Welcome to read our Board Magazine. We have collected to our new magazine the latest packaging and paperboard trends and inspiring innovations. You can also read about the professionals who work in the paperboard branch. We hope you enjoy your reading!
WINTER
2024
METSÄ BOARD PROFESSIONAL MAGAZINE
Investments boost quality and reliability
Retail responding to evolving regulation
RESILIENCE KEEPS YOU AHEAD
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CONTENTS
Board Magazine
2/2024
Investments “A long-term approach, vision and perspective are key to investment activities. It’s essential to look into the future.”
Theme:
RESILIENCE IS KEY
Amid supply chain challenges and
Harri Pihlajaniemi, SVP, Production and Technology, Metsä Board
regulatory changes, the global business environment is full of opportunities for those
who can navigate unexpected risks. page 14
SHORTS
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The design of the book cover affects its sales. AI generates ideas for packaging design. Pro Nemus has a new exhibition. Innovative paper- board mailer replaces plastic. Metsä Group is funding nature projects. Making recycling easy with a QR code. pages 4–7
SUSTAINABLE SOLUTIONS Responsibility is part of business for Mini-Maid. page 8
THE ART OF PACKAGING
IN FOCUS
A mug was created as the result of proactive product development. page 10
Metsä Group monitors the development of regulation. page 20
The importance of resilience in a rapidly changing world
We’ve seen the business world evolving at an unprecedented pace, shaped by geopolitical shifts, regulatory changes, supply chain chal- lenges, and an increasing emphasis on sustain- ability. The ability to adapt and prepare for these changes is necessary for any company, but I also view it as a competitive advantage. For me, this is about two important issues. Firstly, the ability to constantly monitor the operating environment for risks and oppor- tunities, work with different scenarios, and be well prepared. Secondly, I believe it’s about business agility: the ability to adapt quick- ly and respond efficiently to changes in the market. As you explore this issue, I hope you will gain insights into the constant and proactive
work we do to improve the resilience of our organisation and operations. It’s about our long-term sustainability work and keeping ahead of regulatory changes, about the in- vestments we make in our mills to ensure their reliability and competitiveness, and how we’re constantly looking at ways to develop our supply chain solutions. Resilience isn’t just about how we adapt to external pressures; it’s also about how we col- laborate and foster a constant dialogue with our customers and partners. We truly appre- ciate your continued trust and partnership – because it’s through close cooperation that we can weather uncertainty together, espe- cially in extraordinary times. Mika Joukio
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RETAILER
INVESTMENTS
CUSTOMER STORY Cooperation based on shared values. page 32
Changing legislation challenges the value chain of the packaging industry. page 24
Ensure quality and operational reliability. page 26
FACTS & FIGURES
METSÄ BOARD MAGAZINE | WINTER ISSUE 2024 | MAGAZINE@METSAGROUP.COM | ISSN 2323-5500 | PUBLISHER METSÄ BOARD COMMUNICATIONS, P.O. BOX 00, FI-02020 METSÄ, FINLAND | WWW.METSAGROUP.COM/METSABOARD/ | EDITOR-IN-CHIEF MARJO HALONEN, VICE PRESIDENT COMMUNICATIONS | MANAGING EDITOR RITVA MÖNKÄRE, COMMUNICATIONS MANAGER | PRODUCTION AND GRAPHIC DESIGN HUBE HELSINKI OY COVER PHOTO JUSSI HELLSTEN | COVER STYLIST KAISA NIEMINEN | PRINT MARKPRINT OY THE OPINIONS EXPRESSED IN THIS PUBLICATION ARE NOT NECESSARILY THOSE OF METSÄ BOARD. | ADDRESS SOURCE METSÄ BOARD’S CUSTOMER AND STAKEHOLDER REGISTER. IF YOU DO NOT WANT TO RECEIVE THIS PUBLICATION IN THE FUTURE, PLEASE SEND AN EMAIL TO MAGAZINE@METSAGROUP.COM.
Product portfolio and Metsä Board in numbers. page 35
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Texts: Elina Hovinen, Silja Eisto and Metsä Board Photos: Metsä Group and Jussi Hellsten
AI GENERATES IDEAS FOR PACKAGING DESIGN
Metsä Board is exploring ways to use artificial intel- ligence in packaging design. Metsä Board’s pack- aging design team has been testing the use of AI in packaging design, and Northern Lights Oat Meal is an example. “We established an experimental brand and used AI to create a new oat-based granola product for it. We wanted to brand a product that represented Nordic food and clean nature,” says Ilkka Harju , Packaging Services Director at Metsä Board. AI can generate various, sometimes striking, ideas faster than humans, and prototypes can be quickly produced with digital printing. This is how AI speeds up the design process. To obtain useful ideas from AI, you need to know how to use it. Designers must understand the strengths and weaknesses of the AI solutions they use. “I’ve used various AI engines for design and have integrated them so that they interact. You must formulate explicit, clear and descriptive prompts for AI to get the desired result,” says Vesa Nurminen , Art and Creative Director of Futupack. The graphic designer refines the AI-generated alternatives to create the desired visual object, ensuring it meets the necessary requirements. Additionally, knowledge of materials remains an area where human expertise is essential.
