Bridge. n:o 1 | 2011
Toward Chemigateâ€™s First Summer. Chemigateâ€™s Customer Magazine.
Chemigate’s Customer Magazine.
n:o 1 | 2011
Toward Chemigate’s First Summer..............................................3 Development results in even better alternatives to synthetic products. . ........................................... 4 Chemigate continues to push the envelope in toppling rival latex-based binders......................................... 6 Chemigate optimizes VTT’s expertise.. ....................................... 8 Expanding to Europe with ACAT.. ............................................... 10 Finnamyl ensures continuous delivery of raw material to Chemigate.................................................... 12 Altia is Chemigate’s starch supplier – and a shareholder..................................................................... 14 Scirocco – New dry-modification line comes into operation this year. . ................................................ 17 Fingerpori........................................................................................ 18
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The Bridge is Chemigate Ltd’s customer magazine | Edition: 2 000 Editor in Chief: Tom Schauman, email@example.com Print house: Tammerprint Oy | Paper: tom&otto, StoraEnso Cover picture: Fotolia.com | Texts: Maija Mecklin and translations Sini Linteri Layout: Mainostoimisto ArtMocca Oy The next number of The Bridge will appear in December 2011.
photo: Juha Harju
Toward Chemigate’s First Summer
he spring has proceeded far and many of us have our thoughts on summer vacation already. At Chemigate, we will continue to work briskly through the summer season. Establishing a new company, although on a good old foundation, always requires a lot of effort. We are kept busy particularly because of the dry-modification plant under construction in Lapua and its planned start by the end of this year. In spite of this, we hope that everyone is able to spend some time resting and recharging batteries. Even before we bought the business last autumn, we made the important decision to invest in new production technology. The size of the investment is around 10 million euros, and with it we can move from wetmodification towards dry-modification. The most important advantages of the new, modern production technology are its suitability to a wide array of different raw material bases, low energy consumption and almost effluent-free performance. This lays a foundation for the development of our green and sustainable operation – something that is highlighted in our other functions as well. You can read more about the new line on page 17. We have operated in the starch business already from the 1970s and have a strong know-how and commitment within our organization. Both characteristics are needed when serving the paper and board industry with its changing demands. Cooperation with VTT (Technical Research Centre of Finland) supports our know-how and development work. Please have a look at the cooperation on page 8. Market conditions changed significantly during the first couple of months of our operation; a poor potato crop resulted in a shortage of potato starch all over Europe, and the prices of cereals rose to exceptionally high levels at the same time. Three main factors – partnerships with starch producers Altia, Amilina, Finnamyl and Lapuan Peruna formed over a long period of time, our application of expertise and flexible production – helped us to find new and competitive solutions for the paper and board industry. These solutions were of great benefit to some paper mills in overcoming the problems caused by poor availability of potato starch. This experience makes us even more ready to face the challenges following changes to the subsidy system in 2012, of which you can read more on page 12. For this publication, we have put together a substantial information package of both our new products and our partners. I hope you will take in much from it, whether you are an old acquaintance or a new one. Towards a bright summer, Seppo Lamminmäki Executive Director
■■ Seppo Lamminmäki, CEO, firstname.lastname@example.org
photos: Henri Ilanen
Development results in better
alternatives to synthetic products
Chemigate elevated starch-based polymers to the forefront of its development work in coordination with its new ownership arrangement. Raisabond and Raifix guarantee quality and stand out for their eco-friendliness. What else can they offer now and in the future?
hen Chemigate was established in autumn 2010, starch-based biopolymers were immediately elevated to the forefront of development. These products were not strategically important to the former owner. Chemigate on the other hand wants to offer a strong alternative to synthetic products and is investing in starch-based polymers. Raisabond’s strength-increasing chemicals and Raifix fixatives are both FDA approved starch-based biopolymers that can be used to replace synthetic oil-based products. — — In the current world, we must search alternatives for oilbased products for environmental reasons. In certain branches finding an alternative is downright essential since the use of synthetic products is or will be limited, says Chemigate’s Product Manager Markku Nurminen. Therefore these products are back in leading position of product development after an intermission of several years, and there is intent to develop them further. The objective is simple: to offer better products to the paper industry and others. In the paper industry, this would mean better paper with improved cost-effectiveness. Raisabond and Raifix also offer a natural alternative to synthetic polymers in other industries such as effluent processing and the mining industry.
