UPM - International Color Consortium

Transcription

Your Partner in Paper 2006
Contents
Your Partner in Paper
Key figures
Paper capacities
Paper markets
Paper grades
Positioning - World
Positioning – Europe
Trade flows
Demand
General informaation
UPM
February 2, 2006
2
UPM – Key figures
KEY FIGURES
Executive Team
President & CEO - Jussi Pesonen
Jyrki Salo
EVP and CFO
Magazine
Papers
Newsprint
Jyrki
Ovaska
President
Hartmut
Wurster
President
Fine &
Speciality
Papers
Matti
Lievonen
President
Wood
Products
Converting/
Labelstock
Converting/
Speciality
Coatings
Harald
Finne
President
Heikki
Pikkarainen
President
Matti J
Lindahl
President
Heikki Malinen
EVP
Strat. Development
Markku Tynkkynen,
EVP
Resources
Pirkko Harrela
EVP
Communications
Hans Sohlström
EVP
Marketing
Pauli Hänninen
EVP
Business Development
Riitta Savonlahti
EVP
Human Resources
UPM
February 2, 2006
4
KEY FIGURES
UPM – Key figures 2005-2002
2005
2004
2003
Sales total
EUR million
9,348
9,820
9,790
Profit before tax
EUR million
260
560
430
Paper production
Sawn timber
Plywood
Chemical pulp
Personnel at 31.12
1,000 tons
1,000 m3
1,000 m3
1,000 tons
10,220
2,150
970
1,840
31,500
10,890
2,410
970
2,240
33,400
10,230
2,410
940
2,030
34,500
UPM
February 2, 2006
5
KEY FIGURES
UPM – Sales by division
€ 9,350 million in 2005
Wood Products
13%
Other 5%
Converting
14%
Magazine papers
32%
Fine and Speciality papers
23%
Newsprint
13%
Papers 68%
UPM
February 2, 2006
6
KEY FIGURES
UPM - Sales by market area 2005
Other 4%
Asia 9%
Germany 16%
North America 14%
UK 13%
Other Europe 5%
Finland 10%
Other EU 22%
France 7%
Total sales € 9,350 million
EU 70%, Europe 74%
UPM
February 2, 2006
7
KEY FIGURES
UPM – Personnel by division 31.12.2005
Other operations
11%
Magazine papers
26%
Wood Products
20%
Newsprint
11%
Converting
11%
Fine and speciality papers
21%
Total personnel 31,500
UPM
February 2, 2006
8
KEY FIGURES
UPM – Personnel by area 31.12.2005
Asia Pacific 5%
North America 6%
Other Europe 5%
Other EU 5%
UK 5%
France 5%
Finland 55%
Germany 14%
Total personnel 31,500
UPM
February 2, 2006
9
Paper capacities
UPM
February 2, 2006
10
PAPER CAPACITIES
UPM - Paper capacity by market 2006
USA 3%
Canada 4%
China 6%
Austria 4%
France 6%
UK 6%
Finland 48%
Germany 23%
Paper production capacity 12.6 million tons
Europe 84%
UPM
February 2, 2006
11
PAPER CAPACITIES
UPM – paper capacity by market 2006
'000 tons
6020
Finland
Germany
2930
China
800
Great Britain
800
France
780
Austria
490
Canada
450
350
USA
0
1000
2000
3000
4000
5000
6000
7000
Total 12.6 mill. tons of which 52% outside Finland
UPM
February 2, 2006
12
PAPER CAPACITIES
UPM – Total paper capacity
by paper division 2006
'000 tons
SC Magazine
1,850
Coated mech. 3,870
Magazine Papers
Newsprint 2,810
Newsprint
Fine and Speciality
Papers
Coated WF
1,680
0
1000
Uncoated WF
1,620
2000
3000
Specs
790
4000
5000
6000
Total 12.6 mill. tons of which 52% outside Finland
UPM
February 2, 2006
13
PAPER CAPACITIES
UPM – Paper capacities 2006
Nordland
Rauma
Kymi
Jämsänkoski
Changshu
Schongau
Kaipola
Kajaani
Kaukas
Shotton
Augsburg
Steyrermühl
Tervasaari
Miramichi
Voikkaa
Blandin
Chapelle
Schwedt
Stracel
Caledonian
Wisapaper
Docelles
LWC
SC
Newsprint
WFC
WFU
Label
Packaging
0
UPM
200
400
600
800
1000
1200
1400 '000 tons
February 2, 2006
14
PAPER CAPACITIES
UPM – Total paper capacity 2006
’000 tons
Coated Mechanical
3870
SC
1850
Newsprint
2810
WF Coated
1680
WF Uncoated
Speciality Papers
1620
790
Total 12.6 mill. tons
UPM
February 2, 2006
15
PAPER CAPACITIES
UPM Paper Divisions
Paper and pulp capacities 2006
'000 tons
Augsburg
Blandin
Caledonian
Changshu
Chapelle
Docelles
Jämsänkoski
Kaipola
Kajaani
Kaukas
Kymi
Miramichi
Nordland
Rauma
Schongau
Schwedt
Shotton
Steyrermühl
Stracel
Tervasaari
Voikkaa
Wisapaper/Wisapulp
Total capacity
UPM
Mag
News
Fine &
Specs.
Pulp
500
350
280
800
350
730
300
160
580
150
140
390
450
950
740
520
450
1,400
1,260
230
190
280
500
300
520
300
460
240
190
4,090
775
2,295
410
5, 720
2,810
February 2, 2006
16
UPM paper markets
PAPER MARKETS
UPM - Paper and pulp mills in the world
Pietarsaari (also pulp)
Jämsäkoski
Kaipola
Tervasaari (also pulp)
Rauma
Kajaani
Voikkaa
Kymi
(also pulp)
Kaukas
(also pulp)
Caledonian
Shotton
Miramichi
Blandin
Changshu
UPM
Nordland
Chapelle
Docelles
Stracel
Schwedt
Augsburg
Schongau
Steyremühl
February 2, 2006
18
PAPER MARKETS
UPM – Paper Mill Heads
Augsburg
Sebastian Loewenberg
Miramichi
Timo Suutarla
Blandin
Joe Maher
Nordland
Hannu Jokisalo
Caledonian
Gordon Mitchell
Rauma
Pertti Asunmaa
Changshu
Hannu Jokisalo
Schongau
Artur Stöckler
Chapelle
Timo Heinonen
Schwedt
Juha Kääriäinen
Docelles
Michel Chakaï
Shotton
David Ingham
Jämsänkoski
Erkki Puru
Steyrermühl
Walter Pillwein
Kaipola
Leo Lindroos
Stracel
Philippe Gaudron
Kajaani
Kari Pasanen
Tervasaari
Eero Kuokkanen
Kaukas
Harry Sundqvist =>1.3.2006
Voikkaa
Raimo Särkelä
Kymi
Yngve Lindström
Wisapaper
Jari A Vainio
UPM
February 2, 2006
19
PAPER MARKETS
Paper sales by product category 2005
Speciality Papers
7%
Uncoated Woodfree
11%
Coated Papers
31%
Coated Woodfree
11%
Newsprint
25%
SC Magazine
15%
Total 10.1 million tons
UPM
February 2, 2006
20
PAPER MARKETS
UPM – Paper sales by market area 2005
Other markets
4%
Asia
12%
USA and Canada
13%
Other Europe
5%
Finland
3%
EU
66%
Total 10.1 million tons
Europe 72%
UPM
February 2, 2006
21
UPM – Top market areas 2005
1. Germany
2. Great Britain
3. USA
4. France
5. Italy
6. China
7. Spain
8. Finland
9. Japan
10. Netherlands
11. Austria
12. Poland
13. Belgium
14. Switzerland
15. Australia
16. Russia
17. Denmark
18. Turkey
19. India
20. Korea
’000 tons
1936
1443
1228
738
477
395
368
345
226
215
205
199
178
133
117
115
103
100
88
79
Total paper sales 10.1 million tons
UPM
February 2, 2006
22
PAPER MARKETS
UPM - Paper mills and sales network
Paper mills
Sales company
Agent
Logistics
UPM
22 paper mills
Sales representation in 55 countries
February 2, 2006
23
PAPER MARKETS
Paper supply chain
from mills to customers
22 paper mills in

