Metsä Group

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THE PULP MILL OF THE FUTURE

Niklas von Weymarn, VP Research, Metsä Fibre

Metsä Fibre

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Metsä Group

VIDEO

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Metsä Fibre

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Metsä Fibre, key figures 2013, continuous operations

Personnel, year end

1,313 million euros

Wood consumption

Pulp capacity

Energy self sufficiency, electricity

Result before tax

Sales

197 million euros

Around 900

2,460 million tonnes per annum

12.5 million m3

144 %

Metsä Fibre

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Metsä Fibre, international and renewing

Metsä Fibre

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Metsä Fibre’s pulp mills are located in Finland

Kemi Capacity: 590,000 tonnes

Wood consumption: 2.9 million m3

ECF-bleached softwood and hardwood pulp

Personnel: 169

Rauma Capacity: 650,000 tonnes

Wood consumption: 3.4 million m3

ECF-bleached softwood pulp

Personnel: 120

Äänekoski Capacity: 530,000 tonnes

Wood consumption: 2.4 million m3

ECF-bleached softwood and hardwood pulp

Personnel: 171

Joutseno Capacity: 690,000 tonnes

Wood consumption: 3.4 million m3

ECF-bleached softwood pulp

Personnel: 133

Metsä Fibre

We operate in the international market

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We are a Finnish forest

industry company and we

operate in the international

market.

Our main market area is

Europe. One quarter of Metsä

Fibre’s pulp is sold to Asia.

Pulp deliveries 2013

Metsä Group

WHY A NEW MILL?

WHY IN FINLAND?

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Metsä Group

1. Growing demand for bleached softwood pulp

‒ Global demand for bleached softwood pulp grows

steadily

‒ Growth is strongest in Asia, especially in

China

‒ However, the Supply/Demand Balance of

bleached softwood market pulp is expected to

stay over 90%*, if current situation endures

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Demand for softwood pulp

+9%

million tonnes

* PPPC, Nov. 2014 (incl. investment decisions made)

Metsä Group

2. The use of Finnish wood can be increased sustainably

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Forest growth

Sustainable harvesting potential

Use of domestic wood

Industrial use of wood

Imported wood

million m³

Source: Finnish Forest Research Institute

Metsä Group

Cooperation starts in the forest

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Metsä Group

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Source: Pöyry Management Consulting

* Based on the grade allocation in Pöyry’s SmartTerminal

0

200

400

600

800

1000

051015202530

Weighted average technical age

about 21 years

Metsä

Fibre

WEAK

STRONG

Weighted average

capacity 508 000 t/a

Weighted average bleached

kraft pulp capacity*, 1000 t/a

Technical age, years

Bubble size reflects the

allocated market BSKP capacity

3. Äänekoski is Metsä Fibre’s oldest mill

Metsä Group

The first next-generation bioproduct mill in the world

‒ The biggest investment in the forest industry in Finland

‒ EUR 1.1 billion

‒ Annual pulp production 1.3 million tonnes (currently 0.5)

‒ Use of wood 6.5 million m³ annually (currently 2.4)

‒ Over 2,500 jobs in the whole value chain in Finland (currently

about 1,000)

‒ Internal financing approximately 40 per cent

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Metsä Fibre

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Metsä Group Metsä Group

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Metsä Group

WHY A BIOPRODUCT MILL?

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Metsä Group

Big picture

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Unprecedented economic and population growth

However, the development has not benefitted all and is

really testing the limits of our planet

Healthier people

INDUSTRIAL REVOLUTION

WHERE ARE WE IN 50 YEARS?

Source: UN Population division

Billion

persons

UN 2012 report by the High-level

Panel on Global Sustainability: By 2030, the world will need at least 50% more

food, 45% more energy and 30% more water –

all at a time when environmental boundaries

are throwing up new limits to supply

Metsä Group

Leading in terms of bioenergy solutions and efficiency

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TOTAL

9.0 million m3

FOREST ENERGY

0.5 million m3

ROUNDWOOD

2.0 million m3

PULPWOOD

6.5 million m3

BIOPRODUCT MILL

SAWMILLS AND

PLYWOOD MILLS

PRODUCTION

OF BIOENERGY

1.0 TWH

9.6 TWH

1.0 TWH

Energy efficiency

Energy self-sufficient

Fossil free

Increase of over two

percentage units in terms

of renewable energy use in

Finland

Metsä Group

NEW BIOPRODUCTS

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Metsä Group

Modern, energy-efficient pulp mill as the core

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BIOSLUDGE BIOGAS

FERTILIZER

PULPWOOD

PULP

Metsä Group

Several product opportunities

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Source: Finnish Bioeconomy Cluster FIBIC

Metsä Group

Additional benefits

‒ Globally unique ecosystem

‒ Significant opportunity for small and medium-

sized enterprises

‒ Close collaboration with the city of Äänekoski

in various areas including water purification

and district heating

‒ Leading mill in environmental performance

‒ Chain of custody – From wood to brand owner

‒ Environmental and societal aspects

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Metsä Group

The schedule of the bioproduct mill

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2014 2015 2016 2017 YEAR

MONTH

Pre-planning,

IEA and

environmental permit

processes start

Pre-planning

and environmental

permit

ready

Civil engineering,

Contracts of main

machines

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Installations of

Main

machines

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Investment

decision

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Testing

2018

1 8

Start-up

of the

mill

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Nominal p

roduction

begins

Metsä Group