Growing together: Anniversary of Stora Enso and Ponsse's cooperation in China

In 2022, Ponsse will enter its 15th year in China, and Stora Enso Guangxi Forestry (SEGX), which is closely cooperating with Ponsse in the field of mechanized logging, celebrated its 20th anniversary in China in September of the same year.

The companies have grown together for 15 of the 20 years of growth rings. The years of cooperation have created a deep friendship and tacit understanding between the two sides. Stora Enso and Ponsse are not only fellow travellers on the journey, but also business partners who achieve mutual success.

15 years of Working Together

The degree of mechanization of wood harvesting in China is comparatively low. Therefore, since Stora Enso entered China in 2002, it has been committed to introducing advanced concepts of forestry mechanization to China.

In 2007, Stora Enso began to cooperate with the Finnish company Ponsse in the area of mechanized harvesting in Guangxi. Stora Enso purchased forestry equipment from Ponsse, and Ponsse provided equipment service agreement, spare parts, and operator training support. Over the last 15 years, Stora Enso Guangxi has owned and operated more than 30 harvesters and 23 forwarders.

Due to Guangxi’s steep slopes, the first machines assisted with PONSSE Syncrowinch system were introduced to SEGX’s plantations in 2015 and now, fast forwarding to 2022, nearly all the machines have been equipped with the PONSSE Syncrowinch systems. The introduction of the PONSSE Syncrowinch assisted machines was a major step forward in the mechanization development of Stora Enso Guangxi. They helped to greatly improve the safety performance of the business when operating on steep slopes and have contributed to SEGX Forestry becoming one of the best performing operational business units with regard to safety within Stora Enso globally.

SEGX has continued to introduce new forestry machines to China and has continuously updated its digitalization tools to take full advantage of the machine harvesting data.

The Service Agreement Enables to Focus on the Strengths

In 2020, Stora Enso and Ponsse entered into a new comprehensive service agreement.

Preventative maintenance and repairs are key issues affecting the efficiency of SEGX’s mechanized harvesting fleet, and the mechanical availability of each machine is a very important for both companies. The service agreement has enabled both SEGX and Ponsse to focus on our respective strengths, and the benefits have been obvious.

SEGX has been able to further improve the efficiency of its mechanized harvesting, focus more on its core business activities, and eliminate wasted manpower and resources throughout the whole wood fibre supply chain.

Reliable Wood Fibre Supply Chain

The Stora Enso Beihai Mill has developed into a leader in operational efficiency and the production of renewable packaging materials, with the reputation for reliability, exceptional customer service and the highest of food service board standards. The stable supply of certified, high quality, wood fibre raw materials has contributed greatly to the Beihai Mill’s achievement.

The development of a secure and reliable wood fibre supply chain for the Beihai Mill was the result of multi-party collaboration, and one of the keys to its success has been the operation of the SEGX (Ponsse) harvesting machinery fleet. Since the Beihai Mill started production in 2016, SEGX has successfully delivered more than 2 million cubic metres of certified timber to the Beihai Mill over 99% of which was harvested by the Ponsse machines.

Ponsse China renewed its organization in 2021, which resulted in more service trucks and mechanics located closer to

SEGX’s forest operations. That’s why we are always confident in the productivity of the current 14 harvesters and 12 forwarders.

Due to Guangxi’s steep slopes, the first machines assisted with PONSSE Syncrowinch system were introduced to SEGX’s plantations in 2015 and now, fast forwarding to 2022, nearly all the machines have been equipped with the PONSSE Syncrowinch systems.

China's Forestry Gradually Moving Towards Mechanization

Since arriving to Guangxi, one of SEGX Forestry’s missions has been to promote the modernization of China’s forest industry. SEGX was the first company to conduct fully mechanized harvesting in China’s forest industry, and Ponsse has developed to become the market leader for cut-to-length harvest machines and harvester heads in China.

In addition to equipment, the development of a modern forest industry requires the development of professional and motivated staff and contractors with the necessary technical skills. Since 2005, SEGX and Ponsse have jointly trained over 200 forest machine operators. In June 2021, the Guangxi Modern Forestry Industry College was established in Liuzhou, Guangxi, and SEGX and Ponsse were invited to attend the unveiling ceremony. The college has established special courses for the modern and sustainable forest industry, focusing on the training of harvesting machine operators and mechanics.

SEGX is one of the first 18 governing units of the college. By providing professional knowledge, training materials and high-tech forestry products, SEGX and Ponsse can participate in supporting the development of the next generation of forestry talents in Guangxi. In addition, both parties can provide onthe-job training for graduates, so that they can participate in the future of China’s sustainable, plantation-based forest industry.

STORA ENSO GUANGXI (SEGX)

• Part of the global, renewable materials group, Stora Enso.

• The forestry business first started operating in Guangxi, China in 2002

• It has developed into the leading forest company operating in China, with a reputation for safety, high-quality operations, sustainable forest management and its contribution to the modernization of China’s forest industry.

• SEGX Forestry’s vision is to be an icon in plantation forestry management by using mechanized operations sustainably and efficiently.

Ian Blanden, General Manager of Stora Enso Guangxi Forestry

”Long lasting, and Far-Reaching, impact on China's Forest Industry"

I wish to, once again, express my great thanks and appreciation to Ponsse Plc for remaining a loyal business partner to Stora Enso in Guangxi over the past 15 years. I have been fortunate enough to personally witness our partnership grow over the last 9 years and have celebrated first-hand the 10th, and now 15th, anniversary of your time in Guangxi.

Together, our two companies have embarked upon a journey that will no doubt have a long lasting, and far-reaching, impact on China’s forest industry.

On behalf of Stora Enso and our staff in Guangxi, I wish you a very happy 15th birthday and that you will continue to grow and succeed in China: May you add many more growth rings in your journey from humble beginnings in Vieremä to being the preferred partner in responsible forestry in China.

Ian Blanden, General Manager of Stora Enso Guangxi Forestry