Slide 1: Welcome to Valmet Karlstad
Welcome to Valmet Karlstad Anders Björn, VP, Tissue Mills BU November 28, 2017
Slide 2: Valmet’s history in Karlstad
Valmet’s history in Karlstad 1860 Tidholm & 1916 End of 2013 Andersson Paper 1986 Demerger to Foundry Valmet acquires KMW Laboratory Valmet and Metso established established 1871 Operates 1974 2001 2015 under the First tissue machine Tissue Technology Valmet Pescia name KMW delivery to Fiskeby Cente
Slide 3: Paper Province
PAPER PROVINCE A world-class cluster for companies within the forest-based bioeconomy in mid Sweden. • Appointed a ”World Class Cluster” • Approx. 7,000 employees in member companies • 106 member companies • SEK 14 million turnover in 2015 • Member companies' turnover SEK 23.5 billion in 2015 3
Slide 4: Production facilities in Paper Province
PRODUCTION FACILITIES IN Converters PAPER PROVINCE Service providers Chem pulp prod. Mech pulp prod. Pulp & Paper prod. Machine Supplier Raw material suppl. Ball size indicates # of employees Source: Vinnova Analys 4
Slide 5: Paper business line locations
Paper business line locations Karlstad: HC 570 Tissue making technology Gorizia: HC 80 Biddeford: HC 45 Yankee hoods & Pescia: HC 33 Ventilation TAD technology & air systems - Tissue Rewinders Shanghai: HC 582 Paper, board & Tissue machines, finishing machinery, stock preparation, components HC = he
Slide 6: Advantage NTT has become a category of its own
Advantage NTT has become a category of its own Competitive option for production of premium products 6 in operation FAPSA, Mexico FPC, Chile ADNPM, Abu Dhabi Von Drehle, USA Resolute, USA Renova, Portugal 5 in the pipeline Sofidel, Poland Sofidel, USA Sofidel, USA Sofidel, Spain Confidential 6 Novem
Slide 7: Three tissue machine technologies
Three tissue machine technologies covering the whole product range Advantage™ DCT® Advantage™ NTT™ Advantage™ Thru-Air® technology technology technology Plain tissue Plain and textured tissue Structured tissue 7 November 28, 2017 © Valmet
Slide 8: Valmet Pescia, a new member of our family
Valmet Pescia, a new member of our family Rewinders for Tissue and Nonwovens production 8 November 28, 2017 © Valmet
Slide 9: Increasing demand for large scope of supply
Increasing demand for large scope of supply Project scope 40 new installations 2013-2017 40 Tissue machine 40 Stock preparation 39 Automation system 17 Process Utility Systems 17 Field instruments 17 Mill Engineering 9 Electrical system 7 Piping and tanks 9 November 28, 2017 © Valmet
Slide 10: New orders
New orders 2015-2017 Advantage DCT Advantage NTT Advantage ThruAir New orders New orders New orders 8 x Lee & Man, China 2 x Sofidel, Circleville, USA First Quality Tissue, TM4, USA FAPSA TM7, Mexico Sofidel, Delitissue, Poland Irving Tissue, North America Hayat Kimya TM7, Russia Sof
Slide 11: New installations
New installations 2015-2017 Total added capacity to the market 1.2 Million annual tons Advantage DCT Advantage NTT Advantage ThruAir Start-ups Start-ups Start-ups Aktül Kagit TM2, Turkey von Drehle, USA First Quality Tissue TM3, USA Hayat Kimya TM5, Turkey Renova, Portugal Hayat Kimya TM
Slide 12: Tissue machine orders
Tissue machine orders 2000-2017 (148) (Totally 248) 30 Advantage TAD 10 Advantage NTT 51 Advantage DCT 200 4 Advantage DCT 135 26 Advantage DCT 100 5 Advantage DCT 60 1 Advantage DCT 40 21 Advantage Tissue machine Confidential 12 November 28, 2017 © Valmet
Slide 13: Large demanding international projects
Large demanding international projects Experienced Project teams and a wide competence network 13 November 28, 2017 © Valmet
Slide 14: Way to operate
Way to operate Partnership based on mutual trust and common targets Repeat orders New machines No. of No. of orders Customers 7 7 or more 9 3-6 9 2 14 November 28, 2017 © Valmet
Slide 15: Way to operate
Way to operate Continuous improvements and process oriented operations Valmet Project Execution Model • Sales & delivery process model • Life cycle process model • Internal project process model 15 November 28, 2017 © Valmet
Slide 16: Valmet Project Execution Model
Valmet Project Execution Model From function-oriented to process-oriented sales and delivery process G-2 Decision to quote to customer G-1 Decision to negotiate and offer agreement to customer G0 Decision to start internal project establishment work G1 Project start: Decision to start basic engineer
