Specval Coatings (previously known as Sappi Cape Kraft paper mill) in South Africa, is a showcase of a leading global paper company, manufacturing 100% Recycled Linerboard and Fluting (corrugating medium) from waste paper.

In 2009 the mill was looking for a sustainable solution to improve the general productivity and Overall Equipment Effectiveness (OEE) through a reputable outsourced maintenance partnering agreement, and selected Quant as the preferred service provider.

The primary objective for the production team was agreed, and the target was to be in the Top 3 Global Efficiency Improvement position, and aiming to become 1st position by 2014.

Engineering teams started focusing on specific production department issues that were causing downtime. Quant maintenance staff also underwent intensive training for skills enhancement. The process department was streamlined and started capturing flows, consistencies and trending data on a daily basis.

Goal alignment sessions were regularly held, including all support departments, when new Specific, Measureable, Achievable, Realistic and within agreed Timeframe goals were set to obtain buy-in from all.

Engineering had to focus efforts on planned maintenance shuts, unplanned downtime, and rework, which hampered the availability and equipment reliability on a regular basis. Best Operating Practices (BOP’s) and Best Maintenance Practices (BMP’s) were revised and new equipment maintenance schedules updated on SAP to prevent premature unplanned failures.

Since July 2013, Sappi Cape Kraft has stayed in the top 5 positions of the Sappi Global Efficiency Ranking, while achieving both the number 1 and 2 positions 3 times and is currently in the number 1 position, here in 2014.

The focus area remains uptime where opportunities still exist. Quality focus is a given and will continue. Machine run rates are currently dryer limited, and this will be worked on during 2015, on our continuous improvement journey to become world class in all aspects of our recycling paper production operation.

Benefits

Improvements from the production planning side and continued daily focus, has resulted in significant improvements to current level of approximately 3%, which is well below budget

The Year to Date OEE is at 81.07%.

About Quant

Quant is a global leader in industrial maintenance. For over 25 years, we have been realizing the full potential of maintenance for our customers.

From embedding superior safety practices and building a true maintenance culture, to optimising maintenance cost and improving plant performance, our people make the difference.

We are passionate about maintenance and proud of ensuring we achieve our customers’ goals in the most professional way.

Want to learn about Quant?

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Website: http://quantservice.com/

Trends that will permeate the future of the sector will be discussed, as well as incentives for innovation and competitiveness required to identify innovative solutions to address the challenges of the current global economic times.  The Ibero-American Conference will take place in parallel with the traditional ABTCP Congress this year and will highlight scientific papers and cases in the pulp and paper industry.

The Pulp and Paper International Congress, this year in its 48^th edition,  will take place from October 06^th to 08^th at the Transamerica Expo Center, in São Paulo, and establishes itself as a reference in the global agenda of industry technical events. It’s a great opportunity for the visitor to get acquainted with the trends which will permeate the future of the sector, as well as to attend the discussions with the leading experts in the pulp and paper industry. 

This year, the Congress theme will focus on the interface “Innovation and Competitiveness” and, in parallel, the 1^st Ibero-American Conference will discuss Bio-Economy, as a concurrent event, carried out jointly with ABTCP 2015, under the central theme “Innovation”, with focus on Economy, Energy and Bio-inspired Materials – BEM 2015 - organized by Riadicyp - Red Iberoamericana de Docencia e Investigación en Celulosa y Papel (Ibero-American Network for Teaching and Research on Pulp and Paper). 

“The Congress is essential to bring visibility to the work carried out inside ABTCP itself. The entity counts on several technical committees, such as Cellulose, Environment, Energy, Maintenance, Recovery and Energy, besides additional production process steps.  So, such participation and share of information between them brings much value, as the expertise of professionals from the pulp and paper sector and from Riadicyp experts will be added”, highlights Francisco Valério, president of ABTCP Congress. 

