NEUSIEDLER. Thinking of the future. Mondi Europe. MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME. Environmental Report 2002

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1 NEUSIEDLER Thinking of the future Environmental Report 22 Mondi Europe MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME

2 Contents 3 Foreword 4 Company Profile 5 NEUSIEDLER Environmental Policy 6 NEUSIEDLER Environmental Management 7 Sustainable Use of Raw Materials and Production Aids 8 Climate Protection 9 Mills 1 Austria 12 Hungary 13 Israel 15 Slovakia 16 Russia NEUSIEDLER AG A-3363 Ulmerfeld-Hausmening Environmental Management: Phone ++43-() Markus Schinerl Fax ++43-() Phone ++43-() service@neusiedler.com Fax ++43-() markus.schinerl@neusiedler.com ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 2

3 Responsibility for Tomorrow Begins Today Thinking of the Future this is the theme guiding us in our Environmental Report. For us, thinking of the future implies concerning ourselves with the environment and protection of the environment. Preserving our resources for future generations is in keeping not only with our conscience but also with the increasing demands of our partners and customers. As an international player, the NEUSIEDLER Group has always taken its responsibilities very seriously. We have always endeavoured therefore to minimise the environmental impacts of our activities whenever possible, which is backed up in many ways, including the Environmental Management System ISO 141. True to our new corporate vision PUSHING THE LIMITS we are also striving for excellence in this field. We have embarked on comprehensive investment programmes to continually increase the environmental performance of our mills; at the moment we are focusing on our Slovak mill at Ružomberok where the environmental situation is significantly improved through the implementation of a large-scale modernisation project. Environmental protection is also a focal point of our raw materials procurement. When procuring our main raw material, we insist on timber coming from sustainable forestry. Whenever possible, we choose as suppliers companies certified according to FSC (Forest Stewardship Council), PEFC (Pan-European Forest Certification) or a comparable system. Ongoing optimisation of freshwater consumption, waste water treatment, air and noise emissions, and waste volumes are also part of our environmental strategy. This report serves as an overview of all measures we are taking in this sector. Should you be interested in receiving further information or in offering us suggestions, please contact our staff. Continuing improvement has always been our central concern, in terms of business, as well as environmental protection. Günther Hassler, MBA Chief Executive Officer MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 3

4 The NEUSIEDLER Group The NEUSIEDLER Group is one of the largest producers of high-quality, low chlorine and chlorine-free office communication paper. Expansion through acquisition Core business paper production (1, tons) 1,4 1,2 1, million tons production capacity With seven mills in Austria, Slovakia, Hungary, Israel and Russia NEUSIEDLER boasts an annual production capacity of 1.7 million tons of paper, 1.4 million tons of which is accounted for by uncoated wood free paper. 1, With its acquisition of a majority stake in the Russian paper mill Syktyvkar Forest Enterprise, NEUSIEDLER succeeded in June 22 in taking the lead among the European producers of office papers. This position has challenged NEUSIEDLER to further optimise its corporate environmental protection programme One-stop shop for office papers With its umbrella brand NEUSIEDLER PAPE INTELLIGENCE, NEUSIEDLER offers a comprehensive range of uncoated wood Austria (Theresienthal / Kematen) Hungary (Szolnok / Dunaújváros) free papers for office communication. In addition to highquality grades for all standard applications, NEUSIEDLER also Israel (Hadera) Slovakia (Ruz omberok) Russia (Syktyvkar) offers a complete range of specialties, thus meeting all standard requirements in the copy and printing sector A subsidiary of the Mondi Europe Group NEUSIEDLER AG is a wholly owned subsidiary of the Mondi Europe Group. Mondi Europe together with Mondi South Africa form the Forest Products division of Anglo American plc quoted on the London Stock Exchange. NEUSIEDLER mills Syktyvkar, Russia Kematen, Austria Theresienthal, Austria Ružomberok, Slovakia Szolnok, Hungary Dunaújváros, Hungary Hadera, Israel ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 4

