PaperFIRST Mag #1 - Summer 2019 by ENP Publishing

SUMMER 2019

Prospective insight for the global paper industry

EDITOrial

PaperFIRST, because paper should come first

ou have in your hands the very first edition of our new international publication, PaperFIRST Mag. It serves as a complement to our already popular PaperFIRST and TissueFIRST digital platforms. We truly believe that information should also be physically embodied, less virtual. Besides, it seems an obvious choice to talk about the developments and the future of the pulp & paper industry on a print media. This format allows for in-depth insights and technical contents that would not be conveyed properly on a screen.

PaperFIRST Mag is produced by ENP Publishing Group 36, rue Stanislas Julien 45000 Orléans (FRANCE) Tel : +33 238 42 29 00 - www.paperfirst.info info@groupenp.com RCS n°34303773500044 Publishing Director Stéphane RICHARD Editorial Coordinator & Contributor Valérie LECHIFFRE Editorial Contributors Cigdem TIMAR Joao de SA NOGUEIRA Peter BERG Oskar LINGQVIST Jürgen MIELKE Consulting Editor Teresa PRESAS Revision Zoe WELLENKAMP Graphic Design Gessica CAMBI Administration Florence LEFEVRE Marketing and Sales François HENIN Printed in Europe © 2019 ENP Publishing – All rights reserved Legal Deposit July 2019 No reproduction allowed without permission of the publisher, who will not be held responsible for the contents provided by third parties. PaperFIRST Mag is a supplement of the ENP Group publications La Papeterie, El Papel, Pasta e Papel, Turkiye Kagit Sanayii, Paper MiddlEast, PaperFIRST App, TissueFIRST App. ISSN to be assigned. PaperFIRST Mag is dedicated to pulp and paper professionals. Those who work for a paper mill may be entitled to a free copy. To make sure you receive your own copy, apply for a subscription by sending a request to: paperfirstmag@groupenp.com.

In this magazine, you will find an inspiring article from McKinsey & Company describing the potential of and challenges for our industry over the next decade. The optimism of the authors should bring some comfort to the CEOs and Mill Managers who participated in our survey about current concerns and priorities in terms of business environment and production process. Some prominent papermakers like Berry Wiersum (Sappi Europe), Jordi Mercader (Miquel & Costas in Spain) and Fady Gemayel (Solicar - Gemayel Frères in Lebanon as well as NorPaper and Gemdoubs in France) agreed to share with us their valuable comments. On the pulp production side, the Finnish Metsä Fibre is an ocean away from the Brazilian Suzano, and yet they do have a common vision on some hot topics. Discover on p. 26 what their respective CEO and CFO, Ismo Nousiainen and Marcelo Bacci, have to say. As plastic-bans policies are getting contagious on all continents, wood-based products can be considered as an obvious alternative. Nevertheless, the message needs to be carried at the highest level to take advantage of this unprecedented opportunity. Be it in Europe with CEPI, the USA with AF&PA, India with IPMA, South Africa with PAMSA or Brazil with IBA, associations and federations are working hard to defend the interests of a virtuous value chain. Their representatives confront their roadmaps in a thoroughly interesting joint interview. Paper is definitely a competitive material, as long as its production process is optimized. To this end, many suppliers propose products and solutions in constant evolution. This is shown through a series of business cases and technical articles in the second part of this edition. Enjoy your read. The PaperFIRST team

PAPERFIRST MAG Summer 2019

CONTENTS 16

EDITORIAL 3

MARKET OUTLOOK

Pulp, paper and packaging in the next decade

SURVEY

The PaperFIRST Barometer

PULP, A BUBBLING SECTOR

Exclusive interviews of Metsä Fibre’s CEO and Suzano’s CFO

GLOBAL CHALLENGES

Crossed viewpoints from Europe, Africa, Asia and the USA

INDUSTRY 4.0

Scenarios for the digital future by Siemens 42 MILL STORIES

Automated roll warehouse at Stora Enso Imatra by Pesmel 50 Vibration analysis at Metsä Group Äänekoski mill by Valmet 52 Tale of a refit at Holmen’s Braviken mill by Andritz 56

Fiber strength properties improved for Metsä Tissue in Katrinefors by Cellwood

Fiber morphology, recycled fibers & paper making by Techpap 62 TECHNICAL INSIGHT

Customised training courses by Voith 66 New generation of Headboxes: Innovation & Performance by Allimand 68 New compact AGV with improved autonomy by BA Systèmes

Chemicals delivery systems of the future by ABB Cellier Activity 72 Advanced paper machine audits by Runtech 76 Graphite into the heart of braided packings by Latty Int’l 80

CALENDAR OF EVENTS

82 PAPERFIRST MAG Summer 2019

Market OutLook

Pulp, paper, and packaging in the next decade: Transformational change Article by Peter Berg and Oskar Lingqvist

If you thought the paper industry was going to disappear, think again. Graphic papers are being squeezed by digitization, but the paper and forest products industry overall has major changes in store and exciting prospects for new growth.

rom what you read in the press and hear on the street, you might be excused for believing the paper and forest-products industry is disappearing fast in the wake of digitization. The year 2015 saw worldwide demand for graphic paper decline for the first time ever, and the fall in demand for these products in North America and Europe over the past five years has been more pronounced than even the most pessimistic forecasts. But the paper and forest-products industry as a whole is growing, albeit at a slower pace than before, as other products are filling the gap left by the shrinking graphic paper1 market (Exhibit 1). Packaging is growing all over the world, along with tissue papers, and pulp for hygiene products. Although a relatively small market as yet, pulp for textile applications is growing. And a broad search for new applications and uses for wood and its components is taking place in numerous labs and development centers. The paper and forest-products industry is not disappearingâ&#x20AC;&#x201D;far from it. But it is changing, morphing, and developing. We would argue that the industry is going through the most substantial transformation it has seen in many decades. In this article, we outline the changes we see happening across the industry and identify the challenges CEOs and their leadership teams will need to manage over the next decade.

CHANGING INDUSTRY STRUCTURE The structure of the industry landscape is changing. The changes are not dramatic individually, but the accumulation of changes over the long term has now reached a point where they are making a difference. Consolidation has been a major factor in many segments of the industry. The big have become bigger in their chosen areas of focus. At the aggregate level, the worldâ&#x20AC;&#x2122;s largest paper and forest-products companies have not grown much, if at all, and several of them have reduced in size. What they have done is focus their efforts on fewer segments. As a result, concentration levels in specific segments have generally, if not universally, increased (Exhibit 2). In some segments such as North American containerboard and coated fine paper, ownership concentration as defined by traditional

Exhibit 1

The graphic paper segment includes

newsprint, printing, and writing papers.

PAPERFIRST MAG Summer 2019

Market OutLook

approaches to drawing segment boundaries may be reaching levels where it would be difficult for companies to find further acquisition opportunities that could be approved by competition authorities. A grouping of companies has emerged that is not identical to, but partly overlaps with, the group of largest companies, and is drawn from various geographies and market segments. Companies in this group have positioned themselves for further growth through high margins and low debt (Exhibit 3). Our analysis suggests the financial resources available to some members of this group for strategic capital expenditure could be five to ten times greater than other top players in the industry. This potentially represents a powerful force for change in the industry, and over the next few years it will be interesting to see how these companies choose to spend their resources. Some of these companies with large war chests and sizable annual cash flows deployable for strategic capex might even face a challenge to find opportunities on a scale that matches these resources. Where there are leaders, there are also laggards. We believe the pronounced differences in performance among companies across the industry continues to pique the interest of investors and private-equity players in an industry that is already undergoing substantial restructuring and M&A.

Exhibit 2

CHANGING MARKET SEGMENTS Exhibit 3

Whether companies are well positioned for further growth or still needing to earn the right to grow, they can expect demand to grow for paper and board products over the next decade. The graphic-paper market will continue to face declining demand worldwide, and our research has yet to find credible arguments for a specific floor for future demand. But this decline should be balanced by the increase in demand for packagingâ&#x20AC;&#x201D;industrial as well as consumerâ&#x20AC;&#x201D;and tissue products. All in all, demand for fiber-based products is set to increase globally, with some segments growing faster than others (Exhibit 4). That picture is not without its uncertainties. One hazy spot in the demand skies might be concerns over how fast demand will grow in China. Expectations of growth from only a Exhibit 4 few years ago have proven a bit too optimistic, not only in graphic papers but also in tissue papers and packaging. And recently, as a result of turmoil in the markets for recycled fiber, Chinese users of corrugated packaging have reduced their consumption, through weight reductions and use of reusable plastic boxes. Given Chinaâ&#x20AC;&#x2122;s weight in the global paper and board market, even relatively modest changes can have significant impact. PAPERFIRST MAG Summer 2019

Market OutLook The structure of the industry landscape is changing. The changes are not dramatic individually, but the accumulation of changes over the long term has now reached a point where they are making a difference How these demand trends will translate into industry profitability will of course be heavily influenced by the industry’s supply actions. Supply movements are notoriously difficult to forecast more than a few years out, but we believe the following observations are relevant to this discussion. ■ Graphic papers, particularly newsprint and coated papers but also uncoated papers, will continue to face a severe decline in demand and significant pressure to restructure production capacity. We are likely to see continuing machine conversions into packaging and specialty papers, as well as more innovative structural moves that include innovations in distribution and the supply chain. Such structural changes are already having an impact and the profitability of graphic-papers companies has reemerged from several years in the doldrums. The turbulence in graphic papers has meanwhile spilled over to packaging and tissue segments, with capacity increases in segments that don’t really need it. ■C onsumer packaging and tissue will be driven largely by demographic shifts and consumer trends such as the demand for convenience and sustainability. It will grow roughly on par with GDP. We expect innovation to be a critical success factor, particularly in the light of recent concerns over plastic packaging waste, which could harbor both opportunities and challenges for fiber-based consumer packaging. But we are uncertain how far packaging players can drive innovation by themselves. Clearly, they can take the lead on materials development, but they may need to follow the lead of – and cooperate with – retailers and consumer-goods companies in areas such as formats, use, and technology. At the same time, the inflow of capacity from the graphic-papers segment will need to be managed. ■ Transport- and industrial packaging will also see opportunities for innovation and a certain amount of value-creating disruption in the intersection between sustainability requirements, e-commerce, and technology integration. We estimate that e-commerce will drive roughly half of the demand growth in transport packaging over the next several years. As packaging adapts to this particular channel, it will have to find new solutions to last-mile deliveries, the sustainability choice between fiber-based and lightweight plastic packaging, and the potential merging of transport (secondary) and consumer (primary) packaging, to name but a few. ■F iber has gone through some turbulent times the past two years, largely to the delight of pulp producers and to the chagrin of users. Hardwood and softwood prices alike have seen steady increases since 2017, due to some slow start-up of capacity (hardwood pulp), limited capacity additions, and a certain measure of industry psychology. In the past two years, prices globally went through what we would term a “fly-up regime”, whereby prices are significantly and unusually higher than the cost of the marginal producer. Such situations, seen from time to time in many other basic materials industries, are rarely long-lived. Indeed, since the beginning of 2019, prices have come down – in China drastically so. But even with a re-adjustment of the market, the mid-term prospects are likely to be in favor of the producers, with little new capacity until 2021/22 and some softwood capacity that is likely to be converted to other products, such as pulp for textile applications. For softwood particularly, challenges in expanding the forest supply are constraining new supply. Also, the fact that much of the industry’s softwoodproduction assets are aging and need complete renewal or substantial upgrades while the scale of the investments required is a potential roadblock to them being made, could further contribute to scarcity. The lingering question is whether such supply-side challenges can trigger an accelerated development of applications that are less dependent on wood-fiber pulp.

CHALLENGES FOR THE NEXT DECADE In such an environment, what are the key challenges senior executives will need to address? What are the key battles they will have to fight? The paper and forest-products industry is often labelled a “traditional” industry. Yet given the confluence of technological changes, demographic changes, and

PAPERFIRST MAG Summer 2019

Market OutLook

resource concerns that we anticipate over the next decade, we believe the industry will have to embrace change that is, in character, as well as pace, vastly different from what we have seen before— and anything but traditional. This will pose significant challenges for CEOs regarding how they manage their companies. We argue that there are three broad themes that paper- and forestproducts CEOs will have to address through 2020 and beyond: ■M anaging short-to-medium-term “grade turbulence” ■F inding the next level of cost optimization ■F inding value-creating growth roles for forest products in a fundamentally changing business landscape

Managing short-to-medium-term ‘grade turbulence’ The past couple of years have seen increased instability in forestproducts segments. The negative impact of digital communications on graphic paper has led many companies to steer away from the segment and into higher-growth areas, either through conversion of machines or through redirection of investment funds. This is leading to a higher level of uncertainty and overcapacity in, for example, packaging grades. The instability has also been exacerbated by the capacity additions that primarily Asian producers have made despite the slowing demand growth in that region. A case in point is virgin-fiber cartonboard. Several producers in Europe have converted machines away from graphic paper and into this segment, creating further oversupply in Europe and leading producers to redouble their efforts to sell to export markets. This is happening just as increasing capacity in Asia, and particularly in China, looks set to displace imports that have traditionally come into the region, mainly from Europe and North America. Some of the new Asian capacity could even find its way into export markets. This development is likely to persist for several years until markets again find more of an equilibrium, and it poses challenging questions for companies. What, if any, safe havens exist for my products? How do I protect home-market volumes? How do I protect my export volumes? What is the appropriate pricing strategy to use in the different regions? For CEOs looking to move into a new market segment, it will be equally important to make the right assessment of which segments to enter as they shift their footing. Where will I be the most competitive? How will my entry change market dynamics, and will this matter to me? On the raw materials (fiber) side, we have already described the past couple of years’ turbulence in virgin pulp. If that might currently seem to trend towards a stabilization, the situation in recycled fibers is still very uncertain. As China, and gradually some other Asian countries, have increasingly restricted the import of recovered PAPERFIRST MAG Summer 2019

Market OutLook

fiber (as well as plastics and other recovered materials), the dynamics have shifted. While prices of old corrugated containers (OCC) and other papers for recycling have plummeted in North America and Europe, prices of domestic Chinese OCC have increased drastically, challenging both the price and availability of recycled-based corrugated board. In response, companies have set up capacity to produce recycled-fiber pulp to export to China, while the country is jacking up its import of containerboard for corrugated packaging, as well as virgin fiber for strengthening purposes. This of course impacts how companies, in any country, think about their fiber supply strategies as well as their product focus.

Finding the next level of cost optimization Even though we see new ways of creating value in the forest-products industry, low cost is, and will remain, a critical factor for high financial performance. One of the characteristics shared by companies with high margins and high returns is that they have access to low-cost raw materials, primarily fiber. This will continue to be a high-priority area, albeit with some twists compared to today. Beyond the last couple of yearsâ&#x20AC;&#x2122; price increases, fresh fiber is facing other, more long-term, cost issues. It is unclear whether plantation land in the southern hemisphere (primarily for short-fiber wood) will continue to be available at current low prices. And as companies go to more remote areas to acquire inexpensive land, such as in Brazil, their infrastructure and logistics costs increase. Will higher productivity and yield allow the global industry to add ever more low-cost capacity, or are we going to see a gradual increase in raw-material costs? For long-fiber products, the difficulties to expand long-fiber pulp capacity will make such assets very valuable over the next several years. But at what point will development of the material properties of short-fiber pulps make them rival more expensive long-fiber pulps in a number of major applications? Operating costs for paper and board production are another area where companies need to get a tighter grip. Despite the fact that this area receives continual focus from management, our experience suggests there is still significant potential for cost reduction by using conventional approaches to work smarter and reduce waste in the production chain. This is particularly the case in areas that are less the focus of management attention, such as converting. Many companies need to go beyond the conventional approaches to a next level of cost optimizationâ&#x20AC;&#x201D;and many are ready to take this step. Most if not all paper and forest-products companies have completed large fixed-cost reduction programs. But there

PAPERFIRST MAG Summer 2019

Market OutLook

are often broader systemic issues that companies still need to address to be able to build sustainable operating models. In addition, in some segments many companies fail to reduce fixed costs as quickly as capacity disappears. By radically rethinking the operating model, companies can significantly shift their fixed-cost structure. By doing so, they can set a very different starting point in terms of flexibility and agility for when market volumes go through their normal cyclical swings. The paper and forest-products industry has much to gain from embracing digital manufacturing: according to our estimates, this could reduce the total cost base of a producer by as much as 15 percent. New applications such as forestry monitoring using drones or remote mill automation present tremendous opportunities for increased efficiency and cost reductions. This is also the case in areas where big data can be applied, for instance, to solve variability and throughput-related issues in each step of the integrated production flows (Exhibit 5). The industry is well placed to join the digital revolution, as paper and pulp producers typically start from a strong position in terms of collected or collectable data. At the customer-facing end, the opportunity for innovation is huge and has the potential to transform existing industries and create new ones, especially in packaging segments. Digital developments will also help disrupt previous B2B2C value chains, paving the way for direct B2C relationships between paper-product makers and end consumers, for example, in tissue products. The digital world is unfamiliar territory to most paper industry CEOs. To avoid too much doodling with small uncoordinated efforts, it is necessary to undertake a thought-through program, preferably guided by digitally experienced people either on the top-management team or board. Exhibit 5

