ahlstrom supplier manual issue c 122011€¢ we know our business, ... • employee involvement...

Global Sourcing, Issue C, December 2011

Supplier

Manual

2 Global Sourcing, Supplier Manual Issue C, December 2011

Foreword Ahlstrom successes are attributed to ensuring we achieve maximum satisfaction at all levels of our business. Ahlstrom

employees and suppliers are critical in maintaining our success and developing our Business.

Communication is essential; if Ahlstrom does not clearly communicate requirements, then requirements cannot be

met. This Supplier Manual is all about clearly communicating our requirements.

Introduction

Ahlstrom is a high performance materials company, partnering with leading businesses around the world to help

them stay ahead.

Ahlstrom Headquarters remain in Helsinki, Finland; with manufacturing based in 14 countries and 3 continents. The

manufacturing sites are complemented with an extended global Sales offices network.


Ahlstrom’s Values

Act responsibly

• We operate in an ethical manner towards people and environment

• We respect people and differences

• We do the right things, in the right way, at the right time

• We care for our community

Create value • We know our business, customers and suppliers

• We contribute to long term development of customers, suppliers and company

• We deliver on promises

• We strive for excellence in everything we do

Learn and renew • We are ready to change

• We actively look for new ways of doing things better

• We share information and cooperate across the organization

• We learn from our mistakes

Ahlstrom’s Quality Policy

Ahlstrom is committed to providing value based quality products and services through:

• Focus on continually enhancing customer satisfaction

• Flexibility to grow and change to meet market demands

• Organizational pursuit of organic and strategic growth

• Innovative solutions

• Strong, competent, engaged workforce

• Employee involvement & commitment to continuous improvement

Wilfrid Berthelot Martin Kunz Manager Supplier Performance Vice President Global Sourcing Ahlstrom Ahlstrom


Contents Page

Distribution and Revision Control

Overview 6

Distribution 6

Revision 6

General Requirements

Rights of Ahlstrom 6

Confidentiality 6

Supplier Quality Requirements

Overview 7

Purpose and Goal 7

Supplier Quality Objectives 7

Supplier Management Philosophy 7

Supplier Responsibility 8; 9

Supplier Performance 10; 11; 12; 13

Environmental Management System 14

Supplier Evaluation

Purpose 15

Responsibility 15

Scope 15

Scoring 15

Corrective Action 16

Potential Suppliers 16

Existing Suppliers 16

New Product Introduction 17

Supplier Re-charging 17

Purchasing Information

Overview 18

Request for Quotations 18

Purchase Orders 18

Purchase Order Terms and Conditions 18

Certificate of Origin 19

Electronic Data Interchange (E.D.I.) 19

Supplier Overview 20

Warranty 20

Insurance 20

Sales to Third Party 20

Confidentiality 21


Packaging and Logistics Guidelines

Introduction 22

Labeling Requirements 22

Paperwork 23

Refusal 23

Quality Issues 23

Delivery Requirements

Overview 24

Definitions 24

Invoice Requirements 24

International Shipping Documents 25

Certificate of Origin 25

Supplier Code of Conduct 26; 27; 28

Revision Summary 29

Supplier Manual Register & Issue / Revision Sheet 30

Appendix 31

Supplier Overview 32


Distribution and Revision Control

Overview

This is a controlled document. Ahlstrom Supplier Performance maintains a list of those suppliers and the Ahlstrom

internal departments which have received a copy and issues revisions to copyholders.

Distribution

This manual is written under the direction of Ahlstrom Global Sourcing. Ahlstrom Supplier Performance issues

controlled copies of the manual.

Revision

This Supplier Manual will be reviewed and, if needed, revised at least every two years under the direction of Ahlstrom

Supplier Performance. After revision, Ahlstrom Supplier Performance will send an email to all copyholders, internal

and external, advising the details of the revision and providing a link to the Ahlstrom Supplier Manual located on the

Ahlstrom Web Site.

Upon receipt of either the initial copy of this manual or future revision notification emails, and having downloaded

the latest revision from the Ahlstrom Web Site, copyholders shall confirm receipt by signing the Ahlstrom Supplier

Manual Register & Issue / Revision Sheet and returning it to the sender.

General Requirements

Rights of Ahlstrom

Ahlstrom reserves the right to examine all suppliers’ documentation, as referred to in this manual and in relation to

other requirements of Ahlstrom such as ISO 9001, ISO TS 16949.

The supplier agrees to permit Ahlstrom and its customers (if required) access to all parts of the business premises,

including test laboratories, warehouses and other areas of interest, and to allow them to view relevant documents.

The supplier also guarantees this for his sub-suppliers.

Ahlstrom accepts any reasonable restrictions imposed by the supplier deemed as necessary to safeguard the

supplier's business secrets.

Confidentiality

Suppliers and Sub-Contractors shall protect as a trade secret all commercial and technical information not publicly

available which becomes known to them through the business relationship. Information may not be disclosed to third

parties or made accessible in any other way. The duplication of any documents that may have been provided is

permissible only within the framework of commercial requirements and the terms of copyright.

Failure to comply with the above may result in Legal Action being taken.


Supplier Quality Requirements

Overview

Ahlstrom is committed to serving the needs of our customers by supplying the highest quality and support services in

the world. To do this we must continually strive to improve our product quality while providing value to our

customers.

