Iggesund s Invercote board became even better

VAAHTO PULP & PAPER MACHINERY 2008 Iggesund s Invercote board became even better - Vaahto s delivery has met expectations Vaahto Sizer establishes position on the Market has successfully completed the extensive rebuilding of Iggesund Paperboard Ltd s KM2 paperboard machine in Sweden. Iggesund mill is known for its high-quality coated graphic packaging boards and the brand name Invercote is very well known and highly valued within the converting industry. As a result of the investment Invercote became even better. Bulk, smoothness and stability of the dimensions are key factors for high quality. Vaahto delivered a new threeply wire section, including two new headboxes and two pressure screens for the board machine of wire width 5.1 meters and a maximum operating speed of 550 m/min. One of the headboxes, a Vaahto HQC-model, is equipped with dilution water control, securing excellent profiles in the cross direction of the web. The delivery also included a rebuild of the dryer section as well as equipment for water circulation. ion. In total Vaahto was responsible sibl for the engineering, production, installation, training and startup of the machine. Most of the goods for this project were manufactured at Vaahto s production sites in Hollola and Tampere, Finland. The engineering eeri of the project began in early 2006 and deliveries took place in late summer 2007. The rebuilt machine was started just on time on 9.10.2007 and has been producing quality board without significant disruptions ever since. Iggesund Paperboard, part of the Holmen Group, has invested systematically over the recent years in the Iggesund mill as well as in Workington mill in England. According to Mr. Björn Kvick, Managing Director of Iggesund Paperboard, the company will secure its position as a leading producer of high quality graphic paperboards as a result of the rebuilds. Naturally the rebuilds have also had an impact on the tonnage produced, which has increased from year to year. Mill Manager Staffan Jonsson from Iggesund summarizes: Above all, we now have good tools for further quality development of our product. Surface properties es and the rigidity and smooth runnability of the board in conversion machines are essential quality factors from our customers point of view. Another target is to increase the mill s production capacity by 20,000 t/a. Project Manager Gunnar Fälldin: "The partnership with Vaahto was successful throughout the project as we anticipated. Vaahto presented a good concept, and we felt that Vaahto would be easy to work with. Our impression of Vaahto was based on our previous experience with the company, namely the revamping project of Workington, which was done in 2004. The delivery included five new headboxes and three major top-former modernizations. The demanding installation was made in record-breaking time. After this latest project Vaahto has two excellent references within Iggesund Paperboard." has continued its fruitful co-operation with Stora Enso in the field of technology development. The Vaahto Sizer at Stora Enso s Imatra RTD-center has... Read more on page 3 (VRS) completes major product development program V aahto Pulp & Paper Machinery has invested heavily in its roll business and especially in developing new roll covers in recent years... Read more on page 6 1/2008 Looking into the future... 2 Vaahto Sizer establishes market position... 3 Vaahto teams up for customer benefi t... 3 New orders from China... 4 Sales and deliveries to Russia increased... 5 Bale pulping line completes product line conversion... 5 Record year for AP-Tela Oy... 6 Tähän kuvatekstiä ksti tiä Tähän kuvatekstiä ks tiä Tähän kuvatekstiä Vaahto ti puts Tähän more kuvatekstiä more Tähän effort än kuvatekstiä in face to Tähän face customer kuvatekstiä ksti contacts. and k- Major roll cover development project completed at VRS... 6 Japrotek s broad ranging roots... 7 New people... 8 1

Vaahto is looking into the future With a busy and successful year behind us, we continue to build our new platform with the focus on larger long-term projects in the expanding markets, not forgetting demanding rebuild projects. In order to improve our project control and further develop our cross-corporate information resources and co-ordination activities, we are gradually beginning to utilize a new information technology platform from the world s leading supplier SAP. This is a major undertaking, which will support our business and benefit our customers well into the future. With the help of our local establishment and presence in expanding markets such as China and Russia we want to improve our service even more and supply larger complete paper machine projects. 2007 was a very successful year for our business development. In the Pulp & Paper Division, as well as in the Process Machinery Division, operating results were very good. Our personnel made an excellent contribution working on projects widely distributed around the world. In the Process Machinery Division we worked in expanding markets, from nuclear to energy and chemical industry projects. Extremely demanding and successful Pulp & Paper industry projects were started and carried out in 2007. Many of these projects in Scandinavia, USA, China, Turkey, Russia and other markets continued all the way up to 2008. Product development and improvements have continued and new products have been successful-ully launched and delivered to customers. Our Chinese subsidiary, Vaahto Pulp & Paper Machinery Distribution (Shanghai) Co. Ltd., started up last year, is taking a major role in han- dling our future sales and project activities. The company now has a very capable group of experienced locals promoting our sales and expansion of our global sourcing activities. In the Russian market we improved our position on in the capital and service business- es through our ZAO Slalom subsidiary in St. Petersburg. ersburg. In Finland we continued nued our product development and improved our product range. For example, Vaahto Roll Service Oy (formerly AK-Tehdas Oy) in Tampere introduced its new PU and composite cov- ers to complete its One-Stop-Shop concept. We also brought the co-operation of our paper business subsidiaries closer together. In the Process Machinery Division we sold the spiral heat exchanger er product line and focused on the agitator and reactor business lines now carried out at Japrotek Oy Ab in Pietarsaari and Stelzer Rührtechnik International GmbH in Germany. In the Pulp & Paper Machinery Division we are concentrating on improving our capabilities to serve both our existing and new customers better. In the fast-growing markets of China demand for our products has been increasing, as has our customer base: most of the largest paper groups, such as Shandong Chenming, Shandong Bohui, Lee & Man, Anhui Maanshan and Jingxing Pinghu are already our customers. Last year we also