Fibre customer magazine 2025

Fibre is a publication designed for Metsä Fibre’s customers, covering the value chain of pulp and sawn timber production, from the forest to the end products. Explore the latest issue here!

2025

METSÄ FIBRE CUSTOMER MAGAZINE

The bioproduct mill is a catalyst for innovations We are reducing our water usage Deeper customer collaboration through data

FIBRE

SAWN TIMBER 62–65 Do you know Nordic pine?

Contents

Nordic pine is adapted to harsh conditions. Sustainable and responsibly produced pine sawn timber is suitable for various end-uses. 66–69 Safety first, every day Lappeenranta sawmill has an excellent occupational safety record. Learn more about the sawmill and its safety practises. 70–73 Wood is the material for traditions and innovations Wood is an important part of Japan’s culture and architectural history. Although traditions play a strong role in wood construction, there is also room for innovation. 74–77 Our customer: Puidukoda Estonian Puidukoda is growing, spurred on by high-quality Nordic sawn timber. 78–81 Data-driven insights for closer customer collaboration Timber Performance Analysis service offers new ways to deepen collaboration with sawn timber customers. 82–83 Premium service for sawn timber customers Metsä Fibre has integrated its services for sawn timber customers into a unified service package.

PULP 32–37 The first year of the Kemi bioproduct mill

The Kemi bioproduct mill’s launch phase was interrupted by a gas explosion. The damage was fixed efficiently, and the mill’s second year of operation is starting from an excellent position. 38–43 Every drop counts Water is an important resource for our pulp and bioproduct mills, where modern technology and closed water loops enable its efficient use. 44–46 New lignin product makes concrete more flexible We are developing a new lignin product that can replace the fossil-based chemicals used in concrete production. 47–49 From emissions to raw material Carbon dioxide from the forest industry could be utilised as a raw material for renewable energy. 50–53 Global softwood pulp supply on the decline The production of softwood pulp will face increasing environmental and regulatory pressure. Only the industry’s most competitive operators will be able to benefit from the resulting decrease in global supply. 54–57 Our customer: Renova Portuguese company Renova has transformed toilet paper from a functional necessity into a desirable item. 58–59 Premium service for pulp customers Metsä Fibre has integrated its services for pulp customers into a unified service package.

6–7 A word from the CEO Customer focus and sustainability are at the core of our operations. 8–11 Sawmills and pulp mills work hand in hand Collaboration between sawmills and pulp mills ensures efficient use of wood raw material. 12–18 Aiming towards more vibrant forests As a result of regenerative forestry, Finnish forests will pass on to the future generations with greater biodiversity and climate-resistance. 19 Greetings from Sales We build growth together with our customers.

20–23 Data – the key to efficient operations

Every day, a massive amount of data is generated at our production plants. Our experts explain how we analyse this data and use it to benefit our customers. 24–27 Innovations flourish in the industrial ecosystem Our bioproduct mill concept and industrial ecosystem function as a growth platform for new innovations and sustainable growth. 28–29 We build a more sustainable tomorrow We continue to strive towards our 2030 sustainability goals. In future, we may also set common goals with our customers.

84–85 Metsä Fibre Get to know our sales organisation. 86 Facts Metsä Fibre’s key numbers.

Fibre Customer Magazine 2025 I Metsä Fibre, PL 30, 02020 Metsä I www.metsagroup.com/metsafibre I Publisher: Metsä Fibre I Editor-in-Chief: Tiina Tassi I Editorial Board: Mikael Lagerblom, Kustaa Laine, Tom Nickull, Sami Peltoniemi, Katri Rajava, Tommi Saarnisto, Leena Salminen, Anna Suurnäkki, Harri Vertanen, Kaija Viljakainen I Production: Hube Helsinki I Account Director: Sanna Laakkonen I Producer: Maria Latokartano Layout: Hube Helsinki I Cover Photo: Metsä Fibre I Printing Press: PunaMusta Oy I ISSN: 2670-0050 (print), 2670-3831 (online) The magazine is published in Finnish, English and Chinese I Address Source: Metsä Fibre’s customer and stakeholder register. If you do not wish to receive the magazine, please send us an email: metsafibre.marketing@metsagroup.com

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Customer focus and sustainability are at the core of our operations

