MACHINE SUPPLY STARTS UP

Group News 2010 VAAHTO S BIGGEST EVER TISSUE MACHINE SUPPLY STARTS UP Vaahto Pulp & Paper Machinery has been a reliable supplier for tissue mills in Nordic Europe in the field of services including roll covers, roll rebuilds and other roll services. SCA Lilla Edet Mill in Sweden and Georgia-Pacific Nokia Mill in Finland are good examples of customers, which have for years been served by Vaahto. More recently also Russian tissue makers have taken advantage of Vaahto roll service capabilities. During recent years there have been numerous inquiries from tissue makers whether Vaahto would also offer bigger projects for tissue machines. Due to this increasing interest towards Vaahto s high quality technology amongst the tissue producers Vaahto made a decision to widen its businesses for new tissue machines and major rebuilds. As a natural continuum of our long term cooperation with tissue makers and Vaahto s strong position as a high quality technology provider in paper industry it was a logical step for us to expand our operations into entire tissue machines, says Juha Luhtalampi, head of Vaahto s Tissue Paper Machine Business. Vaahto tissue machine concept was developed based on proven Vaahto technology in key components like headboxes, forming sections, press sections and reels. Metsä Tissue selected Vaahto as a supplier for major rebuild After serious discussions and negotiations Metsä Tissue selected Vaahto Pulp & Paper Machinery to rebuild its tissue paper machine at Mänttä Mill, Finland. The machine produces toilet and towel base paper for consumer products marketed under the brands Lambi, Serla and Katrin. Continue on page 3 Vaahto Tissue Concept i Metsä Tissue is a leading tissue paper products supplier to households and large-scale consumers in Europe and the world s leading supplier of baking and cooking paper products. Company s main brands are Lambi, Serla, Mola, Tento, Katrin, Fasana and SAGA, which are produced in Finland, Germany, Poland, Russia, Slovakia and Sweden. Metsä Tissue, a part of the Metsäliitto Group, employs some 3150 people, and had a turnover of 890 million euros in 2009. Content 2010 5 Boost your production Vaahto on-site services Vaahto Service provides competent and reliable ON-SITE services for various paper machine sections. Vaahto s ON-SITE services utilize process experts who help to ensure the quality of services and thus the benefits for the customer. TMF 90 TMS 70 Vaahto Pulp & Paper Machinery focuses on service... 2 Vaahto Pulp and Paper Machinery offers tailored tissue machine rebuilds and new machines based on proven Vaahto technology and project competence for all markets worldwide. The extensive Vaahto Tissue Machine Concept offers reliable and functional solutions for all the needs of tissue paper manufacturers. In new machines special attention has been paid to developing viable small and medium size machines especially suited for the needs of emerging markets such as Vaahto Tissue Machines TMS 70 and TMF 90 (capacity tones/day). The Vaahto Tissue Machine Range offers customers the opportunity to enter new markets at a lower investment cost. Less capital is tied up, as the output of the machine can be optimized to suit the specific needs of each regional market area. This makes the Vaahto Tissue Machine an excellent choice for both newcomers and established tissue- makers entering new geographical market areas. All Vaahto tissue paper machines are designed to produce tissue paper with furnishes from 100% virgin fibre to 100% deinked pulp and grammages from 12 g/m 2 to 45 g/m 2 (at reel). Vaahto tissue paper machines are normally designed with one press roll, but double press and Vaahto shoe press solutions are also available. Erection completed succesfully in Pinghu Mill...3 Rauma PM 4 LWC-machine back in top speed after Vaahto s repairs...3 Vaahto rectifier roll headbox running succesfully at Kaukopää BM 4...4 Certificates are the cornerstones of Vaahto s quality management...7

2 Group News 2010 This merger will give our customers a more extensive and wider product range from one organization under one Vaahto brand. PULP & PAPER MACHINERY FOCUSES ON SERVICE Vaahto Pulp & Paper Machinery has become an established and reliable supplier in the demanding international paper and board machine markets, and our innovative and cost-efficient solutions are valued by customers. Recently Vaahto project operations expanded to large-scale tissuepaper technology, as you can read on the front page. The combination of traditional Vaahto rebuilds of board machines and role as a key component supplier to printing writing paper machines guarantee the very wide base of knowledge and expertise of Vaahto personnel which our customers benefit from. The knowledge and expertise from capital projects forms the platform, that Vaahto Pulp & Paper Machinery needs in in-depth service operation from roll covers to on-site services. Changes in the paper industry and minimum investments in new capacity or better quality, force Vaahto to seek growth in Service operations. The outsourcing trend in the paper industry has also strengthened demand of all kind of services previously provided by paper mills themselves. In addition to Service, Vaahto Pulp & Paper Machinery sees great possibilities for growth also in Chinese capital