CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board

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CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
SPRING                                       2021

         METSÄ BOARD PROFESSIONAL MAGAZINE

                                               Materials at the
                                             heart of circularity

                                                     Next normal
                                                    of packaging

                                                      A revolution
                                                    that began at
                                                     the Kemi mill

                                 CIRCULAR
                                PACKAGING
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
2                                                                                                                                                                                   3

Board Magazine
                            CONTENTS                                                                1/ 2021

     Circular economy
     When it comes to recycling, paper and board packaging                                                                                                                                                                                                                                           Theme:
     is outstanding, with a recycling rate of 83% in Europe.                                                                                                                                                                                                                                          E V E RY T H I N G
                                                                                                                                                                                                                                                                                                      M UST F LOW

      Source: Eurostat                                                                                                                                                                                                                                                                                What does the
                                                                                                                                                                                                                                                                                                      circular economy
                                                                                                                                                                                                                                                                                                      mean for the future
                                                                                                                                                                                                                                                                                                      of packaging?
                                                                                                                                                                                                                                                                                                      page 16

                                     SH O RTS
                            28
                                     New 3D fibre under development. Corrugated berry packaging.
                                     Sustainable textile fibre. The ExpandFibre Programme. Metsä Board’s
                                     investment plans. Comparing single-use and reusable tableware.
                                     Metsä Board on CDP’s A Lists. page 4

                                     S U S TA I N A B L E    S U S TA I N A B L E    INVESTING IN
                                     SOLUTIONS               SOLUTIONS               FUTURE

                                     Unilever promotes       Metsä Board is an       New bioproduct mill
                                     forest-based            innovation partner.     in Kemi.
                                     materials in pursuit    page 11                 page 12

                                                                                                                Investing in sustainable growth
                                     of sustainable
                                     packaging.
                                     page 8
                                                                                                                Demand for paperboard is growing globally,                                       In addition to the investments in paper-
                                                               32
                                                                                                                and the trends favouring fossil free packaging                                 board, we are continuing our innovation colla-
                                     ENVIRONMENT
                                                                                                                materials are further accelerating growth. We                                  boration with our customers and partners at
                                     Nordic forests                                                             are in a good position to respond to this demand                               our Excellence Centre. This collaboration and
                                     are thriving.                                                              and to grow sustainably with our customers.                                    our virtual workshops bring together global
                                     page 22
                                                                                                                  With the Kemi investment, we will strengt-                                   design perspectives and technical expertise to
                                                                                                                hen our position in white-top kraftliners, and                                 co-create innovative packaging solutions for
                                                                                                                the planned capacity extension in Husum in                                     our customers worldwide. I’ve been impres-
                                     S E RV I C E S
                                                                                                                Sweden will do the same on the folding box-                                    sed to see the success you can achieve through
                                     How can we help                                                            board side. The Kemi bioproduct mill project                                   virtual cooperation and advance joint inno-
                                     with our services?
                                                                                                                and the Husum pulp mill renewal are both                                       vation also at a time when physical meetings
                                     page 26
                                                                                                                good news. With our own modern pulp mills,                                     are not possible.
                                                                                                                we will be in an excellent position to develop                                   Throughout this exciting journey, we aim
                                                                                                                our paperboard business in the longer term.                                    to leverage our in-depth knowledge of fibres
                                     NEXT NORMAL             NEXT NORMAL             BRAND
                                     PA C K A G I N G        PA C K A G I N G        D EVE LO PM E NT             The investments are also an important step                                   and fibre-based packaging and the benefits
                                                                                                                towards our 2030 sustainability targets. Effe-                                 of using pure, safe and sustainable northern
                                     McKinsey is             Van Genechten           Pharma
                                     seeing new normal       Packaging is turning    packaging – what’s         ctive actions are needed to mitigate climate                                   wood fibre material. Read more about these
                                     in packaging.           sustainability into     on the horizon?            change, and we want to lead the way to fossil                                  topics in this issue.
                                     page 28                 reality.                page 32                    free production. This will mean further op-
                                                             page 30                                            portunities for our customers to decrease the                                                                                        Mika Joukio
                                                                                                                carbon footprint of their packaging.
                                     C LOSE U P              TH E A RT O F           FA C T S & F I G U R E S
                                     OF A DESIGNER           PA C K A G I N G
                                                                                     Product portfolio
                                     Designer Andrew         Metsä Board’s demo      and Metsä Board in         M ETSÄ BOA R D M AG A Z I N E | S P R I N G I SS U E 2021 | M AG A Z I N E@ M ETSAG RO U P.C O M | I SS N 2323- 550 0 | P U B L I S H E R M ETSÄ BOA RD C O M M U N I CATI O N S ,
                                     Gibbs creates           brochure is pushing     numbers.                   P.O. BOX 0 0, F I - 02020 M ETSÄ , F I N L A N D | W W W. M ETSA BOA R D.C O M | E D I TO R - I N - C H I E F M A RJ O H A LO N E N , V I C E P RES I D E NT, C O M M U N I CATI O N S | M A N AG I N G
                                                                                                                E D I TO R A N N A- K A I SA KO NT I N A H O | E D ITO R I A L BOA R D M A RJ O H A LO N E N , A N N A- K A I SA KO NT I N A H O A N D RIT VA M Ö N K Ä RE | P RO D UCTI O N A N D G R A P H I C
                                     packaging to last.      the boundaries.         page 39                    D ES I G N H U B E H E LS I N K I OY | C OV E R 3 D R E N D E R I N G F UTU PAC K | P R I NT M A RK P R I NT OY | T H E O P I N I O N S E X P RESS E D I N TH I S P U B L I CATI O N A RE N OT
                            36       page 34                 page 36                                            N EC ESSA R I LY TH OS E O F M ETSÄ BOA R D. | A D D R ESS SO U RC E M ETSÄ BOA R D’S C U STO M E R A N D STA K E H O L D E R REG I STE R . I F YO U D O N OT WA NT TO REC E I V E
                                                                                                                T H I S P U B L I CAT I O N I N T H E F UTU R E , P L E AS E S E N D A N E- M A I L TO M AGA Z I N E@ M ETSAG RO U P.C O M .
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
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Texts: Miia Esa
Photos: Metsä Board,
Andrew Taylor
                                                                                                                                                          1––

                                                                                                        1 –– N E W C O R R U G AT E D B E R RY
                                                                                                        PA C K A G I N G C O M P L E M E N T S
                                                                                                        P R E M I U M S T R AW B E R R I E S W I T H
                                                                                                        TO P- Q UA L I T Y P R I N T

       A new 3D fibre                                                                                   With their partner network, Metsä Board

       product to meet                                                                                  and DS Smith have innovated a modern and
                                                                                                        top-quality berry box. The packaging is printed

       high demand                                                                                      using process colour and Full HD technology,
                                                                                                        which has reduced ink consumption while
                                                                                                        enabling exceptionally high image quality and
                                                                                                        bright colours. A photo-based multicolour
        Metsä Group’s innovation company Metsä Spring                                                   print was printed on the corrugated board.
        has begun the construction of the new pilot plant in                                              “This process was extremely demanding,
                                                                                                        and required a high-quality coated white
        Äänekoski, Finland. The technology applied in the
                                                                                                        kraftliner,” says Ville Laiho from DS Smith,
        pilot plant will convert wet wood pulp into ready­                                              the packaging producer.
        to­use 3D fibre products without any intermediate                                                 The final result is sustainable and safe
        steps.                                                                                          packaging which adds value to sales
                                                                                                        recognition and helps branding go further.
          “The technology opens up new possibilities for de­
        veloping a competitive production process and new
        innovations to replace plastic in a variety of packag­                                          Facts about the product:
        ing solutions. We use sustainably produced wood fi­                                             Material: EB-flute corrugated board using
        bre as our main raw material and strive to process it                                           MetsäBoard Pro WKL 175 g/m²
                                                                                                        (36 lbs/1000 ft2) as topliner
        into first­class packages,” says Jarkko Tuominen,                                               Converter: DS Smith
        Project Lead at Metsä Spring.                                                                   Repro: Marvaco
          The pilot plant, scheduled to start operations                                                Design: Futupack
        in late 2021, will be built in cooperation with
        Valmet, a Finnish developer and supplier
        of technologies.

