Published on March 4, 2014
METSÄ FIBRE'S ANNUAL REVIEW 2013
2 CEO'S REVIEW 4 METSÄ FIBRE 2013 6 PRODUCTS AND SERVICES 8 INTERNATIONAL BUSINESS 10 SUSTAINABILITY 14 MANAGEMENT OF ENVIRONMENTAL IMPACTS 16 ENVIRONMENTAL BALANCE PEFC/02-31-120 PUBLISHER Metsä Fibre Oy P.O. Box 30 02020 Metsä, Finland tel. +358 104 612 www.metsafibre.com The annual review is available in PDF format in English, Finnish and Chinese at www.metsafibre.com. Image on the cover: Metsä Fibre's long-fibre pulp, Labtium Oy Cover: Carta Integra 210 g/m2, interior: Galerie Art Silk 130 g/m2 1,000 tonnes 2,500 2,000 Graph on the cover: Pulp production at Metsä Fibre 1,500 2009 2010 2011 2012 2013
LEADING PULP PRODUCER Metsä Fibre is a world-leading producer of softwood pulp. Our products – s ustainably and cost-efficiently produced Botnia pulps – are specially developed for the production of high-quality tissue and printing papers, specialty products, and board. Our pulp mills in Finland employ some 900 people. Our sales in 2013 amounted to approximately EUR 1.3 billion. Metsä Fibre is part of Metsä Group. OPERATING RESULT SALES EUR MILLION 1,314 2012: 1,274 EQUITY RATIO 197 71 EXCL. NON-RECURRING ITEMS, EUR MILLION +3% +33% 2012: 148 % 2012: 65 NET GEARING INVESTMENTS PERSONNEL 13 27 873 RETURN ON CAPITAL EMPLOYED PRODUCTION 29 2,297 % 2012: 16 % 2012: 23 ELECTRICITY SELFSUFFICIENCY RATE EUR MILLION -24% 2012: 35 2012: 876 1,000 TONNES 2012: 2,237 % LOST-TIME ACCIDENT FREQUENCY RATE 2012: 151 2012: 7.9 144 31 DECEMBER 2013 8.7 -10% +3% 0%
The year 2013 saw steady development in Metsä Fibre. The demand for pulp was stable in all of our market areas. The overall situation was overshadowed by weak economic growth in Europe and the overcapa city of several product types in the Asian market due to substantial paper machine investments. Our mission is to be the strongest operator in the market pulp business supported by success factors such as customer expertise, cost effectiveness and continuous development both as individuals and as an organisation. In addition to our financial performance, we measure our success with feedback collected from customers and other stakeholders. Based on these, we draw up development plans which are implemented in our daily work. A STRONG PRODUCT PORTFOLIO THE STRONGEST OPERATOR IN THE MARKET PULP BUSINESS 2 CEO'S REVIEW As our customers manufacture a variety of products, the quality requirements of pulp vary based on the properties of the end product. The diverse Botnia product family is our strength, enabling us to offer pulp grades from our mills that best meet customers' needs. Our prod uct portfolio was strengthened in summer 2013 when Joutseno mill started up its new polysulphide process. The Botnia Nordic+ grade provides competitive advantages to our customers who value tensile strength and low pulp beating energy consumption, in particular. Metsä Fibre operated in accordance with its customer strategy in 2013 – we deepened shared development work bringing added value for several customers. We also renewed our customer interface operat ing model and introduced new forms of cooperation with our custom ers, such as the innovation days to seek new, shared development pro grammes for both the customers and Metsä Fibre. THE MORE EFFICIENT, THE BETTER Metsä Fibre's financial competitiveness creates prerequisites for a longterm focus in operations on different economic cycles. To this end, continuous development of cost effectiveness is a key aspect of our work. Effectiveness is created by countless small measures as well as mill maintenance ensuring the continuity of production. In 2013, we increased our production by 60,000 tonnes from the previous year. This positive development was the result of investments
and improved reliability of operations at the mills achieved by developing preventive maintenance. REDUCED ENVIRONMENTAL IMPACT Our goal is to gradually reduce our environ mental load. The measures we take are the same as those we use to improve production effi ciency: steady operation and a high utilisation rate. Renewing our process equipment improves the efficiency ratios of processes and thus reduces the environmental impact. The emis sion values of Metsä Fibre's mills already meet the definitions and emission limits of the best available technology (BAT) being prepared in the EU. Our position as one of the largest produ cers of bioenergy in Finland is a good indica tion of our resource efficiency. We sell renew able energy