METSÄ BOARD MAGAZINE 1/2012

STAKEHOLDER MAGAZINE 1/2012

RENEWAL

METSÄ BOARD – STRONGER THAN EVER We have tirelessly developed our paperr boards, production processes and services to support our customers’ businesses.

In recent years we have increased our carr tonboard significantly in response to customer demand, with the latest capacity increase of 30,000 tonnes per year being implemented at Äänekoski mill in May 2012. We have also renewed our paperr board portfolio: at the beginning of this year we launched the new double-coated Kemiart kraftliner grades, Graph+ and Lite+. In autumn 2012 we expect to start up the new biopower plant at Kyro, which will contribute to an annual reduction in CO2 emissions of 100,000 tons – equivalent to the annual emissions produced by approximately 60,000 cars.

At the same time, we are improvr ing our service level with the new cartonboard sheeting operations at Äänekoski, commissioned in March 2012, and those in Gohrsmühle,

where the new facility is expected to be opera operational in autumn 2012. Furthermore, we are developing our services to enable us to offer fit-for-purpose solutions for our custo customers’ needs.

No Now is also the time to further streng strengthen our R&D and drive the business fforward based on new ideas from our close cooperation with customers. To help us ach achieve this goal, we opened a new R&D centre at Äänekoski. It focuses on research that will w lead to improvements in our current paperboard p products and on developing new technologies and raw materials th that will drive advances in paperboard produ products. We will work on specific win-win projec projects with our customers.

Thi This issue is being published prior to the D Drupa 2012 fair. At the last Drupa fair, in 2008, M-real Corporation participated – a company that concentrated on the fine fin paper business. Following our successfu cessful restructuring and rebranding, the strong paperboard company Metsä Board will attend a the fair. At Drupa 2012 we will showcase sh how our ecological and safe paper paperboards contribute to the success of our cu customers’ brands. We will also present the C Chromolux product range and the Modo business reels.

We have now taken the final steps in the strate strategic review of our paper business. The elimin elimination of the losses of our paper business w will make us much stronger going forwa forward. Although our focus is now on paper paperboard, developing our other remaining paper pa operations will continue to be impor important.

Me Metsä Board is the European leader in highhigh-quality ecological paperboards. We believ believe that as a part of Metsä Group’s new comm common identity, we are able to further streng strengthen our visibility in the market. To find out o more about this new identity and why it i makes us stronger, please turn to page 7.

7 I ho hope you enjoy reading the first issue of Metsä Board Magazine.

Mikk Mikko Helander CEO, Metsä Board 2

m-real m-re eal magaz magazine m gaz zine | issue issue 1 # 2012

our image p. 7 New identity, SAME ROOTS

services p. 8

born again p. 4

Up, close and PERSONAL

Strength through RENEWAL

all together p. 6 creating real value p. 17

Making this ISSUE

sustainability p. 14

Getting the most from PACKAGING

Understanding PRIORITIES

roadmap to the future p. 19 The world in 2050

packaging luxury p. 20 MOUVEMENT INFINI’S new creation

RENEWAL

high-flying origami p. 22 Our stand at the DRUPA FAIR

aesthetics p. 26 MORE than meets the eye

reliably distinctive p. 30 CHROMOLUX leads the way

investments in renewal p. 34

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Follow our TIMELINE

news p. 32

CONTENTS

Read ALL ABOUT IT

METSÄ BOARD MAGAZINE, issue 1/2012 Metsä Board, P.O. Box 20, FI-02020 Metsä, Finland, www.metsaboard.com, magazine@metsaboard.com. Publisher: Metsä Board, Communications Editor-in-Chief: Juha Laine VP Investor Relations and Communications Managing Editor: Tytti Hämäläinen Editorial Board: Charlotte Dickens, Tytti Hämäläinen, Juha Laine, Nicole Lowartz, Ritva Mönkäre, Susanna Siira Production and Graphic Design: Otavamedia Customer Communication, Helsinki, Finland Team Leader: Jaana Pakkala Producer: Maija Kajanto and Taru Virtanen Graphic Design: Katri Nietosjärvi and Riina Walli English language editing: TenFour Communications Oy Translations: AAC Global Oy Printed by: Erweko Painotuote Oy Metsä Board Magazine (15,000 copies) appears in English, French, German and Russian (only digipaper-format). All magazines are available at www.metsaboard.com.

Opinions expressed in this publication are not necessarily those of Metsä Board.

ISSN: 1797-1209

PAPER TRAIL – WHAT WE ARE MADE OF Cover: Chromolux 250 g/m2 Interior: Galerie Art Silk 115 g/m2

PEFC/02-31-120

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TRENDS

TEXT: CHARLIE BASS AND SATU JUSSILA PHOTOS: SHUTTERSTOCK

TRENDS

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Strength through RENEWAL ature is constantly renewing itself: In spring, trees sprout new leaves, animals shed their winter coats, and young seedlings reach for the sky.

Renewal is, in fact, all around us. In life, renewal is a refreshing and invigorating experience: starting a new job, renovating a cherished home, getting a new haircut, or even enjoying the feeling that a new outfit can bring.

Renewal is creation, reinvention and improvement all rolled into one. As Benjamin Franklin said, “When you’re finished changing, you’re finished.” Renewal is essential. It sets us on the right path for the future and

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helps prepare us for the challenges that lay ahead.

At Metsä Board, our new name and identity are only one part of our renewal process. We’ve worked extremely hard to transform ourselves from a paper company to a profitable paperboard company. We’ve streamlined and invested in our operations with the aim of becoming an even more innovative business, focused on delivering high-quality, sustainable products and services.

Maintaining a close dialogue with our stakeholders is vital in our renewal. One example of this dialogue is What Future? survey, presented on the next page.

tarting in April 2011, Metsä Board’s sales and marketing team conducted an extensive survey of over 270 stakeholders in 21 countries across Europe. The purpose of What Future? survey was to get a better understanding of how paper consumption will change from 2011 to 2013.

“By sharing the findings of this study with our strategic customers, we can better prepare for future demands through an open and comprehensive dialogue,” says Stefan Tschumi, Commercial Director Business Reels, Metsä Board Paper and Pulp. “It’s important that we base our strategic decisions on facts, not gut feelings.”

