1

KIILTO OY SOCIAL RESPONSIBILITY

REPORTActual environmental and safety impacts 2000-2002

and objectives for 2003-2005

22

The past three years have been a period of continuous development and many changes at Kiilto and in the world in general. Environ-mental legislation has become more specifi c, product life spans have shortened, and technical solutions have improved. It is there-fore appropriate that the Kiilto environmental and safety report

has evolved into the social responsibility report you are now reading.However, three years is a short time in the history of an 80-year-old fam-

ily company. Change is no stranger to us. Social responsibility has been a fundamental component of our business all along, albeit with differing re-quirements, knowledge and skills. We have sought to fulfi l our environmen-tal obligations and to shoulder our social and economic responsibility to the best of our ability.

This needs the right kind of shoulders, people who can carry both power and responsibility; without the staff of Kiilto, this report would never have been written. Being a Kiilto employee involves substantial resources in terms of expertise and commitment, and a development potential that translates at its best into a unique team effort. It is more than just a cliché to describe our staff as the most important resources contributing to our success.

I am convinced that the importance of human factors will continue to grow as a counterbalance against continuing electronic development. By extension, human interaction will gain a wholly different role in the near future. We have sought to identify and exploit ordinary everyday interac-tion skills in our organization, and having seen the results we have committed ourselves to continue these efforts; we are convinced we are going in the right direction. We will be challenging our customers, our suppliers and all our interest groups in this respect. Open and frank discussion is the only way towards continuous improvement.

We hope that this social responsibility report will lead to a fruitful interaction with you specifi cally.

Erkki SoljaManaging DirectorKiilto Oy

RESPONSIBILITY AND INTERACTION

33

■ SCOPE OF THIS REPORTThe Kiilto Oy social responsibility report is limited to the environmental, safety, economic and social aspects of the parent company and the impacts it causes. The report does not contain information on subsidiaries or group companies. The indicators quoted come from Kiilto’s own ISO 9001 certifi ed quality system and management process documentation system. The report covers the years 2000-2002 and objectives for the years 2003-2005. The next report, to be published in March 2006, will focus on the years 2003-2005.

The report discusses management of social responsibility at Kiilto. Due to the company’s line of business and previous practices, this report focuses especially on environmental and safety impacts.

Responsibility and interaction ........................................ 2Contents ............................................................................. 3Kiilto Oy .............................................................................. 4The way we work .............................................................. 7Environmental and safety aspects.................................11 Achievements and new goals and objectives ......................................14Economic aspects and impacts ....................................19Social aspects and impacts ............................................21Further information and feedback ..............................31Contact information ......................................................32

CONTENTS

Cover photo: Taisto Tattari, a fi tter in the repair shop.

4

Kiilto Oy is Finnish family company in the chemical industry, founded in 1919. The company develops, manufactures and markets adhesives and related products. The head offi ce and fac-tory are located in Lempäälä, 10 km south of Tampere. Kiilto’s business idea is total adhesive expertise, providing comprehensive

solutions to customers’ material bonding problems. This involves not only adhe-sives as such but also related stages in the work process such as priming, water-proofi ng, sealing, fi nishing, protection and care.

The Kiilto product range includes adhesives, varnishes for parquet fl ooring, levelling compounds, waterproofi ng membranes, mortars for fi xing and jointing ceramic tiles, grouts, thinners and casting resins. Cleaning agents and surface care products were transferred to a subsidiary, KiiltoClean Oy, in 2003. Com-plementary items in the product range include edgings for the furniture industry and skirting and beading for the construction industry.

Besides the products themselves — the best suited for customer needs, easy to use, safe and economical — Kiilto also provides support services: information, technical support and training. Kiilto caters to the building products industry, woodworking and furniture manufacturing, the paper and packaging industry, the footwear industry, foundries and, as users of products transferred to Kiilto-Clean Oy in 2003, the professional cleaning sector and private consumers.

Over 98 per cent of the product range is the result of in-house product devel-opment, an important focus for investment throughout the company’s history. Product development is based on customer wishes, application requirements, manufacturing technologies, work methods and materials, and environmental and safety aspects.

Kiilto is customer-oriented and is prepared to deliver the product when the customer needs it. This is made possible by a broad network of contacts, prod-uct warehouses in central locations, and sales offi ces and subsidiaries in Sweden, Russia, Poland and Estonia.

Kiilto Oy is the parent company in a group that includes production compa-nies active in other sectors — Kiiltoplast Oy, Intermedius Oy, Metalpak Oy and, the most recent addition founded in January 2003, KiiltoClean Oy. ■

■ KIILTO FACTORY AND PRODUCTION• plot 17 hectares• total building fl oor area 31,500 sq.m.• production use: - 500 raw materials - 200 packagings - 1,000 printed products• 550 raw material and packaging suppliers• production lines: - adhesives and varnishes - hot melt adhesives - powder products - casting resins - raw materials (polymer manufacturing)• product output 40,000 metric

tonnes per year• 5,000 wholesale customers

KIILTO OY

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PARENT COMPANY

Company Location Founded Staff in 2002 Turnover in Business 2002 (EUR 1,000)Kiilto Oy Lempäälä 1919 217 45,051 Adhesives, varnishes, levelling compounds, mortars, adhesive compounds, waterproofi ng, thinners, casting resins*

REGIONAL WAREHOUSES AND SALES OFFICES MARKETING COMPANIES ABROAD

Location Founded Staff in Company Location Founded Staff in 2002 2002Vantaa 1982 11 Kiilto Ab Sweden, Täby 1987 13Oulu 1984 6 ZAO Kiilto-Klei Russia, St Petersburg 1995 16Turku 1985 5 OOO Kiilto-Klei M Russia, Moscow 2000 5Kuopio 1989 6 Kiilto Polska Sp.z o.o Poland, Warsaw 1997 4Seinäjoki 1995 6 Oü Kiilto Eesti Estonia, Tallinn 1999 7

Rauma tank storagefor raw materials 1982 –

OTHER PRODUCTION COMPANIES

Company Location Founded Staff in 2002 Turnover in Business 2002 (EUR 1,000)Kiiltoplast Oy Virrat 1975 40 4,186 Plastic-coated papers and boards for the graphics industry, rainwear and protective clothing, plastic-coated textilesMetalpak Oy Lempäälä and Lieto 1986 52 12,313 Metal and plastic packagingsIntermedius Oy Tampere 1992 12 2,280 Accessories for the footwear and textile industries

■ Kiilto’s newest subsidiary, KiiltoClean Oy, opened for business on January 2, 2003. The company has its factory in Hankasalmi, its head offi ce in Lempäälä, and sales offi ces in Vantaa, Oulu, Turku, Kuopio and Seinäjoki. The company’s business consists of cleaning agents and surface care products, and cleaning equipment and tools.

*Cleaning agents, surface care products and household products previously manufactured by Kiilto Oy were transferred to KiiltoClean Oy.

■ The parent company (Kiilto Oy) has a separate commercial sales company in Finland in addition to the foreign marketing companies. The group also includes real estate and investment companies in addition to the domestic production companies listed above.

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■ Kiilto Oy business idea

Kiilto vision“Our vision is to manufacture and sell products profi tably in 2080, aiming at regional market leadership.”