Metsä Group is funding nature projects
Metsä Group is funding biodiversity management and restoration projects to a total of 600,000 euros in 2024. This year, 26 new projects were approved for the funding programme for nature projects. With this year’s selections, the projects’ themes are increasingly diverse, and their geographical cov- erage is expanding. The themes of the funded projects include the condition of waterbodies, the restoration of flowing waters, the removal of invasive species and pred- ators, pollinator services, the management of traditional habitats, and the restoration of bird wetlands. “Our goal is to mainstream the operating culture in which Finnish nature is the force that unites us,” says Metsä Group’s leading nature expert Timo Lehesvirta . The expansion of the funding base for nature projects was discussed at the beginning of June at an event organised by Metsä Group and the Asso- ciation for the Management and Protection of Archipelago Nature. The ex- perience and knowledge shared at the event create a basis for the develop- ment of a more diverse and stable funding base than in previous projects that strengthen the state of nature. “We are a small but active association that promotes and supports nation- ally set nature goals through voluntary activities. We welcome the fact that the private sector is getting involved in financing the wellbeing of Finnish nature,” says Tommy Arfman from the Association for the Management and Protection of the Archipelago Nature in Finland. “Metsä Group’s funding channel is an example and a welcome opening for the environmental work of the private and public sector to play towards the same goal. The expansion of the funding base in the direction of compa- nies is a welcome message. There is potential in the projects selected now,” commented Pekka Pesonen , head of the office of the Ministry of Agricul- ture and Forestry in Finland and chairman of the expert council.
WELCOME TO THE RENEWED PRO NEMUS
Metsä Group’s Pro Nemus visi- tor centre in Äänekoski offers a comprehensive presentation of the company’s products, technology and competence. In connection with the visit, visitors can learn more about the Äänekoski integrated mill site. “Pro Nemus presents Metsä Group’s products and technology extensively. We hope to see cus- tomers, partners and forest owners at the centre, as seeing things in person often prompts insights,” says Ketsia Anttila , Director of Communications, Brand and Mar- keting at Metsä Group. The Pro Nemus exhibition was renewed in the summer of 2024. The installation presenting Metsä
Group history was replaced with an elegant and interactive glass book. Meanwhile, the throne uphol- stered in the Kuura ® textile fibre for the Pulp and Beyond fair was placed in the exhibition space’s lobby. The Kuura ® throne was a huge success at the fair thanks to its photogenic appeal. “It was a surprise to us that the nest made of Kuura ® textile fibre became such a hit at the fair, so we wanted it to have another life at Pro Nemus.” The throne has also been eagerly photographed at Pro Nemus. Interested? Your Metsä Board contact person will be happy to arrange a visit for you.
Kuura ® throne has been photographed extensively.
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THE COVER IS THE BUSINESS CARD OF THE BOOK
Book cover trends, including materi- als and designs used, are constantly changing. During the last decade, for example, matte and glossy lamination have been used a lot. “Now, natural surfaces are popular, and we use more natural boards with water-based varnish,” says publishing company Penguin Random House’s Vice President, Production Barbara Scheuer . The company publishes around 2,000 new editions annually in Germany. Another topical trend in Germany is the rising popularity of paperbacks – especially among young adults. “The trend is very much in the direction of paperbacks with flaps and edge cut. Hardbacks are still there, but they are
more premium products.” Ideally, a book cover matches the content and transports it in a way that meets the taste of the main audience group. “The cover is the business card of the book, the first look and feel.” Bestsellers can become trendsetters too: “If there is a book which sells well, everybody tries to copy it and the look and feel of the design of the cover.” According to Scheuer, mechanical paper is becoming more common, and also Penguin Random House has also switched to it. “And we only use papers and materials which are under a cer- tain CO 2 level.”
Innovative paperboard mailer replaces plastic ExpandFibre is an R&D collaboration and an Ecosystem launched by Fortum, a Nordic energy company, and Metsä Group to ac- celerate the development of sustainable bioproducts. It focuses on upgrading pulp fibres, hemicellulose and lignin from renew- able and sustainable sources of straw and northern wood into new bioproducts. As part of the project, Metsä Board and its partners designed a novel mailing envelope to replace bubble-lined mailers. Product development resulted in an innovation: a flat product resembling corrugated packaging that protects the mailed product. “We wanted to design a mailing envelope that was easier to recy- cle,” says Ilkka Harju , Metsä Board’s Packaging Services Director. Before the product’s completion, Metsä Board conducted a con- sumer survey comparing the ExpandFibre mailing envelope with a traditional bubble-lined mailer. Survey respondents rated the paperboard-based mailing envelope more highly than its coun- terpart and considered it to be more ecological. Workshops organised at Metsä Board’s Excellence Centre brought together the expertise of three Finnish companies. “Automation expert Jomet has designed the technology for pro- ducing the envelope. The outer part of the envelope is made of Paptic’s bio-based, recyclable packaging material, and the flut- ed structure inside the envelope is made of Metsä Board’s white kraftliner,” Ilkka Harju says. Funding is now being sought for the product, and an appropri- ate business model is being created for the market launch.
Fibre-based fluted structure replaces bubble-lining.
MAKING RECYCLING EASY WITH QR CODES
Metsä Board is launching a new solu- tion to enhance and simplify the recy- cling process for packaging materials customers receive as part of Metsä Board product deliveries. “The implementation of the new recycling QR codes on our paper- board deliveries stems from a strong commitment to sustainability and customer convenience,” says Isto Hongisto , Product Safety Specialist at Metsä Board. Metsä Board has implemented QR codes on its products’ pallet and reel labels for all volumes delivered to its customers. The QR code directs customers to an intuitive app that provides detailed information about
the various packaging materials used to protect the paperboard in the logis- tics chain. This information assists customers to determine how each component of the delivery’s packaging should be recycled. “Recycling can sometimes be com- plex, and our goal is to make it as seamless and straightforward as pos- sible for our customers. This initiative will not only save them time – it will also ensure that the materials used in our deliveries are optimally recycled.” Metsä Board invites all its customers to take advantage of this new feature and contribute to promoting efficient recycling practices in the packaging industry.
