Pulp-Paperworld.com / European News

Valmet has been included in the Ethibel Sustainability Index (ESI) Excellence Europe for 2017. The index contains 200 of the European stock listed companies that display the best performance in terms of corporate social responsibility (CSR).

valmet logoEthibel is constantly looking out for companies which may be eligible for ethical investments and to be included in its ethical investment register. From the investment register 200 of the best companies are selected to the Ethibel Sustainability Index. Main areas of assessment are human capital, environmental management, market ethics, governance, social impact and human rights. The assessment is based on external information sources such as sustainability reporting and company web sites.

"The inclusion in the Ethibel Sustainability Index further strengthens Valmet's position as one of the global sustainability leaders. For investors Valmet's inclusion in this index provides further assurance of the company as an ethical investment target. In its assessment, Ethibel is using only external information sources, and thus the inclusion in the index is also a recognition for Valmet's transparent and comprehensive reporting and communications around sustainability," says Anu Salonsaari-Posti, SVP, Marketing, Communications and Sustainability at Valmet.    

In 2016, Valmet was included in the Dow Jones Sustainability World and Europe indices for the third consecutive year with a record high result, and in the CDP Climate A-list for its actions and strategy to mitigate climate change.  

About the Ethibel Sustainability Index Excellence Europe
The Ethibel Sustainability Index Excellence Europe includes the 200 best performing European companies in the field of corporate social responsibility. The analysis is based on research carried out by the rating agency Vigeo Eiris. Ethibel actively promotes socially responsible investing and corporate social responsibility on the financial markets. Read more

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2016 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Published in European News

Valmet will supply a new winder for Shandong Chenming Paper Ltd. at its Zhanjiang site in Guangdong province, China. The board machine BM 4 producing folding box board (FBB) will be equipped with a new winder to increase winding capacity. The new winder will be started-up in 2018.

The order is included in Valmet's first quarter of 2017 orders received. The value of the order will not be disclosed. The value of orders of this type and scope is typically around EUR 5-10 million.

Technical details about the delivery

Valmet's delivery for BM 4 includes a high-capacity OptiWin Drum two-drum winder. The winder is easy to operate, has excellent web separation and its set changes are reliable and fast.

"The high-capacity winder with the latest two-drum technologies is designed for the widest and fastest paper and board machines. This is the third winder with same modern sub-floor concept for Shandong Chenming. The customer has been very happy with the previous two. In this winder model, the winding drums are located below floor level and special attention has been paid to the dynamical behavior of the winder ensuring excellent runnability," comments Senior Technology Manager Jaakko Haapanen from Valmet.

2017 03 23 074940

9,620 mm wide (trimmed web width) BM 4 produces folding box board grades with a basis weight range of 175-450 g/m2. The design speed for the winder is 3,000 m/min. The daily production is about 1,670 tonnes.

Information about the customer Shandong Chenming Paper Ltd.

Founded in 1958, Chenming Group is one of the leading enterprises in papermaking industry. The group's annual pulp and paper capacity is 8.5 million tonnes with a wide variety of pulp, paper and board grades. Its production sites are located in the provinces of Shandong, Guangdong, Hubei, Jiangxi and Jilin.

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2016 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Published in Asian News

Valmet will supply three board machine rebuilds in North America. The customers remain confidential. The goals of the rebuilds are e.g. to increase production and the use of recycled and non-bleached fibers. The start-ups of the rebuilt board machines are scheduled for 2017 and 2018.

The orders are included in Valmet's fourth quarter of 2016 orders received. The value of the orders will not be disclosed. The combined value of these types of orders is typically valued at EUR 20-30 million.

valmet logo"Due to large installed base of paper and board machines in North America and their ageing technology, the need for machine modernizations is quite constant. In number of cases, important reason for the modernizations is to increase energy and resource efficiency. This is also linked to the growing trend of lightweighting in board production. Additionally our customers want to increase the use of recycled and non-bleached fibers," comments Sales Director Jari Siitonen from Valmet.

All together these three deliveries will include modifications to two stock preparation systems and a modification to approach flow system, a number of modifications to the wet ends of the board machines, including a new headbox, and a rebuilt forming section, a new press section, a press section rebuild and modifications to two dryer sections.