Raisabond gives strength Raisabond is a special strength chemical used alongside starch or on its own to improve the strength and printability of paper. By using Raisabond as a strength additive, the paper manufacturer can optimize his costs by using the most economic fibers as raw material or to raise the filler content.
Raisabond improves the paper properties and makes production more effective. The product family of cationic starch-based polymers aims to increase strength, reduce dusting and linting, improve print quality and improve the effectiveness of ASA emulsification. Mr. Nurminen emphasizes that production will have its share of Raisabond’s positive effects. When using Raisabond, modified wet end starches function more effectively and the runnability of paper machines and the control of white water system are improved.
Ease of use and the right dosage guarantee success A good product does not work if it is difficult to use. Therefore, Raisabond needs only dosage and possibly dilution. The products are easily manageable biopolymers delivered in liquid form. — — We guide our customers in choosing the right product and we find the best dosage point together. These products are f lexible in terms of dosage and the dosage point is chosen according to the intended effect of the product; thus we gain the best dry strength, the best possible overall chemical effectiveness and cost-effectiveness, Mr. Nurminen assures. Product selection starts with becoming familiar with customer’s process. When necessary, Chemigate makes measurements and tests in laboratory scale or with pilot machines to find the best combination. Chemigate’s specialists have long-term experience with different products and customer processes, which facilitates selection of the right product.
■■ In the current world, we must search alternatives for oil-based products for environmental reasons. In certain branches finding an alternative is downright essential since the use of synthetic products is or will be limited, says Chemigate’s Product Manager Markku Nurminen.
Will contiue on the next spread. the
Interfering substances clamped down with Raifix Raifix fixative is an excellent aid in removing interfering substances. Their elimination is important in improving the effectiveness of the paper machine, and the Raifix product family aims to do exactly that. Raifix attaches interfering anionic substances to the fiber and keeps white water systems cleaner. Consequently, deposit build-up is decreased and the paper machine can be operated longer without clean up or breaks. Raifix improves paper runnability and the efficiency of other chemicals, resulting in better paper with smaller production costs. —— Similar to Raisabond, Raifix products are easily manageable biopolymers delivered in liquid form, says Mr. Nurminen. Both products function in a wide pH range, and their cationic level does not change according to pH, as in the case of many synthetic products. These products are efficient because their retention is good even in closed systems. One of the unique properties of Raisabond and Raifix when compared with synthetic polymers is their ability to form a hydrogen bonding. Not all interfering substances are anionic, and even those that are anionic invariably have functional groups which are capable of hydrogen bonding. Therefore hydrogen bonding has both strength and anionic trash collector properties. Products are manufactured at Chemigate’s Kaipiainen plant, from where distances to the biggest forest industry locations are short and connections excellent. ■ Raifix and Raisabond product families for efficient control of wet end chemistry. Raifix and Raisabond are patented cationic starch-based biopolymers. Raifix and Raisabond product families: ■ Are low- to high-cationic starch-based polymers ■ Come in a ready-to-use liquid form ■ Have a shelf life of 6 months ■ Have a low impact on overall system charge ■ Are FDA-, Bfr- and China GB9685-2008-approved
Chemigate continues to push the envelope in toppling rival latex-based binders Chemigate’s Raisamyl coating starches offer a sustainable alternative to latex-based coating products. However, using starch as binder is a meticulous process in which all the pieces need to fall into place. Chemigate is constantly creating new solutions for successfully performing this process in the best possible way.
—— We have solutions to the challenges posed by starch’s properties, but we must evolve the cost-effectiveness of the process. The more starch is modified, the higher the costs, Mr. Bruun explains.