Austria 1
Canada 1
China 1
Finland 9
France 3
Germany 4
Great Britain 2
USA 1

Sales representation
in 55 countries
customers in 120 countries
12.6 million tons, 51 PMs
UPM
February 2, 2006
24
Paper grades
UPM
February 2, 2006
25
PAPER GRADES
Relative quality and price of
paper grades
Relative price
UPM Finesse
UPM Fine
UPM Star
MFC
UPM Satin, UPM Matt
UPM Smart, UPM Cat,
UPM Lux, UPM Max, UPM Eco
UPM Brite, UPM Opalite,
UPM Color
UPM News
News
SC
MFS
WFU
MWC
LWC
UPM Ultra, UPM Cote
WFC
CHANGSHU, KYMI,
NORDLAND
CHANGSHU, KYMI,
NORDLAND
KAUKAS, RAUMA
AUGSBURG, BLANDIN, CALEDONIA, KAIPOLA, KAUKAS,
MIRAMICHI, RAUMA, STRACEL, VOIKKAA
JÄMSÄNKOSKI, STRACEL, VOIKKAA
JÄMSÄNKOSKI, KAJAANI, RAUMA, SCHONGAU,
STEYRERMÜHL
CHAPELLE, KAIPOLA, KAJAANI, SCHONGAU
CHAPELLE, KAIPOLA, KAJAANI,
SCHONGAU, SCHWEDT, SHOTTON, STEYRERMÜHL
Relative quality
UPM
February 2, 2006
26
PAPER GRADES
Paper grades by product category
WF
Capacity
´000 tons
UPM
Fine
Capacity
'000 tons
Kymi
380
570
Nordland Papier
490
910
Changshu
600
200
Docelles
150
Total capacity
1.620
1.680
HSWO
UPM
UPM
Finesse
RG
February 2, 2006
Sheet Fed
27
PAPER GRADES
MWC, LWC,
MFC
Capacity
'000 tons
Augsburg
380
Blandin
350
Caledonian Paper
280
Jämsänkoski
120
Kaipola
300
Kaukas
580
Miramichi
450
Rauma
720
Stracel
280
Voikkaa
410
Total capacity
UPM
Star
UPM
Ultra
UPM
Cote
UPM
Satin
3,870
HSWO
UPM
UPM
Matt
February 2, 2006
CSWO
RG
28
PAPER GRADES
SC
Capacity
'000 tons
Augsburg
120
Jämsänkoski
610
Kajaani
160
Rauma
540
Schongau
230
Steyrermühl
190
Total capacity
UPM
Smart
UPM
Cat
UPM
Lux
UPM
Max
1,850
HSWO
UPM
UPM
Eco
February 2, 2006
CSWO
RG
29
PAPER GRADES
MFS
Capacity
'000 tons
Chapelle Darblay
110
Kaipola
340
Kajaani
220
Schongau
Total capacity
UPM
Brite
UPM
Opalite
UPM
Color
X)
670
HSWO
CSWO
RG
x) combined capacity for UPM Brite and UPM News is 500
UPM
February 2, 2006
30
PAPER GRADES
News
Chapelle Darblay
Capacity
'000 tons
240
Kaipola
50
Kajaani
230
Schongau
500 x)
Schwedt
300
Shotton
520
Steyrermühl
300
Total capacity
UPM
News
2.140
HSWO
CSWO
RG
x) combined capacity for UPM Brite and UPM News is 500
UPM
February 2, 2006
31
PAPER GRADES
Fine
MWC,
LWC,
MFC
SC
MFS
News
UPM
Other
end-uses
Books
Advertising
Materials
Direct mail
Directories
Inserts
Supplements
Special
Newsp.
Newspapers
Catalogues
Magazines
Reel papers for various end uses
UPM Fine
UPM Finesse
UPM Star
UPM Ultra
UPM Cote
UPM Satin
UPM Matt
UPM Smart
UPM Cat
UPM Lux
UPM Max
UPM Eco
UPM Brite
UPM Opalite
UPM Color
UPM News
February 2, 2006
32
PAPER GRADES
UPM
DIGI
Fine
UPM
DIGI
Magazine
UPM
DIGI
News
UPM
Other
end-uses
Inserts and
newspaper suppl.
Marketing
materials
Transactional
documents
Advertising
materials
Brochures
Direct mail
Books.
Catalogues
Newspapers
Magazines
Digital papers
UPM DIGI Finesse
UPM DIGI Color Laser
UPM DIGI Presentation
UPM DIGI Laser+
UPM DIGI Laser
UPM DIGI High Definition
UPM DIGI Jet
UPM DIGI Star
UPM DIGI Cote
UPM DIGI Satin
UPM DIGI Lux
UPM DIGI Brite
UPM DIGI Color salmon
UPM DIGI News
February 2, 2006
33
PAPER GRADES
Office papers
Papers for copying and printing (A4, A3)
UPM Office
UPM Office
color inkjet
UPM Office
color laser
UPM Office
presentation
plus
UPM Office
presentation
UPM Office
multifunction
UPM Office
copy/print
UPM
Future
Future color
inktech
Future
imagetech
Future
smoothtech
Future
inktech
Future
multitech
Future
lasertech
Yes
Special
enduses
Photo-realistic
printing
Yes Color
Yes
Yes
inkjet
Professional
Professional
Business
Photo paper
Yes Color
card
copy
Yes Photo
Yes
paper
Yes
Premium
Heavyweight
Business
Yes Gold
card
presentation
Yes silver
multifuction
Yes Bronze
copy/print
PrePrint
Papers
UPM
Prelaser
UPM
PrePersonal
UPM
PrePersonal+
UPM
PrePremium
UPM
PreInsert
UPM Form
UPM Finesse
Matt
February 2, 2006
UPM Mail