projects. The development of Chinese paper and board industry has been amazing, and we cannot see any end in the demand at the moment. Vaahto has recently started up three headboxed and top-former at Jinxing Pinghu mill and collected an order for Gypsum board machine headboxes. The set of 4 modern headboxed, which will be manufactured in Hollola Finland, indicate Vaahto s position as one the most productive suppliers globally. In spite of tough times, Vaahto has systematically invested in new products and services. In the run of latter part of 2010, Vaahto will launch to the market new products and services. For example On-Site services for yankee cylinder coating or winder drum tungsten-carbide thermal spraying will be available in the near future. All in all, Vaahto will focus in growth of Service, but will remain as reliable rebuilder of paper and board machines, as well as key component supplier to new machines especially in China, Russia and other emerging markets. Jyrki Strengell Managing Director of Vaahto Ltd ANSSI KLINGA CE0, Vaahto Group Plc Oyj: As a result of determination and hard work, Vaahto Group has achieved solid recognition as an international high-tech company. However, last fiscal year was a difficult one for Vaahto Group. The financial crisis since fall of 2008 has caused havoc for the global economy, and our operating environment has changed very rapidly. We have been forced to adjust our operations to the weakened market situation and carry out drastic measures to maintain our competitiveness. Operations of the Vaahto Pulp & Paper Machinery Division were simplified and rearranged, resulting in two business units, Vaahto Projects and Vaahto Service. Vaahto Projects masters extensive pulp, paper, and board machine deliveries and modernization projects. Vaahto Service focuses on components, on-site services and roll servicing. During the implementation period of first 12 months the focus has been more and more on Service side. Our product selection has been expanded to cover new product areas, such as demanding polyurethane and composite roll covers as well as new on-site maintenance services. We have also initiated a development project to establish a production unit as part of the Pulp & Paper Machinery division in China. According to the objective set, this production unit is targeted to start operations during the 2010 2011 fiscal year. In the Process Machinery division, we have gained strength especially in the agitator technology expertise and have solidified the position in the growing energy sector, for example. The Process Machinery division has a larger customer base on various fields of industries, and the market recovery is expected to happen a little earlier than on Vaahto Pulp & Paper Machinery side. All in all the market situation will remain challenging. Our order book is getting thicker, but it is still clearly lower than before the financial crisis in 2008. We can, however, detect signs of normalizing markets, so we expect the market situation to pick up in the latter half of year 2010. In this challenging operating environment, we are placing particular emphasis on procedures that will improve Vaahto Group s competitiveness, profitability, and solidity. Our highly competent personnel will be key to our success with regard to this objective, and I trust our employees will also be excellent partners to our customers in these challenging times.

Group News 2010 3 During this project Mr. Yang Yujun Project Engineer of Jingxing Pinghu has worked in close co-operation with Vaahto Site Manager Tommi Vuorio and Wangen Ni from Vaahto Shanghai office. ERECTION COMPLETED SUCCESSFULLY IN PINGHU MILL Zhejiang Jingxing Paper Joint Stock Co. (Pinghu Mill), Ltd in Zhejiang province of China is in the final stages of a busy PM 13 White Top Liner machine project. Key components of the machine like headboxes and a Top-Former have been manufactured by Vaahto in Finland. The bottom layer headbox is equipped with the state-of-the-art Vaahto dilution control system for reliable CD-profile control. Vaahto Site Manager Tommi Vuorio worked several weeks on site in Pinghu, which is located about two Vaahto headboxes have found their niche at the Chinese market. Four brand new HQZ-versions will be delivered to Taishan Gypsum Co. Ltd. to Shandong Province in China in 2010/2011. hours drive from Shanghai City centre. He comments: The Chinese craftsmen are easy to deal with and they are very keen on learning new things. The installation of Vaahto equipment was very smooth and quick due to very careful preassembly at Vaahto s workshop in Hollola. In general Vaahto ensures its project quality by always testing and preassembling all key components prior to delivery to customers. In 2009 Chinese economy grew by 8.5% and the outlook for the year 2010 is expected to be at the same level or even better. Packaging board industry in China has been growing steadily as domestic demand is playing increasingly big role. Continue from page 1 The project includes a new Vaahto Crescent former, Vaahto HQT headbox, and conventional Vaahto reel. The delivery also includes rebuild of the short circulation, the press section with new framing and suction press rolls, as well as the automation system. All press section and reel loadings were upgraded from pneumatic into