Flash_Issue 10EN

UPM AP CUSTOMER MAGAZINE 3/2012

UPM FLASH

UPM Christmas tree in Midtown Biofore Facts www.upm.com

EDITORIAL

Achieving together!

It has been a long journey since UPM established its footprint at APAC region. During the recent years, we have been maintaining the growth momentum. This is amplified by our strategy to grow together with our customers. In our annual Customer Satisfaction Survey, UPM was highly recognized for consistent product quality and level of customer service. Additionally many environmental and printing awards have been accredited to UPM APAC. This validates our strategy and sets the tone for our next steps of growth.

A major decision was made this August to construct a new paper machine at UPM Changshu site. The investment value is up to 3 Billion RMB and the machine will be operational by the end of 2014. Our project team, Finance team and many other teams are working closely together to ensure its completion in time. This major investment will further strengthen our presence in APAC and expand the offering in specialty papers and WFU segment.

The achievements with our customers have also impacted our Finance service development strategy. During the past 2 years our Shanghai Finance team has increased its scope to provide nearly half of UPM´s global financial transactions. This large centre of finance professionals also gives us more strength to service and facilitate UPM APAC and customer needs. All this is well aligned with our internal value - “Achieve together”, a core commitment extended to our customers.

UPM is an advocator of environmental friendly concepts and a frontrunner in adopting the cutting-edge environmental friendly technology. Furthermore UPM´s environmental performance attracts the right talent to drive our and our customer´s success. We are ready to turn the competitive edge in environmental friendliness, large product portfolio and service quality into business growth.

I sincerely wish you, our customers, the best of success in achieving together with UPM!

Raul Ikonen Director, Financial Services and Business Control China and Asia Pacific, UPM

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UPM FLASH 3/2012

UPM Flash is UPM Paper Business Group’s customer magazine in Asia Pacific region.

EDITORIAL BOARD: Lenny Zhong, Vivian Wang, Jackie Bao, Mary Ma EXECUTIVE EDITOR: Ada Qin (Chinese Version), MOLI Design (Chinese and English Version) LAYOUT: MOLI Design PAPER: UPM Finesse premium silk 250 g/m2 (cover), UPM Finesse premium silk 130g/m2 (inside) SUBSCRIPTION: fax 86 (21) 5292 8912 or email upm.flash@upm.com Please email your feedback on Flash magazine to: upm.flash@upm.com UPM in-house magazine

UPM China & Asia-Pacific Sales Network Shanghai: 86 21 6288 1919 Korea: 82 2 723 0555 Hong Kong: 852 2527 0177 Singapore: 65 6838 7280 Japan: 81 3 5778 2660 Australia: 61 2 9334 5000 www.upm.com

CONTENTs

14 No clear winner

EDITORIAL

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NEWS

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CUSTOmER STORY Go Deep: Strengthening regional market share

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PRODUCT & SERVICE Reliable Technical Experts…not only 10 12

Introducing Release Paper fEATURE STORY

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No clear winner

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UPM Christmas tree in Midtown

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mARkETING INfORmATION Outdated Capacity Elimination in China Paper Industry

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CORPORATE RESPONSIBILITY Time for Clean Run

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TEChNOLOGY fRONTLINE Printing industry enthusiastic about nanotechnology

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BIOfORE Biofore facts

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NEWS

UPM listed as the only forestry and paper company worldwide in the Dow Jones Sustainability Indexes – UPM recognised as Supersector Leader and Forestry & Paper Sector Leader UPM’s Biofore vision and consistent work on corporate responsibility has gained recognition: UPM has been listed as the only forestry and paper company worldwide in the Dow Jones Sustainability Indexes. The company has been selected both as a Supersector Leader in Basic Resources sector and Forestry & Paper Sector Leader for 2012-2013 in the Dow Jones Sustainability Index (DJSI). UPM was chosen as an index component for both to the European and World Sustainability Index for 2012-2013.

The DJSI tracks the stock performance of the world’s leading companies in terms of economic, environmental and social criteria. The DJSI follow a best-in-class approach, including companies across all industries that outperform their peers in

numerous sustainability metrics.

“We are very happy that our work on corporate responsibility is recognised externally through both the Supersector Leader and the Forestry & Paper Sector Leader acknowledgments in the Dow Jones Sustainability Index. Continuous improvement in our environmental, social and financial performance is a fundamental part of UPM’s Biofore strategy. During the past year we have focused especially on material and resource efficiency – creating more with less is a key driver for us. I would also like to highlight our company-wide safety initiative that has been a top leadership priority”, says Jussi Pesonen, CEO, UPM. UPM was assessed as the best company in

environmental dimension within Forestry & Paper sector with very high scores.

The DJSI review has been announced by Sam Sustainable Asset Management AG who stated in its report: ”UPM has emerged as the new frontrunner in the forestry and paper sector. Its “Biofore” business strategy strongly promotes economic, social, and environmental sustainability throughout its business operations.”

The annual review of the DJSI is based on a thorough analysis of corporate economic, environmental and social performance, assessing issues such as climate change strategies, supply chain standards, labour practices, corporate governance and risk management.

EU Ecolabel granted for Newsprint Paper UPM is a clear industry leader in the EU Ecolabel scheme, with almost 200 approved paper grades from 15 paper mills. So far, the EU Ecolabel has only been available for Copying and Graphic Papers, but now the EU Member States have adopted EU Ecolabel criteria for newsprint paper as well.