UPM Letter
UPM Poste
UPM Prestige
UPM Print
UPM Formula
UPM Natura
34
PAPER GRADES
Speciality papers – Label papers
Base Papers
Glassine

UPM Honey
UPM Golden
UPM Blue
UPM Pacific
UPM Brilliant
UPM Brilliant Pro
UPM
SCK
UPM SCK
Face Papers
CCK
C1S
UPM CCK
Office
UPM CCK
UPM CCK Pro
UPM Labelcoat
UPM Unique
UPM Unique
Lux
WF uncoated

UPM Fine
UPM Jetlabel
UPM Fine SC
UPM Vellum
February 2, 2006
WF coated
UPM Finesse
Gloss
35
PAPER GRADES
Speciality papers – Packaging papers
UPM Bag papers

UPM Kraft
UPM Kraft ribbed
UPM Kraff sapporo
UPM Prime bio
UPM SwanFine
UPM SeanFine gloss
UPM SwanWhite
UPM SwanWhite gloss
UPM SwanWhite
gloss WS
UPM SwanWhite ribbed
UPM SwanWhite X
UPM White flex
UPM White flex ribbed
UPM White plus
UPM White extra strong
UPM
UPM Sack Papers

UPM WEX LD
UPM WEX LDF
UPM WEX SP
UPM WEX
UPM WEX white
UPM WEX WS white
UPM WEX DIS white
UPM WEX LD white
UPM WEX LD DIS white
UPM WEX SP white
UPM Prime white
UPM Prime WS white
UPM SwanXtreme
UPM Tech Papers

