forest and forest industry is the basis for wellbeing in finland november 13 2008 mr antro säilä,...
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Forest and forest industry is the basis for wellbeing in Finland
November 13 2008
Mr Antro Säilä, Senior Vice PresidentFinnish Forest Industries Federation
23.11.2008
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Finland – a land of forests and lakes
Area of Finland (Canada)• 338,000 square kilometres (9,984,000)• 10% is covered with water (8,9 %)• 187,888 lakes (34 million)• 69% forest (54 %)
The Finns:• 5.2 million (32 million)• 67% live in towns or urban areas (80 %)• 33% in rural areas (20 %)
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Three principal species: pine, spruce and birch
Pine (Pinus sylvestris) Spruce (Picea abies) Birch (Betula pendula or betula pubescens)
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Forest ownership is a family matter for the Finns
• Majority of forests owned by private people
– earlier hand in hand with agriculture– nowadays the number of urban forest
owners is growing• One Finn in five belongs to a family that owns
forest• Average size of a ”family forest” is less than
25 hectares
Forest ownership in Finland,% forest land 20.0 million ha
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Sustainable forest management: more protected forests than in any other country in Europe
• Forestry is steered by strict acts, regulations and ecological planning
• Continuous stakeholder processes– multiple uses of the forests– biodiversity
• 95 % of the forests are certified• Over 8 % of the forest area is strictly
protected (close to 2 million hectares)
Sources: Working group SUTI 2002, Working group ESSU 2000, Finnish Statistical Yearbook of Forestry 2003
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Development of forest resources and forest industry production in Finland 1921-2005
SOURCE: Finnish Forest Industries Federation, Finnish Forest Research Institute
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Pulp, paper and wood industries use the wood efficiently for different purposes
Forests
• Forest management• Wood procurement• Transportation• Sorting and drying of timber
Logs
Pulp wood
Forest residues: branches, stumps…
Bio-slurriesBy-products
Wood products
PulpPaperBoard
BiodieselHeatElectricity
Recycling
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Local communities have grown around the mills For example in Varkaus, Eastern Finland
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Finnish forest industry
Forest industry in Finland
• 40 paper and board mills• 38 pulp mills• 170 sawmills• 20 plywood, particle
board/fibreboard mills
- 3rd in Europe- 6th in the world
MetsäliittoStora Enso
UPM-Kymmene
Enso-Gutzeit
Veitsiluoto
Oulu
TampellaForest ja Tambox
Varkaus(Ahlström)
Corenso UnitedPori, Varkaus
Sunila
MyllykoskiPaper
SerlachiusMetsäliitonTeollisuus
Finnforest
Metsä-Timber
Kemi
Joutseno-Pulp
Metsä-Botnia
Metsä-Rauma
Kyro
M-real
YhtyneetPaperitehtaat
KajaaniKaukas
Schauman
Kymmene
RepolaRauma-Repola
Rosenlew
AhlstromKauttua
Jujo Thermal
Stromsdal
Metsä-Tissue Tervakoski
SCA-Packaging Finland
Peterson Packaging
Sonoco Alcore
Loparex
Pankaboard
Savon Sellu
- 4th in Europe- 8th in the world
Georgia-Pacific Nordic(Nokia)
- Biggest in Europe- 4th in the world
Finland in the global forest sector
24.9.2008
Percentage values of the world totals (%)
SOURCE: Finnish Forest Industries Federation
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Understanding the magnitude of the forest industry in Finland compared to some other countries
24.9.2008
Value (€) of forest industry exports per capita and its share of total exports
SOURCE: Finnish Forest Industries Federation; Statistics Finland
Finland 20 %
Sweden 13 %
Austria 8 %
Canada 10 %
Norway 2 %
Germany 3 %
France 2 %
USA 2 %
Forest industry exports / total exports, %
11
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Key figures of the Finnish forest industry: 2007*
*) Woodworking industries, pulp, paper and paperboard industries**) Includes internal sales of 5 bill. EUR***) Gross exports minus imported inputs
SOURCE: Statistics Finland, Board of Customs
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Finnish forest industry is strongly export oriented: 90 % of the production is exported
• Finnish forest industry produces paper products for 100 million and wood products for 50 millionpeople
– Products bind CO2 and are being used as bio-energy at the end of the life span
• Integrated production processes and right government policies have enabled efficient wood processing and bio-energy production
Main markets for the Finnish forest industry products are in the Europe
Total value of forest industry exports from
Finland in 2007 was EUR 12.5 billion
Share of the main export markets
GermanyUnited KingdomUnited StatesFranceSpainRussiaJapanBelgia
18 %11 %
6 %5 %5 %5 %4 %4 %
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Production capacity of the Finnish paper and pulp industry
Total capacity 38 mill. tons in 2007
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Annual average investments of the Finnish forest industry companies in Finland and abroad
0
0,5
1
1,5
2
2,5
3
3,5
4
1980-1996 1997-2006
Bill. EUR
Investments abroad*)
Investments in Finland
*) incl. acquisitions
Investments in Finland2005-2007 close toEUR 900 mill. annually