“The newsprint criteria have given us an excellent opportunity to expand our already impressive range of EU ecolabelled products further. Almost all of UPM newsprint papers fulfil the strict criteria,” says Päivi

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Rissanen, Environmental Director of UPM’s Paper Business Group.

Another important development in EU Ecolabel scheme will be the upcoming criteria for printed paper products. Until now, the criteria have only been available for paper producers, but if the process develops well, the rest of the value chain will also have the opportunity to fully utilise the European wide ecolabel scheme in the near future.

“After the criteria for printed products have

FI/37/001

been approved, our customers will be able to print the logo on products such as magazines, books and newspapers which have been printed on EU Ecolabel awarded paper,” explains Rissanen.

NEWS

Ranked in the Nordic climate change disclosure index with top scores UPM has received high scores for its climate change disclosure in the Nordic Carbon Disclosure Leadership Index. The index is compiled annually by the Carbon Disclosure Project (CDP). UPM was ranked in shared first place in the index with top scores: 98 points out of 100. UPM is featured in the index for the fourth consecutive year.

In the Nordic Carbon Disclosure Leadership Index high scores indicate good internal data management and understanding of climate change related issues affecting the company.

The index highlights companies within the

Nordic stock exchanges which have displayed the most professional approach to corporate governance in respect of climate change disclosure practices.

“This recognition honours our Biofore strategy and determined work with integrating sustainability into our businesses. Climate being one of the key areas of our sustainability performance, we have an excellent track record in emissions reduction as well as new innovations in the development of a low carbon economy,” says Päivi Salpakivi-Salomaa, Vice President, UPM Environment. “Good

examples of our commitment to these issues are successful energy efficiency campaigns, investments in renewable energy and second generation advanced biodiesel production,” Salpakivi-Salomaa continues.

UPM is a frontrunner in the use of forest biomass as a fuel. Globally 67% of fuels used at UPM mills are biomass-based and 79% of the company’s electricity production is free from fossil CO2 emissions. UPM has invested over one billion euros in renewable biomass-based energy generation during the last decade.

Transparency and environmental performance of UPM’s papers recognized in 2012 WWF Environmental UPM is one of seven paper producers to receive an award from the WWF (World Wide Fund For Nature) in the category of “Transparency” during the 2012 WWF Environmental Paper Awards. The award recognizes UPM’s efforts in providing public information on the environmental footprint of the majority of its paper products in “check your paper” (http://checkyourpaper.panda.org): a global benchmarking database of eco-rated papers that promotes the responsible supply chain of paper products.

In addition, two paper brands of UPM have received the WWF Environmental Paper Award 2012 in the category “Best Environmental Performance Paper Brands” reaching over 90% of achievable scores in WWF´s eco-rating and the maximum 5 stars in all performance categories: forest, water and climate.

With Check Your Paper, the users can assess how papers rate against criteria such as

management of forests, greenhouse gas emissions, water pollution and waste, all of which are also combined into a single measure to rate each paper grade overall.

“Increased transparency of value chains is a sign from companies that they want to improve their environmental and social responsibility. said Liisa Rohweder, CEO of WWF Finland.

“Transparency is essential to driving environmental performance and ensuring customers have the necessary information to make responsible purchasing decisions”, commented John Sanderson, Director of Environmental Market Support for UPM.

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NEWS

New Copy Paper Cutting Line Goes into Production in Changshu UPM has completed the construction of new cutsize cutting line at Changshu mill and the new machine has been put into operation successfully. After the start of production, the copy paper capacity at Changshu mill will reach 450,000 tons per year.

cutting, ream wrapping, carton packing and palletizing is completely automatic. The new cutting line can produce copy paper in A4 size, 5, 8 or 10 reams per box, in substances of 68, 70, 75 and 80g/m2. The machine guarantees high cut precision within +/- 0.1mm.

The new 8-pocket cutting line supplied by ECH Will adopts the latest technology and integrates eco-friendly design ideas for energy saving, environmental protection and efficiency. The whole process from sheet

The copy paper demand in the emerging markets of Asia Pacific is expected to grow rapidly this decade. As an economic engine of global economy, China is in a crucial stage featuring information technology, industrial

transformation and product upgrading. As a result, the demand of high-end copy paper will boost in the Chinese market.

The new added capacity at Changshu mill will further assure UPM’s leading position in the high end wood-free copy paper market in China and the Asia Pacific region. It enables us to serve the Asia Pacific market more rapidly and efficiently and strengthen the long term partnerships with our customers.

UPM awarded “Special Contribution Sponsor” UPM took the stage at the Third China Printing Skill Competition award ceremony organized by the General Administration of Press and Publication (GAPP) in Beijing on Nov 23. During the ceremony UPM was picked out for its Special Contribution to the event.

Since 2010, UPM has served as the paper

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sponsor in the finals of two national printing competitions. In this August, at the sheetfed offset printing final contest held in Shenzhen province, UPM Changshu mill’s 105g Fineness classic gloss woodfree coated paper won praise from the Organizing Committee for its stable paper performance and printability. Before the competition UPM collaborated with the committee to conduct

rigorous technical tests to ensure the best complementarity between paper, printing machine and ink.

The Fourth China Printing Skill Competition will be organized in 2014 by the Printing Technology Association of China.

NEWS

UPM hosts the Asia Pacific paper and printing seminar During November 13-15, UPM Asia pacific paper and printing seminar was held in Shanghai, gathering 17 clients from South Korea, Hong Kong, Singapore, and Australia.

