Metsä Fibre Value through efficient fibre supply and new pulp mill concepts Ilkka Hämälä, CEO Metsä Fibre Oy

Metsä Fibre Value network of the forest industry

Metsä Fibre Focus points and Targets of Metsä Group R&D 3 Improving Process Efficiency & Resource Value Renewable Raw Material as Competitive Edge Value-added Products & Services More from less Low impact production Zero waste Reducing carbon footprint New biobased products for new value chains Lighter weight/less energy intensive strucutures From bulk to value-added products & services Convenience FuBio Eff

Metsä Fibre Utilisation of EffFibre program results ‒ New competence and know-how have already been applied for our recent Joutseno PS investment in June 2013 – Increased pulping yield by glucomannan stabilisation with own process development ‒ In the “forestry” part, new tools to ensure better wood availability in the future have been built and also tools for a more cost-efficient wood procurement value chain ‒ Own spin-off projects in planning

Metsä Group Pulp mill in the core of future biorefineries Mill outline: Kvaerner Pulping Bark, saw dust Turpentine Hemi Precipitate, ash Glauber salt CTO Lignin, hydroxy acids New fibre products Waste water: sludges, P and N Commercial chemical Commercial energy use Current side-stream Extractable

Metsä Fibre Notes Our motivation to take part in joint research programs: ‒ Being part of open innovation is today a must ‒ FIBIC programs aim to build strong Finnish competence platforms ‒ Focused joint research is a cost-efficient way to get high quality research results How to improve: ‒ The greatest challenges relate to IPR issues (with the current system IPR islands are avoided, but, on the other hand, program partners are quite guarded and half-hearted in terms of the actual research) ‒ For the future joint research programs we must find focused “basic research” topics. Are there such left? ‒ We have to keep existing basic industry viable to develop it further

Metsä Fibre Thanks!