WELCOME TO UPM KYMI MILL A quick word about safety before we start
• Take a moment to read the safety information handout given to you VISITOR • Wear your visitor identification card in a visible place • Be careful in stairs, hold the handrail • Always stay with your host and follow your host’s instructions • Smoking, drugs and alcohol are prohibited in UPM premises • Photography and audio/video recording are not allowed
Emergency contact point number is: +358 2 041 52300
2 | © UPM Public January 2013 Your visit programme Wednesday, 10 April
Guests: Alexandra Kozlova, Publish Olga Kharlamova, Print Week Elena Maslova, Kursiv Alexander Kharatyan, Compuart Ekaterina Kirichenko, SBO-Paper Andrey Gorbunov, Expert Olga Mordyshenko, Kommersant
Hosts : Matti Laaksonen, production director, UPM Kymi paper mill Tommi Heinonen, director sales operations distributors, UPM paper business group Matti Tikka, production manager, UPM Kymi pulp mill Irma Niemi, communications manager, UPM Kymi
3 | © UPM Public January 2013 Your visit programme Wednesday, 10 April
9.00 – 9.45 Welcome and UPM presentations; Tommi Heinonen, Matti Laaksonen 9.45 – 12.00 Tour at the paper mill; Matti Laaksonen 11.00 Mill site tour, visit at the pulp mill’s recovery plant, Matti Tikka 12.00 – 13.00 Lunch at staff restaurant Koskela Discussions and coffee, Koskela 2 nd floor 13.15 Kouvola City tour 14.00 Departure for the airport
4 | © UPM Public January 2013 UPM – THE BIOFORE COMPANY 2013 Tommi Heinonen, Director Sales Operations Distributors, UPM Paper Business Group Content
• UPM – The Biofore Company today • UPM Paper today • UPM Kymi today – Safety in the mill – Mill in short – Mill area map and location – Products and production – Employees – Environmental sustainability – Guidelines for the mill tour
6 | © UPM Public UPM today
• Global operator - Sales operations in 67 countries, production in 17 countries • Sales 10,4 billion euros in 2012 • 22,000 employees • Listed in the NASDAQ OMX Helsinki stock exchange
Energy and pulp Paper Engineered materials 3,700 employees 12,600 employees 5,300 employees
• Hydro, nuclear and • Focus on graphic • Label condensing power and printing papers • Plywood • Biofuels • UPM ProFi • Pulp • Forestry and biomass businesses • Plantation operations • Wood sourcing • UPM Timber
7 | © UPM Public January 2013 Sales network and production plants
Global sales network 67 production plants in 17 countries: - Europe: 55 - USA 5 - Brazil 1 - Uruguay 1 - China 2 -Australia 1 - Malaysia 1 - South-Africa 1 8 | © UPM Public January 2013 UPM personnel by area (22,000 employees at the end of 2012)
RoW 4% North America 5%
Other Europe 12%
Finland 39%
France 5%
United Kingdom 6%
Asia 8%
Germany 21%
9 | © UPM Public January 2013 Sales by business in 2012
Plywood Energy Pulp 4 % 2 % Label 8 % 12 % Forest&Timber 7%
Paper 67 %
10 | © UPM Public January 2013 UPM – The Biofore Company
VISION UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. • Cost leadership, change readiness • Engagement and safety of our people
PURPOSE Value creation from renewable and recyclable materials • Fibre-based • Energy-related • Engineered materials businesses
11 | © UPM Public January 2013 Paper
Produces magazine paper, newsprint, fine and speciality papers for a wide range of end-uses. • Annual paper production capacity: 12.2 million tonnes • Manufactured in 21 modern and sustainable paper mills in Finland, Germany, UK, France, Austria, China and USA • Combines heat and power (CHP) plants operating on paper mill
Key figures 2012 Sales (M€) 7,150 Operating profit (M€)* 2 Personnel 12,627
* Excluding special items
12 | © UPM Public January 2013 PAPER
World's biggest graphic papers producers
Capacity 1,000 t 14 000
12 000
10 000
8 000
6 000
4 000
2 000
0
Source: Pöyry, UPM
13 | © UPM Public 21 February 2013 PAPER
Paper prices in Europe
EUR/t 900
800 WFUr 80 g/m²
700 WFCr 100 g/m² LWC off 60 g/m² 600 SC rg 56 g/m²2
500 News 45 g/m²2
400
300 03 04 05 06 07 08 09 10 11 12