The perfect coating compound is an appropriate combination of pigments, binders, stearate, optical brightening agents (OBAs) and cross-binders; and this is also the core of the challenge. The substances must function together in order for the coating compound to work in fast machinery. This requires good runnability without compromising the binding strength. —— Problems arise if too much water is absorbed into the base paper from the coating compound. Coating does not fulfill its purpose on the surface of paper or board in this case. If the coating compound contains too much starch, then the film becomes too hard and the paper surface may rupture; for example at a paper cover’s folding point, Mr. Bruun says. Specificity and know-how – key elements in the competition with oil-based alternatives The construction of a functional coating starch is based in skilful modification. — — The purpose of modification is to make sure that the starch polymer interacts well with other coating components and optimal surface strength is obtained, Mr. Bruun states. Another important attribute is the high quality of the product. One measure of quality is uniform product properties from batch to batch. Chemigate has a good foundation to assure uniform product properties: premium modification technology and its correct utilization are the makings of everything. In addition, quality control and excellent process know-how are key elements. — — As stated earlier, proper softness can already be obtained; but the next stage is to get there with more reasonable costs. A new dry-modification production line will be completed this year, offering new tools for developing our coating starches further, Mr. Bruun says. ■
hen used in coatings, starches are more than just binders as compared to their latex-based rivals. Latex serves as a binder and always requires an extra substance that controls the coating compound’s rheology whereas starch-based products function as binders but also control the coating’s fluidity properties. There is a distinct trend in the use of binder substances – more and more often, latex parts tend to be replaced with starch-based binders. — — Chemigate’s Raisamyl products are modified natural polymers that are suitable for paper and board coating. Starch is the only available non-synthetic binder, and our product range offers starch-based binders for different kinds of paper coating compounds. They leave an exceptionally green carbon footprint because starch consumes more carbon dioxide than it produces, reports Chemigate’s Research and Development Manager Stig-Erik Bruun.
Raifix is a anionic trash fixative designed to give: ■ Improved runnability and paper quality ■ Cleaner water circulation ■ Improved retention and drainage ■ Less fluctuation in raw materials
Cost-effective solution to achieve rigidity
Raisabond is designed to give: ■ Improved strength and better paper quality ■ Efficient ASA emulsification ■ Improved retention and a cleaner process ■ Improved performance of other chemicals ■ No loss of machine speed or opacity ■ Reduced linting and dusting of paper in printing ■ Flexible film with no cracking effects
Mr. Bruun states that the starch-based binders have their own challenges, as starch forms a rigid binding film. —— Though the advantage of this feature is that it gives paper and board posture and rigidity, the stiff quality of binding film is also a limitation. This is a challenge we work with all the time. Starch-based binders are used more and more, but this should not result in compromises in paper quality. the
The hunt for a perfect coating recipe
photo: Henri Ilanen
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Chemigate has for a long time collaborated with VTT in research concerning both small experiments and larger development projects. A lot of resources were put into the development of a dry modification line, which will start operating at the end of this year.
emand for products manufactured from renewable materials is growing because of a wish to replace oil-based products with more ecological alternatives. For Chemigate, this is a positive challenge that is answered with constant product development either by Chemigate’s own personnel or together with VTT (Technical Research Centre of Finland). —— VTT is an excellent partner in research and product development. They have a group of chemical experts with particular specialization in starch. This way we have access to a huge amount of know-how and expertise. In addition, VTT has a trial plant for different pilot experiments, praises Research and Development Manager Stig-Erik Bruun.
Rehearsing dry-modification The biggest ongoing research project at the present moment is related to Chemigate’s new dry-modification production line, of which you can read more on page 17. Hanna Sinilehto, Operational Supervisor at the VTT trial plant, has been testing out the new technology
photo: Henri Ilanen
■■ According to Senior Research Scientist
Hannu Mikkonen, VTT’s strength is the fact that they can unite research and pilot tests in Rajamäki. the
■■ Rajamäki unit was passed from Primalco to VTT in the 1990s with both machinery and skillful personnel. Therefore starch is such a strong research topic nowadays.
intensely for the past year together with other personnel. —— We have tested the machinery and looked for the best possible formulations, says Ms. Sinilehto. Ms. Sinilehto is satisfied with the process development test results. The goal is to have everything so thoroughly evaluated and studied in the trial environment that production can start almost right away when the new production line is finished at the end of the year. —— I would say we have proceeded as planned. Of course new things to improve emerge along the way and even new development ideas are formed; but that is the purpose of trial use. We have taken on development targets boldly and developed them further all the time, she tells without revealing closer details just yet.