UPM Forte
UPM Kraft
UPM Kraft steel
UPM Prime
UPM Prime wrap
UPM Prime white
UPM Prime PS white
UPM SwanBase
UPM SwanBase inno
UPM SwanFine
UPM SwanFine gloss
UPM SwanLine
UPM SwanWhite
UPM SwanWhite abra
UPM SwanWhite cup
UPM SwanWhite G
UPM Sean White gloss
UPM SwanWhite inno
UPM SwanWhite X
UPM WEX white
UPM SwanXtreme
UPM White flex
UPM X White line
UPM White plus
UPM Flex papers
UPM Jamsacoat
UPM Unique
UPM Unique Lux
February 2, 2006
36
PAPER GRADES
Examples of end uses
Raw material
Mechanical
pulp and/or
deinked pulp
Chemical
and mechanical
pulp
Paper grade
End use examples
newsprint
newspapers, inserts, flyers
mechanical speciality paper
newspaper supplements, newspapers, directories,
magazines, books, catalogues, advertising material
SC papers
magazines, catalogues, newspaper supplements,
inserts, advertising material
Coated mechanical papers
Speciality papers
Chemical
pulp
Woodfree uncoated papers
Woodfree coated papers
Kraft papers
UPM
magazines, catalogues, newspaper supplements,
advertising material, books, direct mail
label paper, label release papers, food wrapping,
household and sanitary papers, baking paper,
packaging material
office papers, writing papers and envelopes,
direct mail, magazines, books, advertising material
magazines, brochures, direct mail, annual reports,
books, advertising material
sacks, bags, wrapping and packaging, envelopes
February 2, 2006
37
PAPER GRADES
UPM Printing Papers
UPM
February 2, 2006
38
PAPER GRADES
Fine papers
high-brightness, double coated
woodfree paper (WFC)
matt or calendered,
uncoated woodfree paper (WFU)
UPM
February 2, 2006
39
PAPER GRADES
MWC, LWC, MFC
high-brightness, double coated
mechanical paper (MWC)
high-brightness,
coated mechanical paper (LWC)
coated mechanical paper (LWC)
matt finished,
coated mechanical paper (MFC)
mechanical speciality paper (MFC)
for CSWO
UPM
February 2, 2006
40
PAPER GRADES
SC papers
high-brightness,
uncoated groundwood paper
high-brightness, supercalendered
mechanical paper (SCA+)
high-brightness, silk finished,
supercalendered mechanical paper
(SCA+)
supercalendered
mechanical paper (SC-A)
on-line calendered
mechanical paper (SC-B)
UPM
February 2, 2006
41
PAPER GRADES
MFS papers
uncoated mechanical
speciality paper
mechanical directory paper
coloured mechanical
speciality paper
UPM
February 2, 2006
42
PAPER GRADES
Newsprint
newsprint
UPM
February 2, 2006
43
PAPER GRADES
Digi range
UPM DIGI Fine
Woodfree Fine Papers
UPM DIGI Magazine Mechanical Magazine Papers
UPM DIGI News
UPM
Mechanical Newsprint Papers
February 2, 2006
44
Positioning - World
POSITIONING – WORLD
UPM’s share
in graphic papers capacity 2006
mill. tons
60
50
49
46
40
28
30
20
20
Rest of the world
8
10
Other Europe
UPM
0
Newsprint
UPM
2.8
Coated mech.
3.9
SC
1.9
WF coated
WF uncoated
1.7
1.6
Source: Jaakko Pöyry, UPM
UPM
February 6, 2006
46
UPM's market positions 2006
UPM's market position
Businesses
Paper
Converted products
Wood products
UPM
Europe
Global
Magazine papers
1
1
Newsprint
2
5
Fine papers
3
5
Label papers
1
1
Packaging papers
3
Self-adhesive labelstock
2
Industrial wrappings
1
Plywood
1
Sawn goods
3
2
February 2, 2006
47
UPM's paper market positions in 2006*
in Europe
in the World
Coated mechanical
1
1
SC magazine papers
1
2
Newsprint
2
5
Woodfree coated papers
5
4
Woodfree uncoated papers
6
8
Envelope papers
1
***
Label papers
1
1
Packaging papers
1-3**
***
*) based on capacities **) depending on the product ***) no ranking available
UPM
February 2, 2006
48
World’s biggest
graphic papers producers 2006
Stora Enso
UPM
International Paper
Norske Skog
Nippon Paper Group
Abitibi-Consolidated
Asia Pulp & Paper
M-real
Oji
Bowater
0
2000
4000
6000
8000
10000
12000
’000 tons
Source: JP, UPM
UPM
February 6, 2006
49
World’s biggest
graphic papers producers 2006
Stora Enso
UPM
International Paper
Norske Skog
News
Nippon Paper Group
SC Paper
Coated mech.
Asia Pulp & Paper
M-real
WFC
Oji
WFU
Bowater
0
2000
4000
6000
8000
10000
12000
’000 tons
Source: JP, UPM
UPM
February 6, 2006
50
World’s biggest
paper and paperboard producers 2006
Stora Enso
International Paper
UPM
Georgia-Pacific
Oji
Weyerhaeuser
Nippon Paper Group
Smurfit Kappa Group
Graphic
Papers
Smurfit-Stone
Other paper
and board
Asia Pulp & Paper
