The next-generation bioproduct mill in Äänekoski. Matti Toivonen Development Manager of bioproduct mill Metsä Group

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1 The next-generation bioproduct mill in Äänekoski Matti Toivonen Development Manager of bioproduct mill Metsä Group

2 Metsä Group and Metsä Fibre

3 Key figures 2017 METSÄ GROUP Sales EUR 5.0 billion Personnel 9,100 METSÄLIITTO COOPERATIVE Group s parent company Owned by 104,000 Finnish forest owners METSÄ FOREST Wood supply and forest services METSÄ WOOD Wood products METSÄ FIBRE Pulp and Sawn Timber METSÄ BOARD Paperboard METSÄ TISSUE Tissue and cooking papers Sales: EUR 1.6 billion Personnel: 850 Sales: EUR 0.5 billion Personnel: 1,400 Sales: EUR 1.9 billion Personnel: 1,200 Sales: EUR 1.8 billion Personnel: 2,350 Metsä Board is listed on the Nasdaq Helsinki Sales: EUR 1.0 billion Personnel: 2,800 Renewable energy 24 TWh 3

4 Metsä Fibre A leading producer of bioproducts and bioenergy We produce high-quality northern bleached softwood and birch pulp, and spruce and pine sawn timber Metsä Fibre has four pulp mills and six sawmills Our products have growing global markets 4

5 The next-generation bioproduct mill

6 Forest industry s largest investment in Europe In , Metsä Group implemented a bioproduct mill project in Äänekoski. The project was completed on schedule and within its budget of EUR 1.2 billion The employment effect of the construction period was more than 6,000 person-years, half of which were completed in Äänekoski Valmet was one of our main equipment suppliers Valmet s equipment supply Recovery boiler Pulp drying line Lime kiln Bark gasification plant Automation system 6

7 Why the bioproduct mill was built? The demand for softwood pulp is increasing steadily. We want to help our customers succeed by producing high quality pulp The new bioproduct mill was built on the present mill site, where it serves the existing forest industry. The bioproduct mill replaced in 1985 opened pulp mill which was nearing the end of its life cycle Its location is ideal in terms of availability of raw materials, and the necessary logistics networks are already in place 7

8 Project schedule YEAR MONTH Investment plan announced Pre-planning of the mill, the Environmental Impact Assessment (EIA) and environmental permit processes start Pre-planning of the mill and the environmental permit process end Selection of key suppliers Civil engineering, contracts on the main equipment deliveries Equipment installations start Testing starts Start-up of the mill Nominal production begins Port selected Demolition of the old, closed mill beings Investment decision 8

9 Bioproduct mill reached its full production capacity The bioproduct mill reached its nominal capacity in August 2018, according to plan. The bioproduct mill produced its millionth tonne of pulp on 8 August The bioproduct mill was started up on 15 August 2017, on schedule and within budget.

10 The production capacity of bioproduct mill has developed over the target

11 The world s first next-generation bioproduct mill Annual pulp production 1.3 million tonnes Use of wood 6.5 million m³ annually The mill will not use fossil fuels 150 employees 2,500 jobs in the whole value chain in Finland, with 1,500 new jobs Main markets for pulp: Europe and Asia Sales will increase especially in China Top-level efficiency and cost competitiveness 11

12 We are the world s largest producer of market softwood pulp The demand for softwood pulp is increasing steadily around the world, most rapidly in China The bioproduct mill will strengthen Metsä Group s position in the northern softwood pulp market globally, improve profitability in the long run and meet the increasing demand for northern softwood pulp The demand for tissue papers, packaging paperboards and speciality products made from high-quality northern softwood fibre is growing at the highest rate New bioproducts and bioenergy will improve the competitiveness of basic business operations Demand for bleached softwood market pulp Million tonnes Source: Company websites and other public sources

13 Wood from sustainably managed forests We always know the origin of the wood we use We procure wood according to the same criteria regardless of the country of origin Over 90% of the wood used by Metsä Fibre is certified Forest certification ensures that the forest has been used legally and managed sustainably Most of the wood used by the bioproduct mill is acquired from sustainably managed Finnish forests 13

14 Bioproduct concept: all side streams 100% utilised * Traditional bioproducts Accomplished * * New biofuels from bark, wood dust and energy wood Product gas from bark for the mill s own use Sulphuric acid and methanol from odorous gases for the mill s own use New bioproducts from lignin Biogas from sludge for traffic fuel or the mill s own use Fertiliser and earth work material from dregs and ashes New textile fibres from pulp * Biocomposites from pulp 14

15 High energy efficiency; 240% electricity self-sufficiency High energy efficiency as a prerequisite for planning The bioproduct mill s electricity self-sufficiency is considerably high at 240% The mill will generate 2.5% of all electricity in Finland Around half of the bark from production will be gasified into renewable fuel for the mill s own use. The rest will be sold as biofuel 15

16 Fluent, efficient logistics in key role The whole supply chain from the forest to the mill and from the mill to customers must function reliably and costefficiently Wood transportation From forests to the mill Bioproduct mill Product transports From the mill to the port and markets 16 Wood raw material will be transported by trucks and trains from the forest to the mill 240 trucks and 70 railroad cars by day Prerequisite: undisturbed wood supply Pulp will be transported to the Vuosaari export harbour by train 44 railroad cars by day Products will not be stored at the mill, the harbour will serve as an export product warehouse Prerequisite: reliable port operations

17 First-rate environmental efficiency 17 Equipment for the bioproduct mill was selected based primarily on energy efficiency, low water consumption and low emissions. Its equipment represents the best available technology Even though its production capacity is nearly three times higher than the previous pulp mill of Äänekoski, the bioproduct mill is operating within the same emission limits and wastewater conditions of the previous mill s environmental permit. Its emissions will not affect the recreational or other use of the natural water system Odorous gases will be processed into sulphuric acid, which the bioproduct mill needs in the manufacture of such products as tall oil

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19 Recovery boiler

20 Sulphuric acid plant

21 21 Drying and baling

22 22 Automated pulp distribution center

23 The world s first next-generation bioproduct mill 23

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