to the market as electricity, wood fuel and heat. Over ten per cent of our sales come from bioenergy and biochemicals. Our mills primarily run on bioenergy produced in the pulp making process, and determined development of our energy efficiency thus increases the share of bioenergy sold. A MOTIVATED PERSONNEL IS AN ASSET Personnel’s competence and actions in accord ance with the company’s objectives and values are fundamental to good performance, both in working with our customers and financially. All Metsä Fibre employees conduct development discussions, and development plans are drawn up for every employee annually. Competence development is monitored by means of selfevaluations, for instance. High-quality supervisory work is a prerequisite for a good working envir onment and motivation. In 2013, Metsä Fibre organised a training programme for all supervisors. Its aim was to strengthen the shared operating culture and supervisors’ skills in various management situations. THE DIVERSE BOTNIA PRODUCT FAMILY IS OUR STRENGTH, ENABLING US TO OFFER PULP GRADES THAT BEST MEET CUSTOMERS' NEEDS. WE WILL FULFIL OUR CUSTOMER PROMISE In 2014, we will continue our development as a leading operator in the pulp market, with Nordic softwood pulp as our main product. Our customer expertise will set us apart in the market as our competent resources support the development of our customers' business. We will systematically develop our personnel's competence and improve our operating pro cesses in a determined manner. We will fulfil our customer promise: the Fibres of success. Ilkka Hämälä CEO CEO'S REVIEW 3
METSÄ FIBRE 2013 SALES BY MARKET AREA BYMARKET AREA, % SALES Metsä Fibre is one of the leading pulp producers in the world. The company responds to changes in the markets by continuously developing its operations and allocating resources according to demand. Continuous renewal is the key to future success. EUR MILLION 1,314 +3% 2012: 1,274 OPERATING RESULT EXCL. NON-RECURRING ITEMS, EUR MILLION 197 Finland Rest of Europe Asia Rest of World +33% 2012: 148 PRODUCTION 2009 2010 2011 2012 2013 Capacity ISO 9001 ISO 14001 ISO 50001 OHSAS 18001 ISO 22000 PEFC COC 53 24 21 2 FSC COC/CW Joutseno 470 595 603 606 604 690 x x x x x x x Kemi 490 534 532 539 564 590 x x x x x x x Rauma 476 544 567 573 612 650 x x x x x x x Äänekoski 441 502 503 519 516 530 x x x x x x x 1,878 2,173 2,205 2,237 2,297 2,460 86 93 93 93 95 193 208 193 221 244 TOTAL Capacity utilisation, % Metsä Svir 1,000 m3 sawn goods 1) Metsä Svir ISO 14001 certificate includes the Energy Efficiency System (EES) 4 METSÄ FIBRE 2013 250 x x1) x x
Metsä Fibre operates on the global market, affected by structural changes in market areas as well as end product grades. The focus of the pulp market, which is growing at a rate of approximately two per cent annually, has shifted to the emerging markets; in particular, demand for tissue paper and board manufac tured from fresh forest fibre is increasing. We respond to the changes by developing our operations and allocating resources according to demand. While Europe will be our main market in the future as well, approximately a quarter of Metsä Fibre's pulp is sold to Asia. Our objective amidst future challenges is clear: we will be our customers' most reliable partner. A YEAR OF STEADY GROWTH In 2013, the pulp market remained fairly stable. Good demand for softwood pulp, in particular, and the increased dollar-denom inated prices maintained sales and profitabil ity at a good level. Metsä Fibre's sales were EUR 1,314 million and the operating result excluding non-recurring items was EUR 197 million, which is approximately 30 per cent higher than the result in 2012. We believe that the softwood pulp market will remain bal anced in 2014. RENEWAL IS THE ONLY WAY TO SUCCESS As a pioneer in the industry, Metsä Fibre renews its operations continuously and thus ensures success. In 2013 the company's largest investment was carried out at the Joutseno pulp mill where a new polysulphide cooking process began. With it, MetsäFibre brought the Botnia Nordic+ softwood pulps to the market. They include new properties that customers can utilise in the development of their own pro cesses. In 2013 Metsä Fibre’s R&D focused on supporting the use of polysulphide pulp. In addition, Metsä Fibre studied fossil-free options for the pulp mill concept and the reduction of water usage in the pulp process. The company is exploring new business opportunities by participating