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Through understanding

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he results of the survey indicate that consumption in Metsä Board’s traditional end-use segments is expected to decrease considerably for uncoated wood-free papers.

“The major driver is digitalisation. We are seeing that end users, for example the banking, insurance and telecommunications sectors, will increasingly send all types of forms and reports via electronic media,” says Tschumi.

According to the estimates in the survey, the biggest decrease in demand will be in the Nordics and the United Kingdom, whereas eastern Europe will experience a small increase over the same period.

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he survey also shows that channels, for example printers and converters, are more focused on surviving in shrinking markets rather than investing in innovation. “Channels believe they can keep production levels steady if they improve their price and performance. End users, by contrast, see print as a cost they are looking to scale back,” Tschumi explains.

“This market study enables us to have constructive discussions with our customers about future setups. We want to share our ideas on solutions that can help our preferred partners remain competitive.”

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TEXT: TARU VIRTANEN

Cover illustration

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MAKING OF Pa p

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he cover of this issue illustrates springtime in the forest. The artwork, created by Finnish illustrator and graphic designer Ilja Karsikas, is printed on 250 g/m² yellow Chromolux cartonboard.

“The special material chosen for the cover made this project both interesting and challenging. I wanted to give the material space by using simple tree elements with only a few colours,” Karsikas says.

Karsikas is known for his strong use of colour and for creating magical atmospheres with his illustrations. The yellow and green shades bring a bright, fresh spring feeling and also closely reflect Metsä Board’s new brand colours.

You can admire another of Karsikas’ illustrations on pages 34–35.

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M TH AK IS IN IS G O SU F E

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Styles & Colours

TABLET TIME ello to all of you reading this issue on an iPad or Android tablet! We hope you enjoy the new format. In the first tablet version of Metsä Board Magazine you can read highlights from the 1/2011 and 2/2011 issues, as well as all the articles in this issue. You can download the app from either the App Store or Google Play or by following the links on our website at www.metsaboard.com.

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ransformation – taking something and turning it into something totally different. This was the starting point for this issue’s Styles & Colours, where delicately folded pieces of paperboard are transformed into flying birds. We look forward to meeting you at Metsä Board’s stand at the DRUPA fair in Düssseldorf, Germany from 3–16 May, where you can experience these beautiful paperboard birds flying above you!

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TEXT: TYTTI HÄMÄLÄINEN PHOTO: METSÄ BOARD

A BOOST TO VISIBILITY Both Metsä Board and the Metsä Group as a whole have new names and corporate identities.

Metsä Board’s new name and identity represent the final stage in a restructuring based on the company’s strategy. tandardising Metsä Group’s names and identities generates substantial added value for Metsä Board and its stakeholders. The change increases the company’s market visibility and projects it into the same class as its competitors – to major international players.

Metsä Board’s new name and identity reflect a company that is strongly focused on high-quality ecological paperboards, and which is innovative, responsible and, as part of a unified Group, even stronger

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than before. Although the focus is on board, developing paper operations will continue to be important.

“We have worked tirelessly in recent years to transform ourselves from a paper company into a profitable paperboard company. Our structural transformation is now at a stage where we also want to communicate it through the company name,” says Metsä Board CEO, Mikko Helander.

The new logo – consisting of the company name, Metsä (forest in Finnish) and the head of a moose nobly holding a forest

on its antlers – and the new corporate identity communicate that Metsa Board is a responsible forest industry company that respects its roots and which is continuously developing.

“Some might recognise our new logo as a modification of the one used when we were known as Metsä Serla, from 1986 until 2001,” Helander points out.

Find out more about the new Metsä Board and Metsä Group visual identities at www.newmetsa.metsagroup.com.

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A MORE INSIGHTFUL

JOURNEY Metsä Board gets up close and personal with its services.

We have divided the customer journey into small pieces so that customers can choose the pieces that suit them the best.

TEXT: LENA BARNER-RASMUSSEN PHOTOS: ALIISA PIIRLA AND METSÄ BOARD

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METSÄ BOARD HAS NOW MADE THE PROCESS OF BUYING CARTONBOARD EASIER THAN EVER BEFORE.

hen specifying packaging materials, piecing together just the right path to the perfect product relies on expert knowledge and a clear vision of the final goal. However, when ordering cartonboard to make product packaging, customers don´t necessarily know what they need, or even what the available options are.

To address this issue, Metsä Board has now made the process of buying cartonboard easier than ever before. By conceptualising its products and services, the company is aiming to become even better at offering exactly what its customers need in exactly the right volumes.

The need for service concepts is the result of an evolution in the business. For the last few years, demand for Metsä Board’s products has surpassed supply. One way of addressing this challenge is to increase capacity; another is to package products and services into suitable concepts.

A MORE STREAMLINED PORTFOLIO

Matti Ketonen and Jukka Kettunen have been working on simplifying Metsä Board’s offering.

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In order to help Metsä Board discern what to offer customers, the product portfolio was streamlined and made more distinct.

“When we know exactly what we want to offer, it is much easier to communicate this information to the customer,” says Matti Ketonen, Vice President, Supply Chain and Customer Service.

And we’re not just talking about the cartonboard itself. Internally, around 200 services have been identified, encompassing everything from the customer’s initial thoughts about buying cartonboard to the customer satisfaction survey at the very end of the delivery chain.

By dividing the whole customer journey into small pieces, the process of putting together the right concept for each individual customer becomes easier – you just choose the pieces the customer needs.

“Each individual service must give a clear added value to the customer,” Ketonen points out.

GREATER TRANSPARENCY

The aim of conceptualisation is also to bring greater transparency to the whole process, both for the customer and internally. “Both parties need to know what to expect,” says Ketonen.

In the past, ‘what to expect’ has at times been anyone’s guess, as Metsä Board’s product portfolio was piled high with options. “A pivotal guideline during the last few years has been to simplify

The journey from the mill to the customer has its own services; a little bit of extra protection for sheets may be a small – but important – addition.

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A PIVOTAL GUIDELINE DURING THE LAST FEW YEARS HAS BEEN TO SIMPLIFY OUR OFFERING.