The Kiilto vision spans a period from history far into the future. The aim of the company is to achieve and maintain market leadership and development leadership both in the sector and in terms of market area. Geographically, this involves Finland and the Baltic Sea area. The vision is linked to two principles embraced in the company: “We never lie” and the “Own purse policy”. Reli-ability, effi ciency and long-term continuity characterize not only Kiilto’s customer relationships but its in-house policy too.

FURTHER INFORMATION:Jarmo Päivä, works manager and quality managerjarmo.paiva@kiilto.com

* Kontakti is the Kiilto customer newsletter.

THE WAY WE WORK

■ QUALITY, ENVIRONMENT AND SAFETY POLICYThe Kiilto Oy business idea involves contin-uous development of total business quality, aiming at quality leadership. Total quality includes not only the product but also all the functions and services related to our products, customers or any other internal or external operations. Taking environmen-tal, health and safety aspects into account is an inseparable component in total quality. Maintaining and developing total quality is the task and duty of everyone at Kiilto.

Responsibility for results is everybody’s business. Taking quality into account in one’s work creates responsibility. Co-

operation between staff groups brings results. By improving working methods we can make it easier and quicker to get results.

Lauri Tahvanainen, head shop steward

at Kiilto 1987-2002 (Kontakti 2000)*

The core of the Kiilto business idea, dominant expertise in our sector and development leadership, underlies the purpose and objective of our business. Strategic success factors (in boxes in the fi gure below) outline the chosen business practice that aims at and supports these. The framework for this, essential for realizing the business idea,

consists of successful management of human resources, environment, safety and quality and linking these to the strategic success factors.

Kii lto people

Q

uality Safety Environment

Product developmentInnovation capacity

Strong marketing

Rapid deliveriesDelivery capacity

Dominant expertise

in the sectorDevelopment

leadership

Comprehensive supplier

Complementary articles

Technical guidanceCustomer training

Market leadership

Entrepreneurship

Financial solidity

Rapid reaction to market needs

In-house raw material production (polymer

manufacturing)

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Key objectivesKiilto Oy has defi ned three company-wide quantitative key objectives which will also apply to the period 2003-2005. By observing its business principles and achieving its key objectives, Kiilto will secure its business base and ensure contin-ued development. A profi table company can respond to the expectations of its in-terest groups, safeguard its future through a suffi cient research and development investment, renew its production and train its staff.

Organization and management practiceOperative management at Kiilto is organized into functional units known as departments. A strong customer-oriented approach is evident in that the manage-ment group includes the heads of all marketing departments.

The division into marketing departments is based on customer segmentation. Product development human resources are also divided so that each marketing department has its own product development team with research assistants and technical consultants for the customer needs of that particular department. Pro-duction, material functions and fi nancial management constitute separate depart-ments.

Organization and management practice is constantly being evaluated and de-veloped for instance on the basis of satisfaction surveys and self-assessments.

Integrated quality, environmental and safety systemTotal quality, where every phase and component of the work process infl uences the end result, the quality produced and the image perceived by the customer, is the key concept in Kiilto’s business.

The achievement of total quality at Kiilto is monitored through a quality system. The Kiilto quality system received ISO 9001 certifi cation in 1993. It covers product development, man-ufacturing, marketing, distribution, customer service, storage and materials functions. The quality system describes Kiilto’s

practices at the company, department and work phase level. It places obligations not only on the entire staff but on raw material suppliers and sub-contractors too.

The quality system incorporates systematic awareness and management of environmental and safety aspects. The quality system includes an environmental system conforming to ISO 14001, a safety system conforming to BS 8800, an application of European quality award criteria of the European Foundation for Quality Management (EFQM), and the principles of Responsible Care, the envi-ronmental, health and safety programme of the chemical industry.

Responsible CareResponsible Care (hereinafter RC) is the chemical industry’s international envi-ronmental, health and safety programme which aims at business conforming to

social and ecological sustainable development. The programme is being run in over 40 countries. It was introduced in Finland under the title ‘Vastuu Huomisesta’ (Responsibility for tomor-row) in 1992. Kiilto was the fi rst company in Finland to incor-porate the programme in its certifi ed quality system.

RC involves components such as process safety, product safety, transport safety, waste safety and occupational health and safety. An important component in it is indicator monitor-

ing within the company, at the national level and at the international level. RC work at Kiilto is guided by fi ve in-house expert working groups focusing on the areas outlined above. At the national level, the programme is run by the Chemical Industry Federation of Finland. ■

Jarmo Päivä, works manager and quality manager:

Change auditing to come in spring 2003

“We are constantly developing our quality system. At the moment, we are working with the revised ISO 9001:2000 standard, which is based on the process

thinking model. The standard provides a transition period for companies until the end of 2003. Change auditing at Kiilto will be carried out in April 2003. The revised standard focuses on process management and customer satisfaction as indicators of perform-ance in quality management.”

■ KEY OBJECTIVES

• Profi tability: operating margin ...> 25%• Solvency ratio ...............................> 60%• Liquidity (quick ratio)..................> 1.0

■ TOTAL QUALITY EQUALS RESPONSIBILITY• for complete control over business• for regularly fulfi lling customer requirements• for continued development

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■ ELEMENTS IN THE INTEGRATED QUALITY, ENVIRONMENT AND SAFETY SYSTEM AT KIILTO

(1) Indicator monitoringPerformance levels in environmental, health and safety matters are monitored through 17 internal indicators. Appoint-ed persons report the monitoring data to the works manager or process offi c-ers. The indicators are determined and the goals set by the person responsible for the process or function in question, by the management group and/or by the RC groups.

Indicators:• fi res• leaks and emissions (into the air, soil or sewage system)• internal leaks• vessel spillage or breakage• transport accidents• break-ins• technical alerts• suspected work-related illnesses and sick leave due to same• personal injury• sick leave• environmental complaints• safety-related product improvement• use of solvents in production• non-reusable waste• recycled waste• electricity consumption• nonconformity reports

(2) Risk assessmentIdentifying the dangers inherent in Kiilto production and assessing and managing the risks thereby caused are discussed in Kiilto’s in-house safety report. The review for this report is conducted once every three years. The review is the responsibility of the environmental and safety group.

(3) Management reviewsIndicator trends, business quality and audit results are reviewed by the management at quarterly quality, envi-ronmental and safety reviews.

(4) OrganizationsIn practice, the job description and duties of every employee at Kiilto includes taking the environment and safety aspects into account. The deputy managing director is the environmental and safety offi cer at Kiilto. The works manager (who is also the quality manager) reports on performance and development needs in environmental and safety matters at the management reviews. Offi cers have been appointed for special duties required by law and regulations. There are also special expert groups to guide and develop the company’s business:

• The environmental and safety group supervises how well the systems conform to standards, monitors aspects, impacts and risk assessment to ensure they are up-to-date, checks that training and pub-licity are suffi cient, and whether the content of the social responsibility report needs to be updated.• Five RC expert groups in specifi c areas coordinate activities (audits, reviews, development projects).• An in-house expert group with members from different functions and processes performs a self-as-sessment of environmental, health and safety matters on the basis of the quality award criteria once every three years.

(5) Training and publicityThe Kiilto quality system provides for training needs assessment and train-ing organization. Furthermore, the environmental and safety group, the RC groups and the self-assessment groups are required to identify training needs related to environmental and safety mat-ters and to organize training projects. In-house publicity, job training and work on development projects also forms part of environmental and safety training.