SOURCE: Finnish Forest Industries Federation
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Global market trends
North America
Latin America India
Russia
China
Mature / declining marketRestructuring
Western / Nordic EuropeMature marketRestructuring underwayTechnology leadership Huge coniferous fiber sources
Sizable market potentialPoor infrastructureInvestments needed
Huge growthNo fiber sourcesAggressive investments
Fiber sourcingPulp supplies and investments
Big potentialLimited own capacityNo fiber
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Finnish pulp and paper mills are world leaders in clean technology
• All mills have environmental permits according to EU IPPC directive and permits are based on the use of Best Available Techniques BAT
• The most effective and advanced techniques to prevent harmful emissions and other environmental impacts, or reduce them to acceptable limits
• Environmentally, economically and technically feasible solutions
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Emissions to air have decreased by 30-80% and landfill waste by 85% per produced tonne since 1992
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Increasing pulp and paper industry production – decreasing wastewater emissions
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Less is more
• Water is needed to produce your daily newspaper
– 10 litres 30 years ago
– 2,5–6 litres today
– in the future even less
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We use purified pulp and paper wastewater as high quality drinking water
• Drinking water of Helsinki metropolitan area is taken from a lake where pulp, paper and chemical mills and several cities release their purified wastewater
• 565 000 people live in Helsinki metropolitan area
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Renewable energy - forest industry is the main producer and user of bioenergy
• Forest industry produces 80 % of bio-energy in Finland– Around 40 % of the total wood raw
material in forest industry is used for bio-energy production
• The share of bio-energy in Finland is 20 % (total share of renewable energy 25 %)
Mill fuels of forest industry in Finland 2006Total 282 000 TJ
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Employment in the Finnish Forest Cluster
Energy sector about 4 000 Transport companies about 1 500
Maintenance companies about 5 000
Forestry about 20 000Research and developmentabout 3 000
Machinery and equipment manufacturersabout 15 000
Graphic industryabout 25 000
Packaging industry about 5 000
Others about 38 000
Almost 200 000 jobs in
the forest cluster in Finland
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Employment in the Finnish Forest Cluster
Energy sector about 4 000 Transport companies about 1 500
Maintenance companies about 5 000
Forestry about 20 000Research and developmentabout 3 000
Machinery and equipment manufacturersabout 15 000
Graphic industryabout 25 000
Packaging industry about 5 000
Others about 38 000
Almost 200 000 jobs in
the forest cluster in Finland
SOURCE: Finnish Forest Industries Federation
Average annual earnings in wood products industry in Finland
10.7.2008
SOURCE: Finnish Forest Industries Federation
Applicants for forestry, woodworking and paper industry education in Finland 1996–2008
4.9.2008
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R&D of the Finnish Forest Cluster, million EUR
Annual R&D input approx. 400 M€
M€
MachineryChemicalindustry
Pulp and paper industry
Wood industries
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The Finnish pulp and paper industry invests in new products, efficient technologies and renewable energy: priorities in the research strategy
Renewal of the industry Sustainable developmentCompetitiveness
Customer solutions
for the future
Intelligent, resource-efficient
productiontechnologies
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Objectives of the National Research Strategy
• To double the value of the forest cluster's products and services by 2030 - half of the value coming from new products
• Significant increase in the cluster's R&D• Increased use of domestic wood
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Intelligent, resource-efficient production technologies
The goal is to develop radically
new production systems
• New energy and water saving processes• Natural and biodegradable process
chemicals/fillers and binders• Lower capital intensity• Higher flexibility
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Customer solutions for the future
Competitive customer-oriented products and
Services
• printed electronics and hybrid media• intelligent paper/board• printed intelligence in packaging• bioactive papers and biomarkers• green chemicals and bio-energy
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Biorefinery options for forest industry
Life cycles of some Finnish forest industry products
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Shifting production and consumption from non-renewables to renewables fosters sustainable development
• Wood helps to mitigate climate change
• Reusable products• Side products and waste can be
used in the production of bio-energy and bio-fuels
• Controllable processes• High environmental standards• Meets customers’ needs
Wood products value chain
Antro Säilä
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Thank you for your attention!Merci pour votre attention!