METSÄ FIBREANNUAL REVIEW 2015
CONTENTS
2 Key figures4 CEO’s review6 Strategy8 Year 201510 Botnia products and services12 Bioproduct mill14 New bioproducts15 Bioproduct mill’s environmental performance16 Sustainability themes18 Environmental impacts20 Environmental balance21 Emissions from Nordic pulp mills
A GLOBAL LEADER IN THE BIOECONOMY
* compared to 2014
SALES*
OPERATING RESULT EXCL. NRI*
PRODUCTION*
+11%
+62%
+96,000 t
METSÄ GROUPSUSTAINABILITY REPORT 2015
METSÄ GROUPANNUAL BROCHURE 2015
Metsä Fibre is developing textile
fibres from softwood pulp together with
Itochu Corporation. Yarn was produced on
a laboratory scale in 2015.
METSÄ FIBRE is a world-leading producer of bioproducts and bioenergy. Its brand is Botnia. Its bleached softwood and birch pulps have been developed for manufacturing premium boards, tissue and printing papers, and speciality products. In 2015, Metsä Fibre’s sales totalled EUR 1.4 billion. The company has approximately 850 employees. Metsä Fibre is owned by Metsäliitto Cooperative (50.2%), Metsä Board (24.9%) and Itochu Corporation (24.9%). Metsä Fibre is part of Metsä Group. READ ALSO:
PUBLISHER Metsä Fibre [email protected]
The annual review is published in English, Finnish and Chinese. It is available in PDF format at www.metsafibre.com.
Metsä Group’s Annual Brochure 2015
Metsä Group’s sustainability report
2 KEY FIGURES
KEY FIGURES 2015 2014 2013 2012 2011
Sales, EUR million 1,445 1,296 1,314 1,274 1,301
Operating result, EUR million 337 228 197 151 267
Operating result, excl. NRI, EUR million 337 208 197 148 267
Return on capital employed, % 42 30 29 23 37
Equity ratio, % 67 66 71 65 63
Net gearing ratio, % -36 -40 12 16 7
Investments, EUR million 250 26 27 35 45
Production, 1,000 t 2,353 2,257 2,297 2,237 2,205
Wood consumption, million m3 13 12 13 12 12
Personnel, 31. December 857 842 884 876 873
Lost-time accident frequency rate, per million worked hours, incl. all accidents at work leading to absenteeism 7.9 4.9 8.4 7.9 6.6
Share of certified wood, % 87 87 85 85 84
Electricity self-sufficiency rate, % 151 149 144 151 138
SALES EUR 1.5 BILLION
PERSONNEL 900
METSÄLIITTO COOPERATIVE HOLDING 100%
WOOD SUPPLY AND FOREST SERVICES
METSÄ FOREST
SALES EUR 1.4 BILLION
PERSONNEL 850
METSÄLIITTO COOPERATIVE HOLDING 50.2%, METSÄ BOARD 24.9%. ITOCHU CORPORATION 24.9%
PULP
METSÄ FIBRE
SALES EUR 2.0 BILLION
PERSONNEL 2,600
METSÄLIITTO COOPERATIVE HOLDING 42.24% (61.63% OF VOTES)
PAPERBOARD
METSÄ BOARD
SALES EUR 1.0 BILLION
PERSONNEL 2,800
METSÄLIITTO COOPERATIVE HOLDING 91%
TISSUE AND COOKING PAPERS
METSÄ TISSUE
METSÄ GROUP
SALES EUR 0.9 BILLION
PERSONNEL 2,000
METSÄLIITTO COOPERATIVE HOLDING 100%
WOOD PRODUCTS
METSÄ WOOD
METSÄLIITTO COOPERATIVE OWNED BY 116,000 FINNISH FOREST OWNERSGROUP’S PARENT COMPANY
5.0 BILLION SALES EUR 9,600PERSONNEL
PRODUCTION 2015 2014 2013 2012 2011 CapacityISO
9001ISO
14001ISO
50001OHSAS 18001
ISO 22000
PEFC™ COC
FSC® COC/CW
Pulp mills, 1,000 t
Joutseno 658 594 604 606 603 690 x x x x x x x
Kemi 585 552 564 539 532 590 x x x x x x x
Rauma 602 607 612 573 567 650 x x x x x x x
Äänekoski 507 504 516 519 503 530 x x x x x x x
Total 2,353 2,257 2,297 2,237 2,205 2,460
Capacity utilisation, % 96 92 95 93 93
Sawn timber 1,000 m3
Metsä Svir 251 233 244 221 193 250 x x 1) - x - x x
1) Metsä Svir ISO 14001 certificate includes the Energy Efficiency system (EES). FSC Licence Code: FSC-C002102
KEY FIGURES 3
Metsä Fibre has four profitable pulp mills in Finland and a growing global market. It supplies ECF bleached softwood and birch fibres to Europe and China. Metsä Fibre is strengthening its position in the softwood pulp market by investing in a new bioproduct mill in Äänekoski, Finland.