in research programmes of the Finnish bioeconomy cluster (Fibic), among other activities. CONTINUOUS DEVELOPMENT Our competitiveness is not built on timely investments alone; we continuously improve our operations. Daily development efforts to improve steady-state production and the pursuit of improved results throughout the A WEALTH OF IDEAS 8,850 IDEAS 12.6/EMPLOYEE Safety observations Usability observations Initiatives Environmental observations Use of auditions Innovation forum portal Inventions In 2013, Metsä Fibre recorded some 8,850 ideas and improvement suggestions. Ideas with the most potential have resulted in new products, services and process changes. We believe that an innovative operating culture is the best way to achieve growth and success. The innovation process and tools adopted by the company ensure that the ideas of Metsä Fibre's employees and stakeholders are not left on the shelf, and that innovation activity is established as part of daily routines; it is part of what we do alongside production. All employees are encouraged to come up with ideas, which are then refined together. Customers and other partner networks play a significant role in Metsä Fibre's product and process development. Through close organisation played a significant role in Metsä Fibre's new annual production record of 2,297,000 tonnes. The mills’ life-cycle plans steer our pro cesses development. One of our main goals is to reduce environmental impacts of our opera tions. In 2014, investments in the Joutseno mill’s recovery boiler and chip silo will reduce cooperation with customers, we can translate their needs into new products and services. Metsä Fibre won the Laatukeskus Excellence Finland's Quality Innovation of the Year 2013 competition with Botnia Nordic+ softwood pulp. Taking part in the quality innovation competition is primarily a way to accelerate ideas into innovations and sharpen Metsä Fibre's innovation activities, but winning the award is also proof of our innovation culture. emissions into the air and odorous gases. The modernisation of the Kemi mill’s automation system will ensure the mill's operational reli ability also in the future. State-of-the-art production units with low environmental impact will guarantee Metsä Fibre's success in the changing operating environment. EVENTS IN 2013 The production of the new Botnia Nordic+ pulps started in Joutseno, Finland in summer with commissioning of the new polysulphide-using cooking process. The stable positive development in the pulp market continued and profitability of Metsä Fibre improved from the previous year. Metsä Fibre reached a new annual production record of 2,297,000 tonnes. Among individual production plants, the Kemi and Rauma mills also broke their records. METSÄ FIBRE 2013 5
HIGH-CLASS PRODUCTS AND SERVICES PULP DELIVERIES 1,000 TONNES PULP END USE % % Softwood pulp Hardwood pulp 3,000 2,500 2,000 Metsä Fibre manufactures renewable and recyclable pulp for the production of paper, board and speciality products under the Botnia product brand. 1,500 1,000 500 Printing papers Tissue papers Board Others Speciality products 32 23 32 4 10 0 2009 Metsä Fibre manufactures approximately 2.3 million tonnes of softwood and hardwood pulp annually for the production of highquality tissue and printing papers, speciality products, and board. We also sell the pulp of our principals Metsä Board and Cenibra. In 2013 we sold and marketed approximately 3.3 million tonnes of pulp primarily to Europe and the Far East. One tenth of Metsä Fibre’s sales consist of other bio-products, such as bioenergy and biochemicals such as tall oil and turpentine. 6 PRODUCTS AND SERVICES 2010 2011 2012 2013 THE BOTNIA BRAND IS OUR STRENGTH Our strength in the steadily growing market is the Botnia brand. In addition to first-class pulp, Metsä Fibre has the strongest service concept in the industry, which is designed to improve customers' competitiveness. Our competitive advantage is generated by our special expertise in pulp fibre and added value services. We carry out joint product develop ment projects to develop new technical and logistics solutions, which improve our cus tomers’ process and end products. For example, the new, awarded additions launched in the Botnia product range in 2013 – Botnia Nordic+ polysulphide pulps – offer significant benefits to tissue and fine paper customers, in particular. Customers can utilise the pulps’ new technical properties in paper production when developing their own pro cesses. The Botnia Nordic+ pulps are devel oped in close collaboration with customers. We continuously develop new services that help our customers obtain the best benefits from our fibres. For example, with the
