WaterLink 3/2011 - Kemira
WaterLink 3/2011 - Kemira
WaterLink 3/2011 - Kemira
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Creating the future<br />
Büchele believes in curiosity p. 6<br />
Bioethanol from Brazil<br />
Energy from sugar cane p. 8<br />
STAKEHOLDER MAGAZINE 3·<strong>2011</strong><br />
No paper without water<br />
Water is vital for the forest industry p. 12<br />
“Energy has<br />
become trendy”<br />
Elina Engman<br />
High-quality chemicals<br />
make strong board<br />
PAGE 20<br />
Why is Tekes<br />
interested in water?<br />
PAGE 26<br />
Cleantech Finland<br />
opens doors for<br />
clean technology<br />
PAGE 42
MY VIEW<br />
WATER makes life possible and offers<br />
immense business opportunities. Sweet water<br />
constitutes only 2.5 percent of the world’s<br />
water resources, and more than half of this<br />
sweet water is snow or ice. Only 1 percent of<br />
the world’s water resources is water that can<br />
be used untreated. A small water footprint<br />
will become an increasingly important competitive<br />
asset, and consumers are already<br />
paying more attention. To some extent, political<br />
decisions also support the consumption of<br />
energy-efficient and water-efficient products.<br />
nergy and water are closely interconnected.<br />
Energy is needed for making use<br />
of water, and water is used to produce<br />
and transfer energy. Some of the consumption<br />
is difficult for the end user to<br />
see or realize, because it is integrated<br />
into various processes. In practice, however,<br />
all industries need water in their<br />
production processes—for cooling or<br />
cleaning, for example.<br />
Technological development, restrictions on energy use and<br />
increasing interest in the water footprint have steered industry<br />
toward more ecological production. Prime examples of this are the<br />
manufacture of paper and cardboard and the production of pulp<br />
in Finland. Over the past five decades, the latter has more than tripled<br />
and the former has increased more than fivefold. Over the<br />
same period, wastewater loading from the pulp and paper industry<br />
has decreased to a fraction of what it used to be. Solid-particle<br />
loading, for example, has declined by 97 percent.<br />
“The accelerating pace<br />
of industrialization in<br />
developing markets<br />
is increasing water<br />
consumption, and water<br />
prices are reaching<br />
new heights.”<br />
In the 1970s, manufacturing a ton of pulp required 250 cubic<br />
meters of water. Today, a tenth of the water is enough. The amount<br />
of water required to produce a ton of newsprint has also decreased<br />
by nine-tenths, from 150 cubic meters. National water programs<br />
in the forest industry and other similar endeavors have enhanced<br />
this development (Read more: No paper without water on page 12.).<br />
Responsible use of scarce resources is a global necessity. Seven<br />
billion people need clean water. Moreover, the accelerating pace<br />
of industrialization in developing markets is increasing water consumption,<br />
and water prices are reaching new heights.<br />
<strong>Kemira</strong>’s expertise improves the availability of water. We know<br />
how to treat water and how to control chemical phenomena in<br />
industrial processes. This understanding and application of chemistry<br />
makes factories more cost-efficient. There is more water<br />
for everyone when water is used wisely and treated and recycled<br />
appropriately.<br />
Mikael Svedman<br />
Vice President, R&D and Technology, Paper<br />
MAREK SABOGAL<br />
2 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 3
content<br />
KEMIRA sponsored the <strong>2011</strong> PPI (Pulp & Paper International)<br />
Awards for pulp and paper industry companies.<br />
The winners of the ‘the chemical forest<br />
industry Oscar’ were announced in Brussels, Belgium,<br />
in November. This year’s winner of the Water<br />
Efficiency Award was Pio PAPPEL International’s unit<br />
in Prewitt, the United States. “The Water Efficiency<br />
Award is awarded in recognition of development<br />
work done in improving efficiency in water quality<br />
and quantity management at pulp and paper mills.<br />
We greatly appreciate having the honor of hosting<br />
this award because products and applications<br />
related to the management of water quality and<br />
volume are at the core of our strategy”, said Kenneth<br />
Nystén, SVP, head of Paper’s Printing & Writing<br />
customer segment, at the awards ceremony.<br />
1<br />
6<br />
4<br />
3<br />
SANNA MANDER<br />
5<br />
2<br />
GREEN, BLUE, GRAY. Producing each copy of <strong>WaterLink</strong> or a similar magazine consumes approximately one liter<br />
of water. This is its blue water footprint — the amount of water that evaporates during paper manufacture. The<br />
Water Footprint Network’s model also includes those for green and gray water. PAGES 12–19<br />
An attractive<br />
approach<br />
The clear strategy focus on the water<br />
business offers solid growth potential for<br />
decades and has made <strong>Kemira</strong> a better<br />
investment prospect. Q&A: Rauli Juva.<br />
page 34<br />
JOANNA MOORHOUSE<br />
”For all participants,<br />
water is a valuable<br />
resource that requires<br />
good management.<br />
Our goal is to reduce<br />
the make-up water<br />
requirement in the<br />
thermal bitumen<br />
recovery processes by<br />
30 percent.”<br />
Subir Bhattacharjee,<br />
PAGE 10<br />
CURTIS COMEAU<br />
The future is here<br />
The baton of <strong>Kemira</strong>’s strategic future is<br />
being passed from Harri Kerminen to Dr.<br />
Wolfgang Büchele in April. “I believe in curiosity;<br />
a curious attitude to people and things accelerates<br />
personal development,” says the new CEO.<br />
page 6<br />
Bioethanol boom<br />
Sugar cane can also be used for producing<br />
bioethanol, an important form of renewable<br />
energy. <strong>Kemira</strong>’s KemTalo Floc S technology<br />
enhances the safety and efficiency of the production<br />
process.<br />
page 8<br />
Nanjing calling<br />
China is topical. Next summer, <strong>Kemira</strong> will<br />
open a new production plant in the Nanjing<br />
Industrial Park. This local focus allows for<br />
customized solutions and short transport times.<br />
page 9<br />
1 3 5<br />
<strong>WaterLink</strong> is a magazine<br />
for <strong>Kemira</strong>’s stakeholders,<br />
published in Finnish and English three times a year.<br />
PUBLISHER: <strong>Kemira</strong> Oyj, www.kemira.com. Editor in<br />
Chief: Marie Lundgren, tel. +46 42 17 11 19.<br />
Crucial paper chemistry<br />
High-quality chemicals are essential for<br />
the German company Weig-Karton, one of<br />
the leading European manufacturers of recycled<br />
carton board. Its strong and durable products have<br />
excellent weight properties.<br />
page 20<br />
2 4 6<br />
PRODUCTION: Markkinointiviestintä Dialogi Ltd.<br />
www.dialogi.fi. Editors: Pia Sievinen and Arja Kulmala.<br />
Producer: Tarja Sinervo. ART DIRECTION: Jesper Vuori.<br />
Creative Director: Anneli Myller. SALES DIRECTOR:<br />
Maarit Pojanluoma. PRINTED BY: Forssa Print. ISSN 1797-<br />
Collaboration adds value<br />
When Unimin began collaborating with<br />
<strong>Kemira</strong>, it wanted to increase its market<br />
share in South America. The minerals company has<br />
now reached its goal while also improving its profitability<br />
and product quality.<br />
page 22<br />
Tekes chose SWEET<br />
Tekes is one of the main financiers of<br />
SWEET, the Center of Water Efficiency Excellence.<br />
Director General Veli-Pekka Saarnivaara tells<br />
us why now is the time to invest in water.<br />
page 26<br />
PS. Waterlink was awarded a silver medal in the international “Pearl Awards” show of the Custom Content Council in October in the category of “Best redesigns”.<br />
7738. PAPER: UPM Fine 120 g/m 2 and Edixion 250 g/m 2 .<br />
COVER PHOTO: Marek Sabogal. TRANSLATIONS: AAC<br />
Global. Please send your feedback to marie.lundgren@<br />
kemira.com. Subscriptions and changes of address can<br />
be made at: www.kemira.com/media.<br />
4 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 5
BRIEFING: IN HOUSE<br />
Dr. Büchele (PhD, Chemistry) has worked over 25<br />
years in chemical industries around the world.<br />
He has also been a member of <strong>Kemira</strong>’s Board<br />
of Directors since 2009. Goal? To foster <strong>Kemira</strong>’s<br />
strategy in service of clean water and solving customer<br />
problems. Enable <strong>Kemira</strong> and its people<br />
to grow into a leading water chemistry company<br />
worldwide. Motto? “Learn from the past”.<br />
*For each response to the survey, <strong>Kemira</strong> donated<br />
3 euros to Plan International to support children’s<br />
right to clean water, health and development<br />
through practical projects in different countries.<br />
Learn from the past,<br />
create the future<br />
The baton of <strong>Kemira</strong>’s strategic future is being<br />
passed to Dr. wolfgang büchele starting April<br />
2012. harri kerminen has guided <strong>Kemira</strong><br />
through some significant strategic changes. What<br />
are Büchele’s views on water chemistry going forward?<br />
What kinds of themes occupy his thoughts<br />
as he prepares for his new role?<br />
Regional specifics “Having lived in different<br />
European countries and China, I don’t believe in<br />
‘one glove fits all’ solutions. Clean water is needed<br />
everywhere but there are significant regional differences<br />
in the nuances. For example, in waterrich<br />
Europe, the focus is mainly on sustainability<br />
issues, whereas many emerging markets struggle<br />
with environmental challenges created in the past<br />
as well as with the task of making clean-enough<br />
drinking water available to all.”<br />
Learning and developing “The past is a valuable<br />
resource that can teach us many lessons, even<br />
though our eyes are firmly fixed on the future. I also<br />
believe in curiosity; a curious attitude to people and<br />
things accelerates personal evolution. It is important<br />
never to fall into the arrogance trap and think<br />
we have it all covered. Continuous learning and<br />
improvement, in close cooperation with our customers,<br />
is what leads to discoveries and solutions.”<br />
Inspiring people “Businesses and processes can<br />
be reproduced anywhere, people are unique.<br />
Empowering individuals and teams to shine in<br />
their full potential is an absolute must if you wish<br />
to succeed. Key strategic changes have been made<br />
at <strong>Kemira</strong> in the past years. I have been participating<br />
in this process through my membership in<br />
the Board. My role now is to foster this new strategy<br />
and help <strong>Kemira</strong> grow with and for its customers.<br />
Our solutions are a combination of people and<br />
chemistry. It’s my task to ensure that it is the winning<br />
combination for our customers.”<br />
marikka nevamäki<br />
Susanna Kekkonen<br />
A few words of praise<br />
Reliable, punctual and easy to do business<br />
with... These were some of the<br />
words customers used to describe<br />
<strong>Kemira</strong> in a survey* carried out during<br />
May and June. A total of 789 customers<br />
responded to the worldwide survey, at a<br />
response rate of 27 percent.<br />
“We are delighted at the high response<br />
rate,” says päivi jokinen, <strong>Kemira</strong>’s<br />
Executive Vice President of Marketing<br />
and Communications.<br />
“We received positive feedback about<br />
ease of cooperation, quality and functionality<br />
of our products and punctual<br />
deliveries. Our customer relationships<br />
rest on a firm foundation, and we will<br />
continue to develop our activities based<br />
on the customer feedback. One of the<br />
next steps is regional action planning<br />
with sales management.”<br />
According to remko goudappel,<br />
Vice President Municipal, EMEA, the<br />
CAJSA HOLGERSSON<br />
feedback was also very positive in the<br />
European Municipal customer segment.<br />
“Customers perceive us as a reliable<br />
supplier with high quality people and<br />
application know-how. In addition, we<br />
discovered clear development needs.”<br />
One of the areas, where customers<br />
would like us to improve our operations<br />
is the processing of complaints. Actions<br />
are already under way to set clear guidelines<br />
for complaint handling across the<br />
organization.<br />
Innovation was another development<br />
need. Customers feel that <strong>Kemira</strong><br />
has the capabilities to be an innovative<br />
company in water chemistry, but is not<br />
bringing enough innovations to the market<br />
today.<br />
“We are building a strong foundation<br />
for innovation by creating cross-functional<br />
team work between sales, application<br />
management and R&D, and by having<br />
a good, continuous dialogue about<br />
customer needs. Our sales organization<br />
will systematically produce more information<br />
on customers’ views and market<br />
needs as input for new product development,”<br />
says Goudappel.<br />
In an optimal situation, the innovation<br />
process rapidly converts customers’<br />
needs into new applications and<br />
products that solve existing challenges.<br />
Customers’ specific needs and future<br />
requirements must also be examined<br />
more closely.<br />
“In 2012, we will focus on 10 new<br />
application areas for which we are currently<br />
developing strong value propositions.<br />
I believe that, combined with wellprepared<br />
and clear communication, this<br />
gives us firm ground to call ourselves an<br />
innovative company,” Goudappel summarizes.<br />