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• Quality, environmental and safety policy

• Quality system directives

• Indicator monitoring (1)

• Audits

• Self-assessments

• Risk assessment (2)

• Identifying environmental and safety aspects

• Assessment and control of impacts

• Management reviews (3)

• Environmental and safety goals and objectives

• Environmental and safety programmes

• Organizations (4)

• Legislation and regulation monitoring

• Training and publicity (5) CO

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The chemical industry manufactures and handles substances that involve environmental and safety impacts. Kiilto is committed to minimizing these impacts in its business.

Taking environmental and safety aspects into account is taking responsibility for the welfare of present and future generations. It

is also a matter of risk management and safeguarding delivery capacity and com-petitiveness.

Kiilto production lines operate on the closed process principle: everything that goes into the manufacturing reactor is packaged into product containers after the process. There are no by-products. Advanced automation of material handling minimizes staff exposure to harmful substances.

Waste is generated mainly through the washing of production equipment and transport vessels. A recycling obligation is in place for all washing, raw material and product waste. Waste generated from solvent-based or otherwise harmful products, raw materials and washings are classifi ed, labelled and delivered to a hazardous waste disposal plant. Waste processing and leak prevention exercises are provided for in the quality system.

Chemicals that are fl ammable or harmful to health or the environment can cause risks in production. There is a danger assessment, safety report and protec-tion plan for the factory; this is checked and updated actively. Employees have access to danger classifi cation data, protective equipment requirements and user safety notices on every chemical used. Risks are managed through continuous monitoring and staff training.

The fi re prevention and extinguishing systems and safety appliances have been designed in cooperation with the relevant authorities. The functioning of the system is monitored through regular inspections and annual drills. Kiilto has a factory fi re response team and a fi rst aid team. The quality system contains pro-cedures for accident situations; these procedures have been communicated to the authorities, too.

FURTHER INFORMATION:Antti Nieminen, deputy managing director, environmental and safety offi cerantti.nieminen@kiilto.com

ENVIRONMENTAL AND SAFETY ASPECTS

■ ENVIRONMENTAL AND SAFETY RESPONSIBILITY AT KIILTO MEANS• protection of water, air and soil• effi cient and sparing use of natural resources• safety of products, materials and equipment• safety of work• general safety

Reino Kuusela, HazMat counsellor and warehouse manager

Zero tolerance holds“In transporta-tion, special at-tention is paid to hazardous material trans-ports. Our goal is not to have a single accident. So far, the ‘zero tolerance’ in

HazMat transports has held. Everyone involved in the transport or storage of hazardous materials is required to undergo special training. Such training was last organized at Kiilto in December 2001, involving not only transport and warehouse staff but also export and purchasing staff. In addi-tion, product warehouse staff were given training on recent changes in November-December 2002.”

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Product development is based on the welfare of both environment and userKiilto invests in progressive product design with an environmental and safety fo-cus, because it is through its products that the company can best infl uence future environmental developments. Product development is based on the life-cycle prin-ciple; environmental, health and safety impacts are taken into account through-out the production chain, including selection of raw materials and packagings, product manufacturing, storage and transport, and information, guidance and training for the use of the products and for waste disposal. Kiilto also requires its suppliers to commit to quality, environmental and safety matters.

Following the principles of sustainable development, Kiilto constantly seeks to develop new products that have a lesser impact on the environment to replace old ones. In research on alternative raw materials, Kiilto has been a pioneer in the introduction of water-based products in Scandinavia; for instance, Kiilto intro-duced the fi rst completely solvent-free fl oor and wall adhesive in 1995.

Kiilto has discontinued production and marketing of acid-cured parquet lac-quers and replaced them with safer alternative products with equal properties. Kiilto is fi rmly committed to water-based varnishes, which are recommended for occupational health reasons, environmental protection, clean internal air require-ments and international trends.

Kiilto has also developed water-based alternative products for upholstering and foil fi nishing in the furniture industry.

The new Kiilto indoor and outdoor adhesive compounds were created using the latest MS polymer technology, which gives excellent resistance to sunlight and improves surface adhesion. These compounds are also environmentally friendly, since they contain no solvents or isocyanates.

Recyclability is favoured in selecting packagings. Kiilto was the fi rst manufac-turer in Scandinavia to adopt recyclable packagings in consumer adhesives. Kiilto is involved in a packaging material recycling system by agreement with the Envi-ronmental Register of Packaging (PYR Oy).

The newest area of research at Kiilto involves development of renewable polymers and reactive adhesives. Reactive adhesives can be used for instance to replace welds and bolted joints in the automobile industry.

Fifteen per cent of Kiilto staff are employed in product development at the

It is in the interests of both var-nish manufacturers and fi tters to know exactly what the varnishes are like to work with, what the

drying times are and what the end result is like. I am fi rmly committed to water-based varnishes.

Markku Harju, parquet-fl oor fi tter,

Tampereen Pinta-Asennus Oy (Kontakti 2001)

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Mikko Viljanmaa, research and development manager

Biodegradability is coming soon

“Biodegradable adhesives made from renew-able natural resources are the latest thing in adhesive technology. The packaging industry in particular is in-

terested in adhesives that are intended to degrade biologically at a specifi c point in the life cycle of the packaging material — in recycling or when com-posted. As far as we know, there are no biodegradable hot-melt adhesives being produced anywhere. Kiilto is at the international cutting edge in their development. My doctoral dis-sertation, for instance, was entitled Lactic Acid Based Hot Melt Adhesives: Preparation and Properties.”

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■ ENVIRONMENTAL AND SAFETY ASPECTS AND IMPACTS

Functions• raw materials and package manufacturing• product manufacturing• product use• product waste disposal

Aspects• waste• emissions• energy use• water use• transport

Impacts• accidents - fi res - leaks• personal injury - accidents - exposure• water pollution - impurities in washing water - leaks• air pollution - VOC emissions - smoke and decay gases - vehicle exhaust - other emissions• landfi ll deposits - waste delivery to landfi lls

■ CONTROLLING IMPACTSIntegrated quality, environmental and safety system• safety study, danger assessment and in-house protection plan• environmental and safety directives in the system• reporting of nonconforming situations• indicator monitoring• reviews and audits• internal organizations

Technical solutions• closed manufacturing processes• automatic dosing systems• monitoring and alarm systems• using process energy and cooling water• fi re extinguisher systems• settling basins for industrial waste water• storage in large tanks • dust extraction and other work hygiene systems• danger classifi cation of raw materials and products in information systems• concentration measurements

Life-cycle concept in product and packaging design

Self-assessment of safety

Occupational health care

Environmental and safety training for staff and customers

Publicity and public opinion

company’s own research centre. Substantial investments are made in research staff training to keep their expertise at a high level; every year at least one employee in product development undertakes advanced studies alongside their work.

Mika Lahtinen, head of structural adhesive product development at Kiilto Oy, had his doctoral dissertation examined at Tampere University of Technology in 2002. The dissertation (Aqueous Polyurethane Dispersions: Preparation, Charac-terisation and Properties) produced signifi cant new knowledge for the production of water-based adhesives and varnishes.

