Rottneros Packaging2017-03-06 Amsterdam, RISI Conference, Kasper Skuthälla

• Customised pulp for the

market

• Global deliveries

• Production 2015: 373,300

tonnes– Rottneros Mill: Mechanical pulp, CTMP

& groundwood pulp– Vallvik Mill: Long-fibre sulphate pulp,

bleached and unbleached– Rottneros Baltic: Supply of pulp wood

• Nasdaq Stockholm since

1987

• Financially strong: debt-free

2

Vallvik MIll, Group Head OfficeRottneros Mill

SIA Rottneros Baltic

ROTTNEROS GROUP

Rottneros Packaging• Produces and develops moulded pulp

trays from virgin mechanical pulp.• Rottneros Packaging is the third

business area of the group.• Counter balancing volatility of the pulp

business.• By integrating down ward in the value

chain, we are adding value and gettingcloser to the end user.

• Driving the sustainable vision ofRottneros of replacing plastic materials in the market.

• Current operations are based in Rottneros with 2 moulded pulp lines.

Finite resources

Plastic is a huge problem!

UN Sustainability goals

Brand owners look for sustainable solutions

Moulded pulp packaging

Classical moulded pulp

• Raw material; recycled paper• Applications; egg cartons, dairy packaging, protective packaging• Raw surface. Poor strenght and stiffness. Colour and quality variation.• Edge can be cutted for improved appearance• Very cheap products due to large quantities and high efficiency• Machines manufactured primarily in China

© Buhl Paper Form

”High Quality” moulded pulp

• Raw material; recycled paper, bagass, industrial hemp, mechanical long fibre pulp + hydrofilic agents.

• Applications; protective packaging, disposable plates, food trays• Can be combined with spray coating or film lamination for better product protection.• Fine surface, lower density. High strength and stiffness. Even colour and quality.• Edge can be cutted for improved appearance• Cost for these trays is considerably higher than ”egg cartons” due to longer cycle times

and lower efficiency of process.• Most known machine suppliers come from Taiwan or China.

© Buhl Paper Form

Market situation 2017• Machine side for moulded pulp

• high market activity globally for high quality forming machines. • Market leader in HQ machine segment has total sales of 70

machines per year. Main markets Asia, South and North America.• Several Chinese suppliers of traditional ”egg-carton” machines with

air drying• Several manufacturers in Europe are investing into additional

capacity in the ”high-quality” segment, to produce disposable plates, trays and take away products.

• Food trays• A strong and growing demand for high quality fresh fibre products. • Legislation push for sustainable alternatives, e.g. France forbidding

plastic plates in 2020• The market potential for food trays in Europe is huge, the total

market for food trays is ca. 6 billion and growing 6-8% per year.

Market situation 2017• Barrier solutions

• A certain degree of barrier is necessary in most products.• Barrier requirements range from simple hydrofobicity and mechanical

protection to water vapor and oxygen barriers.• Due to differences in waste management systems, the emphasis in

North Europe is on renewable and recyclable products, in South Europethe focus is on compostable products. On a global scale the focus is on compostable solutions.

• Thus any barrier solutions ideally should also be compostable.

• Electronic packaging• Protective packaging for electronic packaging is a large market in Asia.

• Fibre bottles• Several initiatives to develop a moulded fibre bottle.• The most prominent one being the Carlsberg

/ EcoXPac bottle concept.

Competitor food trays

• 75% market share• Higher waste fees• High carbon foot print• MAP• Frozen and fresh food• Micro- and and ovenable• Certain design limitations

• 5% market share• Higher waste fees• High carbon foot print• Not MAP• Fresh food (short shelf life)• Not micro, but ovenable

• 20% market share• Lower waste fees• Lower waste fees• Not MAP• Frozen food• Micro- and and ovenable• Printable• Limitated design

• Small market share• Lower waste fees• Lower waste fees• MAP• Frozen and fresh food• Micro- and and ovenable• Great design possibilities

Pressed boardPlastic trays

Aluminium Moulded pulp

Benefits of moulded pulp vs board

Design

MAP

Supply chain

Benefits of moulded pulp vs plastic

Pulpacktion• Pulpacktion envisions a 100% bio-based integral packaging

solution with similar properties as existing fossil-basedpackaging solutions. The new product will fulfill medium and high barrier requirement’s as demanded from food and electronics industries. Pulpacktion will provide replacementsto current fossil-based packaging using well-known and largely used material such as cellulose. Material propertieswill be enhanced through pulp formulation and processing, along with the use of bio-based polymeric formulations.

• Pulpacktion will reach at least a 50 % reduction in CO2 emissions by taking today’s moulding technology beyondstate-of-the art, allowing for a more energy efficient process and decreased material needs. A successful project will alsohelp reduce the amount of non-degradable plastics that arelandfilled each year.

• Main Work packages are• Development of fibre slurry and additives to obtain

improved properties• Development of bio based and degradable medium

and high barrier films• Development of bio based printing ink and traceability

systems.