WELCOME TO UPM KYMI MILL
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1 WELCOME TO UPM KYMI MILL
2 A quick word about safety before we start Take a moment to read the safety information handout given to you 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 VISITOR Emergency contact point number is: UPM Public January 2013
3 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
4 Your visit programme Wednesday, 10 April Welcome and UPM presentations; Tommi Heinonen, Matti Laaksonen Tour at the paper mill; Matti Laaksonen Mill site tour, visit at the pulp mill s recovery plant, Matti Tikka Lunch at staff restaurant Koskela Discussions and coffee, Koskela 2 nd floor Kouvola City tour Departure for the airport 4 UPM Public January 2013
5 UPM THE BIOFORE COMPANY 2013 Tommi Heinonen, Director Sales Operations Distributors, UPM Paper Business Group
6 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
7 UPM today Global operator - Sales operations in 67 countries, production in 17 countries Sales 10,4 billion euros in ,000 employees Listed in the NASDAQ OMX Helsinki stock exchange Energy and pulp 3,700 employees Paper 12,600 employees Engineered materials 5,300 employees Hydro, nuclear and condensing power Biofuels Pulp Forestry and biomass businesses Plantation operations Wood sourcing UPM Timber Focus on graphic and printing papers Label Plywood UPM ProFi 7 UPM Public January 2013
8 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
9 UPM personnel by area (22,000 employees at the end of 2012) North America 5% RoW 4% Other Europe 12% Finland 39% France 5% United Kingdom 6% Asia 8% Germany 21% 9 UPM Public January 2013
10 Sales by business in 2012 Label 12 % PlywoodEnergy 4 % 2 % Pulp 8 % Forest&Timber 7% Paper 67 % 10 UPM Public January 2013
11 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
12 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
13 PAPER World's biggest graphic papers producers Capacity 1,000 t UPM Public Source: Pöyry, UPM 21 February 2013
14 PAPER Paper prices in Europe EUR/t WFUr 80 g/m² WFCr 100 g/m² LWC off 60 g/m² SC rg 56 g/m²2 News 45 g/m² UPM Public Source: RISI/PPI 21 February 2013
15 PAPER Graphic paper end-uses in Europe Business forms and Envelopes Cut size Newspapers Books and Directories Direct marketing Magazines Catalogues 15 UPM Public Source: Euro-Graph, RISI, UPM 21 February 2013
16 PAPER European Advertising expenditure by media 1) USDbn 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
17 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 to Exciting Experiences (3 min, English, Finnish, German, French) The Future of Print (14 min, English) watch here! watch here! 17 UPM Public
18 ENVIRONMENTAL SUSTAINABILITY
19 Committed to responsibility - social principles High performance through people development Community involvement Safety and wellbeing of our people Responsible sourcing Responsible leadership 19 UPM Public
20 Committed to environmental sustainability - environmental principles Low-emission energy Certified fibre from sustainably managed forests Sustainable, recyclable and reusable products Reusing waste Minimising the impact to local water systems 20 UPM Public
21 PAPER MORE WITH BIOFORE Ecodesign Our approach to sustainability We use Sustainable Raw Materials We take account of the whole Life Cycle Our mills are Resource Efficient & Clean 21 UPM Our products have proven environmental credentials We use smart transport solutions Public UPM named Most Innovative Company 2012
22 Paper lifecycle Forest Fresh fiber production Paper production Production of recycled fibers Printing Incineration / landfill Deinking paper / Recovered paper Distributio n Reader Watch a video! Paper lifecycle : click here! 22 UPM Public 22
23 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 Take a look! UPM plants millions of trees each year under forest management plans spanning up to 50 years in length UPM Plantation life: click here! 23 UPM Public
24 UPM KYMI Today Matti Laaksonen, Production Director, Kymi Paper Mill
25 Committed to workplace safety - Step Change in Safety initiative UPM launched a company-wide safety initiative Step change in safety 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