We updated our strategy this spring, continuing to align it with our core values: reliability, cooperation, renewal and responsible profitability. We want to ensure our customers can fully benefit from our products, services and sustainability to strengthen their competitiveness. Our strategy is based on four cornerstones: customer focus, safe and efficient operations, motivated people and sustainable solutions. These cornerstones guide the continued development of our operations and help us support our customers better in their own business. Metsä Fibre’s goal is to be the customers’ preferred partner and the most profitable producer of bioproducts for sustainable growth. Profitability ensures our renewal and for our customers, it ensures high-quality deliveries in the long run. Our modern and environmentally efficient production facilities, extensive expertise and culture of continuous development support our goal to be a strong operator with reliable deliveries in all main markets. We have committed ourselves to continuously improving the responsibility and sustainability of our operations throughout the value chain, from forest management to wood supply, production and customer deliveries. Every day we work to mitigate climate change, promote circular economy and offer fossil-free solutions to the market. Metsä Group has launched a regenerative forestry model with the aim of strengthening the biodiversity and vitality of our forests. We have actively developed new fibre products and we utilise production side streams for valuable bioproducts. Our new bioproduct mills operate without fossil fuels, and we are committed to fully fossil fuel-free production by 2030. We want to make the results of our responsibility work available to our customers to help them strengthen their competitiveness. One example of how we do this is Metsä Experience visits, which are a unique opportunity for our customers and their customers to learn about regenerative forestry and our sustainable industrial production. During these tours, visitors can see for themselves how we ensure responsible and sustainable operations throughout the value chain, as well as the concrete actions taken to ensure this. This year we combined our two customer magazines into one. The sawmill and pulp industry form a tight entity and create significant synergies. By combining the magazines, we can present our operations in a clearer manner and highlight the strengths of these synergies. At the same time, it will give our customers a more comprehensive picture of our responsible and efficient operations. I want to thank our customers for collaborating with us and for trusting us. We wish everyone a successful 2025.

Ismo Nousiainen CEO, Metsä Fibre

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Sawmills and pulp mills work hand in hand A sawmill processes logs into sawn timber and a pulp mill processes pulpwood into pulp, other bioproducts and renewable energy. Collaboration between these production plants ensure efficient use of wood raw material.

Get to know our Rauma mills.

Text: Antti Kivimäki, Maria Latokartano Photos: Metsä Fibre

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“All wood raw material arriving at the site is utilised. Nothing is left unused.”

Johanna Harjula

Turpentine is used as a raw material for perfumes and on its own as a solvent, among other things. Tall oil can be used as a binding agent in products such as cleansers and glues. “In Rauma, the closest tall oil refinery is Forchem, operating next to Metsä Fibre’s Rauma mills. The company refines the tall oil into additives that can be used to replace fossil fuels. The additives can then be used in paints, coatings and printer ink,” says Ikonen.

The entire tree is put to use

At Metsä Fibre’s Rauma mills, the sawmill and pulp mill are located just a few hundred metres from each other. Their close proximity enables efficient synergies between the production plants. The Rauma sawmill focuses on producing dried sawn timber that meets the exacting standards needed for customer products in the component and carpentry industries. Pieces left over from production are turned into wood chips for the pulp mill. The bark and sawdust are used as sources of bioenergy. “All wood raw material arriving at the site is utilised. Nothing is left unused,” says Johanna Harjula , Mill Manager at Rauma sawmill. Fresh sawmill wood chips of consistent quality are excellent raw material for pulp production. “The chips travel from the sawmill along a conveyor without having to be loaded onto trucks. This is resource efficiency at its best,” says Jaakko Ikonen , Mill Manager at Rauma pulp mill.

We produce more electricity than we use

The pulp production process also generates a significant surplus of renewable energy. The Rauma pulp mill’s electricity self-sufficiency rate is 180 per cent. This means that the mill produces nearly twice as much electricity as it needs. Metsä Fibre’s most modern pulp mills have an even higher degree of energy self-sufficiency. For example, the Kemi bioproduct mill has an astounding 250 per cent self- sufficiency rate. The pulp mill uses some of the energy in its own processes, but there is plenty left over for other purposes as well. For example, the pulp mill supplies the sawmill with 100% of the electricity it needs, plus the heat energy to dry the sawn timber. Metsä Fibre’s operations are based on the sustainable use of raw materials and resource-efficient production. The company aims for all of its production facilities to be waste- free and fossil fuel-free by 2030. •

In 2023 the Finnish forest industry used 57.8 million cubic metres of domestic raw wood. 1 The wood used by industry is mainly harvested for logs or pulpwood. The classification into logs or pulpwood determines where the wood will be refined. In rough terms, logs are raw material for sawmills and pulpwood is raw material for pulp mills. “Thanks to collaboration between pulp and bioproduct mills and sawmills, Finland uses its forests as resource- efficiently as possible. The pulp industry refines pulpwood that, due to its small diameter, is not suitable for sawn timber production. The pulp industry also utilises byproducts from sawmills, that is, the parts of the trunk that cannot be refined into sawn timber,” says Jani Riissanen , SVP, Wood Trade and Forest Services at Metsä Group.

their natural development. The sapling stand is maintained after the regeneration of the forest. Next, one to three thinning cuts are made, followed by a regeneration cut at the end of the rotation period. Generally, only pulpwood is acquired from the first thinning. In regeneration felling, 70–90 per cent of the total felling volume can be logs. Logs and pulpwood are separated according to the diameter of the trunk and its quality. A sufficiently straight trunk section with a crown diameter of at least 15 centimetres is suitable for logs. Pulpwood consists of trees that do not fulfil the diameter and quality requirements for logs. Trunks with crooked growth or large branches may downgrade even a sturdy tree from the log category to the pulpwood category. Pulpwood is also acquired from thinning cuts and the tops of trees that reach the required height for logs. “The separation into logs and pulpwood starts at the harvesting stage. Harvesters know how to lay off and buck, i.e. cut the trunk so that it can be utilised as thoroughly as possible to maximise its value,” says Riissanen.

