Metsa Board Magazine North American issue 2015

Page 1

METSÄ BOARD STAKEHOLDER MAGAZINE NORTH AMERICAN ISSUE 2015


Lightweight! Camera! Action!

The light flickers; the opening shot takes shape on the screen. No, it’s not just another trailer. Your lightweight paperboard journey has begun even before you realized it – right here and now – with the cover of the very magazine you are holding, which is made of Metsä Board’s Carta Integra. Read on to learn more about lightweight boards like this one, and the satisfied customers already reaping their benefits. WHAT WE ARE MADE OF | Cover: Carta Integra 10.2 pt 2


3


TABLE OF CONTENTS

12

6

For Unilever, high sustainability standards are vital.

An introduction to the wonderful world of lightweighting.

24

4

21

How Barilla’s team effort has put Italy on the US map.

Veritiv relies on Metsä Board’s fast service and low lead times.

There’s plenty of folding boxboard for the North American market.

In Finland, ‘metsä’ means forest.

28

14


EDITORIAL

QUALITY, LIGHTNESS, PRODUCT SAFETY, AND SUPERIOR ENVIRONMENTAL ARGUMENTS ARE METSÄ BOARD’S USPS. Mika Paljakka, VP of sales, Americas (until 31 July 2015)

E

M

M

F

nvironmental issues are coming under increasing scrutiny here in North America, and until recent years, standards have not been as strict as in Europe. That’s why Metsä Board, the biggest European folding box board manufacturer, is in a good position. We have a long tradition as an environmentally sustainable and resource-­ efficient company. Our North American customers are glad to hear that we can trace the origins of our raw materials right back to their origins in the forests of Northern Europe. The recyclability of paperboard is also important to them, which is why they choose it over other raw materials in their packaging. Another unbeatable environmental selling point is the lightness of Metsä Board’s paperboards. Their manufacture requires lower volumes of various raw materials and less water and energy. They are lighter to transport, and generate less waste. The lightness of our paperboards enables our customers to reduce the carbon footprint of their own operations and use less raw material in packaging manufacturing. etsä Board has, of course, been in the North American market for decades. As a matter of fact, over one-third of the Finnish Kemi mill’s linerboard exports end up here, and Metsä is a market leader in this segment in North America. Now it’s time to expand our presence with our excellent folding boxboard in the North American markets. How do we do this? With customers, we do numerous test runs on printing, converting and packing lines to demonstrate the excellent performance of our products. We know that becoming a paperboard supplier to major converters and international brand manufacturers requires many months of test runs, and that several truckloads of paperboard might be used during the testing phase. Why do we know this? We have had very nice progress in North America with those global brand owners who are already Metsä Board’s customers in Europe – they’ve already seen our lightweight paperboards in action.

etsä Board employs about 35 people in sales and customer service in North America through our office in Norwalk, Connecticut. Local customer service is important, and Metsä Board provides each customer with their own liaison to handle orders and customer care. Our logistics team ensures smooth deliveries, while our technical customer service team handles tasks such as trial support, training, technical support and troubleshooting. Because Metsä Board’s mills are located in Finland, on the other side of the Atlantic, we must continually explain how we guarantee supply. We send weekly shipments in Metsä-dedicated ships to two harbor warehouses on the East Coast, in Philadelphia and Baltimore. Our warehouses contain a sufficient stock of basic products to rapidly supply customers who require smaller quantities. Years of experience have taught us which kinds of products need to be quickly available from our warehouses. We also establish dedicated supply channels for larger, regular customers. For our regular customers, we can promise 48-hour delivery from our harbor warehouse.

rom our customers’ perspective, it’s important that we maintain active and innovative investments in both mills and R&D. We do our utmost to keep our customers satisfied through close cooperation in order to support their commercial success. Does this all sound too good to be true? It’s not. We reveal some of the basics in this Metsä Board Magazine, made specially for our North American paperboard customers and stakeholders. If you have any questions, give us a call or send us an email. We’ll be happy to tell you more!

5


e w t h Lig An introduction to the wonderful world of lightweight paperboard, which enables savings, sustainability benefits, and more productive converting.   IAN FENTON

6

SHUTTERSTOCK, METSÄ BOARD


g n i t eigh

for beginners

7


Order size: 50.000 sheets Sheet size: 20.47 x 28.35 in Total print area: 201 500 sf Bending stiffness: 133 gf∙cm Thickness : 20 pt

6.2t 7.3t 8.7t CRB recycled board chipboard

IF

SBS solid bleached sulphate board

FBB average folding boxboard

5.6t METSÄ BOARD’S FBB lightweight folding boxboard

Over 30% more packages with the same weight.

you’re new to Metsä Board’s lightweight paperboard, lesson number one is: “you get more for your money”. This is simply explained by the fact that compared to an equal weight of the average folding boxboard, Metsä’s board can provide 30 percent more packages. As we’ll soon see, using lighter board needn’t compromise stiffness, strength, or printability (on the contrary, this is some of the best-looking, best-feeling packaging out there). The only thing that goes down is the weight. The benefits of a lighter package make themselves felt across the entire

value chain – enabling logistical savings for everyone – all the way to the consumer reaching out for the product on the supermarket shelf. And let’s not forget what follows the use phase: lighter packaging also means less to dispose of. Recycling fees are charged by weight, of course, which means that savings can be made here too. The Lightest Footprint

Once you have a handle on the financial implications, your second lesson in lightweighting covers sustainability. Again, in comparison with other varieties of folding boxboard, less raw materials are required to produce

Metsä Board’s lightweight boards (which, by the way, are also fully recyclable). As the weight of board decreases, so does its carbon footprint. For example, 20 pt folding boxboard has a footprint of 562 lb of CO2 released per 10387 sf, while board weighing 16.3 pt releases only 465 lb. This means that choosing Metsä Board enables the conservation of wood, water, and energy, as well as a reduction in the amount of chemicals used in the board-making process. And let’s not forget that as raw materials go, fresh forest fibres – virgin fibres that is – are among the purest and safest around, meaning

Doubling the thickness achieves an eight-times higher stiffness.