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Published in North American News

Valmet will supply Cheng Loong Binh Duong Paper Company with key process technology for its new BM 1 containerboard machine to be located in the company's Ben Cat mill in Binh Duong Province in Vietnam. Valmet's delivery includes a headbox, forming and press sections, a winder and quality measurement system.

The order is included in Valmet's third quarter 2016 orders received. The value of the order will not be disclosed. The value of an order of this type is typically EUR 15 - 20 millions.

valmet logoCheng Loong decided to invest in this new recycled containerboard mill and box plant aiming to tap into Vietnam's growing packaging demands. The start-up of the greenfield machine is scheduled for the beginning of 2018.

"The containerboard market is growing globally driven by increasing e-commerce and new packaging applications. Valmet has developed a number of excellent solutions to meet the market needs. Energy efficiency, high board quality and very good productivity are among the most important highlights of Cheng Loong's board machine," says Jari Vähäpesola, President of Paper Business Line, Valmet.

Technical details of the delivery

Valmet's delivery for the new containerboard machine will include equipment for approach flow system, a new OptiFlo Fourdrinier headbox to ensure higher productivity, OptiFormer Hybrid forming section with blade technology and a center-roll based OptiPress press section with modern shoe press technology for high dryness to improve energy efficiency. Forming section is equipped with a VacuMaster high-vacuum suction box to significantly improve dryness, thus, energy efficiency. OptiWin Drum two-drum base winder has a high capacity to meet the production needs of BM 1 and it is also easy to operate. The delivery will also include Valmet IQ quality measurement system (QCS) to optimize production process and to maximize production.

"Cheng Loong wanted to have a reliable supplier with high-level technology for its greenfield machine. Technology-wise, a headbox, forming and press sections are key solutions in order to secure high energy and production efficiency in containerboard manufacturing. A reliable winder with high capacity is essential for such a containerboard machine. With earlier successful deliveries to Cheng Loong (the latest in Taiwan), Valmet has proven to be able to respond to Cheng Loong's needs," comments Petteri Soini, Senior Sales Manager of Valmet.

The 6,250 mm wide (wire) BM 1 will produce recycled fluting with a basis weight range of 90 - 180 g/m2 at maximum speed of 1,000 m/min. The annual production of BM 1 is 260,000 tonnes.

Information about the customer Cheng Loong Binh Duong Paper Company

Cheng Loong Binh Duong Paper Company is part of Cheng Loong Corporation, which was established in 1959. The company has four paper mills, seven box plants and a business form plant. It has also established manufacturing and sales sites in China, Vietnam, Japan, and the United States. Its annual production capacity is 2.12 million metric tonnes in paper and paperboard and nearly 2 billion square meters in converting products.

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Published in Asian News

Hengan's 19th tissue machine, an Advantage DCT 200HS tissue line supplied by Valmet, successfully started up in August at the company's mill in Wuhu, Anhui province in China. The installation and commissioning were performed in record time and the start-up went very smoothly. The new tissue machine adds another 60,000 annual tons of tissue products to Hengan's current production of more than one million tons per year.

valmet logoPM 19 is Valmet's fifth tissue machine delivery to Hengan. The previous four Valmet Advantage DCT machines are located at Jinjiang, Changde and Weifang mills and were installed in 2006, 2007, 2009 and 2010. Currently the installation of a sixth Valmet delivered tissue machine PM 20 is ongoing, and it will start up later in 2016.   

 "Joint effort and great work from the joint Valmet and Hengan team ensured a successful start-up of our new PM19 at exactly 10:48, August 8. The new machine will raise Hengan Group's total production capacity to 1,080,000 annual tons of tissue and reduce the current production shortage," saysCui Jiantong, Project Manager, HenganGroup

"This start-up is a good example of what can be achieved by the efficient combination of the well proven Valmet Advantage DCT technology and excellent team work.  Thanks to very good and transparent cooperation and joint efforts from the teams involved, we finalized the installation and commissioning in record time. It has been a pleasure to work with Hengan's project and production team and we are looking forward to next start-up," says Svenerik Olsson, Director, China Tissue Business from Valmet.

Technical information about the delivery

Valmet's scope of delivery comprised a complete tissue production line featuring stock preparation systems, Advantage DCT 200HS tissue machine and an automation package from Valmet with Valmet DCS and QCS process control system. The tissue machine has a width of 5.6 m and a design speed of 2,000 m/min and is equipped with OptiFlo headbox and cast alloy Yankee cylinder. The machine is also featured with the well proven Advantage tissue technology including gas heated AirCap hood, WetDust dust system and a SoftReel P reel. Basic engineering, installation supervision, training, start-up and commissioning were also included in the delivery.