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Sustainable solutions
One of Europe’s largest paper plate producers
Sustainability is part of Mini-Maid’s business and growth.
Silja Eisto, photo: Jussi Hellsten
F rom the first day on, growth and international- isation have been part of the operations of Mi- ni-Maid, a family-owned paper plate producer. During nearly 40 years of operation, the company has systematically pursued growth, and it now has custom- ers in just about every European country. According to CEO Mikael Grahn , the company’s sec- ond-generation entrepreneur, Mini-Maid aims to be Eu- rope’s leading private label producer. Paying attention to sustainability is part of this goal. Established in 1986, the Finnish family-owned busi- ness specialises in the production of private-label prod- ucts. Today, the facilities in Teerijärvi in Northern Os- trobothnia produce nearly 6,000,000 paper plates daily. They are tailored to retailers’ requirements, and proper- ties such as packaging size, labels and plate size are al- ways customer-specific. The market has offered plenty of growth potential, and demand has been quite stable throughout the company’s history. Despite the current uncertainty in Europe, Grahn sees growth in the future. “It looks as if chain stores want to promote their own brands. The private-label sector is increasing.” What do customers want? Sustainability and related regulation are developing quickly in Europe. Sustainability is also part of Mi- ni-Maid’s operations and is reflected in the company’s international customer base. According to Grahn, there is no doubt about the importance of sustainability, but many country-specific differences still exist in meth- ods and requirements. Grahn lists the Nordic coun- tries, Germany and France as examples of countries that
have made good progress in sustainability. Some customers specifically want products produced in Europe. The traceability of raw material is also an important consideration. However, for other customers, price is still the determining factor. “We now face a challenge especially from Asian paperboard, which is used widely in Turkey, for example. Nevertheless, we be- lieve that the new EU requirements will work in our favour,” Grahn says. The importance of certificates also differs, depending on the market. Mini-Maid’s op- erations are certified in accordance with the ISO 9001 quality management standard and the BRC global standard for food safety. Grahn also mentions PEFC and FSC® certifi- cation and the Swan label, both of which are required in the Nordic countries. “At the moment, recyclability appears to be more important than compostability. These things change – and quite quickly at that.” Amid changes, Mini-Maid aims for open- ness: “We tell our customers about new re-
Mini-Maid aims to be Europe's leading private label paper plate producer.
quirements, what our raw materials represent, and what we are doing to promote sustainability. One such thing is the fact that our plates no longer contain any plastic.” Partnerships support growth Mini-Maid produces its products from fresh fibre that meets the food safety criteria for food packaging. “We can also indicate the source of our raw material, as we purchase it from Nordic providers.”
Mini-Maid has been cooperating with Metsä Board since the 1990s. Grahn says that the Husum mill’s pa- perboard suitable for food packaging has been espe- cially important for the company in recent years. In Grahn’s opinion, excellent product quality is one of Metsä Board’s strengths. From a converter’s perspec-
tive, it is important that the quality and price of the supplier’s products are balanced. Reliable deliveries and good communication are other important aspects. “In addition to sales, we can talk to many other par- ties in the organisation. Metsä Board has done well in this respect.” •
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Art of packaging
“You can reuse the mug as a coffee cup, for example. There will be a slight flavour of liquorice in the coffee from the mug.” Timo Nisula, Managing Director, Kouvolan Lakritsi
A mug full of liquorice
Kouvolan Lakritsi’s new liquorice mug was created as the result of Metsä Board’s proactive product development work. In a consumer survey, the mug was found to be more practical than a plastic pouch.
Elina Hovinen, photos: Jussi Hellsten and Metsä Board
F resh, soft liquorice is an unrivalled delica- cy. But a plastic sweet pouch getting torn or getting one’s hands sticky is not a nice experience. “We had long been thinking about whether the sales package for liquorice could be something else than a sweet pouch,” says Timo Nisula , the Managing Director of Kouvolan Lakritsi. Kouvolan Lakritsi is a Finnish company estab- lished in 1906. In addition to its main product, liquorice, it makes sweets and marmalade, among other things. The company has produced its fa- mous liquorice with the same recipe since 1960. Kouvolan Lakritsi has been collaborating with Metsä Board in packaging solutions for sever- al years. Metsä Board’s proactive product devel- opment work resulted in the liquorice mug – a reclosable package made of paperboard, which solves the problems related to the plastic sweet pouch and can compete with it in terms of cost-ef- fectiveness. An airtight lid requires testing Kouvolan Lakritsi’s requirements for the packag- ing included conformity with all regulations and standards and suitability for the planned use. The cost-effective production of the packaging was also brought up.
“The packaging must also feel good when held, and it must not appear too fragile or cheap, even if it’s made from the best raw materials for the en- vironment,” says Nisula. The idea for the liquorice mug came from the disposable cup for hot beverages. Metsä Board’s packaging designers thought about how the round top edge of the cup could be used for closing the package, and which material choices would make the disposable paperboard cup suitable for liquo- rice packaging. While the basic product concept was simple, the mechanism for attaching an airtight lid was of some concern to the packaging designers. The design team decided to test whether a heat-sealed trans- parent plastic film kept the liquorice fresh. Once opened, the reclosable paperboard cover effective- ly preserves the liquorice. Futupack, Metsä Group’s partner, invested in a heat-sealing device that enabled the product de- velopment of Kouvolan Lakritsi’s liquorice mug. “Heat-sealing the film to the cup’s edge worked surprisingly well, so we moved on to test the prod- uct’s shelf life and other material properties,” says Timo Kallio , Metsä Board’s Technical Expertise Service Director. The moisture of the product must not pen- etrate the packaging, and the liquorice must
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Art of packaging
CONSUMER SURVEY: A CUP OR A POUCH?