Realizing that communication and cooperation are key elements to maintaining high quality standards, this manual

has been developed to be used as a guide for aiding suppliers to understand the quality requirements that are

expected when supplying products and services to Ahlstrom

The guidance provided by this manual applies to all purchased components and materials used by Ahlstrom facilities.

However, if the requirements of this manual conflict with terms and conditions or specific requirements incorporated

into the purchase order, the requirements of the purchase order shall be final.

Questions concerning this manual should be directed to the Ahlstrom Supplier Performance who will act as the

primary contact between suppliers and other functions within Ahlstrom.

Purpose and Goal

The purpose of this manual is to define Ahlstrom’s expectation of suppliers. Your understanding and compliance with

these requirements is an important building block toward achieving our quality commitment to our customers.

Continued growth in our current markets and entrenchments in new markets world-wide requires that we not only

meet our customers’ needs and requirements, but exceed those needs while adding value through enhanced

products and services.

Supplier Quality Objectives

The company’s supplier quality objectives exist to ensure that our quality requirements are accurately specified and

communicated. Specifically, we:

• Expect 100% conformance to all quality requirements

• Strive to ensure that our quality and reliability levels are maintained on a continuous basis

• Strive to eliminate the need for incoming inspection through supplier certification

• Expect Supplier to apply continuous improvement in products and services

Supplier Management Philosophy

We require that our suppliers demonstrate the understanding and commitment that quality is designed and built into

every step of the manufacturing or distribution process.

Furthermore, we expect a commitment on the part of our suppliers’ administrative services to deliver quality as well.

Quality must be everyone’s job.

Quality can be defined in many ways. We believe “Conformance to Our Customers Requirements, Needs and

Expectations” best describes Ahlstrom’s philosophy.

Our approach is to consider suppliers as an extension of our own operations. Underlying this relationship is a mutual

commitment to assure that quality; cost and delivery requirements are completely defined and agreed upon before

delivery begins.

ISO 9001 is the minimum expected requirement of suppliers to Ahlstrom. If such certification is not available Ahlstrom

expects suppliers to be committed to introduce and maintain a quality management system that satisfies the

requirements contained in ISO / TS 16949, which is desired but not mandatory.

Where suppliers to Ahlstrom are trading companies, Ahlstrom requires proof of certification of the manufacturers

Quality Management system.

In the spirit of partnership Ahlstrom Supplier Performance provides support to our suppliers for the development of

the Quality Management system where needed.


Supplier Responsibility

Organization

The supplier shall clearly document their quality system. Personnel who are performing quality functions shall have

well defined training, responsibility, authority and organizational freedom to identify, evaluate and solve problems

that affect quality.

Quality Planning

The supplier shall review all requirements specified on the Ahlstrom purchase order, engineering relevant drawing ,

specifications and documents during the earliest practical phase to assure that compliance can be attained.

The supplier is expected to identify and provide for the controls, processes, test equipment, fixtures, tooling and skills

required to ensure consistency in product quality.

Ahlstrom expects its suppliers to be committed to a quality assurance program consisting of :

• Defect Prevention

• Problem Solving

• Corrective Action

Records

For each Ahlstrom item delivered the supplier shall maintain a file consisting of the following items:

• Purchase Order

• Inspection Reports

• Specifications to the correct engineering change level

• All specifications and documents referenced on the purchase order and this manual

• Any deviation requests authorized by Ahlstrom.

Measurement and Test Equipment

Measurement and test equipment used in the manufacture and/or inspection of Ahlstrom products will be calibrated

to measurement standards that are traceable to the appropriate National Standards of the country of manufacture.

Equipment will be calibrated at intervals necessary to ensure accuracy.

Part and Process Validation

Initial Sample inspections will be performed on items produced for Ahlstrom. The purpose is to determine prior to

delivery that the goods meet the specifications & requirements and that methodologies are compatible.

Initial Sample shall be representative of that produced from production tooling and workmanship that can be

expected on future shipments.

If non-conformances are found, the non-conformance is to be noted on the report, and only Ahlstrom will make a

determination of the disposition.

A new sample inspection will be performed when:

• The processing method is changed

• Specification changed or a change in raw material formula.

• Tooling is moved from one facility to another

Notification of Changes

The supplier is responsible for notifying Ahlstrom Supplier Performance of any changes affecting product quality,

performance, reliability, packaging, delivery or workmanship. No revisions to design, materials, tooling or processes

are acceptable without prior writing approval from Ahlstrom.


Material Packaging

If packaging is not specified, the supplier will ensure that good commercial packaging techniques are followed.

Improper packaging or lack of proper identification will be cause for rejection of material when received.

Supplier Reliability

Ahlstrom operates on the premise that the supplier has inspected and removed all defective parts from the shipment.

A single defect found in the batch will be cause for rejection of the entire batch without further inspection. Ahlstrom

will not be liable for product not meeting required specifications. Product will only be accepted upon Ahlstrom

customer acceptance.

A shipment received by Ahlstrom may prove to be defective at a later point in it’s life cycle. The supplier is liable for

goods throughout Ahlstrom receiving, storage and process, except for deterioration due to exceeding shelf life or

improper handling.

Inspection and Sampling Methods

Ahlstrom employs a variety of inspection methods. These include sampling inspection. Inspection and sampling

methods are determined primarily from historical data. Complexity of the component produced and the criticality of

the products end use are two of the criteria which determine the extent of the inspections performed.