1 Coatings 2 Chemical pulp 3 High-yield mechanical pulp 4 Chemical pulp 5 Coatings

To be able to produce the works of genius that are Metsä’s boards, in addition to chemical pulp, high-yield mechanical pulp is also necessary. Chemical pulp is used on the top and the reverse layers, and high-yield mechanical pulp is used in the middle layer to make the board light yet thick and stiff. 8


CRB/FBB

FBB/SBS

± 5%

Max. variation 2.3 pt

METSÄ BOARD’S FBB

± 4%

1.8 pt

± 3%

1.5 pt

Metsä Board’s basis weight and thickness tolerances are the tightest in the industry. This guarantees less a djustment work, faster running and fewer stoppages.

Our tight tolerances quarantee consistent quality.

our boards are perfect for all varieties of food packaging. In addition to the savings already noted in logistics, the fact that lower weights are being transported also carries environmental benefits, as does the reduction in waste waiting to be recycled at the end of the packaging value chain. For Metsä Board’s customers, all of these sustainability benefits accrue to form the basis of a powerful tool in modern supply chain management: the Paper Profile, a factsheet which explains the place of manufacture, raw material origins, and certification of each individual product (see page 23 for an example). Carbon emissions

data is also readily available, meaning that our boards can be easily incorporated into footprint calculations. The bottom line? Lighter packaging is better for the environment. It’s as simple as that. Running Smooth

You probably understand by this point that Metsä Board’s lightweight boards do a lot of good out there in the world, generating savings and performing well environmentally. But what about at the production stage? Well, things are made easier here too. Using pulps from different batches, as many other folding box board producers often do, increases

variation in board quality. For Metsä Board, using pulps from our own production, this is not an issue. The consistent quality of our boards guarantees smooth runnability on printing and converting lines. Need evidence? The numbers don’t lie. Our basis weight and thickness tolerances are the tightest in the industry. Our boards’ optical properties such as brightness and shade also have tight limits. The benefits are obvious: when board can maintain this kind of consistency, it makes for less adjustment work, faster running, and fewer stoppages on the production line, saving time, money and waste. It’s

Save during production, with a faster, higher-yield board. 3,750 sheets

7,500 sheets

11,250 sheets

18%

longer washing interval

2,500 sheets

5,000 sheets

18%

7,500 sheets

faster die-cutting speed/h

10,000 cartons

20,000 cartons

30,000 cartons

19%

faster gluing speed/h

Board grade A (Metsä Board) Board grade B

9


Cartons draw your attention

color 26–33 ft

shape 13–16 ft

brand logo 7–13 ft

text 1.6–6.6 ft

The average shopper makes their decision in three seconds. Help your carton to stand out.

strong too, helping packaging made from it to stay in shape, however bumpy its journey to the end user may be. Shelf Appeal

But of course the physical properties of the board come into their own on the shop shelves. The importance of packages looking and feeling good can’t be overstated: consumers can’t help but respond to quality. With the average shopper spending less than three seconds to make a typical purchase decision, the impact of packaging’s look and feel is close to subliminal.

10

In the supermarket, people don’t stop to analyze which product looks better: they simply absorb the visual information and reach out for their choice. This is why an excellent printing surface is of prime importance. With its natural whiteness, Metsä’s board displays color and photography particularly well, and another advantage of the consistency of our pulp grades is that the precise shade of our board remains the same regardless which batch it comes from. But while their perception is often on the near-subliminal level, consumers are taking time to consider

From the forest to the shelves... Fresh forest fibre is a pure and safe raw material.


Consumer safety is ensured.

High quality packaging attracts at the point-of-sale.

Strong packaging stays in shape in logistics.

Consistent quality enables trouble-free runnability in converting and packaging lines.

Lightweight boards generate less waste. They are recyclable.

...and the cycle continues.

a new level of information embedded in the identity of the products they buy: their perceived sustainability. According to the 2014 Nielsen Global Survey, 55 percent of global online consumers across 60 countries say they are willing to pay more for products and services provided by companies committed to positive social and environmental impact. In terms of food packaging, this thinking may soon translate into swift and decisive action on the part of consumers in favor of paperboard packaging over plastic and foil. And when the general public makes its voice strongly heard on a

topic like this, lawmakers are quick to listen. Numerous cities and counties across the US have been implementing bans on Styrofoam and other polystyrene foam products in recent years. When the bulk of the most recent bans come into force in 2016, light, safe, and sustainable paperboard looks set to dominate the market. So, the next time someone asks you about lightweight paperboard, you’ll be well primed to tell them the facts: lighter can also mean less expensive, more sustainable, stronger, easier to work with and transport, and more attractive. Lessons well worth sharing, we hope you agree!

Lightweight boards use less raw material and lower transported weights.

11


PARTNERSHIPS

100% TRACEABLE, 100% CERTIFIED Unilever is impressed by the way Metsä Board uses Finnish natural resources: with respect, efficiency and cutting-edge technology.   TYTTI HÄMÄLÄINEN

paper and board suppliers, the Unilever Sustainable Living Plan (USLP) means that by 2020, the company will source 100 percent of its paper and board from either FSC® or PEFC™-certified and sustainably managed forests or similarly-certified recycled material.