¼ pallet size stand and floor display MetsäBoard Pro WKL 160 g/m 2 , 33 lbs/1,000ft 2 B-flute
remain fresh in the closed packaging. Factors related to printing technology also needed to be taken into account when selecting materi- als because Kouvolan Lakritsi’s brand colour is black, and the black printing ink involves certain requirements for the printing surface. “We conducted several shelf-life tests and found that the lid solution worked really well and that the cup kept the liquorice fresh,” says Kallio, de- scribing the stages of product development. Nisula is happy about the fact that the paper- board cup is easy to recycle. He also came up with a fun idea about how to use the mug after all the sweets have been eaten. “You can reuse the mug as a coffee cup, for example. There will be a slight flavour of liq- uorice in the coffee from the mug.” Impressive presentation According to Ilkka Harju , Packaging Services Director at Metsä Board, the work of the pack- aging design team is not limited to planning the form and material of the packaging. “In addition, the design team considers where the product will be sold, how it will be present- ed at the shop, and how the packaging will go through the logistics chain.”
The sales stands need to appear impressive and firm in the shop, and they must withstand the impacts and handling of consumers pass- ing by. To promote the sales of the liquorice mug, the packaging design team designed various sales stands made of Metsä Board’s white kraftliner, which has properties that are perfectly suited to Kouvolan Lakritsi’s needs. Corrugated board made of Metsä Board’s white kraftliner is firm and durable material with an excellent print- ing surface. “The package’s appearance and the sales stand are hugely important. They are the key in mak- ing the product stand out and sell well,” says Nisula. Flexible collaboration According to Nisula, collaboration with Metsä Board is effortless. Thanks to the long shared history, Metsä Board has gained an under- standing of what the client wants, which makes the design work easier. “During the brainstorming stage, we toss around ideas, they pick them up and then pres- ent the final product to us,” says Nisula. •
Before launching the liquorice mug, Metsä Board commissioned a consumer survey to ensure that the innovation would be worthwhile. The survey was carried out by Sense N Insight, which special- ises in packaging research. Virpi Korhonen , the Managing Director of the
company, explains how the survey was carried out, and what its results were.
How was the survey carried out? In the consumer survey, the respondents com- pared Kouvolan Lakritsi’s sweet pouch with the new liquorice mug. The survey sought to find out how much consumers liked the new packaging method compared with the traditional sweet pouch. The respondents did not know the exact purpose of the survey. The survey was started by presenting both prod- ucts to the respondents at the same time. They were asked which product was more appealing based on the first impression, and for which prod- uct they would be prepared to pay the indicated price. After rating the first impression, the respondents could examine both packages in their hands, open them and taste the contents. After this, the respondents first gave their assessment of both packages independently, followed by a group discussion. What did the survey find? The consumers who participated in the survey liked the liquorice mug: it received 73 points out of 100 in the SNI rating, while the sweet pouch received 31 points. This shows that the respond- ents thought that the liquorice mug had clearly more sales potential than the sweet pouch, indi- cating that the innovation would be worthwhile. The SNI rating measures the perceived value of the product, the willingness to pay, and the prob- ability of buying compared with another product. A score over 50 points is a good result. All the respondents found the liquorice mug easy to use, clean, safe, attractive, eye-catching and impressive. For example, the following comment was included in the open answers: “The mug is practical if you eat small amounts. The mug is easy to
close, it stays in an upright position, and you can place it in a cup holder in a car, for example.” In sustainability, the mug received an average score of 7.8 out of 10, while the pouch received 6.1 out of 10.
Table display and transport package MetsäBoard Pro WKL 160 g/m 2 , 33 lbs/1,000ft 2 E-flute
Cup and lid MetsäBoard Natural FSB Cup 1PE, 310 g/m 2 , 17.7 pt
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Theme
Resilience keeps you ahead Amid supply chain challenges and regulatory changes, the global business environment is full of opportunities for those who can navigate unexpected risks.
Sami Anteroinen, illustration: Jarkko Talonpoika
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Theme
F or today’s companies, resilience is simply a must-have quality. Recent crises – from a worldwide pandemic and war to natural disasters and logistics bottlenecks – have shown that disruption is always lurking around the cor- ner. The packaging industry is not immune to crisis – but what can industry players do to build up their resilience muscles? Tero Eerikäinen , economist for European Packaging Papers at Fastmarkets RISI, comments that companies that can adapt quickly to market changes will succeed in both good and bad cy- cles. He says diversification will be the key in the future: a wide product portfolio and presence in multiple regions will increase resilience, ensuring that all the eggs aren’t in one basket. “The future regulation concerning cartonboard packages is likely to add more stress, which is why strategic business deci- sions need to offer a resilient operating plan capable of rapid re- actions in all market conditions,” believes Eerikäinen. Succeeding in an uncertain and constantly changing business environment requires cost-competitiveness, as near-term car- tonboard production capacity will grow faster than demand, in- creasing competition. “Moreover, quality is one of the advantages in competitiveness, and it has ensured a robust basis for the demand for cartonboard produced in Europe.” Eerikäinen also sees sustainability issues gaining ground: the origin of the materials used and emissions produced in carton- board manufacturing will have greater significance in purchas- ing decisions. How good is your radar? Nora Kärkkäinen , Vice President, Business Development, at Va- lona Intelligence, says that industrial players have a long history of risk assessment – but it turns out that the scope of the “risk radar” can be too narrow. “In addition, each organisation has its own blind spots. A lead- ing player can easily fall into the Expertise Trap, being over- confident and knowing ‘for sure’ what will happen in their in- dustry,” says Kärkkäinen, who has co-authored a book about strategic foresight. Kärkkäinen believes that working with various scenarios can help companies get a better handle on market challenges. “Run- ning scenarios is a key method for increasing resilience – and it has clearly become more popular post-Covid.” Anne Durchman , Head of Customer Success Management for the Nordics at Valona Intelligence, adds that companies would do well to think about their crisis response levels and reaction times beforehand – is there enough inbuilt capability to move quickly when the need arises?