Information about the customer Hengan

Hengan International Group Company Limited is an investment holding company mainly engaged in the trading of personal hygienic products. The Company and its subsidiaries are principally engaged in the manufacturing, distribution and sale of personal hygiene products, including sanitary napkins products, disposable diapers products and tissue papers products, food and snacks products and others in the People's Republic of China, Hong Kong and certain overseas markets.

Valmet is the leading global developer and supplier of technologies, automation and services for the pulp, paper and energy industries. Valmet's vision is to become the global champion in serving its customers.

Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. The strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production. Valmet's advanced automation solutions range from single measurements to mill wide turnkey automation projects.

Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.

Published in Asian News

After a comprehensive rebuild supplied by Valmet the rebuilt paper machine PM6 at VPK Paper's Oudegem mill in Belgium has been successfully started. The rebuild in the forming, drying and reeling sections will lift up PM6's production capacity from approximately 185,000 t/a to some 200,000 t/a of high quality packaging grades.

The rebuild was executed in spring 2016 with 148 workers on site during 11 days. Safety is top priority in Valmet's projects, and the rebuild was carried out with no accidents.

Paper machine 6 (PM6) at VPK Paper's Oudegem mill in Belgium
Paper machine 6 (PM6) at VPK Paper's Oudegem mill in Belgium

"The rebuild project went very well. The whole PM6 crew and Valmet experts worked towards the same target: safe and on-time start-up," says Jaakko Kerttula, Project Manager at Valmet. 

Technical details of the delivery

The target of this rebuild was to improve machine speed, safety and efficiency. Valmet delivery for the forming section included among others mist eliminators, vacuum foil boxes and top wire lengthening with additional drive. For the drying section, Valmet delivered UnoRun S runnability boxes, new lead rolls and mechanical drive modification and, additionally, FoilForce tail threading after the dryer section. Also, a complete oil lubrication center including piping, tail threading equipment for the reel area, three sets of forming fabrics and spare parts were part of the delivery.

In spring 2015, Valmet had successfully installed a new Quality Control System (QCS) which has proved excellent performance. "We have achieved high availability and remarkably increased production with automatic grade change, improved process monitoring, and faster paper specifications after web break. Working together with Valmet in these two projects has truly moved our performance forward," states Alexis Zenner, Business Unit Manager at the Oudegem Mill.

Information about the customer VPK Paper

Started in 1935, VPK Paper was built out over the years to one of the leading paper mills in her sector. Annually 500.000 T of waste paper and cardboard are converted to produce just as much new paper.  The produced paper qualities are used as raw material to make corrugated and solid board and tubes and cores.

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Published in European News

The start-up of Kotkamills' rebuilt board machine 2 (BM2) in Finland took place on July 22, 2016. Valmet supplied key technology and automation package for the extensive paper machine grade conversion project. The printing paper (MFC) production line was converted to produce a range of folding boxboards and food service boards.

"Our BM2 is the first machine in the world to have the capability to produce dispersion barrier coatings directly on the machine, producing barrier boards that can be recycled with normal paper waste due to having zero plastic content. The interest in our new sustainable products has been massive. The new machine offers a wide range of interesting possibilities for converters, brand owners and designers alike," says Markku Hämäläinen, Chief Executive Officer of Kotkamills.

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Kotkamills personnel at start-up on July 22, 2016. Kotkamill's CEO Markku Hämäläinen the third from left and Project Director Stefan Fors in the front row kneeling (the second from right). Photo by Johanna Mäkelä.

"The project schedule was really tight; from the change of the ownership of Kotkamills to start-up in less than sixteen months. That is extremely fast. I am very pleased with cooperation with Valmet and how well-prepared Valmet's project organization was for such an extensive project," says Stefan Fors, Project Director of Kotkamills.

About Valmet's delivery

Valmet's delivery included equipment for stock preparation, a new coating section with two layering curtain coating stations, a blade coating station with roll application, a sizing section with film application and all relatedcoating air dryers. A wide scope of equipment for coating color kitchen and machine circulation for sizing and coating was included. The delivery also included a center driven reel, a two-drum compact winder, modernization of dryer section and calender.