0
2
4
6
8
10
12
14
16
18 mill. tons
Source: JP, UPM
UPM
February 6, 2006
51
Coated mechanical
Largest producers in the world 2006
UPM
Stora Enso
M-real
International Paper
Burgo Corporation
Consolidation
Myllykoski
Norske Skog
Other
47%
NewPage Corp.
Top 5
53%
Bowater
Oji
0
Source: JP, UPM
UPM
1000
2000
3000
4000
Capacity ’000 tons
February 2, 2006
52
SC magazine
Stora Enso
UPM
Myllykoski Corporation
Norske Skog
SCA
Consolidation
Irving Pulp & Paper Ltd.
Other
23%
Belgravia Investments Ltd.
Katahdin Paper Co. L.L.C.
Top 5
77%
Bowater
0
Source: JP, UPM
UPM
500
1000
1500
2000
2500
February 2, 2006
53
Newsprint*)
Norske Skog
Stora Enso
Bowater
UPM
Consolidation
Nippon Paper Group
Holmen
Other
60%
Catalyst Paper Corp.
Top 5
40%
Kruger
0
*)
1000
2000
3000
4000
including TD, improved newsprint, superimproved newsprint and book papers
UPM
5000
6000
February 2, 2006
Source: JP, UPM
Oji
54
Woodfree coated paper
Sappi
Stora Enso
Asia Pulp & Paper
UPM
M-real
Consolidation
Lecta Group
Oji
Other
64%
Burgo Corporation
Top 5
36%
Nippon Paper Group
NewPage Corp.
0
Source: JP, UPM
UPM
1000
2000
3000
February 6, 2006
55
Woodfree uncoated paper
International Paper
Weyerhaeuser
Mondi
Asia Pulp & Paper
Domtar
Consolidation
Stora Enso
Nippon Paper Group
Other
72%
UPM
Top 5
28%
M-real
Boise Cascade, L.L.C.
0
Source: JP, UPM
UPM
1000
2000
3000
4000
5000
6000
February 2, 2006
56
Biggest paper and
paperboard producing countries 2004
1. USA
2. China
3. Japan
4. Canada
5. Germany
6. Finland
7. Sweden
8. Korea,
9. France
10. Italy
11. Brazil
12. Indonesia
13. Russia
14. Great Britain
15. Spain
Others
mill. tons
80,2
41,7
30,3
20,1
19,3
13,1
11,1
10,4
9,9
9,4
7,9
7,7
6,3
6,2
5,4
World production
339 mill. tons
change
2004/2003: +2.8%
59,8
Source: PPI
UPM
August, 2005
57
Biggest paper and
paperboard exporting countries 2004
mill. tons
1. Canada
2. Finland
3. Germany
4. Sweden
5. USA
6. France
7. Austria
8.
9. Italy
10. Korea,
11. Indonesia
12. Russia
13. Norway
14. Spain
15. Brazil
Others
14,9
11,8
10,7
9,4
8,6
5,3
3,9
World export
103 mill. tons
change 2004/2003:
+3.7%
3
2,9
2,7
2,6
2,5
1,9
1,8
1,8
19,7
Source: PPI
UPM
August, 2005
58
Main paper and
board importing countries 2004
1. USA
2. Germany
3. Great Britain
4. France
5. China
6. Italy
7. Spain
8. Netherlands
9. Belgium
10. Hong
11. Canada
12. Mexico
13. Japan
14. Poland
15. Taiwan
mill. tons
16,6
9,9
7,6
6,2
6
4,6
3,6
3,1
2,9
2,5
2,1
1,8
1,8
1,5
1,5
Source: PPI
UPM
August, 2005
59
Paper and paperboard
consumption per capita 2004
267
187
247
39
455
280
1306
Oth. Europe
42
329
1388
W. Europe
N. America
China
127
Japan
27
203
882
World consumption
kg/capita 56 kg
World population
million inhabitants
6 430
33
552
Oth. Asia
Africa
6
L. America
31
Oceania
Source: PPI
UPM
August, 2005
60
Paper and paperboard
production per mill 1960 and 2004
'000 tons
300
46
250
46
96
200
451
150
188
100
126
81
435
Germany France
Great
Britain
Japan
50
0
Finland
Sweden
Canada
USA
1960
2003
no. of
mills
2003
Source: PPI
UPM
August, 2005
61
Average capacity of
printing paper machines
'000 t/a
UPM
Nordic countries
Other Western Europe
Canada
USA
Japan
Asia-Pacific region
Average
0
50
100
150
200
250
300
Source. Jaakko Pöyry
UPM
March 23, 2006
62
World demand trends
of graphic papers 1983-2007
'000 tons
60 000
Growth rate
2004-07
50 000
WF unctd
+1,8 % p.a.
40 000
Newsprint
+1.0 % p.a.
30 000
WF ctd
+3,7 % p.a.
20 000
Ctd mech.
+1.4 % p.a.
10 000
Unctd mech.
+1.5 % p.a.
0
'83
'85
'87
'89
'91
'93
'95
'97
'99
'01
'03
'05
'07
Source:Cepiprint, PPPC, EMGE, JP
UPM
February 2, 2006
63
World capacity trends
of graphic papers 1990-2007
'000 tons
60 000
Growth rate
2003-07
50 000
WF uncoated
2,2 % p.a.
40 000
Newsprint
1.1 % p.a.
30 000
WF coated
2.3 % p.a.
20 000
Ctd mech.
2.0 % p.a.
10 000
Unctd mech.
1.6 % p.a.
0
'90
'92
'94
'96
'98
'00
'02
'04
'06
Source:Cepiprint, PPPC, EMGE, JP
UPM
February 2, 2006
64
Positioning - Europe
POSITIONING – EUROPE
Biggest graphic papers producers
in Europe 2006
mill.tons
UPM
10,4
Stora Enso
10.2
4.5
M-real
3.5
Norske Skog
Sappi
2.5
Myllykoski
2.5
Holmen
Coated mech
SC
Newsprint
WF coated
WF uncoated
3.0
Burgo
2.2
Mondi
1.6
Lecta Group
1.6
Source: JP, UPM
UPM
February 2, 2006
66
European Coated mechanical players
(´000 tons)
UPM