Finding value-creating growth roles for forest products For any paper-company CEO who looks out ten years, the really different challenges will not be around cost containment. Global trends are moving the industry into a new landscape, where the challenges and opportunities for finding value-creating growth roles for forest products are changing radically. For example, the industryâ&#x20AC;&#x2122;s historic linear value chains are giving way to more collaborative structures with players in and outside the industry. We believe examples will include new producer and distributor collaborations; pulp players collaborating more innovatively with nonintegrated players; paper and packaging companies collaborating more intensively with retailers, consumer-goods companies, and technological experts; and new products such as bio-refinery products requiring novel go-to-market partnerships. Here are some interesting examples of how these and other trends could play out. Staying relevant (and increasing relevancy) in a fast-changing packaging world. The packaging market is multifaceted and continuously morphing. Digital developments influence it both by stimulating demand for packaging used in e-commerce and by enabling the integration into packaging of sensors and other technology. E-commerce has highlighted new packaging topics such as improved product safety, the un-boxing experience, counterfeiting measures, optimization for last-mile delivery, and a growing interest â&#x20AC;&#x201C; at least from the large e-commerce-based retailers â&#x20AC;&#x201C; in the posPAPERFIRST MAG Summer 2019

Market OutLook

sibilities to merge primary and secondary packaging. At the same time the packaging industry has to deal with increasing pressures around cost, resource conservancy, and sustainability. That last topic has gained huge momentum in the past couple of years as concerns over plastic waste has added to the concern over CO2 emissions from fossil-based packaging materials. Consumer goods companies, retailers, packagers, and policy makers alike are now exploring a wide range of possible solutions for what tomorrow’s packaging will look like. The opportunity for forest-products companies to develop a differentiated and distinct customer value proposition in this landscape has never been greater. Packaging materials CEOs will have to address a number of choices and trade-offs as they seek the appropriate strategic posture. Should you be a pure upstream player or a packaging-solutions provider? Should you focus on fiber-based packaging only or providing multi-substrate solutions? Should you be at the forefront of technology integration and application development in packaging or focus on materials development? To stay relevant, many companies in packaging are trying to move closer to the brand owner or end user. Only a few companies are positioned to successfully make this move, however, and even they should be cautious. We are already seeing brand owners and leading customers challenging the benefits of packaging companies coming with consumer-facing ideas such as complete packaging concepts. Some of these players would prefer packaging companies to focus instead on core competencies such as materials development or interfaces with other substrates such as plastics. Finding the right path in next-generation bio-products. Wood is a bio-material with exciting properties, from the log on down to fibers, micro- and nano-fibers, and sugar molecules. A healthy niche industry making bio-products has existed for many years alongside large-volume pulp, paper, and board products. We are in the midst of an explosion of research activity to develop new bioproducts, ranging from applications for nanofibers to composite materials and lignin-based carbon fiber. New processes are being designed to extract hemicellulose as feedstock for sugars and chemical production while still keeping the cellulose parts of the wood chip for pulp products. We believe wood-based products will find new ways to enlarge their footprint in a more sustainable global economy. But the challenges are legion, particularly for finding cost-effective production methods that can withstand competition not only from oil-based materials but also from other biomaterials. Finding the right balance between developing the “new” and safeguarding the “old” will be a crucial undertaking for executives running companies with access to fresh fiber. Finding growth in adjacent areas. Over the past decade or two we have seen the larger forestproducts companies performing a focus adjustment. Most companies have moved from being fairly broad conglomerates present in various forest-product segments to focusing on a few core businesses. To find value-creating growth in the next two decades, we expect companies to start broadening their corporate portfolio again, but broadening it around the core businesses they have been working on, so as to create differentiated customer value propositions. Finding value-creating adjacencies to the core business will be a challenging exercise in creativity and business acumen for executive teams. Finding new value-creating growth for forest products will also put the spotlight on a number of functional executive topics. We believe the following will be most important. ■ Innovation: The forest-products industry has not been known for a fast-paced innovation agenda. By and large it hasn’t been necessary, as markets and demand characteristics have changed relatively slowly. In the future, however, innovation in products, processes, organizational set-up, and

PAPERFIRST MAG Summer 2019

Market OutLook

business models will be imperative. For many companies, getting efficient innovation practices and organization up to speed will be an important challenge. ■ Talent management: The different skills required over the next 10 to 15 years, dictated by developments such as new business models in an online world, increased need for innovation and commercialization of products, and digitalization’s impact on anything from manufacturing processes to the content of work will put particular onus on the talent pool of forest-products companies. Installing an executive team that is able to understand new demands across customer businesses, digital, bioproducts that cater to completely different value chains, and cross-industry collaboration will be a major task for CEOs and boards. One particular war-for-talent battle that can become a key differentiator is around the content of work. Our “Future of Work” research highlights that already today, around 60 percent of all tasks, i.e., not entire jobs or roles but their components, are possible to automate. And looking to the coming 10-15 years, more than 30 percent of all “physical and manual skills” risk becoming obsolete while more “technological” skills instead will grow very quickly. This will provide a critical and likely success-defining re-skilling challenge for the companies in the industry. ■ Commercial excellence: Paper and forest-product companies will need to transform their commercial interface to stay relevant, particularly in packaging and downstream paper. They will need to put in place a more professionalized and skilled organization that focuses on value creation instead of focusing primarily on sales volumes.

■■■■

We believe the paper and forest-products industry is moving into an interesting decade, one that will see nothing less than a transformation of large parts of the industry. There will be many barriers to overcome and metaphorical cliffs to fall off. But the companies that are able to navigate through successfully can look forward to an industry that has a new sense of purpose and an increasingly vital role to play.

Peter Berg is a senior expert in McKinsey’s Stockholm office, where Oskar Lingqvist is a senior partner. Together they lead McKinsey’s global Paper & Forest Products Practice. Copyright © 2019 McKinsey & Company. All rights reserved.

PAPERFIRST MAG Summer 2019

Survey

The PaperFIRST Barometer We invited a panel over one hundred top executives and mill managers from Europe, Asia, the Americas and the Middle East to participate in this very first barometer of the industry that we plan to update on a regular basis. They can be from small independent companies or large international groups. All of them are producers of pulp, paper and board. The outcome is quite enlightening. It shows a trend regarding the current mood of the industry globally and how their current challenges are being addressed on both a business and production levels. Moreover, the detailed comments from the CEOs of Miquel y Costas, Sappi Europe, Solicar (Gemayel Frères) and Surpapel cited hereafter can be inspiring.

BUSINESS & STRATEGY 1. Overall business forecasts and expectations for 2019/2020 vs 2018?

67%

Lower

Profitability should suffer in the near future for a majority of respondents.

Equal

Production volume 28%

67%

Turn-over 28%

33%

Investments 39%

6% 39%

50%

Profitability 67% 0

Higher

11% 28%

6% 100

Michele Bianchi, Reno De Medici (RDM), Italy «The year 2019 started weaker than beginning of 2018, although in line with the second half of last year. I don’t expect a dramatic drop in demand and/or consumption, it can still be recovered but typically the first half of the year is stronger than the second and this year has not been as strong as wished.»

04 16 PAPERFIRST MAG Summer 2019

Survey

2. Do you feel that competition is getting stronger or weaker on your markets?

72%

Weaker

On both national and international contexts, competition is expected to become stronger.

Equal

Stronger

National market 6%

22%

72%

International market 0% (if relevant)

33%

67%

100

İsa Doğanli, Cukurova, Turkey «Too many paper mills started and will start in Turkey and Europe.»

3. How would you rank the following factors of competitiveness?

56%

Sustainability is considered as a significant factor of competitiveness.

Very low Price 17%

Low

Agility / Adaptability 6%

22%

Sustainability 17%

28%

Innovation 11%

44%

High

Very high

28%

50%

67%

6% 56%

6% 33%

11% 75

100

Michele Bianchi, Reno De Medici (RDM), Italy «Liner grades for the corrugated industry has been highly in competition for price, given the new capacity and the big turn around in Containerboard.»

4. How do you see the probability for external and organic growth in the months to come?

61%

The quest for growth is permanent, but organic more likely than external.

Not probable

Probable

Very probable

Organic

28%

61%

External

61%

39%

11%

0% 100

PAPERFIRST MAG Summer 2019

Survey 5. Is diversification a key issue for you?

72%

YES

With no surprise, diversification is a high preoccupation for the majority.

72% 0

22% 25

100

6. Do you think that your legal environment is currently appropriate and fair (local/international regulations and trade rules, taxation…)?

50%

The legal environment is seen nearly as much appropriate as inadequate.

Not appropriate

Appropriate

44% 0

Very appropriate

50% 25

100

Frédéric Nusse, Papeteries de Clairefontaine, France «The compulsory taxes on industry in France discriminate against other countries.»

7. How concerned do you feel about the following aspect?

44%

In a globalized economy, exchange rates are obviously a major concern.

04 18 PAPERFIRST MAG Summer 2019

Not concerned

Quite concerned

Credit availabilty 39% Exchange rates 11%

Highly concerned

50% 44%

Interest rates 39% Access to foreign 44% currencies 0 25

11%

44% 28%

33%

33% 50

22% 75

100

Survey 8. Have you already taken specific measures in order to improve your recruitment attractiveness towards the younger generation? YES

78%

A sign of awareness of the necessity to improve attractiveness towards the younger generation.

78% 0

22% 50

If yes, please specify: YES

100

Partnerships with universities

72%

28%

Apprenticeship

78%

17%

Mentoring programme

50%

Participation in employment forums

61%

39%

100

9. Industry 4.0â&#x20AC;&#x2122;s consequences on industry as a whole is a hot topic. To what extent have your activities been already impacted by these developments?

50%

With no surprise, Industry 4.0 is mainly affecting the production process, but permeates throughout the company.

Low

Not relevant

Production process

44%

6% 50%

Communication

39%

22%

Sales and marketing

50%

Management Administration and financial tools

33%

39% 39%

11%

33%

33% 0

High

33%

28% 25

39% 50

100

10. What are your prospects about the long-term future in your segment of the Pulp & Paper industry?

78%

Optimism running high for pulp & paper senior executives.

Not good

22% 0

Quite good

Very Good

50% 25

28% 50

100

PAPERFIRST MAG Summer 2019

Survey

Papermakers comments Berry Wiersum, CEO of Sappi Europe:

« We are establishing leadership positions in Packaging and Specialities, which will provide future growth along with bio refinery products »

ABOUT THE BUSINESS ENVIRONMENT In 2019/2020 compared to 2018, we expect lower production volumes, the same turn-over and profitability but higher investments. The Graphics market is declining faster than the Packaging and Speciality markets are growing, hence the drop in volume. However, the Speciality segment has higher value, so turn-over will increase. Graphics competition in Europe is definitely getting weaker, but there is also a shake-up in the Packaging and Speciality markets. Asian producers in Graphics are not really getting stronger, but Packaging and Speciality producers are. Price, sustainability and innovation are very high factors impacting our competitiveness. Agility/ Adaptability are also high factors. Right now sustainability and innovation are closely linked and downstream customers are driving hard for new products. However, legislation is also driving decarbonization in energy intensive processes, so that will result in further innovation. Price remains very important, particularly in Graphics where raw material price rises have stretched elasticity to its limit. To adapt to this market environment, we have converted Graphics machines to Specialities and have invested in upgrading the competitiveness in our Graphics machines. We have created a new department of innovation and sustainability which will develop new products and processes to answer both customer and legislative priorities.

04 20 PAPERFIRST MAG Summer 2019

ABOUT STRATEGY AND FINANCE In the months to come, organic growth is probable but external growth is not. Whilst Graphics will not grow, Packaging and Specialities will, so we will see growth in value. Sappi acquired 2 companies in the last 18 months and will concentrate on integrating those during the next 2 years. Diversification is also a key issue for us. We are developing products from pulp side streams and have built a nano cellulose pilot plant. I expect Sappi Europe financial results in 2019 to be lower than in 2018. The risks I can identify for my company and my specific industry segments are economic slowdown, faster decline in graphics and runaway raw material costs. The strength of the US dollar has also a major impact on raw material costs. To answer the question about “Small is beautiful” vs “Too big to fail”, I would not choose because we do both with success: It’s a question of adapting and practising.

ABOUT HUMAN RESOURCES AND DIGITALISATION We are quite concerned about population age and recruitment and highly concerned about the cost of labour. Recent labour agreements have been more inflationary at a time when price elasticity is at breaking point. This is dangerous for the industry. We have taken specific measures in order to improve our recruitment attractiveness towards the younger generations (partnerships with universities, apprenticeship and mentoring programs). We also expect robot and AI technology to impact all functions including HR, so we have appointed a Digitisation Manager. Industry 4.0 has already highly impacted our acti-

Survey

vities in many sectors (production process, communication, Sales & Marketing, management and administration & financial tools). More specifically, the efficiency of our machines has shown a marked improvement since we started with AI. In finance processes we have also started using it.

ABOUT THE FUTURE My prospects about the long-term future in our segments are very good. Our Graphic business

will be concentrated in the area we are best at and on highly competitive assets. We are establishing leadership positions in Packaging and Specialities, which will provide future growth along with bio refinery products. Ideally, where would I like to lead Sappi in 10 years’ time? There will be a better balance between the businesses and profitability will shift upwards due to leadership positions and greater pulp integration. Innovation will see us entering new markets.

Jordi Mercader, CEO of Miquel y Costas, Spain:

« Our challenges are completely focused on promoting the circular bio-economy, as well as on innovation, in order to introduce new products and increase the added value »

ABOUT THE BUSINESS ENVIRONMENT The main challenges of the sector are related to the digitalisation of the industry for competing in the global market, decarbonisation of the factories, improving energy efficiency and reducing the consumption of resources. These challenges concur with those of Miquel y Costas, which are completely focused on promoting the circular bio-economy, as well as on innovation, in order to introduce new products and increase the added value. We are living through a critical moment of rejection of single-use plastics and for Miquel y Costas it would be very rewarding to be able to offer different alternatives to consumers that are fully sustainable and respectful of the environment, such as biodegradable tea bags or compostable papers for single-dose coffee. In terms of product innovation, Miquel y Costas is working in both the division of industrial products and in the tobacco industry. Almost 90% of our sales come from exports (we sell to more than 100 countries in the world) and this is a tendency that remains on the rise. Those that are more committed to the environment are the ones where we can have the greatest impact.

ABOUT SUSTAINABILITY Our total net investment in the environment was €5.2 million in 2018. Total resources dedicated by the Group to environmental protection amounted to €3.5 million. Our commitment to the environment is at its maximum and we attest to this with transparency, as it is reflected annually in the international programs CDP Climate Change and CDP Water Management. All companies in our group have among their objectives the application of new production technologies that aim to achieve significant reductions in emissions, water consumption and waste. In fact, our management of the water and the control of the greenhouse gas emissions is reflected in the “management level qualification” obtained in the CDP in 2018, above that of our peers, both in terms of geography and sector. We continue to enhance the concept of circular economy of our processes and, as an example, we are working at using our own waste as renewed raw materials. PAPERFIRST MAG Summer 2019

Survey

ABOUT DIGITALISATION AND INDUSTRY 4.0 The digital revolution is both a challenge and an opportunity. The interconnection along the entire value chain improves information flows and achieves greater efficiency. The paper industry has been digitalising its production processes for many years, through the monitoring of an immensity of variables in real time. The revolution 4.0 can bring changes with the application of Artificial Intelligence and Big Data in production processes that can lead to optimisation of the operations.

ABOUT PULP AND ENERGY Prices are already showing some reductions. Cellulose depends to a large extent on the Chinese market, which is one of the main consumers, so we will have to be attentive, among others, to the evolution of the trade war between the United

States and China. Another relevant factor will be the evolution of the global economy, that in case it slows down, it will most certainly accelerate the descent. In addition to the costs of pulp, one of our major concerns is the price of energy in Spain and the lack of momentum for cogeneration, a very efficient technology for paper mills.

ABOUT THE FUTURE A certain process of concentration is perceived in our sector, but through small acquisitions, as Miquel y Costas did with Clariana, specialised in coloured papers, last year. Our company’s longterm strategy is to promote a growth plan for our industrial project, but we are prudent and we move forward step by step. Our objective is the industrial project maintaining independence. One way is through inorganic growth, but we always focus on searching value and not just the Group’s expansion.

Fady J. Gemayel, President of Solicar (Gemayel Frères Group), in Lebanon:

« Competition is getting stronger in national as well as in international markets »

ABOUT THE BUSINESS ENVIRONMENT Our overall business forecasts and expectations for 2019/2020 are equal in production volume vs 2018 but lower in turn-over, investments and profitability. Competition is getting stronger in national as well as in international markets. Still, much dumping is taking place in the region. Price is a very high factor of competitiveness and innovation is high as well. The largest part of the market is under price pressure from dumping. The other factors such as innovative products which are important in general are not now under consideration from buyers. In order to adapt to this market environment, we will implement cost cutting and product improvement. External and organic growths in the

04 22 PAPERFIRST MAG Summer 2019

months to come are unlikely. In addition, diversification is not a key issue. In that context, we need to sail through these difficult moments and consolidate our position with dedicated offerings. Our legal environment is currently not appropriate and fair. Much dumping is still taking place despite the safeguard measures enacted lately in the GCC countries. I wish industry leaders would realize that putting the break for five days per year are much less expensive for them than flooding the markets and… dumping. Our overall financial results in 2019 are expected to be lower compared to 2018. Our Group is also quite concerned about exchange rates and access to foreign currencies and highly concerned about interest rates. In our perspective, Small is beautiful. Nevertheless, we need to be flexible in production capabilities, but yet be specialised in sales.

