Annual Review 2008 INNVENTIA Group
Transcription
Annual Review 2008 INNVENTIA Group
Annual Review 2008 INNVENTIA Group Annual Review 2008 INNVENTIA Group 1 From our President 2 An academic institute becomes a modern innovation company 6 LignoBoost – from fundamental research to industrial reality in 10 years 7 Coordinating European research 8 New Cluster Research Programme starting up 10 Fibre, Pulp, Energy and Chemicals 12 Process and Product Innovation 14 Packaging, Media and Materials 16 PFI 18 Board of Directors 19 Executive Board 20 Corporate responsibility 21 Financial Statements 24 Highlights of 2008 On the cover: Farvash Razavi holds her mechano-active flower design. Innventia has succeeded in creating a variety of mechano-active papers capable of moving in exciting ways. Read more: www.innventia.com/active_materials © INNVENTIA AB Photographs by Fotograf Johan Olsson Printed by SIB-Tryck, Norsborg, in June 2009 From our President Innventia continued its efforts to reshape its business strategy during 2008. One important aim was to be able to take the results from research work even further and be a partner with its customers in R&D work for innovations and new business opportunities. A symbolic step that shows the successive transformation of Innventia was taken in May, 2008, when we launched a new graphic profile, including a new logotype. We are now introducing a new company name that will give even more emphasis to our keenness to become an innovation partner with customers that work with sustainable products and processes that add value. One very successful example of adding business value took place in May, 2008, when Metso acquired one of the Innventia AB subsidiaries, LignoBoost AB. The original research concept behind the LignoBoost technology was generated at Innventia and Chalmers less than ten years ago. A global engineering and technology corporation will now further commercialize the technology for industrial applications. An industrial-size demonstration plant will, however, remain under the ownership of Innventia for the continued development of lignin-based technologies and products. Innventia is increasing its activities in the field of biorefinery technology. This is regarded as one of the most promising future technologies for converting wood materials into valuable and sustainable products. We are a world leading organisation in R&D and innovation in this field and our aim is to strengthen our position even more. The Nordic Wood Biorefinery Conference 2008, an Innventia co-arrangement that was held in March, attracted more than 200 representatives from industry and research parties from all over the world. This conference covered biorefinery separation and conversion processes as well as energy, chemicals and materials from a wood-based biorefinery. A number of projects concerning the important field of nanocellulose and its applications continued during 2008, while some new projects were started. International research collaboration being carried out in promising areas will be further developed. The SustainComp research project, coordinated by Innventia in the EU 7th Framework Programme (FP7), began in 2008. Two large research projects in FP6, ECOTARGET and SUSTAINPACK, also coordinated by Innventia, have now successfully concluded. It is important for Innventia to have internationally recognised, experienced research scientists as well as unique and technically advanced experimental equipment with a high degree of flexibility. The EuroFEX Pilot Paper Machine is one of these. A substantial financial grant from the Knut and Alice Wallenberg Foundation has made it possible for Innventia to rebuild this machine. As a result, this will make it possible to carry out research and development work on new fibre treatment processes, on improved sheet forming processes at increased machine speeds as well as on new and improved advanced paper products. The investments in equipment and extension to the building will be completed in 2009. Based on the new possibilities created by the investments, a Centre for Advanced Process and Product Innovation, CAPPI, has been formed, with Innventia and The Royal Institute of Technology, KTH, as its initial partners. The vision of CAPPI is to bridge the gap between fundamental fluid mechanics and industrial applications, through the use of cutting-edge tools. The scientific foundation of the paper making process will be developed and the results will be taken all the way to industrial implementation. This Annual Review illustrates how Innventia AB is continually developing. We are looking forward to meet you to discuss how you can add value to your business by using us as an expert and creative partner in R&D and innovations. Gunnar Svedberg President Annual Review 2008 INNVENTIA Group 1 An academic institute becomes a modern innovation company Boosting business with science. We raise the level of business using science. This is what Innventia pledges today. Innventia, formerly STFI-Packforsk, has worked with science and vision for decades in order to be a reliable partner in innovations. Innventia has developed a thin opto-active paper coating that reacts to the moisture in exhaled breath by displaying a variety of interference colours. 2 Annual Review 2008 INNVENTIA Group At this moment, an exciting time lies ahead of us. Climate change that demands thinking along the lines of sustainability, a geographic shifting of production capacities, globally, and changes to consumer behaviour by means of information technology, all in all, mean that a great deal of fresh ideas and new ways of thinking are necessary. Traditional bulk goods are not all a matter of course any more. The Innventia strategy states that it will contribute to these necessary adjustments. Innventia is very well equipped for this task, since, for many years, it has maintained an efficient utilisation of resources and a staying power in its vision for its operations, linked with a keen attentiveness to its customers and the scientific front line. The forms and focus have changed in pace with changes in the actual situation in the industry. It has always been one of the tasks at Innventia to see how the demands on research are changing and to anticipate what the needs of the future are. The strength of Innventia is that it can work with the same scientific foundation and expertise all the way from fundamental research to customerspecific assignments surrounding a product. At times, Innventia takes part from the raw material stage to the marketing stage, while, at other times, a customer wants support with just one step or stage along the way. As a partner, Innventia has a great deal of flexibility in innovation work. The demand for fundamental scientific expertise will never change however. The