The fi rst ‘glue doctor’ at Kiilto was Antti Nieminen, now the deputy manag-ing director. His doctoral dissertation (NMR Imaging of Adhesives and Adhesive Joints) was examined at the University of Oulu in 1990.

Included in strategies and decision-makingEnvironmental and safety aspects, and impact assessment, are systematically in-cluded in the preparation of Kiilto annual strategies and in planning investments and other business reforms. The requirement for this is incorporated throughout the quality system, for example, in product development job descriptions, equip-ment purchasing directives and central process descriptions. ■

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Initial level 1999 .........................c. 2Target by 2002................ < 1.6Actual 2000 ......................... 1.7 2001 ......................... 1.4 2002 ......................... 1.8New target by 2005................ < 1.8

(% of output per year)

Initial level 1999 ........................ 262No quantifi ed targetActual 2000 ........................ 259 2001 ........................ 293 2002 ........................ 323

■ The increase in the sales of windscreen cleaning fl uid, produced as a sub-contracted product, contributed to the increase of solvent use in 2002. Although all other cleaning agents and surface care products were transferred to the subsidiary KiiltoClean Oy at the beginning of 2003, windscreen cleaning fl uid was retained in the product range of Kiilto Oy, and this affects the new target. Kiilto has been aiming to minimize the share of solvent-based adhesives and varnishes in overall sales for two decades now; this share was 2% in 2000 and had dropped to 1.7% in 2002.

■ With new applications, the markets and demand for polyurethane-based structural adhesives have grown substantially, turning the development trend away from what was anticipated at the time of target-setting. By contrast, the isocyanate-free MS-polymer-based adhesive compounds introduced by Kiilto in 2001 as replacements for polyurethane-based adhesive compounds have had a marked impact. Product development will be extended from adhesive compounds to adhesives.

■ The targets set did not wholly match production development with customers. In the parquet fl ooring industry in particular, changing the type of adhesive used requires extensive investments in new equipment.

4. Creating a packaging strategyKiilto has a ‘Future packages’ working group whose duty is to come up with more environmentally friendly solutions for packing, to bring logistical thinking into the packaging selection process and to develop the company packaging strategy. Packages should project a coherent Kiilto corporate image which takes environmental aspects into account. The project is continuing.

Parquet fl ooring industry:

Initial level 1999 ........................ 200Target by 2002......... over 600Actual 2000 ........................ 235 2001 ........................ 212 2002 ........................ 305

■ The environmental and safety goals for Kiilto Oy are set at the company level for a three-year period. The more specifi c objectives supporting these goals may feature individual functions or a shorter period of time. The objectives themselves and the programmes, projects, measurements and monitoring related to them are contained in annual strategies, process work, management reviews and development projects.

The following is a discussion of the achievement of objectives set in 1999 during the years 2000-2002, followed by new objectives for the years 2003-2005.

1. Reduction of solvent use in the manufacturing of varnishes, adhesives and cleaning agents

2. Reduction of use of isocyanates in adhesive compounds and adhesives

(tn)

3. Replacement of ureaformaldehyde resins with reactive PVAC dispersions

(tn) Other use:

Initial level 1999 ........................ 300Target by 2002......... over 500Actual 2000 ........................ 339 2001 ........................ 356 2002 ........................ 515

(tn)

NEW TARGETS FOR 2003-20051. To increase sales of water-based contact adhesives

Initial level 2002 ........................150Target by 2005 ..................200

2. To increase sales of MS polymer based products

Initial level 2002 ..........................60Target by 2005 ...................120

3. To increase sales of M1 classifi ed products

Initial level 2002 ........................ 25 products, 18% of total product salesTarget by 2005 ................... over 35 products, over 20% of total product sales

■ The main target group is the furniture industry, with particular reference to upholstery adhesives, the aim being to abandon the use of solvent-based adhesives.

■ In 2000, the company began a transition from polyurethane adhesive compounds to isocyanate-free MS-polymer-based adhesive compounds. MS applications are being extended to adhesive production with the ultimate aim of replacing all polyurethane-based products.

■ Approval will be sought and received for the highest internal air emission classifi cation (M1) for an increasing number of Kiilto products. Kiilto waterproofi ng products received M1 classifi cation for building materials at the beginning of 2003.

(tn)

(tn)

PRODUCTS

ENVIRONMENT AND SAFETY: ACHIEVEMENTS AND NEW

15

1. To keep annual growth in electricity consumption lower than annual production volume growth

2. To keep annual growth in natural gas consumption below annual growth in heated fl oor area

NEW TARGET 2003-2005• To make energy consumption more effi cient

Kiilto has launched an extensive industrial energy analysis in cooperation with the energy supplier. This Motiva energy review is aimed at optimizing energy consumption and fi nding development targets to permit this. Growth in electricity consumption due to production reforms is acceptable, but efforts will be taken to make energy consumption more effi cient.

Natural gas consumption growth per year2000 ...........................................................62001 ........................................................ 562002 ........................................................- 4

■ The target set for electricity consumption was not achieved. This was because signifi cant investments in production were made in 2001-2002, with the result that electricity consump-tion in relation to production output remained high.

Process heat recovery improvedIn spring 2002, a study was conducted on the recovery of process heat at Kiilto. This focused primarily on the heat recovered from Kiilto’s own raw material manufacturing process (emul-sion polymer manufacturing) and conducted into the building heating system. The study ena-bled the effi ciency of the heat recovery system to be boosted through revised running times.

■ The large fl uctuations in natural gas consumption over the period under review were due to deviations observed and corrected in the settings of the boilers. (Most of the natural gas con-sumption at Kiilto is for heating the building, so boiler settings are of great signifi cance.) Natural gas was introduced in one renovated production department from the beginning of 2002, so that the number of consumption points also increased over the period under review.

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5

0

incr

ease

%

2000 2001 2002

production growthelectricity consumption growth

Initial level 1999 ......................... 0.4Target by 2002................ < 0.3Actual 2000 ......................... 0.7 2001 ......................... 0.4 2002 ......................... 0.3New target by 2005................ < 0.3

Initial level 1999 ....................... 0.04Target by 2002.............. < 0.04Actual 2000 ....................... 0.06 2001 ....................... 0.02 2002 ....................... 0.06New target by 2005.............. < 0.04

Initial level 1999 .............................0Target by 2002........................0Actual 2000 .............................0 2001 .............................0 2002 .............................0New target by 2005.......................0

1. To reduce amount of raw material and product waste dumped at landfi ll sites, and reduce amount of waste in settlement tanks

(% of output per year)

2. To keep amounts of hazardous waste at present levels

(% of output per year)

3. To minimize production-related problems caused to municipal

water treatment plant or environ-ment

(no. of cases)

(%)

Initial level 1999 .......................... 76Target by 2002................. < 70Actual 2000 .......................... 74 2001 .......................... 77 2002 .......................... 75New target by 2005................. < 72

■ Active reductions in the use of harmful substances in production require a stronger commit-ment to factory hygiene, i.e. more equipment washing. This trend, together with delays in water-conservation solutions, has led to the revision of wastewater targets.

A substantial survey of wastewater and incoming water has been launched together with Air-Ix engineers, in order to determine measures that will help to achieve the target. For example, recovery of pressure washer bypass water will be introduced in connection with alterations to the incoming water cleaning process in spring 2003.