UPM Sustainability Seminar and Asian Print Awards held in Singapore The 10th anniversary of the Asian Print Awards was held on November 29 in Singapore.

UPM has been one of the Platinum Sponsors for the award since 2005. This year, Shen’s Art Printing Co., Ltd from Taiwan won the “Best in web offset printing” award sponsored

by UPM. On the afternoon of the awards day, in line with the growing interest on green printing and environmental sustainability in Asia, UPM co-hosted a sustainability seminar with Fuji Xerox to share and discuss sustainable development within the industry. During the seminar, UPM and Fuji Xerox shared their best practices in daily operations and emphasized sustainability is not just about “going green”, but makes strong business sense in the long-term as more and more customers turn to suppliers with excellent environmental performance.

Conscious of contributing its utmost to the communities within which it works, UPM strives to be a frontrunner, keeping a close eye on changes within the industry, and actively promoting and participating in its development.

In the three-day course, participants garnered impressive papermaking and printing knowledge, including papermaking principles, paper classifications and characteristics, pre-press and printing technology, and case studies. In the mill tour session, customers visited the paper machines, converting, water treatment facilities and jetty etc.

The participants also operated a printing simulator training under the guidance of UPM technicians, and made their own paper in a laboratory!

At the end of the program, participants provided active feedback. “The training not only allows us to gain paper and printing expertise, but also gives us an opportunity to communicate with peers from different countries and regions.”

Order of the Lion of Finland Awarded to Mr Varhama ​Mr. Timo Varhama received from Sauli Niinistö, President of Finland, a prestigious Medal of Honor Knight, First Class, Order of the Lion of Finland today, on 95th Finnish Independence Day. He joined Finnpap, the export arm of Finnish paper industry in 1972. Following 15 years selling Finnish paper across the world, he first came to Japan in 1987 to work as Executive Vice President of Nippon Finnpap, the predecessor of today’s UPM Japan. Since 1997 he has been President and General Manager of today’s UPM Japan KK. During the years he has contributed not only to the company’s business in Japan but to trade and friendly relations between Finland and Japan in general. He served as President of Finland Chamber of Commerce in Japan and Executive Board Member of European Business Council in Japan. He is also Vice Chairman of Finland Japan Culture and Friendship Association.

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customer story

Text: Ada Qin Photos: MOLI Design

Go Deep: Strengthening regional market share Despite fierce competition, Qingdao Chendu has built a thriving business selling UPM copy paper to regional customers in Jiaodong peninsula in Shandong province.

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customer story

S

ince 2000 when UPM Griffin series copy paper was launched in the Chinese market, Qingdao Chendu Digital Co., Ltd. and its founder Chen Zhenhua have developed a close cooperation with UPM to promote UPM copy paper in Shandong Province, Eastern China. Over the last five years Chendu has doubled its copy paper sales, becoming one of the largest wholesalers and retailers in the region.

“Competition in the market is intense, but with UPM products and our business strategy, I believe we can expand our market,” says Chen Zhenhua, a former university teacher who ventured into business in the 1990s and has been selling office supplies for nearly 20 years.

Leading in difficult markets

Shandong is home to half of China’s paper making capacity and some of the most famous domestic paper brands originate in the province. The competition is fierce.

“Domestic manufacturers produce a wide variety of copy paper products that cover the full range of high, medium, and low grades.

They also have a strong competitive price advantage,” says Chen Zhenhua, “People within the region perceive domestic products as superior and the government also supports the local brands.”

placed the mills at the center of their channel sales,” Chen Zhenhua comments, “In comparison, we’ve developed our sales distribution in good order. In addition, UPM has consistently maintained high quality products for more than ten years.”

Efficient regional strategies

As a regional sales agent for UPM, Chen Zhenhua has carefully planned his marketing. For the areas that are within an hour’s drive from Qingdao, Chendu performs direct channel management and does not employ sub-agents. For those regions that are further out, second tier agents are used within designated sales areas and clear responsibility for channel development and service.

“We have established long-term relationships with our regional agents,” Chen Zhenhua further explains, “Take Weifang region as an example. We have been transferring sales orders, no matter how large or small, from Weifang to our local agent for the past ten years. At this distance, the local agent is in a better position to handle the order. In this way, we can build a cooperation that is stable and mutually beneficial.”

To the next ten years of success

ket in China will slow down in a few years, he is still confident in UPM’s prospects.

“Our rivals have left sufficient market space for us,” explains Chen Zhenhua.

Besides consolidating contracts with longterm clients, Chen Zhenhua has also used promotions and strategic marketing in order to exploit the market thoroughly.

“Shandong is a big papermaking province.

The industry is being associated with pollution, forming a negative image among people.

The actions taken by UPM toward environmental protection will certainly play a very positive role in our market exploration,” Chen Zhenhua continues, “A decade of cooperation between Chendu and UPM is based on our recognition of their product quality, environmental leadership, and sustainability.”

UPM is strongly committed the partnership.

“To gather the feedback, UPM staff have personally visited us and our sales network.

This has been a great encouragement for our channel sales,” remarks Chen Zhenhua. “In order to succeed in the next ten years, we will further deepen our sales channels and expand our client base!”

Despite Chen’s view that the copy paper mar-

Despite the difficult market environment, Chendu has pushed forward UPM products the market leader in the region. UPM copy paper dominates the markets in Qingdao, Weifang, Weihai, Yantai and Rizhao in Shandong.