Ahlstrom requires Certificates of Analysis to accept incoming shipments.

Non-Conformance Requests

Ahlstrom requires its suppliers to manufacture or supply all materials to specifications. Should the need arise to

deviate from the specification; a request must be made to Ahlstrom receiving location Quality Department for a

temporary deviation to allow non-conforming product to be shipped.

The request will be evaluated by Ahlstrom Quality, Engineering and Supply Chain Departments. The request must be

supported by full details of the deviation from specification and an appropriate Improvement Plan.

Ahlstrom will make every reasonable effort to grant such “one time” requests but is under no obligation for approval.


Supplier Performance

Overview

As Timing and Quality are critical factors in our business, product failing to arrive within scheduled “windows” or

receiving product that doesn’t meet our quality requirements hinders Ahlstrom ability to effectively service our

customers.

QUALITY

Quality Performance Evaluation

Ahlstrom will continuously evaluate supplier ratings and performance. Suppliers who have adverse performance

below the determined acceptable vendor rating will be expected to provide an improvement plan showing a course

of action to achieve compliance.

The supplier Quality Rating is an integral part in the determination of awarding of future business.

Conformance to Specification: a) Number of Shipments in Spec

• Purpose is to ensure incoming raw materials conform to mutual specifications

• Based on shipments in spec versus shipments delivered

b) Notification of Changes to Product or Process

• Expectation is that Ahlstrom is made aware of changes prior to their implementation

• Allows for Ahlstrom to plan ahead with trials as necessary

c) Unilateral or Bilateral Specifications

• Purpose is to have a mutually consented specification in place, minimizing risk with both Ahlstrom and the

supplier

Compliance Data: a) Receipt of Timely & Correct Certificate Of Authenticity (COA)

• Ahlstrom relies on the timely receipt of COA’s, prior to or at time of delivery, to release shipments to

production

• COA’s which are later deemed to be incorrect or missing data may lead to production delays, to which the

Supplier may be held accountable for any extra costs

• COA’s should be emailed or faxed to Ahlstrom respective plant Quality Appraisal

• Bulk chemicals and silo resin pellets must have COA’s signed off by Ahlstrom prior to unloading

b) Effective and Timely Response to Corrective Actions Requests (CAR)

• Ahlstrom expects Suppliers to investigate and address quality issues such that they will not reoccur

• Quality issues investigated with on site (Ahlstrom) meetings and technical investigation

• Indication of root cause and potential corrective actions identified within 5 working days, or as indicated on

the corrective action request.

Process Control: a) Evidence of Statistical Process Control (SPC), Trend Analysis / Continuous Improvement

• Purpose is to demonstrate the ability to produce process capable materials

• Trend analyses submitted every 6 months, including summaries showing Cpk (on critical characteristics

agreed by both parties)

• Expectation is that the Supplier will provide technical summary, detailing what improvements will be made

to improve upon product variability

• Identification of trends or shifts in results indicating possible concerns at Ahlstrom


b) Quality Management System

• Ahlstrom respects companies which are committed to a total quality management system

MANUFACTURING Performance: a) Loss of Product due to Raw Material Performance

• Ahlstrom expects raw materials to be fit for the intended use

• Deviations of Ahlstrom product performance as a result of the raw material will not be tolerated and may

result in a Supplier claim

b) Loss of Machine Efficiency due to Raw Material Performance

• Ahlstrom expects raw materials which can be consumed at historical Ahlstrom production rates (at a

minimum)

• Deviations from standard Ahlstrom production rates as a result of the raw material will not be tolerated and

may result in a Supplier claim

Health, Safety, Environment: a) Ergonomic Design of Packaging

• Ahlstrom requires suitable packaging which eliminates ergonomic issues due to handling

• Packaging must be practical for the quantities used during production

b) Material Safety Data Sheet (MSDS) sent to Ahlstrom (no older than 60 months or when any change has been

made)

• Current MSDS of raw material must be on file at Ahlstrom

• Changes to the raw materials affecting MSDS must have their MSDS updated and sent to Ahlstrom

respective plant Safety Department

c) ISO 14001 Certified (or equivalent)

• Ahlstrom respects companies which are committed to systems which protect the environment

• Current ISO 14001 certificate (or equivalent) must be on file at Ahlstrom

d) ISO 18001 Certified (or equivalent)

• Ahlstrom respects companies which are committed to the safety and well being of their employees

• Current ISO 18001 certificate (or equivalent) must be on file at Ahlstrom

Packaging: a) Satisfactory to Protect Raw Material

• Contaminated raw materials will not be used at Ahlstrom and will have to be replaced by Supplier

• Packaging must withstand transit from Supplier to Ahlstrom, as well as general handling of material

• Packaging cannot include materials, or allow raw material to be exposed to environmental conditions,

which could further contaminate the general manufacturing process at Ahlstrom. This includes, but is not

limited to, cardboard, sources of bioburden/microbiological growth, and nitrogen oxide fumes, which could

be easily introduced into the process.

b) Packaging is environmentally Responsive / Reusable

• Ahlstrom respects companies which are committed to systems which protect the environment

• Domestic sourced products should be supplied in reusable containers as much as possible

c) Packaging Requirements

• Any change to validated packaging cannot be made without Ahlstrom written formal approval.