(% of total water consumption)

1. To reduce the amount of wastewater in relation to total water consumption

ENERGY CONSUMPTION

WASTE

WATER CONSUMPTION

NEW GOALS AND OBJECTIVES

1616

■ The number of work-related accidents and absences from work caused by same decreased in 2000 compared with earlier years. The fi gure was clearly less than the reference level (average for RC companies) and the averages for the chemical industry compiled by the Industrial Insurance Company. As a reward for this positive development, the company presented every employee with a fi rst-aid kit.

Following the target, the number of accidents and absences continued to decrease in 2001 and remained below the RC average; as a reward, each employee received a fi re extinguishing blanket.

Staff will continue to be rewarded whenever the annual fi gures fall below RC averages and earlier Kiilto levels. This trend has been achieved through increasing training, guidance, incident

analysis and issuing more protective gear, and through adding oc-cupational safety audits to the regular auditing programme.

However, in 2002 the number of accidents increased. In order to rectify this, the occupational health care department has launched departmental health surveys, workplace ergonomic surveys and improvement measures.

The annual fi gures are based on the standard criteria in the industry (no. of accidents per million working hours, cases causing an absence of at least 3 days, not including travel to and from work). Internal indicator monitoring at Kiilto also provides for a quarterly collation of all work-related accidents (including travel to and from work), whether or not they cause absences.

Initial level 1999................................1Target by 2002 ..........................0Actual 2000................................0 2001................................0 2002................................0New target by 2005 ..........................0

Initial level 1999................................0Target by 2002 ..........................0Actual 2000................................0 2001................................1 2002................................0New target by 2005 ..........................0

(no. of cases) ■ In 2001, overheating of the battery pack of the compensation capacitor in the polymeri-zation plant at Kiilto caused a release of smoke that was considered a fi re. The internal circuit breaker in the capacitor had malfunctioned, and the capacitor overheated. Capacitor wear is infl uenced by the ageing of the insulating material, which in turn is affected greatly by the ambient temperature and peaks in the electricity supply. Both these were measured at the time and found to be within acceptable limits. After the incident, all capacitors of this type in the polymerization plant were replaced.

Kiilto also undertakes quarterly monitoring of the environmental and safety indicators listed on page 9.

1. Fires: to maintain zero level

2. Hazardous material transport accidents: to maintain zero level

(no. of cases)

Number of personal injuries leading to absence from work (minimum 3 days) per million working hours

Ratio of working hours lost to total working hours (personal injuries leading to a minimum of 3 days absence from work)

KiiltoReference level, average for RC companies

2500

2000

1500

1000

500

0 2000 2001 2002

302

1,651

463

1,588

wor

king

hou

rs lo

st p

er m

illio

n w

orki

ng h

ours

KiiltoReference level, average for RC companies

30

25

20

15

10

5

0no. o

f cas

es p

er m

illio

n w

orki

ng h

ours

2000 2001 2002

8.1

15.5

5.5

13.610.8

3. To bring Kiilto fi gures down to below reference levels (RC companies) in the number of personal injuries and in the number of working hours lost as result of same

NEW TARGET 2003-2005To maintain Kiilto fi gures below refer-ence levels (RC companies) and below earlier lowest Kiilto levels, both in the number of personal injuries and in the number of working hours lost as result of same.

Reference data for personal injuries will not be available until spring 2003.

FIRES, ACCIDENTS, PERSONAL INJURIES

1,350

17

KIILTO PRODUCTS WITH ENVIRONMENTAL AND SAFETY CLASSIFICATION, 2002

• Products with the highest internal air emission classifi cation (M1)........................... 25

• Products with the Nordic Environmental Label (Swan)................................ 31

• Products approved by the Food Research Laboratory (Eela) .........................6

• Products fulfi lling the EU directive fi re safety requirements ....................................... 17

1) Products transferred to KiiltoClean Oy

■ MAJOR MEASURES TAKEN IN THE FIELD OF ENVIRON-MENTAL AND SAFETY RESPONSIBILITY 2000-2002• Extended safety study• Continued analysis of process wastewater• Recovery of waste for energy production• Optimization of recovery of process

energy• Improvements to work ergonomics• Danger classifi cation of raw materials and

protective gear requirements entered in manufacturing instructions

• Safety guide• Equipment investments to improve safety• Zero tolerance for accidents, training• ‘Pelivara’, driving instruction in slippery

road conditions for sales representatives and lorry drivers

• ‘Askelma’, safety management project• ‘Safety 24 h’ project• Tank work training• Chemical and protective gear training for

all employees• First-aid training• Environmental and safety information

posted on the online help site• Environmental labels on products• Award for environmental and safety

report

■ Safety 24 hIn 2002, Kiilto participated in the ‘Safety 24 h’ project organized by associations in the chemical industry, aiming at generating new thoughts and tools for improving safety and welfare. Extensive management of noncon-formities was identifi ed as a subject for a development project at Kiilto. The purpose of this was to make Kiilto employees more sensitive to report on nonconformities and on ‘near miss’ situations. The management of nonconformity reports and the use of in-formation contained therein was enhanced.

■ ENVIRONMENTAL AND SAFETY INVESTMENTS 2000 2001 2002Total investments (EUR 1,000) 2,560 3,044 5,396Environmental and safety investments (EUR 1,000) 303 471 207Share (%) 11.8 15.5 3.8

M1-

clas

sifi e

d Ki

ilto

build

ing

mat

eria

l pro

duct

s

1)

1)

18

Ast

a Va

inio

npää

, sec

reta

ry t

o

the

dep

uty

man

agin

g di

rect

or

18

19

Profi tability is the cornerstone of responsible business. Only a profi t-able company can secure its future, invest suffi ciently in research and development, overhaul its production and train its personnel. Profi ta-bility stands for continuity and breeds confi dence outside the company too. The indicator objectives set by Kiilto for itself echo the long-term

planning which underlies the company’s strategic planning and corporate culture; the company’s performance is evaluated over the long term, taking into account factors infl uencing that long-term development.

KEY FINANCIAL FIGURES FOR 2000-2002

2000 2001 2002Turnover (EUR 1,000) 42,315 44,226 45,051Turnover per employee (EUR 1,000) 202 207 209Investments (EUR 1,000) 2,560 3,044 5,396Investments (% of turnover) 6.0 6.9 12.0Staff 214 219 217Taxes paid (EUR 1,000) 2,427 2,586 3,013Solvency ratio (%) 83 83.6 83.2Liquidity (quick ratio) 4.1 4.3 3.7

During the period under review, Kiilto exports continued to grow more rapidly than domestic sales, as was expected. The strongest growth took place in Poland, Russia and the Baltic states. A subsidiary was founded in Moscow at the end of 2000.

Major individual investments in 2000-2002 included automation of packing functions in production, a complete overhaul of the production lines for hot-set adhesives for the paper and packaging industry, the planetary reactor for grout manufacturing, renovation and expansion of the testing facilities at the research centre, and IT investments. A digital method and device for measuring the ef-fectiveness of cleaning agents were developed for studying cleaning agents and care products. A patent application is pending. Kiilto continued to market and advertise consumer products and to invest in improving staff expertise and com-petence.

The share of new products sold exceeded the target (20% of sales) in all three years.