supplied our key components such as headboxes, top formers, shoe presses and sizers to other global customers such as Halkali Kagit and Kombassan Konya in Turkey, Iggesund Paperboard in Sweden and Ningxia Meili in China. Machine rebuilds require excellent engineering and detailed planning to satisfy customer requirements. In this demanding business we are now ranked number three worldwide by Jaakko Pöyry 1. Our headboxes, top formers, shoe presses, new coating sizer and Vaahto Center Wind Reel are all well known in the European and other markets concentrating on paper and board machine modernization and rebuilds. Our customers already include the largest companies in the business, for instance Ahlstrom Glassfibre, Tver in Russia, Ahlstrom Labelpack La Gere in France and Delfort Group Dunajvaros in Dunafin, Hungary. Corenso s Wisconsin Rapids paper machine 12 (PM12) conversion project in the USA was one of our major rebuild undertakings of the past year. The delivery included key equipment such as a new dilution controlled headbox, wire section extension and a shoe press. We also supplied a complete rebuild to Iggesund Paperboard KM2 including a complete wire section, two Vaahto HQC- and HQ-headboxes, a top former, dryer section and short circulation equipment. This was a repeat order to Holmen Group s Iggesund Paperboard, and it is a good example of the most high-tech rebuild made in the demanding Swedish market and for the well-known Invercote product. We have built our business and our position by supplying the most advanced technology and high-quality equipment and solutions to our customers. We want to continue to make our customers and their products even more successful and competitive in the demanding markets of the future. 1 Based on Pöyry statistics Antti Vaahto Vaahto Group Plc Oyj CEO Vaahto Shoe Press started up successfully at Corenso s Wisconsin Rapids mill in the US. Vaahto Co-operates and 2

Vaahto Sizer establishes position on the Market Kombassan s Konya produces world class copy paper with Vaahto Headbox and Sizer. has continued its fruitful co-operation with Stora Enso in the field of technology development. The Vaahto Sizer at Stora Enso s Imatra RTD-center has been proven to be a very versatile tool for the diverse demands of the pilot coater. As well sizing as coating up to 12g/m 2 size can be applied with Vaahto Sizer. The equipment can be used without any special adjustment for both paper and board grade trials. The successful pilot machine delivery laid a solid base for millsize Vaahto Sizer deliveries. During the first quarter of 2008 two Vaahto Sizers have been successfully started up in Russia and in Turkey. Ahlstrom Glassfibre started up a new mill in Tver region in Russia. Vaahto was one of the key suppliers of the machine and the delivery included a Vaahto Sizer as well. According to Vaahto Chief Design Engineer Petri Parviainen, who supervised the assembly on site, Vaahto s part went according to plan. There are always some foreseeable challenges with the overall fine tuning of a glass fiber line, which has resulted in scheduling problems here also, but that is down to the product which is very hard to maneuver. At kombassan s Konya mill in Turkey, Vaahto started up its first application for printing and writing grades. Vaahto Sizer and Vaahto HQC-headbox are the most essential parts of the revamping of the Konya copy paper machine. Mr. Mehmet Nasöz, Director of Kombassan s paper industry operations, reports that Vaahto showed great professionalism during erection and startup of the machine. In early April, Kombassan is able to run much better paper quality than before the rebuild. There is still fine-tuning and optimization work to be done, but Mr. Nasöz is very confident that both parties can be happy with the outcome of the project. Versatile Solution The fisrt stage of the extensive R&D-work has been completed. Through customer experience we have been able to fine tune our Film Sizer concept both technologically and financially. The process has resulted in a reliable and highly versatile surface treatment unit which can be optimized for use in not only film sizing, but also pigmenting and coating of both paper and board. Now our customers are reaping the benefits, concludes Olavi Pöyhönen Vaahto s leading Sizer specialist. teams up for Customer Benefit has been developing products, engineering and project management to better fulfi ll the needs of global customers. For a rapidly growing supplier like Vaahto it has been vitally important to have good partners in engineering and production. Lately, Vaahto has received orders for very complex deliveries, including technology outside Vaahto s primary production portfolio. Since last year Vaahto has expanded its co-operation network with manufacturing partners like Swedish UMV Coating Systems AB and Finnish TM-Systems. UMV Coating Systems - An excellent addition to Vaahto s portfolio and UMV Coating Systems have widened their co-operation. Both companies together shared the major responsibility of supplying key technology to Ningxia Meili s new folding boxboard machine in China. Vaahto s delivery included four headboxes, top-former unit and shoe press. UMV supplied the turnkey coating section with 1 TWIN Sizer and 5 blade and rod ABCcoaters. Vaahto and UMV made separate contracts with Ningxia Meili, but seamless cooperation has been necessary during the whole delivery project and start-up. Vaahto and UMV have started joint sales and marketing efforts and the partnership has several on-going sales prospects at a very promising stage. The customer benefit of this new co-operation is the possibility for turnkey supply of complete paper and board machines worldwide. UMV is supplying complete coating and drying systems for the global paper and board industry. Since Billblade was introduced on the market in the 1960s, UMV has continuously introduced new innovative, spacesaving and productivity-increasing products to the market. This includes the TWIN Sizer HSM, the two-sided blade coater TWIN ABC, the unique ABC Coater and TWIN Sizer Gravure roll for premetering and coating as well as LAS for decurling and moisturizing. A complete supply of turnkey coating and drying systems also involves trial runs in the advanced pilot facility, designed for 2200 m/min. The pilot coater is designed to correspond with actual mill operations and it Leg work plays an important role when projects are getting bigger and more complex. KART Papertec and TM-Systems run together with Vaahto. UMV has a modern pilot facility which enables thorough product testing in commercial conditions. provides results that actually duplicate commercial conditions. The pilot facility is used for customer trials, customer training, our own development and for third parties. Managing Director Mrs. Louise Törnefalk-Svanqvist sees Vaahto Pulp & Paper Machinery as a very suitable partner for UMV: We have decided to