Source: RISI/PPI
14 | © UPM Public 21 February 2013 PAPER
Graphic paper end-uses in Europe
Cut size Newspapers Business forms and Envelopes Books and Directories
Direct marketing Magazines
Catalogues
Source: Euro-Graph, RISI, UPM
15 | © UPM Public 21 February 2013 PAPER European Advertising expenditure by media 1)
USDbn 150
100 Others
TV
50 Internet
Newspapers and Magazines
0 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
1) excl. direct mail Source: Zenith Optimedia,
16 | © UPM Paper is a solid part of the future communications
• We at UPM believe in paper, but we also believe in the dynamic coexistance of digi and print – There are several examples of effective cross media campaigns (Ikea, LG, Marie Claire) • Paper´s role as the first point of contact in cross media solutions is strong — also in the future. • Paper is a solid part of the future communications infrastructure
“UPM Paper - The Gateway “The Future of Print” to Exciting Experiences” (14 min, English) (3 min, English, Finnish, German, French) watch here! watch here!
17 | © UPM Public ENVIRONMENTAL SUSTAINABILITY Committed to responsibility - social principles
Community involvement High performance through Safety and wellbeing people development of our people
Responsible sourcing
Responsible leadership
19 | © UPM Public Committed to environmental sustainability - environmental principles
Low-emission energy
Certified fibre from Sustainable, sustainably recyclable and managed forests reusable products
Minimising the Reusing waste impact to local water systems
20 | © UPM Public PAPER – MORE WITH BIOFORE Ecodesign – Our approach to sustainability
We use Sustainable Raw Materials
We take account Our mills are of the whole Life Resource Cycle Efficient & Clean
Our products We use smart have proven transport environmental solutions credentials UPM named ’Most Innovative Company’ 2012
21 | © UPM Public Paper lifecycle
Forest Fresh fiber Paper production production
Production of Printing recycled fibers
Incineration / Deinking paper / Distributio landfill Recovered paper n
Reader
Watch a video! “Paper lifecycle”: click here!
22 | © UPM Public 22 SUSTAINABLE FORESTRY Paper is made from a sustainable raw material
• We trace the origin of the wood we use – 100% of it is legally harvested from sustainably managed forests • Certified and controlled wood – 78% of the wood we use is certified, 100% is Controlled Wood – Our target is to have 85% certified wood by 2020 • Forest Certification – Proof of legality and sustainability – International certifications supported : FSC & PEFC • Reforestation – UPM plants millions of trees each year under forest management plans spanning up to 50 years in length
Take a look! UPM Plantation life: click here! 23 | © UPM Public UPM KYMI Today Matti Laaksonen, Production Director, Kymi Paper Mill Committed to workplace safety - Step Change in Safety initiative
UPM launched a company-wide safety initiative “Step change in safety 2012–2014” and during the first year of the programme we were able to reduce the number of lost time accidents by 40%
UPM’s safety principles 1. Safety first 2. Safety starts with me 3. We can prevent all accidents
25 | © UPM Public Safety / Lost Time Accidents 2004 -> situation 12.2.2013 80
70
60
50
40
30
LTA /pcs, frequency LTA 20
10
0 LTA, pcs 75 47 49 40 39 24 24 15 7 1 frequency 35,8 24,8 25,5 23,5 25 18 23,1 14,6 6,3 7,6
26 | © UPM UPM Kymi is located in Kouvola
Kouvola: ° Population approx. 87 000 ° Area over 2.800 km² ° Location in southern Finland, some 140 km northeast of Helsinki ° On the bank of the River Kymi. Kouvola (Kuusankoski)
Hamina Kotka UPM Kymi Helsinki
27 | © UPM Public UPM Kymi in short
• The Kymi mill is an environmentally friendly integrated mill site that produces pulp, energy and paper. • Our products include – coated and uncoated fine paper – bleached hardwood and softwood pulp • The paper production capacity is 830,000 tonnes and pulp production capacity 570,000 tonnes.