In order to enhance customer service, Kiilto updated its website into a modern customer service and online shopping site. The fi rst online order was placed at the end of 2000. ■

FURTHER INFORMATION:Seppo Nieminen, chief fi nancial offi cerseppo.nieminen@kiilto.com

■ ECONOMIC RESPONSIBILITY AT KIILTO MEANS• profi tability, competitiveness,

effi ciency• fi nancial potential for meeting

the expectations of interest groups

■ ECONOMIC ASPECTS AND IMPACTSAspects• management of own business - risk management - steady business development

Impacts• profi tability• growth• fi nancial solidity• liquidity

Seppo Nieminen, chief fi nancial offi cer

Rewards stem from business idea

“Every Kiilto employee con-tributes to the implementation of the strategy and the busi-ness idea.

Every em-ployee receives an incentive

bonus based on the company’s annual profi t, and there are several minor incentive programmes to encourage staff to give their best.

Rewarding is management; good ideas are always rewarded!”

ECONOMIC ASPECTS AND IMPACTS

20

Ilkk

a Jä

rven

taus

ta,

war

eho

use

wo

rker

20

21

Being a Kiilto employee is a way of life. It is about team spirit, a positive attitude to work and to one’s colleagues, and caring for each other. Kiilto aims to be a desirable place to work where people feel at home and commit themselves to common goals. Employees are given development and training opportunities to improve their expertise

and skills. From the company’s point of view, this is a natural extension of com-pany development and the company’s strategic goals. Staff are also encouraged to maintain a balance between work and leisure in order to ensure good perform-ance at work and personal well-being.

Procedures:• development talks• expertise strategies• internal career paths• satisfaction questionnaires and mood surveys• internal training• shared strategy and codetermination meetings• other internal events• in-house communications• TYKKI team• occupational health care

Welfare at the workplace is promoted through supporting leisure and recreation activities, organizing staff events and encouraging fi tness activities. All this is co-ordinated by the TYKKI team which consists of employee members; the team is charged with involving as many Kiilto employees in taking care of their physical fi tness in order to promote working ability, health, well-being and team spirit.

FURTHER INFORMATION:Armi Mehto, company communicatorarmi.mehto@kiilto.com

SOCIAL ASPECTS AND IMPACTS

■ SOCIAL RESPONSIBILITY AT KIILTO MEANS• staff well-being and expertise• customer partnership• other cooperation with

interest groups• support for benefi cial

public functions

■ SOCIAL ASPECTS AND IMPACTSAspects• human resource management - availability - retention - development• partnership management - dependability - troubleshooting - anticipation - added value• social participation - development support - goodwill

Impacts• working ability• enjoyment of work• career path

• expertise• satisfaction• competitive advantage

• employment• national economy

• business development

Pekk

a Pi

tkän

en, h

ot-s

et a

dhes

ive p

roce

ssor

, hea

d sh

op s

tew

ard

(from

200

3)

22

Tim

o An

drej

eff,

pack

ing

mac

hine

ope

rato

r, an

d Se

ppo

Salm

i, adh

esive

pr

oces

sor,

enjo

ying

an in

tera

ctive

leisu

re p

ursu

it.

THEME YEARS 2000-20022000: Kiilto employee yearIn this year, all employees acquainted themselves with Kiilto production proc-esses. Every employee not actually working in the production department donned overalls for a day and worked at a workplace of his or her choice in the produc-tion department, receiving instruction in how the production department works, what skills are needed and who works there.

2001: Stupid costs into wise investmentsThe point of this theme was to focus attention on unnecessary expense and to fi nd ways to eliminate them. A competition was organized to fi nd new ideas, entitled ‘Brain of the Month — Sage of the Year’. The former received a cash award of FIM 500, while the ‘Sage’ received a 12% extra bonus. The basis for these awards was coming up with the best idea for fi nding and eliminating a stupid cost.

2002: From virtual to interactiveThe idea was to weed out meetings and e-mails that existed for no other purpose than routine. Instead, fl exible interaction and faster, more adaptable decision-making were promoted.

Open interaction was promoted by providing leisure rooms and meeting plac-es throughout the factory and head offi ce. Boosting interaction and cutting down on meetings was also a way to enhance customer service.

Vocational qualifi cation — a signifi cant expertise development conceptIn autumn 1999, Kiilto joined the chemical industry vocational qualifi cation programme in which employer and employees together with educational institu-tions develop qualifi cation requirements to meet the changing needs of working life. The training programme at Kiilto took two years (2000-2001), involving eleven employees from the production and packing departments. They completed the vocational qualifi cation in apprenticeship training alongside their work. The training included both general subjects and training customized for the company.

The second chemical industry vocational qualifi cation programme was launched in March 2002 with seven Kiilto production employees.

Completing the qualifi cation is refl ected in pay and, if possible, work assign-ments.

■ MAJOR ACHIEVEMENTS IN SOCIAL RESPONSIBILITY 2000-2002• staff theme years• fl exitime• chemical industry vocational qualifi cations• other staff training• job induction improvement• customer training improvement• customer service enhancement• customer information improvement• student cooperation development• increase of external cooperation projects

■ KIILTO EMPLOYEE TRAINING ALONGSIDE WORK 2000-2002• D.Sc.(Tech.)• M.Sc.(Tech.)• chemical industry vocational qualifi cations• eMBA• Assistant to the Management qualifi cation• Certifi cate in Credit Management• BBA studies• language training in Swedish and English• sales and interaction skills training• mental coaching • food hygiene training

■ INTERNAL CAREER PATHSIdentifying talent, personal improvement and harmonization with company and staff needs manifest themselves in internal ca-reer paths. In the years 2000-2002, several employees have progressed to more senior positions or more demanding jobs. Some are in their fourth or fi fth position at Kiilto.

In 2001, a vocational qualifi cation was completed by Timo Andrejeff, Markku Austiola, Ari Isosalo, Sakari Kieloniemi, Erkki Kivistö, Pauli Nieminen, Jouni Rautalin, Seppo Salmi, Mika Tahvanainen, Esa Toiva and Juha Ujanen.

23

Customer = partnerThe Kiilto business idea is based on the customer’s needs and aims to maintain and improve the customer’s business. The customer is a partner whose economic performance, effi ciency and expertise Kiilto contributes to through its service concept. Kiilto as a supplier forms part of the customer’s quality and logistics chain. The customer values receiving the product at the right time and over a short distance and being provided the service to go with it. Kiilto’s certifi ed quali-ty system and commitment to total quality and to caring for the environment and safety is a guarantee to the customer of the quality, dependability and responsibil-ity of Kiilto’s business.

Through product development cooperation, Kiilto maintains a practical touch with the customer’s sector and technology and makes use of this information in its own development work. This enables Kiilto to pick up future trends at an early stage and to fi nd new or original commercial ideas. The customer, on the other hand, can gain a competitive advantage for instance by piloting a new or modifi ed product or by being given a customized product.

Customer expertise is also being improved. Kiilto has been providing system-atic customer training in the use of its products since the 1980s. In 1994, a train-ing centre was completed, and over the past fi ve years over 10,000 people have attended courses there. The training centre provides lectures and seminars on a variety of topics: adhesives, renovations, industrial adhesives, cleaning agents and care products, tiling and waterproofi ng.

Technical support for professional users is divided into specialized depart-ments like the marketing departments, corresponding to customer target groups. The Kiilto consumer adviser is available for private consumers to consult.