VTT is familiar with starch VTT’s research institution in Rajamäki is a true expert on starch. Senior Research Scientist Hannu Mikkonen says VTT’s expertise on the topic of starch has a long history. —— Our unit in Rajamäki was acquired from Primalco in the 1990s. During the transaction, we received both machinery and skilful personnel. That is why starch is such a strong research topic nowadays. Expertise, experience and equipment enable the implementation of complex research projects that cover the entire spectrum: from molecule research and reaction mechanisms to process application development. — — Our varied and unique pilot- and trial devices as well as modeling tools serve industrial customers. Our strength is also the fact that we can unite research and pilot tests. These are the strengths we utilize in cooperation with Chemigate as well, says Mr. Mikkonen. ■
Presently, around 90% of Chemigate's net sales come from the Nordic countries and Russia. Next Chemigate wants to enlarge its Raifix and Raisabond business territory to cover the entire Europe. As Chemigate cannot succeed alone in this undertaking, it has chosen an acknowledged and respected partner: ACAT.
CAT is a distributor specializing in chemical products used for example in the paper industry. Founded in 1994, ACAT is today a well-known company which chooses carefully the products it represents. Chemigate and ACAT are now entering into a contract for the distribution of Chemigate’s products around Europe. — — Since the beginning, our main aim has been to offer products and technologies of a high technical standard to the market. We do this in deep cooperation with our customers offering them a high service level via our highly skilled and experienced team of paper technologists, states Manfred Zabl, Managing Director of ACAT.
A shared background encourages trust in Chemigate ACAT has recently undergone a major international expansion and recruited many people with a background at Ciba, the former owner of the Chemigate business. — — We therefore know the Raisabond and Raifix product portfolio very well. Knowing and trusting the Chemigate personnel because of our shared background also helped us make the decision to start the delivery of Chemigate’s products, explains Howard Johnston, ACAT’s Global Sales Manager. Mr. Johnston believes that ACAT can open many new doors for Chemigate. — — We are very well connected to our market. High competency together with customer intimacy leads us to long-term supply and secure customer relations, he states. Chemigate’s products also fit well into the ACAT product portfolio. Mr. Johnston expects ACAT to be able to grow and develop the business for more environmentally sensitive products and applications, as well as offer alternatives to oil-based products. Mr. Zabl agrees with him. — — We want to continue to bring more and more innovative
Expanding to Europe with ACAT
■■ ACAT’s philosophy is to supply products that require a high level of technical competence and customer intimacy. ACAT employs people that possess long-term experience and knowledge of the paper industry and add value through their ability to apply and fully optimize the chemistry of paper machine.
technologies to the market in order to optimize the processes in many aspects. With Chemigate we will have a partner of similar nature and philosophy and with wide research and development skills which enables us to gain a new generation of wet end chemistry, based on customers’ demands, says Mr. Zabl. Mr. Zabl believes in very fruitful future cooperation of the companies and expects many new developments on a high technical level.
of challenging projects without these factors. The security of applications’ added value could hardly be warranted without continuity in terms of servicing ongoing projects, Mr. Johnston continues. All ACAT group enterprises are owned by Applied Chemicals International plc Basel/Switzerland at 100 %. Applied Chemicals International is one of the few independent and private firms in the field of chemical trade and services in Europe. ■
An overview of ACAT’s background ACAT’s philosophy is to supply products that require a high level of technical competence and customer intimacy. ACAT employs people that possess long-term experience and knowledge of the paper industry and add value through their ability to apply and fully optimize the chemistry of paper machine. —— We invest the most important capital into our customers’ enterprises: innovation, experience, enthusiasm and the eagerness with which our employees work. We could not be such a good partner for our customers and suppliers over the course the
ACAT was founded in 1994
ACAT’s five subsidiaries are based in Vienna, Basel, Budapest, Milan and Bradford
ACAT is represented in Germany, France, Netherlands, Spain, Russia, Sweden, Norway, South Africa and entire Asia
the company has around 90 employees
company net sales amount to EUR 40 million
ensures continuous delivery of raw material to Chemigate
Potato starch manufacturer Finnamyl used to be a part of the same company as the starch modification unit; but when Chemigate was established, Finnamyl and Lapuan Peruna – of which Finnamyl has main ownership – were sold to another owner group.
ow both Finnamyl and Chemigate operate at the same site in Lapua, and the delegation of work is clear: Finnamyl manufactures potato starch and Chemigate refines starch into products used in the paper industry. Although EU subsidies are tightening, Finnamyl and Lapuan Peruna ensure sufficient availability of potato for starch refinement with a reasonable price in the future as well.