5 NEUSIEDLER Environmental Policy With the growing awareness of the finite availability of raw materials and energy sources as well as the rising number of environmental problems, consumers increasingly ask for ecologically safe production, environmentally sound company ethics and environmentally friendly products. For NEUSIEDLER therefore, responsibility towards the environment is not only a catch phrase, it is a real pledge. In line with sustainable development the Board is determined to guide the company along an example-setting environmental policy. This means to maintain the environmental standards of our company and, more than that, to continually improve them. The following principles are the backbone of NEUSIEDLER s environmental policy: h We oblige all employees of NEUSIEDLER to follow all legal regulations and any other requirements that we are pledged to. h We encourage environmental responsibility and awareness of our employees on all levels and functions. h We support training measures for our employees to utilize resources and energy sparingly. h We check the environmental impact of current activities on local surroundings. h We assess the environmental impact of each new activity, each new product development, and each new procedure before their introduction. h We implement all necessary and economically acceptable measures, to avoid or to remove environmental damage. Should environmental impacts be unavoidable, we seek to reduce them to a minimum (also possible accidental emissions). h We set goals aiming at an ongoing improvement of our environmental performance and take corrective action if these goals are not met. h We keep the general public informed on our environmental activities and engage in a dialogue with all stakeholders. h We provide our customers with information on the ecological aspects of our products and on eco-friendly handling of our products. h We encourage any subcontractors working on our premises to meet the same requirements as ourselves. h We make sure to use processes and controlling instruments, which guarantee the implementation of our environmental policy. The relevant measurements are taken, results updated and documented. MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 5

6 Environmental Management at NEUSIEDLER The central pillar of NEUSIEDLER s environmental management is its environmental policy which, together with NEUSIEDLER s quality and safety policy, sets the fundamental corporate guidelines for this sector. Group-wide certification With the certification of the Theresienthal mill according to ISO 141 in 1995 and according to EMAS in 1998, NEUSIEDLER was among the first to establish an environmental management system in line with international standards. The Kematen mill was certified in 21, followed by certification of the two Hungarian mills at Szolnok and Dunaújváros in 22. The Israeli mill at Hadera had been already certified according to ISO 141 when it was acquired in In 23 the activities of the holding company NEUSIEDLER AG were certified according to ISO 141, and certification will be consistently pursued at the new mills at Ružomberok (acquired in 21) and Syktyvkar (acquired in 22) where certification is expected by 24. Efficient organisation In order to ensure harmonized group-wide procedures in all matters related to environmental protection, NEUSIEDLER has created an efficient organisational structure that ensures effective harmonisation and implementation of all environment-related concepts and measures. All mills have an environment officer who safeguards the continuing improvement of environmental performance and reports directly to the mill management. Environmental programmes are established for each mill on an annual basis, containing all individual environmental actions and measures, as well as defined goals and objectives. The NEUSIEDLER AG holding company, located at the Austrian Theresienthal mill, houses the central Competence Centre Engineering and SHE (SHE Safety, Health & Environment) that sets group-wide goals and objectives, and is responsible for the coordination of all environmental activities of the NEUSIEDLER Group. Central issues of environmental management are, above all, the continuous reduction of wastes and emissions into air, water and soil, as well as safeguarding that all legal requirements are being met. A further focal point is to ensure that NEUSIEDLER uses only raw materials and production aids that meet the high ecological standards of the Group. ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 6