Over the years, more and more attention has been given to carry on simultaneous events to ABTCP Congress, as a means to add value to the speeches and promote interaction between academic researchers and industry professionals, manufacturers and suppliers, among others, about successful experiments in pulp mills of major global players. “I believe such exchange of information has been occurring over the years, because people attending the Congress are qualified and have a lot of knowledge to share”, reminds Valério.

For Song Won Park, from São Paulo University (USP), who will chair the 1^st Ibero-American Conference on Bio-Economy, ABTCP Congress will enhance the relationship between industry professionals, besides presenting scientific papers from several Ibero-American countries. “The initiative of Riadicyp members, attending ABTCP Congress, will certainly work for enriching the various subjects already traditionally addressed annually by the Association", states Park.

For the last years ABTCP has been working hard in order to improve its processes and add value to all activities developed to the industry professionals. “In this context, the Annual International Congress has received special attention, since it is our main technical event", states Darcio Berni, ABTCP Executive Director. 

Still, according to Valério, the event, which aggregates the Exhibition of technologies parallel to the Congress, is also an essential moment to professional training. “The Congress is a complement of the work developed throughout the year by ABTCP Technical Committees and seminars, on several subjects related to paper, pulp and environment, among others. This combination helps, and helps a lot, the professional training”, he says. 

In his opinion, another issue which will be emphasized during the three days of the event in 2015 will be the ultimate inclusion of the topic sustainability in the business vision of the sector’s companies. “Reputation, governance, respect to human rights, the environment, products quality, everything is related to sustainability in a long term strategy. I would say that, in this century, more and more, such intangible items will have a greater importance. It is a market survival issue", he explains.

Parallel Conference

Researches related to the interaction of forest based businesses with the new bio-economy will be presented during this joint event, in 2015; efficient use of resources, with sustainable management and consumption of materials; the integration of the forest based biomaterials sector with the renewable energy sector; among others.

Seven topics will be discussed during ABTCP Congress and the 1^st Ibero-American Conference on Bio-Economy, such as the market for lignocellulosic materials, pulp and paper; forest based biomaterials, bio refinery and biotechnology; production of pulp, nanotechnology, delignification and bleaching; production of paper, advanced applications, nanotechnology and recycling; and other matters  like chemical recovery and concepts of energy efficiency; engineering of process systems, including automation; environmental management; packaging and tissue paper.

According to Park, ABTCP Congress, besides being of technical relevance, is also a useful tool to historical analysis. “The initial Congress editions, when the technology of pulping and bleaching of Kraft eucalyptus cellulose was discussed, still are unique reference sources for young researchers”, he exemplifies.

He believes that a very effective internationalization cycle in discussed themes occurred in the last decade.  Due to this fact, ABTCP and Riadicyp, joined forces to set up this event in the current model of "Held Jointly", in other words, events which are organized in conjunction, where several conferences combine their activities. “It will be a very productive exchange of experiences among the participants of both events, as already happed in 2012, under this format, during the 45^th ABTCP, which was arranged in total combination with VII CIADICYP”, he highlights.

Exhibition

In parallel to the Congress, the traditional International Pulp and Paper Exhibition, which brings together more than 100 exhibitors, takes place in the pavilions of Transamerica Expo Center. It is a modern and dynamic structure which offers to more than eight thousand visitors a unique opportunity to build relationship with key suppliers and manufacturers in the industry, bringing customers and partners together by concentrating, in one place, national and international companies working throughout pulp and paper production chain.

Since 2013, the Association keeps on making changes in the Congress and Exhibition, positively perceived by the attendees, such as expanding the scope of presented themes, investments in the physical structure of the event, placing the Congress and the Exhibition in the same area, and bringing increasingly renowned speakers encompassing the most diversified and essential topics in the forest area.   

About ABTCP 2015

The 48^th Pulp and Paper International Congress and Exhibition, arranged by ABTCP, will take place from October 06^th to 08^th this year, in São Paulo, SP, and is recognized as one of the major sector occurrences, bringing together professionals willing to exchange knowledge and experience on such productive chain, in the most diverse areas.