“And even if multiple ‘hits’ come at the same time, you should still be able to function.” Durchman and Kärkkäinen point out that “af- ter-crisis” measures are equally important: what are the lessons learned, and what can we do better next time? “The key is to adopt a systematic approach to one’s risk radar to become more future-proof,” says Kärkkäinen. Expect the unexpected Markku Leskelä , Senior Vice President, Development, at Metsä Board explains that setting up different sce- narios is an important tool for improving resilience. This means conducting a thorough analysis of the busi- ness environment, including such factors as geopol- itics, technology, consumer trends, regulation devel- opments… “Scenario work is part of our continuous way of work- ing and is increasingly important,” Leskelä says, ac- knowledging the need to prepare for those black swans out there. Preparing for the unexpected means flexibil- ity within the organisation also increases. “Looking back, the Covid pandemic was probably the most unexpected black swan,” he says. However, the global packaging industry seems pret- ty well positioned going forward. “The need to package things is universal, after all.”
Change also yields opportunity Yet issues such as over-packaging remain – and there is lots of work to do in the field of recycling, for exam- ple. Leskelä points out that fibre-based packaging en- joys steady tailwinds, and new opportunities are open- ing for players like Metsä Board. “We want to keep heading in the right direction and continue to inspire our customers by showing them examples of what packaging innovation really means.” One intriguing driver of business right now is ar- tificial intelligence (AI). Leskelä reveals that Metsä Board mills are already using AI in various parts of the production process – for example, in quality con- trol. “With more efficient data-crunching, our oper- ational guidance also works better.” Anu Rehtijärvi , Market Intelligence Manager for Metsä Board, is part of Leskelä’s development team. She describes the field of market intelligence as chal- lenging: there are weak signals out there that will be- come significant market drivers over time – but how do you know which ones? “The answer lies in scanning the business environ- ment 360°, non-stop,” she says. Scenario work exposes some business-critical un- certainties – and a viable plan can be hatched for each contingency.
Via scenario work, some of the business- critical uncertainties will become exposed – and a viable plan can be hatched for each contingency.
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Theme
“We participate in discussion about forest
Whatever the Development Team can learn about the future trends, it is quick to pass on that knowl- edge to the customers too. “Insight and knowledge are acquired in collaboration. The same goes for boost- ing resilience.” Risk & reward Jussi Tarvainen , Vice President, Risk Management Pro- cess, at Metsä Group, believes the awareness of various risks has certainly increased in recent years. He per- ceives operational resilience as a key component in en- suring continuity. “We improve our risk management processes via various tools, including digitalisation, transparency and training,” he says. “Risk management creates the prerequisites for building resilience throughout the organisation.” According to Tarvainen, big industry players like Metsä Group are looking to thrive as they undergo change. “Above all, this requires you to have an accurate picture of what’s happening in the market – and why. Once you have solid data to rely on, you can deal with the uncer- tain future a lot better.” Resilient supply chains Metsä Board’s philosophy is that resilience is not just about enduring disruptions, but, instead, about proactively pre- paring for them and nurturing the internal agility to adapt to unforeseen scenarios. But what does this mean in prac- tice? First of all, with effective demand planning, supply chain visibility, and inventory management, it becomes possi- ble to better prepare for demand fluctuations and sup- ply interruptions. In addition, backup mills, as well as alternative converting and warehousing locations, play an important role in supply chain resilience. “We also actively maintain backup alternatives for logistics routings. For instance, when the Baltimore bridge tragically collapsed in March 2024, our supply chain team implemented logistics alternatives in less than 48 hours,” says Anu Metsäranta , Vice President, Supply Chain, at Metsä Board. “Furthermore, we deploy a robust Sales and Oper- ations Planning (S&OP) process, which features close collaboration with our partners and scenario planning with senior management.”