• Kymi employs about 630 people.
• Kymi was established in 1872.
28 | © UPM Public Kymi mill site
6 4
5
2 3
1
7 1 Main gate – Fire station 2 Paper Mill 3 Pulp Mill – Fibre line 4 Pulp Mill – Recovery plant 5 Chip storage 6 Kymin Voima Oy 7 Effluent treatment
29 | © UPM Public Kymi integrate ─ production plants at the mill site
Kymi paper mill PM 8 and coater: coated fine paper (WFC) PM 9 and finishing room: uncoated fine paper (WFU)
Kymi pulp mill Fibre lines: pine and birch pulp Chemical recovery plant Drying machine
Kymin Voima Oy's biofuel powerplant: bioenergy Owners: Pohjolan Voima Oy 76 % (UPM), KSS Energia Oy (24 %)
PCC plant (Schaefer Kalk Finland Oy) Production of PCC (precipitated calcium carbonate), filler
30 | © UPM Integrated pulp, energy and paper production at Kymi
Kemira Schaefer Kalk Chemicals PCC Caustic Chlorine soda dioxide Drying machine Wood PULP MILL Pine Cook- Wash- pulp Wood Oxygen PM 8 + C3 ing ing Bleaching handling Birch - debarking pulp PMPM 9 9 - chipping Paper mill Paper White Black Turpentine liquor liquor Tall oil ENERGY Steam PRODUCTION Electricity Production of Evaporation cooking liquour Purchased Carbon dioxide electricity from Black liquor RECOVERY UPM, Energy BOILER burning Steam District heating Electricity Kymin Voima Oy KSS Energia Oy Bark and primary sludge
31 | © UPM Public Kymi’s strengths
• Integrated pulp, energy and paper production • Environmentally-friendly production • High energy efficiency and self-sufficiency • High use of biofuels • A logistically good location for the Russian market • High quality of the products • Effective operations
32 | © UPM Public EMPLOYEES Personnel at Kymi
• Kymi employs about 630 persons. – Pulp, energy and paper production, maintenance • The mill is running round the clock . Working hours: continuous three-shift work, daywork, two-shift work
| © UPM Public ENVIRONMENTAL SUSTAINABILITY Certificates at Kymi
Certificates
ISO 9001 Quality Management System since 2003 (ISO 9002 since 1993) ISO 14001 Environmental Management System: ISO 14001 since 1996 (before BS 7750, 1995), EMAS since 1999 EMAS EU ECO-LABEL European Union Ecolabel in 2006. The products covered by the licence fulfil the ecological criteria for copying and graphic paper OHSAS 18001 Health and safety certificate in 2003
PEFC In the pulp and paper production chain-of-custody standard PEFC TD Annex 4 in 2005 (before SMS 1003-1, since 2003). Right to use PEFC logo, (PEFC TD Annex 5) in 2005. FSC The Independent Assurance for Responsible Forest management in 2007
36 | © UPM Public Continuous improvement process at UPM’s paper mills over the last 10 years
Water -30% Per tonne of paper
Electricity -20% Per tonne of paper
Waste to landfill -70% Per tonne of paper
Certified fibre +80% From 0% in 2002
37 | © UPM Public Continuous improvement process at UPM’s Kymi mill over the last 10 years
Water - 50% Per tonne of paper
Electricity KYM Mill picture - 55% Per tonne of paper
Waste to landfill - 90% Per tonne of paper
Certified fibre 65%
38 | © UPM Public KYMI PAPER PRODUCTS AND PRODUCTION Kymi paper products
UPM Finesse Printing UPM Fine papers