Such is its representativeness for the sector that this edition estimates to host over 800 experts and technicians of international reputation. The event happens in conjunction with the also traditional industry Manufacturers and Suppliers Exhibition.

Agenda:
Date: October 6^th to 8^th, 2015

Place: Transamerica Expo Center – São Paulo/SP

Hours: Congress – from 9:00 AM to 05:00 PM; Exhibition – from 01:00 PM to 08:00PM.

Registrations, Congress program and additional information at the website: www.abtcp2015.org.br

Stora Enso has successfully issued two bonds under its EMTN (Euro Medium Term Note) programme. The EUR 125 million ten-year bond pays a floating coupon of Euribor + 2.25%. The second one, EUR 25 million twelve-year bond pays a floating coupon of Euribor + 2.35%. There are no financial covenants. The sole lead manager for the deal was SEK (Swedish Export Credit Corporation).

The maturity of the bonds will extend Stora Enso’s weighted debt maturity profile, because Stora Enso has repurchased the remaining EUR 190 million in its bond issued in 2009 with a floating rate note with a coupon of Euribor +4.21% maturing in 2016. The total cost of the transactions is approximately negative EUR 5 million, which will be recorded under financial items in the third quarter 2015 results.

Stora Enso will use the proceeds of the new loans to finance its operations in Sweden, where the Group employs about 5 000 people and operates five paper and board mills, one pulp mill and two sawmills. Stora Enso has recently opened an innovation centre for biomaterials in the Stockholm area in order to host research, product application, business development, and strategic marketing.

“We have a good long-term relationship with Swedish Export Credit Corporation (SEK). We are delighted that SEK, through this agreement, will support the financing of our operations in Sweden. The terms of the loan are competitive, and through this transaction we enhance our maturity profile in an efficient way,” says CEO Karl-Henrik Sundström.

For further information, please contact:
Seppo Parvi, CFO, tel. +358 2046 21205

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. www.storaenso.com

In July 2015 the joint-stock company PAPCEL signed a contract with the paper concern NEPA in India for modernization of two paper machines for production of newsprint and graphic paper. It is the first sales success and the first major order for PAPCEL Group in this market.

The company NEPA Ltd. is a state paper group, located in Nepangar, Madhya Pradesh state. The government of India supports modernization of the whole paper line. All tender participants had to meet very strict selection criteria; the selection procedure itself took more than six months.

This project is being realized in cooperation with PAPCEL subsidiary in India, which has been operating in the market for more than 5 years. The project is also interesting for the fact that a large portion of deliveries and, above all, services will be realized and purchased directly in India from local subcontractors, and our subsidiary will participate in the subcontracting management process.

The ambition of PAPCEL in the Indian market is to rank as an equal competitor to the world´s major producers of paper technology. In India, there are currently more than 700 operating paper mills, ranging from small mills with technical level of the early 20th century to modern high-capacity mills. The current consumption of paper in India is only 11 kg per capita per year as compared to the world average which is 56 kg. As it is expected that the consumption will increase, local entrepreneurs and governments realize the importance of this fact and the Indian market opened a window of opportunity for local and foreign suppliers of all kinds of equipment and machinery for processing of pulp and paper as well as production of all grades of paper. This is a unique situation and everyone in the paper industry tries to be very active in the Indian market.

The paper mill NEPA operates two paper machines producing paper of width 5.350 mm on reel. Both machines will produce paper with a substance of 40 - 45 g/m2 for newsprint or 50 - 80 g/m2 for graphic paper. After the upgrade, the PM 1 will reach the output of up to 231 tpd (under the maximum operation speed of 700 m/min) and the PM 2 up to 129 tpd (under the maximum speed of 400 m/min). Both machines are expected to improve significantly the drainage process efficiency in the wet parts. The drying parts will undergo major renovations in order to increase the output and decrease the energy consumption per ton of the paper produced. Apart from the paper machine upgrade, the PM approach flow system will be modified and the line for broke processing and the water management system will be supplied as well as stock preparation line and line for preparation of chemicals.