                                                                                                                                                                      2 –– S U S TA I N A B L E T E X T I L E F I B R E ?
                                                                                                                                                                      Y ES PL E AS E !

                                                                                                                                                                      The textile fibre demo plant in Äänekoski, Finland, has
                                                                                                                                                                      produced the first test batches of the new material. The
                                                                                                                                                                      textile fibre is made from Metsä Group’s paper-grade
                                                                                                                                                                      pulp, using a novel and environmentally friendly produc-
                                                                                                                                                                      tion process.
                                                                                                                                                                        The demo plant is owned and operated by MI Demo,
                                                                                                                                                                      a joint venture between Metsä Spring, Metsä Group’s
                                                                                                                                                                      innovation company, and Itochu Corporation.
                                                                                                                                                                        “Reaching this stage of the investment project is a
                                                                                                                                                                      significant milestone within the overall demonstra-
                                                                                                                                                                      tion project,” says Niklas von Weymarn, CEO of Metsä
                                                                                                                                                                      Spring and Chairman of the Board of MI Demo.
                                                                                                                                                                        The test and development phase began in late 2020
                                                                                                                                                                      and is expected to last about two years. Based on the
                                                                     Could a chocolate box look like
                                                                      this? This is a demo sample of
                                                                                                                                                           –– 2       outcome, Metsä Group will consider investing in a com-
                                                                                                                                                                      mercial mill.
                                                                                  3D fibre packaging.
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
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Texts: Miia Esa
Photos: Mikko Tikka / Fotonokka,
Metsä Board, Lina Jelanski / Duotone
                                                                              M ETSÄ BOA R D P L A N S I N V E ST M E N TS
                                                                              AT H U S U M M I L L

                                                                              Metsä Board has started pre-engineering for
                                                                              increasing the annual production capacity of
                                                                              folding boxboard machine BM1 at the Husum
                                                                              mill in Sweden by approximately 200,000
                                                                              tonnes. The final investment decision is subject
                                                                              to the results of the pre-engineering phase. The

    Exploring new                                                             readiness to make the final investment decision
                                                                              is expected to be achieved in the summer of

    opportunities for
                                                                              2021 and the ramp-up of the additional capac-
                                                                              ity would start in 2023.
                                                                                The renewal of the Husum pulp mill is pro-

    using pulp fibre                                                          gressing. The first phase, with an investment
                                                                              value of EUR 320 million, includes a new recov-
                                                                              ery boiler and turbine and is an important step
                                                                              towards fossil free production.
    Could pulp be used more diversely in packaging? ExpandFibre, the
    joint EUR 50 million R&D collaboration and ecosystem launched by
                                                                                In January, Metsä Board concluded the sale
                                                                              of 30 per cent of the Husum pulp mill to Norra
                                                                                                                                 1
                                                                              Skog, a Swedish forest owners’ cooperative. The            1 –– N E W S T U DY C O M PA R E S S I N G L E -
    Metsä Group and Fortum, aims to answer questions like this. The goal                                                                 U S E F I B R E - B A S E D PA C K A G I N G W I T H
                                                                              deal further strengthens Husum’s availability
    of the next four years is to develop new technologies and business        of local certified wood and releases capital for
                                                                                                                                         R E U S A B L E TA B L E WA R E

    concepts that help produce new bioproducts using pulp derived from        growth in paperboard.
    straw and wood.                                                             “At the time of closing of the transaction               A study published by the European Paper Pack-
                                                                              Metsä Board is practically a net debt-free                 aging Association (EPPA) reveals that single-use
      In particular, food packaging and the grease and moisture resist­
                                                                              company. This provides an excellent platform               fibre-based food and drink packaging used in
    ance of packaging – the barrier solutions – are possible end­use areas.                                                              European quick service restaurants provides sig-
                                                                              to grow our core business – sustainable and
    Metsä Board is leading the development of new pulp­based packag­          high-quality fresh fibre paperboard,” says CEO             nificant key environmental advantages compared
    ing solutions with Metsä Group’s innovation company Metsä Spring.         Mika Joukio.                                               with reusable tableware.
      The programme aims to build a global innovation ecosystem.                                                                           The Life Cycle Assessment (LCA) was carried out
                                                                                                                                         by Ramboll, the independent Danish consultants
      “This is a new way of collaborating in a network. The ecosystem cur­                                                               to the European Commission, and certified by TÜV.
    rently includes 35 partners,” says Katariina Kemppainen, Investment                                                                  According to the study, reusable tableware gen-
    Manager at Metsä Spring and Programme Manager of ExpandFibre.                                                                        erated 177 per cent more CO2 emissions than the
      We welcome our packaging partners to join the ExpandFibre eco­                                                                     paper-based single-use system and consumed 267
                                                                                                                                         per cent more fresh water.
    system!
                                                                                                                                            “The study provides science-based evidence on
                                                                                                                                         how single-use paperboard products can reduce
                                                                                                                                         CO2 emissions and the use of ever-decreasing
                                                                                                                                         water resources,” says Risto Auero, Metsä Boards’
                                                                                                                                         Sales Director of food service boards and repre-
                                                                                                                                         sentative to the EPPA.
                                                                                                                                           Read more on EPPA’s web site www.eppa-eu.org.

                                                                                                                                         2 –– M E T S Ä B O A R D S C O R E D A G A I N
                                                                                                                                         ON CDP’S A LISTS

                                                                                                                                         Metsä Board has again achieved a place on CDP’s
                                                                                                                                         Climate A and Water A lists. CDP is a non-profit
                                                                                                                                         global environmental data reporting system that
                                                                                                                                         aims to get companies and governments to reduce

                                                                                                                                 –– 2    their greenhouse gas emissions, and secure water
                                                                                                                                         resources and forests.
                                                                                                                                           In addition, Metsä Board is also included on the
                                                                                                                                         2020 CDP Supplier Engagement Leaderboard. The
                                                                                                                                         company has been on the “A List” in CDP’s Climate
                                                                                                                                         programme since 2016.
                                                                                                                                           “Our ambitious target is to have 100 per cent
                                                                                                                                         fossil free mills by 2030, and the ‘A List’ positions
                                                                                                                                         are a recognition of our systematic work to achieve
                                                                                                                                         these aims,” says Mika Joukio, CEO.
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
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Sustainable solutions

Unilever strives
for sustainable
packaging
More ecological packaging is in the minds of many
corporate front runners right now – but how do
you ensure that your products utilize sustainable
packaging solutions at all times?
Sami Anteroinen, photos: Unilever, Marika Lindström