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our offering,” explains Jukka Kettunen, Senior Vice President, Production and Product Development.

Several investments have been made to support this streamlining effort. There are fewer cartonboard grades for customers to choose from, making life easier for all parties.

“This is a much more cost-efficient way of doing things. In the past the products have been too similar, making it difficult for customers to know what they really need,” says Kettunen.

As the saying goes, the customer is king.

But Metsä Board knows when to challenge this old adage.

“We won’t blindly deliver whatever the customer asks for if we know there is a better option available,” Ketonen says.

More often than not, this way of thinking takes the customer on a more insightful, and ultimately more rewarding, journey.

QUESTIONS TO ANSWER WHEN YOU DEFINE YOUR JOURNEY: z Plan and source – what are the products and services that you need? z Prepare and order – how do you order and manage your supply in the most efficient way? z Produce and customise – are there any special needs in the format you receive your goods? z Stock – do you need stocks to ensure availability of our product? z Receive – where, when and how do you want to receive your goods? z Reflect – how do you want to close the delivery and what can we do better?

BUSY TIMES Metsä Board is continuing to invest in its mills.

Jari Tiainen, Product Manager at Simpele “Last year the second stage of the extensive investment programme was implemented.

We have the most efficient folding boxboard machine in Europe, with an annual volume of 300,000 tonnes.

Capacity has doubled since 2006. For customers, this increased capacity means that the availability of Simcote has increased significantly.”

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Minna Kantsila, Product Manager at Kyro “Our recent investment has allowed us to increase capacity by 40,000 tonnes, to 190,000 tonnes. With this investment we want to increase the availability of our Carta Elega and Avanta Prima boards for our customers. In addition, we are building a new biopower plant for the Kyro mill. It will replace natural gas with CO2-neutral wood, mostly discarded wood such as bark and chips.

The plant is scheduled to be up and running in the autumn of 2012.”

Panu Räsänen, Product Manager at Kemi “Our latest investment, which enables production of doublecoated kraftliner grades Kemiart Graph+ and Kemiart Lite+, will provide superior printability for our customers.

Attractive packaging is a significant competitive advantage in the retail business and we are now able to offer grades that enhance both shine and detail.”

Petteri Teerijoki, Product Manager at Äänekoski ”The rebuild of our board machine was finished in May 2012, and a new slitter winder and reel-packing line were also taken into use.

This allowed us to increase production capacity to 240,000 tonnes per year and ensured the availability of consistently high-quality Carta Solida and Carta Integra for our customers.”

NOT JUST ANOTHER EMPTY PHRASE ake a quick look at your favourite box of cereal and you may find a sentence somewhere saying that the package is produced in an environmentally friendly way. You may not be aware of it, but a seemingly endless number of working hours has been put into making sure that this is not just another empty phrase.

Rauno Nokelainen and Nina Happonen are the people at Metsä Board to whom customers turn when they need information about the cartonboard they use to package their products.

Life Cycle Assessments, which involve assessing all the environmental impacts associated with every single stage of a product’s life cycle, are very much in vogue these days. A huge spreadsheet has probably been created to record and calculate the impact of that single cereal box, covering everything from manufacturing and distribution to disposal and recycling.

“A while ago, all people talked about was the carbon footprint. Today that is not enough,” says Nokelainen, Sustainability Manager at Metsä Board, Paperboard.

He provides customers with the information they need for life cycle assessments. It is a vital part of the company’s service concept. “This service is as important as the physical product,” Nokelainen emphasises.

In addition to the carbon footprint, customers also want information on how the manufacturing of the cartonboard has impacted the water system and the forest.

Nina Happonen, Sustainability Manager, is responsible for answering customers’ questions on sustainable development and product safety. One of the most important services she provides is helping customers ensure that the raw materials used, in this case fibre, are traceable, legally sourced and ethically produced.

“All our production units hold two chains of custody management systems, and we offer PEFC and FSC certified products to our customers. Customers are particularly keen on making sure that the rights of indigenous people are not violated.”

Metsä Board mostly uses Nordic fibre, where the origin of the wood is well known.

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CASE 1

TARGETING

SUSTAINABILITY

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SUSTAINABILITY WORK IS BECOMING MORE SYSTEMATIC THROUGHOUT METSÄ GROUP, WITH NEW TARGETS DEFINED IN RESPONSE TO AN EXTENSIVE SURVEY OF STAKEHOLDERS’ PRIORITIES. TEXT: FRAN WEAVER PHOTOS: METSÄ BOARD

Customers increasingly require information about how companies like Metsä Board look after their social responsibilities and work to reduce the environmental impacts of products throughout the entire supply chain – all the way back to the sourcing of raw materials.

“Sustainability involves so many complex issues that we decided to conduct a materiality analysis among internal and external stakeholders in 2011, to learn about everyone’s concerns and priorities,” says Riikka Joukio, Metsä Group Senior Vice President, Sustainability and Corporate Affairs. “Using responses from almost 200 stakeholders – including many from our customers, employees, analysts and the media – we’ve been mapping the way forward on essential sustainability issues, and setting measurable targets we can monitor and report on.”

Beginning in 2012, Metsä Group will produce a separate annual sustainability report to help stakeholders follow also Metsä Board’s progress towards key targets.

“We’ve identified four main focus areas with regard to sustainability: the benefits of our safe, recyclable products compared to alternatives; the sustainability of our raw materials and the whole supply chain; the environmental efficiency of production at our mills; and both internal and external stakeholder relations,” explains Joukio. “The main interests of customers and stakeholders today include the origin of raw materials, the carbon footprint of products, and the working conditions along the supply chain.”

SETTING CLEAR TARGETS

New sustainability targets and areas for action have already been defined. Efficiency improvements will be made at mills, with the aim being to reduce the amount of energy used to produce a tonne of product by ten per cent of the 2009 level by 2020. Across Metsä

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CASE 1

“We’re expanding our environmental product information from current carbon and water footprints to cover also other information our customers want,” says Joukio. “This involves doing life cycle assessment (LCA) calculations that examine products’ impacts all the way from the forest to the customer. We’re currently testing new LCA software for assessing food packaging board made at Simpele mill, and eventually all our main products will have extensive, product-specific environmental information readily available.”