johanna paasikangas-tella<br />
6 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 7
BRIEFING: our world<br />
Brazil is the largest producer of sugar cane bioethanol.<br />
One of the major advances achieved in the production<br />
already in Brazil and many other countries is<br />
the utilization of the secondary streams from sugar<br />
and bioethanol production. For example, the leftover<br />
fibrous material, called bagasse, is used as fuel<br />
in the production process, and some mills also generate<br />
surplus electricity.<br />
Bioethanol from Brazil<br />
Bioethanol has become an important form of renewable in sugar cane fields but the soil may eventually become saturated<br />
with salts, and the costs associated with the trans-<br />
energy. Bioethanol can be produced from a variety of different<br />
raw materials, but corn and sugar cane are used the portation of the liquid waste are unsustainable.<br />
most.<br />
Research is ongoing under the SWEET initiative to find<br />
Using raw materials that are suitable to be used as food, a way to eliminate impurities from this waste and reuse the<br />
such as corn, has been a major point of contention, as many water. “In addition we are looking at ways of taking advantage<br />
of the minerals and other residual by-products as see the production for bioethanol negatively impacting<br />
a<br />
food supply.<br />
“With sugar cane, there is no real competition,”<br />
says jose pena, Sales Manager,<br />
Sugar & Bioethanol Central & South<br />
America at <strong>Kemira</strong>. “Even when sugar<br />
is the end product, we can still produce<br />
bioethanol from its by-product, molasses.”<br />
“We are starting to see much more production<br />
of sugar cane bioethanol all<br />
over the world as the demand fossil fuel<br />
replacements increases,” adds isaac<br />
moussan, Director Sugar & Bioethanol at <strong>Kemira</strong>. “You<br />
can produce four times as much bioethanol from a ton of<br />
sugar cane as you can from a ton of corn.”<br />
With the limitations on corn bioethanol and natural variations<br />
in weather causing fluctuations in crops, the sugar<br />
cane industry is looking at all ways to increase efficiency<br />
and get more out sugar cane.<br />
One of the major secondary streams is still in need of<br />
development, and that is waste water. Sugar cane consists<br />
of 75% water, which is removed from the process as waste.<br />
The liquid waste from bioethanol production is almost<br />
all water, 97% in fact. Some mills are using it for irrigation<br />
“You can produce<br />
four times as much<br />
bioethanol from a ton<br />
of sugar cane as you<br />
can from a ton of corn.<br />
Production of sugar<br />
cane bioethanol grows<br />
all over the world.”<br />
source of raw materials,” notes Moussan.<br />
Sugar and bioethanol share the same initial<br />
process: the sugar cane is crushed, and the<br />
juice is extracted. The juice goes through<br />
several purification and clarification steps<br />
after which it can either go towards crystallization<br />
(sugar) or fermentation (bioethanol).<br />
KemTalo Floc S is a new, patented technology<br />
that can replace sulfur burning, a<br />
complicated and risky process. The burning<br />
of sulfur is used to produce sulfur dioxide, which is mixed<br />
with the sugarcane juice to reduce the color of the juice. By<br />
using KemTalo Floc S, mills can reduce sulfur dioxide emissions,<br />
helping limit corrosion and environmental impact.<br />
KemTalo Floc S also allows mills to use less lime in the process,<br />
causes less scaling problems and produces a lower<br />
color sugar. For sugar production, KemTalo Floc S has the<br />
added benefit of producing a lower color sugar.<br />
“Variations in the quality and consistency of sugar cane<br />
cause unwanted fluctuations in color. Better color, sign of<br />
higher quality, allows our customers to sell their sugar at<br />
higher prices,” notes Pena.<br />
randel wells<br />
123rf<br />
The groundbreaking<br />
ceremory at the Nanjing<br />
plant took place in<br />
September.<br />
The hows and whys of China<br />
Why is <strong>Kemira</strong> interested by China?<br />
Currently, Asia equals growth. For example,<br />
half of the global increase in paper<br />
demand comes from Asia, and China<br />
represents the major part of the growth<br />
in Asia. We have to be near our customers,<br />
also in terms of production, to be<br />
able to offer them competitive prices and<br />
the best possible service. Local production<br />
near <strong>Kemira</strong>’s R&D center in China<br />
enables us to customize our offering to<br />
the needs of local customers.<br />
<strong>Kemira</strong>’s plant in Nanjing will be open<br />
next summer. What will it produce?<br />
We will manufacture chemicals for special<br />
processes, and the plant will serve<br />
all our customer segments. It will also<br />
allow for an extensive product range and<br />
short transportation times.<br />
In addition to the Nanjing plant, what<br />
does your portfolio include in China?<br />
We manufacture AKD wax, used for<br />
hydrophobation of paper in Yanzhou. The<br />
plant is cutting-edge and, I understand,<br />
the largest AKD plant in the world.<br />
The new plant has been described<br />
as trailblazing. What does this mean<br />
in practice?<br />
The plant has been designed by a team<br />
of experts who represent <strong>Kemira</strong>’s best<br />
process knowledge globally. The technology<br />
will be top-notch in the industry,<br />
and we will make extensive use of automation.<br />
“We have to be near our<br />
customers, to be able to offer<br />
them the best service.”<br />
You will hire approximately 100<br />
employees. What role will occupational<br />
safety play in their orientation?<br />
It is of primary importance in all of our<br />
production locations. Each employee’s<br />
personal training program will cover<br />
process and personal safety.<br />
What can Asia teach other markets?<br />
Our employees in Asia have excellent<br />
team spirit, a strong desire for professional<br />
development and an impressive<br />
work ethic. This type of positivity could<br />
be exported. It is an honor and a pleasure<br />
to work with such a team.<br />
johanna paasikangas-tella<br />
The questions were answered by<br />
Kenneth Nystén, Senior Vice President,<br />
Printing&Writing, Paper.<br />
KEMIRA<br />
8 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 9
BRIEFING: green ideas<br />
Oil sands is largely a mixture of sand, clay, water and a certain<br />
type of petroleum called bitumen. It is found all over the<br />
world, but Canada and Venezuela have the largest amounts of<br />
this substance.<br />
With waste becoming an increasingly important<br />
source of energy, <strong>Kemira</strong> is focusing its efforts, pooling<br />
its application know-how and broad product<br />
portfolio to help customers optimize biogas processes.<br />
The micro-organisms responsible for the<br />
final methane-producing step are slow-growing and<br />
sensitive. They need a specific set of conditions and<br />
micronutrients to be able to perform their job optimally.<br />
<strong>Kemira</strong>’s Biogas Digestion Product (BDP) technology<br />
creates a more stable process which allows<br />
customers to increase the load on their digester as<br />
well as increase biogas yield.<br />
Professor Subir<br />
Bhattacharjee at the<br />
University of Alberta<br />
finds ways to reduce<br />
the water needed to<br />
extract oil from oil<br />
sands.<br />
Squeezing oil from sand<br />
<strong>Kemira</strong>, Outotec and Suncor are partnering<br />
with the University of Alberta to<br />
find ways to reduce the water needed to<br />
extract oil from oil sands. This partnership<br />
has led to the establishment of an<br />
Industrial Research Chair at the university<br />
that is looking at water quality management<br />
for oil sands extraction.<br />
“The partnership involves using<br />
<strong>Kemira</strong>’s global experience in water<br />
chemistry and water management,<br />
Suncor’s operational knowledge in oil<br />
sands processing, and Outotec’s global<br />
experience in process equipment manufacturing.<br />
We are combining these with<br />
the university’s world-class expertise<br />
in addressing the fundamental problems<br />
related to water treatment,” says<br />
subir bhattacharjee, professor of<br />
mechanical engineering at the University<br />
of Alberta, and the program’s chairholder.<br />
Bhattacharjee and his team are investigating<br />
how the water chemistry obtained<br />
during thermal recovery of bitumen<br />
influences treatment operations. The<br />
team is also looking at how they can<br />
improve water recycling in Alberta’s<br />
steam-based bitumen recovery. A final<br />
area of research is finding ways to reduce<br />
energy consumption and wastewater disposal<br />
through judicious adjustment of<br />
water chemistry and process conditions.<br />
“Our goal is to reduce the make-up<br />
water requirement in the thermal bitumen<br />
recovery processes by 30 percent,”<br />
says Bhattacharjee.<br />
Steam-based bitumen recovery provides<br />
one of the most challenging water treatment<br />
scenarios for this industry.<br />
“The chair program will work closely<br />
with the major producers of this unconventional<br />
petroleum that have operations<br />
in Alberta,” notes Bhattacharjee.<br />
“For all participants in this region,<br />
water is a valuable resource that requires<br />
good management. To do our research, it<br />
is important that we partner with companies<br />
who understand all aspects of<br />
water chemistry.”<br />
As part of its ongoing work in Alberta,<br />
<strong>Kemira</strong> will open an R&D Projects laboratory<br />
at the university in the first half<br />
of 2012. “Our employees will work in<br />
the lab to get the most from the expertise<br />
this environment offers,” explains<br />
mohan nair, Senior Manager, R&D,<br />
Oil & Mining, <strong>Kemira</strong>.<br />
“Our partnership with the University<br />
of Alberta is of strategic importance to<br />
<strong>Kemira</strong>. We feel that Subir Bhattacharjee<br />
and the entire team have the competence<br />
needed to move our chemistries<br />
forward,” Nair summarizes.<br />
satu jussila<br />
CURTIS COMEAU<br />
123 rf<br />
From waste to energy<br />
Biogas is gaining ground as a<br />
promising form of renewable<br />
energy that is used to generate<br />
electricity, heat and make biofuels.<br />
A mixture of methane and carbon<br />
dioxide, biogas is produced by the<br />
anaerobic digestion of organic<br />
material.<br />
“Today waste from the food<br />
industry, households and agriculture<br />
is commonly used to create<br />
biogas,” notes gunnel hagstam<br />
from <strong>Kemira</strong>’s Municipal & Industrial<br />
segment.<br />
A digester is a rather simple<br />
piece of equipment, but the<br />
digestion process inside anything<br />
but simple, a complex interplay<br />
between biology and chemistry.<br />
Digester optimization is achieved<br />
by improving the efficiency of the<br />
microbes that break down the biomass.<br />
Essentially <strong>Kemira</strong> BDP is a nutritional<br />
supplement for the bacteria,<br />
tailor-made for different<br />
substrates. The BDP treatment<br />
increases the amount of methaneforming<br />
bacteria. This creates a<br />
more stable process which allows<br />
customers to increase the load on<br />
their digester as well as increase<br />
biogas yield.<br />
The second focus area is on<br />
digestate separation. The digestate<br />
consists of water with a considerable<br />
amount of fibers, salts<br />
and nutrients. It can serve as an<br />
excellent fertilizer, but if direct use<br />
on fields is not allowed, the nutrients<br />
need to be separated.<br />
Several initiatives under the<br />
SWEET umbrella are addressing<br />
the need to get more biogas<br />
out of biomass. “Driving <strong>Kemira</strong>’s<br />
innovations in biogas is a<br />
great opportunity to add value to<br />
our customers’ processes to turn<br />
waste into renewable energy,” says<br />
jan reinier gosker, Business<br />
Development Manager at <strong>Kemira</strong>’s<br />
Municipal & Industrial segment.<br />
Controlling coagulation and<br />
improving the process of separating<br />
solid matter from water<br />
are the main applications under<br />
development to help reduce the<br />
environmental impact, scaling,<br />
foaming and other problems that<br />
arise when processing digestate.<br />
randel wells<br />
Renewable and promising:<br />
• Biogas is a clean-burning energy<br />
source that can be utilized in<br />
many ways.<br />
• Measured in million tons of oil<br />
equivalent (Mtoe), the National<br />
Renewable Action plans<br />
(NREAP) estimate biogas production<br />
in the EU will triple by<br />
2020.<br />
• Biogas boosting can be done by<br />
improving the efficiency of the<br />
methane forming bacteria using<br />
<strong>Kemira</strong> Biogas Digestion Product<br />
(BDP) technology.<br />
• Several initiatives under the<br />
SWEET umbrella are addressing<br />
the need to get more biogas out of<br />
biomass.<br />
• This work is closely related to<br />
<strong>Kemira</strong>’s commitment to the Baltic<br />
Sea Action Group to combat<br />
eutrophication in the Baltic Sea<br />
through nutrient recycling.<br />
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water<br />
No paper without<br />
Water footprints and water use are hot topics.<br />
Water is an important raw material and water<br />
issues are vital for the forest industry.<br />
Text pirkko koivu · illustration Sanna mander<br />
If you are reading the print version<br />
of this issue, the magazine you are<br />