Survey

ABOUT HUMAN RESSOURCES AND DIGITALISATION In terms of human resources, our major concerns or difficulties are population age, recruitment and, to a lesser extent, the cost of labour. In order to improve our recruitment attractiveness towards the younger generation, we have already implemented partnerships with universities and we have participated in employment forums. Our production process is already highly impacted by Industry 4.0. But other activities (Communication, Sales & Marketing, Management, Administration & Financial Tools) are only low-impacted.

ABOUT THE FUTURE My view about our long-term future is realistically positive. Paper industry is in the circular green economy playing an important role in the production, distribution and marketing chain. Ideally, where would I like to lead the Group in 10 years’ time ? First of all to exist ; then to be a leading specialist.

>>> Fady J. Gemayel is also President of NorPaper and Gemdoubs in France. His viewpoint from the French Market «Producers in Europe face an overcapacity of about five days of production per year. We are all better off stopping production for five days per year rather than reducing prices. Simple arithmetics show that stopping will cost about 225 million euros per year whereas reducing prices cause losses exceeding a billion dollars. Furthermore, dumping in other regions is unsustainable as it is now faced by anti-dumping measures by GCC which will probably be adopted by others is the region. Additionally, the prices are dumped by traders unreasonably causing substantial undue revenue losses to paper makers themselves as some interesting quantities are much needed anyhow and need not be undersold.»

OTHER COMMENTS... Pierre Macharis, CEO of VPK Packaging:

« The container board market faces overcapacity as too many graphical paper machines have been converted to produce that grade. »

Pedro Huerta, CEO of Surpapel:

« The fiber sector is the best for recyclable and eco-friendly products. We see opportunities in the growth of e-commerce and the substitution of plastic and polymers in Latin America. »

Stéphane Barbereau, Managing Director of Papeteries du Léman (PDL, Bolloré Thin Papers):

« In order to adapt to our market environment, we survey law regulation on tobacco products, market trends in food packaging and the consequences of digitalisation of communication on thin printing. » PAPERFIRST MAG Summer 2019

Survey

The PaperFIRST Barometer

PRODUCTION & PROCESS 1. Runnability is key for the performance of your production line. How strategic do you see the following topics?

61%

Predictive maintenance and dewatering are considered as highly strategic by a majority of mill managers.

Not strategic Stock preparation Dewatering

11%

Important

29%

Highly strategic

57%

7% 29%

61%

Machine clothing

7% 43%

Automation

0% 36%

Drying process

4% 39%

54%

Quality control

7% 36%

54%

Handling and warehousing Predictive maintenance Supply chain

46% 61%

32%

54%

4% 32% 11%

11%

61%

32%

54% 25

100

2. What are your priorities to improve the productivity of your mill?

82%

Staff training seems to come first to improve the productivity of a mill, just before cost control.

04 24 PAPERFIRST MAG Summer 2019

Low priority

Not relevant

Staff training 14% Cost control 7% 11% Process management 18%

82%

79% 4%

75%

Up-to-date technology 29% 0

High priority

11% 25

57% 50

100

Survey

3. According to you, on what topics machinery, maintenance and chemicals suppliers should work to improve their offering?

84%

Low priority

Among the expectations, innovation can make a difference when choosing a supplier.

Price 10%

13%

Not relevant

77%

Agility / Adaptability 29% Sustainability 19%

High priority

10% 61% 19%

61%

Innovation 6% 10% 84% 0 25

100

4. Which of the following aspects of digital transformation have you already implemented in your mill?

82%

Artificial intelligence is not yet a reality in a vast majority of mills, but predictive maintenance is.

YES

93% 4%

Sensors / Cameras

36%

64%

Remote control

93% 4%

Data safety

14% 82%

Artificial intelligence Predictive maintenance

75% 0

21% 75

100

5. What will be the main issues in your mill during the next 5-10 years?

48%

Even more than pulp availability, safety at work is a big concern for mill managers.

Rank from 1 to 6 (1 being the biggest concern) Safety at work

48%

Environmental issues

39%

Fibre and pulp availability

35%

Productivity

29%

Staff competence

26%

Energy supply

23%

10%

20%

30%

40%

50%

PAPERFIRST MAG Summer 2019

EXCLUSIVE INTERVIEWS

Pulp: a bubbling sector

Photo above: Marcelo Bacci (Suzano) Photo right page: Ismo Nousiainen (Metsä Fibre)

PAPERFIRST MAG Summer 2019

The pulp sector is reinventing itself: producers are surfing the wave of the bioeconomy, playing the full role of sustainable fiber and innovation and sometimes pushing their advantage in growing niche markets, such as textile pulp. Cross points of view of Marcelo Bacci, CEO of Suzano (a Brazilian producer) and Ismo Nousiainen, CFO of Metsä Fibre (a Finnish producer). Marcelo Bacci also gives his comments on the first results of the merger between Suzano and Fibria. For his part, Ismo Nousiainen explains the project currently being studied of a new bioproduct unit at the Kemi plant.

1. What are your biggest challenges at the moment?

MARCELO BACCI (Suzano) - Megatrends such as global warming, volatility in energy prices, water scarcity, increased urban waste, limited access to raw materials and the challenge of food security result in a greater need for bio-based products. Thus, our main challenge is to create products that are part of the concept of “Innovability”, which combines innovation with economic, social and environmental sustainability. Fortunately, we have excellent researchers and access to cutting-edge technology on the one hand, and eucalyptus plantation, mills and a large production chain on the other. Thus, we have the perfect conditions in our hands to push forward in seeking solutions for a low-carbon economy, answering society’s desire for sustainable production and renewable products. ISMO NOUSIAINEN (Metsä Fibre) - I see several opportunities for our company and industry in the bio economy. With our products, we are able to target several global issues or future challenges, e.g. mitigate climate change, replace fossil based products and create the foundation for the increase of the standards of living. When it comes to the climate change, we are definitely part of the solution with our sustainable wood resources utilization and products which act as long-term carbon storages and they are able to replace the fossil-based products. The best example of these products is the sawn timber used as construction

EXCLUSIVE INTERVIEWS

material. With Metsä Fibre’s unique bioproduct concept we can also increase the production of new different bio-based materials, like textile fibres, bio composites etc. And at the same time, the concept enables us to operate without any fossil fuels at the pulp mills – and actually our target is to be totally fossil fuel free in all our operations by 2030.

2. What are the new products you would dream of launching and why?

M.B. Sustainability and innovation must walk handin-hand, and we are aware of the magnitude of our responsibility in developing sustainable, renewable and/or biodegradable products. That is why we constantly monitor market trends, the needs of our clients and the demands for innovation and new technologies, and are always willing to promote the global bioeconomy. We use the term “Innovability”. We thus believe that there is nothing more in line with society’s demand than creating new solutions using planted wood. Notable among the many advances we will roll out towards the future we want are the development of renewable-based products such as lignin, nanocellulose and bio-fuels. I.N. Metsä Spring, which is innovation company in Metsä Group, is building a demonstration plant PAPERFIRST MAG Summer 2019

EXCLUSIVE INTERVIEWS

for textile fibres together with Itochu corporation. This plant is located by our Äänekoski bioproduct mill, and it will utilize our pulp for the textile production. If we succeed in our development work in this area, we can sustainably produce textile fibres in a significantly more environmentally friendly way compared to current method which are typically burdened by a notable environmental footprint. All in all, wood based textile fibres have a huge potential for replacing synthetic fibres, and personally I feel thrilled about this production method developed by Metsä Group as it is based on direct dissolution using novel compounds for the pulp dissolution stage. In contrary to the methods used commercially today, Metsä Group’s method relies on wet paper-grade pulp as the raw material. In addition to this, we are also studying the production and product suitability of bio composite and lignin that also have a huge future potential. To put it short, it is a great privilege to be able participate in these kinds of groundbreaking development cases that can really bring forth the remarkable possibilities of wood fibres and make a huge difference for the environment.

3. In a global market, where do you see the best opportunities of growth for your products in the near future? M.B. Global society is increasingly showing a desire to adopt innovative practices linked to conscientious and sustainable consumption. Hence, it is up to us to look at growth opportunities in a comprehensive manner, from increasing the productivity of our planting areas to developing products that replace non-renewable or nonbiodegradable materials. The future will require companies to devote greater attention to the use of natural resources, such as water and soil, and with the capability of emitting less carbon. Fortunately, our actions are already based on these drivers. I.N. In the coming years, we see positive market development both in pulp and sawn timber. Pulp demand will increase significantly also going forward, especially in the developing areas.

PAPERFIRST MAG Summer 2019

And the demand for sawn timber will increase, with the positive development in construction industry and growing use of wood materials.

4. How do you make your activity more sustainable every day? M.B. At Suzano, the issue of Sustainability is even more relevant because the long term is essential to the perpetuity of the business, given our harvest cycle is around seven years. Thus, in all processes, regardless of the area, we monitor a wide range of indicators to obtain a systemic view of everything and the competitiveness and sustainability of the business in the long term. Since sustainability should permeate all of the company’s decisions, in different areas, we don’t limit our purview to the daily operations. On the contrary, Suzano, for instance, was the first Brazilian company to issue dollar-denominated green bonds and the first Brazilian company to issue green bonds in the local market. With these issues we tapped new investors, expanded our portfolio, met their demand for securities with this profile and, simultaneously, made our contribution to developing the Brazilian green bonds market. I.N. Sustainability is nothing new for us, but it has been a significant part of all our operations for ages. We take care of our personnel’s well-being and safety. And in production, we invest in environmental efficiency, the continuous reduction of fossil-based carbon dioxide emissions and the minimization of our operations’ environmental impact. We are making our mills increasingly efficient in terms of the environment, materials, and energy by using raw materials, water, and energy in a resource-smart way. We produce significant amounts of renewable energy and other bioproducts out of side streams. Our unique bioproduct mill concept enables the future expansion of our product range with new bioproducts that possess an increasingly high added value. The wood raw material and production side streams in the bioproduct mill concept are used in the form of various biopro-

EXCLUSIVE INTERVIEWS

ducts, which can replace fossil-based materials and fossil fuels. Continuous improvement is one of the cornerstones of our operations. Accordingly, we improve the production and resource efficiency of our pulp and sawmill businesses on a continuous basis. Resource-smart solutions are the direction we are heading in when planning new investments, in terms of both equipment and our products.

5. How is your production mode being impacted by new technologies (digitization, industry 4.0, …)?

M.B. Here at Suzano we understand that new technologies are the means for generating and sharing value, and, in the case of Digital, we have been doing that by increasing our productivity, improving the quality of our services and products in addition to our employees’ quality of life. We have several projects across our entire chain capturing value and we created a Digital Area to further accelerate the focus of using these new technologies, rapidly scaling our projects as well as implementing an Agile-format work culture. We implemented a process of constant training across the organization for new Digital skills, encompassing topics ranging from Machine Learning, Agile work models and even Python programming, which are carried out according to the area of operations of our team. I.N. Pulp mills have a long history of utilizing digital solutions, e.g. process upper level controlling systems. And now in the Äänekoski bioproduct mill we also take use of the automated distribution center and the automatic loading system to train wagons. So I would say that the production mode is highly impacted and enabled by the new technologies, and has been that for several years already. Also in the sawmills’ side, we are now developing the utilization of digitalization and automation, and ready to take it to a new level with our planned sawmill investment in Rauma, where we aim utilize technology and

data clearly on much higher level that what is done in current sawmills.

6. Pulp prices are a big concern for many paper producers. Do you see them stabilizing or declining in the coming months?

M.B. The pulp market is a fragmented and globalized market, subject to the normal variations in supply and demand. For this reason, it is impossible to predict or anticipate price movements. I.N. Pulp prices are based on the market situation, on the pulp demand and production amounts at a specific time point, so I see no point in speculating with this topic.

7. Do you still see any possible consolidation in your sector? M.B. The global pulp market continues to be significantly fragmented compared to other industries. The merger of Suzano Papel e Celulose and Fibria created a new global leader, with capacity corresponding to just 16% of the global market pulp supply, including softwood and hardwood (10.9 million of a total of 67 million tons). Hence, new mergers or acquisitions in the industry can happen. Suzano, however, is currently focusing on reducing leverage after the merger with Fibria and on capturing synergies resulting from the combination of both companies. I.N. In hardwood side, we saw significant consolidation when Fibria and Suzano joined together some months ago. I personally believe that we will see also other consolidations going forward, taking into account the current market structure. Nowadays, in the hardwood pulp sector top three companies produce almost half of the total amount, whereas in the softwood pulp sector top three companies represent only a quarter of the total production. PAPERFIRST MAG Summer 2019

EXCLUSIVE INTERVIEWS

HOW DIFFERENT FROM ÄÄNEKOSKI WILL BE THE KEMI MILL? Ismo Nousiainen (Metsä Fibre) - As we strongly believe in continuous development, we are of course all the time developing our production concepts both in pulp mills & sawmills. The ongoing Kemi bioproduct mill planning is based on the Äänekoski bioproduct mill platform, but of course with the aim of taking the concept to the next level. In Kemi, the total production capacity will be higher in what it is in Äänekoski: target for the now initiated pre-engineering project is to create conditions for building a bioproduct mill with annual production capacity of approximately 1.5 million tonnes of softwood and hardwood pulp. This mill would be the biggest wood processing unit in the Northern hemisphere.

IS THE RECENT MERGER WITH FIBRIA ALREADY PRODUCING THE EXPECTED RESULTS? Marcelo Bacci (Suzano) - In March this year we announced that we expect to capture between R$800 million and R$900 million per year (before taxes) in operating synergies from the combination of assets of the former Suzano Papel e Celulose with Fibria, the merger that created Suzano. We also announced that we expect to achieve 40% of these results by end-2019, 90% in 2020 and then we would reach 100% of what can be considered as the ideal level of synergy capture in 2021.

PAPERFIRST MAG Summer 2019

Global Challenges

Visions from Europe, Asia, Africa and the Americas Europe, India, South Africa, Brazil and the USA all have one thing in common. They each have a strong and active organisation to represent and defend the interests of their national or regional pulp and paper industry. Their directors agreed to answer our questions and confront their respective views and positions on some current issues. Note that since these interviews last June, Donna Harman of the AF&PA has retired and Sylvain LhĂ´te of the CEPI tragically passed away. They both served the industry with passion. The President & CEO of AF&PA is now Heidi Brock, and CEPIâ&#x20AC;&#x2122;s Director General is Jori Ringman.

USA

AF&PA (American Forest and Paper Association) Mrs Donna Harman President & CEO

PAPERFIRST MAG SUMMER 2019

BRAZIL

IBA (Brazilian Tree Industry Association) Mr Paulo Hartung Executive President

Global Challenges

EUROPE

CEPI (Confederation of European Paper Industries) Mr Sylvain LhÃ´te Director General (Dec)

INDIA

IPMA (Indian Paper Manufacturers Association) Mr Rohit Pandit Secretary General

SOUTH AFRICA

PAMSA (Paper Manufacturers Association of South Africa) Mrs Jane Molony Executive Director

PAPERFIRST MAG SUMMER 2019

Global Challenges

1. What are the key figures of the pulp and paper sector in your region (production volume, employment, turnover) and how do you expect them to evolve in the near future?

CEPI Paper and board productions and consumptions continue to show contrasting evolutions with graphic paper structurally in decline whereas packaging paper, speciality paper and tissue are growing. Industry performance was exceptionally strong in 2017 and most of 2018. It has slowed down in 2019 on par with regional and global uncertainties, trade and economic tensions. Our pulp and paper sector generates a turnover of €82.2 billion and employs 176 760 people in 891 mills. The investment volume is €5.5 million annually.

eighth-largest manufacturer of this product worldwide. Currently the planted-tree industry directly and indirectly employs 3.7 million people. The year 2018 saw record pulp production of 21.1 million tons. It was also a period for advancement in exports, with a 31.5% increase in pulp traded (US$ 8.3 billion) and for paper this growth was at 8.3% (US$ 2.1 million). The outlook is for growth in the future, since companies in the sector are announcing robust investments in the coming years: R$ 22.2 million (US$ 5.7 million) from 2019 to 2022, which will be implemented in factories, forests, and innovation. Concrete examples are the recent announcements by Bracell (US$ 1.8 billion), Duratex (US$ 0.9 billion), and Klabin (US$ 2.3 billion).