RFID tracking of pulp units, customers can utilise real-time information provided by the Botnia FOX service on the strength character istics of the pulp they use. Until now, the pulp industry has not been able to provide informa tion in real-time or target it to a specific pulp unit. PULP THE BOTNIA PRODUCT FAMILY EXPERTISE OF THE ENTIRE COMPANY BIOCHEMICALS BIOENERGY Softwood pulp: Botnia Nordic Pine Tall oil Electricity Hardwood pulp: Botnia Nordic Birch Turpentine Heat, steam Reinforcement pulp: Botnia Nordic Strong Bark, powder High yield pulp: Botnia High Yield Polysulphide pulp: Botnia Nordic Pine+ and Botnia Nordic Strong+ 90% 4% 6% AVAILABLE TO CUSTOMERS The more significant a supplier that Metsä Fibre is to the customer, the more crucial it becomes to find methods of reliable and transparent cooperation and to understand the customer’s business. The customers are served by Metsä Fibre’s responsibility chain, which consists of professionals in sales, production, research and development, technical service, logistics and sustainability. The entire expertise of Metsä Fibre is available to its customers. END PRODUCTS Speciality products in the chemical industry and bio fuels Tissue paper Board Speciality products Printing papers Bioenergy FIBRES OF SUCCESS Customers are at the core of our operations. Our customer promise – Fibres of Success – contains five elements: high-quality products, technical expertise, functioning logistics, sustainability and cost-effectiveness. Our pulps, bio-chemicals and bio fuels are of high quality. Our skilled personnel and continuously developing production processes guarantee the even quality of our products. In addition to pulp, the Botnia product family includes technical services and joint development projects, that help our customers gain the best pos- HIGHQUALITY PRODUCTS COSTEFFECTIVENESS SUSTAINABILITY FUNCTIONING LOGISTICS sible benefits from fibre and achieve considerable savings. Functioning logistics means that we deliver products to the right place at the right time. We operate in a cost-effective and responsible manner. With our products and services, our cus- TECHNICAL EXPERTISE CUSTOMER tomers can reduce their environmental footprint and make more sustainable choices. Papers and boards manufactured from our pulp meet even the most stringent requirements. ONE STEP AHEAD Real-time information on the quality of fibre is not yet common. Usually, the information is only available after a couple of days, however Metsä Fibre’s Botnia FOX quality simulation tool makes it possible to obtain information, for example, on the strength potential of a pulp batch immediately when it is being manufactured. The calculation of strength potential combines pulp manufacturing theory, pulp process run values, customer feedback and statistical modelling. Botnia FOX won the Laatukeskus Excellence Finland’s Quality Innovation of the year 2012. Metsä Fibre's customers can also access the data in Botnia FOX by the RFID tag on the pulp unit. Based on the information, a paper or board manufacturer can adjust to the ratio of softwood pulp or pulp beating in the paper machine. The RFID is a more reliable identification method than a bar code and provides realtime information on when the pulp unit was used and its properties. Metsä Fibre is the world's first pulp manufacturer to adopt an RFID system at its mills, domestic ports, a number of unloading ports and at some of its customers. Its use will be further extended in the near future. PRODUCTS AND SERVICES 7
INTERNATIONAL BUSINESS JOUTSENO PULP MILL CAPACITY Metsä Fibre is one of the world's leading softwood pulp producers, and its main markets are Europe and the Far East. The combined total capacity of the pulp mills is 2.5 million tonnes of bleached softwood and birch pulp. 690,000 T PRODUCTS ECF BLEACHED SOFTWOOD PULP PERSONNEL 133 KEMI PULP MILL OWNERS Metsä Fibre is part of Metsä Group and owned by the parent company Metsäliitto Cooperative (50.2 per cent), Metsä Board (24.9 per cent) and ITOCHU Corporation (24.9 per cent). ILKKA HÄMÄLÄ, CEO Metsä Fibre is one of Metsä Group's core operations together with Metsä Board, Metsä Tissue, Metsä Wood and Metsä Forest. Metsä Group is a strong and responsible forest indus try group