An extensive automation package for BM2 included Valmet DNA machine and drive controls with integrated condition monitoring, and Valmet IQquality management solution including QCS, several profilers and web runnability monitoring and inspection system. Automation deliveries for the pulp mill and the Chemithermomechanical pulp (CTMP) plant include a number of analyzers and measurements including optimizing process controlsfor various process stages. CTMP plant and the coating kitchen are also equipped with Valmet DNA automation system.

A performance agreement betweenKotkamills and Valmet was made to continuously develop BM2 coating process to qualify as high class coated board. The agreement involves both on-site support and troubleshooting support via remote connection to speed up problem solving.

"The Valmet-delivered equipment has worked well without any major setbacks. We have also made the first barrier coating run with success," says Petri Aspholm Senior Project Manager from Valmet.

Information about the customer Kotkamills Oy

Kotkamills Oy is a Finnish forest industry company with a long tradition of over 140 years in the business. Kotkamills is part of Kotkamills Group Oyj which was established in early 2015.

Kotkamills produces folding boxboard and food service board, saturating base kraft papers for laminate production, impregnated products and sawn timber. It has two production facilities in Finland and one in Malaysia. The company has approximately 500 employees, with a majority located in Finland. The turnover of Kotkamills Oy was 266 million euros in 2015.

Published in European News

Valmet will supply a moisturizer system to Zhejiang Dongda Paper Co. Ltd. in Hangzhou, Zhejiang Province, China. The new solution, Valmet IQ Moisturizer, will enable the mill to improve board quality on its paper machine PM2.

The order is included in Valmet's second quarter 2016 orders received. The delivery will take place in September 2016.

"IQ Moisturizer is very important for our PM2. Before our decision, we visited another mill where it has been installed and were very impressed by its performance. We expect the solution to solve our current curl issue and help us to increase the machine speed to the targeted level," says Sun Guanfa, General Manager, Zhejiang Dongda Paper Co. Ltd.

"We have earlier supplied a Valmet DNA distributed control system, a Valmet IQ quality control system and a ValmetIQ Process and Quality Vision (PQV) system for Zhejiang Dongda Paper's PM2, and the mill has been very satisfied with their good performance and stable runnability. IQ Moisturizer will now provide the mill with easy and fast curl control without any other curl control measures," says Guo Zhutuan, Sales Director, Automation, Valmet.

Technical information about Valmet IQ Moisturizer

Valmet IQ Moisturizer is a moisturizing system with applications for moisture cross-direction profiling, curl control and smooth moisture level increase. It features an air atomized spray nozzle, a linear water control valve and a mist removal system.

The solution is part of the Valmet IQ product family for monitoring and optimizing process performance and end product quality.

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Information about the customer Zhejiang Dongda Paper Co. Ltd

Zhejiang Dongda Paper Co. Ltd is a major producer of coated white cartonboard and paper in Zhejiang Province. The company was founded in 1999, and its annual production capacity is 400,000 tons.

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Published in Asian News

Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year. Automation has been consolidated into Valmet's financials since April 1, 2015, when the acquisition of Automation was completed.

valmet logoDue to new regulation by the European Securities and Market Authority concerning alternative performance measures, Valmet has decided to replace the performance measure 'EBITA before non-recurring items' with 'Comparable EBITA'. The content of items affecting comparability, i.e. items previously disclosed as non-recurring, remain unchanged and therefore 'Comparable EBITA' equals previously disclosed 'EBITA before non-recurring items'. Items affecting comparability consist of income and expenses arising from activities that amend the capacity of Valmet's operations or are incurred outside its normal course of business. Valmet discloses alternative performance measures to describe the underlying business performance and to improve comparability between reporting periods.

January-March 2016: Orders received, net sales and profitability increased

  • Orders received increased to EUR 803 million (EUR 580 million).
    • Orders received increased in the Pulp and Energy, Paper, and Services business lines.
    • Automation contributed to orders received with EUR 66 million.
    • Orders received more than doubled in EMEA (Europe, Middle East and Africa) and South America.
  • Net sales increased to EUR 652 million (EUR 561 million).
    • Net sales increased in the Paper and Services business lines and decreased in the Pulp and Energy business line.
    • Automation contributed to net sales with EUR 58 million.
  • Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 31 million (EUR 19 million), and the corresponding Comparable EBITA margin was 4.8 percent (3.5%). Earnings per share were EUR 0.08 (EUR 0.05).
    • Profitability improved due to the higher level of net sales in Paper and Services business lines, improved gross profit, and the acquisition of Automation.
  • Items affecting comparability amounted to EUR -2 million (EUR 0 million).
  • Cash flow provided by operating activities was EUR 3 million (EUR -20 million).