“Although the accumulated production capacity of the competitors is formidable, their sales efforts are scattered because they have

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PRODUCT & SERVICE

The UPM technical sales team is the link between customers and UPM sales, marketing, manufacturing, research and development, and industry. They not only solve existing technical problems, more importantly, they provide customers with insight into industry trends and the latest technical solutions.

Text: Ada Qin Photos: UPM

RELIABLE TECHNICAL EXPERTS… NOT ONLY

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n February this year, Mika Uusikartano, with over 20 years of work experience in UPM, became the head of Technical Sales in the Asia-Pacific Region. In this role he leads the technical sales team for the whole of the Asia-Pacific region to provide customers with technical support and services.

Mika is a technical expert with a great depth of experience in specialty papers, he has had 14 years’ experience of specialty paper pro-

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duction. Before he assumed the new role, Mika was responsible for the European market as the person-in charge of specialty paper technical sales.

UPM has always demonstrated vision when it comes to strategic management and a key part of this is having the right personnel.

“Technical sales are a key competitive advantage of UPM when providing its com-

prehensive service portfolio. Our team does not just provide technical after-sales; we are constantly observing market and client demand in order to push the boundaries of what UPM can do,” says Mika.

An expert team

Mika’s technical sales team consists of 13 members based in China, Japan, Singapore, and Australia. They are technical experts with deep experience in papermaking, printing and

PRODUCT featUre & SERVICE stOrY

paper converting.

demand.”

“Each and every one of the team has their own respective technical field of expertise. When we work together this means that there are many opportunities to learn from each other, especially through our regular trainings,” Mika explains. “Besides, cross-department, cross-regional and cross-national training, lectures, and exchanges are key mechanisms for ensuring the sharing of knowledge.

Technical sale’s link with external communication also cannot be ignored. Industry associations, scientific research units, and higher learning institutions are all the goals of long-term technical sales cooperation.

Building links and responsibility

Technology and knowledge of paper and printing place Mika’s team at the intersection between customers and the company, and between the company and the industry. When customers come across technical problems, it is the technical sales team that steps up to solve them.

“But solving technical problems is just a small part of our work; active communication with customers is really what we’re about,” says Mika. Customer trainings, such as paper school and seminar, are some of the channels that the technical sales team uses to get to know the customers and to promote UPM products. “Customers need to be able to see things from a technical point of view if we are to be able to provide them with the best solutions,” Mika continues.

Mika also believes that the communication flow should flow both ways.

“Not only do we put forward UPM solutions and provide all kinds of industrial information to our customers, we also pass on customer feedback to the mill and R&D department. This helps the company to keep track of the changes in the market and puts us in a better position to meet customer

“Cooperating with industrial associations can help us understand industrial development from a macro point of view, whereas working with academic institutions helps us understand the perspective of the next generation about to enter the industry. Research and development from these institutions also provides us with valuable information which feeds into product development,” Mika says, “In the process, we have also shared UPM’s values, especially those relating to environmental protection and sustainability.”

The potential of the Asia-Pacific Market

Mika is very positive when it comes to the growth of the paper industry in the Asia-Pacific Region.

“In Europe, demand for printing paper has been decreasing year by year, but the Asia-Pacific market is still showing a growth trend; copy paper growth in Asia is still very strong, and what we need to do is to continually monitor customer demand. The behaviors of Asia Pacific customers are very different from their European counterparts.

The market environment is also constantly changing; people’s incomes are growing, education standards are rising and so the prospects for specialty papers, such as label paper, are excellent in the Asia Pacific. UPM is ready for this market,” Mika says confidently.

Getting to know the Technical Sales Team Derrick Tay, TS manager, Region SE Asia and TWN “Every customer loves to discuss problems with our technical sales team because they are eager to learn from us. Our technical sales do much more than promote sales; we also provide our customers with expert solutions through the sharing of our knowledge. As far as the customers are concerned our technical sales team provides them with the service that improves their operations.”

Ricky Wang, China TS team leader “As technology advances there will be more players in the high quality paper industry, so highquality service will become an increasingly important differentiator. In China, we have made specific development plans for each Technical Sales team members and by this program we can provide them with the most up-to-date and expert advice.”

Kazuhiro Nagano, TS manager, Region Japan and Korea “As far as our Japanese customers are concerned, helping them understand the papermaking process and printing techniques is very important. For printing paper, for example, our training has helped printing houses effectively avoid various kinds of printing faults that occur because the characteristics of the paper were not understood.”

Sean Bosco, TS manager, Region Australia and New Zealand “Establishing trust and strong relationships with customers is very important. To do this we make sure that both our goals and our customers’ are aligned.”

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PRODUCT & SERVICE

Text: Robin Shi Photos: UPM

Introducing Release Paper

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his August, UPM has decided to build a new paper machine at Changshu mill to produce wood-free uncoated paper and release base paper, the latter providing Changshu mill with another cutting edge product. The release paper is new and different to Changshu mill’s current products of graphic paper and office paper.

Here we will introduce the basic concept and properties of release paper and release base paper.

What is the release paper?

Before explaining what release paper is, first let’s get to know what ‘release’ is. The concept of ‘release’ comes from the die forming

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and injection moulding industry. When finished product is separated from the mould, to avoid damaging the finished product, we need some materials to prevent the adhesion of finished product with the mould. This demoulding process is called releasing. The material that helps demoulding is called the releasing agent.