that uses renewable Northern wood and fresh forest fibre as the primary raw mate rials of its high-quality products. PRODUCTS ECF ARI HARMAALA, Senior Vice President, Sales and Marketing ISMO NOUSIAINEN, Senior Vice President, Production KAIJA PEHU-LEHTONEN, Senior Vice President, Business Development MIKAEL WESTERLUND, Senior Vice President, Finance BOARD OF DIRECTORS Metsä Group, President and CEO MARTTI ASUNTA, Vice-chairman, Metsäliitto Cooperative, Chairman of the Board HANNU ANTTILA, Member, Metsä Group, Executive Vice President, Strategy JUHA MÄNTYLÄ, Member, Metsä Forest, Executive Vice President MIKKO HELANDER, Member, Metsä Board Corporation, CEO ICHIRO TSUGE, Member, ITOCHU Corporation, Executive Officer METSÄLIITTO COOPERATIVE SALES TOTAL 4.9 GROUP'S PARENT COMPANY RAUMA PULP MILL CAPACITY 650,000 T PRODUCTS ECF BLEACHED SOFTWOOD PULP PERSONNEL 120 ÄÄNEKOSKI PULP MILL KARI JORDAN, Chairman, METSÄ GROUP 590,000 T BLEACHED SOFTWOOD AND HARDWOOD PULP PERSONNEL 169 CAPACITY MANAGEMENT GROUP EUR BILLION CAPACITY 530,000 T PRODUCTS ECF BLEACHED SOFT- WOOD AND HARDWOOD PULP PERSONNEL 171 METSÄ SVIR SAW MILL 250,000 M3 RAW MATERIAL SPRUCE PERSONNEL 142 CAPACITY PERSONNEL TOTAL 11,000 OWNED BY 123,000 FINNISH FOREST OWNERS METSÄ TISSUE METSÄ BOARD METSÄ FIBRE METSÄ WOOD METSÄ FOREST TISSUE AND COOKING PAPERS PAPERBOARD AND PAPER PULP WOOD PRODUCTS WOOD SUPPLY AND FOREST SERVICES SALES EUR 1.0 BILLION SALES EUR 2.0 BILLION SALES EUR 1.3 BILLION SALES EUR 0.9 BILLION SALES EUR 1.6 BILLION PERSONNEL 2,800 PERSONNEL 3,100 PERSONNEL 900 PERSONNEL 2 ,500 PERSONNEL 900 OWNERSHIP OF METSÄLIITTO COOPERATIVE 91% OWNERSHIP OF METSÄLIITTO COOPERATIVE 42.8% (HOLDING OF VOTES 62.2%) OWNERSHIP OF METSÄLIITTO COOPERATIVE 50.2%, METSÄ BOARD 24.9%, ITOCHU CORPORATION 24.9% OWNERSHIP OF METSÄLIITTO COOPERATIVE 100% OWNERSHIP OF METSÄLIITTO COOPERATIVE 100% 8 INTERNATIONAL BUSINESS
WIESBADEN SALES OFFICE GERMANY MILAN SALES OFFICE ITALY SHANGHAI SALES OFFICE CHINA PRODUCTION SALES MAIN MARKET AREAS MISSION VISION Our mission is to be the most cost-effective and professional supplier of pulp. Our vision is to be the most desired producer of high-quality pulp and services that support the customer’s business. VALUES RELIABILITY COOPERATION 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. We develop our operations in cooperation with our customers and share information and best practices with each other. We operate as one group of companies, utilising mutual synergies and relying on common benefits. RESPONSIBLE PROFITABILITY RENEWAL 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 development of operations. We are aware of future challenges and have the courage to question old practices in order to provide better products and services to our customers in support of their business operations. INTERNATIONAL BUSINESS 9
SUSTAINABILITY AT METSÄ FIBRE Sustainability is based on our company's main mission, vision and values, and is thus an essential part of our operations and daily work. We adhere to Metsä Group’s sustainability programme, and our operations are guided by Group-level objectives. Metsä Group has divided sustainability into four themes that cover the entire value chain of the operations. THE SMALLER THE ENVIRONMENTAL IMPACT, THE BETTER All human activity leaves a mark on our planet. Our production is no exception. It is important to use natural resources efficiently and to keep emissions and waste to a minimum. Our pulp mills produce over 10 per cent of Finland’s bioenergy. WE BRING THE FOREST TO YOU Our products originate from sustainably managed forests. We ensure that five new trees are planted to replace every felled tree. Metsä Group secures the sustainable procurement of raw materials at our production units. per cent of the wood used by Metsä Fibre 87 use originates from certified forests. The Joutseno mill uses no fossil fuels while operating normally. always know the origin of the wood we We use. Metsä Group procures the wood we use from sustainably managed forests. reduce odour emissions at our mills. We The largest project is the replacement of the wood chip silo in Joutseno. IMPROVEMENT OF ACCIDENT FREQUENCY RATE SINCE 2009 OVER 33% 10 SUSTAINABILITY REDUCTION OF PROCESS WATER VOLUME SINCE 2009 7% REDUCTION OF FOSSIL CO2 EMISSIONS IN 2013 5%
