UPM THE BIOFORE COMPANY

Transcription

1 UPM THE BIOFORE COMPANY The Future from the Industry Point of View Jan-Erik Teirfolk Joensuu Forestry Networking Week 2011

2 UPM today 22,000 employees Sales 8.9 billion euros in Production in 15 countries, worldwide sales network - Listed in the NASDAQ OMX Helsinki stock exchange Energy and pulp Paper Engineered materials 4,000 employees 12,000 employees 6,000 employees Hydro, nuclear and condensing power Biofuels development Pulp mills Plantation operations in Uruguay Timber Forestry services Wood & biomass sourcing Magazine papers Fine papers Newsprint Speciality papers Label Plywood RFID tags and inlays UPM ProFi composites 2 UPM February 2011

3 UPM worldwide Production Extensive global sales network 3 UPM February 2011

4 UPM's businesses are based on renewable and recyclable raw materials Logs Plywood Sawn goods Recycling Waste fibres Forest biomass Pulpwood Energy wood Forest residues Small wood Stumps Bark Pulp Paper Cardboard Heat Electricity 2G biodiesel Bioethanol Bio-oil Wastes Industry side streams and wastes 4 UPM

5 The Future 5 UPM March 2010

6 What can you do? Learn to learn and expect the unknown unknown? 6 UPM March 2010

7 THE BIOFORE COMPANY The sixth industrial revolution is bio-based Innovation 1. wave Iron Water power Machines Textile Trade 2. wave Steam engine Railways Steel Cotton 3. wave Electricity Chemicals Combustion engine 4. wave Petrochemicals Aircrafts and space Electronics 6. wave Sustainable Bioeconomy Renewable energy Green chemicals Industrial ecology Green nanotechnology 5. wave Digital web Biotechnology Information technology UPM 5/30/2011 Source: Worldwatch Institute / State of the World

8 Strategy and priorities Growth & Internationalisation Restructuring & securing the platform UPM renewal Acquisitions - Europe - North America - China Greenfield investments First biomass boilers Restructuring - Mill closures - Cost cutting - Internal efficiency Platform building - Divestments - Greenfield investments Biofore vision Market driven organization Acquisitions - Uruguay - Myllykoski (closing pending) UPM February 2011

9 Focus on profitability and reshaping the portfolio Energy and pulp Paper Engineered materials Expansion in cost competitive, lowemission energy Develop secondgeneration biofuels Grow in cost competitive pulp Focus on European profitability Consolidation in Europe Growth in China and other developing markets Profitable growth in self-adhesive label materials Plywood renewal Product renewal and new businesses development 9 UPM February 2011

10 UPM businesses and future opportunities CURRENT BUSINESSES Energy and pulp Engineered Materials Paper FUTURE OPPORTUNITIES Biofuels Biochemicals RFID Advanced Fibre Materials Cellulose fibrils 10 UPM

11 Building new opportunities on a solid foundation Value added Fibril Cellulose Biochemicals Biofuels for transport Bioenergy heat and electricity Labels and composites Volume Pulp, paper, plywood and timber products Wood-based biomass procurement and logistics 11 UPM February 2011

12 R&D and new business development Half of the R&D input targeted to the development of new technologies and businesses Development of new valued-added uses of forest biomass, such as biofuels, biochemicals, biocomposites and cellulose fibrils Competitiveness of current businesses through technology development Special R&D programme on energy efficiency aiming at a 30% reduction in energy consumption mainly at paper mills 12 UPM February 2011

13 NEW BUSINESSES & DEVELOPMENT Operational Area APPLICATION EXISTING NEW Development of Existing Businesses Existing Businesses New Businesses Development of Existing Businesses EXISTING PRODUCT NEW New Businesses organization develops completely new businesses while business groups manage development of existing businesses (existing product and/or application) 13 UPM

14 THE BIOFORE COMPANY New Approach to Biomass Value Chain Renewable and recyclable raw material Low CO 2 emissions New bio-based products Renewable and recyclable products Products that lock up carbon The integration of bio and forest industries Sustainable and innovation-driven The Biofore Company 14 UPM 5/30/2011

15 Combines the heritage and the future Bio and Forest Industry UPM The Biofore Company Bio = future orientation, sustainable solutions, environmental performance Fore = forest + forward + leading (at the forefront) 15 UPM

16 Responsibility in action Corporate responsibility is an integral part of our operations The Biofore thinking entails long term commitment to responsibility throughout our operations. Economic, social and environmental responsibility targets Responsibility principles are accompanied by clear targets which set the platform for our responsibility agenda. Active stakeholder co-operation 16 UPM February 2011

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