concentrate 100% on coating and sizing projects but need a good and reliable partner for general rebuilds of paper and board machines. Vaahto is of the right size, flexible and has a reputation as a quality supplier equal to UMV Coating Systems. In our current situation it is extremely important to guarantee smooth co-operation with not only the engineering, manufacturing and assembly sub supplier network but also sales and marketing partners, says Jyrki Strengell, Vice President Sales, Vaahto Pulp & Paper Machinery. Vaahto needs leg work in Europe - KART Papertec is Ready to run! has a good market share in the Nordic countries, but in Continental Europe sales efforts have been fairly limited. Recently, Vaahto has joined forces with Markku Mäkinen s KART Papertec in order to make serious sales and develop marketing in the German-speaking countries as well as in France, and the Benelux region. Continental Europe is a very natural expansion direction for Vaahto as the majority of the region s paper and board manufacturing capacity is owned by Nordic paper companies. Finnish engineering and manufacturing know-how is highly valued by European customers, thus Vaahto s and KART Papertec s joint sales efforts have a solid foundation to build on. KART Papertec represents smaller Finnish suppliers by staying in contact with several mills in the region on a regular basis. KART Papertec aims to establish long-term relationships with its customer mills by providing them with a wide range of products. Markku Mäkinen of KART Papertec is confident that the hard work will pay off in the form of orders. Sales have primarily been targeted at rebuilds of board machines and specialty paper machines, which have been Vaahto s bread and butter in other markets. Paper mills in Continental Europe have been experiencing the same restructuring turmoil that is ongoing in Finland. Mills that have survived the tough years are now planning rebuilds and upgrades to machines to achieve better quality and productivity. I really enjoy working with Vaahto professionals. They are very straight forward people with a huge experience in paper and board machines. Now we just need to do our homework properly and then hit the road. I am sure there is a bright future ahead for both Vaahto and KART Papertec, summarizes Mäkinen. 3

New Orders to Vaahto from China Many of the leading Chinese paper and board manufacturers have come to rely on Vaahto s technology, and are now making significant orders for new projects across China. up and running in China All Key Components in Place for Entire Production Line Delivery Over the past 8 years of operating in China Vaahto has achieved a stable market position there. It has made deliveries to most major Chinese paper and board manufacturers such as Lee & Man, Shandong Chenming Paper Holdings Ltd., Fujian Qingshan, Shandong Tralin, Henan Xinxiang and Shandong Changhua. Successful Vaahto deliveries include key components such as Vaahto headboxes: altogether 20 new headboxes have been delivered to this market so far. The most important recent Vaahto deliveries include Ningxia Meili which has just started production on a coated board machine, with 4.8 m trim, fitted with a state-of-the-art Vaahto Shoe Press. In an effort to serve the Chinese market better, and further establish its role as a significant technology supplier, Vaahto set up its own company Distribution (Shanghai) Co. Ltd. last year. Currently 5 Chinese professionals, as well as two Finns, are working with design, purchasing, sales and project management. The Chinese Vaahto team has a strong knowledge of paper and board making processes, machinery, demanding delivery projects, as well as the Chinese market from the past decades. We have been fortunate to find such highly skilled professionals with years of experience in the paper and board making and machinery manufacturing industries. Although it will take time to integrate our efforts with our Finnish organization we have made excellent progress in a short time, and I m confident that we will find strength in our chosen operational strategy, says Timo Kero la, President, Distribution (Shanghai) Co. Ltd. We have established good cooperation contacts in purchasing, one of the key areas for our Chinese operations. In that respect we re ready and eager to set the wheels in motion, and take our operations to the next level, says Kerola. The Shanghai team has worked closely with the Finnish organization for the past year. On top of making excellent equipment deliveries, our main objective is to finalize a deal to deliver an entire paper machine for the first time ever. Our extensive ground work has paid off, and our organization in China, as well as Finland, is now on par with our technology, in other words, we re well prepared to complete such a demanding project, concludes Kerola. One of these happy customers is Shandong Chenming Paper Holdings Ltd., one of the biggest and most advanced paper and board manufacturers in China. The latest agreement was signed for a Vaahto Top-Former unit to be supplied to Shouguang Chenming paper mill, where a second-hand paper machine will be rebuilt into a fine paper machine in May 2008. The folding boxboard machine BM3 at Shouguang mill, started up at the end of 2004, is producing folding boxboard, FBB, with great success. The Mr. Raymond Lee, CEO of Lee machine, equipped with Vaahto machinery, is ranked among the top three FBB in the world in terms of running & Man trusts Vaahto. speed and productivity. The 5.65 m trim machine runs 250 gsm product at speeds up to 750 m/min, thus greatly surpassing average European machines. Anhui Shanying Paper Industry Co., Ltd. has selected Vaahto Pulp & Paper Machinery to supply key production equipment to two projects twice in the past two years. The 5.6 m trim new fluting / testliner machine in Anhui will be started up during this summer, and it will have two Vaahto headboxes and a modern top dewatering unit for its forming section. Anhui Shanying will also convert one of its existing 2.95 m trim linerboard machines to core board, and has selected a Vaahto headbox to secure the proper quality and wide grammage range needed in core board making. The rectifier roll technology with modern dilution control is a unique combination, which is mastered to perfection by Vaahto Pulp & Paper Machinery. The Maanshan mill is located in Anhui province approximately 300 km from Shanghai. Vaahto also provides training and start-up services as part of its projects. Lee & Man is a rapidly growing board manufacturing giant with four major mill sites in China. They have an ongoing project just starting up at their Hongmei mill in Guangdong. The PM12, trim width 6.65 m, will produce fluting and testliner. PM12 has two fourdrinies, a top dewatering unit and naturally two Vaahto headboxes - one with dilution profile control. PM6 was started up at Changshu, Jiangsu in October 2004. With trim width 6.65 m PM6 is producing fluting at more than 1000 m/ min. The PM6 is equipped with a Vaahto top dewatering unit and Vaahto headbox with dilution profile control. We see it as extremely important that we can also select high-level technology from other sources outside the two giants dominating the world market. Vaahto quality and performance meet and even exceed our high standards, says Raymond Lee, CEO of Lee & Man. has contracted more than 25 headboxes to China. During the fiscal year 2007-8, 7 new headboxes have been ordered to China. Vaahto Shoe Press produces solid content above 50% and saves bulk of folding boxboard. Vaahto Sales team at Your Service This year will take part in several exhibitions all over the world. Come and visit our sales staff and agents to find out more about the possibilities we can offer You. See You There! Expo SPCI 2008 Zellcheming China Paper MIAC 2008 PAP-FOR Russia Tissue World Asia Time & Place 27.