WE CREATE WELL-BEING We create well-being in workplaces and society as a whole and are committed to global sustainability principles. Safety of both our employees and our partners is our number one priority. The absence rate due to sickness was 4.1 in 2013 (2012: 4.2). The accident frequency was 8.7 in 2013 (2012: 7.9). Metsä Fibre employs approximately 900 people. The indirect employment impact is many times higher. TO THE LAST BRANCH 5m 3 WOOD WE OFFER SUSTAINABLE CHOICES Wood is an indefinitely renewing natural resource. We convert wood into safe and recyclable products that improve the quality of life. We know the environmental impact of our products. Our pulps are completely renewable and recyclable. About 10 per cent of Metsä Fibre’s sales are generated by bio energy and biochemicals. Our new Botnia Nordic+ pulps reduce the customers’ need to use energy for pulp beating. ONE TONNE OF PULP MAKES ANY OF THESE: 1,000 kg PULP 8,600 ROLLS OF KITCHEN PAPER APPROX. 300,000 A4-SIZE SHEETS OF PAPER SUSTAINABILITY 11
A SUSTAINABLE CHAIN FROM FOREST TO CUSTOMER Metsä Fibre manufactures products that help customers reduce their environmental footprint and make more sustainable choices. The mills use the best available technology, and Metsä Fibre actively develops its production units and personnel. It is important to us to use energy and natural resources efficiently and keep emissions to a minimum. We also take care of the safety of our employees and partners. Sustainablity is part of our daily operations: we set the objec ELECTRICITY SELF-SUFFICIENCY RATE OF METSÄ FIBRE IN ADDITION TO MILLS’ OWN USE MILLS’ EXCESS ELECTRICITY IS ENOUGH TO COVER 4 12 SUSTAINABILITY 144% THE ELECTRICITY NEED OF SOME 150,000 CITIZENS tives in our annual planning and monitor their implementation every day. We are committed to sustainable development throughout the supply chain and also require that our partners do the same. WE KNOW THE ORIGIN OF THE WOOD WE USE The raw material for Metsä Fibre’s pulp is wood supplied by Metsä Group from sustain ably managed forests. This raw material meets certification requirements in terms of wood procurement, pulp production and sales. Only around 10 per cent of the world's forests are certified. In Metsä Fibre, the pro portion of certified wood is 87 per cent. We always know the origin of the wood we use and at the same time we ensure the sustainable use and management of forests.
WE PRODUCE PLENTY OF BIOENERGY Pulpwood is utilised in full at our mills – it is used to manufacture pulp and to produce bioenergy and biochemicals. Our mills are a significant producer of bioenergy: Metsä Fibre accounts for over 10 per cent of bioen ergy produced in Finland. Metsä Group as a whole aims to reduce its carbon dioxide emissions from fossil fuels by 30 per cent and improve energy efficiency by 10 per cent by 2020 from the 2009 level. The CO2 target has been met as a result of energy efficiency efforts and bioenergy invest ments. For example, the Joutseno pulp mill has invested in a gasification plant which makes it possible to replace natural gas at the mill completely with biofuel made from bark. User experiences are currently being collected for the company’s other mills. Metsä Fibre’s energy efficiency has improved by approximately three per cent from the 2009 level, and we are working in a determined manner to meet the target. With the 2013 measures alone, the efficiency of the bioenergy business improved by several millions of euros. This was achieved by chal lenging earlier operating methods, intensify ing internal cooperation and implementing bioenergy themes in the daily operations. REDUCING THE BURDEN ON THE ENVIRONMENT Metsä Fibre aims to improve its environmen tal performance in a determined manner through investments, developing equipment and operating methods, and by using raw materials efficiently. Our mills are located in areas with ample water resources. Nevertheless, one of Metsä Group’s shared objectives is to reduce the use of process water by 10 per cent by 2020 from the 2010 level. Metsä Fibre has reduced its water usage by five per cent within the past five years. Our mills have replaced fresh water by reusing water in their processes more effi ciently. Effluent discharges from our mills have decreased and the organic load to the wastewater treatment plant has been reduced. Metsä Fibre invests in efforts to reduce emissions and discharges; moreover, the con trol of emissions into the atmosphere is being improved at several production units to improve the well-being of the neighbourhood. Combustion gas emissions from the mills have also been reduced by improving the effective