE OTHER CLUSTERS Per Andersson at Stora Enso and Linnea Johnsson, BillerudKorsnäs, wanted “It was a good chance for them to form new acquaintances, interact a forum for young engineers, for those who are new to the job or perhaps in a pleasant and relaxed environment and listen to an extremely Paper Province decided during the year to collaborate with three other clusters: bioeconomy which in a simple and clear way can market Swedish at the end of their education. A place for networking and for exchanging interesting presentation by Maria Hollander,” says Peter Edberg, experiences with others who are also new in their job or in the industry. This Project Manager at Paper Province. SP Processum in Örnsköldsvik, Smart Textiles in Borås and BioBusiness Arena technology and Swedish regions internationally. The areas for collabo- quickly turned out to be something that many people wanted. Per therefore The arrangers, Per Andersson and Linnea Johnsson, were very in Sundsvall. This was a pilot study which ended in August with the Swedish ration are connected primarily to new companies, commercialisation of contacted Paper Province and a collaboration was initiated to make such a pleased. Agency for Economic and Regional Growth as principal source of funding. The research results, research collboration, networking, internationalisation first gathering a reality. ”I have chatted with several people who were there and they thought purpose was to facilitate collaboration in the bioeconomy area and to learn and marketing. About forty young engineers, economists and foresters gathered at the that it was really good, so I think it was successful,“ says Per. from each other's competences in order to achieve international distinction. All clusters afterward envisaged deepening the collaboration and simulta- Plaza in Karlstad. Our ambition is for the gatherings to be repeated. The vision is to create together a national platform for a forest-based neously asked others to be involved in the future work as well. 28 29

Two networkers of the year WELCOME It should pay to be a skilled and diligent networker, and therefore Paper Province designates the networker of the year. In 2016, first place was shared by Johanna Svanberg from Svanberg Bona Officia and Pontus CLUSTER LUNCHES Nordstöm from Etteplan. Paper Province arranged 31 meeting places with a total of 537 participants at meeting places such as the During 2016, four popular cluster lunches were organ- cluster lunches and Papermakers Night in 2015. ised where the companies opened their doors and During the 2016 annual general meeting, the Networkers of the Year were revealed – Johanna invited people to mingle and wander round. Svanberg and Pontus Nordström. Both had participated in 2015 in seven of Paper Province's 31 meeting places. The first one was DHL Freight Sweden which acted as host and showed its “I think it is a good way to keep track of what is hap- operation. pening in the region and among the member compa- Representatives from the member companies gather at the cluster lunches, nies. As one who is self-employed, I can't shiver under eat lunch, mingle with others and look around the host company. At DHL it was the chair because it's a little like the break room, you get to meet others,” says Johanna Svanberg. Benny Johansson, Maria Johansson Maltez and Erik Svensson who talked about She did not have any immediate favourite among the the company. gatherings she visited. At the next cluster lunch, the guests got to see what happens inside the gates On the other hand, Pontus Nordström did. at the mill in Bäckhammar. Nordic Papers CEO Per Bjurbom talked about the “Papermakers Night is a fantastic opportunity,” > Kenya's ambassador H.E. Dr. Joseph K. Sang visited Paper Province. company. he recommended. The third company to act as lunch host was Miller Graphics in Sunne. The The cluster lunches are also something he took a company is an expert in prepress and offers services in flexography, photogra- liking to. “They are terrific. They're held during a lunch so they vure, offset and digital printing. do not take too much time while you have an opportuni- Mikael Eriksson, CEO, and Håkan Nilsson, Sales Manager, provided an insight ty to come and meet others and see other companies. into the operation. If you also want to acquaint yourself with our At the last cluster lunch of the year, the guests had an opportunity to visit and meeting places, keep an eye on our calendar on the look round at Coldwater-Jocell in Kil – an international supplier of consumables website where all the events appear.” to the paper industry. Branch Manager Mats Lindström spoke and acted as guide at the company. AMBASSADOR The four cluster lunches attracted a total of 99 visitors. VISITS VÄRMLAND Kenya's ambassador to Scandinavia, H.E. Dr. Joseph H.E. Dr. Joseph K. Sang took a little extra interest in the LignoCity test facility. K. Sang, visited Värmland in August. Among other “Your work around the possible applications of lignin is very interesting things, he paid a visit to us at Paper Province where to us,” he said after the meeting. he got to learn more about the forest industry He also said that he sees good opportunities to collaborate in the future with the cluster in some way. regionally and internationally. The visit was successful and interest in visiting the various mills grew. “Your work around H.E. Dr. Joseph K. Sang had a crammed schedule during his visit to Värm- land. In addition to Paper Province, he also found time, for example, for Cellcomb, Pöyry, Kils Municipality, Karlstad Innovation Park and Löfbergs. the possible For us at Paper Province, it felt good to get an opportunity to talk about the region's strengths in forest-based bioeconomy, our innovative members and the one-of-a-kind in the world competence in packaging. applications of lignin CLUSTER We also talked about how we as a cluster work to strengthen the HOST members' competitiveness. is very interesting” The cluster lunches are Kenya's ambassador also got to hear about the Paper Province project a perfect occasion to make Vinnväxt and how the SEK 130 million that has been awarded has an new contacts. Here it is opportunity to promote development, how we work on innovations and > H.E. Dr. Joseph K. Sang our member company DHL which acts as host. about the opportunities with wood. For example, components of the tree Erik Svensson talked can go to making pharmaceuticals, fuel and clothes. about the company. 31