-29.5.2008, Stockholm, Sweden 24.-26.6.2008, Wiesbaden, Germany 17.-19.9.2008, Shanghai, China 15.-17.10.2008, Lucca, Italy 10.-13.11.2008, St. Petersburg, Russia 19.-21.11.2008, Shanghai, China For more information please visit our website at Vaahto International Sales Meeting was held in Sweden on January 15-17 and the group visited also Iggesund Paperboard. 4

Vaahto Expands Sales and Deliveries to Russia has managed to gain an important role as a key supplier to the Russian paper industry during the past two years it has been represented by ZAO Slalom. Vaahto has supplied equipment, rolls and roll covers to Arkhangelsk, St. Petersburg Cardboard and Printing, Segezha PPM and Bratsk PBM (Ilim Pulp), Kazakhstan Kagazy, Syktyvkar Tissue Group, Kotlas and J.T.I. Yeletz Mills. Vaahto has also supplied key equipment to Ahlstrom Glassfibre s new production line in the Redkino region of Tver. We have worked hard to make the brand name Vaahto well known in the pulp and paper mills in Russia and neighboring Russian speaking countries. Vaahto is seen as a very suitable and potential supplier of rebuilds, components and roll services. We believe that in the near future Vaahto Pulp & Paper Machinery will be selected to deliver large scale projects also, says Tatjana Mazharova of ZAO Slalom in St. Petersburg. Roll Service plays key role ZAO Slalom has put special emphasis on pushing Vaahto to the forefront as a roll service supplier in the Russian pulp and paper industry. Repeat orders are proof of customer satisfaction in this industry. We have managed to convince customers like Segezha and Bratsk of our deep knowledge of rolls, roll covers and also logistics, continues Mazharova, who is a true professional of transportation, customs clearance and contract issues. ZAO Slalom and Vaahto s co-operation makes it easy for Russian customers to ship rolls to Finland and back. We are really a One-Stop-Shop, concludes Mazharova proudly. The Land of Opportunity The consumption of paper, board and especially household paper products keeps growing, together with the overall improvements in Russia s economic situation. Existing capacity is insufficient: old mills are in dire need of urgent upgrades, and there is a general lack of modern mills. This accumulates a strong demand for all kinds of rebuild solutions and entire production line delivery options for the paper and board industry. Vaahto Pulp & Paper Machinery has a lot to offer to the customers as rolls, roll covers, and all major components for the machine such as headboxes, formers, shoe presses, sizers, reels and pulpers are part of their delivery scope. Entire production lines can also be delivered. We strongly believe that the customers will find it lucrative for them, and this potential will turn into profitable co-operation on the Vaahto Center Reel VCR has established its position as a reliable tool for better reeling quality. Russian market in the following years, concludes Mazharova. ZAO Slalom Leninskij pr. 160-701 196247 SAINT-PETERSBURG, RUSSIA Tel: +7 (812) 718 46 44 Tel/fax: +7 (812) 718 48 40 E-mail: slalom@vmb-service.ru Vaahto Bale Pulping Line Completes Major Product Line Conversion at UPM Jämsänkoski Mill To utilize its full potential as one of the world leading paper manufacturers, with production in 14 countries globally, UPM has in the past few years made changes in its production portfolio. As part of these changes the company made a decision to convert PM 4 in its Jämsänkoski mill, in Finland. Previously the machine produced magazine paper but since the major rebuild in spring 2007 it has made specialty paper. The rebuild project internally named Tarra 4 -project consisted of a dry end rebuild and a new coating section assembly. Vaahto was involved in this part of the project as well by delivering all machine pulpers to the dryer section and reel. As part of the project the operation of the existing bale pulping line feeding both PM 3 and PM 4 needed to be rationalized and technically upgraded. The capacity for PM 4 pulping also needed to be increased. The continuously running joint pulping produces stock separately for each machine, and the production is adjusted by setting the running time of the conveyors. The Bale Pulping Line -project The customer pointed out several key factors to be taken into consideration in the design of the new pulping line. Trouble free operation of the equipment enabling economical running of the machine is vital. The automation level needs to also be very high so that the process runs from stock to paper machine with minimum operating personnel. Another advantage of a highly automated process is that there is less need for on-site storage capacity. Safety at work is naturally an essential part of equipment selection. Vaahto tackled UPM demands by delivering a state-of-the-art line which replaced the four old vertical pulpers. The new line consists of two Pulpers, screens, pipes, pumps, conveyors, wire removing equipment Integrated stock preparation system from. high capacity Vaahto horizontal pulpers, one for longfibre and one shortfibre. The production capacities of the pulpers are very extensive. The complete Vaahto delivery also included all other equipment such as feeding, setting and loading conveyors, a wire removal unit and a joint ventilation system for both pulpers. A special bale lifting unit was added to the shortfibre pulping line to boost its operation. Automation was an essential part of the Vaahto package. Special attention was paid to safety issues: Vaahto gave this delivery an European CE-stamp which states that the equipment is safe for use. According to Vaahto s Project Manager Jorma Mielonen, the project was successful. This was a major upgrade for us, and it took thorough planning to pull this off. Co-operation with various suppliers and subcontactors was productive but challenging. In such large scale projects there are always numerous concerns but the project team could always find the right