The release paper plays the similar role of separating adhesive objects from the “mould”, here, the mould is normally a flat layer, and the flat layer is usually peeled and discarded after use. The release paper is the carrier of the releasing agent. Band-Aids are the common example; the finished product is

attached to a layer of paper before use. This layer of paper is peeled upon use, leaving only the finished product for application. The layer of peeled paper is the release paper.

Release paper can be used in many areas such as in labels, tapes graphic materials, medicine, personal care products, synthetic leather, and carbon fibre etc.

To make a release paper, we need to coat the releasing agent on a certain paper. This paper specially designed for releasing agent coating is called release base paper. The most common releasing agent nowadays is silicone and as a consequence the release paper is often

PRODUCT & SERVICE

called the siliconized paper. Release paper has many names, such as oil-proof paper, anti-sticky paper, label base paper, etc. The plastic film can also be used for the releasing agent coating so called filmic release liner.

In addition to one side releasing agent coating, there are lots of end uses requiring two sides releasing agent coating, we called this as two sides release paper. One big end use of two sides release paper is two-side tape.

The characteristics of release base paper

As mentioned above, silicone is a major type of releasing agent, which has high tendency to penetrate into the paper (release base paper). Actually any paper can be coated with silicone to have releasing function. If there are no barriers to prevent silicone penetration into the paper, the silicone will be “eaten” by the paper so you have to apply more silicone (higher cost). Another issue is silicone anchoring problem, which means the paper cannot hold out the silicone. So the release base paper should be specially designed to have proper function.

• Preventing the penetration of the releasing agent

The most basic requirement on release base paper is to have even silicone coverage, while maintaining low absorption. The simplest practice is to coat a PE film on the paper surface, and then coat silicone on top of this

PE film. Release base paper with a PE film is called “PE coated Kraft”or PEK .

The PE film increases costs and affects the recyclability of the material. The PE film also restricts PEK in many end uses, for instance, it cannot be used in high temperature processing environments. In medical uses, PE film should not be peeled off together with the medical compound. So, is there a type of silicone-coated paper that does not need PE coating?

The answer is yes. Here we have two methods to have better silicone coverage and lower silicone absorption.

The first method is to close the paper surface in a mechanical way by using a supercalender.

After heavy calendaring, the paper surface is closed and the silicone is difficult to penetrate. We call this supercalendered paper as glassine.

The other method is using coating materials to close the paper surface and reduce the silicone penetration. We call this paper as Clay-Coated Kraft (CCK).

• Better releasing agent coverage

The release base paper should have good silicone coverage property as silicone coated weight directly effects the peeling function.

We use the term of releasing force to measure the peeling performance. The releasing

force is high where there is not enough silicone coated and it is difficult to peel off. That explains why sometimes you feel difficult to peel the base off when you use express mail form.

In addition to the good silicone coverage, considering the high cost of silicone, we need to keep silicone consumption as low as possible provided we can maintain the proper releasing force. Pre-requisites for quality release base paper are therefore the ability to have good silicone coverage and low absorption rate.

• Requirement from silicone coating process

In addition to these two fundamental requirements, release base paper has to be suitable for the silicone coating process and adhesive coating process. We know that more and more silicone and adhesives are water based. The water needs to be removed after coating under high temperature. But the paper is very sensitive to the moisture; the fiber will be extended when watered. It will make paper size, esp. cross direction, change and paper curling. So release base paper has very high requirements on dimension stability and layflatness.

Last but not least, as the coating speed keeps increasing, the release base paper should be strong enough to guarantee that there is no web break during the coating process.

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FEATURE STORY

NO CLEAR WINNER

Study looks at environmental impact of printed and electronic media

Text: Nina Colliander-Nyman Photos: Viljak，Bernhard Huber，Patrik Lindström

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innish media company Alma Media recently published the results of an extensive study comparing the environmental impact of electronic and printed media. The results showed that the environmental impact per hour of reading for Alma Media’s average reader is lower for printed media than for reading online. However, the bottom line of the study is that as different media complement each other they cannot really be compared with each other.

Alma Media’s study is unique in the sense that this is the first time a broader comparison of the respective media’s environmental impact has been made that also includes more detail of the editorial work. The study not only examined the carbon footprint, but everything ranging from the eutrophication of waterways to particulate emissions. The study, which was conducted in cooperation with VTT Technical Research Centre of Fin-

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land and the KTH Royal Institute of Technology in Sweden, surveyed the environmental impact of the Finnish daily Aamulehti, the tabloid Iltalehti and the business newspaper Kauppalehti, together with the respective newspapers’ online versions read on computers.

The most important finding shown by the study was that electronic media also have an environmental impact, which in some cases is actually larger than for printed media.

“If you compare a person’s reading of a printed version for an hour with an hour of reading the same newspaper online, the paper version is a more ecological choice,” explains Riikka Poukka, Corporate Responsibility Coordinator at Alma Media.

Difficult to make relevant comparisons

“The result of the study depends a lot on how

you measure and how you compare different things,” says researcher Åsa Moberg at KTH (Centre for Sustainable Communications).

If you measure the environmental impact of the newspapers and their respective online versions over a whole year, you will get a different set of results, which will show electronic media in a more favourable light.

Besides which, readers are likely to use different versions of publications for different reasons and so they cannot really be directly compared or replaced.

“The time people spend reading a newspaper on the internet today is considerably shorter than the time they spend reading a printed version,” explains Poukka.