Innventia way of working and the networks it works in will continue to change in order to meet the demands of its customers and partners, both now and in the future. The past ten years have meant a solid development for Innventia, involving leading international roles. Innventia laid the basis for a more sustainable utilisation of nature’s resources during the latter part of the 1990s and at the beginning of the 2000s. Its aim was to lay a foundation for a significantly better utilisation of resources and, consequently, for it to lead to a sustainable society, by means of extensive collaborative research work with Swedish universities and companies in the various lines of business involved. Energy, fibres and other raw materials should be used in a more efficient and, in part, a completely new way. The concept of a biorefinery was given a dusting off and developed. Some of the processes for this mill of the future have already been taken, all the way to an industrial scale. LignoBoost, one example of this, is a technology that makes it possible to utilise lignin for the production of bio-based fuels. At the same time as LignoBoost is on its way to being industrialised, there is a promising development further upstream in progress towards new bio-based materials. In this instance, Innventia is collaborating with the Kofesen - a material sample developed in collaboration with the University College of Arts, Crafts and Design (Konstfack) in Stockholm. Jolanta Borg at work in the Printability Laboratory at Innventia University College of Arts, Crafts and Design (Konstfack) in Stockholm to build up parallel research in materials technology and industry design using new materials. The aim here is to meet demands for bio-based products swiftly, by means of fundamental research on materials, in nanotechnology for example, with the aid of a quicker transfer of knowledge and know-how among producers, designers and materials researchers. 70 Years of Scientific Expertise Demands for scientific foundations and expertise were established as early as 1942 in the investigations that then formed the basis for STFI. This research was focused on process technology in the 1940s and 50s. At that time, the Swedish forest industry consisted of small companies and craftmanship. A basis for expansion and modernisation was created, due to close cooperation with the Royal Institute of Technology (KTH). During the 1960s, pulp and paper companies underwent organizational changes that dramatically altered the demands for research. Towards the end of the 1980s, the biggest companies had their own R & D organizations, with considerable resources. The support for innovations that this modern industry required was spread across the entire field, from wood chemistry to paper surfaces, with the emphasis being placed on relatively fundamental research. Companies wanted to carry out their more specific product research out of view of their competitors. The solution to this new need was a radical change in the STFI organization. At approximately the same time, the focus shifted from demands by the industry for efficient processes to demands by society for a safe environment. One clear instance of this was the dioxin scare in the 1980s, when the emission of dioxins had to be stopped immediately. The expertise and skills that had been built up at STFI over more than a quarter of a century then became an instrument for saving the industry in a situation, where many critics were very vocal in wanting to close it down. The dioxin affair was able to be solved in a few months. Annual Review 2008 INNVENTIA Group 3 Jan Nordström and Håkan Mårtensson test products and packaging at the Innventia labortories in Kista. Packforsk – a testing laboratory that became a research centre Packforsk made its journey from the opposite direction; it started as a laboratory and, with time, developed more and more with its visionary, longterm research. Packforsk started in 1954, when paper mills and packaging companies needed resources to test paper packages and demonstrate how much they could withstand. Tests carried out by the laboratory contributed to paper-based packaging becoming more and more popular with producers, transporters and commerce, which, in turn, led to new demands for research. From 1970, Packforsk had become the centre-of-choice, when it came to research and training courses on packaging in Sweden. Through research, training courses, conferences and working with standards and testing methods, Packforsk was a leader in the development of solutions for packaging and transportation. It also became a centre and coordinator for a number of industry groups whose work contributed to the fact that researchers at Packforsk were able to devote more energy to all-embracing challenges, such as packaging systems for special products in the electronics and pharmaceutical industries. As well as this, more attention was increasingly being paid to demands on packaging being made by users. Carl XV Gustav, King of Sweden, inaugurates new impulse technology at the EuroFEX pilot paper machine in 1997. 4 Annual Review 2008 INNVENTIA Group The LignoBoost demonstration plant in Bäckhammar, Sweden operates since spring 2006. An academic institute becomes a modern innovation company During the 1990s and after time, several reorganizations have taken place, e.g. the merger of STFI and Packforsk, among others, to develop the academic institutes into one modern research company. The industry now needed a new innovation partner that could combine more open research work in academic networks with customer specific projects that required a high degree of confidentiality. Innventia proved to the industry that these branches of research could be combined, which was a development that laid the foundation for the kind of Clusters that exist in today’s research programmes. Research in Clusters is an efficient and effective way of organizing multiclient fundamental and application research in one context. Today, a lot of the research work occurs in Clusters and other major enterprises, such as in EU Projects with dozens of partners or in broader national projects. Innventia has developed from mainly being a national research institute for a lot of years into a research company with a global overview and companies from all over the world in its clientele. The Innventia Cluster Research Programme has become a successful model for partnership with the industry and proof that it can combine fundamental academic research with technical projects, when it comes to processes and the properties of products. The needs of trade and industry for support with innovation throughout its entire value chains can be met efficiently and effectively. Boosting business with science. This is a pledge that