Rauma (FIN)
Kauksas (FIN)
Voikkaa (FIN)
Augsburg (D)
Kaipola (FIN)
Stracel (F)
Caledonian (UK)
Jämsänkoski (FIN)
Stora Enso

(3.070)
(1.935)
Kabel (D)
Corbehem (F)
Veitsiluoto (FIN)
Kotka (FIN)
Anjala (FIN)
M-real
(1.280)
Norske Skog
Kirkniemi (FIN)
Jyväskylä (FIN
Husum (S)
Walsum (D)
Bruck (A)
Follum (NO)
Burgo
SCA

(460)
Ortviken (S)
Verezuolo (I)
Duino (I)
Villorba (I)
Marzabotto (I)
Avezzano (I)
Toscolano (I)
Myllykoski

(1.250)
(810)
LEIPA-Georg
Leinfelder
(460)
Schwedt (D)
Sappi
(1.115)
Plattling (D)
Albbruck (D)
Dachau (D)
Myllykoski (FIN)
(450)
Lanaken (B)
Other

(780)
Perlen (CH)
Holmen (S)
Matussiere & Forest (F)
Steinbeis Holding (D)
Kübler & Niethammer (D)
Paper Mill Gemmrigheim (D)
Ahlström/Ascoli (I)
UPM
February 2, 2006
67
European SC-magazine paper players
(´000 tons)
UPM

(1.850)
Jämsänkoski (FIN)
Rauma (FIN)
Schongau (D)
Steyrermühl (D)
Kajaani (FIN)
Augsburg (D)
Stora Enso

(1.525)
Kvarnsveden (S)
Maxau (D)
Reisholz (D)
Langerbrugge (B)
Wolfscheck (D)
Myllykoski
(790)
Lang (D)
Myllykoski (FIN)
Norske Skog
SCA
(500)
Laakirchen (A)
Holmen
(140)
Hallstavik (S)
JIP –
Papirny Vetrni
(40)
Vetrni u Ceskeho
Krumlova (CZ)
(550)
Halden (NO)
UPM
February 2, 2006
68
European newsprint players
(´000 tons)
Stora Enso (3.300)

Hylte (S)
Kvarnsveden (S)
Summa (FIN)
Langerbrugge (B)
Anjala (FIN)
Sachsen (D)
Varkaus (FIN)
Maxau (D)
UPM

(2.810)
Shotton (UK)
Schongau (D)
Kajaani (FIN)
Kaipola (FIN)
Chapelle (F)
Steyrermühl (A)
Schwedt (D)
Norske Skog
(2.175)

Skogn (NO)
Golbey (F)
Parenco (N)
Follum (NO)
Bruck (A)
Sieti (CZ)
UPM
Holmen
(1.845)
Braviken (S)
Hallstavik (S)
Pap. Peninsular (ES)
Kondopoga (760)
JSC Solikamskbumprom (425)
Others
Solikamsk (RUS)
Matussiere et
Forest (F)
Perlen (CH)
Kama Pulp &
Paper (RUS)
IP (P)
S.C. Letea S.A: (RO)
Arctic Paper (S)
Golzern Holding (D)
Vipap Videm Krsko
d.d. (SL)
Fabryka Papieru S.A.
Fabryka Papieru
Szczecin (P)
Mondi
(390)
Kondopaga (RUS)
Aylesford (UK)
Syktyvkar (RUS)
Myllykoski
Papresa
(580)
Rhein Papier (D)
Utzenstorf (CH)
Lang (D)
SCA
(560)
Ortviken (S)
Aylesford (UK)
JSC Investment
Company (540)
Balakhna (RUS)
(370)
Renteria (ES)
Abitibi(230)
Consolidated
Ellesmere (UK)
Burgo
(935)
(excl. below 50.000 t)
(185)
Mantova (I)
Toscolano (I)
Marzabotto (I)
Palm Group (540)
Eltman (D)
Aalen (D)
February 2, 2006
69
European fine paper players* ('000 tons)
StoraEnso (3.300)
UPM

Nordland (D)
Kymi (FIN)
Docelles (F)
Oulu (F)
Veitsiluoto (F)
Nymolla (S)
Varkaus (FIN)
Grycksbo (S)
Wapenweld (NL)
Imatra (FIN)
Uetersen (D)
M-real

(3.085)
Biberist (CH)
Stockstadt (D)
Husum (S)
Hallein (A)
Alizay (F)
Berg.Gladbach (D)
Kemsley (UK)
Sittingbourne (UK)
Äänekoski (FIN)
Wifstavarf (S)
Pont St. Max (F)
Sappi

(2.500)
(1.970)
Gratkorn (A)
Maastricht (NL)
Nijmegen (NL)
Alfeld (D)
Ehingen (D)
Blackburn (UK)
H.Hempstead (UK)
Lanaken (B)
Lecta
(1.530)
Le Lardin
Saint Lazare (F)
Riva del Garda (I)
Motril (ES)
Zaragoza (ES)
St Joan les Fonts (ES)
Sarria de Ter (ES)
Burgo

Virton (B)
Sora (I)
Avezzano (I)
Chieti (I)
Tolmezzo (I)
Sarego (I)
Toscolano (I)
Lugo di Vicenza (I)
Mondi

(1.480)
(1.220)
Syktyvkar (RUS)
Ulmerfeld-H. (A)
Ruzomberok (SLO)
Szolnok (HUN)
Dunaujvaros (HUN)
Kematen/Ybbs (A)
IP Europe (1.170)

Kwidzyn (POL)
Svetogorsk (RUS)
Saillat sur Vienne (F)
Inverurie (UK)
Maresquel (F)
Portucel
Figueira da Foz (P)
Setubal (P)
Arctic Paper (480)
Kostrzyn (POL)
Åsensbruk (S)
Munkedal (S)
Arjo Wiggins (420)
Bessé sur Braye (F)
Wizernes (F)
Saint-Mars-laBriére (F)
Annat Point (UK)
+ 14 mills
(cap. below 50.000 t/a)
Pap. Scheufelen
(290)
Lenningen (D)
Pap. Guipuzcoana
(250)
Hernani (I)
Excl. WF specialities
* Cap. min. 250.000 t/a
UPM
(1.075)
February 6, 2006
70
European WFC players ('000 tons)
Sappi

(1.585)
Biberist (CH)
Hallein (A)
Bergisch Gladbach (D)
Stockstadt (D)
Sittingbourne (UK)
Äänekoski (FIN)
Pont St. Maxence (F)
Stora Enso
Oulu (FIN)
Grycksbo (S)
Uetersen (D)
Varkaus (FIN)
Lecta

Gratkorn (A)
Maastricht (NL)
Nijmegen (NL)
Alfeld (D)
Ehingen (D)
Blackburn (UK)
Lanaken (B)
M-real