PROFITABLE BUSINESS
PRODUCTION
SALES
MAIN MARKETS
SALES EUR MILLION
EQUITY RATIO %
NET GEARING RATIO %
INVESTMENTS EUR MILLION
RETURN ON CAPITAL EMPLOYED %
11 12 13 14 15
50
40
30
20
10
0
OPERATING RESULT EXCL. NRI EUR MILLION
11 12 13 14 15
350
300
250
200
150
100
50
0
11 12 13 14 15
1,500
1,250
1,000
750
500
250
0
11 12 13 14 15
100
80
60
40
20
0
11 12 13 14 15
50
25
0
-25
-50
11 12 13 14 15
250
200
150
100
50
0
4 CEO’S REVIEW
METSÄ FIBRE IS A RENEWING AND SKILLED PARTNER
METSÄ FIBRE IS IN THE PROCESS OF CARRYING OUT THE LARGEST INVESTMENT OF THE FOREST INDUSTRY IN FINLAND.
CEO’S REVIEW 5
Metsä Fibre’s roots are in sustainably managed Finnish forests. Ever since a group of Finnish forest owners founded the company 43 years ago, it has been our mission to profitably upgrade wood growing in our forests into products for the global market. We have been fulfilling this mission throughout the decades, while continu-ously developing our operations.
Responsible profitability has always been Metsä Fibre’s operat-ing principle. Developing our operations in terms of the customer relationships, competence and mills alike is based on long-term planning. Working systematically has proved to be a good way to maintain the profitability of our capital-intensive operations.
Metsä Group’s other business areas support our effectiveness. When wood is procured from sustainably managed commercial forest, all of it must be directed to the most profitable use finan-cially. This is possible in the value chain formed by Metsä Forest and Metsä Group’s industrial business operations. The Group makes it possible to benefit from strong synergies.
A LEADING SUPPLIER OF BIOPRODUCTS AND SERVICESMetsä Fibre’s strategy is to develop as the market’s leading supplier of softwood pulp. Our customer relationships are based on creating long-term partnerships. We also want to create added value for our customers’ business by means of our competence, not just by manufacturing premium products. In order to reach the objective, we have developed our technical expertise and productised our competence into service packages aimed at supporting our custom-ers’ business operations.
Approximately 10 per cent of Metsä Fibre’s sales come from bioenergy and wood-based biochemicals. We can considerably increase the share of bioproducts other than pulp by developing new biomaterials and improving the energy efficiency of our mills. For us, it creates opportunities for profitable growth and increases the upgrading value of wood. However, our core business will be manufacturing wood fibres to meet the needs of our existing customers, also in the long-term.
INVESTMENT IN THE FUTUREThe year 2015 demonstrated that we succeed in competition and have the key to future success as well. Metsä Fibre’s financial result was good, and the feedback we received from customers on our operations was mainly positive and motivated us to develop further. The market views Metsä Fibre as a professional and evolving company that is appealing to work with.
Metsä Fibre is in the process of carrying out the largest invest-ment of the forest industry in Finland: the new bioproduct mill in Äänekoski. The mill will begin operations in the third quarter of 2017 and will take the industry’s resource and environmental efficiency to a new level. At the same time, it will expand our operating model by integrating new bioproducts with the develop-ing and competitive pulp business. This investment clearly makes Metsä Group the world’s leading manufacturer of softwood pulp, and it helps us address our customers’ need to purchase premium raw material.
DEMAND FOR RENEWABLE MATERIALS IS INCREASINGThe consumption of packaging materials and tissue and printing papers is increasing in developing markets. China is the driver of growth in these markets – the country has become the world’s largest buyer of market pulp in the past couple of years. Overall, consumption in our home market – the EU region – has remained at the same level, even though there are continuous fluctuations between different product groups. In the Asian export markets, we compete with producers not only from Europe, but also from North and South America as well as Russia. For this reason, our efficiency must remain at a good level compared to the producers of softwood pulp globally. We must also be able to compensate for the burden caused by the more expensive logistics.
Demand for products based on renewable wood raw material is growing. This global growth is enabling tens of millions of people to achieve the standard of living needed for buying products, which in developed countries are used on a daily basis. There is a willing-ness to make the shift from the era of fossil fuels to an era of renewable sources. New innovations make it possible to manufacture new wood-based products competitively.
The work carried out in Finland over the decades to build a sustainable forest industry, our high expertise in various forest industry professions and our willingness to commit to the long-term development of our sector ensure that we will continue to meet the needs of our customers, now and in the future.
Ilkka HämäläCEO
6 STRATEGY
STRATEGYMISSION
The most professional and efficient company in the pulp industry
VISION
The customers value Metsä Fibre as their preferred supplier for high-quality bioproducts and services that create value to their business
VALUES
RELIABILITY
Our success is based on long-term cooperation
with our stakeholders. We appreciate the work
and competence of each other and strengthen the
confidence of our various stakeholders by acting
in a consistent and predictable way.