FOR UNILEVER’S

A vital checklist

pliers must uphold Paper and board sup nts to preserve me a number of require sed packaging to r-ba fibe of ce the relevan targets. Sofia Santos lity Unilever’s sustainabi most important of the out nts poi r of Unileve these: g and ◊ Responsible sourcin terial a sustainable raw ma (chain of custody) and transparency ◊ Cost effectiveness used ces our res er Few ◊ ◊ Good functionality ertise: generating ◊ Cutting-edge exp value chain and ire ent value for the users partnerships with end

12

DAVID PATINO

“For Unilever, certifications are not only about sustainably managed forests and high-tech mills. They are also important in tracing the environmental footprint and help us to achieve our no-deforestation commitments,” explains Sofia Santos, Unilever’s procurement manager for the paper and board feedstock program in Latin America and North America. Sustainability is not merely an option for this company: it is a business model. “The plan is our response to the challenges the world faces. That’s why sustainability is at the heart of our strategy and we want to work with partners that also put it at the heart of theirs.” “By 2020, Unilever’s aim is to double the size of the business, while halving the environmental impact of its products. From the packaging point of view, the USLP can be supported by reducing the weight of packaging. This will be done through lightweighting, optimizing structural and material design, and eliminating unnecessary

packaging. With Metsä Board, we were able to reduce the board weights by 15–20 percent overall. This affects the entire value chain from our factories to shops and to consumers’ homes.” Albeit a very important factor, lightweight board is not the only thing helping Unilever to lower its impact. “We’ve noticed that Metsä Board uses cutting-edge technology and are resource efficient at the mills. These all have an effect on our products’ footprint,” explains Santos. “Metsä Group are part of the WBCSD Forests Solutions Group with us, and it’s great to be participating together in important discussions on the future of sustainable development.” Whichever Suits Best

The process of selecting a material begins with examination of the precise application and the functionality of the packaging. “When safety regulations demand a virgin material, the choice is very simple,” Santos points out. “When there are different options, we’ll choose the best available material for the application, as not all


PARTNERSHIPS

“THE PACKAGING MUST LOOK GREAT AND FEEL STRONG.” Sofia Santos, Unilever

DOSSIER

UNILEVER

is a British-Dutch multinational consumer goods

company co-headquartered in Rotterdam, The Netherlands and London, United Kingdom. Its products include food, beverages, cleaning agents and personal care products. One of the world’s largest consumer goods companies, its products are available in nearly 190 countries.

materials are always accessible.” For Santos, the most significant criteria for making buying decisions are cost effectiveness, responsible sourcing, certifications, board stiffness, and lightweighting – all features that drew Unilever to Metsä. Another point she mentions is Unilever’s perception of consumers as part of the environmental footprint. As much as two-thirds of the end product’s footprint is actually generated in consumers’ homes, and a quarter by suppliers. “That’s why we want to see packaging as a part of the product, not just waste.” This ideology has challenged the company in many respects, including sourcing, functionality, expertise, and creating value across the entire value chain. “We must have packaging material from sustainable and renewable sources with cutting-edge board technology that can deliver quality to the consumer. The packaging must look great and feel strong.”

13


metsä noun /’met.sæ/

forest, wood, woods, woodland

Visitors to Metsä Board’s mills in Finland are often taken aback by the combination of efficient, modern production and our harmonious approach to nature and its seasonality. While you may be far away, we wanted to give you a short tour, pointing out exactly what makes our activities – and the Finnish forests that provide their raw materials – so unique.   TYTTI HÄMÄLÄINEN

14

METSÄ BOARD


86% Forestry Land Finland and its forests sustain each other: of the country’s total area, over three quarters is forest. This is the country with the largest forest cover in Europe and every fifth Finn owns a part of it.

One Second Every second, enough wood to produce 1 ton of board grows in Finland’s forests.

Four for One For every tree we harvest, four more are planted.

15


80 Years The Finnish forests reach their maturity within 80–100 years on average. By that age the forest’s growth has remarkably diminished and, in an ordinary forest, it is time to renew the forest stand.

80 Days The growing season of coniferous trees in Finland is about 80 days long. On average the daily growth of Finnish forests amounts to more than 1.3 million cubic yards during the growing period.

95% Certified 95% of Finnish commercial forests have been certified and almost 90% in accordance with the PEFC™ scheme. The majority of Finnish forests are owned by families for whom PEFC™ is the most appropriate system. In comparison, only 35% of North American forest land is certified, and only 9% of the world’s forests in total.

16


Four Seasons In winter, snow covers the frozen ground and forestry machines can reach sites inaccessible during the warmer seasons. Harvesting continues in Finland throughout the year. As spring begins and the snow melts, the trees burst into leaf. The wood we use grows slowly during the short summer of Northern Europe. Come autumn, the trees prepare for months of cold rest. Take one minute and 50 seconds to learn more about what we do in the forests and why at www.metsaboard.com/videos

17


THE SPECIALIST

ALI HARLIN

Wood is a valuable raw material in Finland. That’s why the board machine manufacturers have started developing machines that are more efficient. Also, one of the machine manufacturers is Finnish. The board machinery in Finland is modern, enabling it to serve the tightest customer demands – even demands that the customer didn’t know they had.

Stiffness, stiffness, and stiffness – and through that, light weight. Lightweighting is enabled by high-yield mechanical pulp, the middle layer of Metsä’s boards. This type of three-layer board is still not being manufactured in the US.

5

To ensure there will be forests in the future, four seedlings are planted for each tree harvested. We utilize the whole tree from the trunk to the top – for example, as bioenergy in power plants. But the pulp mills are also big producers of bioenergy in addition to pulp. The board-making process gets the most out of as little as possible.

Top Countries in Board Research

unsurpassed eden and Finland are ◊ North America, Sw ciency effi and rs fibe in virg in their research on ch of Nano leaders in the resear ◊ The Japanese are cellulose research in ts the most advanced ◊ Germany conduc rs fibe the use of recycled

18

6

The overall research mechanism in Finland is unique in that the government finances research. Finland is among the top three countries spending most on innovation. One of the country’s strategic focus areas is bioeconomy, which includes paperboard.

