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Forest and forest industry is the basis for wellbeing in Finland November 13 2008. Mr Antro Säilä, Senior Vice President Finnish Forest Industries Federation. Finland – a land of forests and lakes. Area of Finland (Canada) 338,000 square kilometres (9,984,000)
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Forest and forest industry is the basis for wellbeing in FinlandNovember 13 2008 Mr Antro Säilä, Senior Vice President Finnish Forest Industries Federation
Finland – a land of forests and lakes Area of Finland (Canada) • 338,000 square kilometres (9,984,000) • 10% is coveredwithwater (8,9 %) • 187,888 lakes (34 million) • 69% forest (54 %) The Finns: • 5.2 million (32 million) • 67% live in townsorurbanareas (80 %) • 33% in ruralareas (20 %)
Three principal species: pine, spruce and birch Pine (Pinus sylvestris) Spruce (Picea abies) Birch (Betula pendula or betula pubescens)
Forest ownership is a family matter for the Finns • Majority of forestsownedbyprivatepeople • earlierhand in handwithagriculture • nowadays the number of urbanforestowners is growing • One Finn in fivebelongs to a familythatownsforest • Averagesize of a ”familyforest” is lessthan 25 hectares Forest ownership in Finland, % forest land 20.0 million ha
Sustainable forest management: more protected forests than in any other country in Europe • Forestry is steeredbystrictacts, regulations and ecologicalplanning • Continuousstakeholderprocesses • multipleuses of the forests • biodiversity • 95 % of the forestsarecertified • Over 8 % of the forestarea is strictlyprotected (close to 2 millionhectares) Sources: Working group SUTI 2002, Working group ESSU 2000, Finnish Statistical Yearbook of Forestry 2003
Development of forest resources and forest industry production in Finland 1921-2005 SOURCE: Finnish Forest Industries Federation, Finnish Forest Research Institute
Pulp, paper and wood industries use the wood efficiently for different purposes Forests Recycling Pulpwood Pulp Paper Board Logs Wood products • Forest management • Wood procurement • Transportation • Sorting and drying of timber Forestresidues: branches, stumps… Bio-slurries By-products Biodiesel Heat Electricity
Local communities have grown around the mills For example in Varkaus, Eastern Finland
Kyro MyllykoskiPaper Pankaboard Repola Finnish forest industry Stora Enso Oulu Metsäliitto Veitsiluoto • Biggest in Europe • 4th in the world Tampella • 4th in Europe • 8th in the world Forest ja Tambox Enso-Gutzeit Forest industry in Finland • 40 paper and board mills • 38 pulp mills • 170 sawmills • 20 plywood, particle board/fibreboard mills Varkaus Metsäliiton (Ahlström) Teollisuus Corenso United Serlachius Pori, Varkaus Sunila Finnforest Metsä- M-real Tervakoski Tissue Savon Sellu Metsä-Timber Metsä-Botnia Kemi Metsä- Joutseno- Rauma Pulp AhlstromKauttua Jujo Thermal SCA-Packaging Finland Georgia-Pacific Nordic(Nokia) Sonoco Alcore Stromsdal Kaukas Loparex Peterson Packaging Kajaani Schauman Yhtyneet Paperitehtaat Kymmene Rosenlew Rauma- UPM-Kymmene Repola • 3rd in Europe • 6th in the world
Finland in the global forest sector Percentage values of the world totals (%) SOURCE: Finnish Forest Industries Federation
Understanding the magnitude of the forest industry in Finland compared to some other countries Value (€) of forest industry exports per capita and its share of total exports Forest industry exports / total exports, % SOURCE: Finnish Forest Industries Federation; Statistics Finland
Key figures of the Finnish forest industry: 2007* *) Woodworking industries, pulp, paper and paperboard industries **) Includes internal sales of 5 bill. EUR ***) Gross exports minus imported inputs SOURCE: Statistics Finland, Board of Customs
Finnish forest industry is strongly export oriented: 90 % of the production is exported Main markets for the Finnish forest industry products are in the Europe • Finnish forest industry produces paper products for 100 million and wood products for 50 millionpeople • Products bind CO2 and are being used as bio-energy at the end of the life span • Integrated production processes and right government policies have enabled efficient wood processing and bio-energy production Total value of forest industry exports from Finland in 2007 was EUR 12.5 billion Share of the main exportmarkets Germany United Kingdom United States France Spain Russia Japan Belgia 18 % 11 % 6 % 5 % 5 % 5 % 4 % 4 %
Production capacity of the Finnish paper and pulp industry Total capacity 38 mill. tons in 2007