Today, a reader spends an average of 30 to 60 minutes a day with a newspaper whereas the time spent reading the same newspaper online is between just two and four minutes.

FEATURE STORY

Åsa Moberg, a researcher at KTH (the Centre for Sustainable Communications) in Stockholm, states that different media complement each other and cannot really be directly compared.

“When you consider the use of electronic media will increase in the future, it’s interesting to see that the more time you spend online, the higher the environmental loading,” says Poukka.

Moberg agrees, adding that what surprised her most in the study was that people spend so little time reading online.

“In future, it would be interesting to study different types of readers and their behaviour and how this affects the environment.

Already today, people are increasingly using electronic media such as smartphones and e-tablet readers.”

You can regulate your environmental impact

The environmental impact of the printed newspaper is greatest at the beginning of the value chain, in other words papermaking, distribution and energy production for printing. When it comes to electronic media, the environmental impact is at the end of the value chain: the computer features, reading time, the size of downloads and how the electricity used has been produced.

“Computer production has a significant environmental impact, which also depends on how well you use it. If you keep your computer for many years and use it a lot before taking it to be recycled, the relative environ-

mental loading is less,” explains Moberg. The same applies to print. If you subscribe to a daily newspaper you hardly ever read, the relative environmental loading per hour of reading is higher than if you read the newspaper every day. This means that the more people read the same newspaper, the better.

Both printed and electronic media have nonetheless relatively little environmental impact.

“A whole year’s subscription to Aamulehti accounts at most for 1.3% of the total environmental impact of the average European,” explains Poukka. Together, the media and ICT sector account for around 3% of the global impact on climate.

“Alma Media’s detailed study is groundbreaking in its extent. It confirms that the printed newspaper as a means of communication is a good choice also from the environmental perspective. We at UPM continue to work hard to reduce the environmental impact of printed products. We are well placed to do so and this is shown, among other things, by the fact that we have the widest choice of EU eco-labelled paper products on the market,” says Päivi Rissanen, Environmental Director, Paper, UPM. (Reprint from UPM Corporate magazine-The Griffin, 1/2012)

Riikka Poukka, Corporate Responsibility Coordinator at Alma Media, says that Alma Media’s study of the environmental impact of printed and electronic media has sparked international interest.

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Text: Akiko Ando Photos: UPM and MOLI Design

UPM Christmas tree in Midtown This year we have had World Design Capital Helsinki 2012 and UPM has been playing an active role for the related events in Helsinki, now adding more excitement to the Finnish festivities here in the middle of Tokyo city.

T

okyo Midtown, a well-known big commercial building complex, is holding its annual Christmas event with lots of Finnish elements this year. One of the big features is Christmas tree provided by UPM, which travelled from Tsumagoi village in Gumma highlands. A six-meter high spruce tree with Finnish traditional craft ‘himmeli’ decoration is standing in a pot made of UPM ProFi materials. This is the main icon of the Tokyo Midtown event which all visitors to the event will come and see. Behind the tree, UPM “aurora” promotion video will be shown to the visiting public that is expected to count in thousands every day.

From 15 November to 25 December, many Finnish events will be introduced, such as Santa Clause parade from Korvanturi village, Rovaniemi, Christmas songs by Finnish school children choir, himmeli work shop, Finnish gingerbread baking school, Christmas stories read by Finnish Ambassador’s wife, Finnish handicraft and design pop-up shops, photo shooting session and so on. In the park behind the complex, a giant light show consisting of 3,000 LED-lights is another annual attraction that gathers big crowds to Midtown every night.

After the exhibition, our spruce tree is planned to be used for Santa’s sleigh next year - an environmental friendly recycling solution. Japanese aim to avoid “throw away” mentality even with Christmas trees!

The Suntory Museum of Art located in Midtown is also holding Finland Design Exhibition, introducing 100 years history of Iittala glass designs, including world famous classics by Kari Frank, Timo Sarpaneva and Tapio Wirkkala as well as the famous birds by Oiva Toikka. This is the biggest ever exhibition of Finnish glass in Japan.

We have spread the message among our customers that they would join the event with their families and loved ones together with the crowds at Midtown and enjoy Finland Christmas and Finnish design that we helped to provide. We think that it will endear UPM to them effectively.

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marketing information Source: China’s State Council, Ministry of Industry and Information Technology (MIIT) and National Development and Reform Commission (NDRC) Text: Bessie Tang

Outdated Capacity Elimination in China Paper Industry

D

uring the 11th Five-Year (20062010) period, China government was committed to energy-saving and emission-reducing. 10.3 million tons of pulp and paper capacity was expected to be closed during 2006-2010.

On December 30, 2011, China central government released the 12th Five-Year (20112015) Plan for the pulp and paper industry.

The plan stated that old pulp lines and paper units with a combined capacity of at least 10 million t/a should be shut down between 2011 and 2015. The figure was then raised to 15 million t/a in the Five-Year (2011-2015) Plan for energy-saving and emission-reducing, released in Aug 2012.

paper industry’s target is 9.7 million tons by the end of 2012. In July and September, the MIIT published the lists for the phase-out of the pulp and paper industry separately. The total amount is around 10 million tons covering 24 provinces. The top 5 provinces are Hebei, Henan, Hunan, Fujian and Jiangxi, with 5.7 million tons, accounting for 57% of the total phase-out. The MIIT requires the local authorities to shut down all the proscribed equipment by the end of September, and to have the machinery dismantled by the end of this year.