Innventia is keeping in the future. Research into new wood-derived materials is an important part of the activities at Innventia. Above Microfibrillated Cellulose (MFC) and Kraft Lignin. Annual Review 2008 INNVENTIA Group 5 LignoBoost - from fundamental research to industrial reality in 10 years Innventia sold its development company, LignoBoost AB, to an international technical company, Metso Power AB, in 2008. The research results from the KAM and FRAM Programmes have been converted to a competitive technology and to commercial use in record time. The latter of these research programmes, FRAM2, coordinated by Innventia, was finalised in December, 2008, with many interesting results appearing in its final report. Jan Emilsson holds a piece of high quality Kraft Lignin from the Bäckhammar plant. About the technology The LignoBoost process makes it possible to expand the capacity of a pulp mill at a lower cost than building extensions to a ‘bottlenecked’ recovery boiler would incur. Profitability is further increased if the lignin can be used as a replacement for fuel oil or natural gas in a lime kiln at a pulp mill, for example, or as raw material in the production of valuable products, such as carbon fibre. The LignoBoost process has attracted major international attention. Today, it is presumably the only available commercial technology that can provide a pulp mill with interesting new by-products in large volumes. 6 Annual Review 2008 INNVENTIA Group LignoBoost is a unique technology for extracting high quality lignin from a kraft pulp mill and has received a great deal of attention. In collaboration with many partners but especially Chalmers University of Technology in Göteborg, this technology was developed by Innventia within the framework of three research programmes that began at the end of the 1990s. During 2006, a development company, LignoBoost AB, was started, with support from Södra, Stora Enso, Fortum Värme, Nordic Paper and the Swedish Energy Agency. Innventia established a demonstration plant for this technology at the Nordic Paper Mill in Bäckhammar in 2007. The project was very successful and, during the following year, licences were sold to an American forest industry company. When Innventia sold LignoBoost AB to Metso Power AB in 2008, the purpose was to enable a further commercialisation of the LignoBoost technology and its implementation in industrial plants. The demonstration plant at Bäckhammar will remain a part of Innventia for it to further develop processes for lignin production and high value products. Energy potential From the beginning, the aim of the process was to increase the production of a kraft pulp mill; however, the possibility of producing high value bio-fuel has also been a significant driving force. One of the most important aims of the FRAM2 Programme was to replace fossil fuels with lignin, mainly in the lime kiln at a pulp mill, with successful industrial scale trials being carried out during the progress of the programme. In principal, a lime kiln is the only remaining consumer of fossil oil in a modern pulp mill, where the other processes are self-supporting, when it comes to energy consumption. A three day trial was carried out at the Södra Cell Mönsterås Mill in April, 2008. This showed a potential that fossil fuel could be replaced completely by lignin bio-fuel. On a global scale, lime kilns in the pulp industry consume energy equivalent to 4 million m3 of oil per year. The report from the FRAM2 Programme is being distributed to the Project Partners. An opportunity now presents itself for carrying out projects, where ideas from the Programme can be further developed. Contact person: Per Tomani, Innventia. For more information, see the article on Biorefinery on page 10. Coordinating European research In recent years, international collaboration has become more and more important, when it comes to creating new opportunities for the industry and developing new sustainable products and processes. Innventia plays a prominent role as a coordinator in many of these activities. In 2008, two large projects, Sustainpack and ECOTARGET, were finalised after four years, while another project, SustainComp, began. ECOTARGET: More from less No less than 26 partners participated in ECOTARGET, the largest research project ever to take place in the European pulp and paper industry. The overall aim was to support the industry with new and innovative processes for enhancing the competitiveness of the sector, while improving its eco-efficiency. Under the banner of “More from less”, ECOTARGET aimed at developing breakthrough ideas for making more and better products with less use of raw materials, energy and water and, at the same time, at reducing the amounts of residues, waste and emissions. Each idea was to have the potential of a 20% to 30% reduction in one or more of the targeted areas. All technologies developed in the project were evaluated. Along the way, information on the environmental, economic, technical, social and regulatory aspects that were related to the new technologies was gathered and assessed. ECOTARGET resulted in a variety of newly developed processes. Some of them are already on the market or very close to it, e.g. sensors for the monitoring of recovered papers and new additives for process water. Some are ready for demonstration, such as the stratified forming of paper, which will be demonstrated at CAPPI, a new innovation centre at Innventia. SustainPack: Fibre-based packaging for future demands With a total budget of almost € 30 million and a partnership involving 35 organizations, Sustainpack was one of the world’s largest research projects in the field of packaging. The overall aim of this R&D work was to develop and implement a Sustainable Packaging Tool Platform, founded on fibre-based packaging materials. Through its material research-oriented sub-projects, Sustainpack sought solutions that would provide strength and good printing surfaces, together with improved barrier properties, sealability, communication properties and convenience for consumers. The viability and potential of each new technology was demonstrated in the packaging solution projects. The use of nanotechnology was of great importance to a number of the research projects. One main project was to produce nano elements from minerals and cellulose fibres. This could make it possible to improve the performance of barriers materials and coatings. Another promising area concerns sensors. These sensors can, for example, provide visual effects, such as changes of colour or shape, based on stimuli, e.g. moisture or electrical signals. A demonstrator from ECOTARGET: A sheet of paper made by means of stratified forming. Catharina Ottestam was the project coordinator. SustainComp: New project develops