Stora Enso

Your safety is important to us

• For visitor’s
− Listen to your host and advices given by.
− The potential danger follow instructions given by
your host.
− On mill tour you need to use helmet, safety vest,
earplugs and safety glasses
− Stay on marked trails and do not overreach or
put your hand over the machines
− Hold the railings when walking on stairs
− Photographing and filming on mill area is
prohibited
− Mobilephone is safetiest to keep in your pocket
for whole visit
− Smoking is allowed in specifically marked areas

Yleisesittely
 Do good for the people and the planet. Replace
fossil-based materials with renewable solutions.

Lead. Do what’s right.

3
 We believe that everything made with
fossil-based materials today, can be made
from a tree tomorrow.

Our products provide a low-carbon alternative to

many products made from non-renewable
materials.

4
5
19/2/2019
Creating a renewable future in the bioeconomy

In the bioeconomy,
products based on
wood fibres are
replacing non-renewable
materials.

Megatrends
support our
future.

6
Our renewable products contribute to a greener planet

Renewable

Recyclable Store
carbon

Bio- Produced
degradable sustainably

Material is
Every tree
used
is traced
efficiently

7
Examples of our solutions replacing fossil-based
materials today

Trayforma by
Stora Enso
can replace
plastic in e.g.
Dissolving Lignin can frozen food
pulp can be replace e.g. packaging
used for fossil-based
producing Wooden phenol in
textiles construction adhesives
elements
can replace
EcoFishBox concrete in
by Stora buildings
Enso can
replace
polystyrene
packaging

8
Stora Enso in brief

9
Stora Enso worldwide

Countries where Stora Enso has

production, plantations, or projects

Stora Enso’s markets

10
3/18/2019
Divisions

Consumer Board Packaging Biomaterials Wood Products Paper

Solutions

11
Portfolio aimed at growth

+ + + +
Consumer Packaging Biomaterials – Wood Paper –
Board – Solutions – Strengthening Products – Strategy for
Expansion of Selective current Accelerating maximum
relative profitable business and growth cash
market share growth creating new generation
in profitable profitable
niches growth

12
Division
Biomaterials
 The Biomaterials division is at the core of Stora Enso’s transformation. In
addition to having the widest chemical pulp portfolio in the market, we are
developing new offerings in our innovation platforms and transforming fibres,
lignin, and hemicellulose into solutions that replace fossil-based materials.

Our world-class experts are taking renewable materials to the next level.

14
Biomaterials division in brief

• Variety of pulp grades to meet the demands of

paper, board, tissue, textile and hygiene product
producers
• Developing new business platforms such as
second generation biochemicals and biomaterials
based on non-food competing biomass feedstock
• Operations in Brazil, Finland, Sweden, Uruguay
and the United States

15
Sustainable solutions for various end uses

Our Supreme, Perform Our Care fluff grades Our Pure dissolving In addition to pulp, we
and Select grades are are mostly used for the pulp is used for the also produce various by-
transformed by our manufacturing of production of viscose products such as Lineo™
customers into all kinds hygiene products such fabrics, but also in by Stora Enso (kraft
of paper, packaging and as diapers and feminine applications in the food lignin), Tall Oil and
tissue. care products. and pharmaceutical Turpentine, used as raw
industries. materials in the adhesive
and cosmetic industries
among others.

16
Innovative end-uses for wood fibre

• In strong collaboration with Stora Enso, Finnish

company Lumir has developed a new acoustics
solution using modified chemical pulp

• Innovative sound absorbing solutions based on

wood fibre: for example to recently renovated
Parliament House in Helsinki, where there is over
3 000 m2 of acoustic surface

• Bio-based acoustic solutions are suitable for any

space that needs better acoustics, reduced
reverberation and improved comfort

17
Renewable LineoTM by Stora Enso can replace
fossil-based materials
• Wood-based lignin is a renewable, non-toxic,
traceable material

• Lignin opens up possibilities that benefit the

environment, for example, in carbon fibres, energy
storage and mechanical forest industry

• Today lignin can be used as a replacement for oil-

based phenolic materials in glues that are used for
example in plywood and paper lamination