From pulpwood to pulp, bioenergy and other bioproducts

The wood chips used as raw material in the pulp process are rectangular and approximately 30–40 millimetres long. In addition to pulp, they consist of hemicellulose, lignin and extractive agents. The wood chips are boiled in a cooking chemical to dissolve the lignin and extractive agents that bind the fibres together. The fibres can then be restored as undamaged as possible. In the process, about half of the wood raw material is processed into pulp, which serves as the raw material for paperboard, tissue and printing paper and speciality products. The other half is used to produce other bioproducts, such as electricity, energy, turpentine and tall oil that can replace fossil- based raw materials in several end-uses.

The value is maximised during logging

In Finnish forestry, periodic cover forestry prevails. This means that forests are managed in repeated cycles that mimic

1 Official Statistics of Finland (OSF): Wood consumption [online publication]. Helsinki: Natural Resources Institute Finland.

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Read more about regenerative forestry.

Aiming towards more vibrant forests

Metsä Group’s newly launched regenerative forestry makes best practices for enhancing natural conditions the standard in forestry. As a result, Finland’s forests will be passed on to future generations with greater biodiversity and climate-resilient.

Text: Maria Latokartano Photos: Metsä Group

Climate change and related biodiversity loss are among the most significant risks threatening the global economy and people’s livelihoods. For example, the UN has estimated that more than half of the world’s Gross Domestic Product (GDP) is dependent on nature.1 “People can use nature in two different ways: either by completely replacing what exists or by building production that works with the original ecosystem. The first land use method has dominated globally, leading to many ecological challenges,” says Timo Lehesvirta , Leading Nature Expert, Metsä Group. Metsä Group, which includes Metsä Fibre, is committed to operating in ways that both mitigate climate change and help adapt to it. The foundation of the regenerative forestry launched by the company in spring 2023 is that forests are utilised in a manner that supports ecosystems and biodiversity.

Preparing for climate change

While strengthening the vitality and diversity of the forest ecosystem, regenerative forestry helps forests adapt to climate change. In Finland, average temperatures are predicted to rise faster than the global average. According to some studies, by the end of 2100, Finland needs to prepare for a climate that could be up to 6–9 degrees Celcius warmer than it is currently. 2 This year’s seedling stands will mature in approximately 80 years, when our climate will likely be very different from the current one. This means that we have to prepare for change now. “For us, regenerative forestry is a way to prepare for what’s coming. At the same time, it sends a signal to our customers: we are reacting now to safeguard the availability of raw wood material and to keep Finland forested,” says Vesa Junnikkala, Director of Sustainability, Wood Supply and Forest Services at Metsä Group.

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Strengthening the entire forest ecosystem

Regenerative forestry is centred around a forest ecosystem that offers benefits, also called ecosystem services, to people. In addition to wood raw material, ecosystem services include berry and mushroom crops, recreational activities and carbon sequestration. Forests also have the ability to purify water and air, and to slow down soil erosion. Instead of trying to maximise an individual ecosystem service, regenerative forestry tries to strengthen the state of the forest ecosystem as a whole. “Overall optimisation helps us ensure the greatest possible diversity of the forest ecosystem so that future generations have access to its full added-value potential. In addition to wood production this includes carbon sinks, pollination services, berry crops and clean water,” says Lehesvirta. On a practical level, overall optimisation involves a group of forest and nature management practices that are already partly used in Finnish forestry. “Finnish forestry is high quality as it is. We’re not reinventing the wheel but aiming to bring the best nature-boosting practices into mainstream forestry.”

Informing consumers about the environmental impact

Verifying positive change is a key principle of regenerative forestry. Metsä Group is developing a set of measurements which help to observe the change in the state of nature. When measurements are repeated after a certain period of time, they reveal the direction in which biodiversity in the area has evolved. Metsä Group aims to have reliable, measured data on the state of the forest resources and its changes by 2030. The company is developing commensurate tracking and verification methods through comprehensive collaboration in phases so that the verified results also reach consumers. “We’re an internationally significant player. This means our actions matter. Regenerative forestry is our way of ensuring that the total impact of using Nordic wood is as positive and as large as possible,” says Junnikkala.

DEFORESTATION means destroying forests to use the land for other purposes. The EU has aimed to minimise forest clearing for agricultural use with the deforestation regulation. BIODIVERSITY LOSS refers to the decline in species and overall biodiversity due to human activities. This includes the endangerment and potential extinction of species.

