Highlights of the site visit to Tampere

Valmet arranged a site visit for investors and analysts to Tampere on Monday, June 2, 2014. Altogether 22 investors and analysts from for example Finland, Sweden and UK participated the visit. The purpose of the visit was to get to know to the Pulp and Energy business line’s Energy business, which consists of heat and power generation and biotechnologies.

Jyrki Holmala, the President of Pulp and Energy business line welcomed the guests and gave an short introduction to Valmet and to Pulp and Energy business line. Kai Janhunen, VP, Heat and Power Generation, continued by telling about energy market, which has many growth drivers. For example, according to IEA, the global electricity consumption is expected to grow two thirds during the years 2011-2035. In addition, 45 percent of the power plant capacity in EU is over 30 years olds and needs to be reconstructed soon. The whole market size for heat and power generation is approximately EUR 2 billion and for biotechnologies EUR 1 billion. Valmet’s competitors in Energy business are a few global companies, such as Andritz and Foster Wheeler, and also smaller, local actors.

The customers of Valmet’s energy business are in addition to pulp and paper industries also other process industries, such as steel, chemical and food industries, as well as municipalities and independent power producers. The customers are currently facing many challenges, because even though the energy demand continues to grow globally and especially in the developing markets, simultaneously natural resources are getting scarcer and environmental legislation is becoming stricter. Profitability, safety and supply security, and sustainability are important factors in energy production.

Janhunen introduced also Valmet’s multifuel technologies that allow the customers to use different fuels (biomass, waste, fossil fuels or their combinations) flexible and produce heat and power environmentally healthier and more profitably.

The importance of multifuel technologies was highlighted also by Jussi Laitinen, the CEO of Tampereen Sähkölaitos, who provided a customer percpective on energy market. Laitinen mentioned, that for them it is important to be capable of using different fuels. He also highlighted the strong cooperation with the supplier.

Jussi Mäntyniemi, Director, Technology and R&D introduced Valmet’s investment in new biotechnology solutions, such as lignin separation, pyrolysis and steam explosion. The strong growth driver for new biotechnologies is substituting fossil fuels with renewable fuels. For example, EU’s target is, that by the year 2030 over 27 percent of energy is renewable energy. In addition, biotechnologies help in boosting processes and creating whole new earning models.

Ari Saario, Senior Manager, Pulp and Energy-wide R&D continued with research and development. In Valmet, R&D is concentrated both improving existing products and creating new technologies in cooperation with customers and a wide cooperative network, for example universities and research institutes. Essential in product development is creating value to the customer.

One of Valmet’s competitive advantages are the R&D Centers that accelerate the creation of new technologies and their implementation to commercial use. In the end of the visit, the group went to a tour to Tampere R&D center, which was led by R&D specialists.

We warmly thank everyone, who participated the Tampere visit. The next site visit will be arranged next autumn in Cernay, France and it gives an opportunity the get to know Valmet’s service business.