WE ARE MAPPING THE WAY FORWARD AND SETTING MEASURABLE TARGETS. Group, emissions of fossil carbon dioxide per tonne of product should be reduced by 30 per cent over the same period.

One related project involves the construction of a new bioenergy plant at Kyro mill. By using renewable biofuels like bark, woodchips and tree stumps instead of natural gas, Kyro will cut its greenhouse gas emissions by about 100,000 tonnes a year. When the plant starts up in autumn 2012, it will also provide district heating for 1,300 nearby homes.

Meanwhile, forest certification coverage will be maintained at the current high level, enabling Metsä Board to clearly demonstrate to even more customers that the fibre in its products comes from responsibly managed forests. Currently, Metsä Group’s forest certification percentage, 81 per cent, is already the highest among the competitors.

LOOKING AFTER PEOPLE

To ensure social responsibility along Metsä Board’s supply chain, a new Code of Conduct for suppliers was drawn up during 2011 for the whole Metsä Group, covering issues from human and labour rights to business ethics. “From now on this code will form part of all new and renewed supplier contracts,” says Joukio. “Additionally, during 2012 all of our employees will be trained on how the new employee Code of Conduct should be applied in their work.”

Social responsibility also involves looking after Metsä Board’s own employees. “Our health and safety targets now include a sickness absenteeism rate of less than three per cent and a zero lost-time accident rate,” says Joukio. “And wherever capacity reductions mean that our employees face redundancy, we take responsibility in the local communities and collaborate closely with the authorities to help find new opportunities for them.”

TRANSPARENT AUDITING OF WORKING CONDITIONS AT HUSUM MILL A groundbreaking ethical trade audit was conducted at Metsä Board’s Husum Mill in May 2011. “One of our major office paper customers in the UK wanted to verify that all products sold under their brand are produced responsibly,” explains Husum Mill’s Customer and Development Engineer, Helén Sundvall.

“We were glad to invite external independent auditors to check conditions here, because this displays our transparency and honesty when it comes to ethical issues. It can also help us find ways to further improve conditions.”

An auditor from verifiers SGS UK Ltd, together with a representative from SGS’s Swedish branch, spent

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three days investigating the mill’s standards on issues including safety and working conditions, as specified in guidelines defined by the Ethical Trading Initiative.

“Guided around the mill by a union representative, they interviewed about 40 people, including workers chosen at random as well as those responsible for human resources and health and safety,” says Sundvall. The auditors reported that Husum Mill fully complies with all guidelines, and particularly praised the mill’s monitoring of working hours, good managementunion relations, and the range of useful information provided for employees on the mill’s intranet, including channels for reporting safety risks.

CASE 2

CONTRIBUTING

TO YOUR SUCCESS Customers in emerging markets look to Metsä Board’s IBP Services team to help them get the most from their packaging.

TEXT: SATU SAT A U JUSSILA PHOTOS: WEINA LI, SHUTTERSTOCK AND METSÄ BOARD

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We are a complete printing solutions provider, dedicated to our customers’ success,” says Mark Beamesderfer, Global Sales & Marketing Director, Metsä Board IBP Services.

“We help our customers figure out the best packaging for their product and create an attractive design, and we can also take care of print and supply chain management,” he continues.

IBP stands for Integrated Brand Packaging. The IBP team works with international companies who are looking to grow their brands in emerging markets such as China, India and Indonesia. Customers are typically in the consumer electronics, personal and beauty care, food and beverage, and consumer goods industries.

MAINTAINING BRAND INTEGRITY

Headquartered in Shanghai, China, the IBP team offers a wide range of services for customers.

“Our head office is located in Shanghai and we are present in Asia, Europe and the Americas,” says Mark Beamesderfer.

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“We are experts at providing brand owners with a wide range of dynamic and integrated packaging materials – including flexible packaging, folding cartons, paper bags, and rigid set-up boxes,” Beamesderfer explains. “The team also has extensive expertise in colour management, which extends to all printing and converting methods – including offset, flexography, screen printing and gravure.”

“All our front-end processes take place at our customer service office in Shanghai,” continues Beamesderfer. “The manufacturing of our packaging components is done through a tightly integrated network of certified and validated print partners located primarily throughout the Asia-Pacific region.”

The focus at IBP Services is on maintaining the integrity of the customer’s brand – regardless of where in the world the customer’s products are manufactured and sold.

Wide range of ser vices IBP’s range of services includes: z Packaging Needs Analysis z Design Services z Print Management z Supply Chain Management go to For more information about IBP, at us act cont www.ibpworld.com or om. up.c agro mets ibpworld@

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NETWORK OF CERTIFIED PRINTERS

All IBP Service’s manufacturing sites have their own compliancy and project development personnel who ensure the customer’s specifications are met.

“With over 60 certified printing presses within our network, we can optimise each project by selecting the right equipment and process to get the job done without compromising the customer’s requirements – unlike most traditional ‘iron-on-the-floor’ printers, who need to slightly modify customer projects in order to maximise return on their own capital investments,” Beamesderfer points out.

One of the things he is most proud of is the team’s ability to deliver solid results. “Our quality performance and on-time delivery results are among the best in the industry. We are unparalleled in terms of supplying packaging materials from multiple geographic locations.”

CREATING REAL VALUE IBP Services is part of Metsä Board’s Paperboard Business Area. “We are a complementary service to Metsä Board Paperboard and regularly work with customers on all of their packaging needs,” explains Beamesderfer.

“We create the structure and graphics for the product, and analyse the best materials, work flows and production methods for our customers,” he explains. “We also provide integrity for customer brands through advanced fingerprinting techniques and colour-managed engineering services.”

Through IBP Service’s quality systems, Metsä Board can control the materials used in the manufacturing process as well as the selection and verification of manufacturing partners. “We define the customer’s quality requirements and validate each process with on-site technicians,” notes Beamesderfer.

Finally, IBP’s delivery service supplies the materials and information required by brand owners to bring their products to the global market. “We deliver brand packaging supplies on time and simultaneously, anywhere in the world.”