O
          ne of the pioneers in the field is Unilever, a global mar-       from certified sustainably managed forests or were made from
          ket leader in various sectors and the owner of several           recycled fibre.
          world-class brands such as Dove, Pepsodent and Rex-                For Unilever, sourcing paper and board packaging in a sus-
ona. Marika Lindström, Procurement VP, Packaging and Beau-                 tainable manner supports its commitment to zero net deforesta-
ty & Personal Care at Unilever, says that the company has both             tion. At the same time, these green methods strengthen the sup-
paper and board as well as plastics related sustainability targets.        ply chain and help build trust among consumers.
  “We want to have a deforestation-free supply chain for wood-               When it comes to the eminent rise of fibre-based packaging,
based packaging by 2023. For plastics, we want an overall plastic          Unilever sees the role of fibre-based packaging increasing in the
reduction of 100 kilotonnes by 2025, 50 per cent virgin plastic re-        future as the company keeps reducing plastic. “Fibre-based ma-
duction, 100 per cent recyclability and 25 per cent post-consum-           terials have good recyclability and recycling infrastructure. We
er recycling inclusion by 2025,” she says. Post-consumer recy-             need to ensure a full chain of custody and transparency in the
cled content (PCR) refers to material that is made from the items          supply chain to make sure that we are deforestation-free,” Lind-
that consumers recycle every day, such as aluminium, cardboard             ström says.
boxes, paper, and plastic bottles.                                           “At present, we use both virgin and recycled fibres in our cate-
  According to Lindström, the issues related to packaging are              gories, depending on the product that the packaging is for. Both
vital in many respects.                                                    are equally important.”
  “Packaging is critical to protect the product, to make the prod-
uct appealing and convenient for consumers, and to help deliv-             Less plastic, better plastic, no plastic
er brand purpose,” she lists.                                              Running parallel to the fibre-based approach, Unilever is en-
                                                                           gaged in carrying out its “Less plastic. Better plastic. No plastic.”
The future is fibre-based                                                  internal framework. Implemented in 2017, the framework out-
Unilever sources its paper and board packaging from around                 lines the company’s approach to how it will achieve its set sus-            The innovative Vegetarian Butcher series
                                                                                                                                                         is packed in MetsäBoard Prime FBB EB
300 suppliers. In 2019, 97 per cent of the directly purchased pa-          tainability targets, thus guiding Unilever innovation ever more              265 g/m2 (17.9 pt). The eco-barrier board
per and board packaging materials used by the company came                 into sustainability.                                                            helps reduce plastic in the packaging.
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
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                                                                                                              P I VOT I N G F RO M
                                                                                                              PL ASTI C

                                                                                                              By 2025, Unilever wants to:
                                                                                                              • Halve the amount of virgin
                                                                                                                plastic it uses in its pack-
                                                                                                                aging, delivering an absolute
                                                                                                                reduction of more than
                                                                                                                100,000 tonnes in plastic
                                                                                                                use.
                                                                                                              • Help collect and process
                                                                                                                more plastic packaging
                                                                                                                than it sells.
                                                                                                              • Ensure that 100% of
                                                                                                                its plastic packaging is
                                                                                                                designed to be fully reusa-
                                                                                                                ble, recyclable or composta-
                                                                                                                ble.
                                                                                                              • Increase the use of
                                                                                                                post-consumer recycled
                                                                                                                plastic material in its pack-
                                                                                                                aging to at least 25%.

Lipton is an example of the cooperation between Unilever and Metsä Board. The company's
world-famous brands can also be seen in Singapore, where Marika Lindström is based.

  Here’s the breakdown: “Less plastic” is about cutting down the                 Metsä Board is a long-term supplier to Unilever, with the in-
amount of plastic Unilever uses in the first place. “Better plastic”           dustry’s most ambitious sustainability target setting of 100 per
is about making the products recyclable and eliminating prob-                  cent fossil free mills by 2030. While possessing industry leading
lematic materials. And, ultimately, “no plastic” is about think-               ratings in CDP and Ecovadis as well as SBTi targets, Metsä Board
ing differently – using alternative materials such as board, pa-               has set sustainability leadership as a strategic target, clearly shar-
per, aluminium and glass where possible and removing plastic                   ing Unilever’s goals to be among the most responsible global ac-
where it is not necessary.                                                     tors in mitigating climate change.
  “Plastic is still a valuable material for us, and it will be used              Lindström assesses that Metsä Board’s sustainability drive
where appropriate. Having said that, we are exploring the use of               matches Unilever’s mindset very well.
alternate materials in some categories like refreshments, while en-              “For example we’ve had great success with Metsä Board with
suring affordability of packaging in each market,” Lindström says.             the packaging of the Vegetarian Butcher brand. Using new coat-
                                                                               ing technology, the packaging has been made more sustaina-
Shared mindset, common goals                                                   ble,” she says.
While Unilever is tackling these packaging materials challenges,
it is not doing it all alone. Unilever relies on its wide network of           Butcher boost
suppliers to be sustainable also and to pursue low carbon prac-                The material used in the Vegetarian Butcher is MetsäBoard Prime
tices. After all, making the circular economy a reality requires               FBB EB, a fibre-based eco-barrier alternative to replace plastic/
massive global cooperation.                                                    fossil-based materials in many end uses. In essence, it’s a bar-
   “We expect our suppliers to drive towards a similar aspira-                 rier board that can be collected and recycled in standard paper
tion to Unilever in the journey towards the circular economy,                  and paperboard waste streams and is also home compostable.
both in fibre- and plastic-based packaging materials,” confirms                  “Similarly, in Knorr bouillon cube packaging, great steps have been
Lindström.                                                                     taken to make the packaging more sustainable,” Lindström says. •
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
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Sustainable solutions

                                                                                                         Ari Kiviranta
                                                                                                         SVP of Development
                                                                                                         at Metsä Board

“We are an innovation partner”
Minimising the environmental impact of operations is an integral part of Metsä Board’s
way of working. Ari Kiviranta, Metsä Board’s Senior Vice President of Development,
explains how this is reflected in practice.

         W H AT I S T H E R O L E O F                 H O W D O YO U S E E                     W H AT A R E T H E K E Y A C T I O N S
           C O L L A B O R AT I O N                 THE POSSIBILITIES OF                     I N AC H I E V I N G M ETSÄ BOA R D’S
       I N YO U R D E V E L O P M E N T             REDUCING THE USE OF                       AMBITIOUS 2030 FOSSIL FREE
                  WO R K?                                  PL ASTI C ?                                  M I L L S TA R G E T ?

   “In partnership with other Metsä       “The amount of plastic used can be reduced by      “We have a clear roadmap and
   Group companies, we can develop        using materials sensibly and avoiding exces-       investment plans for how to get
   new innovative bio-based mate-         sive packaging. Although plastic can already       there. An important part of the
   rials providing alternatives to        be replaced with paperboard, there are a lot of    plan is the renewal of the Husum
   plastics in various end uses. A        products where this is more challenging. The       pulp mill in Sweden.
   good example of the longer-term        main challenge lies in plastic’s barrier prop-       Our target for fossil free mills
   development work are the 3D            erties – for example, its resistance to mois-      by 2030 includes both emissions
   fibre products being developed by      ture – because these need to be added to the       from the company’s own energy
   Metsä Group’s innovation company,      paperboard separately. However, fibre-based        production and emissions from
   Metsä Spring. The aim is to develop    products with good barrier solutions can be        purchased energy. Currently, 82
   a competitive and environmentally      used to replace plastic in an environmentally      per cent of the energy used by our
   friendly new packaging solution in     friendly manner for an increasing number of        mills is generated from fossil free
   a pilot plant that is ready to start   purposes.                                          sources.
   its operations in late 2021. You can     We have been piloting barrier solutions            The development programme
   read more about this on page 4.        for a long time. As a result, we have a light-     launched at our Kemi paperboard
     Our strengths include proactive      weight bio-degradable eco-barrier paper-           mill is also a significant step
   collaboration with machine equip-      board, MetsäBoard Prime FBB EB, which can          towards our sustainability targets
   ment manufacturers and chemical        be recycled along with paper or paperboard.        for 2030. It will reduce the mill’s
   manufacturers. We strive to be our     MetsäBoard Prime FBB EB provides medi-             water consumption rate per tonne
   suppliers’ innovation partner, with    um-strength protection against moisture and        of paperboard produced by around
   whom they can develop and trial        grease, making it particularly suitable for food   40 per cent, and energy consump-
   new solutions.                         and food service packaging.                        tion by around five per cent.”
     We are happy to involve our            We will continue our barrier board develop-
   customers in longer-term devel-        ment in several areas.”
   opment projects at an early stage,
   for example, in the development of
   new packaging materials.”
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
12                                                              13