• Lignin makes up 20-30% of wood, but has

traditionally been discarded

18
Allu – a dress made of wood
in Pure Dissolving Pulp
• One example of the applications for dissolving
pulp is the clothing industry

• Fabrics such as viscose, rayon, modal, lyocell,

and cupro are all made from 100% wood fibres

• Enocell pulp mill produces 150 000 tonnes / year

of dissolving pulp from birch wood

• Product development in collaboration with our

customers

19
Sustainable forestry is our passion

Our wood comes from Nordic forests and

eucalyptus plantations:

• 100% of our wood is traceable to its forest of

origin

We look after our forests:

• Sustainable, certified forest management for

healthy and productive forests

• We never convert natural forests or protected

areas into plantations

20
We are differentiating our pulp mix…

Maximise value from

eucalyptus pulp Today Target 2020

21% 15%

37%
42%

Improve
competitiveness of our 43%
42%
Nordic mills
(Fluff and dissolving)
Softwood
Hardwood
Fluff/dissolving

21
 Our three focus areas

Maximise value from Differentiate our Nordic pulp Create new platforms for growth
eucalyptus pulp business

• Continue to improve • Reduce exposure in softwood • We build and develop strong business
production efficiency on:
• Grow in fluff and dissolving pulp - Improved pulp properties
• Improve cost competitiveness - Regenerated cellulose and MFC
in Montes del Plata • Continue to improve production - Lignin
efficiency - Bio-based chemicals
- Extraction and separation technologies
• Innovate on pulp applications
with current customers

22
Our three focus areas

Maximise value from Differentiate our Nordic pulp Create new platform for growth
eucalyptus pulp business

Delivering
sustainable
profitable
growth

23
Innovation is key for sustainable profitable growth
Product platforms

1. Improved 2. Regenerated 4. Bio-based

3. Lignin
pulp properties cellulose & MFC chemicals

Technology platform for extraction & separation

24
 1% shift of 20 BEUR
fossil-based
and other
materials
= renewable
business

25
When you want to know more
Read our reports

storaenso.com/annualreport

26
storaenso.com
youtube.com/storaenso
facebook.com/storaenso
twitter.com/storaenso
linkedin.com/company/stora-enso
instagram.com/storaensoworld

27
Stora Enso
in textile value chain
The world is changing. Stora Enso too.
Major global trends drive the world’s demand for renewable materials

Global
Growing warming Eco
middle class awareness

Urbanisation Changing
lifestyles

Digitalisation Growing
population
Stora Enso is already part of the textile value chain

• Dissolving pulp production started in our Enocell

pulp mill in Eastern Finland in 2012 with the
capacity of 150.000 tonnes yearly production

• Currently, we are expanding our capacity and will

start producing also softwood dissolving pulp from
pine and spruce in the near future

• Main part of our production is sold to viscose

staple fibre producers

• Specialising our Nordic pulp mills is part of our

strategy
Demand for sustainable and traceable
fibres is increasing

“We work intensely to increase the

share of sustainably sourced fabrics
“Choosing materials for us is about and materials in our products — and
making responsible decisions. When to only use recycled or sustainably
we’re not able to use renewable sourced materials by 2030 at the
resources, we aim for recycled or latest.” (H&M)
recyclable ones.” (IKEA)

My job is to make desirable, luxurious,

beautiful clothing and accessories
women want to buy. My first decision is
always based on, 'Can I do this in a
“We are part of major international more sustainable way without sacrificing
initiatives to promote sustainable raw design?' If I can, then there is no reason
materials and fibres, helping to make their not to. (Stella McCartney)
widespread use in the industry a reality.”
(Inditex)
But the world is still dressing mainly in
fossil-based fibres

Wool

1%
Cotton

23 %

65 % 5%

Synthetic fibres Other natural fibres (1

6%

1) Incl. bast, flax, hemp, jute, silk and allied fibers

2) Sources: CIRFS, The Fiber Year Man-made cellulosic fibres
What kind of textiles should we
choose in the future?