hydraulic for better controllability. Installation, training, and start-up services were also a significant part of the project. The aim of these types of projects is to achieve better paper quality (especially formation), to improve paper machine runnability and to minimize broke. Vaahto HQT tissue machine headbox is a good example of how proven Vaahto technology can be used in tissue machines in order to achieve these targets. The design of the HQT Crescent former headbox has been based on the highly patented structure of our very successful hydraulic HQ headbox series. We have been able to maintain the same distribution channel, equalizing chamber and turbulence generator structure in the Crescent former HQT headbox design as we have already successfully used in our HQ series headboxes for several years. In our HQT Crescent former headbox we have developed the design further so that the apron lip can be moved horizontally. This is a good addition in cap former headbox design, ensuring effective adjustment of the jet and giving short free jet length. All this ensures that the Vaahto HQT headbox produces good sheet formation and good CD profiles, which then later enables uniform coating on the Yankee cylinder and through this good paper machine runnability and good paper quality, says Juha Luhtalampi. In addition to Vaahto s high technical level of the key components the company s solid experience in handling international projects was a key factor in securing this Metsä Tissue order, continues Luhtalampi. RAUMA PM 4 LWC-MACHINE BACK IN TOP SPEED AFTER VAAHTO S REPAIRS UPM Rauma PM 4 is the largest and newest of Finnish paper machines. The start-up of the giant LWC-machine took place in January 1998, and since then the 9,8-m-wide monster has been one of the most productive paper machines globally. In 2009 the market situation of coated mechanical grades suddenly turned very bad, and UPM decided to utilize the downtime by ordering a proper maintenance and rebuild for the headbox of the gapformer machine. After tough negotiations UPM decided to award the job to Vaahto Pulp & Paper Machinery. Vaahto dismantled the headbox, produced new parts, re-machined some of the components and finally re-assembled the headbox after 10 days of intensive work. Startup services were part of Vaahto s scope in the project. After the Easter holidays PM 4 was again up and running and very soon it could reach top speeds of 1900 m/min, Field Installation Superintendent Tommi Vuorio explains the status of Vaahto s headbox installation to Jyrki Ovaska, President, UPM Paper Business Group and UPM Rauma Mill Manager Kari Pasanen. Parts of the massive headbox were machined at Vaahto s Hollola workshop. which had not been the running level in a long time. A spokesman for Rauma mill says, that Vaahto fully met the expectations set prior to the shutdown. Vaahto is well known at the Rauma mill mainly on the service side as Vaahto also supplies rubber covers and polyurethane covers to various positions of all four machines in Rauma. Vaahto has the capability to handle even the largest suction rolls up to 80 tons weight and 10 m width in its Tampere Service workshop. In machine rebuilds Rauma had had a tendency to select suppliers having experience in exactly identical machines. With the PM 4 headbox project Vaahto gained a position among the big boys. Existing headboxes can be upgraded cost effectively by installing a Vaahto state-of-the-art dilution control system which enables better web CD profiles. STORA ENSO INGEROIS BM 4 MODERNIZED BY VAAHTO Stora Enso Ingerois BM 4 is one of the board machines Vaahto engineering team knows extremely well. The folding box board mill located at the banks of the Kymi river in the south eastern Finland, was part of Tampella corporation until 1993. Tapio Rajantaus and many of his colleagues nowadays serving Vaahto Pulp & Paper Machinery worked as well for Tampella but other division, namely Tampella Papertech in Tampere, when Ingerois BM 4 was properly rebuilt in 1990. The IKU project turned the recycled fiber based whiteline-chip board machine into a high quality folding boxboard line and increased capacity significantly. IKU-09 was a first major upgrade of the machine in 19 years. Tapio Rajantaus with his team - this time Vaahto name in the back of the working uniform - was happy to re-enter Ingerois mill. The Tampella made middle layer headbox was equipped with a state-of-the art dilution control system resulting in more than 50 % better CD profiles of the web. Naturally better profiles mean less waste, higher production speed and better overall appearance of the sheet. Operators are very pleased with dilution tools and asked Vaahto team: Why didn t you sell this much earlier! This is really a tool we have been missing for years! The pope reel of the line was entirely modernized to meet 3,2-meter-diameter tambour production and winder unwind stand was rebuilt respectively. Vaahto s delivery also included a water-jet turn-up device, which has showed its power by reducing bottom broke. Larger parent reels reduce number of tambour changes resulting in more effective work in the finishing end and less wasted material. Ingerois BM 4 is 5100 mm wide and is designed for max. speed 750 m/min. The annual output of the mill is around 200 000 tons coated board.