AF&PA Currently, the forest products industry accounts for approximately 4% of the total U.S. manufacturing GDP, manufactures nearly US$300 billion in products annually and employs approximately IPMA 950,000 men and women. The industry meets India’s production of paper is estimated to be a payroll of approximately US$55 billion annually around 17 million tonnes per annum, with 57% and is among the top 10 manufacturing sector from recovered paper, 25% from wood and 18% employers in 45 states. from agro residue. The pulp & paper industry in On May 15, 2019, AF&PA released its India provides direct employment to about 59th Annual Survey of Paper, Paper500,000 persons, and indirectly to board and Pulp Capacity, which around 1.5 million. The industry’s tur«Paperboard states that U.S. paper and papernover is estimated to be about US$ capacity is board capacity declined 1.1% in 8.5 billion. Per capita paper consumpprojected to 2018. As published in the report, tion in India is currently around 13 decline by 0.3% according to survey responses kgs, while the global average is 57 in 2019» annual paper and paperboard capakgs. Per capita paper consumption is city is projected to decline by 0.3% projected to increase to at least 17 kgs by in 2019. The 2018-2019 report also notes 2024-25 in India. The market for paper in India the continued trend of increases in packaging is growing at about 6-7% per annum. and tissue segments and declines in the printing Greater emphasis on education and literacy by papers segment. the government coupled with growth in organised retail and demand for better quality paper IBA are the major drivers for writing and printing First it is important to mention that Brazil is the paper. Demand for better quality packaging of world’s second largest producer of pulp, behind FMCG products marketed through organised only the USA. As for paper production, it is the retail, booming e-commerce, rising healthcare

PAPERFIRST MAG SUMMER 2019

Global Challenges

foreign countries have kept import tariffs or non-tariff barriers. We also see that our exports are often targeted by anti-dumping and safeguard measures from foreign countries. US-China trade war has not significantly impacted the European paper exports so far, but PAMSA the recent decisions from both sides to further The South African forestry and forest product increase the import tariffs may have a sector employs 158,000 people, with cascading indirect effect on European 690,000 people dependent on it for «US-China paper industry exports and markets. their livelihoods. Trade disputes between the US and The total production value is trade war has the EU related to steel and alumiapproximately R32.4 billion (US$ not significantly nium tariffs and also Boeing/Airbus 2.16 billion). impacted the might also have an indirect impact. We are currently very involved European paper Post-Brexit, the United Kingdom will in working to increase the rate of exports so far» be the first trading partner for EU pulp paper, paper packaging and liquid and paper products. Like for many other board packaging recycling, thereby industry sectors, a hard Brexit could hit signidiverting more from landfill. In 2017, South ficantly the European paper industry, although Africa reached its 2020 paper recycling three the current political uncertainties prevent any years with a paper recovery rate of 70.7%. In precise forecast exercise. 2018, this upwards motion continued with South Africa reclaiming 71.7% of recoverable paper for AF&PA reuse in paper, packaging and tissue manufacThe health of the U.S. paper and wood products ture, although we have seen a slight drop in both industry depends on strong export markets; production and consumption from 2017 to 2018. that’s why AF&PA strongly supports free and We hope to see this trend reversing as our secfair trade policies and practices. Take the United tor is looked to for renewable and sustainable States–Mexico–Canada agreement (USMCA) packaging solutions. for example. We view the USMCA as a positive We continue to drive separation-at-source witstep toward recognizing our strong global posihin households, schools and businesses through tion and advancing our manufacturers’ ability awareness campaigns and training and developto compete in Canadian and Mexican markets ment of informal waste reclaimers. beyond current levels. 2. How is the current instability of U.S. pulp and paper exports to NAFTA countries international regulations (trade wars, in 2018 were estimated at $10.1 billion or about Brexit, etc.) impacting the industry in 44% of the industry’s total exports. In 1993, that your region? What kind of amount was only $3.2 billion or 36% of our inconsequences have you already seen? dustry’s total pulp and paper exports. U.S. pulp and paper exports to Canada and Mexico support an estimated 88,000 direct and indirect CEPI American jobs, many located in rural areas. The European paper industry is exporting about We appreciate the Trump Administration’s focus €20 billion of pulp, paper and board. So an open on the need for China to change its unfair trade international market environment is important and commercial practices. We remain concerfor our industry. While European markets have ned about a long-term and negative impact of been fully open to imports since 2004, many a tariff battle on our industry and others and spends, over-the-counter medicines and increasing preference for ready-to-eat foods are the key demand drivers for paperboard/packaging paper.

PAPERFIRST MAG SUMMER 2019

Global Challenges

urge swift resolution to impasses so tariffs can be removed. It is critical for our manufacturers to have unrestricted access to the international marketplace and a level playing field among its competitors. Unfair trade practices, like China’s abrupt restrictions on recycled paper imports from the U.S. under its National Sword policy, led to a decline in U.S. recovered paper exports in 2017. Fortunately, markets for recovered paper have displayed high resilience. That decline was more than offset by a surge in exports, mostly to other trading partners in Asia. Despite its import restrictions, China remains the single largest export market for U.S. recovered paper.

PAMSA We haven’t really been directly impacted in SA although obviously where our companies have a global footprint they have seen some disruption in particular grades e.g. knock on effect of Chinese waste legislation. In SA they still buy from us but we have a shortage at home.

3. When defending the interests of the industry at a government level, do you feel that your concerns are taken into account? On which topics do you have difficulties to raise interest and shift the lines?

IBA CEPI Commercial instability is not good for anyone We are an industry with long standing roots in at any time, even more so on a global level. DiaEurope. Governments usually know our logue is always the best route for avoiding industrial challenges very well, but have consequences in different markets. a hard time picturing what the future We are carefully following this topic, looks like for our sector. since exports are of paramount «Commercial Not so long ago, paper was perimportance, especially for pulp. instability is not ceived as part of the past, margiChina is the main foreign market in good for anyone nalised by the replacement of print this segment, followed by Europe. at any time» media with digital technology. Yet So far no impact has been felt in within a short space of time, it has esthis industry, but it is an issue we are tablished itself as an essential material for aware of. a circular and sustainable economy providing renewable and recyclable packaging solutions. IPMA In Europe, the average paper-based product is The current global economic instability has reused up to 3.5 times using existing recycling impacted Indian industry, as of now, more inditechnologies. (…) rectly than directly, and relatively more in the financial sector than in the real sector. The curWe would like policymakers at national and EU rency exchange rate has fluctuated more than level to understand that we are a transforming normal, capital markets have witnessed some industry with a phenomenal potential, such as outflow of foreign portfolio investment and substituting unrecyclable and carbon intensive market sentiments are being impacted. If such materials for renewable and recyclable sodevelopments continue, international lutions. We need their help to support trade and direct investment flows this transformation, and we need will be impacted. Given the size «India’s paper them to consider us as part of the and potential of India’s economy, industry as such strategically important industries there will be both positive as well has not been that will play an essential role in deas negative consequences. India’s impacted much livering the carbon neutral economy paper industry as such has not both the World and Europe needs. been impacted much till now. till now» PAPERFIRST MAG SUMMER 2019

Global Challenges

AF&PA Clear public policies that advance our industry’s ability to apply sustainable manufacturing practices to innovate, invest, compete and plan for the future top our advocacy priorities list each year. We’re always eager to partner with industry leaders and key stakeholders to put our manufacturers’ compelling story front and centre before the United States Congress, federal administration policymakers and in state capitals. We’re grateful for the time granted to us and thankful that our concerns are taken into account. When it comes to regulatory reform, for example, we have long supported common sense reforms that ensure public policies do more good than harm. (…) Some regulatory reform initiatives are more complex and take a longer time to realize, like EPA’s Major Source Boiler Maximum Achievable Control Technology Rule. Commonly referred to as Boiler MACT, the rule aims to reduce emissions from major sources of industrial, commercial and institutional boilers. The process is nearly 30 years in the works, and our attention remains focused on securing a rule that protects the environment while supporting our industry’s ability to expand and create jobs.

is fundamental. We want to demonstrate the benefits that the planted-tree industry provides for the country and for all citizens from an environmental, economic and social point of view. The industry has much to contribute to the country and to the environmental balance of the planet. We have a fundamental role in mitigating greenhouse gas emissions: not only do our forests store carbon, but our products are environmentally viable from start to finish since they are recyclable, renewable and biodegradable. IPMA As an industry association, the foremost role of IPMA is policy advocacy on behalf of India’s pulp & paper industry with government authorities and public advocacy with all stakeholders. On most issues, the government takes our views and concerns into consideration while formulating any policy. We also appreciate that any government policy or decision has to balance competing interests, and necessarily involves trade-offs.

PAMSA We have a good relationship with government although they may not always take our comments on legislation into account which can result in unintended consequences. In April this year, a five-year business plan for the Forestry Public-Private Growth IBA «We have a Initiative (PPGI) was formally ratiOne of the first things I did when good relationship fied, with billions of rands unlocked I arrived at Ibá was to bring [forwith government for investment in forestry and in mer] ambassador José Carlos forestry products and services da Fonseca Jr. on board, and although they may across the value chain – from we are resuming our operanot always take our trees to timber, pulp, paper and tions in Brasilia. We are in diacomments on recycling. An amount of R24 billion logue with the government and legislation into (US$1.6 billion) has been committed have even been part of the deleaccount» with a possible additional R12 billion gations of Minister of Agriculture (US$ 0.8 billion) after the 5 years, provided Teresa Cristina and of Vice-President the investment climate is attractive. Hamilton Mourão to China. Among the planned investments are new afforestation (tree planting), agricultural expansion We are also strengthening the sector’s relationand new processing and manufacturing capaship with our parliamentary body and with the city across the forestry and forest products. “It judicial branch. Furthermore, one of our misis critical that the sector be enabled to produce sions is to create a dialogue within society, this

PAPERFIRST MAG SUMMER 2019

Global Challenges

new fibre through the sustainable planting and farming of trees for processing into environmentally sustainable wood, pulp and paper based products.

4. Do you see decarbonisation as an opportunity or a constraint for your member companies? What are the ambitions of your sector in that respect?

CEPI Climate change is and will be the determining factor for industrial transformation and beyond for society at large. We have the advantage of very low process emissions so the main constraint we are facing is about the fossil energy we use; replacing them with low-to-no carbon energy sources and further gaining in efficiency. We have been the first industry sector to develop a European low-carbon roadmap. It has inspired investments and research but we probably need to change the approach in steps. First of all, go more local, because regional energy supplies are very different across Europe. Second, become more market-minded; consumers are starting to shift. They expect authentic solutions that deliver the value they still want but that are better for the environment. Plastics substitution in packaging is an example of this trend. So we should look much more closely at how our products will enable true decarbonisation and how best to demonstrate it. We have a lot to gain if we manage to be the most sustainably-sourced industry and provider of net-zero carbon solutions for the public. So Climate Change can be a real opportunity for our industry and its markets. But we should also remember that we depend on healthy eco-systems and natural resources – the forests where our fibres originate, the water and energy we use to run our processes. So we also have a vested interest in keeping global warming under control and we will also have to adapt to it.

AF&PA AF&PA member companies are avid stewards of the environment, dedicated to the principle that an efficient forest products industry is complementary to a healthy environment. That commitment has produced quantifiable results that are part of the association’s Better Practices, Better Planet 2020 program, which measures and sets goals for our industry’s contribution to sustainability across the value chain. Our latest greenhouse gas (GHG) reduction goal aims to reduce emissions from member company facilities by at least 20 percent between 2005 and 2020. (…) The United States Congress recognized the benefits of forest-based renewable biomass in the Fiscal Year 2017, 2018 and 2019 annual appropriations bills. The legislation calls on the Environmental Protection Agency, Department of Energy and Department of Agriculture to produce clear science-based policies that reflect the carbon neutrality of forest bioenergy and recognize biomass as a renewable energy source. The implementation of that federal biomass policy which appropriately reflects our industry’s use of carbon-neutral forest biomass for energy production puts us on a level playing field with the rest of the world and remains one of our top advocacy priorities.

«Our latest greenhouse gas (GHG) reduction goal aims to reduce emissions from member company facilities by at least 20 percent between 2005 and 2020»

IBA The planted-tree industry has an important role to play in order for Brazil to meet its goals in international agreements such as the Paris Accord. In addition to storing carbon in its forests (the equivalent of 4.2 billion tons of CO2 stored), this industry contributes with its more than 5,000 products and by-products, which are from sustainable origins and also store carbon, as well as being biodegradable (like paper, which decomposes in the natural environment in just a few months). This industry is a natural part of the bio economy, a new concept that Brazil has the ability to lead, providing it has a strategic vision. For this reason, public policies are needed to stimulate an economy with low emissions of greenhouse gases to create carbon market mechaPAPERFIRST MAG SUMMER 2019

Global Challenges

nisms. With clear and well-established rules, the country has everything it needs to be a leader in this area. IPMA India’s pulp & paper industry has, by and large, seen decarbonisation as an opportunity and is working towards reducing its resource intensity. Pulp & paper mills in India have been working towards better energy efficiency, green energy, employing a range of innovations and technologies. Paper mills have also undertaken significant upgrades to process technology to comply with stringent environmental norms and standards so as to reduce fresh water consumption and effluent and emission generation. Paper industry has invested huge amounts to upgrade and implement clean and green technologies, product quality, agro / farm forestry, etc. Specific energy and fresh water consumption have gone down significantly in the last decade. India’s paper industry is not forest-based but agro / farm forestry driven, and the industry has intensified its plantation efforts. Close to a million hectares of land in the country has been transformed into plantations due to the efforts of the pulp & paper industry. We are engaged in promoting a circular economy. PAMSA It is most certainly an opportunity. The forestry and forest products sector offers a myriad of low carbon alternatives to fossil based materials. (Refer to the Blue Sky Awards press release).

5. Is recruiting a big challenge for the companies you represent? And is the sector getting more attractive for the younger generation?

CEPI Like most manufacturing sectors in Europe, we suffer from a lack of attractiveness with younger generations. The challenges are often local but can be particularly acute in countries where competition for talents is stiff and unemploy-

PAPERFIRST MAG SUMMER 2019

ment virtually inexistent. In many places across Europe, our industry is still perceived as old fashioned and declining; cutting trees and polluting water. We need to better show and demonstrate where we stand and our vision of the future. Another issue is the lack of specific courses and training in Europe which would provide potential new-recruits with the skills that we require. Companies play a major role there, in the way they communicate, develop vocational trainings and partner with technical schools or adapt their work environment and processes. AF&PA Our companies are constantly recruiting new talent as they apply sustainable manufacturing processes, innovation and technological advancements in response to market demands and manufactured products. Along that route, there’s a tremendous opportunity for increased diversity in our workforce, and I personally encourage more women to consider this industry as a future career. With companies recognizing the importance of a diverse workforce and taking actions to achieve that goal, I am confident our industry has a bright future ahead. One way to help tell America’s ‘manufacturing story’ is to swing industry doors open wide and show-off operations. That’s why AF&PA supports National Manufacturing Day – an annual celebration co-produced by manufacturing leaders to underscore the benefits of and educate the public about manufacturing. Each year, and 2019 is no different, thousands of manufacturers open their doors to provide Americans a look at operations so they can better understand manufacturing and the jobs it creates and perhaps make it their career choice. IBA One of my missions at Ibá is to make this industry better known in society, and this includes the younger generation. We have communications activities planned to demonstrate the importance of forest-based industry in people’s everyday lives. We want to explain how the plantedtree industry transforms lives every day and is

Global Challenges

«We want the source of sustainable and essentrust regime, we cannot engage on to explain how tial products. price or market competition matAnother ongoing project is eduters. We obviously monitor closely the plantedcation, in which Ibá established a those developments and have a tree industry partnership with the Paula Souza broad range of activities to improve transforms lives Centre, a reference in public technical access to quality raw materials – wheevery day» education in the state of São Paulo. This ther virgin fibres or recycled ones. The project involves training teachers at techniwork we have done over the past two years cal schools so they can bring correct information to remove potential EU limitations to wood harto young people and explore the sustainability vesting, to maintain the FSC control wood sysand the importance of the planted-tree industry. tem, to increase European recycling objectives In 2018 a pilot project was carried out that impacand implement quality standards for PfR are ted 3,000 students and raised awareness among meant to improve and secure the long-term ac6,000 family members with regards to sustainacess to quality raw materials our industry needs. bility in the industrial planted-tree sector. It was a success, so much so that we are already AF&PA planning how to expand it and reach more young AF&PA is not involved in any aspect of product people with the concept of sustainability and the pricing. attributes of the planted-tree industry. IBA IPMA Because of its associative role, Ibá does not Recruiting is a challenge for India’s paper commanage prices and consequently does not companies as most of the best and the brightest ment on this issue. young people are more interested in careers in new economy and financial services, and do not IPMA want to work on shop floors or in plants. In orIndia is a fibre deficit country, be it wood, agro der to attract the best talent, the paper industry residue or recovered paper. India imports almost needs to reinvent its image. one million tonnes of pulp and 5 million tonnes of recovered paper annually. We need to ensure PAMSA assured supply of raw material domestically. As In South Africa, we are working closer with our already mentioned earlier, large wood based intesector to develop industry-focused curricula grated pulp & paper mills have undertaken intenand training material to ensure that the pulp and sive efforts to increase plantations in the country. paper process operators are skilled to a level The recovery rate of paper in India is estimated that industry requires. We are also investing sito be at 38%, which is quite low. We need to ingnificantly in the wood, pulp and paper research crease awareness amongst people and consuwhich we hope will attract young bright minds to mers so that proper separation takes place at the sector. source so that more and more paper is recovered. For this we need to create a robust value chain for the collection and proper disposal of paper which 6. Pulp prices and PfR are a hot topic requires involvement of all stakeholders. at the moment. How do you address these issues at your level?