Produced with high input efficiency (less water, energy, chemicals)

Having a climate positive value chain (positive impact on the environment)

Designed to be re-used or recycled and retain significant value after recycling

Designed for higher durability and longer use

Made from renewable raw materials

Traceable to origin and giving complete transparency across the value chain

Having a socially positive value chain

It all starts in the forest

• Renewability requires sustainable forestry that

keep forests healthy and productive.
− Sustainably managed forests grow forever.
• 88% of our wood comes from managed semi-
natural forests, the rest from tree plantations.

• We know the origin of all the wood we use through

traceability systems.
− 100% comes from sustainable sources.
− 85% is certified.
• 92% of lands owned and managed by Stora Enso
are covered by certification.
New technologies for sustainable wood fibre in textiles

RAW TEXTILE
PULP FIBRE YARN FABRIC END PRODUCT STORES
MATERIAL
How is dissolving pulp made?

Forest Trees that are At the mill the …and chipped Chips are then After boiling …and bleached. Then the pulp is Finally the pulp
too small for tree is into small boiled. During the pulp is dried and cut sheets are piled
logs are debarked… pieces, like boiling washed clean into sheets. up as bales and
transported to potato chips. cellulose is from black these bales are
pulp mills. separated from liquor... sold to customers.
lignin and
hemicellulose.
From forest to catwalks

Marjaana Tanttu, Aalto University Eveliina Netti, Aalto University Erja Hirvi, Marimekko

Akino Kurosawa Anna-Mari Leppisaari, Aalto University Pirjo Hirvonen, Aalto University and Tuula Pöyhönen, Marimekko
Sirpa Välimaa, Stora Enso
Collaboration benefits all

Brand owners Suppliers Consumers Planet

Pulp and Paper market
in China
Overall Growth of P&B Output Slow Down in 2018, Not
Following the Industrial Output or even GDP

25,0
• Lag effect of inventory
20,0 from 2017 production
increased by price
15,0 hiking
• Fiber storage of RCP
10,0 impacted by import
policy
5,0 • Unexpected low
demand from domestic
0,0 downstream industry
• Antipollution inspection
-5,0 continuously stress on
backward capacity
-10,0 (7.5%)
China Real GDP China Industrial Production China Paper & Board Production

Sources: Consensus Global Outlook (10/2018), China Paper Association 2018 estimate

41
 Production and consumption of paper & board in China
1980-2018E
Million Tons
120
Average annual growth from
100 2008 to 2018E:
• Production 3.3%
Growth rate in 2018: • Consumption 3.2%
80
Production : -7.5%
Consumption: -4.7%
60

40

20

-20
Consumption Domestic Production Net Trade (Import - Export)

Sources: China Paper Association 2018 estimate

42
All Grades Declining in 2018, Except Tissue

China paper and board demand was estimated 103.8 mn tons in 2018, decreased 4.7% YoY.

2018 market Growth Specialty Others 2017 market Growth

Change % Tissue 2% Change %
Grade size estimate outlook % 2% Grade size estimate outlook %
’18 vs. ’17 9% ’18 vs. ’17
million tons ’18-’23 million tons ’18-’23
Sack
WFC 5.4* (8.0%) (1.9%) 6.9** (2.5%) 1.0%**
paper

WFU 16.1* (1.0%) (0.3%) Consumer

12.8* (1.5%) 1.8%
board
CWC 0.5** (2.0%) (3.3%)
Paper Liner
22.7* (10.0%) 1.3%
25 % board
UWC 1.2* (1.0%) (5.8%) Board
62 % Corrugated
21.6* (10.0%) 1.2%
Newsprint 2.4* (9.0%) (6.4%) medium

Total 25.6** (3.2%) (1.4%) Total 64.0** (7.4%) 1.5%**

43 Source: Poyry, China Paper Association 2018(*), SE estimates (**), RISI forecast
Stora Enso
in China
 Stora Enso’s path in China New factory in Changzhou of Stora
Enso China Packaging and new
Innovation Center in Dongguan
Total 5110 employees in China by September 2018
Beihai Mill started up
New PE coating plant and BCTMP production
line in Beihai Mill
2018 Consumer Board China
BoD’s investment decision to established
Guangxi Project 2016
Shares in Stora Enso Inpac
2014 increased to 90%
JV with Huatai Paper Suzhou Mill closed
2012
2011
Asia Pacific Headquarter moved to China Divest Corenso
New factory in Jiashan of Stora Enso
2008
2007
China Packaging
Stora as Majority shareholder of Suzhou Mill
2006 Acquired Inpac and establish JV packaging company
(renamed as China Packaging)
2003
Sales company in Hong Kong 2002
Feasibility study of Guangxi
1998 Industrial Project
1995 Corenso Foshan established