composite materials As of August, 2008, Innventia has coordinated a new large-scale collaborative project partly financed by the European Commission. The SustainComp Project will run for a period of four years, with a total budget of € 9.5 million, of which the EU contribution is € 6.5 million. This Project involves 17 European organizations. Read more about SustainComp on page 13. Annual Review 2008 INNVENTIA Group 7 New Cluster Research Programme starting up For many years, a well established enterprise at Innventia has been Cluster research work. Here partner customers collaborate to solve problems in common and generate new possibilities, using the resources and expertise available at Innventia. The previous Cluster Research Programme, running since 2006, has produced several significant results and innovations. When the Programme was terminated at the end of 2008, it was time for the next one to begin. Multi-client research has been a key activity at Innventia for many years. This activity is mainly carried out under the Industrial Research banner, which consists of two parts, the Cluster Research Programme and the Trade & Industry Groups. Both are financed mainly by the industry, with leverage from the Swedish Energy Agency, among others. In Cluster Research, there are many advantages for participating companies. For long-term research and development, where an individual company does not have the financial resources or the know-how simply on its own, Cluster Research is a way to share the risks and the investment with other companies dealing with the same matters. The creation of a new Research Programme is a systematic, ongoing process that takes place between Innventia and its partners for evaluating ideas and concepts that focus on future needs. The new Programme, which started on 1 January, 2009, is a collection of 16 Clusters that have enormous potential for making technical accomplishments 8 Meeting of minds: Mattias Drotz during a meeting at Innventia, spring 2009. Cluster Research Programme in the fields that Innventia works, viz. new materials, new functions and new processes in the biorefinery concept, to give just some examples. The Cluster Research Programme has produced several significant results and innovations in recent years. Some results are to be studied further in the new programme; others have already been demonstrated and implemented in bilateral research projects that developed the results produced in the Research Programme. One example of this is the new composite material which was developed in the New Fibres New Materials Cluster. To give an idea of its potential, a demonstrator called Kofes was created in co-operation with two designers and exhibited at the 2007 Milan Furniture Fair. Two years later, a new demonstrator, a chair developed in co-operation with Södra and Claesson Koivisto Rune, a design company, was shown at the Milan Fair. “Bilateral projects are very important, since they make it possible for us to develop innovations and ideas even further. It’s in this way that we contribute to our customers’ profitability and competitiveness,” says Anders Pettersson, who is Senior Vice President of R&D at Innventia. Other examples of products resulting from the Cluster Research Programme are a method for measuring twist and curl to improve paper quality, an energysaving stratified sheet forming process and new biorefinery applications for lignin and hemicellulose. Established routines for IPR Innventia applies carefully developed routines when it comes to all contracts, irrespective of the number of parties involved in an assignment or programme. In what are called multi-client projects, such as the ones in the Innventia Cluster Research Programme, intellectual property rights (IPR) are especially of great importance. For many years now, through the body of regulations that have been established and continuously improved, different companies can carry out collaborative work in the research and development of new knowledge platforms. These platforms can then serve as a basis for further developing and creating competitive advantages for individual companies through their own projects, by means of bilateral projects with Innventia. The body of regulations has been developed by Innventia, together with lawyers from the pulp and paper industry and its chemical suppliers. The basic principle is that all participants in a Cluster own a non-exclusive right to utilise research results in their own operations. In the next step, a company may acquire so called Optional Rights, which means, among other things, the possibility of marketing and selling products based on the results. The other project financiers are then asked by Innventia whether they would also like to have Optional Rights. Finally, if the other project financiers approve, it is possible for an individual company to acquire so called Sublicensing Rights, which gives a third party the right to utilise the results commercially, among other things. Cluster Research Programme 2009–2011 • Chemical Pulp • Chemical and Energy Recovery in the Kraft Pulp Mill • Biorefinery • Energy and Biofuels • Mechanical Pulping • Optimised Fibres for Pulp and Paper Products • Stock Preparation for Energy and Quality Improvement • Applied and Exploratory Paper Chemistry • Improved Dewatering • Paper Mechanics • Web Structure • Fibrous Packaging Material • Future Papyrus • Newsprint of Tomorrow • Packaging Printability and Identification • Wood-Derived Renewables Trade & Industry Groups • ESG, European Paper Sack Research Group • IGP, International Group for Paper Distribution Quality • Miljöpack – Scandinavian group for packaging and environment • Normpack – Swedish Code for Food Packaging Materials • NSP, Nordic Standardization Programme • SKAF, Swedish Paperboard Research Group • MINT – Environmental Indicators for the Swedish Newspaper Companies • SUW, International Development Group for Corrugated Board • Technical Committee for Product Protection • Printing of high quality newspaper supplements with optimal utilisation of raw materials Annual Review 2008 INNVENTIA Group 9 Division Fibre, Pulp, Energy and Chemicals In most cases, our research aims at the implementation of new or improved processes and new products from a pulp mill making a range of producs, i.e. pulp mill biorefinery. The strategy is to keep the production of pulp/cellulose intact and to focus on the valorisation of the main wood polymers, by combining efficient separation processes for value added applications of lignin and hemicelluloses as well as new approaches to producing biofuels. The overall aim is to establish strong value chains. Advanced chemical analysis is another area of growth. Analytical expertise is applied, for example, in our most advanced biorefinery