holding weighs approximately 180<br />
grams. Its production consumed<br />
approximately one liter of water.<br />
Without water, we have no<br />
paper. Paper industry plants need<br />
water for the production process<br />
and fiber transportation. In addition,<br />
water is used to wet the timber,<br />
transfer heat, wash machines<br />
and equipment and cool various<br />
processes. Because of their large<br />
water needs, pulp and paper factories<br />
are located near natural<br />
water systems.<br />
Paper is made from wood that<br />
is converted into pulp either<br />
mechanically or by cooking with<br />
chemicals. In the latter case, the<br />
chemicals separate the fibers of<br />
the wood from one another, producing<br />
chemical pulp. After cooking,<br />
the pulp is washed with<br />
water.<br />
When manufacturing paper,<br />
water is added to the pulp. The<br />
result is a slurry with a water content<br />
of more than 90 percent.<br />
The high amount of clean water<br />
ensures consistent paper quality.<br />
The paper machine spreads the<br />
fiber slurry evenly and removes<br />
the water through filtering and by<br />
pressing and drying.<br />
Depending on the desired end<br />
result, various fillers, coating<br />
materials and chemicals may be<br />
added to the paper. Finally, the<br />
paper is dried, and the end product<br />
has a dry content of approximately<br />
95 percent.<br />
But is one liter of water per<br />
magazine a lot? This is the<br />
amount of water that is consumed<br />
during paper manufacture. It is<br />
a lot, considering how many brochures,<br />
packages, newspapers,<br />
magazines and other paper products<br />
are consumed in the world<br />
each day.<br />
Then again, most of the water<br />
needed in paper manufacture is<br />
recycled in the processes, treated<br />
and returned to nature. Only<br />
some three percent of the water<br />
evaporates into the air and will<br />
eventually fall back down as rain.<br />
Over the past few decades, the<br />
paper industry has considerably<br />
reduced its water consumption<br />
and enhanced its water efficiency.<br />
In Finland, producing a ton of<br />
pulp used to require 250 cubic<br />
meters of water in the 1970s.<br />
Today, 10 to 40 cubic meters is<br />
enough, depending on the process.<br />
The same liter of water may<br />
be recycled 15 times.<br />
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Water footprint refers to the<br />
amount of water required to manufacture<br />
a product, including all<br />
stages of production. The definition<br />
is clear, but the concept is a<br />
little more complex. It differs from<br />
a carbon footprint, for example,<br />
in that water is always local and<br />
related to the water resources of<br />
each area. The carbon footprint<br />
has global climate effects.<br />
“The amount of water used,<br />
such as a cubic meter, does not<br />
give an idea of the environmental<br />
impact it has locally,” says<br />
sylvain lhôte from Borealis,<br />
who co-chairs the water program<br />
of the World Business Council<br />
for Sustainable Development<br />
(WBCSD).<br />
“A company’s operations affect<br />
the water system near the company’s<br />
location. The same amount<br />
of water has a different effect in<br />
water-rich and dry areas. The<br />
impact may also vary by season.”<br />
Water footprints can be measured<br />
and calculated in many ways.<br />
The most widely known method<br />
is the one developed by the Water<br />
Footprint Network. This method<br />
is used for food products, for<br />
example. It divides the water footprint<br />
into three parts: green, blue<br />
and gray.<br />
The green water footprint<br />
reflects the natural water cycle.<br />
In paper production, this means<br />
the water absorbed by the roots<br />
of trees. During photosynthesis,<br />
trees evaporate water and bind<br />
carbon dioxide from the atmosphere.<br />
The blue water footprint refers<br />
to water that is taken from a<br />
river, for example, and will not<br />
be returned to its source. The<br />
gray footprint refers to polluted<br />
water that is returned to the natural<br />
water system. If wastewater is<br />
treated appropriately, it leaves no<br />
gray footprint.<br />
The water footprint of this magazine<br />
varies depending on the calculation<br />
method. If we focus on<br />
the amount of water lost during<br />
paper production, we are dealing<br />
with the blue water footprint.<br />
If we include what is known as<br />
green water, the water footprint<br />
grows considerably: it can be as<br />
much as 10 to 30 liters for a single<br />
page.<br />
The forest industry sees problems<br />
in including green water<br />
because this would constitute<br />
most of the water footprint. Natural<br />
forests will use this water in<br />
any case, whether or not the trees<br />
are used for paper. Forests clean<br />
water and are important in many<br />
other respects than the paper<br />
industry.<br />
Another problem is that differences<br />
in local water resources are<br />
not considered. The green water<br />
footprint is calculated in proportion<br />
to the growth rate of trees,<br />
which means that the footprint is<br />
smaller in warm climates.<br />
“The differences in calculating<br />
water footprints are related<br />
to the degree to which the methods<br />
consider the different parts<br />
of the value chain,” says Lhôte. In<br />
paper production, the value chain<br />
includes forests, natural water<br />
systems, pulp plants and paper<br />
plants.<br />
According to Lhôte, the blue<br />
water footprint should be used as<br />
the basic unit in all value chains<br />
4<br />
FACTS<br />
In the<br />
1970s, producing<br />
a ton of<br />
pulp required<br />
250 cubic<br />
meters of<br />
water.<br />
Today, 10<br />
to 40 cubic<br />
meters is<br />
enough,<br />
depending on<br />
the process.<br />
The same<br />
liter of water<br />
may be recycled<br />
15 times<br />
in the process.<br />
Water efficiency<br />
reduces<br />
the operating<br />
cost of paper<br />
plants.<br />
because it is widely understood<br />
and relatively easy to measure.<br />
The gray and green footprints are<br />
more complex.<br />
The green water footprint is the<br />
most difficult to measure. Lhôte<br />
finds it to be best suited for agriculture<br />
and the food industry.<br />
However, the water footprint<br />
can be a useful tool.<br />
“The measuring method must<br />
be relevant and transparent in<br />
terms of both the value chain and<br />
location,” he adds.<br />
“Everyone must know how the<br />
water footprint has been calculated<br />
and whether it includes<br />
other elements than just blue<br />
water. Otherwise, we will be comparing<br />
apples and pears.”<br />
WBCSD is collecting good practices<br />
in water management. It has compiled<br />
a list of 19 water management<br />
tools, which approach the<br />
issue from different perspectives.<br />
Many of the tools measure<br />
water footprints, water use and<br />
water impact. Some of them also<br />
identify water-related risks and<br />
suggest improvements to practices.<br />
Some are limited to certain<br />
industries or geographical areas.<br />
The Alliance for Water Stewardship<br />
(AWS) is one of the organizations<br />
that have developed water<br />
management tools. The International<br />
Organization for Standardization<br />
(ISO) is in the process of<br />
creating an international standard<br />
for calculating water footprints.<br />
“The WBCSD’s goal is to make<br />
the different methods available<br />
to all. Instead of competing,<br />
these methods complement<br />
one another. We want to create<br />
a toolkit of various calcula-<br />
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CLOSE UP<br />
”Water prices have risen<br />
steadily since the 1980’s.”<br />
tion assessment methods and<br />
risk management models,” Lhôte<br />
explains.<br />
The WBCSD has also created<br />
a water management tool of its<br />
own, the Global Water Tool, which<br />
is now being developed for industry<br />
sectors.<br />
“The purpose is to create a tool<br />
that considers different industries<br />
as well as geographical variation.<br />
We have already developed a specific<br />
tool for the oil industry, for<br />
example.”<br />
Lhôte says that sustainable<br />
water use is taken very seriously<br />
in all water-intensive industries,<br />
including the paper industry.<br />
“Yet we should always keep in<br />
mind that water is just one part<br />
of the of the bigger sustainability<br />
picture. It should be introduced in<br />
other contexts as well because it is<br />
related to energy and food.”<br />
Environmental legislation is one<br />
reason to improve water efficiency<br />
in the paper industry. Money is<br />
another one, and its importance is<br />
increasing.<br />
“Water prices have risen steadily<br />
since the 1980s, and water will<br />
soon become a strategic raw material.<br />
Efficient water use should<br />
not be seen merely as a means to<br />
meeting permit requirements. It<br />
is also an opportunity to reduce<br />
a plant’s operating costs,” says<br />
kaj jansson, Vice President of<br />
Research & Development, Common<br />
Chemistry at <strong>Kemira</strong>.<br />
Research and development<br />
will not run out of challenges. “As<br />
water cycles become more closed,<br />
new substances will be discovered<br />
that cause scaling, corrosion<br />
and other process problems,” says<br />
Jansson.<br />
“Currently, the challenge in<br />
closing water cycles is to find the<br />
right reconnection points for the<br />
divided streams and reduce their<br />
organic and inorganic loads. The<br />
rule of thumb is that wastewater<br />
should be treated where it<br />
is created. This makes its treatment<br />
easier and requires a smaller<br />
investment than running the<br />
wastewater through a treatment<br />
plant.”<br />
For example, anaerobic treatment<br />
of wastewater can reduce<br />
the production cost of pulp by<br />
almost 4 euros per ton and that of<br />
paper by 1 euro per ton.<br />
“Harnessing the energy in<br />
wastewater offers even more substantial<br />
opportunities. The related<br />
cost reductions can be considerable<br />
on an annual level,” says<br />
Jansson.<br />
In anaerobic water treatment,<br />
bacteria consume organic matter<br />
in oxygen-free conditions. The<br />
by-product of this process, methane,<br />
can either be sold or used to<br />
fuel the factory. The Finnish forest<br />
industry tried this method in<br />
the 1980s. At the time, however,<br />
it presented problems related to<br />
odor and the plants’ sensitivity to<br />
disturbances.<br />
“These problems have been<br />
solved during the past three decades.<br />
Odor is no longer a problem,<br />
and operational disturbances<br />
can be predicted and fixed. Disturbances<br />
at the wastewater treatment<br />
plant are a major consideration<br />
because they can lead to<br />
limited production or even shutdowns.”<br />
Jansson has long experience in<br />
the paper industry. He has witnessed<br />
much of the development<br />
over the past few decades. Emissions<br />
of solids and nutrients have<br />
decreased while the production<br />
of paper, cardboard and pulp has<br />
increased. In the beginning, process<br />
water was released into natural<br />
water systems. Water cycles<br />
have since been closed, and process<br />
water is recycled many times<br />
over.<br />
“The more process water cycles<br />
are closed, the more and the<br />
rarer detrimental substances will<br />
begin to accumulate and disturb<br />
the process. The conditions will<br />
become favorable for organic and<br />
inorganic scaling, including various<br />
extractives and calcium. Bacteria<br />
growth and biofilm formation<br />
will become more common<br />
as well. In addition, corrosion will<br />
increase,” Jansson explains.<br />
Closed processes are often<br />
faster, which means that disturbances<br />
are more likely to<br />
recur and problems need to be<br />
addressed more rapidly than<br />
before.<br />
<strong>Kemira</strong>’s solutions to these<br />
issues are automatic chemical<br />
controls and remote monitoring,<br />
which are already used around<br />
the world to enhance process reliability.<br />
“Chemistry alone is not enough.<br />
It has to match the circumstances,<br />
along with physical and biological<br />
factors.”<br />
Jansson points out that all<br />
water processes in paper plants<br />
are unique. Each case is different<br />
in terms of the general process,<br />
raw materials, age and location.<br />
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CLOSE UP<br />
A front-runner in forestry<br />
1. How is water efficiency<br />
related to your business<br />
operations?<br />
The answer is clear: without<br />
water, UPM could not<br />
manufacture its products.<br />
Because the total amount<br />
of water in the world cannot<br />
be increased, we will probably<br />
have shortages as the population<br />
keeps growing. For this<br />
reason, we want to make sure<br />
that this vital raw material will<br />
still be available in the future.<br />
As a way of thinking, sustainable<br />
development is directly<br />
related to our business. We want<br />
to be the leading company in our industry<br />
in wastewater quality and minimal<br />
water use. In pulp and paper production,<br />
our goal is to reduce the amount of<br />
wastewater as well as chemical oxygen<br />
consumption by 15 percent by the year<br />
2020, compared with 2008 levels.<br />
2. How have you reduced your<br />
water footprint?<br />
We have worked for the better use of<br />
natural water systems since the 1960s,<br />
and this work still continues. Good<br />
