Welcome To Cloquet June Cloquet Mill Presentation June 2013

Transcription

1 Welcome To Cloquet June

2 Mill History 1898 Built as Groundwood Mill 1964 Merged with Potlatch 1989 PM12 and New Coater 1993 PM4 Rebuild 1999 New Pulp Mill 2002 Purchased by Sappi 2004 PM12 Rebuild 2013 Begin Chemical Cellulose Production 2

3 Safety 6 Cloquet Mill OIR/LTIFR YTD OIR LTIFR Expon. (OIR) Expon. (LTIFR) YTD 3

4 Minimizing our Environmental Footprint Excellent compliance record Lowest published GHG emissions among our competitors Received the Minnesota Governor s Awards for Pollution Prevention in 2006 and 2009 >95% of steam is generated from renewable energy Water supply available from both Lake Superior and St Louis River Onsite landfill remaining life expectancy increased to >25 years Certified to ISO 14000:2004 standard FSC, SFI & PEFC Chain of Custody Certification 4

5 ton CO2e/adt Reduction in Greenhouse Gas Emissions FY2000 FY2002 FY2004 FY2006 FY2008 FY2010 FY2012 Reference = Industry average data from the AF&PA study reflects data from calendar year

6 Landfill Life Extension 6

7 Reference % Renewable Fuel for Steam/Power The Cloquet mill s on-site renewable energy position is world class Pinch

8 Cloquet s Wood Source Species Mix KRAFT Species Annual Tons Aspen 1,100,000 Maple 770,000 Pine/Birch 90,000 Total 1,960,000 SPECIALIZED CELLULOSE Species Annual Tons Aspen 1,300,000 Maple 645,000 Total 1,945,000 8

9 Cloquet Wood Procurement Area 9

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11 Cloquet Paper Grades Machine McCoy Opus Opus PS Flo Somerset Galarie PM4 238# 220# 220# 220# 183# 183# 156# (9pt) 146# 146# 142# (8pt) 119# 128# (7pt) 183# 183# 146# 146# 110# PM12 146# 119# 119# 119# 100# 100# 100# 80# 80# 80# 70# 70# 70# 60# 60# 11

12 Markets SFPNA enjoys a very strong position in high end direct mail, advertising and catalogs where the flight to quality is evident And while many magazines are struggling, our titles are growing in F12: Industry ad pages were almost flat Titles printed on Sappi were up 6%! The top four monthly magazines are all printed on Sappi paper (measured by ad page growth) #1 Vogue #2 People Style Watch #3 Elle Decor #4 Harper s Bazaar 12

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14 850 1,052 Cloquet Headcount FY '02 to May FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 May-12 14

15 Project Athena $170M strategic investment New debarking unit 2 additional digesters Pulp Mill Modifications Bleach plant Evaporators Market pulp machine Modify paper machines to run dry fiber 15

16 Project Athena Mill Pulp Integration SFPNA will go from approximately 120% to 106% due to lower CC volumes versus kraft pulp Cloquet pulp mill will retain kraft pulp production capability to provide maximum flexibility to market dynamics We will still have low cost energy advantage 16

17 Why Cloquet low cost, renewable energy Steam and electricity Pulp Mill pulp Paper Mill paper Products: Paper and Market Kraft Pulp Kraft pulp Steam and electricity market pulp Pulp Mill Paper Mill paper Products: More paper and Dissolving Pulp = more profit Dissolving pulp

18 Why Cloquet Assets Newest pulp mill in NA commissioned in 1999 Relative ease to convert Displacement batch cooking technology Oxygen delignification followed by ECF bleaching Well-matched capacities throughout pulp mill Excess utilities capacity for steam, electricity, water and effluent treatment World class environmental performance global industry leading low GHG emissions Renewable energy 18

19 Sappi Strength Sappi is established in the Chemical Cellulose business Global leader 800K over 1.3M ADMT of capacity Low quartile cost Sappi experience Decades of experience manufacturing CC and understanding its performance in downstream markets Centre of Excellence Sappi reputation with our customers Technical capability Reliable, predictable quality 19

20 Cloquet: An Award Winning Mill 2006 Lake Superior Bi-National Program Environmental Stewardship Award For Outstanding Contribution to Protect and Restore the Lake Superior Basin 2006 & 2009 Minnesota Governor s Award for Pollution Prevention 2007 National Pollution Prevention Roundtable Most Valuable Project Award 20

21 Cloquet: Site Map Wood Yard Pulp Mill Recovery Boiler Paper Machines Bleach Plant Pulp Dryer St. Louis River 21

22 In Summary Sappi is: The recognized market leader in chemical cellulose The research leader in chemical cellulose production The expert in chemical cellulose use The Cloquet Mill is: A world class pulp and paper mill in an excellent location A mill with excellent flexibility in both pulp and paper areas A leader in safety, quality and environmental performance A mill with an experienced operations and leadership team A mill with a history of continuous improvement 22

23 Thank You 23