solution. Jorma Mielonen continues: The complete pulping line was a major project for us as we have more experience in pulper deliveries. The customer had a clear view of what they needed and I m convinced our design team produced a very good concept to achieve the targets. We were able to complete this major Vaahto delivery by utilizing not only our own expertise but also by networking with our sub suppliers. All in all this was a good project for as we gained a lot of valuable experience for the future. Bengt Andersson and Jan Mattsson visited Vaahto workshop in Hollola and gave feedback on the Fors rebuild to Vesa Hyväri and Jyrki Strengell from Vaahto Pulp & Paper Machinery Sales. A new beginning for Fors BM3 with Vaahto dilution control system Vaahto enabled significant improvements in the cd-profile of the board of Stora Enso BM3 by fitting its middle ply headbox with a state-of-the-art dilution control system. The total refurbishing of the machine s old Valmet headbox was quite a demanding task which required careful design and assembly. On top of this the rebuild was completed on a highly demanding schedule during the Christmas shut down, says Vaahto Start-Up Engineer Pasi Kalliomäki. All in all the successful project was carried out swiftly: Stora Enso Fors made the order in June 2007 and assembly took place a mere 6 months later. The machine was started up on January 4, 2008. The customer was very pleased with the project. This was an important rebuild for us, as we had out-grown our old equipment, so to speak. Vaahto handled every aspect of this delivery with the level of professionalism we have come to expect from them. Also the assembly was perfect, which was very impressive on our tight schedule, explains Bengt Andersson, Production Manager BM2 & BM3, Stora Enso Fors mill. Stora Enso Fors BM3 produces folding boxboard with wire width of 6 meters and design speed of 750 m/min. In addition to the headbox rebuild, Vaahto s delivery included the approach flow equipment including a new machine screen. Erection, training and start-up of the machine were also an essential part of the deal. Vaahto manufactured most of the goods in its Hollola workshop in Finland. To enable a speedy assembly, most of the piping and pulp handling devices were assembled on site while the machine was running. Japrotek Designs and Manufactures Process Machinery for OMG Kokkola OMG Kokkola Chemicals Oy, Finland placed an order in July 2007 with Japrotek Oy Ab for process machinery, specifically large reactor vessels and a leaching autoclave with heavy-duty mixers made of super-austenitic steel and titanium. The customer is part of the global OM Group which manufactures cobalt and nickel based specialty chemicals. Japrotek has a long standing relationship with OMG Kokkola as they have made several equipment deliveries to OMG in the past. Another Vaahto Group subsidiary AP-Tela Oy will act as Japrotek s subsupplier in this project by manufacturing the carbon steel frame parts for the autoclave. The delivery is currently under way and the entirety of the equipment will be in place November 2008. 5

AP-Tela Oy provided a Russian oil-drilling platform with custom-made transformation pieces. Record Year for AP-Tela Oy Vaahto Group s main roll manufacturing unit AP-Tela in Kokkola has had a very good year in terms of both growth and profitability. Managing Director Pekka Viitasalo says also that they have been very busy with the internal development program. The new ERPsystem supplied by SAP Finland has been implemented during the winter months of 2008, and it will certainly lead to improved management of the unit. AP-Tela delivers rolls and equipment to Vaahto as well as various other customers outside Vaahto Group operating in different fields in paper and process machinery. One of the more unusual projects of 2008 so far have been the large cylinders, so called transformation pieces, which we have manufactured for a Russian oil-drilling platform per the customers specifications, says AP-Tela Production Manager Juha Kivelä. One example of joint projects with was the dryer cylinders delivered to a British paper maker St. Regis Wansbrough mill in December 2007. PM5 produces fluting made of recycled paper. The cylinders where of welded construction which made the project more demanding, but all in all this types of products are very familiar to AP-Tela. We needed to follow the strict European PED Pressure Equipment Directive which set rigorous standards to the design and production process, says Kivelä. The assembly was made during a short Christmas shut-down, and according to s Chief Design Engineer Petri Parviainen who supervised the assembly process on-site all went well. We were able to offer the customer a speedy and accurate delivery, and this was just what they wanted. All in all, the customer was happy with our performance. Good job, said Engineering Manager Shaun Kerslake at the fairwell, concludes Parviainen. New Imerys Eurohub Kaolin Terminal In Antwerp, Belgium Japrotek Delivers a Leaching Autoclave to Finland Japrotek completed its first major order to Imerys in 2004 when delivering all process and storage tanks, complete with their agitators, to the new large PCC-plant in Husum Sweden. A considerable number of reactor tanks, large site built tanks and complex agitators were designed, manufactured and erected on the site of M-real in Husum within a very short time. Japrotek utilized its well-proven modular design in making the prefabricated tanks and agitators, carefully adapting them to the special needs of the PCC-reactors and storage tanks. After the positive outcome of that project, Imerys made a large repeat order to Japrotek in late 2006 for the supply of tanks to the new Imerys distribution centre (Eurohub) in Antwerp, Belgium. From this new Eurohub facility, kaolin is distributed throughout Europe. For this project Japrotek s task was to deliver four 3000 m 3, three 1500 m 3, two 1000 m 3 and two 200 m 3 storage tanks, including agitators and walkways. Japrotek used its unique design in the bottom mixing element of all the tanks. In it the impeller allows agitation at very low tank levels and at the same time makes bottom steady bearings unnecessary, resulting in higher tank utilization and lower need for maintenance. The schedule of this project was even tighter than in Husum: the aim was to receive the first slurry-tanker from Brazil in the final quarter of 2007. Despite the complexity of the project Japrotek accomplished this delivery on schedule. The excellent Japrotek used its unique design in the storage tanks delivered to Belgium last year. A very tight schedule made the project demanding, but Japrotek succeeded. Agitators and walkways can also be included in Japroteks deliveries as per customer request. working conditions provided by SEA Invest on the erection site helped us greatly in achieving this challenging goal, says Japrotek Project