UPM Tervasaari

ENVIRONMENTAL performance in 2012

UPM Tervasaari

UPM TERVASAARI, ENVIRONMENTAL PERFORMANCE IN 2012

OTSIKKO

The Tervasaari mill is situated in the centre of the town of Valkeakoski, below the canal between the Mallasvesi and Vanajavesi lakes. As the mill is located next to a populated area, careful attention must be paid to environmental issues in everyday operations.

The Tervasaari integrated mill site has three paper machines, one of which is owned by BillerudKorsnäs Finland Oy, a power plant, a hydropower plant and a biological effl uent treatment plant. Several businesses also operate on the site as tenants. The environmental load caused by the operations of the tenants is included in the data of this report.

The heat required by the Tervasaari mill is produced by the mill’s own power plant, and approximately one-fi fth of the electricity needed is produced at the mill. Heat is also sold to external users as district heating and steam.

The Suikki industrial landfi ll at the Tervasaari mill was in use throughout 2012. The closure of the old Kalatonlahti industrial landfi ll continued according to plan.

UPM Tervasaari is an important centre of expertise in the area of label papers, with a strong focus on the development of existing paper grades and new products.

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people. UPM is present in 67 countries and have production units in 17 countries. UPM’s annual sales exceed EUR 10 billion. UPM’s shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com

UPM Corporate ENVIRONMENTAL

statement 2012

UPM pulp and paper mills

UPM Tervasaari Environmental Performance 2012 is a supplement to the Corporate Environmental Statement of UPM’s pulp and paper mills (available at www.upm.com) and provides mill-specifi c environmental performance data and trends for the year 2012. The annually updated mill supplements and the UPM Corporate Environmental Statement together form the joint EMAS Statement of UPM Corporation. The next Corporate Environmental Statement and also this supplement will be published in 2014.

Production capacity 290,000 t/a

Personnel 330

Products Label papers (Base):UPM BrilliantUPM Brilliant lightUPM Brilliant proUPM Brilliant duoUPM HoneyUPM Honey light

UPM GoldenUPM BlueUPM Pacifi c UPM SCKUPM SCK lightUPM Topaz duo

Certifi cates Quality Management System ISO 9001Environmental Management System ISO 14001EMAS Eco-Management and Audit SchemeFSC® Chain of CustodyPEFC Chain of CustodyThe certifi cates can be found at www.upm.com > Responsibility > Principles and Performance > Certifi cate Finder

PEFC/02-31-80

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UPM TERVASAARI, ENVIRONMENTAL PERFORMANCE IN 2012

Environmental objectives and achievements in 2012

2012 was the 140th year of operation for UPM Tervasaari. Once again, the year was very eventful. UPM sold its packaging paper business and as a result paper machine 7 in Tervasaari passed into the ownership of BillerudKorsnäs Finland Oy on 1 June 2012. The transaction will not impact the management of environmental issues as the operations on the mill site will continue as before and paper machine 7 will continue to comply with the require-ments of the UPM Tervasaari environmental permit.

Several development projects were carried out at the Tervasaari mill during the year in order to improve quality and energy and production effi ciency. The most important project was the second phase of renewing paper machine 8 performed in spring 2012. This phase included the renewal of the press section of the paper machine, among other things. Despite the long invest-ment shutdown, the paper production volume of 2012 exceeded the volume of the previous year.

The environmental objectives set for effl uent and air emissions were met with good results and the emissions were also well below the permit limits. The Tervasaari waste water management system func-tioned without problems. In order to further improve the management of environmental issues, the introduction of the group-wide Clean Run campaign continued. As part of the Clean Run campaign, all employees are encouraged to observe, anticipate and act to avoid situations that may lead to environmental non-conformances. No sig-

nifi cant environmental non-conformances occurred at the Tervasaari mill.

Progress was once again made in improving the energy effi ciency of the unit and the targets set for the use of fuels and purchased electricity were reached. Heat and electricity losses were also signifi -cantly reduced.

New steps were taken in the re-use of waste and by-products meaning all the ash produced could be re-used. The Nokia–Pinsiö road project was carried out using fl y ash from Tervasaari. Fly ash produced during energy production was also used in the closure of the Kalaton-lahti landfi ll.

Harri Hiltunen, Safety ManagerPentti Putkinen, General Manager

Tervasaari records all environmental feed-back from outside the mill. No feedback was received in 2012, but the number of customer enquiries, addressing such issues as the environmental impact of products and manufacturing processes, remained at a high level. The number of enquiries concerning product safety has also increased.