(1.930)
(1.550)
(1.510)
Le Lardin Saint Lazare (F)
Riva del Garda (I)
Motril (ES)
Zaragoza (ES)
St Joan les Fonts (ES)
Sarria de Ter (ES)
UPM
(1.480)
Nordland (D)
Kymi (FIN)
Burgo

Virton (B)
Sora (I)
Avezzano (I)
Chieti (I)
Sarego (I)
Lugo di Vicenza (I)
Toscolano (I)
Arjo Wiggins
Bessé sur Braye (F)
Wizernes (F)
Scheufelen
(270)
Lenningen (D)
Arctic Paper (150)
Åsensbruk (S)
Other
(1.260)
(375)
(320)
(excl. below 50.000 tons)

Matussiere & Forest (F)
Dalum Papir A/S (DK)
Smurfit Kappa Group (UK)
Aconda Paper S.A.)
Excl. WFC specialities
UPM
February 6, 2006
71
UPM (1.410)
European WFU players ('000 tons)
Stora Enso

(1.500)
Portucel
Burgo
Arctic Paper
(250)
(220)
Tolmezzo (I)
Toscolano (I)
(1.075)
(1.020)
Nordland (D)
Kymi (FIN)
Docelles (F)
(1.220)
Eco-Invest.
Ruzomberok (SL)
Kwidzyn (POL)
Svetogorsk (RUS)
Saillat (F)
Inverurie (UK)
Maresquel (F)
UPM
Syktyvkar (RUS)
UlmerfeldHausmening (A)
Ruzomberok (SLO)
Szolnok (HUN)
Dunaujvaros (HUN)
Kematen an Ybbs (A)
UPM
(1.170)
Figueira da Foz (P)
Setubal (P)
Husum (S)
Alizay (F)
Kemsley (UK)
Stockstadt (D)
Wifstavart (S)
St. Maxene (F)
Biberist (CH)
Mondi
IP Europe

Veitsiluoto (FIN)
Nymölla (S)
Berghuizer (NL)
Varkaus (FIN)
Imatra (FIN)
M-real

(1.750)
Crown Van
Gelder N.V.
(205)
Velsen Noord (NL)
Other
(550)
(excl. below 100.000 tons)
(320)
Kostrzyn (POL)
Munkedal (S)

