Metsä's year

Metsä's year 2018

Strong result in 2018


Northern bioproducts to the world

Metsä Group is a forerunner in sustainable bioeconomy utilising renewable and sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, pulp, fresh fibre paperboards as well as tissue and greaseproof papers. Metsä Group’s sales totalled EUR 5.7 billion in 2018, and it employs approximately 9,300 people. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 103,000 Finnish forest owners.

Reports 2018

On this page we have collected our reports that provide the reader with a good overall picture of Metsä Group and its operations. You can find the latest annual broschure Sustainably from the forest, financial statements, corporate governance statement as well as the Sustainability Report below. Metsä Board's report you can find linked on the right. 

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Metsä's year 2018

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Financials

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Sustainability

Key figures

Metsä group
Sales
Total
5.7  Eur
Billion
Personnel
Total
9,300

​Metsä forest

wood supply and forest services

​METSÄ wood


wood products

​Metsä Fibre

pulp and sawn timber

metsä board


paperboard​

​metsä tissue

tissue and greaseproof papers​                         

SALES
EUR 2.0 BILLION

PERSONNEL
840

OWNERSHIP OF METSÄLIITTO COOPERATIVE 100%

SALES
EUR 0.4 BILLION

PERSONNEL
1.500

OWNERSHIP OF METSÄLIITTO COOPERATIVE 100%    

SALES
EUR 2.5 BILLION

PERSONNEL
1.200

OWNERSHIP OF METSÄLIITTO COOPERATIVE 50,1%, METSÄ BOARD 24,9%, ITOCHU CORPORATION 25,0%

​SALES
EUR 1.9 BILLION

PERSONNEL
2.400

OWNERSHIP OF METSÄLIITTO COOPERATIVE 41.17% (HOLDING OF VOTES 61.87%)

​SALES
EUR 1.0 BILLION

PERSONNEL
2.800

OWNERSHIP OF METSÄLIITTO COOPERATIVE 100%                           

​METSÄLIITTO COOPERATIVE

GROUP'S PARENT COMPANYOWNED BY 103,000 FINNISH FOREST OWNERS

Metsä Group implemented a major development investment programme between 2015 and 2018. Most of the new production capacity created during this EUR 2 billion investment programme was in use in 2018. The favourable economic situation enabled all business areas to sell their increased production capacity in the market. This, combined with improved product prices, led to an excellent financial result in 2018.


There is an ongoing global demand growth in all areas of our business portfolio. We must actively take development steps to support this growth. In engineered wood products, pulp, paperboard, and tissue and greaseproof papers, our focus is on sustainability throughout the value chain. One of Metsä Group’s special strengths is that through our parent company, Metsäliitto Cooperative, we can establish a direct link between sustainable family forestry and our industrial business operations and products. As the largest provider of forest services in Finland, Metsä Group plays a prominent role in the development of sustainable forestry.


In August 2018, the Äänekoski bioproduct mill reached its nominal production capacity on schedule. In May, Metsä Fibre launched a prefeasibility study related to the renewal of the Kemi pulp mill.

Ilkka Hämälä  

The testing phase of the Pärnu birch plywood mill was completed in August, and the mill began production. The birch veneer mill established in Äänekoski had already started veneer production earlier in the spring. In operation since 2017, the Lohja laminated veneer lumber (LVL) line reached nominal production capacity. The Punkaharju LVL line investment project progressed as planned towards its estimated completion in Spring 2019.

 

In the fourth quarter of 2018, Metsä Tissue commissioned an expansion in greaseproof paper capacity at its Düren mill, as well as new tissue paper converting lines at its Raubach and Žilina mills. Metsä Board continued to increase production, especially at the Husum mill, where a folding boxboard machine started up in 2016, and an extrusion coating line was commissioned in 2017. At the Kaskinen high-yield pulp mill, production levels rose by 10 per cent following an investment in increasing the pulp drying capacity.

 

In addition to developing its current business operations in 2018, Metsä Group strengthened its efforts in promoting new opportunities in the bioeconomy. In May, Metsä Group established the innovation company Metsä Spring. The new company acts as developer and venture capital in new product industrialisation projects. The first project company was established to build a new textile fibre pilot plant in Äänekoski with Itochu Corporation.

 

SIGNIFICANT GROWTH IN OUR WOOD SOURCING

As a result of our investment programme, our annual use of wood has increased by roughly five million cubic metres. This increase concerns both timber logs and pulpwood. Maintaining balance in converting different wood fractions is vital for Finnish forestry and its profitability. Markets must direct each wood fraction to the use that yields the most added value.

 

Wood trade in Finland has been brisk, with our owner-members especially active and responding to growing demand. Prices of all wood grades saw an increase in 2018 because of strong demand.

 

Forest owners have continued to actively adopt our digital services. In 2018, more than a third of wood trade and an even higher proportion of orders for forest management were made through digital channels. The users of our Metsäverkko service gain access to a virtual forest application that enables them to view their forests and the required actions at any time or place.

