Stora Enso Wood Supply Finland

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1 Stora Enso Wood Supply Finland 2017

2 Stora Enso Towards renewable materials company Stora Enso s business strategy is to transform from a traditional paper and board producer to a customer focused renewable materials growth company. Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. 2

3 The Forest is a Source of Renewable Raw Materials In future there will be more and more demand for renewable raw materials. Therefore the demand of wood increases and forests will obtain their value. Stora Enso aims to replace nonrenewable raw materials with wood. The northern forests are very important to Stora Enso now and in the future. Finnish forest owners can be proud of their forests forests provide well-being for both their owners as well as the entire world. 3

4 Stora Enso in a Nutshell Divisions 4 Our purpose Do good for the people and the planet Our values Lead Do what s right

5 Stora Enso Wood Supply Finland in a Nutshell Stora Enso Wood Supply Finland delivers wood to Stora Enso s Finnish pulp and paper mills as well as to the company s sawmills. In addition we provide bioenergy to heating and power plants. We procure most of our wood from Finnish forest owners. We deliver wood from forest to internal and external mills about 23 million m 3 annually. We offer services and tools for easier and more effective forest ownership. 5

6 Wood Supply Finland Organization Senior Vice President Janne Partanen Purchasing and Forest owner customer relations Purchasing Manager Esa Ojala Sustainability Head of Sustainability Pekka Kallio-Mannila Support Services Resource Manager Sami Honkanen Communications Communications Manager Satu Härkönen * Finance Business Controller Tommi Hiltunen Fox project Development Manager Olli-Pekka Ahonen Operations Supply Manager Jari Mutanen * Head of Communications Finnish media relations Forest Fuels Forest Fuel Manager Jorma Kaukoaho Eastern Finland Regional Manager Riku Koskinen Southern Finland Regional Manager Jussi Lemmetty Northern Finland Regional Manager Antti Partanen Terminals Transport Centre Purchasing Teams (12) Purchasing Team Purchasing Team Purchasing Team Purchasing Team Purchasing Team Purchasing Team Purchasing Team Purchasing Team Management Team 6

7 Wood Supply Finland Key Facts 2016 Personnel 560 Harvest, transport and forest service entrepreneurs as contractors 110 Supply chains 345 Timber trucks 230 Total Wood Procurement 23 million m 3 (with bark) Net Sales 1074 million euros Procurement Regions 3 Northern Finland Eastern Finland Southern Finland 7

8 Wood Procurement Process Timber sales contract Timber sales negotiation Harvesting Marketing and communication Transportation Final payment to the forest owner and after sales marketing Forest management 8

9 Wood Procurement million m 3 (with bark) Chip and sawdust 10% Tornator 10% Metsähallitus 7% Private forests 39% Other companies 18% Imports 16% 9

10 Wood Supply Finland Deliveries in 2016 Other pulp and paper mills Other sawmills 5% 8% External plywood mills 1% Stora Enso Wood Products 10% Stora Enso's pulp and paper mills 76% All wood procured in Finland is delivered to Finnish pulp and paper mills and sawmills. Pulpmills, papermills, boardmills Sawmills 10

11 Wood is a Renewable Raw Material It always grows back Wood based products bind carbon. Growing forests bind carbon dioxide. Recyclable material 11

12 The World s most Versatile Natural Resource ~50 m cardboard cups copying paper sheets 80 MWh logging waste, which can heat a town house for 3 years 150 m 2 CLT wall 12

13 Wood is a Renewable Source of Energy Electricity Bioethanol Pyrolysis Oil Stumps Bark and sawdust Small-dimensional wood Logging waste Fuel Heat The energy used by Stora Enso mills in Finland is 70% from wood-based material. 13

14 Status of Certification ISO 9001 Quality Management System ISO Environmental Management System ISO Energy Management System OHSAS Occupational Health and Safety ISO Energy Management Standard 90% of Finnish forests are covered by PEFC Stora Enso also supports FSC certification in Finland and improves its FSC-competence. FSC group certification hosted by Stora Enso helps private forest owners to certify their forests. National Finnish FSC standard was introduced in 1st May Wood Supply Finland obtained a certificate for its FSC group scheme for private forest owners in Chain-of-Custody covers all wood sources from forests to mills Both PEFC and FSC CoC certificates 14

15 Terminal operations Terminal operations are responsible for raw materials regarding mill receiving, measurement, storage and feeding into the process as well as operational customer co-operation. Customer Service Managers keep in touch with their assigned mills every day, making sure that everything in wood supply goes as planned. Veitsiluoto Oulu Varkaus Enocell Imatra Heinola Anjala Sunila 15

16 Thank you!