UPM Office, Future, Yes, KymLux Office UPM PreLaser, UPM PrePersonal papers UPM Form, UPM Letter UPM Letter Insert
UPM DIGI Laser, UPM DIGI Laser+ Digi papers UPM DIGI Finesse gloss UPM DIGI Finesse premium silk UPM DIGI Finesse silk UPM DIGI Finesse matt
Speciality UPM Jetlabel papers UPM Vellum
40 | © UPM Public Kymi paper mill's production and products
Paper production capacity 830,000 tonnes PM 8 -LINE (PM 8/C3) PM 9 SHEETING WFC WFU A4 UPM Finesse UPM Fine Yes, Future - Gloss UPM Letter, UPM Letter Insert KymLux - premium silk - silk UPM Jetlabel - matt UPM PreLaser UPM Office UPM PrePersonal - multifunction - copy/print UPM DIGI Finesse UPM Form - gloss - premium silk SmartWrap - silk UPM DIGI Laser - matt UPM DIGI Laser+ WFU COATED SHEETS UPM Vellum UPM Finesse
41 | © UPM Public Kymi paper mill – Line PM 8
Width 8,5 m
Max speed PM 8: 1 600 m/min Coater 3: 2 200 m/min Started/ PM 8: 1983 / 2001 modernisation Coater 3: 2001
• UPM Finesse gloss, premium silk, silk and matt 80 – 150 g/m², UPM DIGI Finesse gloss, premium silk, silk and matt 80 – 150 g/m². Double coated fine paper with glossy, silk finish and matt. For graphic and digital printing . • UPM Vellum for labels, uncoated, 70 g/m²
42 | © UPM Public Paper mill – Paper machine 8
43 | © UPM Public Kymi paper mill – Line PM 9
Trim 8,5 m
Speed max 1 350 m/min Started/ modernisation 1988 / 1995 / 2007
• UPM PreLaser, UPM PrePersonal, UPM Fine, UPM Form, UPM Letter, UPM Letter Insert, UPM Jetlabel, UPM DIGI Laser, UPM DIGI Laser+, 70 – 100 g/m² • Uncoated fine paper for copying and printing, preprinted forms, envelopes and labels
44 | © UPM Public Paper mill – Paper machine 9
45 | © UPM Public Paper mill – Sheeting
• A4 production and products – 2 cutting lines – SmartWrap - wrapping package line – Products: • Yes Bronze, Yes Silver • Future lasertech, Future multitech • UPM Office multifunction, • UPM Office copy/print • KymLux, KymLux Premium
• Coated fine paper sheets (folio sheets) – 2 cutting lines – Products: • UPM Finesse (gloss, premium silk, silk)
46 | © UPM Public New sheeting line for folio sheets
47 | © UPM Internal Coated fine paper sheets from Kymi Mill
• Start up September 2012
• Approximately €15 million investment
• Coated fine paper sheets are used for various graphic printing purposes
48 | © UPM Internal The aim of the new sheeting line
• to serve customers in close-by markets more efficiently and flexibly
• to support the production efficiency of the integrated mill site
• the employment effect of the project is also positive
49 | © UPM Internal From forest to office paper – one hour / paper machine
3 3 105 m Fillers 10 000 kg 95 m
Birch pulp 24 000 kg Pine pulp 16 000 kg
8,5 m
Speed 75 km/h
50 000 per hour 20 000 reams A4
50 | © UPM Public Safety first!
GUIDELINES FOR YOUR MILL TOUR Guidelines for visitors
At the site, stay with your host
Use protective equipment provided to you
In emergency situations follow orders given by your host
Photographing is not allowed at the mill site
Smoking is not allowed
Camera surveillance on the site
52 | © UPM Public Our visitor tour today
53 | © UPM Public