Customer satisfaction is gauged regularly through studies and specifi c indica-tors.

Har

ri Te

nhol

a, st

ruct

ural

adh

esive

pro

duct

man

ager

(lef

t), a

nd a

visi

tor.

Sirp

a Ko

ukku

la, la

bora

tory

tech

nicia

n, in

spec

ting

a co

ntro

l sam

ple.

■ Product quality controlRaw materials are checked on arrival to ensure that they match their specifi cations. A sample is taken of each production batch for testing according to a predetermined procedure. A product is approved for delivery when the results are accepted. A control sample is taken of all completed products and kept for at least 12 months.

When talking about quality, the entire production chain must be up to speed. We want to be the best possible partner for our customers.

They choose the best partners, and so do we.

Antti Jäälinoja, sales and technology offi cer,

Schaffner-Electroferrum (Kontakti 2002)

In practice, we tell the raw material supplier what we want in a resin, for instance, and the supplier then develops a product for our needs.

This cooperation requires that the parties know each other well — it is not enough just to send a list of fi nancial or technical specifi cations.

Lauri Moisander, head of purchasing,

Componenta Suomivalimo Oy (Kontakti 2000)

24

satis

fact

ion

(min

1 -

max

5)

STAFF SATISFACTION INDICATORS

“I FEEL I HAVE RECEIVED SUFFICIENT TRAINING FOR MY JOB.”

5

4

3

2

1

0

100

99

98

97

96

95 2000 2001 2002

%

99.4 99.3 99.4

Target 100%

50

40

30

20

10

0 2000 2001 2002

days

28

13 10

Target: Less than 14 days

2000 2001 2002

5

4

3

2

1

0 1998 2000 2002

satis

fact

ion

(min

1 -

max

5)

3.423.87 4

2.773.46 3.36

KiiltoCompetitor

5

4

3

2

1

0 1998 2000 2002

satis

fact

ion

(min

1 -

max

5)

3.67 3.71 3.823.05 3.44 3.32

KiiltoCompetitor

Target: Keep level steady or raise it

satis

fact

ion

(min

1 -

max

5) 3.83 3.81 3.90

5

4

3

2

1

0

5

4

3

2

1

0 2000 2001 2002

satis

fact

ion

(min

1 -

max

5) 3.84 3.85 3.89

2000 2001 2002

satis

fact

ion

(min

1 -

max

5) 4.18 4.03 4.19

2000 2001 2002

5

4

3

2

1

0

satis

fact

ion

(min

1 -

max

5) 3.88 3.87 3.92

5

4

3

2

1

0 2000 2001 2002

satis

fact

ion

(min

1 -

max

5) 3.72 3.79 3.86

“MY OPINIONS ARE TAKEN INTO ACCOUNT IN MY WORK.”

“I GET ALONG WELL WITH MY SUPERVISOR — WE HAVE A CONSTRUCTIVE RELATIONSHIP.”

“THE DEPARTMENT HAS A GOOD ATMOSPHERE.”

AVERAGE FOR ALL QUESTIONS (13)

CUSTOMER SATISFACTION INDICATORS

AVERAGE TIME FOR PROCESSING CUSTOMER COMPLAINTS

CORRECTNESS OF DELIVERIES

OVERALL SATISFACTION WITH KIILTO

SATISFACTION WITH SALES REPRESENTATIVE

■ The atmosphere study or satisfaction ques-tionnaire is conducted annually for the entire staff. The results are processed and analysed by department.

■ Every two years, Kiilto has an outside research institution conduct a survey on customer satisfaction and loyalty and factors infl uencing these. Kiilto then deter-mines development targets on the basis of the survey. Customer satisfaction factors are also monitored and analysed internally through 13 different quality indicators on a quarterly basis.

SATISFACTION WITH DELIVERIES

5

4

3

2

1

0 1998 2000 2002

3.77 4.04 4.13

3.073.57 3.41

KiiltoCompetitor

25

ABSENCES DUE TO SICKNESS

5

4

3

2

1

0 2000 2001 2002

3.49 3.78

4.72

%

Target: < 4% for all departments, long-term target < 2%.

Joun

i Kan

tane

n, th

e Ki

ilto

cons

umer

adv

isor

■ In the environmental, health and safety self-assessment for 2001, decreasing ab-sence due to sickness was named as a development project. The project group studied the causes for such absences and began to establish a suitable statistical method to study this together with the occupational health care unit. Development needs regarding working conditions were also studied on a workplace-specifi c basis. The TYKKI team also thought up ideas to prevent absences due to sickness. The project is continuing.

800

700

600

500

400

300

200

100

0 2000 2001 2002

463

682

330

no. o

f que

ries

QUERIES TO THE CONSUMER ADVISER RECEIVED VIA THE INTERNET OR E-MAIL

■ The introduction of the online serv-ice in early 2001 signifi cantly increased the number of queries submitted by e-mail.

KIILTO CUSTOMER TRAINING

2000 ........... 2,9362001 ........... 3,2112002 ........... 4,557

■ Since 2000, Kiilto has invested heav-ily in waterproofi ng training for the customers of the building materials department in order to support the waterproofi ng solutions introduced to the market by Kiilto and to provide the wet space construction know-how that they require.

Ari T

uom

inen

, tec

hnica

l adv

isor

to th

e bu

ildin

g m

ater

ials

depa

rtm

ent,

givin

g a

clas

s on

wat

erpr

oofi n

g.

26

Cooperation increases expertiseThe quality system contains directives for supplier selection and cooperation. Ki-ilto suppliers form part of the total customer quality process, which means that delivery dependability and a steady level of quality are expected of them too. Ki-ilto requires suppliers to be able to support Kiilto processes and quality objectives in economic and technical terms with their products and services.

Good supplier cooperation translates into workable solutions and a long-term confi dential trade relationship benefi cial to both parties. Good suppliers enable Kiilto to stay at the cutting edge.

Kiilto is a member of adhesive industry associations in the USA and in Eu-rope, of the European Polymer Dispersion and Latex Association (EPDLA) and the European Standards Organization, following developments in the sector and participating in the preparation of regulations and the organizing of training. This presence enables Kiilto to ensure that the Finnish and Nordic viewpoint is represented in a wider forum.

Kiilto representatives serve as expert members in a number of organizations in business, science, culture, education and social activities. This brings Kiilto useful knowledge on current trends and enables Kiilto to contribute its own know-how for wider use in society.

Kiilto employees are widely active in society as private individuals (in charity, rescue and ethical organizations, junior chambers of commerce, professional or-ganizations, parishes, sports clubs and youth associations). There is a lively com-munication of expectations and use of contact networks both ways.

Lempäälä municipality — an important neighbourSociety expects Kiilto above all to provide tax revenue and jobs, to cooperate and to pursue a responsible environmental and safety policy. The successful achieve-ment of Kiilto’s key objectives and business idea is the best way of fulfi lling these expectations.

The closest external partner is the company’s home municipality. Kiilto man-agement and the municipal authorities regularly have development talks about how the two parties can act for their common benefi t.

Kiilto is involved annually in municipally organized projects focusing on economy, culture and sustainable development.

■ STAFF AND SUMMER EMPLOYEES

total summer % staff emplyees of total2000 214 31 14.52001 219 26 11.92002 217 29 13.3

Kiilto offers summer jobs and trainee posts in order to safeguard the future and to sup-port employment and vocational studies for young people. Summer jobs are advertised on the company website.

