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What quality do the reprocessors expect?

What quality do the reprocessors expect?. Craig Robinson Head of RCP Sourcing – UK & Ireland UPM Shotton. Summary. UPM overview What is quality? UPM specification Quality inspection methodology Quality statistics/trends Impact of low quality Costs of low quality

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What quality do the reprocessors expect?

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  1. What quality do the reprocessors expect? Craig Robinson Head of RCP Sourcing – UK & Ireland UPM Shotton

  2. Summary • UPM overview • What is quality? • UPM specification • Quality inspection methodology • Quality statistics/trends • Impact of low quality • Costs of low quality What do we want MRF operators to do?

  3. UPM One of the world's leading forest industry groups and number one in printing papers. Main businesses are magazine papers, newsprint, fine and speciality papers, self-adhesive label materials and wood products. In recent years, UPM has strongly developed new business opportunities including RFID tags and inlays, wood plastic composites and bio-fuels.

  4. UPM PAPER MARKETS UPM - Paper and pulp mills in the world Pietarsaari (also pulp) Jämsäkoski Kaipola Tervasaari (also pulp) Rauma Kajaani Kaukas (also pulp) Kymi(also pulp) Caledonian Nordland Shotton Schwedt Augsburg Chapelle Schongau Blandin Docelles Stracel Steyremühl Changshu

  5. 3.050 UPM 2.780 AbitibiBowater 2.560 Nippon Paper Group 2.350 Norske Skog 2.330 Stora Enso 1.900 SCA 1.800 Georgia-Pacific 1.660 Oji 1.410 Myllykoski 1.370 White Birch Paper '000 tons 0 500 1.000 1.500 2.000 2.500 3.000 3.500 Top Deinkers in the World - December 2008 Source: Pöyry, UPM

  6. UPM Shotton – RCP Sourcing • Consume 640,000 tonnes/year of recovered paper (12,500 tonnes/week average) • Pre-consumer • Over-Issue News • Over-Issue PAMs (periodicals & magazines) • Customer press room waste • Post-consumer • News & PAMs • sourced from Local Authorities, merchants, waste management companies, and community groups across the UK & Ireland

  7. What is quality? • It's not just about the product • Quality is now a prerequisite, not a market differentiator • A customer's expectation is to buy a high quality product at the lowest cost • Customer expectations are continuously increasing • It is vital for all stakeholders to effectively manage their position in the whole supply chain • Under any market conditions, quality will always sell

  8. UPM Shotton – News & PAMs specification summary • Optimum newsprint/magazine content • <6 months old • Dry (<12.5% moisture content) • Max 10% white office paper • <4% grey/white board • <1% brown board • <1% non-pulpable

  9. UPM Shotton – RCP quality inspection UPM Shotton inspects loose inbound deliveries using INGEDE Method No.7 – Entry inspection for sorted graphic paper for deinking 1.11 This method assesses the following criteria: • general condition • odour • mould and decomposition • moisture • age • paper composition • contamination composition

  10. UPM Shotton – RCP quality inspection This method utilises the following tools: • Visual check (target - 100% of loads) • 30m2 of surface area only • Gravimetric check (target - 10% of loads) • 45kg random weight sample used as a calibration for the visual check Since January 2006, we have completed: • 37,467 visual checks • 2,700 gravimetric checks

  11. Quality statistics/trends

  12. Quality statistics/trends

  13. Impact of low quality • Increased production variable cost • Increased disposal cost • Increased maintenance cost • Reduced service life of capital equipment • Reduced mill yield • Reduced mill production efficiency • Reduced competitiveness of UK manufacturing in a global market place

  14. Costs of low quality 2008 non-pulpable contamination cost elements: • raw material • logistics • handling • storage • processing • chemical/water usage • yield loss • waste management • disposal • taxation 10,000 tonnes = £2.05m

  15. What do we want MRF operators to do? • Engage with reprocessors during MRF design phase • Invest in the right technology • Align process to collection systems • Inspect input/output quality and communicate the results • Enforce input quality contractual conditions • Have a customer focus throughout the organisation • Adopt continuous improvement principles • Adhere to maintenance schedules • Re-invest/replace as required • Do not run above optimisation capacity • Protect your product

  16. Thank you • Craig Robinson • 01244 284206 • 07771 880303 • craig.robinson@upm-kymmene.com

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