PAPCEL is the general supplier of this project; it provides complete engineering and project management services, controls the assembly and performs the commissioning and the guarantee tests. The assembly will be carried out by local companies.

So far, this is our largest delivery in Southeast Asia and, by its extent, particularly in terms of the delivered services, it is one of the PAPCEL Group’s most important projects.

Valmet will supply a complete OptiConcept M containerboard production line for Lee & Man in Jiang Xi in China. The new production line is planned to produce high-quality containerboard grades out of 100 percent recycled raw materials. The start-up of the machine is scheduled for the fourth quarter of 2016.

The order is included in Valmet's third quarter 2015 orders received. The value of the order will not be disclosed. An order of this scope is typically valued around EUR 40-50 million.

"OptiConcept M has really made its breakthrough as an industry standard for paper and board manufacturing, which is proven by this repeat order from Lee & Man", says Juha Kivimaa, Director, Sales Technology in Valmet's Paper business.

"This repeat order to Valmet strengthens our long partnership in this business area. With good combination of local and imported know how Valmet has shown its capability in earlier projects. Lightweighting is a trend in containerboard business and Valmet's technology is very suitable for these grades", says Edmond Lee, CEO of Lee & Man.

The line ordered by Lee & Man will be the tenth OptiConcept M production line to be supplied by Valmet since the first delivery in 2012. In addition to Asia, Valmet has delivered OptiConcpet M lines also in North America and Europe. The compact and efficient OptiConcept M production line concept covers grades from recycled containerboards to cartonboards and fine paper.

Valmet's delivery will comprise a complete board machine with related process automation solutions, air systems and winder. The annual production capacity of the new machine will be approximately 300,000 tonnes and the design speed 1,200 m/min.

Information about the customer Lee & Man

Lee & Man Paper Manufacturing Ltd manufactures linerboard and corrugating medium grades for industrial packaging purposes. Lee & Man Paper Manufacturing Ltd has been established in 1994 and it is listed on the Hong Kong Stock Exchange. At present the company has about 7 million tons board production capacity in China.

For further information, please contact:
Petri Paukkunen, Vice President, Sales and Marketing, Paper Mills, Valmet, tel. +358 40 744 8182
Fan Ze, Vice President, Capital Sales in China, Valmet, tel. +86 10 6566 6600 3108

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 2014 were approximately EUR 2.5 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.

Read more www.valmet.com, www.twitter.com/valmetglobal

Cortec^® values our clients’ well-crafted products and continues to create corrosion protection solutions to protect these assets. With this in mind, Cortec^® introduces CorShield^® VpCI^®-146 Creped Paper powered by Nano VpCI^® - a premium corrosion inhibiting paper that is environmentally safe, non-toxic, biodegradable, and does not contain nitrites, phosphates, or silicates. CorShield^® VpCI^®-146 Creped Paper utilizes Cortec’s patented Vapor phase Corrosion Inhibiting (VpCI^®) technology to provide a revolutionary way to protect metals in enclosed packages.

CorShield^® VpCI^®-146 Creped Paper is made from the highest quality Neutral Natural Kraft (NNK) paper without any chemical bleaching and is fully recyclable and repulpable. Without any chemical concentrations to calculate or a chemical tank or application system to maintain, CorShield^® VpCI^®-146 Creped Paper is easy to use. Once a product is wrapped in the creped paper, the VpCI^® technology goes to work to protect it from corrosion while the structure of the paper provides protection from damage during transportation by delicately cradling the product.

The VpCI^® coating on the creped paper vaporizes to reach all metal surface areas and provides complete corrosion protection. The unique Cortec^® VpCI’s form a very thin and effective protective layer that does not alter the appearance of products or require removal before further processing or use. The protective layer does not influence properties of most sensitive electrical parts, including conductivity and resistance. Parts protected with CorShield^® VpCI^®-146 Creped Paper can be painted, welded, and soldered.