Toward a closed circle
Intensive cooperation brings synergy Chemigate is Finnamyl’s biggest individual customer since it uses the Lapua plant’s entire potato starch production and a considerable portion of the Kokemäki plant’s production. Operating on the same site brings a number of synergy benefits such as the prospect of
partially utilizing common work resources and having a very short delivery distance. Another positive aspect is shared development work. Finnamyl develops cultivation of starch potato but it also invests in by-product processing. The target is to maintain potato starch’s position as a raw material in paper industry modificates.
— — Right now we are innovating ways to use potato fruit juice (cell sap) and we have plans for a related investment, reveals Ossi Paakki, Executive Director of Finnamyl and Lapuan Peruna. Fruit juice is a major cost item in primary production, as 70 % of a potato is water. This cost could be changed into profit.
—— Useable energy would be created if the solution is a biogas plant. But then again, if we succeed in developing a concentrated fertilizer from potato fruit juice, then the outcome could be a closed circle where potato fruit juice is transformed into fertilizer that is used in growing potatoes. Both development projects mentioned above mean lengthening the potato’s life cycle and are therefore ecological. However a potato is ecologic to begin with: it produces starch doubly in comparison with its cereal-based rivals, and its efficiency in exploiting fertilizer nitrogen is a full 100 percent.
Potato cultivation also pays off in the future
real. On the other hand, the cultivators of starch potato in Finland are to be paid a hectare-specific subsidy similar to current subsidies at least in 2012 and 2013. Subsidies paid according to cultivated hectares decrease entrepreneur’s risk, as the amount of subsidy is the same regardless of crop. —— The subsidy compensation ensures production continuity and guarantees our delivery of potato starch to Chemigate without interruptions. One reason for the continuity of compensation is the potato's light carbon footprint. If we manage to create new applications for potato and utilize an even larger part of the material, then potato’s competitiveness will gain strength in the long run as well, Mr. Paakki assures. ■
The manufacture of potato-based starch was passed over to Finnish ownership in autumn 2010, offering a possibility to develop it and reassert its future in a situation where EU subsidies are changing, and not only in a favorable direction. This is the last year that starch potato will be produced within a quota system. New limitations also mean changes in subsidies, which will weaken potato starch’s competitiveness in relation to cethe
If we succeed in developing a concentrated fertilizer from potato fruit juice, then the outcome could be a closed circle.
For further information: http://www.finnamyl.fi
is Chemigate’s starch supplier – and a shareholder
full operating rate is as much as 190 million kilograms, and starch production is approximately half of this. What kind of development work are you doing? — — Together with Chemigate, we are searching for additional application areas for starch. Chemigate’s investment in a new dry-modifying production department enables us to intensify product development even more.
photo: Altia © Petteri Kokkonen
Altia’s Koskenkorva plant is the biggest individual barley consumer in Finland, with ethanol and starch as its main products. When BASF set out to sell its starch business, it was Altia’s priority to ensure that the starch modification process remained in Finland. Altia therefore settled on partial ownership of Chemigate and now supplies the company with unmodified starch for further processing.
photo: Altia © Petteri Kokkonen
binders is that it is a renewable natural resource and economic.