Slide 17: Valmet Performance center
Valmet Performance center Data-driven reliability and performance services 17 November 28, 2017 © Valmet
Slide 18: Tissue market, challenges and opportunities
Tissue market, challenges and opportunities Investor site visit to Karlstad November 28, 2017 Jan Erikson Vice President, Sales Tissue Mills Business Unit
Slide 19: Cellulose based paper products
Cellulose based paper products Three main categories Tissue & Towel Caring Containing Protecting Communicating 19 November 28, 2017 © Valmet
Slide 20: Tissue products and segments
Tissue Products and segments Bath Facial Towel Standard Standard Standard Premium Premium Premium Ultra premium Ultra premium Ultra premium 20 November 28, 2017 © Valmet
Slide 21: Tissue paper
Tissue paper #1 non-food fast moving consumer good Hygiene is an important factor for development Faces few substitution threats Not very sensitive to cyclical changes in economy No mandatory product specifications Product development, image/brand and confidentiality – vital competitive to
Slide 22: Tissue World Market
Tissue World Market Consumer products Napkins 4% Facial /hankies Market by segment 16% Toilet tissue 63% Away from Home 25% Towels 17% 36 Mton Branded products eid Kimberly-Clark Georgia Pacific Private label =o Away from Home Other 6% 75% Consumer products Napkins %15 Facial /hankies 3% Towels 38%
Slide 23: Drivers for tissue growth
Drivers for tissue growth Expected future economic growth – Global GDP growth approx. 3% Population growth and other demographic changes – Global growth 1% – Urbanization Product penetration levels Distribution and sales channels Towel is growing New products Developments in tissue quality a
Slide 24: How tissue is made
How tissue is made 1.5 sec 120 km/h 99.8% water 95% dryness Advantage DCT 200 – width 5.6 meter 2 m rolls/day 0.5 l water 0.15 kWh electricity 65,000 tons/year 0.1 kg steam 3 m people/year 0.15 kWh gas 24 November 28, 2017 © Valmet
Slide 25: One tissue machine for every need
One tissue machine for every need Advantage™ DCT® Advantage™ NTT ® Advantage™ Thru-Air ® technology technology technology High quality tissue with high Premium quality textured tissue Superior quality structured tissue with efficiency and reliability with high bulk and softness excellent absorbency
Slide 26: Consumer trends and needs
Consumer trends and needs Consumer trends Products Bath, towel brands & private label Quality multi-ply, softness, mixed conventional/premium Trends growth of towel & bath Hybrid technology growth Impact raising quality demands, environmental concerns Consumer trends Consumer trends Products Bath, f
Slide 27: Producers’ trends and needs
Producers’ trends and needs Producer’s trends and needs Trends Consolidation, investments by major companies Impact High energy cost, strong supermarket purchasing power Producer’s trends and needs Trends Major brands Producer’s trends and needs challenged by new Trends Big companies players aiming
Slide 28: Amazon Linking with US Tissue Paper Suppliers to Speed Supply Chain
“Amazon Linking with US Tissue Paper Suppliers to Speed Supply Chain” Hundreds of brands and pack sizes 28 November 28, 2017 © Valmet
Slide 29: Major global tissue producers 2016
Major global tissue producers 2016 Global tissue consumption 2016 Pos Major tissue producer Eff. Capacity % of Tissue consumption 36 MT/a Kton/a Capacity Installed capacity 44.3 MT 1 SCA 4582 10 Tissue Machines >3,400 2 Kimberly - Clark 3751 8 of which ~1,700 in China 3 APP 2818 6 Typical capacity 1
Slide 30: Tissue Technology Center
Tissue Technology Center Investor site visit to Karlstad November 28, 2017 Karl-Johan Tolfsson Manager, Tissue Technology Center
Slide 31: November 28, 2017 © Valmet
31 November 28, 2017 © Valmet
Slide 32: Leading technologies with high flexibility
Leading technologies with high flexibility developed by customer demand Advantage NTT technology • Plain and textured tissue production • Premium Quality • Low energy and fiber consumption • High capacity Advantage ViscoNip press • Linear load flexibility • Significantly reduced energy consumption •
Slide 33: Reaching energy targets