Manager Stig Sandström. Japrotek s well-known prefabrication technology was once again proved effective and time-efficient in building this large tank farm in duplex stainless steel. Its experience in working with duplex stainless steels also proved valuable when the price for commonly used austenitic grades rose sharply due to the soaring nickel price. The low-nickel duplex steel used both kept investment costs low and resulted in thinner tank walls. A real win-win situation for the customer as well as for Japrotek. Finnish Norilsk Nickel Harjavalta Oy, part of a major Russian Norilsk Nickel group, is expanding its nickel production as the demand of stainless steel is growing thus pushing the market price of nickel up. Japrotek Oy Ab has a prior relationship with the company, and it will once again deliver them the demanding technology to enable the production increase. The delivery will include a complex leaching autoclave clad with titanium. The delivery will take place in the first quarter of 2009. (VRS) completes major product development program Complete roll and roll cover range from VRS One-Stop-Shop has developed its own Polyurethane cover, here used on a drive roll. has invested heavily in its roll business and especially in developing new roll covers in recent years. The latest strategic change occurred at the start of 2008, when the company responsible for s service business had its name changed from AK-Tehdas Oy to Vaahto Roll Service Oy (VRS), as part of a broader harmonisation project. The long-term investment and development program has continued with its former momentum, the new covering facilities are fi nished and the state-of-the-art covering equipment for manufacturing polyurethane (PU) and composite covers has been taken into use. The project is nearly finished, final adjustments are being made, says s Director of Service Business Jouni Kirjava. In addition to testing the equipment and materials, we have covered around ten rolls for customers and our experiences with the new equipment have been extremely positive. Even though we haven t advertised the new covers much yet, orders have been coming in at an increasing rate. You could even say that the covering of rolls for customers is slowing down our development of new products, says Jouni Kirjava and laughs. This could be considered a positive problem. With the new production facility finished, Vaahto Roll Service has been able to turn the results of the material development project into actual roll covers. Different material options for both polyurethane and composite covers have been studied for some time already. Nowadays the raw materials are mixed into sample materials in the company s own materials laboratory. The properties of the sample materials are tested in co-operation with various partners, such as Tampere University of Technology. Materials with the best properties have been chosen and are For more information on Vaahto Roll Service s new roll covers and other services: Director of Service Business Jouni Kirjava (jouni.kirjava@vaahtogroup.fi, Tel. +358 (0)400-613 813) or Customer Service Manager Jyrki Mattila (jyrki.mattila@vaahtogroup.fi, Tel. +358 (0)405-244 786) now being tested in field tests. Choosing the optimal materials for roll covers that correspond with customer requirements is an extremely important factor. In addition, VRS s challenge is to integrate these materials with the best qualities into an efficient and economical production process. Sadly, the best qualities and easy processing rarely go hand-in-hand. Competition is fierce and customers expect top products for competitive prices, so the best raw materials need to be seamlessly combined with the best production processes, Kirjava points out. Handling and processing polyurethane and composite materials was new for Vaahto Roll Service, so the training of employees was vital in addition to the introduction of the new equipment. Theory is important, but the best way to learn something is through practise, says Kirjava. Finding the correct processing parameters is rarely easy. They are found through testing and analysing the results. In this way, the employees also become confident with the process and in reacting to various situations. We believe that testing the materials will award us with excellent quality products. As the new polyurethane and composite covers are launched for sale, Vaahto Roll Service s roll cover range will include options for all cover materials and end uses. The new covers have great potential for further sales, both in Finland and as imports, says Kirjava. He continues: In addition, Vaahto Group s deliveries now include roll covers solely from our own production. The covers are often only a small part of the whole shipment, but their relevance for the entire process can be huge. We want to be in total control of this important area. 6

Improved Vaahto Roll Service covers all your roll needs! (VRS) offers a complete range of rolls, covers and roll services for all positions on paper, board and pulp machines, as well as paper converting lines. VRS also caters for rolls used in machinery in other industries. Thanks to a major R&D and investment project completed earlier this year, VRS now has state-of-the-art facilities in Tampere, Finland. In its One-Stop-Shop concept Vaahto Roll Service offers not only new rolls and roll covers, but also a full range of related services. These services can be roughly divided into two main groups: Mechanical roll service and repair and Recovering of rolls. Mechanical Roll Service and Repair Vaahto Roll Service offers a full scope of mechanical roll service and repair alternatives. Our service packages range from a basic checkup to a more extensive basic service and a full service, explains Jukka Pullinen, Director of Production for. These packages have been tailored for specific roll types so the package is always chosen according to roll position, as well as, the customer s needs. The basic check-up package consists of mainly visual checks and noninvasive measurements, as it doesn t include dismantling of the roll. The more extensive basic and full-service packages are excellent tools for conducting regular maintenance on rolls, as they include dismantling of the roll, checks according to the chosen package, needed repairs as per customer need and preassembly of the roll Servicing deflection compensated rolls is part of Vaahto Roll Service s One-Stop-Shop concept. at VRS facilities. The most extensive service package, the VRS full service, includes dismantling of the roll, including removing the bearings and axles, a full check-up of their condition and of the roll cover. For center mounted rolls, suction rolls, deflection compensated rolls and cooling rolls the full service also includes some internal checks and service measures. These measures include inspection of end fittings, the mechanical adjustment system, crack inspection and