COOPERATION
We develop our operations in cooperation with our
customers and share information and best prac-
tices with each other. We operate as one group of
companies, utilising mutual synergies and relying
on common benefits.
RESPONSIBLE PROFITABILITY
We bear responsibility for the environment, our
partners and each other to ensure successful
business activities and forestry. Profitability is an
absolute prerequisite for the continuous develop-
ment of operations.
RENEWAL
We are aware of future challenges and have
the courage to question old practices in order to
provide better products and services to our cus-
tomers in support of their business operations.
STRATEGY 7
MAIN ELEMENTS OF THE STRATEGY
IMPLEMENTATION OF THE STRATEGY
CUSTOMER
OWNER
INTERNAL EFFICIENCY
COMPETENCE
• We will be building the world’s first next-generation bioproduct mill in accordance with the investment decision made in 2015.
• We will continue developing new bioproducts and product paths. In early 2016, we signed the agreements on biogas and pulp fibre-based composite production with our partners. We are further researching lignin processing into new bioproducts and also a new production process for textile fibres made from softwood pulp.
WE ARE THE MOST RELIABLE PARTNER
WE CREATE ADDED VALUE TO OUR OWNERS
WE MAKE PROFIT RESPONSIBLY ALSO IN THE FUTURE
WE CONTINUOUSLY CHALLENGE OURSELVES
• We create added value for our customers with premium bioproducts. We manage product quality and deal with deviations by means of an upgraded prime quality management model implemented in 2015.
• We provide a competitive advantage to our customers with expertise – the backbone of our services. For example, the Botnia IdeaBooster service implemented in 2015 allows us to identify shared development projects with our customers.
• The Äänekoski bioproduct mill will reach a completely new level in reducing emissions in the forest industry.
• We are improving the environmental performance of the Rauma, Joutseno and Kemi pulp mills by developing our processes. The latest investment in 2015, the odorous gas boiler at Rauma, reduces the mill’s odour emissions in exceptional situations.
• We considerably improved the availability of our mills, breaking a significant production record of 2,353,000 tonnes in 2015.
• In 2015, we completed the renewal of the automation system at the Kemi mill.
• Metsä Fibre’s personnel designed a new ´Mills of the Future´ operating model, to be implemented in 2016.
• We will prepare for future personnel needs by recruiting new production professionals through apprenticeship programmes.
• We reached the finals of the 2015 European EFQM Excellence Award, and will utilise the feedback received to develop our operations in 2016.
8 YEAR 2015
The year 2015 was one of successes for Metsä Fibre. Our sales were EUR 1,445 million and our operating result excluding non-recurring items was EUR 337 million, which is an improve-ment of over 60 per cent compared to the previ-ous year.
Metsä Fibre’s result was improved by the high utilisation rate of pulp production capacity at all mills, efficient cost management and the strengthening of the US dollar against the euro.
By contrast, the price level of softwood pulp decreased as a result of the strengthening dollar. Demand for pulp grew steadily in Metsä Fibre’s primary markets and in end product segments.
EFFICIENT PRODUCTIONMetsä Fibre’s cost-effective pulp mills are com-petitive as the requirements set for production methods and products are tightening. We develop all areas of our operations in order to be the preferred partner in the market for our customers. Long-term work to ensure consistent operations that are free of disturbances is producing results. This is indicated by the new company-level production record of 2,353,000 tonnes achieved in 2015.
The most significant development invest-ments were the odorous gas boiler at the Rauma mill and the automation system at Kemi. The investment in the mill’s capacity to treat odorous gases will minimise Rauma mill’s odour emissions in exceptional situations. The renewal of the automation system that has been underway for three years was completed in Kemi, ensuring the mill’s operating reliability in the future.
We will continue to further improve the mills’ production volume, energy and environmental efficiency, and product quality.
A RENEWING ORGANISATIONContinuous renewal is our response to changes in the global pulp markets. At the beginning of 2016, we were focusing on implementing a new operating model in the production organisation. The new way of working is based on self-steering by the shift personnel and shared decision-making.
Metsä Fibre anticipates future resource needs by recruiting production professionals through an apprentice programme at all mills. The number of new process employees hired through the pro-gramme in 2015 and 2016 is approximately 40.
FOREST INDUSTRY LEADERThe bioproduct mill in Äänekoski is a cornerstone of Metsä Fibre’s renewal, and leads the way for the entire forest industry. Pulp is one of Finland’s most important export products, and responsible pulp production will be profitable in the future as well. We will strengthen our competitiveness by developing both new bioproducts and business activities in connection with strong pulp produc-tion.
Metsä Fibre is a leader in the global bioeconomy, with business operations based on growing a global demand for pulp fibre, other wood-based bioproducts and bioenergy. In production and financial aspects, 2015 was a strong year for Metsä Fibre. During the year, we made a decision to build a bioproduct mill in Äänekoski, Finland.