Valmet reiterates its guidance for 2016

Valmet is reiterating its guidance presented on February 9, 2016 in which Valmet estimates that net sales in 2016 will remain at the same level with 2015 (EUR 2,928 million) and Comparable EBITA in 2016 will increase in comparison with 2015 (EUR 182 million).

Due to new regulation by the European Securities and Market Authority, Valmet has decided to replace the performance measure 'EBITA before non-recurring items' with 'Comparable EBITA'. The content of items affecting comparability, i.e. items previously disclosed as non-recurring, remain unchanged and therefore 'Comparable EBITA' equals previously disclosed 'EBITA before non-recurring items' (EUR 182 million in 2015). Items affecting comparability consist of income and expenses arising from activities that amend the capacity of Valmet's operations or are incurred outside its normal course of business.

Short-term outlook

General economic outlook

The baseline projection for global growth in 2016 is a modest 3.2 percent, broadly in line with last year, and a 0.2 percentage point downward revision relative to the January 2016 World Economic Outlook Update. The recovery is projected to strengthen in 2017 and beyond, driven primarily by emerging market and developing economies, as conditions in stressed economies start gradually to normalize. But uncertainty has increased, and risks of weaker growth scenarios are becoming more tangible. The fragile conjuncture increases the urgency of a broad-based policy response to raise growth and manage vulnerabilities. (International Monetary Fund, April 12, 2016)

Short-term market outlook

Valmet reiterates the good short-term market outlook for board and paper, and the satisfactory short-term market outlook for services, automation, pulp, energy, and tissue.

President and CEO Pasi Laine: Solid start of the year with increase in orders received, net sales and profitability

Valmet had a solid start of the year 2016 with an increase in orders received, net sales and profitability. Orders received increased in Pulp and Energy, Paper, and Services business lines. As a result of both customer activity and good work in all parts of the organization, the orders received development has been trending upwards in all business lines. The orders received were at an all-time high level in the Services business line. Profitability improved in the first quarter of the year compared to the first quarter of 2015.

Automation has now been a part of Valmet for a full year, and I am very pleased with the development. Summing up the year from the Automation perspective, the integration was a success. Both customers and employees are pleased and energized, we launched new automation products during the year, strengthened Valmet's position in Industrial Internet and, in financial terms, we can be satisfied with the development of the Automation business line. Furthermore, our four business lines have found a good and continuously improving way to cooperate in the customer interface and to bring benefits of our unique and market's widest offering to our customers.

2016 04 27 111600

News conference and webcast for analysts, investors and media

Valmet will arrange a news conference in English for investment analysts, investors, and media on Wednesday, April 27, 2016 at 2:00 p.m. Finnish time (EET). The news conference will be held at Valmet Head Office in Keilaniemi, Keilasatama 5, 02150 Espoo, Finland. The news conference can also be followed through a live webcast at www.valmet.com/webcasts.

It is also possible to take part in the news conference through a conference call. Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at 1:55 p.m. (EET), at +44 1452 560304. The participants will be asked to provide the following conference ID: 82571086.

During the webcast and the conference call, all questions should be presented in English. After the webcast and the conference call, media has a possibility to interview the management in Finnish.

The event can also be followed in Twitter at www.twitter.com/valmetir.

Further information, please contact:

Hanna-Maria Heikkinen, Vice President, Investor Relations, Valmet, tel. +358 10 672 0007

Kari Saarinen, Chief Financial Officer, Valmet, tel. +358 10 672 0031

Valmet's Interim Review January-March 2016

Published in financial News

Proposal for the composition of the Board of Directors

valmet logo
The Nomination Board of Valmet proposes to the next Annual General Meeting, which is planned to be held on March 22, 2016, that the number of members of the Board of Directors until closing of the Annual General Meeting 2017 will be eight and that

  • Bo Risberg, Mikael von Frenckell, Lone Fønss Schrøder, Friederike Helfer and Rogerio Ziviani are re-elected as Board members,
  • Aaro Cantell, Jouko Karvinen and Tarja Tyni are elected as new Board members.