“UPWARDS AND ONWARDS”

The 26th of May 2016 was an exciting day for nationally and internationally may never return. The bioeconomy is everyone involved in our Vinnväxt initiative. It scorching hot at all levels – from the EU down to our regional environment, and Paper Province is already a recognised player in the area.” was the anniversary of the ten-year financing we were awarded by Vinnova in 2013. Every three The evaluators also doled out a little constructive criticism in the evalua- years Vinnova evaluates the Vinnväxt initiative, tion. Primarily they wanted us to be even more innovative and work more and in May 2016 it was Paper Province's turn. on “bioimagination”. What is there apart from what we can see today? What products and services need to be available on the market within Have we done the right things in the right way? 10-20 years to create the forest-based bioeconomy? Finding the way Does Vinnova still have confidence in us? there requires all creative people and companies in this region to take part – and dare to take risks! The evaluators from Vinnova interviewed people who work in, finance or in other ways participate in the initiative's development and results. The The evaluators come from various places in the world. Paper Province was interviews were an hour each, and the persons invited were those of us reviewed by Lisa De Propris, Professor of Regional Economic Development who work in the organisation, the board of at the University of Birmingham, Tiina Puursula, Business Director, Gaia directors and public sector representatives Consulting Ltd, Finland, Professor Markku Sotarauta, FeRSA, from municipalities, Region Värmland, University of Tampere, and researchers and management from Professor Jack Saddler, Karlstad University, as well as innovators Department of Wood and small enterprises. The schedule was Science, University STUDENTS tight. There was tension in the air. We were of British Colum- obliged to be approved in this evaluation in bia, Canada. MEET MEMBER COMPANIES order to receive continued financing. The evaluators worked intensively on compiling their impressions, and the next day everyone gath- Competence is an important issue for companies. In order to deliver, knowledgeable ered again to hear their feedback. And – we passed with distinction! The evaluators particularly praised the personnel are required and engineers are exactly what are very sought-after. At the fine collaboration we have and the fact that all participants same time, students want a stimulating and entertaining job after their studies. Based have a common target image of what we will accomplish. on this, we arrange annual student trips in which companies and students get to meet. The positive result provides us continued financing for three years. But – it does not mean that any of us can relax! By bringing the two together – students and companies – we hope to In March, future engineers from Chalmers went on a field trip to “Upwards and Onwards" were the closing words in the eval- be able to act as a link between the need for competence and the quest Karlstad. They had a chance to meet six member companies - Nordic uators' report – and perhaps it is true that the challenge that for a job. Consequently, we arrange annual student trips to some of the Paper, Stora Enso, BillerudKorsnäs, Valmet, BTG and Sweco. This was a lies before us in the coming three-year period is greater than member companies for future engineers – one for students at Karlstad day that created many impressions and new contacts. what we saw before us in 2013. With the positive result we have University and one for Chalmers students – so they get an insight into had so far, expectations are high. what interesting career paths are available within our industry. At the Six months later, the trip originated from Karlstad University. same time, the companies get an opportunity to display their operations It was on a day in October when representatives from our member “I will contend that the chance and establish contacts with the talents of the future. In that way, they can companies and engineering students at Karlstad University had we now have to build some- be a step ahead in their own competence development. an opportunity to meet each other. We filled a bus with 50 future thing bigger and better than engineers and set out to meet seven companies: Valmet, Stora what we already have and The student trips are an activity which always attract a full bus and which Enso Skoghall, Cowi, SOMAS, Nordic Paper Bäckhammar, BTG to take a prominent position are appreciated by both students and participating companies. and Sweco. on the bioeconomy map both 32 33