regulatory approach at both the EU and national levels. The new Commission is expected to take a more moder- ate line in avoiding over-prescriptive and conflicting leg- islation, as well as an excessive administrative burden.” Working together for the best results Peltonen notes that policymakers are doing valuable work – and when it is done with good interaction with stakeholders, the chances of success are good. “We an- ticipate regulatory changes by participating in policy discussions and advocacy at the EU and national levels – especially in Finland, Sweden and Germany.” In essence, this means that the Metsä Team follows and contributes to policy debates, monitors policy develop- ments, has meetings with stakeholders and EU decision makers, and analyses legislative proposals. “We participate in discussions about forest and biodi- versity, climate and energy, the environment, the circu- lar bioeconomy, and products,” Peltonen says. “We also work closely with national and EU-level trade and in- dustry associations.” •
Strengthening organisational agility While building a strong framework is essential, organ- isational resilience is also about cultivating sufficient alignment, empowerment, and adaptability when a cri- sis hits. By empowering smaller teams to act autonomously, while staying aligned with broader organisational goals, it’s possible to leverage the full expertise of the organi- sation to address issues efficiently. “In addition, recent developments in advanced analyt- ics have further increased the speed of our teams to as- sess risks, develop a shared understanding, implement the best actions and assess their impact with minimal delay,” concludes Metsäranta. Where is regulation heading next? The European Commission has promised to contin- ue the green transition and to focus more on boosting investment and European competitiveness, says Tytti Peltonen , Vice President, Corporate Affairs European Union, at Metsä Group. The focus will be, for example, on implementing the already adopted legislation in the Member States, clean industrial policy, assisting indus- trial emission reductions and energy security. “The EU has already integrated resilience in policies through the EU Green Deal programme, for example, with the aim of ensuring that the EU and Member States can respond to various challenges and recover from cri- sis,” she continues. Metsä Group has an office in Brussels, with three peo- ple working on EU advocacy. “Our colleagues in Ger- many and Finland also support our work,” says team leader Peltonen, who has worked in Brussels for 15 years now.
and biodiversity, climate and energy, environment, circular bioeconomy and products.”
The clean transition is an opportunity for our industry and economy, she be- lieves. “It requires an appropriate
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In focus
4evergreen represents the entire value chain of fibre-based packaging, from forests to producers, designers, brand owners and recyclers. Its goal is a 90% overall recycling rate of fibre-based packaging by 2030.
Eye on regulation As environmental legislation picks up momentum, smart industry players do more than just adapt.
Sami Anteroinen, photos: Metsä Group
W hen it comes to packaging, a key piece of upcoming legislation is the Euro- pean Union Packaging and Packaging Waste Regulation (PPWR), which aims to reduce the amount of waste resulting from packaging mate- rials. Mike Turner , Managing Director of the Eu- ropean Carton Makers Association (ECMA), says the directive will bring welcome harmonisation to the industry. “The PPWR recognises that the Circular Economy should be based on recycling and reuse. We’re very supportive of the legislation,” says Turner. The PPWR should be formally adopted in the au- tumn and is expected to become law in Member States in 2026. Some of the requirements, restric- tions and bans will enter into force in 2026, some in 2030 – and there are also some indicative targets for 2040. In addition to the PPWR itself, the Euro- pean Commission will prepare secondary legisla- tion and guidance for implementing the regulation. Discussing reducing waste in packaging, Turner points out that the role of quality design can hardly be overstated. “As much as 80 per cent of the sus- tainability impact of a packaging unit is decided during the design process.” Fibre on a roll Boasting high recyclability, fibre-based packaging certainly seems like a winner in tomorrow’s mar- ketplace. “Fibre packaging is well placed in this scenario,” Turner says.
An example: small single-use servings (less than 1.5kg) of fruit and vegetables can no longer fea- ture plastic in the packaging, according to the leg- islation. “This provides opportunities for innova- tors such as Metsä to step in and take the market.” Tytti Peltonen , Vice President, Corporate Af- fairs European Union, at Metsä Group, says that the fibre-based packaging value chain is “gener- ally quite satisfied” with the new law. “It treats reusable and recyclable single-use packaging more fairly than the Commission’s original proposal, and it also recognises the cli- mate and environmental benefits of highly recy- clable fibre-based packaging.” Nevertheless, Peltonen hopes that the law will also guide Member States in the development of collection and recycling systems – and clear up some ambiguities that still plague the legislation. “We’re waiting for further guidance from the Eu- ropean Commission and hope that the law will be formally adopted soon,” she says, adding that the industry needs both legal clarity and predictability. On the forest side An other important piece of legislation is the Reg- ulation on Deforestation and Forest Degradation (EUDR), which entered into force in June 2023 and replaces the EU Timber Regulation. It aims to com- bat deforestation and forest degradation globally. Peltonen’s colleague, Corporate Affairs Manager Krista Kimmo, explains that the regulation’s
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In focus
“The fibre-based packaging industry needs a predictable and science-based regulatory framework that supports the green transition, product development, innovation and investment.”
intention is to ensure that commodities placed on or ex- ported from the EU market do not cause deforestation or forest degradation. “The forest industry and Metsä Group fully support this aim,” she says. The EUDR lays down rules for the production of cattle, cocoa, coffee, oil palm, rubber, soya and wood. “It also creates a reporting obligation for operators to ensure that they comply with its requirements,” Kimmo says. The industry has been waiting for further information from the Commission about how the regulation should be applied in practice. The EUDR becomes applicable on 30 December 2024, unless the Commission proposal to postpone the enforcement of it by one year is approved by the European Parliament and the European Council. Championing responsible legislation The EU wants to be a leader in climate change mitiga- tion, and during the last five years, the EU has worked on an ambitious Green Deal agenda which has result- ed in “a legislative tsunami”. “We support the EU’s ambitious environmental and climate goals. However, it is important to avoid regu- latory requirements that are too detailed, overlapping and conflicting,” says Tytti Peltonen. “The fibre-based packaging industry needs a predict- able and science-based regulatory framework that sup- ports the green transition, product development, inno- vation and investment,” she adds. The task of the Metsä Group Brussels team is to pro- vide fact-based information and solutions to policymak- ers. “We work in partnership with trade and industry associations.” For example, this means participating in the activities of the European Paper Packaging Alliance (EPPA), which promotes the sustainability of wood-fibre-based food and food service packaging and the circular economy. Metsä Group is also an active member of 4evergreen, which represents the entire value chain of fibre-based packaging, from forests to producers, designers, brand owners and recyclers.
