World-class lightweight coated boards with innovative technology. Per Bülund, Vice President Technology & Projects, Stora Enso

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1 World-class lightweight coated boards with innovative technology Per Bülund, Vice President Technology & Projects, Stora Enso

2 The renewable materials company our target Everything that s made with fossil-based materials today can be made from a tree tomorrow 2

3 30 countries, 26,000 stories A leading provider of renewable solutions Some 26,000 employees in 30 countries Sales in 2017: EUR 10.0 billion Shares listed on Nasdaq in Helsinki and Stockholm 3

4 Portfolio aimed at growth Consumer Board Expansion of relative market share in profitable niches Packaging Solutions Selective profitable growth Biomaterials Strengthening current business and creating new profitable growth Wood Products Accelerating growth Paper Strategy for maximum cash generation 4

5 Division Consumer Board 5

6 High quality board for premium consumer applications A broad range of solutions to fit customer demands 6

7 Consumer Board division Solutions, products and services Liquid Packaging Food Service Board General Packaging Cigarette Graphical Chocolate and confectionary Cosmetics and luxury Pharmaceuticals Food packaging Drinks, wines and spirits 7

8 Replacing non-renewables with fiber-based solutions today and tomorrow Cans, tins and glass jars for vegetables, soups, and pet food replaced by carton packaging Plastics in food service and fast food packages replaced by paperboard materials Plastic food trays replaced by fiber-based ones Fossil polymers in laminates replaced by green polymers or micro fibrillated cellulose (MFC) film In the future also PET-bottled water replaced by beverage cartons PET and glass bottles replaced by bottle-shaped beverage cartons 8

9 First cable top cartons from Natura Life by Stora Enso paperboard Retain the natural brown colour of the wood fibres and has a visible fibre structure. Genuinely different, sustainable and authentic package to meet demands of the growing trends in ethical, ecological and organic products. 9

10 Why build a greenfield mill in China? Growing Chinese board market Unique location Access to forest land Access to infrastructure Favorable economic zone State-of-the-art mill design 10

11 Beihai Mill Milestones SE announced decision to build a worldclass consumer board and pulp mill in China Three Joint Ventures set up Acquired state land use and construction permits June: NDRC approval and start of BCTMP civil works Start-up of Beihai Mill May 24: Stock on wire May 26: Board on reel Start of PE Coating Plant civil works Dec 9: BCTMP started Polyethylene (PE) coating line started June 13: Received the approval from MOFCOM and NDRC Nov 15: Kicked off mill construction * MOFCOM: Ministry of Commerce * NDRC: National Development and Reform Commission * BCTMP Bleached Chemical Thermo-Mechanical Pulp * PE: Polyethylene 11

12 12 Beihai mill will be here

13 High safety standards under challenging circumstances 18.3 Million hours worked with only one recorded LTA A maximum of 5,500 persons on site at any given time Full PPE required when entering the site Tool box meeting prior to daily work commencement 13

14 Video 14

15 Project summary Self-sufficiency in energy 85,000 hectares of sustainable eucalyptus plantations managed by Stora Enso Auxiliary facilities including power plant, fresh water treatment, effluent Treatment and necessary infrastructure Total project investment of EUR 1.6 billion, excluding working capital and existing investment + 200,000 t/a Chemi thermo mechanical pulp (CTMP) mill 450,000 t/a state-of-the-art paperboard machine 15

16 Highest point: 120m 3 gates m³ concrete tons steel Total area of site 175 ha documents contractors on site 616, 097m² of buildings m cable m piping 16

17 Stora Enso BM 1 - A world-class liquid packaging board making line Grades: LPB, FBB, SBS, cupboard Basis weight: g/m² Production speed: 1,000 m/min Reliability and stability for maximum production Linear reel first of it s kind in China Integrated automation solutions to maximize mill s profitability Width: reel / wire 6,400 mm / 7,000 mm Production: 1,833 t/d LPB 205 g/m² 1,843 t/d FBB 250 g/m² 17

18 BCTMP Plant Capacity 650 adt/d Hydraulic capacity 725 adt/d 18

19 Board mill milestones May: Beihai Mill officially started up June: Inauguration seremony August: Certifications: ISO 9001, ISO14001, OHSAS18001, FSSC22000, Food packaging certification, FSC chain-of-custody, PEFC and CFCC November: BCTMP plant inaugurated. December: 1st commercial delivery in good quality FBB product April: 1st delivery of LPB product November: design capacity 450,000 tons achieved December: the PE plant is inaugurated. Q4: EBITDA positive according to the plan March: ater resource saving company in Guangxi award June: Award of Ecocivilization in 13 th China corporate social responsibility summit

20 Beihai BM1 start-up curve Note: Design capacity exceeded within 17 months from start-up 20

21 Incidents and observations in 2018 YTD 21

22 Co-operation between Stora Enso and Valmet Board machine Great safety awareness by Valmet one LTA on SE side. Highly professional start/ramp up team pushing for mutual targets. Focused after start support agreed with Valmet. Good solutions. Strong quality and productivity support from Valmet. BCTMP One LTA with Valmet startup team. Slow actions with problem solving. Performance guarantees not yet fulfilled. Continuous cooperation and follow up. 22

23 World class manufacturing at Beihai Mill 23

24 Major products of Beihai Mill LPB, Liquid Packaging Board is made from bleached and unbleached chemical pulp and CTMP pulp. LPB is polymer coated and/or alum foillaminated for long shelf life beverages. FBB, Folding Box board, for demanding cigarette packaging applications is made of bleached chemical pulp and bleached CTMP. To achieve the high quality surface required pigment coating is applied. FSB, Food Service Board is made from bleached chemical pulp and small amount bleached CTMP (10-15%). The board is polymer-coated and used for paper cup production for hot and cold beverages and for food and non-food packaging CUK (CKB), Coated Unbleached Kraft is mainly made of unbleached chemical pulp. To achieve a white surface, it may be coated with mineral pigments, sometimes in combination with a layer of bleached fibers under this layer. Coated Unbleached Kraft Board Karneoli TM Noodle Cup Board Arctic Clam TM General Packaging Board Arctic leopard TM Cup Stock Board Sky Fall TM Cigarette Board Koppar Silk TM Liquid Packaging Board SkyGuard TM 24

25 The Stora Enso Best Team Award for Beihai in 2017 and

26 Beihai Mill today! 26