ness of the combustion gas scrubbers. At Joutseno, investments are being made in the wood chip silo and the recovery boiler in order to reduce malodorous gases, and other emissions to the air. The amount of waste sent to industrial landfills has been reduced considerably due to increased use of waste in civil engineering and as a fertiliser. Metsä Fibre has reduced the landfill waste by over 30 per cent since 2012. SUSTAINABLITY IS PART OF OUR DAILY OPERATIONS. Metsä Fibre LOST-TIME ACCIDENT Finnish FREQUENCY RATE paper industry INCIDENTS PER MILLION WORKING HOURS, OWN PERSONNEL 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 BENCHMARKING FINNISH FOREST INDUSTRIES FEDERATION FOSSILE CO2 EMISSIONS 1,000 TONNES 250 200 150 SHARED SAFETY OBJECTIVES WITH PARTNERS Metsä Fibre ranks at the top of the forest industry in the world in terms of occupational safety. Long-term efforts have resulted in considerable reductions in accident frequency. The Kemi mill had the best safety status in 2013, with an accident frequency of 7.1, (8.7 in Metsä Fibre as a whole). We will con tinue our focused efforts to reach the target of zero accidents at work. Our safety management system prevents accidents before they occur. We emphasise the significance of preventive measures, such as our safety observation system and safety rounds and talks. The safety programme also includes investments in safety attitude train ing at each mill. Metsä Fibre also requires that its partners commit to occupational safety and responsible operations. The objective is to further improve the level of safety. 100 50 0 2009 2010 2011 2012 2013 EFFLUENT FLOW 1,000 M3 80 000 60 000 40 000 20 000 2009 2010 2011 2012 2013 READ MORE ABOUT METSÄ GROUP’S SUSTAINABILITY AT www.metsagroup.com/sustainability SUSTAINABILITY 13
MANAGEMENT OF ENVIRONMENTAL IMPACTS SHARE OF CERTIFIED WOOD 80 % 2009 87% 2013 14 MANAGEMENT OF ENVIRONMENTAL IMPACTS Production at the mills was at a good level in 2013. Metsä Fibre increased production vol umes without increasing water consumption and the specific load of wastewater also con tinued to decrease in accordance with the company's objectives. All of Metsä Fibre's mills carried systematic work in order to reduce the volume of wastewater. New process technology solutions continue to be sought in order to improve the efficiency of water usage. Metsä Fibre's wastewater loads were under control during the year under review. The organic load to the mill decreased and the specific load of organic load into waterways remained approximately at the same level as in the previous year. Nutrition loads to water ways downstream from the production units varied slightly. The wastewater permit limit was exceeded once. The monthly level of the phosphorus permit limit exceeded at the Kemi mill. Odours are the most prominent nuisance caused by the mills, especially at the Äänekoski mill. Compared to previous years, odour nuis ENVIRONMENTAL INVESTMENTS PULP MILLS, EUR MILLION 6 5 4 3 2 1 0 2009 2010 2011 2012 2013
ance increased at the Joutseno and Rauma mills, mostly due to emissions caused by process disturbances. The increase in production vol umes for its part sets new requirements for the recovery and processing of malodorous gases. Concerning emissions into the atmosphere, the daily permit limit was exceeded in the malodorous gas boiler at the Rauma mill, and the permitted sulphur dioxide content of the recovery boiler was exceeded when heavy fuel oil had to be burned during the mill start-up after the annual maintenance shutdown. The dust permit limit of the lime kiln was exceeded at the Joutseno mill. The volume of reused waste increased in 2013. In particular, the waste was used as material in civil engineering and as a fertiliser. Sludge and waste that can be burned were processed in the recovery and bark boilers. DEVELOPMENT PROJECTS Metsä Fibre continues to develop its environ mental performance systematically. In order to reduce the wastewater load, water balances were determined for the mills and options to reduce the wastewater load were investigated. All mills launched projects to reduce water usage. The sources of odour were investigated at the Äänekoski mill. In addition, a preliminary technical survey on processing wastewaters generated both in the municipality and the WE IMPLEMENTED SEVERAL PROJECTS TO INCREASE THE PRODUCTION AND TO REDUCE THE CONSUMPTION OF ELECTRICITY AND STEAM. integrated mill site was initiated. The causes of the organic