“Digitalisation imposes new requirements on leadership. By improving competitiveness, the digital maturity in the company is improved, which leads to improved competitiveness.” DIGITAL > Joakim Jansson, entrepreneur, author and consultant FORESTRY Together with Compare, we issued an invitation to an informative conference on how competitiveness But why have we lagged behind Sweden in digi- An industrial enterprise which recently completed comprehensive can be enhanced with the talisation? And why is it such a hot question right work on digitalisation is Stora Enso Skoghall. The participant thus aid of IT companies. now?” Joakim Jansson, entrepreneur, author and had an opportunity to listen to Björn Wikström, Systems Engineer at consultant, spoke about the digital transformation Stora Enso Skoghall Mill, who spoke about how they introduced a new which he defines as the adaptations a company system for their server and hard drive centre. The requirements were makes in order to be competitive in a digitalised a system that could run round the clock, handle a very high load and world. store a great quantity of images with defects for a long time. In March “Digitalisation has 2016, the new virtual system centre was ready. become a matter for the “We were the first in the world with such a large server and hard board of directors and disk centre. Now we have a system which is not only linked to our has spread to many different customer requirements but has also become support for operators industries. No one is immune, and troubleshooting. It is a living system and it is easy to create new everyone is being affected and servers in the system.” business logic is changing. There are DIGITALISATION often different images in an organisa- The objective for the day is to investigate the interest in a network tion of what digitalisation is and therefore in the area of digitalisation for the paper and pulp industry which cre- it is important to examine the concept. It may ates great value for both branches. A survey among the participants Great interest in a network within the industry involve hardware and software but also more showed that the interest in a network was great, and a further look behavioural methodology questions. Nor is it only will be taken at common challenges and projects to work on and get the product or service that is delivered. Today it is inspiration from other practical examples. the entire user experience that is taken into account. “There was an unbelievably high level of energy in the morning. How can we with the aid of the region's IT companies digitalise the forest-based bioeconomy and thus What can be done then to become more competitive? By expanding or Many people are chatting with each other and there is great interest in challenging existing offerings, a company comes a long way, said Joakim. collaborating. Local contacts should not be neglected because it is in enhance competitiveness? Compare and Paper Province issued an invitation to a half-day conference However, many companies in the processing industry are very con- close relationships that new ideas arise,” said Raija Bådenlid, R&D and in which fifty participants had a chance to hear about the industry's challenges and to be inspired by servative. It is important to set up sub-goals and play it by ear, starting Innovation, Stora Enso Skoghall. presenters and good examples from the industry. At this moment we are facing the fourth industrial with what the company's values, mission and vision are in order “The technology already exists there and it is a matter of working to understand why and where the digitalisation should be with the people in the organisation and more soft questions. When revolution, and the manufacturing industry is headed toward more service-based business models. carried out. a company has decided to digitalise, they need a combination of or- ganisational developers and technical competence. There are several “We need to make radical changes if we are to keep ourselves competitive. pening is that the rest of society is connecting itself and new players Joakim is the author of the book “Att leda digital transformation” consultants within the Compare cluster who work on this, and I believe We must become better at adopting new techniques and adaptations and are entering the market, such as Google with solutions in cottage (“Leading Digital Transformation”) in which he described how organi- that this mix can help the companies in Paper Province to grow,” said we need to see new suppliers and solutions. That is why it is so important industry. They are coming in and challenging the processing industry,” sations can work smarter on their digital development and both help Carl Fredrik Kastengren of Berotec. to link information technology and communications companies with the said Susanne. strengthen existing operations and develop new digital businesses. paper and pulp industry,” said Susanne Timsjö, Deputy National Program She used Augmented Reality as an example of creating even more An essential part is that the CEO and the management group bear the Manager for the Process Industrial IT and Automation initiative (PiiA). effective organisations. This involves enhancing physical reality with a responsibility for the company's digitalisation. Susanne also spoke about technical solutions that can be linked to digital application. “Digitalisation imposes new requirements on leadership. By improv- the industry. “But what is most important is to start looking at a defined problem ing innovative vitality, the digital maturity in the company is improved, “The Internet of Things is nothing new in the industry. What is hap- and then peeking at solutions in order to improve in the best manner.” which leads to improved competitiveness,” said Joakim. Text: Hanna Grevillius 34