CEPI As a trade organisation subject to the EU anti-

«We obviously monitor closely those developments»

PAMSA As an association we don’t deal with market related issues but certainly high pulp prices and waste paper prices do have a negative impact on mills’ profitability. PAPERFIRST MAG SUMMER 2019

INDUSTRY 4.0

Fibre Industry 4.0: Scenarios for the Digital Future by JĂźrgen Mielke - Siemens AG

Environmental issues, structural demographic changes, and resource scarcity are affecting us globally. At the same time, competition is increasing, continuously forcing companies to become ever more efficient and putting increased pressure on high-cost regions like Europe. Industry 4.0 and the digitalization of production can play a key role in providing answers to these challenges. By defining a tailored strategy for digitalization and embracing advanced technologies that are already available today, the fibre industry can reap the benefits of digitalization â&#x20AC;&#x201C; from the resolution of production challenges, to improved process quality and flexibility, to the exploitation of new business opportunities.

he age of digitalization not only enables new and significantly more variable production processes, some of which are autonomous, it also allows for complex simulations and remote maintenance services. Most of the challenges that digitalization helps address are not new to the fibre industry. Saving resources and improving production quality, reliability, and efficiency have always been at the top of the list for producers. But with recent developments in digital technologies, new solutions are now available that are, in comparison, relatively easy to adapt and can be implemented without the massive capital and labor expenses that were previously necessary. For example, in the past, tackling the issue of web breaks in papermaking required a multiyear project with huge investments in order to monitor and analyze the multiple parameters that impact web behavior and then optimize process properties. Now, this effort can be drastically reduced by using smart sensors and systems with advanced data analysis tools. Applications such as this are among the reasons why more and more companies in the fibre industry are rolling out digital solutions across their operations.

THE ELEMENTS OF DIGITALIZATION

Despite the clear benefits, however, digitalization efforts involve many constraints and considerations, and there is no onefits-all approach to Industrie 4.0 in fibre. The Confederation of European Paper Industries (CEPI) has specified five areas that fibre companies need to invest in to benefit from an increase in efficiency and flexibility as well as a better strategic position in the market: smart equipment, networking and connectivity, value chain integration, smart products, and data analytics. A holistically integrated Industrie 4.0 strategy will enable companies to realize the full potential of digitalization by helping them improve their offerings to the market, exploit innovations in products and systems, achieve better production performance, and benefit from synergies with other business areas and partners along the value chain. But companies can also choose to start by investing in just one of these five elements of digitalization. Several use cases demonstrate how digitalization can be implemented in a step-by-step approach, with a focus on different areas of the business depending on the maturity and specific requirements of the application.

PAPERFIRST MAG SUMMER 2019

INDUSTRY 4.0

USE CASE 1: Managed plant lifecycle information for improved organization efficiency One field that is often mentioned as a candidate for digitalization is plant lifecycle management and, more specifically, lifecycle information management. From design to operation to modernization, plant data are often handled in separate systems; as a result, maintaining plant information requires a huge amount of effort. Data are often incomplete or inconsistent, which has a negative impact on plant and process performance and presents a risk of noncompliance with industry and environmental regulations â&#x20AC;&#x201C; for example, due to a lack of documentation for emissions and energy consumption. Currently, information management and data transfer along the plant lifecycle are a major cost factor for companies, accounting for up to 60% of engineering costs. Information management also affects the productivity of highly trained staff, as engineers must spend a significant amount of their time â&#x20AC;&#x201C; in some cases, up to 30% â&#x20AC;&#x201C; looking for or processing data that are already available in digital form. Inadequate information management and poor interoperability between design, engineering, and control systems can consume up to 5% of the capital expenditures budget on a major project. After start-up, the plant operator will suffer from a further performance penalty, as problems resulting from poor data handover are typically never resolved. Because reliable, current data are a valuable basis for informed decision making, the availability of data is also essential for many aspects of the work process. The connectivity and interoperability of plant information management systems is key for efficient collaboration both within the organization and across the business value chain. Vendors of engineering and automation systems have recently presented various solutions for data consistency and integration. For example, the integrated engineering and operation approach from Siemens allows all disciplines and departments involved in the engineering and operating phases to always access the

Siemens Digital Enterprise Platform

PAPERFIRST MAG SUMMER 2019

INDUSTRY 4.0

Siemens SIPAPER solutions for the Fibre Industry

same data for a given technological object. The seamless data exchange between plant engineering and process automation enabled by an interface between the COMOS engineering modules and the SIMATIC PCS 7 process automation system streamlines the design process and ensures engineering data consistency throughout all phases of the plant lifecycle. Moreover, with COMOS MRO (Maintenance, Repair & Overhaul), all aspects of management, planning, and organization of operation and maintenance, including plant documentation, are carried out within a single system. This means that any changes to the plant due to service and maintenance processes are also immediately reflected in the engineering data. Thus, COMOS provides a consistent environment for all plant lifecycle data as well as offering advanced simulation features such as a 3D environment for operator training. This integrated approach eliminates much of the effort and the risk associated with data silos and data inconsistency.

USE CASE 2: Continuous improvements in plant performance and maintenance Another area that can greatly benefit from datadriven services is process automation. Control loop performance is a relatively low-level aspect of process optimization, but it is vital for process stability and reproducibility. However, a study performed by Control Engineering revealed that in the process industry as a whole, only 50% of control loops of operating plants are optimized. In the fibre industry, the picture is not much different – and often, even worse. In our own

PAPERFIRST MAG SUMMER 2019

assessments, even advanced pulp mills will typically have only 40% of their control loops optimized, with figures for paper mills even lower. In many instances, control loops are set to manual operation, set at initial values for commissioning, and never adapted to operational conditions. As a result, poor control loop performance results in lower overall process control performance, higher consumption of resources, lower process quality, and inefficient and/or unstable processes. Regular inspection and optimization of control loops during operation is crucial from a technical perspective, as the performance of process control systems will decline if the system is not optimized on a regular basis. In most plants, this decline will result in a performance decrease of 50% every six months if no effort is made (source: Instrument Engineers’ Handbook, Volume 3). The current low rate of optimized control loops is even more astonishing considering the availability of solutions that can assist in the assessment and optimization of control loops. As part of its SIPAPER portfolio for the fibre industry, Siemens offers Control Performance Analytics services that use the existing control system to check control loop performance. Control Performance Analytics can be used to automatically detect the state of control loops and to calculate key performance indicators for different control states as well as identify static and sliding friction in servo-valves to optimize maintenance. The result is a hierarchical plant overview – from the high-level management view to details of individual controls – that supports long-term process optimization and fine-tuning and assists this process with suggestions based on performance

INDUSTRY 4.0

analytics, with additional expert reports for critical control loops. Control Performance Analytics is fully automated to provide reliable results at scheduled intervals, delivered via a secure web portal. This approach ensures effective collaboration among the entire team, from the plant manager to the process operator. Control Performance Analytics is provided as a service so that plant operators can select an individual package for a certain time and expand or extend the contract based on the results, to optimize costs; the checks can be performed both before and after start-up to optimize control performance.

USE CASE 3: Real-time performance monitoring for faster, fact-based decision making Data transparency and consistency is not just an issue for engineering and lifecycle information. Today’s highly automated plants often feature multiple levels of IT and automation systems, each with its own database for process, production, and business data. Networking these levels of information that exist in the distributed control system, manufacturing execution system, and enterprise resource management system is the first step to support informed decision making during operation. Additionally, the large volumes of data generated in the process must be managed and translated into meaningful information for the various tasks and organizations in order to effectively support maintenance, production management, and scheduling. A central information and management cockpit, such as provided by XHQ, enables greater production transparency, not only by providing detailed information on processes and products for both management and operation purposes, but also through centralized logging of alarms and events. All operations can be tracked in one system, facilitating compliance with traceability requirements as specified in ISO 9000 and other standards. This easy-to-configure operations intelligence tool can aggregate, relate, and pres-

PAPERFIRST MAG SUMMER 2019

ent operational and business data in real time to improve enterprise performance and is scalable from a machine to a mill to a corporate-wide solution to meet individual requirements.

MASTERING THE MATURITY CHALLENGE These use cases show that solutions to several production and performance challenges in the fibre industry are readily available, and the technologies mentioned have already been applied in several projects. However, many companies are still hesitant to make the move toward digitalization – often due to concerns about complexity and feasibility. These concerns are not unfounded, as plants and companies have very different levels of digital maturity depending on their business and installed base. There are modern production lines that are already using Industrie 4.0 principles on a very broad level, employing advanced process control and modeling methods – some even using artificial intelligence tools – to improve process performance. At the same time, there is a strong need to keep existing mills operational and profitable, so one challenge is to incorporate brownfield operations into the digital environment. To facilitate this effort, Siemens has collaborated with Bentley Systems to integrate Bentley’s reality modeling software into Siemens’ process simulation and leverage laserscanned point clouds in modeling the existing context of brownfield industrial environments. Another challenge is to define suitable standards and establish them in the industry. While too many individual systems are widely used in the fibre industry for any to be considered a de facto standard for certain tasks, each vendor often has its own version of a given system. This often results in a loss of information despite the potential for seamless lifecycle integration. To fully exploit the benefits of digitalization, the fibre industry must overcome the information borders between companies and technologies without violating intellectual property rights or produc-

INDUSTRY 4.0

tion, process, and IT security. This effort will also require a rethinking in some business areas and calls for opportunities for collaboration. What is most important in any digitalization project is to look beyond the initial investment and recognize the lifecycle impact of the technologies that are to be introduced. For this purpose, companies should define their current state and the targets they wish to achieve through digitalization. As a first step, plant operators need to look at whether they can provide connectivity of data throughout the plant and what systems need to be upgraded. For example, critical motors will likely already have a monitoring system in place, while motors considered not critical to process performance may lack such a system. Next is the task of creating an integrated data model for plants. While today most plant data are readily available in digital form at each point of the plant lifecycle, data integration across the lifecycle might require additional effort. This step also involves assessing how to bring existing equipment with incomplete or outdated plant data into the digital environment. As mentioned above, advanced tools for data integration and context capture can support plant owners in this phase of digitalization. Once all the data are integrated into a coherent information architecture, companies can implement tools for decision support and modeling. Because these tools will now have actual, current data as a basis for dashboards and recommendations, it will be much easier to make informed decisions that measure the impact of actions by the desired outcome (for example, by demonstrating what production output can be achieved at what cost). A well-defined digitalization strategy can help address the concerns of production, management, and investors by demonstrating how companies can master the challenges of a changing fibre market that asks for higher production flexibility and efficiency. And the potential of digitalization for process optimization is huge.

Siemens MindSphere

LOOKING AT THE NEXT LEVEL: CLOUD TECHNOLOGIES FOR THE FIBRE INDUSTRY As the world becomes increasingly connected, digitalization is a key differentiator that will enable companies to remain competitive. Cloud technologies promise lower costs, improved production quality, greater flexibility and efficiency, shorter response times to customer requests and market demands, and new and innovative business opportunities. By collecting real-time process data in a cloud-based solution for data analytics, companies can use advanced or predictive analytics to further improve maintenance and production activities, energy data management, and resource optimization. MindSphere, the cloud-based open Internet of Things (IoT) operating system from Siemens, can provide such an information ecosystem with data analytics and connectivity capabilities, tools for developers, and applications and services. It helps evaluate and use data to gain process insights and drive the performance and optimization of assets for maximum uptime. In addition, MindSphere offers users the ability to immediately develop, deploy, and run digital services and create their own applications or even new business models. As an open cloud-based platform for industrial applications, MindSphere supports plug-and-play connectivity using open standards. The system can be deployed as a public,

PAPERFIRST MAG SUMMER 2019

INDUSTRY 4.0

private, or on-premise cloud solution and provides an open interface for the development of customer-specific apps. With these MindApps â&#x20AC;&#x201C; whether from Siemens or third parties â&#x20AC;&#x201C; plant operators can implement a vast array of data analytics capabilities to improve asset transparency and gain analytical insights.

USE CASE 4: Smart motor concepts as an example of digitally enhanced electrification and automation One area in which cloud-based services are already being applied in the fibre industry is so-called smart motor concepts. Motors that are connected to MindSphere can be fully integrated into the digital environment. The status data of motors can be reliably captured, transferred, saved, and analyzed, increasing the productivity of the entire system. By monitoring parameters such as vibrations, cooling status, and load, plan owners can reduce downtime, increase fleet and plant availability, and improve reliability. Root-cause analysis can help identify problems and support maintenance by recommending effective actions. Additionally, the digital information improves commissioning and start-up by providing guidance to engineers and operators.

BEYOND TODAYâ&#x20AC;&#x2122;S BUSINESS: CREATING A DIGITAL FIBRE ECOSYSTEM While the business ecosystem is being re-formed and reshaped by digitalization, industry players will have the opportunity to question and reorganize their value chains. According to CEPI, this can lead to entirely new forms of cooperation between industries, companies, and customers, and open up new potential synergies. The age of digitalization not only enables new and significantly more variable production processes, it also allows for complex simulations and remote maintenance services that go far beyond the solutions already described in this paper. This is why Siemens has decided to launch an initiative together with major players in the fibre industry to create a Digital Fibre Ecosystem, inviting companies to produce software, applications, and services for the digitalizing forest products industry. Siemens is supporting this initiative by providing technology solutions such as the COMOS plant lifecycle data platform and the MindSphere open IoT operating system, as well as specific packages for process control and data analytics. In addition, Siemens can act as an international sales channel for the digital solutions and services developed as part of the effort. With this initiative, Siemens aims to foster innovation in the digital fibre industry as well as create a successful industry ecosystem in which new ideas can be developed and commercialized in an agile manner.

Digital Fibre Ecosystem

04 48 PAPERFIRST MAG SUMMER 2019

Mill Stories

Automated roll warehouse: the case of Stora Enso Imatra in Finland In the summer of 2016, Stora Enso announced plans to invest in their Imatra mills to increase their production capacity for extrusion-coated products, and to further enhance its position as a leading global supplier of premium paperboards. Alongside the new polyethylene (PE) coating plant, Stora Enso also made the decision to invest in a new automated roll warehouse.

NEED FOR SIMPLER INTERNAL LOGISTICS

efore this investment decision was made, Stora Enso’s Imatra Mills had needed to utilize outside warehouses in the region to store their intermediate roll buffer due to space limitations in the warehouse at the mills, which used the traditional clamp truck warehouse concept. This meant multiple clamp truck handling phases between the base paper production, PE coating processes and shipping. This decentralized process inventory was challenging to control, very labor-intensive to manage, and led to quality costs. All PE-coated rolls had to be fully wrapped twice: once in order to tolerate the maneuvering by clamp trucks in the intermediate storage process, and again after the PE coating before being shipped to the customer. With the automated roll warehouse, the target was to integrate a sufficient intermediate roll buffer in the mill area between the production, converting and shipping processes, and to cut costs by simplifying and automating the internal logistics. After completing lengthy feasibility studies comparing various alternatives, Pesmel’s TransRoll deep channel rack storage concept proved to be the most cost-effective solution.

ALTERNATIVE AUTOMATED WAREHOUSE CONCEPTS In recent decades, in the paper industry, “automated warehouse” has meant the overhead crane concept, where rather than using clamp trucks, overhead cranes pile rolls on the floor into vertical stacks using a vacuum gripper (for unwrapped rolls) or a mechanical gripper (for wrapped rolls). The best-known suppliers for this warehouse concept are crane manufacturers like Konecranes and Demag. Eliminating the clamp trucks from the warehouse means that the storage density can be improved by 30–40%, as driving aisles are not needed. Piles of rolls stacked by cranes are normally limited to less than ten times the roll diameter to keep the stacks stable – e.g. a stack of 1.5 m diameter rolls has a maximum height of 15 m. This is double the height that is possible in a clamp truck-operated warehouse, but the roll handling and sorting capabilities prove to be a bottleneck for the overhead crane concept. With vacuum grippers, cranes can handle only one roll at a time, and with mechanical grippers, handling multiple rolls is very limited due to strict tolerance demands for roll diameter differences. This means that the overhead crane concept requires quite extensive conveyor systems to serve the cranes, especially in cases where the handling capacity requirements mean more than two cranes are needed. This makes integrating these systems with mill layouts difficult and expensive.

PAPERFIRST MAG Summer 2019

Mill Stories

Automated storage facilities using racks, widely used in other industries, had been thought unsuitable and expensive for paper mill usage due to the odd pallet storage adaptations for paper rolls. But deep channel technology has been developed specifically for paper rolls, tremendously expanding the capabilities of the rack storage concept. With deep channel technology, the rolls are stored horizontally in V-shaped supporting channels on both sides of the center aisle where the stacker cranes move. This kind of rack structure has an unlimited number of possible connections from the long side of the storage system, as any channel on any level can be used as in- or out-take lines for the warehouse, as needed. This enables simpler layouts with fewer conveyors than with overhead crane concepts. For Stora Enso, where this new central distribution buffer required eight connection points, the TransRoll rack concept was much simpler and less space-consuming to implement than any alternative method. An additional benefit is that it can be easily expanded in the future, if needed – the rack just needs to be extended, which can be done without disturbing the ongoing production process. Project manager Tommi Myller, from Stora Enso Imatra mills says, “This new automated roll warehouse simplified our internal logistics a lot. Now we only need one operator to control the process of buffering and sorting the production between paper machines, PE coating and shipping. This is a huge advantage over the previous decentralized operations, with multiple clamp truck drivers and supervisors to manage and handle the intermediate inventory.”