SUPPLY CHAIN

Delivery of Ordered Quantity:

a) On-Time Delivery

• Bulk chemicals and domestic goods must be received within on the date of requested delivery.

• All imported raw materials must be delivered to port (transfer of ownership) on or before the requested date

available to ship.

• When other raw materials are received with purchase orders / releases requiring a leadtime, it is expected

that the delivery of the product will be made within 0-2 days prior to request delivery date.

b) Ordered Quantity In Full (+/- 10%)

• It is expected that 90-110% of the ordered quantity will be received as requested.

• Any changes to ordered quantity must be communicated to Ahlstrom prior to shipment.

c) Confirmation of Delivery / Ship Date

• Electronic exchange of information, confirming delivery schedule and anticipated receipts.

d) Shipping documentation included with shipment or for shipment

• Original bills of lading and packing lists must be included with the shipment.

• Imported raw materials must have all shipping documents sent to Ahlstrom freight forwarder.

• Consequential costs due to non conform or missing shipping documents will be the responsibility of the

Supplier.

• Certificates of Analysis must be sent via fax or emailed to Ahlstrom respective Quality Appraisal. Bulk

chemical COA’s must also be sent with the shipment.

Service:

a) Effectiveness of Communication

• Discussions should include decision making personnel where action items can be effectively assigned

b) Next business day response time to any issue

• Order confirmation / acknowledgements

• Notification of plans to replace material if quality issues arise

• Backups identified for key contacts

c) Target 100% on time delivery/availability, notify in advance if delivery will be late

• Purpose is to proactively alert Ahlstrom when deliveries will be delayed, such that alternative plans can be

made

• Bulk chemical suppliers must achieve 100%

• All other domestic suppliers must notify prior to 7 days before delivery date

• All imported raw material suppliers must notify prior to 7 days before availability to ship date

• Any delays in shipping which may affect delivery date must be communicated as soon as recognized


Competitive Value:

a) Payment Terms / Consignment / Vendor Managed Inventory / Logistical Flexibility

• Purpose is to measure the supplier’s ability to improve Ahlstrom working capital

b) Price Compared to Commodity or Competition

• Ahlstrom’s desire is to look past purchase price and look at total cost of raw material (factoring in freight

costs, runnability issues / claim value, inventory value)

• Long term predictability of price (according to market)

c) Incentives / Rebate Program

• Purpose is to show commitment in partnering with supplier for mutual benefit

d) Ahlstrom's Economical Order Quantity can be met

• Ability to supply appropriate volume to satisfy production at Ahlstrom in an effort to improve working

capital

Technical Innovation:

a) Wide Range of Product Portfolio

• Wide range allows for Ahlstrom to optimize supplier base for multiple products (relative to industry)

• Ability to service Ahlstrom with variety of products, processes, and technologies

b) Bringing Forth Innovative Ideas to Ahlstrom / Continuous improvement (re: product)

• Interaction at Ahlstrom site level, as well as corporate level

• Proactively developing new products to meet Ahlstrom needs


Environmental management system

As the world becomes more industrialized environmental protection and conservation of resources are becoming

steadily more important social duties. Environmental protection integrated in products and production for all steps in

the process - from development to disposal can only be effective and sustainable when realized with the cross-

divisional cooperation of all participants. Our declared objective therefore, is to work together with environmentally

advanced suppliers and service providers who are willing to undergo environmental certification and who can at least

provide documentary evidence of planning in this direction.

Ahlstrom expects suppliers and service providers to implement and adhere to all statutory environmental protection

and safety regulations.

Ahlstrom requires that the requirements contained in the environmental standard DIN EN ISO 14001, EMAS, ELV,

ROHS, REACH and the worldwide Responsible Care Initiative of the chemical industry be incorporated in the QM

system and that the system be certified externally.

It is particularly important that development and process planning take into account the potential environmental risks

and the environmental impact and that these be communicated to Ahlstrom. Substances banned by the paper

industry in general and Ahlstrom customers (Automotive; Food; Medical; etc…) must not be used.

Ahlstrom recommends that the requirements of the OHSAS18001 safety standards be integrated in the quality

management system.

The supplier shall keep its plants orderly and clean and pay attention to safety in the workplace.


Supplier Evaluation

Purpose

To establish a procedure and method of measuring Ahlstrom potential and existing suppliers. The procedure will also

form the start point for the supplier’s development / continuous improvement efforts.

Responsibility

Ahlstrom Supplier Performance will be responsible for scheduling and conducting audits. The Ahlstrom Supplier

Performance will issue the results and follow-up action plans that are required.

Scope

The Supplier Assessment Report is intended to evaluate the supplier’s quality control system. The following areas will

be evaluated:

• Management Responsibility

• Quality

• Environment & Safety

• Process Control

• Materials Management

• Logistics

• Sub-Supplier Development

• Design & Development

• Manufacturing & Test Facilities

• Continuous Improvement

• New Product Introduction

• Cost Control

Scoring

The supplier’s score will be based on the degree to which they have implemented a Total Quality System that

consolidates continuous improvement.

All questions require objective evidence to obtain maximum point value.

Scoring is recorded by section. Points can be awarded for informal systems that are not procedural. Zero points will

be awarded for areas that cannot be supported by written procedures or verbal negotiation.