Reaching energy targets Total Specific Energy Consumption kWh/ton 1530 3330 kWh/ton 2850 3105 2310 2150 1960 1800 Average State of Best Delivered Valmet Valmet Valmet five mills the art practice by Valmet BAT BAT BAT late 90ths 2000 2006 2010 2010 2011 2015 33 November 28, 2017 © Valmet
Slide 34: Pilot machine / mill
Pilot machine / mill 34 November 28, 2017 © Valmet
Slide 35: Internal trials / External customers
1/3 Internal trials 2/3 External customers 35 November 28, 2017 © Valmet
Slide 36: Industrial Internet – Dialogue with data
Industrial Internet – Dialogue with data Investor site visit to Karlstad November 28, 2017 Kent Nika, Sales Manager
Slide 37: Content
Content 1 Industrial Internet – definition 2 Dialogue with data – how to use all data? 3 Case studies 4 Summary 37 November 28, 2017 © Valmet
Slide 38: °C MES ERP
°C 1850 140 + 23 bulk mWh Ton/hour kWh/ton m/min gsm MES ERP QCS MCS DCS PDM CRM
Slide 39: The concept of Industrial Internet
The concept of Industrial Internet By industrial internet we mean the integration of physical machinery with networked sensors and software. This enables gathering and analyzing data from machines and processes, and utilizing it to adjust operations and plan predictive maintenance to positively
Slide 40: Customers extensively utilizing our Industrial Internet capabilities
Today, customers are extensively utilizing our Industrial Internet capabilities Valmet’s competence network Customer’s Valmet expert experts 420 Ongoing 800 81,000 350 540 90 Valmet-supplied 420 Condition Advanced Online Performance Co-creation of lines with Valmet Monitoring (CM) process control co
Slide 41: Valmet Industrial Internet
Valmet Industrial Internet Dialogue with data Building blocks Offering Reliability services Ecosystem • Component reliability monitoring and diagnostics • Sub-process reliability improvement • Mill and plant reliability optimization Applications and services Performance services • Process performanc
Slide 42: Valmet Performance Centers
Valmet Performance Centers Your channel to all our data-driven reliability and performance services Collaboration room Operator room 42 November 28, 2017 © Valmet
Slide 43: Dialogue with Data
Dialogue with Data Recommendations Applied knowledge Criteria Interpret results Analysis Data
Slide 44: Case 1 Performance services
Case 1 Performance services
Slide 45: Performance services - The process
Performance services - The process Continuous data Data transfer to collection and Valmet expert processing Analyses and reporting Review, action plan and actions on site Report delivery to Customer 45 November 28, 2017 © Valmet
Slide 46: Root cause analysis
Root cause analysis Pos # .vs. SB steam cons. kg/hr 2000 1800 Steam pressure 1600 SB steam cons. kg/hr 1400 1200 1000 800 SB steam cons. kg/hr 600 400 Steam valve opening 200 0 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 Pos # System analysis: deviation in the steam Conclusion: press
Slide 47: Case 2 Troubleshooting with remote support
Case 2 Troubleshooting with remote support
Slide 48: Tissue mill in South America
Tissue mill in South America A real case example of troubleshooting with remote support Tissue mill in South America with shoe press technology Target: to change linear load profile on the shoe press Experienced problem: changing profile does not give the expected response Same grade Compariso
Slide 49: Traditional vs Remote support
Traditional vs Remote support Traditional analysis Analysis using data Analysis and conclusions Analysis and conclusions Leakage in hydraulic cylinders assumed, largely Analyze data from hydraulic system – 2 hours based on earlier experiences Conclusion: Incorrect valve mounted in the press.
Slide 50: Dialogue with Data
Dialogue with Data Recommendations Applied knowledge Criteria Interpret results Analysis Data
Slide 51: Summary
Summary - Industrial Internet is proven and used in many Valmet deliveries - Tools with models are available for Valmet tissue mills - Dialogue with data works with reliable and safe connections - Potential is very high in terms of performance, savings and quality The question is not how much data w
Slide 52: Important notice
Important notice It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for growth, profitability and investment willingness, expectations fo
Slide 53: Valmet
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