3 - Stora Enso

FINE PAPER PULP FROM VERACEL TO OULU
Oulu and Veracel begin working together
Veracel Pulp Mill, the world’s largest single-line pulp mill, started
sustainable production of eucalyptus pulp in May 2005. It exemplifi es
the emerging role of plantations in Stora Enso’s fi bre strategy, and
provides cost-competitive, high-quality raw material for a range of
the Group’s fi ne paper products.
The start-up of Veracel Pulp Mill
went well, and the facility came
on stream two months ahead of
schedule. During its fi rst year of production,
the mill produced about 467 200
tonnes of pulp. Stora Enso’s share, 50%
of the output was used mainly by the
Group’s Oulu and Suzhou fi ne paper
mills. Veracel is a joint venture between
Stora Enso and Aracruz Celulose.
Important for Oulu
Eucalyptus fi bre is ideally suited for fi ne
paper production, as it offers excellent
properties in terms of enhanced printability
and printing quality. Oulu Mill in
Finland received its fi rst shipment of
eucalyptus pulp from Veracel in August
2005. The initial 4 000 tonnes of pulp
were used in test runs on PM 7. Fine
paper experts from Oulu specifi ed the
properties for the pulp from Veracel to
be as close as possible to that previously
sourced from Celbi Pulp Mill. The test
results were very good, and there were
no signifi cant differences between the
two pulps. The consistent quality of pulp
from Veracel will help Oulu Mill retain
the high quality of its output.
Increased volumes of eucalyptus pulp
Integration of Veracel pulp with production
at Oulu is part of Stora Enso’s plan
to replace other short-fi bre pulp with
eucalyptus pulp from Veracel for producing
coated fi ne paper in Europe. Oulu
Mill has used solely eucalyptus pulp
from Veracel since October 2005. Going
forward, the plan is to increase the use
of eucalyptus pulp on both paper
machines.
Pulp supplied by Veracel to Oulu Mill is cost-competitive, despite the long distance between Brazil
and Finland.
Benefi ts from joining NETSS
The pulp from Veracel is cost-competitive,
despite the long distance between
Brazil and Oulu Mill in northern Finland.
Oulu Mill plans to join Stora Enso’s
Northern European Transport Supply
System (NETSS) in mid-2006. The system
uses Stora Enso Cargo Units (SECU) as the
main carrier for transporting Stora Enso’s
products from Nordic mills to local distribution
centres in Continental Europe
and the UK. On their way from Oulu to
Continental Europe, SECUs will be loaded
with fi ne paper and will carry eucalyptus
pulp on the return trip, eliminating
unnecessary transportation of empty
units. This solution will ensure frequent
and regular pulp shipments to Oulu Mill
three times a week and will streamline
warehousing operations as well. •
Oulu Mill
Oulu Mill has an annual production
capacity of 1 015 000 tonnes of fi ne
paper on two paper machines, and
has about 800 employees. The mill’s
products are used in high-quality
publications, such as annual reports,
brochures, marketing materials, and
art and illustrated books.
www.storaenso.com/oulu
Veracel Pulp Mill
Veracel Pulp Mill has an annual
capacity of 900 000 tonnes of
bleached eucalyptus pulp and is
owned by Stora Enso and Aracruz
Celulose S.A. Both shareholders own
50 % of the company’s equity and are
entitled to 50 % of the mill’s output.
The project, including plantations,
the mill, and its infrastructure,
involved a total investment of some
USD 1.2 billion. Veracel is reported as
an associated company in
Stora Enso’s fi nancial statements.
www.veracel.com.br
STORA ENSO COMPANY 2005• 19