7 8 9 10

Our favorite rival is our next-door neighbor Sweden – be it in ice hockey or research in bioeconomy. We research similar things and goad each other.

Americans are good at researching production efficiency and logistics, but here in the Nordic countries we master the development of new products such as microfibrillated cellulose, bio barriers, and foam forming. However, we do do research together. For example there are visiting professors and researchers in Finland from the University of North Carolina, and we also collaborate with Georgia Tech, for example. Why Metsä Board? Metsä Board is just the right size – small enough to be agile but big enough to have the resources. Metsä Board can produce high-quality products efficiently. This is made possible by investing in the best available technology and multi-layer machines.

Ali Harlin is a research professor at VTT Technical Research Centre of Finland Ltd.

DOSSIER

1 2 3 4

The differences lie in our forests. Unlike the US mixed forests, Finnish forests grow by type – pine, spruce and birch forests. When harvesting, it’s easy to separate trees between hardwood and softwood.

VTT Technical Research Centre of Finland Ltd is the largest multidisciplinary non-profit research organization in Northern Europe. It provides high-end technology solutions and innovation services for domestic and international customers and partners in both private and public sectors. VTT uses 4,000,000 hours of brainpower every year to develop new technological solutions.


PARTNERSHIPS

A TEAM EFFORT Barilla wants suppliers that help them deliver the feeling of Italy around the globe   TYTTI HÄMÄLÄINEN

BART HARRIS

W

hen you think of pasta, you think of Barilla. When Barilla thinks of pasta, they think of how it must be good for you and for the planet. “That’s our goal,” says Marcela Mrugala, purchasing director for Barilla Americas. It’s obvious that Barilla wants to find suppliers that can assist them in reducing their environmental footprint and help spread the Italian feeling worldwide. “In Europe, Metsä Board is Barilla’s main board supplier. Here in the Americas, we’re in the process of evaluating the use of Metsä’s boards in our supply chain,” says Mrugala.

David Taylor, Matt Baker, and Marcela Mrugala at ease in Barilla’s US headquarters.

19


PARTNERSHIPS

The reason for using the same boards globally is product consistency – that the pasta tastes the same, and the packaging looks the same whether it’s sold in Parma, where the Barilla Group is headquartered; in Chicago, which is the location of Barilla America’s headquarters; or in Sao Paolo, where Barilla Americas recently established a local office. Close Together

When choosing packaging material, Barilla considers many aspects, including consumers, customers, the product in question, and the environment. “This has had an effect on our business model here in the US. Our local mill is situated near the durum wheat supply, so that the value chain for manufacturing is closer together,” explains David Taylor, purchasing manager, packaging materials, at Barilla America. According to Taylor, Barilla started working with sustainability packaging issues in the 1990s. “Consumer groups started contacting us about our sustainability and 20

recyclability,” he recalls. Back then, the company used approved recycled materials and both incoming and outgoing shipments utilized full truckloads or rail as required. “Over the years, we’ve developed our approach to sustainability. Nowadays we have over 65 projects with targets to increase sustainability,” says Taylor. This said, it’s no surprise that it was lightweight boards that drew Barilla to Metsä Board. “But it’s not only the boards that count. To us, the efficient mills and logistics from Finland to the US have also been included in the total cost analysis. Metsä Board’s products have smaller CO2 footprints than the boards produced locally,” says Matt Baker, purchasing manager at Barilla America. Synergies Are Fundamental

Barilla also believes in premium image. “We pay attention to brand awareness. For example, if we are designing for a


PARTNERSHIPS

Efficiency and sustainability

Customers like Barilla emphasize the importance of efficiency in Metsä Board’s mills, and for good reason. The company continuously invests in these facilities to keep them modern, safe, efficient and sustainable. For example, the mills’ energy efficiency has improved by seven percent during 2009–2014 even though, at the same time, capacity has increased by approximately 220,000 tons.

Data for Every Product

“METSÄ BOARD’S PRODUCTS HAVE SMALLER CO2 FOOTPRINTS THAN THE BOARDS PRODUCED LOCALLY.”

Another item high on the list of priorities for customers is the environmental footprint of their packaging. This is why all Metsä’s boards have Paper Profiles, explaining the place of manufacture, raw materials such as the origin of wood and pulps, and certification schemes. Paper Profiles are product-specific and industry-wide environmental declarations, which enable easy comparison. Carbon footprint calculations for each board are also available on request. To give you an example of the data Metsä Board can provide, let’s take a closer look at Carta Integra 10.2 pt. It’s the board you’re holding in your hands right now – the cover of this magazine is made of it.

Fossil Carbon Emission​s As lb CO2/ton of product

FORESTRY OPERATIONS

102

PURCHASED ENERGY

248

OTHER RAW MATERIALS

272

PRODUCTION

164

Matt Baker, Barilla Group

DOSSIER

new category, we consider factors that will help us differentiate our products on store shelves,” says Mrugala. To achieve this, the partnership between Barilla and Metsä Board needs to be on a long-term basis, with both sides investing in the relationship – not just episodic collaborations. The organization of the supply chain is integrated, and the impacts on costs, resources and the environment have to be taken into consideration. “We need to have an all-round vision, from the field of wheat to the packaging,” agree Mrugala, Taylor and Baker. BARILLA S.P.A. (Barilla G. e R. Fratelli Società per Azioni) is an Italian and European food company. It was founded in 1877 in Ponte Taro, near Parma, Italy. The Barilla Group is one of the world’s leading pasta producers, with factories all over the world, making pasta in over 120 shapes and sizes. The company is privately held, and is in its fourth generation of ownership by the Barilla family.

Each individual cover weighs 0.049 lbs, and so represents fossil CO2 emissions to air of 0.012 lbs (taking into account the journey from production to the print house in Helsinki). However, Metsä’s board functions as a biogenic carbon store, and with each cover storing 0.066 lbs of CO2, this means that its carbon footprint is actually negative, and stands at -0.047 lbs of emissions!