Our operations are evaluated by the envi-ronmental authorities and independent external environmental experts. We are still actively working to develop the Tervasaari mill and our aim is to continu-ously improve our operations.

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1970

MAKKARANSELKÄ

VALKEA-KOSKI

KÄRJEN-NIEMEN-SELKÄ

RAUTTUNSELKÄ5 km

1990

MAKKARANSELKÄ

VALKEA-KOSKI

KÄRJEN-NIEMEN-SELKÄ

RAUTTUNSELKÄ5 km

2008

MAKKARANSELKÄ

VALKEA-KOSKI

KÄRJEN-NIEMEN-SELKÄ

RAUTTUNSELKÄ5 km

0

0

03 03 03

03 03 03

04 04 04

04 04 04

05 05 05

05 05 05

06 06 06

06 06 06

07 07 07

07 07 07

08 08 08

08 08 08

09 09 09

09 09 09

10 10 10

10 10 10

11 11 11

11 11 11

12 12 12

12 12 12

0 0

0 0

UPM TERVASAARI, ENVIRONMENTAL PERFORMANCE IN 2012

Air Water

As in previous years, the air quality of the urban area continued to be monitored in co-operation with the town of Valkeakoski and other industrial plants in the region.

The summary report for 2012 was not available at the time of writing this report. The monthly reports show that the daily recommended limits for nitrogen oxides, sulphur dioxide or particle concentration were not exceeded at the health centre measurement point.

The measurement of total reduced sulphur in urban areas was discontinued in autumn 2012 as the viscose fi bre produc-tion of Avilon Oy came to an end.

The amount of effl uent emissions at the Tervasaari treatment plant increased slightly compared to the previous year. This can partly be explained by the increase in paper production, but the tar-get for specifi c water consumption was not achieved either. The target for the amount of solids reaching the treatment plant was not met.

However, all the measurements related to effl uent emissions were well below the permit limits. These measurements were also below the internal environmental tar-gets set for effl uent emissions in 2012.

FOSSIL CARBON DIOXIDE, CO2

1,000 t/a

SULPHUR DIOXIDE, SO2

t/a

BOD

t/d

NITROGEN OXIDES, NOX

t/a

PARTICULATES

t/a

NITROGEN, N

kg/d

1,000

500

800

400

600

300

400

200

200

100

1,000

500

800

400

600

300

400

200

200

100

250

10

200

8

150

6

100

4

50

2

Lupa, kuukausikeskiarvo

National Land Survey, permit no. 544/MML/08ExcellentGood

SatisfactoryAdequate

PoorNot classifi ed

Surface water quality classifi -cation for the years 1970, 1990 and 2008 based on samples taken and analysed by the Water Protection Asso-ciation of the River Kokemäen-joki in the water courses south of Valkeakoski.

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11

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0

0

UPM TERVASAARI, ENVIRONMENTAL PERFORMANCE IN 2012

Waste and waste management

Noise

The objective at Tervasaari is to reduce the quantity of waste taken to landfi ll by minimising waste generated in production and improving waste sorting. Another aim is to fi nd ways to re-use waste – fl y ash in particular.

We were able to maintain the share of re-used waste at a high level in 2012 and over 90% of all generated waste was re-used.

Tervasaari has been involved in the local UUMA project in the Tampere Region, associated with the Sustainable Commu-nity programme, launched by the Ministry of the Environment and organised by Tekes (the Finnish Funding Agency for Technology and Innovation). The project focuses on promoting the re-use of fl y ash and fi bre clay from the forest industry in the structural layers of roads, streets and pedestrian and bicycle routes. The use of recycled material saves rock resources but does not completely eliminate the need to use rock material. However, it does save non-renewable gravel resources that are important for water management.

The improvement of the Nokia–Pinsiö road was carried out in 2012: a mixture of fl y ash and fi bre clay was used in the

The annual noise measurements defi ned in the Tervasaari environmental permit were taken in 2012. The results of the measurements have been reported to

COD

t/d

TOTAL SUSPENDED SOLIDS, TSS

t/d

PHOSPHORUS, P

kg/d

SOLID WASTE TAKEN TO LANDFILL

BD t/a

The weights included in the fi gure are dry weights.

Building waste/soilAshCleaning waste etc.

Lime sludge/green liquor dregsFibre sludge/suction vehicle waste

25

50

20

40

15

30

10

20

5

10

10

8

6

4

2

50,000

40,000

30,000

20,000

10,000

lower layer of the gravel road on a 2.7-kilometre-long section.

