stora enso in brief
DESCRIPTION
Stora Enso in brief. Stora Enso is a forest products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products 12.7 million tonnes of paper and board 6.9 million m 3 of sawn and processed wood products - PowerPoint PPT PresentationTRANSCRIPT
13.4.2010 Presentation, Varkaus Mills / Arja Malmberg 1
Stora Enso in brief
• Stora Enso is a forest products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products
• 12.7 million tonnes of paper and board
• 6.9 million m3 of sawn and processed wood products
• Sales 2009 EUR 8.9 billion
• Approximately 27 000 employees in more than 35 countries
• Market capitalisation EUR 3.7 billion
• Shares listed on Helsinki and Stockholm stock exchanges
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23 %10 %
7 %
5 %
17 %
3 %7 %
28 %
Finland Sweden Germany
Poland Russia Other Europe
China Other Countries
Breakdown by location
28 %
15 %
3 %
1 %
12 %
41 %
Finland Sweden Germany
China Brazil Other Countries
Number of employees by country 2009* Paper and board capacity by country 2010
*Continuing operations
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Production plants
Production plants
Pulp in bales
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40 %
13 %10 %
51 %
5 %
-2 %
Newsprintand Book
Paper
MagazinePaper
Fine Paper ConsumerBoard
IndustrialPackaging
WoodProducts
Breakdown by segment2009, continued operations
15 %
19 %20 %
21 %
9 %
14 %
Newsprintand Book
Paper
MagazinePaper
Fine Paper ConsumerBoard
IndustrialPackaging
WoodProducts
Operating profit, EUR 321 million*(Share of Group’s operating profit)
Sales, EUR 8 945 million
*excluding non-recurring items and fair valuations
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25 %
2 %
31 %
3 %
2 %
15 %22 %
Finnish Institutions Solidium Oy *) Finnish private shareholders
Swedish institutions Swedish private shareholders ADRs
Under nominee names
12 %
3 %
14 %
4 %6 %
44 %
17 %
Ownership by distribution31 Dec 2009
% of shares % of voting power
(Non-Finnish/ Non-Swedish shareholders) *) Entirely owned by the Finnish State
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Paper Industry Concentration
Source: Pöyry
0
10
20
30
40
50
North America Western Europe Asia Latin America World
1997
2009
The paper industry is still relatively fragmented, with top five firmscontrolling about 20-40% of the regional capacity
C(5) = combined share of top five firms
C(5) %
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Long-term Demand Growth by Region through 2025Paper and Paperboard
Source: PöyryShare of consumption in 2006, %
-1
0
1
2
3
4
5
6
7
0 20 40 60 80 100
Demand growth, %/a
JapanNorth America
Western Europe
India
Latin AmericaRest of Asia
Oseania
China
Middle East
Russia
Average 1,9 %/a
Eastern EuropeAfrica
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Varkaus Mills
13.4.2010 Presentation, Varkaus Mills / Arja Malmberg 9
Mill Site Map
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History of the forest industry in Varkaus
New ECOGAS power plant builts
1830 19951912 19871921 1926 1961 1970 1977 1980 1997 19981909
2001 2002 2003 2004 2005 2006 2007 2008 2009
New log handling plant Modernisation of sawingModernisation of bleaching plant
Planing millNew TMP-lineShutdown of groundwood plant
Rebuild of the waste water treatmentplant and sludge handling
Modernisation of hydropower plantModernisation of pulp drying sectionShutdown of PM 1
Modernisation of PM 3 qualityModernisation of PM 4 finishing
Rebuild of wood handlingRebuild of PM 3
Demonstration plant for biofuel productionShutdown of Carton Machine
Mill Service company Efora founded
Gustaf Wrede starts sawmilloperations
Merger of Stora and Enso
Start-up of power plant
Paper machine 2 Sulphate pulp production started
Recycled fibre plant started