housekeeping is important: a systematic<br />
approach to water use. No water is used<br />
in vain. The water in the production<br />
process is recycled many times before it<br />
is removed as wastewater. Moreover, we<br />
have had biological water treatment in<br />
place for several decades.<br />
Over the past ten years, the amount<br />
of wastewater per ton of paper has<br />
decreased by 40 percent and that per<br />
ton of pulp by 10 percent. We monitor<br />
Q&A<br />
Sami Lundgren,<br />
Director,<br />
Environmental<br />
Services, UPM.<br />
The company<br />
is <strong>Kemira</strong>’s<br />
customer.<br />
our wastewater emissions<br />
regularly and carry out<br />
research to evaluate their<br />
possible impact on fish, for<br />
example.<br />
3. Where do you get the<br />
water you need?<br />
Old-time industrialists thought<br />
ahead and established factories<br />
in locations where raw<br />
materials—that is, wood and<br />
water—were easily available.<br />
The world has changed since<br />
then, and factories have been<br />
established in other types of<br />
locations, but the proximity of<br />
water continues to be essential. Water is<br />
taken from rivers, lakes or groundwater<br />
reserves. There are no factories in areas<br />
where water is in short supply.<br />
4. What future challenges do you<br />
see in improving water efficiency?<br />
All of the easy methods have already<br />
been used. The goal is to continue<br />
decreasing water use, but each step forward<br />
will be increasingly difficult. The<br />
manufacture of paper for food packaging,<br />
for example, is a balancing act<br />
between reducing water use, ensuring<br />
clean processes and applying suitable<br />
chemicals.<br />
Water efficiency must be enhanced<br />
through multiple channels. We need<br />
new technology and investments and<br />
also carefully executed processes. We<br />
have to examine the work process and<br />
fine-tune the equipment. We will also<br />
have to consider investments in terms of<br />
water use.<br />
Not a drop wasted<br />
1. Caraustar Carotell Paperboard<br />
made the finals of the<br />
PPI Awards in water efficiency.<br />
Why did you decide<br />
to participate?<br />
We are proud of our<br />
100-percent closed water<br />
system, and we want to<br />
show what we are doing to save<br />
water and protect the environment.<br />
Our employees understand<br />
the importance of having<br />
a closed system and have managed<br />
the system successfully.<br />
In water efficiency, we can<br />
compete with world-class companies.<br />
We are still able to considerably<br />
reduce the environmental impact of<br />
our plant.<br />
2. How is water efficiency related<br />
to your business operations?<br />
As a paper company, we are dependent<br />
on water. Water efficiency is directly<br />
reflected in our bottom-line results<br />
because we have no wastewater treatment<br />
costs and our overall water use<br />
is decreasing. In addition, our customers<br />
and community know that we are a<br />
socially and environmentally responsible<br />
company.<br />
3. Where do you get the water you need?<br />
We buy it from the city of Greenville’s<br />
water supply network.<br />
4. How have you reduced your<br />
water footprint?<br />
We began the work to improve our<br />
water efficiency in the mid-1990s. We<br />
produce no wastewater because of our<br />
Q&A<br />
Vince Fields,<br />
Technical<br />
Manager,<br />
Caraustar. The<br />
company is<br />
<strong>Kemira</strong>’s<br />
customer.<br />
closed system, which is a<br />
key element.<br />
We currently have two<br />
projects in progress to<br />
enhance water use efficiency.<br />
We are in the process<br />
of installing a steam<br />
collection system in our<br />
boilers, which enables steam<br />
to be condensed back into feed<br />
water again. In addition, we are<br />
investing in a clarification system,<br />
which enables us to use<br />
process water instead of pure<br />
water.<br />
5. What future challenges do you<br />
see in improving water efficiency?<br />
A closed system will inevitably experience<br />
bacteria growth and scaling as well<br />
as negative electric charges, which will<br />
reduce the power of paper production<br />
chemicals and increase chemical costs<br />
by 20 to 30 percent. A good level of<br />
daily system maintenance will keep the<br />
costs in check.<br />
Because we have a limited amount of<br />
water in store, maintaining a good water<br />
balance will be difficult at times. Some<br />
special paperboard grades require more<br />
water than other grades. The process<br />
must be monitored carefully to prevent<br />
the water system from losing its balance.<br />
Caraustar’s Carotell Paperboard plant is<br />
located in South Carolina. The plant is<br />
among the largest producers of recycled<br />
paperboard in the United States. Using<br />
only recycled materials, it manufactures<br />
a variety of paperboard products for<br />
industrial use and consumer packaging.<br />
123 RF<br />
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Board<br />
improved<br />
further<br />
Weig-Karton produces over<br />
600,000 tons of board per year<br />
from its Mayen headquarters,<br />
located in the beautiful Eifel<br />
mountains of Germany. The company,<br />
founded already in 1931,<br />
has doubled its production capacity<br />
over the last 15 years, and now<br />
supplies board products all over<br />
the world.<br />
One of Weig-Karton’s production<br />
machines, the BM 6 machine, is<br />
used to produce linerboard, which<br />
is needed to make plasterboard.<br />
With an effective width of around<br />
530 cm, the BM 6 is actually the<br />
largest machine for plasterboard<br />
liner anywhere in the world.<br />
“It runs 24 hours a day and can<br />
produce 50 tons per hour. This<br />
places demanding requirements<br />
on the machinery, and also on the<br />
production process and the quality<br />
of the materials that we use,”<br />
says henning dippel, operating<br />
engineer at Weig-Karton.<br />
4<br />
Facts<br />
The production<br />
of<br />
board starts<br />
when recycled<br />
paper is processed<br />
into a<br />
fiber mixture.<br />
Impurities are<br />
removed and<br />
the fibers prepared<br />
for processing.<br />
At the<br />
wet end of<br />
the boardmachine,<br />
three wires<br />
ensure that<br />
the fibers are<br />
ideally distributed.<br />
Optimal chemicals improve paper-making<br />
processes, speed them up and – what is<br />
the most important – enhance the quality<br />
of the end product. Henning Dippel,<br />
operating engineer for the BM 6 at Weig-<br />
Karton (left) and Georg Lennert, Area Sales<br />
Manager for <strong>Kemira</strong>, work together for<br />
high-quality carton products.<br />
High-quality chemicals are an important part<br />
of the production process for Weig-Karton,<br />
one of the largest manufacturers of recycled<br />
board in Europe.<br />
Text Hubert Kogel<br />
Photos Jan Michael Hosan<br />
<strong>Kemira</strong> supplies Weig-Karton with<br />
the chemicals needed to produce<br />
the board and so underpins the<br />
high quality of the end product.<br />
<strong>Kemira</strong> products are used both for<br />
retention and hydrophobation of<br />
the board.<br />
Retention polymers are used<br />
during dewatering in the wet end<br />
to bind the materials and fibres<br />
contained in the elements of the<br />
paper. By adding suitable retention<br />
agents, this process is not only<br />
improved but also speeded up.<br />
“We are also working on a new<br />
and patented system (Kemform)<br />
to optimise the retention system<br />
In the<br />
pressing section,<br />
most of<br />
the water is<br />
pressed out.<br />
With the aid<br />
of a size press,<br />
the surface of<br />
the board can<br />
be adapted to<br />
the specific<br />
requirements.<br />
The rolls of<br />
carton board<br />
are re-rolled<br />
and cut into<br />
the widths<br />
required by<br />
customers.<br />
further,” says georg lennert,<br />
Area Sales Manager for <strong>Kemira</strong>.<br />
The aim is to improve strength<br />
still more by removing more water<br />
and binding the paper components<br />
more strongly together.<br />
Because the damper the paper, the<br />
more easily it will tear; and the<br />
drier and denser the board, the<br />
stronger it will be.<br />
Hydrophobation is used to<br />
make the board waterproof and<br />
is performed at Weig-Karton by<br />
adding starch and alkenyl succinic<br />
anhydride (ASA).<br />
The sizing agents are used to<br />
adjust the water absorbency and<br />
to improve the printability of<br />
paper and board. For this, <strong>Kemira</strong><br />
provides various sizing techniques<br />
including AKD, ASA, rosin size<br />
and polymer sizing agents.<br />
Only last year, Weig-Karton<br />
acquired new processing equipment<br />
for ASA. This equipment<br />
also runs 24 hours a day and is<br />
used to apply the optimum dose<br />
of sizing agent. <strong>Kemira</strong> made the<br />
engineering work for the new<br />
installation.<br />
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Adding<br />
real value<br />
Unimin Corporation is a producer of<br />
non-metallic industrial minerals and<br />
global supplier to a number of businesses.<br />
<strong>Kemira</strong> supplies KemEcal 2332<br />
and 2335 tailored products for Unimin<br />
operations in South America. Productivity<br />
at Unimin in Brazil has increased<br />
by 22 percent. Unimin Brazil’s market<br />
Unimin, a leading<br />
producer of nonmetallic<br />
industrial<br />
minerals, has<br />
grown in the<br />
South American<br />
paint market with<br />
support of <strong>Kemira</strong>.<br />
share increased from 60 percent to 75<br />
percent in <strong>2011</strong>. Unimin and <strong>Kemira</strong><br />
now cooperate also in Colombia, Argentina<br />
and Chile.<br />
A leading producer of industrial minerals,<br />
Unimin, can tell what is required for gaining<br />
market share in South America: superior<br />
quality products that are produced with<br />
complete support by an expert supplier.<br />
Text satu jussila · Photos unimin and kemira<br />
Unimin is a leading producer of non-metallic industrial minerals.<br />
It is a worldwide supplier to the glass, ceramic and lighting<br />
industries, and to paint, plastic, rubber and composite<br />
manufacturers.<br />
The company has a strong presence in North America and<br />
Europe and, with <strong>Kemira</strong>’s applications, it is gaining market<br />
share in South America. <strong>Kemira</strong> started working with Unimin<br />
in 2007 for its expanding plastics and painting product operations<br />
in Brazil.<br />
“When we first started working with Unimin in Brazil, they<br />
established strategic targets to increase market share in the<br />
South American ground calcium carbonate (GCC) market by<br />
introducing high-quality products at competitive costs to the<br />
paint market,” explains sergio cabo, Vice President Oil &<br />
Mining, <strong>Kemira</strong> South America.<br />
The first step was to evaluate the critical factors in the<br />
production lines that had a strong impact on those targets.<br />
This work led to the creation of <strong>Kemira</strong> tailor-made Kem-<br />
Ecal 2332 and KemEcal 2335 products (earlier known by the<br />
product name Colloid), which aim to reduce production costs<br />
and increase plant productivity, as well as provide superior<br />
quality products to paint producers.<br />
The KemEcal products have been in use now for four years. In<br />
that time, Unimin in Brazil has seen a 22 percent increase in<br />
productivity. “Two new Unimin products have been launched<br />
and different mineral pigments are now being used. Moreover,<br />
Unimin Brazil’s market share has increased from 60<br />
percent to 75 percent in <strong>2011</strong>,” says Cabo.<br />
“KemEcal 2332 reduces our dispersant consumption and<br />
provides an excellent improvement in the quality of our product<br />
line,” confirms emerson delegá, Application Engineering<br />
Manager SAM, Unimin South America.<br />
“<strong>Kemira</strong> is adding value to our business with operational<br />
support, providing training to our technicians and operators,<br />
bringing specific products to our market, and providing highquality<br />
technical support,” adds Delegá.<br />
The partnership between <strong>Kemira</strong> and Unimin has worked<br />
so well that this year the client asked <strong>Kemira</strong> to help them in<br />
the application of suitable dispersants for production of GCC<br />
slurries used in paint for Unimin’s operations in Colombia,<br />
Argentina and Chile.<br />
“The local Uninim people in Colombia had been working<br />
for several weeks without success. They were having trouble<br />
meeting the market requirements for both solids and stability.<br />
After a few days of working on process review, mainly<br />
in the grinding system, the plant successfully started producing<br />
high-solid slurries to the market,” explains regis<br />
barbosa, Account Manager, <strong>Kemira</strong> Minerals & Metals,<br />
South America.<br />
By driving the client relationship from its application knowhow<br />
rather than from its product offering, Unimin feels that<br />
<strong>Kemira</strong> is adding value to its business.<br />
“We have to grow our business, and for that we need to<br />
increase sales, enhance our portfolio and improve production<br />
efficiency to reduce costs. <strong>Kemira</strong> is supporting us in reaching<br />
our strategic goals,” says Delegá.<br />
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AGENDA<br />
THE most common applications of chemistry<br />
were exhibited at the Industry Park of Sweden<br />