4 Group News 2010 A MASSIVE VAAHTO RECTIFIER ROLL HEADBOX RUNNING SUCCESSFULLY AT KAUKOPÄÄ BM 4 Stora Enso Imatra Mills continued ordering headboxes from Vaahto - 4th Vaahto headbox project within a short period. This time the dilution control system equipped version Vaahto HQRC headbox was delivered for the Kaukopää BM 4 in late 2009. The machine produces liquid packaging boards 170-420 g/m 2 at wire width 6782 mm and design speed of 750 m/ min. As part of this project Vaahto modified an old Valmet middle ply headbox by changing its handedness and placing it on the top ply. Vaahto s delivery also included equipment for the pick-up roll as well as upgrade of the 1st press nip. The Vaahto headbox is working well and project targets like quality improvements in formation and smoothness were met. Vaahto achieved this by combining its new generation rectifier roll technology with the advanced dilution control system. Easier tail threading and better runnability of lighter grades was achieved by the upgrade of the pick-up roll. Our installation work went very well, says Vaahto Project Manager Tapio Rajantaus. We received extremely positive feedback from the customer as we were able to finish two days ahead of schedule, completes Rajantaus. Kaukopää project personnel were interested in the progress of the headbox preassembly. All Vaahto headboxes are preassembled and tested at the workshop to ensure plug-and-play status at customer mill site. Part of the customer training was held in connection with Vaahto workshop visit in Hollola. 3D POWERGRIND grinding equipment concept drawing. Yankee cylinder shape profile measurement. NEW INTELLIGENT 3D POWERGRIND SERVICE FOR YANKEE CYLINDERS PROFILE GRINDING Vaahto introduces the new, intelligent 3D POWERGRIND grinding service product to its ON-SITE roll grinding. The development work of the technology focused especially on a technical solution which allows for quick, efficient grinding of roll profiles with machine workshop accuracy. The accuracy of the roll s profile shape affects the operating of the roll and coating and thus the runnability of the machine and paper quality. The grinding equipment is quick to install in a paper machine environment and it is capable of efficient material removal, minimizing the grinding time and thus the downtime of the machine. The 3D POWERGRIND service is especially targeted at the maintenance grinding of Yankee cylinders but it can also be applied in other roll positions when needed. Significant R&D resources have been invested in the development of the new-generation ON-SITE grinding technology. Tekes (Finnish Funding Agency for Technology and Innovation), Aalto University s School of Science and Technology and RollResearch Int. Oy are Vaahto s co-operation partners in this development work. 3D powergrind profile grinding technology The 3D POWERGRIND profile grinding technology is based on the state-of-the-art 3D grinding control technology used in roll grinding machines in machine workshops. The installation, mechanics and grinding environment can cause alignment error in the grinding unit in relation to the roll requiring grinding. This does not, however, affect the targeted grinding accuracy as the new grinding technology incorporates a measuring system which measures the roll s run-out, shape and the movement of the grinding unit in the grinding direction. A grinding control curve is drawn up according to the attained measurements, based on which the grinding unit is moved in the direction of the roll s surface radius during the grinding process in order to grind the required profile shape on the roll s surface. The grinding control curve contains data on the required roll profile shape as well as the compensation of the errors resulting from the guide error and grinding environment. This speeds up the installation of the grinding equipment in the machine as the guide can be lightly built and does not need to be completely straight in relation to the roll. Thanks to the intelligent 3D POWERGRIND profile grinding technology, the profile grinding of the roll is precise, quick and efficient, enabling machine workshop accuracy in profile grinding while minimizing downtime required by maintenance grinding.

Group News 2010 5 BOOST YOUR PRODUCTION VAAHTO ON-SITE SERVICES Vaahto Service provides competent and reliable ON-SITE services for various paper machine sections. Vaahto s ON-SITE services utilize process experts who help to ensure the quality of services and thus the benefits for the customer. ON-SITE services provided by Vaahto are usually related to improving paper quality, problemsolving, regular maintenance or increasing production line speed. Analysis and optimisation services Vaahto Service ensures secure and reliable process information as well as the correct repair measures through comprehensive service, which includes process analysis and optimisation, recommendations for the required service and maintenance measures as well as the implementation of these measures. Information and solutions produced through the services can be used in decision-making involving modernizations and new investments. Vaahto s analysis and optimisation services for the short circulation, headbox and wire section area make it possible to efficiently and reliably recognize malfunctions in the process as well as improve paper quality and machine runnability. The services can assist in working out the following problems, for example: machine direction basis weight variation problems with the basis weight cross profile fibre orientation problems edge problems formation problems control of the CD/MD strength ratio water drainage