efforts and in the field of product safety, which includes the migration of substances from paper and plastic packaging. Peter Axegård Director focus on » New product opportunities with biorefining As of 2008, by far the biggest effort is being directed at biorefining, where the focus is on value added applications of lignin and hemicelluloses that come from process liquors and wood. Thanks to the close collaboration with pulp and paper companies and chemical companies, such as Akzo and BASF, developments have advanced rapidly. One important milestone has been, of course, the commercialisation of the LignoBoost process. Installations are now being offered by Metso Power as a way of boosting profitability at pulp mills. For example, lignin from the LignoBoost process has proven to be a replacement for fossil fuel oil in lime kilns. This was demonstrated by Innventia and Södra in a successful trial at the Mönsterås Mill in April, 2008. Industrial interest in biorefining is significant and new product opportunities have been identified, e.g. high quality fuels, gas barriers from hemicelluloses and industrial dispersants and carbon fibres from lignin. Compounds, such as betulin and suberin from birch bark, have several possible high-value applications as well. Innventia has developed a water-based extraction process aimed at scaling-up. Until 2007, biorefinery efforts were focused on kraft pulp mills but, in 2008, several activities were initiated on sulphur-free pulping and annual plant fibres, for example, the co-processing of plant fibres in a pulp mill has been identified as a very interesting possibility. 10 Annual Review 2008 INNVENTIA Group Cluster Biorefinery II Project Partners Södra Aracruz Weyerhaeuser UPM-Kymmene Alabama River Pulp Stora Enso Mercer Billerud Holmen Korsnäs Frövi business Duration 2009.01.01 – 2011.12.31 Contact Birgit Backlund +46 8 676 7226 [email protected] Divisions Carbon fibres: a product from biorefinery Industrial interest in biorefining is significant and new product opportunities have been identified. For example, it has been shown that lignin is a possible source of carbon fibres. With a raw material such as lignin, the price of carbon fibres could be lowered and the volume of production could be increased considerably. Under such conditions, carbon fibres could be used in many new fields, e.g. light-weight applications in wind power plants, gas storage and automobiles. For instance, if metal were replaced by carbon fibres in certain parts of car construction, the weight of vehicles and, consequently, energy consumption could dramatically be reduced. The first lignin fibre was spun at Innventia in 2008. Kristin Olander and Birgit Backlund at work in the lab. The first lignin fibre intended for carbonisation was produced at Innventia in 2008. 11 Division Process and Product Innovation Torgny Persson Director 12 PPI is the result of a merger between the EuroFEX Division and the Paper Production Division at Innventia. The name emphasizes our main field of paper technology, linked to its significance for the product, throughout the entire value chain, and the fact that we will be focusing particularly on innovation. There are unique expertise and equipment at PPI for carrying out research with specific industrial relevance. In order to further improve the creation of value for our customers and bridge the gap between basic research and industrial application, CAPPI, the Centre for Advanced Process and Product Innovation, was initiated, together with the Royal Institute of Technology (KTH). In the innovation system created around the development and application of nanocellulose, PPI has taken a prominent position, in which we coordinate and participate in several large-scale international projects. Anna Wiberg and Thomas Eriksson at the building site, spring 2009. Divisions focus on » SustainComp to develop innovative materials using nanotechnology The new major European project, SustainComp, coordinated by Innventia, will develop advanced composite materials from renewable raw materials for a succession of areas of use in a number of different sectors of society, such as the transport and packaging sectors. The aim of SustainComp is to introduce new advanced nanostructured, wood-based biocomposites, but also more advanced materials, such as aerogels and nanostructured membranes. In common with all these materials is the fact that they build on bioplastics, reinforced with woodbased cellulose (either nanocellulose extracted from pulp fibres or directly from pulp fibres themselves). One objective is that the new materials that have been developed are to be sustainable and cost-efficient and that both the new and existing production processes can be implemented. The vision is that these new materials will generate possibilities and opportunities for the forest industry to expand into new business areas while, at the same time, facilitate the integration of forest industry companies with today’s SMEs* in the field of composite materials. This is also a step for the forest industry to develop new concepts and materials in a broad and innovative perspective. SustainComp Project Partners Alcan Technology & Management, BASF, Borregaard, CNRS, Elastopoli, Empa, EPFL, TKK, ITENE, K-Tron, Novamont, PFI, Polykemi, KTH, SCA, SINTEF and Innventia Total budget 9.5 million Euro, of which 6.5 million Euro is funded by the European Commission Duration 2008.09.01 – 2012.08.30 Contact Mikael Ankerfors +46 8 676 7261 [email protected] www.sustaincomp.com *Small & Medium Enterprises Major investments a direction in setting up of CAPPI, Centre for Advanced Process and Product Innovation Innventia develops a research structure that is focused on taking new technologies and techniques out to the industry. One of the steps in this is the major investments at EuroFEX, its demonstration plant. A grant of SEK 35 million from the Knut and Alice Wallenberg Foundation to Innventia and KTH Mechanics allows substantial improvements. New equipment is being developed at KTH Mechanics for studying fibre suspension. The Innventia share of the grant (SEK 25 million) is financing a range of technical equipment at the Pilot Plant, primarily for evaluating new concepts for fibre property optimisation through beating, screening, fractionation and chemical modification. Annual Review 2008 INNVENTIA Group 13 Division Packaging, Media and Materials Kennert Johansson Director This Division focuses on developing and evaluating products with a sustainable perspective in mind. The products involved are not only the primary ones, such as packaging and the graphics media, but our development of materials also covers other areas, e.g. furniture, cars, etc. Of strategic importance is our development of materials and tools for