in early September. The exhibition attracted<br />
approximately 1,000 visitors, who were educated<br />
on the production of sulphuric acid,<br />
energy, hydrochloric acid and hydrogen peroxide<br />
as well. Children had the opportunity to<br />
make small experiments.<br />
*HARMFUL substances in wastewater can<br />
already be identified and removed with a variety<br />
of methods. In St. Petersburg, crayfish are<br />
used as bioindicators in outgoing water, in<br />
addition to more standard methods of wastewater<br />
analysis. “Bioindicators could be developed<br />
to detect harmful substances and their<br />
combined effect,” says Aija Jantunen.<br />
365<br />
days of chemistry<br />
Cajsa Holgersson<br />
“The year has facilitated<br />
information sharing with<br />
politicians and authorities in<br />
the field of chemistry.”<br />
What would we do without chemistry? It may<br />
seem abstract and even a little mystical, but<br />
chemistry is part of our everyday life. Without<br />
chemistry, we would not be able to make coffee,<br />
burn candles or combine food ingredients, to<br />
name just a few examples.<br />
The many applications of chemistry have been<br />
celebrated during the International Year of Chemistry<br />
(IYC) <strong>2011</strong>. Events and campaigns have been<br />
organized worldwide around the special<br />
themes of the year, one of which is water.<br />
“We have sought to provide people<br />
more information and make<br />
chemistry more attractive, particularly<br />
to children and young<br />
people. In addition to water,<br />
the themes have included<br />
clean air, healthy food, safe<br />
medicines, advanced materials,<br />
ecological products<br />
and sustainable energy,” says<br />
päivi pelttari, Communications<br />
Manager for EMEA at<br />
<strong>Kemira</strong>.<br />
Children have been encouraged<br />
to examine natural water<br />
in a global program. In the Netherlands,<br />
the program was launched<br />
through a sponsorship, and <strong>Kemira</strong>’s<br />
employees helped with experiments in local<br />
schools. Four tests were run on each water sample,<br />
providing information on acid and salt content<br />
as well as filtering and treatment results. This<br />
information will be collected in a global database.<br />
During the year, chemistry organizations have<br />
also actively informed people on how chemistry<br />
improves our quality of life.<br />
“Our greatest achievement has been to discover<br />
that people on all continents are<br />
enthusiastic about chemistry. Celebrating<br />
women as scientists has also<br />
been an important aspect,” says<br />
john m. malin, Chair of the<br />
IYC Management Committee.<br />
The year has been beneficial<br />
for business as well.<br />
According to Malin, it has<br />
facilitated information sharing<br />
with politicians and<br />
authorities.<br />
“It is important for them to<br />
know that chemistry not only<br />
helps us understand the challenges<br />
resulting from population<br />
growth. It also helps create<br />
good practices to solve the issues.”<br />
johanna paasikangas-tella<br />
chemistry<strong>2011</strong>.org<br />
Wastewater<br />
and crayfish<br />
– what do they have in common?<br />
The CleantechExpo event in Lahti in October featured<br />
an environmental seminar that attracted<br />
experts, ambassadors, diplomats and businesspeople<br />
from 34 countries.<br />
At the seminar, harri kerminen, CEO<br />
of <strong>Kemira</strong>, discussed the close relationship<br />
between water and energy in industry<br />
in general and specifically in sectors<br />
such as mining and paper manufacturing.<br />
With water shortages becoming a problem<br />
around the world, it is important<br />
to invest in new solutions for ensuring<br />
the availability of clean water, including<br />
desalination, water recycling and<br />
even wastewater recycling.<br />
Surprisingly, perhaps, <strong>Kemira</strong>’s<br />
new growth areas in different<br />
parts of the world have a need for<br />
chemical restoration of eutrophicated<br />
lakes. Although this<br />
business is not significant, the<br />
projects attract a great deal<br />
of local attention.<br />
Along with increased<br />
awareness, new challenges<br />
in municipal wastewater<br />
treatment raise questions<br />
and require hard work. At<br />
the same time, however, these<br />
Cajsa Holgersson<br />
“The Northwest Russia<br />
Center of Expertise in the<br />
Water Industry has trained<br />
hundreds of people on how to<br />
improve water management.”<br />
challenges result in new water management solutions*.<br />
The educational cooperation between St.<br />
Petersburg’s waterworks, also known as Vodokanal,<br />
and the Lahti Science and Business Park<br />
is an excellent example of this, as are Vodokanal’s<br />
long-term partnerships with Finnish<br />
companies. A Finnish-Russian project,<br />
the Northwest Russia Center of Expertise<br />
in the Water Industry has already trained<br />
hundreds of people from different parts<br />
of the country on how to improve water<br />
management. The center has also provided<br />
information for children and<br />
young people.<br />
“Vodokanal has already adopted<br />
diverse technologies that are new<br />
to Finland. Exchange of information<br />
is growing stronger around<br />
the center of expertise established<br />
by Vodokanal and the<br />
Lahti Science and Business<br />
Park,” says aija jantunen,<br />
head of <strong>Kemira</strong>’s Municipal<br />
& Industrial operations<br />
in Finland and the Baltic<br />
countries.<br />
johanna<br />
paasikangas-tella<br />
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EUREKA!<br />
<strong>Kemira</strong> and VTT Technical Research Center<br />
of Finland jointly manage the Center of<br />
Water Efficiency Excellence, also known<br />
as SWEET, which was established in 2010.<br />
The goal is to create new technologies for<br />
water-intensive industries. The total funding<br />
for the project is EUR 120 million for<br />
2010–2014.<br />
It’s<br />
water<br />
time to focus on<br />
International, focused on the future, with<br />
customers’ needs in mind. The Finnish<br />
Funding Agency for Technology and<br />
Innovation, Tekes, is one of the financiers<br />
of SWEET. We asked Veli-Pekka<br />
Saarnivaara, Director General, why it is<br />
high time to focus on water.<br />
Text pirkko koivu · photos joanna moorhouse<br />
Why does Tekes provide<br />
funding for SWEET?<br />
SWEET has many qualities that<br />
are in line with our strategy. Much<br />
in the same manner as <strong>Kemira</strong>, we<br />
are trying to see where the world<br />
is headed and what business<br />
opportunities the future brings.<br />
Tekes wants to help Finnish<br />
companies succeed internationally.<br />
The possibilities of success<br />
increase with added value in products,<br />
and SWEET adds value by<br />
creating new types of solutions.<br />
SWEET reflects our international<br />
focus in funding. Regional<br />
clusters are disintegrating as horizons<br />
broaden beyond national<br />
borders. Problems are global, so<br />
solutions have to be global as well.<br />
We found the project to be<br />
so promising that the decision<br />
to provide funding was easy to<br />
make. Typically, we do not invest<br />
in extensive projects run by large<br />
companies. Most of our customer<br />
companies have fewer than 500<br />
employees.<br />
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EUREKA!<br />
5<br />
FACTS<br />
SWEET has three common goals for innovation. The<br />
first one is to enhance the efficiency of water use<br />
and reuse. The second goal is to develop new sustainable<br />
water chemistry solutions and products.<br />
The third one is related to dewatering sludge to be<br />
reused for energy or as nutrients.<br />
What kind of opportunities<br />
does SWEET create?<br />
SWEET elevates the profile of<br />
the water business and offers an<br />
opportunity to create an extensive<br />
network of partners in the field.<br />
This is exactly what we need in<br />
Finland. Its strengths also include<br />
a customer-oriented approach.<br />
We are happy to contribute to<br />
projects involving a large company<br />
that rethinks its strategy and<br />
shifts its focus from manufacturing<br />
products to developing services<br />
and solutions for customers.<br />
This is what customers expect<br />
nowadays.<br />
SWEET is internationally<br />
focused, which means that it<br />
offers new avenues for small companies<br />
as well. We have from the<br />
beginning hoped that small and<br />
medium-sized businesses would<br />
join the project.<br />
How do you see <strong>Kemira</strong>’s role in<br />
developing the water business?<br />
<strong>Kemira</strong> has a huge role. Tekes<br />
has made a considerable investment<br />
in the project, which is in<br />
line with our strategy. As a public<br />
funding provider, we find it<br />
more effective to provide significant<br />
support to a few promising<br />
projects than to divide the funding<br />
into small amounts among a<br />
multitude.<br />
In the future, we will increasingly<br />
support trailblazers, such<br />
as <strong>Kemira</strong>, in various fields. A<br />
large company has the resources<br />
to focus on development, and<br />
<strong>Kemira</strong> has genuinely integrated<br />
development into its business<br />
strategy.<br />
Tekes has its own water program<br />
for 2008–2012.<br />
Why was it launched?<br />
Everybody needs clean water,<br />
but it is a scarce resource. Expectations<br />
of high water quality<br />
increase with environmental<br />
awareness. In industry, for<br />
example, closed water cycles are<br />
becoming more common.<br />
Historically, the sewer system<br />
is the invention that has affected<br />
human health the most. Our strategic<br />
focuses include natural<br />
resources and sustainable economy,<br />
and water is an important<br />
natural resource which offers also<br />
new business opportunities.<br />
What kind of projects and research<br />
does your water program enhance?<br />
We want to bring together people<br />
and companies working with<br />
water. In addition, we want to<br />
support projects that make use<br />
of cutting-edge technology. This<br />
also promotes innovation. Our<br />
water program involves product<br />
development projects in small<br />
and medium-sized businesses<br />
as well as projects in research<br />
institutes.<br />
Our goal is to reform the water<br />
sector in Finland. Finnish expertise<br />
should be broadened, so that<br />
companies would be braver to<br />
enter international markets. Finland<br />
has a good competence base<br />
for municipal water management<br />
as well as industrial water treatment.<br />
The state of our waters is<br />
good, as is our reputation in environmental<br />
care.<br />
What challenges are related to<br />
developing the water business?<br />
Developing markets suffer from<br />
the most critical shortages of<br />
clean water. In these markets,<br />
municipal water issues are usually<br />
political, and market entry may<br />
prove to be difficult.<br />
Challenges in Finland include<br />
increasing cooperation among<br />
small and medium-sized businesses<br />
in water issues. We need a<br />
company like <strong>Kemira</strong> to lead the<br />
development and create an international<br />
network.<br />
Tekes promotes<br />
business<br />
development<br />
and provides<br />
funding<br />
for challenging<br />
research<br />
and development<br />
projects.<br />
Tekes provides<br />
approximately<br />
EUR<br />
600 million in<br />
annual project<br />
funding,<br />
which helps<br />
launch more<br />
than 2,000<br />
research and<br />
development<br />
projects.<br />
The goal is<br />
to turn viable<br />
ideas into<br />
business operations.<br />
Through<br />
its water program,<br />
Tekes<br />
has provided<br />
funding for 65<br />
research and<br />
product development<br />
projects<br />
in companies<br />
and for<br />
34 projects in<br />
research institutes.<br />
The total<br />
investment in<br />
its water program<br />
is EUR<br />
90 million, of<br />
which Tekes<br />
provides EUR<br />
40 million.<br />
The companies<br />
cover the<br />
rest.<br />
At the core of our strategy<br />
External funding is important for<br />
SWEET, as it enables the center to bring<br />
together experts from different companies<br />
and fields.<br />
“Chemistry is just one of these fields.<br />
Water-related innovations also require<br />
other technologies, such as measurement<br />
technologies, analysis operations<br />
and biological water treatment,” says<br />
harri kerminen, CEO of <strong>Kemira</strong>.<br />
VTT Technical Research Center<br />
of Finland and <strong>Kemira</strong> complement<br />
one another in SWEET: VTT offers<br />
resources and expertise related to various<br />
technologies, and <strong>Kemira</strong> provides<br />
water experts. The network of partners<br />
also includes other companies, such as<br />
Outotec and Metso.<br />
“We still have room for new partners,<br />
especially small and medium-sized businesses.<br />
This may be their chance to grow<br />
and go international,” says Kerminen.<br />
The total investment in SWEET is<br />
EUR 120 million over a period of four<br />
years.<br />
“Tekes plays an essential role. We are<br />
honored that Tekes has seen the significance<br />
of this project.”<br />
SWEET represents the core of <strong>Kemira</strong>’s<br />
strategy for many reasons. To begin<br />
with, <strong>Kemira</strong> seeks new solutions for<br />
water-intensive industries.<br />
“We used to focus on products, but<br />
our approach has changed. We are now<br />
