CREATINGCREATING VALUE VALUE

THROUGHTHROUGH

COOPERATIONCOOPERATION

Cooperatives

Efficient solution for• wood mobilisation • wealth generation in family forest ownership conditions

Succesful examples - small & large scale • local heat generation cooperatives

– Using wood from young stand thinnings• large scale forest industries

– Metsäliitto Group– Södra

• Tenth largest forest industry group in the world• Sales EUR 9.3 billion• Personnel 25 000 • Production units and sales offices in 30 countries• 130 000 owners of private forests in Finland:

– 5.3 million hectares of forests– 48% of all private forests

MetsäliittoCooperative

Wood Supply Wood Products

Industry

SalesEUR 3.5 billion

Metsä-Botnia

Pulp

SalesEUR 1.3 billion

M-real

Paper and Board

Sales

EUR 5.6 billion

Metsä Tissue

Tissue andCooking Paper

SalesEUR 0.8 billion

Metsäliitto Group

Focus in EuropeMetsäliitto Group (incl. Moelven) production plants

Metsäliitto Wood Products Industry (Finnforest) + Moelven

Metsä-Botnia

M-real

Metsä Tissue

Head offices, Espoo

Business idea

Metsäliitto

• procures and markets wood raw material produced by its members as efficiently as possible

Marketing

Transport

Supply

Processing

Customers Forest owners

To increase the shareholder / forest owner value

Optimisation through data network

ML-93

70 M

Wirelesstransmissio

n

Sap R/3

Transport

planningGPSGIS

400 harvesters

420 trucks

400 forwarders

100 mills

350 foremen

Group history

19341934Metsäliitto Oy *1953*1953

Metsäliiton Selluloosa Oy foundedPurchase of Wärtsilä Selluloosa Oy’s capital stock

19471947Metsäliitto

Cooperative

1948-59*1948-59* Metsäliitto Cooperative’s first

industrialisation period

1973Metsäliitto Group

1977Metsä-Botnia

1986 Metsä-Serla 2001 → M-real

2001 Thomesto 2005→ Metsäliitto

1990 Finnforest2006 → Metsäliitto

1997 Metsä Tissue

0

5

10

15

20

1934-1950

1951-1960

1961-1970

1971-80

1981-1985

1986-1990

1991-1995

1996-2000

2001-2005

Wood purchases from private forests in Finland

million m³

Wood utilisation in Finland 2005

Metsäliitto’s wood purchases

Kemi 2 400KaskinenMerikarvia 2 000Rauma 2 600ÄänekoskiSuolahti 2 600Vilppula 1 400Kuopio 600LohjaKirkniemi 800Renko 600TampereKyröskoski 1 000Joutseno SimpeleMyllykoskiSunila 5 100

1 000 m3

Eskola 140Kyrö 370Lappeenranta 520Soinlahti 440Punkaharju 400

Exports 160

Metsäliitto Group’s production units: 19.7 million m3

Total: 24.1 million m3

Cooperatives providesolutions

• Effective wood mobilisation• Marketing channel for members’ wood• Raw material use optimisation• Councel and forest management services for forest

owners• Promotion of sustainable forestry• Wealth creation from renewable source

It actually works!