COLUMN

THE CORE STRATEGY ON THE PATH TO 2050 IS TO GET THE HIGHEST POSSIBLE VALUE FROM OUR RESOURCES.

The world in 2050

UNFOLDING THE FUTURE magine … “The consumers of 2050 have chosen to live in a bio-society. They opted for “life” (bios), and the forest fibre industry fulfilled its promise. It seized the opportunity for which it had been preparing.

Operating around a living resource, based on fibres and molecules derived from wood, the forest fibre industry has anticipated societal trends and consumer demand to develop new business models and technologies.

One morning in 2050 ... people are waking up in a 20-storey wooden apartment building, managing to drag themselves from beneath the warmth of their woodfibre blanket. At the table, the family pours cereals from paper boxes into a biocomposite bowl, milk from a beverage carton, and coffee into a paper cup. The air is cleaner than that breathed by their parents. The passing cars are made of biocomposites derived from wood and powered by hybrid or bio-diesel engines.

Mobile phones use paper-based batteries.

Presentations are made on a fibre screen

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made of over 80 per cent cellulose, and printouts use high-quality paper.

At noon, the recycled paper lunchbox is pulled out of the fridge and heated in the microwave. The box indicates how hot the food is.

After work, a visit to elderly parents allows time to check that the medicine box is correctly programmed with the times to take the wood-based medicines.

The day ends in front of a good movie shown on the bio-composite, nano-fibrebased entertainment set. The family looks forward to a weekend in the forest.”

The pulp and paper industry is preparing to take its place at the heart of the bioeconomy when the vision described above becomes reality. Our industry’s knowledge and expertise in forestry, recycling, wood chemistry and fibre processing puts us in pole position for the future.

As part of this preparation, the Confederation of European Paper Industries (CEPI) launched the ‘Forest Fibre Industry

2050 Roadmap to a Low-carbon Bioeconomy’ at European Paper Week in November 2011 in Brussels. Received with an encouraging welcome, this roadmap is a holistic exploration of the future of our sector. It defines the technical and financial pathways that will help create the EU policy frameworks we need to enable the transition to the future.

The core strategy on the path to 2050 is to get the highest possible value from our resources: fresh and recycled wood fibres.

We aim to find the optimal balance between the use of raw materials, the optimal recycling system and the lowest-carbon solutions. As an industry at the core of the bio-economy, we believe we have a crucial role to play in providing the solutions to the current and future challenges faced by society.

This roadmap is not a blueprint; it is an exploration of the future and what we will need to do to get there in a world with scarce resources and an ever-growing population. It is a vision that we want to share with all the stakeholders in our industry, and the start of a policy debate in Europe.

Teresa Presas CEPI Director General www.cepi.org www.unfoldthefuture.eu

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INTERVIEW

A PASSION

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SYLVIE DE FRANCE, WHO HAS DESIGNED FOR A NUMBER OF MAJOR PERFUME HOUSES, IS THE CREATOR OF THE PACKAGING FOR OR INFINI, THE LATEST PRODUCT BY MOUVEMENT INFINI. TEXT: TAINA TERVONEN PHOTOS: THIBAULT STIPAL

erfume is a fragrance, a story, an emotion.”

Whenever Sylvie de France talks about her work, it is with visible passion and enthusiasm. Since 1987, she has devoted her creative design work to perfumery and cosmetics, creating containers and packaging that are true to the spirit and universes of such great brands as Eden Park, Emanuel Ungaro, Elie Saab, Salvatore Ferragamo, Issey Miyake, Lolita Lempicka, and Yves Rocher, among others.

“What I like most about my work is the way perfume elicits pleasure, beauty and seduction,” she says.

Attention to detail and deep sensitivity are also essential.

“Each brand tells a story. It’s up to me to find the expression that best emulates the universe and message conveyed by the product. That calls for a lot of discussion,” explains the designer.

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ECO-DESIGN – SETTING A CHALLENGE FOR CREATION

Passionate is the only word to describe Sylvie de France’s feelings last summer when she joined Mouvement Infini, whose latest creation, Or Infini, a perfumed, shimmering body lotion, stands on the desk of the designer’s Paris office. This is the consortium’s third creation, coming after organic skincare cream Naya and the ecofriendly Émoi Infini fragrance range. The consortium brings together eight partners around a commitment to eco-design: Mane for the fragrance, Strand Cosmetics Europe for the formula, SGD for the bottle design,

Rexam for the pump, VPI for the closure, Wauters for the box printing, Metsä Board for the cartonboard, and Sylvie de France for the packaging design.

The latest member had no hesitations about coming on board.

“I was amazed when I was approached to join this project. I wanted to demonstrate that I too had something to contribute to this commitment and to set my talents to work on this message. At first sight, eco-design may seem a little cumbersome. I wanted to show that being up against constraints and strict regulations doesn’t mean that you can’t be creative; in fact quite the opposite is true – constraints are what drive us forward!”

LIGHTWEIGHT AND POETIC

In the case of Or Infini, the primary constraint was that the materials had already been chosen. Accordingly, Sylvie de France worked mainly on the graphics, concentrating on the packaging by applying her sensitivity and a hint of fantasy.

“As the container itself was simple, I felt it was important to work on a fairly strong staging, abandoning the conventional rectangular block shape and infusing it with a little movement. As Or Infini is a

shimmering body lotion, I worked on waves of light and stars in the graphic styling.”

A PRODUCT THAT STIRS THE EMOTIONS

The result is a luxurious box in golden and pearly tones that exudes lightness and a dash of fantasy, exemplified by the small angel-like character, who appears to be blowing stardust.

“I wanted to achieve a certain degree of femininity and charm, even in an ecodesigned product!” the designer explains.

The end result proves that a luxury product can have an eco-friendly design ideology. With Ecocert certification covering all of its materials, natural ingredients make up 99 per cent of the elements used to create Or Infini, with ten per cent from organic sources. Recycled materials are used for the closure and bottle.

The lightweight and durable cartonboard used – Carta Elega 280 g/m2 – means the weight of the box is reduced by more than ten per cent compared to other similar paperboard grades.