evaluation work that covers the perspective of sustainability, from financial, economic, ecologic and social aspects, when it comes to a product or activity. We support the needs of the industry to be able to assess a package from the point of view of the materials involved, from the aspect of the consumer or what it looks like from a life-cycle standpoint. focus on » Let’s go corrugated! SUW Project Partners BHS Corrugated, Billerud - Gruvöns Bruk, Crespel & Deiters, Glomma Papp, Korsnäs, M-real Kemiart Liners, Peterson Emballasje, Peterson Packaging, Savon Sellu, SCA Containerboard, SCA Packaging, Smurfit Kappa Kraftliner, Smurfit Kappa Sverige, Stora Enso Packaging Membership SUW is open to all companies and organisations interested in and qualified to support SUW’s policies and goals. Contact Astrid Odeberg Glasenapp +46 8 676 7073 [email protected] www.innventia.com/aboutsuw 14 Annual Review 2008 INNVENTIA Group Being in a class by itself, corrugated board is the world’s main material for transporting packages, with up to 70% of the market. To maintain this position and to be able to meet competition from other materials it is necessary for corrugated board to be continually developed and improved. The key to the quality of this product often lies in the production processes, where there is still a lot to learn. Warp is one example of a problem that is affected by e.g. the transfer of moisture and heat into the layers of the corrugated board. In the Trade and Industry Group, SUW, representatives from the paper and packaging industries are consequently concentrating on learning more about the production processes and the tools that are available, in order business to be able to control them better and improve the qualities. As a part of this, an SUW Project that ended in 2008 developed models for the distribution of heat and moisture into the liner layers of corrugated board during the pre-heating stage in its production. Work is now continuing with further developing these models so that they will become a tool for operators, which will give corrugated board producers a better basis for, as well as knowledge about, the conditions of the production process. With this knowledge, it will be possible to improve the qualities in the end products. When it comes to corrugated board, Innventia possesses a solid knowledge platform that comes from years of experience. One example of this is the International Development Group of Corrugated Board (SUW), founded as far back as 1968. It is comprised of fourteen industrial members from the European corrugated board and corrugated board supplier industry. Innventia researchers contribute to it with their own special expertise, know-how and knowledge. Divisions Marianne Klaman and Erik Blohm take a close look at the inkjet printheads at the LINDA pilotscale machine. INNOJET High speed inkjet printing has an excellent potential for growth, especially when in combination with unconventional inks. Research in the INNOJET Project is focusing on the interaction of inkjet technology and substrates and ink. The authenticity of brand products can be guaranteed, when integrating traceable inks. The universal research platform with inkjet print heads and drying equipment has been incorporated into LINDA, a pilot-scale machine. The INNOJET Project is being carried out in a consortium. Annual Review 2008 INNVENTIA Group 15 Renewable liquid biofuels from Scandinavian wood materials In 2008, a research project focusing on the conversion of wood lignin into fuel components and chemicals was completed at PFI. The research focused on the overall process, including: • Wood pre-treatment (modified steam explosion) • Isolation and characterization of lignin after pre-treatment • Pyrolytic conversion of lignin to bio-oil, suitable as a motor fuel. A new, patent pending process has been developed (the Ligninto-Liquid, LtL, Method). The project group consisted of PFI (coordinator), KTH, Univ. of Bergen, Trøndelag R&D Institute. Karin Øyaas is managing the PFI activities on renewable liquid biofuels. 16 PFI PFI Philip A. Reme Director of PFI AS focus on In 2008, research work at PFI consisted of mechanical pulping, paper physics, biofuels and new biobased materials. For printing paper containing wood fibres, the focus was on cost and energy-efficient process solutions, while reaching the targets for printability and runnability. A three-year project on new processes for the production of liquid biofuels from wood was concluded, with promising results. When it comes to new biobased materials, a research project on the development of second generation wood fibre composites was completed. Furthermore, the use of nanocellulose was demonstrated in several new applications. » New energy-efficient process for mechanical pulp production The reduction of energy consumption in mechanical pulping has long been an important field of research at PFI. In 2002, a research project was started jointly with Norske Skog. Plans existed for a rebuilding of the Norske Skog Pisa Mill in Brazil. Earlier trials had shown that the strength target could not be reached using native Loblolly pine as the single raw material. The mill had previously had lower strength targets and had also been allowed to mix in other raw materials. However, there had been a restriction on doing the latter, due to new governmental regulations that were introduced. A new process concept was tested on a pilot scale. This was a cooperation effort among Andritz, Norske Skog and PFI. The tensile strength target could be easily reached on a pilot scale, with a 10% to 30% reduction in energy consumption. Other benefits included increased brightness, fewer shives and the removal of extractives. These promising results were followed up by several pilot-scale trials and plans for full scale trials were made. Although several challenges had to be solved prior to the scaling-up, the full scale results were positive. The process was included in the rebuilding of Norske Skog Pisa. Even though the full process could not be introduced, the new refining line has produced very good results. Energy consumption has been lowered by 10% with a corresponding increase in production. Other benefits are fewer shives, higher brightness and less demand for reinforcement pulp. The mechanical pulp is now solely based on native grown Loblolly pine. The total savings amount to some USD 7 millions per year. Process development and implementation on a full scale in other mills is continuing, with PFI as a research partner. Contact Lars Johansson + 47 73 55 09 17 [email protected] Annual Review 2008 INNVENTIA Group 17 Board of Directors Mats Nordlander Executive Vice President, Stora Enso Packaging Peter Edwall Manager, Technology & Environment, Mondi Dynäs AB Karin Emilsson