problems Based on the results of the analysis, suitable solutions can be offered for the client s problem, whether it be service or maintenance measures or more comprehensive modernizations. Vaahto s mechanical condition analysis can be directed at either the entire paper machine or simply the chosen areas of the machine, such as the wire or press section. The mechanical condition analysis can include a nip profile analysis which reveals how the press nip operates in practice. The condition analysis helps to discover the mechanical condition of the machine and the required rebuilding, maintenance and repair measures. The implementation of the measures is always agreed upon separately as their extensiveness varies significantly depending on the case. Excessive vibrations typically take place in paper machines and can cause mechanical damage. Also the significance of the rolls dynamic behaviour is emphasized as the speeds of both new and old paper machines are increased. Vaahto Service, together with its co-operation partners, supplies diverse vibration analysis services to uncover hidden mechanical damage and the reasons for the vibrations, as well as to estimate the machine s vibration behaviour at higher speeds, for example in conjunction with paper machine speed increase projects. Vaahto also offers the necessary maintenance, repair and modernization services for solving vibration problems. On-site servicing Vaahto Service s ON-SITE servicing ensure that your paper machine equipment and components continue to function flawlessly. We can monitor the equipment s service history, based on which we, together with the client, can plan future maintenance measures. Regular maintenance ensures that the technology continues to function impeccably over the course of the next planned maintenance interval. The regular and systematic maintenance of equipment and components saves money in the long run because it helps to guarantee the high usability of the paper machine line and eliminates unnecessary and unexpected web breaks and downtime. Vaahto Servicing offers versatile maintenance services for various paper machine parts. Areas requiring maintenance in the short circulation and wire section include the screen, pulper and headbox. Vaahto s headbox maintenance takes place in two stages, including monitoring of the process while the machine is running and mechanical maintenance during downtime. Vaahto has its own maintenance service products for the regular maintenance of shoes presses, sizers and reels. Other mechanical maintenance areas include doctors, stretchers and guides. Analysis and optimisation services can be performed simultaneously with the mechanical maintenance, providing information on possible process malfunctions or a functional defect in the equipment. The mechanical maintenance can then be adjusted so that the process malfunction or functional defect in the equipment can be repaired in connection with the equipment maintenance. The mechanical maintenance can include other measures such as crack checks, contamination prevention treatment, balancing or alignment. On-site grinding and thermal spraying Vaahto Service also supplies onsite grinding and thermal spraying of rolls. The maintenance grinding can either consist of polishing-type grinding or profile grinding, which can alter the roll s profile into the required profile shape. Vaahto has invested significant research and development resources in the development of newgeneration ON-SITE grinding technology, as a result of which the company is introducing the new, intelligent 3D-POWERGRIND grinding service product to the market. The development of the technology has especially focused on a technical solution which allows for quick, efficient on-site grinding of roll profiles with machine workshop accuracy. The main intended implementation of the technology is the maintenance grinding of Yankee cylinders, but it can also be used for the ON-SITE grinding of other cylinders such as drying cylinders. Vaahto has several types of thermal spraying coatings which can also be performed ON-SITE. These include, for example, the VRS-CARBIDE D release coating for drying cylinders as well as the VRS-CARBIDE wolfram Headbox servicing is part of the product range. Roll natural frequency measurements are conducted by Vaahto Service professionals. carbide coating for drive rolls and reel drums. A significant research and development project is also taking place at Vaahto in which a thermal spraying coating for covering Yankee cylinders is being developed.

6 Group News 2010 VAAHTO ESTABLISHES POSITION AS POLYURETHANE AND COMPOSITE ROLL COVER SUPPLIER Vaahto Oy, Service has recently launched several improved roll cover products to further reinforce its product range and has actively been promoting them to new and existing customers in Finland and abroad. New products have been accepted very well and have become new cornerstones for Vaahto s service business. Most of the new launches are aimed at positions and applications where Vaahto has not previously had a full offering and therefore reinforce our position as a competitive roll cover supplier. Vaahto News has reported the status and progress of Polyurethane and Composite roll cover project in our Tampere service center in previous issues. Several new product launches have emerged from it, like VRS-POLYTAM and VRS-POLY- DRIVE reel spool and drive roll covers. These products have received excellent reception from the marketplace and over 50 covers have already been delivered to customers all over the world. Our latest PU-product launch, VRS-POLYPRESS can be applied to all press section