Sustainable Products Sustainable Products same period, both values are well within the World Bank / IFC “<strong>Paper</strong> Mill – Printing <strong>and</strong> Writing <strong>Paper</strong>” Guidelines of 5 to 40 m 3 /AD tonne. In terms of water quality, Indah Kiat Tangerang water discharges were consistently below the limits set by local st<strong>and</strong>ards. There were no cases where these water quality limits were exceeded during the <strong>2008</strong> to <strong>2009</strong> monitoring period. Table 38 - Air emissions Key Parameters Coal fuel boiler Gas turbine <strong>2008</strong> <strong>2009</strong> Local St<strong>and</strong>ard <strong>2008</strong> <strong>2009</strong> WB / IFC St<strong>and</strong>ard Coal fuel boiler Gas turbine (mg/m 3 ) (kg/ADT) SO x 76 116 117 3.5 250 – 350 2.12 0.4 0.4 NO x 81.5 83 234 151 650 – 1000 1.45 3.27 1.5 Particulate 39.6 9.62 103.1 14 150 – 800 0.27 0.54 0.5 Opacity (%) 5 7.5 10 10 20 – 35
Sustainable Products Sustainable Products Pindo Deli <strong>Paper</strong> Mills Overview <strong>and</strong> Background PT. Pindo Deli <strong>Pulp</strong> And <strong>Paper</strong> Mills (“Pindo Deli”) comprises two separate sites – Pindo Deli (I) <strong>and</strong> Pindo Deli (II), both located in Karawang, West Java some 60 km east of Jakarta. Pindo Deli (I) was originally established by Indonesian entrepreneurs in 1976, with two small paper machines on a compact 45-hectare site, adjacent to the Citarum River at Kelurahan Adiarsa in West Karawang. Two paper machines were added in 1980 <strong>and</strong> subsequent expansion, both before <strong>and</strong> after the mill’s acquisition by <strong>APP</strong> in 1992, has created a substantial mill complex. The mill now comprises six paper machines, a tissue machine, off-machine <strong>and</strong> on-line coaters, embossing <strong>and</strong> other finishing capacity, an internal waste-paper recycling plant, a calcium carbonate grinding plant, <strong>and</strong> associated co-generation <strong>and</strong> wastewater treatment facilities. The current installed production capacity is 300,000 AD tonnes of paper products per annum. Space limitations at Pindo Deli (I) mill resulted in the establishment of Pindo Deli (II) mill in 1997, with three machines on a 450-hectare greenfield site, also adjacent to the Citarum River, some 15 km from Pindo Deli (I) at Desa Kuta Mekar in East Karawang. Pindo Deli (II) has subsequently seen substantial expansion <strong>and</strong> now has five paper machines, seven cast coaters, a carbon-less paper coater, paper finishing <strong>and</strong> tissue converting equipment <strong>and</strong> the requisite co-generation <strong>and</strong> wastewater treatment facilities. The current installed production capacity is 985,000 AD tonnes of paper products per annum. Pindo Deli (II) mill also features a chloralkali plant on-site. This makes use of the site’s proximity to the large industrial base surrounding Jakarta, to supply caustic soda, chlorine <strong>and</strong> hydrochloric acid to industrial <strong>and</strong> water treatment facilities, <strong>and</strong> also minor quantities of hypochlorites for industrial <strong>and</strong> domestic bleaching <strong>and</strong> disinfectant use. Some caustic soda is also supplied to <strong>APP</strong>’s pulp mills in Sumatra. Pindo Deli (I) <strong>and</strong> (II) have a broadly similar mix of both roll <strong>and</strong> sheeted paper products, comprising writing, printing, copier, preprint (premium wood-free paper) <strong>and</strong> other premium wood-free papers, cast-coated paper, paperboards, carbon-less, thermal <strong>and</strong> art paper, <strong>and</strong> tissue, as well as some packaging grades. The two mills are managed essentially as a single entity, with many employees having roles <strong>and</strong> responsibilities