Origins in the Spotlight The data trail doesn’t end there. Because the vast majority of the supply chain is within Metsä Group, we can also provide the details of where each component of Metsä’s board originates, again taking Carta Integra 10.2 pt as a case in point. The high-yield mechanical pulp (comprising 45 percent of the finished product) comes from Metsä Board’s own mills in Joutseno and Kaskinen, Finland, while the chemical pulp (30 percent) comes from Metsä Fibre’s Äänekoski mill, which operates on the same site as the board mill of the same name. The pigments, fillers and binders (which make up the remaining 25 percent of the board) come from reliable suppliers who have signed Metsä Group’s Supplier Code of Conduct and Environmental Policy, which complies with the ISO 14001 standard. 21


BOARD ON BOARD Charting our board’s journey from Nordic forests to the American marketplace. To ship modern, sustainable folding boxboard, you need a modern, sustainable fleet, specially designed for the purpose. This is how Metsä Board transports its lightweight board to the US. The board leaves the mills by train or truck, bound for the port, and is then shipped to Baltimore

and Philadelphia. Carta Integra, for example, the board used for this magazine’s cover, is manufactured in Äänekoski and transported to the port of Rauma, before being shipped to Baltimore.

Ships from Rauma to Baltimore

Baltimore–Los Angeles

WEEKLY

2,650 MILES

BALTIMORE

LOS ANGELES

IT’S A FAMILY AFFAIR… Metsä is not only about board – Metsä Group’s business areas cover the whole value chain, allowing trees to be utilized as efficiently as possible. That’s why the Group also has sawmills and manufactures wood products, pulp, tissue, and cooking papers. As the whole value chain belongs

to one group, the raw material supply is secured and we know exactly where it comes from. Metsä Group’s wood procurement is handled by the company’s principal owner, Metsäliitto Cooperative, which is owned, in turn, by 122,000 Finnish forest owners.

USD BILLION

SALES

22

PERSONNEL

TISSUE AND COOKING PAPERS

PAPERBOARD

PULP

WOOD PRODUCTS

WOOD SUPPLY AND FOREST SERVICES

METSÄ TISSUE

METSÄ BOARD

METSÄ FIBRE

METSÄ WOOD

METSÄ FOREST


IT ALL STARTS HERE ÄÄNEKOSKI RAUMA

The ship takes, on average,

20 DAYS

Rauma–Baltimore

4,970 MILES

Metsä Board’s facilities are well positioned to take advantage of a world-class resource: the Nordic forests.

Shipping produces

344

LBS OF CO 2 / TON

…MAKING THE BEST USE OF THE ENTIRE TREE We use renewable raw materials and turn them into safe and recyclable products. Every part of a tree is used for the purpose it suits best. Logs, the most valuable parts of a tree,

% BARK for energy production

are used as building material, treetops and wood from forest thinnings are used to produce pulp for paperboard and paper while the bark and branches are used for energy.

% SAWN TIMBER for building and construction PULP WOOD

% SAWDUST for pulp and paper production and for energy production

% WOOD CHIPS for pulp and paper production

FRESH BRANCHED LOG

DRY BRANCHED LOG

CROOKED BUTT END FOR PULP The 39 million cubic yards of wood Metsä Group procures yearly is used to the full. 23


PARTNERSHIPS

HIGH LEVEL OF SERVICE…

Metsä Board Delivers in 2–4 days

1

2 1

3

4

The numbers don’t lie: while local board suppliers in the US provide lead times of six to seven weeks, after the first delivery Metsä Board’s finely tuned logistics process allows for deliveries within two to four days of order receipt.

24


PARTNERSHIPS

“When looking for suppliers in the industry, Veritiv partners with companies that share its values on customer service and dependability,” says John Walton, the company’s category leader, coated board & converting, in the North American market.   MALLORY ARAUJO

METSÄ GROUP

…LOW LEAD TIMES Q: Veritiv has customers with high

Q: A question Metsä Board keeps hear-

Q: Have you found it to be a positive

expectations for quality and reliability.

ing is why we ship board from Finland

experience working with our team?

How has Metsä Board been able to help

to the North American market, and how

you?

that can be competitive business. Have

John Walton: Metsä Board provides Veritiv with standard and special-sized coated board products for the commercial printing and folding carton markets. We convert this board to sheet product through our converting network, located throughout the United States. For us, reliability is very important. Metsä Board has set up a solid program to ensure constant inventory levels to accommodate service demands. North American mills can provide quicker turns, but Metsä Board’s dedication to the U.S. market and Metsä Board’s service platform help them to be competitive. Also, Metsä Board understands the customer demands and is willing to set up port-side programs to alleviate any shipping delays.

you asked the Metsä Board team the

A: Veritiv appreciates the can-do attitude and commitment of the Metsä Board team. Metsä Board has a firstclass customer service organization that is proactive in servicing their customers. They consistently look for ways to add value to the relationship.

Q: Are industry innovations something your customers want to hear about?

A: Yes, our customers expect Veritiv to understand the dynamics of innovative coated board and tailor programs around their needs. Metsä Board is willing to work with us to develop programs that provide our customers added value while also creating a strategy around a long term vision.

same questions?

A: Yes we have! Metsä Board has set up a solid service platform to help mitigate the distance of the mill from the customer base. The mill communicates well from the beginning of the order process throughout the delivery to the customer. We will continue to ship the board from an international supplier for our customers as we are clearly in a global market. As long as proper forecasting and communication is provided, it makes sense to deal globally. Q: When trying out a new board, how

“METSÄ BOARD HAS A FIRST-CLASS PROACTIVE CUSTOMER SERVICE ORGANIZATION.”

crucial is it to have technical customer

John Walton, Veritiv Corporation

service, and how has Metsä Board been able to help you solve problems?