Metsä Group Plus service puts principles into practice

Metsä Group launched its new Metsä Group Plus service in the summer of 2023. It is a forest management model that utilises the principles of regenerative forestry. The model is targeted for owner-members of Metsä Group’s parent company, Metsäliitto Cooperative. Measures that are more comprehensive than current practices and that support and improve the diversity of forests are agreed together with the forest owner in connection with wood purchases or orders for young stand management. The reach of the measures in the Metsä Group Plus service is remarkable, as Metsäliitto Cooperative’s owner-members own approximately half of Finland’s private forests. •

1 Kemper & Pathak. 2021. The business case for nature. World Bank Blogs. 2 Parviainen et al. 2010. Finland’s Forests in Changing Climate. Finnish Forest Research Institute.

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This is how we practise regenerative forestry

Metsä Group is committed to the principles of regenerative forestry. Regenerative forestry means the coexistence of economic growth and the strengthening of natural capital.

Text: Metsä Fibre Image: Sparksof

Forests for species dependent on burned forest areas Special plans for special

Supporting the native species in herb-rich forests Variety in forest structure Buffer zones along waterways

species and areas Protecting valuable

Native tree species and an increase in mixed forests More decaying wood

biotopes Focus on peatlands

Retaining old trees

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Building growth together with our customers

PRACTISING REGENERATIVE FORESTRY

1. Native tree species and an increase in mixed forests

6. Retaining old trees

Species native to Finland – i.e. spruce, pine, birch and aspen – are used for industrial purposes. Regenerative forestry diversifies forests by growing birch in coniferous forests and spruce and pine in the same forest. Rarer tree species such as goat willow, alder, bird cherry, rowan and temperate deciduous trees are not used commercially but are left standing to support natural diversity.

Old trees are left standing because they form a habitat for many essential species. Living retention trees left untouched in forests will grow old and decay with time.

A customer-oriented approach and long-term relationships are key as Metsä Fibre seeks sustainable growth and strengthens its leading position in the global softwood pulp market. Rather than looking for short-term wins, we believe that long-term collaboration will lead to the most profitable result for us and our customers. Our company’s strengths lie in high-quality pulp, sawn timber and other bioproducts made from Nordic wood. We collaborate closely with our customers to ensure our products suit their purposes and processes. Our new bioproduct mill in Kemi and modern pine sawmill in Rauma bring additional capacity to the market so that our customers can continue growing their businesses. In terms of pulp, we have a strong market position in Europe and Asia and we are growing our presence in the United States. In the future, we will meet increasing customer demand with larger volumes. Challenges that local pulp producers face, such as issues with the availability of raw materials and capacity cuts, have created a lack of supply and opened up an opportunity for us to strengthen our position in the market. While economic cycles impact the global pulp market, in the long term we expect the demand for pulp to grow steadily, especially with regard to tissue paper and cardboard packaging as well as specialty papers. This view is supported by global megatrends. In particular, population growth, urbanisation and increasing purchasing power in developing countries as well as an interest in decreasing the use of fossil-based raw materials are driving increased consumption of tissue paper and packaging materials. In sawn timber, we have customers in Finland, elsewhere in Europe, the Middle East, Africa and Asia. We are happy to see strong interest and competence in timber construction, particularly in the Japanese market, where we deliver an increasing number of high-quality sawn timber products. Elsewhere in the world, the recovery of construction and expanding environmental awareness will increase the amount of timber construction; in turn, this will lead to increased demand for sawn timber. Thanks to our modern mills and sawmills, we can offer even larger production volumes to all markets. Our production is founded on responsibility and sustainability. In accordance with our 2030 sustainability targets, we are aiming for completely fossil fuel-free production. Our Kemi and Äänekoski bioproduct mills as well as our Rauma sawmill have already achieved this goal. We are also developing a wastewater discharge-free pulp mill concept, promoting carbon-neutral logistics solutions in close collaboration with our partners, and continuously improving the environmental efficiency of our operations. The significance of sustainability in customer collaboration will be highlighted even further in the future. Our goal is to be a global frontrunner in reducing fossil CO2 emissions and the world’s leading producer of softwood pulp, with a strong focus on long-term customer relationships.

7. Burned forest areas for species dependent on them

After a forest fire, charred wood and litter attract species typical of the area. Such forest sites can also be created artificially by burning trees under supervision.

AN EXPERIENCED GLOBAL SALES PROFESSIONAL

2. More decaying wood

We leave decaying wood in forests as a habitat for the natural predators of destructive insects and for endangered species. In felling sites, we create decaying wood with retention trees which are left to grow, die and decay in the forest. We also create high biodiversity stumps by cutting trees at a height of two to five metres. In this way, we get decaying wood and hollow trees in forests where they would otherwise be rare.

8. Special plans for special species and areas

Mikko Antsalo, SVP, Sales and Marketing at Metsä Fibre, has extensive experience of sales management in the forest industry. Antsalo started out in paper industry sales. During his career, he has worked in New York, Munich and Düsseldorf, among other places. Before transferring to Metsä Fibre, he was responsible for sales and marketing in Stora Enso’s paper division.

Certain species prefer very specific living conditions, such as dry and sunlit ridge areas. These special sites, as well as individual occurrences of species, are taken into account and protected by special measures when necessary. We also make it easier for species to move to new habitats through area-level planning and by developing diversity networks.