Why did you wish to maintain starch production in Finland, Altia Koskenkorva Plant Director Antti Snellman? —— Finland’s forest industry is a significant starch consumer, and we wanted to offer the industry a possibility to use domestic starch produced nearby also in the future. How is barley-based starch used in the paper industry? —— Starch is used as a binder in paper and board manufacturing. Unprocessed barley-based starch is used in multilayer board as a so-called spray starch, and modified starch is used in internal- and surface sizing and as a binder in paper coating. The advantage of barley starch in comparison with competing oil-based
How important is “Finnishness” to Altia? —— Starch is the second mainstay in our operation besides ethanol, and we also sell starch to our brewery customers in Finland to be used as a substitute for malt barley. We are committed to using domestic barley in some of our well-known alcohol products. Altia’s Koskenkorva plant is the biggest starch plant in Nordic countries and the only barley starch plant in the world. Principally all our raw materials originate from within a 100-kilometer radius around us, and therefore we can promise to offer local barley in the full meaning of the word. Has the new ownership arrangement changed things at Altia? — — Yes. Along with the ownership change, Altia received two places in Chemigate’s administrative board. The advantages are undeniable. Both companies’ operations are now more transparent and we are familiar with each other’s businesses and interests, so we are able to perform even more intensive development work. Cooperation with Chemigate establishes a better foundation for strengthening the Koskenkorva plant’s starch- and feed business. At the same time, Altia’s role in securing the continuity of Finnish barley cultivation is strengthening. Annual use of barley at the
How important is Chemigate to Altia? —— Chemigate is very important to us. Chemigate buys two thirds of the Koskenkorva plant’s starch output. The distribution of starch particles by size is wide. Small particles are channeled into ethanol production, whereas Starch A used by Chemigate includes starch particles with large molecules. In this fractioning, the barley proteins are channeled into the ethanol process; therefore Starch A used in the forest industry and breweries is very clean and homogenous. As such, we can utilize both fractions efficiently. And what does Altia mean to Chemigate, Business Director Tom Schauman? —— Altia is a key partner for us since they deliver approximately half of all the starch we use. To us, partnership with both Altia and Finnamyl enables reliable and high-quality supply of raw materials for further processing, and the capacity of Altia’s Koskenkorva plant ensures undisturbed availability of the product. ■
Altia is a leading wine and spirits company in the Nordic and Baltic countries. Altia produces, markets, sells, imports and exports alcoholic beverages in its market area. The annual net sales is 500 million euros and the amount of personnel is approximately 1 200. Altia’s own brands such as Koskenkorva, O.P. Anderson, Renault and Skåne Akvavit have a strong market position and a long heritage to cherish.
from Kosk enkorva Pl a nt.
New dry-modification line comes into operation this year
Chemigate has invested in a starch dry-modification line in Lapua. In the future, both cereal- and potato-based starch will be modified effectively in terms of costs and energy consumption in the new process.
roduction Manager Harri Heikkinen explains that in comparison with wet-modification, the new production line saves one working phase in the process because we do not have to dry wet starch. —— This naturally saves time, but above all it saves energy. The list of process benefits is long: The process is continuous so it rolls non-stop from beginning to end. All raw materials can be used, from barley to potato and from corn to tapioca – including raw materials which are difficult to use in the current wet-modification system because of drying process limitations. Dry modification makes the use of raw materials more effective, and therefore the loss of starch and chemicals is smaller.
Production effectiveness and environmental perspective in harmony Cost-effectiveness and ecological thinking were Chemigate’s main motivators when investing in dry-modification. —— This increases the effectiveness of production, enhances our capacity and offers a possibility to launch a new generation of starch products in the paper and board industry as well as expand into new lines of business, says Mr. Heikkinen. Ecological thinking does not suffer when production is made more effective; quite the contrary. Dry modification decreases the environmental impact considerably. The energy used in drying is saved, and in adWill contiue on the next page.
dition barely any chemical-bearing sewage is formed at all in dry-modification.
Carefully prepared plant is integrated into the current facility Dry modification is a well-known technique abroad, but Chemigate’s dry-modification plant will be the first one in Finland. Almost 95 % of starch applications used in Finland’s forest industry are modified, and Chemigate’s production plants are the only ones modifying starch in Finland. —— We have prepared this investment for several years and familiarized ourselves with the technology. The investment cost of around 10 million includes building the new production building and the machinery used in dry modif ication, Mr. Heikkinen reports. The new building is erected next to the current plant, integrating the new functions with the old. This brings many benefits. According to Mr. Heikkinen, Chemigate
will be able to control both production plants from the same control room and utilize existing warehouses for storing raw materials and finished products.
Thorough research makes producing simple Chemigate has scheduled completion of the new plant for the end of 2011. During the past year, the production process has
been studied in close cooperation with VTT (Technical Research Centre of Finland), and the search for most suitable production recipe was made possible with the help of VTT’s pilot plant. — — The pilot plant enabled us to determine the right combination of chemicals. The recipe has been adjusted according to the research results and is now in such a good condition that the production should start less than a month after the new plant is completed, Mr. Heikkinen promises. ■
Fingerpori P –aperless Office HEREINFINGERTURKU ScIENCE CENTER WE CAN PROUDLYPRESENTAPAPERLESSOFFICE.
Scirocco. Production effectiveness and environmental perspective in harmony.
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Chemigate’s Customer Magazine.