“Extended value chain collaboration and stakehold- er engagement are extremely important to all parties,” concludes Peltonen. Corporate America pursues sustainability Nathan Pajka , Metsä Board Sustainability Manager sta- tioned in New York, says that the green legislation situ- ation is less clear-cut than in Europe. “EU sustainability legislation is stricter and broader in scope. The US is totally different because it’s so de- centralised,” Pajka says, meaning, in essence, that every state has its own sustainability agenda. Nevertheless, many big corporations are calling for stricter environmental legislation – largely because their customers want this too. “There is growing sentiment from consumers in sup- port of pursuing recycling and the circular economy, for instance,” Pajka says, adding that investors have also no- ticed that the tide is turning. “Investors are actively driving companies to adopt and implement ESG standards.” •
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Retailer
Retail responding to evolving regulation Constantly changing legislation challenges the packaging industry value chain, from producers to retailers.
Elina Hovinen, photo: Roope Permanto
I n Europe, packaging legislation is becoming in- creasingly strict as the EU seeks to reduce the use of plastic in packaging while promoting the circular economy and recyclability. The changes affect the en- tire value chain in the packaging industry, from pack- aging producers to retailers. Kesko is committed to the EU’s Directive on single-use plastics (SUP-D), which aims to reduce single-use plastic packaging. Kesko is one of Finland’s largest retail chains. As a large operator, Kesko has the responsibility of acting as a trend- setter and setting an example. The company is commit- ted to sustainability and related tangible actions such as reducing the use of plastic in packaging. “We closely follow discussions and decision making re- lated to legislation. We participate in public dialogue with both the authorities and interest groups. This keeps us up to date on changes to legislation,” says Director Tuuli Luoma , who is in charge of Kesko’s sales and own brands. Kesko issues various statements and comments on leg- islative amendments and needs for change to advocacy groups. It helps smaller operators comply with legislation by arranging training, for example. “We review various official guidelines and instructions for their interpretation. We discuss whether they might be open to various interpretations, and whether differ- ent parties should be informed to prevent any ambigui- ty. We attempt to react proactively to changes before they take effect.” Long-term packaging solutions Kesko works in close cooperation with various stakehold- ers and packaging producers to ensure packaging meets
the sustainability and recyclability requirements to which the company is committed. Kesko sets packaging produc- ers criteria that their packaging production must satisfy. Examples of such criteria include reducing the amount of plastic or using more lightweight materials. “We carefully consider various materials solutions. We try to look into the future and anticipate which solutions will continue to function years from now in terms of re- cyclability and waste reduction,” Luoma says. As a retailer, Kesko does not produce the products it sells or the packaging. This is handled by the manufac- turing industry, which gets the criteria for packaging ma- terial and other matters from the buyer, Kesko. The man- ufacturing industry conducts more detailed negotiations with the producer. Kesko expects its raw material suppliers to provide in- novative packaging solutions to help solve challenges re- lated to recyclability or sustainable packaging materials. Impact of legislative changes According to Luoma, Kesko receives hardly any direct requests from consumers concerning the sustainabili- ty of packaging. “Consumers are pleased we are reducing the amount of plastic in packaging. We can adopt solutions bene- ficial to the environment on their behalf and have re- ceived thanks for this.” EU’s Packaging and Packaging Waste Regulation (PPWR) will lead to significant changes in Kesko’s day- to-day operations, including the ban of single-use plas- tic packaging for less than 1.5 kilograms of fresh fruit and vegetables.
“Consumers are pleased we are reducing the amount of plastic in packaging. We can adopt solutions beneficial to the environment on their behalf”, says Tuuli Luoma from Kesko.
”We anticipate which solutions will continue to function years from now in terms of recyclability and waste reduction.”
“Harmonising legislation is a positive thing over- all because it ensures a sustainable operating model for all operators. However, there are many opinions about the details of the new regulation and their ap- propriateness,” Luoma says. Luoma emphasises that they could not achieve the targets required by regulation without working close- ly with stakeholders. •
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Investments
Investments boost quality and reliability Metsä Board’s key investment objective is to ensure first-rate quality and competitiveness while aiming for fossil free mills by the end of 2030.
SIMPELE FOLDING BOXBOARD MILL
The Simpele board mill produces high-quality, lightweight folding box- boards for food and pharmaceutical packaging, for example. All these use cases set high requirements for the quality of the printing surface. In the future, the quality of the folding boxboard produced at the Simpele board mill will meet these important requirements even better. The mill’s previous investment project was completed in the spring of 2023 and aimed to reduce water consumption and improve energy efficiency. In April 2024, Metsä Board launched a new investment programme. The main goal is to improve MetsäBoard Classic FBB’s product quality and printability even further while enabling the replacement of fossil fuels in Simpele’s paperboard production with fossil free alternatives. Valued at around EUR 60 million, the project is expected to be completed in late 2025. This major project will focus on modernising the paperboard production line. The coating section will be renewed to further improve the paper- board’s print quality and visual uniformity. In addition, the coating drying systems will be modernised by replacing the current LPG-powered dryers with electric dryers, ensuring the energy used during the drying process will be entirely fossil free. The main equipment purchases have been made, and the modernisation work will begin in the autumn of 2025. Benefits for customers: Following the modernisation of the paperboard production line, the product quality will further improve, strengthening the product’s performance in premium food and healthcare packaging. The fossil free production process will further reduce the product’s carbon footprint, supporting the CO 2 reduction targets of customers. The invest- ment project will also increase the mill’s production capacity by 10,000 tonnes to 310,000 tonnes.