7 Sustainable Use of Raw Materials and Production Aids Concerning raw materials, NEUSIEDLER aims at the sparing use of natural resources. Products and substances are selected with great care, aiming at the lowest possible environmental impact combined with the required functionality in the production process. h All new raw materials and production aids used at NEUSIEDLER require approval by the environmental and occupational health management. h For paper production we only use those paper aids at NEUSIEDLER, that are also recommended for paper products in contact with food by the German Federal Institute for Health, Consumer Protection and Veterinary Medicine in its Recommendation XXXVI. This ecologically sound selection is safeguarded by determined quality assurance, continuous assessment of suppliers according to quality and ecological criteria, and full integration of environmental management into the procurement process. Pulp and timber from sustainable forestry With regard to pulp and timber, the primary raw materials for paper production, the NEUSIEDLER Group is committed to sustainability. To underline its commitment, the following guidelines have been defined: h We ask our suppliers on a regular basis to publish their relevant environmental key data and information about their production processes. h We use this data for benchmarking and commit our pulp suppliers to continuously improving their environmental performance. h We prefer pulp suppliers with an environmental management system that is certified according to internationally recognised standards, e.g. ISO 141. h A decisive criteria of our supplier assessment, which is the basis of our supplier selection, is ecologically sound production. h We request our pulp and timber suppliers to furnish us with a confirmation stating that they comply with all relevant national laws. h We request our pulp and timber suppliers to submit confirmation that all supplied raw materials come from sustainable forestry. We prefer suppliers with certified forestry management systems (FSC, PEFC, etc.). h We purchase pulp from tropical countries only if it comes from sustainably managed plantations. h We only purchase elemental chlorine-free (ECF) and total chlorine-free (TCF) bleached pulp. h Wherever possible, pulp is transported to our mills by ship and more than 9% of the land transport is by rail. MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 7

8 Currently, NEUSIEDLER accounts that approximately 2% of the contracted pulp is from certified forests. In order to increase this share, NEUSIEDLER is calling on all pulp suppliers to push ahead with their certifications. Against this background, NEUSIEDLER also promotes the goal of having the Federal Forests of Slovakia, one of the major suppliers to the Ružomberok mill, and the forestry in the Republic of Komi (suppliers to the Syktyvkar mill), certified according to the FSC system. It is expected that at least 35% of the timber processed in these mills will originate from FSC certified forests by 25. Climate Protection The global climate (greenhouse effect) is a great challenge to the economy as a whole, and NEUSIEDLER is actively engaged in climate protection. We are striving for a reduction of fossil CO 2 emissions which, in paper production, develop primarily in the supply of energy. Efficiency in the use of energy is thus being continuously optimised at the various mills by determined energy management. Moreover, fossil energy is substituted by biomass whenever economically indicated from the point of availability and infrastructure. This objective is supported by the following measures: Energy consumption of the NEUSIEDLER Group 33% Biomass h Preferential use of natural gas which, as regards CO 2 emissions, is the most eco-friendly fossil energy source; in addition to reduced fossil CO 2, emissions of sulphur dioxide and particulates are avoided. h Consistent application of combined heat and power generation for the best possible self-sufficiency in electricity supply. h Extensive use of bark and saw mill residues in the energy supply of the mills at Ružomberok and Syktyvkar. 1% Other fossil fuels 66% Natural gas ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 8

9 Mills Austria Hungary Israel Slovakia Russia Theresien- Pulp mill Duna- Ružom- (Absolute figures 22) Unit thal Kematen Kematen Szolnok újváros Hadera berok Syktyvkar Production Printing and writing papers tons 258,779 93, ,919 94,59 122,29 32,43 513,689 Packaging papers tons 4, ,243 Chemical Pulp adt 41,62 27, ,814 Mechanical pulp adt 173,715 Emissions into water Waste water volume 1, m 3 1,888 1,336 2,13 2,24 1, ,161 77,84 COD tons , ,886 14,813 TSS tons ,355 Emissions into air CO 2 -fossil tons 114,837 42,335 6,739 74, ,216 1,675,324 SO 2 tons 11 1,15 6 Nitrogen oxides tons ,75 Wastes Wastes recycled tons 3, , , Wastes incinerated tons 6,958 4,39 6, ,44 413,871 Wastes landfilled tons , ,688 27,195 7,173 Energy consumption Electrical energy GWh ,579 Electricity produced onsite % Primary energy TJ 2, , ,289 38,711 Management systems Environmental System ISO 141 / ISO ISO ISO ISO ISO ISO ISO management EMAS Since / 1995 / planned until Quality System ISO ISO ISO ISO ISO ISO ISO ISO management Since / planned until Safety System OHSAS OHSAS OHSAS OHSAS OHSAS OHSAS OHSAS OHSAS management Since / planned until Forest management / System FSC-COC FSC / FSC / Chain of Custody FSC-COC FSC-COC Since / planned until MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 9