The amount of fl y ash used was approxi-mately one-third of the total amount annu-ally produced in Tervasaari.

In 2012, bottom ash from a fl uidised bed boiler and fl y ash were used during the closure of the Kalatonlahti landfi ll. The Kalatonlahti landfi ll will be closed, in stages, by the end of 2015. Leachates from the Kalatonlahti and Suikki landfi lls are processed at Tervasaari’s biological effl uent treatment plant.

the environmental protection authorities of Valkeakoski and the Pirkanmaa Centre for Economic Development, Transport and the Environment.

003 04 05 06 07 08 09 10 11 12

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UPM TERVASAARI, ENVIRONMENTAL PERFORMANCE IN 2012

Environmental parameters 2012

The fi gures on production and the consumption of raw mate-rials and energy are given as whole numbers at corporate level in the environmental statement for UPM’s pulp and paper mills.

* The fi gure does not include the paper production capacity of BillerudKorsnäs Finland Oy.** The fi gures concerning landfi ll waste and re-used waste are wetweights.

The environmental load caused by the operations of the tenants is included in the data of this report.

Production capacity* Paper 290,000 t

Raw materials Pulp and chemicals Please see UPM Corporate Environmental Statement.

Energy Biogenic and fossil fuels Purchased energy

Biogenic 40.3%, fossil 59.7% Please see UPM Corporate Environmental Statement.

Emissions into the air ParticulatesSulphur dioxide, SO2Nitrogen oxides, NO2Fossil CO2

9.6 t153 t396 t194,360 t

Raw water Process and cooling water 14,253,000 m3

Emissions to water Clean cooling waterProcess effl uentBOD7CODcrSolidsPhosphorus, PNitrogen, N

8,492,000 m3

5,761,000 m3

166 t660 t160 t0.9 t10 t

Landfi ll waste** Soil and rockDemolition wasteCleaning wasteFibre sludgeOther

41 t120 t994 t130 t129 t

Re-used waste** Metal waste etc.AshEnergy wasteSoil and rockOther

1,319 t13,512 t1,602 t2,074 t39 t

Hazardous waste 193 t

Temporarily stored waste intended for re-use Fibre sludge 3,481 t

Size of mill area 73 ha

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UPM TERVASAARI, ENVIRONMENTAL PERFORMANCE IN 2012

OBJECTIVES AND INDICATORS SCHEDULE UNITS RESPONSIBLE

Effl uent to watercourse (monthly average)– COD < 2 t/d – BOD7 < 0.5 t/d – N < 50 kg/d – P < 5 kg/d

31 Dec 2013 Paper production

Emissions into the air; fl uidised bed boiler– NOX < 300 mg/m3(n)– SO2 < 200 mg/m3(n) – Particulates < 30 mg/m3(n)

31 Dec 2013 Energy production

Reducing water consumption, loss of solids and the amount of solid waste – water consumption 8.2 m3/t – solids loss 0.62% – amount of waste taken to landfi ll < 4,000 t/a

and improving the sorting of waste – increasing the re-use possibilities of by-products, especially ash; aim to re-use 100% of fl y ash

31 Dec 2013 Paper and energy production

Enhancing energy effi ciency Decreasing electricity and heat losses on the premises of the former pulp mill:– electricity losses – 4,000 MWh/a (–10%)– heat losses – 25,000 MWh/a (–10%)

31 Dec 2013 Energy production

Environmental objectives for 2013

As the accredited verifier, Inspecta Sertifiointi Oy (FI-V-0001) has audited the UPM Tervasaari Environmental Management System, the Environmental Performance in 2012 report and the Environmental Statement 2012 for UPM’s paper and pulp mills. On the basis of this audit, it was stated on 9 April 2013 that the Environmental Management System of UPM Tervasaari, this Environmental Performance in 2012 report and the information regarding UPM Tervasaari in the Environmental Statement 2012 for UPM’s pulp and paper mills comply with the requirements of the EU’s EMAS Regulation (EC) No. 1221/2009.

VERIFICATION DECISION

REG.NO. FI - 000058

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www.upm.com

UPM TervasaariP.O. Box 39FI-37601 Valkeakoski, Finland Tel. +358 2041 6111 Fax +358 2041 62369

For further information, please contact:Harri Hiltunen Safety ManagerTel. +358 2041 62643 harri.o.hiltunen@upm.com

Tuulikki MoisioSpecialist, CommunicationsTel. +358 2041 62315 tuulikki.moisio@upm.com U

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