Both figures include 8.2 million t/a the Ministry of Industry and Information Technology (MIIT) announced last year, which would be shut down over 2011.

The machines being targeted are outdated and small, which are not energy-saving and do not fit in line with current environmental standards. The government is closing chemical wood pulp lines with a capacity below 51,000 t/a, nonwood pulp lines smaller than 34,000 t/a, and recycled fiber-based pulp lines below 10,000 t/a.

On April 26, 2012, the MIIT announced wiping out outdated capacity goals for 19 industries in 2012, in which the pulp and

The same conditions also apply to newsprint machines with a capacity of less than 50,000 t/a, printing and writing PMs less than

1.76m wide and with a speed below 120 m/ min, and cartonboard and recycled containerboard units less than 2 m wide and slower than 80m/min.

Outdated capacity elimination will accelerate upgrading of the paper industry consolidation, and to a certain extent, ease the oversupply situation.

As the second largest CO2 emission country, China is active in reducing its greenhouse gas emission and announced its target for 2020, 40-45% reduction of fossil CO2 of unit GDP from 2005. In 2012 China’s State Council has released a five-year plan to save energy and cut pollutant emissions nationwide. The plan specifies targets for five key industries during the 2011-2015 period, including the pulp and paper sector. Regarding polluting parameters in waste water, the pulp and paper sector will have to cut rates of both Chemical Oxygen Demand (COD), and ammonia nitrogen emissions by 10%.

Main chart Chart 1 Capacity closure during 2006-2010

Chart 2 China outdated paper capacity closure plan 2012 Hebei Henan Hunan

500

57%

Fujian

万吨

Jiangxi Sichuan Anhui Heilongjiang

400

Shandong

1st batch

Liaoning Jilin

300

200

Guangxi Hubei Hebei

Ningxia Inner Mongonia

210

Shanxi

230

100

Gansu shaanxi

51 2006

2007

Henan

Zhejiang 107

0

2nd batch

Xinjiang 432

2008

2009

Hunan

Chongqing 2010

Jiangxi Fujian

Jiangsu Guangdong Guizhou

Unit: kt 0

500

1000

1500

2000

2500

Source: Ministry of Industry and Information Technology (MIIT), China Paper Association

UPM FLASH / 3. 2012 /

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CORPOR ATE RESPONSIBILITY

Text: Jin Lisheng Photo: UPM

Time for Clean Run The Clean Run campaign aims to reduce the environmental impact of all UPM operations.

Since the project launched in 2011, Changshu Mill has taken a series of steps that have achieved very positive results.

COMMUNICAtIONS Key message communications

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trAINING

Clear campaign objectives and process training

AUDIt

Audit and suggestions

CORPOR ATE RESPONSIBILITY

L

ast spring, the UPM Executive Team launched the company-wide Clean Run campaign that aims to reduce the environmental impact of all UPM activities. UPM is committed to being a frontrunner in five key areas: sustainable products, water, climate, forests and waste. The performance targets have been set for these environmental key areas in 2020.

Starting with the pulp mills in 2011, the Clean Run campaign now covered all the paper mills and other business divisions. This year, all UPM paper mills have actively been promoting the campaign. The target within three years is no environmental accidents of grade three and above at each mill. All paper mills will be audited by the end of 2012, the current plan is that there will be followup audits within the next four years. In the meantime, mills will work on identified actions and best practices.

In September 2012, UPM launched a global Environmental Accident Reporting Database. This system unified the data requirements and format for environmental accident reports, ensuring each mill to record accidents consistently and

completely, no matter how big or small.

More importantly, the database also records precautionary measures, responsible personnel and deadline.

UPM Changshu Mill is actively making progress in the Clean Run campaign. In a management meeting early this year, General Manager Timo Johansson started the campaign with ambitious targets for the next three years. To ensure these goals are implemented, the project team has divided the targets to each production department.

Environmental improvements in the first phase of the action plan are being carried out smoothly through a variety of training and communications. By the efforts of every employee at Changshu Mill, no grade three or above environmental accidents have occurred up to now. Employees have also increased their awareness of environmental protection and know better how to prevent accidents. UPM is committed to sustainability in running businesses, and step by step the Changshu Mill is improving production efficiency by consuming less energy and water and lowering wastes and emissions.

UPM’s environmental achievements in numbers: UPM’s environmental investments were EUR

14 million in 2011

Of the fuels UPM uses, approximately

63 per cent are biomass-based UPM has decreased wastewater volumes per ton of paper and per ton of chemical pulp by over the last ten years

30 per cent

The COD (Chemical Oxygen Demand) load has decreased by

40 per cent per tonne of paper, and by 50 per cent per

over

tonne of pulp over the last ten years Today, more than

90 per cent of the

production waste of UPM is recycled or reused Nearly

80 per cent of the wood

UPM uses is from certified forests

IMPrOVEMENt

improving plan and action

rEPOrtING SyStEM

Global reporting system and follow up

Since 1990, specific CO2 (carbon dioxide) emissions per tonne of paper have reduced approximately

25 per cent

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TECHNOLOGY FRONTLINE

Nanography will sit between current digital print technologies and offset printing.

Printing Industry Enthusiastic About Nanotechnology Text: Vesa Puoskari Photos: Vesa Puoskari

The Landa Corporation launched the new technology of Nanographic Printing at the drupa exhibition, aiming to set a new industry standard for mainstream printing. The response from the industry was more than enthusiastic.

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runs and personalisation,” he continues.