the changing of sealing strips. Each VRS roll service package consists of a comprehensive check list which is gone through in order to ensure the over-all quality of VRS services, and more specifically, to make sure any hidden problems are detected during maintenance. Typical problems are damaged axles, bearings or covers, loosened end fittings and the general wearing of abovementioned components. It is more cost-efficient in most cases to solve the discovered problems simultaneously with the maintenance. The extensive VRS service means that replacement parts can be made inhouse within a very short timeframe. This saves time, effort and money for the customer. Vaahto Roll Service can also perform different types of modifications to the rolls while they are being serviced. Typical modifications are roll shell shortenings, roll end or axle modification machining and suction roll shower piping modifications. Design modifications are made in co-operation with the Vaahto Pulp & Paper Machinery engineering department. The rolls are reassembled after maintenance. The assembly is done using new or existing, cleaned and checked bearings according to the customer s needs. All in all VRS can use the customer s own spare parts or include them in the package. A roll test-run, to ensure the performance of the roll in a drive situation, is included in basic and full services of suction rolls and cooling rolls. We have recently acquired a new state-of-the-art roll testing device to enable test-runs for deflection compensated rolls as well, says Pullinen. Dynamic balancing Nowadays drive speed increases, commonly made on paper machines, are a major factor in roll based runnability and quality problems. To combat these problems VRS offers its leading expertise in measuring the dynamic balancing of rolls. Dynamic balancing is used to measure roll vibration and the dynamic geometry of the roll in the drive speed area of the machine it is used in. The advantage of making this measurement during roll service is that if problems arise it is easier to determine whether they can be fixed with, for example, center balancing or if it is more economical to scrap the roll and make a replacement. Other additional service procedures such as roll shell service grinding and painting of roll ends/bearings can be performed during the initial service. The extent of the service is decided on with the customer, according to their needs. Recovering of Rolls Covers and recovering of rolls is another main area of VRS operations. Rubber covers for rolls have traditionally been part of Vaahto Roll Service s product range. In the past few years VRS has developed its own rubber recipes in order to be able to react more quickly and accurately to customer needs. VRS R&D efforts have also focused heavily on other cover developments such as thermal spraying, with its sol-gel surface treatments based on nanotechnology, which improve cleanliness of roll covers. The major investment made at VRS in the polyurethane and composite covering line has been completed. It is a significant addition to the VRS roll cover range, which now covers the full spectrum of customer needs, ranging from rubber, polyurethane, composite and hard covers. Vaahto Roll Service is now an even better co-operation partner in all your roll needs, concludes Pullinen. Current info from: vaahtorollservice@vaahtogroup.fi Vaahto Roll Services state-of-the-art facilities include Balanssi-measuring equipment which is used for measuring dynamic balancing of rolls. Change is the Only Constant Thing at Japrotek Broad Ranging Roots In the late 70s and early 80s there was a global boom in chemical fertilizer manufacturing. Japrotek was very much involved in the process by supplying the manufacturers with nitric acid absorption columns. During this period nuclear power plants were being built in the Nordic countries. Japrotek supplied many of the Asea/ABB Atom plants with spent fuel storage racks and reactor internals. In the late 80s and early 90s Japrotek s focus shifted to hydrogen peroxide plant deliveries as paper and board manufacturers found new, environmentally friendlier alternatives to pulp bleaching and needed the equipment to deal with such processes. At that time oxidizing, hydrogenizing and distillation columns made up a large share of Japrotek sales. At the turn of the century the energy industry resumed its significance for Japrotek. New-found interest in additional nuclear power use in electricity production brought Japrotek a significant pressure vessel order for the Finnish Olkiluoto 3 nuclear power plant in September 2004. Following the revised construction schedule of the power plant project, the equipment from Japrotek will now most probably be delivered during 2008. Japrotek is the only Scandinavian manufacturer that delivers large process equipment for the reactor island. Biofuel manufacturers have also placed orders with Japrotek: a Swedish ethanol plant has ordered Global Trends Highly Visible in Japrotek Order Backlog Japrotek has traditionally had a very wide customer base. Papermaking, chemical and metallurgical industries, waste water treatment plants and nuclear power plants are among its customers. As a supplier of demanding, high-quality stainless steel process machinery, the end use, and customer possibilities, are endless. As global market trends, i.e. growth in many industries, are in Japrotek s favor, the past year has been very successful and its order back log is also filling up nicely for the future. Japrotek has recently delivered an absorption column for nitric acid to an American customer. mashing and rectification columns and molecular sieve tanks. Finnish Neste Oil has ordered columns and other equipment for its biodiesel plant in Porvoo. Japrotek has also made several deliveries for plants drying solid biofuel, such as wood chips, in Scandinavia and Europe. Change is constant and an increase in the demand for nitric acid absorption columns has again been noticeable in Japrotek s order back log for some time, due to an increase in chemical fertilizer consumption. This is the result of the ever-growing world agriculture capacity, harvested both for food provisions and bio- fuel manufacturing needs. The demand for nitric acid absorption columns has been further fueled by the increase in world demand for metals which, in turn, has led to the opening of new mines. The mines use explosives, and nitric acid is used to manufacture them. The increase in the demand for metals has also brought orders for a Japrotek product that was once popular: leaching autoclaves. These types of heavy titanium clad pressure vessels represent the high quality production expertise that Japrotek s stainless steel workshop is known for. Global investments made in met- als production have also resulted in other significant orders for Japrotek. It has delivered agitators to the mining industry in Sweden and zinc production plants in China, filters to destinations all over the world and different types of heavy-duty pressure vessels to Finnish customers. All in all Japrotek s future looks bright. Its ability to make demanding tank and agitator deliveries and its flexibility in providing them to various industries has proven to be a great advantage. With market prospects remaining good the further outlook of Japrotek s operations looks very promising. 7