Annual average investments of the Finnish forest industry companies in Finland and abroad *) incl. acquisitions Investments in Finland2005-2007 close toEUR 900 mill. annually SOURCE: Finnish Forest Industries Federation
Global market trends Western / Nordic Europe Mature market Restructuring underway Technology leadership Russia North America Huge coniferous fiber sources Sizable market potential Poor infrastructure Investments needed Mature / declining market Restructuring China Huge growth No fiber sources Aggressive investments Latin America India Fiber sourcing Pulp supplies and investments Big potential Limited own capacity No fiber
Finnish pulp and paper mills are world leaders in clean technology • All mills have environmental permits according to EU IPPC directive and permits are based on the use of Best Available Techniques BAT • The most effective and advanced techniques to prevent harmful emissions and other environmental impacts, or reduce them to acceptable limits • Environmentally, economically and technically feasible solutions
Emissions to air have decreased by 30-80% and landfill waste by 85% per produced tonne since 1992
Increasing pulp and paper industry production – decreasing wastewater emissions
Less is more • Water is needed to produce your daily newspaper • 10 litres 30 years ago • 2,5–6 litres today • in the future even less
We use purified pulp and paper wastewater as high quality drinking water • Drinking water of Helsinki metropolitan area is taken from a lake where pulp, paper and chemical mills and several cities release their purified wastewater • 565 000 people live in Helsinki metropolitan area
Renewable energy - forest industry is the main producer and user of bioenergy Mill fuels of forest industry in Finland 2006 Total 282 000 TJ • Forest industry produces 80 % of bio-energy in Finland • Around 40 % of the total wood raw material in forest industry is used for bio-energy production • The share of bio-energy in Finland is 20 % (total share of renewable energy 25 %)
Employment in the Finnish Forest Cluster Energy sector about 4 000 Transport companies about 1 500 Maintenance companies about 5 000 Others about 38 000 Packaging industry about 5 000 Almost 200 000 jobs in the forest cluster in Finland Graphic industry about 25 000 Machinery and equipment manufacturers about 15 000 Research and developmentabout 3 000 Forestry about 20 000
Employment in the Finnish Forest Cluster Energy sector about 4 000 Transport companies about 1 500 Maintenance companies about 5 000 Others about 38 000 Packaging industry about 5 000 Almost 200 000 jobs in the forest cluster in Finland Graphic industry about 25 000 Machinery and equipment manufacturers about 15 000 Research and developmentabout 3 000 Forestry about 20 000
Average annual earnings in wood products industry in Finland
Applicants for forestry, woodworking and paper industry education in Finland 1996–2008
R&D of the Finnish Forest Cluster, million EUR M€ Annual R&D input approx. 400 M€ Wood industries Pulp and paper industry Machinery Chemical industry
The Finnish pulp and paper industry invests in new products, efficient technologies and renewable energy: priorities in the research strategy Renewal of the industry Competitiveness Sustainable development Customer solutions for the future Intelligent, resource- efficient production technologies
Objectives of the National Research Strategy • To double the value of the forest cluster's products and services by 2030 - half of the value coming from new products • Significant increase in the cluster's R&D • Increased use of domestic wood
Intelligent, resource-efficient production technologies The goal is to develop radically new production systems • New energy and water saving processes • Natural and biodegradable process chemicals/fillers and binders • Lower capital intensity • Higher flexibility
Customer solutions for the future Competitive customer-oriented products and Services • printed electronics and hybrid media • intelligent paper/board • printed intelligence in packaging • bioactive papers and biomarkers • green chemicals and bio-energy
Shifting production and consumption from non-renewables to renewables fosters sustainable development Wood products value chain • Wood helps to mitigate climate change • Reusable products • Side products and waste can be used in the production of bio-energy and bio-fuels • Controllable processes • High environmental standards • Meets customers’ needs
Thank you for your attention! Merci pour votre attention! Antro Säilä