Innovation in Quality Control: New Tools for Management Improvement at Forestry Companies Prepared for

Innovation in Quality Control: New Tools for Management Improvement at Forestry Companies Prepared for NINTH International Woodfiber Resource and Trade Conference February 15, 2017 Furama Resort, Da Nang, Vietnam

Our Company 3 Innovations to Share Our Invitation Contact Us www.

Our Company Governments, NGOs, companies and individuals that will improve world s future are those that considers ethics, efficiency, knowledge, balance and sustainability as the basis for achieving progress and overall success. Our company s goal is, every day, be the best partner of them to accomplish these goals. www.

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Services Along the Supply Chain at the Forestry Industry

Operations in South America Certification and Consultancies in multiple countries in Latin America, Europe and Asia HQ: Chile San Antonio Santiago. Arauco Coronel Concepción Talcahuano Los Ángeles Valdivia Corral Uruguay Montevideo Fray Bentos. Colonia. Argentina Necoechea Puerto Varas Puerto Montt Calbuco

Some Figures More Than: 285 million tons controlled since 1986. 2.400 Shipments of Wood Chips certified. 23 Million Tons of Pulp Wood and Biomass involved during year 2016.

Some of Our Customers Energy, Pulp and Paper Forestry, Biomass and Pulpwood Others Companies, NGO and Government Organizations

Recognition

Some Innovations to Share Knowing the Difference, Makes the Difference www.

www. 1st. Total Control in BDMT

I. Total Control in BDMT : Real Fiber Measurement Why BDMT? Original Condition Extreme Conditions

I. Total Control in BDMT : Real Fiber Measurement Why BDMT? Extreme Conditions Same Fiber (BDMT) experiments variations: A. Solid Volume: 4%-12% Operative Conditions 20%-24% (Extreme) B. Weight: 10%-20% Operative Conditions 40%-45% (Extreme) Solid Volume (Specially Eucalyptus) Not the best unit to measure Fiber or energy. Affecting determination of: Costs, Traceability, Stocks, Consumption, among others.

I. Total Control in BDMT : Real Fiber Measurement 1.Compaction by Pressure 2. Compaction by Vibration Apparent Volume: Not a reliable unit to measure fiber or energy. Variations Up to 30%-40% in apparent volume depending on the type of Biomass or Wood Chip and its store or transport conditions.

I. BDMT MEASUREMENT THROUGH THE COMPLETE PROCESS 1. Log s Reception 2. Log s Stock 3. Chipping Process 4. Woodchip Reception 5. Woodchip s Stock 6. Final Consumer Shipment Pulp Mill Power Plant. Others

I. BDMT MEASUREMENT THROUGH THE COMPLETE PROCESS A B 1 2 3 MASS FLOW CONTROL: Precision References Point 1 (Log Reception): About 0,35% to 1,2% per month. Over 3 Months 0% Point 2 Chipping: About 0,25% to 0,65% per month. Over 3 Months 0% Point 3:Shipment: +/-0,3%-0,5% per shipment. STOCK CHECKING (A & B) Under 8% per pile Under +/- 4% for a wood yard (More than 5 piles) (Low Over the total Flow controlled)

II. Improving Accuracy of Stock Determination in BDMT Apparent Volume: One Necessary Step.

A. Stock Measurement of Logs in SCM; BDMT and MWh 1. Apparent Volume Measurement. 2. Average Solid Factor % 3. Sampling 4. Laboratory Tests (Dry Solid Density) 5. Determination of BDMT (MWh; SCM, others)

B.Stock Measurement of Woodchips and Biomass in SCM; BDMT and MWh 1.Apparent Volume Measurement. 2. Sampling 3. Laboratory Tests (Compaction Curve; Dry Content, Others) 4. Average Pressure and Bulk Density Calculation (JOS Software) 5. Determination of BDMT (MWh; SCM, others)

2nd: Data + Management Improvement

Example I: Chipping Biomass at the Forest: Focus on Total Ash and Biomass Quality 1. Quality of Biomass, Collecting Equipment and Chipping Process 2.Biomass Total Costs, Efficiency During Generation and Boiler Maintenance Costs

Example I: Chipping Biomass at the Forest: Focus on Total Ash and Biomass Quality 1. Instantaneous Control and Report at the Forest 2. Analysis trough Traditional Methods Over 85%!

Example I: Chipping Biomass at the Forest: Focus on Total Ash and Biomass Quality Variables Results 1. Type of Biomass 2. Season 3. Post Harvest Time Action Measure Biomass Costs (Collecting/Transportation/ BDMT at the Power Plant) Quality of Biomass 4. Chipping Equipment Maintenance Costs 5. Harvesting Equipment 6. Service Company Data Analysis Relation Fuel/Heat & Power. Boiler Efficiency 7. Field Conditions (Soil Type, inclination, others) Others

Example II: Pulp Production: Wood Quality Variables and Results Variables 1,Dry Content % 2,Size Distribution 3. Basic Density 4. Bark and Rot 5. Decayment 6. Contaminants Consumption of Wood BDMT/ADt Results Chemical Consumption (Kg/Adt) Energy Consumption Water Consumption 7. Others Productivity Maintenance Costs

3rd. Tailor Made Management Systems and Audit

Tailor Made Management Systems and Audit 1. Customer Requirement 2. Procedures and KPI Definitions 3. Training and Implementation 4. Continuos Audit and KPI Monitoring

Management Systems and Audit

www. Our Invitation

Our Invitation In order to continue developing Pulp & Paper and Biomass Industry, based on Reliability, Shared Value and Sustainability along the Supply Chain, we invite you to share with us your needs and to work together.