The following guidelines will be used by Ahlstrom:

• If the Total rating is less than 59% � “D” status will be granted

• If the Total rating is 60% - 69% � “C” status will be granted

• If the Total rating is 70% - 79% � “B” status will be granted

• If the Total rating is 80% - 100% � “A” status will be granted

Note: Regardless of the Total rating scored, if any section scores less than 50% �� “D” Status will be granted


Corrective Action

At the completion of the initial survey/audit, the areas of concern will be discussed with the suppliers’ senior

management. Depending on the magnitude of the corrective actions awarding of business may be withheld. An

Improvement plan will be necessary to achieve compliance with the supplier survey/audit. This process will be

monitored by Ahlstrom Supplier Performance.

Potential Suppliers

All potential suppliers will be evaluated prior to placement of an order. A supplier survey/audit is a prerequisite to an

order. If the Total rating is less than 60%, Ahlstrom will not proceed with placing business orders to supply product.

Existing Suppliers

Following the initial survey and the submission of a Supplier Improvement Plan, audit reviews will be undertaken as

deemed necessary to up-date current ratings.

A follow up survey may also be performed for one of the following reasons:

• As a result of current performance or quality issues

• As a result of placement of significant new business

• A change of manufacturing location or senior management


New Product introduction

Supplier project planning is a key aspect of all new projects undertaken by Ahlstrom and consists of a series of

meetings to formally review the status of all elements of the suppliers planning process.

Once a supplier has been nominated for work on a new project Ahlstrom Supplier Development will arrange the initial

Supplier Project Planning Review Meeting.

Ahlstrom Supplier Development will take care of the project planning follow up as necessary (meetings, actions,

planning, etc...)

Supplier Chargeback

Quality defects or discrepancies in delivery may result in a re-charge to the supplier. The actual charge to the supplier

is determined by the costs incurred by Ahlstrom resulting from the discrepancy.

Chargeback is typically processed as a debit against open invoices.

Debits for charges incurred will be made in the currency specified on the Ahlstrom Purchase Order.


Purchasing Information

Overview

Ahlstrom realizes that only by developing partnerships with our suppliers will provide possibility to achieve the goal of

exceeding the expectations of our internal / external customers and grow our businesses together. In an effort to

establish a basis for these partnerships Ahlstrom has established the following requirements:

Request for Quotations

It is important that the Supplier complete all of the fields on the Ahlstrom Request for Quotation form. The amount

of time spent following up incomplete quotes far exceeds the amount of time needed to complete it properly the first

time. Insufficient information will cause a delay in the quoting process and may result in the suppliers not being

selected for new business orders to supply product. We have no objection to the use of a Supplier’s (own) Quotation

Response format (if no Ahlstrom form provided) as long as it provides all of the information listed below:

• Request for Quote Number (R.F.Q. No.)

• Item Number

• Item Description

• Estimated Annual Usage (E.A.U.)

• Economical Manufacture Quantity (Minimum Order Quantity)

• Release Quantity

• Weight

• First Sample Lead Time

• First Production Batch Lead Time

• Box Quantity

• Cost

• Payment terms and Incoterms

• Country of Origin (where items are manufactured)

• Deviations from Print Specifications (if applicable)

Insufficient information can result in a response to be considered invalid and considered as a “No Quote”.

Purchase Orders

Ahlstrom may elect to correspond with a supplier via Discrete Purchase Orders, or Material Release Schedules

compiled under our MRP operating system. The supplier must comply with all requirements as stated in the purchase

order or supplier schedule contract documents.

Purchase Order Terms and Conditions

Ahlstrom Terms and conditions are included on the reverse of Ahlstrom Purchase Orders.


Certificate of Origin

Upon importing or exporting goods government customs require information on the goods that are crossing their

borders. Two key pieces of that information are Country of Origin (COO) and Harmonized Tariff Schedule Code (HTS

Code). COO and HTS Codes are specific by product.

In order to comply with U.S., Canadian and Mexican Customs requirements Ahlstrom must have a signed COO

certificate verifying COO and HTS codes for all parts supplied. To benefit from the preferential duty treatment offered

under the NAFTA program eligibility must be substantiated annually. Ahlstrom also requires a Certificate of Origin for

each new item that is supplied within the current year with the initial order. If the merchandise you supply to

Ahlstrom is manufactured outside a NAFTA country (US, Canada, or Mexico), a COO certificate is still required. COO

and HTS code information is essential for customs compliance, whether or not the goods qualify for NAFTA

preferential treatment.

Please make certain all fields of the certificate are completed. The certificate of origin is invalid if the HTS code

classification number, producer, net cost, or COO Fields are left blank. The certificate is invalid by missing signature,

page numbers or tax identification numbers as well.

HTS codes can vary in length from 6 to10 digits dependent upon different countries classifications; Ahlstrom requires

that you supply the first 6 digits to the US form. If Ahlstrom exports your product or procures it directly into a country

other than the US, we may request the 7, 8, 9 & 10th

digits dependent on the countries we are selling the product in

(The first 6 digits are harmonized). This request will come in a separate communication.

Electronic Data Interchange (E.D.I.)

Ahlstrom prides itself on its commitment to customer service and customer satisfaction. As a company, we continue

to pursue ways of increasing our effectiveness in these areas. The Ahlstrom EDI Program has the potential to build

new highs in customer satisfaction through increased efficiencies and time savings.