applications, positions, speeds and loading conditions. This cover is offered in 5-25 PJ hardness range. Plain, grooved and blind drilled press rolls have been delivered to various customers. In the next wave suction rolls will be supplied. An interesting new application for VRS-POLYPRESS is LNP-press roll, where polyurethane cover allows removal of the roll internal cooling water circulation offering cost savings to customers. This, in addition to improved wear resistance and very low internal heat buildup allowing high loadings, makes VRS-POLY- PRESS a very interesting cover alternative in this application over traditional rubber covers. Vaahto Service has already made several deliveries, both plain and blind drilled and based on the repeated orders received this new cover has been well accepted in the marketplace. First new composite calender covers from VRS-COMCAL product family have also been delivered to customers. Development targets for VRS-COMCAL have been high temperature and excellent wear resistance and toughness to perform in hardest calendering positions. VRS- COMCAL has a hardness range of 88-92 ShD and it is an excellent choice for all super and soft calender applications. VRS-COMCAL has standard thickness of 12,5-15 mm and the material can resist continuous surface temperatures up to 135 C. Our rubber cover selection has also received a couple of new innovative additions. VRS-SIZEHYDRIL utilizes the same basic structure than VRS- SIZER, but the rubber material has been upgraded to HNBR-based, offering significantly improved thermal and wear properties. Another HNBRbased cover innovation is VRS-COAT- EHYDRIL, which is aimed to those coating applications that suffer from too high wear rate of the standard rubber covers. New VRS-COATEHYDRIL material has much better mechanical properties like tear resistance (+62,8 %), tensile strength (+29,5 %) and elongation (+52,7 %) over stand- ard VRS-COATER LC cover. Wear resistance, which is often critical for this application has been improved by 51 %. This is good news for our customers that try to improve coater section operation economy and reduce cover grinding costs. VRS-COATEHYDRIL is also an excellent solution to those mills where the transfer to coated application blades has resulted in excessive roll cover wear rate. Thermally sprayed VRS-CER- AM center roll cover has also had a new option added with the launch of VRS-CERAM W. This new cover utilizes the same reliable corrosion protection base layer and sealing treatment as VRS-CERAM, but the operational layer material has been modified in order to further improve operation with wood containing and high filler content paper grades like News, SC and LWC. VRS-CERAM family will also have a third option available in the near future. VRS-CERAM L is a lead roll cover with extremely high wear resistance and excellent doctorability. VRS-CERAM L is hydrophilic resisting dirt pick-up, but can also be mechanically cleaned to remove possible coating residue and other impurities. VRS-CARBIDE D is Vaahto s new thermally sprayed cover product for lead rolls, spreading rolls and drying cylinders. It is a combination coating of tungsten carbide and DYREL fluoropolymer offering cleanliness and chemical resistance similar to sintered PTFE/FEP materials, but improved doctorability and high temperature hardness. In order to facilitate the use of VRS-CARBIDE D for e.g. drying cylinders, VRS-CARBIDE D can also be manufactured on-site. AP-Tela workshop ready to serve! AP-Tela Oy, a Kokkola-based subsidiary of Vaahto Group, is a provider of heavy custom engineering and contract manufacturing services. The company specializes in the manufacturing of long, welded and machined, axially symmetrical parts. During the winter months we have done significant maintenance and modernization jobs in the workshop, says Managing Director Pekka Viitasalo. For example, we are now able to do inner turning from diameter 300 mm instead of previous limitation 550 mm. Viitasalo continues: Now our machinery and equipment is in top shape and able to meet all kinds of challenges. We can produce high quality products and we are ready to offer our expertise. Don t hesitate to ask how we can serve you! AP-Tela s workshop in Kokkola is very flexible and can serve a diverse range of customers. The paper industry is our major client, but we have done many projects for the energy, lifting equipment and process industries as well, concludes Viitasalo. Custom engineering and contract manufacturing services for various uses and industries from AP-Tela. THE MAIN PRODUCTS OF AP-TELA WORKSHOP Heavy, welded, thick-walled steel pipes, cylinders, and cones Rolls for the paper, energy, and lifting equipment industries Welded and machined steel structures PIPE MANUFACTURING DIMENSIONS Diameter: freely selectable within the range 320 2,000 mm Material thickness: up to 70 mm Maximum length without round seams: 12 m Straightness: 0.5 mm/m (max. 3 mm) D: +/-2 mm; L: +/-5 mm ROLL MANUFACTURING DIMENSIONS Maximum diameter: 2,000 mm; maximum turning span: 15 m; maximum weight: 40 metric tons Dynamic balancing: 2,500 m/min; balancing class: Q = 1 2.5 Vaahto Service supplied Enocell s LNP-press roll with its VRS-POLY- PRESS PU-cover. MAIN MACHINE INFORMATION Recent Vaahto Oy, Service roll cover product launches PRODUCT NAME COVER TYPE APPLICATIONS VRS-POLYTAM Polyurethane Reel spools, extreme wear and cut resistance VRS-POLYDRIVE Polyurethane All drive positions, also W version for wet applications VRS-POLYPRESS Polyurethane All press section applications, including suction rolls VRS-COMCAL Composite All calendering applications VRS-COMGUIDE Composite All