YEAR 2015
150%
THE ELECTRICITY SELF-SUFFICIENCY RATE OF OUR PULP MILLS
YEAR 2015 9
PERSONNEL 31. DECEMBER
Metsä Fibre asked its employees for their opinions on
smart and motivating ways of working. The result was
a completely customised production operating model
based on self-steering teams and a flat organisation.
Implementation started at the Rauma mill in January
2016 as a pilot.
In the new operating model, shift personnel make
independent decisions without a shift supervisor and
jointly agree on the division of work in accordance with
the shared objectives. The diverse expertise
of Metsä Fibre’s personnel is applied in a completely new
way, since everyone has the opportunity to perform more
demanding and varied tasks.
The operating model was outlined through interviews
and workshops, in which approximately 200 Metsä Fibre
employees participated.
1,000
800
600
400
200
0
2011 2012 2013 2014 2015
PRODUCTION 1,000 T
2011 2012 2013 2014 2015
2,500
2,000
1,500
1,000
500
0
SELF-STEERING WORK AT THE MILLS OF THE FUTURE
10 BOTNIA PRODUCTS AND SERVICES
32% BOARDS
31% PRINTING PAPERS
28% TISSUE PAPERS
8% SPECIALITY PRODUCTS
END USE OF BOTNIA NORDIC PULPS IN 2015
PULP DELIVERIES 1,000 T
Softwood pulp Hardwood pulp
2011 2012 2013 2014 2015
2 500
2 000
1 500
1 000
500
0
SALES VOLUMES BY MARKET AREA %
Finland 45 Asia 26 Europe, excl. Finland 22 MENA & TR 7
BOTNIA PRODUCTS AND SERVICES 11
Metsä Fibre’s main products are bleached soft-wood and birch pulps, with annual deliveries to international markets totalling 2.4 million tonnes. Our product range also include pulps from the producers we represent. Our pulp fibres are ideal raw materials for premium tissue and printing papers, speciality products and boards. We deliver over 65 per cent of the pulp we manufacture to customers in Europe, and approximately 25 per cent to China. Our fibres are developed in close cooperation with our customers to ensure that the pulp properties match the requirements of the end products.
DIVERSE BIOPRODUCTSWe also manufacture other bioproducts, such as tall oil, turpentine and bioenergy. Metsä Fibre is one of the largest manufacturers of tall-oil-based bioproducts in the world. Our customers upgrade the crude tall oil and crude turpentine generated at our mills into raw material for biofuels, adhe-sives, rubbers, inks and odorants, among others.
Bioenergy and biochemicals make up approx-imately 10 per cent of our sales. The importance and share of new bioproducts generated in our pulp production will grow in the future.
ADDED VALUE THROUGH SERVICESThe Botnia product family also includes services and competence supporting customers’ compet-itiveness, which helps them make the most of our
Metsä Fibre’s pulp grades are an excellent raw material for board and paper. The Botnia
product family also includes services that enable our customers to get the greatest
benefits from our fibres.
IN COOPERATION WITH CUSTOMERS
products. The objective behind all our operations is to be the preferred supplier of high-quality bioproducts and services that create value to our customers’ business.
Our basic principle is to supply premium pulp at the right time. Added value for customers is generated in partnerships where we participate in the customer’s development work and stream-lining of operations through our expertise and networks. That is why we possess a better under-standing of their operations and needs than other suppliers.
We have productised our competence into packages of technical, logistics and sustainability services. Our technical service experts help customers fine-tune their production process and equipment while our logistics services provide customers with accurate information on pulp deliveries. At its most advanced, the partnership means creating innovations together with the customer. For example, the Botnia IdeaBooster concept enables us to brainstorm and process development ideas for the benefit of both our own and our customers’ business.
12 BIOPRODUCT MILL
FROM CONSTRUCTION SITE TO MILL
The bioproduct mill has been progressing
according to plan. The year 2015 was
characterised by construction, and in 2016
the focus will be on equipment installation.
Environmental matters receive special
attention at all stages of construction.
For the environment, it is essential that
the latest and best available technology is
used in all operations and equipment. The
most efficient pulp mill in the world is the
core of the bioproduct mill, also from the
perspective of environmental efficiency.
The suppliers of the main equipment are
Valmet Corporation and Andritz Oy.
The construction of the mill began with
excavation and pile driving work as well as
element installation. As construction
progresses, the site will be transformed into
a state-of-the-art mill complex. Equipment
installation began at the beginning of 2016
with the assembly of the digester and
erection of the pulp towers and the recovery
boiler’s 80-metre high steel frame. At the
time, approximately 20 per cent of the
constructions was completed.
As the installation work progresses, the
number of employees will grow from the
500 people at the beginning of 2016 to
2,500 by the end of the year. Trial runs will
begin in spring 2017, and the mill is sched-
uled to start operating in the third quarter of
the year.
BIOPRODUCT MILL 13
We are building the world’s most modern new bioproduct mill in Äänekoski. It will replace the 30-year-old Äänekoski pulp mill, which is Metsä Fibre’s oldest. The total investment of the project will be approximately EUR 1.2 billion, of which 40 per cent will be financed with equity capital and 60 per cent through loans.