Board machine
Deal between Ahlström and Enso
Ahlström buys mill operations
Paper machine 1 Paper machine 3 Paper machine 4 Varenso founded
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Stora Enso Fine PaperVarkaus Mill
Integrated sulphate pulp mill• ECF 225 000 t/a
One paper machine• Envelope, Business Forms and
Offset Papers
• Production 315 000 t/a• Main raw materials bleached pine
and birch pulp• 98 % exported• Main markets EU
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• Energy• Environment and Security• Transport• Property Services• Communications• Office functions• Purchasing• HR• IT
Shared ServicesVarkaus Mills
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Organization, Varkaus Mills
315 000 t/a• Envelope Papers• Business Forms• Offset Papers
285 000 t/a• Standard newsprint• Coloured newsprint• Directory and catalogue
papers• Magazine papers
40 000 t/a• Recycled Pulp• Energy• Aluminium
345 000 m3/a• Sawn timber
(whitewood)• Planed sawn timber
(whitewood)
General ManagerReino Panula
Corenso RecyclingEsa Mäkelä
Stora Enso Timber
Timo Elola
Stora EnsoPublication Paper
Reino Panula
Stora Enso Fine Paper
Jarkko Tehomaa
Shared ServicesHarri Avila
Management GroupReino Panula (General Manager), Harri Avila, Timo Elola, Aimo Kettunen ja Jarkko Tehomaa
Personnel RepresentativesPaula Glumerus, Ari Häkkinen, Hannu Kanniainen, Eine Luostarinen, Isto Markkanen, Ulla-Maija Olander, Kai Pärnänen, Timo Suhonen andJukka VoutilainenTarja Kiviluoto, Communications and Maija-Helena Soininen, Secretary
Palveluyhtiö• Energy• Environment and Security• Transport• Property Services
---------------------------------• Communications• Office function• Purchasing, HR, IT
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Total integration of wood processing at Varkaus MillsRaw materials, 2 million m3/a, mainly purchased from Savo region
Publication Paper Mill
Fine PaperMill
Pulp Mill
225 000 t/a
TMP
250 000 t/a
TimberSpruce logs
Stora Enso Wood SupplyFinland
Savo Region
Sprucepulpwood
Spruce chips
Pine pulpwood
Birch pulpwood
Recycled fibre plant
Sawn timberPlaned sawn timber 345 000 m3/a
Recycled Pulp 40 000 t/a
Publication papers 285 000 t/a
Fine papers 315 000 t/a
Power PlantsPlast
Sawdust
Spruce 60 %Birch 25 %Pine 15 %
Wood park
Round wood 95 %Chips 5 %
Spruce chips
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Wood and product transportationTransportation of raw materials and products
• Wood raw material
• Paper
• Sawn timber
Train
17 %
60 %
25 %
Road
80 %
40 %
62 %
Ship
3 %
-
13 %
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Environmental performance
• Policy on the environment and social responsibility and goals for environment
• Full use of wood raw material• Utilization of waste and secondary
products in energy production and soil structures
• 80 % of used wood from certificated sources
• Competent, responsible personnel, committed to objectives
• Environmental issues incorporated into Quality System ISO 14001
0
100
200
300
400
500
2005 2006 2007 2008 2009 2010
t/a
Sulphur dioxide TRS (SO2)
Sulphur dioxide emissions to air (SO2+TRS)
0
1
2
3
4
5
6
7
8
2005 2006 2007 2008 2009 2010
t/aPhosphorus (P)
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Energy procurement and productionThermal energy production 2009
• Stora Enso’s Varkaus Mills produce about 2100 GWh of thermal energy annually. This corresponds to about 200 000 t of heavy fuel oil.
• About 90 % of thermal energy is generated from wood-based and recycled fuels. Oil and coal are used mainly as auxiliary fuels during exceptionally cold spells.
• 1,2 mill. m3 of wood bark is burned at the Mills annually.
38 %
35 %
15 %
9 %3 %
Black liquor Wood-based fuels
Recycled heat Fossil fuels
Recycled fuels
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Fine paper making