This biobased, sustainable, and renewable Creped Paper can be used to protect products for storage and shipment in a variety of ways: single item packaging, interleaving, end closures for shipping tubes, inserting strips for recessed areas in large packages, and as sheet liners or separators between products. It is particularly suitable for the bearing industry as CorShield^® VpCI^®-146 Creped Paper offers cushioning, multimetal corrosion protection, and causes the “pooling” effect for RP oils. CorShield^® VpCI^®-146 Creped Paper protects carbon steel, stainless steel, galvanized steel, cast iron, aluminum alloys, copper, brass, and solder.

Applications include:

• Bearing Protection During Storage and Shipment
• Metal Producing: Coils, Wire Reels, Plate, Bar, Etc.
• Metal Forging and Die Casting: Raw and Machined Forgings and Castings
• Metalworking: Stamping, Sheet Metal Work, Springs, Bearings, Fasteners, Tube, Pipe, Nails, Etc.
• Finished Products: Engines, Machinery, Equipment, Tools, Hardware, Appliances, Instruments, Motors, Etc.
• Electrical and Electronic Components, Controls, Etc.

Cortec’s CorShield^® VpCI^®-146 Creped Paper conforms to NACE Standard RP0487-2000 and is RoHS compliant.

The international packaging and paper group Mondi is launching a new campaign, “Our inspiration: nature’s brilliant colours”, which ideally links Color Copy’s outstanding colour reproduction and Mondi's commitment to sustainable development: From 1 September to 15 November 2015 Mondi is hosting a photo competition, in which participants are invited to upload their best wildlife pictures and share how they have captured nature’s brilliant colours.

“Color Copy’s excellent colour reproduction makes it possible to have those brilliant pictures and memories not only in our minds, but to also capture them on printed paper to share with others and for posterity. Our new campaign is about emphasising Color Copy’s unrivalled colour reproduction as well as our commitment to sustainability, each and every day,” says Johannes Klumpp, Marketing and Sales Director for Mondi Uncoated Fine Paper, Europe and International.

Photo Contest – capture nature’s brilliant colours

Exotic fish in the ocean, amphibians with vivid colour markings to ward off predators or the radiant wings of a butterfly are just a few examples of the mesmerising colours and patterns found in nature that serve as inspiration for graphic designers everywhere.

The ten best photographs in the Color Copy contest, chosen via public voting on the online platform, will be awarded prizes. A professional jury will select the winner out of the top ten finalists, whose photograph will also be part of the new Color Copy campaign “Our inspiration: Nature’s brilliant colours.” The first prize is a guided photo-safari for two persons to South Africa, one of the world’s most fascinating natural landscapes and home of the Mondi Group.

One brand - a wide array of applications

Introduced in 1989, Color Copy was the first paper worldwide to be specially designed for use in digital colour laser systems and is still today the number one colour laser brand.[1] The FSC^®-certified and CO₂ neutral paper has set the benchmark for brilliant printing results, especially when it comes to vibrant colour reproduction and proven runnability, providing maximum machine productivity and cost savings with regards to maintenance and servicing.

The colour gamut – making colours come to life

Realistic photo printouts depend on various factors, such as the printing technology, press, amount and type of ink/dry toner and of course paper. Buyers Lab (BLI), the industry’s leading independent research authority, tested Color Copy on a total of 11 different printing devices. “In reality there are billions of colours visible to the eye,” said BLI’s European Laboratory Manager, Martin Soane. “The printing industry traditionally mixes cyan, magenta, yellow and black (CMYK) to reproduce these. Depending on the printing device and paper type, there are limitations when it comes to the reproduction of accurate colours – called the colour gamut. In BLI’s test, Mondi’s Color Copy paper delivered very good gloss and density results on 11 different laser and inkjet printing devices and achieved an outstanding colour gamut throughout the test,” he added.