Electronic access and cataloging is a vastly more efficient means for document management then is hardcopy

handling. The EDI Program provides for the electronic transmission of business documents (Schedules, Advance

Shipment Notices and Self Billing Invoices) that would otherwise be printed prior to faxing or sent through the mail

for hardcopy files. EDI can provide direct customer access to quality and export documents at every level of the

supply chain.

With EDI transcription error will be eliminated along with a reduction in lead times and the need for data entry.

Suppliers will have the opportunity to limit the number of formats they must provide or comprehend, however, the

supplier should purchase the necessary software to ensure interface-free data communication is achieved, that is,

that no manual handling is required as this is the most common source of error.


Supplier Overview

Suppliers shall complete a Supplier Overview Sheet annually or when major changes takes place and return it to the

appropriate Ahlstrom Sourcing Category Manager.

Major change is defined as :

• Acquiring additional companies.

• An addition/deletion of capabilities.

• Change of ownership.

• Expansion of new facilities.

• Change in product mix.

• Change in equipment used to process Ahlstrom items.

• Etc…

The survey can be found in the appendix or you can request an electronic version from Ahlstrom Supplier

Performance

Warranty

Supplier represents and warrants that all products sold to Ahlstrom:

• Comply with specifications, the purchase orders, and releases.

• Are free from defects in material and workmanship.

• Comply with all safety and environmental regulations applicable in the countries of manufacture and sale of

the products.

• Do not infringe or otherwise violate the intellectual property rights of any third party (except if products are

exclusively supplied in accordance with a design specified by Ahlstrom).

Insurance

The supplier shall at all times insure and keep itself adequately insured with a reputable insurance company against

all insurable liability and shall, on request, provide Ahlstrom with evidence of such insurance as Ahlstrom may

reasonably require. The supplier shall provide assistance and advice required by Ahlstrom or its insurers for the

purposes of contesting or dealing with any action, claim or matter arising out of supplier’s performance or failure to

perform.

Sales to Third Party

The Supplier shall not, under any circumstances, without Ahlstrom prior written consent, manufacture for the benefit

of or supply to a third party any products that:

• Are based in whole or in part upon the Ahlstrom drawings or specifications.

• Use any Intellectual Property Right of Ahlstrom or any of its Affiliates.

• Are based in whole or in part upon the Ahlstrom drawings and/or specifications, or any derivative product,

except for any products or parts that Supplier independently developed.


Confidentiality

The Parties recognize that each of them (“Receiving Party”) may, during the course of this agreement, gain knowledge

of, have access to, and have otherwise disclosed to it certain non-public information that is proprietary to the other

Party and its Affiliates (“Disclosing Party”) and which is of a secret or confidential nature (“Confidential Information”).

The following information shall be considered the Confidential Information:

• Information concerning the business operations of either Party or its Affiliates (including product planning,

manufacturing, development, complaints, budgets, and forecasts).

• Inventions, designs, and research and development programs

The Receiving Party shall not disclose, publish, release, transfer or otherwise make available Confidential Information

of the Disclosing Party in any form to, or for the use or benefit of, any third party without the Disclosing Party’s prior

written consent.

The obligations of confidentiality shall not apply if:

• The Confidential Information is, or becomes (other than through a breach of this Agreement) generally

known to the public.

• The Confidential Information was in the Receiving Party’s possession prior to its disclosure by the Disclosing

Party, as demonstrated by the Receiving Party’s written records.

• The Confidential Information is developed independently by the Receiving Party without reliance on

information or materials provided by the Disclosing Party, as demonstrated by the Receiving Party’s written

records.

• The Confidential Information was rightfully received by the Receiving Party without obligation of

confidentiality from a third party, as demonstrated by the Receiving Party’s written records.

• Disclosure is required by law; provided that the Receiving Party gives the Disclosing Party prompt notice of

the request for disclosure, cooperates with the Disclosing Party in obtaining a protective order or other

remedy, and discloses only that portion of the Confidential Information which it is legally compelled to

disclose.

Notwithstanding the provision of paragraph 2:

• Ahlstrom may disclose Confidential Information to Ahlstrom Affiliates provided that Ahlstrom shall ensure

that such Affiliates are aware of and undertake to maintain confidential nature of Supplier’s Confidential

Information.

• Supplier may disclose Ahlstrom’s Confidential Information to its subcontractors to the extent necessary for

performing Supplier’s obligations under this Agreement; provided that Supplier shall ensure that such

Subcontractors are aware of and undertake to maintain the secret or confidential nature of Ahlstrom’s

Confidential Information

Each Party acknowledges that the disclosure of the other Party’s Confidential Information may result in irreparable

injury to that Party and that such Party will be entitled to seek injunctive relief in addition to any other legal or

equitable remedies that may be available.

The provisions of this confidentiality shall survive termination or expiration of conducting business.


Packaging and Logistics Guidelines

Introduction

Ahlstrom is undergoing progressive changes and improvements in our logistics activities in order to improve the

service and satisfaction we can give our customers.

Coniferous wood packaging regulations

The forestry commission announced that with effect from 1st

March 2005 new landing requirements applied for

wood, wood products and wooden packaging material arriving in the European Community from all countries except

Switzerland. The new rule can be found in Council Directive 2004/102/EC.

With effect from then packaging which is found to be in breach of the current landing requirements will now be

subject to full remedial treatment at your cost. This will involve fumigation or removal and destruction of the wooden

packaging or refusal to land. It is therefore essential that you supply evidence of the treatment or exemption from the

regulations.