10 Austria NEUSIEDLER Ybbstal AG / Ybbstaler Zellstoff GmbH Theresienthal and Kematen mills Founded in 1869, the mills at Theresienthal and Kematen are the oldest production sites of the NEUSIEDLER Group. At Theresienthal, two paper machines produce mainly high-quality papers of segments A and A+; at Kematen, all coloured papers of the NEUSIEDLER Group are produced. The paper production of both mills is finished at Theresienthal. At Kematen, there is also a pulp mill which produces magnesium bisulfite pulp exclusively from saw mill residues without the use of chlorine and chlorine compounds. Highlights h : Start of chemical recovery and thermal use of black liquor; introduction of mechanical treatment of the effluent from Theresienthal and feeding of pre-treated waters into the municipal biological effluent treatment plant of Amstetten h : Conversion of bleaching system to total chlorine-free bleaching (TCF) with BIO TOP 3 in 1991, NEUSIEDLER was the first producer of total chlorine-free bleached copy paper h : Installation of a biological effluent treatment plant for pulp and paper production at Kematen h 1994: Start of thermal utilisation of sludges from the effluent treatment plant h 1995: Certification of the Theresienthal mill according to ISO 141 h : Development of the TRIOTEC technology three-layer process permitting the use of environmentally friendly raw materials (e.g. recycling fibres) also for top-quality requirements h 1998: Certification of the Theresienthal mill to EMAS standards h 1998: New dispatch central warehouse permits significantly shorter transport routes h 2: Start-up of plant for the production of PCC filler leads to further shortening of transport routes h 21: Realisation of district heating project for waste heat supply to nearby hospital; meanwhile, other users have been connected to the network h 21: Chain-of-Custody certification according to FSC h 21: Certification of Kematen paper production according to ISO 141 h 22: Extensive project for emergency management and disaster prevention at both mills ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı

11 Environmental programme 23 / Theresienthal and Kematen mills summary Objective Measures Dimension Year Reduction of operational risks Development and installation Listing of all essential risks 23 of an up-to-date emergency at both mills management system Reduction of fire risk Sprinkler systems, creation of fire Listing of all essential risk 23 / compartments, installation of an zones at both mills 24 up-to-date fire warning system Reduction of fire risk / Installation of a central chemicals Storage capacity for approx. 24 better chemicals storage store for the production 18 tons of chemicals chemicals Protection of resources Further reduction of waste Installation of two extra 23 volume, particularly of baling presses coloured broke Reduction of transport routes Full integration of the pulp Elimination of transport of 23 mill at Kematen through the approx. 98, tons of pulp installation of a pulp drying per year between the two mills plant Improved environmental Certification of the pulp produc- Certification of the pulp 24 management tion according to ISO 141 production Development of environmental situation Effluent volume (m 3 per ton of paper) COD after biological treatment (kg per ton of paper) Thermal energy consumption 1) (GJ per ton of paper) ) Thermal energy for production of electricity by cogeneration included. MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 11

