Welcome! Ulf Eliasson Senior Vice President Skoghall Boards Peter Olsson Engineering Manager Skoghall Boards 1
Stora Enso in Brief A world leader 16.5 million tonnes of paper and board 7.4 million m 3 of sawn and processed wood products Four main divisions Stora Enso Publication Paper, Stora Enso Fine Paper, Stora Enso Packaging Boards and Stora Enso Forest Products Sales EUR 14.6 billion Approximately 44 000 employees in more than 40 countries Market capitalisation EUR 9.5 billion (31 Dec 2006) Shares listed on Helsinki, Stockholm and New York stock exchanges 2
Net exports* of some product groups 2006 in Sweden *)Net exports = exports of products less imported input materials Forest industry products Cars, car parts Electronic goods, computers Other engineering products Energy goods Iron-ore, iron and steel Pharmaceutical products Other chemical products billion SEK -60-40 -20 0 20 40 60 80 100 Total exports: 1085 billions SEK Total imports: 935 billions SEK Source: Statistics Sweden 3
Electricity consumption Swedish pulp and paper industry Total consumption in Sweden 2006: 146 TWh TWh 25 20 15 10 5 The pulp and paper industry s share: 15 % 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 total consumption 4
Stora Enso Skoghall AB Skoghall Forshaga Karlstad Research Centre 5
Products made from our paperboard There are three main product groups: LPB (Liquid Packaging Board) for milk, juice and other liquids. CKB (Coated Kraft Back) for frozen foods, dry foodstuffs, general packaging WTL (White Top Liner) is the white outer layer of corrugated fibreboard. 6
Top 20 European Primary Fibre Board Machines Board Machine Capacity (ton/a) 1. Stora Enso / Skoghall BM8 410 000 2. Competitor BMA 400 000 3. Competitor BMB 345 000 4. Stora Enso / Skoghall BM7 275 000 5. Stora Enso / Imatra BM4 260 000 6. Stora Enso / Fors BM3 255 000 7. Competitor BMC 250 000 8. Stora Enso / Imatra BM5 240 000 9. Competitor BMD 215 000 10. Stora Enso / Imatra BM2 210 000 11. Stora Enso / Baienfurt BM3 210 000 12. Stora Enso / Ingerois BM4 205 000 13. Competitor BME 180 000 14. Stora Enso / Imatra BM1 175 000 15. Competitor BMF 170 000 16. Competitor BMG 165 000 17. Competitor BMH 140 000 18. Stora Enso / Fors BM2 138 000 19. Competitor BMI 130 000 20. Competitor BMJ 120 000 Source: Jaakko Pöyry & Stora Enso 7
Overview of the production process Wood CTMP Sulphate pulp Board construction Board production Recovery 8
Investments 1989-90 External treatment plant 220 200 EUR 423 milion Investments since 1988 EUR 940 million 1992 Oxygen bleaching 1995-97 KM8, CTMP plant, Bleaching plant No.3 MEUR 180 160 140 120 100 80 60 40 20 0 9 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2000 Rebuild of winder KM7 Increased pulper capacity KM7/KM8 2001 Acquisition of Tetra Pak s PE coating plant in Forshaga 2004-07 Energy 2005
Stora Enso has invested 211 M in energy and environment for the continued development of the Skoghall Mill Goals for Energy 2005 To create a basis for the continued development of paperboard production To improve energy efficiency To reduce emissions to air and water Project scope Recovery boiler Evaporation plant CTMP evaporation plant Malodorous gas system Tall oil plant Rebuild of steam system and turbines Control room ------------------------------------------- Conversion of the oil boiler into a biofuel boiler Fuel-handling system 10
Energy 2005 improves energy efficiency The more efficient use of energy and the increased use of bio fuel will reduce oil consumption by 60 000 m 3 /a. The share of biofuels of Skoghalls fuel mix is expected to increase to 93 % in 2007. The degree of self-sufficiency in electrical power will increase from 15% to 35%, which is the equivalent to the production of 400 000 MWh/a The Skoghall Mill is now one of the biggest producers of electrical power in region. 11
Fossil CO 2, biofuels and energy consumption at Skoghall Mill 400 kg/t Fossile CO 2 emissions 100% Share of biofuels in fuel mix 300 80% 200 100 60% 40% 20% 0 2001 2002 2003 2004 2005 2006 E2007 0% 2001 2002 2003 2004 2005 2006 E2007 11,0 GJ/t Heat consumption kwh/t 1 800 Power consumption 10,0 9,0 8,0 2001 2002 2003 2004 2005 2006 E2007 1 600 1 400 1 200 1 000 800 2001 2002 2003 2004 2005 2006 E2007 Own prod. From grid 12
Energy 2005 a contribution to reduced climate impact Energy 2005 makes a considerable contribution to reducing fossil carbon dioxide emissions The change has an impact on a global climate context, where it is a large single contribution ton CO 2 /a 300 000 250 000 200 000 150 000 100 000 50 000 Emissions of fossil CO 2-75 % The reduction corresponds to the emissions from cars in this region, where 100 000 persons lives 0 Skoghall Mill 2004 Skoghall Mill est 2007 13
Timetable Investment decision made 11 Dec. 2003 Feasibility study Purchasing process Planning The new recovery boiler and evaporation plant were brought into operation in September 2005. The converted biofuel boiler will be brought into operation in the summer of 2006. Environmental process Recovery boiler and evaporation plant Conversion of oil boiler into a biofuel boiler 2002 2003 2004 2005 2006 14
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Start up of the recovery area in autumn 2005 was a success Evaporation plant The plant was started at a stop in the pulp mill. After 6 hours liquor was delivered. Very good operational economy. Recovery boiler Flying start up. Pulp was produced during the start up. Board machines produced 2600 tonnes during start up day, which was a production record. More steam production than before resulting in a decreased oil consumption of 85 m 3 /d. 16
Start up of fuel handling and bio fuel boiler in summer 2006 was also a success! Fuel handling Good mix of different fuel types High availability Bio fuel boiler Good load regulation performance with bio fuel Good start up and high availability Emissions in level with expected 17
Energy2005 - when energy and environment dances together 18
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Wood and fibers Wood chips Back 21
CTMP mill (mechanical pulp) (CTMP=Chemi Thermo Mechanical Pulp) Mechanical separtion of fibers in big refiners. The process gives 90-95 % wood yield, but has a very high electrical power consumption. CTMP fibers provides bulk and by that stiffness in the board. Capacity 250 000 t.p.a. Back 22
Sulphate pulp mill (chemical pulp) Chemical separation of fibers in the pulping process (cooking). The process gives 50 % wood yield, but chemicals and energy are recovered. The total strength of the fibers can be used in the board. Capacity 330 000 t.p.a. Back 23
Chemical and energy recovery Back The recovery area in a sulphate pulp mill is a producer of energy as well as being a chemical plant for recovering cooking chemicals. 24
Liquid Packaging Board a high tech product! Produced in several plies Clay coating layers (1 to 3) Top ply Bleached sulphate pulp, softwood and hardwood Center plies Mainly CTMP Reverse ply Softwood sulphate pulp Bleached or unbleached Back 25
KM8 Basic facts Start-up year 1996 Length 298 m Width 8,1 m Annual capacity 410 000 tn Coating 3 stage Grammage 135-390 g/m2 Back 26