26 Safety / Lost Time Accidents > situation LTA /pcs, frequency LTA, pcs frequency 35,8 24,8 25,5 23, ,1 14,6 6,3 7,6 26 UPM UPM
27 Kymi is located in Kouvola Kouvola: Population approx Area over km² Location in southern Finland, some 140 km northeast of Helsinki On the bank of the River Kymi. Kouvola (Kuusankoski) UPM Kymi Helsinki Hamina Kotka UPM 27 Public
28 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 UPM Public
29 Kymi mill site 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 UPM 29 Public
30 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
31 Integrated pulp, energy and paper production at Kymi Carbon dioxide Wood Wood handling - debarking - chipping White liquor Production of cooking liquour Caustic soda Black liquor burning PULP MILL Cooking Washing Black liquor Bark and primary sludge Evaporation Kemira Chemicals Chlorine dioxide Oxygen Turpentine Tall oil ENERGY PRODUCTION RECOVERY BOILER Bleaching Kymin Voima Oy Schaefer Kalk PCC Pine pulp Birch pulp Steam Electricity Steam District heating Electricity Drying machine Paper mill PM PM 9 9 Purchased electricity from UPM, Energy KSS Energia Oy PM 8 + C3 UPM 31 Public
32 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 UPM 32 Public
33 EMPLOYEES
34 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
35 ENVIRONMENTAL SUSTAINABILITY
36 Certificates at Kymi Certificates ISO 9001 Quality Management System since 2003 (ISO 9002 since 1993) ISO EMAS EU ECO-LABEL Environmental Management System: ISO since 1996 (before BS 7750, 1995), EMAS since 1999 European Union Ecolabel in The products covered by the licence fulfil the ecological criteria for copying and graphic paper OHSAS Health and safety certificate in 2003 PEFC FSC In the pulp and paper production chain-of-custody standard PEFC TD Annex 4 in 2005 (before SMS , since 2003). Right to use PEFC logo, (PEFC TD Annex 5) in The Independent Assurance for Responsible Forest management in UPM Public
37 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 UPM Public
38 Continuous improvement process at UPM s Kymi mill over the last 10 years Water - 50% Per tonne of paper Electricity - 55% Per tonne of paper KYM Mill picture Waste to landfill - 90% Per tonne of paper Certified fibre 65% 38 UPM Public
39 KYMI PAPER PRODUCTS AND PRODUCTION
40 Kymi paper products Printing papers Office papers UPM Finesse UPM Fine UPM Office, Future, Yes, KymLux UPM PreLaser, UPM PrePersonal UPM Form, UPM Letter UPM Letter Insert Digi papers Speciality papers UPM DIGI Laser, UPM DIGI Laser+ UPM DIGI Finesse gloss UPM DIGI Finesse premium silk UPM DIGI Finesse silk UPM DIGI Finesse matt UPM Jetlabel UPM Vellum UPM 40 Public
41 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 - Gloss - premium silk - silk - matt UPM DIGI Finesse - gloss - premium silk - silk - matt WFU UPM Vellum UPM Fine UPM Letter, UPM Letter Insert UPM Jetlabel UPM PreLaser UPM PrePersonal UPM Form UPM DIGI Laser UPM DIGI Laser+ Yes, Future KymLux UPM Office - multifunction - copy/print SmartWrap COATED SHEETS UPM Finesse 41 UPM Public
42 Kymi paper mill Line PM 8 Width Max speed Started/ modernisation 8,5 m PM 8: m/min Coater 3: m/min PM 8: 1983 / 2001 Coater 3: 2001 UPM Finesse gloss, premium silk, silk and matt g/m², UPM DIGI Finesse gloss, premium silk, silk and matt 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
43 Paper mill Paper machine 8 UPM 43 Public
44 Kymi paper mill Line PM 9 Trim 8,5 m Speed max 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+, g/m² Uncoated fine paper for copying and printing, preprinted forms, envelopes and labels 44 UPM Public
45 Paper mill Paper machine 9 UPM 45 Public
46 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
47 New sheeting line for folio sheets 47 UPM Internal
48 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
49 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
50 From forest to office paper one hour / paper machine 105 m 3 Fillers kg 95 m 3 Birch pulp kg Pine pulp kg 8,5 m Speed 75 km/h per hour reams A4 UPM 50 Public
51 Safety first! GUIDELINES FOR YOUR MILL TOUR
52 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 UPM 52 Public
53 Our visitor tour today 53 UPM Public
54
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