A: Technical customer service is critical. For example, Veritiv was involved in a heavyweight folding carton opportunity and worked the technical aspects of the sheet through with Metsä Board. Metsä Board acted as a partner in the selling process which provided credibility. Our customer understands that the technical service aspect is dedicated to the US market. Metsä Board has helped Veritiv better understand the dynamics between a solid sheet and a layered sheet and how it affects the folding and die-cutting process before, during and after the selling and testing process.

DOSSIER VERITIV CORPORATION is a North American leader in business-to-business distribution solutions. Serving customers across virtually every industry, Veritiv provides print, publishing, packaging, facility and logistics solutions that help shape the success of its customers. Established in 2014, following the merger of International Paper Company’s xpedx division and Unisource Worldwide, the company employs approximately 9,500 team members across more than 170 distribution centers throughout the US, Mexico and Canada. 25


At Metsä Board, we run fast: Up to a half mile per minute.

H20

99%

99%

Middle layer of the board: high-yield mechanical pulp

H20

H20

Top layer of the board: chemical pulp

99%

H20

Reverse layer of the board: chemical pulp

WIRE SECTION

PRESS SECTION

At the wet end of the board machine, stock – the fiber slurry – is sprayed from three individual headboxes onto the three separate wires.

The three-layer fiber web passes from the wire section into the press section, where water is squeezed out with high-pressure roller nips. Excess water is absorbed by press felts between the rollers.

Surface strength and stability

Smoothness and gloss

Sheet flatness and stability for good runnability

DRYING SECTION

26

GLAZING CYLINDER

SIZE PRESS

In the middle of the drying section is a glazing cylinder that creates the basis for final cartonboard smoothness and gloss without losing thickness.

Here, a slurry of starch is applied onto both sides of the web to improve surface strength and stiffness of the cartonboard.

DRYING SECTION Proficient drying ensures good sheet flatness and stability, which in turn ensures good runnability in printing and converting.

80%


To simplify the board-making process, it could be said that it’s mostly the removal of water. But the board machines, with a width of 33 feet and a length of 656 feet, are sophisticated runners with each section doing its own job contributing to key properties – light weight, stiffness and brightness.

H20

50%

SEE THE MACHINE COME ALIVE AT METSABOARD.COM/VIDEOS

Sheet flatness and stability

DRYING SECTION Here, additional water is removed through evaporation when the web is carried around hot drying cylinders.

Smoothness, gloss, brightness and absorption characteristics

H20

COATING SECTION

JUMBO REEL

After drying, the web enters the coating section. A mix of white pigments and binders is applied onto the running board web. Surplus coating is removed with a coating blade. The top surface of the board is usually coated two or three times, while the reverse is either uncoated or coated once.

Finally, the finished board is wound onto a jumbo reel. At the winder, the jumbo reel is cut into smaller reels according to customer specification or optimized for subsequent sheet cutting.

8%

27


PLENTY OF BOARD TO GO AROUND 1.5 million tons of folding boxboard per year – there’s plenty to be shipped over to North America.   TYTTI HÄMÄLÄINEN

M

etsä Board is fully committed to the North American market. As evidence of this, we are increasing the production of North America’s favorite boards to be sure that our high-quality and sustainable lightweight products are available now and in the future. “The demand for our fresh-fiber-based paperboards has grown in recent years. This demand has encouraged us to develop our operations so that we can continue to fulfill our customers’ needs on all continents,” says Metsä Board Corporation’s CEO Mika Joukio. This development means that we are building a new folding boxboard machine in Husum, Sweden. New volumes are targeted mainly to North America and to the food service segment globally. “Not only are we increasing the volumes in North America,” says Joukio, “but this investment means that our service levels to our European and Asian customers will improve as a result.” The Husum mill will also see an increase of linerboard volumes when paper production is transformed into that of fully bleached linerboards, which work excellently both in food and general packaging.

New Board Capacity is Needed

In 2011–2012, Metsä Board made debottlenecking investments into its Simpele, Kyro and Äänekoski mills, in which their combined capacity saw an increase of 165,000 tons. “Now, two years later, the capacity is more or less fully sold. We need new capacity from 2016 onwards, and the latest increase of approximately 440,000 tons is enough to secure growth in line with market demand during the next few years. In all, Metsä Board’s total annual paperboard capacity (including both folding boxboard and linerboard) will increase from 1.5 million to over 2.2 million tons by 2018.” More board also means increased demand for pulp, and Metsä Board will remain self-sufficient in pulp production. Both hardwood and softwood chemical pulps are produced at Husum and at sister company Metsä Fibre’s mills in 28

METSÄ BOARD

Finland. Metsä Board’s two mechanical pulp mills in Finland will continue to produce all the high-yield mechanical pulp the company needs. “Being self-sufficient in pulp production is a huge advantage for Metsä Board and our customers. Because we only use pulp produced within the company, we always know how it’s made. This guarantees high-quality and consistent pulp as there’s no need to buy pulp spots from the market.” Metsä Board strongly believes that all the measures we are now taking strengthen our possibilities to exceed your expectations with safe, lightweight paperboards.

Details of the Investment METSÄ BOARD announced on 10 December 2014, that it would invest approximately USD 190 million in a new folding boxboard machine at its Husum mill in Sweden. After this investment, Metsä Board will be able to produce a total of roughly 1.5 million annual tons of folding boxboard annually. The capacity of the new folding boxboard machine to be built in Husum is approximately 440,000 tons per annum and it will start up in early 2016. We expect that full production capacity will be reached by the end of 2016. Husum is Metsä Board’s biggest mill integrate with a large two-line pulp mill, state-of-the art coating technology, an efficient power plant, and its own harbor. Metsä Board began to produce linerboards at Husum in 2013, and expect to be able to increase liner production further in the near future. Husum’s paper production is planned to be mostly discontinued at the end of 2015 and fully by the end of 2017. However, we will continue to produce reels for the paper business at the mill.