lead roll applications, excellent wear and doctoring VRS-SIZEHYDRIL Rubber All sizer applications, excellent wear and temperature resistance VRS-COATEHYDRIL Rubber Coater application rolls for all different types of coating units VRS-CERAM W VRS-CERAM L VRS-CARBIDE D Thermally Sprayed Thermally Sprayed Thermally Sprayed Center press rolls especially wood containing grades like News, LWC, SC. Shoe press mating rolls. Lead rolls needing excellent cleanability and wear resistance. Lead rolls, spreading rolls, drying cylinders. Combination coating of wear resistant carbide+ DYREL fluoropolymer surface treatment Rolling pressure Max strength 3000 tn Max length 12000 mm Annealing (heat treatment) Max diameter 2500 mm Max length 11500 mm Max weight 40000 kg Reaming 900 mm x 2500 mm x 10100 mm Turning Max diameter 2400 mm Max length 14400 mm Max weight 40000 kg Inner turning Min/max diameter 300/1500 mm Max length 10600 mm Grinding Max diameter 1830 mm Max length 10500 mm Balancing Max diameter 3100 mm Max length 14600 mm Max weight 40000 kg

Group News 2010 7 CERTIFICATES ARE THE CORNERSTONES OF VAAHTO S QUALITY MANAGEMENT In spite of tough times and thin order books, Vaahto Group has systematically kept quality management systems in good shape. During the last 12 months, Vaahto s units have been audited by Inspecta Certifications Oy at Pietarsaari, Kokkola and Hollola. We are very pleased to state, that all Vaahto Group units have taken quality work very seriously and there are only very few remarks needing corrective actions, requested by auditors, says Vesapekka Karhi Vice President, Quality and Development. ISO 9001 seems really to be part of everyday work and is thus an integral part of Vaahto operations. Vaahto s customers confirmed the high quality of operations in a recent customer satisfaction survey, concludes the happy head of Quality. Traditionally Vaahto Group has been known as a pressure vessel supplier for demanding application including equipment for nuclear power plants. China Special Equipment Inspection & Research Centre audited the pressure vessel manufacturing at the Group s Pietarsaari and Hollola workshops in the autumn of 2009. The audit proves that both units are superior pressure vessel suppliers according to Chinese standards. Environmental issues have a growing importance among Vaahto s customers. ISO 14001 specifies within Vaahto the actual requirements for an environmental management system. It applies to those environmental aspects which organizations have control in and over which it can be expected to have an influence. Inspecta Certification Oy audited Vaahto s ISO 14001 in early February and confirmed that the company s environmental issues are under good control. Quality management cannot rely on auditing only, regular training is needed, too. As part of this systematic process class room training is a part of Vaahto s way of taking care of quality. Chinese quality authorities renewed Vaahto s pressure vessel manufacture license. Vesapekka Karhi appointed Vaahto Group s Vice President, Quality Vaahto Group announced in an appointment release 9.2.2010 that Vesapekka Karhi has been appointed Vice President, Quality of Vaahto Group from February 1, 2010. At this duty he reports to Anssi Klinga, CEO of Vaahto Group Plc Oyj. Karhi will further continue as Vice President, Quality and Development of Vaahto Ltd. Latest Quality News Audited by Inspecta Certification Oy: ISO 9001 and ISO 3834 Vaahto Oy, Japrotek Oy Ab and AP-Tela Oy ISO 14001 Vaahto Oy Tampere Audited by CSEI (China Special Equipment Inspection & Research Centre) China License, Japrotek Oy Ab China License, Vaahto Oy The head of the Chinese inspection team, Mr. Liu Deyu lead auditing at Vaahto Group s Hollola workshop. His counterpart on Vaahto s side was Vaahto Group s Vice President, Quality, Mr. Vesapekka Karhi. New Web Pages Out Now at www.vaahtogroup.fi Vaahto arranged together with local authorities an event targeting to increase readiness in cases of fire or chemical leakages or other dangerous situations. Jukka Katila from Vaahto takes his new skills into action.

8 Group News 2010 ONE WORLD - JOINT RESOURCES Vaahto is a global high tech company and needs various experts to succeed in providing customers with results. Over the years Vaahto has taken an active role in co-operation with several education institutions providing their students with places for practical training, research themes, graduate thesis and works. Students from various fields from business administration, accounting, welding, and engineering have experienced working in reality at Vaahto. One of the latest international additions to the team was 22-year-old Turkish engineering student Tuncay Gurcan. Tuncay, an enthusiastic Istanbul native spent 10 weeks at Vaahto s Hollola workshop as part of his practical training for the final year of his 4 year bachelor s degree majoring in construction and production division. We ll let Tuncay tell you more about his experience at Vaahto. On my way to Vaahto The journey that lead me to Finland began in 2005, when I passed an OSS exam (Turkish University entry exam) and began my studies at the Suleyman Demirel University s Department of Mechanical Engineering. Having been interested in an international career I first ventured abroad in 2008 when I attended UPV (University Politecnica de Valencia/Spain) for 6 months as an Erasmus exchange program student. In 2009 I needed an I would like to thank all Vaahto people who made my stay very pleasant, wishes Tuncay Gurcan as he heads home to Turkey. internship to complete my studies. I was lucky enough to find this internship at Vaahto through