The storage facility has one central aisle with two stacker cranes, giving the system redundancy. One stacker crane can be moved to the servicing area, while the other one continues to serve the production. Two pre-sorter cars were added to new PE plant to handle the intake and sorting of finished PE-coated rolls, and to do the automated truck trailer loading. These four units for moving rolls are the only powered elements in this system, besides the connecting conveyors. The rack itself is a static structure that supports the cladding (walls and roof). The rolls lie cradled on their sides in V-shaped channels. They are not pushed or dragged; they are lifted and lowered directly from the channels or the conveyors by the stacker crane’s satellite pick-up cradle, which can handle mixed sets of rolls, of different dimensions, and wrapped, unwrapped or partially wrapped, all at the same time.

TOTAL COST OF OWNERSHIP DEFINES THE SELECTED CONCEPT When comparing different type of automated warehouse concepts, it is very important to analyze the total cost of ownership of each alternative. This means the CapEx and OpEx costs related to the warehouse concept itself, but also the costs of the systems and structures needed to integrate it into the mill operations. This means the ability to integrate the automated warehouse into the center of the production process with a minimal number of conveyors, and the civil engineering to feed the roll flow in and then to distribute it for converting and shipping. Here, system suppliers like Pesmel, who can offer the full scope, including conveyor system and all warehouse concepts, have the upper hand over part suppliers who concentrate only on their own core area. This advantage was obvious in the Stora Enso Imatra case, where the automated warehouse was integrated with the production operations around it by eight automated connections at different floor levels, in a very limited amount of space.

KEY ELEMENTS OF TRANSROLL This automated warehouse in Imatra operates both as an intermediate buffer for rolls going to PE extrusion coating, and also as a shipping roll buffer for finished customer rolls. The volume was defined to be around 30,000 tonnes, with a wide range of roll dimensions and weights. PAPERFIRST MAG Summer 2019

Mill Stories 1

Invaluable vibration analysis at Metsä Group’s bioproduct mill by Nigel Farrand - Photos: Metsä Group

Valmet’s Industrial Internet capabilities together with the remote diagnostic feature of Valmet DNA Machine Monitoring enable efficient predictive maintenance at Metsä Group’s bioproduct mill in Äänekoski, Finland.

etsä Group started up the world’s first next-generation bioproduct mill in Äänekoski, Finland, in August 2017. It’s called a bioproduct mill since it extends the product portfolio with new bioproducts, generates excess bioenergy, and uses no fossil fuels. Producing 1.3 million tonnes of pulp per year – mainly for export to Europe and Asia – the mill’s main products are softwood and birch pulp for board, tissue and printing paper, and specialty products. Valmet’s delivery to the mill included the recovery boiler, pulp drying line, gasification plant, lime kiln, sulfuric acid plant, and mill-wide Valmet DNA automation system for the whole bioproduct mill, including machine and drive controls for the drying machine.

VALMET DNA MACHINE MONITORING – ALWAYS A STEP AHEAD Operating as a fully integrated application in the automation platform, Valmet DNA Machine Monitoring measures and analyzes the mechanical condition and performance of machines based on vibration measurements and other machine parameters from the DNA process control system. DNA Machine Monitoring provides protection and diagnostics tools for critical machinery, as well as condition monitoring and analysis tools for predictive maintenance purposes. For Juha Anttonen, Mill Reliability Engineer, machine monitoring is an essential part of the mill’s operations: “It helps on so many levels: good condition monitoring provides the means to concentrate limited maintenance resources in the right place. If we have a bearing problem for instance, we have time to plan, order spare parts if necessary, and avoid unplanned downtime.” With a six-person team of mechanical fitters covering 14 different areas in the mill, time for in-depth condition monitoring is limited and, according to Anttonen: “With over 1,500 measuring points in the

PAPERFIRST MAG Summer 2019

Mill Stories 2

1. Metsä Group’s bioproduct mill in Äänekoski, Finland, utilizes Valmet’s DNA automation system for the whole mill. 2. Juha Anttonen, Mill Reliability Engineer, demonstrates Valmet’s handheld Maintenance Pad. 3. One of the more than 1,500 sensors connected to the Valmet DNA Machine Monitoring system.

system, it was a smart decision to buy remote diagnostic support from Valmet. With machine condition monitoring, we don’t wait for preset alarm levels to be exceeded before we take action. To gain the fullest advantage from the system, trends of developing abnormal conditions also need to be analyzed and followed.”

VIBRATION ANALYSIS SERVICE VIA SECURE REMOTE CONNECTION Analysis and monitoring abnormal trends is the responsibility of Vesa Onnela, a Valmet condition monitoring specialist in Valmet’s Performance Center. Using a secure remote connection to the mill system and free from the day-to-day maintenance activities at the mill, Onnela can concentrate on examining trends or other changes in the vibration spectra measured by the system. “I send a report every Friday to the mill with a condensed view of the machine conditions and expert analysis of the vibration signals. Covering about 600 pumps, motors, fans, compressors plus the lime kiln, pulp dryer and turbine, various advanced tools in our system help me identify, locate and analyze problems in a targeted fashion. Serious

problems that I think need immediate attention can be handled easily by phone,” says Onnela. The weekly report gives Anttonen a full picture of developing problems and scheduled maintenance can be planned well in advance, allowing the mill personnel more time for causal analysis.

VERSATILE CONNECTIVITY INCLUDING SAP One target with Valmet DNA was to incorporate process controls, machine condition monitoring and field device management into one system to see the interactions, for instance, what changes occur in vibrations when production parameters change. Operators are immediately alerted to problems and can quickly take corrective action. An additional feature of the system delivery is the Valmet Maintenance Pad, a fully functional industrial tablet computer with Valmet Machine Analyzer software that includes route planning, route and off-route measurements, as well as efficient tools for vibration analysis. In addition to the 1,500 continuously monitored vibration points, there are 10,000 offline points. The maintenance pad is used for almost 6,000 routebased measurements, with historical data available for instant analysis during the route. “This was another reason to buy Valmet,” says Anttonen. “The Maintenance Pad interfaces directly with the online machine monitoring, giving us direct access to the SAP maintenance system as well as the 50,000 data points connected to the process control system. As far as I am aware, this is not possible with any other handheld system.” PAPERFIRST MAG Summer 2019

Mill Stories 4

SIMPLIFIED CASE EXAMPLE FROM VESA ONNELA’S WEEKLY REPORT

“Analysis and monitoring abnormal trends can be done remotely utilizing Valmet’s Industrial Internet capabilities.”

SYSTEM WAS PERFORMING BEFORE DAY ONE! Before the mill even started up, a potential risk was averted during a pressure test of the recovery boiler. Problems with the main feedwater pump were observed at Valmet’s Tampere factory, where part of the automation system was still waiting for delivery after the factory acceptance tests. “Luckily, the process interface input/output cards in the mill were connected and Valmet personnel 150 kilometers away quickly informed us by phone that we had a problem. I can’t think of another automation system that could have warned us in that kind of situation,” says Anttonen. “Valmet’s machine monitoring and remote analysis service has proved invaluable during the startup phase of the mill,” he continues, “like identifying problems with new equipment before warranties expire, or pinpointing lubrication problems, for example. In a modern mill like this, everything runs at full capacity, close to maximum loads, so continuous condition monitoring is a must.” Valmet’s remote diagnostic support has identified about 200 potential machine problems in eight months since mill startup, not a surprise for Juha Anttonen. “With a new mill, new equipment and so many different suppliers involved during installation, it is to be expected. Following a typical bell curve, reported events will decrease over the next few years until various equipment lifetimes are reached. What has been exceptional is that we have not suffered production losses or downtime due to machine vibration or gearbox faults since startup.”

PAPERFIRST MAG Summer 2019

4. Air compressor, 630 kW motor, constant speed 50 Hz. 5. Sufficient warning was provided for the planned replacement of the bearing, which was damaged by stray current. 6. Big relative change (67%) identified by automatic report. 7. F inding is checked with analysis tool that indicates developing bearing failure. 8. Detailed analysis by Onnela points to a damaged outer race.

Mill Stories 1

Small steps to big improvements by Andritz AG

The Holmen Group’s Braviken Paper Mill, situated in eastern Sweden, has always prided itself on being at the top of its game when it comes to production efficiency and quality of final product. When it needed to further enhance its TMP’s capacity and efficiency – but crucially keep costs to a minimum – ANDRITZ was at hand to provide a tailor-made solution.

walk through the entrance to the Braviken Paper Mill tells one that the paper machines at this mill were once thoroughbreds in the world of newsprint production – the walls here are adorned with congratulatory world recordbreaking plaques heralding a different time in the 1970s and 80s when newsprint was a dominating force in global papermaking. Fast forward into the 21st century and the world of paper production is a completely different one; graphic paper demand has declined dramatically, resulting in a highly competitive business environment with even the smallest production efficiency changes making a difference. Fredrik Bragsjö, TMP Manager at Braviken says, “Our whole business landscape has changed over the years. At one time we were sending newsprint all over Europe, and even further afield across the world. “Now we are much more focused on producing high-quality, wood-containing SC papers for large volume catalogues and long run mass produced magazine titles, such as the still-popular weekly TV guides. We also produce book papers here at Braviken.”

A MIXTURE OF OLD AND NEW The Braviken Paper Mill, which first began producing in 1977, could be described as a seasoned player in the modern history of papermaking, having been through the ups and downs of market demand trends in the industry. The mill has always been quick to adapt to these changing times, which means keeping a close eye on all the equipment being run, old and new, and making sure maximum efficiencies are being obtained. The TMP plant at the mill is very much a mixture of old and new equipment, and the old TMP lines were pioneers in TMP pulp for newsprint paper. In fact, the occasion of its startup was something of a national event at the time, with the King of Sweden symbolically pushing the big red start-up button. “We have always had a mindset of continuously improving existing equipment at the mill,” says Olle Lindeberg, Production Engineer, Braviken. “And it’s not always about the glamorous picture of installing all things big, shiny, and new. At this time of a highly competitive environment, often you have to roll up your sleeves and deal with the older equipment, make it better, take smaller but effective steps, gradually eliminating the bottlenecks. ”The latest in the line of many small-step improvements at the mill was the rebuild of its “BR1” reject refiner. “We wanted to improve the quality of the pulp, increase tensile strength, and reduce shives with the aim of making the pulp more suitable for a smooth surface on the paper we produce. And of course, look for ways to reduce energy,” says Bragsjö. Erik Muggerud, Senior Process Specialist, ANDRITZ, adds, “The mill also wanted an increased

PAPERFIRST MAG Summer 2019

Mill Stories 2

1. Left to right: Fredrik Bragsjö, TMP Manager, Braviken; Olle Lindeberg, Production Engineer, Braviken; and Erik Muggerud, Senior Process Specialist, ANDRITZ 2. T he BR1 reject refiner needed a complete tailor-made solution to ease plugging 3. Bragsjö (l) and Muggerud discuss production issues in Braviken’s TMP control room 4. Holmen’s local office in Norrköping

capacity and simplification of its BR1 reject refiner. The main goal was to create a barrier (plug) for steam as close as possible to the refiner to be able to increase the production rate, at the same time as reducing energy usage.”

A TAILOR-MADE SOLUTION Due to the many rebuilds over the years, a simplification between the reject screw press and the refiner meant taking out some of the old equipment, but also reusing as much as possible of the existing equipment. A side entry plug feeder, chute, and level conveyor were then installed as well as a new ribbon feeder housing. The complexity of the project and space constraints in the refiner area meant that it was not possible to use standard equipment and the ANDRITZ team had to innovate with a tailor-made engineered solution. The first customer contact for the project was in 2016, with the contract signed in April 2017. Removal and erection work started in September 2017 with start-up taking place just five days later. “ANDRITZ experts came up with

the perfect solution, mostly due to the intense knowledge they have both of TMP and of our plant at Braviken,” says Bragsjö. “It would have been easy to have just taken out the old and replaced with new equipment, but cost constraints did not allow this, and it means we can now spend our valuable resources on solving the next bottleneck.” Crucially, and one of the bonuses of moving the plug as close as possible to the refiner, safety at the TMP plant has been greatly improved. Muggerud says, “The reject pulp will not have to cope with the backflow of steam that can plug the chute down to the refiner feed. There is always a danger to operators when plugged pulp needs to be removed from the chute; this makes a big difference to safety at the mill.” Has the rebuild of the BR1 reject refiner achieved the results the mill was looking for? “I would say a definite ‘yes’, says Lindeberg. “We have increased capacity and have better quality pulp and a safer working environment, but, added to that, the renewed BR1 comes with much greater flexibility, meaning we can adapt the refiner for making pulp for SC paper and then change it again when making book paper.” PAPERFIRST MAG Summer 2019

Mill Stories 1

When improving fibre strength properties leads to higher capacity

1. The new Krima disperser is used for treatment of wet-strength broke and storage pulp. 2. When the stored pulp is reintroduced into the production it is first processed through the disperser, where the fibers are treated for increased strength properties.

by Cellwood

At Metsä Tissue in Katrinefors, Sweden, de-inked pulp from recycled waste paper is used in the production of tissue paper. In early 2017 the line was upgraded with a Krima disperser in a new type of application.

WET-STRENGTH BROKE AND STORED PULP DISPERSED IN NEW APPLICATION

he disperser treats broke from the tissue machine in order to strengthen fiber. This gives a stronger paper quality which increases the uptime of the plant. During dispersion, flakes in the pulp are disintegrated in an effective way, which enables recycling of wet-strength broke without the risk of web breaks. The same disperser is also used to loosen fiber bundles in stored surplus pulp from the DIP line. In both cases the dispersion leads to increased fiber strength properties and a stronger paper.

DISPERSION OF BROKE Broke is generated during web breaks in the paper machine or from finished paper that is discarded. It is normally sent to a pulper for dissolving and then mixed in with other pulp to be reused in the tissue machine. ”The problem with reusing broke is when it comes from wet-strength material”, says Mikael Käll, who works as a development engineer at Katrinefors paper mill. ”Such material is difficult to dissolve properly in the pulper, which means flakes remain in the pulp. When that pulp reaches the paper machine there is an increased risk of web breaks.” The new installation prevents the problem with flakes. After the broke pulper, a disperser has been installed for additional disintegration of the pulp. The fibers are treated for increased strength properties at the same time as flakes and fiber bundles disappear. ”Dispersion is the only technology that leads to strengthened fiber properties”, Mikael explains. ”Stronger paper in the paper machine means a decreased risk of stand-stills. More uptime means a higher capacity. And then of course we also get a better end product.”

BUFFER OF SURPLUS PULP The new installation is part of a flexible concept that also takes care of other problems. The same disperser is used for treatment of stored surplus pulp.

PAPERFIRST MAG Summer 2019

Mill Stories 3. Mårten Karlberg, Cellwood, together with Peter Colliander and Mikael Käll, Metsä Tissue.

Metsä Tissue, Katrinefors The paper mill in Katrinefors has two paper machines, six conversion lines, and a deinking plant for handling of recycled paper. The mill produces hygiene paper and paper rolls for the industry. The production is 75,000 tonnes per year. ”We have a process where we keep producing pulp, also when the tissue machine stands still”, says Peter Colliander, who works as a production engineer. ”The surplus pulp is diverted from the main line. Then it is dewatered in a screw press and stored as a buffer. The pulp is kept in storage for up to eight days, and is redirected into the main line when there is a shortage of other pulp. However, after the processing through the screw press, fiber bundles appear in the pulp. Also, the strength properties of the fibers decrease after a few days in storage. When such pulp is reintroduced into the production, there is a risk of weakened paper and web breaks in the machine. ”This is a problem that we have looked into on earlier occasions”, Mikael says. ”At that time we were considering a deflaker to loosen up the stored pulp. But as our required capacity is 200 tonnes per day, such a setup would have required three separate deflakers in parallel. Therefore, a disperser was a better choice – it meant we could handle the full capacity in one single machine. With a disperser we can also profit from all advantages with strengthened fiber.” ”The new disperser is very valuable for the production”, Peter says. ”With increased fiber strength we can feed the paper machine with hundred percent storage pulp, without risk of web break.” ”The flexible concept is very useful. The combined functionality takes care of both the previous problems with wet-strength broke and storage pulp”, Mikael adds.

HOT DISPERSING SYSTEM The new disperser is not the first Cellwood machine in Katrinefors. Since 1996 a central part of the production has been based on a Krima Hot Dispersing System. That is a complete system with dewatering, steam heating and dispersion, which transforms incoming waste paper to

PAPERFIRST MAG Summer 2019

pulp, free from contaminants and with strengthened fiber. Dispersion is an environmentally friendly and economical technology for treatment of recycled paper. The mechanical process disintegrates contaminants in the pulp to invisible size, decreasing the need of bleaching chemicals. With high temperatures of up to 120 °C (248 °F) inks and tacky contaminants are melted, at the same time as bacteria are killed. For the disperser there is a variety of different dispersion discs to choose from, to achieve the optimal treatment effect on each specific paper type. The disc gap can be changed online with an accuracy of 0,01 millimeter. The optimal configurations are investigated in the beginning of the project through a trial run at Cellwood’s Research & Technology Center, RTC. There, a complete set of machinery is installed, together with a laboratory for analysis of the results from different machine settings.