Technical Director, Södra Staffan Erenmalm Group Vice President, ABB Ltd. Anders Flodström University Chancellor, Swedish National Agency for Higher Education INNVENTIA Board of Directors 2008 Mats Nordlander, Chairman Peter Edwall Karin Emilsson Staffan Erenmalm Anders Flodström Peter Holmstedt Anders Wigsten Magnus Wikström Sven Wird Personnel representatives Pierre Ljungquist, Unionen Staffan Rydefalk, SAK Olof Tillander, Unionen, deputy Anders Lovell, SAK, deputy 18 Annual Review 2008 INNVENTIA Group Magnus Wikström Anders Wigsten Peter Holmstedt Technical Director, President, RISE Research Research Director, Group R&D, Stora Enso Billerud AB Institutes of Sweden Holding AB Sven Wird Vice President, Group Technology, Holmen AB Olof Tillander Unionen INNVENTIA Staffan Rydefalk SAK INNVENTIA Pierre Ljungquist Unionen INNVENTIA Anders Lovell SAK INNVENTIA Organisation Executive Board Gunnar Svedberg President Anders Engström Anders Pettersson Executive Vice President Senior Vice President Research Director Peter Axegård Director of Fibre, Pulp, Energy and Chemicals Kennert Johansson Director of Packaging, Media and Materials Torgny Persson Philip A. Reme Director of Process and Director of PFI AS Product Innovation Helena Vollmer Marketing Director Karl Gustaf Ekfeldt Chief Financial Officer Lisa Tiliander Human Resources Development Anita Ernlund Executive Assistant (Retired in March 2009) Annual Review 2008 INNVENTIA Group 19 Corporate responsibility In all our business activities, we strive to achieve sustainable development along the value chain. Environmental matters, which are an important foundation of sustainability, are given high priority and are integrated into our activities. The results of our work are therefore creating a much higher impact on the environment than the consumption in our laboratories and offices. CSR of the Innventia sites During 2008, Innventia has participated in a newly started network with RISE Holding AB and the other research institutes under the RISE domain, in order to report our sustainability activities. This process resulted in a Sustainability report of RISE according to GRI, an world established reporting method for for sustainability. Our internal Corporate Social Responsibility (CSR) work has led to a greater involvement of the staff in these issues. The report includes twelve sustainability indicators which are selected based on the offices and laboratories activities of all the RISE companies. The summary below gives an account of the first results of Innventia for these indicators. The results have been verified by an external party. Indirect energy consumption (GRI-nr EN4) Energy consumption at Innventia is primarily affected by the number of days the EuroFEX Paper Machine is running. In 2008, EuroFEX was used a lot, which led to a high level of energy consumption: 4,870 MWh/year The district heating consumption used in properties at Drottning Kristinas väg and in Kista: 3,330 MWh/year Emissions of greenhouse gases (GRI-nr EN16) The energy consumption, listed above, is the cause of the emission of greenhouse gases:721 tonnes Women 47% Men 53% Customer satisfaction (GRI-nr PR5) Innventia carries out regular external investigations into its customers’ perception of the company. The results were very positive and indicate that the customers are satisfied. Among other things, the customers place the greatest importance on Technical Expertise: 4.85 (out of a possible 5.0), Expertise for the assignment: 4.8, Understanding: 4.7 and Efficiency: 4.65. Personnel related indicators (parent company) GRI-nr LA1 No. of employees (31 December, 2008) 238 of which 32 are managers (13%) LA7 Absences due to illness 3,731 days Absence due to occupational injury or work-related illnesses 160 days (4% of absences due to illness) Women’s salaries as a percentage of the men’s 81.3% LA14 20 Annual Review 2008 INNVENTIA Group Financial statements Financial Statements The Group consists of the parent company, Innventia AB, with its subsidiaries, LignoBoost Demo AB in Sweden, PFI AS in Norway and STFI-Packforsk UK Ltd. in Great Britain. The profit and loss statement and balance sheet include all the companies, in which the parent company directly or indirectly has more than half of the number of votes per share, and companies in which the Group, in another way, has a controlling influence and a more significant share in the result of their operations, which includes all the companies mentioned above. Income and Operating profit 350 328 291 291 SEK m SEK 1,000 20 250 2008-01-01 2008-12-31 2007-01-01 2007-12-31 15 10 200 5 150 0 -5 100 -10 50 0 Profit and loss statement 30 25 304 SEK m 300 Operating income Net sales Changes in work on contract Other operating income 340,750 -15,514 2,730 297,885 4,703 1,057 327,966 303,645 -7,570 -101,434 -199,506 -10,849 5,136 -45 -2,766 -97,290 -190,671 -10,665 – – 13,698 2,253 Financial income and expense Result from participating in group companies Other interest income and similar revenues Interest expense and similar items 33,803 4,286 -1,776 – 4,473 -886 Profit after financial items 50,011 5,840 -6,757 -79 -2,662 -61 43,175 3,117 -15 2005 2006 2007 2008 Income, SEK m Operating profit, SEK m Turnover per field of activity -20 Operating expenses Raw materials, consumables and subcontractors Other external expenses Personnel expenses Depreciation of fixed assets Items affecting comparability Other operating expenses 3,8% Operating profit 26,6% 34% 35,6% Industrial Research, SEK 111,7 m Exploratory Research, SEK 116,7 m Client Projects, SEK 87,3 m Other, SEK 12,3 m Tax on profit for the year Minority interests in profit for the year PROFIT FOR THE YEAR Annual Review 2008 INNVENTIA Group 21 Balance sheet assets SEK 1,000 2008-12-31 2007-12-31 Fixed assets Tangible assets Buildings Equipment, tools, fixtures and fittings Fixed assets in progress 5,730 7,394 8,937 7,230 11,357 3,034 Financial fixed assets Other long-term receivables 22,061 21,621 18,055 40 Total fixed assets 18,055 40,116 40 21,661 – 4,646 Current assets Inventories and work in progress Work on contract 22 Current receivables Accounts receivable Other receivables Prepaid expenses and accrued income 0 4,646 45,045 41,404 10,230 32,100 16,644 9,185 96,679 57,929 Short-term investments Cash and bank balances ( limit SEK 20m ) 45,468 58,223 – 88,085 Total current assets 200,370 150,660 TOTAL ASSETS 240,486 172,321 Annual Review 2008 INNVENTIA Group Financial statements Shareholders’ Equity and Liabilities SEK 1,000 Shareholders of Innventia 2008-12-31 2007-12-31 10% 10% Shareholders’ equity Restricted equity Share capital Restricted reserves 51% 110 55,292 110 50,862 Unrestricted equity Unrestricted reserves Profit for the year 55,402 50,972 292 43,175 2,014 3,117 43,467 5,131 Total shareholders