                                                                               EUR   1.6 billion
      Investing in a                                                                                               M
                                                                                   investment value                          etsä Group is to build a new state-of-the-art bio-
                                                                                                                             product mill in Kemi in Northern Finland, to be
                                                                                                                             completed in 2023.

    sustainable future                                                                 1.5                           The Kemi bioproduct mill will produce some 1.5 mil-
                                                                                                                   lion tonnes of softwood and hardwood pulp per year, as
                                                                                                                   well as many other bioproducts. A significant proportion
                                                                                million tonnes                     of the pulp is processed into high-quality white-top kraft-
                                                                                                                   liner at Metsä Board’s mill at the integrated site.
 Metsä Group’s new bioproduct mill in Kemi is the largest investment                 of pulp / year

ever made by the Finnish forest industry in Finland. In this connection,                                           Steps towards 100 per cent fossil free mills

                                                                                  250%
                                                                                                                   The investment will play a significant role in Metsä Group’s
Metsä Board has decided to invest in increasing the capacity of its Kemi                                           journey to fossil free production.
      white-top kraftliner mill to continue sustainable growth.                                                      The new mill is based on Metsä’s unique bioprod-
                                                                               electricity self-sufficiency        uct mill concept, the core of which is the resource-wise use
                   Metsä Board & Charlie Bass / TenFour, photos: Metsä Group
                                                                                                                   of the wood raw material and production side streams. In

                                                                                       0%
                                                                                                                   the concept, the renewable wood raw material and pro-
                                                                                                                   duction side streams are used in full as different bioprod-
                                                                                                                   ucts, replacing fossil-based materials and fossil fuels. The
                                                                                                                   first completely new mill using the concept is the Ääne-
                                                                                       fossil fuels
                                                                                                                   koski bioproduct mill, which was started in 2017.
                                                                                                                     The planning of the bioproduct mill is based on a high
                                                                                                                   degree of environmental, material and energy efficiency.
                                                                                                                   Despite the significantly increased production compared
                                                                                                                   with the current Kemi pulp mill, the new bioproduct mill
                                                                                                                   will stay below the emission limits of the existing mill’s
                                                                                                                   current environmental permit.
                                                                                                                     The bioproduct mill will not use any fossil fuels.

                                                                                                                   Increasing capacity with lower
                                                                                                                   environmental impacts
                                                                                                                   Together with Metsä Board’s white-top kraftliner mill,
                                                                                                                   Metsä Group’s new bioproduct mill will form a world-
                                                                                                                   class integrated mill site in Kemi. The site offers a highly
                                                                                                                   efficient and sustainable platform for expanding produc-
                                                                                                                   tion of white-top kraftliners to meet the growing demand.
                                                                                                                     Metsä Board’s development programme will increase
                                                                                                                   Kemi mill’s annual white-top kraftliner capacity by ap-
                                                                                                                   proximately 40,000 tonnes. It will include a series of mod-
                                                                                                                   ernisation and bottleneck investments in the board pro-
                                                                                                                   duction line.
                                                                                                                     The development programme, worth EUR 67 million, is a
                                                                                                                   significant step towards Metsä Board’s 2030 sustainability
                                                                                                                   targets. It will reduce the Kemi white kraftliner mill’s water
                                                                                                                   consumption by about 40 per cent and energy consump-
                                                                                                                   tion by about 5 per cent per tonne of kraftliner produced.
                                                                                                                     “This will also support customers’ sustainable business.
                                                                                                                   We will offer our customers more capacity with a low-
                                                                                                                   er environmental impact and high resource efficiency,”
                                                                                                                   says Veijo Korkalainen, VP Sales, White Kraftliners at
                                                                                                                   Metsä Board.
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
14                                                                                                    15

                 Veijo Korkalainen                                                                                                                                                                                Pertti Kaasalainen
                 VP Sales, White Kraftliners                                                                                                                                                                      Former Technical Customer
                 at Metsä Board                                                                                                                                                                                   Service Manager at Metsä Board

                                                                                                                                       A revolution that began
Strengthening global leadership
Sustainable and high-quality corrugated packaging will
play an ever-greater role in the growing market for re-
tail-ready, consumer and e-commerce packaging.
  “The demand for premium white kraftliners is driven
                                                                                                                                       at the Kemi mill
by the growing needs of retail and brand promotion ac-
tivities in e-commerce,” says Korkalainen.                                                                                             Ever wondered what the secret is behind the bold, bright and beautiful designs on
  Corrugated converters and printers worldwide recog-                                                                                  the box for the new TV or laptop you’ve just bought, or the eye-catching vegetable
nise Kemi’s white-top kraftliners for their quality and con-                                                                           boxes and store displays at your local supermarket? The answer is coated white-top
sistency. Kraftliner production started at Kemi 50 years                                                                               kraftliner, a material that changed the corrugated packaging market for good after
ago, in 1971. In 1990, the company upgraded its process-                                                                               its introduction in the early 90s.
ing and invested in a coating unit, with production of coat-
ed white-top kraftliner starting the same year.
  “We’ve had a clear development focus in our products –
a focus on premium quality and specialising in the most                                                                                When they were first introduced, it’s no exaggera-
demanding products. This is also visible today in the un-                                                                              tion to say that coated white-top kraftliners sparked
compromising quality culture at our mills,” Korkalain-                                                                                 a revolution in the world of corrugated paperboard
en concludes.                                                                                                                          and packaging. While its main job has always been
  Today, Metsä Board is Europe’s leading producer of                                                                                   to protect what’s inside, modern packaging plays
white kraftliners and the world leader in coated white                                                                                 another equally important role – showcasing a
kraftliners. This investment will be built on for the next                                                                             brand’s image and acting as an eye-catching sales
50 successful years of the Kemi mill. •                                                                                                tool. And this is where coated liners really come
                                                                                                                                       into their own.
                                                                                                                                         “Back in the 70s, corrugated board was basically
                                                                                                                                       used to make big brown boxes to transport things
                                                                                                                                       in, because they were robust and sturdy,” says Pertti
                                                                                                                                       Kaasalainen, former Technical Customer Service
                                                                                                                                       Manager at Metsä Board.
                                                                                                                                         Kaasalainen, or “Mr Corrugated” as he was known       – more steam, more heat, more glue – but with
                                                                                                                                       to his clients, saw first-hand how visual appeal be-    coated liners, the opposite is what’s needed,” says
             G O O D N E WS O N                                L O N G S TA N D I N G                      MUCH-NEEDED
                                                                                                                                       came as important as robustness in the packaging        Kaasalainen.
              MANY LEVELS                                       C O O P E R AT I O N                     E X T R A C A PA C I T Y      world.                                                    The introduction of coated liners heralded a
                                                                                                                                         “More and more brand owners started to look for       change in the industry’s philosophy.
     Adara Pakkaus Oy is a Finnish                 CartonajesL OSantorromán
                                                                 N G S TA N D I Nis
                                                                                  G a fami-       Atlantic Packaging Products          materials that would allow them to create glossy,         “The liner produced at Kemi was the first of
                                                              C O O P E R AT I O N
     company that manufactures cor-                ly-owned company with a long history           provides sustainable packaging       attractive designs with excellent printing results,     its kind on the market. In my opinion, it was the
     rugated cardboard and packaging               of 110 years and longstanding cooper-          solutions and co-packing ser-        which is exactly what coated kraftliner delivers.”      start of a worldwide revolution in corrugating,”
     made of corrugated board. Jere                ation with the Kemi mill. CEO Leopoldo         vices. The company designs, man-       Consumer appeal was the main driving force be-        Kaasalainen says.
     Alaruka, Financial Director at                Santorromán sees Kemi’s investment as          ufactures and delivers innovative
     Adara Pakkaus OY, welcomes the                important to supporting productivity and       corrugated packaging products to
                                                                                                                                       hind the adoption of coated kraftliners, but they         “With these liners, moving from a hotter to a
     news.                                         availability.                                  customers across North America.      also brought another change to the market – no-         colder setup means producers get the best results
       “The news is not only good for                “In the next fifty years, paperboard will      Michele Galway, Operations         table opportunities for saving heat and energy in       from the materials they’re running and improve
     us as a customer, but this is also            be the main packaging material, as it          Manager at the Pre-print Division    the corrugating process. Coated liners can be run       their energy efficiency at the same time. It’s a true
     very positive for the Finnish forest          has been to date. I’m sure that Metsä will     of Atlantic, sees the investment
                                                                                                                                       cooler and minimise preheating. This “less is more”     win-win,” he concludes.
     owners and the national economy               continue to be there, sharing that future,     news as very positive for the
     in general,” says Alaruka.                    given its innovation, quality and service, a   industry.                            philosophy plays a crucial role in reaping the bene-      Ongoing investments in the Kemi mill will even-
                                                   sign of its ability to adapt to the normal        “Exciting news! Much-needed       fits of coated liners, and it represented new think-    tually help it to achieve completely fossil free op-
                                                   evolution of industry and society,” says       extra capacity! We look forward to   ing at the time. It still does.                         erations and energy self-sufficiency, setting a new
                                                   Santorromán.                                   our continued partnership.”
                                                                                                                                         “There’s always a tendency when things don’t          benchmark in the industry and driving further im-
                                                                                                                                       go right to add more rather than take things away       provements in sustainability. •
CIRCULAR - Materials at the heart of circularity Next normal of packaging A revolution that began at the Kemi mill - Metsä Board
16   17