Clairefontaine (F)
Steinbeis Holding (D)
Cart. Fedrigoni (I)
Paperalia S.A. (ES)
Pap. Guipuzcona
de Zicuña
(250)
Hernani (ES)
Excl. WFU specialities
February 6, 2006
72
Trade flows
UPM
February 2, 2006
73
TRADE FLOWS
Magazine papers
Demand and capacity 2006 preliminary
16,1
10,7
8,0 8,5
0,1
1,6
0,04
0,9
1,0
Oth. Europe
0,4
W. Europe
N. America
0,1
0,3
0,2
0,2
2,0 1,9
0,7 0,8
Oth. Asia
0,1
Japan
0,05
0,4
Capacity
27,2 mill. tons
Demand
23,9 mill. tons
0,2 0,6
L. America
0,03 0,1
Africa
0,07 0,4
Oceania
Source: Cepiprint, PPPC, EMGE, RISI
UPM
February 17, 2006
74
TRADE FLOWS
Coated mechanical paper
Capacity and demand 2006 estimate
10,9
7,3
0,02
5,7 5,9
- 0,7
1,0
0,7 Oth. Europe
0,2
0,04
0,3
W. Europe
N. America
0,1
0,2
1,9 1,8
0,8 0,7
Oth. Asia
0,1
0,1
Japan
0,3
0,2
Capacity
19,5 mill. tons
Demand
17,0 mill. tons
0,2 0,5
L. America
- 0,1
Africa
0,1 0,3
Oceania
Source: Cepiprint, PPPC, JP
UPM
February 17, 2006
75
TRADE FLOWS
SC magazine paper
5,2
3,5
2,3
2,7
0,1
0,7
0,3
0,4
Oth. Europe
0,1
W. Europe
N. America
0,03
Capacity
7,7 mill. tons
Demand
6,9 mill. tons
0,06
0,05
-
0,1
L. America
-
0,02
0,1
Oth. Asia
0,1
0,08 0,1
Japan
0,3
0,06
Africa
Oceania - 0,1
UPM
February 17, 2006
76
TRADE FLOWS
Std newsprint
13,2
10,3
10,2
9,2
2,9
0,2
1,8
0,2
Oth. Europe
0,6
1,3
N. America
1,3
0,1
W. Europe
1,4
6,2
China
Oth. Asia
Demand
37,7 mill. tons
1,0
1,8
L. America
3,8 3,9
4,4
0,8
Capacity
40,2 mill. tons
3,3 3,2
0,9
Japan
0,3
0,5 0,6
Africa
0,9
Oceania 0,8
UPM
February 17, 2006
77
TRADE FLOWS
Woodfree coated paper
11,5
8,1
5,0 5,6
0,5
0,1
0,1
0,8
0,2
7,8
1,0
5,2
6,5
4,7
Oth. Europe
0,4
0,7
W. Europe
N. America
0,2
0,1
0,4
0,2
0,5
Japan
Oth. Asia
0,1
0,03
Capacity
30,5 mill. tons
Demand
27,6 mill. tons
0,2 0,3
0,6
0,9
Africa
0,1
0,7
0,1
Oceania 0,1 0,5
L. America
UPM
February 17, 2006
78
TRADE FLOWS
Woodfree uncoated paper
13,5
12,6
10,8
9,6
13,0
11,2
3,0
1,8
0,8
8,9
0,2
0,1
0,5
0,1
0,1
0,2
0,2
6,7
0,2
0,3
Japan
Oth. Asia
0,1
Demand
50,5 mill. tons
3,3 3,2
0,6
China
1,0 1,2
Capacity
57,1 mill. tons
3,6 3,6
W. Europe
N. America
0,2
Oth. Europe
Africa
0,03
0,6
Oceania 0,4
L. America
*) 7 500 Cepifine demand (Cepifine bulk grades, i.e. excl. spec. grades) 8 400 (Cepifine capacity)
UPM
February 17, 2006
79
Demand
UPM
February 2, 2006
80
DEMAND
Western Europe
Coated mechanical - Demand forecast
mill. tons
8
Demand change from previous year
13%
6
1%
4%
'98
'99
-6%
1%
'01
'02
4%
5%
-1%
'04
'05
4%
4
2
0
'00
Lockout in Finnish mills 2005
'03
'06e
Demand growth rate 2003-2006: 3%
Source: Cepiprint, UPM
UPM
February 2, 2006
81
DEMAND
Western Europe
SC magazine - Demand forecast
mill. tons
4
3
9%
9%
0%
-1%
1%
3%
'00
'01
'02
'03
'04
-2%
'05e
5%
6%
2
1
0
'98
'99
'06e
UPM
February 2, 2006
82
DEMAND
Western Europe
Newsprint - Demand forecast
mill. tons
12
9
5%
5%
3%
-3%
'98
'99
'00
'01
-5%
0%
5%
1%
1%
'02
'03
'04
'05e
'06e
6
3
0
UPM
February 2, 2006
83
DEMAND
Western Europe
Woodfree coated - Demand forecast
mill. tons
8
6
8%
10%
3%
-7%
1%
1%
'01
'02
'03
8%
2%
4%
'05e
'06e
4
2
0
'98
'99
'00
'04e
UPM
February 2, 2006
84
DEMAND
Western Europe
Woodfree uncoated - Demand forecast
mill. tons
8
3%
5%
2%
'98
'99
'00
-4%
-1%
-1%
'01
'02
'03
6%
1%
3%
'04e
'05e
'06e
6
4
2
0
UPM
February 2, 2006
85
General informaation
UPM
February 2, 2006
86
Newsprint and printing & writing
paper consumption and the Proliferation
of Electronic Media in Western Europe
40
- Paper consumption, million t/a -
High speed Internet access
Expansion of Internet/WWW
CD-ROMs
Laser Printers
30
Satellite TV
Mini Computers
20
Cable TV
VCR
Colour
TV
10
Radio
Cinema
TV
PCs
Printing and writing papers
Mainframe
Computers
Newsprint
0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
Source: Jaakko Pöyry Consulting
UPM
February 13, 2006
87
Printing papers' life cycle
Paper
production
Fresh fibre
production
Production
of recycled
fibres
Printing
Forest
Incineration/
landfill
Waste paper/
waste
Distribution
Biodiversity
Reader
UPM
February 2, 2006
88
Structural changes of the forest
industry in Finland
Metsäliitto
MetsäMetsäliiton
Teollisuus
M-real liitto
Kyro
MetsäRauma
MetsäBotnia
United
Paper Mills
1991
Kajaani
1989
UPM
MetsäSellu
Serlachius
Stora Enso
Varkaus
JoutsenoPulp
Kemi
RaumaRepola
1991
Kymmene
Enso
Gutzeit
(Ahlström)
Tampella
Forest and
Tambox
Myllykoski
UPM-Kymmene
1996
Repola
Enso
Stora
Finnforest
Sunila
Schauman
1988
Kaukas
1986
Oulu
Veitsiluoto
Corenso
Ahlström ==> Jujo Thermal
Georgia-Pacific
Finland (Nokia),
Georgia Pacific
Stromsdal
Rosenlew
1987
February 2, 2006
89
Changshu
1996
UPM
KYMMENE
February 2, 2006
90
Changshu mill
1996
KYMMENE
UPM
February 2, 2006
91
G. Haindl'sche Papier
fabriken KgaA, 2001
APRIL Changshu mill, 2000
Repap Enterprises Inc., 2000
UPM-Kymmene
1996
Repola Oy 1991
Rauma-Repola Oy
Oy W. Rosenlew AB
1987
Lohjan Paperi Oy
1982
Yhtyneet Paperitehtaat Oy
Kajaani Oy
1989
Stracel S.A.
1988
Shotton Paper
Company Ltd
1985
Osakeyhtiö Mahogany ja
Puukeskus Oy
Raf. Haarla 1976
1977
UPM
Blandin Paper
Company, 1997
Chapelle Darblay S.A.
1990
Oy Wilh.
Schauman Ab
1988
Kymmene Oy
Caledonian
1986
Paper plc 1987
Kymi-Strömberg Oy
1983
Oy Kaukas Ab
1986
Papeteries
Boucher S.A.
1977
Kymi Kymmene Oy
1975
Nordland Papier GmbH
1967
Kymin Osakeyhtiö
February 2, 2006
92
From forest to office paper –
one hour / paper machine
105 m3
95 m3
Fillers 10 000 kg
Birch pulp 24 000 kg
Pine pulp 16 000 kg
8,5 m
Speed 75 km/h
50 000 per hour
UPM
20 000 reams A4
February 2, 2006
93
From forest to coated paper –
one hour / paper machine
65 m3
Fillers & coating colours
25 000 kg
Birch pulp 16 000 kg
95 m3
Pine pulp 16 000 kg
8.5 m
60 000 kg per hour
Speed PM 8: 80 km/h &
C3: 110 km/h (record 130 km/h)
UPM
100 reels
in size 90 x 120 cm
February 2, 2006
94
UPM
February 2, 2006
95