1985 Plantation started in Guangxi

AP office in Singapore
Stora Enso’s business and operations in China

China headquarter and sales Dawang Mill

offices Paper Division
- China HQ in Shanghai - 170,000 tons of magazine paper
- Sales offices in Shanghai, Beijing, - Using recycled / virgin fiber
Guangzhou & HongKong
- MA team in Hong Kong

Beijing Qian’an

Dawang China Packaging Beihai Mill

One-stop packaging solution Consumer Board division
Changzhou - Focus on consumer packaging - BM 450,000 tons of consumer
Jiashan Shanghai - Serve for international brand- board
owners - 200,000 tons of BCTMP
- Multi production sites - 80,000 tons of PE coating
- Innovation centers - LPB, FBB, FSB, CUK
- Raw material from sustainable
Guangzhou eucalyptus plantation
Dong’guan
Hong Kong
Beihai
Production sites * Total investment in China reached
Plantation USD2.2 B by end of 2017
Offices
About Stora Enso and
our presence in China
Do good for the people
and the planet. Replace
fossil-based materials
with renewable solutions.

Lead. Do what’s right.

How we work towards the UN’s Sustainable
Development Goals (SDGs)

• Stora Enso supports all 17 SDGs, but we

have identified three strategic goals that our
business has the most impact on.
− We recognise our contribution to other
SDGs as well.
• The SDGs support our Sustainability Agenda
but do not replace it as the foundation of our
work.

49
How we work towards the UN’s Sustainable
Development Goals (SDGs)

• Stora Enso supports all 17 SDGs, but we

have identified three strategic goals that our
business has the most impact on.
− We recognise our contribution to other
SDGs as well.
• The SDGs support our Sustainability Agenda
▪ The use of ▪ Renewable ▪ Sustainable forestry
but do not replace it as the foundation of our
renewable materials materials in the ▪ Biodiversity work.
▪ Bioeconomy carbon cycle
▪ Circular economy ▪ Carbon risks and
▪ Material efficiency opportunities
▪ Science-based
targets

50
Saving is the Best Thing a Board Mill Can Do for Water

• Usable fresh water counts for only 0.26% globally

• Stora Enso takes care of water

− Maximize water recycling up to 97%, annual
volume of recycled condensed water amounts to
more than 900,000 cubic meters
− Minimize water use in production processes
− Apply state-of-the-art facilities
− Use only surface water
− All discharged water is purified to meet emission
standards.
− All water for future irrigation for 100 hecture
greenland in mill site will come from the mill’s
water recycling system
• Awarded “Guangxi Water-saving Industrial
Enterprise” as a role model in 2018
51
13/9/2018
7-Year Monitoring Biodiversity in Eucalyptus Plantation

• Plantation’s important role cater to continuously

growing consumer demands for renewable
materials, easing global warming and preventing
natural forests from being logged

• Feb 2010 – 2017, Stora Enso Guangxi Forestry

teamed up with Fauna & Flora International (FFI)
to launch a long-term program to monitor
biodiversity of eucalyptus plantation

• The monitoring results showed that the buffer

zone in Stora Enso’s plantation played a positive
role in biodiversity protection

• Stora Enso Guangxi Forestry received Ecological

Civilization Award at the 13th International CSR A Black Collar Starling at Stora Enso eucalyptus plantation, Da Fan Po town, Qinzhou CIty

Forum in 2018

52
13/9/2018
Forest Operation and Management with ‘Eagle Eyes’

• 20 drones for a 70 pilot team

• Cost-wise and efficient for

plantation monitoring over wide
range, few roads and complex
terrains.
− Damages from pests and
diseases
− Conservation rates of seed
− Prevention of forest fire
− Safety

Birdview of eucalyptus plantation by drone

53
13/9/2018
Shankou Nursery Farms Fish through Planting Trees

• Stora Enso Nursery in Shankou was established

in 2004

• Capacity: 12 million eucalyptus seedlings / year

• Great consumption of water, and great waste if

just to let rest water flows into ground.