PRAISE FOR WOOD

“Together with our Norwegian friends, we have all the requisites to be world-best in wood construction,” said County governor Kenneth Johansson, while introducing to the seminar “Build With Wood” in February. Some eighty stakeholders participated in this daylong tribute to modern wood construction's many advantages. Kenneth Johansson led off by declaring that wood construction is climate-smart. He also was of the opinion that we need to improve purchaser competence, in order to increase the tempo of wood construction. “We need to have more municipalities formulate clear wood construction strategies.

Susanne Rudenstam, who is the head of the Swedish Wood Building Council, works to increase wood construction in Sweden. She said that because of urban fires, we have historically had a prohibition on building higher than two floors in wood. But when we joined the EU, the regulations were loosened up. The regulations went from being material- based to being function-based instead. And that was needed, in her opinion. “Today construction is a greater climate villain than private motoring. And production of building materials such as cement and concrete are responsible for a considerable share of the emissions. When we will be building in the next forty years just as much as during the entire history of humanity, then the materials must be a part of the solution. Why it is climate- Then wood must be used to a much greater degree,” according to Susanne Rudenstam. smart to build with wood And production of building materials such as cement and concrete are responsible for a considerable part of the emissions. In addition, wood is lighter than most other build- • Binds carbon dioxide ing materials, which means that it generates fewer transports. According to Rudenstam, • Generates fewer transports the current trend is very positive. • Renewable “Currently ten per cent of multi-storey buildings and ninety per cent of small buildings are built of wood, and some twenty municipalities are working right now to create wood construction strategies.” For Maria Hollander, CEO at Paper Province, wood construction is virtually a matter of conscience. “We must ask ourselves all the time whether there is something we can do better than we are doing today. We have the chance to change society and show the way into BUILD NEW the fossil-free society with help from our forest and biobased materials.” The seminar was arranged by the association Hållbart byggande i Värmland STRUCTURES ("Sustainable Construction in Värmland"), in collaboration with the Värmland County WITH WOOD Council, Skogsriket and Paper Province. Wood must be used to a much higher degree, says Susanne Rudenstam, head of the Swedish Wood Building Council 37

Networking and learning at NORDREGIO FORUM

> Peter Edberg at Paper Province and members from Brobygraf- Nordregio has produced the report “Green iska, Mondi, Karlstad University and Kostym traveled to Japan in Growth in Nordic Regions - 50 ways to make October. Representatives from Business Sweden, Packbridge and RISE are also in the photo. it happen” which is centered on the transition to the green, sustainable and bioeconomic society. They also arranged the Nordregio Forum 2016 conference in Helsinki, Finland. Paper Province is included in the report and was present at the conference, of course.