equity 98,869 56,103 460 364 13,116 1,758 12,571 – 14,874 12,571 29% Direct owners: Billerud, Holmen, Korsnäs, M-real, Stora Enso and Södra IRECO Holding The STFI Association of Interested Parties Long-term liabilities Liabilities to creditor The 1951 Donation Bank overdraft facility Current liabilities Advance payment from customers Work in progress Accounts payable Tax liabilities Other short-term liabilities Accrued expenses and deferred income 1,999 654 – 2,332 629 1,530 2,653 4,491 5,088 6,574 14,140 4,953 55,693 37,182 12,560 – 14,151 2,829 31,854 37,398 99 100 100 90 90 80 80 70 70 60 52 50 60 56 48 50 40 40 30 30 20 20 10 10 0 2005 2006 2007 2008 % Provisions Provisions for pensions and similar liabilities Provisions for taxes Shareholders’ equity and Equity/assets ration SEK m Minority interest The Private Owners’ Association Packforsk 0 Shareholders’ equity, SEK m Equity/assets ratio, % 123,630 98,792 TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES 240,486 172,321 875 262 1,459 251 Memorandum Pledged assets Contingent liabilities Annual Review 2008 INNVENTIA Group 23 2008 in Brief Highlights of 2008 January 29 January: Professor Tom Lindström is awarded the Ekman Medal, which January is one of the most prestigious prizes in the Swedish forestry industry. The January Ekman Medal is awarded annually for “Meritorious technical or scientific efforts in the Swedish forestry industry” by The Swedish Association of Pulp and Paper Engineers (SPCI). February 6-10 Februari: Seminar with Liblab during the Stockholm Furniture Fair 2008. Innventia proceeds further in its collaboration with the University of Arts, Crafts and Design (Stockholm) and other organizations to create January completely new conditions for materials and product development.January Tom Lindström to the left March 11-14 March: The first Nordic Wood Biorefinery Conference takes place in Stockholm, organised by Innventia. The event is a great success and attracts over 200 industrial delegates from more than 20 countries. April Happy faces at the NWBC2008 1-3 April: The Innventia Wood Room Conference 2008 is held in Kalmar, January Sweden. One hundred and thirty or so participants prove that interest in developing techniques and co-operation between forestry and the forest industry exists. 8 April: Trade and Industry Group Miljöpack holds a seminar on Carbon Foot Printing in the Packaging Industry, with visitors from the food, retail and packaging lines of business. 25 April: Start of the KAW Project to expand the EuroFEX Pilot Plant April: Södra and Innventia complete successful trials in the FRAM2 Programme to replace oil with new lignin biofuel in the lime kiln at the January Södra Cell Mönsterås Pulp Mill. May Successful trials in Mönsterås 6 Maj: The third and final conference for SustainPack, an EU Project, presents the final research findings in areas such as protective coatings, 3D composites, fibre-based composite films, communicative packaging, and nanotechnology. 27 Maj: Innventia launches its new graphic profile and introduces its new logo at the SPCI Fair in Stockholm. 27 Maj: Innventia sells LignoBoost AB to Metso (read more on page 6). June 5 June: The 10th anniversary of PFI in Trondheim (1998 - 2008). A seminar is held at PFI in Norway. 24 Annual Review 2008 INNVENTIA Group New logo launched at the SPCI Fair July July: Nandi Nobell, one of the designers of Kofe, wins an international fashion award for his first fashion collection at Saint Martin’s College of Art and Design in London. This was an Innventia sponsored final exam in digital printing and creations of patterns. The first prize is a one year contract with an Italian textile company. August 25 August: Seminar at Innventia on Affective Product and Packaging Design using the Kansei Engineering Method. September 1 September: Start of SustainComp, an EU Project coordinated by Innventia. The SustainComp Project will run for 4 years with a total budget of € 9.5 million, involving 17 partners from Europe. 22-23 September: Research Seminar for Innventia Partner Customers. Visitors were in record numbers at this year’s event. 24 September: Seminar and Workshop on Biofuels in Lime Kilns, held at Innventia. October 1 October: Two new pulp tanks are lifted into place at the EuroFEX Pilot Plant, as part of the KAW expansion project. The tanks make the storage of larger quantities of pulp possible, which means greater flexibility and longer pilot runs. November 12-13 November: Seminar at PFI on Recent advances in fibrillar nanocellulose research – Characterisation and applications. November: Final open conference for ECOTARGET, an EU Project, with results from the whole project being presented. The Project comes to an end in December, 2008. 20-21 November: Seminar at PFI on Biofuels from the forest. 28 November: Workshop at PFI: Research on the biorefinery – possibilities from a Norwegian perspective. December December: The FRAM2 Research Project, coordinated by Innventia, is finalised. The results widely surpass original expectations, according to an evaluation made by the Swedish Energy Agency. December: Best paper awarded in two categories to Thomas Mejtoft and Åsa Nordin at the 2008 Annual Conference of ANZMAC (The Australia and New Zealand Marketing Academy Conference). Joint session at the Research Seminar Doctors and Licentiates 2008 Jasna Stevanic-Srndovic Ultrastructure of primary cell wall of softwood fibres studied using dynamic FT-IR spectroscopy Licentiate thesis, The Royal Institute of Technology Anders Sjöde Chemical characterization in the biorefinery of lignocellulose. Formation and management of oxalic acid and analysis of feedstocks for bioethanol production Doctoral thesis, Karlstad University Magnus Viström Aspects of the impact of technology integration on agility and supply chain management - the potential of digital packaging printing Doctoral thesis, Lund University Peter Åslund On suction box dewatering mechanisms Doctoral thesis, The Royal Institute of Technology Henrik Ullsten Processing and development of wheat gluten plastics Doctoral thesis, The Royal Institute of Technology Thomas Mejtoft Institutional arrangements and competitive posture. Effects of company structures in commercial printing industry Doctoral thesis, The Royal Institute of Technology Parent Company INNVENTIA AB Box 5604, SE-114 86 Stockholm, Sweden Tel +46 (0)8 676 70 00 Fax +46 (0)8 411 55 18 [email protected] www.innventia.com Subsidiaries PFI AS Høgskoleringen 6b, NO-7491 Trondheim Norway Tel +47 33 55 09 00 [email protected] www.pfi.no STFI-Packforsk (UK) Ltd 5th Floor Imperial House 15-19 Kingsway London WC2B 6UN, UK Tel +44 7771 558785 [email protected] www.stfi-packforsk.eu/edge LignoBoost Demo AB Box 5604 SE-114 86 Stockholm, Sweden Tel +46 676 70 00 [email protected]