The mill will produce 1.3 million tonnes of softwood and birch pulp per year, which allows us to address the increase in the global demand for pulp and to strengthen our leading position in the world’s softwood pulp markets. The investment is based on steady growth in the demand for northern softwood pulp worldwide.
BUILDING ON RESOURCE EFFICIENCYAt the core of the ecosystem formed by the bioproduct mill and its partner network is the next-generation pulp mill, which will produce new bioproducts, in addition to pulp and other traditional bioproducts and bioenergy.
Making full use of wood and production side streams has been the starting point in designing the mill. Therefore, the share of bioproducts manufactured from side streams will increase to 20 per cent of the mill’s net sales and continue to
grow gradually. The mill’s unique bioproduct concept will be a big step in the bioeconomy, which is growing in importance. As the use of fossil fuels decreases, the need for new bioprod-ucts and bioenergy will increase in the future.
WELL-BEING FOR FINLANDThe bioproduct mill is important for the national economy. It will increase the value of Finland’s exports by approximately EUR 0.5 billion, and its impact on the Finnish economy will be EUR 0.5 billion annually. The project’s employment impact during the construction period will be more than 6,000 person-years. Once production starts, the mill will provide jobs to 2,500 people in the direct value chain. The majority of them will work in wood harvesting and transport. The degree of Finnish origin of construction will be more than 90 per cent, and overall, the project will be more than 70 per cent Finnish.
Metsä Fibre is building a bioproduct mill in Äänekoski. This EUR 1.2 billion investment is the largest in the
history of the forest industry in Finland. The investment decision for this carefully planned project was made in
April 2015, and the mill is scheduled to begin operations in the third quarter of 2017.
BIOPRODUCT MILL: AN INVESTMENT WITH NATIONAL
SIGNIFICANCE
1.2 EUR BILLION
INVESTMENT
1.3 MILLION TONNES PER YEAR
PULP PRODUCTION
2,500 PEOPLE IN THE DIRECT VALUE CHAIN
EMPLOYS
Follow the mill construction live at BIOPRODUCTMILL.COM
14 NEW BIOPRODUCTS
A central principle in the design of the new bioproduct mill in Ääne-koski has been to expand the product range to completely new bioproducts. We will produce them ourselves and in the network of companies being established around the mill. This network will offer solid expertise in the markets of new bioproducts. So far, decisions
DEVELOPING NEW BIOPRODUCTS
PRODUCT GAS TO BIOFUEL FOR THE MILL
A decision has been made to build a bark gasification plant at the
bioproduct mill for making fuel for the mill. Gasification generates
product gas from tree bark for the mill’s lime kiln. As this renewable gas
replaces heavy fuel oil, the mill does not use any fossil fuels. Corre-
sponding technology is already being used on a slightly smaller scale at
the Joutseno mill.
VEHICLE FUEL FROM SLUDGE
EcoEnergy SF Oy will build a biogas plant at the bioproduct mill. It will be
the first in the world to use sludge generated in pulp production as a raw
material. The plant, set to be completed in 2017, will produce biometh-
ane, which can be used as vehicle fuel, among other things. The amount
of biogas produced per year will be approximately 20 GWh, equalling the
annual fuel consumption of approximately
1,800 passenger cars.
UPGRADING PULP INTO BIOPLASTIC
Metsä Fibre and Aqvacomp Oy have agreed on the production of biocom-
posites in connection with pulp manufacturing. The biomaterial, which
combines pulp fibre and plastic, can be used in the electronics and
automobile industries as a substitute for plastic, for example. The manu-
facture of the biocomposite will first begin at the production plant that
Aqvacomp will integrate to our Rauma mill at the beginning of 2017.
Aqvacomp is also exploring the possibility to build a bigger plant in Ääne-
koski once the bioproduct mill is operational.
DEVELOPMENT OF TEXTILE FIBRES
We are researching the manufacture of textile fibres from pulp. The
manufacture of wood-based textile fibres using environmentally friendly
method based on ionic liquid technology is a long-term research
process, which began in 2009 as part of FIBIC Oy’s research pro-
gramme. Alongside it, we have started a development project in coop-
eration with Itochu Corporation. The first garments produced on a
laboratory-scale are now ready and will function as a basis for consider-
ing a shift to a pilot-plant scale.
have been made on the manufacture of biocomposites, product gas and biogas in the mill’s ecosystem. Several other projects are progressing at the research stage in a consistent manner. Among these are converting odorous gases into sulphuric acid, the manufacture of new textile fibres in cooperation with Itochu Corporation and the upgrading of lignin.