on both sites. Numbers employed in <strong>2008</strong> <strong>and</strong> <strong>2009</strong> were: Table 40 - Employment Site <strong>2008</strong> <strong>2009</strong> PD I - direct employees 1,471 1,428 PD II - direct employees 2,125 2,043 PD I & II - indirect employees 3,574 3,863 Common Responsibilities 3,212 3,118 Statutory Obligations: Environmental Permits <strong>and</strong> Compliance <strong>Report</strong>ing (EN28) Both Pindo Deli operations are authorised, <strong>and</strong> their environmental monitoring <strong>and</strong> reporting obligations are defined, in a series of UKL / UPL submissions to the Environmental Service of Karawang Regency, most recently dated April 2006 for Pindo Deli (I) <strong>and</strong> May <strong>2008</strong> for Pindo Deli (II). Statutory monitoring data specified in the UPL is submitted to KLH <strong>and</strong> the regional authorities semi-annually. Pindo Deli I mill retained a Blue minus ranking in both <strong>2008</strong> <strong>and</strong> <strong>2009</strong>, under the PROPER appraisal scheme operated by the Ministry of the Environment, while Pindo Deli II dropped its ranking in <strong>2009</strong> from Green to Blue minus. This was attributable to third-party transport contractors of wastewater treatment plant sludges being unable to produce current permits for inspection. At the time, the permits were in the process of being processed (retrospectively) by the relevant transportation <strong>and</strong> environmental authorities. No penalties were imposed on either Pindo Deli mill with respect to this issue, or for any other non-compliance with environmental laws <strong>and</strong> regulations in <strong>2008</strong> <strong>and</strong> <strong>2009</strong>. Both mills had their certification under the ISO 14001:2004 Environmental Management System (EMS) St<strong>and</strong>ard renewed in <strong>2008</strong>, valid until 2011. <strong>Paper</strong> Production Production from both mills is predominantly for export markets (62 percent in <strong>2008</strong>, 56 percent in <strong>2009</strong>), shipped from the nearby Tanjung Priok port. <strong>Paper</strong> production, aggregated for both sites, increased from 898,396 AD tonnes in <strong>2008</strong> to 969,908 AD tonnes in <strong>2009</strong>, the 8 percent increase in output reflecting some recovery in the worldwide dem<strong>and</strong> for paper products. Tissue production increased by some 61 percent. Chemical Production Chemical production on the site is based on the electrolysis of brine (NaCl – common salt) to produce chlorine gas, sodium hydroxide (NaOH) <strong>and</strong> hydrogen (H 2 ), <strong>and</strong> further reaction of these products to generate the range of chemicals. Electrolysis is a very intense use of electrical energy. The chlor-alkali plant utilised 43,100 tonnes of purchased sodium chloride (NaCl – common salt) in <strong>2008</strong> (44,000 tonnes in <strong>2009</strong>) to produce, among others, HCl, NaOH <strong>and</strong> Cl 2 . Total chemicals produced by Pindo Deli were 103,370 tonnes <strong>and</strong> 117,302 tonnes in <strong>2008</strong> <strong>and</strong> <strong>2009</strong> respectively. Raw Materials Input Purchased <strong>Pulp</strong> The total amount of pulp purchased by Pindo Deli mills declined by 6 percent between <strong>2008</strong> <strong>and</strong> <strong>2009</strong>, from 741,070 to 696,880 AD tonnes. The majority of pulp used is produced at <strong>APP</strong> mills in Indonesia, from certified / verified pulpwood. Table 42 - Raw material inputs - Purchased pulp Table 41 - Aggregated Mill Production (ADT) <strong>2008</strong> <strong>2009</strong> <strong>Paper</strong> 825,218 868,373 Packaging 30,398 32,668 Tissue 42,780 32,668 Chemical 103,370 117,302 Our imported pulp is also sourced from certified / verified producers. Imported pulp is predominantly bleached softwood kraft (NBKP), used to enhance sheet strength <strong>and</strong> improve the “runnability” of our high-speed paper machines. Bleached chemi-thermo-mechanical pulp (BCTMP) is a high-yield imported hardwood pulp that can substitute for LBKP. The general increase in consumption of certified / verified imported pulp is largely in response to rising customer dem<strong>and</strong> for paper products made only with pulp of certified / verified origin. Both Pindo Deli mills have made further progress in <strong>2008</strong> <strong>and</strong> <strong>2009</strong> in reducing the percentage of fibre used in paper production, <strong>and</strong> replacing it with highbrightness inorganic mineral fillers. The total breakdown of purchased pulp can be seen in the chart below: Recycled Materials All paper mills re-incorporate subst<strong>and</strong>ard paper production or “broke,” back into their products, so that it is not lost from the system. Pindo Deli mills recycled 59,875 AD tonnes of broke in <strong>2008</strong>, 60,222 AD tonnes in <strong>2009</strong>. Pindo Deli (I) mill has an internal waste paper recycling plant <strong>and</strong> is able to produce a substitute for virgin pulp by recycling its internal waste. About 2 percent of the mill’s total fibre usage was de-inked pulp in <strong>2008</strong> / <strong>2009</strong>, with the quantity expected to grow over time. (ADT) <strong>2008</strong> <strong>2009</strong> Fillers Fillers are insoluble, inorganic minerals, added to our papers to confer opacity <strong>and</strong> brightness, or coated onto its surface to give a smooth <strong>and</strong> receptive surface for highquality printing. Typically, fillers amount for some 30 percent of the internal composition of printing <strong>and</strong> copier papers <strong>and</strong> more than 70 percent of any surface coating applied. They are now predominantly calcium carbonate-based, with some continuing use of china clay. Total usage of fillers at the Pindo Deli mills was 273,790 tonnes in <strong>2008</strong>, 266,770 tonnes in <strong>2009</strong>. Starch Starch is used both to improve internal strength of the paper sheet <strong>and</strong>, in modified form, to enhance its surface properties. Usage in <strong>2008</strong> was 52,230 tonnes <strong>and</strong>, in <strong>2009</strong>, 52,020 tonnes. Other Chemicals <strong>and</strong> Process Aids A range of chemicals are used, either as components of the paper or to improve the drainage, operational efficiency <strong>and</strong> cleanliness of the paper machines. These materials include sizes (for ink hold-out), retention aids <strong>and</strong> biocides. Other chemical substances are needed as adhesives <strong>and</strong> inks for converting operations, for raw water <strong>and</strong> wastewater treatment processes, for boiler water treatment <strong>and</strong> a range of miscellaneous uses. The total amount of chemicals used in all processes at both Pindo Deli mills was 87,640 tonnes in <strong>2008</strong>, 90,715 tonnes in <strong>2009</strong>. The quantity used in wastewater treatment was 3,652 tonnes in <strong>2008</strong>, 3,947 tonnes in <strong>2009</strong>. LBKP NBKP BCTMP LBKP NBKP BCTMP Local Certified (LEI) – – – 20,560 – – Local Non-controversial (NCONT) 25,520 – – 181,680 – – Local Verified Legal Origin (VLO) 594,880 – – 338,700 – – Import Certified (PEFC / FSC) 5,970 29,660 – 21,470 81,100 18,840 Import Verified (NCONT / CW) 12,610 55,330 17,100 6,930 23,850 3,750 Total 638,980 84,990 17,100 569,340 104,950 22,590 [EN 28] [EN 1, EN 2] 46 <strong>APP</strong> 08/09 <strong>Sustainability</strong> <strong>Report</strong> <strong>APP</strong> 08/09 <strong>Sustainability</strong> <strong>Report</strong> 47
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