Lila takes the lead. Advantage DCT concept Responding to customer needs

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1 Lila takes the lead Advantage DCT concept Responding to customer needs Valmet has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013.

2 Lila takes the lead Tissue at (!) m/min has become a mill standard at Lila Kagit, Turkey. The young company started its first and only tissue machine on November 7, The large 5.5 meter wide Advantage DCT machine reached 1950 meters per minute in just six months. During m/ minute yankee speed is set when producing 17,5 gsm bath tissue. It has happened again A new company, with no previous paper making experience, enters the tissue business and writes a success story. Success does not come automatically says Mr. Orhan Ögücü, there are a number of well founded decisions and, not least, a skilled group of people on the site behind it. Mr. Orhan Ögücü has all reasons to be pleased. Behind him, on the shelf are several of the Lila Kagit s own branded products. Berrak has started capturing leadership in various regions, Nua is an innovative organic product with no competitors. Since launching its firs products, just a few years ago, the company has captured in total an impressive twelve percent market share, still growing.

3 The Corlu mill with its textile manufacturing and power generation plant provided a suitable field for the new tissue line From textile to tissue We meet Mr. Orhan Ögücü, chairman of the Marmara Group, in his HQ office on the 23rd floor with a marvelous view over Istanbul. Marmara Group was established more than 25 years ago focusing on textile. In 2005 generation of electric power was added to the group portfolio. Lila Kagit, a company in the demanding consumer business sector, new in the group since It was in 2004, says Mr. Ögücü, when the idea of expanding our business into hygiene papers had matured to the point that we decided to proceed into the next phase, the business plan. Our first choice of site location was our existing textile plant in Corlu. Here we have a large capacity of underground well water and good access to electricity. Since five years we generate our own power from natural gas and sell the surplus to the grid. It is an other growing business. Starting with two engines, we now have nine, reaching a total of 75 MWh capacity. Corlu is also strategically located in view of shipping goods to Europe, Asia and the Middle East. High quality and perfect rolls a matter of competitiveness Coming new into this business it would seem natural to start in a smaller scale, with a 2,5 m wide machine? tons of tissue per months from a wide machine is a lot of paper to handle?! The selection of machine width was depending on two main conditions, Mr. Orhan Ögücü continues, first, we had to be sure to get the rated production at expected top quality. Second, sales of jumbo rolls. Of course, the quality aspect of the first condition is linked to sale of jumbo rolls. High tissue quality and physically perfect rolls make us more competitive. The size of machine has a paramount impact in the business plan. Therefore we made contact with Metso* already when commencing the plan work. Metso (Valmet) spent a lot of effort, not only in the technical matters but also others such as challenging and contributing to the business plan. Long term relations Metso Paper (Valmet) did eventually get the order for the machine. Now, you can add 2,5 years of post start-up experience of the supplier. How do you view them today? Mr. Ögücü: For us, supplying a paper machine isn t just about the scope of supply. It is the idea that the supplier needs to know what to do before and after the Project period, what to do in order for that mill to operate efficiently, at least for the next 10 years. It is only possible if the supplier thinks and acts as the customer. In this respect Metso has met our expectations. Speaking of long term relations I would like to introduce Mr. Haluk Arican, Metso s representative here in Istanbul. He has during the whole project been very instrumental in strengthening the bond with them even through difficult time periods. I might add that I, prior to decide on entering into tissue, personally visited no less than 25 tissue operations, mainly in Europe, in order to establish my own idea of a successful tissue business. Several of the visited mills were very pleased operating machines from Metso (Valmet). *Operatin as Valmet from Jan

4 Corlu PM1, Advantage DCT 200. In July 2010 the machine reached the impressive yankee speed of m/min when producing 17 gsm bath tissue. Continued expansion After a very apparent good start of your tissue business, what comes next? Mr. Orhan Ögücü breaks the stunning news: We have just signed the contract for PM2! It is the same width and a mirror image of PM1. Selecting this option is not only due to the fact that it is easier and less costly to repeat what we have done before. Metso (Valmet) proved to put out an outstanding example and more is expected this time. Production rate on heavier basis weights is increased and for reaching the top machine speed we are not counting months, but days! The supplier accepted this challenge. Our vision is to become the leading tissue and FMCG (Fast Moving Consumer Goods) supplier, not only limited to Turkey, but the whole Mediterranean region. We wish the supplier to keep up the good performance and consistently raise the bar in order to be part of this vision. Turkey a big exporting country How do you view the consumer product market in Turkey? Turkish tissue market has been growing steadily, even through economical turbulent times, since year The steady increase has attracted many investors to have a share either in paper making or converting. The investments has propelled the production to tons per year, by far the largest in the Middle East. Turkey has become, from somewhat a balanced tissue market to a big exporting country in the Mediterranean region. It is now for sure that over tons per year capacity will be added to the production between the years of It will take at least five years for domestic consumption to absorb the new investments along with the installed capacity. Therefore, exports from Turkey will need to increase in double digit numbers to keep everyone busy. How did Lila Kagit manage to speed up its first tissue machine the outstanding m/min? We travel to the Corlu mill to find the details. 4