Goods found to be in breach of the regulations will be held by the Forestry commission pending the supply of proof of

exemption or treatment.

If no evidence is forthcoming then a notice will be issued ordering the treatment to be carried out. Costs for storage

and carrying out the necessary treatment will be invoiced to Supplier by Ahlstrom.

Labeling Requirements

The following information should be clearly displayed. • Ahlstrom item number

• Description : Ahlstrom item description

• Quantity : Quantity per unit

• Weights : Net and gross

• Date : Date of packing/production

• Batch : Your batch packing reference

• Document Number : Ahlstrom order number

• Serials : Only if applicable

• Receiver Address : Ahlstrom Location

ODETTE or GALLIA label design is recommended.


Delivery Documents

The delivery documents must include:

• Purchase order number.

• Product.

• Quantity.

• Packaging details.

• Packing list for each pallet.

• Delivery note.

• Consignment note.

• Palettes must be clearly marked (front and side of pallet) to indicate which pallet contains paperwork.

• Certificate of Analysis

• FSC or PEFC certificate number and claim for wood-based raw material Chain of Custody (COC) certified

plants

Refusal

Ahlstrom will refuse deliveries when:

• Identification is not evident.

• Product out of specifications

• Any damage compromising product integrity or not compliant with specification (if any agreed).

• There are any Health & Safety concerns.

Ahlstrom will issue the transport company and the supplier with a full report and signature to confirm why a

delivery has been rejected.

All deliveries received will be audited using the goods inwards compliance sheet for reference. A full report and

digital, photographic evidence will be issued to back up any claims for poor performance.

A full action plan is expected from the supplier including corrective actions to avoid any re-occurrence and a

replacement planning.

Quality Issues

Any product supplied into Ahlstrom that does not comply with the specification, material, heat treatment or coating

specification of the part number ordered will either be:

• Reworked to specification at a source of Ahlstrom choice at your company’s cost unless you provide

reworked product or replacement product in due time to prevent damage to customer.

Or

• Returned to you as a reject.

Related or required transport or cost for expediting will be invoiced to the supplier.


Delivery Requirements

Overview

Ahlstrom sites serve the industrial and commercial sectors globally. These routing instructions will supply you with all

the information necessary to ship product from various regions to our Ahlstrom locations globally.

Invoice Requirements

Ahlstrom requires specific information to be listed on invoices. Delays in payment can be expected by those suppliers

failing to provide complete information on invoices.

• Name and address of seller.

• Name and address of buyer.

• Shipping or delivery address.

• Complete description of goods being shipped.

• Ahlstrom item number as indicated on the purchase order.

• Quantity of goods being shipped by Ahlstrom item number.

• Number of boxes and pallets. • Total weight of goods and shipment.

• Total Invoice price in the currency of the purchase order.

• Additional costs incurred listed separately.

• Country of Origin (manufacture).

• Harmonized Tariff Schedule number.

• Terms of delivery / Inco-terms (EXW, FOB Shipping Point, etc).

• Invoice must be in the language of Purchase Order or by default in English.

• FSC or PEFC certificate number and claim for wood-based raw material Chain of Custody (COC) certified

plants

International Shipping Documentation

Original documents must be provided to the designated freight forwarder with every shipment. Ahlstrom also

requires these documents to be sent via fax on shipment to our receiving location. The documents required are:

• Original Bills of Lading.

• Supplier Invoice.

• Supplier Packing List.

• Certificates of Origin.

All international shipments require wooden packaging materials (e.g., pallets, crates, boxes, …). These must be heat

treated or fumigated with methyl bromide and marked with the International Plant Protection Convention (IPPC) logo

and appropriate country code designating the location of treatment.

Certificates of Origin

This is a required document to do business with Ahlstrom and an example is located in the appendix for your review.

Instructions to fill out the attached document can be found at many international documentation web sites. Because

Ahlstrom imports and exports goods between countries we need to have accurate data to properly cross the border

to assure we are assessed correct duties. This document gives us that ability.


Requirements

All suppliers will be required to provide to Ahlstrom a blanket Certificate of Origin for each calendar year for all parts

supplied. If a supplier does not make the finished product and changes its supplier resulting in a change to country of

origin a new certificate must be issued.

Classify all your parts based on the Harmonized Code out to 6 digits. We may challenge your classification. After

discussion with both parties we will agree on a classification to be put on the certificate.

If you are a distributor and buy product from many different sources, if you can supply a Certificate of Origin for each

lot in the shipment, that would allow us to cross borders at the correct duty rate.

If you are awarded new parts a Certificate of Origin will be required with the initial orders.

Certificates of Origin are a requirement of doing business with Ahlstrom.


SUPPLIER CODE OF CONDUCT 1. Purpose and scope The Supplier Code of Conduct describes the ethical principles for all companies Ahlstrom does business with.

2. Principles

As an Ahlstrom supplier we assure that:

• We comply with national and international laws and regulations

• We respect and promote human rights

• We adhere to high ethical standards in everything we do

• We respect the environment

• We are committed to maintaining a safe, healthy and fair workplace for our employees

• We are good citizens in all our communities

• We avoid conflicts of interest

2.1. We comply with national and international laws and regulations

We abide by all the appropriate international and national laws and regulations.

We avoid any dealings with competitors or other firms that could be harmful to Ahlstrom’s interests.