12 Hungary NEUSIEDLER Szolnok Rt. Szolnok and Dunaújváros mills In 1995, NEUSIEDLER acquired a 1% holding in the mill at Szolnok, which had been closed for three years, and started reactivating the mill. The mill at Dunaújváros whose energy supply and waste water treatment is integrated with the adjacent Dunapack packaging material mill, was acquired in At these two Hungarian mills, office paper of sectors B and C is currently produced on two paper machines. Highlights h 1995: Resumption of production at Szolnok h : Optimization of internal physical/chemical effluent treatment plant h : Continuous optimisation of energy and fresh water consumption and of emissions into water h 21: Introduction of effluent into the municipal biological treatment plant of the City of Szolnok h 22: Certification of the mills according to ISO 141 h 22: Implementation of a waste management system for separated waste collection Environmental programme 23 / Szolnok and Dunaújváros mills summary Objective Measures Dimension Year Protection of resources Closing of the water cycle Further reduction of the fresh water 23 consumption by approx. 2% from 17 m 3 to 13 m 3 per ton of paper (Szolnok), and from 21.5 m 3 to 17 m 3 per ton of paper (Dunaújváros) Protection of resources Closing the water cycle; Reduction of fibre losses by 5%, 23 re-circulation of fibres from from 7 tons to 3.5 tons per day mechanical water treatment plant (Szolnok), and by 2% from 2.5 tons to 2 tons per day (Dunaújváros) Protection of resources Reduction of paper losses in Reduction of paper losses 23 finishing department by 1.5% (Szolnok), and by 1% (Dunaújváros) Reduction of traffic volume Reduction of remaining waste Reduction of disposal costs by 4% 23 and disposal costs volumes and of disposal costs (Szolnok), and by 2% (Dunaújváros) through use of waste presses ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 12

13 Development of environmental situation Effluent volume (m 3 per ton of paper) COD after biological treatment (kg per ton of paper) Thermal energy consumption 1) (GJ per ton of paper) ) Thermal energy for production of electricity by cogeneration included. MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME

14 Israel NEUSIEDLER Hadera Paper Ltd Hadera mill A member of the NEUSIEDLER Group since 1999, the mill at Hadera produces offset and copy paper on one paper machine. The energy supply and the water treatment of this mill is integrated with the neighbouring plants of American Israeli Paper Mills Ltd (AIPM). Highlights h 1998: Certification of the mill according to ISO 141 h 22: Further reduction of the already very low fresh water consumption of 8.5 m 3 to 8 m 3 per ton of paper h 22: Optimisation of the anaerobic biological effluent treatment process h 22: Israel Environmental Award Ministry of Environment Shield awarded jointly to AIPM and Hadera Environmental programme 23 / Hadera mill summary Objective Measures Dimension Year Reduction of emissions into air Conversion of energy supply to Reduction of SO 2 emissions 23 low-sulphur fuel oil (AIPM) by 7.6% Improvement of effluent quality Further lowering of load on Reduction of COD by 3% 23 effluent Reduction of fresh water Increased process water Reduction of fresh water consump- 23 consumption recirculation tion from 8 m 3 to 7.6 m 3 per ton of paper Protection of resources Implementation of a programme Reduction of wastes by 3% 23 for increased individual waste collection Development of environmental situation Effluent volume (m 3 per ton of paper) COD after biological treatment (kg per ton of paper) Thermal energy consumption (GJ per ton of paper) ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 14

