World-class lightweight coated

boards with innovative technology

Per Bülund, Vice President Technology & Projects, Stora Enso

The renewable materials company – our target

Everything that’s made with fossil-based materials

today can be made from a tree tomorrow

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30 countries, 26,000 stories

• A leading provider of renewable solutions

• Some 26,000 employees in 30 countries

• Sales in 2017: EUR 10.0 billion

• Shares listed on Nasdaq in Helsinki and Stockholm

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Portfolio aimed at growth

Consumer

Board –

Expansion of

relative

market share

in profitable

niches

Packaging

Solutions –

Selective

profitable

growth

Wood

Products –

Accelerating

growth

Paper –

Strategy for

maximum

cash

generation

+Biomaterials –

Strengthening

current

business and

creating new

profitable

growth

+ ++

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Division Consumer BoardDivision Consumer Board

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High quality board for premium consumer applicationsA broad range of solutions to fit customer demands

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Consumer Board divisionSolutions, products and services

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Liquid Packaging Food Service Board General Packaging Cigarette Graphical

Chocolate and

confectionary

Cosmetics and

luxury

Pharmaceuticals Food packaging Drinks, wines and

spirits

Replacing non-renewables with fiber-based solutions today and tomorrow

• Cans, tins and glass jars for vegetables, soups, and pet food replaced by carton packaging

• Plastics in food service and fast food packages replaced by paperboard materials

• Plastic food trays replaced by fiber-based ones

• Fossil polymers in laminates replaced by green polymers or micro fibrillated cellulose (MFC) film

• In the future also

− PET-bottled water replaced by beverage cartons

− PET and glass bottles replaced by bottle-shaped beverage cartons

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First cable top cartons from Natura Life by Stora Enso paperboard

• Retain the natural brown colour of the wood fibres and has a visible fibre structure.

• Genuinely different, sustainable and authentic package to meet demands of the growing trends in ethical, ecological and organic products.

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Access to forest land

State-of-the-art mill design

Growing Chinese board

market

Access to infrastructure Favorable economic zone

Unique location

Why build a greenfield mill in China?

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Beihai Mill Milestones

SE announced

decision to

build a world-

class consumer

board and pulp

mill in China

Three Joint

Ventures set up

Acquired state

land use and

construction

permits

Nov 15: Kicked

off mill

construction

June: NDRC

approval and

start of BCTMP

civil works

Start-up of

Beihai Mill

May 24: Stock

on wire

May 26: Board

on reel

Dec 9: BCTMP

started

2012 2013 2014 2015 2016.05. 2016.12.

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June 13:

Received the

approval from

MOFCOM and

NDRC

Polyethylene

(PE) coating

line started

2017.10.

* MOFCOM: Ministry of Commerce * NDRC: National Development and Reform Commission

* BCTMP Bleached Chemical Thermo-Mechanical Pulp * PE: Polyethylene

2016.10.

Start of PE

Coating Plant

civil works

Beih

ai m

illw

illb

ehere

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High safety standards under challenging circumstances

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18.3 Million hours worked with only one recorded LTA

A maximum of 5,500 persons on site at any given time

Full PPE required when entering the site Tool box meeting prior to daily work commencement

Video

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85,000 hectares

of sustainable

eucalyptus

plantations

managed by

Stora Enso

+ 200,000 t/a

Chemi thermo mechanical pulp

(CTMP) mill

450,000 t/a

state-of-the-art paperboard

machine

Auxiliary facilities

including power plant,

fresh water treatment,

effluent Treatment and

necessary

infrastructure

Self-sufficiency

in energy

Total project investment of EUR 1.6

billion, excluding working capital and

existing investment

Project summary

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Highest point: 120m

124 344 m³ concrete

8 366 tons steel

800 000 m cable

120 208 m piping

80 000 documents

5 500 contractors on site

Total area of site 175 ha

3 gates

616, 097m² of buildings

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Stora Enso BM 1 - A world-class liquid packaging board making line

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Grades:

LPB, FBB, SBS, cupboard

Basis weight:

180 – 330 g/m²

Production speed:

1,000 m/min

Width: reel / wire

6,400 mm / 7,000 mm

Production:

1,833 t/d LPB 205 g/m²

1,843 t/d FBB 250 g/m²

Reliability and stability

for

maximum production

Integrated automation solutions to

maximize mill’s

profitability

Linear reel first of it’s kind in

China

BCTMP Plant

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Capacity

650 adt/d

Hydraulic capacity

725 adt/d

Board mill milestones

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2016 2017 2018

• May: Beihai Mill officially started up

• June: Inauguration seremony

• August: Certifications: ISO 9001, ISO14001,

OHSAS18001, FSSC22000, Food packaging

certification, FSC chain-of-custody, PEFC and

CFCC

• November: BCTMP plant inaugurated.

• December: 1st commercial delivery in good

quality FBB product

• April: 1st delivery of LPB

product

• November: design capacity

450,000 tons achieved

• December: the PE plant is

inaugurated.

• Q4: EBITDA positive

according to the plan

• March: “ater resource

saving company in

Guangxi award

• June: Award of Eco-

civilization in “13th China

corporate social

responsibility summit”

Beihai BM1 start-up curve

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Note: Design capacity exceeded within 17 months from start-up

Incidents and observations in 2018 YTD

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Co-operation between Stora Enso and Valmet

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BCTMP

• One LTA with Valmet startup team.

• Slow actions with problem solving.

• Performance guarantees not yet fulfilled.

Board machine

• Great safety awareness by Valmet – one LTA on SE side.

• Highly professional start/ramp up team pushing for mutual targets.

• Focused after start support agreed with Valmet. Good solutions.

• Strong quality and productivity support from Valmet.

• Continuous cooperation and follow up.

World class manufacturing at Beihai Mill

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Major products of Beihai Mill

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Coated Unbleached Kraft Board

KarneoliTM

Noodle Cup Board

Arctic ClamTM

General Packaging Board

Arctic leopardTM

Cup Stock Board

Sky FallTM

Cigarette Board

Koppar SilkTM

Liquid Packaging Board

SkyGuardTM

LPB, Liquid Packaging

Board is made from

bleached and

unbleached chemical

pulp and CTMP pulp.

LPB is polymer coated

and/or alum foil-

laminated for long shelf

life beverages.

FBB, Folding Box board,

for demanding cigarette

packaging applications is

made of bleached

chemical pulp and

bleached CTMP. To

achieve the high quality

surface required pigment

coating is applied.

CUK (CKB), Coated

Unbleached Kraft is

mainly made of

unbleached chemical pulp.

To achieve a white surface,

it may be coated with

mineral pigments,

sometimes in combination

with a layer of bleached

fibers under this layer.

FSB, Food Service Board is

made from bleached

chemical pulp and small

amount bleached CTMP

(10-15%). The board is

polymer-coated and used

for paper cup production for

hot and cold beverages and

for food and non-food

packaging

The Stora Enso Best Team Award for Beihai in 2017 and 2018

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Beihai Mill today!

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