Theme

Everything
Must Flow
The circular economy is driven by major international
brands as well as climate-conscious citizens – but what
does this mean for the future of packaging?
Sami Anteroinen, 3D images: Futupack

T
          he circular economy is quickly becoming the fo-
          cal point of sustainability. With limited planetary
          resources, we have to be mindful of the products
we produce and the way we produce them.
   Recognizing the need for change, the European Com-
mission adopted a new Circular Economy Action Plan in
2020 to serve as one of the main blocks of the EU’s Green
Deal agenda.
   The new Action Plan features initiatives along the entire
life cycle of products, promoting circular economy pro-
cesses, fostering sustainable consumption, and ensuring
that the resources used are kept in the EU economy for as
long as possible.
   In fact, the new Circular Economy Action Plan wants to
make sustainable products the norm in the EU as well as
cut down on waste. Under the Action Plan, the EU is fo-
cusing on the sectors that use most resources and where
the potential for circularity is high, such as electronics, bat-
teries, packaging and plastics.

Finally in the same boat
Maria Coronado Robles, Sustainability Insights Manager
at Euromonitor, argues that the circular economy has been
a central piece of the sustainability debate for some time –
but what is happening now is that we are forging the link
between circular economy and other global issues such as
climate change and pollution.
18                                                                                19

Theme                                                                                                                                                                                                                     Theme

             When it comes to recycling, paper and
             board packaging is outstanding, with
             a recycling rate of 83 per cent in Europe.
             Source: Eurostat
                                                                                                                                                                          “While some of these innovations provide opportu-
                                                                                                                                                                        nities to build loops, there is still a long road ahead to
                                                                                                                                                                        achieve a circular economy for packaging,” she says.
  “For the first time in history, the three biggest and      Development at Metsä Board, comments that both                                                               That’s not to say that good things aren’t happening
most polluting economies, the USA, China and the             the high recycling rate and the biodegradability of                                                        all over. Under the watchful eye of consumers, busi-
European Union are rowing in the same direction,             paperboard packaging significantly reduce the lit-                                                         nesses have come up with a combination of solu-
pledging to achieve carbon neutrality,” Coronado Ro-         tering problem.                                                                                            tions, from launching reusable packaging to chang-
bles says.                                                     However, compared to the product inside, the total                                                       ing packaging design and investing in new recycling
  Still, while energy efficiency, electric vehicles and      climate effect of the package is actually very small.                                                      technologies expected to be more effective at captur-
renewable energy are key pillars of the unified cli-           “It is important to understand the entire value                                                          ing the value of packaging waste.
mate strategy, the “elephant in the room” continues          chain of the product to optimise materials, design,                                                          Coronado Robles calls this a good start but points
to be excessive consumption that fuels unsustaina-           production, transport and reuse or recycling in or-                                                        out that if the world is to achieve circularity, we need
ble growth.                                                  der to protect both the content, the people and the                                                        to change the whole system, turning the tide from
  “That problem needs to be looked at through the            environment,” says Leskelä.                                                                                volume consumption to value creation – and, ulti-
lenses of circularity.”                                        According to Leskelä, the recycling, reuse and re-                                                       mately, deleting the word “waste” from our vocab-
                                                             duction of packaging will enable material savings                                                          ulary altogether.
Still early in the game                                      and innovation that will drive new resource-saving                                                           “Furthermore, we need to incentivise circular con-
According to Coronado Robles, moving from a lin-             production technologies.                                                                                   sumption and production, start designing long-last-
ear to a circular world is not only a way to decou-            “One example of this is the further lightweighting                                                       ing repairable products, building circular supply
ple economic growth from the use of resources and            of paperboards that we do at Metsä Board as well as                                                        chains and creating markets for secondary materials.”
avoid unnecessary waste but is also a powerful tool          circulating water and fibres effectively in the pro-
to bring emissions down and fight climate change.            duction processes,” says Leskelä, who expects to see                                                       Respect the material!
She acknowledges, however, that we are still very ear-       growth in fibre-based packaging both in recycled and                                                       Iiro Numminen, Structural Packaging Designer at
ly in the journey, with most of the talk and action fo-      fresh fibre material packaging.                                                                            Metsä Board, is equally passionate about the circu-
cusing on plastics and packaging.                              “This way, the sustainably managed circular loops                                                        lar economy. In his mind, it is crucial to respect the
  “This is just the tip of the iceberg. The circular econ-   will enable the overall growth.”                                                                           raw material by using it as little as necessary. Num-
omy opens opportunities across all industries.”                                                                                                                         minen points out that even a small modification to
  Coronado Robles sees the circular economy as a             Reinventing packaging                                                                                      package design can make a big difference when you
great framework to re-configure businesses to sync           The role of the packaging industry in seeking sus-                                                         are in a volume business.
with nature and to allow planetary healing.                  tainability is certainly significant. For example, the                                                       “When you understand and master your material,
  “That’s the way forward for a sustainable and resilient    Ellen MacArthur Foundation estimates that replac-                                                          you’re able to use it economically. This is the ethos of
recovery. There is a huge potential for nature-based         ing a fifth of plastic packaging with reusable/refilla-                                                    the designers in the packaging industry in the 2020s
solutions in the circular economy,” she believes.            ble options could open – at the very least – a USD 10                                                      and beyond,” he believes.
                                                             billion opportunity.                                                                                         According to Numminen, big brands have indeed
Understand the entire value chain                              Maria Coronado Robles assesses that the packag-                                                          taken notice of the changing times and are setting
When it comes to recycling, paper and board pack-            ing industry is under “huge global scrutiny” and, in                                                       up programs to optimise their packaging processes
aging is outstanding, with a recycling rate of 83 per        response, companies are heavily investing in inno-                                                         in a sustainable way. There are also some low hang-
cent in Europe. Markku Leskelä, VP, Research &               vation to rethink their packaging.                                                                         ing fruit left in the field, such as unnecessary plastic