DEVELOPMENT PROJECTS The project with the new disperser installation is not the first time Katrinefors paper mill pilots a new concept from Cellwood. In the mid-nineties the mill installed the first prototype of Cellwood’s screw press model KSR, which now has become a well-proven standard in applications all around the world. ”We can see that numerous upgrades have been made on the new disperser, compared to the one we’ve operated since the nineties”, Peter says. ”The control panel is easier to maneuver and service is more accessible. It is a user-friendly feature that the disperser is installed on a track and automatically can be moved backwards when it needs to be opened for dispersion disc replacement.” ”The new disperser facilitates the production here in the mill. It is a successful installation that increases our uptime and capacity”, Mikael concludes.

Mill Stories 1

Fibre Morphology, Recycled Fibres & Paper Making

ulp fibres are the building blocks for paper production. The knowledge of their morphology is essential for the comprehension of the variability of materials and processes Studying the morphology allows to determine objective specifications for customers and suppliers, to keep quality within those specifications at containedproduction costs, thus increasing overall profitability, and ensuring corporate sustainability. For decades the morphological analysis of pulp fibres, visually carried out with microscopes, was restricted to advanced research and development, far from the reality of the operation of the paper and board factories. Fibre morphology analysers based on digital image analysis first appeared about 25 years ago, changing this scenario and providing complete morphological characterisations of fibrous populations which could be obtained in a matter of minutes with high accuracy, repeatability and reproducibility. So, not by chance, fibre morphology analysis made its way into process and quality control, gaining gradually in significance for the operation of pulp and paper mills, becoming a strategic tool for keeping quality and costs within the determined targets. The efforts of the scientific and environmental communities to show the consequences of an unlimited consumer society over our planet made way for an unprecedented awareness of of each human beingâ&#x20AC;&#x2122;s individual responsibility towards the environment and the future generations. Consumers have been increasing their demands for recycled products, with minimal environmental impact and smallest carbon footprint. Paper and board industries noticed this trend and embraced the use of recycled fibres, a smart move which settled the position of recycled fibres as the major source of raw material for paper and board production. The recovery of waste paper has been increasing continuously from 35% to 70% between 1990 and 2015 and is getting close to the practical maximum of 80% Approximately 20% of fibres canâ&#x20AC;&#x2122;t be returned to the paper production system either for sanitary reasons, such as greasy food boxes and bathroom tissue, or for non-disposable uses, such as books, documents, insulation and pet bedding. However every time paper is recycled, its fibres suffer a liitle more damage, a fact that ultimately will make fibres become too weak and short to make quality paper. Sustainably managed forests provide the necessary new pulp fibres required to make higher grade paper products and to supply the percentage of fibres that cannot be recovered as well as the global increasing consumption of paper products, nowadays replacing a lot of plastic products. The share of recycled fibres in paper and board production increased from 35% to 55% worldwide between 1990 and 2015, becoming so the major source of fibres. Nonetheless consumers of re-

PAPERFIRST MAG Summer 2019

Mill Stories 1. Blend of softwood and hardwood pulp fibers under morphological analysis

cycled fibres face the challenge of dealing with constant and unpredictable changes into the quality of the incoming fibres in the form of bales of waste paper. Fibre morphology provides these consumers an accurate tool for an objective, quick and reliable assessment of the quality of the incoming fibres as well as of the quality of these fibres while passing through the several different pulp handling machinery such as pulpers, dispergers, flotation cells, washers, classifiers, fractionators, screens and refiners. Modern fibre morphology analysers based on digital image analysis have replaced with many advantages classical testing equipment such as fibre mechanical classifiers based on wire screens and freeness testers. These classical testing methods, undoubtedly important at their time, have been increasingly becoming unable to efficiently characterize the pulp fibres.

The insufficient information about the pulp fibres results in undetected changes of fibre morphology, which end up presenting production issues, whereas physical properties of papers and boards are commonly impacted negatively resulting into breaks into the paper machine and/or papers and boards below strength requirements. A modern fibre morphology analyser shall bring to your mill: ■ fast, simple and user friendly test method ■a ccurate characterisation of the entire fibrous population – fibres, fines, fibrillation, vessels, shives ■c ompatibility with DCS - Distributed Control Systems – for instantaneous data transfer ■ r epeatable and reproducible data that provides

PAPERFIRST MAG Summer 2019

Mill Stories operators and/or mill process control system the information for confident decisions and quick responses Besides these key features it shall also have an option for automatic on-line measurements including rugged pulp sampling technology for high frequency automatic testing without human intervention, providing an analytical understanding of operations and a significant tool to make decisions on saving energy cost, process time, manpower and improving product quality, profitability and customer satisfaction.

CASE STUDY A small kraft paper mill running exclusively on recycled fibres faced regularly quality issues due to the wide variety of recycled fibre sources and the changes in the quality of the incoming fibres in the form of bales of waste paper. Fibre morphology was introduced as a laboratory routine test for the verification of the quality of the fibres upon the arrival of the bales of waste paper. Representative samples are collected, hydrated, disintegrated and tested in a fibre analyser in the form of a low consistency pulp suspension. In about five minutes accurate results for fibre length, fibrillation, broken fibres, fines and blend ratio ( softwood x hardwood ) are available for the user to sort the waste paper bale and organize the blend of bales required for the determined paper production. Production issues such as paper breaks and quality issues such as paper with low strength were strongly reduced while saving materials costs, energy costs, process time and manpower, ensuring profitability and customer satisfaction. Test results were also used to improve the purchase of bales of waste paper, whereas : ■c ertain grades of bales were dropped due to typical low quality fibres ■s uppliers providing bales according to the agreed specifications were given a bonus and classified as preferred & reliable suppliers for bales of waste paper ■s uppliers providing bales with quality below the agreed specifications were given a penalty and classified as non-preferred and unreliable suppliers for bales of waste paper

PAPERFIRST MAG Summer 2019

Last but not least – test results were also used to check the actual performance of pulp handling machinery such as primary pulper, flotation cell, washer, fractionator, screen and refiner. The return on investment was achieved within months along with an overall increase in the satisfaction of all personnel involved - production, quality control, purchasing, management and customers.

TECHNICAL INSIGHT

Customised training courses for the paper industry at Voith PaperSchool

eveloping skills and knowledge to help paper mills operators keep up-to-date with the latest techniques and processes is definitely a factor of competitiveness. The online Voith PaperSchool can just do that. The school offers comprehensive training courses covering all aspects of the paper manufacturing process. In addition to a wide range of existing training courses, participants can also access personalized training content â&#x20AC;&#x201C; using the latest methods like computer-assisted training or virtual reality and with hands-on training on the actual machines and equipment. This allows them to achieve a sustained improvement in their skills and know-how. Whether employees from machine operation, maintenance or management, paper producers are constantly faced with the challenge of instructing and training new personnel and further developing existing employees. This is necessary to ensure safe and efficient plant operation across the entire paper manufacturing process. However, the resources and expertise needed to provide this kind of training are often lacking. As a full-line supplier with a broad range of services, Voith offers targeted training programs under-

PAPERFIRST MAG Summer 2019

pinned by the latest best practice experience through its well-established PaperSchool under the Servolution concept. In doing so, Voith can draw on its long-standing experience and expertise in this area; the long-established company conducted its first training for customers as far back as 1910.

CUSTOMER-SPECIFIC AND STANDARDIZED TRAINING MODULES The training courses are available at the Voith Training Centers around the world, on site at customerâ&#x20AC;&#x2122;s paper mill, as well as online. Participants can develop specialized knowledge under the guidance of Voith experts. The training is tailored to all needs and imparts basic, intermediate and advanced knowledge. The exact training plan can be put together according to specific personal requirements â&#x20AC;&#x201C; a common definition and prioritization of training content and methods take place. The training courses cover various areas of paper production and stock preparation, maintenance such as example auxiliary systems, maintenance strategies and methodologies like communication, analysis and structured problem-solving.

TECHNICAL INSIGHT

The Voith PaperSchool employs effective training methods and offers a tailored transfer of knowledge and skills for different needs.

EFFECTIVE TRAINING METHODS Different methods are used to impart knowledge and skills: classroom, hands-on, e-learning and virtual reality training. In classroom training, an expert provides the trainees with general knowledge about paper production and answers questions. In the case of hands-on training, trainees learn certain tasks in a controlled classroom setting under instruction. The training can be extended to include exposure to real-life conditions on the machines. The e-learning method, on the other hand, allows participants to learn according to their own timetable, regardless of location â&#x20AC;&#x201C; and therefore is available 24/7. Learning outcomes is ensured by means of continuous testing and repetitions, and a support team is available 24/7 to answer any questions the trainee may have.

INNOVATIVE VIRTUAL REALITY TRAINING One new kind of method is virtual reality training, an interactive training in a computer-generated environment. For training purposes, this cutting-edge technology makes it possible to simulate a virtual exploration of an entire paper machine or the behavior in a hazardous situation without actually endangering the people taking part. In addition, virtual reality training can be used to allow trainees to learn and practice various assembly operations, so they can subsequently perform proper maintenance on the actual machine.

PAPERFIRST MAG Summer 2019

TECHNICAL INSIGHT

New generation of headboxes: Innovation & Performance

S4 ALLIMAND Hydraulic Headbox

Efficiency and Compacity

LLIMAND Group is a leader in the paper industry for Research & Development and headbox design in the web-forming area. Its worldwide renowned activities in speciality papers and nonwoven productions have been a constant source of technical challenge with regards to paper formation and evenness for a very wide range of grades and fibre uses. The large number of headboxes installed (over 300) in all fields is self-explanatory: productions of speciality papers (highly refined, porous, high opacity, fine papers), graphic papers (with high filler content), containerboard, coated board, pulp and nonwovens. Benefiting from this extensive knowledge, Allimand has developed two new generations of headboxes: The S4 Hydraulic Headbox and the Air Cushion E-Box with or without basis weight CD profile dilution control. INTRODUCING THE S4 ALLIMAND HYDRAULIC HEADBOX… The design of the new S4 Allimand Hydraulic Headbox has been conceived in order to meet the needs of the most technically demanding, high quality papers. Along with these papermaking features, the S4 headbox responds to the daily needs of end user operators in terms of easy cleaning, easy maintenance and easy access to the critical parts of the headbox. On the papermaking side, the S4 Hydraulic Headbox ensures a perfect evenness of the paper quality thanks to a more accurate stock distribution, a re-designed tube bank and a new lip geometry. The new technology used for basis weight profile control is the final element lea-

PAPERFIRST MAG Summer 2019

ding to outstanding, easy operation and results. The new dilution water injectors allow for the use of a minimized quantity of dilution water for CD basis weight profile, while ensuring a perfect mix of dilution water with stock. The chosen technical solution used for the dilution water system enables always using primary white water for all grades, whatever the ranges of basis weight, refining degree and filler content. The use of primary white water eliminates the risk of clear stripes and provides the great advantage of not having to increase the white water excess. The dilution water injection ensures a very accurate profile control with totally uncoupled effects inbetween the basis weight profiles and the fibre orientation profiles. The new S4 Hydraulic Headbox construction has also been focused on: ■C ompactness for easy installation where available space is limited (existing buildings for instance). ■R obustness for high-speed machines as well as for very low lip openings which require a very accurate CD lip geometry. This has been possible by rethinking the mechanical design of the entire headbox Today, Allimand has references for several grades including container board grades and printing writing grades. All references have fulfilled the targets of the R&D and construction design and have, above all, met the quality expectations of our customers. ...AND THE ALLIMAND AIR-CUSHION E-BOX Allimand Air-Cushion headboxes have always

TECHNICAL INSIGHT

ALLIMAND Air Cushion E-Box

Performance and Versatility been a reference in the papermaking industry for speciality high added-value papers requiring a very high level of quality. These papers are, generally speaking, fine papers (9 – 60 gsm) with high opacity for double-sided printing, with high filler content and with controlled web porosity. Such types of headbox have also been used for other grades produced on middle-speed machines whose formation was a must to get, including but not limited to high basis weights. Allimand has continuously improved the design of its air-Cushion headboxes. The new quality requirements demanded by the market have been Allimand’s guidelines in developing a totally new concept of air-Cushion headbox called Allimand Air Cushion E-Box. The new Allimand Air Cushion E-Box inherits othe Allimand experience and know-how gathered during its long history of papermaking, originating in a very wide range of papermaking applications and paper functionalities. The new challenges defined by our Customers were indeed the results of the paper market evolution, competition and diversification. The R&D efforts deployed by paper producers have led to the development of new products whose lifecycle could be rather short. It has subsequently been an obvious move to research a versatile forming section and, as a consequence, to design a new headbox which would properly suit a very wide range of operating conditions while ensuring a perfect web formation. The main concerns for papermakers using aircushion headbox are as follows: ■ Excellent web formation and operational versatility for a wide portfolio of grades often produced on the same paper machine ■ Improved formation in case of rebuilds ■ Quick access to all the critical parts of the headbox in contact with stock for an easy and efficient internal cleaning of; manifold, intermediary elements in-between the manifold and the headbox inlet, top lip and rectifier roll. ■ Efficient continuous internal cleaning during

PAPERFIRST MAG Summer 2019

operation, ensuring that there are no stock agglomerates which could be stuck on the surfaces of the headbox and which could be released from time-to-time, creating paper defects. ■P reservation of the advantages of the rectifier roll giving an adequate formation for various grades, for various types of fibre, stock blends and stock refining degrees. ■T he highest level of safety during normal line production, cleaning and maintenance. The new Allimand Air Cushion E-Box has been developed according to the above features and has successfully reached all market requirements. In addition to this, the new Allimand Air Cushion E-Box can be fitted with a CD basis weight profile control using primary white water. This system can be applied to all kind of papers even the more demanding ones such as high filler content papers, extremely high and extremely low porosity papers, high opacity papers, highly refined and not refined papers, long fibre based papers and papers for off line impregnation or complexation used in the speciality papers market. Operating in such specific conditions requires an optimized and engineered approach flow and dilution circuit, which is also part of Allimand know-how. For decades, ALLIMAND Group has always had a technical lead and recognition for web formation know-how. Allimand’s know-how was nourished through challenging production needs demanded by quality and market challenged customers. With the developments of the S4 Allimand Hydraulic Headbox and the Allimand Air Cushion EBox, ALLIMAND Group demonstrates its strong commitment to its Customers to always provide advanced processes and technology. It is also the result of its continuous and ambitious R&D program for which ALLIMAND Group invests each year 5 to 10% of its turnover in its portfolio of pilot plants located in Europe and the USA.

TECHNICAL INSIGHT

LoadStar

The new compact BA Systèmes’ AGV with improved autonomy and connectivity

compact and space-saving AGV, LoadStar is designed to handle unitary pallets. It can be integrated easily into the heart of production processes in the most confined environments. Robust, it picks-up and drops-off, via its lifting platform, pallet weighing up to 1 400 Kg on the short side or long side. ■H orizontal transfers are boosted: it handles horizontal transfer missions replacing traditional conveyors thus saving up to 20% of floor space. ■ I t evolves with the needs: the system is easily scalable and greatly increases flexibility. ■O rder picking is optimized: several order picking islands (layer deposit or preparation per

carton) can be reached from several load input/ output sources. Very dynamic, this new AGV solution optimizes preparation cycle times. Thanks to its optimal energy management with Opportunity Charging (system that adapts battery charging cycles according to the use and engagement rate of the AGVs), LoadStar is provided with a lithium-ion battery system. Provided with AGV Manager, a fleet management software suite designed and developed by BA Systèmes, the AGV fleet interfaces directly with the plant management tool.

PAPERFIRST MAG Summer 2019

TECHNICAL INSIGHT

The chemicals delivery systems of the future 1

1. Pigged lines feeding storage tanks

BB France - Cellier Activity has been developing chemicals delivery systems for the pulp, paper and packaging industries for more than 60 years. Its vast experience and expertise extend to other formulation industries such as paint, resins, specialty chemicals as well as lubricants and grease. Development of innovative solutions is in our DNA and is driven by our customers which are under the constant pressure to meet niche markets demands, to increase their productivity, to improve quality and variety, all while maintaining sustainability commitments. This means they need to constantly adapt their processes and optimize every aspects of production to increase efficiency.

PAPERFIRST MAG Summer 2019

In this context Cellier Activity is more a partner than a supplier, understanding the customers targets and offering innovative solutions optimizing all aspects of production including dosing, mixing, transfer, process control and digitalization of their systems. Cellier Activity is located in Aix-Les-Bains, France, and is ABB Center Of Excellence developing innovative processes and equipment for the pulp and paper industry. PERFECTING THE CONTINUOUS PROCESS OF COATING COLOUR PREPARATION Mainly adapted to special papers, monotype coatings or pigmented coatings, the continuous coating color preparation system supplied and

TECHNICAL INSIGHT

optimized by the engineers of Cellier Activity is the perfect reply to the needs of paper manufacturers in terms of production flexibility, reduction of operational costs and effluents. Associated with an online quality control system, this process guarantees with accuracy the required characteristics of coating colors, such as concentration, viscosity, pH and temperature.

