Price- winning northern know-how Stora Enso Veitsiluoto Mills 2004.

Price- winning northern

know-howStora Enso Veitsiluoto Mills 2004

2

Stora Enso – taking the lead

Stora Enso

• Integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products

• 15 million tonnes paper and board production capacity

• 7,4 million m³ sawn timber production capacity

• Turnover 12.2 billion euros (2003)

• 44 000 employees in over 40 countries

• Shares listed on the Helsinki,Stockholm and New York stock exchanges

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World’s most northernpaper mill

4

Sheeting plantPM 5

PM 2, PM 3

Veitsiluoto sawmill

PM 1Pulp mill

Harbour

Power plant

Veitsiluoto mills

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Veitsiluoto as part of Stora Enso

• Fine paper 555,000 t/a – Group 4.4 million t/a

• Magazine paper 425,000 t/a – Group 8.0 million t/a

• Sawn timber 290,000 m3/a – Group 7.4 million m3/a

• Employees at Veitsiluoto 1576* – Group 44 000

• Veitsiluoto turnover 685 million euros* in 2003 – Group 12.2 million euros

*) Including Veitsiluoto unit of Fortek maintenance company

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Veitsiluoto as part of Stora Enso

Magazine paperFine paper Sawn timber

Veitsiluoto millsGroup

0.55 million tonnes

4.4 million tonnes

0.44 million tonnes

8.0 million tonnes 7.4 million m3

0.29 million m3

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Veitsiluoto as part of Stora Enso

Personnel 2003Turnover 2003

Veitsiluoto millsGroup

0.68 billion euros

12,2 billion euros

1,576

44,000

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Organization

General ManagerJarkko Tehomaa

- Local Services

- Environment

- Human Resources

- Purchasing

- Communications

- Information Technology

• Fine Paper Veitsiluoto Mill

• Publication Paper

Veitsiluoto Mill

• Timber Veitsiluoto Sawmill

• Fortek Veitsiluoto Business Unit

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Production chart

Mixing Wire section

Sheetcutter

Pulp cooking BleachingWashingDebarking ChippingWood raw material

CalenderSorting Press section Machinereels

Coater Slitterwinder

Customerreels

DryerGrinding

Storage Delivery to customersReel wrapping

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Office papers from two paper machines

Width, mm Speed, m/min Capacity, t/a

PM2 6,500 1,200 275,000PM3 6,500 1,200 280,000Pulp mill 365,000

• Sheeting plant – 4 cut-size production lines, capacity 370,000 t/a

• Products: document printing paper, envelope paper• Main markets: European Union• 2003 investment: PM 3 rebuilding, new cut-size line

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Magazine papers fromtwo paper machines

Width, mm Speed, m/min

Capacity, t/a

PM1 4,400 1,250180,000

PM5 7,450 1,300255,000

• Product: coated magazine paper• Main markets: European Union• Investment: peroxide bleaching, start up 2004day month year documentname/initials11

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History of pine sawing

• Band saw – chipping canter – circular saw,capacity 290,000 m3/a

• Product: pine sawn timber for construction and joinery industries

• First Veitsiluoto mill was the sawmill, which started production in 1922

• Main markets: United Kingdom and Ireland, Mediterranean countries, Scandinavia

• Automatic quality gradingday month year documentname/initials12

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Raw materials and transport

1000t Ship Rail Road TotalDepartingPaper 546 68 149 763Sawn timber 77 0 83 160Total 623 68 232 923

Arriving

Wood and wood chips 650 665 785 2100Pulp 0 0 79 79Fuels 0 0 159 159Pigments, chemicals etc. 118 2 263 383J.M.Huber 55 0 0 55Total 823 667 1286 2776

Freight traffic of Veitsiluoto mills in 2003Shipping through both Veitsiluoto and Ajos harbours

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Certified wood from the north

• Wood use 2.8 million m3/a• Wood raw material supplier in Finland:

Stora Enso Forest / Northern Finland• 25% of wood imported• 97% of wood mechanically harvested• Forestry workers: 53, special fellings

day month year documentname/initials14

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Production 1996-2003

100

150

200

250

300

350

400

450

500

1996 1997 1998 1999 2000 2001 2002 2003

Production, '000 t / m3

Magazine paper

SheetsSawn timber

Office papers

Pulp

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Turnover 1996-2003

0

100

200

300

400

500

600

700

800

900

1996 1997 1998 1999 2000 2001 2002 2003

Turnover in million euros

Magazine paper Office papers

Veitsiluoto complex (includes sawmill and maintenance unit)

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Personnel 1996-2003

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

1996 1997 1998 1999 2000 2001 2002 2003

Employees average

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Fuel 95% from Finnish sources

• Power plant and pulp mill generate about 11,000 TJ of heat for the mills

• Power plant generates over half of the about 1000 GWh of electricity used by the mills

• Main fuels:– Black liquor 50%– Wood and bark 22%– Peat 22%

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Residues utilized

• Into energy: wood and bark residues, sludge from pulp mill effluent treatment plant, soiled paper and board, waste oil and solvents, packaging films, pallets

• For recycling: office paper, packaging board, clean paper wrappers and cores

• For landscaping: paper mill effluent treatment plant sludge and fly ash

day month year documentname/initials19

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Other residues

• Metal recycling: cables and other scrap metal

• Landfill: some soda residues, lime residues, incombustible plastics and other wastes that cannot be recycled

• Hazardous wastes: batteries, fluorescent lamps, oil filters and other hazardous wastes

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Environmental investments1988-2003

1994

1995

1988

Biological treatment plant

Thawing conveyorin birch line

Oxygen bleaching

Intermediate oxygen section

Third electrostatic precipitator for recovery boiler

Concentrated malodorous gas combustionin recovery boiler

1996

Activated sludge plant buffer basin

Power plant

Thawing conveyor in softwood line

1997

Flotation plant for paper mill waste water treatmentSecond disk filter for PM2

1998

Waste sorting and collecting system 1999

PM1 centricleaner rejects treatment

PM5 centricleanerrejects treatment

2000

System for collecting and burning dilute malodorous gases

1993

1989

2003

Enlargement of biological treatment plant

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Environmental investments 2001- 2003

• In 2001: collecting clean water from paper mill separately

• In 2002: biological plant enlargement (another secondary clarifier)

• In 2003: enlargement of biological plant

day month year documentname/initials22

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Environmental schemes and labels

• ISO 14001

• EMAS

• Nordic environmental label

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History

Sawmill

Veitsiluoto mills in eight decades

First paper machineHarbour

Second paper machineThird paper machine

Paper coating beganPaper machine 5 completed

Sulphate pulp millFirst paper sheets

Biological plant

Fortek maintenance company

Sulphite pulp mill

Stora Enso Oyj

1922

1930

1993

1955

1959

1961

1963

1969

1972

1977

1981

1995

1998

1989

Enso Oy1996

Oxygen bleaching

2003

New power plant

PM 3 rebuilding

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Prize-winning northern know-how

• Finnish Quality Award 1998 in industrial organizations category (Enso Publication Papers Oy Ltd,Veitsiluoto mills)

• The Finnish Human Resources Quality Award 2000(Stora Enso Publication Papers Oy Ltd,Veitsiluoto mills)

day month year documentname/initials25