The great beauty of Nanography is that it is a very fast process and is able to print on any substrate.

However, it will not replace offset printing but complement it. For the foreseeable future, offset will continue to be the preferred method for producing very long runs,” states Ray Goodacre, PR spokesperson for Landa.

At drupa 2012 Landa unveiled six Nanographic printing presses – three sheetfed and three web presses. The benefits of Nanography come from the low cost per page because it uses less ink and only a very thin layer of NanoInk is needed.

Due to its versatility, Nanography will sit between current digital print technologies and offset printing. “Essentially, it is a digital press and therefore has the potential for short

“The process is very efficient. As the Nanographic presses match the speed of offset we believe that the economics will be very good. The plan is trying to restore profitability

TECHNOLOGY FRONTLINE

The Nanographic printing presses are operated by a touch screen that looks like a giant iPad. Because of the ease of use of the interface printers will get more jobs through the presses. to printers,” Goodacre confirms.

Revolutionary technology

NanoInk has been developed by the Landa Corporation that was founded by Benny Landa in 2002. In the printing field, Landa Digital Printing develops Nanographic Printing systems for the commercial, packaging and publishing markets and Landa Labs concentrates on developing nano-materials.

At the heart of the Nanographic Printing process are NanoInk colorants comprised of pigment particles only tens of nanometers in size. These nano-pigments are extremely powerful absorbers of light and enable unprecedented image qualities.

The most unique feature about the presses is probably that they are operated by a touch screen that looks like a giant iPad. Due to the Ray Goodacre

high degree of automation a single operator can manage even four presses at a time. “I believe that printers will get more jobs through the presses because of the ease of use of the interface,” says Goodacre.

Market entry in 2013

The first presses are expected to be delivered by the end of 2013. Landa representatives admit that the product needs to be developed further before it is completely ready to enter the market.

“We want to test these products thoroughly before we go to the market. Essentially, it is about finalising the specifications of the products,” says Goodacre.

sheetfed and Heidelberg. The companies have announced that they will employ Landa’s Nanographic Printing technology as part of their future product strategies.

Just before the drupa expo Landa signed several important partnerships with leading press manufacturers including Komori, manroland

“Having these respected companies licensing Nanographic Printing technology means that it is going to accelerate its adoption as a new digital printing standard for short and medium runs. Customers who have been afraid to invest due to the current situation in the industry and over selecting the right technology for their requirements now have a new reference point with Nanography.

“We knew that we had something exciting to bring to drupa but did not predict the incredibly positive reaction we have received.

I think that the industry needed something really new like Nanography to restore confidence,” states Goodacre on the success of the Landa launch at the expo.

(Reprint from UPM Corporate magazine-The Griffin, 2/2012) UPM FLASH / 3. 2012 /

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Biofore

Biofore Facts

B

iofore is a new industry category UPM has created to describe the future of the company.

Bio stands for future orientation, sustainable solutions and good environmental performance. Fore stands for forest and the company’s position at the forefront of development. Our success in being the Biofore Company and leading the industry is driven by innovation, dedication and sustainable operations. We look at the forest and our existing business with new eyes. UPM integrates bio and forest industries. Putting Biofore in action means living Biofore - everyday.

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Biofore

What do we mean by Biofore?

UPM is the first forest industry company to define itself as a company which combines bioeconomy and forest industry into one. Biofore is a new way of looking at the forest – and our business. Biofore is a word which describes the heritage and the future of our industry.

Biofore means commitment to efficient operations, profitable business and a more sustainable future, demonstrated through concrete actions and a string of R&D successes that complement our existing businesses.

What is UPM’s Biofore strategy?

The company statement captures the essence in a nutshell: As the frontrunner of the new forest industry UPM leads the integration of bio and forest industries into a new, sustainable and innovationdriven future.

What is our proof?

Everything we do is based on utilizing the woodbased biomass value chain. We’re constantly looking for ways to make use of that in a more versatile way. Already today all our products are made of renewable biomass.

We create value from renewable and recyclable materials by combining our expertise and technologies within fibre based, energy-related and engineered materials businesses.

How does Biofore reflect UPM’s future?

5

Million tons

Capacity closure during 2006-2010

4 3

4.3

2 1

2.1

2.3

2006

2007

1.1

0

2008

0.5

2009

2010

The future provides new opportunities for new biomass and fibre related products. In addition it communicates that all our operations are based on sustainable and renewable raw materials. 50% of

our R&D input is targeted into developing new technologies and businesses, like biofuels and composites. Naturally we’re also constantly innovating to improve and add new properties to our so called traditional forest products such as paper, plywood and pulp.

What are UPM’s efforts in R&D, making new innovations and products?

The key words in our everyday operations are sustainable and innovation-driven. And in R&D, one of our targets is to find new business opportunities for the future. The new business opportunities are very much related to the word “bio”: bioenergy, biodiesel, bioethanol, bio oil and biochemicals.

Where is paper in our agenda?

Paper is a renewable and sustainable product. We are the world’s biggest user of recycled paper in paper production. Today, print and digital media coexist in harmony complementing each other.

Be it the future media consumption habits, future advertising channels or future business models, both print and digital solutions have a clear role.

They both are needed.

Paper is our core business and we’re committed to it also in the future.

How does Biofore become reality in Paper business?

• All products are made of renewable biomass • All products origin from sustainably managed forests • World’s largest user of recovered paper in graphic papers • We aim to be the most efficient paper maker in the world

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