*Current bioproducts
BARK*
PULPWOOD
PULP*
TURPENTINE* AND TALL OIL*
ODOROUS GASES
LIGNIN
SLUDGE
CLEAN WATER
DREGS AND ASHES
BIOENERGY*PowerProsess steamDistrict heat
GLAUBER SALT
PULP UPGRADING
Product gas from bark and sludge for the mill’s own use
Sulphuric acid and methanol from odorous gases for the mill’s own use
New bioproducts from lignin
Fertiliser and earth work material from dregs and ashes
New textile fibres from pulp
Biocomposites from pulp
Biogas from sludge for traffic fuel or the mill’s own use
New biofuels from bark, wood dust and energy wood
BIOPRODUCT MILL’S ENVIRONMENTAL PERFORMANCE 15
0%USE OF FOSSIL FUELS
240%ELECTRICITY SELF-SUFFICIENCY RATE
SUPERIOR ENERGY
EFFICIENCY
The bioproduct mill will have a
superior energy self-sufficiency
rate: it will produce 2.4 times more
electricity than it consumes. The mill
will annually produce 1.8 TWh of
electricity as well as heat, which will
increase the share of renewable energy in
Finland by more than 2 percentage points,
supporting the national goals for renewable
energy use.
ADVANCED ENERGY TECHNOLOGY
The mill’s high level of energy self-sufficiency is
based both on its size and on its highly advanced
technology in the steam-generating recovery boiler, the
lime kiln and other equipment solutions. The steam and
pressure values and temperatures in the recovery boiler
will be high, which better supports efficiency ratios and more
efficient use of fuels.
NO FOSSIL FUELS
For the lime kiln, traditional fossil fuels will be replaced with
renewable fuels made from bark through gasification. In doing so,
the bioproduct mill will not use any fossil fuels. Metsä Fibre has similar
technology in place at its Joutseno mill, but the gasification plant at the
bioproduct mill will be twice the size.
The bioproduct mill’s process water consumtion will be second to none in the world. For this reason, the emissions from the bioproduct mill will not affect the use of the surrounding natural waterways.
Its water cycle is largely closed, meaning that it will produce less waste water than traditional pulp mills. Its effluent treatment plant will also have more stages than the current one, and its modern purification technology will minimise the burden on waterways.
During the planning phase, a concept has been examined to convert the mill’s odorous gases into sulphuric acid for the production of tall oil, for example. The production of sulphuric acid would take the mill one major step closer to having a closed chemical cycle. The technique is not new, but Metsä Fibre is the first company in the world to examine its application at a pulp mill on a large scale.
Processes for the bioproduct mill in Äänekoski are selected based on energy efficiency, low water consumption and low emissions to air an. Even though its production capacity is almost three times higher, the mill will be able to operate within the environmental permit for the present mill. The mill will not use any fossil fuels.
BIOPRODUCT MILL’S SUPERIOR ENVIRONMENTAL PERFORMANCE
16 SUSTAINABILITY THEMES
SUSTAINABILITY AT METSÄ FIBRE
WE OFFER SUSTAINABLE CHOICESPRODUCTS AND SERVICES
• Turning renewable wood into sustainable, safe and recyclable products
• Providing customer-focused services and solutions
• Innovating for continuous improvement and renewal
WE BRING THE FOREST TO YOURAW MATERIALS AND SUPPLY CHAIN
• Promoting sustainable forest management, certification, biodiversity and multiple use of forests
• Enhancing sustainability in the value chain • Ensuring the traceability of raw materials
WE WORK FOR A BETTER CLIMATE AND ENVIRONMENTRESOURCE EFFICIENCY AND EMISSIONS
• Making efficient use of raw materials, energy and water
• Increasing the value of side streams• Maximizing the share of bioenergy• Minimizing emissions to water and air
WE CREATE WELL-BEINGSTAKEHOLDER ENGAGEMENT
• Ensuring ethical business practices• Improving safety at work• Assuring responsible management• Contributing to local livelihoods and society
Sustainability and environmental responsibility are part of our operations. Our products are safe and re cyclable. We use raw materials, energy and water efficiently and use the best available technology in production. We take care of the safety and well-being of our personnel.
METSÄ GROUP’S SUSTAINABILITY THEMES
SUSTAINABILITY THEMES 17
PRODUCTSAll of our products are safe and recyclable bioprod-ucts. Our main product is premium, safe ECF bleached pulp, which we manufacture at four mills in Finland. Our mills have certified product safety systems in place.
During pulp production, wood extractives are used to produce biochemicals, such as tall oil and
SUSTAINABLE FOREST MANAGEMENT
ENVIRONMENTAL EFFICIENCYOur objective is to continuously improve the envi-ronmental performance. The emissions from our mills are in accordance with the levels confirmed by the European Commission for best available tech-nology (BAT). For example, our significant achieve-ments in decreasing process water consumption is based on long-term work.
A considerable share of Finland’s renewable energy is generated in pulp production. Our mills produce the energy they need; we also sell electricity, heat and steam to extermal customers.
It is our principle to use wood raw material efficiently. The by-product markets are part of the circular economy, in which by-products are raw materials for new products and for reuse. Bark and sawdust generated in our production is used in energy production. The wood-based side streams that are not used for energy are utilised as fertil-isers, in landscaping or industrial raw materials.