focusing on the customer and developing<br />
solutions to problems in the customer’s<br />
process. Wherever we are creating<br />
something new, we are always close to<br />
the customer,” Kerminen explains.<br />
Another reason is global and obvious.<br />
“It is the big picture related to water<br />
use. The reuse is a megatrend: there is a<br />
serious shortage of usable water.”<br />
Harri<br />
Kerminen<br />
Clean water is part of Finland’s country<br />
brand. The benefits of a small country<br />
include relatively small circles:<br />
experts from different fields know one<br />
another. This enables different players,<br />
such as research institutes and companies,<br />
to collaborate with an open mind.<br />
Some of SWEET’s projects are long-term,<br />
seeking new markets as well as new<br />
solutions. Other research projects aim at<br />
faster commercialization.<br />
Altogether, SWEET has approximately<br />
30 projects in progress. The center<br />
employs more than 200 water chemistry<br />
experts from around the world. The<br />
project has already resulted in new business<br />
for <strong>Kemira</strong>, through water chemistry<br />
products used in desalination processes,<br />
for example.<br />
“The exact number varies as provjects<br />
are completed and new ones are<br />
launched,” says heidi fagerholm,<br />
Head of Research & Development and<br />
Technology for <strong>Kemira</strong>.<br />
The most progress has been made in the<br />
further development of existing products.<br />
Examples of this include new types<br />
of antiscalants and new-generation biocides<br />
as well as desalination.<br />
“The goal in desalination is to reduce<br />
costs and energy consumption. At the<br />
same time, we are extending the life<br />
cycle of microporous filters known as<br />
membranes,” Fagerholm explains.<br />
In shale gas production, the goal is to<br />
develop more sustainable methods for<br />
separating the gas from the clay shale.<br />
New chemicals improve the efficiency of<br />
the process and reduce its environmental<br />
impact. This benefits gas production<br />
in the United States and elsewhere.<br />
pirkko koivu<br />
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WE PROUDLY PRESENT<br />
Formic acid, the simplest organic acid, is<br />
chemically the same biodegradable substance<br />
that ants have produced in nature for<br />
millions of years. Friendly to the environment,<br />
formic acid is a safer alternative to<br />
many other acids for a variety of uses. It is<br />
used in the feed, textile, leather and chemical<br />
industries, to name just a few examples.<br />
With the introduction of <strong>Kemira</strong> DesinFix, a<br />
chlorine-free solution based on formic acid<br />
and hydrogen peroxide, formic acid can even<br />
be used for water disinfection.<br />
Innovations in<br />
sustainability<br />
Miraculous<br />
formic acid<br />
The common red ant has it. The bothersome<br />
nettles have it. Their sting is<br />
caused by a simplest organic acid, formic<br />
acid. Though its existence has been<br />
known for centuries, only recently has<br />
its implications been understood.<br />
Formic acid has become a significant<br />
champion of modern industries. It is<br />
used in the feed, textile, leather and<br />
chemical industries, to name just a few<br />
examples. In September <strong>2011</strong>, <strong>Kemira</strong><br />
celebrated its 30th year of formic acid<br />
at its production site in Oulu, Finland.<br />
Three decades ago, the need for yearround<br />
livestock fodder was the key business<br />
driver as Finnish farmers struggled<br />
to feed their animals.<br />
Still today, silage preservation at farms<br />
is an important application area of formic<br />
acid where <strong>Kemira</strong> remains the biggest<br />
supplier world-wide. Yet three decades<br />
of development have introduced a<br />
variety of advanced applications, helping<br />
30 years of <strong>Kemira</strong> formic acid<br />
1920s<br />
Finnish state decides to<br />
invest in domestic production<br />
of fertilizers for<br />
agriculture.<br />
1950<br />
Decision made to build<br />
a fertilizer plant in<br />
Oulu. Several expansions<br />
projects in the<br />
1950s–1960s.<br />
a wide range of industries improve their<br />
process to become safer, more sustainable<br />
and smarter with water usage.<br />
“The main target of our development<br />
work is either to replace more hazardous<br />
products with formic acid products or to<br />
improve customers’ processes,”<br />
1980s<br />
Fertilizer production<br />
decreases with drops<br />
in demand and profitability.<br />
1981<br />
<strong>Kemira</strong> and Valio Oy<br />
join forces and began<br />
production of formic<br />
acid.<br />
“Minimal<br />
impact on<br />
the environment<br />
is based<br />
on formic<br />
acid.”<br />
says marjo luoma, director<br />
of <strong>Kemira</strong>’s Formate product<br />
line.<br />
“The core benefit and the<br />
real foundation for all of the<br />
applications we have developed<br />
is the fact that formic<br />
acid is the simplest organic<br />
acid. It consists of three simple<br />
elements – carbon, oxygen and<br />
hydrogen – that are found everywhere in<br />
nature.”<br />
<strong>Kemira</strong> produces potassium formate<br />
from formic acid, for example, which is<br />
the basis of <strong>Kemira</strong>’s de-icing product<br />
Clearway F1, the leading runway de-icer.<br />
“One of the main advantages of Clearway<br />
F1 is its minimal impact on the<br />
environment compared to other de-icer<br />
products because it is based on formic<br />
acid,” says Luoma.<br />
With its roots in the agriculture and<br />
farming industry, formic acid based<br />
products are still the standard<br />
for feed acidification to preserve<br />
feed and its raw materials<br />
in the European feed industry.<br />
<strong>Kemira</strong> has been continuously<br />
improving its formic acid<br />
products. Their user-friendliness<br />
has been enhanced by<br />
reducing corrosiveness and<br />
odor. AIV Nova and AIV Ässä,<br />
the newest products for silage<br />
preservation, are good examples of successful<br />
non-corrosive products well<br />
accepted by farmers. Other additives,<br />
such as nutrients, can also be included<br />
in the formula to further improve feed<br />
quality.<br />
randel wells<br />
1987<br />
<strong>Kemira</strong> builds second<br />
production line for formic<br />
acid.<br />
1990s–2000s<br />
<strong>Kemira</strong> expands its<br />
offering and distribution<br />
network worldwide.<br />
Formic acid can be used in<br />
1. Silage preservation and feed acids for preserving<br />
feed and its raw materials.<br />
2. In the dying processes of textiles or leather as a<br />
safe pH control agent.<br />
3. In many different production processes in the<br />
chemical industry. For example, in the production<br />
of the artificial sweetener aspartame and<br />
different kinds of pesticides.<br />
1995<br />
Third production line<br />
for formic acid is added.<br />
2002<br />
Fourth production line<br />
for formic acid is added.<br />
4. In the pharmaceutical industry in the production<br />
of a number of key ingredients, such as insulin,<br />
antibiotics, vitamins, and enzymes.<br />
5. In the production of formates such as potassium<br />
formate, the basis of <strong>Kemira</strong>’s Clearway F1, the<br />
leading runway de-icer.<br />
2008<br />
Fifth production line for<br />
formic acid is added.<br />
<strong>2011</strong><br />
<strong>Kemira</strong> boosts production<br />
to more than<br />
100,000 tons per year.<br />
<strong>Kemira</strong>’s real competitive advantage<br />
in formic acid stems from its very<br />
wide and deep application knowledge<br />
base. The goal is to have a new<br />
formic acid product coming to market<br />
almost every year.<br />
“We have been focusing on applications<br />
and customer needs for three<br />
decades,” says Marjo Luoma.<br />
Currently the newest products are<br />
Tanfor A which improves the efficiency<br />
of soy bean oil epoxidation<br />
and Tanfor A-15 for the leather and<br />
textile industries.<br />
Tanfor A-15 is a rapidly biodegradable<br />
formula that can be used<br />
for pickling and<br />
dye fixing. The<br />
Tanfor products<br />
deliver<br />
such high performance<br />
that<br />
they can be used<br />
effectively with<br />
reduced dosage<br />
levels, generating<br />
greater cost<br />
efficiency for<br />
customers. This<br />
”SWEET<br />
examines<br />
how to use<br />
biomass to<br />
produce<br />
formic<br />
acid.”<br />
also reduces the customer’s wastewater<br />
loading.<br />
Formic acid is also being addressed<br />
by <strong>Kemira</strong>’s SWEET activities where<br />
the focus is on how to use biomass<br />
to produce formic acid. “There are<br />
many different processes under<br />
development that use biomass as<br />
a sustainable raw material,” notes<br />
Luoma. “We are working on developing<br />
processes to separate formic and<br />
other acids from these large-volume<br />
side streams coming from biomass<br />
processes.”<br />
3 0 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 3 1
NUMEROLOGY<br />
Stable result in turbulent times<br />
PRESS RELEASES<br />
KEMIRA GROUP REVENUE EUR MILLION<br />
KEY FIGURES<br />
ALEKSI NIEMELÄ<br />
<strong>Kemira</strong> held a well-attended<br />
Capital Markets Day* in September.<br />
The main theme, together<br />
with <strong>Kemira</strong>’s water chemistry<br />
strategy, was how well <strong>Kemira</strong> is<br />
prepared for the possible slower<br />
growth period. The main implications<br />
for <strong>Kemira</strong>’s business in<br />
such a scenario would be, in the<br />
Paper segment business, lower<br />
visibility and declining demand.<br />
In the Municipal & Industrial<br />
segment, demand would remain<br />
stable and prices for key raw<br />
materials would decline. Slower<br />
growth would have a minor<br />
impact on the current business<br />
of the Oil & Mining segment but<br />
delay some of the future growth<br />
projects.<br />
<strong>Kemira</strong>’s performance after<br />
the first nine month of <strong>2011</strong><br />
have been stable. Organic<br />
revenue growth was 6% and operative<br />
EBIT was slightly higher<br />
than in 2010. The performance<br />
of <strong>Kemira</strong>’s minority-owned JV<br />
Sachtleben, a producer of titanium<br />
dioxide, has continued to<br />
be very strong. Profits from the<br />
business have more than tripled<br />
compared to 2010.<br />
This time in the analyst<br />
interview Rauli Juva, an analyst<br />
from Nordea, will give his comments<br />
on <strong>Kemira</strong>’s performance<br />
in the first nine months of <strong>2011</strong>,<br />
expectations for the coming<br />
quarters and what he considers<br />
to be <strong>Kemira</strong>’s most important<br />
valuation drivers.<br />
At the moment there are 46%<br />
(46%) buy, 23% (23%) hold and<br />
31% (31%) sell recommendations<br />
on <strong>Kemira</strong> shares among<br />
research analysts (the figures<br />
for the are in parentheses). See<br />
the history graph of <strong>Kemira</strong>’s<br />
ratings below.<br />
<strong>Kemira</strong> started to webcast<br />
its result releases in the third<br />
quarter <strong>2011</strong> results. View the<br />
webcast of the press and analyst<br />
conference at www.kemira.com/<br />
investors, under the headline Q3<br />
Interim Report.<br />
Tero Huovinen is <strong>Kemira</strong>’s Director,<br />
Investor Relations,<br />
t. +358 (0)50 4099 373<br />
*Presentations available in<br />
kemira.com/investors.<br />
JANUARY <strong>2011</strong><br />
Jan 13 <strong>Kemira</strong><br />
announces 5–15% price<br />
increases for its paper<br />
chemicals.<br />
FEBRUARY <strong>2011</strong><br />
Feb 3 <strong>Kemira</strong> announces<br />
price increases for<br />
its acetates.<br />
Feb 18 <strong>Kemira</strong> to build<br />
two new coagulant<br />
plants at Bayer sites in<br />
Europe.<br />
MARCH <strong>2011</strong><br />
Mar 11 <strong>Kemira</strong> Chem-<br />
Solutions announces<br />
price increases.<br />
Mar 22 <strong>Kemira</strong> Oyj:<br />
The Annual General<br />
Meeting approved EUR<br />
0.48 dividend.<br />
Mar 31 <strong>Kemira</strong> Oyj has<br />
sold all its shares in<br />
Tikkurila Oyj.<br />
Mar 31 São Paulo<br />
receives center for<br />
R&D focusing on water<br />
chemistry.<br />
APRIL <strong>2011</strong><br />
Apr 8 <strong>Kemira</strong>’s Environmental<br />
Report 2010<br />
published.<br />
Apr 13 <strong>Kemira</strong> announces<br />
price increase<br />
for Formic acid.<br />
Apr 28 <strong>Kemira</strong> Oyj has<br />
received a damage<br />
claim for violations of<br />
competition law.<br />
MAY <strong>2011</strong><br />
May 3 <strong>Kemira</strong> Oyj’s<br />
interim report January-<br />
March <strong>2011</strong>: Operative<br />
EBIT improved notably.<br />
May 9 Harri Kerminen<br />
opens The NASDAQ<br />
Stock Market in New<br />
York.<br />
May 19 <strong>Kemira</strong><br />
announces 5–20% price<br />
increases for its paper<br />
chemicals.<br />
JUNE <strong>2011</strong><br />
June 1 New R&D<br />
center opens in São<br />
Paulo.<br />
June 9 <strong>Kemira</strong> Oyj:<br />
Damage claim for<br />
<strong>Kemira</strong> Chemicals<br />
Oy for violations of<br />
competition law.<br />
June 13 Change in<br />
<strong>Kemira</strong>’s Municipal &<br />
Industrial segment’s<br />
management.<br />
June 30 <strong>Kemira</strong><br />
Oyj signed EUR 300<br />
million revolving credit<br />
facility.<br />
JULY <strong>2011</strong><br />
July 8 <strong>Kemira</strong> Oyj:<br />
Financial reporting<br />
schedule for the year<br />
2012.<br />