■ TAXES PAID AND IMPACT ON MUNICIPAL TAX RATE

Income tax paid by company (EUR 1,000)

2000 2001 2002a) 2,427 2,586 3,013b) 34 40 18

Withholding tax deducted from staff gross pay (EUR 1,000) 2000 2001 2002a) 2,001 2,067 2,179b) 407 382 404

a) Kiiltob) Metalpak, a Kiilto subsidiary located

in the same municipality

If the total tax revenue from Kiilto and Metalpak and their staff had been paid to Lempäälä municipality alone, its impact on the municipal tax rate would have been:v. 2000 2.6% v. 2001 2.7% v. 2002 3.0%

Har

ri M

arkk

ola,

hot-s

et a

dhes

ive p

roce

ssor

, at t

he h

ot-s

et a

dhes

ive p

rodu

ctio

n lin

e.

27

Kiilto also runs a ‘community chemist’ programme aimed at young people in the municipality, working together with Sääksjärvi School in Lempäälä. This programme involves company visits, workshops, scholarships, introductions to working life, performances on festive occasions, entrepreneurship training and provision of facilities.

Promoting interest in chemistry studies The chemical industry is a source of an increasing number of interesting jobs and will require ever greater and higher levels of expertise. Kiilto is taking ac-tive measures to increase interest in chemistry studies and to improve chemistry education through a diverse cooperation programme with universities and other educational institutions.

Cooperation links:• Kiilto scientifi c advisory committee (cooperation organ between Kiilto and

the Tampere University of Technology)• Docentship in adhesives technology at Tampere University of Technology• Expert memberships: - Board of Pirkanmaa Polytechnic - INSKO/AEL - Tampere University of Technology advisory committee

Every year, Kiilto offers chemistry and technology students research projects and project jobs to support their studies. The most recent form of cooperation, intro-duced at the beginning of 2002, is to employ a dozen or so students to cope with peak periods in adhesives production. The students are trained for their duties in advance, and extra labour can thus be obtained at very short notice. The students are awarded study credits for their work according to a formula agreed in ad-vance. Kiilto also gives demonstrations on chemistry teaching and practical work for groups of schoolchildren, students and teachers, and offers schoolchildren courses in introduction to working life.

■ Kiilto as a subsidized-employment providerKiilto is the fi rst industrial company in Pirkanmaa (the Tampere region) to enter into cooperation with work on recovery from mental illness by Sopimusvuori ry. at their clubhouse in Näsinkulma providing a transitional employment post for six months. This employee made a satisfactory contribu-tion in the packing department, and the cooperation with clubhouse in Näsinkulma was viewed favourably. The cooperation will be continued in 2003.

Susa

nna

Villik

ka, a

stu

dent

labo

rato

ry a

nalys

t em

ploy

ed a

s a

sum

mer

trai

nee

at K

iilto,

stud

ies

the

use

of a

dev

ice m

easu

ring

the

effe

ctive

ness

of c

lean

ing

agen

ts.

Armi Mehto, company communicator

www.kiilto.com

“Kiilto employs a wide range of corporate communica-tions to convey its social responsibility and infl uence. Tools for this include the Kontakti cus-

tomer newsletter, this responsibil-ity report and our online service at www.kiilto.com.

Another important tool for social interaction is cooperation with the media, above all with professional publications in our own sector and in those of our customers. Through them we can publish our expertise and experiences for wider use.

The most signifi cant communica-tion development over the period un-der review was the conversion of our website into a modern online service in 2001. Our site at www.kiilto.com contains current and new information on a need-to-know basis and functions as an interaction channel between us and users.”

2828

■ Sailing to the OlympicsIn sports, Kiilto embarked on a new course in 2001 with the sponsorship of a 49er-class sailing boat. The Kiilto team, Patrick Blom and Martin Gahmberg, were placed fourth in the Finnish GP championships in 2001 and fi fth in 2002. Kiilto is supporting the team in the progress of their career, possibly up to the Olympics in Athens in 2004.

Supporting public servicesKiilto sponsors a wide range of activities in science, art, education, sports and general social activities. This sponsorship demonstrates that the company values the goals, dedication and values of the parties supported. Often this takes the form of long-term mutual cooperation where Kiilto has the opportunity to de-velop its expertise too.

Examples of partnership projects in 2000-2002• University of Tampere - founding a chair in business economy• Tampere University of Technology - fi nal thesis on the biodegradability of hot-set adhesives - study on staff expertise development - publicity campaign for the Department of Science and Engineering• Tampere Polytechnic - study on environmental management - fi nal thesis on factory hygiene• Central Ostrobothnia Polytechnic - fi nal thesis on recovery of process heat• Lohja Institute, Laurea Polytechnic - trainee work supporting commercial studies• Chemical industry vocational qualifi cations• Handicraft competition for school pupils• Cooperation with Sääksjärvi primary school• Educational institution recruitment service netota.net• Technical Research Centre of Finland (VTT) wet space certifi cation and water-

proofi ng classifi cation criteria• Environmental cooperation development project between companies and mu-

nicipality• Lempäälä trade fair• Lithuanian environment project• Pirkanmaan Jätehuolto, waste management project• Children’s science camp, Heureka science centre• Sopimusvuori ry., provision of transitional employment post ■

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THE MANY FACES OF PRODUCT SAFETYIn shipbuilding, fi reproofi ng is an important factor involving stringent classifi cation criteria.

A ship contains a multitude of materials in its structure and furnishings — solid wood, veneer, metals, non-fl ammable insulation materials, stone, glass, laminates, fabrics... In addition to being fi reproof, they also have to be durable, light, attractive, movable and resistant to wear.

Fireproof-classifi ed Kiilto polyurethane adhesives, MS polymer products and other specialist adhesives for the metal industry are used in the installation of ship cabins, laminations for prefabricated cabins, bath-room tiling, fi re door manufacturing and furniture assembly.

Lift doors are assembled using adhesives (MS polymer compounds).

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The electronics industry uses cast resins to protect electrical components. This requires a high insulating capacity, among other properties.

Manufacturers of refrigerated lorry containers, railway rolling stock and bus and coach frames use MS polymer products.

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Report produced by:

Media agency Selander & Co. Oy / Riitta Savola

Photos: Studio Torkkeli / Kimmo Torkkeli and Kiilto Oy archives

Layout: Graafi nen Suunnittelu Immonen / Juha Immonen

Printers: Hämeen Kirjapaino Oy, 2003.

Copies of this report can be ordered from Kiilto, PO Box 250, FIN-33101 Tampere, Finland, or by phone, +358 (0)3 280 8111.

The report can be browsed and copies ordered online at www.kiilto.com.

Feedback on the report may be submitted to Armi Mehto, company communi-cator, who can also provide further information. Tel. +358 (0)3 280 8111, armi.mehto@kiilto.com

FURTHER INFORMATION AND FEEDBACK

KIILTO OY

AddressTampereentie 408

FIN-33880 LEMPÄÄLÄFinland

Postal addressPO Box 250

FIN-33101 TAMPEREFinland

Phone+358 (0)3 280 8111

(weekdays 0800 to 1600)

Fax+358 (0)3 367 0943

Internetwww.kiilto.com