Nordregio Forum is one of the largest conferences in the Nordic countries involving the “Green Transition” and Bioeconomy. It dealt with PP IN PLACE IN TOKYO bioeconomy, sustainable development and the green transition. It was a good chance for us to gain new knowledge In October, Paper Province project manager Japanese, there was still a great deal of plastic. When including environmental and social aspects, the Japanese focus on the and network with other players they say that they are environmentally aware, it is application. Peter Edberg found himself at Tokyo Pack in and experts in the area. The because they use thinner or less plastic in the packaging. “They displayed many interesting innovations with new opportunities to theme was From Fossil to Japan to represent the cluster. It was a trade fair Unfortunately, there are very few who use fossil-free connect the package with the digital world, among other things with QR Bio-based and Sustainable with a focus on the packaging industry which packaging materials,” says Peter Edberg, Project codes. The Japanese packages also had new smart ways to be opened. Manager at Paper Province. Economy. attracted around 65,000 visitors. Members “Another observation is that in Japan it is more common to have smaller packages than in Sweden. Packets of crisps weigh approximately Nordregio Forum 2016 also func- Brobygrafiska, Mondi, Karlstad University and At the opening ceremony for Tokyo Pack, Sweden's 40-80 grams. In Sweden, the packets that are marketed are often 200- ambassador to Japan, Magnus Robach, made a tioned as the concluding confer- Kostym were also present. 300 grams,” says Peter. ence for the Nordic prime ministers' speech in which he mentioned the similarities green growth initiative. They summarised the results from the between Sweden and Japan and Helén Williams at Karlstad University describes this phenomenon as the project and presented new cooperation measures to achieve a In Sweden, the packaging industry is striving to be in the forefront the great strengths which Japanese exhibitors' answer to the question of reduced food wastage. green economy in the North. both countries have in which among other things means a great focus on sustainable devel- “'The innovations we saw at the trade fair were often of a social nature There is no “one-size-fits-all solution” in the transition to a the area of packaging. In- opment. For example, more and more Swedish packaging is manu- but without a connection to resource conservation and a holistic approach, greener economy. Therefore green growth in the Nordic countries factured in biobased materials, which results in a lower climate effect novative vitality and raw in which reduced food wastage is the single most important function of the was examined with a wide-angle perspective. Fifty examples and requires less and less material to produce. Swedish packaging materials are foremost package. Although they are still dealing with the question of food wastage, were studied in a broad spectrum of contexts. The most important development has a high level of ambition and among these. through their striving for smaller package sizes,” she says. attributes in the Nordic green growth were altogether illuminated wants to be an example, and it is important However, one interest- An entire day of presentations from the Swedish participants was held and they were formulated in order to be a source of inspiration to be in the international arena and display ing difference between during the trade fair. for both practitioners and decision makers. Swedish competence and new innova- our packages and how “We spoke there about various packaging solutions from Sweden The fifty cases were divided into five areas: circular economy, tions. That is also the reason for the we work with them which in various ways can contribute to sustainable development. Helen bioeconomy, blue growth, clean tech and renewable energy and participation in the packaging trade fair purely from an innova- Högberg from Kostym, Ulrik Karlsson from Mondi and Helén Williams green cities and municipalities. Tokyo Pack in Japan, which attracted tion perspective is that from Karlstad University spoke about everything from package design to Paper Province was included under bioeconomy as one of the about 65,000 people. while we in Sweden are news in flexography and about how packages can be made into herroes examples. “I believe we can assist with a looking more holistically instead of villains in the battle against food wastage. Approximately fifty great deal concerning biomaterials people listened and asked questions. for packaging. At the trade fair, It was an interesting and informative trade fair. where 99 per cent were “Many new contacts were made, including within the Swedish delega- tion of seventeen people, but primarily with people within the Japanese packaging industry,” says Peter. Along with the Swedish companies, Packbridge, Innventia, Mid Sweden University, Innoscentia and Business Sweden were also present. FESTIVE TRADITION Papermakers Night with mingling and presentations