Elina Hovinen, photos: Metsä Group and Metsä Board
M etsä Board has several investments under- way the impacts of which will be felt decades from now. “A long-term approach, vision and understanding of business development needs are key to investment ac- tivities. It’s essential to look far into the future,” says Harri Pihlajaniemi , SVP, Production and Technology at Metsä Board. With its investments, the company wants to ensure its customers receive premium quality across all services. “From a customer’s point of view, the most impor- tant thing is that they receive a product matching their needs, and it’s delivered to them at the agreed time,” adds Pihlajaniemi. Customer satisfaction is extremely important to Metsä Board, and it is measured regularly. The goal of all in- vestments is to meet the customer needs, keep the prod- uct portfolio competitive, and minimise emissions and waste.
Three types of investments are important:
Strategic investments Investment projects are extensive strategic projects, and one aim is to achieve Metsä Board’s goal of fossil free operations by the end of 2030. An excellent example of this is the significant investment project launched in Simpele. Development investments There are several development investments ongoing that typically involve the development of product quality, improvements to the cost and production efficiency of mills, and occupational safety. Maintenance investments Maintenance investments ensure that the production units remain competitive and that the occupational wellbeing and safety of employees are at a high level. Maintenance investments are required annually to en- sure undisrupted operations and safe production.
Grade produced at the mill: MetsäBoard Classic FBB
Personnel Capacity kt/a 270 300
Produced in Simpele, MetsäBoard Classic FBB is known as a forerunner on the market for its light weight and converting efficiency.
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Investments
KYRO FOLDING BOXBOARD MILL
ÄÄNEKOSKI FOLDING BOXBOARD MILL
The Kyro board mill produces fully coated folding boxboards with a coated reverse side, as well as dispersion coated barrier boards. Dispersion coating provides medium-strong protection against grease and moisture, helping to reduce the use of plastic in food packaging. In addition, it is fully recyclable and compostable – even in home composters. In the early 2020s, a chain of investments was launched at the Kyro mill. In 2021, the mill’s finishing process was modernised, occupational safety at the facility was improved, and product quality improvements were also completed. In 2022, Metsä Board invested in a new back-pressure steam turbine and generator for the Kyro mill’s biopower plant. The investment will increase the mill’s own fossil free electricity production and significantly contribute to the company’s 2030 fossil free targets. Once the work is completed in 2024, the fossil free electricity generated by the biopower plant will account for 50 per cent of the mill’s electricity consumption. The mill is already self-suffi- cient in heat. Over the next ten years, Metsä Board will invest a total of EUR 250 million in the Simpele and Kyro mills. Pre-engineering has begun at Kyro, and an investment decision is expected to be made in the first half of 2025. Benefits for customers: The goal of the Kyro mill’s planned investments is to offer customers new alternatives for reducing plastics use in an even wider end use area.
The Äänekoski board mill produces coated folding boxboard for demanding packaging and graphical end uses. It is part of the Äänekoski mill integrate, which also houses Metsä Board’s Excellence Centre, Metsä Fibre’s bioproduct mill, Metsä Wood’s birch veneer mill, the Pro Nemus visitor centre, Metsä Spring’s textile fibre demo plant, and the 3D demo plant. Most investments have been life-cycle initiatives aimed at main- taining the mill’s efficiency and keeping it in excellent condition. The mill’s sheet-cutting facility was modernised in 2019, increasing the sheet-cutting capacity to 140,000 tonnes. The Äänekoski mill’s energy and resource efficiency has been systematically improved with small investments. In 2024, a major office renovation was carried out at the mill, including the construction of a new canteen, which was an important investment in workplace wellbeing for employees working at the mill. Benefits for customers: Life-cycle investments influence both prod- uct and sheet-cutting quality. A well-functioning mill and a modern sheet-cutting facility ensure reliable deliveries and operations free of interruptions.
Grade produced at the mill: MetsäBoard Pro FBB Bright
Grades produced at the mill: MetsäBoard Prime FBB Bright MetsäBoard Prime FBB EB
Personnel Capacity kt/a 200 260
Personnel Capacity kt/a 150 190
Kyro is Metsä Board’s only board mill that produces, in addition to folding boxboard, dispersion coated paperboard which is easily recyclable and both home and industrially compostable.
The neighbouring Excellence Centre can be accessed directly from the mill, improving develop- ment and quality cooperation.
KASKINEN BCTMP MILL
The Kaskinen BCTMP mill produces bleached chemi-thermomechanical pulp (BCTMP). It is used in the middle layer of folding boxboards to make the structure lightweight yet stiff. A considerable share of the BCTMP produced in Kaskinen is shipped to the Metsä Board Husum mill in Sweden. Over the years, several investments have been made in improve the life-cycle of products and safety at the Kaski- nen mill. The goal has been to maintain the mill in excellent condition and secure continuous operations. An extensive life-cycle investment related to the automation system was launched in 2023 and is currently underway until 2025.
Benefits for customers: Product quality and delivery reliability will remain at a high level when the mill is in excellent condition, and the equipment functions as expected.
Personnel Capacity kt/a 80 390
The Kaskinen mill is Europe’s largest and most modern BCTMP mill, with a direct route to the port where most deliveries leave.
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