Slide 1: Mondi Syktyvkar
Mondi Syktyvkar Gerhard Kornfeld Investor and Analyst site visit, Syktyvkar and Świecie 2 – 4 November 2010
Slide 2: Syktyvkar – capital of Komi Republic
Syktyvkar – capital of Komi Republic About Komi Republic Area – 416 774 km2 Syktyvkar Population – 951 000 (thereof 251 000 in Syktyvkar) Industry – oil, gas, mining, pulp & paper, wood processing Governor – Vjacheslav “Mikhaylovich” Gaizer Investor and Analyst site visit, Syktyvkar and Świecie, 2 –
Slide 3: Mondi Syktyvkar – key figures
Mondi Syktyvkar – key figures Mill site • Utilized area – 1 134 hectares • Number of buildings and constructions – 420 • Railway tracks – 61 km • Roads extension – 65 km • Engineering communications extension – 500 km Mill start up in 1969 Annual pulp wood processing capacity – 4.0 m m3 (3.1 m m3 be
Slide 4: Paper and board production
Paper and board production PM11 PM14 Office paper, offset paper Office paper, offset paper Production capacity – 150 000 tonnes Production capacity – 340 000 tonnes Before reconstruction – 280 000 tonnes PM15 PM21 Newsprint Containerboard Production capacity – 197 000 tonnes Production capacity – 28
Slide 5: Production development
4 Production development Mondi Syktyvkar will increase Paper & Board production after STEP commissioning by 20% and reach 1 m tonnes per year, increased pulp production by 25%. The higher output will strengthen the position of Mondi Syktyvkar on the domestic and CIS market. Decrease in water and che
Slide 6: Komi wood market
Komi wood market Area of 2.1 m ha with twenty-six lease agreements. Total standing wood of 250 km 200 m m³. Total allowable cut of 5.1 m m³ per annum with total cut of 3 m m³ Mondi Syktyvkar mill in 2009. 100% pulp wood supply ensured. Syktyvkar Optimal mixture of hard and soft wood inventory. Lease
Slide 7: Wood demand structure
Wood demand structure Wood Supply Split soft wood / hard wood Annual wood consumption Annual wood harvesting Komi Republic Mondi leased areas Annual SW consumption: 1.7 m m3 Annual HW consumption: 1.4 m m3 Level of mechanization Wood cost structure Investor and Analyst site visit, Syktyvkar and Świe
Slide 8: Timber supply operations
Timber supply operations Harvesting technologies • Our timber supply operations are based on economical and ecological sustainability • Focus on high performance and sustainability, applying advanced logging technology (CTL and Canadian) • Own harvesting volume 2009: 2.5 m m3 Wood supply management
Slide 9: Sustainable development
Sustainable development Forest Management and FSC certification Today 100% of leased forest areas of Mondi Syktyvkar are FSC certified Total leased areas: 2.1 m hectares (thereof 1.4 m hectares certified at end of 2009 and 0.7 m hectares in March 2010) Social responsibility Social economic agreement
Slide 10: Health and safety Organisation
Health and safety Organisation Health and Safety Targets We are committed to zero tolerance for risky behaviour and unsafe conditions and meeting the following objectives: Zero fatalities Zero lost time injuries Zero occupational diseases Management is responsible for employees’ safety and health Co
Slide 11: Human resources
Human resources Total headcount – 8 485 Average mill headcount – 4 318 Average age – 43 years Turnover index mill – 1.1% Turnover index subsidiaries – 10% Europe & International Presentation June 16, 2010 PAGE 10 Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 10
Slide 12: Reconstruction project STEP
Reconstruction project STEP The Syktyvkar mill modernisation program reflects the strategy of Mondi to achieve leading market positions, high quality and top performance Investment: up to € 545 m Project areas: wood yard, fibre line, recovery boiler, evaporation, steam turbine, white liquor plant, l
Slide 13: Mondi Syktyvkar in July 2008
Mondi Syktyvkar in July 2008 Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 12
Slide 14: Mondi Syktyvkar in August 2009
Mondi Syktyvkar in August 2009 Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 13
Slide 15: Mondi Syktyvkar in August 2010
Mondi Syktyvkar in August 2010 Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 14
Slide 16: Upgraded and new equipment
Upgraded and new equipment Wood Yard 1 TMP/CTMP PM 15 PM 11 1.0 m tonnes 4.0 m m3 pulp wood paper, board, pulp HW Line PM 14 Wood Yard SW Line PM 21 2 Turbines 2 Bark Boilers 0.12 m MWh 1.6 m MWh 40 Bar mill energy consumption Recovery Boiler 1 Turbine Evaporation 0.52 m MWh 92 Bar 92 Bar 1.2 m MWh
Slide 17: Wood yard
Wood yard New Wood Yard has the capacity to debark and chip 4 m m3 of soft and hardwood logs annually – an increase of 25% 2 chip piles situated near the newly built wood room are part of system implemented to improve the chip quality A 23 metre-high chip processor piles the chips, which are then tr
Slide 18: Fibre line upgrades
Fibre line upgrades All 3 digesters significantly improved Modernisation included: o Installation of pressure diffuser o Installation of blow tank o Equipment for the additional stage of oxygen delignification o Washing equipment for before and after oxygen delignification o Upgrades to the screenin
Slide 19: Recovery boiler & evaporation
Recovery boiler & evaporation Largest in the Russian pulp and paper industry 80 meters high 11 000 tonnes of steel, state-of-the-art equipment, electronics and hydraulics Burns 3 560 tonnes of dry solids per day at the pressure of 92 bars, reaching temperatures of approximately 500 C Replaces 3 pre-
Slide 20: Steam turbine generates more electricity
Steam turbine generates more electricity Together with the new recovery boiler, a new 100 MW turbo-generator was constructed The Republic of Komi is primary recipient of this additional green electricity produced from biomass Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 201
Slide 21: White liquor plant
White liquor plant Burnt lime is a necessary component for pulp production New lime kiln o 4.5 metres in diameter o 105 metres in length o 700 tonnes of burnt lime per day The filters in the new lime kiln are extremely efficient, trapping up to 99.9% of dust that arises during the burning process In
Slide 22: PM14 modernised in October-November 2008
PM14 Modernised in October-November 2008 Preparation time of less than 1 year Productivity and quality increased Production speed increased to 1 150 metres per minute New cut size line operational since May 2009 Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 21
Slide 23: Linerboard production on PM21 since 1969
PM21 Linerboard production on PM21 since 1969 Rebuilt with innovative technology and optimum process control High-quality white top kraftliner and outstanding service concept Winder Film Sizer Refiner Motors Investor and Analyst site visit, Syktyvkar and Świecie, 2 – 4 November 2010 PAGE 22
Slide 24: Benefits of STEP
Benefits of STEP SHAREHOLDERS Modernised and new equipment ensures stable operation and high production volumes Basis for long term profitability, high margins and increasing sales revenues Low cost position through optimal equipment and raw materials utilisation Customers Ecology Region Focus on th
Slide 25: Sales and market update – UFP
Sales and market update – UFP Market share UFP total – Russia Market share Cut Size – Russia Market size: 886 000 tonnes / year Market size: 590 000 tonnes / year Mondi improved its market position in both segments (offset and cutsize) Ukraine is the only country where Mondi has reduced sales volume
Slide 26: Sales and market update – Containerboard
Sales and market update – Containerboard Market share – Russia Our White Top Liner deliveries have been increasing every year since 2004. Total market in Russia and CIS amounted to 132 000 t in 2009 After successful realization of STEP project the overall containerboard production will increase by 3