July 14 <strong>Kemira</strong> announces<br />
price increase<br />
for Acetate based<br />
De-icers.<br />
July 28 <strong>Kemira</strong> Oyj’s<br />
interim report January-<br />
June <strong>2011</strong>: Profit<br />
before tax improved,<br />
guidance unchanged.<br />
SEPTEMBER <strong>2011</strong><br />
Sept 7 <strong>Kemira</strong><br />
announces price<br />
increases for hydrogen<br />
peroxide in EMEA.<br />
Sept 15 <strong>Kemira</strong><br />
Oyj: Riikka Timonen<br />
appointed Director,<br />
Sustainability.<br />
Sept 30 Oil & Gas now<br />
present in Dubai.<br />
OCTOBER <strong>2011</strong><br />
Oct 13 <strong>Kemira</strong> sold<br />
Galvatek to Folmer<br />
Equity Fund I Ky.<br />
Oct 17 <strong>Kemira</strong> Oyj:<br />
Production of polyaluminium<br />
chloride<br />
restarted in Krems,<br />
Austria.<br />
Oct 26 <strong>Kemira</strong> has<br />
moved to a new water<br />
treatment chemicals<br />
plant in Tallinn,<br />
Estonia.<br />
Oct 27 <strong>Kemira</strong> sells<br />
Canadian hydrogen<br />
peroxide plant to<br />
Evonik.<br />
Oct 27 <strong>Kemira</strong> Oyj:<br />
Wolfgang Büchele has<br />
been appointed <strong>Kemira</strong><br />
Oyj’s President and<br />
CEO following Harri<br />
Kerminen’s retirement.<br />
Oct 27 <strong>Kemira</strong> Oyj’s<br />
interim report January-<br />
September <strong>2011</strong>:<br />
Stable performance.<br />
Oct 27 Hannu<br />
Virolainen appointed<br />
President, Municipal &<br />
Industrial.<br />
Oct 31 <strong>Kemira</strong>’s<br />
desalination solutions<br />
reduce costs in China.<br />
560<br />
540<br />
520<br />
500<br />
480<br />
460<br />
440<br />
Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311<br />
OPERATIVE EBIT EUR MILLION<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311<br />
MID TERM FINANCIAL TARGETS<br />
• Growth in revenues<br />
Mature markets > 3%<br />
Emerging markets > 7%<br />
• Earnings before interest<br />
and taxes (EBIT),<br />
% of revenue > 10%<br />
OMX HELSINKI<br />
10000*<br />
8000*<br />
6000*<br />
• Cash flow after CAPEX<br />
and dividend > € 0M<br />
• Gearing < 60%<br />
KEMIRA<br />
MEUR Q3/<strong>2011</strong> Q3/2010 2010<br />
Revenue 558.3 554.4 2160.9<br />
Operative,<br />
EBIT<br />
Operative.<br />
EBIT. %<br />
OWNERSHIP<br />
40.8 42.5 162.3<br />
7.3 7.7 7.5<br />
EPS (EUR) 0.21 0.23 0.73<br />
CapEx excl.<br />
Acquisitions<br />
Cash flow<br />
after<br />
investments<br />
Gearing,<br />
%, end of<br />
period<br />
Equity ratio,<br />
%, end of<br />
period<br />
Personnel,<br />
end of period<br />
Oras Invest Oy 18.2%<br />
Solidium Oy 16.7%<br />
Varma 7.5%<br />
Ilmarinen 5.2%<br />
Other Finnish inst.20.4%<br />
37.3 46.6 107.8<br />
56.7 6.6 168.6**<br />
35 43** 39**<br />
52 52** 54**<br />
5033 4985 4935<br />
** Includes Tikkurila until March 25, 2010<br />
Non-Finnish owners,<br />
incl. nominee-registered<br />
institutions 13.7%<br />
Households 16.2%<br />
<strong>Kemira</strong> 2.1%<br />
January <strong>2011</strong> November <strong>2011</strong> January <strong>2011</strong> November <strong>2011</strong><br />
15<br />
12<br />
9<br />
6<br />
3 2 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 3 3
NUMEROLOGY<br />
Bubbling under<br />
<strong>Kemira</strong> presents its know-how, products, experiences<br />
and ideas in different events, shows and<br />
exhibitions all around the world. Here is a pick of<br />
a few interesting events, either past or becoming.<br />
Each issue of <strong>WaterLink</strong> contains an interview with an analyst themed on <strong>Kemira</strong>.<br />
Q&A: Rauli Juva, Nordea<br />
See you around!<br />
Could you comment on <strong>Kemira</strong>’s<br />
performance so far <strong>2011</strong>?<br />
<strong>Kemira</strong> has managed the increasing raw material<br />
prices relatively well with Q3 showing an expected<br />
margin recovery after Q2. However the sudden<br />
demand weakness in Q4 was disappointing and in<br />
addition to the more temporary factors indicates<br />
that <strong>Kemira</strong> currently suffers more than expected<br />
from the lower volumes in pulp and paper industry.<br />
Do you think the water chemistry strategy has made<br />
<strong>Kemira</strong> less cyclical and exposed to market volatility?<br />
Definitely yes. Although the Paper segment is still<br />
somewhat cyclical, even there the mix has changed<br />
and is changing towards less cyclical end-markets<br />
and the demand in other segments is more steady.<br />
<strong>Kemira</strong>’s own efforts in improving the pricing vs.<br />
raw material costs changes have also helped reduce<br />
earnings volatility.<br />
What do you consider as <strong>Kemira</strong>’s most<br />
important valuation drivers?<br />
From an equity investor’s point of view I see<br />
the EBIT margin improvement towards the targeted<br />
10% and the ability to tap into the growth<br />
in emerging markets as the key drivers in the near<br />
term.<br />
ANALYST ESTIMATES Q1 2010 – Q3 <strong>2011</strong><br />
2400<br />
2350<br />
2300<br />
2250<br />
2200<br />
2150<br />
2100<br />
2050<br />
2000<br />
4/10 5/10 7/10 8/10 11/10 12/10 2/11 4/11 5/11 7/11 8/11 9/11 10/11 11/11<br />
Sales FY <strong>2011</strong> Sales FY 2012<br />
When talking with your clients (i.e., investors)<br />
about <strong>Kemira</strong>, is the <strong>Kemira</strong> story<br />
today easier to “sell” than say two to three<br />
years ago?<br />
Yes. The clear strategy focus on the water<br />
business, which offers solid growth potential<br />
for decades, along with the shift to a<br />
less cyclical company with better<br />
pricing power as discussed<br />
above, has made <strong>Kemira</strong> a better<br />
investment story. Of course,<br />
this is supported also by the<br />
improved financial performance,<br />
all of which shows<br />
that the current strategy is<br />
working.<br />
What are your expectations for<br />
<strong>Kemira</strong>’s performance going<br />
into, 2012?<br />
I expect to see earnings<br />
growth, driven especially by<br />
the Municipal & Industrial<br />
unit’s improving pricing. The<br />
Paper division is clearly the<br />
risk factor as it is exposed to a<br />
potential further slowdown in<br />
the economy.<br />
Disclaimer: The data in the graphs has been issued by Vara Research GmbH for information purposes only and is not intended to constitute investment advice. It is based on estimates and<br />
forecasts of various analysts regarding revenues, earnings and business developments of the relevant company. The company did not participate in the compilation of the estimates and<br />
it does not endorse them. Such estimates and forecasts cannot be independently verified by reason of the subjective character. Vara Research GmbH gives no guarantee, representation or<br />
warranty and is not responsible or liable as to its accuracy and completeness.<br />
8,60%<br />
8,10%<br />
7,60%<br />
7,10%<br />
6,60%<br />
4/10 5/10 7/10 8/10 11/10 12/10 2/11 4/11 5/11 7/11 8/11 9/11 10/11 11/11<br />
Operative EBIT=%, FY <strong>2011</strong> Operative EBIT=%, FY 2012<br />
JOANNA MOORHOUSE<br />
U.S.<br />
Association of Water Technologies Exposition<br />
(AWT <strong>2011</strong>)<br />
Atlanta, Sept 14–17<br />
<strong>Kemira</strong>’s theme for this key show for the North<br />
American chemicals industry was built around<br />
Solutions that grow with your industrial water<br />
needs, and the <strong>Kemira</strong> team highlighted its Kem-<br />
Guard Antiscalants, line of food Grade defoamers,<br />
as well as development efforts to create more<br />
sustainable biocide chemistries.<br />
Water Quality Technology Conference (WQTC)<br />
Phoenix, Nov 13–16<br />
The AWWA Water Quality Technology Conference<br />
and Exposition (WQTC) helps thousands of water<br />
quality professionals from across the globe keep<br />
up to date with the latest research, regulations,<br />
and technological advances for keeping drinking<br />
water safe.<br />
Informex USA 2012<br />
New Orleans, Feb 14–16, 2012<br />
Informex is the leading event in the global fine,<br />
custom and specialty chemical industries. <strong>Kemira</strong><br />
is attending the show together with Alcan International<br />
Network U.S.A. LLC.<br />
France<br />
Food Ingredients Europe <strong>2011</strong><br />
Paris, Nov 29–Dec1<br />
Fi Europe brings together the world’s leading<br />
food and beverage suppliers, R&D, production<br />
and marketing specialists. <strong>Kemira</strong>’s ChemSolutions<br />
Food team participated in the show for the<br />
third time and showcased Provian products, used<br />
for meat shelf-life extension and food safety;<br />
Probake products used for bakery shelf life<br />
extension as well as Progusta products which are<br />
used for acidification and flavoring.<br />
6 th World Water Forum<br />
Marseille, March 12–17, 2012<br />
The world’s largest meeting around water, World<br />
Water Forum, has since 1997 mobilized creativity,<br />
innovation, competence and know-how in favor<br />
of water. <strong>Kemira</strong> will be present in Marseille<br />
this year together with a network of top Finnish<br />
cleantech companies, Cleantech Finland, and a<br />
number of other Finnish companies.<br />
China<br />
<strong>2011</strong>(7 th ) China International Exhibition on<br />
Water Treatment Chemicals, Technologies and<br />
Applications<br />
Shanghai, Nov 7–9<br />
As one of the most specialized exhibitions, the<br />
annual China International Water Treatment Chemicals<br />
exhibition is becoming a key event for<br />
leading chemicals companies, including <strong>Kemira</strong>.<br />
<strong>Kemira</strong> showcased solutions for both for municipal<br />
and industrial water treatment, including<br />
products such as flocculants, organic and inorganic<br />
coagulants, defoamers, biocides, antiscalants<br />
and products for sludge treatment and color<br />
removal.<br />
India<br />
10 th International Exhibition and Conference on<br />
Pulp and Paper Industries, PAPEREX <strong>2011</strong><br />
New Delhi, Dec 10–13<br />
Paperex <strong>2011</strong> showcases the best products and<br />
services in the paper industry. The event brings<br />
together industry professionals and experts to<br />
discuss strategies, available opportunities and<br />
challenges in the paper and pulp industry. It also<br />
opens up avenues for international trade and<br />
business opportunities for the exhibitors.<br />
Brazil<br />
Brazilian Pulp and Paper Technical Association<br />
(ABTCP) in São Paulo, Brazil<br />
São Paulo, October 3–5<br />
Some 2,000 people visited <strong>Kemira</strong> stand at the<br />
44rd ABTCP congress in São Paulo. ABTCP is the<br />
meeting point for industry professionals and it<br />
provides an excellent opportunity for <strong>Kemira</strong> to<br />
communicate about our products and services.<br />
3 4 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 3 5
AVEC<br />
The compelling green<br />
challenge<br />
Wise energy use is among the<br />
greatest challenges of our time. How<br />
can we ensure energy for everyone?<br />
When Elina Engman began her<br />
studies in the early 1990s, energy<br />
was anything but topical.<br />
Text PIRKKO KOIVU · Photos MAREK SABOGAL<br />
3 6 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 3 7
AVEC<br />
“Industrial customers<br />
are already<br />
asking the same<br />
questions as<br />
consumers.”<br />
The more interested consumers are in sustainable<br />
development, the more they need to know what<br />
kind of ecological footprint products have in terms of<br />
manufacture and energy.<br />
“Companies are already being asked these questions,”<br />
says elina engman, Vice President of<br />
Energy at <strong>Kemira</strong>.<br />
“Let’s take these leather shoes,” she says, pointing<br />
at her and my shoes.<br />
“The leather has been tanned with formic acid. The<br />
formic acid has probably been manufactured in our<br />
Oulu plant. If consumers are aware of this, they want<br />
to know what type of energy was used to manufacture<br />
the formic acid.”<br />
Engman believes that companies will not be able to<br />
avoid sustainability issues, such as energy efficiency.<br />
Quite the contrary, these issues will become even<br />
more important. <strong>Kemira</strong>’s products are not directly<br />
intended for private consumers, but industrial customers<br />
are asking the same questions.<br />
“Our customers in the paper industry, for example,<br />
want to know what kind of energy was used to manufacture<br />
a paper production chemical.”<br />
<strong>Kemira</strong>’s answer is carbon-free electricity generated<br />
by wind, nuclear, process or water power. And<br />
the formic acid for our shoes? <strong>Kemira</strong>’s plant in Oulu<br />
will soon be powered by steam from a biopower<br />
plant. The formic acid is biodegradable and contains<br />
no sulphur compounds.<br />
With her team, Engman is responsible for ensuring<br />
sufficient energy supply for <strong>Kemira</strong>’s production<br />
plants. Purchasing decisions are made in collaboration<br />
with production and sales: production lets her<br />
team know for what purposes energy is needed, and<br />
sales lets them know how much.<br />
Engman’s work is wide-ranging, as <strong>Kemira</strong> operates<br />
in around 40 countries and has over 100 production<br />
plants. Each country has its own energy market,<br />
and each plant needs different amounts and different<br />
types of energy. In addition to electricity, <strong>Kemira</strong> purchases<br />
oil and gas.<br />
“Energy is always local. It is produced and consumed<br />
locally. From our headquarters in Helsinki,<br />
it is difficult to handle energy purchasing in North<br />
America, for example. Because of this, we have local<br />