“This product is one that both warms and excites,” Sylvie de France says.

“Thanks to projects like Or Infini, we can demonstrate that the luxury sector is certainly not lagging behind when it comes to eco-design. In fact, quite the opposite is true.”

WANT YOUR OWN OR INFINI? We’d like to know what you think about this issue of Metsä Board Magazine. Please give us your feedback at www.metsaboard.com/magazine-survey. The lucky winners will receive their own samples of Or Infini!

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STYLES & COLOURS

IT IS NOT ONLY FINE FEATHERS

LÄINEN TEXT: TYTTI HÄMÄ BOARD OMI AND METSÄ TU I PHOTOS: TOMM

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FLYING FIVE METRES HIGH, beautiful, light and white. They look like flying birds, but they are actually expertly folded pieces of paperboard.

These airborne wonders await you at Metsä Board’s stand at the DRUPA fair.

HELD EVERY FOUR YEARS, DRUPA is the printing and media industry’s largest and most prestigious fair. This year’s event takes place in Düssseldorf, Germany from 3–16 May.

Aesop (620–560 BC)

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STYLES & COLOURS

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FINE PACKAGING is many different things; in our case, we use fresh forest fibres and efficient production methods to create paperboard that’s lightweight, safe, strong and reliable.

Nature is our very essence: we need water to make wood and wood to make paper.

LIKEWISE, we’ve put nature at the very heart of our stand at the DRUPA fair. The display evokes a feeling of purity and lightness, with the lightweight and eye-catching bird-like models floating delicately in the air.

YOU ARE CORDIALLY INVITED to visit Metsä Board at stand D34 in PrintCity, Hall 6. We look forward to meeting you!

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IN THEORY

A lot more than

MEETS THE EYE would like to encourage companies to consider aesthetics to a greater extent and to understand that aesthetics function with a different kind of logic than traditional brand thinking,” states Terri Kupiainen, MTT Taloustutkimus researcher.

As part of the PAKKI research project, she has studied the characteristics of visual elements that appear in package aesthetics and which are used in design. But for Kupiainen, a wider goal is to increase understanding of the significance that overall aesthetic design has for a business. The intention is not to provide a single analysis that

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would kill all creativity in package design, but rather to ask whether enough attention has been paid to the different areas of aesthetic design.

COMBINATIONS CREATE NEW EFFECTS

In Kupiainen’s study, consumers were categorised into five groups based on their attitudes and basic values: pluralistic, realistic, hedonistic, traditional, and universal consumers. The groups’ responses to different colours, colour combinations and lines, and combinations of colours, shapes and surfaces were then tested.

As a result, the consumers were divided into six groups based on the

HA T? W

Aalto University’s PAKKI research project z A two-year research project focusing on the role of packaging as a source of competitive advantage, by Futupack Network (1.1.200931.12.2010) z Research members: University of Jyväskylä, Lappeenranta University of Technology, MTT Agrifood Research Finland, Helsinki School of Economics, University of Tampere z The research was sponsored by Metsä Board and several other companies z Alongside participating companies were Tekes (The Finnish Funding Agency for Technology and Innovation) and PTR (Association of Packaging Technology and Research)

Packages provide an aesthetic experience. The level of attraction depends to some extent on the basic values of the consumer.

TEXT: TIMO NYKÄNEN PHOTOS: PAULA KUKKONEN AND SHUTTERSTOCK

colours and colour combinations they found enjoyable. In three of the groups, blue was the most popular main colour. As all the respondents were Finns, we can conclude that blue is most certainly the superior colour in Finnish culture.

In addition, the study reinforced the notion, already partially known, that in the mind of consumers, combinations of visual elements function in a different way compared to individual elements. Individual colours tested in the study, such as brown, may almost behave in a contradictory way in combinations compared to when they are used alone.

AN INSIGHT INTO THE CREATIVE PROCESS

The study indicates that consumers’ basic values have some impact on their preferences concerning visual elements.

“Other studies have also found that favouring round shapes is related to a sense of community, that is, to the value-pluralistic consumer type in this case. Consumers in the hedonistic value group may more easily approve of sharp shapes because they find them to be more energetic,” says Kupiainen.

According to Kupiainen, however, additional studies are required before it can be stated with any

Researcher Terri Kupiainen wants companies to go beyond traditional brand thinking.

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certainty that values and specific aesthetic solutions are mutually related in an unambiguous way.

“Being committed to specific values expresses many issues, from culturally subconscious ones to those that are inbuilt. This is why I find studying aesthetics so fascinating: it requires extensive interpretation.

This may perhaps not match that well with more straightforward economic thinking, but I think it could help us better understand the creative process of a package designer, for example.”

SUCCESSFUL PACKAGE DESIGN REQUIRES GENUINE PARTNERSHIP PAKKI project researchers Hannu Kuusela, Mirka Toivonen and Mika Yrjölä focused on studying how the information related to the value of the package is distributed in the value chain. Cooperation between parties in the value network has become increasingly important for companies’ business strategies.

According to the researchers, trust between the parties in the network is the most important condition for successful cooperation and smooth sharing of information. Establishing more in-depth partnerships requires open communication and abiding by jointly agreed operating methods.

It is recommended that all parties

involved in package design be included right from the start of the process. This allows the goals of the entire chain to be taken into account in a better way, and enables real cost savings. The outcome should then be packages that are both better designed and more consumer oriented.

The PAKKI project based its sub-project on the graduate theses prepared by Juuso Mustonen and Marc Josefsson at Tampere University. The tool developed

by Mustonen can be used for promoting the joint creation of value in the network, while in his work Josefsson highlights the competitive significance of immaterial capital and its renewal.

CONSUMER GROUPS AND VISUAL ELEMENTS CONSUMER GROUP

Characteristic group trait

Colours and lines that the group finds pleasant (+)/unpleasant (-)

VALUE PLURALISM

Capacity to live with many elements, flexibility and conformance with surrounding values

+ blue, grey, white, earth tones, red + round line shapes – sharp lines

VALUE REALISM

Actual realisation of values through actions

+ blue, red + square-shaped – violet, black, grey

HEDONISM

Immediate personal sensory experiences Strong reactions, tension and creativity

+ black, white, red, yellow + several line types – earth tones, particularly brown

TRADITIONALISM

The willingness to approve traditional norms and roles in one’s life Harmony, slow and deliberate change

+ blue, earth tones, + square-shaped – orange, yellow

UNIVERSALISM

The willingness to evaluate social procedures and norms, the willingness to create new norms based on the known tradition.