We condemn all corrupt business practices, and refuse to take part in any act of bribery, whether of government

officials or anyone else.

2. 2. We respect and promote human rights

We treat all our people with respect, and give them all equal opportunities for personal growth and professional

development, regardless of their gender, age, race, ethnicity, disabilities, nationality, sexual orientation, religious

beliefs, political affiliations, marital or economic status, or position within the company.

We support the United Nations’ Universal Declaration of Human Rights, the International Labor Organization’s

Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, and

the UN Global Compact covering human rights, labor, the environment, and anti-corruption. This commits us to

eradicate child labor and forced labor anywhere in our supply chain, and recognize our employees’ right to freedom

of association and collective bargaining.

2.3. We adhere to high ethical standards in everything we do

We conduct our business with the utmost professionalism and integrity, and to the most demanding moral, ethical,

and legal standards.

We keep our promises, and take due care of our own employees and the people and firms we do business with.

We develop working partnerships that are fair, responsible and mutually beneficial.

We keep correct and complete internal records, and issue transparent and accurate external reports.


2.4. We respect the environment

We minimize the environmental impact of our operations, source responsibly and use all our resources as efficiently

as possible.

We comply with environmental legislation, and strive to exceed those demands.

We co-operate fully with any environmental inspections or monitoring, and report our environmental performance

openly and honestly.

We limit our emissions to the soil, water and air to permissible levels, and reduce the environmental impact of our

products over their entire lifecycle.

This is all part of our belief that we have a responsibility to manage the planet’s resources sustainably, on behalf of

future generations.

2.5. We are committed to maintaining a safe, healthy and fair workplace for our employees

We take responsibility for our own safety, and our colleagues’, by following our safety standards, wherever we are in

the world.

We get the necessary safety training before we start a job, and intervene if others are in danger or are violating safety

rules. We report near-misses, and share best practice proactively.

We encourage a healthy balance between work and personal life, and we do not tolerate any form of abuse,

intimidation, or harassment at work, whether that’s physical, sexual, or psychological.

2.6. We are good citizens in all our communities

We care for our community, and act as responsible neighbors.

We respect the cultures, customs and values of local people and societies, wherever we are in the world.

We make a positive contribution to social and economic development in our local communities, and minimize any

negative impacts from our operations.

We listen to local people, and take their views into account, and encourage our own employees to play an active role

in their own neighborhoods.

2.7. We avoid conflicts of interest

We take care that no personal considerations or relationships influence the way we do business with Ahlstrom.

We ensure that our business travel and accommodation expenses are always paid by our company, and we do not

give or accept gifts, entertainment, or hospitality beyond what would normally be considered reasonable.


3. How to report a concern

We want our stakeholders to feel they can freely report any concerns they might have about possible violations of

this Supplier Code of Conduct. This might include, for example, suspected irregularities in accounting or financial

reporting, potential conflicts of interest or illegal acts, as well as any environmental or human rights issues.

If you wish to remain anonymous your identity will not be revealed unless it is absolutely necessary in order to carry

out a proper investigation.

Messages can be sent by employees and other external stakeholders by e-mail to a dedicated and confidential

mailbox, [email protected]. Only the VP Legal Affairs, General Counsel has access to this email address.

We commit to adhering to the principles of this Supplier Code of Conduct.

Signed:

________________________________

Name, Position

________________________________

Supplier

________________________________

Date and Place


Revision Summary

The following documents have been issued to you as the Registered Holder of the Ahlstrom Supplier Manual:

Revision Summary Record

PAGE No(s)

ISSUE

DETAILS OF CHANGE

All Pages

DRAFT

Draft Issue

All Pages

A

Full Launch Issue

26 to 28

B

Added paragraph “Supplier Code of Conduct”

15

C

Changed Scoring section, Supplier Status A; B; C; D


COMPANY :

ADDRESS :

CONTACT NAME :

TITLE :

EMAIL ADDRESS :

* : All future updates will be sent to this email address

If this information is incorrect or you want to do some changes, please complete the below form and send it back to :

[email protected]

Company :

Address :

Contact Name :

Title :

Email Address :

The following revised documents have been issued to you as the Register Holder of Ahlstrom Supplier Manual :

Date

Issue

A

B

C

Ahlstrom Supplier Manual Register and Issue / Revision Receipt

Pages Modified Details of Change

All Pages

26 to 28

15

Original Issue

Added paragraph "Supplier Code of Conduct"

Changed Scoring section, Supplier Status A; B; C; D


Appendix Listing

• Supplier Overview.


Date

Office

Mobile

Email

Fax

QUALITY SYSTEM CERTIFICATION (please, thick as appropriate)

TS 16949 ISO 14001 ISO9000.2000 OHSAS18001 Other

Phone Numbers

RESPONSIBLE PERSON FOR QUALITY

Name

Title

Address

Supplied since

Years

Years

Years

Years

Years

Volume / MonthProduct

PRODUCT

Customer Name

Actual Production / Month Maximum Production / MonthProduct

PRODUCT(S) INFORMATION

Maximum Production / MonthOverall Capacity Actual Production / Month

Ttotal Employees Organisational Chart (Yes / No)

PRODUCTION

Established Date

MAJOR CUSTOMERS

Yearly Turnover

Supplier Name

Parent Company

Supplier Address

SUPPLIER OVERVIEW

COMPANY INFORMATION


Supplier

Manual