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THINKING CREATING MAKING GROWING Sustainability Report 2018 Welcome to our We’d like to show you how we are working with others, Sustainability Report for others. How we share our value as we grow together, think new, make change and create better for all. 12 34 THINKING NEW MAKING CHANGE How our ability to think in new How we adapt and change ways is key to our innovation to stay future focused 20 48 CREATING BETTER GROWING TOGETHER How we build on our strengths How it takes trusted partnership to create better outcomes to grow and improve Sustainability Report 2018 OJI FIBRE SOLUTIONS AT A GLANCE About Oji Fibre Solutions We are a company with in supermarkets, keeping primary fresh ideas and optimism, produce fresh, the paper bag or boxes in which your products arrive built on a strong heritage, or the products that contain our pulp WE ARE A and are proud to adopt such as coffee filters, tissues, nappies or cellulose fibre cement boards. SPECIALIST IN... our parent company’s We have a long-standing presence in forward-thinking principles regional New Zealand and a growing of quality, innovation and presence in Australia. After being MARKET PULP purchased by the Oji Group in 2014, We produce kraft sustainability. the company has benefitted from market pulps for use in the injection of new energy and We employ more than 1,840 people, various boards, tissues investment and is proud to be who work together to produce and specialty products. backed by the strength of the quality kraft pulp, paper and fibre world’s fifth largest pulp, paper packaging products from renewable, and packaging business. CONTAINERBOARD sustainably harvested forestry and 2018 we marked 145 years since the We produce kraft recycled wood fibre. Oji Group was founded. Looking to and recycled Oji Fibre Solutions is firmly part of the future, the company strives for containerboards to the circular economy. Trees are a the “Creation of Innovative Value” to be converted into natural, renewable resource that make a positive “Contribution to the packaging products. can be used efficiently to make Future of the World” and to act in environmentally sustainable products “Harmony with Nature and Society”. of high strength and quality. PACKAGING At Oji Fibre Solutions, we aspire to We provide smart You have most likely been touched the same ideals. packaging solutions by one of our products. It might be such as boxes, multi- the cardboard boxes that you see wall bags, specialty boards and paper cups. PAPER RECYCLING Fullcircle collects waste 2018 PRODUCTION paper throughout New Zealand for transformation into new products at our mills. LOGISTICS Lodestar provides shipping and domestic MARKET PULP CONTAINERBOARD transport solutions to deliver products to global markets. 530,577 375,138 Tonnes Tonnes CUSTOMER FIRST Putting customers first enables us to provide integrated services and meet their needs for quality solutions. CHEMICALS & PACKAGING BY PRODUCTS PRODUCTS 33,944 214,285 Tonnes Tonnes Oji Fibre Solutions 3 2018 highlights OUR INVESTMENTS ENERGY GENERATION OUR EMPLOYEES Transformation We are NZ’s largest producer We employ a total of bio-renewable energy of 1,846 people Tasman Mill Purchase 82% 17% 314,615,501 New Zealand Australia 130 ha radiata kWh generated pine plantation at Stoneleigh Forest 1% 2018 energy sources China, Hong Kong, Malaysia Manufacturing operations: Launch 78.6% 72.4% Bearing360 Renewable Energy from 22 231 energy biomass new graduates permanent and apprentices new starters 6.2% Energy from geothermal steam 40% 11% employees of our senior with 10 years+ managers are service with women Kinleith and Tasman the company Mills generate close to HEALTH AND SAFETY half of their electricity requirements internally 0 1.74 Product Safety Total Injury Rate Incidents (34% on 2017 results) RECYCLING We are NZ’s largest DESIGN AWARDS paper recycler Packaging Innovation and Design Awards 260,305 190,298 COMMUNITY for My FurBaby tonnes tonnes recovered fibre recovered 12 Our Yatala facility achieved collected fibre used in Projects provided Best in Design in the by Fullcircle our mills long-term support Food & Beverage Awards Sustainability Report 2018 CORPORATE OVERVIEW From our CEO Dr Jon Ryder Chief Executive Officer (CEO) Oji Fibre Solutions 2018 was another busy world-class K25TM fibre cement Sustainability is pulp and unbleached kraft pulp. integrated within year on our journey Combined, these projects secure to become a more a more sustainable future for the our business. sustainable business. Tasman Mill and the local community. Focusing on the future, we made Our primary focus, as always, is the strategic decision to expand health and safety. This year we made our forestry ownership with the significant