one of Vaahto s Turkish customer mills, Halkali Kagit, where I had done my summer training during my studies. Digging deeper into Pulp & Paper Machinery Before coming I had heard Vaahto Company s name many times and knew some products through my mill experience at Halkali Kagit s. During my stay in Hollola I began to realize why Vaahto has such a strong position in the pulp and paper industry. The knowledge, attitude and experience of everybody at Vaahto really impressed me. I was involved in several projects during my internship: the tissue machine rebuild project for a Finnish mill in Mänttä and Stora Enso s rebuilds in Imatra and Ingerois. As I had hoped I also had an opportunity to get to know some of the main paper machine components like Vaahto s headboxes and shoe presses, which I found fascinating. Marko Aalto, Production Manager, Vaahto Hollola, is pleased with the outcome of this joint venture. Our team benefitted from having Tuncay join us. His enthusiastic approach to everything, from questioning everyday routines for instance, helped us see things in a new light. Fresh perspective is always a plus! Our team also found themselves in a new situation as communication was conducted in English as opposed to our everyday Finnish. All in all we were pleased to have Tuncay as part of our team and wish him all the best in the future, Aalto concludes. A personal and professional learning curve I m very pleased with my experience in Finland and at Vaahto. When I compare your country with my own there are many differences. Particularly Finland is colder, darker and quieter than Turkey. But people are so kind, helpful and warm. That is why I like Finland a lot. I m also very happy with my training. This experience was great and I would definitely recommend it to other students. Theory and practice are two very different things which is what you learn through training. Also personal competence is at the forefront in this globalized world we live in. A foreign internship is a great way to increase ones skills; obtain valuable work experience in a global business environment and learn about different cultures and oneself in general as it s not always easy being in a foreign country surrounded by new people. I believe that my experiences at Vaahto will give me a great boost for my future business career. In brief if a student gets a chance to take part in an internship, they shouldn t miss it. And further more if its Vaahto, don t think twice, but take a chance and join the team =)) STELZER NEWS Offshore Project for Japrotek Stelzer Rührtechnik International GmbH received three large orders for polyester plants with production capacities up to 1400 ton per day. The customer is one of the largest producers of polyester in Asia. Stelzer has successfully supplied agitators used for polyester production in Germany. The positive experience is based on extensive CFD- Analyses (Computational Fluid Dynamics). In the future Stelzer will focus on this expanding market especially in China. EXPO PulPaper 2010 Helsinki, Finland China Paper 2010 Shanghai Shanghai, China PAP FOR Russia 2010 St. Petersburg, Russia Asian customers take advantage of Stelzer s expertise. Welcome! DATE 1. 3. June 15. 17. September 8. 11. November Japrotek has lately received orders for equipment to the Norwegian offshore industry. One of these orders is to ABB in Vaasa. ABB is a pioneer in this field and Japrotek has also earlier delivered tanks to them. The order is for a transformer tank in SMO-material or EN 1.4547. The manufacturing will be done according to the Norsok-standard and is very demanding; the inspections must meet the requirements of Norsok/ABB. After approved final inspection the tank will be transported to ABB in Vaasa, where the transformers will be installed into the tank. When the installation work in Vaasa is finished, the transformer tank will be shipped to Norway. Deliveries to the offshore industry are always demanding due to the special circumstances in which the machinery is used. For example this transformer tank and transformers will be placed on the sea bottom and because of this they are dimensioned to withstand large external pressure. Japrotek has year of experience in working with demanding production techniques and materials. Deliveries to various customer industries have taught us the skills needed to succeed in this type of projects, says Stig Sandström, Sales Manager, Japrotek Oy Ab. Transformer tanks are assembled at Japrotek s production facilities in Pietarsaari. Vaahto Group Plc Oyj Laiturikatu 2, P.O. Box 5, FI-15141 Lahti, FINLAND Tel: +358 20 1880 511, Fax: +358 20 1880 301 Vaahto Ltd, Service Kuoppamäentie 5-7, P.O.BOX 838 FI-33101 Tampere, FINLAND Tel +358 20 188 0700, Fax +358 20 188 0701 E-mail: vaahtoservice@vaahtogroup.fi Vaahto Pulp & Paper Machinery 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: vaahto.shanghai@vaahtogroup.fi AP-Tela Oy Ahertajantie 18 FI-67800 Kokkola, FINLAND Tel: +358 20 1880 650, Fax: +358 20 1880 660 E-mail: ap-tela@vaahtogroup.fi ZAO SLALOM 196191 St. Petersburg Constitution sq., bld.7, office 626 RUSSIA Tel. +7(812) 974 80 10, Tel./fax +7(812) 676 03 24 E-mail: slalom@slalom-spb.ru E-mail: firstname_surname@slalom-spb.ru Vaahto Ltd, Projects Ahlmanintie 56, P.O.BOX 520 FI-33101 Tampere, FINLAND Tel +358 20 188 051, Fax +358 20 188 0776 E-mail: vaahtosales@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 E-mail: japrotek@vaahtogroup.fi Vaahto Ltd, Projects & Service Vanha Messiläntie 6, P.O.BOX 1000 FI-15861 Hollola, FINLAND Tel +358 20 188 0511, Fax +358 20 188 0290 www.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 www.vaahtogroup.fi