3. Supporting native species in herb-rich forests

9. Protecting valuable biotopes

Herb-rich forests are valuable natural sites containing many species that cannot be found elsewhere. Nature management is therefore favoured in herb-rich forests to ensure that the living conditions of these species are conserved and improved.

Valuable environments, i.e. key biotopes, are left untouched or managed in accordance with the needs of the species living there. Such environments include areas with running water and springs, stony ground and rocky sites as well as steep bluffs and forest lying directly underneath.

4. Variety in forest structure

10. Focus on peatlands

We maintain the structural variability of forests. A variable structure increases diversity as different species live in different kinds of forests. For this purpose, we leave retention trees, retention tree groups and protective thickets in forests. We use a variety of forest management methods and support cultivation that ensures the area remains covered by forest.

Peatlands form a massive carbon storage. The aim of peatland management is to ensure that the water resources remain balanced in the area in question. The goal is for the forest to grow, emissions to be as low as possible and peatlands to maintain their carbon storage capacity.

5. Buffer zones along waterways

Mikko Antsalo SVP, Sales and Marketing, Metsä Fibre

We leave buffer zones along waterways to safeguard the living conditions of species in shore areas and to absorb solid matter and nutrient washouts. The width of a buffer zone depends on the area in question. Different trees and species grow along different waterways. One typical shore tree species is common alder.

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Data – the key to efficient operations

Every day, a massive amount of data is generated at Metsä Fibre’s production plants. Our experts explain how we analyse this data and use it to benefit our customers.

Text: Maria Latokartano Photos: Metsä Fibre

says Veli-Matti Mäki , Development Manager at Metsä Fibre. “This means that we can take our customers’ final product requirements into account right from the harvesting site,” he adds.

Industrial efficiency is one of Metsä Fibre’s top priorities. Through this objective, which applies to the entire value chain, Metsä Fibre aims to improve competitiveness for the company and its customers alike. Improving industrial efficiency requires not only insight into the company’s business and processes but also the capacity and capability to process the data generated across the value chain. In addition to simulator programs and mathematical methods, Metsä Fibre uses artificial intelligence (AI) to analyse this data. AI enables more accurate and faster decisionmaking in production optimisation, for example.

Digital twin helps predict process development

Metsä Fibre’s modern mills are pioneers in data collection and use. For example, the Äänekoski bioproduct mill generates 37,000 pieces of measurement data every second. Data is collected on pulp flow, pH, temperature and other factors that affect pulp quality. The process data collected from the pulp process can be used to adjust the pressure or flow rate, or the amount of chemicals fed into the process, for example. A more advanced use of data is a digital twin – a virtual copy of the physical process. A digital twin enables smart process prediction by providing real-time information on the process. This makes exploring and analysing various scenarios possible without modifying the physical system. A digital twin predicts the development of a process and optimises it. “Thanks to the digital twin, operators can predict how a process will develop over the next three hours with the current settings. This information helps them adjust the settings to minimise deviations, allowing us to provide our customers with consistent quality pulp,” says Matti Toivonen , VP, Process Technology at Metsä Fibre.

Simulator program optimises log cutting

Metsä Fibre receives its wood raw material from Metsä Group’s wood procurement. The simulator program used by Metsä Group’s wood procurement is designed to forecast and guide the procurement process.The simulator program helps Metsä Group’s wood procurement optimise its processes and make sure the sawn timber refined from the wood raw material meets the customers’ needs as far as possible. “At sawmills, this is extremely important because the length or size of a log cannot be adjusted after it has been marked for cross-cutting. Therefore it is crucial that we can communicate to the wood procurement team which log parts and sizes are most valued by our sawn timber customers,”

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More effective use of data supports both customer satisfaction and environmental responsibility.

AI uses measurement data from sawing

Metsä Fibre’s sawmill technological innovations, such as self-learning AI, support more cost-efficient production. At the Rauma sawmill, a virtual fingerprint is created for every log based on the log’s size, shape and inner quality using laser measurement and log X-ray technology. In the sawing process, a log is identified based on its virtual fingerprint, after which AI recommends the best possible sawing method. “Log sorting and measurement generate an enormous amount of data. AI allows us to combine data generated by several measuring instruments, compile it in one place and use it to optimise production and logs,” says Jarkko Vihervuori, Senior Development Manager at Metsä Fibre’s Rauma sawmill. AI makes it possible to select individual logs from the stream of raw material and sort them into different quality categories, enabling Metsä Fibre to produce targeted product batches. This also improves the sawmill’s utilisation ratio since the use of every log is optimised. “From the customer’s perspective, this is important because we can now more precisely allocate the desired logs to the specific end product,” says Vihervuori.