A MILL TRULY SUSTAINABLE WITH COATING EFFLUENT CENTRIFUGATION Sustainable technologies are now crucial to growth. Cellier Activity helps to address all aspects of sustainability such as increasing traceability, reducing consumptions and waste. With the aim of reducing the production costs and reusing raw materials, Cellier Activity has developed a continuous treatment system for coating effluents. Based on the centrifugation of the effluents, this technology enables the recovery of high value chemicals (carbonate, latex, etc.) to be reused into the manufacturing process of coated paper. PREVENTING WASTAGE WITH THE PIGGING TECHNOLOGY Considering that paper manufacturing could benefit from this technology in terms of production flexibility as well as reduction of operational costs and effluents, Cellier Activity now enhances its offer of chemicals delivery systems with the pigging technology as a standard for the transfer of liquid raw materials, slurries and coating color over short or long distances. The technology enables improved operation efficiency by a modular and easy layout, automated and safe operations, minimised maintenance and efficient pipe flushing by recovering 100% of the transferred product, avoiding cross-contamination and reducing the quantity of effluents and flushing water. FULLY AUTOMATED STARCH CONVERTING UNITS Cellier Activity has developed a in-line steam heater to cook slurries of starches for wet-end, sizing and coating applications. Using an innovative patented in-line steam heater to obtain an optimal quality by uniform heating, starch

2. Skid starch converting unit

slurries are tailor-made with specific dry matter content and viscosity according to the required paper grade. With a high production capacity and the possibility of several lines working in parallel, the throughput is controlled according to the paper machine requirements. Starch converting units are fully automated and can be supplied as skid units, working as stand-alone equipment or managed by every DCS or production control system. MAXIMISING RELIABILITY AND PREVENTING DOWNTIME Production downtimes have a major impact. With Papcel™ control system, specially developed by Cellier Activity for the pulp and paper industry in order to manage formulation and recipes, the equipment lifetime becomes predictable and proactive maintenance operations can be scheduled. Integrating a CMMS (Computerized Maintenance Management System), Papcel™ enables efficient maintenance activities, by managing maintenance operations (scheduling of work orders, planning of spare parts, service contracts, etc.) and includes technical documentations for a quick access to instruction manuals and easy diagnosis and corrective actions. Consequently, Papcel™ improves plant availability and reduces downtime risks and costs.

PAPERFIRST MAG Summer 2019

TECHNICAL INSIGHT

CHEMICALS DELIVERY SYSTEMS THAT TALK TO YOU As pioneering technology leader in digital solutions, ABB is uniquely positioned to support to support your digital transformation. ABB Ability™ platform extends from device to cloud, enabling a remote monitoring and mill optimisation. Chemicals delivery systems supplied by Cellier Activity can connect to everything for an end-toend process optimisation and with ABB Ability™ Papcel, you can have a greater visibility and traceability. Papcel™ and its graphic module Syncel already collect the production data relative to each coating preparation and provide valuable and precise reports. Results of each individual operation are reported and stored. Data can be retrieved so as to be processed or exported to statistical tools and their analysis enables to optimize the production. Papcel™ provides also powerful analytical tools to identify and analyse the production stages which need productivity improvements. ABB Ability™ Papcel includes digital tools for Process Improvement and Re-

porting and will help customers to control the production efficiency, reduce the production cost (OPEX), take decisions like process modifications in order to improve productivity, quality, performance and also efficiency. It is an application which allows easy access to all real time or archived data, metrics and KPIs issued from production site, according to user profiles, using dashboards or consulting requests. With the digital transformation, manufacturers will not only have to improve their manufacturing processes with digital tools but also will have to collaborate with suppliers and customers to get the most value from data, analytics and advanced technologies. Our expertise in the paper industry, our consultative approach, our engineering capabilities, our chemicals delivery and control systems as well as our extensive portfolio of solutions and services, our automation and digital offerings position us as the perfect partner to help pulp, paper and packaging manufacturers reach their production goals and tackle the challenges of tomorrow.

3. How to get the most value of data?

PAPERFIRST MAG Summer 2019

TECHNICAL INSIGHT

Advanced paper machine audits can generate 30 to 60% energy usage Audits can play a key role in preventative maintenance of your equipment. However, it is important to not only understand the scope of each audit; but to also select a vendor with the expertise and knowledge to help you get the most out of the audit.

outine service and system audits are an important part of keeping any process running smoothly comprehensive, on-site machine audits can help identify inconsistencies in performance, as well as evaluate the potential for failure. In addition to extending the life of a machine, audits can also play a vital role in helping operators identify opportunities to improve both process, energy, and machine efficiency.

CHOOSING THE RIGHT AUDIT There are a number of audits available, ranging from full system to component specific, which can help to evaluate a range of factors; ranging from performance and efficiency evaluations to general troubleshooting. Some of the more common audits include: ■M achine Runnability & Efficiency Audit ■V acuum System Audit

PAPERFIRST MAG Summer 2019

■F orming Section Audit ■P ress Section Audit ■D rying Section Audit ■S heet Moisture Profile Survey ■M achine Hall Ventilation Audit ■T ail Threading Audit

MACHINE RUNNABILITY & EFFICIENCY AUDIT Runnability & Efficiency audits yield an extensive analysis of the papermaking process factors from the wet end to the reel, presenting insight and opportunity into potential gains or savings for the mill. Runnability & Efficiency typically focus on the following areas: ■S hort circulation ■H eadbox and forming section ■P ress section ■D rying section ■C alendar, reel, and winders ■P rofiles ■T ail threading

VACUUM SYSTEM AUDIT A Vacuum System Audit is used to document and benchmark the overall effectiveness of a vacuum system and sheet dewatering process, to highlight problem areas and opportunities to reduce operational costs. If a new vacuum sys-

TECHNICAL INSIGHT 1. Ecopump turbo blower 2. Energy saving triangle 3. Fit for purpose doctoring design 4. Typical vacuum system rebuild scenario

PRESS SECTION AUDIT

tem is needed, new pump specifications can be provided. Included in the Vacuum System Audit Review are items such as, ■S tudy and review of vacuum levels ■S tudy and review of vacuum pumps to identify problem areas ■S tudy of pressure bleed losses to analyze energy consumption and to evaluate if the vacuum levels are too high ■R eview of the dewatering elements (flat boxes, saveall pans, uhle boxes) ■A calculation of energy savings based on EP speed control technology ■P roposal for monitoring the dewatering rate and what savings/speed increase could be possible with a doctoring upgrade ■D esigning of a new pipeline connection diagram including engineering and drawings. ■R OI calculation

FORMING SECTION AUDIT Forming Section Audits analyze and troubleshoot the machines forming section, and specifically seek to optimize energy consumption and cleanliness. A forming section audit would typically consist of: ■D ewatering analysis ■D ry content optimization ■E xhaust air measurements ■C leanliness of the wet end and reasons for any dirt build-ups ■O ptimization of high pressure and low pressure showers ■E dge trimming survey

Press Section Audits analyze a variety of elements, such as doctoring and save-alls, in order to optimize dewatering of the press section. Press section audits normally focus on analyzing: ■O peration of save-alls ■O peration of doctoring equipment ■D ewatering profile measurements ■D ry content optimization ■M achine cleanliness and runnability

DRYING SECTION AUDIT The aim of a Drying Section Audit is to analyze and effectively decrease energy consumption while improving drying capacity and runnability. The audits consist of: ■P ocket humidity and temperature measurements ■C ylinder surface temperature measurements ■S heet temperature measurements ■C alculation of drying parameters ■H ood air system analysis ■M echanical checking eat recovery efficiency measurements ■H

SHEET MOISTURE PROFILE SURVEY A Sheet Moisture Profile Survey aims to improve quality by pinpointing where existing moisture profile, problems are generated by analyzing: ■M achine and cross-directional measurements ■S heet moisture profile measurements ■C ylinder surface temperature profile measurements ■C ylinder surface cleanliness ocket humidity and temperature profile mea■P surements ■E venness of the zero-level

PAPERFIRST MAG Summer 2019

TECHNICAL INSIGHT 5

5. S toraEnso

MACHINE HALL VENTILATION AUDIT This audit analyzes the current state of the paper machine’s hall ventilation in order to gain insight on how to improve system ventilation, as well as the machines ambient environment and working climate. The Machine Hall Ventilation Audit is also used to reduce moldiness and corrosion. The audit focusses on: ■A ir balance measurements ■W ater balance measurements ■M achine hall temperature and humidity levels ■M isting at paper machine wet end ■V isual inspection of fans, hoods, ducts, valves, hatches, heat recovery systems, and auxiliary equipment ■H ood air and water balance calculations ■H ood zero levels ■W ater and humidity load to machine hall

Skoghall KM8 tunity to ask specific questions, raise 6. Leipa Schwedt concerns, or provide further context as PM4 to the reasoning for the audit; information which may change the outcome or recommendations of the report provided. Most auditors will also include insights into the data such as identifying areas that could potentially cause issues in the future, or areas where efficiency gains might be possible. Auditors may also recommend products or services, such as machine upgrades or overhauls, which would provide significant benefit such as 30-60% annual energy savings depending on paper grade. It is important to note that these insights generally come from a combination of data and experience. It is crucial to select an auditor with a strong process, product, and application knowledge and experience; giving you peace of mind that the audit, recommendations, and insights provided are relevant to your equipment and processes.

TAIL THREADING AUDIT TRUST THE EXPERTS Tail Threading Audits can identify tail threading issues, as well as help operators to improve safety and shorten tail threading time. This audit can be conducted on a single specific area/component, multiple areas/components, or the whole machine.

POST AUDIT Regardless of the type, a report is provided following each audit conducted. Such reports typically contain details of the audit, such as a summary of the tests conducted, a rationale for each test (are these tests standard or was there a specific reason for the test); in addition to a detailed analysis of the results. Following an audit or a combination of audits, it is important to schedule time with the auditor to discuss the outcome and findings of the audit. While an audit report may provide similar details, a face-to-face discussion will provide the oppor-

PAPERFIRST MAG Summer 2019

As joint industry leaders, only Runtech and Nash have the expertise and experience to help our customers get the most out of their equipment, improving their paper-making process. Backed by Gardner Denver, you can trust a global team of qualified sales, service, and field staff can work with you to perform a range of surveys and audits to meet your unique needs. Each survey or audit comes with a full written report, including a summary of results; as well as a detailed analysis that includes recommendations tailored to your processes and equipment. Our expert staff will also conduct an extensive on-site discussion, providing you with insights into how you can get the most out of your equipment. Whether you suspect that there is a problem with your paper machine, or would like to develop a preventative maintenance plan, the paper industry experts of Runtech and Nash are on hand to provide a solution.

TECHNICAL INSIGHT

Graphite into the core of braided packings

An innovation for better resistance and flexibility

roupe LATTY, is a French specialist for industrial seals specifically adapted to the requirements of the most demanding industrial environments, including the papermaking industry.

of the graphite core increases their flexibility, which lowers the running in time, the retightening frequency and provids optimal sealing at low tightening force. The graphite also lowers friction, ensuring significant savings in water and energy.

Design and manufacturing is carried out on site at Brou, (Western France). Groupe LATTY has a reputation for the quality and performance of its braided packings and packing rings, in particular because of the patented Filcoat process for impregnating each yarn individually. Its internal R&D department has developed a new range of braided packings with an innovative structure and composition thanks to the addition of an expanded graphite core, which gives them exceptional properties of flexibility and recovery. The new LATTYcore range with the graphite core, consists of five new braided packings with different properties. They can meet the demands of the harshest and most aggressive environments. Depending on the type, they offer very high mechanical performance, high resistance to solid-containing fluids, chemical inertia and very good resistance to abrasive fluids. The addition

PAPERFIRST MAG Summer 2019

Graphite, in contrast to elastomers, is resistant to most chemical agents such as minerals and solvents, and has very good temperature resistance. Depending on the type, the braided packings have an operating temperature range of -200Â°C to +300Â°C and can function under pressures of up to 1000 bar. The graphiteâ&#x20AC;&#x2122;s flexibility makes assembly and disassembly easier, which reduces maintenance times. Furthermore, graphite is one of the materials most resistant to aging, and this can increase time between maintenance. This new range of LATTYcore braided packings adds to an already rich product lineup. The combined research by the Groupe LATTY in the development of fibres and lubricants enables it to offer around fifty different grades of braids, including more than 70 impregnation types and 120 different varieties of yarn including aramid, PTFE, graphite and carbon.

TECHNICAL INSIGHT

Founded in 1920, Groupe LATTY is run by Christian-Xavier LATTY, the founder´s grandson and guarantor of the company´s long experience in its core activity, namely industrial sealing solutions. From the outset, Groupe LATTY’s customers have benefited from its know-how in the design, creation and development of manufacturing processes for sealing solutions. The company produces and markets a very wide range of sealing-related products including packings, sealing rings and packing rings,

mechanical seals and flange gaskets used in a number of sectors both in France as well as in export markets, which provide 40% of the company’s revenues.

Groupe LATTY has built its reputation on compliance with very strict quality rules that guarantee product repeatability, product security and maintenance cost reductions, in particular in the nuclear sector, which requires sealing solutions for the most critical applications.

PAPERFIRST MAG Summer 2019

AGENDA A SELECTION OF PAPER INDUSTRY EVENTS AROUND THE GLOBE You might well meet our team at some of them. RISI Latin American Conference 2019 Sao Paulo (Brazil) 12/8/19 - 14/8/19 www.events.risiinfo.com

Tissue World Sao Paulo Sao Paulo (Brazil) 22/10/19 - 24/10/19 www.tissueworld.com

Paper World Frankfurt (Germany) 25/1/20 - 28/1/20 www.paperworld.messefrankfurt.com

World Bioeconomy Forum Ruka (Finland) 11/9/19 - 13/9/19 www.wcbef.com

ABTCP Congress Sao Paulo (Brazil) 22/10/19 - 24/10/19 www.abtcp2019.org.br

Paper Week Montreal (Canada) 3/2/20 - 6/2/20 www.paperweekcanada.ca

PPI Transport Symposium Tarragona (Spain) 16/9/19 - 18/9/19 www.events.risiinfo.com

Eurasia Packaging Fair Istanbul (Turkey) 23/10/19 - 26/10/19 www.packagingfair.com

MaqPaper Igualada (Spain) 4/3/20 - 5/3/20 www.firaigualada.org

PRIMA Conference Prague (Czech Republic) 17/9/19 - 18/9/19 www.prima-paper.com

RISI North American Conference 2019 Boston (USA) 28/10/19 - 30/10/19 www.events.risiinfo.com

Paper World Middle East Dubai (UAE) 9/3/20 - 11/3/20 www.paperworld-middle-east. ae.messefrankfurt.com

Paper ME Cairo (Egypt) 18/9/19 - 20/9/19 www.papermideast.com

Expocorma Concepcion (Chile) 1/11/19 - 1/11/19 www.expocorma.cl

Tissue World Miami Miami (USA) 11/3/20 - 13/3/20 www.tissueworld.com

TissueCon Orlando (USA) 1/10/19 - 4/10/19 www.tissuecon.org

Abany Tissue Seminar Acapulco (Mexico) 5/11/19 - 7/11/19 www.albanypaneltissue11.com

INDEX 20 - The world of nonwovens Geneva (Switzerland) 31/3/20 - 3/4/20 www.edana.org

FEFCO Technical Seminar & Exhibition Geneva (Switzerland) 9/10/19 - 11/10/19 www.fefco.org

Paper & Beyond Brussels (Belgium) 18/11/19 - 19/11/19 www.paperandbeyond.com

Specialty Papers Vienna (Austria) 20/4/20 - 22/4/20 www.specialtypaperconference.com

MIAC Lucca (Italy) 9/10/19 - 11/10/19 www.miac.info

ATIP Congress & Expo Lille (France) 26/11/19 - 27/11/19 www.atip.asso.fr

Tissue World Bangkok Bangkok (Thailand) 3/6/20 - 5/6/20 www.tissueworld.com

CIPTE 2019 - China International Paper Technology Exhibition Shanghai (China) 10/10/19 - 12/10/19 www.chinapaperexhibition.com/en

PaperEx / TissueEx / CorrugEx New Delhi (India) 3/12/19 - 6/12/19 www.paperex-expo.com

International Pulp Week Vancouver (Canada) 14/6/20 - 16/6/20 www.internationalpulpweek.com

IndoPaper 2019 Jakarta (Indonesia) 16/10/19 - 17/10/19 www.pulppaperasia.com

Paper One Show Dubai (UAE) 13/1/20 - 15/1/20 www.paperoneshow.net

Drupa Düsseldorf (Germany) 16/6/20 - 26/6/20 www.drupa.com

You can find our updated list of events on www.paperfirst.info or PaperFIRST App ADVERTISERS INDEX ABB Cellier p.75 Allimand p.69 Andritz p.35 BA Systèmes p.71 Braincube p.6-7

PAPERFIRST MAG Summer 2019

Cellwood p.59 ENP Publishing Cov. 3 Haropa p.31 Ircon-Solaronics p.65 Latty International p.81 MAN Energy Solutions Cov. 4 Noviprofibre p.49

Pesmel p.4 Runtech p.79 Siemens p.45 Solenis p.61 Techpap p.63 Valmet p.55 Voith Cov. 2