The Nomination Board proposes that Bo Risberg is re-elected as the Chairman of the Board and Mikael von Frenckell is re-elected as the Vice-Chairman of the Board.

Erkki Pehu-Lehtonen, Member of the Board of Directors of Valmet, has informed Valmet's Nomination Board that he will not be available in the election of the Board of Directors in the next Annual General Meeting. Erkki Pehu-Lehtonen (born 1950) has served as a member of Metso's Board of Directors 2010-2013, and he has served as a member of Valmet's Board of Directors since the demerger (December 31, 2013).

The Nomination Board notes, that a personnel representative will participate as an invited expert in Board meetings within the limitations imposed by the Finnish law. The new Board of Directors will invite the personnel representative as its external expert in its organizing meeting after the Annual General Meeting.

"I am very pleased with the diversity of the knowhow and experience that the nominees for the Board of Directors possess. These requirements, forming part of the principles on diversity agreed for Valmet, were high on the Nomination Board's agenda in the procedure preparing the proposal for the Board composition", says Kari Järvinen, the Chairman of the Nomination Board.

Proposed new Members of the Board of Directors

Aaro Cantell is an entrepreneur and Chairman of the Board in Normet Group Oy since 2005. He has previously worked at Fenno Management Oy and Finnish Innovation Fund Sitra, among others. Aaro Cantell is currently Chairman of the Board of Normet Group Oy, VTT Technical Research Centre of Finland Ltd and Affecto Oyj, and Member of the Board of Federation of Finnish Technology Industries.

Jouko Karvinen was the CEO of Stora Enso Oyj between 2007 and 2014. From 2002 to 2006 he was the CEO of the Medical Division of Royal Philips and before that held several executive positions within ABB Asea Brown Boveri Ltd. Jouko Karvinen is currently Member of the Board of Nokia Oyj and SKF AB, Member of Foundation and Supervisory Boards of IMD business school, Lausanne, Switzerland, and Member of International Advisory Board of Komatsu Corporation of Japan.

Tarja Tyni works as Senior Vice President, Corporate Clients and Business Development in Mandatum Life Insurance Company Limited since 2008. She has previously held several positions within Investment Banking of Nordea Group and its predecessors. Tarja Tyni is also Chairman of the Board of Innova Oy and Mandatum Life Investment Services, and Member of the Board of Euroben Life & Pension Limited.

Proposal for the remuneration of the Board of Directors

The Nomination Board proposes to the Annual General Meeting that the annual remuneration payable to the members of the Board of Directors to be elected at the Annual General Meeting for the term until the close of the Annual General Meeting in 2017 be as follows:

  • EUR 100,000 for the Chairman of the Board,
  • EUR 60,000 for the Vice Chairman of the Board and for the Chairman of the Audit Committee,
  • EUR 48,000 for each Board member.

In addition, the Nomination Board proposes that a meeting fee in the amount of EUR 700 shall be paid for those members whose place of residence is in Nordic countries, EUR 1,400 for those members whose place of residence is elsewhere in Europe and EUR 2,800 for those members whose place of residence is outside of Europe for the Board meeting attended, including the meetings of the committees of the Board of Directors.  

The Nomination Board proposes to the General Meeting that as a condition for the annual remuneration the members of the Board of Directors are obliged, directly based on the Annual General Meeting's decision, to use 40 percent of the fixed annual remuneration for purchasing Valmet shares from the market at a price formed in trading at Nasdaq Helsinki's stock exchange list and that the purchase will be carried out within two weeks from the publication of the Interim Review for the period January 1, 2016 to March 31, 2016.

The Nomination Board

Kari Järvinen (Managing Director, Solidium Oy)acted as the Chairman of the Nomination Board. The members the Nomination Board were Martin Oliw (Partner, Cevian Capital AB), Roger Hagborg (Investment Advisory Professional, Triton), Risto Murto (CEO, Varma Mutual Pension Insurance Company) and Bo Risberg as an expert member in his capacity as the Chairman of the Board of Directors of Valmet.

Valmet's Board of Directors will include these proposals into the notice of the Annual General Meeting of 2016, which is estimated to be published on February 9, 2016.

Further information, please contact:

Kari Järvinen, Chairman of Valmet's Nomination Board, tel. +358 40 548 3995
Rasmus Oksala, General Counsel, Valmet, tel. +358 10 672 0026

Published in financial News
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