 

METSÄ GROUP CONTINUES ACTIVE DEVELOPMENT WORK

After a stable and favourable economic period, the markets began to exhibit uncertainty and weakening demand at the end of the year. This was at least partly due to the increase in international trade obstacles. However, demand for business areas’ products continues to show an increasing long term trend as demand for renewable materials grows, and economic growth and urbanisation in developing economies progress.

 

Metsä Group is in a stable economic position, enabling us to continue with our development projects without interruption from market fluctuations. I took up the position of CEO of the Group’s parent company, Metsäliitto Cooperative, at the beginning of 2018, and the position of President and CEO of the Group on 1 April 2018. Under my predecessor, Kari Jordan, Metsä Group developed into a strong company and a major global player in the forest industry. All 9,300 of us at Metsä Group want to continue this development as an innovative and sustainable player. Our roots are in Finnish forests, and our competitors and customers are all over the world. With our stakeholders, we will be successful in this task.

 

Ilkka Hämälä

President and CEO

METSÄ GROUP IS IN A STABLE ECONOMIC POSITION, ENABLING US TO CONTINUE WITH OUR DEVELOPMENT PROJECTS.


Highlights

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Kemi mill prefeasibility study started

Kemi mill prefeasibility study started

​Metsä Fibre began a prefeasibility study on a significant investment in the bioeconomy, the renewal of Kemi pulp mill. In the study, two alternatives are being evaluated: building a completely new bioproduct mill or modernising the existing one. Compared to the current mill, the new bioproduct mill would produce more renewable bioproducts and would be clearly larger in terms of capacity, impact on employment and wood consumption. To be completed by summer 2019, the prefeasibility study examines in particular the availability of wood, the infrastructure of the Kemi mill area and traffic connections. If the bioproduct mill would be the preferred option, the final investment decision is planned to be made in 2020 at the earliest.

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Investments in tissue and greaseproof papers

Investments in tissue and greaseproof papers

​Several investment projects were completed at Metsä Tissue that improve the market position of tissue and greaseproof papers and the profitability of the operations. A new converting line was built at the Raubach mill in Germany, which will meet the growth in demand in Western European markets. Metsä Tissue also renewed the baking paper machine at the Düren mill in Germany and built a new tissue paper converting line at the Žilina mill in Slovakia.

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Eco-barrier – a bio-based coating for paperboard

Eco-barrier – a bio-based coating for paperboard

​Metsä Board launched a new eco-barrier paperboard with a non-plastic treatment that improves grease resistance. This paperboard is an ecological alternative to take-away food and food packaking. The coating contains only bio-based ingredients and natural minerals, and the paperboard is recyclable, compostable and biodegradable. The light paperboard is safe to use in direct contact with food. In addition to being environmentally friendly, the new paperboard has remarkable benefits in terms of production efficiency.

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Intelligent fibre - Bioeconomy is the solution

Intelligent fibre - Bioeconomy is the solution

​ntelligent and sustainable wood fibre is Finland's most significant renewable resource. Competitive products from wood-based biomaterials are being manufactured already today - and even better in the future – offering alternatives for fossil materials. This is the idea behind the world’s first biodegradable video production, Intelligent Fibre. Read more

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Pro Nemus – New kind of visitor experience

Pro Nemus – New kind of visitor experience

​Metsä Group’s Pro Nemus visitor centre was opened at Äänekoski bioproduct mill area. Pro Nemus features how Finnish wood is transformed into various products by combining virtual reality, industry and genuine nature.

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Wood trade at a record high

Wood trade at a record high

​Metsä Group has a wood supply organisation that covers the whole of Finland and is made up of over 300 experts who procure wood and provide forest management services. In 2018, the demand for wood was clearly greater than in previous years, and as a result, a record number of wood transactions were carried out. The growth of procured wood from 32 million to 36 million cubic metres just shows that our wood supply professionals can handle even the biggest of challenges.

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Major investments in wood production

Major investments in wood production

​The start-up of Metsä Wood’s birch plywood mill in Pärnu in autumn 2018 was an important milestone in the company’s extensive investment programme. The applications for birch plywood include transport and concrete formwork industries, which are growing as a result of accelerated urbanisation. In addition to the plywood mill, which employs 200 people, Metsä Wood is also investing in Kerto® LVL production in Punkaharju. The demand for Kerto LVL is reinforced by the increasing use of wood in construction. Fast, light and environmentally friendly material provides great opportunities for construction.

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New textile fibres from wood

New textile fibres from wood

​Metsä Spring Oy, Metsä Group’s innovation company, is building an industrial demo plant to produce new, wood-based textile fibres at the Äänekoski bioproduct mill area together with Itochu Corporation from Japan. The aim is to test the new technology to convert pulp into environmentally friendly fibres used in clothing, for example. When the mill starts up at the end of 2019, the preconditions that exist in Finland for building a larger textile fibre plant to provide ecological alternatives to cotton and oil-based materials will be explored.