Freedom, information, spirituality

+ violet, red, black, white, earth tones + round line types

Source: Kupiainen T. & Laaksonen, M (2011). The Multimodality of Design Elements in the Food Packaging Context. The 1st International Colloquium on Global Design and Marketing, 8–9 December 2011, University of Lincoln, UK. Abstract and presentation.

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Get more cartons per tonne and improve sustainability with Metsä Board’s lightweight cartonboards. Made from Nordic fresh forest fibres, they perform smoothly on production lines, make packaging look good and meet the highest safety standards. metsaboard.com

IN PRACTICE

of

FA CT S

LABELS DISTINCTION Chromolu

x

chnology -coating te s from cast os gl r g results io in er ss z Sup nding embo for outsta lk bu h ig H z rtified d PEFC ce ²) z FSC an –130 g/m 0 (7 pers erties z Label pa op pr ng labelli • Excellent die-cutting r • Burr-free ength pape m²) as wet-str e 80–400 g/ (1 • Availabl ds ar bo ing at packaging in d m an la al g ic z Graph outstandin thness for • Fine smoo any results ühle, Germ in Gohrsm d ce du ro •P Chromolux printed on agazine is .

M is th bo of em ssed The cover ith the title r yellow, w lo co ², m 250 g/

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WHEN IT COMES TO PACKAGING WITH SPECIAL REQUIREMENTS, CHROMOLUX IS TRUSTED BY QUALITY BRANDS ALL OVER THE WORLD. TEXT: HEINI SANTOS PHOTOS: METSÄ BOARD

s Europe’s leading supplier of composite cans and drums, luxury tubes and plastic containers, Weidenhammer Packaging Group (WPG) requires that their products have a consistent quality and availability. The Chromolux range of cast-coated premium papers and boards helps the company achieve this.

“Chromolux has a high-gloss appearance. This is important to make our composite cans look like metal, even if they are actually made of papers and boards for sustainability reasons. At the same time, the product inside is protected by a high-barrier aluminium foil and special coatings, enabling an extremely long shelf life,” explains WPG’s Senior Purchasing Manager, Andre Linke.

A

QUALITY UNDER ALL CIRCUMSTANCES

WPG uses Chromolux for labelling their high quality composite cans. The high paper volume and cast-coated surface provide a harmonious and glossy impression – perfect for demanding brandname products. WPG’s clients include big names such as Nestlé and Imperial Tobacco, so the quantities at the 12 production sites around the world are large throughout the year.

“Chromolux has excellent runnability on our lines under all climatic conditions – high or low humidity and summer or

winter temperatures – and our customers are pleased to be able to present their goods in premium packages at reasonable prices,” Linke says.

Chromolux’s other great advantage is its sustainability. “In combination with two or three plies of recycled cartonboard, it enables us to save resources as well,” he adds.

A RELIABLE SUPPLY IS KEY

Labelling the tubes is a multi-step process.

“Metsä Board delivers the sheets of Chromolux to our experienced printers around Europe. They print on the sheets with four to eight colours plus lacquer, achieving photo-like image quality. Next, the sheets are cut into strips and packed in paper with moisture barriers to prevent bending,” explains Linke.

At the WPG plants, the labels are glued onto the tubes in their original width, typically four to eight cans per core tube.

After labelling, the tube is cut to the individual can height.

“We have always been able to count on Metsä Board’s Gohrsmühle mill to provide a reliable, secure supply. We have never had a day when we have not had labels in stock, which is very important to us as we supply many of our customers more or less just in time,” says Linke, proudly.

CHROMOLUX HAS EXCELLENT RUNNABILITY UNDER ALL CLIMATIC CONDITIONS.

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news

TEXT: TYTTI HÄMÄLÄINEN PHOTOS: METSÄBOARD, SEPPO SAARENTOLA

Maintaining a direct, transparent dialogue

THE METSÄ GROUP SUSTAINABILITY REPORT e are committed to open communication, and we want to tell our stakeholders how we strive to live up to this promise. Sustainability is as important to Metsä Group and our partners as it is to our customers. In order to help our customers and other key stakeholders see the whole picture, we realised that we needed to do even more. The result is the Metsä Group Sustainability Report.

“The new report shows what we have done group-wide during the last few years. It also explains where we are heading and what our goals are,” says Riikka Joukio, Metsä Group Senior Vice President, Sustainability and Corporate Affairs. “It gathers all the relevant information together in one booklet, making it easier for stakeholders to find all the facts and figures relating to sustainability.”

The report’s themes are based on a materiality analysis, which you can read

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more about on pages 14–16 of this issue. “For example, the report describes our energy use and sustainable forest practices, and how we plan to develop them further.”

When exploring the report, even Joukio herself discovered some new facts: all our environmental indicators have improved in recent years, the number of women in the Group’s management has increased from five to 13 per cent over the past four years, and the Group uses the highest volume of certified wood (81 per cent) in the industry.

“We are confident that the report answers stakeholders’ questions and that it will help us maintain a direct and transparent dialogue with them.”

The English version of the report can be downloaded from www.metsagroup.com/ sustainability

New innovation centre boosts R&D ebruary saw the opening of Metsä Board’s new innovation centre in Äänekoski, Finland. The centre will support packaging-industry customers through R&D in product innovation, introduce applications of new raw materials created from fresh forest fibres, and research how paperboard products can continue to keep pace with rapidly evolving printing and converting technologies. The centre will collaborate closely with research institutes and universities, among others. The first research projects are expected to come to fruition within two to three years.

“We have tirelessly developed our paperboards, production processes and services to support customers in their business,” says Metsä Board CEO Mikko Helander. “At the same time, our work has achieved benefits in sustainability, for example in the design of light but stiff boards and in production energy efficiency. We now want to strengthen our R&D further and drive the business forward based on new ideas, customer demand and feedback.”