TECHNICAL CUSTOMER SERVICE

, ssibilities at hand se new board po

u have all the NOW THAT yo

1 2 3 4 5

m out? – but Metsä how do you try the cess unto itself w board is a pro ne a to g North Amerid Switchin ate dic de a d m an bal technical tea ps. Board has a glo , in five easy ste re’s how it works He t. ou ng lpi can team he the s that we analyze board. This mean d on its se ba n Finding the right tio es gg a su in use and make board currently end use. chinery the g what kind of ma ctivity. Establishin ard can help bo ’s Maximizing produ tsä Me w d ho converter has, an brand owner or results. ss wle fla g cin out in produ ckaging through converting and pa ions for printing, on the customer’s sed Developing solut ba s on ndati erts give recomme exp r Ou ls. gs, for example. tin tria t tes d machine set inks, adhesives an selection. Printing w the board . Working out ho m start to finish to maximize ne do Consistency fro is is Th es. rk in the filling lin wo ing ag ck pa and ncy. packaging efficie tion, as well as done in distribu st, testing can be works well in ard bo Last but not lea the t ow tha important to kn It’s g. tin es. elv tes p dro y to the shop sh ss from the factor the whole proce

Metsä Board’s Production Mill

No. of Machines

Capacity (1,000 tons) FOLDING BOXBOARDS

Husum, Sweden

2

Kemi, Finland

1

440

LINERBOARDS

WALLPAPER BASE

330

CHEMICAL PULP

HIGH-YIELD MECHANICAL PULP

830

450

Kyro, Finland

2

210

Simpele, Finland

1

330

Tako, Finland

2

230

Äänekoski, Finland

1

260

170

Joutseno, Finland

330

Kaskinen, Finland

330 29


DIG DEEPER

REVITALIZING SUSTAINABILITY is important to Metsä Board and its parent company Metsä Group. During 2014, we’ve revitalized and updated our understanding of the most essential sustainability topics. Metsä Group dug deep to ascertain our stakeholders’ expectations, and formed a materiality analysis using integrated management, expert interviews, and in-depth evaluation of sustainability trends and best practices. The analysis helped Metsä Board to focus its efforts on the issues that are most important to our stakeholders. According to these findings, our five sustainability priorities are: • Product safety • Well-being and safety at work • Product and process innovation • Sustainable forest management and supply chain • Resource efficiency In the report, we provide examples of our sustainability efforts in practice. For example, descriptions of safety in the workplace at our Kemi mill. Another important theme is cooperation with universities and schools. Last year, 57 Metsä Group professionals visited 133 schools across Finland and promoted work possibilities in the forest industry. Cooperation with schools is also of growing interest to Metsä Board Americas. Our Norwalk office employees participate in programs like PPC’s TICCIT to educate local school-aged children about the renewability and sustainability of paper and paperboard packaging. www.metsagroup.com/sustainability

30

NO CONTEST

WHAT’S THE DIFFERENCE? of different board types, and navigating their properties to decide which is right for you can be a challenge. One layer, two, or even eight? And the various pulps used in the layers – what’s the difference? Here’s a quick guide to the properties of different board types typically used in North America.

THERE ARE A VARIETY

Metsä Board FBB

SBS

• Virgin fibers • Top and reverse layer bleached chemical pulp, middle high-yield mechanical pulp

• Virgin fibers • One layer of bleached chemical pulp

CUK

CRB

• Virgin fibers • Top coated white, layers brown chemical pulp

• Recycled fibers • Top coated white, layers recycled fibers

Folding boxboard

Coated unbleached kraftboard

Solid bleached sulfate

Coated recycled board

And what does this mean in terms of lightweighting? When calculating the data, it’s no contest. Metsä’s board is 15–20 percent lighter than SBS. When compared to CUK, the lightweighting advantage is typically more than 20 percent. With CRB, you can take an average of over 30 percent lighter board. So lighten up your packaging!


PRODUCT LINES

OUR EAT-ONTHE-GO BOARD!

EVENTS

METSÄ BOARD ! T U O B A D N A T U O

LUXEPACK NEW YORK will be held on 13–14 May 2015 in New York’s Pier 92. At the event, Metsä Board will showcase its sustainable and high-quality boards targeted at high-end markets. In 2014, the New York LuxePack attracted 3,311 visitors, with nearly 200 exhibitors present. CARTA DEDICA is

devoted to food service, where success is built on reputation and consistent quality. Product safety and sustainability of raw materials have become increasingly significant in this area. For all these purposes, Metsä Board has developed Carta Dedica, a reliable, high-yielding and sustainable choice for converters and brand owners. The board is available as clay-coated and uncoated. It can be used as is or, for example, dispersion-coated for additional barrier properties. Carta Dedica is also suitable for applications in which OBA-free packaging is needed.

Carta Dedica can be used for: • Paper cups in food service or retail packaging • Paper plates and trays • Other takeaway and fast-food packaging • Other food packaging

ACCCSA 2015, PUNTA CANA 6–9 September 2015 ACCSA’s annual Exhibition and Conference brings together manufacturers and their strategic partners and suppliers in the Latin American corrugated box industry. PACKEXPO LAS VEGAS 28–30 September 2015 PACK EXPO Las Vegas will be the world’s largest packaging and processing event in 2015, and will bring together decision makers from a wide array of industries. PLMA PRIVATE LABEL TRADE SHOW, CHICAGO 15–17 November 2015 PLMA’s annual US Private Label Trade Show is the industry event of the year that gives access to the growing private label market. Industries such as food and beverages, health and beauty and household products are in attendance.