5 It feels safe and convenient to have both the machine and the controls from the same supplier says Murat Özgür, Production Manager. Automation by Metso included metsodna single platform solution for process, machine, drive and quality controls with headbox dilution profiler as well as Neles valves and Sensodec 6S condition monitoring system. The tissue line is based on a two layer tissue concept, HW and SW. The performance package includes several key components such as pulpers, refiners and screens. 5

6 Murat Özgür, Production Manager Good training and understanding of the process has made us bring the machine up to the m/min level Murat Özgür, Production Manager Training an investment in the future Mr. Murat Özgür, Production Manager, started to work for Lila Kagit in January of 2008, a few months after the November 7, 2007 start-up of the DCT tissue machine: To bring PM1, our first tissue machine, to top production speeds is of course a big challenge, but there are also opportunities. The challenge is to quickly inherit experience and skills needed to operate a modern tissue machine at top notch production and quality levels. The opportunity on the other hand is that all the new people hired will not be pre-occupied with the experience of how difficult it used to be operating a tissue machine at high speeds! Investment in training has given results. We have been producing 17 gsm toilet several times at a speed level of m/min. In order to ensure that everyone, always, in the machine crew is well trained Lila Kagit periodically puts in an additional machine crew person just for training purpose. This is partly done in view of future expansion. If and when, Mr. Murat Özgür says, we add the next tissue machine, it will be much easier for us to staff the crews. Employing machine tenders from outside means that experience easy come but unfortunately could mean also easy go. In-house trained people from the local area have a tendency to want to stay local. Given that the machine is built, installed and enabled to operate at guaranteed speeds, what does it take in practice to reach this high level? When you first reach m/min., you think, this is it! When you start climbing further you find that all the operating parameters must be at their optimal set points at the same time! That is what makes m/min. possible. Maintaining everything even, cross machine, is extremely important: BW-profile, felt moisture profile, clean wires, yankee coating and of course the performance of the yankee, the hood, and the reel. Monitoring and controlling the whole process is made through the Automation system. It feels safe and convenient to have both the machine and the controls from the same supplier. In summarizing the answer to your question, I would say: Good training and understanding of the process has made us bring the machine up to the m/min. level. What is your experience of the felt and wire life on a high performance machine like this? Normally a felt would run eight weeks but we have had felts running for ten, even eleven weeks. Wire life is also good. The last one was running for eight months, 240 days! Average life is about four to five months. The almost non-existing dent in the jumbo roll in contact with the reel drum tells about a perfectly controlled reeling operation. A large 2,8 m diameter jumbo roll is leaving the machine. High roll quality for best converting efficiency is getting more and more important for Lila Kagit with the increasing share of the production sold as jumbo rolls. 6

7 The site in Corlu is large with good conditions for expansion. A new office building has just been completed. History was made by Lila Kagit in July 2010 when operating at 2020 m/min. yankee speed. With the addition of the second big tissue machine at Corlu, Lila Kagit is moving in among the top producers in Turkey. PM2 will also help Lila Kagit to reach their goals for own branded product as well as for export of jumbo rolls. Corlu Istanbul Tissue Machine Main Data The Lila Kagit mill is located in Corlu, in the north west part of Turkey, one and an half hours drive from Istanbul. Type Production (at 17,5 gsm) Sheet design Paper width on reel Max. operating speed (yankee speed) Basis weight range on reel Advantage DCT ton/day 2-layer mm m/min gsm Creeping ratio range 5-30 % Yankee diameter 18 ft (5 500 mm) 7

8 For more information, contact your local Valmet office. use generic adress Specifications in this document are subject to change without notice. Product names in this oublication are all trademarks of Valmet Corporation. Valmet Corpotation VI EN 2014.