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Pasi Piiparinen started his second week at Metsä Board starring in a video.

See what he has to say about paperboard business at Metsä Board’s website.

Paperboard’s management welcomes new chief rom January 2012, Metsä Board operates through two business areas: Paperboard, and Paper and Pulp. Pasi Piiparinen, M.Sc. (Eng.) was appointed Senior Vice President, Head of Paperboard as of March 2012.

Piiparinen has an extensive background in the packaging business, and in his new position he succeeds Mika Joukio, who was appointed CEO of Metsä Tissue.

F

Piiparinen has also been appointed as a member of the Metsä Board Corporate Management Team. The other members are Mikko Helander, CEO, Matti Mörsky, CFO, Seppo Puotinen, SVP, Head of Paper and Pulp business area, Sari Pajari, SVP, Supply Chain and Business Development, Mika Paljakka, SVP, HR and Jani Suomalainen, SVP, Procurement.

Äänekoski rebuild ready Celebrating 10 years of packaging luxury n 2002, two future packaging industry stars were born with the launch of the Carta Integra and Carta Solida fully coated board grades.

Combining good stiffness, lighter weight and brilliant visual properties, the new grades gradually gained a firm foothold in the packaging market. At the time, high brightness was a new development in folding cartonboards, and it was one of the factors that made Carta Integra and Carta Solida so successful in high-quality product packaging and graphical applications.

“As a result of our continuous development, properties ensuring odour and taint neutrality were added to the grades a few years ago. The demand for superior-quality packaging that also ensures hygiene and safety has made Carta Integra and Carta Solida popular for applications such

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as food, confectionary and beauty products,” says Petri Vakkilainen, Vice President, Mill Manager at Metsä Board’s Äänekoski mill.

“Another key success factor for these grades has been the light weight that offers cost savings for customers.

When discussing the light weight and sustainability, we proudly tell our customers that inside the board there is fresh air from central Finland.”

The 10th anniversary of Carta Integra and Carta Solida is being celebrated with an increase in production capacity of 30,000 tonnes to 240,000 tonnes per year at the Äänekoski mill, the birthplace of these highly successful grades. The rebuild of the board machine was finished in May. In addition, a new slitter winder and a new reel packing line have been taken into use.

Richer colours for retail displays n January Metsä Board introduced two new coated white top kraftliner products – the double-coated grades Kemiart Graph+ and Kemiart Lite+. Double coating provides a smoother and glossier surface, enabling superior printability with improved ink laydown, brighter colours and more accurate detail.

The new grades are ideal for point-of-sale and promotional displays as well as consumer and retailready packaging. The Kemiart product range – which also includes Kemiart Ultra and Kemiart Brite – has a linerboard suitable for every printing method. All Kemiart products are safe to use with fresh fruit and vegetables, and are frequently specified for products including processed food, drinks, consumer electronics, tools, glassware, toys, footwear and cut-size paper.

“The promotional role of corrugated packaging in retail stores continues to grow, as consumers are attracted by high quality but sustainable packaging,” says Risto Auero, Vice President, Sales, Metsä Board, Paperboard. “The new products are a response to a constant demand from the market: our customers are always looking for better printing surfaces, improved gloss and higher-class packaging options.”

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HUSUM: Coating machine start-up and paper machine upgrade enhanced capacity and quality JOUTSENO: BCTMP mill start-up pulp for lighter and whiter boards, odour and taint-neutral grades IBP PACKAGING SERVICES: One-stop-shop for packaging, committed to reducing costs and increasing efficiency, flexibility, speed and simplicity for customers

ÄÄNEKOSKI: Mill rebuilt, capacity increased improved board availability CARTA INTEGRA AND CARTA SOLIDA: New board grades for high-quality packaging

HUSUM AND KYRO: Effluent treatment plants opened

HUSUM: PCC (precipitated calcium carbonate) plant opened coating section modernised KASKINEN: New BCTMP plant opened more efficient and environmentally sound manufacturing KEMI: Coating unit rebuilt improved consistency, coating profiles and printability

SIMPELE: Mill rebuilt, metal belt calender installed lighter boards, improved quality consistency, increased sheeting capacity EXPRESS BOARD SERVICE: Better product availability and shorter lead times KEMI: New former unit improved formation, consistency, profiles and printability

FIT-FOR-PURPOSE PRODUCT PORTFOLIO / LITE4U: Better availability, improved production efficiency and quality consistency CARTA ELEGA: New board grade for high-quality packaging

TAKO: Triple coating launched improved printability HUSUM: Recovery boiler investment increased production efficiency, lower emissions, increased electricity production and reduced oil consumption SAVE!: Light office paper with good bulk and thickness

HUSUM: New pulp turbine installed increased electricity production.

Combined with the recovery boiler investment in 2010, this enabled selfsufficiency to be increased to 60 per cent from 32 per cent.

SIMPELE: Mill rebuilt – capacity increased by 80,000 t/a to 300,000 t/a, sheeting capacity increased by 40,000 t/a KYRO: Mill rebuilt capacity increased by 40,000 t/a to 190,000 t/a KEMI: Coating section rebuilt improved printability

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INVESTING IN RENEWAL

Metsä Board’s ongoing investment in production processes and product development has allowed us to increase capacity, improve quality, and deliver new, improved products and services for our customers. This focus on continuous renewal has allowed us to be agile and responsive, driving the business forward based on new ideas, customer demand and feedback.

TEXT: TYTTI HÄMÄLÄINEN ILLUSTRATION: ILJA KARSIKAS

ÄÄNEKOSKI: Mill rebuilt capacity increased by 30,000 t/a to 240,000 t/a ÄÄNEKOSKI: R&D centre improvements in paperboards and printing technology, new technologies and raw material applications KYRO: Construction for biopower plant, autumn 2012 CO2 emissions from the mill will be reduced

by app. 100,000 t/a, equivalent to the annual emissions of around 60,000 cars GOHRSMÜHLE: Customer service and logistics centre, including a sheeting facility KEMIART GRAPH+ AND KEMIART LITE+: Smoother and glossier surface, enhanced printability

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