                  Maria Coronado Robles                                   Markku Leskelä                               Iiro Numminen                        Maria Smolander
                  Sustainability Insights                                 VP, Research & Development                   Structural Packaging Designer        Research Team Leader
                  Manager at Euromonitor                                  at Metsä Board                               at Metsä Board                       at VTT Technical Research Centre of Finland
20                                                 21

                                                                                                                                                                    Theme

                                                       windows in paperboard packages sold online.                  lands to be leading the pack – but a country of mil-
                                                         “If the customer is purchasing the item online,            lions will never be the same type of gamechanger as
                                                       what’s the point in a plastic window?” he asks.              a country of billions. Ultimately, economies like Chi-
                                                         Numminen knows that there are innovations –                na and India hold the key to unlocking opportuni-
                                                       such as bottles made out of paper – coming down              ties on a large scale.
                                                       the industry pipeline. “Material development re-
                                                       quires constant work and we have to be mindful of            Courage to trust
                                                       the package lifespan at all times,” he says, adding that     Iiro Numminen believes that as the big economies
                                                       Metsä Board utilises a hi-tech simulation tool to ex-        are learning the new, more sustainable ropes, and
                                                       plore those green alternatives out there.                    corporations are adjusting their mindset, consum-
                                                         “Via simulation, we’re able to optimize material con-      ers also need to finetune their attitudes. For example,
                                                       sumption. With design and material development, it           during your supermarket visit, it’s ok to open an egg
                                                       is possible to cut down on the use of plastics,” he says.    carton to check if the eggs are undamaged. Couldn’t
                                                         “For instance, we can use the simulation to deter-         we do this when buying, say, cherry tomatoes?
                                                       mine how the package holds up structurally with or             “As an industry, we need to increase people’s trust
                                                       without a plastic window.”                                   that they’re getting their goods in prime condition –
                                                                                                                    and then we need to live up to that promise.”
                                                       Local + digital + sustainable                                  Asking citizen-consumers to demonstrate courage
                                                       In the final analysis, Maria Coronado Robles sees that       in this manner may seem unusual, but then again,
                                                       there are three powerful drivers for circular innova-        every revolution needs its revolutionaries. •
                                                       tion, related to local, digital and sustainability angles.
SMART CODES AND TAGS                                     “First of all, circular models benefit from local sup-
TO SUPPORT RECYCLING
                                                       ply chains. Proximity allows local synergies and po-
                                                       tential partnerships and enables the creation of re-                   “If the customer is
Whatever the goal behind increasing recycling,
it typically relies on consumer awareness.             verse logistics,” she says.                                            purchasing the item
   “A QR code on a package could easily guide            “Second, digital technologies offer the tools to map
smartphone users to their local recycling              out product journeys and capitalise on the residual
                                                                                                                              online, what’s the
instructions. Further, a smart solution iden-
tifying packages and recycling containers
                                                       value of those products.”                                              point in a plastic
could be used to encourage and maybe even                And third, there’s of course sustainability – that’s to              window?”
reward consumers who recycle,” says Maria              say sustainability infused with a new kind of mean-
Smolander, Research Team Leader at VTT                 ing and determination. The purpose has become “the                     Iiro Numminen, Metsä Board
Technical Research Centre of Finland.
                                                       Rosetta stone of sustainability,” argues Coronado Ro-
   A conventional, passive QR code may be
enough to guide recycling, but Smolander has           bles. This means that, for a long time, we watched
high hopes for active QR codes as well. When           companies slightly stretch their inflexible business
printed with active inks, codes can change             models to make some room for sustainability – ba-
along with temperatures and help brand
                                                       sically, very limited action for very limited gain.
owners and retailers control transportation
conditions, whereas consumers can identify
                                                         “What we didn’t know before is that business plas-
the perfect temperature for consumption of             ticity has no limits if the willingness is there. This
the product.                                           willingness is what we now call ‘purpose’ and it has
   Besides QR codes, Smolander and her                 become the new way of running companies in the
colleagues develop flexible electronics, such
                                                       future.”
as RFID and NFC tags even on fibre-based
substrates. Feasible end-of-life-strategies are          When it comes to countries embracing the circu-
also currently under investigation.                    lar economy, Coronado Robles perceives the Nether-
22                                         23

Environment

                          Together with forest owners, Metsä Group
                         plants more than 30 million trees in Finnish
                             forests every year. This is one way of

               NORDIC
                         ensuring that Finnish forests remain forests.
                              Heidi Hammarsten, photos: Sanna Lehto & Lina Jelanski / Duotone

                          Finland has a long pedigree in forest management, beginning in

              FORESTS
                          1886 with a law regulating forest use that prohibited deforesta-
                          tion. Forests remain forests, because the Forest Act stipulates that
                          new forests must always be established after regeneration felling.
                            “We safeguard forests because of our cultural heritage and the
                          environmental, recreational and economic value of forests,” says
                          Vesa Junnikkala, Sustainability Director at Metsä Group’s Wood
                          Supply and Forest Services.

                ARE
                            In Finland, one of the world’s most heavily forested countries,
                          almost 60 per cent of the forest is owned by private citizens.
                          Everyman’s rights give everyone in Finland the freedom to en-
                          joy forests for recreation, regardless of who owns them.

                          Increasing number and growth of trees in Finland

              THRIVING
                          “In the northern coniferous forest zone of the Nordic countries,
                          there is good forest management and wood production, and the
                          vitality of the forests and carbon sequestration are also positive,”
                          says Research Professor Jari Hynynen from Natural Resources
                          Institute Finland. He cites some key figures to support this claim.
                            “The volume and increment of growing stock in Finnish for-
                          ests have been increasing since the 1970s, with annual growth
                          now close to 110 million cubic metres. Fifty years ago, it was less
                          than 60 million cubic metres, even though felling volumes have
                          also been increasing since then.”
                            Most Finnish forests are dominated by coniferous tree species.
                          In order to ensure the resilience of forests in a changing climate,
                          we should increase the amount of mixed forests with more than
                          one tree species growing in them. According to Hynynen, for-
                          ests with only one tree species are more vulnerable to storm and
                          insect damage, for example.
                            Mixed cultivation increases forest biodiversity and improves
                          the resilience of forests. Metsä Group offers forest owners a re-
                          generation service of mixed cultivation of spruce and pine. In
                          addition, deciduous trees such as birch spread to regeneration
                          areas naturally.
24                                                                                                     25