combinations. In spreadsheet software, a calculation on this scale would take several days. Metsä Fibre uses linear multivariable optimisation for calculations. Data on sawn timber supply, production and demand is entered into the tool, which then calculates the best way to use the raw material. Next, the data is entered into the allocation tool used by Metsä Fibre’s sawn timber sales organisation. This tool shows the availability of different sawn timber products and is updated automatically when a batch is sold. The introduction of optimisation and allocation tools reflects the fundamental change that is taking place in Metsä Fibre’s sawmill business. Metsä Fibre’s production is now based on real customer demand instead of historical data or statistics. Consequently, the company is able to better serve its key customers by responding more quickly to changes in customer demand and by improving production security. The digitalisation of production and demand planning also improves the efficiency of raw material use and reduces the carbon footprint. “When we understand customer demand better, we can focus on producing products that meet the actual customer demand. At the same time, we can ramp down the manufacture of products with lower demand or a longer supply chain and larger carbon footprint,” says Mäki. Striving for industrial efficiency allows Metsä Fibre to respond better to market demands and optimise production, thereby enhancing the company’s competitiveness. At the same time, more effective use of data supports both customer satisfaction and environmental responsibility.•

Algorithms support sawn timber production and sale

If the full production potential of log raw material was specified and organised in a spreadsheet, it would encompass tens of thousands of rows. Choosing the best possible method for production optimisation requires a complex calculation with hundreds of thousands of different

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Innovations flourish in the industrial ecosystem

Metsä Fibre’s bioproduct mill concept and industrial ecosystem function as a growth platform for future bioproducts and sustainable growth.

Text: Maria Latokartano Photos: Metsä Fibre

When the planning of the Äänekoski bioproduct mill began in 2013, those involved in the project knew that the goal was to build more than just a mill. Metsä Fibre’s plan was to create a new bioproduct mill concept. The aim was to use all of the valuable wood raw material and refine the side streams generated by production into bioproducts with a high added value. At the same time, the mill’s energy and environmental efficiency would be further improved. The concept would create an industrial ecosystem – a network of partners operating near the mill – in which new bioproducts would be refined together with various industry players. Kaija Pehu-Lehtonen , who works at Metsä Group, has been part of developing the bioproduct mill concept since the beginning. “Nowadays, it’s possible that others have similar partnerships as well, so it’s not a unique concept in that sense. However, the trend started with our concept, and our good practices have also spread elsewhere.”

Full utilisation of raw materials and side streams

In 2017, when the Äänekoski bioproduct mill began operating, the integrated mill area was also home to Metsä Board’s board mill, Metsä Wood’s veneer mill, CMC manufacturer CP Kelco – which has since been sold to Nouryon Chemicals Finland – and Specialty Minerals Nordic, which produces additives for paper and board manufacturing. The ecosystem has since expanded with the addition of Metsä Fibre’s biogas and biopellet plant as well as Metsä Spring’s Kuura® and Muoto™ demo plants. Veolia’s biomethanol refinery will be completed in 2025, and construction is ongoing at Metsä Wood’s new Kerto® LVL plant as well Metsä Fibre’s lignin product demo plant. “The target of the bioproduct mill concept is to utilise 100 per cent of the wood raw material and production side streams, and we have achieved this goal. Our process generates no waste, and all side streams from production

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A UNIQUE BIOMETHANOL PLANT IN ÄÄNEKOSKI

“Our process generates no waste, and all side streams from production are utilised as efficiently as possible while minimising the environmental impact.”

The philosophy of the bioproduct mill concept convinced global operator Veolia to start refining crude methanol into biomethanol that fulfils the chemical industry’s quality standards.

Janne Rantanen

Metsä Fibre’s newest industrial ecosystem partner is the French-owned company Veolia, which has set up its first methanol refinery in the Äänekoski integrated mill area. Veolia, founded in 1853, is a global operator that offers solutions for water, waste and energy management. The company has 220,000 employees and in 2023 had a turnover of over EUR 45 billion. The refinery will be completed in 2025 and will produce biomethanol for the che- mical industry and transport sector from the crude methanol generated as a side stream at Metsä Fibre’s bioproduct mill. Janne Rantala , VP, Biofuels and Green Chemicals at Veolia, explains that Metsä Fibre was selected as their partner thanks to the company’s bioproduct mill concept. “In line with the bioproduct mill concept, partners are invited to work in close collaboration in the integrated mill area. This fits with Veolia’s way of operating.” The refinery uses ANDRITZ’s technology and is fully integrated with the bioproduct mill. For now, the plant is the only one of its kind in the world. It has the capacity to produce 12,000 tonnes of biomethanol annually and the value of the investment is EUR 50 million. The refinery removes impurities from crude methanol in a patented multi-phase distillation process and by extraction. Biomethanol is a basic raw material used in various applications by the chemical industry. Among other things, it is used as a fuel in road, maritime and air transpor- tation. Climate goals are expected to strengthen its demand. “In maritime transport, many large operators are currently investing in biomethanol- powered cargo vessels,” says Rantala.

are utilised as efficiently as possible while minimising the environmental impact,” says Janne Rantanen , VP, Mill Manager at the Äänekoski bioproduct mill. In addition to traditional bioproducts – that is pulp, turpentine, tall oil and bioenergy – the mill also produces product gas from bark and sulphuric acid from odorous gases. The ash generated by the mill and other solid side cuts are turned into fertilisers and excavation material. Not even the wastewater is wasted, as Metsä Fibre partners with Gasum to turn sewage sludge from wastewater processing into biogas and biopellets for biofuel.