Sustainable – every day

Color Copy was the world’s first CO₂ neutral colour laser paper and the entire portfolio is FSC^®-certified and thus part of the Mondi Green Range. Sustainability is a fundamental pillar of Mondi’s corporate strategy, with continuous efforts made to further improve the environmental profiles of products and processes. The company’s commitment is underpinned by close collaborations with NGOs such as WWF International, Silver Taiga in Russia and Wessa in South Africa. Its paper products are certified to numerous renowned certifications: FSC^®, PEFC™, EU Ecolabel, Blue Angel, Austrian Ecolabel, and ISEGA.

More information about the Color Copy portfolio, local dealers and the photo contest, is available at www.mondigroup.com/colorcopy.

Actions at Androscoggin and Wickliffe Mills Will Reduce Production Capacity by 430,000 Tons of Coated Paper and 130,000 Tons of Dried Market Pulp

Verso Corporation has announced that it plans to make major reductions in its coated paper and pulp production capacity by shutting down the No. 1 pulp dryer and No. 2 paper machine at its Androscoggin Mill in Jay, Maine, and indefinitely idling its mill in Wickliffe, Kentucky. Together, these actions will reduce Verso's production capacity by 430,000 tons of coated paper and 130,000 tons of dried market pulp. Verso intends to implement these capacity reductions beginning in the fourth quarter of 2015.

Verso's decision to reduce its production capacity was driven by several factors. North American coated paper demand is in secular decline, down 4.7% in the first half of 2015, following declines of 3.4% and 4.3% in 2014 and 2013, respectively, according to the Pulp and Paper Products Council. The effects on U.S. producers have been made significantly worse by a change in the net trade balance due to the strengthening of the U.S. dollar relative to foreign currencies, which has resulted in increased foreign imports from Asia, Europe and Canada and decreased U.S. exports. In addition, high operating costs in Maine, especially high energy costs and local property taxes, were contributing factors.

"One of Verso's founding principles is to do what's right for the company as a whole," said Verso President and CEO David J. Paterson. "This includes maintaining a balance between Verso's supply of products and our customers' demand for them. Remaining true to this principle, and after a comprehensive review of our assets, inventory and demand forecasts, Verso has decided to make significant reductions in our coated paper and pulp production capacity at our Androscoggin and Wickliffe mills."

The shutdown of the No. 1 pulp dryer and the No. 2 paper machine at the Androscoggin Mill will reduce Verso's production capacity by 150,000 tons of coated paper and 100,000 tons of dried market pulp. In addition, to help mitigate the high energy and other operating costs in Maine and to make the Androscoggin Mill more competitive in the future, Verso will optimize the mill's pulp, power and recovery assets. The optimization efforts are expected to take place in the fourth quarter of 2015 and the first quarter of 2016.

The Wickliffe Mill has one machine with the capacity to produce 280,000 tons of coated paper and 30,000 tons of dried market pulp.

Verso anticipates that the capacity reductions and optimization of the Androscoggin Mill will result in the permanent elimination of approximately 300 jobs. Verso expects that the indefinite idling of the Wickliffe Mill will result in the layoff of approximately 310 employees.

"Decisions to reduce production capacity are never easy," Paterson stated. "They are especially difficult for the employees and their families who are directly affected by these actions. Verso is committed to treating all of our impacted employees with fairness, dignity and respect and to communicating openly and honestly with each individual about how this decision will affect him or her. Our Human Resources team will begin meeting with our affected employees immediately."

"Our customers are always top-of-mind as we implement these types of strategic decisions, and we want to assure them that Verso remains steadfastly committed to delivering the high-quality products and services they have come to expect from us," said Michael A. Weinhold, Verso Senior Vice President of Sales, Marketing and Product Development. "Verso's manufacturing system is extremely flexible. Most of the affected paper grades are already qualified to be manufactured on other Verso paper machines, and we are working diligently to qualify the remaining paper grades for production on other Verso paper machines. Our Sales leadership will begin contacting all of our affected customers immediately. Our aim is to ensure that all customer needs are seamlessly met."

About Verso

Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. The leading North American producer of printing and specialty papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso's long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso's passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users. For more information, visit us online at versoco.com.