• Left irrigation water and fertilizer-containing water

flows via ditches to a 5-mu (about 3330 sqm)
fishpond with duckweed and few kinds of
herbivorous fish.

Finshpond at Shankou nursery

54
13/9/2018
Stora Enso Oyj
Enocell Pulp Mill
General Presentation

August 2018
Stora Enso in North Karelia

Wood
Staff
Capacity Consumption
Apprx.
1 000 m³
450 000
Enocell Pulp Mill 180 2 600
tones

Kitee Saw Mill 260 000 m³ 107 550

- Processed products 120 000 m³ incl. Fin-Terpuu and
Efora Spruce logs
- Pellets 25 000 t

Uimaharju Saw Mill 300 000 m³ 90 650

- Processed products 20 000 m³ incl. Fin-Terpuu Pine logs

Efora (Enocell’s maintenance company)

70

Efora (sawmill’s maintenance company)

15
- Uimaharju

Stora Enso Wood Supply East-Finland Procurement 107

56

56
History
There was German’s devoted company Haukivuoren Puutavara Oy in Uimaharju, which moved ownership to the Soviet
Union's after the Second World War.
1955 Enso-Gutzeit bought a saw mill from Soviet Union
1967 Enso-Gutzeit’s pulp mill started 16th of April
1989 Decision of Enocell project and contract with Soviet Union
1991 Enocell started operating; pulp mill, saw mill and planning mill. Enocell was Stora Enso’s subsidiary company,
99 % owned by Stora Enso and 1 % by Russian
1992 Renewed pulp mill started
1996 Sawmill started to operate under Enso Timber Ltd Uimaharju Saw Mill
1999 Swedish Stora Kopparberg and Finnish Enso-Gutzeit merged and one big company, Stora Enso started
2005 Stora Enso bought shares back from Russian. Fortek took care of technical planning, mechanical and
automation maintenance
2006 10th million pulptonne was made on March
2009 New maintenance company is Efora
2012 Dissolving pulp production started
2015 A merger of Stora Enso
2019 Stora Enso Enocell Mill is ready to do dissolving pulp on both fibre lines.
57

18. maaliskuu 2019 57

 The Map of the Mill Area

Area 250 hectares

Mill
Wood Handling
Waste Watertreatment

58

58
Enocell’s production chart
FL1 DISSOLVING PULP

Washing and Drying

bleaching
Wood
Batch-
Handling Storage
cooking FL2 SOFTWOOD

Washing and
bleaching
Drying
Power
Plant

59 24.1.2018/NHU
Chemical Handling
23/11/2015
Yleisesittely
Wood Procurement

• Stora Enso Forest supply as well softwood as

hardwood raw materials from domestic and some
from Russia.

• Deliveries to mill happens by trucks from Finland

and by train from Russia.

•The consumption of wood is total about 2,7 million

cubic meter.
−Pulp Mill uses about 1,8 million cubic meter
softwood, including chips from nearest sawmills.
−The Mill uses hardwood about 0,9 million cubic
meter.

60

60
Possibilities of Dissolving
Possibilities of Dissolving Pulp Pulp

61
By-products

Electricity

• Production 390 GWh own consumption

• 170 GWh sale to national grid

Turpentine

• Production 205 tones all sold

Tall oil

• Production 16 002 tones all sold

62
Saw Dust Burning Plant

• Heavy oil (appr. 70-90 tones/d) in lime kiln

has been replaced by sawdust
• About 10 trucks sawdust per day
• Burning process shortly
✓ saw dust is screened, dried and
crushed grinded Wet
✓ Dust is measured out and blown to dust
silo
burner of lime kiln Screening

Drier
• Enocell is HFO free mill during normal Dust storage
Grinding
production
Environment

• Certificated environmental management program

from the year 1995

• Chain of Custody of Wood certificate 2004, it

covers production and marketing of pulp

• Occupational health and safety management

certificate OHSAS 18001:2003

• Energy Management System ISO 50001:2011

64
Everybody safe home – every day!

65
Thank you!