DIGITAL PRINTING

THE RISE OF CUSTOMIZATION

XEIKON

DIGITAL PRINTING TECHNOLOGY is developing further, as manufacturers seek new ways to lessen waste and minimize set-up time for better cost efficiency. All Metsä’s boards can be used in digital printing. Despite the advances in new technologies, digital printing will, for the time being, only complement offset

printing in short runs. Offset printing will remain the principal technology for long and medium runs. With shorter runs, adapting packages for different markets and occasions is becoming more and more common. Brand owners have found it beneficial to customize packages not only for different target groups, but also for limited editions, tie-ins with events, and so on. The goal is to increase brand acceptance and connection with consumers, and to this end, digital printing offers great opportunities for personalized packaging. All of Metsä’s folding boxboards are great resources for digital printing. For example, Metsä Board was recently appointed a member of Xeikon’s Aura Partner Network, following rigorous testing and certification of six Metsä Board folding boxboards. Xeikon 3500 is designed for label and packaging converters who need a wider web width as well as top speeds for the production of prime label, folding carton, promotional, and transfer applications. 31


Whatever your need, we’ve got it covered. This quick guide to Metsä Board’s portfolio gives you an idea of the kinds of end uses our products are suitable for.

FROZEN & CHILLED

CARTA DEDICA MODO NORTHERN LIGHT SIMCOTE

CARTA DEDICA MODO NORTHERN LIGHT AVANTA PRIMA SIMCOTE

SIMCOTE AVANTA PRIMA CARTA SOLIDA

32

FAST FOOD

FOOD SERVICE

FOOD & BEVERAGE

CHOCOLATE & CONFECTIONERY

BISCUITS & BAKERY

SIMCOTE AVANTA PRIMA CARTA SOLIDA

SIMCOTE KEMIART CARTA DEDICA CARTA SELECTA MODO NORTHERN LIGHT

DRY FOOD DAIRY

SIMCOTE CARTA SOLIDA AVANTA PRIMA KEMIART

TEA & COFFEE

SIMCOTE AVANTA PRIMA

WINES & SPIRITS

KEMIART MODO NORTHERN LIGHT CARTA ALLURA AVANTA PRIMA

PREMIUM

STANDARD

CARTA SOLIDA CARTA ALLURA CARTA INTEGRA CARTA ELEGA

SIMCOTE CARTA SOLIDA


CARTA ALLURA CARTA ELEGA MODO NORTHERN LIGHT

PERFUMES MAKE-UP

CARTA SOLIDA CARTA ELEGA CARTA INTEGRA CARTA ALLURA SKIN CARE

AVANTA PRIMA CARTA SOLIDA CARTA ELEGA

HAIR COLOUR

CARTA INTEGRA CARTA ELEGA

AVANTA PRIMA SIMCOTE CARTA SOLIDA

TOILETRIES

BEAUTYCARE CARTA INTEGRA CARTA ELEGA CARTA SOLIDA CARTA ALLURA

CARDS & CALENDARS

IT, CD & DVD COVERS & FOLDERS

GRAPHICS

CARTA INTEGRA CARTA ELEGA

SHELF-READY PACKAGING

HEALTHCARE

OUR COVER IS MADE OF THIS KEMIART MODO NORTHERN LIGHT

RETAIL PACKAGING

OVER THE COUNTER

CARTA SOLIDA AVANTA PRIMA SIMCOTE

DISPLAYS

TRAYS PRESCRIPTION

CARTA SOLIDA CARTA INTEGRA CARTA ELEGA CARTA ALLURA

AVANTA PRIMA CARTA SOLIDA SIMCOTE

KEMIART MODO NORTHERN LIGHT CARTA SELECTA CARTA SOLIDA AVANTA PRIMA

KEMIART MODO NORTHERN LIGHT

POINT OF SALE

KEMIART MODO NORTHERN LIGHT

33


34


President, VP of Sales Assistant to the President Marketing and Communications Specialist

MIKA PALJAKKA ASHLEY AUDDINO MALLORY ARAUJO

SALES

Sales Director, Latin America Sales Director, Merchants Sales Director, Converters Sales Director, Canada Sales Manager, Converters, Brand Owners Sales Manager, Retailers Sales Manager, Zanders

ANDRES FARET SCOTT FORSBERG GARY PARNIGONI LIETTE GAGNE MICHAEL GEORGE RYAN ARBITO ROBERT HOFFMAN

Technical Marketing Director STEVE ROTE Technical Managers GREG BAKER JOHN SARIK BRENT SINGER Claims Handling ELEANOR MATERA

SUPPLY CHAIN

Regional Supply Chain Director Demand Planner Customer Service Team Lead

MATTHEW HILL STEVE FRANCE STEVE O’BRIEN TOM KIRK

Transport Planners BRIAN CHRISTIE MICHAEL GARBATINI

ANTRONE KELLEY NANCY SCIGLIMPAGLIA

Customer Service JOSEPH GEORGE SHANNON LAPERA JACKIE MYERS

HANNAH ROSENBERGER MICHELLE VANEGAS

ICT on assignment

IT

GUY BROOKER

FINANCE Head of Finance & Admin/Treasurer SANDRA CIASCA Regional Credits Manager CORINNE MCMAHON Corporate Accountant BETH PACHIN Office Assistant ASHLEY AUDDINO Accounting BILLY ALOUPIS

METSÄ BOARD MAGAZINE | North American Issue 2015 | magazine.metsaboard.com | magazine@metsagroup.com | ISSN 2323-5500 | Publisher Metsä Board Communications, P.O. Box 20, FI-02020 METSÄ, Finland | www.metsaboard.com | Editor-in-chief Juha Laine, vice president, investor relations and communications | Managing editor Tytti Hämäläinen | Editorial board Mallory Araujo, Tytti Hämäläinen, Minna Kantsila, Juha Laine and Ritva Mönkäre | Production and graphic design Miltton Oyj | Print Erweko Oy | The opinions expressed in this publication are not necessarily those of Metsä Board.


metsaboard.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.