investment in our health purchase of Stoneleigh Forest. and safety framework, processes, This will provide a sustainable and plant and equipment to make things secure source of pulp-log fibre safer. I am exceptionally proud of the close to our milling operations in inroads we have made in reducing New Zealand. We are working with total injuries, process safety the Overseas Investment Office incidents and notifiable incidents. regarding future investments. Other highlights of 2018 include Looking externally, we also grew celebrating the successful our partnerships. As a member of installation of a new evaporator the Climate Leaders Coalition, we system at the Tasman Mill in actively support New Zealand’s New Zealand and formally opening transition to a low-carbon economy. our new packaging facility at Yatala While in Australia, we entered an in Australia. Both initiatives signal our exciting new relationship with the owner’s support to invest and expand New South Wales Foodbank. Oji Fibre Solutions’ operations. In late 2018, in a great example of Updating the evaporator system has the company’s focus on innovation, been an integral part of improving we joined forces with Netlogix to equipment reliability and productivity establish Bearing360, a market- of the Tasman Mill. Other contributing facing shipping company offering projects include developing a new tailored solutions. geothermal steam line, replacing an I am proud to be leading a company old power boiler and an $18 million that is firmly part of the circular maintenance programme to address economy, creating value from natural, production issues. Over the course renewable and recyclable resources. of 2018 we also rationalised pulp production to concentrate on our Oji Fibre Solutions 5 From our Chairman Hiroyuki Isono Director and Chairman Oji Fibre Solutions Oji Fibre Solutions is a This year, we hosted Japanese, We are New Zealand and Australian strengthening strong, integrated fibre dignitaries in association with solutions business that trade visits, and for the Tasman Mill and reinforcing evaporator launch and at the opening benefits from Oji Holding event for the Yatala packaging the business. Corporation ownership. facility. It was a pleasure to bring these parties together, and we look In 2018, Oji Holdings celebrated forward to further collaboration. 145 years since the company was As a producer of a globally-traded founded. It is now one of the largest product, over the last 18 months companies in the global pulp, paper Oji Fibre Solutions has faced market and packaging sector. It has the headwinds. Competitive pressure management philosophy of acting across the pulp, paper and fibre in harmony with nature and society, packaging industry globally has creating innovative value and intensified following changes to contributing toward a new future. China’s domestic waste management Oji Fibre Solutions embodies this policy and volatility in trade terms philosophy in the values of being between China and the United States. innovative, built on strength, future Despite these challenges, I am focused and a trusted partner. optimistic about future opportunities As part of Oji Holdings’ aspiration for cellulose-based products. to reduce the environmental Natural renewable products that burden of its global operations, are low in carbon are growing in Oji Fibre Solutions is set to invest in favour at a time when consumers a new wastewater treatment system are increasing their scrutiny of at the Kinleith Mill. raw material inputs and seeking sustainable packaging solutions. Modernisation of Tasman Mill, expansion of packaging operations Through Oji Holdings’ scale, across Australia to better service market knowledge, pulp and paper customers there and a strong experience and research and commitment to managing development skills, it is helping to environmental impacts has improved create value in Oji Fibre Solutions and Oji Fibre Solutions’ future focused in the economies and environments positioning during 2018. in which we are located. Sustainability Report 2018 CORPORATE OVERVIEW Our products Market pulp Containerboard Packaging We apply our skill and We produce kraft and Oji Fibre Solutions’ experience to provide recycled fibre-based packaging business is world-class kraft market containerboards in a wide one of Australasia’s largest pulps for use in various range of weights to be fibre-based manufacturers boards and specialty converted into high-quality with ten facilities throughout products. Customers trust packaging products. New Zealand and Australia. us to deliver uniform quality HI GOLD™ is a premium light With an eye for creativity and products on time, every time. shade, high-strength liner for innovation, our in-house design performance packaging with teams work with our