                                                                                                                                                                                                                   Environment

                     Janne Kurtti

                                                                                                                                                                                                       84%
                     Forest Owner

A FO REST OW N E R I N A
C H A I N O F G E N E R AT I O N S
                                                                               75%
                                                                              Forests cover about
                                                                                                          108 Mm
                                                                                                           In 2019, the annual growth of
                                                                                                                                           3
                                                                                                                                                               13%
                                                                                                                                                           Some 13 per cent of                    In Metsä Group’s fellings,
                                                                          75 per cent of Finland’s land   Finnish forests was 108 million                 Finland’s forest area is               84 per cent of forest owners
Janne Kurtti and his sister own a                                        area. This accounts for about       cubic metres. The logging                   protected or in restricted              choose to leave biodiversity
400-hectare forest in Taivalkoski,                                          10 per cent of Europe’s          outturn in 2019 totalled 73
Northern Finland. Their parents had                                              forested area.                 million cubic metres.
gradually acquired this forest over
the years. Kurtti is trained in forest                                                                               Sources: Ministry of Agriculture and Forestry, Metsä Group
management, and so he does for-
estry work as a sideline.
  “We follow fairly traditional good
forest management practices. We
plant seedlings at some point after
regeneration felling has been carried
out. We leave buffer zones around
                                                 PEFC certification
water in fellings, as well as protec-         covers about 85 per cent
tive thickets for birds and animals
during all forest operations,” Kurtti           of Finland’s forests.
says.
  “We gain a modest yet steady
income stream from the forest,”
Kurtti adds. “My sister and I want to
                                                                                                          Helping forests serve as carbon sinks                              diversity of forests. It is important for living or-
take care of the forest for the next
generation as well. For me, environ-
                                                                                                          Responsibly managed, vibrant forests sequester                     ganisms that there is living and dead wood of
mental protection and economic                                                                            carbon from the atmosphere and act as a car-                       different ages in the forest. Birds, fungi, lichen
forest management go hand in                                                                              bon sink. As a leading forest industry company,                    and insects are examples of organisms that rely
hand.”                                                                                                    Metsä Group has set the most ambitious 2030                        on decaying wood.
                                                                                                          sustainability targets in the industry, which                        “Metsä Group has been actively developing
                                                                                                          include increasing the amount of carbon se-                        solutions to support forest biodiversity. For ex-
D E F O R E S TAT I O N N O T A                                                                           questered in forests by 30 per cent compared                       ample, the amount of decaying wood in Finnish
PROBLEM IN FINLAND
                                                                                                          to 2018 levels.                                                    forests needs to be increased. Metsä Group has
According to a report from the Food                                                                         “This can primarily be achieved through                          been leaving high biodiversity stumps in felled
and Agriculture Organization, over                                                                        high-quality forest regeneration and improved                      areas since 2016, and the number of high bio-
the last thirty years, the planet’s
                                                                                                          management of young forests. As a young for-                       diversity stumps per hectare has recently dou-
forested area has shrunk by around
180 million hectares. The problem is                                                                      est is thinned, the remaining trees grow better                    bled,” says Vesa Junnikkala.
especially acute in tropical rainfor-                                                                     and stouter,” Junnikkala explains.                                   The biodiversity stumps provide the forest
ests.                                                                                                       It currently takes about 15 years for a regen-                   with standing deciduous wood that is impor-
  However, the amount of forested
                                                                                                          eration-felled forest stand to become a carbon                     tant for many forest species.
land has remained stable in Finland,
and deforestation is not a problem.
                                                                                                          sink, but this can be accelerated by good for-                       The certification level of Finnish forests is
On the contrary, forest reserves in                                                                       est regeneration and using bred reforestation                      high. Two forest use certification systems are
Finland are growing.                                                                                      material, which grows 20 to 30 per cent faster                     used in Finland: PEFC (Programme for the
  “A key reason for this is that                                                                          than seeds gathered from forests. Forest own-                      Endorsement of Forest Certification) and FSC
forests have an economic value. In
                                                                                                          ers and Metsä Group plant more than 30 mil-                        (Forest Stewardship Council). PEFC certifica-
many countries, competing forms of
land use contribute to deforestation,                                                                     lion seedlings every year.                                         tion covers about 85 per cent of Finland’s for-
but in Finland, forest owners strive                                                                                                                                         ests, and FSC certification less than 10 per cent.
to manage their forests well,” says                                                                       Forest biodiversity high on the agenda                               Sustainable forest management is important
Vesa Junnikkala.
                                                                                                          In addition to carbon sequestration, another                       to Metsä Board’s customers, and forest certifi-
                                                                                                          key environmental goal is to increase the bio-                     cates enable them to ensure this. •

                                                                                                                             Vesa Junnikkala                                                    Jari Hynynen
                                                                                                                             Sustainability Director                                            Research Professor at Natural
                                                                                                                             at Metsä Forest                                                    Resources Institute Finland
26                                                                                                                                27

Services                                                                                                                                     Texts: Miia Esa                  O U R C O - C R E AT I O N W O R K S H O P C O N C E P T S
                                                                                                                                    Photos: Seppo Samuli &
                                                                                                                                            Hanne Manelius

Make more informed
decisions                                                                                                                                                      PERFORMANCE CLINIC                CHALLENGE US                         E X PLO RE TH E F UTU RE

Metsä Board’s services help customers improve their packaging
performance and reduce the environmental impact of packaging.                                                                                                                A platform for innovation
                                                                                                                                                                             Metsä Board’s Excellence Centre brings customers and designers
Global megatrends set increasing safety, sustainability and per-              Sustainability, product safety and forest certifications are also                              together to innovate and create new packaging and materials. The
formance requirements for packaging. Metsä Board responds to                topics that often require special knowledge. Sustainability ser-                                 performance of the packaging throughout its life cycle can be studied.
the constantly evolving needs with an enhanced service offering             vices are currently experiencing high demand.
that complements the extensive paperboard offering.                           “Brand owners and converters need considerably more infor-
  The services are not just add-ons, but rather initiatives for a           mation and data than before. They need it for their packaging                                    The demand for sustainable packaging, combined with increased consumption, is
closer collaboration to increase customers’ competitiveness.                development, target setting, reporting and communicating with                                    creating a pressing need for more innovation. The packaging solutions of the fu-
  “Our services help us proactively respond to customer chal-               consumers.”                                                                                      ture are being developed at Metsä Board’s Excellence Centre in Äänekoski, Central
lenges and their perpetual need for improvement. While our                    “For example, we can support our customers’ sustainability                                     Finland, which brings together expertise and technology related to packaging de-
high-quality, lightweight paperboards will always be the core of            targets for mitigating climate change. We can provide in-depth                                   sign and product development, as well as paperboard and packaging performance.
the solution, our expertise can also provide great value,” says Sari        calculations and assistance in selecting paperboard materials                                      “The Excellence Centre is our way of contributing to global packaging inno-
Pajari-Sederholm, SVP of Sales and Marketing at Metsä Board.                that reduce the overall carbon footprint of their packaging – or                                 vation. At the same time, it’s a channel that provides a concrete way for our cus-
  Metsä Board has extensive expertise in the paperboard optimi-             even suggest an improved design for the packaging to optimise                                    tomers to make effective use of our expert services,” says Sari Pajari-Sederholm,
sation of different types of converting processes. Technical ex-            material use.” •                                                                                 SVP of Sales and Marketing at Metsä Board.
pertise can help customers improve their productivity and use                                                                                                                  Workshops are a central part of the centre’s activities, where Metsä Board’s ex-
the most suitable board for their requirements.                                                   OT P   RINT MO
                                                                                                                                                                             perts work with customers to seek concrete solutions to various challenges. These
                                                                                             N FO                D   ELL
                                                                                    R   BO                                 IN
                                                                                                                                G
                                                                                                                                                                             challenges include developing new packaging or functionalities, creating the pack-
                                                                                 CA
                                                                                                                                                                             aging materials of the future, and improving the performance of paperboard or
                                                                                             UPSTREAM                                                                         packaging by minimising waste, for example.
                                                                                                                                                                                   Virtual workshops enable collaborative development, even when working
                                                                                      Forestry, production
M AT E R I A L L I F E - CYC L E A N A LY S E S                                   of raw materials and fuels,                                                                       together face to face is impossible.
                                                                                   generation of electricity                                                                             According to Pajari-Sederholm, the Excellence Centre enables exten-
A material Life Cycle Assessment (LCA) is often
                                                                                                                                                                                          sive collaboration between customers and partners like material and
used to evaluate the overall environmental
impacts of a product during its life cycle. The                                                                                                                                              technology suppliers and universities.
LCAs are based on prevailing ISO standards and                                                                                                                                                    “We can achieve better innovations when we look at things
                                                                                                   CORE
up-to-date and relevant environmental infor-                                                                                                                                                        together from many different perspectives.” •
mation from production processes, as well as on                                        Transport of raw materials
environmental impact datasets.                                                     to the mills, production processes
  The weight of the packaging and energy used                                       (pulp & paperboard) and related
in the material production process have major                                      fuel combustion, as well as treat-
impacts on a material’s carbon footprint.                                               ment of generated waste                                                                                                                                  Sari Pajari-Sederholm
  At its best, the carbon footprint of packaging                                                                                                                                                                                                 SVP of Sales and Marketing
made from Metsä Board’s fresh fibre paper-                                                                                                                                                                                                       at Metsä Board
board can be more than 50 per cent less than
packaging of an equivalent stiffness made from                                                      D OW N STRE A M

recycled fibre or solid bleached board.                                                         Product transport to the
                                                                                                customer (optional) and
                                                                                                 end-of-life (optional)
28                                                                                             29