Metsä Tissue has chosen Valmet's Advantage DCT concept including the Advantage ViscoNip pressing technology for the upgrade of their tissue machine TM 1 in Raubach, Germany. The start-up of the rebuilt machine is scheduled for the first half of 2016.

The order was included in Valmet's second quarter, 2015 orders received. The value of the order will not be disclosed.

"Metsä Tissue is one of the leading suppliers of tissue paper products to households and professional users in Europe. We continuously develop our products, operations and production units to be able to supply high-quality tissue products and to ensure reliable deliveries to our customers. Through this tissue machine renewal in Raubach mill, we aim to enhance the product qualities as well as energy efficiency and process performance in a sustainable way. We have chosen Valmet as our partner because of Valmet's excellent reputation and strong technology know-how in tissue manufacturing," says Christoph Zeiler, Senior Vice President Tissue West Europe, Metsä Tissue.

"The most important benefits of using Valmet's Advantage ViscoNip technology are both the considerable savings in drying energy consumed and improved tissue paper quality. We are proud that Metsä Tissue has selected our well proven Advantage technology for the upgrade of TM1 in Raubach and look forward to working in close partnership to make this a successful project," says Björn Magnus, Sales Director, Tissue Mills Business Unit, EMEA, Valmet.

Technical information

The machine rebuild to be delivered by Valmet includes a new Advantage DCT wet end section with an OptiFlo Tis II headbox and an Advantage ViscoNip press for improved product quality and decreased energy consumption. A new tail threading system and sheet transfer will further advance runnability and performance. The delivery also includes key stock preparation equipment such as an Optislush Pulper and a OptiScreen machine screen.

An extensive package of services including engineering, installation of the tissue machine, supervision, training, commissioning and start-up is also included in the delivery.

Information about the customer Metsä Tissue

Metsä Tissue is one of the leading tissue paper products suppliers to households and professionals in Europe and the world's leading supplier of baking and cooking papers. Metsä Tissue is part of Metsä Group, which is a forest industry group focusing on tissue and cooking papers, fresh forest fibre paperboards, pulp, wood products, and wood supply and forest services. Its high-quality products combine renewable raw materials, customer-orientation, sustainable development and innovation. Metsä Group's sales totalled EUR 5 billion in 2014, and it employs approximately 10,500 people. The Group operates in some 30 countries.

For further information, please contact:

Jan Erikson, Vice President, Sales, Tissue Mills business unit, Valmet, tel. +46 70 517 14 90

Björn Magnus, Sales Director, EMEA, Tissue Mills business unit, Valmet, tel. +46 703 17 79 83

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 2014 were approximately EUR 2.5 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.

As expected, the Cham Paper Group's paper division had a challenging first half in 2015. Investments in machinery upgrades to increase capacity in Carmignano at the start of the year and the relocation of the coating machine from Cham to Italy in the second quarter increased costs and led temporarily to restricted capacity and production inefficiencies. The strengthening of the US dollar against the euro also resulted in significantly higher pulp prices, which could not be passed on directly to customers in the form of price rises. In the new real estate division, preparations for converting the industrial site into a new urban district proceeded according to schedule.

In the first half of the year, the Group achieved a turnover of CHF 100.8 million. Although this is 13.8% lower than in the previous year, in local currencies turnover is actually on a par with 2014. Operating profit before restructuring costs came to a modest CHF 1.5 million (CHF 5.5 million in the same period last year), with the net result virtually even at CHF 0.1 million (CHF 3.6 million).

Positive trend in demand in all segments of the paper division
- Efficiency temporarily curbed by investments in machinery upgrades
- High pulp costs caused by currency effects impact on profitability
- Strong balance sheet - equity ratio 51.6%
- Real estate project remains on track

Paper division
Turnover and profits did not develop in line with the opportunities presented by the market over the first half of the year. The comprehensive upgrade of PM4 in Carmignano to increase capacity and efficiency was completed on schedule at the start of the year. The start-up process proved more difficult than anticipated, however, and the full production potential could not initially be utilised. It was not until February that the machinery was operating at full capacity. The challenging task of relocating the complex digital imaging products to Italy is also going well, albeit with some departures from the budget and timetable. Production costs have increased across the board under the impact of the pulp price, which is traded in US dollars.