A growth platform for innovations

Metsä Fibre’s goal is to utilise all production side streams by 2030. Even though Äänekoski achieved this goal earlier, there is always more that can be done. “You can always do more and develop products with an even higher added value. In addition to side streams, we are also examining our main product, pulp fibre, and looking for new ways to refine it even further,” says Pehu-Lehtonen. Metsä Fibre is still interested in expanding its partner network in the integrated mill area in a way that offers each contract partner the best possible synergy benefits. According to Pehu-Lehtonen, a large integrated mill is the best possible environment for development work. This is because many commodities – such as water, steam and energy – can be produced for shared use and, for example, secondary heat can be utilised efficiently. A developing industrial ecosystem is also an inspiring work environment. During his career, Rantanen has seen its development since the days of the old pulp mill that preceded the bioproduct mill. “It has been wonderful to see how a network of different operators has developed around it, step by step.” •

INCREASING DEMAND FOR BIOMETHANOL

In addition to biomethanol, the process generates bioethanol and ammonium sulphate, which can be used as a fertiliser, for example, at wastewater treatment plants or in agriculture. Contract negotiations regarding the end user of Veolia’s biomethanol are currently ongoing. For now, Veolia has not excluded any operators from the negotiations. “We are discussing with various interested parties right now.” For now, global biomethanol production volumes remain low, but Rantala expects tightening environmental regulations to drive up demand that will in turn enable strong production growth. “According to projections, the global production of methanol will grow from 100 million tonnes to 500 million tonnes by 2050. Part of this growth will be biomethanol.” Veolia’s long-term goal is to build a unit that is larger than the Äänekoski refinery. “While a significant investment, the Äänekoski plant is just a pilot plant. It will help us gain experience from the technology, commercialisation and pricing. I believe that in a year, we will have an understanding of how we want to proceed.” •

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Discover our sustainability targets for 2030.

We are building a more sustainable tomorrow

SOCIAL RESPONSIBILITY

Metsä Fibre’s corporate culture emphasises fairness and respect both for other people and diversity. Equality is promoted, for instance through an anonymous recruitment process. “In 2023, the number of anonymous recruitments exceeded our target – 79 per cent of all open recruitments were conducted anonymously,” says Ruottinen. Metsä Fibre invests heavily in occupational well-being and safety, and the company has a zero accidents culture. “Our objective of zero accidents may be ambitious, but we have improved occupational safety systematically for over 15 years, so we are well equipped to reach our goal. Improving safety requires a goal-oriented approach and our employees’ full commitment to the company’s safety principles.” In 2024, Metsä Fibre introduced personal safety promises. The purpose of personal safety promises is to commit the work community to a new kind of safety approach and promote a safer working culture.

The collaboration agreements aim, among other things, to reduce carbon dioxide emissions from maritime transport and the entire value chain. For example, contracts with Royal Wagenborg, ANDRITZ and Navalis Shipping target a 30% reduction in emissions through technical improvements to the fleet, route optimisation and energy- efficient solutions. Metsä Group’s wood procurement also aims to reduce carbon dioxide emissions from wood raw material deliveries by 30%.

Metsä Fibre continues to strive towards its 2030 sustainability goals. In future, the company may also set common goals with its customers.

Text: Silja Eisto Illustrations: Metsä Group

The collaboration agreements aim to reduce carbon dioxide emissions across the entire value chain.

Metsä Group, which includes Metsä Fibre, set new sustain- ability goals for 2030 in early 2023. The goals are grouped into three categories based on the ESG criteria of responsible business: environmental responsibility, social responsibility and governance of responsibility.

points to promote natural diversity. These include, for example burning groups of retention trees, maintenance of herb-rich forests and ridge areas, and water protection measures. “In 2023 we launched the concept of regenerative forestry and the Metsä Group Plus service, which will boost the number of actions taken to support forest biodiversity. Metsä Group Plus is intended for all owner-members of Metsä Group, and it increases the scale and impact of protective measures significantly,” says Marko Ruottinen, Sustainability Manager at Metsä Fibre. The environmental goals for production focus on resource efficiency and climate impacts. By the end of 2030, Metsä Fibre will no longer use fossil fuels (Scope 1) or buy fossil-based energy (Scope 2). This means that Metsä Fibre’s production will generate zero fossil carbon dioxide emissions. “We have prepared site-specific roadmaps for all our production plants in order to minimise our Scope 1 and 2 emissions. Half of our mills have already reached the target. The rest are making further investments to become independent from fossil fuels.” The resource efficiency of production plants, including energy and water efficiency, is being constantly improved through active development and investments according to the site-specific roadmaps. “Investments contribute significantly to the achievement of our goals. Resource efficiency has been key in the design of new mills from the very beginning. One important step towards reaching our resource efficiency targets was the start-up of the Kemi bioproduct mill in autumn 2023.”