SAFETY AT WORKOccupational safety is an integral part of daily management at Metsä Fibre. Our occupational safety management system is based on proactive work, which essentially consists of personnel safety observations, safety inspections and safety talks. Our goal is zero accidents, and to achieve this we are developing new ways to strengthen our safety culture.
STAKEHOLDERSPulp is one of Finland’s most important export products and pulp production will be profitable in Finland in the future as well. The majority of the cash flows in our operations remain in Finland. We employ approximately 850 people directly and create jobs for raw material and services suppliers. The employment impact of the construction of the bioproduct mill will be significant.
BIOENERGY AND BIOCHEMICALS ACCOUNT FOR
ACCIDENT FREQUENCY RATE (LTA1)*
* All lost-time accidents per million worked hours
OF OUR SALES
87%
10%
7.9
SHARE OF CERTIFIED WOOD
SUSTAINABILITY AT METSÄ FIBRE
turpentine. We also research the production of new bioproducts from pulp and side streams of pulp manufacturing.
and sustainable forest use to us and our customers. In all, 87 per cent of our wood raw material comes from certified forests. Approximately 25 per cent of the world’s industrially utilised forest reserves have been certified.
MATERIAL AND ENERGY EFFICIENCYPROCESS WATER CONSUMPTION*
CHEMICAL OXYGEN DEMAND (COD)
IN 10 YEARS* by product tonne
KG/T IN 2015
-30%
11.3
Metsä Group is responsible for our wood supply. It ensures the wood we use is legal and that the supply chain is acceptable and sustainable. We are always 100 per cent able to trace the origin of the wood we use.
Third-party forest certification signifies legal
18 ENVIRONMENTAL IMPACTS
We manufacture premium pulp grades from renewable and recyclable raw material. Our products help minimise the environmental impact throughout the upgrading chain, since we use raw materials, energy and water as effectively as possible and reduce emissions to water and air.
MINIMAL ENVIRONMENTAL IMPACT In 2015, we paid special attention to proactive environmental management. We react to devi-ations actively, minimising the environmental impact of our operations. Our several proactive environmental management tools include environmental observations, talks and investiga-tions, as well as methods for processing these systematically. In addition, we developed oper-ating methods for the management of environ-mental risks.
In 2015, our most significant investment in the environmental performance was replacing the odorous gas boiler in Rauma. The impacts will be demonstrated, in particular, in the air quality in the immediate vicinity of the mill in the form of reduced odour nuisance generated in disturbance situations.
CONTROLLING EMISSIONS TO WATER Smooth operations with minimal disturbances ensure that the environmental burden is under control. At our mills we have been carrying out systematic development work to improve process availability. This is manifested not only in
REDUCING ENVIRONMENTAL IMPACTSWe are improving the environmental performance of our mills by continuously developing our processes.
EFFLUENT FLOW M3/PULP TONNE
2011 2012 2013 2014 2015
50
40
30
20
10
0
LANDFILL WASTE KG/PULP TONNE, WET
2011 2012 2013 2014 2015
50
40
30
20
10
0
FOSSIL C02 EMISSIONS MILLION T
2011 2012 2013 2014 2015
250
200
150
100
50
0
2011 2012 2013 2014 2015
15
14
13
12
11
10
CHEMICAL OXYGEN DEMAND IN EFFLUENT (COD) KG/PULP TONNE
ENVIRONMENTAL INVESTMENTS, PULP MILLS EUR MILLION
2011 2012 2013 2014 2015
10
8
6
4
2
0
ENVIRONMENTAL IMPACTS 19
production efficiency, but also in the mills’ environmental performance.
The nominal consumption of process water has been reduced as part of our daily environ-mental performance management. We want to further improve our environmental efficiency by means of new online indicators that model the chemical oxygen demand (COD) generated by pulp production. The Waste water FOX indica-tor implemented at the Rauma mill, and to be next implemented at the Joutseno mill, has provided a new perspective to and understanding of how the COD load is generated and how it can be controlled.
INVESTMENT TO MINIMISE ODOURS IN RAUMA
Metsä Fibre invested EUR 5 million in
improving the effectiveness of the odor-
ous gas boiler and odorous gas systems at
the Rauma mill. The construction of the
boiler, which commenced in the spring
of 2015, was completed in December.
The boiler facility is a backup system for
odorous gas processing in production
disturbance situations and when shutting
down and starting up the mill’s production
process. During normal operation, the
odorous gases are combusted in the lime
kiln and recovery boiler.
The previous odorous gas boiler was
operating at capacity as production
increased. The new 20 MW boiler facility
has triple the power of the previous one.
The capacity of the new boiler is sufficient
for the mill’s current production and far
into the future.
Odorous gas emissions will decrease
with better recovery of odorous com-
pounds from the process and more
effective use in combustion than before.
In exceptional situations, the time to start
odorous gas processing is only one fifth of
what it was previously.