More Production Capacity for Vaahto Pulp & Paper Machinery in Hollola Vaahto streamlined its operations and freed up manufacturing capacity at its Hollola workshop as the Spiral Heat Exchanger operations were sold to HES Heat Exchanger Systems GmbH, Germany in late 2007. In our current market situation we needed to focus on serving our Pulp & Paper Machinery divisions growing production and preassembly needs. Spiral Heat Exchangers are technically very demanding devices from the engineering and production point of view and they would have been very suitable for Vaahto s product portfolio. However, we evaluated the market situation carefully and concluded that the pulp and paper industry will provide better prospects for Vaahto Group, says CEO Antti Vaahto. Powerflute Oyj puts Savon Sellu Mill into first gear with extensive rebuilds Powerflute Oyj signed an agreement with in August 2007 for a new headbox and modernization of the short circulation of its Savon Sellu mill in Finland. At the same time the mill automation upgrade program, which focuses on better usability and enables production increases, will be continued. This program includes improvements in automation, on the machine and at the pulp mill. We re tackling problem areas in the runnability of our machine and process efficiency by replacing old systems such as field automation systems, pumps, mixers and pulpers with state-of-the-art equipment, says Mill Manager Juha Kovanen. The fluting paper machine at Savon Sellu mill is 7 m wide and operates at max. speed of 850 m/min. This was a repeat order from Powerflute: Vaahto supplied a press modernization to Savon Sellu in autumn 2006. The start-up of this investment is currently under way. Vaahto Project Manager Tapio Rajantaus says in an interview with Vaahto Group News in April 2008 that the project has gone according to plan. Vaahto is ready for the start-up of the machine which will take place in May. New People Vaahto Group Plc Oyj s fiscal year 2006-2007 was best ever resulting in 88 meur / 139 m$ turnover and solid profitability. Growth without people is not possible and new personnel were recruited systematically to meet the challenges. Suvi Valtonen Project Assistant, 8/2007, in new position Vaahto Oy Erkka Nieminen, R&D and Engineering Manager, 5/2007 Vaahto Oy Pasi Harju Purchasing Engineer, 6/2007 Vaahto Oy Rauno Salomäki, QA-Manager, 8/2007 Jani Korppi Production Engineer, 6/2007 Vaahto Oy Kalle Kylkilahti Purchaser 5/2007 Vaahto HQRC-headbox to Stora Enso Imatra Matti Tuomela Sales Engineer 4/2008 Timo Mäkinen Foreman 9/2007 Hanna-Mari Tirilä Product Development Engineer, 8/2007 Kaisu Saukkonen Export Assistant 4/2007 Jouni Korri Project Manager 1/2008 AP-Tela Oy Anni Savolainen Accounts Payable, 8/2007 Vaahto Group Plc Oyj A similar Vaahto HQRC-headbox was preassembled at Vaahto s Hollola workshop earlier this year. Mattias Gripenberg Project Engineer 12/2007 Japrotek Oy Jani Mannermaa Foreman 8/2007 Japrotek Oy Ronny Haglund Designer 2/2007 Japrotek Oy Stora Enso selected Vaahto Pulp & Paper Machinery in October 2007 as supplier of a new dilution controlled headbox to BM5 at Tainionkoski, Imatra mills. Also the existing middle-ply headbox will be refurbished by Vaahto and used as a top-ply headbox on the same machine. Start-up after the rebuild is planned for September 2008. The BM5, with its 5.5-meter wire width, is one of the major European producers of liquid packaging boards. The new rectifier roll HQRC headbox will improve the CD profiles of the middle ply as well as the visual appearance of the board. The new Vaahto headbox will also enable the machine to further increase production. Vaahto s delivery includes modern deckle liners for the middle ply to eliminate waviness at the fourdrinier section. A pressure screen for the dilution water is an essential part of the delivery as well. Stora Enso has run a similar Vaahto headbox and deckle liners at the BM2 sister machine at Kaukopää mill, also in Imatra, since 2005. The mill is very pleased with the performance of Vaahto s Japrotek to Deliver a 50 m Absorption Tower to German Customer equipment. Earlier last year Stora Enso ordered a dilution control retrofit to the Tampella-headbox of Fors BM3 in Sweden. Vaahto has supplied more than 60 headboxes under their own brand since 1992. Japrotek Oy Ab will deliver an absorption tower to Uhde GmbH, Germany. The customer is one of the world s leading contracting companies specialized among other things in ammonia and nitric acid production technology. The delivery will include a highly demanding nitric acid absorption tower to be used on a South-European fertilizer plant. The tower is approx. 50 m tall and it s to be fitted with a large number of intermediate trays and cooling piping. The tower is highly complex and places great demand on design and manufacturing. Japrotek has required the needed know-how during the several previous deliveries made to Uhde all over the world. A smaller bleaching column is also part of this delivery, which will take place in March 2009. Matias Nygård Project Engineer 5/2006 Japrotek Oy Vivien Ji Finance Manager 10/2007 Ren Chuang ning Purchase Manager 3/2008 Ma Xiao Yu Application Engineer 9/2007 Ni Wan gen Senior Engineer / Project Manager, 11/2007 Aileen Wang Secretary 9/2007 Vaahto Group Plc Oyj Laiturikatu 2 P.O. Box 5 FI-15141 LAHTI, FINLAND Tel: +358 20 1880 511 Fax: +358 20 1880 301 Hollola (Vaahto Oy) Vanha Messiläntie 6 P.O. Box 1000 FI-15861 HOLLOLA, FINLAND Tel: +358 20 1880 511 Fax: +358 20 1880 290 E-mail: vaahtosales@vaahtogroup.fi Distribution (Shanghai) Co., Ltd Room 1703, Tower 1, Plaza Hyundai, 369 Xian Xia Road Shanghai 200336, P.R. CHINA Tel: + 86 21 5155 9151 Fax: +86 21 51559153 E-mail: vaahtosales@vaahtogroup.fi (prev. AK-Tehdas Oy) Kuoppamäentie 5-7 P.O. Box 838 FI-33101 TAMPERE, FINLAND Tel: +358 20 1880 700 Fax: +358 20 1880 701 E-mail: vaahtorollservice@vaahtogroup.fi Kokkola (AP-Tela Oy) Ahertajantie 18 FI-67800 KOKKOLA, FINLAND Tel: +358 20 1880 511 Fax: +358 20 1880 660 E-mail: ap-tela@vaahtogroup.fi Japrotek Oy Ab Pohjantie 9 P.O. Box 12 FI-68601 PIETARSAARI, FINLAND Tel: +358 20 1880 511 Fax: +358 20 1880 415 (Sales, Design, Purchasing) Fax: +358 20 1880 449 (Finance, Agitators) E-mail: japrotek@vaahtogroup.fi Stelzer Rührtechnik International GmbH Speckgraben 20 P.O. Box 14 53 D-34404 WARBURG, GERMANY Tel: +49 5641 903-0 Fax: +49 5641 903-50 E-mail: firstname.surname@stelzer-mt.com E-mail: info@stelzer-mt.com www.stelzer-mt.com