Welcome! Ulf Eliasson Senior Vice President Skoghall Boards Peter Olsson Engineering Manager Skoghall Boards

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1 Welcome! Ulf Eliasson Senior Vice President Skoghall Boards Peter Olsson Engineering Manager Skoghall Boards 1

2 Stora Enso in Brief A world leader 16.5 million tonnes of paper and board 7.4 million m 3 of sawn and processed wood products Four main divisions Stora Enso Publication Paper, Stora Enso Fine Paper, Stora Enso Packaging Boards and Stora Enso Forest Products Sales EUR 14.6 billion Approximately employees in more than 40 countries Market capitalisation EUR 9.5 billion (31 Dec 2006) Shares listed on Helsinki, Stockholm and New York stock exchanges 2

3 Net exports* of some product groups 2006 in Sweden *)Net exports = exports of products less imported input materials Forest industry products Cars, car parts Electronic goods, computers Other engineering products Energy goods Iron-ore, iron and steel Pharmaceutical products Other chemical products billion SEK Total exports: 1085 billions SEK Total imports: 935 billions SEK Source: Statistics Sweden 3

4 Electricity consumption Swedish pulp and paper industry Total consumption in Sweden 2006: 146 TWh TWh The pulp and paper industry s share: 15 % total consumption 4

5 Stora Enso Skoghall AB Skoghall Forshaga Karlstad Research Centre 5

6 Products made from our paperboard There are three main product groups: LPB (Liquid Packaging Board) for milk, juice and other liquids. CKB (Coated Kraft Back) for frozen foods, dry foodstuffs, general packaging WTL (White Top Liner) is the white outer layer of corrugated fibreboard. 6

7 Top 20 European Primary Fibre Board Machines Board Machine Capacity (ton/a) 1. Stora Enso / Skoghall BM Competitor BMA Competitor BMB Stora Enso / Skoghall BM Stora Enso / Imatra BM Stora Enso / Fors BM Competitor BMC Stora Enso / Imatra BM Competitor BMD Stora Enso / Imatra BM Stora Enso / Baienfurt BM Stora Enso / Ingerois BM Competitor BME Stora Enso / Imatra BM Competitor BMF Competitor BMG Competitor BMH Stora Enso / Fors BM Competitor BMI Competitor BMJ Source: Jaakko Pöyry & Stora Enso 7

8 Overview of the production process Wood CTMP Sulphate pulp Board construction Board production Recovery 8

9 Investments External treatment plant EUR 423 milion Investments since 1988 EUR 940 million 1992 Oxygen bleaching KM8, CTMP plant, Bleaching plant No.3 MEUR Rebuild of winder KM7 Increased pulper capacity KM7/KM Acquisition of Tetra Pak s PE coating plant in Forshaga Energy 2005

10 Stora Enso has invested 211 M in energy and environment for the continued development of the Skoghall Mill Goals for Energy 2005 To create a basis for the continued development of paperboard production To improve energy efficiency To reduce emissions to air and water Project scope Recovery boiler Evaporation plant CTMP evaporation plant Malodorous gas system Tall oil plant Rebuild of steam system and turbines Control room Conversion of the oil boiler into a biofuel boiler Fuel-handling system 10

11 Energy 2005 improves energy efficiency The more efficient use of energy and the increased use of bio fuel will reduce oil consumption by m 3 /a. The share of biofuels of Skoghalls fuel mix is expected to increase to 93 % in The degree of self-sufficiency in electrical power will increase from 15% to 35%, which is the equivalent to the production of MWh/a The Skoghall Mill is now one of the biggest producers of electrical power in region. 11

12 Fossil CO 2, biofuels and energy consumption at Skoghall Mill 400 kg/t Fossile CO 2 emissions 100% Share of biofuels in fuel mix % % 40% 20% E2007 0% E ,0 GJ/t Heat consumption kwh/t Power consumption 10,0 9,0 8, E E2007 Own prod. From grid 12

13 Energy 2005 a contribution to reduced climate impact Energy 2005 makes a considerable contribution to reducing fossil carbon dioxide emissions The change has an impact on a global climate context, where it is a large single contribution ton CO 2 /a Emissions of fossil CO 2-75 % The reduction corresponds to the emissions from cars in this region, where persons lives 0 Skoghall Mill 2004 Skoghall Mill est

14 Timetable Investment decision made 11 Dec Feasibility study Purchasing process Planning The new recovery boiler and evaporation plant were brought into operation in September The converted biofuel boiler will be brought into operation in the summer of Environmental process Recovery boiler and evaporation plant Conversion of oil boiler into a biofuel boiler

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16 Start up of the recovery area in autumn 2005 was a success Evaporation plant The plant was started at a stop in the pulp mill. After 6 hours liquor was delivered. Very good operational economy. Recovery boiler Flying start up. Pulp was produced during the start up. Board machines produced 2600 tonnes during start up day, which was a production record. More steam production than before resulting in a decreased oil consumption of 85 m 3 /d. 16

17 Start up of fuel handling and bio fuel boiler in summer 2006 was also a success! Fuel handling Good mix of different fuel types High availability Bio fuel boiler Good load regulation performance with bio fuel Good start up and high availability Emissions in level with expected 17

18 Energy when energy and environment dances together 18

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21 Wood and fibers Wood chips Back 21

22 CTMP mill (mechanical pulp) (CTMP=Chemi Thermo Mechanical Pulp) Mechanical separtion of fibers in big refiners. The process gives % wood yield, but has a very high electrical power consumption. CTMP fibers provides bulk and by that stiffness in the board. Capacity t.p.a. Back 22

23 Sulphate pulp mill (chemical pulp) Chemical separation of fibers in the pulping process (cooking). The process gives 50 % wood yield, but chemicals and energy are recovered. The total strength of the fibers can be used in the board. Capacity t.p.a. Back 23

24 Chemical and energy recovery Back The recovery area in a sulphate pulp mill is a producer of energy as well as being a chemical plant for recovering cooking chemicals. 24

25 Liquid Packaging Board a high tech product! Produced in several plies Clay coating layers (1 to 3) Top ply Bleached sulphate pulp, softwood and hardwood Center plies Mainly CTMP Reverse ply Softwood sulphate pulp Bleached or unbleached Back 25

26 KM8 Basic facts Start-up year 1996 Length 298 m Width 8,1 m Annual capacity tn Coating 3 stage Grammage g/m2 Back 26