The paper division generated net turnover of CHF 100.4 million. Gross profit decreased to a disproportionately high extent from CHF 14.9 million to CHF 10.8 million, while operating profit came to CHF 1.4 million (previous year CHF 5.0 million).

Market demand (however) is satisfactory to good in all segments. The strategic positioning of all three segments in the paper division is promising:

In volume terms, sales in the consumer goods segment were on a par with the previous year in the first six months. The food/non-food and wet glue labels segments enjoyed a positive trend, each growing by almost 12%. In the tobacco segment, the fall in volumes in Europe due to lower demand and more stringent legislation was not entirely offset by growing demand from Asia.

Turnover in products for industrial applications (IR) was up year on year. The Cham Paper Group has further expanded its IR activities in the USA, South America and Asia. Persistently high demand permitted the introduction of price increases, which will boost the result in the second half of the year.

The market for digital sublimation printing continues to grow at an above-average rate, prompting many new suppliers, particularly from Asia, to crowd onto the market offering cheap products. Since production costs are now lower, however, following the transfer of operations to Italy, the Cham Paper Group will be able to hold its ground against the competition.

The transfer of coating technology has been delayed, leading to supply and capacity bottlenecks. The sales team was unable to fulfil all customer orders in the second quarter. Additional investments have since been made in Italy to increase capacity and thus meet the rising demand for DI products.

Real estate division
Another event allowing the general public to have their say was held in late January. This was an opportunity for residents to evaluate the master plan and outline project devised for developing the Papieri-Areal site. Based on their feedback, the outline project and the plan for the open spaces were fleshed out and revised by the team responsible.

In early April, the community of Cham and Cham Paper Group Schweiz AG as the landowner initiated the final phase of the joint planning process by drafting the zoning plan for the Papieri-Areal. The contents of this plan, comprising planning documents with binding regulations and a supplementary planning report, are currently being finalised together with the association and in consultation with specialist cantonal departments. An environmental impact assessment is also currently being prepared for the planned development of the Papieri-Areal and the municipal outline plan and the building and zoning regulations are being revised.

Once these have been circulated to the municipal committees and endorsed by the town council of Cham, the zoning plan and environmental impact report will be presented to the cantonal authorities for preliminary examination on schedule in early October. The aim is still to hold the vote on the zoning plan and the environmental impact report in summer 2016. A potential phasing concept has also been devised in parallel to the zoning plan process.

The space that has been freed up on the factory site has already found numerous temporary uses by more than 50 different tenants, with new enquiries still being received. The real estate division generated turnover of CHF 0.7 million in the first half of 2015 and a more or less even operating profit (EBIT). The development costs for the Papieri project have been capitalised.

Balance sheet remains strong
Despite a dividend payment, the further weakening of the euro and the associated lower valuation of the Italian assets in Swiss francs, the Cham Paper Group still has a strong balance sheet. The equity ratio stood at 51.6% at the end of the first half of the year. The Group has no net debt. The site in Cham is still valued at acquisition cost.

Positive outlook
The Board of Directors and the Executive Management Board believe the Group is well positioned. The paper division serves attractive growth markets across all three of its segments - consumer goods, industrial release and digital imaging. Cost control continues to present a challenge. The exchange rate between the US dollar and the euro and the associated higher pulp prices will continue to impact negatively on the paper division's operating result in the second half of the year.

Key figures at a glance

About Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers. Its papers have surface coatings that give them functionalities that offer added value for customers. The company was founded in 1657 and has three sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino), as well as operating a global distribution network.
The decision to focus on development and distribution activities and to withdraw from paper production in Switzerland has created new space at the factory site in the centre of Cham. The Cham Paper Group is developing an 11-hectare area there, the Papieri-Areal.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's SIX Swiss Exchange.