WORK CONTINUES Metsä Group updates its sustainability goals regularly. The update process is guided by the development of Metsä Group’s internal sustainability and responsibility work, stakeholders’ ever-stricter requirements and the progress made towards achieving previous goals. “In the near future, we will sharpen our goals for 2030 and expand, for example, our climate goals to further reduce emissions from the entire supply chain,” says Ruottinen. In line with its strategy, Metsä Fibre strives to be the customers’ preferred partner. This requires constant improvement in all areas of operation. “Our objective is to be a responsible and ethical operator as our actions and emission reductions have a direct impact on our customers’ sustainability goals,” explains Ruottinen. The next step could be setting common goals with customers. There have already been discussions on this subject. •

GOVERNANCE OF RESPONSIBILITY

ENVIRONMENTAL RESPONSIBILITY

Responsibility and its governance are at the core of Metsä Fibre’s strategy and daily operations. All employees, not just management, are responsible for the realisation and monitoring of the company’s sustainability and responsibility goals. Every employee contributes to the promotion of responsibility, and Metsä Fibre’s aim is to set a personal responsibility goal for each employee. Metsä Fibre’s operations are governed by ethical business practices and the company’s Code of Conduct. Metsä Fibre also improves responsibility in collaboration with its partners. Ruottinen highlights agreements and common goals set with Metsä Group’s partners as some of the greatest achievements of 2023.

Metsä Group aims to protect natural diversity by diversifying the forest tree population, favouring mixed forests and conserving the habitats of endangered species. By 2030, Metsä Group intends to leave retention trees and high biodiversity stumps in all regeneration cutting areas. Retention trees are trees left standing in a forest and high biodiversity stumps are trees cut at a height of two to five metres. These methods increase the volume of decaying wood in forests, which benefits many species. Mixed forests will be increased so that spruce will no longer be the only seedling tree species after 2030. In addition, the company aims to implement 10,000 action

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PULP

The first year of the Kemi bioproduct mill 32 Every drop counts 38 New lignin product makes concrete more flexible 44 From emissions to raw material 47 Global softwood pulp supply on the decline 50 Our customer: Renova 54 Premium service for pulp customers 58

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The first year of the Kemi bioproduct mill

Take a virtual tour at the Kemi bio- product mill.

The Kemi bioproduct mill’s first year of operation had a dramatic twist as the launch phase was interrupted by a gas explosion in March 2024. The damage was fixed efficiently and safely, and the mill’s second year of operation has got off to a smooth start.

Text: Silja Eisto, Maria Latokartano Photos: Metsä Fibre

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Follow the live stream from the Kemi bio- product mill.

Sustainble solutions already played a big role during the bioproduct mill’s planning phase.

The Kemi bioproduct mill, Metsä Fibre’s largest ever investment, began operating in September 2023. The mill operates completely fossil fuel-free and it is a frontrunner in environmental, energy and material efficiency. In addition to pulp, the mill produces various other bioproducts and generates biobased electricity at approximately 2.5 times its own consumption. The mill also functions as a platform for the manufacture of new fibre products that are still in development phase. According to Metsä Fibre’s CEO Ismo Nousiainen , responsibility and sustainable solutions already played a big role during the bioproduct mill’s planning phase. “Our customers need increasingly sustainable delivery chains to gain competitive advantages, and we want to support this development.” The Kemi bioproduct mill has been built using Best Available Techniques (BAT) and partly with more advanced BAT+ techniques. Examples of the mill’s modern solutions include electric woodyard cranes that unload wood from trains and lorries autonomously with the help of AI and machine vision. The mill’s wastewater is treated in a three-step process. As a result, wastewater emissions are significantly lower than the limit in the environmental licence for the old Kemi pulp mill despite the new mill’s higher production capacity. Two thirds of the raw wood used by the mill is transported by electric trains, which reduces the carbon dioxide emissions of wood supply. Metsä Fibre is also aiming to reduce the carbon dioxide emissions created by lorries transporting wood products by 30 per cent by 2030.

The start-up phase calls for team effort

According to Pekka Kittilä , Mill Manager at the Kemi bioproduct mill, the planning, building and commissioning of the bioproduct mill has been a unique project. “After a successful start, our goal has been to increase the efficiency of the mill, achieve stable production and ensure the quality of the produced pulp.” Kittilä says that the first year of operation has been marked by learning new things and efficient teamwork. “When you are fine-tuning a process and increasing production efficiency, the competence of and teamwork between your employees and equipment suppliers play an important role. We have an incredibly skilled and professional team with strong process know-how from the former mill. In addition, we can use the knowledge of experts at our other mills.” Kittilä also thinks that having been able to keep the quality and purity of the pulp on a good level is a significant success.

Explosion cut back on deliveries

In March 2024, during the start-up phase of the mill, there was a gas explosion at the evaporation plant in connection with welding work. The explosion caused large-scale material damage, and three people were mildly exposed to hydrogen sulphide gas.

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