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UPM KYMI MILL a Quick Word About Safety Before We Start

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UPM KYMI MILL a Quick Word About Safety Before We Start 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.
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