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024 Customer Projects Pulp and Paper Business Area Interview with Sergio Colvin, Managing Director, CMPC Celulosa WORLD-RECORD START-UP Experience I studied Industrial Engineering at the University of Chile and furthered my education in the USA, earning a PhD in Economics from Boston University. Upon my return to Chile in 1978, I interviewed with CMPC. When I asked, ‘What would my job be’ their response was, ‘What would you like it to be’ I told them that I wanted to help them turn their ‘export department’ into a true ‘export business’ – a network that would make them a world-class exporter of specialized products. We were able to accomplish this. In January 2004, we sent out the formal bid packages and by September we had made our supplier selections. In between, we visited mills in Brazil and Scandinavia. We wanted the best available technology, but nothing untried or experimental. All the technology we were considering buying from Andritz could be seen operating somewhere in the world. Probably the best cooking reference for Andritz was right here on Line 1. We knew the quality of the pulp, the throughput, and the characteristics of Lo-Solids ® cooking. Our operators were very comfortable with it. We awarded Andritz contracts for four of the six EPC packages (Fiberline, Recovery Boiler, Pulp Drying/Baling, and White Liquor Plant). Andritz was very flexible in presenting a proposal that minimized a potential source of conflict in any large project – the interconnection and battery limits issues. They were much more flexible in understanding our needs in building this project. The project plan was for 24 months. At the height of construction, there were 8,000 people working at the site. Keep in mind that we were operating Line 1 at full production during this time. While there were small delays in construction, I was most impressed with how Andritz responded. Andritz always acted in a very professional way – solving rather than protecting. Highest environmental and safety standards The country’s spotlight was on us. Two recent pulping expansions by other Chilean companies had raised concerns about environmental safety. We passed 13 national audits and one international audit for environmental compliance during our start-up. We can now say that Santa Fe employs some of the world’s most advanced equipment and procedures for environmental and personnel safety. Record start-up The Veracel mill in Brazil set a record of 174 days to reach design production on a 30-day rolling average basis. We were able to beat this – 171 days, which is now the record. To do this required quality equipment, trained operators, expert commissioning, and perhaps a little bit of luck. In 1997, I was named Managing Director for CMPC Celulosa. We have three kraft pulp mills in Chile with a production capacity of two million tons per year. The Santa Fe Line 2 project When we acquired the Santa Fe mill in 1997, its production was 250,000 t/a of eucalyptus-based pulp. Over the years, we expanded the line at Santa Fe to 370,000 t/a. The fiberline was upgraded with Andritz’s Lo-Solids ® cooking technology and later a Diamondback ® chip bin was added. In 2002, we began seriously planning a new line for Santa Fe. The goals were to increase capacity of the mill, produce a first-quality, stable product, and excel in environmental performance. That we could construct this mill without any safety or environmental problems, start it up and bring it to full production in world-record time, and operate it today with complete transparency for the authorities and our customers, is a grand tribute to all involved. What nature puts at our door Stability is key for us. Our customers depend on us to produce uniformly consistent, high-quality paper no matter what nature puts at our door. While the eucalyptus mix on Line 1 is 70% eucalyptus globulus and 30% nitens, the situation is reversed on Line 2. The fact that the pulp from both lines is almost identical in their key properties is quite amazing. Andritz continues to provide technical advisory services and is developing a longer term maintenance program with us. This is exactly what we want to see. We must keep working together to optimize this mill. This is a permanent relationship, not a temporary one. ANDRITZ Global Top Products 2007
Customer Projects Pulp and Paper Business Area 025 Four EPC packages for a greenfield 800,000 t/a line at CMPC’s Santa Fe mill. [1] The 3,800 t/d Recovery Boiler has a Vertical Air system which virtually eliminates NO X emissions. [2] Andritz delivered a 2,405 t/d Fiberline consisting of a Lo-Solids ® digester with TurboFeed chip feeding, brownstock washing, oxygen delignification, post-oxygen pulp screening and washing, and four-stage ECF bleaching. DD Washers are used for all washing stages. [3] The Pulp Drying/Baling plant from Andritz is a single-line design. Design capacity is 2,520 t/d. Andritz delivered the stock preparation system, the twin-wire pulp machine (shown), the Fläkt dryer, cutter/layboy and three automated bale finishing lines on an EPC basis. [4] The 8,100 m 3 /d White Liquor Plant has a 600 t/d LMD kiln and utilizes X-Filters (shown here) for green liquor filtration. [2] [1] [3] [4] ANDRITZ Global Top Products 2007
Page 1 and 2: Global Top Products Annual REPORT 2
Page 3 and 4: Key Figures 00 KEY FIGURES 2003-200
Page 5 and 6: Global Top Products 00 GLOBAL TOP P
Page 7 and 8: Sustainability and Corporate Respon
Page 13 and 14: Vision 013 VISION World market lead
Page 15 and 16: Global Presence 015 . . . with more
Page 17 and 18: The Financial Year 2007 017 Net wor
Page 19 and 20: The Financial Year 2007 019 major o
Page 21 and 22: Contents 021 Development of the And
Page 23: Customer Projects Pulp and Paper Bu
Page 27 and 28: Customer Projects Hydro Power Busin
Page 29 and 30: Customer Projects Hydro Power Busin
Page 31 and 32: Customer Projects Rolling Mills and
Page 33 and 34: Customer Projects Rolling Mills and
Page 35 and 36: Customer Projects Environment and P
Page 43 and 44: Customer Projects Feed and Biofuel
Page 45 and 46: Customer Projects Feed and Biofuel
Page 47 and 48: Letter from the Executive Board 047
Page 49 and 50: Company Boards 049 SUPERVISORY BOAR
Page 51 and 52: Andritz Share 051 Investor Relation
Page 53 and 54: Corporate Governance 053 C Rule 51
Page 55 and 56: Corporate Risks 055 CORPORATE RISKS
Page 57 and 58: Corporate Risks 057 Cost overruns A
Page 59 and 60: Business Areas Pulp and Paper 059 [
Page 61 and 62: Business Areas Pulp and Paper 061 f
Page 63 and 64: Business Areas Pulp and Paper 063 M
Page 69 and 70: Business Areas Pulp and Paper 069 A
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Business Areas Pulp and Paper 075 A
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Business Areas Pulp and Paper 077 P
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Business Areas Hydro Power 079 [1]
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Business Areas Hydro Power 081 Busi
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Business Areas Hydro Power 085 Rese
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Business Areas Rolling Mills and St
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Business Areas Environment and Proc
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Business Areas Environment and Proc
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Business Areas Feed and Biofuel 097
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Andritz Automation 101 ANDRITZ AUTO
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Manufacturing, Procurement, and Qua
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Manufacturing, Procurement, and Qua
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Human Resources 107 Highly qualifie
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Locations of the Andritz Group 109
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Technical Glossary 115 EPC Engineer
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Financial Glossary 117 MEUR Million
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Andritz AG Stattegger Strasse 18 80
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