load to the treatment plant were investigated at the Rauma mill, and the load to the treatment plant was reduced. A decision was made to conduct a survey on reducing strong malodor ous gases in Rauma in 2014. Investments will be made in a processing system for mild mal odorous gases in 2014. Department-specific COD load sources were investigated and the COD load was reduced in Kemi. The Joutseno mill's gasification plant was inaugurated in the spring of 2013. The bark gasification plant is a significant bioenergy project replacing natural gas burned in the lime kiln with biogas made from bark. More over, the mill's wood chip silo and the malo dorous gas processing system in the silo will be replaced in 2014. The investment will reduce the mill's odour emissions. In order to develop energy efficiency, the mills implemented several projects to increase the production and reduce the consumption of electricity and steam. The most important basic factor in environmental and energy efficiency is the good usability of the mills. Efforts to pro mote good usability will continue. MATERIAL BALANCE PRODUCTS EMISSIONS 2013 2012 1,183 4,046 223,000 1,017 713 3,981 234,000 1,092 2013 2012 12.4 12.2 874 945 119,223 109,987 TO AIR Sulphur SO2, incl. TRS sulphur t Nitrogen oxides NO2 t Carbon dioxide, fossil t Particles t MATERIALS PROCESS FUELS Fossil fuels GWh WATER Process and cooling water m3 2012 2.297 84,525 3,642 243,569 2.237 86,436 3,339 220,882 Electricity* GWh Heat* GWh Biofuel* GWh 596 863 1,293 691 739 1,463 2013 2012 * Includes only sold energy EFFLUENTS AND WASTE EFFLUENTS RAW MATERIAL Wood million m3 2013 Pulp million t Tall oil t Turpentine t Sawn goods m3 Chemical oxygen demand CODcr t Biological oxygen demand BOD7 t Phosphorus t Nitrogen t AOX t 29,223 502 23 331 282 27,169 397 25 397 277 42,853 177 62,664 135 SOLID WASTE Landfill waste t Hazardous waste t MANAGEMENT OF ENVIRONMENTAL IMPACTS 15
ENVIRONMENTAL BALANCE KEMI 604,421 564,454 RAUMA ÄÄNEKOSKI TOTAL 2013 TOTAL 2012 2,296,596 2,236,972 243,569 JOUTSENO 243,569 220,882 SVIR PRODUCTION Pulp T Sawn wood m 611,769 515,951 3 WOOD CONSUMPTION Total wood consumption 1,000 m3 Certified wood % 3,257 2,896 3,350 2,348 518 12,369 12,219 84 96 80 90 43 87 85 16,384 14,584 14,500 15,094 393 60,955 61,674 EFFLUENTS WASTE WATER Process water volume 1,000 m3 Total suspended solids T 234 400 264 461 18 1,378 1,356 Chemical oxygen demand (COD) T 5,707 8,393 10,260 4,814 49 29,223 27,169 Biological oxygen demand (BOD) T 106 134 133 122 6.7 502 397 Phosphorus (P) T 5.6 6.5 4.9 6.1 0.2 23 25 Nitrogen (N) T 83 126 47 73 2.4 331 397 AOX T 99 64 74 44 0 282 277 Sulphur dioxide (as SO2) T 314 142 170 406 0.5 1,033 481 TRS (as S) T 18 31 13 13 0 75 116 NOx (as NO2) T 1,029 1,033 1,082 880 22 4,046 3,981 CO2 from fossil sources 1,000 T 57 62 46 59 0.1 223 234 CO2 from biomass 1,000 T 1,314 1,304 1,291 981 22 4,911 4,720 Particles T 182 140 208 466 22 1,017 1,092 Landfill waste T 11,693 0 10,855 14,415 5,890 42,853 62,664 Hazardous waste T 31 52 50 44 0.1 177 135 AIR EMISSIONS WASTE ENERGY Wood based fuel use GWh 3,612 3,586 3,551 2,699 60 13,508 12,980 Fossil fuel use GWh 287 220 160 207 0.5 874 945 Purchased electricity GWh -273 -174 -195 32 14 -596 -691 Purchased heat GWh -25 -432 -239 -167 0 -863 -739 16 ENVIRONMENTAL BALANCE
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. The figures for Finnish mills in 2012 come from Finnish Forest Industries Federation and the figures for Swedish mills from Swedish Forest Industries Federation. CHEMICAL OXYGEN DEMAND (COD) KG / PULP TONNE 50 45 40 35 30 25 20 15 10 5 RAUMA KEMI JOUTSENO ÄÄNEKOSKI 0 Metsä Fibre mills 2013 Pulp mills in Sweden 2012 Pulp mills in Finland 2012 BAT max BENCHMARKING ANNUAL REPORTS CHLORINE AND OTHER HALOGENS BOUND TO ORGANIC MATERIAL IN EFFLUENT (AOX) KG /ADT 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 JOUTSENO RAUMA KEMI Metsä Fibre mills 2013 Pulp mills in Sweden 2012 0.05 0 ÄÄNEKOSKI 0.10 Pulp mills in Finland 2012 BAT max BENCHMARKING ANNUAL REPORTS PHOSPHORUS (P) G/ PULP TONNE 100 90 80 70 60 50 40 30 20 10 ÄÄNEKOSKI KEMI JOUTSENO RAUMA 0 Metsä Fibre mills 2013 Pulp mills in Sweden 2012 Pulp mills in Finland 2012 BAT max BENCHMARKING ANNUAL REPORTS SPECIFIC EMISSIONS 17
Cover: Carta Integra 210 g/m2, interior: Galerie Art Silk 130 g/m2. © Metsä Fibre 2014 METSÄ FIBRE P.O. Box 30 02020 METSÄ, Finland tel. +358 104 612 www.metsafibre.com PEFC/02-31-120
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