CORRECTIVE MEASURESDischarges to water from all our mills were in line with our permit conditions in 2015. By contrast, isolated deviations from the permit limits for emissions to air have posed challenges. At the Rauma mill, the permit limit for tempo-rary odorous sulphur compound emissions (TRS) was exceeded occasionally, and in Kemi, the permit limit for particle emissions from the recovery boiler was exceeded. As corrective measures, we have inspected the mills’ internal operating methods, running models and process conditions. In Joutseno, the previously challenging situation with lime kiln particles was successfully managed. The odorous gas boiler investment at the Rauma mill ensures operations in accordance with the permit.
In a development project implemented in 2015,
we created an operating method for utilising the
production side streams and sought new ways to
make use of the fractions. Together with our
partners, we use our side streams, such as bark
fractions, excess lime and the ash from the bark
gasifier and bark boiler, as effectively as possible.
For example, the lime fractions extracted
from the pulp process from time to time are
excellent as a soil conditioner. Annually, we
supply approximately 5,000 tonnes of excess
lime from the Joutseno mill for soil conditioning
purposes through a local partner. Ash from the
Kemi mill bark boiler and the Joutseno mill
gasifier is an excellent fertiliser for forests
returning valuable nutrients back to
the forest.
RECYCLING VALUABLE MATERIALS
20 ENVIRONMENTAL BALANCE
ENVIRONMENTAL BALANCE
JOUTSENO KEMI RAUMA ÄÄNEKOSKIMETSÄ
SVIRTOTAL
2015TOTAL
2014
PRODUCTION
Pulp t 657,907 585,402 602,480 506,853 - 2,352,642 2,257,389
Sawn timber m3 0 0 0 0 251,451 251,451 233,306
WOOD CONSUMPTION
Total wood consumption 1,000 m3 3,531 2,962 3,272 2,273 586 12,625 12,244
Certified wood % 88 97 83 91 47 87 87
EFFLUENTS
WASTE WATER
Process water volume 1,000 m3 16,782 15,009 14,724 12,136 360 59,011 58,721
Total suspended solids t 362 353 269 410 16 1,410 1,368
Chemical oxygen demand (COD) t 6,132 7,229 8,429 4,812 33 26,635 26,164
Biological oxygen demand (BOD) t 135 124 100 115 5.1 480 474
Phosphorus (P) t 3.7 5.7 4.5 4.9 0.03 19 21
Nitrogen (N) t 100 92 57 66 0.3 315 327
AOX t 104 63 64 51 - 281 270
AIR EMISSIONS
Sulphur dioxide (as SO2) t 321 158 103 670 0.1 1,252 1,063
TRS (as S) t 11 33 6 8 0 58 52
NOx (as NO2) t 870 1,327 868 940 21 4,026 4,079
CO2 from fossil sources 1,000 t 39 60 78 67 0.2 244 190
CO2 from biomass 1,000 t 1,354 1,393 1,196 919 20 4,883 4,822
Particles t 177 194 134 370 20 895 942
WASTE
Landfill waste t 7,009 3,700 7,303 10,864 130 29,006 32,962
Hazardous waste t 57 69 50 45 0.4 221 169
ENERGY
Wood based fuel use GWh 3,725 3,831 3,290 2,528 56 13,430 13,263
Fossil fuel use GWh 198 213 275 235 0.6 921 738
Purchased electricity GWh -274 -190 -168 -79 13 -698 -657
Purchased heat GWh -31 -438 -221 -117 0 -808 -719
EMISSIONS FROM NORDIC PULP MILLS 21
SPECIFIC EMISSIONS FROM PULP MILLS IN THE NORDIC COUNTRIES
Specific emissions from Metsä Fibre’s and other Finnish and Swedish mills producing bleached sulphate pulp are compared below. Metsä Fibre’s figures are from 2015. The other figures are from 2014 and they are based on the statistics of the Finnish Forest Industries Federation and the Swedish Forest Industries Federation.
CHEMICAL OXYGEN DEMAND (CODCR) KG/PULP TONNE
Metsä Fibre mills Other pulp mills in Finland Pulp mills in Sweden
–– BAT max.
Metsä Fibre mills Other pulp mills in Finland Pulp mills in Sweden
–– BAT max.
PHOSPHORUS (P) G/PULP TONNE
Jou
tsen
o
Rau
ma
Kem
i
Ään
eko
ski
80
60
40
20
0
Metsä Fibre mills Other pulp mills in Finland Pulp mills in Sweden
–– BAT max.
CHLORINE AND OTHER HALOGENS BOUND TO ORGANIC MATERIAL IN EFFLUENT (AOX) KG/PULP TONNE
Ään
eko
ski
Kem
i
Rau
ma
Jou
tsen
o
0.20
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0
Jou
tsen
o
Ään
eko
ski
Kem
i
Rau
ma
35
30
25
20
15
10
5
0
METSÄ FIBRE OY
P.O.Box 30
02020 METSÄ, Finland
Tel. +358 10 4612
www.metsafibre.com
www.bioproductmill.com
Cov
er: C
arta
Inte
gra
23
5 g
/m2. ©
Met
sä F
ibre
20
16
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