15 Slovakia NEUSIEDLER SCP Ružomberok Ružomberok mill 5% of the Ružomberok mill, the largest fine paper producer in Slovakia, was acquired by NEUSIEDLER in 21. Three paper machines produce a major part of the offset papers of the NEUSIEDLER Group as well as office papers in the medium quality range. The pulp used for paper production is largely from own production (sulphate pulp). Highlights h 21: Complete substitution of coal and heavy fuel oil by natural gas h 21 23: Reduction of bad smell and effluent load through optimization of internal biological treatment plant h 22: Start of major project Impulse for increased output and simultaneously marked decrease in detrimental environmental side-effects (emissions into water and air) Environmental programme 23 / Ružomberok mill summary Objective Measures Dimension Year Reduction of emissions into air Reconstruction of pulp mill Reduction of SO 2 emissions from 23 / 3.2 kg to.8 kg per absolute dry 24 ton of pulp Reduction of fresh water Reconstruction of PM 18 and Reduction of specific water consumption: 25 further closing of cycle from 14.9 m 3 /t to 8 m 3 /t paper Closing of cycle in PM 17 from 12.8 m 3 /t to 8 m 3 /t paper Closing of cycle in PM 16 from 43 m 3 /t to 14 m 3 /t paper Improvement of environmental Certification of the mill according Certification of paper and pulp 24 management to ISO 141 production Increase in sustainability of Support to certification of Slovakian Certification of at least 5% of the 25 products state-owned forests according to timber processed in the mill according the FSC system; Chain-of-Custody to FSC certification of the mill according to FSC Development of environmental situation Effluent volume COD after biological treatment Thermal energy consumption Pulp production (m 3 /adt) Pulp production (kg/adt) Pulp production (GJ/adt) Paper production (m 3 /t) Paper production (kg/t) Paper production (GJ/t) MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 15

16 Russia (Republic of Komi) OJSC NEUSIEDLER Syktyvkar Syktyvkar mill In 22, NEUSIEDLER acquired a majority stake in the Syktyvkar mill which produces office communication papers, news-print, board and white topliner. The pulp (sulphate pulp) and the mechanical pulp for these products (CTMP, TMP) are from own production. Highlights h 22: Optimisation of internal biological water treatment plant h 22: Continuous reduction of fresh water consumption h 22: Increased use of biomass (bark, wood waste) for energy supply h 22/23: Conversion of short fibre bleaching to a 1% elemental chlorinefree process (ECF) Environmental programme 23 / Syktyvkar mill summary Objective Measures Dimension Year Reduction of emissions into air Optimisation of processes to avoid Reduction of emissions of TRS 23 emissions from pulp mill and H 2 S by 1 tons per year Reduction of emissions into air Installation of an electrostatic filter Reduction of particulate emissions 23 in the black liquor evaporator by 1% Reduction of emissions into water Further optimisation of biological Reduction of COD emissions by 5% 23 effluent treatment plant Reduction of emissions into water Conversion of long fibre bleaching 1% ECF bleaching in long fibre line 24 / to a 1% ECF process 25 Protection of resources Reduction of fibre losses through Reduction of fibre losses by 3% 24 / improved fibre recovery in paper 25 machines Reduction of fresh water Numerous measures for closing Reduction of fresh water consumption 23 / consumption of fresh water cycle by 1,5 m 3 per hour 24 Increase in the sustainability of Examination of organisational and 23 / products technical prerequisites for the 24 extension of forest certification according to FSC in the Republic of Komi within the framework of a diploma thesis Increase in the sustainability of Certification of forestry according Certification of at least 35% of 25 products to FSC; Chain-of-Custody certifica- the timber processed in the mill tion of the mill Improved environmental Certification of the mill according Certification of the pulp and 24 management to ISO 141 paper production ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı 16

17 Development of environmental situation Effluent volume COD after biological treatment Thermal energy consumption Pulp production (m 3 /adt) Paper production (m 3 /t) Pulp production (kg/adt) Paper production (kg/t) Pulp production (GJ/adt) Paper production (GJ/t) MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME 17

18 Imprint Published by NEUSIEDLER AG A-3363 Ulmerfeld-Hausmening Editors be.public Werbung Finanzkommunikation A-13 Vienna Graphic Design Kufferath GesmbH A-81 Graz Print Grasl Druck & Neue Medien A-254 Bad Vöslau Printed on NEUSIEDLER BIO TOP 2 g/m 2 ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı

19 MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı ME

20 NEUSIEDLER NEUSIEDLER AG A-3363 Ulmerfeld-Hausmening Phone ++43-() Fax ++43-() ı MEMBER OF MONDI EUROPE ı MEMBER OF MONDI EUROPE ı

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