Papermakers Night is a dear tradition which returns twice a year. We invite the regional forest industry's representatives and listen to inspiring presentations and entertainment, eat dinner and network with each other. In 2016, we celebrated at Elite Stadshotellet on two occasions – April and November. > Active public at Papermakers Night. > Tobias Jansson explains what a circular economy means in practice and Katarina Stetler talks about creativity and how to make use of it. In April the theme was the circular economy. Good examples of innovative companies that adopted the concept were provided, and a picture was created of where we are headed if nothing is done to the current resource consumption. Tobias Jansson from circulareconomy.se focussed on exemplifying what is actually involved in practice. For example, how waste from a process is taken care of in various ways in order to make it into suste- nance for another. The evening's other speaker was Kjell Johansson from Hydro- ware who explained how hoists can be a product with potential for improvement from a circular perspective.

In November it was time for a party again. The speaker this time was Mattias Säfström from IUC / Stål & Verkstad. He spoke about the state of the production shop industry in Värmland and what potential for improvement exists. Katarina Stetler from Kairos Future talked about how to make use of the creative potential in one's employees, customers and network. Many of us acquired tools we can use in our different operations. Communications consultant Henrik Pallin took up young people's Internet habits and how the role of parent has changed. 40 41

WEB TRAFFIC 2016 IN 33,102 234 Web visits Articles in which we We had over 33,000 visits on our website. are named FIGURES We were mentioned in 234 articles on the Web. 19,352 Unique visitors 2,764 The 33,102 visits were made by 71,491 nearly 20,000 people Showings on Vimeo Page views Our films are on the video channel Vimeo, and during the year they were shown 2,764 times. The visitors have clicked on a total of 74,491 web pages.

PUBLIC RELATIONS

178 64 40 7 ACTIVITIES

15 lectures 5 innovation cases 19 events 733 participants News articles Letters Press releases Films We went out and held lectures We received five new innovation cases We arranged 19 events, for example, 733 people participated in our events The news articles have been pub- Letter sending can involve, for News about our activities and those Self-produced films which depict on 15 occasions. and are now working on about 20 in Papermakers Night, cluster lunches during the course of the year. lished on our website. example, invitations, newsletters of our members which we sent out our activities and are distributed on total. This involves our helping innova- and student travel. and reminders. to other media such as newspapers social media. tors to develop their innovations. and broadcasting media. The team that did the job

> Peter Edberg, Project Manager/ > Jeanette Löfberg, Project Manager/ > Marcus Elmer, Project Manager/ Innovation Advisor Innovation Advisor Innovation Advisor

> Maria Hollander, CEO > Kent Olsson, Project Manager > Magnus Persson, Project Manager/ Innovation Advisor

> Malin Hildén, Communicator > Robert Rundberget, Communicator > Elisabeth Söderlund, Administrator

Paper Province Board of Directors From left in the back row: Bo Edvardsson, Karlstad University, Peter Olsson, Stora Enso Skoghall, Lars Rosén, Nordic Paper and Erik Kornfelt, Valmet. > Camilla Persson, Economist > Lisa Brevik, Controller From right in the front row: Uno Olsson, Cowi, Eva Pettersson, ÅF, Anna Wilhelmsson, Cowi and Christer Gustavsson, Pöyry. Absent from the photo: Fredrik Turzik, BillerudKorsnäs, Anders Brolin, Stora Enso Research, Helen Högberg, Kostym, Ulf Johansson, Karlstad Municipality, Jan Eriksson, Valmet Paper Province is a world-leading cluster in forest-based bioeconomy in Värmland, Dalsland and Närke. The cluster organisation is owned and run by some one hundred member companies. Through cooperation we develop and improve the competitiveness of member companies and the entire region.

PAPER PROVINCE IS CO-FINANCED BY:

Paper Province, Sommargatan 101A, 656 37 Karlstad, +46 54 24 04 60, www.paperprovince.com