Next normal packaging
                                                                                                                                                   Oskar Lingqvist
                                                                                                                                                   Senior Partner
                                                                                                                                                   at McKinsey

                     New normal now
                    seen in packaging
                   E-commerce sets the bar, but all packages must have a credible
                   sustainability narrative and be designed with hygiene in mind.
                                                 Markku Rimpiläinen, illustration: Dan Matutina

I
   n May 2019, McKinsey published a report on the forces shap-               In addition, fresh fibre has its place in the market. “Fresh fibre
   ing the global packaging industry. The survey found five sig-           solutions must have a perfect sustainability narrative based on re-
   nificant trends: e-commerce, changing consumer preferenc-               forestation and fossil free production. If producers can convince
es, retail margin compression, sustainability, and digitalisation.         the world that fresh fibre is also a good choice sustainability-wise,
  “All of these are still valid, but since COVID-19, their order of        there is interesting room for fresh fibre-based packaging.”
priority has changed,” says Oskar Lingqvist, Senior Partner in
McKinsey’s Stockholm office.                                               E-commerce opens up new possibilities
  “As expected, e-commerce and sustainability have grown to                Growing e-commerce is an attractive playing field for convert-
be even more important. Besides these five trends, a sixth ma-             ers and newcomers.
jor trend emerged: health concerns and the importance of hy-                 “We have never seen an e-commerce category decline. Once
giene. All of a sudden, we saw old habits returning – fruit being          it starts, it is just a question of how quickly it takes off. This
wrapped in plastic because we needed better protection.”                   could mean that you trade off between the better profitabili-
  Based on recent developments, Lingqvist and his associates wrote         ty of the old set-up with something that looks a little bit du-
a new report called Beyond COVID-19: The next normal for packag-           bious. But if you win in the new segment, that is an excellent
ing design. This report stresses that the packaging industry must          position later on.”
address three major requirements: a good sustainability narrative,           To succeed, one has to make the right strategic choices.
design with hygiene in mind, and design for e-commerce.                      “Some large and mid-scale packaging players say their strat-
                                                                           egy is to go for growth. They need improvements in efficiency
Ready for e-commerce                                                       and an excellent value chain to make money. For some compa-
E-commerce affects all types of packaging.                                 nies, focusing on premium niche products like the packaging of
  “The industry must produce packages that travel in one piece             frozen foods delivered in e-commerce would be a good choice.”
to end consumers. Primary and secondary packaging could al-
most disappear,” says Lingqvist.                                           Systemic change is coming
  The importance of sustainability is also growing.                        Significant challenges in the packaging industry may require a
  “In the years before COVID-19, the requirements for sustain-             systemic change that re-arranges existing value chains.
ability relaxed. Now, the importance of sustainability is return-            “Relevant value chain collaboration is necessary. This is not go-
ing. We even have indications that consumers are willing to pay            ing to happen if retailers and packaging companies are on the
more for sustainable packaging,” says Lingqvist.                           other side of the fence,” says Lingqvist.
                                                                             In the coming years, converters must navigate within mul-
Fresh fibre has its place                                                  tiple challenges while balancing performance and cost-effec-
From a recycling point of view, some old concepts must be aban-            tiveness.
                                                                                                                                                                          M C K I N S E Y & C O M PA N Y
doned. “The thing you want to avoid is the use of multiple mate-             “Winners will have to master more dimensions. They have to
rials. Pure paper-based packages or 100 per cent recycled plas-            be innovative in their go-to-market model. They must sell to cus-                              Founded in 1926, McKinsey & Company is an
                                                                                                                                                                          American worldwide management consulting
tic solutions are turning out to be stronger options. But it is not        tomers who are farther away from their region, and they have to                                firm. It has a branch for paper, forest products
so easy to go to mono-material solutions. For some products, it            market in different ways than they have done previously,” says                                 and packaging industries.
is a huge challenge,” says Lingqvist.                                      Lingqvist.
30                                                                            31

                                                                                                                                     Next normal packaging
                        Marc Büttgenbach
                        Chief Commercial Officer
                        at Van Genechten Packaging

               Turning sustainability
                    into reality
               Big brand owners are putting a lot of pressure on the transformation from
                 plastic to paper. The change is already visible in the market, says Marc
                 Büttgenbach, Chief Commercial Officer of Van Genechten Packaging.
                                                        Markku Rimpiläinen, illustration: Dan Matutina

     I
        n the last six months, we have had more projects than ever be-               Büttgenbach underlines the importance of close cooperation
        fore. Many packages will change. The results will be visible for           between brand owners’ converters.
        the consumers gradually during 2021,” estimates Marc Bütt-                   “With our deep material expertise, our goal is to make the
     genbach, CCO at Van Genechten Packaging.                                      lives of our customers easier. We provide them with new ideas
       According to Pro Carton’s survey “European Packaging Pref-                  in design and functionality that focus especially on their specif-
     erences 2020”, consumers are increasingly looking for sustaina-               ic market. We can provide our customers with new ideas in de-
     ble fibre-based solutions.                                                    sign and functionality, because we’re the specialist for the pack-
       Seventy per cent of consumers are actively taking steps to re-              aging solution,” Büttgenbach says.
     duce their use of plastic packaging, the survey finds. Addition-                First and foremost, converters must work on a customer-fo-
     ally, 44 per cent of respondents would be willing to spend more               cused basis.
     on a product if it was packaged using sustainable materials.                    “Our aim is to understand what our customers need to achieve
       “Customers are basically interested in using 100 per cent                   their objectives and to advise them on general market trends
     fibre-based packaging solutions – even hybrid solutions con-                  and legal developments. We help them to do the right thing. Ul-
     taining 10 per cent or 5 per cent plastic are usually not accept-             timately, we share the success when we’re selected by the con-
     ed,” Büttgenbach remarks.                                                     sumer because of the sustainable, functional, efficient, and of
       Packages made from fresh and recycled fibre complement each                 course, shelf-appealing features of the packaging reinforcing the
     other. “Fresh fibre is used when strength and resistance are need-            product.”
     ed. Fibre can be reused six or seven times, but at the end of the
     day, you need fresh fibre, because recycled fibres get shorter and
     shorter in each recycling cycle until they are no longer usable,”
     Büttgenbach says.
                                                                                      VA N G E N E C H T E N PA C K A G I N G ( V G P )
     How fast can the industry change?
                                                                                      For more than 180 years now, VGP has been an independ-
     Converters need to solve some technical challenges to meet the                   ent packaging company, with its headquarters in Turnhout,
     growing demand for sustainable packaging.                                        Belgium. Its nine folding carton sites and one extrusion site
       “The big question is how fast we can change plastic-based pack-                in seven countries generate an annual revenue of about
                                                                                      300 million euros and employ 1,600 people. The company
     ages into fibre-based ones. The fibre-based packaging must take
                                                                                      is a leading provider of packaging in fast-moving European
     over the same functionalities as plastic. It isn’t a simple task – for           consumer goods: printed folding cartons, offset laminated
     example, if we are dealing with liquids or very sensitive prod-                  corrugated board, POS displays and a wide range of other
     ucts. We have to focus on innovative contributions, and we have                  packaging solutions.
     to proceed very fast.”
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