teams that work in agreed-upon ways.”<br />
5<br />
FACTS<br />
Your favorite<br />
drink?<br />
Tap water.<br />
I also enjoy<br />
a glass of good<br />
red wine.<br />
What book<br />
did you read<br />
last?<br />
Antti Tuuri’s<br />
centennial<br />
history of<br />
the Finnish<br />
construction<br />
company Lemminkäinen.<br />
Whom<br />
would you<br />
bring with you<br />
to a deserted<br />
island?<br />
My family.<br />
Also, I have<br />
wanted a dog<br />
for a long<br />
time, so I<br />
would get one<br />
before leaving<br />
for the island.<br />
Your favorite<br />
means of<br />
transportation?<br />
Bicycle and my<br />
own two feet.<br />
What makes<br />
you happy?<br />
Success<br />
achieved with<br />
others, and<br />
the important<br />
people in my<br />
life.<br />
It is obvious that Engman is enthusiastic about<br />
her job. When asked, she lists several reasons for her<br />
work being particularly rewarding: wonderful colleagues<br />
and the opportunity to always learn something<br />
new, to begin with. She also has the opportunity<br />
to see, on a concrete level, how energy is linked<br />
to <strong>Kemira</strong>’s finances, funding, environmental work<br />
and communications, for example.<br />
“Energy is related to everything and concerns everyone,<br />
companies and ordinary people alike,” she<br />
says.<br />
Engman’s work includes traveling to different parts<br />
of the world. She accumulates 50–100 travel days per<br />
year and has visited more than 30 of <strong>Kemira</strong>’s production<br />
plants.<br />
The more a plant consumes energy, the more likely<br />
Engman is to pay a visit.<br />
“I always want to see the production side of things!<br />
In addition to new perspectives, it gives me drive. It<br />
is great to see how proud people around the world<br />
are of their plants and how interested they are in<br />
energy efficiency. Many of the ideas I have heard on<br />
these travels have already been implemented,” she<br />
says.<br />
In addition, Engman keeps in touch with stakeholders<br />
and meets colleagues from other companies.<br />
It is always useful to hear how issues have been<br />
solved in other industries. She also participates in<br />
the activities Cefic, the European Chemical Industry<br />
Council, among other associations and organizations.<br />
Engman was hired in 2005. At the time, electricity<br />
and energy were not major topics. Energy concerns<br />
were even less trendy in the early 1990s, when<br />
Engman began her studies at Helsinki University of<br />
Technology, specializing in power plant engineering.<br />
“I have always been interested in energy technology,<br />
particularly in the links between energy, society<br />
and the environment.”<br />
Over the past couple of years, energy and the environment<br />
have become major issues. Engman sees<br />
this change especially in young people, including her<br />
school-age children: they want to know the origin<br />
of products, and they recycle. Adults are becoming<br />
more aware as well. They discuss carbon footprints<br />
during coffee breaks and compare different heating<br />
methods.<br />
3 8 • W A T E R L I N K 3 • 2 0 1 1<br />
K E M I R A S T A K E H O L D E R M A G A Z I N E • 3 9
AVEC<br />
“I have always been interested in energy<br />
technology, particularly in the links between<br />
energy, society and the environment.”<br />
The leather of the boots has been tanned with formic acid that has probably been manufactured in our Oulu plant. Dress IvanaHelsinki, boots Seychelles/IvanaHelsinki.<br />
Engman’s friends and acquaintances often consult<br />
her—not only because of her work and expertise.<br />
They know her to be a “true believer” in energy efficiency,<br />
as she puts it. Engman commutes by bus and<br />
subway. She makes sure that no one leaves the lights<br />
on at the office when not needed, and she also monitors<br />
energy consumption at home, pulling the plug<br />
on her children’s cell-phone chargers if left plugged<br />
in too long.<br />
“Little choices and changes go a long way in energy<br />
efficiency at home—in the shower, for example. A considerable<br />
part of our daily energy consumption consists<br />
of warm water that goes down the drain, literally.”<br />
In one area of life, however, Engman does not save<br />
energy: exercising. She consumes her physical energy<br />
in fitness classes and by running and playing golf. As<br />
a result of all this hard work, she looks fit and fresh.<br />
“In terms of exercising, anything goes. I also like<br />
hiking, and I hunt moose and birds in the fall.”<br />
Engman and her husband have three school-age<br />
children. The family shares a love for the outdoors.<br />
The children are scouts, and the family loves to visit<br />
their summer cottage and go boating in the Finnish<br />
Archipelago. That’s why all family members are<br />
interested in the state of the Baltic Sea.<br />
“There have been little, delightful improvements.<br />
You can fish for flatfish again, and bladderwrack is<br />
back,” she points out.<br />
Engman feels that she can promote sustainability in<br />
her work. <strong>Kemira</strong>’s energy strategy is in line with the<br />
company’s way of thinking.<br />
“I think it’s wonderful that water, its efficient use<br />
and recycling are at the core of our strategy. Energy<br />
saving and energy efficiency go hand in hand with<br />
<strong>Kemira</strong>’s strategy.”<br />
Energy efficiency is not new at <strong>Kemira</strong>. For years<br />
now, the company has made every effort to save energy<br />
and use it more efficiently. The latest investment in<br />
this area is the E3 program, which was launched last<br />
year. The program is headed by jukka aarinen, supported<br />
by steve mcpherson in North America.<br />
The goal is to save approximately EUR 10 million<br />
by the end of 2012. About 20 of <strong>Kemira</strong>’s plants have<br />
been or will be reviewed during the 18-month period.<br />
According to Engman, <strong>Kemira</strong> will focus on capitalizing<br />
on the opportunities discovered during the<br />
reviews.<br />
The reviews have uncovered big and small ways<br />
to save energy. The big ones include the opportunity<br />
discovered at the Helsingborg plant in Sweden,<br />
where efficiency was improved by increasing<br />
the strength of peroxide in the production of coated<br />
sodium percarbonate, also known as ECOX. The<br />
small ways include the opportunity at the Fray Bentos<br />
plant in Uruguay, where the reactions in chlorate<br />
production were accelerated by raising the temperature<br />
of the feed liquid in the cells.<br />
In improving energy efficiency, the initial observation<br />
and the ensuing change in thinking are often<br />
enough. Changes that require little or no investment<br />
are the fastest to implement. Sometimes it is<br />
necessary to change an operating method or part<br />
of a process. Energy efficiency can also mean making<br />
use of waste heat or be related to the use of<br />
materials.<br />
If one unit discovers an opportunity to save energy,<br />
the solution is copied, whenever possible, to be used<br />
by other production plants.<br />
Energy efficiency is also considered in purchases.<br />
When acquiring new equipment, the cheapest<br />
option is not always the most inexpensive one. The<br />
entire life cycle of the equipment must be taken into<br />
account, as well as the energy it will consume during<br />
its life.<br />
Can <strong>Kemira</strong> still enhance the efficiency of its<br />
energy use?<br />
“Certainly,” says Engman.<br />
It also depends on energy prices. If they keep rising,<br />
the company can reconsider solutions that are<br />
not currently profitable.<br />
“There may be new directives, national or international<br />
ones. We may also develop new products and<br />
solutions that save energy.”<br />
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K E M I R A S T A K E H O L D E R M A G A Z I N E • 4 1
Companions<br />
Cleantech Finland is an association of top<br />
companies and experts. It promotes the<br />
visibility of Finnish cleantech companies<br />
abroad. Finpro is responsible for marketing<br />
and communications related to Cleantech<br />
Finland. Launched in 2008, the Cleantech<br />
Finland program is intended to continue to<br />
at least 2015.<br />
Opening doors for clean technology<br />
Cleantech Finland, a network of top Finnish environmental companies,<br />
helps businesses reach the right target groups around the world.<br />
Text johanna paasikangas-tella ∧ Photo joanna moorhouse<br />
HULKKONEN: “Cleantech Finland facilitates the growth<br />
of environmental business in Finland by bringing<br />
together leading cleantech companies as well<br />
as organizations supporting the cleantech business.<br />
Cleantech Finland is among the most important projects<br />
in Finpro’s history, and it has immense national<br />
significance. The network consists of 80 member companies<br />
and 20 other partners.<br />
The project aims to establish Finland as the world<br />
leader in cleantech. We organize events that increase<br />
our member companies’ visibility. We also invest in<br />
electronic networking and serve as a marketing communications<br />
partner for Finnish companies abroad.<br />
At the beginning of 2012, Cleantech will launch<br />
SOLVED, which integrates cleantech companies, customers<br />
and media as well as problems and solutions<br />
into a dynamic online expert service. The service will<br />
be used to channel experience, and it will also provide<br />
information for buyers, suppliers and investors.<br />
This one-stop shop can be used to promote Finnish<br />
water expertise internationally.<br />
Finland has a great deal of top expertise in environmental<br />
issues, and makes considerable investments<br />
in competence development. Collaboration<br />
enhances networking, enabling partnerships with top<br />
players in developing markets. This will keep Finland<br />
in the forefront of development.<br />
The brand of Cleantech Finland already has incredible<br />
value. It attracts international attention weekly,<br />
even daily. Finland is among the five leading cleantech<br />
countries in the world and has received considerable<br />
visibility through Cleantech Finland.<br />
<strong>Kemira</strong> has actively contributed to Cleantech Finland’s<br />
operations and strategy. This cooperation<br />
strongly supports <strong>Kemira</strong>’s water-focused strategy.”<br />
Santtu Hulkkonen<br />
manages the<br />
Cleantech Finland<br />
program at Finpro<br />
and heads a team<br />
of eight. According<br />
to Hulkkonen, the<br />
cleantech sector<br />
has great growth<br />
potential and offers<br />
an opportunity to<br />
strengthen collaboration<br />
among<br />
various players.<br />
Arja Vanhanen,<br />
<strong>Kemira</strong>’s Director of<br />
Product Marketing,<br />
is looking for new<br />
ways for <strong>Kemira</strong> to<br />
contribute to cleantech<br />
collaboration.<br />
She is preparing<br />
for the 6th World<br />
Water Forum, which<br />
will be held in Marseilles,<br />
France in<br />
March 2012. <strong>Kemira</strong><br />
will share Finland’s<br />
pavilion with Cleantech<br />
Finland at the<br />
event.<br />
VANHANEN: “For <strong>Kemira</strong>, Cleantech Finland offers an<br />
excellent opportunity to contribute to the development<br />
of Finnish expertise in the field. Collaboration<br />
also makes us more effective in making environmentally<br />
friendly options available to the rest of the<br />
world.<br />
We seek to participate in water-related events and<br />
programs, especially in our key markets. Cleantech<br />
collaboration also brings delegations from developing<br />
markets to Finland.<br />
Cleantech Finland maintains regular contact with its<br />
member companies, helping them find new ways to<br />
improve visibility and create contacts. There are surprisingly<br />
many ways to participate, and we try to<br />
choose the options that work best for us.<br />
Collaboration brings us visibility in forums and<br />
media that are important to us. In some cases, we<br />
would not have the resources to take part on our own,<br />
but the network makes participation possible.<br />
We appreciate the way in which Cleantech Finland<br />
has strengthened its organization in growth markets.<br />
Cooperation with ministries, government officials<br />
and organizations enables companies to make a difference,<br />
even on a high level. Cleantech Finland creates<br />
national and international networks as well as<br />
opportunities for networking among member companies.<br />
Finpro’s role as the administrator of Cleantech Finland<br />
comes naturally. Finpro opens doors for Finnish<br />
companies abroad and puts them in contact with<br />
local decision-makers. Finpro’s extensive expert<br />
organization helps <strong>Kemira</strong> see the future from the<br />
perspectives of different markets. In Finpro, we have<br />
a reliable partner that regularly offers us opportunities<br />
to export our expertise.”<br />
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K E M I R A S T A K E H O L D E R M A G A Z I N E • 4 3
When Elina Engman became Vice President of Energy at<br />
<strong>Kemira</strong> in 2005, energy saving was not a topical issue.<br />
Now it has become one. Industrial customers are as interested<br />
as consumers are in the quality and origin of energy.<br />
Our interview with Engman begins on page 36.<br />
In this issue ...<br />
Creating the future<br />
Büchele believes in curiosity p. 6<br />
Bioethanol from Brazil<br />
Energy from sugar cane p. 8<br />
No paper without water<br />
Water is vital for the forest industy p. 12<br />
4 4 • W A T E R L I N K 3 • 2 0 1 1